Valeo is committed to achieving carbon neutrality by 2050 and has anticipated fulfilling 45% of its objective by 2030. Compared with 2019, Valeo, by 2030, will have its emissions decreased by 45% across its entire value chain including emissions from its suppliers, its own operating activities, and the end-use of its products. By 2050, Valeo will have achieved carbon neutrality for all of its operating activities and across its entire supply chain worldwide.
Valeo expects to be 100% carbon neutral, including the end-use of its products, in Europe. Valeo is also a signatory of the campaign called “Business Ambition for 1.5°C” that unites companies having a common aim of achieving carbon neutrality by 2050 using the strict framework of the Science-Based Targets initiative.
On the journey to carbon neutrality, 2030 is a critical and fast-approaching milestone. By then, Valeo is committed to reducing: emissions related to its operating activities by 75%*, from 1.1 million to 0.3 million metric tons of CO2 (Scopes 1 and 2). Emissions related to its supply chain by 15%*, from 9.5 million to 8.1 million metric tons of CO2 (upstream Scope 3), and emissions related to the end use of its products (Scope 3 downstream) by 15%*, from 39 million to 33.1 million metric tons of CO2. On taking into consideration emissions avoided, the reduction is expected to rise to 50%, thanks to the Group’s electrification technologies, with CO2 emissions declining from 39 million to 19.5 million metric tons.
Valeo’s Chairman and Chief Executive Officer, Jacques Aschenbroich, commented that the entire automotive industry is heavily investing to battle against global warming. Since 2010, the reduction of CO2 emissions has been at the core of Valeo’s strategy. Also, in 2021, sales generated from technologies that help to decrease CO2 emissions have grown 20-fold to around 10 billion euros. Valeo intends to continue its efforts, with the aim of achieving carbon neutrality by 2050 and fulfilling nearly half of this target by 2030.
By 2030, Valeo will have more than 400 million euros of investment done in reducing emissions related to its operating activities (Scopes 1 and 2). These investments will be directed towards upgrading the Group’s sites to enable the current 100 most carbon-intensive facilities to become high-energy efficiency sites by 2030. Upgrades will involve- development of eco-friendly buildings, the widespread use of LED lighting, and the integration of heat recovery systems.
By 2030, the proportion of low-carbon energy in the Group's energy consumption will supposedly increase from 5.5% to 80%, having already risen to 50% by 2025. A number of sites are already piloting renewable energy alternatives, including three Group sites in Chennai (India), where 90% of the consumption is wind-powered, and sites in Sanand (India) and Bad Rodach (Germany), which makes use of their own solar energy facilities to generate 30% and 20% of the energy they consume, respectively.
Valeo also has its CO2 emissions reduction objectives set for its suppliers, where the use of low-emission materials will be on a rise. At the same time, Valeo will continue expanding its portfolio of technologies that contribute to low-carbon mobility, in particular its solutions for vehicle electrification, a field in which the Group is currently the world leader. Over the past ten years, Valeo has made an investment of more than 10 billion euros in technologies that reduce CO2 emissions.
By 2030, 100 of #Valeo's most carbon-intensive facilities will have been completely transformed into highly energy-efficient sites. pic.twitter.com/o2qrfk4WGc
— Valeo Group (@Valeo_Group) February 4, 2021
In 2019, 57% of Valeo’s sales were generated by technologies that help to reduce CO2 emissions. Today, one out of every three vehicles worldwide is fitted with Valeo technology that helps in decreasing CO2 emissions. Valeo has also adopted an ambitious sustainable development policy, thereby lowering its consumption of water, energy, and packaging by 46%, 29%, and 32%* respectively.
Valeo has gained recognition for its comprehensive sustainable development (environmental, social, and governance) approach. On January 25, 2021, Valeo was ranked among the world’s 100 most sustainable listed corporations as the most sustainable company in the automotive sector by Corporate Knights. In 2020, Valeo was the highest-rated automotive supplier by non-financial rating agencies MSCI (AAA), CDP (A), Sustainalytics, and SAM (76/100). The Group has also successfully maintained its leadership position in the Dow Jones Sustainability (DJSI) World Index for the fifth year in a row.
This year onward, Valeo will take into consideration the reduction in CO2 emissions and sustainable development criteria when determining the variable compensation of more than 1,500 senior executives. For more details, visit https://www.valeo.com/en
