Groupe Renault - 2019 Universal Registration Document

02

ENVIRONMENT RENAULT: A RESPONSIBLE COMPANY

Resources and the circular economy  EFPD9   EFPD10   EFPD11b  B.

Status as of year-end 2019

Environmental objectives

Objective set

Deadline

Increase the technical and economic value of parts and materials preserved in the automotive sector through the circular economy activities of the Group and its Renault Environment subsidiary between 2016 and 2022, by €100 million, in particular: repair and refurbishment services and second-life use of electric vehicle P batteries use of recycled materials from end-of-life vehicles and production scraps in the P production of new vehicles use of refurbished parts to repair vehicles in the after-sales phase P Increase the Group’s overall consumption of recycled plastic (by weight) by 50% between 2013 and 2022 Reduce by 25% the quantity of non-recycled waste  (1) per vehicle produced on the Group’s manufacturing sites  (2) between 2013 and 2020, through: a 15% reduction in the quantity of hazardous waste per vehicle produced P between 2013 and 2020 a 30% reduction in the quantity of mixed non-hazardous waste per vehicle P produced between 2013 and 2020 50% “zero landfill” manufacturing sites  (3) by 2020 P

2017

2022

+€45.7M (4)

Product

Product

2016

2022 52 kt in 2019, or +20% (compared to 2013)

Manufacturing

2016 2016 2016 2016

2020 2020 2020 2020

-30.4% (compared to 2013) -15.2% (compared to 2013) -26.3% (compared to 2013) 50 %

Waste for which the processing network is designated by European processing codes D or R1 (energy recovery), excluding foundry and construction waste. (1) Excluding AVTOVAZ, in which Groupe Renault acquired a majority stake in December 2016, and which is currently being integrated into the environmental reporting scope. (2) Sites for which less than 1% of waste (excluding foundry and construction waste) is sent to landfill, either directly (as defined by European codes D1, D5, D12) or after (3)

stabilization treatment (sludge treated as defined by European code D9). The method used to calculate the indicator is presented in 2.6.1.1.C. (4)

Reducing the consumption of virgin materials is a key objective, both on an ecological and economic level. The extraction and processing of raw materials has negative impacts on ecosystems and reduce their availability for future generations. At the same time, the rising trend observed in raw material prices since the beginning of the century and their

Vehicle maintenance

Vehicle production

MATERIALS

Reused parts and renovated parts

Supply chain

End-of-life vehicles (ELV) and parts

Scraps

volatility affects the profitability of the business. The Group’s ability to factor issues related to the scarcity of resources into its strategy is based on circular economy principles, which include: eco-design standards for both vehicles and batteries, including P frugal use of scarce materials, incorporating recycled materials, preparing vehicles for dismantling and end-of-life recycling, and conducting raw materials criticality analyses (see section 1.6.1.2, paragraph "Risk of failure in supply of raw materials"); projects that aim to develop and implement new technical P solutions and industrial channels for collection, reuse, renovation and recycling of parts and materials, increasing the range of reused or re-manufactured parts on offer, second-life use and recycling of electrical vehicle batteries, and setting up recycling closed loops within the automotive sector; plans to improve the efficiency of industrial processes, in order to P optimize resource use and waste management. Groupe Renault also avoids using mineral resources from conflict zones (see 2.5.2 “Strengthening the responsible purchasing approach in the supply chain”).

Renovation or remanufacturing

Recyclers Foundries / converters

Dismanting

Recycled materials from ELV

Recycled materials (other industries)

Metals and plastics make up more than 85% of the materials in automobiles. In 2019, approximately 4.1 million metric tons of steel, 400,000 metric tons of cast iron, and 400,000 metric tons of aluminum were used to manufacture vehicles in the Group’s plants  (1)   and by its parts suppliers. These estimated figures include offcuts of sheet metal and metal shavings generated during supplier parts manufacturing processes and in the Group’s plants. In addition, Groupe Renault used about 490,000 metric tons of plastic materials, including offcuts, in vehicle manufacturing in 2019.

Among the materials used in the plants in the Europe and North Africa Regions (approximately two-thirds of the quantities above), it is estimated that the portion of recycled steel materials ranges from 15% for flat steel to up to 100% for steel bars and cast iron. The recycled materials rate for aluminum varies considerably according to the processes used to manufacture the parts: it is close to 100% for aluminum foundries and has been increased to nearly 40% for pressed aluminum parts manufactured internally. The mass of recycled plastic averaged 16.9kg per vehicle in 2019. Excluding AVTOVAZ, in which Groupe Renault acquired a majority stake at the end of December 2016, and which is currently being (1) consolidated into the environmental reporting scope.

174 GROUPE RENAULT I UNIVERSAL REGISTRATION DOCUMENT 2019

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