2024
Nexans
Year
Sector
Industrie légère
ACT assessment methodology
Generic
Performance Score
Highlights of the transition plan: Nexans has set a target of a 46% reduction in 2030 vs. 2019 on scopes 1 &2, according to the market-based approach. This objective has already been achieved at 82%. Nexans reports in its URD projections related to the locked scope 1 emissions of its investments, which is a good practice. For scope 3, its reduction target is 30% by 2030. This target has already been achieved and exceeded in 2024. The objective of redirecting all R&D spending on low-carbon electrification in 2024 has been achieved. In addition, Nexans is implementing numerous actions concerning its production of recycled copper and aluminum. These actions are quantified, associated with quantified objectives, and accompanied by funding data. Nexans has profoundly transformed its business model over the past five years. Between 2019 and 2022, this realignment resulted in a 76% reduction in the number of customers and a 30% reduction in the number of products, while increasing EBITDA by 84% and reducing its emissions by 30% between 2019 and 2023.In addition, Nexans is actively committed to the circular economy by developing recycling capacities, with well-defined objectives.
Areas for improvement identified: The scope 3 reduction target has already been achieved, thanks to a very strong reduction in emissions related to the use of products sold (-41% between 2024 and 2019), which represents 94% of total emissions. This reduction, which could be due to specific actions as well as external factors, has not been analyzed by Nexans in its publications. Some actions are not accompanied by figures (budget, resources, SMART objectives). Nexans seems to be acting on the use phase of its products (93% of total emissions), in particular by reducing electricity losses due to the joule effect in cables. However, the DEU does not mention any ecodesign actions concerning the use phase, which makes the reduction of Scope 11 emissions difficult to interpret. The decarbonization plan for emissions related to the use of products sold is vague and seems to be based only on reducing the emission factors of electricity in countries. The results of the risk analysis are only qualitative for the moment. Regarding commitment to the value chain, Nexans could go a step further by asking for quantitative objectives from the upstream and downstream players of its activity. There are no emission reduction targets imposed on suppliers, nor is there a requirement to publicly report on their emissions.
Areas for improvement identified: The scope 3 reduction target has already been achieved, thanks to a very strong reduction in emissions related to the use of products sold (-41% between 2024 and 2019), which represents 94% of total emissions. This reduction, which could be due to specific actions as well as external factors, has not been analyzed by Nexans in its publications. Some actions are not accompanied by figures (budget, resources, SMART objectives). Nexans seems to be acting on the use phase of its products (93% of total emissions), in particular by reducing electricity losses due to the joule effect in cables. However, the DEU does not mention any ecodesign actions concerning the use phase, which makes the reduction of Scope 11 emissions difficult to interpret. The decarbonization plan for emissions related to the use of products sold is vague and seems to be based only on reducing the emission factors of electricity in countries. The results of the risk analysis are only qualitative for the moment. Regarding commitment to the value chain, Nexans could go a step further by asking for quantitative objectives from the upstream and downstream players of its activity. There are no emission reduction targets imposed on suppliers, nor is there a requirement to publicly report on their emissions.
Narrative Score
Business model and strategy: Nexans has repositioned its model around sustainable electrification, with a strategy clearly aligned with the energy transition. The "Winds of Change" plan translates this orientation into coherent investments, non-strategic asset disposals and strong climate governance. Although the company has SBTi objectives and a stated ambition, it has not yet achieved a role as a sector reference.
Consistency and credibility: The internal alignment between objectives, means and actions is remarkable: governance, investments and decarbonization levers are consistent with the roadmap. No sign of contradiction was noted, including externally. The strategy is credible: SBTi validated, without dependence on carbon offsetting, and with a very limited level of locked emissions.
Data quality: The data published is detailed, transparent, and compliant with the GHG Protocol. Coverage is almost complete (99% of emissions), and the methodologies are well documented. However, the extensive use of estimates in some scope 3 categories introduces minor uncertainties in overall robustness.
Reputation: There are no recent environmental incidents. However, the history of antitrust sanctions raises questions about governance. Nexans has since taken concrete measures to remediate, but the speed of past reaction could be questioned.
Risks: Residual exposure to downstream emissions is controlled, and Nexans actively invests in low-carbon activities. Risks are well identified, monitored and partially covered by adaptation plans. The company is showing serious anticipation on critical issues, although some room for improvement remains on long-term resilience.
Consistency and credibility: The internal alignment between objectives, means and actions is remarkable: governance, investments and decarbonization levers are consistent with the roadmap. No sign of contradiction was noted, including externally. The strategy is credible: SBTi validated, without dependence on carbon offsetting, and with a very limited level of locked emissions.
Data quality: The data published is detailed, transparent, and compliant with the GHG Protocol. Coverage is almost complete (99% of emissions), and the methodologies are well documented. However, the extensive use of estimates in some scope 3 categories introduces minor uncertainties in overall robustness.
Reputation: There are no recent environmental incidents. However, the history of antitrust sanctions raises questions about governance. Nexans has since taken concrete measures to remediate, but the speed of past reaction could be questioned.
Risks: Residual exposure to downstream emissions is controlled, and Nexans actively invests in low-carbon activities. Risks are well identified, monitored and partially covered by adaptation plans. The company is showing serious anticipation on critical issues, although some room for improvement remains on long-term resilience.
Trend score
It was noted a strategic refocusing on low-carbon electrification as well as ambitious SBTi targets. Nexans' ESG governance is solid, the exit of non-electrification activities is planned and Nexans is deploying low-carbon business models (copper recycling). However, Nexans is characterized by a dependence on virgin raw materials and subject to copper supply risks. Upstream environmental impacts (pollution, biodiversity in particular) are critical and the share of circular products is still limited. Scope 3 is largely dependent on exogenous factors, such as the carbon intensities of Nexans' customers' electricity mixes. Thus, Nexans' low-carbon trajectory is credible and improving, despite upstream challenges that remain to be met. The future direction is favourable.
Source
ACT Eval 2
Evaluator
CITEPA
GLOBAL SCORE
Performance score (/100)
52
Disclosure score (/100)
98
ℹ️
Narrative Score (A > E)
B
Trend Score (- = +)
=
Scores by module
#1 : best score in the sample
N/A% = module not applicable to the sectoral methodology
Target Score : 89%
Material Investment Score : 34%
Intangible Investment Score : 50%
Sold Product Performance Score : 52%
Management Score : 70%
Supplier Engagement Score : 35%
Client Engagement Score : 43%
Policy Engagement Score : 26%
Business Model Score : 23%
Indicator weight by module