French automotive supplier Valeo has made a commitment to achieving carbon neutrality across its own operating activities and its entire supply chain in Europe by 2050.
The company aims to reach 45% of its target by 2030 across its entire value chain, including emissions from its suppliers, its own operating activities and the end use of its products, compared with 2019.
By 2030, Valeo will have invested more than €400 million (£352m) in reducing emissions related to its operating activities, i.e. Scope 1 and 2 emissions, with the investments used to upgrade its sites to enable the current 100 most carbon intensive facilities to become high energy efficiency sites.
Upgrades will include the development of eco-friendly buildings, use of LED lighting and the integration of heat recovery systems.
The company has also reduced its water, energy and packaging consumption by 46%, 29% and 32% respectively.
Valeo plans to expand its portfolio of technologies that contribute to low carbon mobility, in particular its solutions for vehicle electrification.
It has recently been granted a loan package worth €600 million (£527m) by the European Investment Bank (EIB) to support its research projects focused on reducing vehicle carbon emissions and improving safety.
The company has also joined the Business Ambition for 1.5°C campaign that brings together companies committed to achieving carbon neutrality by 2050 using the framework of the Science Based Targets initiative.
Jacques Aschenbroich, Valeo’s Chairman and Chief Executive Officer said: “The entire automotive industry is investing heavily to combat global warming.
“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 in 2021. We intend to continue our efforts, with the aim of achieving carbon neutrality by 2050 and reaching nearly half of this objective by 2030.”