At Scania, there is no separate strategy for sustainability. Instead, sustainability is at the core of our business strategy aiming to align our targets and activities with sustainable development.
Scania measure and follow up on our sustainability performance in relation to set targets. To track our performance, we have developed 18 sustainability indicators linked to our most material areas with connection to impact, risk and the life cycle of our products.
For a complete set of disclosures including definitions, way of working and reporting principles please see the Annual and sustainability report.
Science-based target-user phase
During 2020 Scania set science-based targets related to decarbonisation. The science-based targets are part of our corporate targets, and will impact on investment decisions across our business areas, from production and logistics to product development and sales priorities. More than 90 percent of the carbon emissions from our business is generated when products are in use. Scania’s ambition is to measure the well-to-wheel emissions from fuel consumption during the use of its products, taking into account the emissions generated in the production of the fuel or electricity.
CO2e emissions from product use (Science-based target)
On a global scale, a changed sales mix again led to a slight increase in emissions year-on-year. At a regional and segment level, our emissions remained stable.
From next reporting year several factors will enable us to accelerate reductions. These include increasing volumes of battery electric vehicles, increased share of renewable fuels in our customers vehicles, further penetration of the Super powertrain with improved powertrain efficiency and more focus on energy efficiency-related services. Together these factors will enable an acceleration of CO2 reductions. Currently we are on 97.9 percent, a reduction of just above 2 percent since 2015.
Target: 20% CO2 reduction 2015-2025 (CO2e/km) WtW
Energy efficiency is a core priority for Scania, regardless of fuel type or energy source. Fuel consumption is the number one factor for customers buying a truck or a bus today. Improving energy efficiency plays an important role in helping us reach our science-based target.
Since the launch in 2020, the numbers have gone up dramatically and at the end of 2022 Scania landed on 19,084 active subscriptions. The Driver Evaluation service makes hauliers aware of their drivers’ behaviours and supplies suggestions on improvement. The drivers can follow their performance in a mobile app.
Scania flexible maintenance
In 2022 we continued to grow our Scania Flexible Maintenance contracts, which support customers with service adapted to their vehicle and operations.
Renewable fuels and electrification
Increasing the use of renewable fuels and sales of electrified vehicles will play a key role in achieving our science-based targets. In order to decrease the use of fossil fuels, renewable fuels must become more available. Scania offers the broadest range of renewable or alternative fuel solutions on the market. All Scania diesel vehicles can be fuelled with HVO biodiesel, without any modifications or limitations. Electrification of the transport sector is growing fast. As of today, Scania’s electric solutions include hybrid buses and trucks as well as battery-powered electric trucks and buses. The portfolio is set to grow in the coming years. Scania is committed to introduce a broader offer of electrified vehicles every year this decade. Our target is for electric solutions to make up 10 percent of our total vehicles sales volume by 2025 and 50 percent by 2030.
Sales of renewable fuels and electrified vehicles
In 2022, we saw increases in BEV deliveries and steady sales for other options. Despite uncertainty in the natural gas market, sales of gas vehicles only decreased slightly. Focus on biomethane partnerships allowed many customers to avoid some exposure to price volatility of energy. Share of sales landed on 8.3 percent.
Smart and safe transport
Digital technologies is key to making transport smarter, safer and more efficient. Since 2011, all Scania vehicles are equipped with the Scania Communicator as standard. The Communicator collects and analyses data in order for us to provide our customers, and in turn their customers, with insights on how to improve efficiency in the transport value chain. Our connected vehicles are a prerequisite for us to be able to measure the user phase CO2 impact, develop related services and to be able to understand the true impact of our actions.
The lower pace of growth in 2022 compared to previous years, refers to the disconnection of vehicles in Russia.
To proactively reducing the environmental footprint from the complete value chain by working actively with emission reduction, resource use and energy efficiency is central to Scania’s daily operations. Scania’s own environmental impact stems from our production processes, our global workshop facilities and our offices. However we also have an indirect environmental impact stemming from the materials that we source to build our products and the logistic required to be a manufacturer.
CO2 from operations (Science-based target)
The rise in emissions during 2021 and 2022 is related to our operations returning to a more normal level of activity post-Covid-19. Despite this increase, emissions have fallen by 44 percent since 2015. By following our decarbonisation roadmap, Scania still sees a clear path towards reaching our targets for 2025. Important steps towards this goal will be growing the number of electrified vehicles in the company fleet, as well as switching to renewable fuels and fossil free electricity in our operations globally.
Target: 50% CO2 reduction 2015-2025
CO2 emissions from land transport
Emissions per transported tonne (part of scope 3) has decreased by 25 percent compared to 2016. A slight increase compared to previous year is seen, explained by lower fill rate and increased distance due to supply chain disturbances and production allocation. In 2022, land transports stood for 56 percent of the total transport emissions. In the coming years, land transport contracts for Central Europe will be renegotiated and the aim is to do a similar journey as for the Nordic/Baltic.
Target 50% reduction in CO2 emissions from land transport per transported tonne between 2016-2025
Energy consumption from industrial facilities
There is a temporary increase in use of energy due to start of production in a new foundry while still operating the old foundry during a transition period (2022–2023). A significant reduction
is expected after decommissioning of the old foundry.
Target: 25% less energy per produced vehicle in industrial operations 2015-2025
Fossil free electricity
During 2022 Scania’s facilities ended up on 99,96% percent fossil-free electricity. Scania will continuously follow the level of fossil-free electricity and always aim for the 100 percent target.
Target: 100% of our operations run on fossil-free electricity where the necessary prerequisites are in place
Waste material that is not recycled
The amount of waste not recycled have increased during 2022. This is mainly related to activities during the start-up period for production in the new foundry while still operating the old foundry during a transition period (2022–2023). During 2023 focus is to get back on track and initiate further actions towards the target.
Target: 50% reduction of waste per produced vehicle that is not recycled in our industrial operations between 2015-2025.
Use of water per produced vehicle increased to a level of 6.5 cubic metres. The increased waters volume is mainly related to a few significant water leakages on two production sites. During 2023 focus is to get back on track and initiate further actions towards water reduction.
Target: 40% reduction of water use per produced vehicle between 2015-2025.
Human rights management
We know that some of our biggest human and labour rights risks are in our supply chain. Scania sources materials, parts and other resources from around 1,000 direct and more than 10,000 indirect suppliers around the world. We are committed to assessing and mitigating human rights risk throughout our supply chain. We insist that our suppliers meet the highest standards and act in full accordance with our policies and guidelines concerning human and labour rights in the supply chain. Working with our partners in the Volkswagen Group, we have developed a group-wide approach that increases our leverage and ensures greater transparency on human rights challenges. As part of this approach the Volkswagen Group has a joint management system for sustainability rating for suppliers. In 2020 a management system for raw materials was established. In 2021 the approach was further developed with a system for human rights due diligence covering other materials outside the raw materials scope
Sustainability risk assessed suppliers
During 2022, Scania managed to reduce the number of C-rated suppliers thereby increasing the supplier’s overall sustainability rating despite introducing stricter requirements. Suppliers of both parts and services (existing and new) were assessed. Broader more strict definition and scope of not assessed suppliers resulted in an increase of the numbers for that category 2022.
Target: 65% suppliers in the highest rating category (A) by 2025. 0 suppliers in lowest rating category.
We believe that good relations and social dialogue improve the work environment as well as company performance. Social Dialogue is in particular a key enabler in achieving a Just Transition in line with the Paris Agreement, and a very important enabler in the transformation that Scania is currently in the midst of as a company.
Collective bargaining agreements
The percentage of employees covered by collective bargaining agreements have increased to a level of 89 percent based on information from 45,906 Scania employees.
Target: 100% of our employees should have the possibility to form collective bargaining agreements or in other ways engage in constructive dialogue.
Diversity and inclusion
Fostering a diverse workforce is critical for our success. The right mix of skills and perspectives, in combination with a working environment built on trust and inclusion, is a prerequisite for Scania to drive the shift towards a sustainable transport system. Skill Capture is the response to the challenges that are accompanying the transition to a new, more sustainable transportation industry. Our Skill Capture programme is designed to broaden the scope of diversity, taking into account all aspects of diversity including gender and cultural diversity as well as personality and experience. The programme also aims to improve our inclusiveness. It involves all levels of the organisation and covers the whole journey for each employee from initial awareness to action.
Diversity and inclusion index
51,314 employees had the opportunity to participate in the 2022 employee survey, (the Employee Satisfaction Barometer) with a participation rate of 84 percent which is an increase compared to previous years. The Skill Capture program gives Scania’s different markets the opportunity to highlight issues that are relevant to the local working environment.
Target: >85% score on the related questions in the Employee Satisfaction Barometer.
Gender equal opportunities
The result for the year shows a 0.3 percent difference between men and women in management compared with the total employee population. This is a decrease from the previous year and a positive change towards the target. The work continues using analytics to secure our understanding of the root cause, as well as other initiatives within diversity and inclusion.
Target: equal opportunities to become managers for men and women.
Health and safety
As a natural part of a sustainable society and the aim of becoming the leader in sustainable transport, the safety and health of all Scania employees are a top priority. Our goal is to preserve and promote the safety, health and well-being at work for all our employees and visitors at our premises. All work within this area is executed and aligned with existing principles and our core values. We strive to achieve a sustainable workplace and a safe, healthy working environment. On our journey to become and remain a top employer with top employees, all our activities shall be based on the principle “By creating good working conditions all injuries and ill health can be prevented”.
The Healthy attendance has decreased slightly since last year but stays on a high level close to the target. Long term sick leave has decreased in Sweden but the short term sick leave has increased if we compare with earlier years.
Target: 97% healthy attendance.
Occupational accidents with sick-leave
Accidents keep decreasing in numbers. The implementation of “risk observations” in the system TIA has given Scania even more data to analyse for mitigation of risks in the work environment.
Target: 5 or less accidents per million worked hours.
Scania has zero tolerance for corruption and unethical business practices. Wherever in the world Scania operates, we adhere to high ethical standards. The Scania Code of Conduct is mandatory for all employees and lays down the overarching framework and provides guidance for how employees are expected to act.
Code of conduct training
49,526 of employees have taken the course. corresponding to 93% The course is mandatory for all employees and shall be repeated within an interval of 2–4 years depending on type of work.