Groupe Renault - 2019 Universal Registration Document

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REGULATORY ENVIRONMENT GROUPE RENAULT

Autonomous and/or connected 1.7.1.3.4 vehicles Although not a compulsory feature, regulations for vehicles with driverless operation services should, in the initial stages, cover systems that help drivers to stay in lane, to drive in congested traffic and on highways (Advanced Lane Keeping Systems). Extensions to more ambitious use cases should become reality by 2030. "Driverless" vehicles are a special case that will undoubtedly be handled through testing carried out at the national level, and authorizations issued locally, for public transport and other uses. In parallel, the rules of the road would gradually have to be changed in order to authorize the use of these autonomous driving systems. Thus, an amendment to the Vienna Convention on road traffic, allowing these developments, could be adopted as early as 2020. Connectivity is also a special case, insofar as it calls on a number of players outside the automotive sector. 1.7.1.4 The so-called "substances" regulation governs the registration of all substances and materials present in vehicles and sets out prohibitions and limitations of these substances and materials, with monitoring of each vehicle to avoid distribution on the market of harmful or prohibited products and facilitate recycling of end-of-life vehicles. Prohibited substances and materials Environmental regulations 1.7.2 As part of its production of automotive vehicles and mechanical equipment and the sale of its products, Groupe Renault is required, in the various countries where its vehicles and products are located or marketed, to comply with certain regulations that are directly applicable to it, in particular with regard to the sites and installations it operates and the substances used as part of its production process. Because of its activities, Groupe Renault is subject to environmental regulations, concerning, among other areas, emissions into the air, waste management, and water and soil impacts. The main regulations applicable to Groupe Renault’s industrial, logistics and commercial activities are described below.

Global Regulatory Substances Guidelines are mainly set by the European Union. These include European REACH, POP (persistent organic pollutants) and biocidal products regulations for substances, greenhouse gas regulations for air conditioning fluids, recycling regulations (minimum recyclability and recovery quotas and limits on certain substances or prohibition of certain hazardous materials in recycled materials), and the introduction of environmental performance obligations over the entire life cycle of vehicles. Other countries such as China, Korea, and Japan could also adopt specific requirements for the emissions of materials present in vehicles to guarantee passenger cabin air quality. 1.7.1.5 The unique legal environment in European Union Member States shows a general trend toward more stringent requirements and oversight of them by regulatory authorities, whether through stricter monitoring of approval tests, maintaining the performance of vehicles throughout their life via engine compliance inspections, maintaining the general condition of the rolling vehicle population via reinforced technical controls, enhanced verification of the compliance of production (COP) and monitoring the compliance of new vehicles put on the market. For example, through the new EU Regulation 2018/858, the European Union has decided to implement market oversight from September 2020 that consists of requiring each Member State of the European Union to conduct vehicle compliance inspections that include performance of approval tests on a sample of vehicles representative of their national market. Another purpose of market oversight is the monitoring of the functioning of technical services and approval authorities in each European Union Member State to detect and correct malfunctions in the European approval system. Stronger oversight Industrial emissions management 1.7.2.1 Directive no. 2010/75 of November 24, 2010, known as the Industrial Emissions Directive (IED) , replaced the Integrated Pollution Prevention and Control (IPPC) Directive and six sector directives, including the large combustion plants directive (2001/80/EC). The IED strengthens a number of requirements for the prevention and reduction of pollution emitted by industrial installations into the air, water, and soil. It also establishes thresholds that are not to be exceeded. It states that certain industrial facilities must first obtain administrative authorization. This authorization cannot be issued by the competent administrative authority unless certain environmental conditions are met (adequate preventive measures against pollution being undertaken by the operator and ensuring that the facilities are not a significant source of pollution).

118 GROUPE RENAULT I UNIVERSAL REGISTRATION DOCUMENT 2019

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