When suppliers become partners in our decarbonisation journey
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Article summary
While raw material supplies and components accounted for an average of 17% of the carbon footprint of Renault Group vehicles sold in 2024, the commitment of procurement teams and suppliers is key to reducing greenhouse gas emissions and ensuring sustainable value creation. Anthony Plouvier, Chief Procurement Officer, explains how our responsible purchasing policy contributes to the Group’s decarbonisation objectives.
From selecting ESG-leading suppliers to sourcing raw materials and designing vehicles, discover how our suppliers contribute to our environmental performance.
Key takeaways:
- Renault Group places its suppliers at the heart of its decarbonisation and sustainability approach, treating them as true partners in achieving its environmental goals.
- The Group’s responsible purchasing policy is based on selecting ESG-leading suppliers, eco-design of vehicles in partnership with suppliers, promoting the circular economy and a more sustainable sourcing of electric batteries
- Ambitions are set for 2030, including allocating over 90% of budgets to high-ESG-score suppliers, reducing supplier CO₂ emissions by 30% for raw materials and components, integrating more than 30% circular economy materials into each vehicle project.
As part of our futuREady strategic plan, operational excellence goes hand in handwith environmental excellence , a key driver of competitiveness. At Renault Group, we have reaffirmed our ambition to reach Net Zero carbon emissions in Europe by 2040 and worldwide by 2050.
“Our responsible purchasing policy is a key lever for creating sustainable value for Renault Group, and it cannot contribute to reducing our carbon footprint without the commitment of our suppliers.”
Our responsible purchasing policy goes beyond stringent supplier selection and high collaboration standards. It also covers multiple areas such as eco-design, circular economy, and battery production. With one constant objective: making sustainability a continuous improvement discipline, where suppliers are fully engaged partners in our performance — including environmental performance. Anthony Plouvier discusses the various levers driving our responsible purchasing approach.
Responsible purchasing policy: which ambitions by 2030 ?
- More than 90% of budgets allocated to suppliers with a high ESG score
- On-site visits and audits of high-risk tier-1 suppliers and battery supply sites by 2030
- 30% reduction in supplier CO₂ emissions for raw materials and components
- Over 30% circular economy materials per vehicle project
Sharing a common framework and high ESG standards with suppliers
Our responsible purchasing policy is first and foremost based on evaluating suppliers against ESG criteria during the selection process.
“Responsibility and sustainability criteria carry as much weight as performance and quality in our supplier choices. A low ESG score is now a deal breaker.”
Supplier relationships are built on shared principles across the value chain, supporting continuous improvement in both the supply chain and product manufacturing. These expectations are defined in core reference documents , particularly regarding CO₂ emission reduction.
These standards are verified: suppliers must provide visibility on their climate trajectory and disclose their carbon footprint using the Carbon Disclosure Project Supply Chain methodology. We encourage our suppliers to set emission reduction pathways, and, where relevant, to have them validated by the SBTi (Science-Based Targets initiative). Renault Group has achieved an A- score in the CDP Supplier Engagement Rating.
Decarbonisation starts as early as the tendering phase at Renault Group. This is especially true in seven areas* representing 90% of emissions from material production in a vehicle. For these areas, since September 2024, suppliers must disclose the carbon footprint of components, and propose improvement solutions – for both direct and indirect emissions (Scopes 1, 2, and 3 of the GHG Protocol). Then, suppliers complete a document developed in collaboration with the automotive platform (French automotive sector).
Without these prerequisites, we cannot support suppliers in their decarbonisation journey. Beyond that, Renault Group works with suppliers on four shared commitments: human rights, health, safety, and the environment.
* batteries, steel, aluminum, polymers, tyres, electronic components, and glass.
Integrating suppliers early in vehicle design to reduce carbon footprint
Our suppliers do not only contribute during tendering: they are directly involved in vehicle design.
This approach is part of the fourth pillar of the futuREady plan, which aims to transform supplier relationships. As partners, suppliers contribute to product development, innovation and strengthen the transparency of the value chain. Since 2017, carbon footprint targets have been defined for each new vehicle project from the design phase onward.
“In practical terms, suppliers are involved earlier in product and project development phases, enabling them to propose solutions. Renault Group’s Procurement function works closely with design teams to identify the most effective levers available through suppliers to meet vehicle decarbonisation targets.”
Leveraging the circular economy to reduce material carbon footprint
Materials represent between 10% and 40% of a vehicle’s carbon footprint, depending on the powertrain. To reduce the environmental impact of our vehicles, Renault Group applies several approaches:
- more frugal use of rare materials
- increased use of recycled or bio-based materials
- anticipating end-of-life dismantling and recycling.
The Group leverages circular economy solutions through subsidiaries such as The Future Is NEUTRAL, Indra and GAIA, and through dedicated partnerships for the supply of specific raw materials. Several partnerships with aluminium product manufacturers enable the reuse of aluminium scrap from our stamping plants for the production of vehicle body components, such as those found in the Mégane E-Tech Electric. They also allow for the reuse of aluminum from end-of-life vehicles or of body parts from repair networks thanks to our specialized entities.
Renault Group’s raw materials policies
- Policy on the sourcing of cobalt and minerals from conflict or high-risk areas (2019)
- Commitments on the sourcing of sustainable natural rubber (2022)
- Commitment to a global moratorium – supported by NGOs, scientists and companies – on deep-sea mining until it has been scientifically proven that it can be done sustainably (2022)
Accelerating electric battery decarbonisation with partners
Battery production accounts for around one-third of an electric vehicle’s total carbon footprint, due to energy use and raw material extraction (cobalt, nickel, lithium).
The Group has therefore intensified efforts to reduce battery carbon footprint and to guarantee a more sustainable sourcing through partnerships. Target: reduce battery carbon footprint by 35% between 2019 and 2030.
Since 2021, Renault Group has secured partnerships to build a more sustainable battery value chain for our electric vehicles, including:
- Verkor – a long-term commercial partnership.
- AESC – gigafactory in Douai to make high-technology batteries, cost-efficient.
- Arverne – low-carbon lithium supply.
