2021 Sustainability Guide - Planet - Faurecia
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Sustainability
Guide
Planet
2021
Business People
2 Faurecia | 2021 Sustainability Guide
MOBILITY
Faurecia has always worked to inspire
INSPIRING
the future of mobility. As we navigate
into uncertain and challenging times,
creating value and developing solutions
for Sustainable Mobility and the Cockpit
TO CARE
of the Future, our responsibility is more
than ever engaged to have a positive
impact on society and meet the needs
of future generations.
Driven to inspire the future, we are
ourselves inspired to care.
For the planet, our business and society,
this is our approach to sustainability.
INSPIRED
Faurecia | 2021 Sustainability Guide 3
Shared
Perspectives
with
“ As an industrial
leader, we
have made the
decision to embed
sustainability
PATRICK KOLLER
Chief Executive Officer
MICHEL DE ROSEN
Chairman of the Board
into our business
strategy and
“
of Directors
The past year’s pandemic reinforced the idea that climate
change is an urgency. Sustainability has become a global corporate culture.
priority everywhere, for everyone, in public and private
sectors. At Faurecia, we have been convinced for many
After Stellantis’ spin-off of Faurecia, we confirmed and
years that companies have a role to play in this matter.
even accelerated our global business transformation, and
Our mission as a global automotive and technology therefore our sustainability engagement. As we take into
leader is to develop innovations that inspire a safer, account the evolution of mobility, develop new business
connected, personalized and responsible mobility. models and invest massively in new technologies,
We drive our business with the conviction to make a sustainability is at the core. Evaluating and rethinking the
positive contribution to society through transparency, high way of developing, procuring, manufacturing, distributing
ethical standards, an environmentally-friendly industrial and disposing of products drive our business strategy.
footprint, as well as operating according to the ideals of
We know that we’ll be stronger together, with our
corporate citizenship.
ecosystem, our stakeholders, our people. We listen to
As an industrial leader, we have made the decision to them, pay attention to their expectations, and go along
embed sustainability into our business strategy and the journey with them.
corporate culture. As we move with a strong ambition
As representatives of the Board of Directors and the
and new perspectives in the automotive industry to
Executive Committee, we are committed to support
develop solutions for Sustainable Mobility and the
this global transformation and we are working towards
Cockpit of the Future, we aim to meet the challenges
strengthening both our resilience and agility, whilst
of future generations.
counting on robust and transparent governance bodies.
Faurecia’s Convictions are the foundations of our strategy
focusing on the planet, business and people.
By deploying these Convictions into concrete projects, we
want to make a difference for all our customers, suppliers,
employees, shareholders, governments, and public
bodies at all levels, as well as the communities in the
countries where we operate.
4 Faurecia | 2021 Sustainability Guide
Planet
As we care for the planet, the Science Based
Target initiative validated our CO2 neutrality
roadmap towards 2030, which is compatible
“ We know that
we’ll be stronger
with the most ambitious scenario of the Paris
Agreement, namely global warming limited to 1.5°C. together, with
our ecosystem,
We partner with an ecosystem of key players to
reduce energy consumption and use exclusively
renewable energies across all of our sites. We are
our stakeholders,
“
investing significantly in sustainable materials to
reduce the environmental footprint of our products
and in batteries and hydrogen technologies for
zero-emission mobility. our people.
Business Through this sustainability guide, you
To perform in a responsible way, we are
will read more about our initiatives and
strengthening our ecosystem across the whole 2025 targets. They are the foundations
value chain for resilience and long-term value of the sustainable and ambitious future
creation. Guided by the principles of safety, respect, we want for Faurecia: we are inspired to
compliance and a partnership mindset, we have care for the planet, business and people.
accelerated our program for Total Customer Our sustainability approach is the
Satisfaction and have launched initiatives to work reflection of this ambition.
more closely with our suppliers – and develop
together more sustainable materials and products
for the future of mobility.
People
As we contribute to society and for our people, we
favor life-long learning for everyone for personal
fulfilment and employability. We also believe in
diversity building strength and foster an inclusive
culture to attract, develop and promote talents.
Finally, Faurecia supports employees in developing
programs for their local communities.
Faurecia | 2021 Sustainability Guide 5
Table of
contents
Introduction
Faurecia in brief 7
Shared convictions for sustainability 8
Faurecia’s sustainability roadmap 10
Faurecia’s contribution to the SDGs 12
Sustainability integrated into corporate governance 14
Sustainability ecosystem 20
PLANET BUSINESS PEOPLE
Care for Perform in a Contribute
the planet responsible way to society
Environmental Business ethics and
footprint in operations
26 human rights
36 Learning organization 48
Circular economy
for products
30 Safety 38 Diversity & inclusion 50
Investments for
32 Responsible supply chain 42 Local solidarity actions 52
sustainable technologies
6 Faurecia | 2021 Sustainability Guide
Faurecia
in brief
Faurecia is a top ten global Group sales by region
automotive supplier that is focused
on developing and providing
carmakers with innovative solutions
for the industry across five activities
and four Business Groups:
Faurecia Seating, Faurecia Interiors, NORTH AMERICA EUROPE ASIA
Interior Modules, Faurecia Clarion
Electronics and Faurecia Clean 25% 47% 24%
Mobility. The Group’s shared culture
empowers teams to balance short-
SOUTH AMERICA &
term execution and sustainable REST OF THE WORLD
4%
long-term ambition, all mobilized
to deliver excellence and develop
innovative solutions for future
mobility.
A top ten global automotive
technology supplier €14.7bn 35
sales countries
The company is organized into five Business
Groups which are accountable for operational
performance and Total Customer Satisfaction.
The Group’s key initiatives for sustainable
development, and in particular its ambition to
39 266
become CO2 neutral by 2030, are based on its R&D centers Industrial sites
strong convictions and values. Its transformation
is embedded in a robust, ethical and efficient
corporate governance structure.
114,000 1 in 3
This document enables all stakeholders to better
employees of 103 vehicules in the
understand the company's vision and strategy for
nationalities world equipped
profitable growth. Faurecia's business model is
with a Faurecia
focused on creating value for all its stakeholders,
technology
both in terms of financial and non-financial
performance, over the short and long term.
For further information please consult
5 Figures as of
end 2020
the Group’s website www.faurecia.com activities
Clean Mobility - Seating -
Interiors - Interior Modules -
Clarion Electronics
Faurecia | 2021 Sustainability Guide 7
Shared Power must have a
convictions for counterbalance
Faurecia believes in a system of transparency and dialogue.
sustainability Each employee and stakeholder can voice an opinion, criticism,
make an alternative suggestion or report a violation without fear
of personal consequences and in complete transparency.
Faurecia’s Board of Directors The Group believes in open, responsible and balanced
dialogue, based on mutual recognition and an acceptance of
and Executive Committee the legitimacy of each viewpoint. Faurecia’s relationship with its
suppliers is guided by the principles of respect and partnership
to create long-term value for both parties. The Group views and
respects collective representation of employees and social
The world is facing major challenges: dialogue in the same proactive and constructive spirit.
urbanization, growing population,
climate change, technology disruption
and social tensions. As members
of the Board of Directors and the
Executive Committee of Faurecia, we Short-term
believe that we need to have a positive thinking jeopardizes
impact on society and the planet in future generations
the light of these major environmental In an ever-changing world, Faurecia must invest in its future
and social challenges. We have six and in particular in technology, new business models and
shared convictions which describe our learning. The Group must preserve natural resources and meet
environmental challenges for the well-being of future generations.
approach to sustainability. Based on At the same time, in order to maintain the confidence of its
these convictions we have deployed customers and shareholders, it must deliver short-term financial
a number of key initiatives across the and operational performance. Faurecia must be able to balance
both long-term and short-term objectives and not jeopardize one
Group with defined and measurable
at the expense of another. Its culture enables it to combine rigor
improvement indicators. and discipline in short-term execution with a long-term vision.
“
Board of Directors
We, the Board of 1. Michel de Rosen 8. Jean-Bernard
Chairman of the Lévy
Directors and the Board of Directors Chairman and Chief
Executive Committee, 2. Patrick Koller
Executive Officer
of EDF
are endorsing these
1 2 3
Chief Executive Officer
9. Yan Mei
convictions, as they 3. Daniel Bernardino Senior Partner, Chair
are the foundation of Board member of Brunswick Group
representing the (China)
Faurecia's commitment 4 5 6 employees
for sustainability. 10. Denis Mercier
4. Odile Desforges Deputy Chief
We are deploying Board member Executive Officer
of Fives Group
them into concrete 5. Linda Hasenfratz
7 8 9 11. Peter Mertens
actions focusing on the Chief Executive
“
Officer Linamar Board member
Environment, Business Corporation
12. Robert Peugeot
and People. 6. Penelope Herscher Chairman of the
10 11 Chair Board Peugeot
Board member Invest
7. Valérie Landon 13. Emmanuel
Chief Executive Pioche
Officer France and Board member
12 13 Belgium representing the
Credit Suisse employees
8 Faurecia | 2021 Sustainability Guide
Companies must
have a positive The world is in a state of
impact on society permanent disruption
Faurecia is a member of the community in each region Technology is rapidly changing Faurecia’s business models and
where it operates worldwide. The Group contributes working methods. The Group must anticipate the next trends,
to economic development and the creation of social remain agile and invest in innovation and education. It strives
value by hiring locally, providing career training and to ensure the employability of its employees throughout their
advancement for employees and through a commitment working lives through lifelong learning, professional mobility and
to ethics and social responsibility. Above and beyond on-the-job training. This is the best guarantee for ensuring that
its legal obligations, Faurecia has a responsibility everyone can reap the benefits of technological advances and
to maintain a frank and ongoing dialogue with the changing work practices. For younger generations, Faurecia has
communities that surround its sites, to ensure that its extensive programs of apprenticeships, work-study, volunteers for
operations are harmoniously integrated into each region. international experience (VIE) and internships that both provide
As appropriate, the Group initiates or contributes to the Group with a talent pool and enable extensive on-the-job
projects and programs that address local needs, by training and cultural integration.
offering its expertise and resources in support.
Environmental
issues pose a serious Diversity is
challenge for humanity a strength
Faurecia wants to help cap the rise in temperature Diversity in the workforce with regard to gender,
by reducing the carbon footprint of its activities and place of origin, cultural or educational background,
offering solutions for Sustainable Mobility. The Group experience or any other difference is a source of strength.
supports national and international organizations Thanks to Faurecia’s diversity, the Group has a better
in reducing global warming and by respecting their understanding of customer expectations and makes
principles. Air quality poses an increasing threat to better decisions. It encourages the broadest possible
health in cities. Through its solutions and partnerships, diversity through recruitment and career management
Faurecia works to reduce pollutant emissions and and by fostering workplace conditions and a flexible
improve air quality. organization that are adapted to individual needs.
Executive Committee
1. Patrick Koller 7. Mathias Miedreich 12. François Tardif
Chief Executive Officer Executive Vice-President, Executive
Faurecia Clean Mobility Vice-President,
2. Yann Brillat-Savarin Faurecia China
1 2 3 Executive 8. Thorsten Muschal
Vice-President, Executive Vice-President, 13. Hagen Wiesner
Group Strategy Sales and Program Executive
Management Vice-President, SAS
3. Nolwenn Delaunay Interior Modules
Executive Vice-President, 9. Christophe Schmitt
4 5 6
Group General Counsel Executive Vice-President, 14. New EVP
& Board Secretary Group Operations Communications
& North America Not announced at the
4. Olivier Durand time of publication
Executive Vice-President 10. Jean-Pierre Sounillac
7 8 9
Faurecia Clarion Executive Vice-President,
Electronics Group Human Resources
5. Michel Favre 11. Eelco Spoelder
Executive Vice-President, Executive Vice-President,
10 11 12 Group Chief Financial Faurecia Seating
Officer
6. Jean-Paul Michel
Executive Vice-President
13 14 Faurecia Interiors
Faurecia | 2021 Sustainability Guide 9
Faurecia’s
sustainability
roadmap
Translating the Group’s six convictions into a concrete
action plan to achieve results by 2025 and beyond
Faurecia’s sustainability strategy has three key focuses:
Planet Business People
For each of these areas, the Group has developed initiatives built on the Group’s six convictions, with action plans
and quantifiable progress targets for 2025 and 2030 (detailed in the opening sections of the following chapters).
Simultaneously ambitious and achievable, these goals were defined in collaboration with all Business Groups
and support functions and are integrated into corporate governance.
PLANET
Care for the planet 1
Environmental footprint in operations
Reducing the greenhouse gas footprint in all of
For the planet, we are the Group’s activities, and controlling impacts
on the planet.
continuously rethinking our
way of developing, procuring, Circular economy for products
manufacturing, distributing
2 Moving away from a “take, make and waste”
paradigm in favor of a circular economy by
and disposing of products. considering the full life cycle of products.
3 Investments for sustainable technologies
Mobilizing financial and human resources, and
CO2
NEUTRALITY
in operations to
be achieved by
2025*
helping the automotive industry move towards
zero emissions and clean mobility solutions.
*Scopes 1 & 2
10 Faurecia | 2021 Sustainability GuidePerform in a
BUSINESS
Business ethics
1 Making our business growth rely on
responsible way strong values for ethics and a strict
respect for compliance.
For business, our relationships Safety
are guided by the principles 2 Providing a safe work environment to all our
of respect, compliance and employees while putting quality and service
partnership to create long-term at the core of operational excellence.
value for every stakeholder. Responsible supply chain
3 Building strong, lasting and value-added
relationships with suppliers whose businessFaurecia’s
contribution
to the SDGs
Faurecia supports the United Nations Sustainable
Development Goals (SDGs) program aiming to achieve a
better and more sustainable future for all. In 2019, Faurecia
identified 11 SDGs to which it is making a contribution through
its sustainable development actions and its operations.
Planet
6 6. CLEAN WATER
AND SANITATION
12. RESPONSIBLE CONSUMPTION
AND PRODUCTION
13
13. CLIMATE
ACTION
Efficiency in water use. Sustainable management Reduction of Faurecia’s carbon
of waste. footprint to achieve CO2
Neutrality by 2030.
7
7. AFFORDABLE AND
CLEAN ENERGY
On-site production and external
sourcing of renewable energy.
Business
3. GOOD HEALTH 11. SUSTAINABLE CITIES 13. CLIMATE
AND WELL-BEING AND COMMUNITIES ACTION
Reduce safety risks and road injuries Air quality innovations particularly Development of solutions for zero-
via Faurecia’s policy for product suited to urban areas. emission mobility and air quality.
quality and safety.
12. RESPONSIBLE CONSUMPTION
8. DECENT WORK AND
AND PRODUCTION 17. PARTNERSHIP
ECONOMIC GROWTH FOR THE GOALS
Eco-design of products and
Respect for and promotion of circular economy. Partnerships for sustainable
international principles relating innovation with key players
to human rights and labor law in the industrial and
throughout the value chain. technological ecosystem.
10 10. REDUCED
INEQUALITIES
Fight against discrimination.
12 Faurecia | 2021 Sustainability GuidePeople
3. GOOD HEALTH 5. GENDER 10. REDUCED
AND WELL-BEING EQUALITY INEQUALITIES
Implementation of uncompromising Specific promotion and Development of local
workplace safety and risk development of women. societal actions.
prevention policies.
Fight against discrimination and
Supporting employees and families for professional equality. 17. PARTNERSHIP
during the pandemic. FOR THE GOALS
8. DECENT WORK AND
4. QUALITY ECONOMIC GROWTH Active societal engagement with
EDUCATION local communities and NGOs.
Active prevention of accidents at
Training and skills development for work and occupational diseases.
Faurecia’s employees, in particular
via its internal Faurecia University.
Support for solidarity and local
initiatives in favor of education.
Faurecia | 2021 Sustainability Guide 13Sustainability integrated into
corporate governance
Faurecia’s governance structure relies on the best standards of independence,
transparency, openness, inclusiveness and responsibility, for running the
Group’s strategic and operational business. From two complementary governance
bodies to decision-making processes involving all levels of the company, Faurecia
governance takes into account every financial, societal, social and environmental
challenge according to the Groups’ convictions, values and engagements.
1. Robust & committed governance
The Board of Directors
The Board of Directors determines Faurecia’s
business, financial and economic strategies and
Figures as of February 2021
13
Board members
82%
oversees their implementation, in accordance
with the corporate purpose and taking social and
environmental challenges into consideration.
7
The Board meets at least six times a year. Independent Board members*
versus 61.5% in 2019
• A strengthened independence
As a result of the FCA and PSA merger, the Nationalities
46%
distribution by Stellantis of its stake in Faurecia to its
2
shareholders allows the Group to affirm its business
strategy as an independent company. This resulting
enhanced independence is reflected by a change in Women Board members*
governance, with a Board of Directors comprising a *Excluding Board members
Board members
very large majority of independent Board members. representing employees representing
employees
Members of the Board of Directors
INDEPENDENT MEMBERS
Patrick Koller Michel de Rosen Jean-Bernard Lévy Peter Mertens
Chief Executive Officer Chairman of the Chairman and Chief Executive Board member
End of term – 2025 GM Board of Directors Officer of EDF End of term – 2023 GM
End of term – 2024 GM End of term – 2025 GM
Robert Peugeot
Chairman of the Board,
Peugeot Invest Yan Mei Valérie Landon
End of term – 2025 GM Chief Executive Officer France and Board members
Senior Partner, Chair of Brunswick
Belgium, Credit Suisse representing employees
Group (China)
End of term – 2023 GM End of term – 2025 GM
Compensation
Daniel Bernardino committee
Board member representing Denis Mercier
Governance, nominations
the employees Deputy Chief Executive Officer Linda Hasenfratz and sustainability
End of term – Oct. 31, 2021 of Fives Group Chief Executive Officer, committee
End of term – 2023 GM Linamar Corporation
Audit committee
End of term – 2024 GM
Chairwoman/Chairman
Emmanuel Pioche of the committee
Board member representing Penelope Herscher
the employees Chair Odile Desforges
End of term – Oct. 31, 2021 Board member Board member
End of term – 2025 GM End of term – 2024 GM
14 Faurecia | 2021 Sustainability Guide• A broad range 12 KEY DIFFERENTIATING SKILLS
of expertise
Experience in Risk Governance/
As part of a diverse,
Faurecia’s core management Management of
international and
businesses large companies
multidisciplinary
body, Board
members come Automotive Experience in an Specific knowledge
from a wide range technologies industrial company of a geographic
of backgrounds and market
contribute by diverse
and complementary International Sustainability Leadership
skills to support experience & crisis
and accelerate the management
Group development
through technologies,
products, knowledge Banking/ Data-based Energy/
of certain regions and Finance technologies/digital Electrification
sustainable issues.
• Three dedicated committees
Three permanent committees are tasked with the preparation of discussions on specific topics. They issue proposals,
opinions and recommendations within their fields of competence, which integrates a sustainability topic in each
committee:
The audit committee The compensation The governance, nominations
committee and sustainability committee
Review of the Group’s
risk mapping Review of the compensation Since 2021, the previously named governance
policy of the top management and nominations committee has been renamed,
integrating the term sustainability in order to better
reflect the committee’s missions in the field of social
and environmental responsibility, given its essential role
in the Group’s strategy. The new independent Board
member Jean-Bernard Lévy, Chairman and CEO of EDF,
has been appointed Chairman of the committee that is
in charge of guiding and assessing the policy followed
by the company in ethics and compliance as regards
good governance practice and reviewing social and
environmental responsibility matters.
Faurecia | 2021 Sustainability Guide 15The Executive Committee
The Executive Committee is made up of both international and diverse
profiles. It meets at least once a month to review the Group’s results and
discuss the Group’s operations and strategy implementation. Under
14% 50%
the responsibility of the Chief Executive Officer, the Faurecia Executive
Committee is comprised of the CEO and 14 Executive Vice-Presidents of the
Group’s international Business Groups and support functions. Female Non French
“
Employees fully involved in shareholding
The very high
subscription rate to
Faur’ESO demonstrates
the confidence of our
teams in our ability to
create a sustainable
future and their
willingness to be
associated with it. This
is a particularly strong
message in the context
of the pandemic.
This first employee
shareholding plan
and the existing top
managers’ shareholding
bring employee share
“
ownership to above
In 2021, Faurecia announced the launch of a non-dilutive employee
share ownership plan known as “Faur’ESO” (Faurecia Employee 2.6% of the capital.
Share Ownership). The plan was designed to strengthen employee
engagement and involve employees closely in the Group’s future PATRICK KOLLER
development and performance. This first operation involves a Faurecia Chief Executive Officer
maximum of 2% of the Company’s share capital and has been
deployed in 15 countries, targeting 90% of the Group’s employees.
AN EXCELLENT LEVEL OF SUBSCRIPTION
22% TOP 5
Participation France, China, India,
versus 16%, the benchmark Germany, Japan
of French campaigns
16 Faurecia | 2021 Sustainability Guide2. Sustainability governance at a glance
Driving the Group’s sustainability strategy
Over the years, Faurecia’s sustainability commitment and organization have become an integral part of its decision-
making process. Given the importance and scope of sustainability issues that come into play for many of strategic
decisions, each governance body handles these issues within its area of expertise.
CSR GOVERNANCE PERIODIC REVIEW
Information and Decisions
BOARD OF DIRECTORS GOVERNANCE, NOMINATIONS Semi-annual
Review & Challenge AND SUSTAINABILITY COMMITTEE meetings
OPERATIONAL
EXECUTIVE COMMITTEE DEDICATED COMMITTEE
Decide, steer & follow performance Quarterly
Steer the sustainable
Executive Vice-President Strategy leads meetings
transformation
and coordinates sustainability
4 Executive Vice-Presidents
CLIMATE STRATEGY & SUSTAINABLE TRANSFORMATION INITIATIVE Multi-annual
Define, manage, implement and coordinate meetings
Steering
Multi-annual
meetings
R&D •
SUSTAINABILITY SUSTAINABILITY CO2
HSE • • Seating
CORRESPONDENTS SPONSORS COORDINATORS
Purchasing • • Interiors
In the key Group Referent at the Business Referent at the Business
HR • • Clarion
functions Groups’ Boards Groups’ Boards
Compliance • Electronics
Integrate sustainability in Coordinate and ensure Manage & ensure CO2
Risks • policies & procedures sustainability deployment reduction in their organization • Clean Mobility
Internal Control • in their organization • SAS
How sustainability is embedded Efficient risk management process
in the Group’s processes & • Pandemic CSR
• Loss of major
• Continuity and
security of
decision making industrial sites
• Business ethics CSR
information systems
• Climate
High
transition CSR
• Group risk mapping integrating
the extra-financial risks
Faurecia’s extra-financial risks are listed based on
• Safety in the • Financial risks • Liquidity risk
a materiality analysis carried out in 2018 by an in- workplace CSR (currency, interest rates, • Risk associated
house and multidisciplinary working group from • Supply failure raw materials, etc.) with the automotive
IMPACT
• Program supplier business
diverse departments, in comparison with a risk management • Regulatory
universe for peers within the automotive sector. • Product quality developments
and safety CSR
The preliminary list of risks drawn up based on a • Significant litigation
methodology linked to frequency of occurrence • External growth
and degree of seriousness was then discussed • Talent attraction • Intellectual property
over the course of some twenty interviews with and retention CSR • Responsible
• Environmental purchasing
external stakeholders. The Executive Committee impact of sites and policy CSR
validated a final list of risks and opportunities, climate change CSR
Low
which are updated on a yearly basis and
completed by the sustainability roadmap
monitoring indicators.
Low PROBABILITY High
See URD2020 for more details
Faurecia | 2021 Sustainability Guide 17• Compensation integrating sustainability criteria
Chief Executive Officer TOP 300 Managers
Since 2018, the short-term variable Since 2019, 10% of the long- As from 2022, around 4800
compensation of the Group Chief term variable compensation managers will have CO2 footprint
Executive Officer has included a (performance shares) of the 300 reduction targets in their short-term
qualitative objective linked to the senior executives also includes a remuneration, in order to involve
implementation of the sustainability performance condition linked the them in the implementation of the
convictions and the implementation implementation of two of the main first sustainability objectives.
of the sustainability roadmap initiatives of the Group: CO2
in the execution part of the neutrality and gender diversity
strategy. In addition, his long-term
variable compensation includes
performance condition linked to the
Group’s gender diversity objectives
(see URD2020 p.250 for more details).
• Internal strategic plan process for business
& functions integrating sustainability
As a prospective tool part of a yearly internal process, Business Groups
present to Executive Committee members their 3-year strategic plan -
integrating the carbon footprint reduction roadmap and more broadly
sustainability roadmap -, and how they will implement it (planning,
budget, resources, KPIs, etc.).
• Investment decisions steered by an Internal CO2 price
Facing global warming, regulations, taxes and incentives will soon
penalize the CO2 footprint of vehicles. This is why, since 2021, the Group
has included a price for CO2 footprint in the development of its new
products, in order to make the right decisions and anticipate the start
€75/tCO
of the production of the first vehicle by 2025. Internal CO2 price will
also be applied to the current product portfolio, so that serial life CO2
improvement is also incentivized. 2
Internal current price
18 Faurecia | 2021 Sustainability Guide• Group strategy integrating the climate risk transition
Applying the 11 TCFD recommendations Assessing the effects of climate transition
for the Group: Climate-based Scenarios
Faurecia made a commitment to set a scientific
objective, approved by the Science Based Targets Part of the TCFD recommendations, Faurecia has
initiative (SBTi), to align its trajectory with the developed in partnership with the Toulouse School
ambition of the 2015 Paris Agreement of limiting of Economics three forward-looking climate-based
global warming to 1.5°C. To support and highlight its scenarios (economic, social and environmental) related
commitment Faurecia has also integrated the 11 TCFD to the impact of climate change, which allow to take into
recommendations (Task Force on Climate-related account the disruptive effects of the climate transition
Financial Disclosure), broken down into four reporting and assess Faurecia’s strategy resilience.
categories: governance – strategy – risk management
– indicators and objectives.
3 disclosed scenarios are used to test resilience of our strategic plan
Ensuring Strategic Plan Resilience, as per TCFD recommendations
Global Complex Wild
Governance Competition World
• CO2 central bank/ • Private & national/ • Pension/health funds
Climate World Bank regional decision- drive environmental
(CWB) makers take action markets (incl. CO2)
• International • Shared initiatives + free • States decentralize
Governance Environment court riders (governments + and divest public
companies) services
Economic world
in 2050
• CO2 central bank/ • CO2 cap & trade • Few regional
Climate World Bank for companies + CO2 taxes &
(CWB) fragmented CO2 fines, regulations
CO2 border taxes
CO2 • CO2 price: € 50-100 • CO2 price: € 30-200 € • CO2 price: € 0-1,000
(“managed” price) (varying over time/ scope) (wild markets, varying”
CO2 price)
++ + -/+
Growth
Climate world
in 2080
+1.5°/2.5°C +2.5°/3.5°C +3.5°/4.5°C
RPC 2.6 RPC 4.5/6.0 RPC 8.5
Temperature
Faurecia | 2021 Sustainability Guide 19Sustainability
ecosystem
In line with its six sustainability convictions, Faurecia adheres to international norms and
standards in order to demonstrate its commitment to respecting best environmental,
social and societal practices. The Group also relies on recognized partners and
methodologies to develop and monitor its sustainability strategy, as well as
international reporting frameworks and certifications to ensure its transparency
and guarantee the quality of its management systems and processes.
Inspired to care
Planet Business
SBTi EPE
Faurecia’s emissions reduction targets have been Faurecia is a member of EpE, the french association
approved by the Science Based Targets initiative of Enterprises for the Environment, which brings together
under the most ambitious scenario of 1.5°C. fifty large french and international companies willing
to consider the environment more effectively in their
TCFD strategic decisions and in their day-to-day management.
Since 2019, Faurecia has applied the
recommendations of the Task Force on ISO 14001
Climate-related Financial Disclosure.
The Group’s analysis and control of local environmental
risks is based on ISO 14001 standards. In 2020, 79% of the
French French Business
Business Group’s production sites, with at least 2 years of activity,
Climate
Pledge Climate Pledge are ISO 14001 certified.
In 2017, Faurecia was among the major French
companies to sign the French Business ISO 9001 &
Climate Pledge to take concrete action IATF 16949
to combat climate change.
In 2020, 100% of Faurecia’s sites are certified by the
international standard for quality management systems,
Global Hydrogen Council
in the automotive industry.
and French Hydrogen Council
Faurecia is part of the executive group of the
Hydrogen Council. The Hydrogen Council is a
global initiative of leading energy, transport and
industry companies with a united vision and
long-term ambition for hydrogen to foster the
energy transition.
Movin’on
Board member of the Movin’on LAB.
Created by Michelin, Movin’on Lab is an innovative
and collaborative ‘Think and Do Tank’ aimed at
promoting better life through Sustainable Mobility.
ESG ratings
BB 40 C GOLD with Risk category
“Low risk”
44/100
Scale AAA to CCC Scale A+ to D- 69/100
Top 1% in our category
20 Faurecia | 2021 Sustainability Guide
40Commitments Certifications
Partnerships Transparency
People Transversal
UN Global Women’s SDGs
Empowerment Principles Faurecia strongly supports the United Nations
Faurecia has been a signatory of the WEP Sustainable Development Goals (SDGs) by integrating
principles since 2020, an initiative established them into its materiality analysis. In 2019, Faurecia has
by the United Nations Global Compact and UN identified the main SDGs it is contributing to through its
Women. Faurecia is committed to promoting sustainability actions and its operations.
gender equality and the empowerment of women
in the workplace. Global Compact
Since 2004, Faurecia has been a signatory of the 10
Top principles of the Global Compact, a United Nations
Employer initiative launched in 2000. Faurecia renews its
membership each year and is committed to promoting
“Top Employer” certification in 10 countries.
respect for human rights, international labor standards,
environmental protection and the fight against corruption.
Happy Index
Trainees Global Reporting
Faurecia is “Happy Index Trainees”-certified. Initiative (GRI)
Certification recognizing companies taking care
Faurecia prepares its Extra-Financial Performance
of the reception, support and management of
Declaration and reporting in accordance with the GRI
their trainees, work-study trainees and VIE.
standards, Core option.
Sustainability Accounting
Standards Board (SASB)
The analysis of the Group’s extra-financial challenges
was made in comparison with a risk universe for
peers within the automotive sector, and based on the
recommendations made by the SASB.
EcoVadis
Since 2017, Faurecia has been working with EcoVadis
to carry out an in-depth assessment of its suppliers,
focusing on their ethical, social, and environmental
practice. Today, 87% of its direct suppliers are
evaluated by EcoVadis.
B 4/5
Scale A to D Listed in the index series
Faurecia | 2021 Sustainability Guide 21Rethinking the way of developing, procuring,
manufacturing, distributing and disposing
of products.
The global ecosystem as well as At the same time, Faurecia is reducing
humanity are facing a serious its activity footprint through low-CO2
Planet
challenge due to structural transport and redesigned products
environmental disturbances such as using sustainable input, including
climate change and poor air quality recycled materials and biomass.
in cities. With the global megatrend
Committed to the circular
of urbanization and increasing
economy, Faurecia is gradually
mobility density, the automotive
moving away from a “take, make
industry has a responsibility to
and waste” business, by recycling,
initiate measures to reduce its
refurbishing and extending the life
environmental footprint, engage in
of its future products.
activities spanning product design
to product end-of-life and invest for Finally, Faurecia offers
a sustainable future. innovative sustainable
Faurecia is aiming for CO2 solutions for Sustainable
Neutrality towards 2030 for Mobility and the Cockpit
scopes 1, 2 and 3 controlled of the Future, thanks to
emissions (excluding use of which CO2 emissions
sold products), focusing on will be avoided.
three main levers: While investing for the future, the
“use less”, “use better” Group is committed to helping the
and “use longer”. automotive industry move towards
zero emissions, in particular through
First, Faurecia has started
its ambition to become a leader in
neutralizing the CO2 footprint
hydrogen technology.
of all sites through energy
saving and the use of decarbonated
electricity and heat.
2019 2020 2021
Application Partnership Climate First Green
of the TCFD with Schneider transition risks Bond Issuance
recommendations Electric Definition of 3
scenarios by 2050
with the Toulouse
CO2 neutrality School of Economics Offsite Power Purchase
commitments Agreement, Schneider
Hydrogen Center of expertise Electric advisory role
in Bavans, France
Creation of Emissions reduction
Sustainable targets approved by
materials the SBTi
product line
22 Faurecia | 2021 Sustainability GuideCommitments for the Planet
Beyond CO2, a comprehensive plan to cover main environmental footprint
Environmental footprint in operations (scopes 1 & 2)
1
KEY PERFORMANCE INDICATORS 2019* 2025 2030
Absolute CO2 emissions
0.92 Neutrality
scopes 1 & 2 (Mt CO2eq)
Energy intensity
(MWh/€ million of sales)
117 -20%
Waste intensity
(Tons/€ million of sales)
15 -10%
Water intensity
(m3/€ million of sales)
176 -10%
Circular economy for products
2 (scope 3)
KEY PERFORMANCE INDICATORS 2019* 2025 2030
% of recycled content
in new products
30% 40%
CO2 emissions
8.6 -20% -46%
Scope 3 controlled (Mt CO2eq) (intensity) (absolute)
Investments for sustainable technologies
3
KEY PERFORMANCE INDICATORS 2019* 2025 2030
Cumulative investment
2021 – 2025
€1.1bn
*2019 is the reference year
Faurecia | 2021 Sustainability Guide 23Faurecia 2020 CO2
emissions breakdown
FULL
SCOPE 3 SCOPE 3
SCOPES 1 & 2 Controlled emissions Total
Internal emissions
emissions
4,770 17,200
1,128
662
255
168 173 199 225
117 55 83
Combustion Purchase of Fuel & Scrap Capital Transport Employee Purchased Processing Faurecia Other Car
of fuels electricity energy related Goods upstream & commuting goods & of sold products end usage
activities downstream & business services products of life
travel
2020 figures (in kilo tons CO2 equivalent) restated
in 2021 to include SAS and FCE acquired business
groups and improve methodology and accuracy.
Audited by Mazars.
OBJECTIVE
CO2 neutral in production
2025
Clean energy
• On-site renewable
energy production
AMBITION
Toward CO2 neutrality
• External renewable in product design
2030
energy sourcing
Use less
Energy Savings • Lightweighting initiatives
• Digitalization & smart actuators
• Eco design
Investment
Use better
• 70 million euros to achieve
the objective • Green manufacturing
• Recycled materials
ELIMINATE 920 KT CO2 • Bio-based materials
BETWEEN 2019 AND 2025
ELIMINATE > 4 MT CO2
BETWEEN 2019 AND 2030
24 Faurecia | 2021 Sustainability GuideFaurecia | 2021 Sustainability Guide 25
1. Environmental
footprint in operations
Our Vision Our Approach
Reducing Faurecia’s
environmental footprint 1.1 CO2 neutrality by 2025
involves neutralizing the Faurecia made a commitment in 2020 to become CO2
Greenhouse Gas footprint in neutral in its operations by 2025. This roadmap has been
all of the Group’s activities. In assessed and approved by the Science Based Target
addition, Faurecia is committed initiative (SBTi), as aligned with the ambition of the 2015
to applying the international Paris Agreement of limiting global warming to 1.5°C.
environmental standards at
all its sites and working on a
Acting for energy transition
daily basis to reduce, recover
or recycle whenever possible and savings
waste generated throughout the Faurecia launched a global energy
production chain. Faurecia is transition plan over the 2020-2025
also committed to using water period to develop digitalized energy
more efficiently and very
€70m
efficiency as well as renewable
closely monitoring the use energy self-production and supply
of concerning chemicals for all Group sites around the world.
and emissions of volatile As part of the plan, the Group is investment for energy
organic compounds. committed to a minimum of 15% savings by 2023
energy reduction.
1,700GWh
of global electricity
consumption in 2020
26 Faurecia | 2021 Sustainability GuideBuilding a CO2 neutrality Faurecia’s ecosystem of expert partners
plan with a strong
ecosystem
From planning to action -
measuring the Group’s CO2
footprint, developing a roadmap
FOOTPRINT ROADMAP ACTION PLANS
and implementing action plans -,
Faurecia relies on an ecosystem of
expert partners to achieve its carbon
neutrality objectives and ensure recommended
used as a protocol benchmarked the industry
compliance with state-of-the-art to publish all scopes disclosing scopes & identified first action plans
requirements. (with assessment 1 & 2 roadmaps (scopes 1, 2, 3) supporting
of uncertainties). project management
calculated 2019 assessed and advising on off-site
& 2020 footprints validated scopes Power Purchase
Climate strategy and (scopes 1, 2, 3) 1 & 2 roadmaps as Agreement and
sustainable transformation 1.5°C compliant developing energy
saving solutions
initiative
The CO2 neutrality project is steered
within the “climate strategy and
audited all scopes
sustainable transformation”
developing energy
initiative, reporting to the Executive saving solutions
Committee, with an operational
interface network in all Business
Groups and support functions for
holistic implementation.
advising on on-site Power
A monthly and global dashboard Purchase Agreement
of key indices ensures close
roadmap monitoring and
appropriate reaction.
Faurecia | 2021 Sustainability Guide 271.2 Environmental
footprint
Improving the environmental
79%
performance of sites
Faurecia has committed to an
environmental ISO 14001 certification of production plants
approach for all production plants (with more than 2 years
with over two years’ activity, based of activity) ISO 14001
on the principle of continuous certified
improvement.
Preventing, managing,
and recovering waste
192,400t
Sites are implementing local
initiatives that improve the
reduction, sorting and recovery of
of waste generated
product waste, and reincorporating
by Faurecia’s sites
production scraps back into
(63% non-hazardous waste)
processes as much as possible.
Making better use of water
resources
Faurecia industrial processes
consume a very moderate amount
of water: 2/3 of the Group’s
consumption is for sanitary use.
72% of the total consumption of
61%
Waste recycling rate
water is released to the Public
Wastewater network. Improved water
management is based on accurate
monitoring, prevention of leaks and
closed loop use.
2,710,000m
Limiting the use or
3
production of concerning
chemical products of water consumption
Faurecia has implemented a data
system for managing substances
throughout the supply chain for all
its procured products (based on the
“IMDS” OEM declaration system,
specific to automotive sector), and
carries out upfront life cycle analysis
1,281t
and prevention of process side-
products that might have an impact
on the environment.
of Volatile Organic
Compound (VOC) emissions
28 Faurecia | 2021 Sustainability GuideKey Highlights
• KPMG : an advisor for on-site • Digital transformation to support
power purchase agreements CO2 neutral objective
Faurecia selected KPMG, a leader Faurecia’s digital transformation
in audit and advisory services, supports its CO2 neutrality
as its partner for on-site power objective, through global
purchase agreement advisory monitoring (using “Resource
services, in order to prepare, Advisor”) and the installation
execute and implement its solar of smart actuators: AI-powered
panel equipment program across energy & emission monitoring and
all facilities worldwide, and reduction software systems.
particularly to contract with the
• Location of Faurecia sites and
right developers.
the natural environment
• A partnership with Faurecia moderates its impacts on
Schneider Electric biodiversity by reducing the impact
Faurecia signed a partnership of its activities on the soil and the
with Schneider Electric to develop air. The Group has listed 21 sites
an action plan for all its sites close to a protected area and is
worldwide, for optimizing energy acting to reduce the pressure on
consumption and using exclusively these areas.
renewable energy. This will involve
investing in on-site and offsite
photovoltaic panels and
wind turbines.
Key Figures
Environmental
footprint in 2019 2020* 2025**
operations
Absolute CO2 emissions
scopes 1 & 2 (Mt CO2eq)
0.92 0.78 Neutrality
Energy intensity
(MWh/€ million of sales)
117 120 -20%
Waste intensity
(Tons/€ million of sales)
15 13.5 -10%
Water intensity
(m3/€ million of sales)
176 194 -10%
* Due to the Covid-19 pandemic, the 2020 activity has been impacted by prolonged shutdowns
of factories, which generated residual energy consumption without generating turnover
** Targets based on 2019 baseline
Faurecia | 2021 Sustainability Guide 292. Circular economy
for products
Our Approach
Our Vision
Life cycle of a vehicle & Faurecia focus
Committed to the circular
economy, Faurecia contributes
through the design of its
2.1 Using environmentally-friendly material
products taking into account The Group is reorganizing its purchasing process for low-carbon raw
their entire life cycle, and materials and services (controlled scope 3) and has launched a project to
has developed an efficient measure and reduce CO2 emissions.
management strategy for its
materials and resources.
2.2 Improving eco-design
For each innovation project, the Group has implemented an eco-design
checklist: presence of substances of concern, recyclability, environmental
impact and interior air quality, whilst constantly studying the possibility of
recycling end-of-life products.
2.3 Life Cycle Analysis (LCA)
100% Faurecia evaluates the life cycle of its key innovation projects, based on the
ISO 14040 and 14044 standards. The Group is also an active participant
of innovation
on three Life Cycle Assessment working groups led by the main industry
& development projects
associations, to engage in dialogue and establish a common methodology.
with a simplified LCA
by 2023
Industry associations
SOURCING
MANUFACTURING
• Recycled plastics & steel
• Renewable electricity
• Bio-sourced
• Energy saving, waste management
materials
DESIGN LOGISTICS
• Lightweighting: • Distribution:
use less steel optimization of ride
• Disassembling: and filling rate
use sortable • Low-carbon
steel & plastics truck fleet
USE OF
PRODUCT
Use Less • Repairing:
Lean design electronics
• Refurbishing:
Use Better
interior & seat materials
Renewables
& recycled • lifetime extension:
H2 tank
Use Longer
END OF USE
Extended life
• Recycling
30 Faurecia | 2021 Sustainability GuideKey Highlights FOCUS
• Polymer materials for • “Seat for the Planet” program
low CO2 content products Faurecia Seating has developed GREEN STEEL
A specific “sustainable materials” a program to improve industrial Producing traditional steel
product line has been created processes, materials used and releases a lot of CO2 as it
to develop new automotive- the seats’ design and reduce the requires a chemical reaction
grade polymers with dramatic CO2 footprint of its systems by 30% using coke to reduce iron
CO2 footprint reduction (target of throughout their life cycles. oxides (ore) into ferrous steel.
emissions reduction of 80% by A new technology has been
2030 for new products) through validated to directly reduce
improved production processes iron oxides using hydrogen and
and footprint, use of recyclates, only producing water. If green
biomass and CO2 sequestration. electricity is used for ore mining
and iron finishing processes,
• The RepairLab and
the carbon steel produced has
the life of products
a virtually zero CO2 footprint:
Faurecia Clarion Electronics (FCE) it is rightly called “green steel”.
offers a multi-brand repair service
throughout Europe. In 2020, FCE
launched a circular economy
offering electronic repairs in
partnerships with PSA and Renault. Key Figures
Circular
economy 2019 2020* 2025** 2030
for products
Repair Lab % of recycled
content 30% 30% 40%
in new products
CO2 emissions
-20% -46%
8.6 7.8
30,000
scope 3 controlled
(intensity) (absolute)
(Mt CO2eq)
repairs each year
* Due to the Covid-19 pandemic, the 2020 activity has been impacted by prolonged shutdowns
of factories, which generated residual energy consumption without generating turnover
** Targets based on 2019 baseline
Faurecia | 2021 Sustainability Guide 313. Investment for
sustainable technologies
Our Vision Our Approach
With its innovative solutions 3.1 Investing in hydrogen fuel cell
and investment, Faurecia is
accelerating zero-emission systems for zero-emission mobility
mobility, avoiding CO2 The Group supports automakers with complete Hydrogen Storage System
emissions and reducing integration for different vehicle architectures that match the industry
polluting emissions from all requirements with just-in-time delivery of end-of-line tested turnkey systems.
types of vehicles. The Group Its homologated tanks (350 and 700 bar) are optimized in carbon fiber to
makes significant investments reduce CO2 footprint, weight and fuel consumption.
in new technologies such as
fuel cell electric vehicles, ultra-
low emissions and continues
3.2 Providing emissions reduction systems
to develop weight-reduction for ultra-low emission mobility
solutions and other technologies
Faurecia provides after treatment systems for passenger and commercial
to reduce fuel consumption.
vehicles in order to reduce pollutant and CO2 emissions, noise and recover
Its Clean Mobility Business
wasted energy, among which: recirculation of low-pressure exhaust for
Group is a key driver of the
gasoline engines (EGR) and Electric Heated Catalyst (EHC).
transition toward sustainable
and clean mobility.
3.3 Reducing CO2 footprint for new products
By 2030, Faurecia Faurecia drives its innovation process and selects future solutions that have
will be working on its an improved CO2 footprint of at least -20% compared to incumbent products
CO2 handprint to avoid
20Mt CO2 emissions. 3.4 Relying on innovation ecosystems
Thanks to : and transformation initiatives
• Fuel cells & H2 storage • Technical partnerships with industrial companies such as ZF on safety
technologies technologies for autonomous driving, or Mahle on technologies for thermal
management of the Cockpit of the Future;
• Electronic
repair services • Joint ventures such as with Michelin with Symbio for fuel cell stacks, or with
Apptoide for an onboard app store;
• Display consumption & heat
recovery solutions • Start-ups such as the acquisition of IRYStec enabling the personalization
of the display according to the driver’s vision and the ambient light;
FOCUS
• Partnerships with academic institutions such as the French Alternative
Energies and Atomic Energy Commission (CEA) and Collège de France
for fuel cell technologies and polymers, Ecole Centrale de Nantes for
GREEN HYDROGEN composites, Technische Universität Dortmund for metal material,
Faurecia designs, develops and Supelec-Esigelec for mechatronic systems, and the Indian Institute of
produces fuel cells and tanks Science for sensors;
for hydrogen mobility. Easily • Partnerships for digital transformation such as with Accenture for
produced by the electrolysis Artificial Intelligence, Microsoft for its cloud strategy, GuardKnox
of water using electricity from for cybersecurity and Palantir for data;
renewable energies, green
hydrogen is a key lever for • Associations and think tanks such as Movin’on, the Hydrogen Council,
zero pollution and zero CO2 EPE (Entreprises pour l’Environnement) and the World Material Forum for
emission mobility. Hydrogen sustainable mobility.
also allows for the storage
of overproduced renewable R&D investments* in 2020:
€851.9m
energy, such as a wind turbine
operating at night. (4.87% of sales on average
since 2018)
*R&D spending including the depreciation and amortization of capitalized development costs.
32 Faurecia | 2021 Sustainability GuideKey Highlights
• A partnership between • A contract with Hyundai • Engaged in International
Symbio and Stellantis Motor Company environment Initiatives
Symbio, the joint venture between Faurecia was awarded a In 2021, Faurecia has joined
Faurecia and Michelin which significant contract for fuel cell Entreprises pour l’Environnement,
designs, produces, and markets electric vehicle storage systems an international think tank for
hydrogen fuel cell systems, from Hyundai Motor Company. promoting sustainable solutions
has signed a partnership with Over a four-year period, Faurecia and regulations. EPE is a
Stellantis to equip its new will equip around 1,600 Hyundai French Partner of WBCSD
zero-emission ranges of light heavy-duty trucks. (World Business Council for
commercial vehicles. Sustainable Development)
• A recognized Group’s expertise
for hydrogen storage systems
Faurecia has already started to Key Figures
manufacture hydrogen storage
systems for heavy duty trucks and Investment for
light commercial vehicle fleets for sustainable 2019 2020 2025
several international OEMs. The technologies
Group currently has the ability
to produce several thousands of Cumulative investment
2021 – 2025
€160m €1.1bn
hydrogen storage systems per
year and aims to ramp up its
production capacity.
€25m
investment in Bavans
global center of expertise
on hydrogen storage
60
high value-added jobs
(Engineers & Technicians)
fully dedicated to
hydrogen storage systems
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