Hot on the heels of the release of its 2020 financial results, Swedish truck maker, Scania has published its annual Sustainability Report fort he pandemic affected year just passed.
As Scania says, 2020 was a year like no other and though heavily impacted by disruptions due to the pandemic, the comany says it managed through with a strong underlying performance and an increased focus on driving the shift towards a sustainable transport system.
The report says that in 2020, Scania was challenged by a historic global close-down of production and an unpredictable demand situation because of the pandemic. Though considerably impacted by lower vehicle volumes, the negative effects on operating income were mitigated by powerful cost-saving measures.
Despite a challenging year, Scania says it stayed true to its purpose and took significant steps towards a sustainable transport system, in line with its strategy. As electrification and autonomous technology disrupts the industry, new business opportunities emerge.
Scania’s outgoing president and CEO Henrik Henriksson said the company “is in a period of transformative change – a time when the industry will experience some of the greatest shifts in its history. We will reshape our business model in close cooperation with current and new customers to explore these opportunities and use them to drive growth.”
The 2020 edition of Scania’s Annual and Sustainability Report takes substantial steps in outlining the journey that Scania is taking towards a sustainable transport system. It is the company’s sixth combined annual- and sustainability report, detailing its financial, social and environmental performance.
Scania says it recognises the importance of the Task Force on Climate-Related Financial Disclosures (TCFD) and has started the journey to integrate aspects of the framework and will continue to develop the company’s reporting in accordance with its recommendations. Find the full report here »
Scania says that for the first time since it set its Science Based Targets, it reports on the progress on emission reduction both from its own operations and from vehicles in use.
In its own operations, Scania says it has already decreased carbon emissions by 43 per cent from 2015 levels, through increased energy efficiency, reduction of energy waste and transfer to renewable energy it claims.
It says that this means it is well on track to achieve the target of a 50 per cent reduction by 2025.
“We are ahead of plan with the reduction of carbon emissions from our operations globally, a lot thanks to our transition to fossil-free electricity for all our production sites that we reached during 2020,” said Henrik Henriksson.
Scania has also committed to reduce CO2 emissions from its products in use by 20 per cent by 2025, with a 2015 baseline.
“We also see progress in reducing the emissions from when our vehicles are in use, which constitutes over 90 percent of Scania’s total emissions,“ Henriksson continued.
“Currently Scania is at 95.8 per cent, a reduction of just above 4 per cent. Starting on 100 per ncent in 2015, Scania aims to reach 80 percent by 2025 at the latest. Carbon emissions from Scania’s products in use are measured as well-to-wheel i.e. emissions generated in the production of the fuel or electricity are taken into account,” he added.
The statement says that more significant steps are underway, as Scania continues to work closely with customers, focusing on energy efficiency in the conventional powertrain and increasing the share of biofuels which has an immediate as well as a retroactive effect on the rolling fleet of vehicles.
Scania says it will ramp up the volumes of electric vehicles with at least one new electric product application commercially launched in the bus or truck segment annually.
“Our climate targets are deeply embedded in daily decisions we make across the company. They are fundamental to our strategy and part of our corporate targets. They are our North Star – a guide that shows us the direction. We seek to continuously improve the environmental performance of our products, processes and services,” Henriksson concluded.