Groupe Renault - 2020 Universal Registration Document

GROUPE RENAULT: A COMPANY THAT ACTS RESPONSIBLY

ANNUAL GENERAL MEETING OF RENAULT ON APRIL 23, 2021

CORPORATE GOVERNANCE

FINANCIAL STATEMENTS

RENAULT AND ITS SHAREHOLDERS

ADDITIONAL INFORMATION

GROUPE RENAULT

OUR ENVIRONMENTAL COMMITMENT

eco-driving training, see the section on “Eco-driving” under section 2.2.3.A) and to prolong vehicle life at a competitive price by offering an economical option for refurbished parts of guaranteed quality (see the section on “Re-use” under section 2.2.3.B). Through these tools and services Renault is not only aiming to reduce its environmental footprint, it is also working to increase customer loyalty.

Products and services that fulfill market expectations Vehicle development is governed by constant changes in regulations, particularly as regards CO 2 and pollutant emissions. In addition, there is increasing societal concern about the urgency of combating climate change, and about the health effects of products and industrial processes. These concerns can have a significant effect on market structure. The decline in the share of diesel engines in the sales mix is one example of this. In this context, the Group is drawing up prospective scenarios in order to ensure that its products and services fulfill market expectations, based on: the collection of data on public policy by a global network of P correspondents, including regulations, tax and road rules; external partnerships ( e.g. specialist bodies, NGOs) to anticipate P changes in stakeholder expectations (including customers, users and territories); carrying out studies to map local and national initiatives, and to P analyze the potential impacts on the automotive market and the mobility market as a whole. These structural changes are taken into account in the Group strategy and incorporated in the strategic plan both as opportunities and competitiveness drivers. They include the electrification of internal combustion engines, the ecosystem of electric vehicles and batteries, and new mobility services. Fuel consumption is one of the 10 main reasons for buyers to choose a Renault vehicle, according to surveys conducted of customers on Renault’s main markets. Renault’s determination to reduce its vehicles’ fuel consumption and CO 2 emissions in use means that it is able to offer one of the passenger car ranges with the lowest emissions in Europe (see section 2.2.3.A), which gives it a significant competitive advantage. In addition, Renault is developing new tools and services that enable customers to limit their fuel consumption (embedded tools and

02

New business areas

Working to find ways to both reduce environmental impacts and optimize the Group’s economic resources has led Renault to explore areas which complement its core business, which has opened up new business opportunities, as demonstrated by the Re-Factory project announced at the end of 2020 (see box below).

Although the Choisy plant, which specializes in the renovation of powertrain parts, has been in operation for nearly 70 years, the creation of the Renault Environnement subsidiary in 2008 reflects this momentum. Through its subsidiaries, Renault Environnement works in the following areas: recycling of end-of-life vehicles (Indra, joint-venture with Suez); P industrial waste management for plants (Boone Comenor P Metalimpex, joint-venture with Suez); recovering parts and materials through recycling networks, P repairing or refurbishing batteries from electric vehicles and selling of refurbished parts (Gaïa). In 2020, these three activities of Renault Environnement (described in greater detail in 2.2.3.B “Resources and the circular economy”) generated revenues of €454 million. Each of these activities had a net positive result in 2020, despite the challenges related to the health crisis.. Furthermore, standard exchange parts (described in 2.2.3.B) generated revenues of €106 million in 2020.

RE-FACTORY, the first European circular economy plant dedicated to mobility In November 2020, Groupe Renault announced the creation of the RE-FACTORY on its site in Flins. This project is part of the Group’s transformation strategy, and builds on its pioneering commitment to the circular economy. It aims to develop a competitive industrial model for sustainable mobility, based on the value-creation potential generated by a vehicle throughout its life. Rolled out between 2021 and 2024, the RE-FACTORY will draw on a large network of multi-sector partners (start-ups, academics, major groups, local authorities, etc .) and will be structured around four areas of activity, whose expertise will support the vehicle throughout its life. RE-TROFIT: this division will combine all the activities making it possible to extend the life of vehicles and their uses, in coordination with the Re-Cycle division, to ensure efficient management of the flow of used parts and materials within the company on a single site. It will include a used vehicle factory for the reconditioning of used vehicles, a retrofit activity for the conversion of internal combustion engine vehicles to other less carbon-intensive energies, repair services for vehicle fleets and new mobility solutions, as well as a manufacturing service for scarce parts using 3D printers. It will also rely on a vehicle and material sustainability testing and prototyping center to enrich the design of future vehicles and propose improvements during use.

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GROUPE RENAULT I UNIVERSAL REGISTRATION DOCUMENT 2020