Closing the Loop with End-of-Life Vehicle Recycling

European regulations proposed in July 2023 aims that 25% of plastics in new vehicles should come from recycled materials, with a quarter of that sourced from scrapped vehicles under the proposed End-of-Life Vehicles Regulation (ELVR). While not yet finalized, these measures show the EU’s push for automotive circularity. 
MATERI'ACT meets these goals by integrating recycled plastics from end-of-life vehicles (ELVs) into our materials. This closed-loop recycling approach improves vehicle recyclability and supports compliance with the future ELVR. By 2030, we aim for at least 25% of plastics in new cars to come from post-consumer waste, including ELVs.

To further advance closed-loop recycling, we have developed several material innovations, including NAFILean-R, a biocomposite made with 20% natural hemp fibers and 100% recycled polypropylene. Compared to traditional plastics, this material reduces CO₂ emissions by up to 90% and is used in models like the 2025 European Car of the Year, the Renault 5 E-Tech, as awarded by the Car of the Year Organizing Committee.

Our approach aligns with the EU's Circularity & End-of-Life Vehicles Regulation (ELVR), focusing on vehicle recyclability and material traceability. This regulation aims for 85% vehicle recyclability and mandates carbon footprint declarations for new vehicles. To comply, we are designing materials for circularity and enhancing traceability throughout our supply chain.

We collaborate with partners like Veolia and APM* to ensure a steady supply chain for sustainable materials. These partnerships focus on post-consumer plastic recovery and advanced compounding processes, reinforcing our commitment to sustainability.

* Joint Venture INTERVAL, an agricultural cooperative producing hemp and its co-products such as fibers. 

Fit for 55 and CO2 Regulations

The EU's Fit for 55 package targets a 55% reduction in greenhouse gas emissions by 2030 (vs 1990), aligning with the broader objectives of the European Green Deal. Our climate goals align with this, as we aim to reduce our Scope 3 CO2 emissions by 45% by 2030 (vs 2019). This reduction includes emissions from our entire value chain, covering      suppliers and product usage.

We have adopted a comprehensive strategy focusing on electrification and hydrogen technologies to achieve this. In 2024, we equipped 47% electric vehicles (including hybrid and hydrogen) of which 14% were pure EVs, demonstrating our commitment to zero-emission mobility. We are also advancing hydrogen solutions, including Type IV hydrogen storage systems and fuel cell technologies, produced at our state-of-the-art facilities in Allenjoie, France and SymphonHy, Symbio’s first gigafactory and Europe's largest integrated site producing hydrogen fuel cells. These facilities enhance our production capacity and significantly reduce the carbon footprint of hydrogen storage solutions. 

Since January 2024, we have complied with the Carbon Border Adjustment Mechanism (CBAM), a key element of the EU’s Fit for 55 package. CBAM, currently in its transitional phase, will require importers to purchase certificates for embedded carbon emissions in imported carbon-intensive products starting in January 2026. This mechanism aims to prevent carbon leakage and promote global emissions reduction, ensuring that EU and non-EU manufacturers face comparable carbon costs. In response, the automotive industry must strengthen supply chain transparency, particularly in steel and aluminum emissions reporting. Companies like FORVIA are enhancing supplier collaboration, data collection, and material traceability to meet these evolving requirements.
Our proactive measures ensure that our supply chain meets these stringent requirements.

Driving Accountability and Sustainable Impact

Our sustainability strategy integrates our Corporate Social Responsibility (CSR) initiatives and aligns with the EU Taxonomy for sustainable activities. In 2022, we became the first automotive group worldwide to have our roadmap to net-zero emissions by 2045 validated by the Science Based Targets initiative (SBTi) - a clear recognition of our commitment to reducing emissions and making responsible choices across our supply chain.

We address critical issues like deforestation, human rights and responsible sourcing through compliance with key EU regulations. The Corporate Sustainability Due Diligence Directive (CS3D) strengthens our due diligence processes, ensuring that we uphold international standards for human rights and environmental responsibility across our operations and supply chain.  In parallel, The EU Deforestation Regulation (EUDR), effective from December 30, 2025, mandates that products must not originate from land deforested after December 31, 2020. We have implemented stringent compliance measures, ensuring that all materials conform to the country of origin's laws and are verified through geo-data risk evaluations.

Forging the Path Ahead

With regulations reshaping mobility, we remain focused on what's next. We are improving materials, expanding cleaner technologies, strengthening supply chains and reporting transparently to stay ahead. By working closely with partners and staying aligned with our long-term goals, we are well-positioned to drive sustainable mobility forward.