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30 Nov 2023

Scania begins working with suppliers to reach new green targets

Scania begins working with suppliers to reach new green targets

Scania has made the move of working with its suppliers to become greener and reduce their environmental impact. In order to minimise the environmental impact of the company’s European production supply chain, Scania is making it mandatory for their suppliers to source greener materials.

Making the need to source greener materials mandatory, means that in order to meet this new ‘green’ standard, the suppliers should be aiming to reduce emissions at every possible opportunity. There are various ways this could be done, for example, some choose to source electricity from renewable sources or recycled materials. Others choose to utilise green energy for the production of batteries or green hydrogen for the manufacturing of flat steel.

Scania’s approach to these new green rules, is an excellent and effective choice. As through basing the rules on mandatory purchasing requirements, suppliers have to comply with the new green standards, meaning the emissions from the European production supply chain will be guaranteed to be reduced. This will have excellent benefits for the environment, but it will also highlight the effort Scania is making to become greener through the materials that will go into the manufacturing of its products.

These new rules are linked to Scania’s larger decarbonisation strategy, which aims to have green steel, batteries, aluminium and cast iron being used within its trucks by 2030. These are the key focus points as these areas make-up an estimated 80% of the carbon emissions within the production materials.

The steps prior to this within the decarbonisation project this year have included Scania receiving their first order from H2 Green Steel, plus Scania has acquired a shared target with SSAB for their steel deliveries to be on the path to decarbonisation by 2023. Finally, a new partnership with Northvolt has led to the creation of a low-carbon battery cell for heavy-duty applications.

The CEO at Scania CV AB, Christian Levin, commented, “We are excited to announce this transformative move, prepared in close collaboration with our suppliers and partners. Implementing green purchasing requirements is both a question of making sustainable transport a reality and ensuring access to low-carbon material in a rapidly increasing competition.” He continued, emphasising that the initiative will be expanding beyond Scania’s European operations, “We are now working on extending the scope of the decarbonisation target, so that the strategy eventually will cover the entire global supply chain.”

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