Achieving CO2 Net Zero
Reaching CO2 Net Zero: an essential transformation
Climate change poses a serious challenge to humanity. We believe that we can act today to mitigate the trend.
In 2019, Faurecia has engaged in a company-wide CO2 neutrality plan. Since the creation of FORVIA, both Faurecia and HELLA have established a common net zero target. We aim to become CO2 neutral in our operations by 2025 (scopes 1 & 2), and to reduce scope 3 emissions by 45% by 2030. We have committed to reach CO2 Net Zero by no later than 2045.
In June 2022, Faurecia became the first French company and with HELLA the first global automotive group to be certified with the new SBTI Net-Zero Standard (the most ambitious standard of SBTi), aligned with the ambition of the 2015 Paris Agreement of limiting global warming to 1.5°C.
Three principles guide our action: use less, use better and use longer, with a focus on recyclability and circular economy.
Transforming the way we operate: CO2 neutrality in scopes 1 and 2 by 2025
In order to reduce scope 1 & 2 emissions, we have launched a global energy transition plan over the 2020-2025 period, to develop digitalized energy efficiency, as well as renewable energy production and supply. We are partnering with leading energy transition players (ENGIE, EDP, Schneider Electric) to accelerate its execution: on-site, through energy savings and installing solar panels across 150 sites in 22 countries by end-2023 (with a cumulated power production capacity of 150 MWp by mid-2023 and covering 7% of our global electricity needs); and off-site, through negotiating Power Purchasing Agreements to invest in greenfield renewable electricity production capacities: wind and solar.
Developing market-leading sustainable products
Reducing our scope 3 emissions means using less and better materials that display ultra-low CO2 footprint. We design our future products considering their entire lifecycle: product eco-design, use of resources and raw materials, use phase, end of life and recycling. We have launched Materiact, a dedicated Sustainable Materials division, to industrialize breakthrough materials made of biomass or recyclates, replacing traditional plastics and skins for the automotive industry and beyond.
Currently, steel production accounts for around 40% of our total CO2 emissions, so we are pioneering the use of fossil-free steel to create ultra- low CO2 seat frames and cockpits. Working with Swedish steelmaker SSAB, FORVIA will be the first group to develop and equip vehicles with steel made with hydrogen and zero-carbon electricity, rather than fossil fuels. Our recent partnership with Veolia will support us in developing recycled materials and achieve an average of 30% recycled plastics for interior modules by 2025.
In parallel, we are moving away from the “take”, “make”, “waste” model and towards a circular system where parts are repaired rather than replaced and designed to be easy to recycle. Faurecia offers a multi-brand electronics repair service that extends the life of a wide range of components, reducing their CO2 footprint by up to 85%, and a Europe-wide remanufacturing service for heavy-duty vehicles’ emissions systems. Through HELLA’s wide presence in the aftersales market, the entire Group can develop new circular business models and grow existing ones, lowering our environmental impact and generating value sustainably.
Pioneering Sustainable Materials to reduce CO2 emissions related to our productsCreated in 2021 and now known as Materiact, our Sustainable Materials division builds on over 15 years of expertise to develop and manufacture cutting-edge ultra-low CO2 materials, with a 20% improvement compared to state-of-the-art conventional materials. These include alternatives to animal leathers, recycled and bio-based plastics, fossil-free steel, and more sustainable carbon fiber. FORVIA is building a dedicated Sustainable Materials R&D Center and a pilot plant, both operational in 2023. 400 people will be employed as part of Materiact by the end of 2025.
Our Way to Net-ZeroCO2 neutrality by 2025 for our scope 1 and 2 emissions
Scope 1 is all our direct emissions: the emissions from the combustion of fuel and gas on our sites Scope 2 is all our indirect emissions: the emissions from the electricity we purchase By 2030, 45% reduction in our scope 3 emissions, meaning: all other indirect emissions in our value chain, upstream and downstream e.g.: transport, purchased goods and services, processing of sold products, etc. including car usage.
By 2045: CO2 -Net-Zero for total emissions.
We will reduce by 90% our scope 1, 2 and 3 emissions (in absolute value) by 2045. The 10% of residual emissions will be offset by removals, meaning CO2 from the atmosphere will be sequestrated in sustainable materials like plastics. It is one of the purposes of the FORVIA newly created Sustainable Materials division.
In 2022, we received an A rating and we have been recognized as a supplier engagement leader by the “Carbon Disclosure Project (CDP) Suppliers”. this year we aim to onboard 500 key suppliers in the CDP’s Supply Chain Management Program by 2022.