The Group uses an internal carbon pricing (ICP) mechanism to drive the reduction in its CO2e emissions and internalize the economic cost of its greenhouse gas emissions. This internal price depends on the scope being considered:
Moreover, in the company's internal process, life cycle assessments (LCA) or carbon assessments are carried out regularly to evaluate the GHG emissions of vehicles and decide between different strategic or technological options for a region or model. These include comparative LCAs of batteries, comparisons of powertrain technologies (electric, plug-in hybrid, hydrogen, LPG, NGV and biogas) and assessing the environmental benefits brought by the circular economy. The prevailing logic in these evaluations is that only those vehicles or services offering mobility with the lowest possible carbon footprint will be successful in the marketplace or be favored by regulations or taxation.
The Group has set up a comprehensive risk management system for its entire supply chain, from design and development to production, logistics and quality, as well as economic and financial sustainability. Managing supply chain risks, which include physical climate risks, hinges on the coordinated action of several departments (supplier risk management and control and a network of financial analysts), which work closely with operational purchasing managers in the Alliance Purchasing Organization and with other potentially impacted departments (such as engineering, manufacturing and the supply chain).