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Joining the UN Race to Zero
We have joined the UN Race to Zero by sending in the ‘Business Ambition for 1.5°C Commitment Letter’ to the Science-Based Targets initiative. We now have until October 14, 2023, to communicate our science-based targets. We are aligning our climate mitigation targets with the most ambitious aim of the Paris climate agreement and EU’s Fit for 55%.
‘Reaching our climate targets will require bold decisions
and focussed investments.’
Lars Hägerborg
Senior Vice President & Chief Financial Officer
Zero-carbon emissions
from our products & solutions
The EU Green Deal will make businesses accountable for CO2 emissions across their entire value chains. Since reducing emissions has a long lead time, we need to act now to ensure that we stay ahead of our stakeholders’ expectations. Latest by 2050, we are committed to zero emissions across our entire value chain. As a part of TICO with its focus on five-year action plans, we have been focusing on ever more energy-efficient technologies, electrification, weight reduction, energy loss reduction, hydrogen and fuel cell technologies for over 30 years.
Our 4 steps towards zero emissions:
1. Monitor energy use
2. Avoid energy waste
3. Innovate through energy efficiency
4. Innovate through low-carbon solutions
Zero-carbon emissions
from our suppliers
Upstream scope 3 emissions generated by our suppliers account for approximately 10% to 15% of our total carbon footprint. EcoVadis already launched a supply chain carbon tool, which we will roll out to our suppliers together with our sustainability assessments. This way we can determine the performance level of our suppliers in terms of environment, people, business ethics and supply chain. We also included specific requirements in our Code of Conduct for our suppliers, to encourage our suppliers to start focussing on reducing their emissions.
Zero-carbon emissions
from our operations
We are committed to net-zero emissions from our own operations by 2030. Of our total energy usage in FY21, 33% came from renewable sources. We completed a switch to 100% renewable electricity in FY21 as we are committed to early action. Our Swedish factory in Mjölby is one of the first factories in Europe that have achieved net-zero manufacturing, avoiding 3,000 tonnes of CO2 emissions every year compared to 2015. Eight entities are ISO 50001 certified, saving significantly on energy and CO2 emissions.
Environmental management
All our factories and several sales companies are certified to the ISO 14001 standard. Our Swedish factory successfully reduced wastewater by 90%.
We disclose Substances of Very High Concern to EU ECHA via their SCIP database, our REACH declaration is available on our website.
The EU Green Deal will drive customers to choose the most sustainable products. Providing unprecedent levels of transparency on our products will push us to add customer value in new ways.
Circular economy
Circular economy is an exciting opportunity to continue our journey of the remanufacturing of trucks that we started in our Used Truck facility in Sweden in collaboration with the University of Linköping. Designing our products to be upgraded and prolonging their lifetime, will have a positive sustainable impact.
We aim to reduce the ratio of scrapped trucks to less than 20% through our Second Life strategy. Since FY13, we have been able to sell almost 48% more used trucks, all while reducing the number of scrapped units by 3 percentage points.
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