Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainable transport system
• Climate change
• Energy efficiency
• Alternative fuels and electrification
• Smart and safe transport
• Supply chain sustainability
• Employee well-being
• Community engagement
• Human rights
• Business ethics

Environmental Achievements

• Launched a 13-litre Euro 6 gas engine for long-distance transport, offering CO2 reductions of 15-90 percent.
• Initiated trials of battery electric buses.
• Strengthened the bus range for alternative fuels.
• Installed the largest industrial solar roof in the Netherlands at its Zwolle production unit.
• Set a new target to reduce CO2 emissions from all operations globally by 50 percent until 2025 (2015 baseline).
• Introduced a new generation of Euro 6 V8 engines that reduce fuel consumption by 7-10 percent.
• Green Truck Award 2017 awarded to Scania’s new generation R 450 Highline truck.
• Lighter trucks powered by a new 7-litre engine offer fuel savings of up to 10 percent for urban transporters.
• Joined the Global Industry Partnership on Soot-Free Clean Bus Fleets, committing to provide soot-free buses to 20 major cities by 2018.

Social Achievements

• Scania Academy provides tailor-made training programs for employees and dealers.
• Around 48,500 drivers were trained in 2017 to improve fuel efficiency, road safety, and sustainability.
• High healthy attendance level of 96.2 percent.
• More than 378 employees from 30 different countries work on international assignments.
• Focus on diversity and inclusion.
• Developed a global sponsoring and community engagement framework.

Governance Achievements

• Maintains a high international standard of corporate governance.
• Implemented a new code of conduct in 2017.
• Regularly reports on risk-related matters to the Board and Audit Committee.
• Governance, Risk and Compliance team supports risk reduction.

Climate Goals & Targets

Environmental Challenges

• Meeting increasingly tough sustainability targets from customers and their customers.
• Addressing the impact of greenhouse gas emissions.
• Managing risks associated with business development, long-term planning, market variations, and economic downturns.
• Managing risks in the sales and services network, including those related to contracted services, repurchase obligations, and used vehicle prices.
• Managing risks related to production interruptions or financial problems among suppliers.
• Managing risks associated with natural hazards.
• Managing risks related to attracting, recruiting, and retaining employees with the right expertise.
• Managing information risks, including interruptions in critical information systems and unauthorized access to sensitive information.
• Managing sustainability risks associated with adverse effects on the environment, health and safety, human rights, and business ethics.
• Meeting upcoming environmental and safety standards in various markets.
• Managing product launch risks and product liability risks.
• Managing financial risks, including currency, interest rate, refinancing, and credit risks.

Mitigation Strategies

• Working in partnership with customers to understand their needs and fulfil sustainability targets.
• Investing in new technology and business ideas.
• Maintaining a strong profitability.
• Developing flexibility to adapt to an uncertain future.
• Identifying activities that drive value and removing costs that aren’t contributing to business goals.
• Reinvesting in strategic growth initiatives.
• Focusing on continuous improvements and making structural changes.
• Diversifying sales across more than 100 countries.
• Continuously monitoring markets for early warning signs.
• Using the Scania Retail System (SRS) to detect and minimize operational risks in the sales and services network.
• Maintaining close contact with independent dealers to spot warning signs.
• Having specialized staff to monitor and control regulatory risks in Financial Services operations.
• Having a Business Continuity model to maintain operations during disruptions.
• Continuously checking that suppliers meet requirements regarding Technology, Quality, Delivery, Cost, and Sustainability.
• Working with more than one supplier for critical items.
• Giving special attention to natural disaster risk in risk assessment and Business Continuity Planning.
• Cooperating with universities and institutes of technology to create and recruit cutting-edge expertise.
• Having a central unit for information security.
• Having a safety, health, and environment standard that covers 16 prioritized areas.
• Integrating business intelligence into development and introduction projects.
• Carrying out risk analyses during the product launch process.
• Having a Scania Product Liability Council to manage product liability risks.
• Working continuously with the identification, analysis, and administration of insurable risks.
• Having a Legal Risk Reporting system.
• Managing financial risks in accordance with the Financial Policy adopted annually by Scania’s Board of Directors.

Supply Chain Management

Responsible Procurement

• Sustainability in the Supply Chain standard sets environmental, ethical, and social demands.

Climate-Related Risks & Opportunities

Physical Risks

• Unpredictable and extreme weather conditions

Transition Risks

• Changes in demand due to political decisions and regulations.

Opportunities

• Development of energy-efficient products and services.

Reporting Standards

Frameworks Used: GRI, UNGC

Certifications: ISO 14001

UN Sustainable Development Goals

• Goal 8: Decent Work and Economic Growth
• Goal 9: Industry, Innovation and Infrastructure
• Goal 11: Sustainable Cities and Communities
• Goal 13: Climate Action
• Goal 17: Partnerships for the Goals

Scania's sustainable transport solutions contribute to these goals through efficient transport, innovation in clean technology, sustainable urban solutions, climate action, and partnerships.

Sustainable Products & Innovation

• New generation of trucks
• 13-litre Euro 6 gas engine
• Hybrid and battery electric buses and trucks
• Application-focused products for construction and urban segments

Awards & Recognition

• Sustainable Truck of the Year 2017
• Green Truck Award 2017
• Best Commercial Vehicle of 2017
• German Telematics Prize 2018
• European Transport Award for Sustainability 2018

Environmental Metrics

ESG Focus Areas

• Sustainable transport system
• Climate change
• Decarbonisation of heavy transport
• Alternative fuels
• Electrification
• Energy efficiency
• Smart and safe transport
• Human rights
• Diversity & Inclusion

Environmental Achievements

• Scania Transport Laboratory reduced fuel consumption by 60% and CO2 emissions by 60% in ten years.
• Almost 25 percent of Scania’s bus sales were clean and low-carbon buses in 2018.
• Launched Scania Zone, a wireless, remote-controlled position-based service for automatic vehicle adjustment to help drivers follow traffic and environmental regulations.
• Launched a plug-in hybrid electric truck (PHEV).
• Launched the world’s first gas-fuelled long-distance coach for liquefied natural gas.
• Improved powertrains and aerodynamics reduced customers’ fuel consumption by an average of five percent.
• Scania won the 2018 Green Truck Award for lowest fuel consumption.

Social Achievements

• Hosted its second Sustainable Transport Forum.
• Continued trials with the new generation autonomous transport systems.
• Reached a deal with Kobelco to supply low-emission industrial engines.
• Largest gas bus delivery ever (741 buses for Bogotá’s TransMilenio system).
• Initiatives to increase the number of women drivers in Accra, Ghana.
• Skill Capture program to identify and maximize employee talent.
• The Game, a driver development tool inspired by the gaming industry.

Governance Achievements

• Established a Governance, Risk and Compliance (GRC) function.
• Implemented a new sustainability risk rating as a mandatory part of sourcing decisions.
• New Scania Code of Conduct came into force in 2018.
• Implemented a new sustainability risk rating as a mandatory part of sourcing decisions.

Climate Goals & Targets

Environmental Challenges

• Lack of supply of biogas hampering the use of gas solutions.
• Electrification for heavy transport not yet a sound investment for customers.
• Fear of the new and worries about cost of switching to sustainable technologies among some customers.
• Need to normalize cost levels after the biggest industrial changeover in the company’s history.
• Driver shortage in Europe.

Mitigation Strategies

• Investing in and developing electrified solutions.
• Actively working in partnership to secure production of biogas.
• Working with customers to demystify the process of switching to sustainable technologies and guide them towards tailored, profitable solutions.
• Intensifying focus on normalising cost levels.
• Forming partnerships with fuel producers, infrastructure providers and stakeholders to accelerate change towards a sustainable transport system.

Supply Chain Management

Responsible Procurement

• Scania Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Unpredictable and more extreme weather conditions

Transition Risks

• Changes in legislation and regulations
• Market shifts

Opportunities

• Development of energy-efficient products and services

Reporting Standards

Frameworks Used: UN Global Compact

Certifications: ISO 14001

Sustainable Products & Innovation

• Plug-in hybrid electric truck
• Gas-fuelled long-distance coach
• Battery-electric buses
• Hydrogen fuel-cell powered trucks

Awards & Recognition

• 2018 Green Truck Award

Environmental Metrics

ESG Focus Areas

• People sustainability
• Decarbonisation
• Circularity

Environmental Achievements

• CO2e reduction from vehicle use: -3% since 2015 (aiming for 20% reduction by 2025)
• CO2e from operations: -42% reduction since 2015
• Turned green supply chain targets into mandatory sourcing requirements for batteries, steel, aluminium and cast iron in European operations by 2030
• Placed first order of green steel from H2 Green Steel
• Agreement with SSAB to achieve 100% decarbonised steel deliveries by 2030

Social Achievements

• Opened battery assembly plant in Södertälje
• Launched Labour Relations Improvement Program to improve dialogue between Scania and employee representatives
• Supporting the Marikana Coalition in South Africa to provide brighter futures for children in the mining area

Governance Achievements

• Continued transformation of its organisation to enable an extended focus on productivity and flow
• Clarified mid-term strategic direction with six targets linked to high-level corporate objectives
• Scania Sustainability Board coordinates sustainability work

Climate Goals & Targets

Environmental Challenges

• Order to delivery flows impacted by supply chain disruptions (component and outbound transport restrictions)
• Electrification ramp-up not happening at desired pace due to challenges with customer business case, infrastructure, and supply base
• Issues with battery supply
• Slower-than-expected pace of industry transition to sustainable transport impacting Scope 3 emission reduction target

Mitigation Strategies

• Improved order to delivery flows in 2023
• Opened battery assembly plant and redesigned production line for large-scale production of electric trucks
• Investing in electric product portfolio and developing complete e-mobility solutions (charging infrastructure, services)
• Working closely with battery supplier to solve supply problems
• Focusing on driver efficiency, optimising vehicle specifications, promoting renewable fuels and expanding electrified solutions to improve Scope 3 reduction

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct
• Green supply chain requirements

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Long-term shifts in climate patterns

Transition Risks

• Technology shift to electric vehicles
• Cost of transition to zero-emission technologies
• Policy actions (CO2 emission legislation, carbon pricing, infrastructure)
• Social risks

Opportunities

• Transition to sustainable transport system

Reporting Standards

Frameworks Used: GRI, TCFD, EU Taxonomy Regulation

Certifications: ISO 9001, ISO 14001

Third-party Assurance: Ernst & Young AB

Sustainable Products & Innovation

• Battery electric trucks
• New generation of battery electric vehicles
• Super powertrain
• Biogas engines
• Smart Dash digital dashboard
• Solar-powered hybrid truck

Awards & Recognition

• European Truck Award (Scania Super powertrain)