Plastic Omnium // 2021 Universal Registration Document
NON-FINANCIAL REPORTING DISCLOSURE The risk management and non-financial reporting of the Group
RISK OF NATURAL/CLIMATE DISASTERS 4.3.3.2 (NON-ADAPTATION TO CLIMATE CHANGE) Risk description The consequences of climate change direct or indirect, numerous extreme weather events, temperature disruption, rising water levels, scarcity of water resources. As an industrial Group, with a global geographic footprint, Plastic Omnium could be impacted by these consequences: interruption of supplies or production due to natural disasters or the scarcity of resources. Certain regions of the world where the Group operates are exposed to exceptional weather events that could slow down, interrupt certain activities or make them more expensive. However, this risk is strongly linked to the geographic location and does not unfold simultaneously on all sites. The impact would therefore be limited and other sites could take over if a site was unavailable. However, this risk must be considered across the entire automotive sector value chain. Policies and procedures Plastic Omnium takes precautionary measures to avoid the local impacts of climate change. The Group’s sites are subject to audits carried out by insurers that take into account the natural disaster dimension to assess their risks of exposure to natural phenomena that could cause damage to them. These audits are the subject of recommendations followed up, where necessary, by the implementation of an action plan monitored monthly by the HSE teams. Performance The insurance company (property and casualty policy) carried out 89 site visits and the potential risk was revised downwards. To meet the growing challenges of mobility (travel by individuals, global value chain, etc.) while limiting the impact on the environment (management of raw materials, air quality, greenhouse gas emissions, etc.), the development of a circular economy model is key. Plastic Omnium’s two main business lines are based on transforming plastic and composite materials into parts for the automotive industry. Depending on the part to be manufactured and the technical properties and desired esthetics, different types of materials are used. In order to reduce the environmental footprint of manufactured parts and limit the consumption of resources, the Group wants to develop a circular economy. Since 2015, European regulations related to vehicles at their end-of-life (ELV) have required the reuse and recovery of these vehicles to be 95% by average weight per vehicle and per year, with a reuse and recycling rate of at least 85%. This Directive No. 2000/53/EC of September 18, 2000 is expected to be revised in 2022 and car manufacturers are expecting in particular a requirement to include many more recycled materials in new vehicles than at present. Automotive suppliers, notably for plastic parts, such as Plastic Omnium, are therefore being asked in particular to work on the integration of recycled raw materials into their parts. RISK RELATED TO ECO-DESIGN 4.3.3.3 AND RECYCLABILITY Risk description
The next version of the directive on end-of-life vehicles is expected to introduce an obligation to report the carbon footprint of vehicles. Car manufacturers are beginning to anticipate these regulations, even if the approach is not yet standardized. They increasingly the carbon balance is life cycle assessment during the project consultation phase and as part of a global analysis of the life cycle of their products. Eco-design depends on the availability of innovative techniques and materials, criteria for adapting to these innovations, internal tests and validation, and the ability of material suppliers to meet the industrialization needs of new products. Developing an eco-designed system or module for a new vehicle may take two to three years in total. It is therefore strategic to anticipate market expectations in this area in order to preserve the Group’s leadership in innovation. Policies and procedures To continue its trajectory and ensure its long-term sustainability, Plastic Omnium has incorporated these major trends into its corporate strategy. Thus, the analysis of a vehicle according to the CASE model (Connected, Autonomous, Shared, Electrified) and the contribution of each of the business lines to these four components guide the Group’s strategy, whose ambition is to act to achieve sustainable mobility. Plant 4.0, whose industrial performance will be heightened, will have less impact on the environment: predictive maintenance, automation and optimized quality will reduce consumption of energy and materials, as well as waste production. From the design stage, and at every stage in the product life cycle, Plastic Omnium teams strive to limit the environmental impact of these products as much as possible. By applying the eco-design principles and adopting an overall product vision, Plastic Omnium implements and tests solutions to limit the consumption of raw materials and energy, and the impact of end-of-life products (through recyclability and energy recovery). Eco-design Intelligent Exterior Systems participates in the MCIPCI project (Innovative Materials and Design for Intelligent Body Panels) with the PFA (Platform for the Automotive Industry). The objective of this project, which began in 2020, is to develop the next generation of bumpers. It is carried out with ARAYMOND (specialist in the intelligent fixing of sensors and radars) and CETIM in order to use an eco-design approach to the “smart face” product, integrating numerous criteria: fewer materials, logistics optimization, product end-of-life, use of materials with a lower environmental impact, increase in recyclability and reparability, use of more ecological processes. In 2021, the project continued by developing several impact scenarios (logistics modification, parts cutting, raw materials used, etc.) on a typical bumper using the simplified life cycle analysis (LCA) tool. Smart face 2, an innovative Plastic Omnium product, was analyzed this year using the best scenarios identified for this product in order to achieve, or even exceed, the results obtained for the standard bumper. The priority for Plastic Omnium is to develop scenarios to reduce the environmental footprint by 3% to 4% per year on mass market sold products. Life cycle analyses Life cycle analyses are becoming key tools for understanding these impacts, from their design (extraction of raw materials) to their end-of-life (management of used vehicles and parts) and thus contribute to a more circular economy.
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PLASTIC OMNIUM UNIVERSAL REGISTRATION DOCUMENT 2021
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