Low-carbon technologies, the circular economy and talent...

Our Holistic Approach to Sustainable Development


Christophe Périllat Valeo Chief Executive Officer

For over 20 years, our choices in terms of technology, governance, and environmental and social management have illustrated our commitment to tackling sustainable development challenges in a holistic way. The automotive industry is responsible for almost 20% of CO2 emissions worldwide, making decarbonization one of the key challenges we face today. And we aim to address the issue in a broad way that goes beyond vehicle use and involves our entire ecosystem – our plants, employees, suppliers and partners.

Christophe Périllat: "We need
to accelerate the transition to 100% zero emissions cars"

A holistic approach involving our entire ecosystem

Our choices in terms of technology, governance, and environmental and social management illustrate our commitment to tackling sustainable development challenges in a holistic way. Our priority is to involve our entire ecosystem – plants, employees, suppliers and partners – in the process of decarbonizing our activities.

A pathway set in motion over 20 years ago

Since 2009, Valeo has placed reducing CO2 emissions at the heart of its growth strategy. This initiative forms part of a pathway dating back more than 20 years, on which the Group has continuously expanded its sustainable development work, positioning it today as a leading player in the industry.

"By setting up the Sustainable Development Department in 2010, Valeo illustrated its commitment to tackling these issues in a holistic way. The Group has since implemented a sustainable development policy and rolled out tools to measure its performance. Our sustainable development work steers our trajectory according to changing environmental and social requirements. We will continue to strengthen our work in this area each year, across the entire value chain and globally, region by region." Jean-Luc Di Paola Galloni Vice President, Sustainable Development And External Affairs


Valeo publishes its first environmental report


Valeo signs the United Nations Global Compact 


Jacques Aschenbroich, then Valeo's Chief Executive Officer, makes CO2 emissions reduction a strategic focus and sets up the Sustainable Development Department


Valeo publishes its first sustainable development report


Valeo joins the “DJSI World” Dow Jones Sustainability Index in recognition of its sustainable development strategy and performance and its transparency in this area


Valeo is rated AAA by ESG rating agency MSCI and ranks first among auto suppliers


Valeo unveils its "CAP 50" plan, under which it commits to contributing to carbon neutrality by 2050


Valeo is one of the first tier-one automotive suppliers to publish a climate report. Also this year, the Group takes part in COP27


Valeo launches the first Circular Electronics Lab in Nevers, France


Valeo launches Canopy, its first product "eco-designed" to reduce CO2 emissions


Valeo takes part in COP28


Our solutions for cleaner, safer mobility

Valeo works day in, day out to develop innovative solutions for more sustainable mobility. Some 80% of a product’s environmental impact is determined in the design phase, which is why Valeo factors in this consideration from the earliest stages of its projects. Its approach is built on two pillars:

Decarbonizing mobility, by implementing the CAP 50 strategic plan, developing innovative technologies aimed at reducing CO2 emissions and improving operational eco-efficiency.

Preserving natural resources through the circular economy and sustainable water and waste management.

Decarbonizing mobility

The CAP 50 plan: our roadmap to decarbonization

In what can be considered both a reiteration and an acceleration of the strategic positioning set out over a decade ago, Valeo aims to contribute to carbon neutrality by 2050, while continuing to expand its range of electrification technologies. Based on the CAP 50 plan unveiled in 2021, this ambitious strategy is coupled with a particularly challenging intermediate target for 2030.

By 2030, Valeo will reduce greenhouse gas (GHG) emissions from operating activities (Scopes 1 and 2 of the Greenhouse Gas Protocol) by 75% and upstream and downstream (Scope 3) emissions by 15%, in absolute terms, compared with its 2019 emissions. Its technologies will enable third parties to directly avoid 13.6 Mt CO2eq. of GHG emissions, equivalent to 27% of the Group's emissions (2019 baseline).

The scale of this challenge matches that faced by the road transportation sector as a whole, which alone is responsible for 18% of global carbon emissions. In response to the climate emergency, we need to go much further, and we need to act now, by reducing the Group's carbon footprint both at its sites and across its entire value chain.


Reducing our carbon footprint at every stage of the value chain

In addition to reducing the carbon footprint of its own operations, Valeo works to reduce greenhouse gas (GHG) emissions at every stage of its products' lifecycle, from extraction and processing of materials by its suppliers to the end-user of its technologies on board vehicles, as well as end-of-life processing. Valeo sets its objectives based on the GHG Protocol framework.

By 2030, Valeo is committed to reducing its GHG emissions from operating activities (Scopes 1 and 2 of the GHG Protocol) by 75% and upstream and downstream emissions (Scope 3) by 15%, in absolute terms, compared with its 2019 emissions. The Group has also pledged to ensure that its technologies enable third parties to directly avoid 13.6 MtCO2eq. of emissions (compared to 2019), equivalent to 27% of total 2019 emissions.


Supply chain

Involving our suppliers in our decarbonization
goals and preserving resources

Lever 1

Suppliers are selected based on their decarbonization goals, aligned with Valeo's, and supported throughout their trajectory

Lever 2

Use of innovative or recycled materials

Scope 3 upstream

GHG emissions generated before the production phase, including extraction and transformation of raw materials, component manufacturing processes at suppliers, and transport and logistics to get to Valeo sites.

2030 Objective:

-15% emissions*



> 2 billion

components enter Valeo factories every day


Reducing direct and indirect
emissions from the manufacturing of Valeo
products and systems

Lever 1

Transforming our 100 highest emitting sites into high-energy-efficiency sites by 2030

Lever 2

Developing the use of low-carbon or renewable energies: solar panels, wind energy

Scopes 1 and 2

Direct and indirect GHG emissions related to production, including manufacturing, lighting and heating, and energy consumption processes. These relate to all Group sites: factories, R&D centers, distribution platforms and headquarters.

2030 Objective:

-75% emissions*


million investment over 10 years for more than 200 sites


of energy consumption will be low-carbon by 2030


Optimizing the use phase of Valeo products
throughout the lifespan of a vehicle
and beyond

Lever 1

Accelerating the development of electrification technologies to contribute to the decarbonization of mobility

Lever 2

Developing eco-designed products: recycled materials, weight reduction and recyclable packaging

Lever 3

Increasing the energy efficiency of our products

Lever 4

Favoring less carbon-intensive modes of transportation

Scope 3 downstream

GHG emissions related to the use of Valeo technologies in vehicles until the end of their life

2030 Objective:

-15% emissions*

(integrating the electrification benefits of Valeo technologies)

1 in 3

1 in 3 new cars worldwide is equipped with Valeo electrification technology to reduce CO2 emissions

8 M

products leave Valeo factories every day

Third-party emissions avoided thanks to Valeo Technologies

Avoided emissions refer the difference between GHG emissions in a baseline scenario and those in a scenario using a decarbonization solution. This means considering the impact of Valeo technologies on the vehicle as a whole, not just the component.

2030 Objectives:

13.6 million metric tons

of GHG emissions avoided by third parties, directly attributable to Valeo technologies, especially those enabling electrification. This is equivalent to 27% of Valeo's 2019 emissions.

Valeo designs robust and easily repairable products to maximize their lifespan. Their design also minimizes operations needed for recycling or reuse, with a focus on products' second life.

*In absolute terms relative to 2019 carbon footprint
Skip the animation

Aims of the CAP 50 plan

-50 MtCO2eq. emissions

CAP 50 aims to reduce Valeo's greenhouse gas emissions from 50 Mt (2019 baseline) to zero by 2050.

Targets for 2050

Valeo has set itself two targets for 2050: at the global level, contribute to carbon neutrality across all of its operating activities and its entire supply chain and, in Europe, also in the product use phase.

Technological solutions driving the automotive industry's transformation

The mobility of the future will be electric and affordable. Thanks to the investments made over the past decade, our product portfolio is ready for this challenge. We cover all segments and uses, from affordable hybrid solutions to the most powerful all-electric powertrain systems. Our businesses are therefore driving the automotive industry's transformation.

Each of our innovations is underpinned by one key aim – reducing CO2 emissions and energy consumption in the mobility sector. A global leader in its markets, Valeo offers a comprehensive range of low- and high-voltage electrification technology for electric vehicles, as well as thermal management systems, which are essential for developing comfortable, high-performance electric vehicles with an attractive travel range. As well as cars, Valeo's technologies can also be used in the electrification of all forms of mobility, including two- and three-wheelers, light urban quadricycles, delivery droids and autonomous shuttles.

The Design for Environment approach also aims to minimize the use of resources, and to factor in the circular economy through prerequisites such as ensuring that products can be dismantled.

Valeo applies its "Design for Environment" eco-design approach to all of its product ranges. The Group is committed to reducing CO2 emissions throughout its products’ lifecycle, right from the initial product design phase. Upstream, this means increasing the proportion of recycled materials used, as well as developing innovative materials. Another method is to make its products lighter, which reduces both the carbon footprint of the materials used and the emissions generated during vehicle use.

Decarbonization concerns the entire value chain. In order to reduce upstream Scope 3 emissions, Valeo sets objectives for all its suppliers in line with its own commitments. It also helps them to improve their sustainable development practices. To find out more, visit our Value Chain Commitments page.

Valeo's innovations help to reduce the Group's carbon footprint, but the benefits can be felt far beyond the value chain. By 2030, based on the trend toward vehicle electrification, Valeo is committed to ensuring that its technologies will directly help to avoid 13.6 million MtCO2eq. emissions per year (compared with the 2019 baseline).


new cars worldwide is fitted with a Valeo electric solution that helps to reduce CO2 emissions.

More than 60%

of our sales are derived from technology contributing to the reduction of CO2 emissions

Valeo launches Canopy

the first wiper blade designed to reduce CO2 emissions

Prioritizing eco-efficiency at Valeo's sites

We are constantly striving to reduce the consumption of energy and resources during the production phase. To do so, we systematically analyze our processes and roll out initiatives across all our sites to enhance building energy performance (by installing LED lighting, insulation and heat recovery systems, for example) and improve production processes.

Thanks to these gradual upgrades, the Group's 100 most GHG-intensive facilities will be highly energy efficient by 2030.

This approach covers all of our sites. Here are some examples:

Valeo sites involved in this approach

Shenyang, China

Scope 1 and 2: Low carbon energy self production

Solar Panel


3 444 tCO2eq. per year

Penang, Malaysia

Scope 1 and 2: Low carbon energy self production

Solar Panel


2 920 tCO2eq. per year

Wuhan, China

Scope 1 and 2: Low carbon energy self production

Solar Panel


1 492 tCO2eq. per year

Nanjing, China

Scope 1: Energy efficiency and gas elimination

HTT RX Gas Process elimination


377 tCO2eq. per year

Daegu, Korea, South

Scope 1: Energy efficiency and gas elimination

Compressed air/leakages fixed


371 tCO2eq. per year

Chrzanow, Poland

Scope 1: Energy efficiency and gas elimination

Controlled air flow on injection machine


246 tCO2eq. per year

Chatellerault, France

Scope 1: Energy efficiency and gas elimination

Calories recovery compressor


38 tCO2eq. per year

Fujioka, Japan

Scope 1 and 2: Low Carbon Energy

16 Heat pumps installed to cover 4 Valeo buildings


3 956 tCO2eq. per year

San Luis Potosi, Mexico

Scope 1 and 2: Low Carbon Energy

Nitrogen Generator-Green Energy


176 tCO2eq. per year

Ciudad Juarez, Mexico

Scope 1 and 2: Low Carbon Energy

Paint process optimization


230 tCO2eq. per year

Fischbach, Germany

Scope 1 and 2: Low Carbon Energy

Replacing oil heating with biomass heating


364 tCO2eq. per year

Bad Rodach, Germany

Scope 1 and 2: Low carbon energy self production

Solar Panel


884 tCO2eq. per year

Chonburi, Thailand

Scope 1 and 2: Low carbon energy self production

Solar Panel


207 tCO2eq. per year

Sanand, India

Scope 1 and 2: Low carbon energy self production

Solar Panel


438 tCO2eq. per year

Wenling, China

Scope 1: Energy efficiency and gas elimination

Inventory Air compressor installation


224 tCO2eq. per year

Seymour, USA

Scope 1: Energy efficiency and gas elimination

Installation of 6 Elspec Units


1 750 tCO2eq. per year

Preserving natural resources

Accelerating the circular economy

While electrification is a key response when it comes to reducing CO2 emissions in the automotive industry, the circular economy, which encourages reuse, aims to optimize the use of raw materials and preserve the planet's resources. 

One demonstration of Valeo's commitment to accelerating the circular economy is its 4R plan, which is designed to maintain the value of assembled finished products for as long as possible and preserve natural resources as effectively as possible.


Valeo - The 4R


To maximize product lifespan

Identify wear parts to anticipate and facilitate repair and remanufacturing requirements

Identify the most robust part of each product so that it can be reused at the end of the product's life


As good as new

Refurbish reusable products, giving them a warranty of at least two years

Thanks to more than 40 years of expertise, Valeo has the capacity to remanufacture more than one million products per year, and aims to double this figure by the end of the decade


Restore dysfunctional products to their original condition

Repair or replace damaged parts to restore the product to its original condition

An entire lab dedicated to electronic component repairs


Work with our suppliers to set up collection and recovery circuits

Valeo is a member of the Circular Plastics Alliance aimed at boosting the market for recycled plastics

Set up a recycling circuit for rare earths (Magnolia project)

Christophe Périllat - IAA MOBILITY 2023

Decarbonization and circular economy
in the mobility industry:
a collective responsibility to accelerate further

from the outset

The Design for Environment approach also aims to minimize the use of resources, and to factor in the circular economy through prerequisites such as ensuring that products can be dismantled.

Valeo believes that each part or component must be designed to last as long as possible in order to optimize its life span. This means that products must be able to be easily dismantled for repair or recycling. 

In 2022, Valeo launched the co-development of a rare-earth-free motor, in collaboration with Renault. As well as reducing its carbon footprint by 30%, this innovation is a major step forward in preserving critical elements, such as neodymium and dysprosium, traditionally used in permanent-magnet motors for electric vehicles.

Reducing the use of rare earths

Valeo and Renault join forces to create an unprecedented rare-earth-free electric motor reaching 200 kW

Disciplined water and waste management

  • 49% reduction in total water consumption as a proportion of sales between 2008 and 2022
  • 6% reduction in total water consumption in absolute terms between 2019 and 2022
  • 88% of waste from Valeo's activities is now either recovered or recycled.

    Most of our waste results from the use of metals or the consumption of packaging. 90% of it is non-hazardous, which means it is easy to recycle.

  • 2025 Residual direct water withdrawal for industrial use to cease

“We design technology that defines a better future and that’s more than just automotive. We develop mobility that’s cleaner and safer, and includes cars, bikes, three-wheelers and so much more.” Geoffrey Bouquot, Valeo CTO & SVP Strategy at @CES Unveiled in Paris #mobility https://t.co/JZlc1iLniW

Corporate citizenship and social commitments

Valeo believes that employee progress goes hand in hand with financial performance. It believes that the trust of its employees, who are present in 29 countries and represent more than 140 nationalities, is an essential asset. That's why it has made firm commitments in terms of diversity, equity and inclusion, health and safety, quality of life at work, and employee engagement.

In addition to these pledges to its employees, Valeo is committed to its value chain, local ecosystems and populations in all the countries where the Group is present. For example, it supports suppliers in their sustainable development practices, develops partnerships with schools and universities, supports local research and participates in charity and educational programs.


Non-financial performance

Thanks to its transparent initiatives and rigorous reporting, Valeo has been positioned among the best-rated automotive suppliers by the main ESG rating agencies for a number of years.

Since its creation 13 years ago, Valeo’s Sustainable Development Department has worked tirelessly to continually improve the Group’s performance and transparency on environmental, human resources and social issues, making Valeo one of the leading automotive suppliers in terms of non-financial performance.

In 2022, Valeo was awarded an "A" score by CDP Climate (Carbon Disclosure Project), in recognition of the Group's performance on climate change.


In 2022, Valeo was ranked no.1 among auto component suppliers by MSCI ESG with an AAA "leader" rating

#1 in the automotive industry

(excl. Tyre companies)

  • cac40
  • global esg
  • esg

Most widely represented automotive supplier in ESG indexes

In addition to these ratings, Valeo's shares are included in most ESG stock market indices.

Our Sustainable Development publications