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Stuttgart – A holistic understanding of sustainability, CO₂-neutral products and production by 2039, responsibility to employees and society, as well as the creation of clear obligations with strong corporate governance: These keywords describe the realignment of Daimler Truck Holding AG’s sustainable business strategy. In its Sustainability Report 2021 published today, the company reports on the specifics of what it achieved in terms of sustainability in the past year. It is the first report Daimler Truck is presenting as an independent, publically listed company.

Martin Daum, CEO of Daimler Truck: “Our independence as Daimler Truck AG provides us with a unique entrepreneurial opportunity. At the same time, this comes with a great deal of responsibility to our employees, to the environment, and society as a whole. The greatest responsibility for us as a company is dealing with climate change. We are therefore clearly committed to the Paris climate protection agreement. It is our declared goal, as a leading commercial vehicle manufacturer, to bring CO₂-neutral solutions for the transport of goods and people to the market.”

Focus on environment, social issues, and responsible corporate governance

Acting responsibly is and has always been deeply rooted at Daimler Truck, and the company is committed to sustainability. In implementing its sustainable business strategy, the company is guided by the ESG framework and thus focuses on three subject areas: “Environment,” “Social” and “Governance.” In recent years, the commercial vehicle manufacturer has launched many initiatives under the umbrella of the then Daimler AG, which contribute to these topics through their work and commitment.

“Not everything that the realignment of our sustainable business strategy entails is new to us. We have previously achieved much in terms of sustainability: Our vehicle portfolio already includes electrically powered trucks and buses in all geographic regions - and there will be significantly more shortly. At the end of 2019, we communicated our goal of exclusively selling CO₂-neutral vehicles in North America, Europe, and Japan from 2039 on. We are also making our global production CO₂-neutral,” continued Martin Daum.

Dealing responsibly with climate change: Emission-free vehicle fleet by 2039

In order to contribute to the decarbonization of the commercial vehicle industry, Daimler Truck is pursuing the goal of putting CO₂-neutral transport on the road by 2050. The Group, therefore, aims to sell only CO₂-neutral vehicles in its main sales regions in North America, Europe, and Japan from 2039 forward. Our so-called „dual strategy“ focuses on two complementary technologies for the power supply of our drive-trains: batteries and hydrogen fuel cells.

Daimler Trucks' vehicle portfolio in the main sales regions of the EU 30 (European Union, United Kingdom, Switzerland, and Norway), U.S., and Japan already include series-production vehicles with battery-electric drive: The all-electric Mercedes-Benz eCitaro city bus has been in series production since 2018. The all-electric Mercedes-Benz eActros celebrated its world premiere in 2021; the FUSO eCanter has been on the market since 2017, and series production of the battery-electric Freightliner eCascadia and eM2 is about to launch in the U.S. Other vehicles such as the hydrogen-based Mercedes-Benz Gen H2 Truck are currently being tested as prototypes.

CO₂-neutral production by 2039 at all sites

Daimler Truck AG is also pursuing the goal of CO₂-neutrality in production by 2039 at all locations and in all business areas worldwide. By purchasing green electricity or increasing our production of energy from renewable sources, greenhouse gas emissions caused by vehicle production and the energy supply to the plants are to be reduced or - wherever possible - avoided altogether.

Here, too, the first milestones have already been set. In 2022 all European plants will have a CO₂-neutral balance sheet with electricity provided by renewable energies. By 2025 all Daimler Trucks North America (DTNA) production sites will follow in terms of CO2 neutrality. The truck plant in Portland achieved balance sheet CO₂-neutral production as early as 2020 and uses green electricity.

In addition, Daimler Truck has also implemented the transformation toward CO₂-neutrality along its entire value chain, e.g. by requiring suppliers to have a certified environmental management system.

Great responsibility for road safety, human rights, and employees

Social and societal responsibility is also a high priority for Daimler Truck: To ensure human rights are respected along its entire supply chain, the Group is committed to, among others, the UN Guiding Principles on Business and Human Rights and participates in the UN Global Compact. Through the continuous further development of safety and assistance systems, as well as automated driving, Daimler Truck is pushing forward with its vision of accident-free driving with the goal of “Zero Accidents.” Daimler Truck fulfills its social responsibility as an employer through responsible training, the promotion of health, safety, and well-being (“Vision ZERO”), and advocacy for diversity, equality, and the inclusion of its employees.

Sustainability firmly anchored within Corporate Governance

In order to underscore its responsibility to the environment and society, Daimler Truck established future-oriented corporate governance even before the spin-off from the former Daimler AG. The company is building on the strong foundations that were laid while in the former Daimler group. For example, a comprehensive compliance management system is used to control the Group's opportunities and risks worldwide, also regarding sustainability issues. The new central management and decision-making body for all sustainability issues (Corporate Sustainability Board) are based at the Board of Management levels of Daimler Truck Holding AG and Daimler Truck AG.

E-mobility is electrifying more and more people and companies around the world. Internationally, it is rapidly gaining momentum. Analysts expect demand for electric buses to continue to rise in the coming years. By 2040, sales of zero-emission buses are expected to rise to over 80 percent of the global market. "To meet this demand and make an important contribution in terms of sustainable mobility, we are now offering the MAN electric bus solution for international markets outside Europe with our bus chassis," says Rudi Kuchta, Head of Business Unit Bus at MAN Truck & Bus, adding, "With the chassis, we are giving bodybuilders from all over the world the perfect basis for their fully electric models."

For the development and market launch of the bus chassis, MAN is relying on the knowledge and expertise already built up with the Lion's City E. "In addition, we are relying on our long-standing partnerships and are working intensively with our global network of bodybuilders so that we can also serve markets in Asia, Africa, South America, Australia, and New Zealand in the best possible way," says Kuchta. The prototypes of the MAN bus chassis will be delivered as early as 2023. Series production is scheduled to start in 2024. The bus chassis will be produced at MAN's Polish plant in Starachowice, where the Lion's City E is also manufactured. "In recent years, our employees in development and production have gained valuable experience around our eBus and its series production. We are naturally incorporating this into the production of our new bus chassis, from which our customers will benefit significantly."

eBus chassis: Flexible solutions and proven technologies as a first step, MAN will offer the bus chassis as a two-axle version for use as a low-floor, low-entry and intercity bus (high floor). "To ensure that the bus chassis can be used everywhere, it will be available as a left- and right-hand drive variant," says Barbaros Oktay, Head of Bus Engineering at MAN Truck & Bus, adding, "This is particularly interesting for countries where left-handed traffic prevails and MAN buses already dominate the road scene. These include Singapore, South Africa, Australia, and New Zealand, among others."

When it comes to the components for the bus chassis, MAN relies on technology from the Lion's City E - above all the electric central motor on the rear axle and reliable battery technology from the Volkswagen Group. "Thanks to this technology, which has already proven itself in the field, and our many years of experience in chassis technology, we can offer our customers an innovative and efficient mobility solution for urban and intercity transport," says Oktay. Another convincing aspect is that MAN is going one step further with battery technology to meet the sometimes enormously different requirements of international bus companies in terms of the daily range, total mileage, and costs. In addition to the NMC technology (lithium-nickel-manganese-cobalt battery) familiar from the Lion's City E, there will therefore be LFP technology (lithium-ferrophosphate battery). "Our goal is to make it as easy as possible for all our customers to get started with electromobility. And we can do this with a product that is safe, reliable, has a long-range and is extremely flexible," Oktay sums up.

NewMAN strategy: eBus chassis as an important step into the future

The introduction of the eBus chassis is another important and consistent step for MAN Truck & Bus about the NewMAN strategy - and thus toward the future. The aim is to play a key role in shaping the mobility of tomorrow. "In doing so, we are focusing on CO₂-free driving, a core element of our strategy," says Rudi Kuchta, adding, "Our path leads from low emission to no emission. To achieve this, we are relying entirely on electric mobility in the city bus segment with the Lion's City E." And with success: the all-electric city bus is now in use in many major European cities. Whether in Barcelona, Hamburg, Copenhagen, Malmö, or Zurich - the Lion's City E proves day after day how excellently it masters urban traffic and how easily it can be integrated into existing operations.

In total, MAN Truck & Bus has signed contracts with customers for the delivery of more than 1,000 electric buses since Lion's City E went on sale. The new eBus chassis is now set to make a significant contribution to advancing sustainable mobility outside Europe as well. "At MAN, we are committed to the Paris climate targets. For us, social responsibility for environmentally friendly mobility does not end at Europe's borders," says Kuchta.

A holistic approach to carbon-neutral logistics is celebrating its premiere: Battery modules and cells from Hungary will in future be delivered to Brussels by rail instead of truck. This switch will reduce annual carbon emissions by around 2,600 tons – and serves as a model for revolutionizing, if possible, all shipments of the car manufacturer’s battery components. Reducing the company’s ecological footprint is the central goal of the cross-site environmental program Mission:Zero.

It is a major milestone on Audi’s journey toward across-the-board sustainability: In the future, components for the production of batteries at Audi’s Brussels plant will no longer be delivered by truck from Hungary, but by rail with DB Cargo. The move will radically reduce Audi’s environmentally harmful carbon emissions and save a lot of money. The switch in means of delivery between Hungary and Brussels, which was started in May and is scheduled to be completed by the beginning of 2023, is a preview of the car manufacturer’s future: “Brussels plays a pioneering role, but we developed this sustainable logistics concept for battery modules and cells in Audi’s entire production network,” says Dieter Braun, Head of Supply Chain at AUDI AG – in the future, preferably all production sites will implement this solution.

Switching to rail reduces emissions and saves money

The project in Brussels illustrates the immense potential of this supply chain concept: Until now, battery modules and cells needed in Belgium for the Audi e-tron and Audi e-tron Sportback were transported by truck over the approximately 1,300-kilometer-long route from the supplier in Hungary. To meet the Belgian site’s demand, twelve to 15 fully loaded vehicles set off across Europe every day. This caravan of trucks is now being replaced by rail transport. The switch will reduce carbon emissions by around 2,600 tons every year. Wherever possible, Audi uses DB Cargo’s DBeco plus service – for example, currently for the legs of the route in Austria and Germany: The service sources power exclusively from renewable sources such as wind, water, or solar energy, making transport carbon-free. In Hungary and Belgium, Audi uses DBeco neutral. With this product, the power used for transportation is offset by means of climate certificates, reducing carbon emissions elsewhere.

Volker Germann, Chairman of the Board of Management at Audi Brussels, explains the significance of this approach for the Brussels plant: “Our site has already been net carbon neutral since 2018. Therefore, we’re also working to make the supply chain sustainable in order to contribute to environmental protection at all levels.” An additional benefit, the switch also lowers annual process costs by millions. In addition to reducing carbon emissions through switching to rail, the entire delivery process to the Brussels plant has been optimized.

The supplier of the battery modules in Hungary does not have its own rail siding. Therefore, AUDI AG’s long-standing project partner DB Cargo recently put a logistics center (LC) into operation at the Győr site. At the weather-protected LC, battery modules are reloaded from trucks to rail cars for delivery. The modules are first picked up from the manufacturer by truck and transported from the Győr LC more than 1,000 kilometers by rail to Brussels. Initially, a lightweight hall was built in the immediate vicinity of the Audi plant in Győr; an additional expansion is already being planned. In order to meet the high quality and safety requirements for battery modules and cells, the Audi Supply Chain team uses a digital information platform and special sensor technology to monitor the temperature and any shocks in the rail cars.

A company-wide concept

The shift pioneered by Brussels is planned to be extended to the entire company in the foreseeable future: High-turnover components, such as battery modules and cells, will increasingly switch to delivery by rail – by 2025, Audi aims to transport these components exclusively by train. At Audi’s headquarters in Ingolstadt, for example, everything is ready to go for the production of batteries using modules and cells shipped by rail; the batteries will then be used to manufacture Audi models on site. New equipment and processes have been installed specifically for this purpose. And other plants are already waiting in the wings to switch to rail delivery of battery components. Similarly, a large share of the finished products are also shipped by rail: Today, around 68 percent of Audi vehicles in Europe already leave the plants by rail, a figure that is set to only increase in the future.

Integration in environmental program Mission:Zero

These targets dovetail with the company-wide environmental program Mission:Zero, by which the brand with the four rings seeks to achieve net carbon neutrality at all Audi sites by 2025. In addition to the decarbonization of production and logistics, water use, resource efficiency, and biodiversity are other key areas of activity for the Mission:Zero program.

True to its stated roadmap, Scania is now introducing solutions built upon the next level of battery-electric trucks (BEV). The new generation, available with R or S sleeper cabs, is part of a complete solution that will open the door to the electrified transport landscape wide for a vast number of customers and app-lications. With 624 kWh of batteries installed, Scania provides the means for a major shift regarding electric trucks and their operability in regional long-haul operations.

“This introduction represents a major milestone for us and for our partners,” says Christian Levin, Scania’s CEO. “We are now increasing our range in every dimension by offering new opportunities for a vast selection of customers and the whole transport ecosystem. These trucks are part of solutions that contain all the capabilities that a transport industry longing for electrification is asking for.”

Scania’s new BEV truck generation is based on classic Scania cornerstones such as modularity, sustainability and a total operating economy with the potential to match or even exceed what can be expected from conventional trucks. And the latest electric Scania trucks are accompanied by all the support with operational factors and services that make them complete solutions, with charging, finance, insurance and maintenance all in place.

“The addition of these solutions to Scania’s portfolio is a major step-change for customers who want to take charge,” says Fredrik Allard, Senior Vice President and Head of Electrification at Scania. “We are facilitating a transition for our customers by including important customer values such as a close partnership and zero emissions.”

With the new Scania trucks, customers will be able to operate rigids or tractor-and-trailer combinations such as temperature-controlled food transports. Ranges vary with weight, configuration and topography, but a 4x2 tractor with six batteries can expect up to 350 km between each charging, with an average speed of 80 km/h on motorways. Fixed routes that provide for planned charging at the home depot or at the destination are most favourable. Opportunity charging during the driver’s man-datory 45 minutes rest will of course increase the operative range.

“Scania has now reached a favourable maturity regarding our electrified offer,” says Allard. “With this major addition to our existing hybrids and the BEVs for urban distribution we introduced in 2020, we can now offer a sustainable and multi-faceted portfolio of zero-emission solutions for our customers.”

The new Scania BEV trucks can initially be ordered as 4x2 tractors or as 6x2*4 rigids. A 4x2 tractor will need an axle distance of 4,150 mm when carrying six batteries, thus benefiting from the Increased Vehicle Dimension regulation in Europe. Gross train weights up to 64 tons, as per the typical Nordic combination, can be specified.

The charging capability is up to 375 kW, which means that an hour of charging will add some 270 to 300 km of range, as a rule of thumb. The continuous power output level for a Scania 45 R or S is 410 kW (equivalent to some 560 hp). The next-level Scania electrified trucks can now be ordered by taking up a dialogue with Scania representatives, and production will commence in Q4 2023.

“Tackling the global CO2 challenges means that we all need to produce and consume in new ways,” says Levin. “Reduce, reuse and recycle have always been important for Scania. The only thing that stands between us and a major transition to a fossil-free transport system based on electrified solutions is a complete charging infrastructure, but we are seeing great progress there too.”

The availability of charging solutions is indeed crucial for European customers who want to start investing in BEV trucks on a greater scale. Scania has teamed up with global partners, and with Scania as the single point of contact, they can offer complete charging solutions that secure a seamless and future-proofed experience for BEV customers.