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

OUR UNDERTAKING: MOBILIZE, FOR INCLUSION AND SUSTAINABLE MOBILITY

Methodological approach The materiality matrix was defined by management representatives from the Company’s main departments/functions, based on internal and external data. The first stage of the process was to define the comprehensive list of ESG issues to which Groupe Renault is faced as a carmaker and supplier of mobility services. Numerous sources were consulted to prepare this list, particularly the ESG rating criteria, competitors’ materiality matrices, press articles and interviews with experts. All of the issues collected were grouped into 14 coherent macro-issues. The importance of each issue along each axis of the matrix was then assessed. The y-axis represents the influence on stakeholders’ opinions or P behavior and classifies the issues according to the CSR expectations of Groupe Renault’s stakeholders. The importance of issues along this axis was determined from interviews with stakeholder representatives (employees, NGOs, suppliers, car dealerships, start-ups, researchers, public sector, investors) as well as a survey of 3,500 customers in seven countries in the five Regions where Groupe Renault operates. The x-axis illustrates the impact on the Company’s sustainable P performance and represents the contribution of each theme to long-term value creation. To assess the importance of each issue along this axis, internal interviews took place with the Group’s general management, employees in the main departments/functions and an internal survey with 200 of Groupe Renault’s top managers. The issues were then refined and placed on the materiality matrix during a collaborative workshop bringing together the representatives of Groupe Renault’s main departments/functions. As in 2015, Reducing the total carbon footprint and Reducing the impact of the use of vehicles on air quality are Groupe Renault’s top priorities. Internal and external stakeholders expect Groupe Renault to continue its efforts to reduce greenhouse gas emissions and air pollution due to road transport. They also assessed the impact of these two issues on Groupe Renault’s long-term sales performance as critical, notably due to tightened regulations and the decrease in the societal acceptability of vehicle emissions. Similarly, Improving passenger and road user safety and Limiting the impact on resources particularly through the circular economy remain two major stakeholder expectations, as well as being important issues to guarantee the Company’s performance. Some issues increased in importance in the 2020 materiality matrix. One of the main changes compared to 2015 concerns stakeholder expectations (particularly for investors and the public sector) on corporate governance. Guaranteeing robust governance was considered to be an essential prerequisite when undertaking any transformation of Groupe Renault and was, therefore, prioritized both in terms of stakeholder expectations and impact on Company performance.

In a context of changes in skill requirements (related to the electric vehicle, connected and autonomous technologies, etc.) and growing employee expectations in terms of the environment and working methods, Ensuring employee well-being and development is also a growing issue for Groupe Renault. In response to the on-going transformation of the mobility industry and the growing search for optimization of urban areas, the internal stakeholders expect the Contribution of Groupe Renault to the transformation of urban mobility to have a more significant impact on the Company’s performance than in 2015. Stakeholder expectations concerning Groupe Renault’s actions on Ensuring respect for human rights and work throughout the supply chain were also reinforced compared to 2015. Addressing the stakes: identification of the primary levers During discussions with internal and external stakeholders, Groupe Renault also collected proposals for levers to be prioritized in order to address each of the materiality matrix stakes. A selection of the levers that were indicated the most often throughout the materiality matrix update process is presented below. Implementing eco-design and circular economy processes in P vehicle life cycles : this lever was mentioned on several occasions by the internal and external stakeholders as being one of the most transversal, and therefore critical, levers, especially to address issues related to resource consumption and climate change. Groupe Renault already carries out numerous actions in this area. It is also a founding partner of the Ellen MacArthur Foundation that works with companies, universities and decision-makers. The Foundation promotes circular economic models, develops scientific and managerial knowledge required for their adoption and identifies the potential economic and environmental benefits (see 2.3.3). Innovating in the business model and collaborating with the P mobility ecosystem : this lever was also one of the most cited by the internal and external stakeholders. It will be an essential factor for addressing the challenges related to the transformation of urban mobility and climate change. Innovating in the mobility offering (for example including shared mobility solutions) by collaborating with the mobility ecosystem (public sector, mobility start-ups, suppliers, energy suppliers, etc.) is a lever that Groupe Renault has already activated thanks to initiatives such as the Rouen Normandy Autonomous Lab and the acquisition of mobility start-ups such as Karhoo and iCabbi (see 2.2.1.2.B). Developing alternatively powered vehicles and collaborating P with the electric vehicle ecosystem : the shift to alternatively powered vehicles was also one of the main levers indicated by the internal and external stakeholders to address the challenges of climate change and air quality. This lever has multiple aspects including technological innovation to improve life span and autonomy, ecosystem contribution (including recharging infrastructure, smart recharging, the shift of vehicles to the grid, etc.) and an increase in the share of alternative engine vehicles. Groupe Renault aims to produce eight electric vehicle models and electrify 50% of its vehicle range by 2022. It has also successfully created an integrated electric vehicle ecosystem on the island of Porto Santo, in partnership with three other companies. (see 2.2.1.2 and 2.3.3)

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GROUPE RENAULT I UNIVERSAL REGISTRATION DOCUMENT 2019