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
Huntington Place Detroit – Green and Working Toward Greener
What was Cobo Hall opened its doors as one of the nation’s first mega-conference centers in 1960 and has served as a venue for sports teams, concerts, speakers, and more. In fact, on June 23, 1963, following the Detroit Walk to Freedom civil rights march, Martin Luther King Jr. delivered the original version of his “I Have a Dream” speech at Cobo Arena. Having under gone a $279 million renovation in 2015, and several name and sponsorship changes since, Huntington Place Convention Center now features a 30,000-square-foot, three-story glass atrium overlooking the Detroit riverfront, the largest ballroom in Michigan at 40,000 square feet, and 723,000 square feet of exhibit space. That’s a lot of space to maintain, and sustain. The facility also is the largest and only convention center in the world certified under LEED v4.1 Operations and Maintenance (O+M), as well as Michigan’s largest certified green LEED Building. The facility contributes 9.8 tons of unserved food to Forgotten Harvest and sends 66 tons of compost annually to Hammond Farms and also has 110 recycle bins, 10,000 square feet of green roof, five beehives that retain 10,000 bees, and numerous awards for its green efforts. How did it get here, and what can other businesses and nonprofits glean from their work in this area? Cedric Turnbore, director of operations and chair of the Huntington Place Green Committee, shares his insights on where to begin when approaching a sustainability program, the why behind it, and some examples of initiatives Huntington has put into place to date. WHERE SHOULD A BUSINESS START? #1: Form a Committee “In 2011, we developed the Green Team, a committee that includes one person from each department in the office building,” Turnbore says. “We meet regularly to review programs and goals.” The center also has a 5-person executive board established by the state of Michigan to oversee its sustainability efforts. “The board acts as our governing body that oversees and approves our programs. We work closely with them to set and manage budgets and ensure that initiatives are in the best interest of the facility, the employees, our guests, and the city.” #2: Set Attainable Goals “Start with the low-hanging fruit,” Turnbore said. “Things you can achieve in the near-term that will help to gain traction for the long haul.” Initial goals of the Green Committee in 2011 included growing the committee with representation from each department and vendor partner and organizing operations around the Green Venues Michigan certification. Since the United Nations set for 17 Sustainable Development Goals in 2015, Huntington Place has patterned its work around them. When the TCF Center Green Committee reconvened in September 2021 after a COVID-related hiatus, those goals were front and center. “This will be pivotal year for our sustainability program,” Karen Totaro, general manager TCF Center/ASM Global, said at the time. Our work in the center is to contribute to the United Nations Sustainable Development Goals and re-certify as the largest LEED venue in Michigan will be front and center for our efforts in 2022. Turnbore said so far the center has been able to implement projects contributing toward 13 of the 17 goals, and the work will continue. #3: It Takes Green to Go Green “Businesses must commit to funding for the necessary equipment, tools, and programming,” says Turnbore. “That’s why we have a board … to govern and approve our spends and ensure that those spends have the desired outcome – a return on the investment.” Some examples of investments Huntington Place has made include 110 recycling stations, food court waste diversion receptacles, visitor education posters, a green roof, receptacles for compost collection, trash compactors, a cardboard baler, and a green website page for visitor information. #4: It’s a Marathon, Not a Sprint “When we first launched our efforts 11 years ago, many individuals thought it was a fad. That the sustainability work would ‘go away. You need to have a long-term plan to ensure that it never goes away and be steadfast in your efforts every single day. It’s as simple as that,” says Turnbore. #5: Educate! According to Turnbore, for their efforts to be impactful, it’s imperative to continually educate employees, vendors, and visitors on the how and the why behind them. To that end, every new employee is trained on conservation and sustainability during onboarding. Information is posted throughout the facility. The sales and events team with vendors toward making every event as green as possible. Vendors are offered a post-event sustainability report outlining diversion data, compost data, and best practices observed during the event. Further, the team tours sustainability partner facilities to observe first-hand how their efforts are working. The committee recently toured Hammond Farms in East Lansing, which composts more than 66 tons of unused food from Huntington Place events annually. WHAT EXAMPLES DOES HUNTINGTON PLACE HAVE IN PLACE? According to Turnbore, Huntington Place’s four biggest priorities are waste diversion, energy savings, food waste management, and employee education. Here are just some of the green initiatives currently in place: Sitting off the Detroit River, Huntington Place HVAC system pumps gray water from the Detroit River through chillers that then send the cool water to various air handlers, providing cooling to zoned areas in the center. This system uses considerably less electricity than conventional air conditioning units. The Huntington Place $279 million facility upgrade incorporates numerous green building components including low-flow restroom and kitchen equipment, energy-efficient HVAC equipment, and a living green roof. Centerplate, the Huntington Place food and beverage provider collects prepared food that has not been served for pick up by Forgotten Harvest, a local nonprofit that delivers the food to pantries, soup kitchens, and shelters throughout Southeastern Michigan. Materials left by events are donated to local agencies for reuse and upcycling. Exhibit halls are equipped with induction lighting that uses 50% less electricity. All main hall lighting and heat/cool settings are computer programmed and managed. Escalators in the building are energy efficient, Kone EcoMod units. Escalators operate based on occupancy and
