Decarbonisation

Decarbonisation

Decarbonisation is one of our four focus areas for supply chain sustainability. The term decarbonisation means removal or significant reduction of carbon dioxide (CO2) output into the atmosphere. This term includes all greenhouse gas emissions as all greenhouse gas emissions are translated into Co2 equivalents to measure and compare them. In order to know where our supply chain emissions come from, and what we should be focusing on, a 2030 supply chain decarbonization strategy has been created. Based on a life cycle analysis on both internal combustion engine vehicle (ICEV) and battery electric vehicle (BEV), we know that the majority, up to 80% of our automotive supply chain emissions, come from five hotspots: battery, steel, cast iron, and aluminium. These have therefore been selected as the key focus in our 2030 supply chain decarbonization strategy, and decarbonization roadmaps and targets have been created for each one of them.

Decarbonisation Requirements for Hotspot Materials and Components

They key focus areas (hotspot materials and components) within the 2030 decarbonisation strategy are: Battery, Flat Steel, Long Steel, Cast Iron, Wrought Aluminium (extruded, forged, rolled) and Cast Aluminium.
For you as a supplier: In order to be nominated, suppliers are expected to sign and follow the requirement specifications if they work with a relevant hotspot material or component. The requirement specifications for each hotspot are linked below.
These hotspot materials have specific 2025 and 2030 targets based on a few requirements that we place on our suppliers. Here is an overview on how the roadmaps look like for each of the hotspot materials:

For batteries we have developed the following requirements and targets:

2025

  • 100% renewable electricity in cell, cathode active material and anode production

2030: 100% green batteries

  • 100% green thermal energy in cell production and cathode active material production
  • requirement on recycled content and sustainable lithium to be analysed further

For flat steel we have developed the following requirements and targets:

2025

  • 50% fossil free electricity used by tier 1 suppliers with a production site
  • third party verified cradle-to-gate lifecycle analysis (LCA) to be delivered to Scania within 1 year from start of production

2030: 100% green flat steel

  • 100% H2 DRI + EAF (directly reduced iron with hydrogen + electric arc furnace) with or without external scrap
  • 100% fossil free electricity in H2 DRI + EAF
  • 100% fossil free electricity used by tier 1 suppliers with a production site

For long steel we have developed the following requirements and targets:

2025

  • 50% fossil free electricity in EAF (electric arc furnace)
  • 50% fossil free electricity used by tier 1 suppliers with a production site

2030: 100% green long steel

  • 100% EAF
  • 100% scrap (exception alloying compounds, ≤1% virgin iron); else H2 DRI is accepted
  • 100% fossil free electricity in EAF (and in H2 DRI + EAF, if applied)
  • 100% fossil free electricity used by tier 1 suppliers with a production site

For cast iron we have developed the following requirements and targets:

2025

  • 100% induction furnace or EAF
  • 50% fossil free electricity in foundries
  • Scrap requirements by material
  • 50% fossil free electricity used by tier 1 suppliers with a production site

2030: 100% green cast iron

  • 100% fossil free electricity in foundries
  • 100% fossil free electricity used by tier 1 suppliers with a production

For wrought aluminium we have developed the following requirements and targets:

2025

  • 50% fossil free electricity in smelters
  • 50% fossil free electricity used by tier 1 suppliers with a production site

2030: 100% green wrought aluminium

  • 100% fossil free electricity in smelters
  • 100% fossil free electricity used by tier 1 suppliers with a production site
  • potential requirement on recycled content or inert anode electrolysis-based aluminium to be analysed further

For cast aluminium we have developed the following requirements and targets:

2025

  • 100% post-consumer aluminium
  • 50% fossil free energy in foundries
  • 50% fossil free electricity used by tier 1 suppliers with a production site

2030: 100% green cast aluminium

  • 100% fossil free energy in foundries
  • 100% fossil free electricity used by tier 1 suppliers with a production site