Valeo completes a €600 million debut green bond and welcomes the European Investment Bank for its important participation.

 

PRESS RELEASE
Paris, October 6 , 2023

Valeo completes a €600 million debut green bond and welcomes the European Investment Bank for its important participation.

Valeo today announces the successful completion of its inaugural green bond, raising 600m worth of bonds. The European Investment Bank (EIB) has subscribed in the amount of 150m euros in what is the first green bond issued by Valeo.

A key feature of this operation is the establishment of a pioneering green and sustainability-linked financing framework covering both reporting, governance and verification, which Valeo has put in place to guarantee the funds are applied solely to activities which satisfy the EU Green and Sustainability Taxonomy. These include projects related to both production systems and the introduction of new technology in the relevant categories including clean transportation, renewable energy, energy efficiency, sustainable water and waste water management, and circular economy. Valeo has so far identified a pipeline of circa 2bn euros of eligible projects. Examples include smart heat pumps, battery terminal management systems, electric motors, and compact and quiet front-end cooling modules.

Valeo has committed to achieving carbon neutrality by 2050 covering its entire value chain – including suppliers, operating activities and the end use of products sold by the Group (direct and indirect emissions, i.e., Scopes 1, 2 and 3 emissions). By 2030, Valeo's emissions will have decreased by 45%, in absolute terms*, compared with 2019. On the journey to carbon neutrality, 2030 is an important and fast-approaching milestone.

The bond will enable Valeo to continue to expand its portfolio of technologies that contribute to low-carbon mobility, in particular its solutions for vehicle electrification, a field in which the Group is a world leader.

Valeo joined the new "CAC 40 ESG" index, in March 2021, which includes 40 companies that have demonstrated best practices from an environmental, social and governance perspective.

Valeo is regularly recognized for its comprehensive sustainable development (environmental, social and governance) approach.**

The European Investment Bank is a long-term partner of Valeo’s, having provided a total of 750 million euros in funding for investments into technologies designed to reduce carbon emissions and improve active vehicle safety since 2020.