Scania Implements Mandatory Green Purchasing Requirements for its Supply Chain

Strategic Shift towards Sustainable Transport

Scania, the Swedish automotive industry giant, has announced a major shift in its purchasing policies, now mandating green supply chain requirements. This move reflects Scania’s commitment to leveraging its market influence to foster a sustainable transport system.

CEO’s Vision for Sustainable and Competitive Operations

Christian Levin, CEO at Scania, shared his vision for this transformative strategy, emphasizing the dual goals of making sustainable transport viable and ensuring access to low-carbon materials amidst increasing competition. This initiative was developed in close collaboration with suppliers and partners.

Focus on Key Emission Sources

By 2030, Scania aims for all purchases of steel, batteries, aluminium, and cast iron for its European operations to be 100 percent green. These four components are significant, accounting for approximately 80 percent of carbon emissions from Scania’s production materials. The company’s criteria for ‘green’ involve the use of new technologies, green electricity, and recycled materials. Specific focus areas include employing green energy in battery production and transitioning from coal to green hydrogen in flat steel production.

Implementing Green Standards in Purchasing

Scania is possibly the first in the industry to translate these environmental objectives into mandatory purchasing conditions. These requirements will be pivotal in negotiations for future contracts and reassessments of existing agreements, particularly concerning the supply of batteries, steel, aluminium, and cast iron for European production.

Collaborations and Future Plans

Scania has already begun executing this strategy, evidenced by their first order of green steel from H2 Green Steel and a joint decarbonization goal with SSAB for all steel deliveries by 2030. The company aims to start receiving green steel for its European production by 2026. Additionally, Scania’s collaboration with Northvolt has led to the development of a bespoke battery cell for heavy-duty transportation, boasting exceptional performance and a minimal carbon footprint.

Looking ahead, Scania is working to expand this decarbonization strategy to encompass its global supply chain, reinforcing its position as a leader in sustainable automotive practices.