Sustainability ambitions and targets
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, the sales mix had a similarly adverse effect on the average emissions as last year. At a regional and segment level, the 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 customer’s 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 CO2e reductions. Currently we are on 97.3 percent, a reduction of just above 2.7 percent since 2015.
*2020 figure restated
Target: 20% CO2 reduction 2015-2025 (CO2e/km) WtW.
Energy efficiency
Energy efficiency is a core priority for Scania, regardless of fuel type or energy source. Fuel consumption is an important factor for customers buying a truck or a bus today. Improving energy efficiency plays an important role in helping us to reduce our carbon impact.
Driver Evaluation
Since 2022, the numbers have gone down and at the end of 2023 Scania landed on 16,461 active subscriptions. The key reason for the decrease is the reduction of service contracts in Brazil, which is a country responsible for 72 percent of this service volume. 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 2023 we continued to grow our Scania Flexible Maintenance contracts portfolio, which supports customers with services 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 2023, the share of alternative solutions decreased compared to 2022, mainly due to a rebound in the overall market, even in regions with less mature alternatives. Despite this, interest in our sustainable solutions portfolio remains strong. Customers appreciate our flexibility in finding solutions for various operations. Alongside the growth of our electrified solutions, there’s also a continued interest in renewable fuels, including liquid options like HVO and FAME, as well as biomethane.
Smart and safe transport
Digital technologies are 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. Connected vehicles are a prerequisite for us to be able to measure our user phase CO2 impact, develop digital services to optimise efficient utilisation and to be able to understand the true impact of our actions which helps us in decision-making.
Connected products
The number of connected vehicles increased with 63.124 units from 2022. Great Britain is the market with highest proportion of connected vehicles in 2023.
Environmental footprint
To proactively reduce the environmental footprint from the whole 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 logistics required to be a manufacturer.
CO2 from operations (Science-based target)
Emissions have fallen by 42 percent since 2015. By following our decarbonisation roadmap, Scania 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% CO2e reduction 2015-2025.
CO2 emissions from land transport
Emissions per transported tonne (part of scope 3) has decreased by 23 percent compared to 2016. In 2023 new contracts were implemented in the Poland-Lituania and Czech republic areas within inbound leading to a further increase of sustainable fuels used in our network, as well as improved efficiency which has contributed to a decrease in CO2 emission. In 2023, land transports stood for 65 percent of the total transport emissions.
Target 50% reduction in CO2e emissions from land transport 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. Energy consumption per vehicle have been reduced due to a focus on energy efficient activities in production. The reduction is 11 percent since 2015.
Target: 25% less energy per produced vehicle 2015-2025.
Fossil free electricity
During 2023 Scania’s facilities ended up on 99.96 percent fossil-free electricity. Scania has been on a level close to 100 percent since 2020 but 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 2023. This is mainly explained by lacking demand of recovered material for certain fractions and these fractions has for 2023 been sent to landfill. Another contributing factor is operating of two foundries during a transition period (2022–2023). In 2022 waste material not recycled have fallen by 17 percent since 2015. During 2023 due to the aforementioned reasons, the material not recycled have increased by 71 percent compared to base year 2015. Measures are taken in order to reduce this waste fractions as well as to find suitable recovery operation methods to avoid landfill.
Target: 50% reduction of waste per produced vehicle between 2015-2025.
Water usage
Use of water per produced vehicle decreased to a level of 5.3 cubic metres. The reduced need for freshwater in production have been achieved through increased use of internally recycled water. Water usage per vehicles have fallen by 15 percent since 2015. During 2024 focus is to initiate further actions towards water reduction.
Target: 40% reduction of water use per produced vehicle between 2015-2025.
Supply chain sustainability
Transparency is key to managing our supply chain impacts. To identify and address sustainability risks in our supply chain effectively, we need to know where the materials we use in our production processes come from. Scania has a large and complex supply chain consisting of more than 1000 suppliers in more than 100 countries. Working with our partners in the Volkswagen Group, we have developed a group-wide approach that increases our leverage and ensures greater transparency. We also work together with others to improve traceability and transparency within the complete automotive value chain, both as part of the Volkswagen Group and TRATON GROUP, as well as with other stakeholders, for example the Drive sustainability network.
Sustainability risk assessed suppliers
During 2023, Scania maintained the low number of C-rated suppliers and it is close to achieve the set target for this category of supplier. In 2023 Scania introduced stricter requirements, which caused an increase in the number of suppliers classified as not assessed. Suppliers of both parts and services (existing and new) were assessed.
Target: 65% suppliers in the highest rating category (A) by 2025. 0 suppliers in lowest rating category.
Social dialogue
Good relations and social dialogue improve the work environment as well as company performance. Social Dialogue in particular is 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. Both Social Dialogue and Just Transition are identified as salient human rights issues at Scania.
Collective bargaining agreements
The coverage by collective bargaining agreements have stayed on the same level of 89 percent, which is based on information collected from 54,418 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 to 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 programme is the response to the challenges that are accompanying the transition to a 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
51,958 employees had the opportunity to participate in the 2023 employee survey, (the Employee Satisfaction Barometer) with a participation rate of 84 percent. 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 diversity and inclusion related questions in the Employee Satisfaction Barometer.
Gender equal opportunities
The result for the year shows a 0.6 percent difference between men and women in management compared with the total employee population. 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 our sustainability focus, the safety and health of all Scania employees is not just a salient issue but 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 healthy and safe workplace and give a foundation for a good work life balance for our employees and a safe, healthy working environment. We are committed to complying with any demands in accordance with legal and other applicable requirements issued by national authorities and by Scania self-appointed targets within the area. To become and remain the employer of choice we empower and engage all our people and all our activities shall be based on the principle, “By creating good working conditions all injuries and ill health can be prevented”.
Healthy attendance
The Healthy attendance has increased since last year and it is 96.3 percent in 2023. Short term sick leave has decreased resulting on a general increase of health attendance compared to previous year. In 2023 Scania is very close to achieve the set target to have 97 percent healthy attendance.
Target: 97% healthy attendance.
Occupational accidents with sick-leave
The increase in accidents is due to scope change for 2023, where commercial operations entities are included. Previous years were not recalculated in line with new scope. 2023 accidents covering only industrial units shows 3,3 accidents which is a decrease compared to 2022. The implementation of “risk observations” in the system TIA supports Scania analyse for mitigation of risks in the work environment. When we analyse the cause of our critical accidents, we can see that tucked or jammed between objects is the most common reason followed by incidents where employees have tripped, slipped or fallen and then hit by vehicles and forklifts. This has generated activities such as improved support to perform risk assessments and an initiative to improve the quality in investigations of incidents and accidents.
Target: 5 or less accidents per million worked hours.
Business ethics
Scania has zero tolerance for corruption and unethical business practices. Communication and employee training play a key role in Scania’s preventive compliance and sustainability work across all hierarchy level. Scania conducts regular face-to-face and online training sessions on various compliance topics. The compliance training programme includes training on the Code of Conduct, the Company’s guideline for acting with integrity. The Code of Conduct training is mandatory for all employees and needs to be repeated on a regular basis.
Code of conduct training
In 2023, 46,911 employees have taken the course, corresponding to 86 percent of employees trained. The course is mandatory for all employees and shall be repeated within an interval of 2–4 years depending on type of work.
