Valeo, the French-headquartered auto component supplier yesterday announced that it will decrease nearly half of its carbon emissions across its entire value chain by end of 2030.
Announcing its carbon neutrality plan for the decade ahead, Valeo affirmed its commitment towards achieving carbon neutrality by 2050. The company added it will decrease 45% of its CO2 emissions in its entire value chain by end of this decade, including emissions from its suppliers, its own operating activities, and the end-use of its products – compared to 2019.
“At Valeo, the reduction of CO2 emissions has been central to our strategy since 2010, and sales generated from technologies that help to reduce CO2 emissions have grown 20-fold to around 10 billion euros in 2021,” said Jacques Aschenbroich, Valeo’s Chairman and Chief Executive Officer.
The company announced to reduce emissions related to its operating activities by 75% (from 1.1 million to 0.3 million metric tons of CO2), in the supply chain by 15% (from 9.5 million to 8.1 million metric tons of CO2), and in the end-use of its products by 15% (from 39 million to 33.1 million metric tons of CO2).
In addition to decreasing CO2 emissions, the use of low-carbon energy in Valeo Group’s energy consumption is expected to increase from 5.5% in 2019 to 80% by 2030. The company noted, several sites are already piloting renewable energy alternatives including three regional sites in Chennai (India), where 90% of consumption is wind-powered, and sites in Sanand (India) and Bad Rodach (Germany), which use their own solar energy facilities to produce 30% and 20% of the energy they consume, respectively. It further committed to expanding its portfolio of technologies that contribute to low-carbon mobility, particularly its technologies for vehicle electrification.
According to Valeo, in 2019, 57% of Valeo’s sales were generated by technologies that helped to reduce CO2 emissions.
By Shraddha Kakade
Asst. Editor, Emerging Technology News