What Company is This?
Scania’s roots go back to the founding of Vabis, Vagnfabriks Aktiebolaget i Södertelge, Sweden in 1891. The first Swedish-made car was introduced in 1897, and the first truck was produced in 1902. In 1911, Scania-Vabis was created, merging Maskinfabriksaktiebolaget Scania in Malmö with Vabis. Today, Scania has been part of the Traton Group since 2014 and provides transport solutions, including trucks and buses, combined with an extensive product-related service offering. Scania employs more than 50,000 people and serves at least 100 markets. Scania’s headquarters is in Sweden, and its parent company, Traton Group, is listed on the Stockholm stock exchange.
What Are the Results?
Scania reaches a total score of 23%, scoring 23% for General Supply Chain Sustainability and 22% for Steel Supply Chain Sustainability. The company scores only 14% for Target-Setting and Progress in the former category, and 17% for Supply Chain Levers, like 11 other companies. The Steel Supply Chain Sustainability score consists of 0% for Disclosure, 11% for Target-Setting and Progress, and 42% for Supply Chain Levers, the latter being the second-highest score in this subcategory.
What Are the Highlights?
In the General Supply Chain Sustainability category, Scania scores partial points for three indicators. First, it scores 25% for its climate targets because it lacks a disaggregated target for purchased goods, and its targets are currently pending revalidation while the revision of the automotive sector standard is being completed. The company also earns partial points for its supplier sustainability evaluation process, which includes decarbonisation requirements for hotspot materials such as batteries, steel, aluminium, and cast iron, and for incorporating sustainability requirements into pre-contractual supplier assessments.
In the Steel Supply Chain Sustainability category, Scania earns partial points for its ambitious target to source 100 per cent green steel in Europe by 2030, defining green in flat steel production as the replacement of coal with green hydrogen. Partial points are also awarded for disclosing the share of recycled material, including steel, in its annual production, for being a member of the First Movers Coalition, and for disclosing that it has invested in Stegra (formerly H2 Green Steel) to secure access to green steel, and that it has agreed with SSAB, its main steel supplier, on 100 percent decarbonised steel deliveries by 2030. Scania also scores partial points for disclosure of how the company has been able to reduce the use of pig iron (the main ingredient of steel and the cause of steel’s heavy carbon intensity) by using scrap material for the manufacture of engine blocks and cylinders.
Where Can the Company Improve?
Scania scores zero points in the General Supply Chain category for not requiring SBTi targets from suppliers and subsequently not reporting on the share of suppliers having them, for not requiring water reduction targets or disclosure of water usage from suppliers, for not having a commitment or policy to eliminate deforestation from its supply chains, and for not implementing incentives and control systems to improve water management in or eliminating deforestation from its supply chains. In the Steel Supply Chain category, Scania has room to improve by disclosing greenhouse gas emissions from steel, reporting on its current share of lower-emission or fossil-free steel use, setting a target for using recycled steel, and becoming a member of SteelZero and ResponsibleSteel.
