Groupe Renault - 2020 Universal Registration Document

161 GROUPE RENAULT I UNIVERSAL REGISTRATION DOCUMENT 2020 02 OUR ENVIRONMENTAL COMMITMENT GROUPE RENAULT GROUPE RENAULT: A COMPANY THAT ACTS RESPONSIBLY CORPORATE GOVERNANCE FINANCIAL STATEMENTS RENAULT AND ITS SHAREHOLDERS ANNUAL GENERAL MEETING OF RENAULT ON APRIL 23, 2021 ADDITIONAL INFORMATION Taking stakes linked to climate change into account Groupe Renault, aware of the environmental impact of its products, has long incorporated issues related to climate change in its strategic vision, with a view to social responsibility but also to economic performance and preservation of the company’s value over the medium and long term. The Group considers the recommendations of the Financial Stability Board’s Task-Force on Climate-related Financial Disclosures (TCFD) to be an appropriate frame of reference for communicating these issues to the various stakeholders in order to promote the transition to a low-carbon economy. In 2019, the Group decided to support this initiative. The following summary presents the Group’s progress in implementing these recommendations. It aims to supplement the cross-reference table presented in note 2.6.1.5. This table also refers to the Group’s responses to the CDP (formerly Carbon Disclosure Project ) "Climate Change" and "Water Security" questionnaires for which the frameworks have been aligned with the TCFD’s recommendations since 2018. The Group’s responses are public and may be accessed at www.cdp.net . The agreement signed in 2015 following the Paris Climate Conference (COP 21) and the national commitments published at the time were subjected to an in-depth analysis of their implications for the automotive industry as soon as they were announced. The associated opportunities and risks were presented to the Executive Committee (renamed the Board of Management in January 2021) for inclusion in the Group strategy and product plan. In 2015, the Board of Directors and its Committee studied Renault’s emissions strategy, the Group’s electrification strategy and the impact of new European regulations on emissions (WLTP, Worldwide harmonized Light vehicle Test Procedure). In 2019, the Group’s Board of Directors reinforced its governance of environmental issues still further by setting up the specialized Ethics and CSR Committee, with one of its tasks being to ensure a high level of commitment to extra-financial compliance, ethics and social and environmental responsibility, with a transversal vision covering all Company activities. The Group has clearly identified the risks and opportunities related to climate change as a major competitiveness topic for the company, and in particular : broadly, greenhouse gas emissions reduction targets defined in the context of the COP 21 agreement; risks and opportunities linked to the impact of the evolution of P regulatory and normative requirements related to environmental performance of vehicles and/or industrial processes and, more risks and opportunities related to the transition to a low-carbon P economy: risk of mismatch between the product/service offer and market expectations, risk of loss of competitiveness of certain products, but also opportunity to gain competitiveness on electric and electrified vehicles, opportunity to develop new electric and shared mobility services to support the transformation of uses, improve air quality and reduce congestion in cities; physical risks, which are less material for the Group: exposure of P sites to extreme weather events with potential negative consequences on industrial and logistical activities, supply and insurance premiums, in particular flooding (e.g. the French plants in Choisy-le-Roi and Flins, located near the Seine), hurricanes (e.g. the Busan plant in South Korea) and hailstorms (in particular the Santa Isabel plant in Cordoba, Argentina, the Valladolid plant in Spain, the Flins plant in France, the Revoz plant in Slovenia and the Pitesti plant in Romania). In the short term, meeting the regulatory targets for reducing CO 2 emissions from vehicles in Europe is a financial and reputational issue and therefore a priority objective for the Group. To meet this European CAFE objective, the Group has the following levers at its disposal: a pioneer position in electric vehicles: the Group can build on more P than 10 years’ experience in design, manufacture, sale and after sales, with 30,000 employees trained in the specific features of electric vehicles and a total of more than 400,000 electric vehicles sold. The Group has the most comprehensive range on the market with ZOE, TWINGO Z.E., KANGOO Z.E., MASTER Z.E. and Dacia SPRING, sold in numerous countries in Europe and elsewhere; an offer of hybrid and plug-in hybrid technologies, with E-TECH on P the CLIO, CAPTUR and MEGANE; a range of internal combustion engines equipped with the most P recent technologies. additional solutions based on alternative energies: an LPG P (Liquified Petroleum Gas) offering, or hydrogen fuel cells on light commercial vehicles. In 2018, the Group also created a specific Program team, "CAFE control tower", with the task of ensuring convergence with the next regulatory stages in terms of vehicle CO 2 emissions (monitoring of results and managing the 2020 and 2021 road map). For this, a tool for forecasting CO 2 levels for Group registered vehicles in Europe was rolled out in 2019. The CAFE control tower reports monthly to the Operations Review Committee, which is chaired by the Chief Executive Officer.