Faurecia’s vision and strategy for CO2 Neutrality
Acting now for future generations
Environmental challenges, including climate change, pose an ever greater risk to Humanity and to the health of our planet. We are all experiencing the disruptive impact of global warming, and this will become more extreme if we do not act today.
At Faurecia we believe that companies should make a positive contribution to society. When it comes to the environment, that means working towards the Paris Agreement’s aim to limit the increase in global warming to 1.5°C. Significantly reducing CO2 and other greenhouse gas emissions is essential to reaching this aim, and governments, companies, and civil society organizations must act together, now.
As such, in line with our Convictions and Values, we have engaged in a plan to converge to CO2 neutrality towards 2050 at the latest. This journey has two key milestones – CO2 neutrality in operations by 2025 and halved footprint for controlled emissions by 2030 – and two streams: operations and design. While ambitious, we have developed a roadmap based on rigorous and conclusive scientific facts which has been approved by the Science-Based Targets initiative (SBTi).
This is our company’s longest-running strategic objective, and it will touch on all aspects of our operations and business. Through this program, we want to both reduce our environmental impact and create long-term value across our entire supply chain.
Our plan is ambitious but realistic. To achieve it, we have mobilized all the resources of Faurecia, together with our ecosystem of partners and the entire value chain, in particular our suppliers and our customers. We want to be a leader in this transformation, we want our industry to change. We will collectively act for that, today and every day.
An ambitious roadmap with two key milestones
In 2020, our CO2 footprint went to 7.8 M tons within the area controlled by the Group. Purchased goods and services, upstream and downstream transportation, and purchase of electricity constituted the majority of our controlled emissions. Steel and plastics on their own represent 50% of our CO2 emissions.
In 2025 we will be CO2 neutral in our internal emissions: this includes direct emissions from our controlled facilities, and indirect emissions from energy procured. These are known as scopes 1 and 2 respectively.
To that end, in 2020 we built a first partnership with Schneider Electric, a leader in digital transformation of energy management and automation, to accelerate CO2 neutrality in our direct and indirect emissions (scopes 1 and 2).
In 2021, we have also selected Engie to become our long-term partner to support us in this journey, enabling a 15% reduction of energy consumption, through energy saving solutions deployed across more than 100 of our sites worldwide.
Early 2022, we have contracted Engie and Energias de Portugal to install solar panels in 150 plants and 22 countries for a capacity of 100 MWp, leading to an expected electricity self-production of more than 7%.
By 2030 we will converge towards CO2 neutrality (-46%) for all our controlled emissions (scope 3 excluding the CO2 emissions associated with the use phase of our products). This includes both upstream emissions (such as purchase of materials and services and embedded emissions in our buildings and equipment) and downstream emissions (waste disposal and transportation for example).
For all scopes we aim to reach net zero by 2050 at the latest, including for the cars we equip...
Guiding principles: use less, use better and use longer
Three principles shape our approach to CO2 neutrality: using less, using better and using longer. These principles will guide our approach across two streams: operations and product design. Our ambition requires us to critically evaluate and rethink how we design, manufacture, distribute and dispose of our products. We will need to gradually move away from a “take, make and waste” paradigm in favor of a circular economy.
In scopes 1 and 2, this involves considering ways to reduce energy consumption, and using renewable energy procured through Power Purchasing Agreements adding to existing local capacities, where the market allows.
In scope 3, initiatives to use less are being developed further, notably through lean architecture. Product revolution is based on innovation in materials (green steel, as well as increasing the share of recycled, bio-based and sequestration-based plastics and foam) and adapting industrial practices to reduce energy consumption and material waste.
All Business Groups are involved in efforts to reduce to reach CO2 neutrality; Interiors’ and Seating’s sustainability innovation tracks have the potential to make significant inroads in our use of steel and plastics, two of our biggest emitters.
Faurecia Interiors aims to reduce the CO2 footprint of new materials used by 87% between now and 2030 by developing new products lines, as well as building on two existing product families. First launched in 2011, new generations of the NAFILean ® family, which incorporates natural fibers in interiors components, offer significant reductions in weight (up to 41%) and CO2 emissions (up to 108% - effectively rendering the product CO2 negative). Faurecia Interiors also develops the natural fiber NFPP family, suited to compression technology. These enable up to 50% weight reduction, and with up to 45% bio-based and 50% recycled content can halve the CO2 emissions associated with these products.
Faurecia Seating’s innovation for sustainability addresses materials, design, and operations for all seat components: frame, foam, covers, and accessories including headrests and armrests. The “Seat for the Planet” innovation track goes beyond current industry and customer specifications and targets, offering a full range of sustainable seat components available on the market and ready for production as soon as 2023.
CO2 neutrality driving business opportunities
As well as the environmental imperative to reach CO2 neutrality, this transformational objective has benefits for our business, and presents new opportunities to create value and develop a competitive advantage.
Working towards CO2 neutrality across our operations will generate significant savings in energy and materials. In order to reach CO2 neutrality in our internal emissions (energy procured and consumed) we will both purchase decarbonated energy and consider opportunities to generate our own electricity from renewable sources, bolstering our resilience.
Developing new circular business models will not only lower CO2 emissions but grow and diversify our revenue streams, creating jobs and attracting investors and new talents.
Our objective for CO2 neutrality is to lead our value chain (suppliers and customers) ahead of our competitors. We are working in partnership with most advanced actors within our ecosystem to make sustainability an inspiring reality.