Groupe Renault - 2019 Universal Registration Document

RENAULT: A RESPONSIBLE COMPANY

ANNUAL GENERAL MEETING OF RENAULT ON APRIL 24, 2020

GROUPE RENAULT

CORPORATE GOVERNANCE

FINANCIAL STATEMENTS

RENAULT AND ITS SHAREHOLDERS

ADDITIONAL INFORMATION

REGULATORY ENVIRONMENT

European Directive 2003/87/EC establishing a scheme for greenhouse gas emission allowance trading systems affects 11 Group sites in France, Spain, Slovenia, and Romania. Its application for the current phase (2013-2020) is mainly governed by European Regulation 601/2012 on the monitoring and reporting of greenhouse gas emissions. For the fourth phase (2021-2030), this regulation is superseded by European Regulation 2018/2066. This system requires sites subject to the Regulation to report their greenhouse gas emissions each year and return a number of “allowances” equivalent to the metric tons of CO 2 emitted. A certain number of allowances is allocated free of charge, and additional allowances may be purchased on the primary or secondary markets. The allocation of free allowances is governed by strict rules, which are specified in Decision 2011/278 for the third phase, and in European Regulation 2019/331 for the fourth phase. Annual greenhouse gas emissions are verified by an independent third-party organization accredited according to the procedures described in European Regulation 600/2012 for the third phase and in European Regulation 2018/2067 for the fourth phase. Changes to these regulations, in particular the loss of “carbon leakage” exposure status starting with the fourth phase (2021-2030) will greatly reduce the number of free allocations from sites subject to the Regulation. In Korea, an exchange system was put in place in 2015, by a 2012 law (Act on Allocation and Trading of Greenhouse Gas Emissions Allowances) and an associated decree. The Busan site (RSM) is subject to this law. 1.7.2.3 Groupe Renault is subject to the applicable European regulations on the use and protection of water since it abstracts, uses, and discharges water during its production processes. Directive no. 2000/60/EC of October 23, 2000, known as the Water Framework Directive (WFD) , establishes a framework for a community water policy. The WFD defines a framework for the management and protection of waters by major hydrographic basin at the European level. It plays a strategic and founding role in water policy, setting ambitious objectives for the preservation and restoration of the condition of surface water (freshwater and coastal water) and for groundwater. The main objectives of the directive are: achieving, starting in 2015, a good condition for all of these P waters, which means a good ecological and chemical condition for surface water, as well as a good qualitative and quantitative condition for groundwater; adopting a combined approach of environmental quality P standards (Directive 2008/105/EC of December 16, 2008) through removal of hazardous substances and emission thresholds based on the best available techniques, using the approach that gives the highest standards; Water management

One of the guiding principles of this directive is the use of best available techniques (BAT) to prevent pollution of all kinds. Activities that require administrative authorization must meet the BAT standard established, reviewed, and updated by the European Commission, which publishes the conclusions in the “BREF” (best available techniques reference document). Monitoring requirements for facilities that may contaminate the soil and groundwater are provided. The IED also provides for the requirement to draw up a “base report” on the condition of the site before the installation is commissioned or before the first update of the authorization issued and for a redefinition of the requirement to restore the site upon cessation of activity. 1.7.2.2 European Directive (EU) 2015/2193 of November 25, 2015 regulates emissions from medium-sized combustion plants. It sets emissions thresholds for sulfur dioxide (SO 2 ), nitrogen oxides (NO x ) and dust into the atmosphere from combustion plants with a nominal thermal power greater than or equal to 1 MW and less than 50 MW, regardless of the type of fuel that they use. It also establishes rules to monitor carbon monoxide (CO) emissions. Operators must implement emissions monitoring in accordance with the requirements set out in Annex III to this directive and periodic measurements in particular. CO measurements are required for all facilities. European Regulation 517/2014 of April 16, 2014 (F-Gas) , which repealed Regulation 842/2006 on January 1, 2015, contains, prevents, and reduces emissions of fluorinated greenhouse gases referred to in the Kyoto Protocol. This regulation: discourages the use of fluorinated gases with a high impact on the P climate and encourages energy efficient and safe substitutes; continues to improve the containment and end-of-life treatment P of products and equipment containing fluorinated gases; promotes consensus on an international agreement under the P Montreal Protocol to gradually reduce HFCs, which are the main group of fluorinated gases; ensures that the European Union takes into account the latest P scientific results obtained at the international level, as recorded in the IPCC fourth assessment report, as regards in particular the substances covered by the regulation and their global warming potential (GWP). The regulation aims to reduce fluorinated greenhouse gas emissions in the European Union by two-thirds compared with their current level by 2030. Groupe Renault has reviewed these obligations and is taking the necessary measures to minimize the use of these substances and limit their discharge into the atmosphere. Air emissions management

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GROUPE RENAULT I UNIVERSAL REGISTRATION DOCUMENT 2019