Global automotive supplier, Valeo has committed to achieving carbon neutrality by 2050 and claims that it achieve 45 percent of its objective by 2030.
Valeo said that by 2050, they will have achieved carbon neutrality for all of its own operating activities and across its entire supply chain worldwide and will be 100 percent carbon neutral (including the end use of its products) in Europe.
Jacques Aschenbroich, Valeo’s Chairman and Chief Executive Officer, said, “The entire automotive industry is investing heavily to combat global warming. At Valeo, the reduction of CO2 emissions has been central to our strategy since 2010, and sales generated from technologies that help to reduce CO2 emissions have grown 20-fold to around 10 billion euros in 2021. We intend to continue our efforts, with the aim of achieving carbon neutrality by 2050 and reaching nearly half of this objective by 2030.”
2030 is an important and fast-approaching milestone for the company. It targets decreasing emissions by 45 percent across its entire value chain by 2030– including emissions from its suppliers, its own operating activities and the end use of its products – compared with 2019. By then, Valeo is committed to reducing:
- Emissions related to its operating activities by 75%, from 1.1 million to 0.3 million metric tonne of CO2 (Scopes 1 and 2)
- Emissions related to its supply chain by 15%*, from 9.5 million to 8.1 million metric tonne of CO2 (upstream Scope 3)
- Emissions related to the end use of its products (Scope 3 downstream) by 15%, from 39 million to 33.1 million metric tonne of CO2. This reduction is expected to rise to 50% when taking into account emissions avoided thanks to the Group’s electrification technologies, with CO2 emissions declining from 39 million to 19.5 million tonne.
Additionally the company targets investing 400 million euro by 2030 for reducing emissions related to its operating activities (Scopes 1 and 2). These investments will be used to upgrade the Group’s sites to enable the current 100 most carbon-intensive facilities to become high-energy efficiency sites by 2030. A number of its sites are already piloting renewable energy alternatives, including three Group sites in Chennai (India), where 90 percent of consumption is wind-powered, Sanand (India) and Bad Rodach (Germany), which use their own solar energy facilities to produce 30% and 20% of the energy they consume, respectively.