Groupe Renault - 2019 Universal Registration Document

02

ETHICS AND GOVERNANCE RENAULT: A RESPONSIBLE COMPANY

Professional whistle-blowing  DV4  2.5.2.6. See section 2.1.6, “Professional whistle-blowing.”

System for monitoring the measures implemented and evaluating their effectiveness  DV5b  2.5.2.7 Groupe Renault traditionally measures the CSR performance of its suppliers through two main criteria: the percentage of the volume of parts, services & equipment purchased that are the subject to CSR evaluation; P the percentage of the volume of “CSR evaluated” parts, services and equipment purchased for which the CSR score reflects a high or very high P performance. In 2019, the CSR performance of Groupe Renault’s suppliers was as follows:

Total 2019

Parts 87.5% 77.1%

Services

Total 2018

Rate of direct Purchase Amount covered by a CSR assessment*

66.8% 63.2%

82% 67%

84.1% 74.8%

Rate of direct Purchase Amount covered with a high grade CSR assessment* CSR assessment*: performed by a third-party organism, less than 3 years ago

In 2018, a new indicator was set up to record the number of tier-1 supplier sites audited (see 2.4.2.4).

Specific work on the cobalt/electric

A local integration strategy  EFPD14a  2.5.2.9 Local integration is a major element of Groupe Renault’s purchasing policy because it can improve the Group’s competitiveness, reduce its exposure to monetary fluctuations and contribute to the development of the regions where it is located. A local approach has numerous advantages leading to the reduction of costs. Thus, the local purchasing of parts can reduce transport and customs costs. This proximity also enables the Company to be more responsive, to adapt more quickly to changes in demand from its customers and to participate in local development and notably the local employment pool. To promote local integration, Groupe Renault has created dedicated teams, firstly in Russia, then in Brazil and India. These teams, from purchasing, engineering, sales costs and logistics, launch local calls for tenders to purchase parts that until then were imported. The localization rate is intrinsically connected with local regulations, currency exchange rates, the Group’s industrial activity (launching of new projects) and may vary on a year-to-year basis. Thus, in 2019, the localization rate remained stable in Brazil or in China, but increased considerably in India and in Russia (+3% country average).

2.5.2.8

battery sector Mapping of minerals and materials risks

Groupe Renault is particularly vigilant as regards to the origin of certain minerals and materials, for which risk mapping is also carried out. In the light of Groupe Renault’s commitment to human rights and fundamental freedoms, and particularly the fight against child labor in its supply chains of minerals and materials from high-risk countries, Groupe Renault works in priority since 2017 with the cobalt sector, as this mineral is used in electric batteries. In 2018, the Group selected a specialist audit firm in this sector to fully map its supply chain and perform on-site audits for the identified stakeholders. Specific actions to mitigate risks and prevent claims In 2019 this specialist firm carried out 17 site audits for certain suppliers and subcontractors in the cobalt supply chain. Audits were conducted at each level of the supply chain, starting with cathode suppliers and even down to some small-scale mines in the Democratic Republic of the Congo (DRC). No critical cases of non-compliance were identified, and corrective action plans are being implemented. Renault is a member of the Responsible Mineral Initiative (RMI). The RMI’s objective is to strive to implement a responsible supply chain for minerals and materials originating from conflict zones or high-risk areas. RMI brings together the major players of the electronics and automotive industries. It meets monthly and the minutes of these meetings are sent to all of its members. In 2019, cobalt has been once again our main priority throughout this initiative.

228 GROUPE RENAULT I UNIVERSAL REGISTRATION DOCUMENT 2019

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