Valeo – Aiming for Carbon Neutrality by 2050
In 2021, global automotive supplier Valeo committed to reaching carbon neutrality by 2050. With $21 billion in sales and 109,900 employees in 29 countries, Valeo has a presence in Troy, Auburn Hills, and Highland Park. SBN Detroit interviewed Valeo Group CAP50 Director Zobeida Gutierrez about the company’s sustainability efforts globally and its impact on Southeast Michigan. Q: Tell us about the CAP50 project. A: Championed by CEO and President Christophe Périllat, Valeo’s global decarbonization plan primarily focuses on 156 production plants. However, our actions extend to our design centers and Valeo Service activities around the world. I have worked for Valeo for thirty years in a variety of positions, including roles in quality in operations, supplier quality, project management, and special projects. I am now the global lead for Valeo’s CAP50 decarbonization plan, and I support other sustainability and circular economy initiatives within North America. Q: What are the specifics of the plan? A: This is our action plan to contribute to carbon neutrality by 2050 across the entire Valeo value chain. Valeo has set 2030 near-term CO2 reduction targets validated by SBTi (Science Based Target initiative) Scope 1 and 2 CO2 emission absolute value reduction of 75% and Scope 3 upstream and downstream reduction of 15% from our 2019 baseline. This goal translates to removing 8.1 million metric tons of greenhouse gas emissions by 2030. Since 2019, we have removed 4.4 million metric tons as of the end of 2022, confirming the effectiveness of our CAP 50 plan. The second reduction target integrates benefits realized from electrification within our product portfolio, accounting for a 45% CO2 emission reduction due to avoided emissions at third parties as compared to the 2019 CO2 emissions footprint baseline. Q: What actions are you taking to achieve this? A: Our framework includes all three scopes as well as greenhouse gas emissions. Scope 1 targets direct emissions coming from our operations. We are currently investing to get our top 100 CO2 emitting sites Energy Management ISO 50001 certified to ensure they are focusing on energy efficiency to drive a 30% reduction in energy consumption by 2030. We are also switching to LED lights, eliminating fuel, oil, and natural gas use, installing solar panels at our sites, and introducing energy-efficient equipment. Scope 2 focuses on indirect greenhouse gas emissions incurred by our energy suppliers. Our low-carbon electricity procurement supports the increase of renewable energy capacity projects. Our internal target is to secure 50% of energy coming from renewable sources by 2025 and 80% by 2030. Valeo has committed to investing $436 million to support Scope 1 and Scope 2 actions. Scope 3 involves indirect greenhouse gas emissions within our supply chain, upstream and downstream. Upstream efforts target indirect emissions incurred by our suppliers, and downstream efforts target indirect emissions incurred by the use and end-of-life of our products. For Scope 3 upstream, we launched a sustainability assessment questionnaire to evaluate our supply chain sustainability maturity level. We also align our suppliers’ greenhouse gas emissions targets with ours – a reduction of 75% for Scope 1 and Scope 2 and 15% for Scope 3 Upstream emissions vs. their baseline year. Our suppliers are also required to cascade these targets throughout their entire supply chain. Our transportation levers within Scope 3 include greener fuels, optimization of filling rates for trucks, multimodal scenarios such as replacing airfreight with train or truck, and the use of returnable and greener packaging. For Scope 3 downstream, Valeo is accelerating its technological roadmap and cementing its global leadership in the electrification market. Currently, 60% of our portfolio supports EVs. We are researching and validating greener materials and designing more energy-efficient, lighter, and greener products. No reduction in greenhouse gas emissions is too small. Every Ton of CO2 reduced counts. Even if it’s simply balancing HVAC systems in our buildings to save energy, simple things can add up to several tons of CO2 emissions reductions. Q: How is your team structured to support the goals and initiatives? A: It starts at the top. Our board of directors has set targets and reviewed achievements related to sustainability and climate change since 2016. In addition, since 2020, a director has been responsible for monitoring corporate social responsibility issues. The Chief Sustainability Officer position within Valeo aligns with the Corporate Vice President of Sustainable Development and External Affairs, who works in partnership with the Chief Technology Officer and Vice President of Strategy. Sustainability topics are therefore under the direct oversight and management of the CEO. Our human resources, health, safety, and environmental, ethics and compliance, research and development, and operations departments (purchasing, quality, projects, industrial) all contribute to Valeo’s sustainable development policy, and each business group assigns CAP 50 champions. Q: What are your biggest challenges? A: Our biggest concern – which is not unique to Valeo – is the lack of renewable energy capacity. The world needs to triple global renewable capacity from 2022 levels by 2030, which must reach 11,000 gigawatts in line with the International Energy Agency’s net zero emissions by 2050 scenario. Also, there is a need for stronger domestic policies and international support, most notably in clean energy investment in emerging and developing economies. Q: What are the biggest opportunities? A: Electrification acceleration. The introduction of electric vehicles is an opportunity, not only for cars but also for micromobility. Another opportunity is preserving our resources by creating a circular economy. Valeo has created the 4R Circle, which is our plan for Robust Design, Remanufacturing, Repair, and Recycling aimed at reducing the use of raw materials and preserving the planet’s resources by giving our products extended life and recyclability options. Q: How is the work you are doing impacting Southeast Michigan? A: In June 2022, we signed a contract with energy supplier DTE Energy to contribute 100% of renewable energy usage at our Michigan locations (Troy, Auburn Hills, and Highland Park) starting in April 2024. This contract is for 20 years, and it demonstrates Valeo’s commitment to supporting renewable energy projects
Boosting the Economy and Investing in Communities to Create Sustainable Neighborhoods in Southwest Detroit
The Southwest Detroit Business Association has been in existence for almost 70 years with a mission to support the community’s vision for a healthy, vibrant neighborhood. SBN Detroit spoke to the association’s president and CEO, Laura L. Chavez-Wazeerud-Din about the work being done with both businesses and residents to achieve this. Q: What is the impetus behind the Southwest Detroit Business Association? A: In a nutshell, we are here to dismantle barriers and bring resources to business owners and residents in Southwest Detroit. Q: What kinds of barriers? A: Southwest Detroit is a diverse community. Basic things such as navigating the City of Detroit website are difficult because it’s in English only. SDBA works to dismantle barriers by fostering community engagement and promoting economic inclusivity. We aim to create an environment that protects, promotes, and preserves local businesses and the community by addressing challenges such as economic disparities, access to capital, language barriers for a population that is almost 70% Hispanic, and enhancing the overall business ecosystem in Southwest Detroit. We also help residents and business owners navigate the new developments in the area. We are happy to see the city thrive but don’t want that to happen to the detriment of this very historic and culturally relevant community. Q: Your programs include a focus on business development. Tell me about this. A: One way we do this is through our Façade Improvement Program that’s been in existence for twenty years. Some might call this a beautification project, but I think it’s a sustainable model for our businesses. This program helps business and property owners improve their storefronts by providing grants for architectural services and reimbursement for up to 50% of construction costs. The scope of this program has grown through the years and we’ve expanded it to include multiple business corridors in Southwest Detroit, such as W. Vernor Hwy, Michigan Ave, Springwells, Mexicantown, and Junction just to name a few. It has been funded by JP Morgan Chase for the last 17 years and we are now looking for a new funder. We also have a Small Business Advocacy Center. This year we were able to leverage funding from the state of Michigan and bring $800K in equity investments to minority-owned business owners for projects and job creation. An example of this is Dunamis Clean Energy Partners. They were awarded $321K to build out a second line to produce electric charging stations. Another shining star for us this year was saving 16 food vendors that were slated for closing by the city. These vendors failed to receive certifications and pay the associated fines. This was a result of the vendors not understanding the process due to the language and communication barrier. Many didn’t even know they were slated for closing. We worked for months to ensure that not one of them closed, and that was a huge success. Overall, we work to make sure all development and infrastructure is inclusive and equitable to residents and businesses and reflects the culture of the community. An example of this is the La Joya Gardens development. This is an affordable housing mixed-use, mixed-income building that will provide 53 residential units and include retail on the first floor. It is a new building, construction began in 2023. The community named this complex via a naming contest we held. Q: Elaborate on how you work with businesses to facilitate the continuation and enhancement of a stable, economically healthy community. A: We are here to serve everyone from young start-ups to those doing business for decades. We collaborate with partners and other non-profits to bring resources and we are a small business resource hub. Our business community does not always feel safe and comfortable in seeking out resources outside of the community, so we facilitate bringing resources to them here on-site. We are a trusted advisor and conduit with a mission to help our businesses thrive and to make sure that Southwest Detroit is an integral part of the city. Q: Fill us in on your work with the Southwest Detroit Greenlink Project. A: The work we do here is making sure that we are thoughtful and strategic in terms of urbanization and population growth. The ultimate goal is to make Southwest Detroit a tourist destination. We work to get buy-in from the community and preserve the stories of the community. We have run multiple engagement meetings, open houses, surveys etc., to make sure the voice of the community is heard. Two components make up the vision of the Southwest Detroit Greenlink. The first is to complete the Greenlink and all of its sections and the second is to link the Southwest Detroit Greenlink to the other community greenways. Goals of the Greenlink include encouraging residents to walk and bike, giving tourists a welcoming place to frequent local businesses and restaurants, enhancing the economic value of residential and commercial property, and facilitating investment in homes and new businesses. Q: What are your biggest challenges? A: Funding. Also making sure people understand that this work is relevant. The City of Detroit has a lot of layers and it’s our job to secure the resources that are essential and necessary for this community to thrive. Q: What are the biggest opportunities? A: Bridging the digital divide is a big opportunity, and we have had several entrepreneurs rise up since the pandemic to help do so. Engaging with our youth is also a huge opportunity. The Center of Music & Performing Arts Southwest (COMPÁS) is a program that began in 2007 that helps bring mentorship to young people. We work with schools to make sure they understand that SWBDA is a resource. A lot of the kids in the community have been around their family businesses and in many cases these kids are helping to run the websites, and social media, and more. We are a resource to help bring the businesses into the next generation. Q: How can businesses get involved? A: Go to our website to
Wildlife Habitat Council Hosts its First Conference in Detroit 2022
On June 14 and 15, 2022 business leaders from all over the world convened at the Westin Book Cadillac to celebrate each other’s successes in conservation and biodiversity. Hosted by the Wildlife Habitat Council, this 33rd annual conference took place in Detroit for the first time. Says WHC President Margaret O’Gorman, “We chose Detroit because we work with many businesses in and around the city that are not only innovative from a business sense, but from a corporate social responsibility standpoint. These companies engage in a meaningful way with conservation and are forward-thinking when it comes to biodiversity. We celebrate that.” What is the Wildlife Habitat Council? The WHC’s mission is to promote and certify habitat conservation and management on corporate lands through partnerships and education through customized comprehensive services that help companies align conservation efforts with their business needs. It works with private-sector businesses of all sizes and landscapes of all types… from buildings like the Renaissance Center to the Marathon Refinery to a quarry or copper mine. Its goal is to integrate nature into business operations to benefit community engagement and biodiversity. When we are asked how businesses can get started, our answer is simply ‘do something.’ Our philosophy is that every act of conservation matters,” O’Gorman said. “We don’t need large tracts of land to make a positive impact. What we need is for companies to simply act for nature. That’s where the difference starts. Says Neil Hawkins, president of the Erb Family Foundation, former chief sustainability officer of Dow, and friend of the WHC, “This organization does a fantastic job of coaching companies both big and small and also assisting in doing the work.” About the WHC Conservation Conference This ‘comeback’ event – having been on a pandemic hiatus the last two years – was designed to bring companies together to celebrate accomplishments in conservation, share ideas, and shape strategies that can make a positive difference for biodiversity and business around the world. Says O’Gorman, “There were two main goals of this event. The first was to simply highlight that there is a biodiversity crisis and that the private sector has a role to play in addressing it. The second was to provide recognition for corporate employees who are implementing high-quality projects on their land.” As such, General Motors received the 2022 WHC Corporation Conservation Leadership Award, which recognizes one company’s overall excellence in conservation and signifies its exemplary commitment to biodiversity, conservation education, and alignment with global conservation objectives. This year’s Employee Engagement Award was also given to General Motors. This award recognizes the exceptional contributions of a company’s employees to their habitat and conservation education activities. Several other prestigious awards were presented. You can see the full list here. A unique addition to this year’s conference was the Makers’ Pavilion, sponsored by the Erb Family Foundation and Sustainable Business Network Detroit, in which ten Detroit-area socially and environmentally focused artisans displayed and sold their work. “This points to WHC’s focus on not only conservation projects, but social sustainability, inclusion, and equity,” said Hawkins. What it Represents for Detroit Many Detroit businesses are active with and involved in conservancy projects with the WHC. Detroit and its neighboring regions are home to 32% of WHC members. The event – typically on the East Coast – being held in Detroit this year was significant. I see this as such a great opportunity for Detroit. Hosting the WHC and companies across the globe in acknowledgment of the smart and hard conservation work being done toward biodiversity opens doors and eyes for other businesses in our area to follow suit, Hawkins shared. “Detroit city land has a long history of being taken over for industrial development and residential housing and conversely, decimating nature. Whatever we can bring back through corporate intervention is important.” WHC Work in Detroit Detroit, like most major U.S. cities, faces modern problems such as poor air and water quality, unemployment, and degraded environmental conditions resulting from rapid urbanization. Detroit companies, dedicated community groups, and the WHC are working together to combat these issues and find solutions. The local work highlighted at the conference richly illustrates this. Lionel Bradford, president of Greening Detroit, highlighted its Meyers Nursery Stormwater Retention Pond, installed at Rouge Park and designed to catch 11 acres of runoff from the site, plus hold back water equivalent to two back-to-back 100-year storms. Another substantial project featured was the Stellantis Community Environmental Engagement Program. With its $1.6 billion construction of the Mack Assembly Plant just east of the city, Stellantis committed to a multi-layer environmental program with assistance and certification from the WHC to improve air quality, reduce stormwater, support wildlife, provide educational opportunities and collaborate with community organizations. As part of this program, over 1,000 trees were planted as a green buffer; 100 rain barrels were provided to residents to save water and reduce water runoff; curriculum and programming through the WHC were delivered to local schools, and significant environmental installations were developed at nearby Chandler Park. A collaborative program between Friends of the River Rouge and The Sierra Club called the Rain Gardens to the Rescue Program was presented, whereby 80 rain gardens were installed in homes to reduce stormwater runoff. This organically led to residents becoming much more involved – to the extent of some purchasing nearby lots to create additional rain gardens and community gathering spots. Said O’Gorman, “The number of corporations intersecting with biodiversity shows that the spirit of conservation is alive and well in 2022. We celebrate the work being done because when nature is healthy and our ecosystem is restored, everything flows from there.” Be sure to subscribe to our newsletter for regular updates on sustainable business practices in and around Detroit.
