Logo: Scania

Enduring Values for Customers, Employees and Society

Photo: Scania Truck

Scania is one of the world’s leading manufacturers of heavy-duty trucks, urban and intercity buses, and industrial and marine engines. The company has been a Volkswagen Group brand since 2008. On our way to becoming a leading provider of sustainable transportation – a key corporate objective – Scania creates value for customers, employees and society alike. Scania focuses on producing efficient, low-carbon solutions that enhance customer profitability, well aware that success in these efforts depends on close collaboration and partnership with the aim of finding solutions along the entire value chain. By succeeding in this ambition, we strengthen our own competitiveness, profitability and future success. In 2015, Scania’s sales revenue totaled €9.7 billion.

2015 Highlights

“Scania citywide - First city bus with hybrid drive takes regional market by storm.”

Running on Biodiesel, Biogas and Bioethanol

Unveiled during the reporting year, the Scania Interlink Low Decker is the ideal choice for intercity bus services. Different versions of the bus are capable of running on diesel, biodiesel, biogas or bioethanol. The Scania Interlink LD combines coach-standard ride quality, seat comfort and interior elegance with the robust capabilities of a city/commuter bus. For example, the center door can be fitted with a wheelchair lift.

Citywide Hybrid Bus

The Scania Citywide Hybrid is the first city/commuter bus with efficient, eco-friendly hybrid drive that can also be supplied with EU class II specifications. This new vehicle is the next step in Scania’s journey to providing carbon-neutral local public transit solutions. With its new design, now also available with class II specifications, the Scania Citywide Hybrid is suitable for operation over longer and more demanding routes, at speeds of up to 100 km/h.

Scania’s hybrid system is part of Scania’s modularized powertrain concept for buses and trucks, a highly efficient approach that can be used to create a very wide range of powertrain combinations. Hybrid technology forms an important part of Scania’s long-term strategy for powertrain electrification in both buses and trucks.

“Doing things right” Employee Guide

Only with a precise understanding of the principles of ethical business practice can employees be expected to act correctly in everyday business situations. Scania’s employee guide “Doing things right” and the related e-training program use specific scenarios to help employees decide on the right courses of action when they are confronted with ambiguous situations. Topics include gifts and entertainment, competition and antitrust law, bribery, fraud and conflicts of interest.

Other Projects

Scania Supports Vocational Training in Northern Iraq

The Swedish Academy for Training in Erbil was set up to combat the skilled labor drain from Iraq. SAT is a public-private partnership which aims to prepare young people for the Iraqi labor market and to restore the country’s social fabric. The Academy’s work is now serving as a model for other countries too.

Scania has had a presence in Iraq for more than 50 years, and feels a strong sense of obligation towards its Iraqi customers. Our many decades of involvement in this country put us in a somewhat exceptional position. Although we suspended sales of our vehicles during the United Nations trade embargo, we continued to service our Iraqi customers’ existing vehicles. When the embargo was lifted, we were one of the first companies to return to the country.

Since one of the inevitable byproducts of war is brain drain, the only way we could ensure our continued success in Iraq and rebuild our service network was to train up local specialists. The challenge was to find the most efficient way of doing this.

The solution took the form of a groundbreaking partnership with the Swedish International Development Cooperation Authority (SIDA), the United Nations Industrial Development Organization (UNIDO) and the Kurdistan Regional Government Ministry of Labor and Social Affairs (MoLSA), with the aim of setting up a pioneering vocational training center. Qanadeel Al Rafidain (QAR), Scania’s official distributor in Iraq, is a key player in ensuring the long-term success of the project. Among other things, the company is responsible for running and coordinating the Academy, while knowledge and skills transfer is handled by Scania.

The partners’ joint goals are to improve the local and national job prospects of young Iraqis and, by training qualified service technicians, to simultaneously make a contribution to social development. The outcome of their efforts is the Swedish Academy for Training in Erbil, capital of the autonomous region of Kurdistan – the first vocational training center of its kind in the region. With 13 local employees, the Academy provides driver training and courses in mechanical engineering, English, IT, sales and administration.

2015 highlights at a glance: 

  • 414 students completed training or continuing education courses at the Academy
  • 45% of all students were women
  • 19% of all students on the mechanical engineering course were women – compared with just 3% in Sweden and 5-7% (2007-2013) in Denmark
  • 29 employees of various companies were trained as technicians at the Academy

Challenges

Challenges are posed by a variety of developments in the region:

  1. political and economic disputes between the Kurdish regional government and the central government in Baghdad;
  2. the attempt by the organization known as IS to capture Erbil/Kurdistan and the constant threat from this organization, which regularly launches attacks from positions near the autonomous Kurdish areas;
  3. flagging domestic trade;
  4. the resulting negative impacts on passenger and freight transport inside the country.

Health – HIV Prevention in South Africa

As a member of the Swedish Workplace HIV/Aids Program (SWHAP), Scania has widened the focus of its workplace health and safety activities beyond the company itself and is helping to promote HIV/Aids awareness among its customers and the general public. Scania advises other companies in the region on the implementation of health and wellbeing programs, and publishes articles on health-related topics in local newspapers. In 2014, Scania won the SWHAP Achievement Award for Most Comprehensive Program.

Ecolution reduces fuel consumption

“Ecolution by Scania” is a comprehensive package for reducing fuel consumption and emissions, and consequently transport companies’ operating costs.

Based on an in-depth understanding of our customers’ operations, Scania now offers a comprehensive package that sets new standards in fuel economy. As well as substantial below-the-line savings for customers, the package also results in significant emission reductions. The growing importance of climate protection, combined with increasingly intense competition within the transport industry, make this a win-win scenario.

Ecolution by Scania is capable of reducing fuel consumption by more than 10%. This is achieved by an extensive package of measures which include vehicle-related measures for optimizing fuel consumption and reducing CO2 emissions, fuel-efficiency training for drivers, and personalized driver coaching based on vehicle and environmental data supplied by Scania Fleet Management and Maintenance+, an extended maintenance program that focuses on sustainable fuel economy and includes checkpoints not normally covered by maintenance programs.

1,996 Ecolution by Scania packages were sold in 2015, up from 1,305 in 2014. The packages are available in 14 countries.

NILE Transforms Inbound Logistics

Scania’s exemplary commitment to sustainable transport solutions starts within the company itself. The NILE (New Inbound Logistics) project was launched to improve the efficiency of Scania’s inbound logistics operations. As well as reducing CO2 emissions, the aim of this project is also to reduce the total volume of waste in the supply chain. This project demonstrates the significant improvements that can be achieved by taking a systems-level approach.

Launched in 2013 and completed in early 2015, the transformation program has played an important role in promoting a general rethink in the logistics sector. As a result of the changes that have been implemented, Scania has improved sustainability, optimized capacity utilization and reduced inventory, while simultaneously synchronizing logistics operations more precisely with production workflows and reducing outbound traffic fluctuations.

Fuel Masters

Scania Fuel Masters is a new, interactive website launched by Scania in October. The site enables truck drivers to compare their average fuel consumption per 100 km with that of other drivers by posting their “personal bests” to the website from their smartphones.

Stakeholder Dialogue

Take Control

At the center of Scania’s stakeholder dialogue in 2015 was a series of conferences with Scania customers and customers’ customers, under the banner “Take Control”. One of the main topics addressed was how to further reduce current levels of CO2 emissions from freight transport. Renewable energies, CO2 mitigation measures, supplier standards, and understanding and applying traffic flow principles were among the approaches discussed.

Swedish Leadership on Sustainable Development (SLSD)

Scania is an active member of SLSD, a multi-stakeholder network for sustainable development. The members of this network share knowledge and carry out joint projects to promote sustainable development and reduce poverty. In addition to climate and environmental issues, focal topics in 2015 included promoting the decent work agenda and tackling corruption.