PARIS – As the environmental impact of businesses becomes an increasingly important metric for investors and analysts, Valeo has pledged to become carbon-neutral in its operations by the year 2050, joining other companies such as Daimler, General Motors, and Robert Bosch that have made similar commitments. This comes when the automotive industry is increasingly focused on reducing emissions.
At an online event on Thursday, company executives announced that the supplier would invest 400 million euros ($480 million) in meeting its carbon targets. These savings would be implemented throughout the value chain, including Valeo’s operations, the operations of its suppliers, and the disposal of the company’s products.
According to a statement released by the company’s CEO, Jacques Aschenbroich, “the entire automobile sector is investing extensively to battle global warming.” Since 2010, lowering our overall carbon footprint has been a primary focus of our business strategy.
From an annual revenue of 500 million Euros in 2009, he predicted that Valeo’s sales of emission-reducing products would increase to more than 10 billion Euros in 2021.
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Valeo’s offerings in this automotive industry sector include products such as alternator-starters and starters that enable “start-stop” features. It collaborates with Siemens on producing electric motors and integrating electric powertrains through a joint venture.
During the online event, Geoffrey Bouquot, director of research and development and strategy for Valeo, stated that the company will reach 45 percent of its aim by 2030.
The director of public affairs and sustainable development at Valeo, Jean-Luc di Paola-Galloni, stated that the supplier intends to take a regional strategy to reduce emissions at its operations. For example, manufacturing facilities in China will cut their yearly carbon emissions by 1,500 metric tonnes. In comparison, those in the United States will lower their emissions by 1,000 tonnes, those in eastern Europe will cut by 1,250 tonnes, and those in western Europe will cut by 500 tonnes.
In 2019, only 5.5 percent of Valeo’s energy to run its operations came from renewable sources like wind and solar. However, Di Paola-Galloni says that the number will rise to 80 percent by 2030.
Other objectives of Valeo include achieving the following:
- LED lighting and heat-recovery systems are only two examples of the technology that could be used to make the company’s 100 operations with the highest emissions intensity into highly efficient sites.
- From its current level of 5.5 percent in 2019, the energy generated from sustainable sources should be increased to 80 percent by 2030.
- More than 1,500 top executives will have their variable compensation determined beginning in 2021 based on factors that include the reduction of emissions and promoting sustainable development.
Valeo is ranked number ten among the top 100 global suppliers compiled by Automotive News Europe. The company reported global sales of automobile parts of $18.05 billion in 2019.