Scania and the road to sustainability

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Scania and the road to sustainability

While the transport of goods from one point to another has long been identified as one of the major problems in the creation of global emissions, steps are being taken to tackle the issue by one of the world's most prominent truck manufacturers.

Henrik Henriksson, the president and chief executive of Scania, has said that the company is eager to be instrumental in finding a resolution to the problems that have connected the transport sector with environmental concerns.

“We are part of the problem but we would like to be part of the solution," he told the forum at Lombard Odier’s Senior Management Conference in Geneva. His comments came as part of an on-going series of discussions between Lombard Odier and industry leaders about how a sustainable future can be achieved for all of society.

“We are part of the problem but we would like to be part of the solution", Henrik Henriksson told the forum at Lombard Odier’s Senior Management Conference in Geneva.

The transport sector is the second largest source of global CO₂ emissions. In total, it contributes nearly a quarter of global emissions. Within that figure, commercial road transport represents nearly a quarter of the total.

At Scania, one of the world's major manufacturers of heavy-duty trucks and buses, the company is pushing for sustainability across its vehicle fleet and also driving the shift towards a more sustainable transport system.
 

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“Sustainable strategy needs to be built into everything we do. Either you are on this journey or you are late and if you are late, you have a problem. We will soon reach a tipping point where it is no longer possible to run a business that is not sustainable," he said.

"If you are not sustainable, you will not be able to sell your products, no one will invest in your company and no one will want to work for you. That is our purpose and we believe we can do it because we have it in our heritage, we have it in our blood, we have it in our culture and in our values in the company.”

If you are not sustainable, you will not be able to sell your products, no one will invest in your company and no one will want to work for you…

At COP 21 (United Nations Climate Change Conference) in Paris in 2015, it was agreed that a fossil-free transport system should be in place no later than 2050. This means that we need to halve our CO₂ footprint every 10 years - a process that needs to start immediately. Amongst the measures needed to cut carbon emissions is a growth in battery-powered electric vehicles and the optimisation of current systems, such as bio-fuelled vehicles, said Henriksson.

The process of electrification will take some time, he said, since it requires significant infrastructure investment amongst other things.

“Eventually electrification will help us bend the curve but we need to start using biofuels in the short term,” said Henriksson.

In all, Scania has more than 300,000 connected vehicles, which send information every minute on how they are performing, how much they are loaded, who is driving them and how the driver is performing. This information collection helps assess fuel consumption, idling, braking, and productivity - with the eventual aim of a more efficient drive. Henriksson said data collection is critical to provide better products and services

“Having a fanatic obsession about customers and their business allows you to be a premium brand. If you know your customers and their needs, you are able to charge for value. We are proud to be more expensive.”

Important information

This document is issued by Bank Lombard Odier & Co Ltd or an entity of the Group (hereinafter “Lombard Odier”). It is not intended for distribution, publication, or use in any jurisdiction where such distribution, publication, or use would be unlawful, nor is it aimed at any person or entity to whom it would be unlawful to address such a document. This document was not prepared by the Financial Research Department of Lombard Odier.

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