Renault

Renault’s ‘Drive the Future’ strategy aims to launch eight fully electric models and 12 electrified models between 2017 and 2022. To accelerate progress towards this goal, Renault invested €1 billion in 2018 towards electric vehicle development in France alone. This investment in technology is key for the transition goes beyond the low-carbon pathway, demonstrating Renault’s commitment to decarbonisation.

Renault has set a science-based target in the medium term to reduce its ‘well-to-wheel’ emissions across its fleet by approximately 41 percent by 2030, as compared to its 2010 levels. The projected pathway of this target is more ambitious than that set for the low-carbon pathway. Renault’s emissions targets could be further improved by setting interim targets between now and 2030.

Renault’s sales have been predominantly internal combustion engine vehicles, which represent around 99 percent of total sales. Through improvements in internal combustion engine efficiency, Renault has successfully driven down its fleet emissions, which now align with the target set for the low-carbon pathway. However, to keep pace with the reduction rate required under the low-carbon pathway, Renault cannot solely rely on internal combustion engine vehicle efficiency gains. The company must also increase its share of sales that come from low-carbon vehicles.

Renault’s ‘Drive the Future’ strategy sets out the company’s direction over a six-year timeframe. While quantified emissions reductions and electrification objectives are included, the physical and financial implications of achieving these objectives are not presented in a comprehensive manner. Furthermore, the timeframe, covering from 2017 to 2022, fails to reach the company’s longest time horizon set for its emissions reduction targets, which go until 2030. Renault could close this gap by developing a low-carbon transition plan that covers both the short and medium term, as well as the long term reaching until 2050.

Renault has several business activities that facilitate the entry of non-internal combustion engine vehicles into the market as well as activities that advance the low-carbon optimization of personal mobility, such as battery recycling and a car sharing service. However, details regarding the size and profitability of these activities are not publicly available. Renault should improve its reporting on the company’s innovative business activities to demonstrate its commitment to decarbonising the automotive industry.

Renault’s supplier engagement strategy largely focuses on corporate social responsibility rather than addressing climate change and greenhouse gas emissions. While Renault asks suppliers to comply with applicable regional emissions laws, there is no evidence to suggest that Renault is actively trying to decrease emissions in its supply chain. Renault should share its own knowledge around successfully reducing emissions and further collaborate with suppliers to develop low-carbon products.

Renault has two science-based targets to be achieved by 2030 where the company commits to reducing manufacturing emissions by 60 percent and fleet emissions by 41 percent, as compared to its 2010 levels.

Renault aims to increase its share of renewable energy used at production sites to reduce its manufacturing emissions and increase electric vehicle sales to reduce its fleet emissions. However, Renault’s ‘Drive the Future’ strategy reaches only until 2022, leaving a gap between the company’s fleet emissions target end date of 2030.

Renault has continued to sell large volumes of internal combustion engine vehicles and, as a result, its current share of sales that come from low-carbon vehicles is very low, sitting at approximately 1 percent. However, other aspects of Renault’s decarbonisation efforts are strong, namely its research and development and its progress on targets.

Renault’s legacy is tainted by the 2015 diesel emissions scandal, though its fleet emissions are decreasing due to gains in internal combustion engine efficiency and becoming more aligned with the low-carbon pathway.

Renault has made ambitious commitments to decarbonise. However, the company should set interim targets to incentivise efforts to become better aligned to the low-carbon transition. It also should rapidly increase its share of sales that come from low-carbon vehicles to better prepare for a low-carbon economy.