Scania is committing to supply chain emission targets which will also have an impact on bonus payments for its senior executives.
With a lifecycle assessment as a starting point, Scania has created a strategy for decarbonisation in the European supply chain that includes targets for 2030, going from a 35% to 90% reduction for various materials and components.
It follows the Swedish truck manufacturer’s move in 2020 to begin reporting on science based targets that measures the decrease in emissions from its own operations as well as from its vehicles in use.
It became the first heavy vehicle manufacturer to have science based climate targets with several of its competitors soon to follow.
Scania says the measures are an integrated part of its business targets and affect all parts of its business from production to development and sales.
There will also be a clear connection between the results from its climate targets and the compensation for senior executives. The results from reducing emissions in its own operations will have a direct impact on bonus payments, the company says.
“Our climate targets are always with us in every decision we make,” says Scania head of sustainability, Andreas Follér.
“They are the foundation for our strategy and our way forward.”
Scania’s expansion of decarbonisation targets within its supply chain include areas such as battery and steel production which causes large emissions and is the main part of its total carbon footprint along with aluminium and iron.
With a lifecycle assessment as a starting point, Scania has created a strategy for decarbonisation in the European supply chain that includes targets for 2030, going from a 35% to 90% reduction for the various materials and components.
“This is only the beginning of our journey towards decreased carbon emissions in the supply chain. We are working on widening the scope, so our strategy for phasing out fossil fuels eventually will cover Scania’s whole value chain,” Follér adds.
During 2021, Scania also became the first company in the industry to publish a life cycle assessment of a battery electric truck.
It calculated the environmental impacts of products, covering the entire life cycle from cradle to grave, starting at the extracting and refining of raw materials and ending at the recovery of the vehicles.
Despite the increased production burden of battery electric trucks, the total life cycle impact on climate change is “dramatically better” thanks to the much lower carbon impact from the use phase, the report said.
*Go to Scania’s Annual and Sustainability Report 2021 for more information.
