Scania makes its Green Supply Chain targets mandatory

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Scania has turned its ambition to use only green production materials from its supply chain into a mandatory purchasing requirement.

The decision comes after Scania introduced an industry-leading decarbonisation strategy designed to remove as many emissions as possible from the supply chain.

By 2030, the ambition is to only use steel, batteries, aluminium and cast iron from green supply chains for European operations. These four products account for around 80% of carbon emissions in the 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.”

Scania defines ‘green’ as eliminating the main sources of emissions by utilising new technologies, such as green electricity and/or recycled material.

For example, using green energy in the production of batteries or green hydrogen for flat steel.

Christian Levin adds: “We are now working on extending the scope of the decarbonisation target, so that the strategy eventually will cover the entire global supply chain.”

As one of the first in the industry to make ordering green materials compulsory, Scania will be working closely with its supply chain partners to help them meet these ambitious requirements.

Supplier engagement will be fundamental to make this green transition successful, and important progress is being made.

This spring, Scania placed its first order of green steel from H2 Green Steel. Earlier this month, a joint target was announced with SSAB to decarbonise all current steel deliveries in 2030.

While Scania and Northvolt have developed a battery cell specifically designed for heavy-duty transportation with world-class performance and a uniquely low carbon footprint.