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 temperature 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 are engaged in the Paris Agreement’s objectives.
As such, in line with our Convictions and Values, we have engaged in a ten-year plan to converge to CO2 neutrality towards 2030. This journey has two key milestones – CO2 neutrality in operations by 2025 and 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 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 partnership with Schneider Electric, the leader in digital transformation of energy management and automation, to accelerate CO2 neutrality in our direct and indirect emissions (scopes 1 and 2).
This first stage of our collaboration includes both switching to energy produced with low-carbon fuels or from renewable sources, and reducing energy used by adopting innovative digital solutions for efficiency and heat recovery. We are equipping all our sites globally with metering and piloting software to track and reduce electricity consumption by over 15%, and heat consumption by up to 20%. “Use-Better”-measures will comprise local production of electricity (solar panels) and purchasing energy from renewable sources where possible.
We expect quantifiable results for this first stage of the CO2 neutrality objective as early as 2021.
By 2030 we will converge towards CO2 neutrality 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 CO2 neutrality by 2050. As a key milestone, we will be reaching a 46% reduction of CO2 emissions associated with the use phase of our products by 2030.
Guiding principles: use less and use better
Two principles shape our approach to CO2 neutrality: using less and using better. These two principles will guide our approach across two streams: operations and 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 decarbonated 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 plastics and steel lightweighting. Using better in scope 3 includes a number of high-potential opportunities in process and design which had not been leveraged on a large scale in the past. Many of these center around innovation in materials (improving recycling for 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 non-visible plastic 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 aligned with our suppliers’ and customers’ objectives and ahead of those of our competitors, and we will work in partnership with actors across our supply chain to advance sustainability.