Scania annual report 2003

ENVIRONMENT AND ECONOMICS
Scania’s sustainable development
Scania’s operations affect the surrounding
society not only economically,
but also environmentally. In
addition to its regular financial
reporting, Scania performs yearly
follow-ups of operations that affect
the environment.
The aim of Scania’s global production
strategy is to move closer to customers,
while at the same time utilising all the
elements of its production system in the
most efficient possible way. The company’s
production base is found in the
European Union and Latin America. Most
sales occur in Europe, but the marketing
organisation operates all over the world
except in North America. By having a
local presence, Scania establishes longterm
relationships between company
and society, which benefits mutual
development.
Environment and economics
Scania performs yearly follow-ups of such
data as its own raw material and chemical
The reporting in this section was inspired
by recommendations from the Global
Reporting Initiative (GRI). The section
presents certain financial and environmental
data.
use, as well as energy and water use.
Follow-up and reporting of Group-wide
environmental targets also occur each
year. An in-depth account of activities and
their results can be found on Scania’s web
site (www.scania.com).
During 2003, Scania’s costs for raw
materials, chemicals, energy and water totalled
about SEK 1,705 m., equivalent to
3.4 percent of Scania’s sales. Transport
expenses amounted to SEK 1,500 m.
Costs of soil and groundwater clean-up
work in Meppel amounted to SEK 2.5 m.
Emissions of carbon dioxide from
Scania’s production plants totalled 74
ktonnes. In relation to Scania’s sales, this
represented 1.5 g/SEK. Emissions per
vehicle produced declined compared to
the year before. This was due to reduced
idling losses when production increased
during the year.
Efforts to reduce climate-affecting emissions
take place as provided by the guidelines
adopted in 1998, which can be found
at Scania’s web site (www.scania.com).
Environmental investments
The conventional definition of an environmental
investment is an investment carried
out only for environmental reasons and
aimed at reducing external environmental
impact. This definition follows, among
other things, the European Commission’s
recommendations on voluntary environmental
reporting.
An investment is usually motivated by
several different reasons, of which environmental
impact may be one. Scania prefers
to take the environment into account when
making investments, instead of making
corrections afterward with filters and separate
cleaning equipment.
With the investment strategy that
Scania has chosen, the effect in terms of
environmental improvement per krona of
spending is good. This means that Scania
does not regard large environmental
investments according to the conventional
definition as goals in themselves.
During 2003, Scania’s investments in
property, plant and equipment totalled
SEK 2,478 m. Of this, SEK 20.5 m. was
classified as environmental investments.
Improvement of environmental work
Cross-functional cooperation must be
continuously improved. As part of Scania’s
global environmental conference in 2003,
environmental coordinators and representatives
of the human resources staff unit
gathered for a conference whose content
was expanded to cover the full impact of
the company on society.
Environmentally related costs as a
proportion of Scania's sales
Non-OECD
countries 16%
Other
OECD
countries
18%
Non-OECD
countries 16%
Other
OECD
countries
8%
Transport services, SEK 1,500 m.
Raw material, SEK 1,400 m.
Energy, SEK 180 m.
Chemicals, SEK 118 m.
Water, SEK 7 m.
Sales by region
EU
countries
66%
Wages, salaries and payroll fees
by region
EU
countries
76%
ANNUAL REPORT 2003 46