‘SUSTAINABLE SOLUTIONS THE WAY FORWARD’
SWEDISH commercial vehicle manufacturer Scania believes that sustainability is the way forward for the transport industry. “Customers understand that to be relevant in the future, they need to focus on sustainability,” said Scania Group president and chief executive officer Henrik Henriksson at a media briefing.
He said there was a lot of demand and pressure coming from customers for sustainability.
“Many big listed companies have promised in their annual reports that they are going to have a sustainability agenda... investors are now coming back to ask them and they need to start to fulfil this.
“This is driving change all over the world, whether it is for transporting people, good, fuel, logging of the forestry or even retail.”
Henriksson said globally, Scania wanted to drive the shift to a more sustainable transport solution by lowering CO2 emissions in its vehicles.
“As part of the transport and logistics ecosystem, we need to act. We work closely with our customers to provide sustainable solutions,” he added.
He said in Southeast Asia, customers responded positively to Scania’s green ambitions.
“They are reacting positively in many different ways. In general, they understand that they need to focus on sustainability and be prepared for the future. When we talk to customers, it is very clear that they are interested (in our efforts).”
Henriksson said some of Scania’s customers were already switching to green vehicles.
“In Malaysia, there is a tremendous opportunity to use locally-produced bio-fuels — bio-gas and bio-diesel produced from palm in a sustainable production — and to work on how to bring down fuel consumption on a decent vehicle.
“All of our vehicles produced last year, which are close to 100,000 units, can run on renewable fuels, and that is unique. We can provide vehicles that can run on bio-gas, bio-diesel, bioethereal and we also have electrification coming. However, electrification only make sense if the electricity is produced in a renewable way.”
Henriksson added that the challenge now was on the distribution of the fuel.
“We are still working with out partners in making gas or bio-fuels. It is still in the development stage. We need distribution (network) for the fuel and to make it commercially available.”
Scania is working with both the statutory body and the distribution channel on the bio-fuel.
“We are working on all levels... with the governments and companies to make the bio-gas available.”
Henriksson said Scania’s business model was about understanding and improving the revenue and cost aspects of its customers. The company tailors solutions that eliminate waste and improve efficiencies in the entire transport flow based on three pillar approaches - energy efficiency, alternative fuels and electrification and smart and safe transport.
“The sustainable transport solution also includes driver training and coaching, aimed at better fuel economy and reducing the impact on the environment. It creates value for the customers and makes their businesses resilient for the future.
Scania’s net sales rose to record high in its 2017 financial year, with an increase of 15 per cent compared to the previous year . Its operating income and revenue also rose last year.
Scania’s vehicle orders surpassed 100,000 units for the first time as bookings for trucks rose 30 per cent from a year ago.
“Our success is built on our ability to provide customers with profitable and sustainable transport solutions that contribute to their success.
“Scania’s business model, our principles, working methods and approach to sustainable transport will continue to be our platform to create value for our stakeholders,” added Henriksson.