Driving the adoption of sustainable solutions and pursuing responsible business are complementary long-term perspectives for continuing being a successful company. Conducting our business in a responsible manner, guided by our core values and internationally agreed targets and guidelines will increase our ability to be leaders in the shift towards a sustainable transport system.
Scania is a global company, with more than 50,000 employees working in five continents and customers in more than 100 countries. Every day, our operations and products directly and indirectly have an impact on millions of people. For Scania, being a responsible business means understanding our social and environmental impact and pursue ambitious standards at every step; from our supply chain to our production system, through to the sales process, our customer relationships and the end-of-life phase of the product.
Scania invests around SEK 7.6 billion in R&D, and much of that investment increasingly focuses on technology that can mitigate the effect on the environment and make the transport system safer for society as a whole. In 2018, Scania created value for our customers by meeting their demands for higher uptime and greater efficiency. Taking responsibility for the full value chain also means knowing the impact of the materials that our products are made of. Scania is continuing its efforts to map and understand the environmental and social impact of the materials in our products to be able to make informed decisions and minimise the negative impact for the full lifecycle.
In an increasingly transparent marketplace, Scania’s suppliers must meet the same standards we demand of ourselves. With over 1,000 direct and 10,000 indirect suppliers, robust and comprehensive management of sustainability risks is a challenge, but essential. For Scania, sustainability performance influences sourcing decisions alongside technology, quality, delivery and cost. Our Sustainability in the Supply Chain standard sets the environmental, ethical and social demands. With this as a starting point we work with those suppliers in our global supply chain who maintain fair conditions, and in return we benefit from higher supplier quality and productivity, while minimising the negative impact during the lifecycle of our products. A proactive approach to relationships with suppliers and collaboration in sector-wide initiatives are tools that drive positive development across the whole value chain and minimise risks of environmental and human rights issues.
The scale of Scania’s global logistics network is extensive with more than 1,500 suppliers in Europe, Asia and Latin-America. With a huge number of drivers being involved in the logistics value chain Scania sees fair transport as a cornerstone for building its credibility as a leader in sustainability. Starting 2018 Scania introduced a new demand specification for fair transport, based on consultations with main contractors, Volkswagen AG, TRATON SE, the Swedish traffic authority, and internal stakeholders such as HR, legal and compliance departments and Scania Transport Lab. Our Fair Transport audit covers drivers’ working conditions, collective agreements, salaries and allowances, as well as security and environmental aspects. Decisions within Scania logistics are based on achieving the best balance between sustainability, quality and cost and on several cases we see that we can reduce emissions levels while still reducing or maintaining the same cost.
Scania produces hundreds of vehicles every day and have approximately 19,000 people working in our production facilities worldwide. We operate according to the Scania Production System, which drives us to eliminate waste, improve our resource efficiency and optimise production flow. The impact production processes have on energy efficiency can be significant, such as the decision at the transmission factory in Sweden, Södertälje, to use high pressure fans for drying in the washing machines instead of compressed air, which saves around 1,800 MWh/year. That is roughly equivalent to the energy consumption of 120 Swedish houses. Our focus on safety, health and environment (SHE) helps us keep track and gives clear guidance to those working in our production facilities worldwide.
With a global sales presence and hundreds of sales per day, our sales staff work with our customers to ensure that their vehicles are optimised for their specific transport assignment and to address the products’ environmental impact. We base our work on the three pillars of sustainable transport and on the lean principles that underpin modularisation. In Sweden a sustainable alternative has been offered in 40 percent of the quotations since the start during autumn 2018. In 2019, we will continue to work with our promise to offer a non-diesel product option in every quotation.
The main environmental impact from the lifecycle of Scania’s products comes from their use, in terms of the emissions. Scania’s new generation of trucks reduce fuel consumption by on average at least five percent. With the help of driver training and coaching plus other efficiency-enhancing services, even more fuel savings is possible, along with improved road safety. The past year has seen us continue to expand our ranges of trucks, buses and engines that run on renewable fuels, as well as further advances in cleaner technologies using electric power.
The starting point of our service offering is customer first. With more than 20,000 employees working in our service network and many customer meetings every day, there is great potential to influence the customers’ way of working. Through services such as Scania Flexible Maintenance and Fleet Composer, we are helping tens of thousands of customers to maximise their uptime and to be as efficient as possible in their operations. In a combination of efficiency and road safety, Scania Zone gives drivers the ability to automatically pre-program their vehicle to follow local traffic regulations such as speed restrictions.
End of life
Scania aims to continuously minimise the environmental and social impact of our products and to increasingly promote circularity in our processes. We provide guidelines for end-of-life treatment and dismantling and work in partnership with others to improve the complete chain. Made mainly out of high recovery value materials like cast iron and steel, our trucks are 95 percent commercially recyclable. Remanufacturing, the collection of faulty or worn parts which are remade and sold again, is a vital part of the circular economy. In 2018, Scania’s Service Exchange initiative collected around 6.4 tonnes of faulty or worn parts that gets a second life and goes back into the sales process.