Scania environmental report 1996 - Scania Group Environmental Report 1996 Scania is one of the...

ENVIRONMENTAL REPORT SCANIA 1996

Switching to alternative fuels

CONTENTS

Statement of the President and CEO

Scania Environmental Report 1996

1

Scania today 2

Scania’s environmental policy 4

Intensified environmental work 6

Life cycle perspective conveys the big picture 8

Research and development 9Efficient production methods reduce environmental impact 10Making products with sound environmental characteristics 15

Focus on the entire vehicle 16

Correct use better for the environment 21

When a vehicle reaches the end of its service life 23

Environment and economics 24

Glossary and explanations 26

Contact names and addresses 28

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Production: Scania Communications and Public Affairs

S-15187 Södertälje, Sweden

Tel +46 85538 1000, Fax +46 855 3855 59

Graphic design and production: KREAB/Lexivision

Translation: Vibeke Larøi /Victor Kayfetz

Printed: Trosa Tryckeri AB, 1997. Printed on environment-suited paper.

Goals for 1997 25

1


STATEMENT OF THE PRESIDENT AND CEO

What you are now holding in your hand isScania’s first separate EnvironmentalReport. We compiled this report to demon-strate how our processes and productsaffect the environment and what we aredoing to minimise negative effects. We atScania consider it our responsibility towork continuously to improve the environ-ment, both at the local and global level.The purpose of an annual EnvironmentalReport is to provide ourselves and the gen-eral public with an overview of our goalsand efforts related to environmental work.

We have demonstrated both our willing-ness and ability to achieve results in theenvironmental field. The latest example isthe introduction of a new generation oftrucks, the 4-series. In conjunction with thechangeover of our production system tomanufacture the new trucks, we continuedto modernise our production and assemblyplants. Among other things, this enabled usto further reduce negative environmentaleffects of manufacturing operations. Thedevelopment of Scania’s new 12-litre engineled to a product that consumes less fuel andemits smaller quantities of environmentallyharmful substances than its predecessors.

The environmental impact of the trans-port sector will nevertheless remain infocus for many years to come. Environ-mental performance will become anincreasingly high-priority factor for ourcustomers – and their customers in turn –when choosing ways to transport bothgoods and passengers. In order to maintainour position as one of the world’s most suc-cessful manufacturers of heavy vehicles, wemust therefore compete on the basis of the

environmental performance of our prod-ucts. We are investing aggressively in pre-ventive environmental work. Our ambitionis to continuously be better than the worlddemands of us.

To achieve this, everyone at Scania mustfeel a responsibility for environmental workand a commitment to it. Today all Scaniamanagers are already responsible for inte-grating environmental issues into theiroperations. But pursuing coordinated envi-ronmental work at a company of Scania’ssize and nature is a complex, difficult proc-ess. We still have a long way to go beforewe can begin to feel satisfied. To facilitatethis task, we have chosen to introduce anenvironmental management system. Thiswill enable us to create environmental goalsfor our operations that are comprehensiveas well as concrete and measurable. Wehave also begun a large-scale environmentaltraining programme for all our employees.The ambition is that all of Scania’s morethan 20,000 employees will have under-gone environmental training by 1999 at thelatest.

Scania must continuously improve itsenvironmental work. Our goal is for peopleto associate Scania with good environmen-tal work as spontaneously as they nowassociate us with quality. Please regard thispublication – our first EnvironmentalReport – as an invitation to a dialogueaimed at attaining this goal.

Södertälje, Sweden, April 1997

Leif ÖstlingPresident and CEO

SCANIA TODAY

Buses

City buses, inter-city buses and touristcoaches for more than 30 passengers.

Industrial and marine engines

Engines with power outputs ranging from225 to 750 horsepower for use as a powersource in generator sets, earth-moving andagricultural machinery, ships and pleasurecraft.

Half-owner of SvenskaVolkswagen

Scania and Volkswagen AG each own 50percent of Svenska Volkswagen AB, whichmarkets Volkswagen, Audi, Seat, Skodaand Porsche cars (and light commercialvehicles) in Sweden.

1996 stock market listingsOn 1 April 1996, Scania’s shares werefloated on the Stockholm Stock Exchangeand also became the first Swedish shares togain a listing on the New York StockExchange. The listings were a natural con-sequence of the fact that in May 1995,Scania once again became an independentcompany after having been part of Saab-Scania for 26 years.

At the close of 1996, Scania had about50,000 shareholders. The ten largest share-holders accounted for 67 percent of votingpower and 66 percent of share capital. Thelargest shareholder is Investor AB, a listedSwedish investment company in theWallenberg sphere, with 45 percent ofshare capital and 45 percent of votingpower. Of Scania’s share capital, about 16percent is owned by investors outsideSweden.

2


Scania is one of the world’s leading manufacturers oftrucks and buses for heavy transport work. Its strategyis to grow with sustained profitability. Some 95 percentof the company’s production is sold outside Sweden.

Scania’s mission statementScania’s operations are focused principallyon the field of heavy vehicles designed forthe transport of goods and passengers. Itsproducts shall lead the market in terms ofquality, performance and environmentalcharacteristics, enabling the company toassure its customers of the best possibletransport economy.

Scania’s strategy is to grow with sus-tained profitability by means of high cost-effectiveness in product development, pro-duction and marketing, as well as by main-taining a strong global market position.

Scania operates worldwideScania is represented in about 100 coun-tries at 1,000 distribution points and 1,500service points. The company has produc-tion facilities and assembly plants in eightcountries in Europe and Latin America:Sweden, the Netherlands, France, Denmark,Poland, Brazil, Argentina and Mexico. Inaddition, there are plants in about a dozenmore countries in Europe, Asia, Africa andLatin America that perform local assemblyfrom knocked-down kits.

The number of employees at the closeof 1996 was 22,206, down 4 percent froma year earlier. Women represented about 10percent of the total. Scania has employeesin more than 40 countries, about half ofthem in Sweden.

ProductsHeavy trucks

Trucks with a gross weight of more than16 tonnes (Class 8), designed for long-dis-tance haulage, regional and local distribu-tion of goods and construction haulage.


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Trucks 76 %

Svenska Volkswagen products 11 %

Industrial and marine engines 1 %

Buses and coaches 12 %

Sales by product category, 1996

Luleå

KatrineholmSödertälje

Oskarshamn

Sibbhult

Slupsk

Zwolle/Meppel

Angers

Falun

Laxå

Silkeborg

Europe excluding Nordic countries 53%

Nordic countries 20%

Other areas 11%

Latin America 16 %

Sales by market area, 1996 Scania products

São Paulo

Tucumán

San Luis Potosí

Scania is represented inabout 100 countries. Itsproduction and assem-bly plants are located ineight countries inEurope and LatinAmerica.

SCANIA’S ENVIRONMENTALPOLICY

Caring for the environment and active environmentalwork are crucial to Scania’s long-term growth andprofitability. Scania’s environmental policy provides a framework and guidelines for this growth.

Scania’s environmental policy is based onthe 16 principles for environmental man-agement issued by the InternationalChamber of Commerce (ICC). They aresummarised in four objectives that areimportant to Scania.

1Scania shall achieve and maintainleadership within its field of competence in order to promote a better environment.

This means that Scania will take the lead inenvironmentally adapting products andproduction processes. Scania is introducingan environmental management system toensure continuous improvement of thereporting and management of environmen-tal work. All employees will become closely

involved in this environmental workthrough continuous human resource devel-opment and training. Scania also requiresthat its suppliers and contractors environ-mentally adapt their operations. It informsits vehicle users of environmental issues inorder to enhance their environmentalawareness.

2Scania shall by foresightedresearch and development continuously reduce the environ-mental impact coming from its

production, products and services.

Scania’s research and development work isaimed at preventively reducing the environ-mental impact of its products. Prioritiesinclude reducing quantities of materialsused, increasing the share of more environ-mentally sound materials and fuels, andimproving fuel efficiency. Production proc-esses are being optimised by means ofdetailed audits and follow-up work. Thecompany promotes reuse and recycling ofmaterials in Scania vehicles at the end oftheir service lives and reduction of thequantities of wastes generated during ser-vicing and maintenance.

4


Scania’s revised environ-

mental policy was adopted

on 2 July 1996. The heads

of all Scania Group

companies and units are

responsible for integrating

this policy into their

respective operations.

3Scania shall actively promoteinternationally harmonised and effective environmental legislation – for Scania current

legislation is the minimum standard.

Effective and internationally harmonisedlegislation for the transport industry can beachieved through dialogue with publicauthorities in all countries where Scaniaoperates.

4Scania shall increase the confi-dence in its environmental workthrough openness and regularenvironmental reporting.

Scania is engaged in a continuous dialoguewith customers, suppliers, shareholders,legislators and the general public toincrease confidence in its environmentalwork. It also actively and openly reports onits environmentally-related goals andachievements and publishes a separateannual Environmental Report.

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A summary of ICC’s 16 principles forsustainable developmentTo recognise environmental management as among the

highest corporate priorities; to establish policies, programmes and practices for conducting operations in a environmentally sound manner.To integrate these policies, programmes and practices fully

into each business as an essential element of manage-

ment in all its functions.To continue to improve corporate policies, programmes and

environmental performance, taking into account technical

developments, scientific understanding, consumer needs

and community expectations, with legal regulations as a

starting point.To educate, train and motivate employees to conduct their

activities in an environmentally responsible manner.To assess environmental impacts before starting a new

activity or project and before decommissioning a facility

or leaving a site.To develop and provide products or services that have

no undue environmental impact and are safe in theirintended use, that are efficient in their consumption ofenergy and natural resources, and that can be recycled,

reused, or disposed of safely.To advise, and where relevant, educate customers, distributors and the public in the safe use, transportation,

storage and disposal of products provided; and to apply

similar considerations to the provision of services.To develop, design and operate facilities and conduct

activities taking into consideration the efficient use of energy and materials, the minimisation of adverse environmental impact and waste generation, and the safe and responsible disposal of residual wastes.

To conduct or support research on the environmentalimpacts of raw materials, products, processes, emissions

and wastes associated with the enterprise.To modify the manufacture, marketing or use of products

or services or the conduct of activities, consistent withscientific and technical understanding, to prevent serious

or irreversible environmental degradation.To promote the adoption of these principles by contractors

acting on behalf of the enterprise, encouraging and,where appropriate, requiring improvements in their practices; and to encourage the wide adoption of these

principles by suppliers.To develop and maintain, where significant hazards exist,

emergency preparedness plans in conjunction with theemergency services, recognising potential transboundary

impacts.To contribute to the transfer of environmentally sound

technology and management methods throughout theindustrial and public sectors.To contribute to the development of public policy and

to business, governmental and intergovernmental programmes and educational initiatives that will enhance

environmental awareness and protection.To foster openness and dialogue with employees and thepublic, anticipating and responding to their concernsabout the potential hazards and impacts of operationsand products, including those of transboundary or global

significance.To measure environmental performance; to conduct regular

environmental audits and assessments of compliancewith company requirements, legal requirements and these

principles; and periodically to provide appropriate information to the Board of Directors, shareholders,employees, the authorities and the public.

INTENSIFIED ENVIRONMENTAL WORK

Overseeing Scania’s environmental networkOverall responsibility for environmentalmatters rests with Scania’s EnvironmentalBoard, which establishes the Group’s envi-ronmental policy and other guidelines forits environmental work.

Scania’s Environmental Coordinatoroversees and coordinates an internal “envi-ronmental network” that constitutes thecompany’s environmental organisation.This network consists of employees from

management staff units and the line organ-isation who are responsible for internal andexternal environmental work.

The heads of all Scania companies andunits are responsible for adapting theGroup’s overall environmental policy tolocal conditions. This policy is then trans-lated into goals and strategies for eachrespective operation.

Introducing environmental management systemsTo effectively translate the Group’s missionand environmental policy into local meas-ures, Scania is working towards certifica-tion under the ISO 14001 environmentalmanagement system.

As part of this task, initial environmen-tal reviews were initiated at all Scania facil-ities during 1996. These reviews havealready been completed at three Swedishfacilities – in Luleå, Katrineholm andSödertälje – as well as in Brazil.

According to plans, ISO 14001 certifica-tion will go into effect in Latin Americaduring 1998 and in Europe during 1999.Scania’s efforts to introduce ISO 14001standards will also enable it to register itsfacilities according to the Eco-Managementand Audit Scheme (EMAS) of the EuropeanUnion (EU).

Parallel with the introduction of theenvironmental management system, during1996 Scania began an environmental train-ing programme for all Group employees.Training is expected to be completed in1999.

Cooperation with suppliers and contractorsOne important aspect of Scania’s environ-mental work is its cooperation with suppli-ers and contractors. In 1996 Scaniabrought together its 50 largest contractorsat Head Office in Södertälje to inform themof its environmental policy, future legalrequirements and the introduction of ISO14001. Scania’s goal is to more efficiently

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Scania’s environment-related work is a natural and inte-gral part of its operations. During 1996 Scania furtherintensified its environmental efforts in order to certifythe Group as complying with ISO 14001 internationalenvironmental management standards by 1999.

Scania’s EnvironmentalCoordinator RonnieKlingberg (left) overseesthe company’s environ-mental work togetherwith Urban Wästljung(EnvironmentalStrategist) and MarcelaPetkov (EnvironmentalCommunicationsOfficer).

7


apply the new environmental standards toits suppliers and contractors as early as thepurchasing stage. The task of developing achecklist for assessing the environmentalwork of its suppliers and contractors iscontinuing.

During 1996 Scania also audited alltransport flows from suppliers to, as well

as between its European production plants.As a result, in the spring of 1997 Scaniawill reduce the number of hauliers it usesfrom 20 to five, which also means areduced total need for vehicles to pick upand deliver freight for Scania. This will alsolead to a decline in the number of collec-tions from Scania’s suppliers and a consoli-dation of deliveries to its respective produc-tion sites.

Cooperation with local authoritiesCooperation with public authorities andpoliticians is another aspect of Scania’senvironmental work. In Sweden, Scaniaworks together with Södertälje,Katrineholm, Luleå and other municipal-ities in their Agenda 21 work. In Luleå, forexample, Scania Chassis Componentsworks closely with the municipality inimproving waste management.

In Tucumán, Argentina, Scania runs themunicipal pilot programme for handlingresidual products and wastewater, amongother things.

Scania’s Brazilian planthas progressed furthestin the Group in itsefforts to introduceISO 14001 environ-mental managementprinciples.

At-source waste separa-tion at the plant inTucumán, Argentina,within the frameworkof the municipal pilotprogramme for wastemanagement.

LIFE CYCLE PERSPECTIVE CONVEYS THE BIG PICTURE

To correctly assess a vehicle’s environmen-tal impact, it is necessary to look at itsentire service life – from manufacture tofinal dismantling.

Life cycle assessment and life cycle cost calculation – important toolsLife cycle assessment (LCA) is a centraltool of environmental work. A life cycleassessment involves describing and evalu-

ating a vehicle’s environmental impact at allstages, from manufacture through opera-tion to final disposal as waste. Scania useslife cycle assessments to improve its decisionmaking process, for example in productdevelopment work.

Life cycle cost (LCC) calculation is atool Scania uses to estimate the total costsof energy-intensive equipment, in order toreduce both costs and adverse environmen-tal effects. Besides investment costs, LCCalso takes into account costs related tomaintenance, energy and environmentalpollution. During 1996, 80 employees atScania’s Swedish facilities received LCCtraining. Employees at all production unitsare scheduled to participate in this trainingprogramme during 1997.

8


Manufacturing

Minimising emissions and industrial wastes.

Optimising energy utilisation in the production system.

Research and development

Raw materials

Minimising wastes

The philosophy is to do things right the first time, instead of resolving problems afterwards.

Recycling

Continuous development of reuse and recycling of vehicles at the end of their service lives.

Operation

Maintenance

Conserving raw materials.

Driving techniques are highly important: smooth driving at moderate speeds yields the lowest environmental impact.

High gross weights and good transport planning reduce environmental impact.

Materials selection and improved fuel efficiency are crucial to better performance and reduced environmental impact.

Maintenance and repairs must be performed in ways that do not cause unnecessary environmental pollution.

Environmentally sound final disposal of materials that cannot be reused or recycled.

The objective of Scania’s environmental work is toreduce the effects of its products on the environmentthroughout their life cycle. Scania estimates that morethan 90 percent of a heavy vehicle’s environmentalimpact occurs during its service life, not during manu-facture.

The life cycle of a Scania vehicle

One of the major challenges facingengine development is the fact that in a die-sel engine the ratio between nitrogen oxideemissions and fuel consumption (in otherwords, carbon dioxide emissions) is, inprinciple, inversely proportional. Measuresthat lower nitrogen oxide emissions reducethe engine’s efficiency rating, thereby alsoraising fuel consumption.

Cooperating with institutes oftechnology and universitiesContinuous development work is needed tofurther reduce the environmental impact ofdiesel engines, primarily by lowering nitro-gen oxide emissions at the same time asfuel consumption is reduced. Methods forcatalytic conversion of gaseous emissions orbetter control of the combustion processare among Scania’s R&D priorities. In1996 – as part of its development workand in addition to its regular research pro-gramme – Scania invested SEK 5 million ina joint research project with the LundInstitute of Technology.

Scania’s industrial research programmeIn 1996, Scania established an industrialresearch programme together withSweden’s institutes of technology. The pro-gramme comprises a total of 10 research

positions for postgraduate studentspursuing doctorates and licentiate

degrees, including research inthe fields of product devel-

opment, production engi-neering and the environ-ment.

9


RESEARCH AND DEVELOPMENT

During 1996, Scania invested more thanSEK 1 billion in research and development.A large proportion of this was directlyrelated to the environment. High-priorityinvestment areas included engine develop-ment – reduced emissions and fuel con-sumption – and use of new, more environ-mentally sound materials.

Engine development prioritisedFor Scania, engine development work relat-ed to the combustion process is highlyimportant. Scania aims to increase anengine’s efficiency rating, in other wordsreduce fuel consumption while loweringnitrogen oxide emissions.

Scania’s strategy for minimising the environmentalimpact of its vehicles is to prevent problems at source– during the development stage of a new vehicle.Scania is actively engaged in research and developmentwork together with Sweden’s institutes of technology.

With the help ofadvanced laser technol-ogy, it is possible todepict the concentra-tion and distribution ofvarious substances dur-ing a single combustioncycle. This technologyis highly important forachieving a greaterunderstanding of anengine’s combustionprocess and a betterability to control it.

EFFICIENT PRODUCTIONMETHODS REDUCEENVIRONMENTAL IMPACT

Scania manufactures its products in Swedenand at facilities elsewhere in Europe and inLatin America. In this first EnvironmentalReport, the ambition is to describe themanufacturing process and to report onScania’s European plants. In the 1997Environmental Report, Scania intends toprovide information on all its facilities, andwith a broader scope than has been pos-sible in this 1996 report.

Advantages of the modularsystemScania designs its vehicles and plans theirproduction on the basis of a unique mod-ular system. In this way, Scania has beenable to reduce the number of componentsin its product range. This, in turn, alsoreduces the need for storage space, heatingand haulage to production plants. Theguiding principle in Scania’s product devel-opment work is to avoid increasing thenumber of parts and, if possible, continueto reduce the existing number.

Lower energy use – an important goalThe production of vehicles and engines isenergy-intensive. For reasons of cost as well as environment, Scania has for yearstaken steps to reduce total energy use.

Today large portions of its operationsuse advanced systems of energy manage-ment and heat recovery. For example, theengine development laboratory in Söder-tälje recycles heat and electricity. Scania’sfoundry in the same city has a waste heatboiler for recovering heat via a recuperator.Together with higher production capacityutilisation, these are some of the measuresthat have helped lower energy use per manufactured vehicle by 20–35 percent in recent years.

Scania’s goal is to reduce energy use by a further 10 percent per manufacturedvehicle by the year 2000, using 1995 as abase year. Another important goal forScania is to lower base use of energy, inother words the portion of energy use thatremains the same regardless of how manyvehicles are produced.

Energy use in 1996In 1996, energy use at Scania’s Europeanplants amounted to 660 GWh, or 20 MWhper vehicle. The plant in Södertälje, wheremost manufacturing takes place, accountsfor more than 50 percent of total energy use.

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The strategy at Scania’s production plants is to continuously implement improvements to minimiseenvironmental impact and create a good working environment. Reducing raw material and energy use and switching to less environmentally hazardousmaterials are important goals.

Many parts of Scania’soperations use advancedenergy management andheat recovery systems.This photo is from thefoundry in Södertälje.

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The majority of this consists of electricity,district heating, fuel oil and natural gas.Large quantities of diesel fuel are also used for laboratory and acceptance tests of components and products.

EKO energy project in SödertäljeScania is now conducting a thorough auditof its production units aimed at furtherreducing their energy use. During 1995 and 1996, Scania signed agreements withthe Swedish National Board for Industrialand Technical Development (NUTEK) to

Scania’s guidelines for energy use

• Special consideration for energy efficiency shall be taken when purchasing equipment for workshops, laboratories and offices.

• A complete estimate of life cycle cost (LCC) shall be conducted before acquiring energy-intensive equipment.

• Energy use at existing facilities shall continuously be monitored.

Electricity 48 %

Coke 2 %

Diesel 11 %

Liquid gas 4 %

Natural gas 7 %

Fuel oil 8 %

District heating 20 %

Scania’s energy use in Europe by type, 1996

1992 1993 1994 1995 1996

100

0

200

300

400

500

600

700

5

0

10

15

20

25

30

35

Average MWh per vehicle

Total, GWh

Scania’s energy use in Europe, 1996

streamline energy use at ten of Scania’sSwedish plants. So far, analyses have takenplace at four facilities in Södertälje and inLuleå. These analyses indicate total poten-tial electricity and heating savings of 60GWh per year, or SEK 18 million. Overall,Scania estimates that the project will reduceenergy use by 110–120 GWh per year. TheEKO energy project is expected to be com-pleted at all Swedish production plants andunits within the next few years.

Installation of a central cooling plantA central cooling plant will be installed inSödertälje in early 1997. It will replace 315local CFC-based cooling systems. ForScania, this entails an investment of SEK 26million during 1996-1999. Central coolingsystems have many advantages. Instead ofCFCs, they use ammonia, which is lessenvironmentally hazardous than other

known alternatives. Central coolingsystems also facilitate heat recovery, whichhas not been possible with current systems.Scania expects the switchover to centralcooling to result in annual savings of SEK1.5 million.

Switching to water-borne and powder paintsEmissions of solvents (volatile organic com-pounds) have long been an important tar-get of Scania’s environmental protectionefforts. By reducing paint consumption andswitching to paints that employ less sol-vents or none at all, Scania has reduced itsrelative consumption and has thus reducedsolvent emissions by around 75 percentover the past 10 years.

Painting concepts introduced at Scania’sfacilities in early 1993 have greatly contrib-uted to this trend. At that time, severalScania plants switched from paints based

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In powder painting, no solvents are usedand less than 5 percentof the paint is wasted.This should be com-pared to 50 percentwaste in spray painting,a method used previ-ously.

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on environmentally hazardous solvents towater-borne paints and powder painting. In recent year, this has been Scania’s largestsingle investment – SEK 330 million – inenvironmental improvement measures relat-ed to its manufacturing process.

In 1996, solvent consumption atScania’s European plants amounted to justover 400 tonnes, or 13 kg per vehicle.

Projects are under way to further reducethe use of solvents, for example whenapplying primer on chassis side membersand finishing coats on engines, gearboxesand cabs.

Diesel exhaust emissionsIn Södertälje, extensive laboratory andacceptance tests of engines generate emis-sions of diesel exhaust gases containingnitrogen oxides and particulates. Emissionsat Scania’s Södertälje facilities in 1996totalled 105 tonnes of nitrogen oxides and1.4 tonnes of particulates. Scania is nowworking to further improve engine perfor-mance and shorten engine acceptance testtimes.

Closed-circuit systems reducewater useScania’s work concerning emissions intowaterways has focused on reducing waterconsumption as well as the quantity of

wastewater and other liquid wastes. In1996, water consumption at its Europeanproduction plants totaled 600,000 cubicmetres, or 18 cubic metres per vehicle.Relative consumption has fallen by between20 and 30 percent over the past five years.

A large proportion of water use and dis-charges is attributable to sanitary wastewa-ter. Most of today’s liquid-based produc-tion processes are closed-circuit. Used proc-ess baths are treated for recycling or dis-charge into the wastewater system. Thereare still emissions of small amounts of oil,other organic substances and metals.Scania’s goal is to eliminate wastewaterfrom its production processes by switchingto completely closed-circuit systems.

Management and reuse of residual productsDisposing of residual products and wastesfrom production processes is both resource-intensive and costly. One special goal ofwaste management is to reduce the amountof hazardous industrial waste such as oilsand alkaline process baths. Such residualproducts as shavings, scrap and wood mustbe recycled.

Residual products from Scania’sEuropean plants totaled 50,000 tonnes in1996. Of this amount, 75 percent, mostly

90 91 92 93 94 95 960 0

1200

1000

800

600

400

200

60

50

40

30

20

10

Average, kg per vehicle

Total, tonnes

Scania’s use of solvents, Europe, 1996

Diesel exhaust emissions (Södertälje)

Fuel consumption Nitrogen oxides Particulates

tonnes tonnes tonnes

1992 2,922 137 2.3

1993 3,004 128 1.9

1994 3,309 135 2.1

1995 3,085 119 1.7

1996 2,885 105 1.4

shavings and scrap, was recycled while 5 to10 percent, mainly waste oil, was disposedof as hazardous waste. To reduce theamount of waste sent to landfills today,Scania aims to further develop a system forseparation of paper, wood, plastic wasteand other materials.

Environment-related insuranceLike most other Swedish companies, Scaniamakes payments to a national environmen-tal damage consortium. This fee is used tocover the costs of any measures that mustbe undertaken to deal with environmentaldamage in cases where no guilty party canbe determined.

Both Scania’s property and liabilityinsurance contracts cover sudden, unfore-seen environmental damage at its ownfacilities as well as damage that affects athird party.

Environment Protection ActAll of Scania’s Swedish plants have recentlybeen, or will soon be, inspected to ensuretheir compliance with the EnvironmentProtection Act as a condition for receivingnew permits to expand production. In 1996no violations of the EnvironmentProtection Act were reported at Scania’sfacilities.

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1992 1993 1994 1995 1996

100

0

200

300

400

500

600

700

10

0

20

30

40

50

60

70

Cubic metres per vehicle

Total 1,000 cubic metres

Scania’s water consumption, Europe, 1996

0

10

20

30

40

50

Residual products from Scania’s European production system, 1996

Shavings

Scrap

Wood

Paper

Others

Recycling Deposits at landfills

Hazardous wastes

Industrial

refuse

Waste oil Ultrafiltration concentrates Alkaline baths Others

1,000 tonnes

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MAKING PRODUCTS WITHSOUND ENVIRONMENTALCHARACTERISTICS

Concentration on trucks andbusesScania is the only major European vehiclemanufacturer with operations that concen-trate on heavy trucks designed for long-dis-tance haulage, construction and civil engi-neering haulage and distribution work.

Late in 1995, Scania unveiled its newgeneration of trucks, the 4-series, as well asits new six-cylinder, 12-litre diesel engine.This engine is designed to provide maxi-mum combustion efficiency, low exhaustemissions, low engine noise and a conse-quent reduction in environmental impact.Other features include greater ease of ser-vice for scheduled maintenance and repairs.

In the same way, Scania’s bus and coach

operations concentrate on the heavy seg-ment of the market. Scania manufacturesbus chassis and buses designed for morethan 30 passengers. Its product range com-prises urban and inter-city buses as well astourist coaches.

In September, Scania introduced theOmniCity city bus, the first model in a newmodularised generation of buses and buschassis. This new generation of buses com-bines good transport economy with goodenvironmental characteristics, both in termsof better material selection and more effi-cient engines.

Industrial and marine enginesScania manufactures industrial and marineengines used as power sources in earth-moving, forestry and agricultural machines,in generator sets and in commercial vesselsand pleasure craft.

Scania’s industrial and marine enginesare developed from its truck engines. Thisalso enables Scania to influence the devel-opment of efficient products outside thetransport sector. The European productrange of industrial and marine engines wascompletely updated in 1996 to better meetdemands for enhanced performance,including lower fuel consumption, loweremissions and higher outputs.

Most of a heavy vehicle’s environmental impact occursduring its service life. Exhausts, noise and maintenanceaffect the environment. As a vehicle manufacturer,Scania has a major responsibility to continuously devel-op vehicles that combine good transport economy andlow environmental impact.

FOCUS ON THE ENTIRE VEHICLE

Most of Scania’s vehicles are equipped withdiesel engines that run on some form ofdiesel fuel. Nitrogen oxides, hydrocarbons,particulates and other substances with anadverse effect on the environment areformed during the combustion process.Burning fossil fuels also results in a netincrease in carbon dioxide in the atmos-phere.

Scania is working systematically both toreduce emissions of environmentally haz-ardous substances from its diesel enginesand to reduce fuel consumption (in otherwords, carbon dioxide emissions). Over a25-year period, the quantity of fuelrequired to perform a given transport taskhas fallen by about 60 percent owing to

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Scania’s mission is to manufacture products that leadthe market in terms of quality, performance and envi-ronmental characteristics. As a result, today’s Scaniaproducts have significantly longer service lives andlower fuel consumption than in the past.

•Nitrogen oxides (NOx) areformed by a reactionbetween oxygen andnitrogen at high tempera-tures. Nitrogen oxideemissions contribute pri-marily to over-fertilisation(eutrophication), acidifica-tion and the formation oftropospheric (ground-level) ozone.

•Hydrocarbons (HC) in die-sel exhausts are residualproducts that are formedduring combustion andthat contain unpleasant-smelling compounds. Athigh levels, carcinogeniceffects on humans andanimals have been dem-onstrated. Along withnitrogen oxides, hydro-carbons contribute to theformation of troposphericozone.

•The particulate matter(PM) emitted by a dieselengine is largely deter-mined by the quality ofthe fuel. The aromatichydrocarbons in dieselfuel contribute to higheremission levels of bothparticulates and nitrogenoxides. Today’s diesel fuelalso contains a small pro-portion of sulphur, whichcontributes to acidifica-tion. This problem cannotbe solved by improvingengine technology, butonly by eliminating thesulphur from the fuel.

•Carbon monoxide (CO) isa toxic gas formedthrough incomplete com-bustion. The gas is toxicto humans but is onlypresent at very low levelsin diesel exhausts.

Environmental impact of diesel fuel

Nitrogen oxides

Fuel consumption and emissions for a given transport task

Fuel (carbon dioxide)

50

0

100

150

200

250

300

2000199019801970

Index

CO NOx HC PM

1

0

2

3

4

5

6

7

g/kWh

Modern diesel engine

Emissions from Scania trucks and buses, compared to current legal requirements

EU 1996 legal maximum (Euro 2)

17


intensive development work. Carbon diox-ide emissions, which are directly propor-tional to the quantity of fuel burned, havedecreased at a similar rate. Nitrogen oxideemissions dropped by 90 percent during thesame period. Particulates and hydrocarbonshave fallen at the same rate as fuel con-sumption.

In recent years, the task of developingScania’s new 12-litre engine and upgradingits 14-litre engine has concentrated on low-ering exhaust emissions and improving fueleconomy. Emission levels have beenreduced far below current legal require-ments. Scania’s engines meet the EU’s Euro2 standards for both trucks and buses.Today Scania’s engine development effortsare focused on meeting future standards,primarily Euro 3.

Overall vehicle design is importantIn discussing exhaust emission issues, thegeneral public and legislators have largelyfocused on engines. It is important, howev-er, to understand how the overall develop-ment and use of a vehicle can help loweremissions.

For example, reducing aerodynamicdrag was a measure Scania prioritised whendeveloping its new cab for the 4-series.Giving the cab a wedge shape, slightly nar-rower at the front than in the back andwith a large radius on each front corner,has significantly reduced aerodynamic drag.Compared to previous truck generations,the drag coefficient has been diminished byup to 12 percent, thereby lowering fuelconsumption.

Lower aerodynamicdrag is an importantobjective in the designand body configurationof a vehicle. Dragaffects fuel consumptionand exhaust emissionlevels.

•Carbon dioxide (CO2)arises from the burning ofall fossil fuels. The resultis a net increase in car-bon dioxide in the atmos-phere. Carbon dioxide isone of the “greenhousegases” which arebelieved to cause climaticchange on earth.

Selection of materials – crucialfor environmental impactScania’s goal is to select materials with thebest functional qualities and the lowestenvironmental impact. For example, thenew OmniCity bus is made of aluminium,which can be recycled a number of times.Aluminium is also lighter, thereby loweringgross weight and fuel consumption.

A Scania vehicle consists largely of rawmaterials such as steel, sheet steel and castiron. Upholstery on the cab’s walls androof is made of recycled fabrics from theclothing industry. All plastics are pre-marked so they can easily be sorted and

recycled when a vehicle is dismantled.Environmentally hazardous materials suchas mercury, bromine fire retardants andasbestos were completely removed fromScania’s vehicles several years ago.

On the other hand, lead is still used inbatteries and in the balancing weights ontyres. Lead accounts for only 1 percent of avehicle’s total material content but domi-nates the environmental impact of its mate-rials. Today there is no good replacementfor lead that offers both the requisite func-tional characteristics and a low environ-mental impact.

Scania vehicles less noisy thanbeforeFor many years, Scania has worked tolower vehicle noise levels. By means of newdesign solutions, development work, anduse of new components and materials,Scania has reduced the noise level to 80decibels (dBA). Fifteen of today’s trucks arequieter than one truck 25 years ago. In thedevelopment of the OmniCity bus, externalnoise levels were lowered to 77 dBA. TheEU’s maximum permitted level of vehiclenoise is 80 dBA.

18

The new OmniCity busis designed for drivingin noise-sensitive areas.


All plastics in a Scaniavehicle are marked tofacilitate sorting andrecycling at the time of disassembly.

19


SWITCHING TOALTERNATIVE FUELS

To Scania, it is natural and essential towork on modifications of its basic enginesthat enable them to run on other fuelsbesides diesel fuel. In the future, it will benecessary to make a systemic shift fromfossil fuels to renewable fuels. With minormodifications, a diesel engine can operateon several different fuels. Scania’s efforts sofar have focused on ethanol, gaseous fuelssuch as natural gas and dimethyl ether(DME) as well as hybrid operation.

EthanolEthanol is an alternative fuel that can beproduced from traditional raw materialssuch as sugar cane and grain, but forestrywaste and wine can also be employed in itsmanufacture. Ethanol has a lower energycontent than diesel oil, resulting in higherfuel consumption. Emissions of carbondioxide, nitrogen oxides and particulatesare, however, lower when ethanol is used inplace of diesel fuel.

Scania today is Europe’s largest manu-facturer of ethanol-powered city buses. Ithas delivered nearly 200 buses to theGreater Stockholm Transport Authority(SL), which has the world’s largest fleet ofethanol-powered buses.

Gaseous fuelsScania also develops engines modified forrunning on natural gas and biogas. Theimportance of natural gas as a fuel forvehicles is expected to increase. Today gas-powered engines are about 25 percent lessefficient than diesel engines and thus con-sume more fuel. From an environmentalstandpoint, natural gas has about the sameadvantages as ethanol – low levels of nitro-gen oxides and particulates – but like dieselfuel it generates a net increase in atmos-pheric carbon dioxide. So far Scania hasdelivered 100 natural gas-powered buses toSydney, Australia.

DME is an attractive new diesel enginefuel with emission levels comparable to

those of naturalgas. It can beproducedfrom bothnatural gasand renewableraw materials.Scania hasinitiated aproject toincrease itsknowledge of DME.

Switching to alternative fuels is increasingly discussedtoday. The primary objective is to lower the netincrease in atmospheric carbon dioxide, thereby alsoreducing the risk of climate changes and improvinglocal environmental conditions.

“A stable supply of rawmaterials and consis-tently high fuel qualityare important factorsfor the success of alter-native fuels,” accordingto Lisa Fuller – one ofScania’s fuel experts.

Low demandToday the demand for vehicles powered byalternative fuels is very low. They account-ed for 0.2 percent of Scania’s total salesduring the period 1991 to 1996. The mainreason is that most Scania vehicles operatein long-haul traffic, for which the alterna-tive fuel supply and distribution network isvery limited.

Demand for city buses powered byalternative fuels is significantly higher,accounting for 8 percent of total city bussales. As environmental awareness increasesand distribution systems for alternativefuels expand, the demand for such vehiclesis very likely to increase.

Hybrid powerTo meet demands for maximal environmen-tal adaptation of buses, for some yearsScania has been involved in a hybrid busproject. A hybrid bus run on its ownelectrical power plant. It either operates asa purely battery-powered electrical vehicleor can be connected to a generator pow-ered by a car engine with a catalytic con-verter to treat exhaust emissions.

During 1996 Scania delivered six hybridbuses to SL. The company has also deliv-ered three buses to Luxembourg.

20


Euro 1

Euro 2

Diesel fuel

Ethanol

NOx g/kWh

Nitrogen oxide and particulate emissions from various fuels in relation to EU legal requirements.

The EU’s Euro 3 programme is aimed at further reducing emission levels.

9

8

7

6

5

4

3

2

1

00.00 0.05 0.10

PM0.15 0.40

DME

Natural gas

Today ethanol-poweredbuses are used primarilyin city traffic. Scaniahas delivered nearly 200 ethanol buses toGreater StockholmTransport (SL).

To meet the demandfor maximum environ-mental adaptation ofbuses for city centretraffic, for some yearsScania has beeninvolved in a hybridbus project.

Diesel fuel will remain in useDiesel engines powered by diesel fuel willprobably remain the most common alterna-tive for heavy vehicles in long-distancehaulage during the foreseeable future. Thisis mainly due to the superior customer ben-efits of diesel fuel – low price, high energycontent and a well-developed distributioninfrastructure.

21


CORRECT USE BETTERFOR THE ENVIRONMENT

Vehicle utilisation and drivingtechniqueEfficient transport planning, high grossweights and smooth driving are precondi-tions for reducing a vehicle’s environmentalimpact. Driving technique alone can affectfuel consumption by 20 to 30 percent.Scania developed the Opticruise computer-ised powertrain management system tofacilitate long-distance driving. Used cor-rectly, Opticruise ensures fuel efficiency anda safe driving style – the automatic controlsystem selects the optimal gear.

During 1997, Scania will increase

efforts to inform its distributors and cus-tomers about ways they can reduce theenvironmental impact of haulage work.

Regular maintenanceEvery vehicle requires continuous mainte-nance to remain safe in traffic. The same istrue of those systems that affect its environ-mental characteristics and operating econo-my. In developing today’s trucks and buses,major resources are devoted to giving vehi-cles the best conceivable environmental per-formance, at the same time that theyshould operate as economically as possible.Regular maintenance ensures a vehicle’scontinued environmental performancethroughout its service life.

Scania’s service-exchange system– an environmentally friendlyalternative to repairs

Scania’s service-exchange system is awell-established system for reusing parts.Rather than repairing a worn-out part or

To minimise a vehicle’s environmental impact, optimalutilisation is important. This places stringent demandson Scania’s customers in terms of driving technique,transport planning and vehicle maintenance.

Driving technique isimportant. Smoothdriving at moderatespeeds yields the lowestenvironmental impact.

buying a newly manufactured one, Scaniacustomers can replace it with a factory-reconditioned used part – a service-exchange part. When Scania sells a newservice-exchange part, it accepts thecustomer’s worn-out part for disposal orreuse. Some of these parts are lateremployed in the production of service-exchange parts. Those that cannot bereused for various reasons are dealt with inan environmentally sound, controlled way.

Scania also uses a monetary depositsystem when selling service-exchange parts.Customers put down a deposit when buy-ing new service-exchange parts, and theylater receive their money back when theyreturn worn-out parts. In this way, Scaniaensures that as many worn-out parts aspossible will be returned and reused,instead of ending up in landfills and scrapyards. Between 1992 and 1996, Scania’s

service-exchange system sales rose by about40 percent.

Service-exchange system toexpand during 1997During 1997, Scania is introducing a newsystem for returned parts. Until now,Scania has only allowed customers toreturn as many worn-out units as they hadpurchased in the form of service-exchangeparts. Beginning in 1997, in principleScania will offer its customers the option ofreturning all old worn-out parts for repur-chase.

Within the framework of the service-exchange system, Scania is offering its cus-tomers in Sweden and Germany the oppor-tunity to upgrade their engines by one ortwo environmental categories at a favour-able price. In most cases, this involves anupgrade from Euro 1 to Euro 2 standards.

22


About 90 percent of a truck can be recycled*

*The figures refer solely to recycling of materials, not energy.

Recyclable portion, kg

Steel and cast iron

Rubber

Aluminium

Plastics

Lead

Copper/brass/bronze/zinc

Paint

Glass

4,962

44

196

191

53

39

0

0

Non-recyclable portion, kg

58

476

4

119

21

9

40

48

“A fast-expandingsystem for the reuse of parts,” explainsRoger Grebesjö, who is in charge of Scania’sservice-exchange operations.

23


WHEN A VEHICLE REACHES THE END OF ITS SERVICE LIFE

A truck consists largely of iron, steel, cop-per and aluminium but also of glass, rub-ber, lead, zinc and various plastics. Afterdismantling, its constituent materials andparts can be reused or recycled in variousways. However, this requires reprocessingof residual products in the form of sorting,

cleaning and/or other value-adding process-es. Some materials, such as rubber, aremore difficult than others to reuse but theirenergy can instead be recovered by meansof controlled incineration. Other materialsshould be dealt with in environmentallyacceptable ways.

Today about 90 percent of the materialweight of a truck can be recycled.

Increased recyclingTo facilitate a high degree of recycling,Scania’s goal is to manufacture vehicles thatare 100 percent recyclable. But today thereis a big gap between what can be recycledand what in fact is recycled. The main chal-lenge is to build up systems and structuresthat increase the actual degree of recycling.

Reuse and recycling of heavy vehicles is an area thatrequires major development work. Scania’s goal is tomake its vehicles 100 percent recyclable.

About 90 percent of a truck can be recycled*

*The figures refer solely to recycling of materials, not energy.

Recyclable portion, kg

Steel and cast iron

Rubber

Aluminium

Plastics

Lead

Copper/brass/bronze/zinc

Paint

Glass

4,962

44

196

191

53

39

0

0

Non-recyclable portion, kg

58

476

4

119

21

9

40

48

ENVIRONMENT AND ECONOMICS

So far Scania has been able to measure itsenvironmental progress mainly in terms oflower inputs of electricity, water etc. andlower emission levels. In the future, it willalso be able to report the economic resultsof its environmental work. Scania is nowstudying various possibilities for developingan internal reporting structure that will bet-ter enable it to track and describe its envi-ronmentally-related investments, expensesand revenue.

24


To Scania, there is no conflict between environmentalresponsibility and industrial growth. The intensifyinguse of more efficient production methods has not onlyresulted in competitive advantages but has also gener-ated major environmental advances.

Amounts in SEK million unless otherwise indicated

Sales, units

Trucks 39,028Buses 3,963Total 42,991

SalesScania products 29,954Svenska Volkswagen products 3,776Total 33,730

Operating incomeScania products 2,842Svenska Volkswagen products 215Total 3,057

Operating marginScania products 9.5%Svenska Volkswagen products 5.7%Total 9.1%

Income after financial items 2,706

Net income 1,981Earnings per share, SEK 9.90Earnings per share according to U.S. GAAP 10.30

Return

on shareholders’ equity 23.1%on capital employed 16.2%on capital employed excluding customer finance operations 19.4%

Debt/equity ratio 0.65

Equity/assets ratio 27.7%

Capital expenditures for property, plant and equipment 2,522

Research and development expenses 1,065

HIGHLIGHTS OF 1996 OPERATIONS

SUMMARYKey figures for Scania’s production (Europe)

Year 1992 1993 1994 1995 1996

Number of manufactured

vehicles 21,450 17,190 24,909 35,832 33,642

Energy usePer vehicle (MWh) 24 29.8 23.6 18.5 19.6Total (GWh) 515 513 589 662 658

Solvent consumptionPer vehicle (kg) 30.9 30.5 22.8 17.6 13.1Total (1,000 kg) 663 524 567 630 440

Water consumptionPer vehicle (cubic metres) 23.8 27.9 21.8 15.6 18.2Total (1,000 cubic metres) 511 480 543 559 612

Residual productsPer vehicle (kg) — — — — 1,486Total (1,000 kg) — — — — 50,000

25


GOALS FOR 1997

By the end of 1997:• Initial environmental reviews within the

framework of ISO 14001 shall have beencompleted at all Scania facilities.

• An even larger number of Scaniaemployees shall have undergone environmental training.

• A checklist for assessing the environ-mental work of suppliers and contrac-tors shall have been compiled and fullyimplemented.

• Employees at all production units shallhave undergone LCC training.

• Internal reporting systems for raw material flows, electricity, water etc.shall have been supplemented.

• An energy audit within the framework of the EKO energy project shall havebeen implemented at most Swedishproduction units.

• Steps shall have been taken to furtherreduce energy use per vehicle.

• Steps shall have been taken to furtherreduce consumption of solvent-basedpaints.

• Informational activities for distributorsand customers on the correct use ofvehicles shall have continued.

• The task of writing instructions for thedismantling of all vehicles at the end of their service lives shall have begun.

• Systems for reporting environmentally-related investments, expenses and revenue shall have been created.

GLOSSARY AND EXPLANATIONS

26


AAcidificationA chemical change in nature whereby theacidity of soil and water increases (the pHvalue drops). One source of the discharge ofacidifying compounds into the atmosphere,primarily sulphur and nitrogen oxides whichform sulphuric acid and nitric acid respec-tively, is the incineration of fuel (see alsonitrogen oxides). Plants absorb some of thenitrogen and in turn release certain com-pounds which neutralise the acid precipita-tion. Emissions of nitrogen oxides thereforedo not contribute as much to acidification asdo emissions of sulphur oxides. However,there is a risk that the ground will becomesaturated with nitrogen so that the plantsare unable to absorb it all, thus giving nitro-gen a more important role in acidification.

Agenda 21An action programme for the 21st centuryaimed at achieving ecologically, socially andeconomically sustainable development.Created in conjunction with the UNConference on Environment andDevelopment (UNCED) in Rio de Janeiro,Brazil in 1992.

AlcoholsOrganic chemical substances which containone or more hydroxyl groups (oxygen-hydrogen, OH) bound to carbon atoms.Alcohols are produced industrially througha process of fermentation and are, amongother things, used as an engine fuel.

AldehydesPartially oxidised hydrocarbons (HC) whichare responsible to some extent for theunpleasant smell of diesel exhaust gases.The aldehyde content of exhaust gases canbe reduced to an insignificant value by anoxidising catalytic converter.

Alkaline bathsDegreasing solutions containing metals.

Alternative fuelsAlternative fuels refer to fuels that do notcontain petrol or diesel fuel. Alternative fuelswhich can be used in combustion engines ofvehicles are, for example, various alcohols(methanol, ethanol), gases (hydrogen gas, liq-uefied petroleum gas, natural gas), syntheti-cally produced hydrocarbons (synthetic pet-rol or diesel oil) and plant-oil esters (rape-seed methylester, palm oil methylester).

Aromatics (aromatic compounds)Aromatics constitute one of the componentsof crude oil. They are more difficult to breakdown and combust in diesel engines than thecommon paraffins that make up the majorcomponent of this fuel. High aromatic levelsresult in high emissions of particulates.

BBenzeneHydrocarbon with six carbon atoms andsix hydrogen atoms. In combustion, it givesrise to soot and polycyclic aromatic hydro-carbons.

BiofuelRenewable fuel obtained from biomass, i.e.substances produced by living organisms,for example timber, wood chips and straw,or in refined form such as ethanol, metha-nol and dimethyl ether.

CCarbon dioxide (CO2)A colourless gas formed by all forms ofcombustion and by the decomposition oforganic material. Carbon dioxide contrib-utes to the greenhouse effect, and its emis-sions are directly proportional to theamount of fuel burned: if fuel consumptiondecreases, so do CO2 emissions. Carbondioxide is absorbed by plants via the process of photosynthesis, so the netincrease of CO2 in the atmosphere is lower if renewable fuels are used.

Carbon monoxide (CO)A toxic gas formed through incomplete

incineration of carbon and carbon com-pounds owing to an inadequate air supply.In contact with air, it is quickly convertedto carbon dioxide. The gas is toxic becauseit usurps the place of oxygen in the bloodsupply’s haemoglobin, thus preventing thedistribution of oxygen inside the humanbody.

CarcinogenA substance which causes cancer. See underPolycyclic aromatic hydrocarbons.

Catalyst – catalytic converterA catalyst is a substance which hastens achemical process without itself being con-sumed. Catalytic converters in passengercars use precious metals such as platinum.Diesel engines use oxidising catalytic con-verters which are basically the same as thoseused in petrol-powered vehicles. Due to theconsiderable surplus of air and thus also thehigh oxygen content in diesel exhaust gases,nitrogen oxides (NOx) cannot be reduced incatalytic converters, and a different methodmust be used (see Nitrogen oxides).The cat-alytic converter oxidises – incinerates – gase-ous and liquid substances, including hydro-carbons (HC) present in exhaust gases. Thecatalytic converter substantially reducesboth hydrocarbon and carbon monoxide(CO) content, and most of the typical dieselexhaust smell disappears. A low-sulphur fuelmust be used to prevent the formation ofsulphuric acid in the catalytic converter athigh exhaust gas temperatures.

Cetane ratingSpecifies the ignition properties of fuels fordiesel engines (cf. octane rating for petrolengines).

CFC(see Chlorofluorocarbons).

Chlorofluorocarbons (CFCs)Hydrocarbons containing both chlorine andfluorine. These are used in liquid form assolvents and refrigerants, and in gaseousform in spray-cans and for manufacturingcellular plastic foam.

CNGCompressed Natural Gas.

CO(see Carbon monoxide).

CO2(see Carbon dioxide).

Combustion temperatureThe temperature obtained in a combustionprocess, for example in an engine.

Component paintingEach component in the vehicle is paintedprior to assembly.

Compressed gasGas compressed under high pressure toshrink in volume.

Crude oilA mixture of hydrocarbons formed whenanimal and plant remains are decomposedover the millennia and deposited in sedi-ments. Crude oil is the raw material usedfor producing fuel.

DDecibel – dBAUnit for expressing sound level. A whisperis approximately 35 dBA, the pain-thresh-old is about 130 dBA. The EU limit forexternal noise level is 80 dBA.

DensityThe quantity per unit of volume, length orarea. In the case of substances, the weightper unit of volume.

Diesel engineEngine which compresses pure air underhigh pressure thereby considerably raisingthe temperature of this compressed air.When fuel is injected into this hot air, itignites and burns at the rate at which it ismixed with the air.

Diesel fuelPetroleum-based fuel derived from crudeoil. Diesel oils of various quality can beextracted depending on the degree of refine-ment and after-treatment.

Diesel oilThe most common type of diesel fuel.

Drag (aerodynamic resistance)A vehicle body designed to reduce dragassists considerably in reducing fuel con-sumption and lowering exhaust emissionsfrom the engine.

EEcologicalDesignation for something which takesplace in harmonious cooperation with livingorganisms and their environment.

EDCElectronic Diesel Control, offering electronicregulation of the diesel engine’s fuel injection.

Efficiency ratingThe ratio between the energy released andthe energy used, expressed as a percentage.The efficiency rating of a diesel engine maybe as high as 46 percent, compared to30–35 percent for a petrol engine.

EMASThe abbreviation for the EU’s Eco-Management and Audit Scheme. An EUscheme under which companies can certifytheir facilities. The aim is to stimulate com-panies to further develop their environmen-tal work in a systematic and uniform man-ner that goes beyond legal requirements.This requires a detailed plan with clearlyestablished goals, an action programme andan evaluation of all vital environmental fac-tors affected by operations. Companiesshall also issue a public, annual environ-mental report on the environmental impactof their operations and their achievements.

EmissionsDischarge of chemical matter or energy tothe surrounding environment, for exampleair pollution.

Emissions per tonne-kmDischarge of air pollutants calculated per kil-ometre for each tonne of transported goods.

Engine conversionAdjustments made to an engine so it canrun on alternative fuels, for exampleswitching from diesel to natural gas.

EsterificationChemical reaction when an ester is formed.(see esters).

EstersOrganic compounds formed through reac-tion between an acid and an alcohol withelimination of water.

EthanolAn alcohol produced through fermentationof biological material containing sugar orproduced synthetically within the oil indus-try. Ethanol can be used as engine fuel ifnecessary engine modifications are carriedout. Compared with petroleum-based fuels,ethanol produced from biomass can offersubstantial environmental benefits.

Euro 1 and 2Exhaust emission standards for trucks andbuses within the EU.

NOx ParticulatesEuro 1 1993 8.0 g/kWh* 0.4 g/kWh

(9.0 g/kWh**)Euro 2 1996 7.0 g/kWh 0.15 g/kWh*) on type inspection**) on inspection in production

Exhaust filter(See Particulate trap)

FFreonsTrade name for chlorofluorocarbons (CFCs).

Fuel consumptionThe amount of fuel an engine consumes

during haulage. At a gross weight of 60tonnes, a heavy-duty diesel-engine truckwith a full load consumes about 40 litres ofdiesel fuel per 100 km.

GGasBiogas or digester gas consists principally ofmethane. Digester sludge from sewage treat-ment plants is one source of biogas. Othersources are refuse dumps and digesterplants for organic materials from agricul-ture or industry.

CNG – Compressed Natural Gas. The com-position of this gas varies in different geo-graphical areas. Natural gas contains morethan 90 percent methane.

LNG – Liquefied Natural Gas. Anotherform of natural gas which must be stored atvery low temperature. CNG is thereforemore common for practical reasons.

LPG – Liquefied Petroleum Gas. LPG con-sists primarily of propane or propane/-butane. The gas that is most common inSweden contains 90-95 percent propaneand the remainder is made up of butane,propylene and butyl.

Glow plugAn electrically heated plug inside the com-bustion chamber of an engine. The glowplug assists in cold starts by heating thefuel.

Greenhouse effectIncoming solar radiation is prevented fromreflecting back to space by gases in theatmosphere, which act just like the glasspanels in a greenhouse. This effect is essen-tial for life on earth. However, certainhuman activities have led to an increase inproportion of such gases in the atmosphere,for instance through the discharge of car-bon dioxide from burning fossil fuels. Manthus reinforces the greenhouse effect.

Gross weightMaximum permitted weight for vehicle andload.

HHeat coefficientThe amount of heat obtained from com-plete incineration of a specific quantity of aspecified substance.

Heavy metalsMetals with a density (see above) in excessof 4.5 g/cm3, e.g. mercury, copper, cadmi-um, iron, lead, nickel and chrome. Mostheavy metals are toxic but some of themare essential in extremely small concentra-tions for certain biological functions.

Hybrid powerA vehicle powered by more than one energysystem, for example electricity as well aspetrol.

Hydrocarbons (HC)Organic compounds in exhaust emissionscomposed mainly of unburned fuel. Theyhave an unpleasant smell and are suspectedof representing a health hazard. The con-tent of unburned hydrocarbons in exhaustgases can be reduced principally byimproved combustion of the fuel.

Hydrogen gasHydrogen in gaseous form. A very light-weight gas, without colour or odour.

IInjection pressureThe pressure at which the fuel is pressedinto the diesel engine’s combustion chamber.

Injection systemA diesel engine must be equipped with ahigh-pressure system consisting of an injec-tion pump and injectors, designed to injectthe fuel into the compressed air in the cylin-der.

InjectorThe part of the fuel injection system which

27


injects the fuel into the cylinder. It mayhave a differing number of holes to obtainthe appropriate fuel distribution pattern.More holes results in more even fuel distri-bution and smaller droplet size, resulting inmore complete combustion of the fuel.

ISO 14001A standard for environmental managementwithin the ISO 14000 series. (ISO =International Standardisation Organisation).ISO 14001 is a standardised way of workingwith classifications and programmes for con-tinuous improvements in the environmentalfield. It is primarily considered an internalcorporate management tool to ensure that acompany’s environmental work is of a cer-tain quality. In general, a company that iscertified in accordance with ISO 14001 hasconducted a preliminary environmental auditand publishes an approved environmentalreport also meets standards for EMAS regis-tration. An ISO 14001 certificate can beissued for an entire company.

LLong CO2 cycleThe carbon life-cycle which covers fossilfuels. Carbon dioxide is being releasedtoday from the burning of fossil fuels, butthis carbon dioxide was bound in plant lifethrough photosynthesis millions of yearsago. The dead plants gradually formed intocoal and oil. The opposite of the long CO2cycle is the short CO2 cycle. Carbon diox-ide is released when biofuels are burned andwhen dead organisms decompose, but thisCO2 is bound in living plants. By burningof fossil fuels, carbon dioxide is added tothe atmosphere in excess of what is includ-ed in the short cycle. This is carbon dioxidewhich cannot be used up but which consti-tutes a net surplus and thus contributes tothe accelerating greenhouse effect.

MMethaneA colourless and odourless gas which isformed in various ways, for instancethrough the decomposition of plants inanaerobic environments and from waste inrefuse dumps. Methane is also the principlecomponent of natural gas. In addition,methane is classified as one of the so-calledgreenhouse gases.

MethanolAn alcohol (methyl alcohol) which is madethrough dry distillation of wood and othermeans, and which can be used as an alter-native fuel.

NNatural gasGas found in the earth’s crust and consist-ing primarily of methane. Natural gas is afossil fuel and is often extracted togetherwith petroleum (see CNG).

Nitrogen (N)Nitrogen is found in the air (78 percent byvolume) primarily in the form of diatomicmolecules (N2) and in the earth’s crust in theform of nitrates and ammonium compounds.In lakes and seas, nitrogen is found as asolute (N2) and in the form of nitrate, nitriteand ammonium salts. Nitrogen is essential toall life and is also found in proteins. It is partof a complicated natural cycle involving theair, soil, water, plants and animals. Varioushuman activities, among other thingsincreasingly intensive agriculture and forestryand the burning of fossil fuels, have inter-fered with this natural cycle and lead to anincreased concentration of nitrogen in lakesand seas (see Over-fertilisation).

Nitrogen oxides (NOx)Chemical compounds of oxygen and nitro-gen. From the environmental viewpoint, themost important are dinitrogen oxide (N2O),nitrogen monoxide (NO) and nitrogen diox-ide (NO2). These contribute to acidificationand over-fertilisation of soil and water.

In the diesel engine, it is possible toreduce the content of nitrogen oxides inexhaust gases by modifying the combustionof fuel in the engine. This effect cannot be

achieved by the traditional method of usingcatalytic converters.

NoiseUndesirable sound. Vehicle traffic is one ofthe biggest sources of background noise insociety today.

NOx(see Nitrogen oxides.)

OOleiferous plantsCommon designation for plants whoseseeds and fruits yield oil, for example rape-seed (canola).

Operational rangeThe distance a vehicle can travel dependson its fuel supply.

Organic solventsSolvents containing carbon. They dissolveoil, grease and other substances which arenot soluble in water.

Otto cycle engineUsually known as the petrol engine. It fea-tures an electric ignition system and sparkplugs which ignite the mixture of fuel andair. The Otto cycle engine is most common-ly used in automobiles.

Over-fertilisation – EutrophicationThe condition whereby the soil, the inlandwaters or the sea are supplemented with agreater quantity of nutrients (phosphorus ornitrogen) than the ecological system iscapable of handling, causing a net imbal-ance. In lakes and seas, this can result in anexcessive build-up of algae and vegetationwhich in turn can cause other types ofwater-based flora and fauna to die out. Thesubsequent decomposition of this increasedamount of organic material may lead to avast shortfall in oxygen on the bottom ofthe lake or sea, causing the mass extermina-tion of bottom-dwelling organisms.

OzoneA form of oxygen which consists of threeoxygen atoms (O3). At an altitude of 15-20km, ozone is an essential shield which pre-vents incoming ultraviolet solar radiationfrom penetrating to the earth’s surface.

At ground level, however, ozone is atoxic substance which poses a health hazardin high concentrations and which can dam-age agricultural harvests and forests.Vehicles emit both hydrocarbons and nitro-gen oxides, and are therefore a major sourceof the increased ozone levels seen today.

Ozone can be regarded as a secondarypollutant since other pollutants are requiredfor its accelerated formation. Ozone levelsare not very high in urban areas partlybecause other chemical compounds presentin urban areas tend to break it down, andpartly because it takes a certain amount oftime to form. High levels may therefore benoticed at great distances from the source.

PParticulate trapThere are two types:A ceramic exhaust gas filter in which theexhaust gases are forced from one duct toanother through a porous wall which trapsthe particles.A metal filter in which a metal mesh trapsall passing particles. All types of filter mustbe burned clean at high temperatures. Bycoating the filter with a special catalyticagent, the combustion temperature can belowered.

Particulate traps are specifically intendedfor retrofitting to vehicles powered byengines which have not been designed tomeet future exhaust emission requirements.

Particulates (PM = Particulate matter)Diesel exhaust gases contain soot particleswhich are coated with hydrocarbons andsulphuric acid. The soot core can bereduced by fine atomisation of the fuel, thusproviding better combustion. If the aromat-ics content of the fuel is reduced, soot isalso reduced. A low sulphur content in thefuel also reduces the proportion of sulphurin the particulates. Hydrocarbons can bereduced by more efficient combustion and

by filtering the exhaust gases through a cat-alytic converter, which also removes theunpleasant diesel odour.

PetrolA blend of hydrocarbons. The most com-mon fuel used for Otto cycle engines.

Petroleum(see Crude oil.)

Photochemical oxidantsReactive compounds which participate inchemical reactions in response to sunlight,whereby they oxidise (give off oxygen) toother substances. Ozone is the most impor-tant of these from the environmental view-point.

PhotosynthesisThe process by which green plants use solarenergy to convert carbon dioxide and waterinto oxygen and carbohydrates (starch andsugar compounds).

Polycyclic aromatic hydrocarbons (PAH)Polycyclic aromatic hydrocarbons, known asPAH compounds, are bound to the soot par-ticles in the exhaust gases from diesel engines.Tests on animals have shown them to bemutagens (i.e. they cause genetic changes)and carcinogens (i.e. they give rise to cancer).

Powder paintingPainting process using paint in powder form.The colour pigment, hardener and othercomponents are included but unlike otherpaints this type contains no solvent. Thereare several methods of applying this paint. Indip coating, the material to be painted is pre-heated and dipped in a mixture of powderand air, whereupon the paint melts onto thesurface. In the frictional charge system, thepowder particles are electrostatically chargedand the paint is applied to the surface usinga spray pistol. An electric field is createdbetween the pistol and the earthed material,and the paint sticks to the surface. The mate-rial is then heated and the paint melts toform a smooth, uniform surface.

RRapeseed oil – canola oil Vegetable oil which can be used as a fuelfor engines.

RecyclingUtilising waste and other residual products.In terms of the conversion of a residualproduct, recycling can be divided into reuse,material recycling and energy extraction.Recycling may occur in several stages of thewaste management process.

RefiningImproving crude oil through the “cracking”process.

Reformulated diesel fuelDiesel fuel which has been subjected to achemical process to improve its composi-tion, e.g. by desulphuration and de-aromat-isation. This process results in a fuel withlower harmful emissions.

RefrigerantsThe operating agent in cooling systems suchas refrigerators and air conditioning units.

It can absorb, transport and release heatby alternating between liquid and gaseousform.

CFCs (freons, see above) and ammoniaare some of the agents used as refrigerants.

Older types of CFC contribute consider-ably to the greenhouse effect and thinningthe ozone layer in the higher reaches of ouratmosphere. Modern air conditioners useso-called “soft” CFCs which are less reac-tive and therefore less destructive to theozone layer.

Return packagingPackaging materials which, when emptied,can be returned to be reused, for examplethe Euro-pallet.

ReuseRecycling a product in its existing conditionby utilising its qualities, for example returnpackaging and the reuse of returnable bot-tles as containers for other products.

Rolling resistanceEnergy is used up when a wheel rolls across

a surface, in the form of tyre deformationand surface resilience. This, together withfriction in the wheel bearings, adds up torolling resistance.

Rolling resistance has been considerablyreduced in recent years owing to immenseprogress in tyre design and other areas.

SSolventsSubstances which are used to dissolve othermaterials. Can be water-based in certaincases. However, from the health and envi-ronment viewpoints, the organic solvents areworthy of more attention. They can dissolveoil, grease and other substances which can-not be removed with water and they containvolatile organic compounds (see below).

SootFinely ground coal which is formed owingto the incomplete combustion of organicsubstances.

Sulphur (S)A chemical element which is found in fossilfuels and other sources. The content incrude oil, for example, varies dependingpartly on the conditions under which it wasoriginally formed and partly on the degreeof desulphurisation in the refining process.The discharge of sulphur from burning offossil fuels is the main cause of soil andwater acidification. If the sulphur content ofa fuel is reduced, so too is the emission rateduring combustion.

Sulphuric acidThe end product in the combustion of sul-phur.

TTransmissionThe components which transfer the powerproduced by the engine to the driving wheels.

Transport workMeasurement for a quantity of goods trans-ported a certain distance. This is expressedin units of tonne-kilometre.

UUF concentrateUltrafiltration concentrate. Waste oil fromthe treatment of washing fluids and cuttingemulsions.

VVegetable estersIn their original form, vegetable oils havelimited use as engine fuels owing to theirdensity, viscosity, cetane rating etc.However, if they undergo esterification, theytake on characteristics similar to those ofdiesel fuel. Rapeseed oil methylester is justsuch a product which is becoming increas-ingly significant as an alternative fuel.

Volatile Organic CompoundsAbbreviated as VOC, these appear in suchproducts as solvents, paints and petrol.VOC evaporates into the air as a gas atroom temperature. They are sometimesknown as hydrocarbons but in addition tocarbon and hydrogen, they also containother substances such as chlorine and oxy-gen. Emissions of VOC contribute to theformation of ozone and other photochemi-cal oxidants at ground level. Certain VOCsare carcinogens.

WWaste oilOil debris that collects as a result ofmachinery maintenance, oil separators etc.

Water-based paintPaints and varnishes which use water as asolvent and diluting agent.

28


CONTACT NAMES ANDADDRESSES

Scania’s Environmental Report can be orderedfrom:Scania Communications and Public AffairsS-151 87 Södertälje, SwedenTel: +46 8 55 38 10 00

Contact namesMarcela PetkovEnvironmental Communications OfficerTel: +46 8 55 38 19 [email protected]

Ronnie KlingbergEnvironmental CoordinatorTel: +46 8 55 38 23 [email protected]

Urban WästljungEnvironmental StrategistTel: +46 8 55 38 36 [email protected]

Head Office and Technical CentreScania ABS-151 87 Södertälje, SwedenTel: +46 8 55 38 10 00Fax: +46 8 55 38 10 37Internet: www.scania.com

Production plantsSwedenScaniaBox 1906S-791 19 Falun, SwedenTel: +46 23 477 00Fax: +46 23 71 13 79

Scania Buses & CoachesS-641 81 Katrineholm, SwedenTel: +46 150 585 00Fax: +46 150 532 30

ScaniaBox 77S-695 22 Laxå, SwedenTel: +46 584 108 20Fax: +46 584 102 01

ScaniaBox 815S-971 25 Luleå, SwedenTel: +46 920 766 00Fax: +46 920+ 896 10

ScaniaBox 903S-572 29 Oskarshamn, SwedenTel: +46 491 76 50 00Fax: +46 491 76 54 30

ScaniaS-280 63 Sibbhult, SwedenTel: +46 44 495 00Fax: +46 44 481 08

ScaniaS-151 87 Södertälje, SwedenTel: +46 8 55 38 10 00*Fax: +46 8 55 38 10 37

Production plantsOther European countriesDAB Silkeborg A/SPostboks 309DK-8600 Silkeborg, DenmarkTel: +45 86 82 33 00Fax: +45 86 81 56 54

Scania Production Angers S.A.P.B. 846F-4908 Angers Cédex 01, FranceTel: +33 2 41 41 20 00Fax: +33 2 41 41 20 48

Scania Nederland B.V.P.O. Box 618NL-8000 Al Zwolle, The NetherlandsTel: +31 38 497 76 11Fax: +31 38 497 79 11

Scania Kapena S.A.Grunwaldzka 1276-200 Slupsk, PolandTel: +48 59 43 88 71Fax: +48 59 43 66 01

Production plantsLatin AmericaScania Argentina S.A.Casilla de Correos Nro. 3Correo Central4000 San Miguel de Tucumán,ArgentinaTel: +54 81 50 90 00Fax: +54 81 50 90 01

Scania do Brasil LtdaCaixa Postal 18809810-902 São Bernardo do Campo-SP, BrazilTel: +55 11 752 93 33Fax: +55 11 451 26 59

Scania de México S.A. de C.V.Prol Av Industrí No 4640Esq Eje 134, C P 78395San Luis de Potosí, SLP, MexicoTel: +52 48 24 05 05Fax: +52 48 24 05 0419

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Scania AB (publ), S-151 87 Södertälje, Sweden

Internet: www.scania.com

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