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

Collect, sort, dismantle, direct

Re-use

MATERIALS Collection is an essential step in the recycling of end-of-life (ELV) products. In addition to its regulatory obligations (see section 2.2.2.B), Renault has chosen to invest directly in the collection and processing networks for end-of-life vehicles in France (45% of the Group’s European end-of-life vehicles are located here due to Renault’s long-term establishment in the country), in order to retain economic and technical control of material flows. Thus, in 2008 the Renault Environnement subsidiary committed itself, along with the Suez Group, by taking a 50% stake in Indra. Indra has been active in automotive dismantling for over 30 years, and is involved in all levels of automobile dismantling, through four complementary activity clusters: engineering: Indra designs, develops, produces and markets P innovative tools, equipment and processes (refined and tested at their own dismantling site in Romorantin) that deal with pollution removal, dismantling and recycling of ELVs. These tools and methods are intended to be widely distributed to all of Indra’s dismantling network through training programs that the Company develops and provides (291 people were trained in 2020); management-distribution of end-of-life vehicles for carmakers, P insurers, governments, and even individuals through its 366 authorized ELV centers; dismantling/recycling in its own dismantling centers; P marketing of refurbished parts under warranty: through its P network, Indra distributes certified, reusable parts dismantled at its sites. According to data available at the date of publication, more than 500,000 end-of-life vehicles were processed in 2019 by Indra’s network of authorized dismantlers or by its own dismantling sites, of which more than 25,000 via the goodbye-car.com website, which, since 2014, has offered a “turnkey” ELV collection service aimed at retail customers. The Gaïa subsidiary collects unused parts in the sales network as well as at the plants and suppliers’ sorts them and, depending on their condition, resells them or sends them to the most appropriate recycling system. Renault has invested in these activities in order to meet a three-pronged goal: to meet Renault’s regulatory requirements concerning ELV P collection and processing in France; to improve the technical and economic performance of the P network, thereby achieving the European goal of a cost-efficient 95% vehicle recycling and recovery rate, through the development of new dismantling tools and processes for ELVs, and supporting and training its automotive dismantling network; to feed recycling closed loops (see “Recycling” section below) in P order to reduce dependence on and consumption of virgin raw materials.

In addition to the marketing of unused parts by its Gaïa subsidiary (see above), since 2012, the Renault sales network in France has offered used body parts (including hoods, wings, headlamp units, etc .) collec ted and selected from Indra’s network of dismantlers. To facilitate access to refurbished parts, Indra has also developed the

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MATERIALS

PRECIS system, in partnership with Sidexa. This was put into service in France in April 2014, and enables a pooled inventory of premium quality refurbished parts for repairers to be created, fed by the Indra network ELV centers. When pricing the repairs to be carried out on vehicles, repairers are automatically informed by the PRECIS module of Sidexa’s Pacte Office software (market leader in calculation software) of the existence of refurbished parts available in the pooled inventory, thus reducing the repair cost while retaining the same level of guarantees. This offer, unique amongst European carmakers, allows the repair of vehicles for which repair would not otherwise have been economically viable using new parts alone, thus extending the vehicle life while very significantly reducing the environmental footprint associated with the repairs. Revenue generated through the PRECIS system amounted to €5.9 million in 2020, up around 7% compared to 2019, despite the penalizing impact of the health crisis on this activity (lockdown). Nevertheless, there is significant potential for growth in this activity, linked on the one hand to the still low penetration of used parts in the repair market and on the other, to the law on energy transition for green growth, adopted in France in August 2015, which requires repairers to offer repairs with used parts since January 2017. Re-manufacturing For more than 70 years, Renault has practiced re-manufacturing i.e. , the refurbishment of mechanical parts. Used parts are collected in the sales network, sorted and refurbished. Since 1949, the renovation of engines and manual gearboxes has been carried out at the Choisy-le-Roi (France) plant. This activity adheres to a strict industrial process: involving complete dismantling, cleaning, sorting, refurbishment and replacement of faulty or worn parts, re-assembly and inspection. These renovated (“RENAULT STANDARD EXCHANGE”) parts are sold to Renault and Dacia vehicle owners at a price that is, on average, 40% lower than that of a new part, while satisfying the same quality requirements. Far from being marginal, the standard exchange parts offering covers nearly 70% of the Group’s powertrain parts and up to 50% of ground contact parts and is regularly extended to cover new parts categories. MATERIALS

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GROUPE RENAULT I UNIVERSAL REGISTRATION DOCUMENT 2020