Renault Group: Strategic Green Supplier Partnerships

From selecting ESG-leading suppliers to sourcing raw materials and designing vehicles, Renault Group’s suppliers contribute to its environmental performance.

In 2024, raw material supplies and components accounted for an average of 17% of the carbon footprint of Renault Group vehicles sold.

Commitment of procurement teams and suppliers is key to reducing greenhouse gas emissions and ensuring sustainable value creation.

Renault Group’s futuREady strategic plan

When it comes to Renault’s futuREady strategic plan, operational excellence goes hand in hand with environmental excellence. The group has reaffirmed its ambitions to reach net-zero carbon emissions in Europe by 2040 and worldwide by 2050. 

“Our responsible purchasing policy is a key lever for creating sustainable value for Renault Group, and it cannot contribute to reducing our carbon footprint without the commitment of our suppliers,” says Anthony Plouvier, Chief Procurement Officer at Renault Group.

The group’s responsible purchasing policy goes beyond stringent supplier selection and high collaboration standards; it covers multiple areas, including eco-design, circular economy and battery production. 

All while following one consistent objective: making sustainability a continuous improvement discipline, where suppliers are fully engaged partners in the group’s performance, including environmental performance.

Sharing a common framework and high ESG standards with suppliers

Anthony goes on to explain that the group’s responsible purchasing policy is first and foremost based on evaluating suppliers against ESG criteria. 

“Responsibility and sustainability criteria carry as much weight as performance and quality in our supplier choices. A low ESG score is now a deal breaker,” says Anthony.

Renault Group builds its supplier relationships on shared principles across its value chain, to support continuous improvement in both the supply chain and product manufacturing.

Suppliers of the group must provide visibility on their climate trajectory and disclose carbon footprint using the Carbon Disclosure Project Supply Chain methodology. For Renault Group, decarbonisation starts as early as the tendering phase. 

Integrating suppliers early in vehicle design to reduce carbon footprint

As part of its plan to transform supplier relationships, integrating suppliers early into the vehicle design allows them to contribute to product development, innovation and strengthen the transparency of the value chain.

“In practical terms, suppliers are involved earlier in product and project development phases, enabling them to propose solutions. Renault Group’s Procurement function works closely with design teams to identify the most effective levers available through suppliers to meet vehicle decarbonisation targets,” says Anthony. 

With materials representing between 10% and 40% of a vehicle’s carbon footprint, depending on the powertrain, Renault Group applies several approaches to reduce its environmental impact, including: 

• More frugal use of rare materials
• Increased use of recycled or bio-based materials
• Anticipating end-of-life dismantling and recycling

The group leverages circular economy solutions through subsidiaries. 

Decarbonising electric battery production

Anthony also details the impact of battery production on the group’s carbon footprint, with the production accounting for one-third of an electric vehicle's total carbon footprint. 

As such, the group is intensifying its efforts to reduce battery carbon footprint with more sustainable sourcing. Its target: reduce battery carbon footprint by 35% between 2019 and 2030.