Scania implements mandatory green supply chain standards

In its commitment to leverage its financial influence to foster a transition to a sustainable transportation system, the Swedish commercial vehicles manufacturer Scania has transformed its goal of decarbonizing the supply chain into compulsory purchasing standards.

Christian Levin, the CEO of Scania, said, "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."

Scania has implemented a groundbreaking initiative to reduce supply chain emissions substantially. The company aims to achieve 100 per cent environmentally friendly procurement of aluminium, steel, batteries, and cast iron for its European operations by 2030.

Approximately 80 per cent of carbon emissions from Scania's production materials emanate from four primary hotspots. Scania's interpretation of "green" entails eradicating primary emission sources through adopting new technologies, green electricity, and recycled materials. For instance, the production of batteries necessitates reliance on green energy for a decisive reduction in emissions. In the realm of flat steel production, the pivotal strategy involves substituting coal with green hydrogen.

As perhaps the pioneer in the industry, Scania has incorporated these levers as obligatory criteria for procurement. The specifications related to the mentioned technologies will feature prominently in discussions for upcoming contracts and evaluations of current ones, particularly concerning the supply of batteries, steel, aluminium, and cast iron for Scania's European production.