Renault 

The Renault group is one of the main French car manufacturers. Founded
in 1899 by brothers Louis, Marcel and Fernand Renault, it specializes in passenger
cars and light commercial vehicles. For more than 10 years, the brand, recognized
by its famous diamond logo, has been the leading brand of commercial vehicles
in Europe. The group currently has 3 brands: Renault, Dacia and Renault Samsung
Motors (Audrey, 2020). It became the world's third largest automotive group in
2011 through its partnership with the Japanese manufacturer Nissan. 
The Group is operating worldwide (in 134 countries) in the markets for
personal use vehicles (city cars, family cars and SUVs), commercial vehicles and
trucks (Bible des marques, 2022). In the first half of 2022, the Group sold almost
one million personal and commercial vehicles with revenues of 21,121 million eu-
ros (Emme, 2022). Its shares are listed in compartment A of Euronext Paris and
are included in the CAC 40 index. 
The choice of this world-renowned company was made following its various com-
mitments. In order to support the justification of our choice, many figures repre-
senting their commitments are provided.  
Firstly, in 2021, after a few particularly catastrophic years, Renault introduced Re-
naulution, its restructuring strategy. It implies the launch of 24 new models
within 5 years, and a production of 90% electric motorization by 2030. This strat-
egy is both environmental and societal. In addition to these commitments in
terms of sustainable development, Renault Group is committed to acting in favor
of the climate and the environment (Renault Group, 2022). 
Despite a challenging political context that affects its supply of materials, the Re-
nault group is not giving up on its objectives. In fact, it is the first generalist man-
ufacturer to make the choice of 100% electric. Since 2012, Renault and Dacia
have sold more than 500,000 electric vehicles, making a significant contribution
to the reduction of emissions from use (Renault Group, 2022).  
In addition, the Group's initial results regarding its energy efficiency approach im-
plemented a year ago (between 2021 and 2022) are positive. The Group has al-
ready reduced its energy consumption at its sites in France by nearly 10% (includ-
ing 13% for gas). This 10% reduction represents approximately the annual con-
sumption of a factory (ABC Bourse, 2022). 
In spite of the fact that Renault remains one of the leading manufacturers of elec-
tric vehicles, the group has nevertheless accumulated strategic errors. One year
after its launch, Renault's small electric city car is a commercial flop (Le Parisien,
2020). The brand with the lozenge has sold five times less than expected. This
particular model of the group is just one example of their multiple failures on
electric models. Therefore, the French company is an interesting case to study to
understand which were their mistakes. 
 
Materiality analysis  
A materiality analysis is a method to identify and prioritize the issues that are
most important to an organization and its stakeholders. Indeed, the goal is to find
the issues and challenges which represent the most crucial elements to the firm
and to every agent who has a stake in it. Hence, this assessment will then provide
a guide for the company’s strategy. Here, we can see that Renault has to focus on
reducing its carbon emissions and decarbonize its vehicles. The organization also
needs to comply with government restrictions and to satisfy its customers.  
By observing these elements, we can say that the most important challenge for
Renault is the conversion to electricity for its vehicles. The firm stated a few years
ago that its goal was to be the first car manufacturer to mass-market zero-emis-
sion vehicles at the price of internal combustion vehicles. This challenge would
bring a lot of value for the firm, as well as for the stakeholders. Firstly, by doing
so, Renault would keep its share in the market by being a leader and an actor of
environmental change, as well as a figure of progress. It would also anticipate the
demand and comply with the growing legal restrictions. On the other hand, this
transition would represent reduced nuisances for stakeholders, through the ab-
sence of polluting emissions and noise pollution, as well as saving for consumers
in the longer run.  
 
How to create sustainable values: 
Make matrix of sustainable Value creation  
X axis: Internal (nurturing internal capacities) / External (Engaging externals con-
stituents) 
Y axis: Today / Tomorrow  
 
Présentation de Renault/Introduction 
The Renault group is one of the main French car manufacturers. Founded
in 1899 by the brothers Louis, Marcel and Fernand Renault, it specializes in pas-
senger cars and light commercial vehicles. For more than 10 years, the brand
with the diamond has been the leading brand of commercial vehicles in Europe.
The group currently has 3 brands: Renault, Dacia and Renault Samsung Motors
(Audrey, 2020). It became the world's third largest automotive group in 2011
through its partnership with the Japanese manufacturer Nissan. It is the first gen-
eralist manufacturer to make the choice of 100% electric. 
The Group is operating worldwide (in 134 countries) in the markets for personal
use vehicles (city cars, family cars and SUVs), commercial vehicles and trucks
(Bible des marques, 2022). In the first half of 2022, the Group sold nearly one mil-
lion personal and commercial vehicles with revenues of 21,121 million euros
(Emme, 2022). Since 2012, Renault and Dacia have sold more than 500,000 elec-
tric vehicles, making a significant contribution to the reduction of emissions from
use. Its shares are listed on compartment A of Euronext Paris and are included in
the CAC 40 index. 
 
 
CSR Commitments of Renault 
Renault's sustainable strategy is called "Renaulution". This project is based on 3
mainstays: 
- Carbon neutrality 
- Security 
- Inclusion 
Renault aims to be carbon neutral in Europe by 2040 and carbon neutral world-
wide by 2050. They want to considerably reduce its emissions throughout the ve-
hicle's life cycle. From the production stage until the end-of-life stage by recycling
components and batteries.  Finally, they want to become a 100% electric brand
by 2030.  
Concerning the safety mainstay, Renault wants to improve the security of their
cars, by developing several devices to prevent and rescue. Like the "safety
coach", "safe guardian" or the “Rescue code”. 
Lastly, Renault is working on three areas of inclusion: 
- employability 
- Fighting for parity 
- And creating solidarity solutions to develop mobility solutions 
 
In order to reach its objective of being neutral carbon, the group has created the
Climate Project until 2030. It is divided into 9 major actions, here, displayed.  
 
In contrast to what Renault is displaying, here we can see the rates given to Re-
nault for its CSR policy by the rating agencies. Sustainalitycs places Renault in the
top 20 with a “Medium Risk” rate, contrary to Moody’s who places the brand in
the top 2. So, we can conclude that Renault CSR has a discrepant score. 
  
 
Renault’s Stakeholders slide 3: 
Main Stakeholders 
So Now let’s talk about the main stakeholders is the who may be affected by the de-
cisions of Renault or can influence the implementation of Renault decisions. We
have distinguished 5 main stakeholders.  
In a first we distinguish employees as stakeholders. Mainly employees own
shares. As at 31 December 2021, the Renault Actions employee mutual fund
holds 3.61% of the capital of Renault SA.  The employee being part of mutual
fund exercise their individual voting rights.   
Then consumers can be impacted or influence Renauls' decisions. For example,
in 2022, more than 2,000 consumers just in the Ile-de-France region filed a col-
lective lawsuit against Renault "Motorgate" because of a production failure of the
car’s engine that put them in danger or in an accident. (Motorgate). Following
this renauld pressure took action. Renault claims to have "fully or partially taken
over more than 90% of identified cases" through its distribution network and its
after-sales service. 
Suppliers are impacted by the business as they want regular orders and one-
time payments. Moreover, Renault depends on its suppliers.  
Governments represent important stakeholders, as they collect taxes from the
company and they regulate the automobile industry, for example through fuel ef-
ficiency and safety standards for cars  
And finally, the shareholders are one of the important stakeholders,  
 
Media, NGO, Société civil. (Electricity car talk about it ), civil society,   
Add urban mobility organisations to stakeholders / anti-car organi-
zations 
Also maybe: discuss possible car lobbies  
Look to value chain: Producers --> consummers  
Always do What they do, what they say:   
Internal/External/ Direct And Indirect  Skate holders divisions (Competitors in-
clued in stakehoders ? ) 
Who are the suppliers, how the produce, who are they 
Commitments, change expected, change – Stake holders Matrix – mapping  
Revinitiv pour les sharaholders  
 
 
Risk And Issues in the industry 
 
Types of issues: Economic, Environnement, social  

• Business & Environment 

As a major multinational company, Renault is exposed to a wide range of external factors,
on a global scale. In its recent history, several challenges and controversies have demonstrated par-
ticular weaknesses in Renault’s license to operate, and have raised questions as to how the company
should better approach its risk management. 
The bad buzz situation we most recall will be the 2020 Carlos Ghosn debacle; in which the
former Renault-Nissan CEO fled Japan due to ongoing investigations for corruption. The highly
publicized situation raised the question of whether or not the company was too prone to political
imbalances.  
More recently, the company was brought to court through a class action lawsuit claiming
faulty engines. Though the results of the lawsuit remain to be disclosed, the publicized lawsuit
shows the extent to which societal and regulatory pressures matter in the automotive industry at
large. 
Furthermore, the company has had difficulty retaining its market share in a fast-changing
macroeconomic business environment. Bottlenecks in the supply chain after the Covid-19 pandemic
has seen the carmaker's reliance on Taiwanese micro-chips; 50% of its expected European produc-
tion having been cut as shortages appeared. 

PESTEL ANALYSIS: 

Political: 
In its recent history, the Renault group has been tangled in a series of political complica-
tions. Notably, the company caused scandal in 2020 when the Japanese justice system arrested Re-
nault-Nissan CEO Carlos Ghosn. Though arrested for undeclared revenues, doubts have been raised
over the possibility of an attempt of hostile takeover from the Japanese carmaker. Renault cur-
rently holding a 43.4% voting stake in Nissan, and Nissan holding a 15% non-voting
stake in Renault, the power balance between the two major carmakers is greatly bi-
ased, at the expense of Nissan. 

- Safety regulations
- Emissions Policies
Another political risk to Renault is emissions policies, which have tightened in the
past few years.

https://www.francetvinfo.fr/economie/automobile/carlos-ghosn/

Environmental: 
- Rare earth materials usage and price hikes 
- Carbon emissions
The Renault group has managed to conform to the EU 2019/631 legislation which
sets a fleet-wide target of 95g CO2 per km for the years 2020-2024.

https://www.eea.europa.eu/ims/co2-performance-of-new-passenger
 
Societal: 
• Business model increasingly incompatible with needed transformations 
◦ Multinational supply chain manufacturing 
• https://www.lemonde.fr/en/economy/article/2022/05/04/critical-shortages-
puts-increased-pressure-on-the-automotive-industry_5982395_19.html 
• Rising Oil prices  

Technological: 
• Chip manufacturing (Taiwan situation) 
• More advanced EV manufacturers 

Economics: 
- Pricing
- Exchange rate on auto spending wwde
- Another major challenge which Renault may face has to do with the evolution
of exchange rates, with the dollar becoming stronger against other currencies.
- https://www.capital.fr/auto/renault-decoit-lourdement-sur-ses-profits-moins-
de-rabais-en-vue-pour-les-clients-1353128
Legal: 
• A wide range of safety regulations, which will differ from country to coun-
try 
• The increasing possibility of carbon emissions regulations 

 
REFERENCE :  
Emme, T. (2022, july 12). Ventes Renault S1 2022: -12 % en volume, mais. . . Le
Blogauto. https://www.leblogauto.com/actualite/ventes-renault-s1-
2022-baisse-12-pourcents-92408 
Bible des marques. (2022, march). Renault : tout savoir sur cette marque. Bible
des marques. https://www.bible-marques.fr/renault.html 
Audrey, (2020, may 19). Renault : présentation et histoire. https://www.infi-
nance.fr/articles/entreprise/societe-cotee-en-bourse/article-renault-pre-
sentation-et-histoire-486.htm 
Renault Group. (2022). Notre stratégie développement durable. Renault Group.
https://www.renaultgroup.com/nos-engagements/notre-strategie-envi-
ronnementale-et-societale/ 
ABC Bourse. (2022, september 1). Renault : a réduit de près de 10 % sa consom-
mation énergétique. ABC Bourse. https://www.abcbourse.com/
marches/renault-a-reduit-de-pres-de-10-sa-consommation-
energetique_574214 
Le Parisien. (2020, april 18). Les ventes de la Zoe en panne sèche. leparisien.fr.
https://www.leparisien.fr/archives/les-ventes-de-la-zoe-en-panne-seche-
28-01-2014-3534625.php 
 
Business Environment: 
https://www.investopedia.com/ask/answers/042015/how-much-impact-does-
government-regulation-have-automotive-sector.asp 
 
Renault Universal Registration Document (2021) 
https://www.reuters.com/business/autos-transportation/renault-nissan-face-le-
gal-action-france-over-motor-problems-2022-06-21/