Scania Focusing on Becoming Industry Leader in Sustainability

Volkswagen released a report today indicating that sustainability is the way of the future at Scania, as well as the overall transport industry.

Taking a holistic view of Scania’s goals over the long-term, Volkswagen Group said today that Scania’s 2013 sustainability report highlights the importance of sustainability for business success in the future. The goal, says Volkswagen, is for Scania to be the leader in sustainable transport solutions.

Sustainability will create greater value for customers of Scania, Volkswagen said, as well as shareholders, society and overall for the company itself. But, how will Scania achieve its goals?

It’s a new age, and Martin Lundstedt, president and CEO of Scania, says it is imperative that future growth take a new path. “We need to chase down every opportunity we have to shift the sustainable transport needle, cut carbon, improve logistics flows and make clean mobility easier.” Sustainable transport is profitable transport, Lundstedt said confidently, and added that focusing on becoming a leader in sustainability in the industry will deliver good business results.

There are three areas that the 2013 report indicated should be the focus of Scania’s sustainability challenge: Proactively engaging in transforming the transport industry; raising standards and addressing risks in emerging markets; and embedding sustainability across the organization.

The report revealed several areas that will play large roles Scania’s future sustainability plans. They included the following:

• Scania production and logistics operations defined a 2020 target to halve its energy use per manufactured vehicle, using 2010 as its baseline.
• Increased sales of Ecolution by Scania, which is a toolbox of services that help customers dramatically reduce cost and carbon footprint while improving road safety. At the end of 2013 more than 3,000 Ecolution by Scania vehicles were on the road.
• Increased focus on gender diversity. In 2014, Scania's global management teams will identify and initiate actions to increase the share of women in executive positions, setting clear targets for change.
• Developed an updated sustainable sourcing program, formally adopted by the Executive Board in 2014.

In January, Scania was listed among Corporate Knights’ Global 100 most sustainable companies in the world. Ranked 38th, Scania was the highest ranked Swedish company, and the second highest in the automotive industry after BMW.

Volkswagen currently has a deal on the table with Scania, to buy out shareholders and own at least 90% of the company; the deal must be completed by April 25, but as of now some minority shareholders are rejecting the cash offer.