HOW CAN SCANIA ACCELERATE SUSTAINABLE DEVELOPMENT?
This question is at the heart of ASAP and we’re excited to share what we’ve learned about Scania, a world leading manufacturer of commercial vehicles and transport solution provider. There is a lot to say about Scanias sustainability work and the content on this page is a selection made by the ASAP team. The aim is to provide some insights into the transport industry, its challenges and opportunities, and to focus on Scanias core business and role as a change agent for a sustainable society. In other words, how Scania uses their competencies and resources to accelerate sustainable development. Want to learn more? Check out Scanias own links at the bottom of this page. Enjoy!
Did you know?
- Company superpowers: to innovate and engage people!
- 50,000 employees
- Operates worldwide, employees in 100 countries
- European truck market share was 16.2% in 2017
- CEO is Henrik Henriksson
- Sustainability Manager is Andreas Follér
- Gender distribution globally (% women/men) is 30/70 for entire workforce, 18/82 for executive officers and 27/73 for board of directors
- As of 2018 Scania has more than 300,000 connected vehicles, that enables collection of big data that will help asses fuel consumption, idling, braking, and productivity etc.
What will the future of transport look like?
With population growth and a more globalized world, society's demand for transport of both goods and people is increasing. Urban areas are expanding at an unprecedented rate and its predicted that in 2050 about 68% of the world’s population will live in cities, compared to 55% as of today. Urbanization, digitalization and the urgency to break today’s dominant correlation between transport flows and carbon emissions are all global drivers affecting the whole industry. The planet - and the transport industry - is approaching a tipping point. There is a shift in demand where sustainable and fossil-free transport solutions become the only viable option and the “the new normal”; a system where we move people and goods, while contributing to economic and social development, without jeopardising human health or endangering the environment. These transformations is a challenge for the industry and for Scania, but Scania sees itself as part of this ecosystem and aims to be the industry leader that together with its partners and customers are driving the shift towards a sustainable transport system. On this fascinating journey Scania brings some building blocks for a successful company; the corporate culture, Scania modular product system and also access to a large population of connected vehicle data. There is huge potential in the major disruptive innovations in the area of fuels, connectivity and electrification. However, there is no magical solution applicable for the whole world in order to rapidly make way for a sustainable transport system - conditions are very different across the world. A holistic approach is therefore needed and Scania explores and innovates in the areas of “better”, “different” and “smarter”. No one knows what the future will look like, but one thing is needed for sure - and it’s spelled partnership. For Scania, partnerships go hand-in-hand with innovation and in Scania’s aim to drive the shift towards a sustainable transport system.
To transform the transport industry, Scania needs to work on several fronts. We think it’s amazing to see how a deep-rooted engineering company drives the shift also by data collection, behavioural change and city planning. Below we describe three ways in which Scania accelerates sustainable development using their core competence in innovation, data and engineering - check it out!
SCANIA MAKES ENERGY EFFICIENCY BETTER
At home you might turn of the light when you leave a room to save some hundred watts here and there; the same goes for energy efficiency and vehicles. Scania looks into every detail on the vehicle to lower fuel consumption, which is a key driver of both environmental footprint and costs for the customer. They optimize design and weight, eliminate friction in the engine, adjust tyre pressure - you name it! To give an example: with their new truck generation the fuel consumption is on average 5% lower than before due to improved powertrains (mechanism that transmits the drive from the engine of a vehicle to its axle) and better aerodynamics. But fuel efficiency is more than the product itself - it’s also about understanding the perspective of the driver. Driver training, support systems like topographic cruise control and adapted maintenance plans can results in an average of 10% of fuel and CO2 reduction.
SCANIA MAKES WAY FOR DIFFERENT WAYS TO POWER VEHICLES
Cities worldwide are forced to address the severe issues of poor air quality, noise and traffic jams, with citizens’ health at the center of their concern. Yet, fossil fuels remain the dominant power source for vehicles across the planet. Since many years, Scania is a pioneer in making biofuel-adapted engines and thus driving transformation within the current system of combustion engines. Amazing advancement take place in the area of emission-free electric vehicles, but there are still challenges in terms of adapting current infrastructure and charging for long-haul drives. And as you might know, electrification is only a good option as long as the battery components and the electricity are sourced in a sustainable way. Scania is developing several applications for electrified vehicles, including continuous charging along electric roads. Along with innovation, partnership is a key factor for a fossil-free transport sector and Scania works with stakeholders from across the value chain. They partner up with local municipalities and city planners to transfer expertise and build demand for more sustainable transport solutions; a good example is the construction of the Bus Rapid Transport (BRT) system with Scanias gas-powered buses in the Colombian city Cartagena de Indias. They have also partnered up with Northvolt, founded in 2016 with the mission to build the world’s greenest battery, to develop and commercialize battery cell technology for heavy commercial vehicles.
SCANIA MAKES TRANSPORT SMARTER AND SAFER
Scania has more than 300 000 (!) connected vehicles with amazing potential to benefit customers and the planet. Why? Because with data collected and interpreted in the right way there is huge potential to plan better and make driving more efficient: decrease and shorten stops, reduce waste from unnecessary oil changes and improve truck filling rates. Did you know that long-haulage operations in Europe have an average filling rate of only 60 percent today? Another reason why connectivity is a big thing here is because it enables support tools for drivers. For example they can receive live feedback, showing how braking, acceleration and gear-shifting affect fuel consumption and road safety. Another example is “Platooning” , which is a fancy word for inter-vehicle communication, that allows vehicles to travel safely in close formation on the road with the potential to cut fuel consumption by up to 12 % thanks to reduced wind resistance.
What about responsible business?
As a global transport solution provider with around 50 000 employees, customers in 100 countries as well as 1,000 direct and 10,000 indirect suppliers there is no doubt that Scania has an impact on society both locally and globally. Thus, it has an obligation to operate responsibly - to do things right. In this text we will not delve into Scanias extensive work in the area of responsible business, such as sourcing, production, human rights and all the other themes they relentlessly work with, every day. This does NOT mean that it’s not important or that Scania is perfect in every way, but for the purpose of this text we’ve chosen to leave it out. But hey, at the bottom of this page you can see our favorite tips for further reading!
Fossil-free commercial transports in 2050?
Think about this for a minute: second only to the energy industry, transport is the largest source of global CO2 emissions, currently contributing to nearly a quarter of global emissions. Commercial road transport represents nearly a quarter of that. In the following sentence Henrik Henriksson, CEO and President of Scania, sums up the journey going forward: “Reaching zero CO2 emissions in our sector in the timeframe of the Paris Agreement is attainable but will call for change at an unprecedented high speed, and for serious and joint private and public sector commitment”. In other words there is optimism, but speed and partnerships are a must. A fossil free commercial transport system is not only possible but also financially viable from a societal view. This is the conclusions from “The Pathway study” initiated by Scania. However, transformations to cut carbon emissions need to scale up a.s.a.p, as new vehicles replace old ones at a relatively slow pace which means that older vehicles with higher emissions have to be accounted for in the calculations. Also, a mix of measures is required to cut carbon emissions; growth in battery-powered electric vehicles as well as optimization of current systems, including investments in bio-fuelled vehicles. Electrification is not an overnight solution, since it requires significant infrastructure investments to provide full-scale charging system and non-fossil energy. However, becoming fossil free requires that organisations, government and businesses are willing to work together and willing to start now.
Fossil-free Sweden, which is a government initiative to accelerate climate adaptation in Sweden has in cooperation with Scania and Volvo Group recently identified five Swedish innovation areas with a great potential to display large-scale fossil-free solutions. Scaling these innovations up would result in a proof of concept and inspiration for extensive fossil-free solutions, encouraging other governments and procurers to make the shift. Industry players are also joining forces to accelerate the speed of change by taking a systematic approach; H&M group (retailer and transport buyer), E.ON (energy solutions and supply), Scania (vehicle manufacturing) and Siemens (infrastructure) has together formed a coalition to build knowledge and identify high impact innovation and partnerships within their operations and respective ecosystems. What do you think will be the outcome from this coalition?