Scania AB

No leading practices were identified for this company.

No leading practices were identified for this company.

No leading practices were identified for this company.

No leading practices were identified for this company.

In order to decarbonise its supply chain, Scania has set a target for using 100% green batteries, 100% green steel, 100% green aluminium and 100% green cast iron in its European production system by 2030. To reach this target, the company is working with Northvolt, a Swedish company that aims to produce the world’s greenest batteries.

Although Scania has implemented board-level oversight of climate change, there is no evidence that its board has adequate climate expertise. A lack of expertise at board or equivalent level could be a barrier to the successful management of the company’s low-carbon transition. Scania assesses the materiality of climate-related risks and opportunities. However, this is not in relation to a climate change scenario analysis and was therefore not scored in this benchmark. The company should assess the risks and opportunities associated with climate change in relation to a climate change scenario analysis to inform its transition plan.

Scania reports its low-carbon and total capital expenditure (CapEx) for 2023, with low-carbon CapEx accounting for 17% of the total. However, there is no publicly reported evidence of the company reporting this share for 2024 and 2025. The company invested USD 1.06 billion in research and development (R&D) in 2023. However, the proportion of its R&D expenditure in low-carbon vehicles and energies is below 5%. Increasing R&D expenditure on low-carbon vehicles and energies will be essential for Scania to develop a low-carbon fleet.

Most of Scania’s client engagement initiatives are in the early stages. To meet its target of 80% reduction in client emissions by 2025 (compared to 2015 levels), the company should set out a clear strategy to promote its low-carbon solutions to clients. This could include providing financial incentives, such as discounts, or conducting marketing campaigns. While Scania encourages its suppliers to set science-based targets, the company can go further by developing joint low-carbon research and development (R&D) projects.

No evidence was found of the company’s commitment to social dialogue or of the categories of stakeholders the company engages with on a just transition. Furthermore, no evidence was found to demonstrate the company’s ongoing social dialogue and meaningful engagement with affected stakeholders.  No evidence was found of the company undertaking low-carbon transition planning to mitigate the social impacts of the transition on workers, affected stakeholders and its business relationships. Additionally, no evidence was found to demonstrate the company’s engagement in social dialogue and with stakeholders in its just transition planning.

No public commitment by the company was found stating its intention to create and support access to green and decent jobs as part of the low-carbon transition. Moreover, no evidence was found of the company’s actions to promote these jobs in a way that ensures gender balance and inclusion of vulnerable groups. Additionally, no relevant disclosure was found of the company’s assessment of employment dislocation risks.   No public commitment by the company was found stating its intention to reskill and upskill workers displaced by the transition to a low-carbon economy. Additionally, no evidence was found that the company reskills and upskills workers in a way that ensures gender balance and inclusion of vulnerable groups.

No relevant disclosure was found to show if the company identifies impacts of the low-carbon transition on social protection for workers and affected stakeholders, nor how it contributes to social protection. Additionally, no evidence was found that the company expects its business relationships to contribute to the social protection of their workers and affected stakeholders.  No relevant disclosure was found to show how the company identifies any misalignment of its lobbying activities with policies and regulations that support the just transition, nor of the measures it takes to address misalignment. Furthermore, no evidence was found that the company lobbies for policies and regulations for green and decent job creation; retention, education and reskilling; and social protection for workers.

The company commits to respecting human rights and the ILO fundamental rights at work, and it expects its business relationships to respect the ILO fundamental rights at work. However, no evidence was found of the company’s process to identify, assess and mitigate salient human rights risks in its own operations and its supply chain. Moreover, no evidence was found of the company disclosing the stakeholders whose human rights have been affected by its activities. The company does, however, have a grievance mechanism available to workers and external stakeholders.

The company commits to respecting worker health and safety and it discloses some information on collective bargaining and workforce diversity fundamentals. However, it can strengthen its disclosure on these subjects. No evidence was found of the company having a public commitment towards gender equality and women’s empowerment. Further, the company does not disclose a time-bound target for paying all workers a living wage or report that it has achieved paying all workers a living wage.

The company commits to personal data protection, and it has anti-bribery and anti-corruption policies. However, the company can strengthen its disclosure on these subjects, as well as on its political engagement approach. While the company has a publicly available tax strategy, it does not apply to all locations of operation.