Groupe Renault - 2020 Universal Registration Document

156 GROUPE RENAULT I UNIVERSAL REGISTRATION DOCUMENT 2020 Find out more at group.renault.com 02 OUR ENVIRONMENTAL COMMITMENT GROUPE RENAULT: A COMPANY THAT ACTS RESPONSIBLY Organization and resources EFPD7b C. The focuses of Renault’s environmental policy are debated and approved by the Board of Management (formerly the Group Executive Committee) on the recommendation of the Vice President Strategic Environmental Planning. The Strategic Environmental Planning department prepares, deploys and monitors the implementation of the environmental policy in all sectors of the Company. To this end, it uses a network of representatives who are assigned to all Company departments, as well as the expertise network created within the Group in 2010 in areas such as “energy, environment and raw materials strategy,” “vehicle CO 2 ” and “air quality and substances.” Resources Renault spends over €2 billion per year on Research and Development. Most of these resources are dedicated to new vehicle development, a phase in which improvement of environmental performance is inseparable from the standard product renewal process. About €200 million are allocated yearly to research and advanced engineering in the early stages of vehicle projects. A substantial portion of this expenditure is allocated to innovations specifically intended to reduce fuel consumption and vehicle emissions. These play a role in the appeal of the products, answer regulatory requirements (particularly in Europe), and represent an important tool for shrinking Renault’s environmental footprint. On the industrial side, Renault invests continuously in the refurbishment and improvement of its facilities in terms of environmental, individual and property protection, and the production and distribution of energy. The operational expenses associated to these activities can be added to these amounts. In 2020, the health crisis severely constrained these investments (closure of sites, impossibility for employees to travel), which totaled around €18 million. Renault also allocates financial resources to the development of partnerships and equity investments in the area of the environment and sustainable development through Renault Environnement, a subsidiary set up in 2008 and headed by the Group’s Vice President, Strategic Environmental Planning. Environmental skills and training EMS Renault provides its employees with environmental training and information adapted to their role and their needs. activities. In addition, educational and awareness-raising activities on environmental protection regularly take place through internal communication channels or through weekly team meetings. Plant employees receive workstation training, including environmental aspects, particularly chemical risks arising from handling, storage and spills, and the sorting of waste. In the majority of plants, this training is done through a specific Dojo (workshop) and involves a hands-on approach to waste management practices and the handling of chemical products in day-to-day In the engineering functions, employees have access to environmental training linked to their business, provided in the form of internal training modules ( e.g. training for ISO 14001 auditors or design-for-recycling) or training provided by a specialized external organization if a specific skill is required. Renault employees in France also have access to eco-driving training. Environment and competitiveness D. The effort to reduce environmental impacts is still frequently perceived as a source of additional costs for companies. This is only part of the picture, however, since it does not take into account the positive impact on operating costs, product and service offering appeal and the diversification of income streams. Reducing operating costs In the extremely competitive automobile market, keeping vehicle production costs low is crucial in order to retain a competitive edge. Costs stemming from energy consumption and waste management at Renault’s plants run into the hundreds of millions of euros each year. Optimizing these areas is thus a means of both reducing the environmental impact of operations and substantially lowering production costs. In 2020, the actions taken to reduce energy consumption in all of the Group’s plants, under the supervision of a dedicated centralized team (see “Manufacturing” under section 2.2.3.A, “Energy and Climate Change”) secured savings of approximately €10.3 million on the Group’s yearly energy bill. In addition, the Group sorted and resold recyclable waste (largely metals), generating revenue of more than €113 million in 2020. Substantial potential savings could also be made from the recovery of other more specific waste materials. For example, using recycled solvents (see “Manufacturing” under section 2.2.3.B) rather than virgin ones reduces their cost by 30%. Increased use of recycled materials and efforts to reduce exposure to critical raw materials are also part of the process of keeping costs low. Reducing exposure to virgin materials has become all the more important given both the extreme volatility and long-term upward trend of primary raw material prices. These less foreseeable changes are only partially passed on in vehicle sales prices due to the intensely competitive environment. They thus have a direct impact on the Group’s operating profit (see section 2.2.3.B). Setting up “short loops” for the recycling of materials within the Group’s business scope (see “Recycling: Develop new recycling routes, use recycled materials” in section 2.2.3.B) is therefore a means of reducing both the cost of purchasing raw materials and the Group’s exposure to the volatility of their prices.