For many years too many businesses have paid lip service to green initiatives. It seems Scania have gone further and are incorporating a ‘greenness’ throughout their business. That means that managers are now fully rewarded unless there is a reduction in emissions in their sphere or operations.
The business also monitors the targets surrounding the emissions from the vehicles that it sells.
Going a step further than this, the manufacture is to become more demanding of its suppliers to improve their green credentials.
In 2020, Scania became the first heavy vehicle manufacturer to have science based climate targets and fortunately several of our competitors have followed in our path. The targets that measure decrease in emissions from both our own operations as well as our vehicles in use, are an integrated part of our business targets and affect our priorities in all parts of our business, from production to development and sales.
From now on there will also be a clear connection between the results from our climate targets and the compensation for senior executives. The results from reducing emissions in our own operations will now have a direct impact on our bonus payments. “Our climate targets are always with us in every decision we make. They are the foundation for our strategy and our way forward,” says Andreas Follér, Head of Sustainability, Scania.
In addition to the targets to decrease carbon impact from our own operations and from our vehicles when in use, we now expand our decarbonisation targets to include targets for emission in Scania’s supply chain. Certain parts of ours supply chain such as battery- and steel production, causes large emissions and is the main part of our total carbon print. The major sources of emissions are batteries, steel, aluminium and iron. With a lifecycle assessment as a starting point, we have created a strategy for decarbonisation in the European supply chain that includes targets for 2030, going from a 35 to 90 percent 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 concludes.