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Scania turns green supply target into requirements

Published by , Editorial Assistant
Global Hydrogen Review,


Determined to use its spending power to drive the shift towards a sustainable transport system, Scania has turned its supply chain decarbonisation target into mandatory purchasing requirements.

"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," said Christian Levin, CEO of Scania.

Scania has introduced an industry-leading strategy to significantly remove supply chain emissions. By 2030, the company targets 100% green purchases of steel, batteries, aluminium and cast iron for its European operations.

These four hotspots constitute around 80% of carbon emissions arising from Scania's production materials. Scania's definition of 'green' requires eliminating the main sources of emissions by utilising new technologies, green electricity and/or recycled material. In batteries, for example, access to green energy in production is decisive. In flat steel production, replacing coal with green hydrogen is key.

Scania will implement these levers as mandatory purchasing requirements. Requirements on technologies mentioned will be on the table in negotiations of future contracts, as well as in reviews of existing ones regarding deliveries of batteries, steel, aluminium and cast iron for Scania's European production.

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

Read the article online at: https://www.globalhydrogenreview.com/hydrogen/24112023/scania-turns-green-supply-target-into-requirements/

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