Scania has introduced new green targets for its suppliers by setting mandatory purchasing requirements.
In a bid to minimise the environmental impact of the company’s supply chain for European production, it’s now working with suppliers to source greener materials.
This comes as part of Scania’s larger decarbonisation strategy which targets using green steel, batteries, aluminium and cast iron in its trucks by 2030. These areas are of particular concern as they contribute to around 80% of the carbon emissions in production materials.
Christian Levin, CEO at Scania CV AB, 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.”
In order to meet the ‘green’ standard, Scania’s suppliers must be working to eliminate emissions where possible. This could be using electricity from renewable sources and/or recycled materials. Using green energy in the production of batteries or green hydrogen for flat steel would meet the new targets set to reduce emissions.
Levin underlined that this initiative will expand beyond Scania’s European operations as he added: “We are now working on extending the scope of the decarbonisation target, so that the strategy eventually will cover the entire global supply chain.”
Instead of just asking its suppliers to reduce their emissions, implementing ‘greenness’ as a mandatory purchasing requirement takes some accountability over the materials Scania choses to use in its products.
In its decarbonisation strategy so far, this year Scania announced its first order from H2 Green Steel. The company also set a joint target with SSAB to decarbonise its steel deliveries by 2030. Also, in partnership with Northvolt, Scania has developed a low carbon battery cell for heavy-duty applications.