2024
Valeo
Year
Sector
Automobile
ACT assessment methodology
Generic
Performance Score
Highlights of the Transition Plan: In 2021, Valeo rolled out the "CAP 50" plan, which aims to reduce its carbon footprint in accordance with SBTi criteria by 2030, with targets of -75% on its own activities (scopes 1 and 2 market-based) and -15% on its scope 3 upstream and downstream compared to 2019. The SBTi targets set by Valeo for scopes 1 and 2 by 2025 have already been achieved in 2024, and 80% of the 2030 target has also been achieved. Valeo has committed to submitting new targets by 2026. In addition, scope 3 emissions have been declining since 2019. In addition, climate issues seem to be integrated into the Group's governance. Valeo is based on two scenarios for the transformation of mobility on a global scale, built around assumptions of resilience and the evolution of mobility by 2030. Finally, the share of revenues aligned with the EU's Green Taxonomy has increased by 150% since 2022.
Areas for improvement: The exceptional reduction in downstream scope 3 emissions is the consequence of a drastic drop in sales of one of the most energy-intensive products that Valeo produces. It is therefore not the result of an improvement in the efficiency of products, nor of a conscious strategy of sobriety, but rather of a substitution of the demand suffered. Regarding the commitment of its value chain, Valeo could further define the policy of involvement of its suppliers and the objectives required of them. At the same time, downstream scope 3 accounts for more than 3/4 of Valeo's total GHG emissions, with the emissions of its products sold depending heavily on the share of electric vehicles in its customers' fleet. Given that this item is the group's main source of emissions, the lack of a defined strategy and tangible levers of action to encourage its customers to further electrify their production generates major uncertainty as to the achievement of its climate objectives. Finally, the share of CAPEX invested in low-carbon technologies is low (15% in 2024) and Valeo does not communicate its forecasts for the next 3 years.
Areas for improvement: The exceptional reduction in downstream scope 3 emissions is the consequence of a drastic drop in sales of one of the most energy-intensive products that Valeo produces. It is therefore not the result of an improvement in the efficiency of products, nor of a conscious strategy of sobriety, but rather of a substitution of the demand suffered. Regarding the commitment of its value chain, Valeo could further define the policy of involvement of its suppliers and the objectives required of them. At the same time, downstream scope 3 accounts for more than 3/4 of Valeo's total GHG emissions, with the emissions of its products sold depending heavily on the share of electric vehicles in its customers' fleet. Given that this item is the group's main source of emissions, the lack of a defined strategy and tangible levers of action to encourage its customers to further electrify their production generates major uncertainty as to the achievement of its climate objectives. Finally, the share of CAPEX invested in low-carbon technologies is low (15% in 2024) and Valeo does not communicate its forecasts for the next 3 years.
Narrative Score
Business model and strategy: Valeo is an essential link in the production chain of the automotive industry, so the group is at the heart of the challenges of decarbonizing its sector and that of Transport, one of the most emitting in France (18% of total GHG emissions). Valeo seems to be anticipating through macroeconomic scenarios and positioning itself to be a climate-competitive supplier for its suppliers in the coming years. However, Valeo does not appear to be fully aligned or a pioneer in this field. Its strategic approach is to focus on the most profitable activities through the selectivity of its order intake, which could compromise the achievement of its GHG emission reduction objectives, particularly on downstream scope 3, its main emission item.
Consistency and credibility: Valeo's commitments are ambitious and credible, thanks in particular to the support of the SBTi framework that has made it possible to define them. In addition, Valeo seems to have a well-structured governance structure to achieve its objectives. However, the decarbonisation strategy to achieve its objectives is not clearly explained and quantified, which undermines the coherence and credibility of its transition plan.
Data quality: Public information on Valeo's objectives and past emissions is of good quality. On the other hand, Valeo does not communicate enough about its strategy for the coming years or about the details of the products sold produced and their weight in the decarbonization strategy.
Reputation: No environmental controversies noted. The company is publicly committing by publishing its SBTi targets. However, Valeo does not seem to have a procedure for verifying the alignment between its objectives and those of the professional associations in which it is a member.
Risks: Half of Valo's sales are agnostic to electrification penetration rates in the sector. Valeo therefore remains highly dependent on this parameter to be able to achieve its climate objectives set out in the CAP 50 transition plan.
Consistency and credibility: Valeo's commitments are ambitious and credible, thanks in particular to the support of the SBTi framework that has made it possible to define them. In addition, Valeo seems to have a well-structured governance structure to achieve its objectives. However, the decarbonisation strategy to achieve its objectives is not clearly explained and quantified, which undermines the coherence and credibility of its transition plan.
Data quality: Public information on Valeo's objectives and past emissions is of good quality. On the other hand, Valeo does not communicate enough about its strategy for the coming years or about the details of the products sold produced and their weight in the decarbonization strategy.
Reputation: No environmental controversies noted. The company is publicly committing by publishing its SBTi targets. However, Valeo does not seem to have a procedure for verifying the alignment between its objectives and those of the professional associations in which it is a member.
Risks: Half of Valo's sales are agnostic to electrification penetration rates in the sector. Valeo therefore remains highly dependent on this parameter to be able to achieve its climate objectives set out in the CAP 50 transition plan.
Trend score
The past trend of Valeo's direct emissions seems to indicate a positive outlook. However, this represents a small share of total emissions and these results are the result of more efforts on the origin of the energy consumed than on energy efficiency gains. In terms of the performance of its products sold, Valeo is developing solutions that contribute to the reduction of vehicle emissions, in particular through the lightweighting of components and the integration of technologies to optimize consumption. However, the potential for improvement remains high and uncertainties persist, partly due to a lack of clarity on the group's R&D strategy in this area. In addition, the impact of Valeo products on emissions depends heavily on the share of electric vehicles in its customers' fleets. Given that this item is the group's main source of emissions (downstream scope 3), the lack of a defined strategy to encourage its customers to further electrify their production generates major uncertainty as to the achievement of its climate objectives.
The trend score was set at equal because there is no clear sign to anticipate a decline in Valeo's overall rating. In addition, it is likely that the score for module 1 will evolve positively in 2026 with the definition of new objectives.
The trend score was set at equal because there is no clear sign to anticipate a decline in Valeo's overall rating. In addition, it is likely that the score for module 1 will evolve positively in 2026 with the definition of new objectives.
Source
ACT Eval 2
Evaluator
CITEPA
GLOBAL SCORE
Performance score (/100)
37
Disclosure score (/100)
86
ℹ️
Narrative Score (A > E)
C
Trend Score (- = +)
=
Scores by module
#1 : best score in the sample
N/A% = module not applicable to the sectoral methodology
Target Score : 27%
Material Investment Score : 13%
Intangible Investment Score : 0%
Sold Product Performance Score : 44%
Management Score : 55%
Supplier Engagement Score : 63%
Client Engagement Score : 58%
Policy Engagement Score : 21%
Business Model Score : 33%
Indicator weight by module