Climate Report April 2021

To meet the TCFD’s recommendations on climate-related financial disclosures, a working group was created in 2020. Its members represent the various Group departments with strategic added value for the climate project: they include the Head of Risk Management, the Head of Financial Communications, the Strategic Environmental Planning department, and several technical experts. The Climate working group identified the risks related to climate change (including transition and physical risks), built scenarios, assessed the impacts of each risk on Group performance under each scenario and developed action plans.

Its work contributed to Renault’s new strategic plan and informed the mapping of the Group’s major risks. Transition and physical climate risks were identified as triggering factors of several other risks, such as those described in the Universal registration document 2020 (section 1.5.2).

The working group’s publications were also taken into account in producing the risk analysis presented in the Extra-Financial Performance Declaration. This analysis points to climate change, including the impact of changing regulations and standards governing the environmental performance of vehicles, the risks arising from the transition to a
low-carbon economy and physical risks as the main risks affecting extra-financial performance.

At the end of 2019 and the beginning of 2020, Renault Group conducted a materiality analysis to identify and prioritize the environmental, social, societal and governance (ESG) issues it will face over the next five years. This analysis consists of comparing an internal ranking of ESG issues with an evaluation of their importance by external stakeholders, in order to identify “material” topics, which are those that will have a major impact on the Group’s ecosystem and its performance over the period under consideration and on which efforts must be focused.

This new materiality matrix updates the 2015 matrix and enables Renault Group to focus its strategy and environmental, social, societal and governance initiatives. Spearheaded by the CSR department, a cross-functional steering committee supervised the methodological approach and the key stages of the project. The new matrix was validated by the Group Executive Committee (now the Board of Management) and by Jean-Dominique Senard.

As in 2015, “Reducing the total carbon footprint” and “Reducing the impact of the use of vehicles on air quality” are Renault Group’s priorities. Internal and external stakeholders expect Renault Group to continue its efforts to reduce greenhouse gas emissions and air pollution due to road transport.