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Scania annual report 2004

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Attacking environmental<br />

impact at the source<br />

<strong>Scania</strong>’s guiding principle is to reduce the environmental impact in all stages of a<br />

product’s life cycle. Clean technology is the key to good environmental performance,<br />

both for the company’s products and at its production and service facilities.<br />

New Environmental Policy<br />

<strong>Scania</strong>’s Environmental Policy and overall<br />

environmental objectives state the positions<br />

that are shared by the entire company.<br />

During <strong>2004</strong>, the Environmental Policy<br />

was revised to better support <strong>Scania</strong>’s<br />

operations. The new Environmental Policy<br />

makes it clear that the environment is an<br />

integral part of <strong>Scania</strong>’s business priorities.<br />

The relationship between environmental<br />

work and the principle of precaution has<br />

been clarified, which is a natural consequence<br />

of <strong>Scania</strong>’s support of the OECD<br />

Guidelines for Multinational Enterprises.<br />

According to the principle of precaution,<br />

precautionary measures shall be undertaken<br />

when there is reason to assume that<br />

an action may harm human health or the<br />

environment.<br />

A shared concern<br />

Environmental work is integrated into<br />

<strong>Scania</strong>’s operations. A survey conducted<br />

during <strong>2004</strong> shows that most <strong>Scania</strong><br />

employees feel they are involved in this<br />

environmental work.<br />

The highest decision-making body for<br />

environmental issues is the <strong>Scania</strong> Executive<br />

Board, which makes strategic decisions.<br />

Common day-to-day environmental items<br />

of business are prepared by the <strong>Scania</strong><br />

Environmental Committee, where environmental<br />

coordinators from various fields of<br />

operations meet under the leadership of<br />

the Quality and Environment department.<br />

Operational decisions are made in the<br />

line organisation, where all managers have<br />

environmental responsibility for their respective<br />

areas. Local management teams<br />

are responsible for targets and follow-up<br />

at the local level.<br />

The environmental management system<br />

All production units are certified according<br />

to the ISO 14001 environmental management<br />

system.<br />

Corporate departments, such as Group<br />

Management, procurement and product<br />

development units, are certified. Environmental<br />

management procedures are<br />

integrated into <strong>Scania</strong>’s management<br />

system.<br />

Emission allowances<br />

Now that the Kyoto Protocol has entered<br />

into force, the EU countries must jointly<br />

reduce carbon dioxide emissions by eight<br />

percent during the period 2008 to 2012,<br />

with 1990 as the base year. Trading in<br />

emission allowances, which begins in<br />

2005, is one means of achieving this<br />

reduction. Transport services are not<br />

included in the scheme.<br />

<strong>Scania</strong>’s energy supply units in Oskarshamn<br />

and Södertälje, Sweden are included<br />

in the trading scheme. One effect of the<br />

recently completed expansion of operations<br />

in Oskarshamn is that <strong>Scania</strong> needs<br />

to buy emission allowances, estimated at<br />

4,000, beginning in 2005.<br />

Environmental adaptation of products<br />

Taking environmental aspects into account<br />

at an early stage of product development<br />

makes it possible to minimise the environmental<br />

impact of a product throughout its<br />

life cycle. <strong>Scania</strong> attaches great importance<br />

to designing a vehicle to reduce the environmental<br />

load that arises while the vehicle<br />

is in use. Aside from <strong>Scania</strong>’s internal<br />

development targets, future legal requirements<br />

weigh heavily in development work.<br />

Among strategic fields for the environmental<br />

performance of a product are<br />

emissions of fossil carbon dioxide and<br />

other exhaust gas components, chemical<br />

content and the end-of-life treatment of<br />

worn-out vehicles.<br />

<strong>Scania</strong> as a customer<br />

<strong>Scania</strong> buys materials and components<br />

from suppliers. It is important that the<br />

actions of suppliers are consistent with<br />

<strong>Scania</strong>’s environmental approach.<br />

Regardless of where a supplier is<br />

located, <strong>Scania</strong> requires ISO 14001 certification.<br />

<strong>Scania</strong> surveys suppliers’ environmental<br />

work by using an Environmental<br />

Self Assessment and recurring follow-ups.<br />

Collaboration on environmental issues<br />

leads to continuous improvements and<br />

helps improve expertise and enhance<br />

environmental awareness among suppliers.<br />

THE ENVIRONMENT • SCANIA ANNUAL REPORT <strong>2004</strong> 18

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