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Renault ArgentinaSustainability Report 2015 - 2016

The one who

tomorrow

AcTS TodAyTRANSFORMS

2 / SUSTAINABILITY REPORT 2015 - 2016

Letter from the President

Letter from the Director of Public Affairs, Communication and Sustainability

Index

About Renault

Environmental Performance

Economic Performance

04

06

3832

05

Whenever you see a successful

someone once made a

decision

PeTeR dRukeR

couRAgeouS BuSINeSS

Intelligence is the

to adapt to

STePheN hAWkINgchANge.

ABILITyWe are what we

then is not an act but a

ARISToTLe hABIT.

repeatedly do,ExCELLENCE,

RENAULT ARGENTINA / 3

Limited Assurance Report

GRI Content IndexSocial Performance

Government, Ethics and Integrity

Sustainability Strategy

88

16

54

22

90

you have to

the rules of the game. And then you have to

ALBeRT eINSTeIN

PLAYLeARN

better than anyone else.

A goal without a

is just a

ANToINe de SAINT exuPéRyWISH

PLAN

I am interested in the

because it is where I’m going to spend the rest

Woody ALLeNoF My LIFe

FuTuRe


Letter from the PresidentGRI G4-1, G4-2

I have the honor to make available to you our fourth Sustainability Report, corre-sponding to the period 2015-2016. This document was prepared based on the Global Reporting Initiative guidelines, com-prehensive option. In it we share our finan-cial, social and environmental performance, reaffirming our commitment to transparen-cy, accountability and the principles of the United Nations Global Compact, to which Renault adheres.

For Renault Argentina, sustainability is a strategic management that allows us to ensure, in the medium and long term, its permanency as a large business, giving the company the possibility of having innova-tive products, well integrated in its envi-ronment, clients satisfied with the brand and, above all, with trained and motivated collaborators that contribute to the compa-ny an undeniable added value.

The challenge of sustainability is greater for an automotive terminal. Our production processes and our products can have an important positive impact and a potentially negative one on society and the environ-ment. Therefore, Renault Argentina is in-creasingly focused on reducing its environ-mental footprint, through the performance of education actions, raising awareness on safe driving and promoting the diversity and growth of its employees.

The treatment of waste in our plant in Cor-doba, the Technical Institute, the training of thousands of children in road safety, the accompaniment of civil society organiza-tions such as “Conduciendo a Conciencia”, the inclusion of women in the company

with the program Women@Renault, is con-crete evidence of the company’s commit-ment to Sustainability.

The last 2 years were very intense and busy at Renault Argentina. We launched keyinnovative vehicles, which synthesize the know-how of the brand, such as the Duster Oroch and Captur. In 2016, our market share grew considerably and for several months we were leaders among all the automotive brands.

However, at the same time we were affect-ed by the drop in export volumes due to the Brazilian situation, the main destination of our cars. So we worked hard to adapt the best possible to these conditions and we continued developing our investment plan: At the end of 2016 the first Sandero, Stepway and Logan were manufactured in Santa Isabel and today our factory is being deeply transformed for the next production of a new model and three pickups: Renault Alaskan, Nissan Frontier and Mercedes x Class. This is an industrial modernization that guarantees the future of Renault, with genuine investment and job creation. This is also sustainability.

Luis Fernando Peláez GamboaRenault Argentina President and Director General


Letter from the Director of Public Affairs, Communication and SustainabilityGRI G4-1, G4-2

I am pleased to present our fourth Sustain-ability Report for Renault Argentina. The challenge of this document was its elabo-ration under the GRI (Global Reporting Ini-tiative) G4 guideline, comprehensive option, and the additional verification carried out by a prestigious organization such as De-loitte. As in previous reports, sustainability management in Renault Argentina is based on the guidance of ISO 26,000, the princi-ples of the Global Compact of the United Nations, the new Global Agenda, which is comprised of 17 sustainable development objectives and the valuable contribution of our main interest groups, to which we have got used to, and we want to thank them for their participation, commitment and dedication in the process.

Sustainability for Renault is synonymous with strategy, since the company intro-duced it since 2009 at the heart of its business. With it, the company intends to maximize its positive social impact and minimize the environmental footprint of its activity in the community.

As an innovative and responsible auto-mobile manufacturer, we have deepened our pollution prevention actions and the detailed care in the use of natural resources. We consider how to make mobility more ac-cessible for people, seeking to satisfy both their needs and their expectations.

The commitment of these actions is reori-ented towards the awareness of the vehicle use as a tool for both work and pleasure, focusing on safe driving. The reflection of this task can be seen inside the organiza-tion, where we watch with special attention the development of the company’s collab-orators: a fundamental piece that drives growth and our continuity.

With its history stretching back 61 years, Santa Isabel factory delivered more than 3,000,000 units. During this period, 28 units produced there became icons and referents of the Argentine automotive industry. Working deeply on sustainability allows us to improve competitiveness and performance to remain the ones chosen by thousands of customers in the future.

I invite you to visit the pages of our report and to send us your valuable opinion to:[email protected]

Hernan BardiDirector of Public Affairs, Communication and Sustainability at Renault Argentina

About

RenaultWhenever you see a successful

someone once made a

decision

PeteR DRukeR

couRageousBusIness


With more than 118 years of existence, Renault Group has forged its identity on accessible and functional technology. Under its three brands: Renault, Da-cia and Renault Samsung Motors, with

Renault Group in the world

complementary positions and different geographic strategies, it has positioned itself as a leading company with a number of clients that are constantly growing.

Cars sold Sales (*)

3,182,625 1,243

RENAULT2,170,644

DACIA550,920

RENAULT SAMSUNG MoToRS80,028

UNITS SoLD PER BRAND:

36 CoUNTRIES MARkET ShARE (**) 10% 124,849 EMPLoYEES 19% WoMEN

Renault-Nissan Alliance has been working for more than 17 years, and sells 9.9 million vehicles annually under its brands: Renault, Dacia, RSM, Nissan, Infiniti, Datsun, Venucia and Lada.

The Alliance also strategically collaborates with other automobile manufacturers, including Daimler from Germany, Dongfeng from China, and Mitsubishi Motors from Japan, and has a majority stake in the joint venture that includes Russia’s largest auto-maker, AvtoVAZ.

Renault-Nissan AllianceRenault-Nissan Alliance embodies the fourth largest manufacturer in the world.

(*) Millions of Euros, as of 31 December 2016.(**) In Europe, in 2016.

8 / SUSTAINABILITY REPoRT 2015 - 2016

As responsible builders, Renault Argentina S.A. manufactures and markets vehicles, always focusing on improving the safety of their use in cities, reducing their environ-mental impact as well as that of its activity, making innovative and sustainable products accessible to the consumer.

Its headquarters are located in the neighbor-hood of Palermo, at Fray Justo Santa Maria de oro 1744, Federal Capital, and Santa Isabel Factory is 10 kilometers from the cap-ital of Cordoba province, in a neighborhood bearing the same name1.

Renault ArgentinaGRI INDICATORS

G4-3, G4-5, G4-6, G4-7, G4-8, G4-13, G4-17

WITh A PARTICIPATIoN IN ThE AUToMoTIVE MARkET oF 14.5%, IN 2016, RENAULT ARGENTINA BECAME ThE 3RD CAR MAkER WITh ThE hIGhEST NUMBER oF CAR REGISTRATIoNS IN ThE CoUNTRY.

From June to December 2016, it led the automo-tive market with a mar-ket share of 16.6%.

CoNCEPT

Automotive market in Argentina

Renault Argentina car registrations

Market share

Position

2015

625,685

79,378

13%

4°

2016

683,208

99,093

14.5%

3°

SANTA ISABEL FACToRYRenault Argentina’s vehicles are produced at the Santa Isabel Factory (SIF), which operates with European concepts in the manufacturing processes, complying with the quantity and quality demanded by the current market. The plant, which began operating in 1955, is currently producing vehicles under the Alliance Production Way (APW) system, the manufacturing system of Renault-Nissan Alliance.

549,648UNITS ARE ThE RECoRD oF MoST PRoDUCED MoDEL AT SANTA ISABEL FACToRY: RENAULT CLIo

Since 1956, more than 3 million vehicles have been produced, both for the local and export market.

1 For the purposes of this Report, headquarters and Santa Isabel Plant are defined as

“places with significant operations”.

PRoDUCTIoN LAUNCh oF SANDERo, SANDERo STEPWAY AND LoGAN IN SAN-TA ISABEL FACToRYIn 2016, the official start of production of Sandero, Sandero Stepway and Logan models was carried out at Santa Isabel Factory. The industrial project demanded an investment of USD100 million.


The consolidated financial statements of Re-nault Argentina S.A. include the companies

RENAULT ARGENTINAGRoUP

The following companies are also part of Renault Argentina Group:

Groupe Renault Company Foundation.With 56 years of presence in the country, Groupe Renault Company Foundation is committed to generating a value bond with the community. Its Board of Directors is made up of 15 members, whose president is Luis Fernandez Pelaez Gamboa, presi-dent and CEo of Renault Argentina.

Renault Credit International (RCI) BanqueEstablished in 2000, the RCI’s local subsid-iary, is responsible for promoting the com-mercialization of Renault vehicles, for which it develops different financial products, both for dealers and final customers, in ad-dition to tailor made products to accompa-ny promotions or special events.

which are detailed as follows, which are not part of this Sustainability Report:

99.89%

Centro Automotores S. A. Centro del Norte S.A.

RDIC

Renault Argentina S.A.

Renault s.a.s.

Metalúrgica Tandil Plan Rombo S.A.

99.99%85.33%98.4%1.6%

98.83%1.17%


DUSTER

MéGANE CoUPé R.S.

DUSTER DAkAR LIMITED EDITIoN

FLUENCE GT2

FLUENCE

SANDERo R.S. 2.0

SANDERo GT LINE SANDERo SANDERo STEPWAY LoGAN

kANGoo

DUSTER oRoCh MASTER MINIBUS kANGoo ExPRESSMASTER FURGóN

Products and servicesINDICADOReS GRI G4-4, G4-6, G4-8

With almost 20 models offered in the local market, in 2016 a total of 99,093 units were marketed, 24.8% more than in 2015. Production volumes reached

61,071 units in 2016, equivalent to 12.9% of the total volume of units manufactured in the country.

https://www.renault.com.ar/autos/automoviles.html

CARS

SPoRTS

UTILITY VEhICLES


2016 Launches

ExPoRTSIn 2016, a total of 11,867 units were export-ed, with Brazil being the main destination, while in 2015, exports amounted 30,572 units. The 11,867 units exported in 2016 accounted for 19% of the 61,071 units manufactured in the country in the same year.

NUMBER oF ExPoRTED VEhICLES

Brazil

Mexico

Colombia

Uruguay and Paraguay

2015

27,009

3,563

-

-

2016

9,356

1,603

286

622

New Sandero Stepway Rip Curl (limited edition)http://www.renault.com.ar/automoviles/sanderostepwayRC

New Renault Sandero R.S. 2.0: Fun with sports genetics https://www.renault.com.ar/autos/sports/sandero-rs.html

Renault Duster Oroch: First SUV on the markethttps://www.renault.com.ar/autos/utilitari-os/duster-oroch.html

The return of Coupe Mégane R.S.https://www.renault.com.ar/autos/sports/megane-rs.html

New Renault Capturhttps://www.renault.com.ar/autos/automo-viles/captur/disenio.html


ServicesPART MARkET As far as the part market is concerned, the export volume in 2016 was 50.055,49 m3, which represents a 15% decrease com-pared to 2015. The main destinations for the exports were for Logan, Sandero and Duster model production manufactured in Brazil, Clio and Sandero manufactured in Colombia, and gearbox housings produced by Cormecanica Chile.

→ Renault empresas: Companies have direct invoicing from Renault Argentina S.A., with prices specially tailor made and based on their needs.

→ Plan Rombo: Brand’s car savings plan that grants financing facilities to reach the desired vehicle.

→ Renault Pro+: It offers specific products and services for professional customers. Availability of utility or personal vehicles, in factory versions or with modifications, to adapt each unit to the specific labor needs, maintaining the original warranty.

→ After-sales: A variety of after-sales → services, in order to facilitate the preven-tive maintenance of Renault vehicles.

→ Renault Assistance: Mobile emergency assistance and traveler assistance services for all Renault units throughout Argentina and in neighboring countries (Chile, Uruguay, Brazil and Paraguay).

→ Renault Minuto: Immediate mainte-nance. Repair service on the spot, without previous appointment, carried out by specialized staff, with original parts and assuring the highest quality in the services.

→ Financiación: The best and most competitive new car financing plans for clients. Renault Credit is present in more than 35 countries.

Dimensions of Renault ArgentinaGRI INDICATORS

G4-9, G4-10, G4-11, G4-12, G4-13

RENAULT ARGENTINA IN NUMBERS

RENAULT ARGENTINA (*)

Total assets

Total liabilities

Net worth

Net sales

Units sold (**)

Employees

Women %

% employees in payroll

2015

11,751,350,763

7,149,595,444

4,601,755,319

14,372,388,683

79,378

2,257

7.35%

62.16%

2016

10,090,243,754

6,338,440,579

3,751,803,175

23,359,039,012

99,093

2,106

8.3%

56%

(*) Figures expressed in ARS. (**) Registered units.

was the increase of units sold in 2016.

24.8%


The supply chain consists of approximately 550 auto part, service and logistics com-panies, among others, which are classified as suppliers of parts for production, of ser-vices or parts that are not for production and of spare parts.

As a result of the launch of the new produc-tion line for Nissan, Renault and Daimler, the structure of suppliers will begin to change, since by end of 2016 the suppli-ers’ allocation process for the new models started to take place.

SUPPLY ChAININDICADOReS GRI G4-12, GRI-13


In order to boost the growth of the company, Renault Argentina participates

Commitment to external initiatives and partnershipsGRI INDICATORS G4-15, G4-16

INSTITUTIoN

United Nations Global Compact (*)

CEADS (Argentine Business Council for Sustainable Development)

IARSE (Argentine Institute of Corporate Social Responsibility)

Decade of Action for Road Safety 2011-2020 (**)

ADEFA (Automotive Factory Association of Argentina) (***)

ACARA (Association of Automobile Dealers of Argentina)

CCIFA (French-Argentine Chamber of Commerce and Industry)

UIA (Argentine Industrial Union)

UIC (Cordoba Industrial Union)

CPA (Argentine Advertising Council)

“Amigos de la Movilidad Sustentable” (Friends of Sustainable Mobility) Program

Business for Equality Group

R.E.D. de Empresas por la Diversidad (R.E.D. Companies for Diversity)

Women’s Empowerment Principles

Foro Nacional de Responsabilidad Social (National Social Responsibility Forum)

Grupo de Fundaciones y Empresas (Group of Foundations and Companies)

BA Ciudad Colaborativa (BA Collaborative City)

MANAGEMENT PoSITIoN

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

MoNEY SUPPoRTS

-

-

-

-

-

-

-

-

-

WoRk-GRoUP

-

-

-

(*) As from December 2016, Renault Argentina began to integrate the Executive Secretariat of the Global Compact Argentine Network. (**) Renault Group fully supports Decade of Action for Road Safety 2011-2020, a global initiative launched by the United Nations.(***) In 2016, together with PSA Argentina, Renault Argentina promoted the constitution of the Sustainability Commission of ADEFA, Automotive Factory Association.

in different chambers, associations and initiatives, among which:


AcknowledgmentsCoRPoRATE CITIZENShIP AWARD Renault Argentina integrated the group of the ten best companies in the category of corporate management oriented towards sustainability (CMS), of the American Cham-ber of Commerce (AMChAM).The Synergy of Containers project received a special distinction in the category of Sus-tainable Product Initiative in the AMChAM Corporate Citizenship Award.

MERCo RANkING oF CoRPoRATE REPUTATIoN

MERCo BUSINESSESBusiness Ranking 2016:Ranked 19 (22 in 2015)Automotive Sector Ranking: 4th place

MERCo RESPoNSIBILITY AND CoRPoRATIVE GoVERNANCEBusiness Ranking 2016: Ranked 15 (24 in 2015)

Governance, ethics and

INTEGRITYYou have to

the rules of the game. And then you have to

AlbERT EINsTEIN

PLAYlEARN

better than anyone else.


The governing body of Renault Argentina is the Shareholders’ Assembly, which dele-gates its authority to a Board of Directors that is responsible for the management and administration of the organization. It exercises the legal representation of the company through its President, who, in turn, occupies the executive position of Director General of the Company.

The Board of Directors meets at least once every three months and, among its duties and powers, regulated by Law 19,550 on Commercial Societies, stand out: exercis-ing the legal representation of the Compa-

GovernanceGRI INDICATORS

G4-34, G4-35, G4-36, G4-38, G4-39, G4-40, G4-41,

G4-42, G4-44, G4-45, G4-46, G4-47, G4-51, G4-52,

G4-53 G4-56, G4-54, G4-55

ny; complying with and enforcing the reso-lutions of the Shareholders’ Meetings and the provisions of the Statute; managing conflicts of interest and the aspects that have to do with the transparency, fluidity and integrity of the information; handling the society’s businesses and property; conferring general and special powers and revoking them; and makingdecisions on economic, environmental and social issues.

The main characteristics of Renault Argen-tina’s Board of Directors as of 31 Decem-ber 2016 are as follows:

Board of Directors

NATIONALITY

Argentinean

Foreign

GENDER

Men

Women

AGE GROUP

< 25

25-45

>45

SENIORITY IN THE POSITION

< 5 years

5-20 years

>20 years

2016

50%

50%

2016

75%

25%

2016

-

-

100%

2016

100%

-

-

Mission & vision

MISSIONTo offer attractive and affordable vehicles adapted to the particular needs of people, making of cars a tool of progress for them.

VISIONRenault, a close, innovative and reliable company that offers quality mobility for everyone. Renault is the accomplice brand of Argentinean people.


Committees of different areas and themes are formed and meet with the pe-riodicity that the function requires for the definition of medium and long-term strate-gies, as well as for the day-to-day opera-tion of the organization. These are teams (mostly interdisciplinary and cross-section-

Our committeesal ones) involving all areas and the officials required by the activity.

Renault Argentina’s Management Commit-tee, internally called “COA and CMA”, is led by the President and the Director General. It integrates all departments representing

NATIONALITY

Argentinean

Foreign

GENDER

Men

Women

AGE GROUP

< 25

25-45

>45

SENIORITY IN THE POSITION

< 5 years

5-20 years

>20 years

2016

54%

46%

2016

85%

15%

2016

-

38%

62%

2016

54%

46%

-

MANAGEMENT COMMITTEE

of women in the Management Committee

15 %

COMMITTEES

ARGENTINA OPERATIONAL COMMITTEE (COA)

ARGENTINA MANAGEMENT COMMITTEE (CMA)

INTERNAL CONTROL AND RISK MANAGEMENT COMMITTEE

COUNTRY COMMITTEE ON ETHICS AND COMPLIANCE

AUDIT COMMITTEE

the different areas of the company, includ-ing the Communications & Sustainability Department. The Management Committee is the ultimate unit responsible for the organization, and meets weekly to analyze the state of economic / financial, environ-mental and social issues.

The main composition characteristics of the Management Committee at 31 December 2016 indicate that:


Renault S.A.S2, based in France, is the controlling company of Renault Argentina S.A., which, with 98.93% equity interest, is the one who selects and evaluates each year the activities and performance in the economic, environmental and social areas of the Argentine subsidiary. In this sense, there are different Committees that ad-dress issues and aspects that are defined at the Group level, including:

→ Audit, Risks and Ethics Committee (CARE).

→ Appointments and Governance Committee.

→ Remuneration Committee. → International Strategy Committee.

In terms of risk identification and man-agement, the governing body of Renault Argentina is subject to the Group’s existing rules, which lead to the implementation of a risk management process in economic, environmental and social matters in each of the companies. In this sense, the Argen-tine Internal Control and Risk Management Committee has, among its functions, the supervision and monitoring of the risks de-tected in the geography. From the Internal Audit Management, at least two Risk and Internal Audit Committees are carried out and encouraged each year.

With regard to the evaluation of the performance and remuneration of the

governing body, they are carried out by the Controlling Company from its differ-ent Committees and through the evalua-tion and measurement of the company’s objectives at a global and local level, which take into account the economic/financial, social and environmental performance of the organization. Specifically as regards the remuneration of the governing body, this is monthly and has a variable compo-nent that is calculated based on the re-sults and performance of the organization. These data arise from the periodic reports on the local operation, which the govern-ing body sends to the parent company, and the evaluations and audits carried out by the latter annually.

2 For more information on the functioning of the different Committees, see https://group.renault.com/engagements/

The Country Ethics and Compliance Committee, driven by Renault Group’s Central Ethics Directorate, is responsible for dealing with all issues or complaints received that may jeopardize the ethics and good manners of the organization. This Committee is composed of the Pres-

Ethics and integrityGRI INDICATORS

G4-DMA, G4-56, G4-57, G4-58, G4-SO3, G4S-O4, G4-SO5

ident and Director General of Renault Argentina (Chairman of the Committee), Financial Director, Legal Director, Director of Human Resources, Director of Communication & Sustainability, and is coordinated by the Internal Audit Manager.

Renault Argentina Group has an ethical channel, provided by an external supplier, where complaints can be made anony-mously, confidentially and securely, and irregularities or any type of situation that is contrary to good ethical and labor condi-tions can be reported.

REPORTING CHANNELS

→ fAx 0-800-999-4636

→ [email protected]

→ weB SITeWWW.RESGUARDA.COM

→ TOll fRee 0-800-999-4636


The prosperity and sustainable develop-ment of a company are, to a large extent, based on the confidence it inspires among its stakeholders.

The commitments made by Renault Group in the social and environmental fields are an integral part of the Code of Ethics, by offi-cially adhering to the United Nations Global Compact and signing Renault’s Statement on Fundamental Social Rights.

Standards of good behavior

The Group’s staff are invited to report any irregularities in the accounting, financial, banking and anti-corruption areas, to the Country Ethics and Compliance Committee, “Group’s Regulatory Compliance or to the Legal Department”.

Particular attention should be paid to compliance with the legal regulations on competition, work and environmental protection.

→ Loyalty to customers → Loyalty to shareholders → Insider trading → Loyalty and fairness to trading partners

→ Respect and protection of people → Asset protection → Protection of Renault Group’s image

→ Anti-corruption → Financial accounts and audit

→ Reliability and accuracy of information

→ Respect for confidentiality

The commitment of all Renault Group staff to take into account and reduce the negative effects of their activity on the environment is a guarantee of sustainable development for the Company.

It is possible that the members of the Group’s staff are faced with situations in which their personal interest conflicts with the interest of the Group.

→ Paid work → Participation in an external company

Maintaining alive this trust requires com-pliance at all levels with a set of standards of good conduct.

Ethics and Conduct Code is informed and signed by each employee of the com-pany at the time of entry, and there is an annual revalidation process in the perfor-mance evaluation instance, in the case of non-pay-scale employees. In addition,

we have specific codes of conduct, called “Dedicated Codes of Conduct”, for certain areas linked to more sensitive activi-ties, which require strict monitoring of the Code rules.

(*) Renault Group makes no contributions to finance political parties.

TAKING AN ACTIVE ROLE IN RISK PREVENTION

OBSERVINGLEGAL REGULATIONS

AVOIDING ANY TYPE OF INTEREST CONFLICT

RESPECTING THE ENVIRONMENT

TRANSPARENCY AND IMPARTIALITY

LOYALTY TO RENAULT GROUP AND STAFF MEMBERS

→ Offering and receiving gifts → Political activities (*)


The Audit and Risk Management aims to ensure the protection of the Company’s assets, contributes to the observance of the group’s internal control standards, advises on improvements and participates in the prevention and risk assessment.

From the perspective of risk prevention and evaluation, different actions and programs related to anti-corruption measures are permanently implemented and monitored, which are carried out in the operations of Renault Argentina at its headquarters and at Santa Isabel plant.

In this sense, the main activities in the area include collaborating in formalizing and reviewing the processes of the different sectors, enforcing local standards, and par-ticipating in the prevention and evaluation of business risks, which include:

→ Permanently auditing the control of Company’s transactions and operations.

→ Ensuring compliance with the Compa-ny’s internal control standards.

→ Recommending actions to improve internal control methods and procedures.

→ Preparing objective and independent reports that protect the interests of the Company.

→ Deploying a long-term audit plan, covering all of the Company’s operational activities.

→ Investigating received complaints.

All employees and members of the govern-ing body are informed about the policies and procedures of Renault Argentina for the fight against corruption, as of the signing of the Code of Ethics.

In terms of training, all members of the governing body and senior management are trained in matters of internal corrup-tion, and training is planned for the rest of the collaborators in the period 2017-2018. Nevertheless, in July 2016, members of the Communications and Sustainability Department and of the Legal Department of Renault Argentina participated in the

program Training for Companies, to prevent corruption, and in “From Companies to Companies” program (DEPE, for its acro-nym in Spanish), conducted by the German Chamber of Commerce and the Global Compact, with the purpose of transferring these trainings to our value chain.

In order to facilitate the making of com-plaints and the reporting of irregularities, or of any type of situation contrary to Ethics or good working environment, the Ethi-cal Channel ensures the anonymity and confidentiality of contacts, and no cases of corruption have been identified in the period covered by the report.

ANTI-CORRUPTION STRATEGY

16.5

Renault Argentina permanently implements and monitors actions and programs related to anti-corruption measures.

strategySUSTAINABILITY

a goal without a

is just a

antoine de saint exupéryWISH

pLan


Renault Argentina’s commitment to sus-tainability is part of a management model that implies a long-term view, aimed at promoting growth and includes concepts related to:

Sustainable Mobility“We want to highlight our support to an ambitious climate deal but also show the im-mediate and effective solution that electric vehicles offer to the issue of climate change.”

Claire Martin, CSR Director at Renault SAS; Vice President Renault COP21Foundation, 31 December 2015.

Commitment and strategy GRI DMA, G4-EC2, G4-2

→ Ethics and transparency → Respect for Human and Worker Rights → The fight for social inclusion → The defense and care of the environment → Building citizenship

DEVELOPMENT OF HUMAN CAPITAL,

INTEGRATING EDUCATION

Fostering employees’ development, work-ing from training, motivation and perfor-mance, promoting technical training of

young people in the community.

ROAD SAFETY

The objective of the programs is to mobilize children, youths, teachers, parents, customers,

and the community in general, so they may identify the problems and daily risks of circula-

tion in the streets, raising awareness in the field of road safety, to create responsible citizens.

DIVERSITYRenault Group’s Statement on Funda-

mental Social Rights expresses its posi-tion on the right to equal opportunities in labor relations and, in particular, to work

specifically, on gender issues.

Renault Group is globally committed to the principle of Sustainable Mobility, which includes, among other things, a low carbon, more inclusive and safer mobility. In order to achieve this principle, it is necessary that all the companies, which form part of the Group, are aligned.

Hundred percent electric vehicles have a technology that produces zero CO2 parti-cles, and help to minimize the level of noise and noise pollution so common in modern cities. Thus, they not only have the potential to improve urban mobility and energy inde-pendence, but also health and life quality.

In this sense, and aligned with the Group’s strategy, Renault Argentina has defined five strategic objectives, which both minimize negative impacts and maximize positive impacts on people and the planet:

SUSTAINABLE MOBILITY

Commitment to the development of prod-ucts and services so that they become

more attainable, more efficient in the use of resources, reducing the environmental impact that causes the productive- com-mercial process, promoting the responsi-ble use of cars and being the first auto-

maker in the world to market (in a massive way) a range of vehicles that are 100%

electric and affordable.

ENVIRONMENT PROTECTION

AND REASONABLE USE OF RESOURCES

Ensuring the good ecological practices of the activities, materialized through the Environ-

mental Policy, which institutionalizes and for-malizes environmental aspects as a transversal

and strategic theme in the organization.


→ The Alliance provided a fleet of 200 electric vehicles with drivers. In this way, almost 8,000 delegates were transport-ed during COP21. It was calculated a total of approximately 175,000 km, saving 18 tones of CO2 emissions.

Nissan-Renault Alliance, Official sponsor of COP21 (2015) and COP22 (2016)

→ The United Nations used, after Paris, a 100% electric fleet for the transport service, in addition to public transport. The Alliance provided a fleet of fifty 100% electric vehicles to COP22, which was held in Marrakech. Delegates traveled aboard Renault ZOE, Nissan LEAF and e-NV200. The city of Marrake-ch had a network of more than 20 fast and standard recharge points.

Specifically in Argentina, and aligned with this trend, we work to respond to this principle, through different initiatives and programs:

In the framework of the “International Week of Sustainable Mobility”, together with Groupe Renault Corporate Foundation, the “Sustainable Mobility and Road Safety Meeting” was carried out at the Faculty of Economics of the University of Buenos Aires.Its goal was to promote citizen participa-tion in favor of sustainable mobility, and to include infrastructure, communication and road safety awareness priorities on the public agenda.

All these actions allow us to foresee that Kangoo ZE model, zero emissions, will be soon available in Argentina for its com-mercialization, mainly, to be used as other companies’ fleet vehicles.

→ A team is working on the marketing plan for electric vehicles; agreements were signed with public authorities and other interested sectors, to promote their development and marketing. Progress has been made in agreements with authorities and ENEL Company for it to be a supplier of the charging device specially adapted to the needs of each customer.

→ Tests were conducted with potential customers, and the first step the brand took was to offer fleet customers the possibility to test electric Kangoos, work vehicles, to be implemented in their companies.

→ Participation in congresses, conventions and different spaces facilitates the promotion and raises environmental awareness (Expo Bio, E Formula, and IARSE Convention, among others).

→ The participation in “Friends of Sustainable

→ Mobility” program, managed by the Government of the City of Buenos Aires, aims to promote sustainable mobility practices and encourage road safety in the city.

→ Renault’s “Eco Driving” Program, which is conducted together with the network of dealers across the country.

→ The launching of a full range of Renault bicycles to the market, which are marketed in the commercial network of the country.

→ The launch of an application to pro-mote carpooling among friends and colleagues, designed for drivers of all brands interested in the concept of sustainable mobility.


Performance measurement

In order to carry out this management mod-el, which implies a long-term view, different international guidelines and tools are used to understand, measure and adjust economic, social and environmental performance.

→ Principles of the United Nations Global Compact

→ ISO 26000 Social Responsibility → OECD Guidelines for Multinational Enterprises

→ Sustainable Development Goals

ISO 26000 Social responsibility

ISO 26000 addresses seven core issues, which are intended to be an instrument for organizations to contribute to sustainable development. In the period 2013-2014, Sustainability Management at Renault Ar-gentina, began to advance in a process of measurement and identification of gaps in each of the areas involved in the process.

Principles of the United Nations Global Compact Based on this Sustainability Report, Renault Argentina affirms the continuity of its sup-port and commitment to the ten principles of the Global Compact, regarding Human Rights, Labor Rights, the Environment and the Fight against Corruption.

Renault Argentina recognizes ISO 26000 as a document that provides guidance on Social Responsibility.

Work practices

In 2016 an update was made on the de-gree of progress achieved, according to the following detail:

Organization governance

2015/2016 Degree of compliance

ISO 26000

2013/2014 Degree of compliance

Human rights

Environment Fair operating practices

Consumer Affairs

Active participation and community development

10.90.80.70.60.50.40.30.20.1

0


OECD Guidelines for Multinational Enterprises

Sustainable Development Goals (SDGs) In September 2015, the United Nations member states approved a new Glob-al Agenda consisting of 17 goals to be achieved by 2030.

Using the SDG Compass tool as a reference, Renault Argentina advanced in a process to understand how to contribute to sustain-able development, both helping to minimize negative impacts and maximizing positive impacts on people and the planet.

The process included the analysis and eval-uation of each of the 169 goals, including the following aspects:

1

2

3

4

The actual or potential impacts, positive or negative, of both Renault Argentina and its value chain

The five work axes of Renault Argentina’s Sustainability Strategy

The aspects identified as Material for 2016 Sustainability Report, and their consistency with the Goals and Objectives indicated in the SDG Compass tool

The SDGs that were identified as relevant for Renault Argentina, by its main interest groups

To achieve these goals we all must be part: Governments, Private Sector, Civil Society and individuals.

OECD GUIDELINES

Competition

1

0.8

0.6

0.3

0.2

0

The OECD Guidelines for Multinational Enterprises follow government recommendations to multinational

Environment

Employment and Labor Relations

Human rights

Disclosure of information

General principles

Tax issues

Consumer interests

Fighting corruption, requests for bribery and other forms of extortion

Science and Technology

Principles

enterprises on transparency, labor practices, environment, anti-corruption strategies, consumer interests, among other issues.


SUSTAINABLE DEVELOPMENT GOALS (SDGS)

GOAL 9

GOAL 12

GOAL 13

GOAL 3

GOAL 11

GOAL 3

GOAL 6

GOAL 7

GOAL 13

GOAL 3

GOAL 4

GOAL 8

GOAL 5

WORK AXES RASA

SUSTAINABLE MOBILITY

ROAD SAFETY

ENVIRONMENT PROTECTION AND REASONABLE USE OF RESOURCES

DEVELOPMENT OF HUMAN CAPITAL, INTEGRATINGEDUCATION

DIVERSITY

GRI MATERIAL ASPECTS

→ Financial performance of the organization → Quality of products and services → Customers’ health and safety → Reduction of carbon emissions → Fight against corruption → Promotion of CSR best practices throughout the value chain

→ Local communities → Promotion of CSR best practices throughout the value chain

→ Effluents and waste → Water Consumption → Regulatory compliance in environmental matters → Energy Consumption → Reduction of carbon emissions

→ Health and safety at work → Prevention of child labor → Prevention of forced labor → Training and education → Local communities → Employment

→ Disability → Diversity and equal opportunities → Equal pay for men and women → Non-discrimination

From the said process, the following goals were identified as relevant in a first instance:


Report ParametersGRI G4-DMA,G4-18, G4-19, G4-2O, G4-21, G4-22, G4-23,

G4-28, G4-29, G4-30, G4-31 G4-32, G4-33,G4-34, G4-35,

G4-43, G4-48, G4-49, G4-50

2015-2016 Sustainability Report has been prepared “in accordance” with the Global Reporting Initiative (GRI), under G4 guidelines, “comprehensive” option. It has a biennial frequency, covering the period between 1 January 2015 and 31 Decem-ber 2016, and is presented together with 2016’s balance sheet.

The Report includes the operations of Renault Argentina S.A. In the section of action programs regarding the community, it includes the actions that Renault Argen-

tina carries out together with Groupe Re-nault Corporate Foundation. No significant changes in the scope or coverage of 2015-2016 Sustainability Report were identified or significant effects on the reformulation of the information with respect to previ-ous years. There have been no significant changes regarding the structure, share ownership or supply chain of the organi-zation. The latest report published was 2013-2014 Sustainability Report.This report includes the index indicating the location of the contents on page 90.

Regardless of the internal control systems provided by the company, the Management has decided to contract the services of Deloitte organization for the external verifi-cation of the report, in order to increase the credibility of the information included. The Verification Report is included on page 88.The Sustainability Committee is the con-tact point to clarify any doubt that may arise regarding the content of the Sustain-ability Report:

[email protected]

MATERIAL ASPECTS AND COVERAGE One of the main aspects, which is part of the process of preparing the Sustainability Report, has to do with the identification of those material issues to be communicated by the organization.

The Sustainability Committee is composed of an interdisciplinary group of collabora-tors representing the areas of Accounting, Customs, Taxation, Legal, Commercial Management Control, Purchasing, Engi-neering, Environment, Human Resources, Santa Isabel Factory’s Quality, Communi-cation, Manufacturing, and meets every four months. It is the one who carries out, among other issues, the process of identifying relevant matters, and bring-ing them to the Management Committee. For this, the following process was addressed:

In this sense, the Global Reporting Initia-tive makes available a set of principles de-signed to be used in a combined manner, in order to define the content of the report.

i) Identification of impacts, risks and opportunities spotted by experts and organizations, including:

→ Material issues identified by indus-try-leading companies around the world (RobecoSAM Yearbook 2016).

→ Aspects that arise from GRI G4 Guidelines and the principles of the Global Compact.

→ Material matters identified by other automotive terminals in Argentina.

→ Topics suggested in the dialogue process with key stakeholders.

ii) Drawing from the process of identifying material issues, different spaces, Focus Groups and online surveys were gener-ated, with the purpose of understanding and discussing the impacts of these issues and prioritizing the most relevant ones to be included in the Sustainabil-ity Report. All issues are raised by the Sustainability Committee to the Argentine Management Committee.

PRINCIPLES FOR DETERMINING THE CONTENT OF THE REPORT

→ Involvement of stakeholders → Sustainability context → Comprehensiveness → Materiality

PRINCIPLES FOR DETERMINING THE QUALITY OF THE REPORT

→ Balance → Comparability → Accuracy → Timeliness → Clarity → Reliability

The following interest groups participat-ed in the different spaces for dialogue to identify material issues to be included in the report:

- Sustainability Committee (Buenos Aires and Cordoba)- Dealers- Suppliers- Internal public- Media- Representatives of the community


LIST OF MATERIAL ASPECTS IDENTIFIED

Below we detail the material aspects identified in the previous point:

Matters and aspects

ENVIRONMENTAL 1 Reduction of carbon emissions 3 Effluents and waste 4 Energy Consumption 5 Water Consumption 11 Regulatory compliance in environmental matters

SOCIAL 2 Quality of products and services 6 Health and safety at work 7 Customers’ health and safety 8 Prevention of child labor 9 Disability 10 Diversity and equal opportunities 12 Training and education 13 Fight against corruption 14 Prevention of forced labor 15 Equal pay for men and women 16 Non-discrimination 17 Employment 19 Local Communities

ECONOMIC 18 Promotion of best practices of CSR in the value chain20 Economic performance of the organization

4Importance of economic, social and environmental impacts

Rele

vanc

e in

sta

keho

lder

s’ ev

alua

tions

and

dec

isio

ns

0

4

5

5


MATTERS AND ASPECTS (*)

1 Reduction of carbon emissions

2 Quality of products and services

3 Effluents and waste

4 Energy consumption

5 Water consumption

6 Health and safety at work

7 Customers’ health and safety

8 Prevention of child labor

9 Disability

10 Diversity and equal opportunities

11 Regulatory compliance with environmental matters

12 Training and education

13 Fight against corruption

14 Prevention of forced labor

15 Equal pay for men and women

16 Non-discrimination

17 Employment

18 Promotion of CSR best practices in the value chain

19 Local communities

20 Economic performance of the organization

TOTAL

4.80

4.77

4.73

4.72

4.65

4.64

4.63

4.58

4.56

4.55

4.52

4.50

4.48

4.47

4.47

4.46

4.45

4.44

4.39

4.38

X AXIS TOTAL

4.77

4.90

4.68

4.73

4.60

4.70

4.72

4.65

4.63

4.58

4.50

4.40

4.52

4.50

4.43

4.35

4.30

4.45

4.50

4.42

EXT. IMPACT

•

•

•

•

•

•

•

Y AXIS TOTAL

4.83

4.64

4.77

4.70

4.69

4.59

4.54

4.50

4.49

4.52

4.53

4.60

4.45

4.44

4.50

4.58

4.59

4.43

4.27

4.35

INT. IMPACT

•

•

•

•

•

•

•

•

•

•

•

•

•

•

•

(*) Evaluation criteria used: 1 is NOT RELEVANT and 5 VERY RELEVANT


Participation of stakeholdersGRI G4-DMA, G4-24, G4-25, G4-26, G4-27, G4-37

The participation of interest groups, both internal and external ones, is a key element in the process of dialogue for the definition of material aspects, in order to be able to identify and classify those that are affected and those affecting the company, in the habitual exercise of its

operations and its activity. Based on the guidance provided by the AA1000SES Accountability Standard, a system of anal-ysis covering certain dimensions (respon-sibility, influence, proximity, dependency and representation) has been created to identify key stakeholders.

STAKEHOLDER GROUPS

DEALERS AND CUSTOMERS

COLLABORATORS

UNIONS

SHAREHOLDERS

SUPPLIERS

COMMUNITY AND NGOs

GOVERNMENT AUTHORITIES

MEDIA

CHANNELS OF DIALOGUE AND - OR COMMUNICATION

→ Customers’ satisfaction plan, Customers’ relationship service, Quality survey, MiRenault.com, Social networks.

→ The President’s blog, Survey of the collaborator of Renault Argentina Group, Focus Group, Intranet and Newsletters, Performance evaluation. Open Forum, Knowledge interviews. Vivi Renault.

→ Regular Meetings with the Internal Union Commission, Monthly meetings with SMATA (Argentine Transport Mechanics and Allied Staff Trade Union) Board of Directors and Human Resource Department, Periodic meetings with business chambers (ADEFA, ACARA) and the Guild

→ Meeting of Shareholders and Directors, with areas and CSR managements

→ Focus Group, Periodic meetings, Specific staff for supplier care, Suppliers’ portal

→ Publication of the activities of Renault Foundation, Press releases, Social networks, Periodic meetings. Participation in Forums and Congresses.

→ Meetings with different municipal, provincial and national bodies; Partici-pation in commissions and working groups with different areas of national and provincial administration.

→ Press releases, web and social networks, Focus Group, Meetings with national and provincial media, Special events for journalists and media.


Intelligence is the

to adapt to

Stephen hawkIngChangeaBILItY

PerformanceeConomIC


The automotive market closed 2016 with 683,208 registered units, which represents an increase of more than 9% in relation to the previous year. Specifically for the case of Renault, 99,093 vehicles were registered during 2016, representing a market share of 14.5%, an increase of more than 1.8 points on the previous year. We finished 2016 as the 3rd terminal with the highest level of sales, and during the second half

Economic contextMATERIAL ASPECT 8, 13, 14, 18, 20

of the year (from June to December) we were the top 1st brand in the automotive market. Manufacturing volumes reached 61,071 units in 2016, equivalent to 12.9% of the total volume of units manufactured in the country. In 2016, a total of 11,867 units were exported, being Brazil the main destination. These units accounted for 19% of the 61,071 units manufactured.

SINCE 2014, RENAULT HAS BEEN DEVELOPING THREE INVESTMENT PROJECTS FOR AN AMOUNT OF USD 800 MILLION, FOR THE MANUFACTURE OF LOGAN, SANDERO AND STEPWAY MODELS AND A NEW VEHICLE TO BE PRESENTED IN 2018, IN ADDITION TO THE DEVELOPMENT OF THREE PICKUPS IN SANTA ISABEL: RENAULT ALASKAN, NISSAN FRONTIER AND MERCEDES X CLASS.

The following table of “DIRECT ECONOMIC VALUE GENERATED AND DISTRIBUTED”, proposed by indicator EC-1 of G4 Guide-lines of the Global Reporting Initiative, shows the capital flow among the different

stakeholder groups. The figures are pre-sented in Argentine pesos and arise from the audited individual Financial State-ments of Renault Argentina of 31 Decem-ber 2015 and 2016, respectively.

Economic indicatorsGRI G4-DMA, G4-EC1, G4-EC4, G4-EC3


DISTRIBUTED ECONOMIC VALUE

Operating Expenses

Employee salaries and benefits (*)

Payments to capital providers

Taxes

Investments in communities

TOTAL ECONOMIC VALUE DISTRIBUTED

RETAINED ECONOMIC VALUE

Income and minimum expected income tax

NET PROFIT FOR THE YEAR

GDI

Suppliers

Employees

Credit suppliers

Government

Community

-9,368,931

-81,272,821

-90,641,752

2015

11,414,790,171

1,092,066,493

5,150,872

671,662,365

830,029

13,184,499,930

2014

10,688,097,728

849,000,901

4,544,887

448,971,052

688,924

11,991,303,492

2,350,854,595

-416,504,007

1,934,350,588

2016

19,530,805,728

1,577,657,278

6,715,948

1,231,739,037

1,535,219

22,348,453,210

1,472,250,592

-520,353,056

951,897,536

(*) Renault Argentina does not offer retirement plans to employees.

(*) Amount expressed in millions of ARS.

Deductions and tax credit

Other financial benefits received

2015 (*)

361

128

2016 (*)

217

184

Regarding economic aid granted by government entities, Renault Argentina receives an exemption in the tax on gross

income in the province of Cordoba, accord-ing to the following detail:

DIRECT ECONOMIC VALUE GENERATED

Net sales

Net financial and holding results

Other income

TOTAL ECONOMIC VALUE GENERATED

GDI

Customers

Other

Other

2015

14,372,388,683

1,140,071,793

22,894,049

15,535,354,525

2014

12,043,854,936

-86,643,417

24,723,042

11,981,934,561

2016

23,359,039,012

428,340,995

33,323,795

23,820,703,802


Renault-Nissan Alliance

In July 2016, during his visit to Buenos Aires, the president and CEO of Re-nault-Nissan Alliance, Carlos Ghosn, confirmed that the Alliance will invest USD 800 million in Argentina until 2018, as part of the preparations of the Alliance to launch its first exclusive production line of pickups, which will produce Nissan and Renault vehicles, as well as of the Alliance partner, Daimler.

→ The project is expected to generate up to 1,000 new direct jobs and 2,000 indirect jobs.

→ Three versions of pickup will be produced in Argentina: Nissan NP300 Frontier from 2018, Renault Alaskan and Daimler Class X by the end of the decade.

Supply chainThe supply chain is made up of companies that are classified as suppliers of parts for production, service or parts that are not for production and spare parts. In relation

to suppliers of parts for production which accounted for 65% of purchases in 2016, they are mainly located in the provinces of Cordoba and Buenos Aires.

“Renault-Nissan Alliance is deeply commit-ted to Argentina and the local partners who are joining these ambitious projects. Being the third largest market in the automotive industry, and the pickup manufacturing hub in Latin America, this country is key to the regional growth plans of our brands”

President and CEO of Renault-Nissan Alliance, Carlos Ghosn

The alliance is getting ready to launch the first line of exclusive pickups for Nissan, Renault and Daimler in America.

Value chainGRI G4-DMA, G4-12, G4-EC9, G4-HR5, G4-HR6

8.8

ORIGIN OF SUPPLIERS

Córdoba

Buenos Aires

Other provinces

Abroad

2015

32%

55%

6%

7%

2016

39%

54%

2%

5%

Concept Car: Alaskan ConceptIn 2016, the Alaskan Concept was present-ed, which adjusts to the rules of the pickup segment such as large dimension and a visual sense of power and robustness. In addition, Alaskan has an attractive front design. The presentation was made in Colombia and will arrive to the Argentine market in 2018

pickups per year is the expected volume of production.

70,000


VOLUMES PURCHASED TO SUPPLIERS

For production

Of services

Spare parts

TOTAL

VOLUMES PURCHASED TO SUPPLIERS

For production

Of services

Spare parts

TOTAL

2016

3,092,041,317

1,530,000,000

122,400,000

4,744,441,317

2015

2,557,707,437

1,180,148,000

105,000,000

3,842,855,437

%

65%

32%

3%

%

66%

31%

3%

CERTIFIED SUPPLIERSThe automotive industry demands first-class levels for product quality, production processes, competitiveness and continuous improvement. At Renault Argentina, critical suppliers (designated as rank 1) are required to be ISO TS 16949 certified. At present, ISO 14001 certification is not a mandatory re-quirement for Renault Argentina’s suppliers.

CONTRACTING REQUIREMENTSRegarding the relationship with suppliers, from the quotation request to the time of hiring, some corporate requirements are included which specifically refer to Renault Group’s statement on Social Rights and, in adherence to the general conditions of purchase, comprise issues regarding the control of suppliers and sub-suppliers in terms of labor and social security aspects, industrial safety and environment.

Renault Argentina is committed to respecting the rules established by its codes, consistent with the global approach to sustainable development, which arise from the conventions of the International Labor Organization and the universal prin-ciples that constitute the United Nations Global Compact.

The different risk prevention and risk as-sessment actions carried out by the Audit and Risk Management have not identified significant risks of child labor and forced labor within the reporting period in the operations and suppliers of Renault Argen-tina. However, since 2010, Renault Group and Renault Argentina are working in the process of implementing measures, in order to contribute to the abolition of child labor and forced labor. Among the ones that stand out are:

→ Platform for evaluation and monitoring of suppliers

→ Audits on sustainable development to suppliers

→ CSR actions and programs in the value chain

PLATFORM FOR EVALUATION AND MONITORINGSince 2010, Renault Group’s Purchas-ing Department has been working on a corporate social responsibility evaluation and monitoring program in its supply chain through EcoVadis, a platform for qualifying sustainability in global supply chains.

This platform is used to evaluate and monitor those suppliers that are considered critical for the production process, or that exceed a certain amount of operations.


LOCATION OF DEALER NETWORK

Federal CapitalGreater Buenos AiresBuenos Aires province Cordoba provinceSanta Fe provinceEntre Ríos provinceChubut provinceChaco provinceCatamarca provinceFormosa provinceJujuy provinceLa Pampa provinceMendoza provinceMisiones provinceNeuquen provinceSalta provinceSan Juan provinceSanta Cruz provinceSantiago del Estero provinceTucuman provinceTierra del Fuego province

2016

477561111112111111111

of suppliers have already adhered to the said statement.

25%

ACTIONS AND SUSTAINABILITY PROGRAMS IN THE VALUE CHAINIn 2016, from the Purchasing and Supply Chain Management, the Internal Audit Man-agement and the Sustainability Manage-ment of Renault Argentina, began to work in order to raise awareness on Sustainable Development among suppliers.

Letter of adherence to the commitments and principles undertaken by Renault Argentina In order to bring the commitment of Renault Argentina in terms of Sustainable Development to its sphere of influence, by the end of 2016, it started to share with 100% of suppliers and dealers, a letter of adhesion to the commitments and princi-ples undertaken by the Group.

Sustainability WorkshopsThis process took its first step in a Sustain-able Breakfast-Workshop in which experi-ences and different tools were shared for the design and implementation of CSR best practices. From the Purchasing and Supply Chain area, suppliers representing small, medium and large companies and various characteristics and industries were invited to enrich experiences and exchange.

This commitment is based on the State-ment on Social Rights of Renault Group, the declaration supporting the ten Principles of the Global Compact, the corporate contract-ing requirements and strategic objectives to mitigate the impacts of day-to-day man-agement: Sustainable Mobility, Road Safety, Environmental Protection, Reasonable use of Resources and Development of Human Capital, integrating Education and Diversity.

The dealer network has 285 customer contact points distributed throughout the country.

→ 2 own dealerships, called Commercial Subsidiaries

→ 44 private dealers → 132 points of sale and services → 149 after-sales points → Secondary network of 100 points of sale and services

Commercial network GRI G4-12

→ ACRÍLICOS ATLAS SA → ADECCO Specialties SA → AGENCIA MARÍTIMA MULTIMAR SA → AIR LIQUIDE ARGENTINA SA → CELSUR Logística SA → Centros de contacto Salta SA (ATENTO) → El ALMACÉN / BUE S.R.L. → El Santuario S.R.L. → Producciones Marea SA → PUBLICIS GRAFFITI SA → QUÍMICA TRUE SOCIEDAD ANÓNIMA COMER

→ STEFANINI ARGENTINA S.R.L. → PIRELLI → POLIMETAL


PerformanceEnvironmEntal

We are what we

then is not an act but a

ariStotlEHaBit

repeatedly do,EXCELLENCE,


VEHICLE MANUFACTURING

ENVIRONMENTAL IMPACT

Renault Argentina works under the premise that its activities must respect the envi-ronment, in order to minimize the impact and optimize the use of resources. Santa Isabel Factory strives every day to integrate operations with the environment and with the local community.

The main impacts of Renault Argentina on the environment have to do with the man-ufacturing process of the vehicles in Santa Isabel Factory, which are audited and moni-tored every year by the Grupo Renault.

Environmental commitment MATERIAL ASPECTS 1, 3, 4, 5, 11

GRI INDICATORS G4-DMA, G4-14

RENAULT ARGENTINA IS BASED ON A CONTINUOUS IMPROVEMENT MANAGEMENT, ON THE BASIS OF EVERYDAY WORK PERFORMANCE AND THE AXES OF ITS ENVIRONMENTAL POLICY

THE PRIORITY AREAS OF ACTION ARE:

GENERATION OF EFFLUENTS

EMISSIONS OF VOLATILE

ORGANIC COMPOUNDS

WATER CONSUMPTION

ENERGY CONSUMPTION(NATURAL GAS

AND ELECTRICITY)

WASTE GENERATION

ENVIRONMENTAL MANAGEMENT, COMMUNICATION TRANSPARENCY AND RESPONSIBILITY, AS WELL AS DIALOGUE

WITH THE INTERESTED PARTIES

HEALTHAND ECOSYSTEMS

RESOURCES AND COMPETITIVE

CIRCULAR-ECONOMY

CLIMATE CHANGE AND ENEGETIC

EFFICACY

INNOVATIVE MOBILITY SERVICES

AND SYSTEMS


Preventing and reducing the environmental footprint and health impact of products, services and activities on a continuous basis, integrating the principles of life cycle analysis and circular economy.

Actively contributing to Renault Group’s competitiveness and to the protection of its tangible and intangible assets.

Implementing environmental management throughout Renault Group and throughout its value chain, in order to ensure continued progress, as well as compliance with regulations and voluntary commitments.

Environmental policy

1

2

3

Certifications Since November 1999, Santa Isabel plant certifies the Environmental Management System against ISO 14001 standard, being periodically evaluated and certified as re-gards compliance with the requirements of ISO 9000 and ISO 14000 standards.

100% of Renault Group’s industrial plants in the world are certified against ISO 14001 standard.

AuditThe environmental performance of San Isabel plant is monitored and audited every year by Renault Group, in accordance with the French regulation, Grenelle II Act. It is carried out in accordance with Renault Group Environmental Report Protocol and is audited by Ernst & Young.

The indicators included in the perimeter of Renault Group audit have to do with envi-ronmental issues inherent to the automotive industry, which were identified by the parent company, according to the following detail:

→ Preservation of energy resources and reduction of emissions associated with climate change

→ Air quality in urban areas → Reduction of waste volumes → Preservation of water resource

The purpose of the audit is to monitor the overall impact of Renault Group and each of its plants in the environment at the stage of vehicle manufacturing in accordance with:

→ The guidelines of the Global Reporting Initiative (GRI)

→ The Protocol for Measurement and Reporting of Greenhouse Gases of Entreprises Pour l’Environnement (EPE)

→ The methodologies of the Intergovern-mental Panel on Climate Change (IPCC) of the GHG Protocol.

85% of the industrial plants, within the perim-eter of Renault Group Environmental Report Protocol, is certified against ISO 14001 standard.

Environmental committee

The environmental committee of Santa Isabel Factory is composed of 13 represen-tatives from the main areas of the plant.

It meets with a weekly frequency and its reporting hierarchy is the Manufacturing Management.

* The measures included in this report correspond to the indicators involved in the perimeter

of the group’s audit, unless specifically indicated otherwise.


As regards overall management results, in 2015 and 2016, there was a decrease, in real terms, in the consumption of water, energy and generation of emissions, main-ly related to the low production volumes of recent years, which caused a slight increase in the average efficiency per unit produced, compared to the period 2013-2014.

On the other hand, a reduction, both in real terms and per unit produced, was achieved in the generation of VOC emis-sions, and performance was improved in relation to waste generation. In the period 2015-2016, it was 32% less than in the period 2013-2014.

During the reporting period, no fines or penalties have been received from public environmental bodies.

Management of resources, waste and emissions GRI INDICATORS G4-DMA, G4-EN29

8.4 12.2

Rational and responsible use and reduction of water consumption in the vehicle manu-facturing process are central to the environ-mental policy. The plant has three types of water distribution systems, 100% of which are fed by the potable water network, sup-plied by the company Aguas Cordobesas(**):

→ Drinking and industrial water: It comes from the public network and is distributed to all productive and administrative sectors.

→ Soft water (*): It is used in the factory’s cooling systems, after a softening process, to reduce scaling potential.

→ Demineralized water (*): It is generated and distributed to the departments of welding, assembly and painting. The latter is the main consumer.

6.4, 6.3

(*) In both cases, the origin is network water, but with a process of previous purification, made in the factory.(**) The water entering water treatment plants comes from the basins of Suquia river.

https://www.aguascordobesas.com.ar

Water consumptionGRI INDICATORS G4-DMA,

G4-EN8, G4-EN9, G4-EN10

14.2 %REDUCTION IN WATER CONSUMPTION, IN REAL TERMS, COMPARED TO 2013-2014 PERIOD.


Production (veh.)

Consumption [m3](*)

(m3/veh.)

(*) Measurement from data extracted from the bill of water consumption.

2009

65,458

299,274

4.57

1ST SUSTAINABILITY REPORT

2ND SUSTAINABILITY REPORT

3RD SUSTAINABILITY REPORT

4TH SUSTAINABILITY REPORT

2011

110,039

301,135

2.74

2013

117,753

284,788

2.42

2015

76,055

237,559

3.12

2010

93,374

325,740

3.49

2012

109,669

258,482

2.36

2014

80,854

234,105

2.9

2016

62,293

207,592

3.33

As a result of the improvements applied in the last 8 years, compared to the consump-tion reported in the first sustainability report, it is evident that having a similar

level of activity, the improvement programs allowed a reduction of approximately 27% in the consumption of water per unit produced.

Volume of reused water /m3

% of recycled or reused water

2015

7,728

3.25%

2016

9,828

4.73%

REUSED WATERThe percentage of water that is reused for the cataphoresis process at the plant.

“Best practice” Application of a state-of-the-art paint booth, which allows the recirculation of gases and work with lower airflow, saving energy and water consumption.

WATER CONSUMPTION PER UNIT PRODUCED

WATER CONSUMPTION

0

2

1

3

4

5

2012201120102009 2013 2014 2015

2015

2016

2016


ENERGY CONSUMPTION

8.4 12.2 13.1

In the context of an efficient energy use policy, work is carried out transversally with all the workshops through weekly meetings, definition of objectives and action approach, tending to reduce re-duce consumption and to eradicate energy waste o within the frame of “DRIVE to 5” plan at a global level.

7.3

Energy consumptionGRI INDICATORS G4-DMA, G4-EN3, G4-EN4, G4-EN5,

G4-EN6, G4-EN7

SANTA ISABELPLANT

ELECTRICALENERGY

38% HYDROPOWERPLANTS

RENEWABLEENERGY

THERMOELERIC PLANTS

NON-RENEWABLEENERGY

NATURAL GAS 62% NON-RENEWABLE ENERGY

The Santa Isabel plant mainly runs on electricity and natural gas. The electric energy supplier is EPEC (Provincial Energy Company of Cordoba), which generates energy from its hydropower plants (water

stored in lakes to be converted into electri-cal energy, renewable energy) and from its thermoelectric power stations (electricity generated from combustion of fossil fuels, non-renewable energy).

In 2015-2016, production processes demanded 235,065 MW / h of energy, of which, on average, 38% corresponded to electric power and the remaining 62% to energy generated by natural gas.

Production [veh.]

Gas consumption [MW/h]

Elect. consump. [MW/h](*)

Total consump. [MW/h](*)

MW/h per veh. (*)MW/h expressed in MW/h LCV (lower calorific value).

2009

65,458

46,542

45,782

92,324

1.41





2011

110,039

67,844

52,008

119,853

1.09

2013

117,753

87,676

55,981

143,657

1.22

2015

76,055

71,550

48,779

120,329

1.58

2010

93,374

77,714

54,428

132,143

1.42

2012

109,669

62,878

51,253

114,132

1.04

2014

80,854

67,745

46,068

113,814

1.41

2016

62,293

74,600

39,860

114,460

1.84

ENERGY CONSUMPTION PER PRODUCED UNIT

0

1

0,5

1,5

2

2012201120102009 2013 2014 2015 2016

reduction in energy con-sumption, in real terms, vs. 2013-2014 period.

8.8 %


As a result of the development of new activities in the plant, such as the assem-bly of bumpers and seats and the en-largement of the body paint plant, taking into account the generation of emissions reported in the first sustainability report it can be seen that, at a similar level of activity, the consumption per produced unit has increased by 30%. Given the context of the local industry and the reductions

of manufacturing volumes, the energy requirements of the expected vehicles have not been reached. Nevertheless, in October 2016, the production area was reorganized, concentrating the work in a single shift. To do this, schedules of the different process-es and their optimization were reformulat-ed, in order to minimize the impact of the reduction of manufacturing volume on the consumption/vehicle ratio.

Based on the commitment to reduce emissions associated with climate change, a monitoring of the generation of CO2 emissions from the combustion of natural gas and power consumption is carried out in Santa Isabel Plant.

As a result of the development of new ac-tivities in the plant, such as the assembly of bumpers and seats and the enlargement of the body paint plant, taking into account the generation of emissions reported in the first sustainability report it can be seen that, at a similar level of activity, the consumption per produced unit has increased by 17%.

With regard to external energy consump-tion (related to the acquisition of goods, transportation and distribution, etc.), infor-mation is not available at this time, since it is outside Renault Group Environmental Reporting Protocol and under evaluation based on the objectives of Renault Group.

12.2 13.1 14.3 15.23.9

Carbon emissionsGRI INDICATORS G4-DMA, G4-EN15, G4-EN16, G4-

EN17, G4-EN18, G4-EN19, G4-EN20, G4-EN21 11.16 %REDUCTION IN CO2 EMISSIONS, IN REAL TERMS, VS. 2013-2014 PERIOD.


Production [veh.]

CO2 equivalent total

CO2/veh. equivalent total

2009

65,458

30,863

0.47





2011

110,039

37,863

0.34

2013

117,753

43,853

0.37

2015

76,055

36,588

0.48

2010

93,374

39,983

0.43

2012

109,669

36,102

0.33

2014

80,854

35,863

0.44

2016

62,293

34,233

0.55

CO2 EMISSIONS

Natural gas combustion

Refrigerant fluid leak (**)

Internal vehicle emissions (***)

Direct emission subtotal

Indirect emission subtotal

Emission total

(*) CFC’s were not imported, manufactured nor exported.(**) During the filling up of vehicle air conditioners.(*** ) Fleet vehicles, forklifts, etc.

2015

14,903

2,444

1,144

18,491

18,097

36,588

TOTAL

30,109

4,795

2,115

37,019

33,802

70,821

2016

15,206

2,351

971

18,528

15,705

34,233

%

43%

7%

3%

52%

48%

100

CO2 EMISSIONS PER PRODUCED UNIT

CARBON EMISSIONS

0

0,2

0,1

0,3

0,4

0,5

0,6

2012201120102009 2013 2014 2015 2016

CO2 EQUIVALENT TOTAL (DIRECT + INDIRECT)(*)

“Best practice” Container synergy be-tween Renault Argen-tina and the regional industry

This program aims to address the need of the Supply Chain area, to guarantee the availability of car parts and, at the same time, to comply with the Group’s commit-ments on sustainability.

It is a program to reduce the economic costs and CO2 emissions associated with the transportation of parts purchased from international suppliers.

In 2013, the percentage of import contain-ers of Renault Argentina that returned emp-ty to the port of Buenos Aires was 90%. On the other hand, exporters from the province of Cordoba carried empty containers to their province from the port of Buenos Aires to consolidate their export cargo.

Drawing from an agreement with local exporters, the containers that are emptied at the Santa Isabel plant are then used by these companies, which fill them with their export products.


In 2016, a reduction of 491 tons of CO2 was achieved, through the “synergy of containers”

Container total volume

Operated by Renault Argentina

% of container synergies

Number of container synergies

Savings in CO2 tons

M eco ARS for Renault

M eco ARS for exporters

M ECO ARS TOTAL

2013

3,100

15%

461

351

0.6

0.5

1.1

2015

2,224

32%

715

539

3.7

3.1

6.8

2014

2,443

21%

513

387

2.1

1.8

3.9

2016

1,647

40%

651

491

4.5

3.8

8.3

In relation to emissions of scope 3, the information requested by the indicator cannot be accessed at this time as it is

under an evaluation process according to the objectives of Renault Group.

491T


EMISSIONS

Sulfur dioxide (SO2)

Nitrogen oxides (NOx)

2015

0.13

17.4

2016

0.13

18.13

In the factory, we are committed to work on the reduction of emissions of volatile organic compounds (VOC), substances found in solvents, paints and in some adhe-sives and sealants, using the mass balance method to calculate them.

Bumper plant: The atmospheric emissions of this plant, before its release to the environment, go through a Regenerative Thermal Oxidizer (RTO), which destroys VOC with 99% efficiency, using the remaining heat.

Production [veh.]

Generation [kg]

Kg/veh.

2009

65,506

534,200

8.15




4th Sustainability Report

2011

110,432

774,018

7.01

2013

117,873

855,061

7.25

2015

76,055

530,835

6.97

2010

93,256

693,310

7.43

2012

109,669

784,758

7.13

2014

80,854

575,610

7.11

2016

62,293

340,990

5.47

Other atmospheric emissions

VOC emissions

COV EMISSIONSPER PRODUCED UNIT

VOC EMISSIONS

0

4

2

6

8

10

2012201120102009 2013 2014 2015 2016

reduction in COV emissions, in real terms, for the period 2013-2014.

39.1 %

“Best practice” → Robotization implementation: Due to a cabin change and an improvement in the robotization of the paint application, 22.3% reduction of VOC emissions, less paint consumption and recovery of rinse solvents were achieved.


6.3 12.4, 12.5

Waste is sorted out from its point of origin and classified for its subsequent treatment in common and hazardous.

3.9

Waste management GRI INDICATORS G4-DMA, G4-EN23, G4-EN25

COMMON WASTE

HAZARDOUS WASTE

INBOUND→ Wood, cardboard and plastic→ Scrap and disused metals→ Other miscellaneous

common waste→Cuttings from the processes

of sheet stamping

INBOUND→ Paint, phosphate

and cataphoresis sludge→ Solvents→ Used oils→ Others

OUTBOUND→ Recycled waste→ Steel mill recycled waste→ Compacted and sent to sanitary

landfill in Cordoba city→ Compacted and reused

in iron foundries

OUTBOUND→ Waste taken to a treatment plant

→ Study and definition of the final disposal process of each type of waste, balancing the cost-environmental im-pact (recycling/reuse, co-processing, inciner-ation and confinement in cells).

→ Control and reduction of waste generation at source. It is sorted by type and origin, ensuring regu-latory compliance and pollution prevention.

→ On-site audit and homologation of each hazardous waste operator, in accordance with Renault corporate requirements, and the monitoring of the valid-ity of their permits and authorizations.

→ Continuous manage-ment of the Residual Impact indicator (vol-ume of waste that has burial/confinement in cells as final destina-tion), to achieve “zero buried residue” in the long-term.

COMMON, NON-METALLIC WASTE

In 2016, 75% of the non-metallic common waste was recycled.

Production [veh]

Generation [T]

Kg/veh.

2009

65,458

8,414

128

2011

110,039

12,662

115

2013

117,753

9,937

84

2015

76,055

6,079

80

2010

93,374

10,205

105

2012

109,669

11,210

102

2014

80,854

6,683

83

2016

62,293

5,179

83

WASTE GENERATED PER PRODUCED UNIT

0

60

30

90

120

150

2012201120102009 2013 2014 2015 2016

of waste reduction, in real terms, for the period 2013-2014.

32.3%






HAZARDOUS WASTE

Wood

Plastic

Cardboard, paper

WCU

COMMON WASTE SUBTOTAL

RECYCLED COMMON WASTE

Metal

METALLIC WASTE TOTAL

FINAL DISPOSAL

Recycled

Recycled

Recycled

Municipal sanitary landfill

FINAL DISPOSAL

Recycled

2015

2,643

162

2,131

1,143

6,079

81%

2015

8,027

8,027

%VAR

-19%

-12%

-23%

11%

-15%

%VAR

18%

18%

MEASURE

T

T

T

T

T

%

MEASURE

T

T

2016

2,134

142

1,632

1,270

5,179

75%

2016

6,581

6,581

Hazardous wastes are those that pollute the environment, because of production processes in which chemical, toxic or flammable products have been used. Once these are treated, according to the cor-responding regulations, alternatives are sought for recycling disposal or, failing this, for co-processing.

Other wastes, such as used batteries and solvents, are recycled. Dirty solvents are distilled by an external supplier and returned to the factory for reuse in the paint plant.

94 %of waste was recycled or co-processed in 2016.

METALLIC COMMON WASTE

COMMON WASTE

In 2016, 100% of the common metallic waste was recycled.


Production [veh]

Generation [T]

Kg/veh.

2009

65,458

815

12

2011

110,039

1,140

10

2013

117,753

1,070.3

9

2015

76,055

954,9

13

2010

93,374

1,041

11

2012

109,669

921

8

2014

80,854

822,3

10

2016

62,293

748

12

Oil

Solvents

Paint sludge

Solids contaminated with adhesives

Fluorescent bulbs, lamps

Batteries

Empty drums

( with oil and paint residues)

Physical-chemical sludge effluent plant

HAZARDOUS WASTE SUBTOTAL

RECYCLED HAZARDOUS WASTE

FINAL DISPOSAL

Incineration by co-processing

Distillation + recycling



Safety cell

Recycling

Recycled


2015

10

275

160

39

49

98

-

323

954

94%

% VAR

80%

-18%

-6%

23%

-73%

-77%

100%

-23%

-16%

4%

MEASURE

T

T

T

T

T

T

Unit

T

T

T

2016

18

226

150

48

13

23

19

250

748

98%

There was no waste internationally transported in the period 2015-2016, nor hazardous substances exported. The treated hazardous

waste is that reported in EN23 indicator (Waste management)

HAZARDOUS WASTE GENERATED PER PRODUCED UNIT

HAZARDOUS WASTE

0

6

3

9

12

15

2012201120102009 2013 2014 2015 2016

reduction of haz-ardous waste, in real terms, com-pared to period 2013-2014.

10 %

HAZARDOUS WASTE RECYCLED OR CO-PROCESSED






TREATMENTS PERFORMED AT THE EFLUENTES PLANT:

6.3 12.4

In Santa Isabel Factory, as a result of industrial and domestic processes, three types of effluents are generated:

→ From painting and cataphoresis → Industrial ones → From sewage system

They are all treated at the effluent treat-ment plant and then discharged into the surface water course of La Cañada stream, tributary of Suquia River.

The factory’s engineering laboratory carries out strict control and monitoring of the effluents, corroborating compliance with municipal and provincial require-ments in terms of concentration and composition, Internal laboratories verify regulatory compliance and make the cor-responding submissions to the relevant environmental agencies.

3.9

EffluentsGRI INDICATORS G4-DMA, G4-EN22,

G4-EN26, G4-EN24

→ EFFLUENT TREATMENT OF PAINTS AND CATAPHORESIS:

The effluent of paint and cataphoresis enters the physical-chemical process, through a reactor that coagulates the heavy metals contained in the effluent.The treated liquid is taken to biological treatment before leaving the premises. The sediment enters the process of dehydration and becomes a sludge, which is sent to the cement plant for co-processing.

→ PHYSICAL TREATMENT OF OILY WASTEWATER SEPARATION (INDUSTRIAL EFFLUENT):

In a first stage, the industrial effluent passes through a fat and oil separating unit. This residue, with separated hy-drocarbons, is sent to external co-pro-cessing. The remaining liquid is taken to physical-chemical treatment.

→ SEWAGE LIQUID TREATMENT:

They are subjected to a primary separation of solids and liquids in a filter chamber; then, they are carried, by means of pumps, to biological treatment, which includes a pool of activated sludge, and they are finally sent to a sedimenter and to dehydra-tion process.


Although effluent generation increased by 6% compared to the period 2013-2014, in the last year there was a 7% reduction com-pared to 2015, due to the improvements

in the aeration system of the biological process of activated sludge, generating a significant decrease of organic load in the final effluent.

The liquid effluent receiving body is La Caña-da stream, tributary of Primero River. The treated sewage effluents of the city of Cordo-ba are dumped on the latter. The contribution in volume and concentration of the factory’s effluent is negligible compared to the dump-

Production [veh.]

Generation [m3]

M3/veh.

2009

65,458

188,072

2.87

2011

110,039

221,704

2.01

2013

117,753

161,697

1.37

2015

76,055

163,925

2.15

2010

93,374

228,214

2.44

2012

109,669

202,608

1.84

2014

80,854

136,730

1.69

2016

62,293

152,164

2.44

EFFLUENT GENRATION PER PRODUCED UNIT

GENERATION OF EFFLUENTS

0,0

1,0

0,5

1,5

2,5

3,0

2012201120102009 2013 2014 2015 2016

increase of generated efflu-ents, in real terms, regarding the pe-riod 2013-2014.

6 %

Effluent quality

SM [T]

COD [T]

OXMET [T]

2015

3.44

17.57

0.17

2016

0.0

8.7

0.10

ing of Cordoba city (1,100,000 inhabitants).During the reporting period there have been no significant spills, according to the criterion of significance used by GRI: Spills that are recorded in the Financial State-ments of the organization.

SM: Suspension matter. It is measured in mg/lt (concentration)

COD: Chemical Oxygen Demand. It is measured in mg/lt (concentration)

OXMET: Oxidizable Metals. It is measured in kg/day.






In Renault, the sound impact produced by the factory is taken into account and controlled. Sound emissions are regularly measured around the premises and in the vicinity of community dwellings.

With the purpose of deepening our commitment to the environment, we are advancing, with the organization protagonos(*), in a survey of biodiversity in the premises of Santa Isabel plant to know its current state and its potential for

According to records, to date, emissions are within the admissible values set by local regulations, and the guidelines of IRAM4062 standard - Disturbing noises in the neighborhood.

the development of nature conservation programs. Even though the conclusions of the survey carried out are still preliminary, the technical team identified the place as a space of high potential to develop convergent conservation initiatives,

Sound aspect

Biodiversity survey in Santa Isabel

environmental education and climate change mitigation as contributions oriented towards the achievement of ODS 15, 4 and 13, respectively.

(*) http://protagonos.org


PerformanceSOCIAL

I am interested in the

because it is where I’m going to spend the rest

WOOdy ALLenOF My LIFe

FUTURe


The men and women who make up Re-nault Argentina are the most valuable as-set of the company. They have to do with the essence, identity and performance of the organization (*), and, therefore, the management of human capital is based on the fair treatment of all employees and is designed to increase their commitment and motivation.Main challenges:Principales desafíos

→ To keep employees motivated → To promote diversity

→ To encourage employees to be able to meet the challenges of tomorrow

Each employee is expected to incorporate Renault Way values to their daily work, which are included in Renault Group’s Global Code of Conduct, and summarize the values promoted by the company:

→ Commitment → Trust → Promotion of solidarity → Acceptance of diversity

Labor practicesMATERIAL ASPECTS 6, 10, 12, 15, 17

GRI INDICATORS G4-DMA

Synthesis of the main concepts of the Code of Conduct:

FOUR CONCEPTS ON HOW TO BE: → Involvement → Confidence → Solidarity → Openness

THREE CONCEPTS ON HOW TO ACT: → To make it simple and effective → To be a generator of proposals → To apply the decisions

(*) For the purposes of this report, our Santa Isabel plant in the city of Cordoba, and our adminis-

trative offices in the Autonomous City of Buenos Aires are defined as “premises with significant

operations”, by our organization.


EmploymentGRI INDICATORS

G4-9, G4-10, G4-LA1, G4-LA2,

G4-LA3, G4-LA12, G4-LA13,

Employees by categoryThe number of employees of Renault in Argentina is 2,106 as of 31 December 2016, which means, 43.4% are monthly paid em-ployees and the remaining 55.9% are daily paid ones.

Employees

Men %

Women %

Interns and expats

2014

2,291

89.3%

10.7%

2015

1.46%

2016

2,106(*)

91.7%

8.3%

2015

2,257

92.6%

7.4%

2016

2.05%

ExECuTIvESMenWomen

MANAGERS, ChIEfS & ADMINISTRATIvE EMPLOyEESMenWomen DAILy PAID EMPLOyEES MenWomen

2015

0.7%0.6%0.1%

37.2%30.3%

6.9%

62.2%61.8%

0.4%

2016

0.7%0.6%0.1%

43.4%35.5%

7.9%

55.9%55.7%

0.2%

(*) According to form 931, which includes staff reduction for the month of December 2016

10.28.5

EXECUTIVES

0.7% 37.2% 62.2% 20152016

0.7% 43.4% 55.9%

MANAGERS, CHIEFS AND ADMINISTRATIVE EMPLOYEES

DAILY PAID EMPLOYEES


EMPLOYEES BY TYPE OF AGREEMENT

Open-ended agreement

Fixed-term agreement (*)

(*) Interns and expats

2015

99.8%

0.2%

2016

99.9%

0.1%

ROTATION LEVEL

New hires

Staff reduction

HIRING RATE (TOTAL OF HIRES / TOTAL NO OF EMPLOYEES)

GENDER

Men

Women

AGE

<25

25-45

>45

CATEGORY

Monthly paid

Daily paid

REGION

Buenos Aires

Cordoba

2015

206

232

2015

9.0%

7%

2%

1%

8%

0%

7%

2%

2%

7%

2016

200

364

2016

9.5%

8%

2%

1%

7%

1%

7%

2%

2%

7%

ROTATION RATE (STAFF REDUCTION TOTAL NO / EMPLOYEES TOTAL NO)

GENDER

Men

Women

AGE

<25

25-45

>45

CATEGORY

Monthly paid

Daily paid

REGION

Buenos Aires

Cordoba

2015

10.3%

9%

1%

0%

8%

2%

4%

6%

2%

7%

2016

17.3%

16%

2%

1%

9%

7%

4%

13%

1%

16%

Renault Argentina promotes among its employees the values of commitment, confidence, encouragement of solidarity, and acceptance of diversity


In 2016, 1% of the total staff was located in the Federal Capital and Greater Buenos Aires, and the remaining 99% in the

TOTAL STAff PER RESIDENCE AREA

CABA and Greater Buenos Aires

Cordoba

2015

2%

98%

2016

1%

99%

SOCIAL BENEFITS → Possibility of reduced working hours for mothers (for 6 months after maternity leave, they may work part-time).

→ Additional child day-care for employees with children up to 6 years old.

→ Additional days for parental and marriage leave.

In 2016, more than 80 scholarships were awarded by Renault Technical Institute to employees’ children.

INTERNShIPS AND fIRST EMPLOyMENT

Renault Argentina seeks to attract, develop and retain young talent with growth potential. In 2016, the process of incorporation of interns was mod-ified, establishing a frequency of two moments per year, allowing search time reduction and improving the choice of candidates.

PRIMER PASO PROGRAM (PPP)

In partnership with the Government of Cordoba, Primer Paso Program is being carried out, which provides the possibility of labor insertion to young students up to 25 years old who do not have work or work experience. In 2016, some 33 youths joined to collaborate in the different areas of the factory.

BENEfITS TO EMPLOyEES

Primer Paso program, which is being carried out in partnership with the Government of Cordoba, provides the possibility of labor insertion to young students up to 25 years old who nei-ther have work nor work experience. In 2016, some 33 young people joined to collaborate in the different areas of the factory.

OTHER BENEFITS → Free parking on the job site. → Mini bank and ATM. → Dining room service. Coffee machines, soft drinks and snacks.

→ Flexible working schedule. → Flexible Friday. → Discounts and promotions on services and products of different companies.

→ Agreements with educational and sports institutions.

→ Baby kits, school kits, Christmas gift baskets.

→ Discount on fees of Renault Technical Institute in Cordoba.

→ Gifts for graduation and marriage.

PRODUCTS:Discounts on purchases, service and gift convenience:

→ New vehicles, second-hand-vehi-cles (from domestic fleet).

→ Financing facilities with preferen-tial rates of Renault Credit.

→ Plan Rombo subscription fee discount.

→ Parts and services in Renault Minuto.

→ Car repair shops within the Dealer Network.

→ Courtage S.A. insurance

Benefits to Employees


Parental leave

100% IS THE EMPLOYEE WORK RE-INCORPORA-TION RATE OF THOSE WHO REQUESTED PARENTAL LEAVE, ONCE THEIR LEAVE HAS EXPIRED.

98% IS THE EMPLOYEE RETENTION RATE OF THOSE WHO REQUESTED PARENTAL LEAVE, AND KEPT THEIR EMPLOYMENT TWELVE MONTHS AFTER THAT.


Acknowledgments→ Outstanding employee: The company monthly rewards 11 people who contribute to improve its processes and/or results.

Outstanding employee Five-year period

→ five-year periods: Every time employ-ees add a quinquennium to their seniority in Renault, they are recognized for their career and their commitment.

→ RASA Awards: It rewards the processes or managements developed in teams that have stood out in the year.

NUMBER OF EMPLOYEES THAT:

(a) Were granted parental leave

Men

Women

(b) Exercised their right to parental leave

Men

Women

(c ) Returned to work after the end of their parental leave

Men

Women

(d) Returned to work after the end of their parental leave, and kept their job after twelve months of having returned to work

2015

66

56

10

66

56

10

66

56

10

65

2016

66

52

14

66

52

14

66

52

14

65

PARENTAL LEAVE


Diversity and equal opportunities

GENDERIn recent years, the management of Hu-man Resources and Sustainability has fo-cused on the participation of women in the company, seeking to make the company an example of commitment in the industry for the promotion of gender equality.

Gender equality → Women@Renault → UN Women’s Empowerment Principles (2015)

→ Business for Equality Group → R.E.D. de Empresas por la Diversidad

In Argentina, 15% of women have reached executive levels and 18% are managers, chiefs or administrative employees.

Women %

3 final candidates

2015

53

2016

55

21% OF WOMEN IN KPI POSITIONS

32% OF RECRUITED WOMEN

In 2016 in terms of female presence, the company achieved:

WOMEN@RENAULTThis global strategic program of Renault, which started in France in 2010 and be-came operative in Argentina by the end of 2011, seeks to recruit, retain and promote women’s careers.

Promoting equal opportunities: → This hiring policy of Renault Argentina requires that at least 33% of the final three candidates, selected to occupy a vacant position, are women.

→ The detection and application of women with high potential profiles is encouraged.

→ There is no gender distinction as to the definition of wages.

→ Wages are defined according to the responsibilities of the position and the needs of the profile, regardless of the gender of the employee

5.1 8.8 10.2

2015

166WOMEN

173WOMEN

2016


WOMEN’S EMPOWERMENT PRINCIPLESRenault Argentina is the first local automak-er to make a clear commitment to gender, through the signing of Women’s Empower-ment Principles.

The long-term objective, which has been made explicit by signing the Women’s Empowerment Principles, is to ensure a sufficient participation of women (30% or more) in decision-making and leadership at all levels.

BuSINESS fOR EQuALITy WORKING GROuPSince 2015, Renault Argentina is part of Business for Equality Working Group, orga-nized by the United Nations Global Com-pact Argentine Network, UNDP Argentina and Carrefour.

R.E.D DE EMPRESAS POR LA DIvERSIDADIn line with Renault Group’s strategy for in-novation, in 2015, Renault Argentina joined R.E.D de Empresas por la Diversidad, which

is coordinated by the Space of Inclusive Businesses of Torcuato Di Tella University, and strives to be a referent of plural voices in Latin America, to promote the develop-ment of all diversity within the business environment.

PARTICIPATION IN PuBLICATIONS → Benchmarking “Equal opportunities for women in the Company”

→ Instituto para el Desarrollo Empresa- rial de la Argentina (IDEA): For the first time, the underlying logic when making decisions about gender diversity in large companies and SMEs is studied in our country. Renault Argentina was part of the 131 analyzed companies.

→ Report “Towards a culture of inclusion: The Management of Diversity in Companies” - ComunicaRSe: presented a research dedicated to analyzing business management regarding diversity within sustainability strategies. For the study, more than 50 companies were surveyed, including Renault Argentina.

In Renault Group’s Statement on Funda-mental Social Rights, the company affirms its position regarding the right to equal op-portunities in labor rela-tions and, in particular, the commitment to work specifically on gender issues.

AGE RANGE 68% of employees are between 25-45 years old, while the percentage of older than 45, is 30%.

STAFF BY AGE

Total

<25

25-45

>45

2015

2,257

28

1,486

743

2016

2,016

58

1,426

622


health and safetyGRI INDICATORS

G4-11, G4-LA5, G4-LA6, G4-LA7, G4-LA8,

3.3, 3.4, 3.9

Renault Argentina is firmly committed to ensuring optimal working conditions and securing the safety of all employees.

The values regarding the working conditions are:

→ To optimize individual and collective effectiveness through motivating work conditions, which encourage performance.

→ To improve safety and working conditions in the framework of contin-uous progress.

→ To ensure that no priority is exercised to the detriment of the physical integrity, health and the fundamental rights of employees.

→ To systematically integrate health, safety and working conditions criteria when making decisions on the creation or evolution of products, processes, implementations, organizations and working time.

→ To observe national and international regulations.

Monthly paid employees

Daily paid employees

Total

2015

854

1,403

2,257

2016

932

1,174

2,106

In salary terms, during 2016, the compa-ny’s standard starting salary exceeded the ad-justable minimum living wage (AMLW) by 250%, while in 2015 the differ-ence was 181%.

A strategic factor to improve quality and competitiveness levels is to offer the best working conditions.

→ Ergonomics: The security managers of each sector were trained, in order to know the state of the ergonomic conditions of the existing jobs, in order to be able to control the evolution of the physical load generated and to implement corrective actions when they are required

→ Communication: Preventive communi-cation campaigns are carried out to prevent accidents and diseases, dissemi-nating safety principles, through different graphic media used in different sectors of the plant.

EMPLOYEES

EMPLOYEES 2015 EMPLOYEES 2016

The organization manages its Human Capital within the framework of current regulations and adheres to the commit-ment of the 10 principles of the United Nations Global Compact. Among employ-ees, 56% of them work in jobs related to vehicle manufacturing process and under the collective bargaining agreement of the Argentine Transport Mechanics and Allied Staff Trade Union (SMATA), which covers matters related to personal pro-tection equipment, the joint health and safety committees between management and employees, and the participation of workers’ representatives, training and com-plaints mechanisms, among others.

Monthly paid 854 Daily paid 1,403

Total 2,257

Monthly paid 932 Daily paid 1,174

Total 2,106


HEALTH AND SAFETY COMMITTEEThe Health and Safety Committee is com-posed of the Plant Manager, the Human Resources Department, a representative of the Health, Safety and Hygiene area and three trade union delegates representing the entire staff under the agreement.

ACCIDENT PREVENTION AND OCCUPA-TIONAL DISEASE MANAGEMENT SYSTEMThe system is oriented towards absolute efficiency, zero accident and occupational disease rate (*), with decent and healthy workplaces. The objective is to work on prevention to eliminate the probability of damages arising from the exercise of work, acting on the causes that can originate accidents, occupational diseases and other damages when doing a task.In 2016, a management model was imple-mented, which consisted in carrying out risk assessments and workstation, area and work machine improvement, in order to reduce the possibility of accidents.

LABOR SAFETY – INDEXES -RATES (**)

Employees (***)

Occupational accident frequency rate

Occupational diseases

Occupational accident severity rate

Absenteeism rate

Fatalities (*****)

2015

4.37

54

0,068

3.97

-

UNIT

Rate

Number (****)

Index

Index

Number

2016

3.33

37

0,125

3.09

-

(*) No workers in Renault Argentina involved in professional activities have a high incidence or high risk of diseases,

such as HIV/AIDS, diabetes, malaria and stress. In the automobile industry there are sectors that are likely to have

accidents and occupational diseases. In Renault they are carefully identified by the prevention management system

that applies to employees under collective bargaining agreement, classifying them in three colors: red, yellow and

green. In the case of red and yellow jobs, action plans and work re-engineering are applied to provide a quick solution

to possible anomalies.

(**) F1category and the measurement system, which is used for the recording and reporting of accidents, are regarded

as complying with the recommendations of the national legislation and the ILO.

(***) There are no indicators of contractors. An indicator in this respect will begin to be applied as from 2017.

(****) The number of occupational diseases declared was 54 and 37, respectively, but the formally recognized diseases

were 0 for both periods.

(*****) Both in 2015 and 2016, there have been no fatalities due to occupational accidents.

24 % THE WORKPLACE INJURY RATE DECREASED 24% IN THE LAST YEAR.

IN 2016, THE ABSENTEEISM RATE SHOWED A DECREASE OF ALMOST A POINT WITH RESPECT TO THE PREVIOUS YEAR.


Total hours of training

2014

35,229

2015

17,761

2016

25,321

Training and developmentGRI INDICATORS

G4-LA9, G4-LA10, G4-LA11, G4-hR3

4.3

The training and the professional devel-opment of employees are a fundamental aspect for the continuous growth of the organization.

TRAININGTraining schemes are designed to develop employees’ competencies, as well as preparing them for new internal career opportunities. During 2016, the average number of training hours per employee was doubled, emphasizing staff develop-ment, irrespective of its hierarchical level.

8 was the total average of training hours per employee in 2015.

12was the total average of training hours per employee in 2016.


In 2016, some 1,517 employees were trained on “CUS-TOMER SATISFACTION PLAN”, with the goal of transmitting the new quality strategy oriented to satisfaction.

AVERAGE TRAINING HOURS

TOTAL HOUR AVERAGE

Executives

Men

Women

Managers. chiefs & administrative employees

Men

Women

Daily paid employees

Men

Women

Interns & expats

Men

Women

2016

12.10

0.18

0.15

0.03

8.76

7.28

1.48

2.92

2.86

0.06

0.23

0.08

0.15

2015

7.9

0.06

0.05

0.01

6.22

5.42

0.80

1.49

1.49

-

0.09

0.03

0.06

REGARDING MONTHLY PAID EMPLOYEES

Average satisfaction with the trainings (*)

Managers trainedAverage training hours per person

2015

3.7787%

13

2016

3.888%

18

Continuous training of employees con-stitutes a pillar of the Human Resources Management; therefore, programs of skills workshops, and continuous training are offered. As regards monthly paid employ-ees, they are mainly offered workshops on language, management, communication, conflict management (both face-to-face and e-learning modality) and, with respect to daily paid employees, they mainly receive technical training for their job post, risk prevention and the use of safety elements, among others.

(*) Out of a total of 4.


INNOVATION WORKSHOPEvery week the engineering team carries out the innovation workshop, aimed at finding solutions to everyday technical problems and innovating the professional training of each employee. The group’s ob-jective is to identify products and processes that can be patented.

OUTPLACEMENT POLICYIn terms of programs aimed at promoting the employability of workers and the man-agement of the end of their professional careers, Renault Argentina applies an out-placement policy, which is intended for the management line. The allocation of these types of programs helps the employee to re-enter the labor market faster.

PERFORMANCE AND DEVELOPMENT ASSESSMENT The performance evaluation of employees is a valuable tool for setting goals, analyzing performance, verifying compliance, and detecting possible improvements in the professional development of each of them.

EMPLOYEES’ DEVELOPMENT

TALENT@RENAuLT PERfORMANCE ASSESSMENT

→ Tool to manage human resources more efficiently and globally

→ Clear and shared rules, objective evaluation of the individual con-tribution to the company success, and strengthening the relation-

ship between performance and compensation

It is annually carried out to 100% of the staff that is outside the collective bargaining agreement, both in Buenos Aires

and in Cordoba.

The evaluations of daily paid staff are governed by what is indicated in the collective agreement signed by the organization.

No cases of discrimination have been identified during the period covered by the report.

COMPuLSORy INDIvIDuAL 3-STEP INTERvIEW:

1. Opening (beginning of year)

2. Review and redefinition of objectives

(middle of the year)

3. Closing (end of year)

IT MAKES IT POSSIBLE TO: → Set goals and analyze the employee’s performance

→ Detect aspects to improve in each employee

It directly impacts on professional development tools, remuneration and compensation.

NEW ASSESMENT CENTER

100% satisfaction in the management survey

on its implementation.


CONCEPT

Professional development and internal promotion

Motivation and recognition

Maintaining a good relationship with the intermediate management

Actions to balance personal and work life

Pride of being part of the company

Employee’s satisfaction

The organization and available means for performing work

People’s management carried out by the company

Training offered by the company

Work atmosphere

Internal communication functioning

Internal communication functioningWork atmosphere

Training offered by the companyPeople’s management carried out by the company

The organization and available means for performing workEmployee’s satisfaction

Pride of being part of the company Actions to balance personal and work life

Maintaining a good relationship with the intermediate managementMotivation and recognition

Professional development and internal promotion

Dialogue and communication GRI INDICATORS

G4-DMA, G4-26, G4-27,

WORK ATMOSPHERE SURVEY“Renault Group Employee’s Survey” This survey is aimed at gathering the opin-ion of employees regarding different issues and matters related to work atmospher.

93%WAS THE RESPONSE RATE IN 2015.

70% WAS THE SATISFAC-TION RATE IN 2015.

97%WAS THE RE-SPONSE RATE IN 2016.

79%WAS THE SATISFAC-TION RATE IN 2016.

The survey mainly evaluates two aspects: → Level of employees’ commitment. → Strengths and opportunities through the comparison of the results, both internally (within the Group) and externally (bench-marking with the industry and the market), allowing the development of action plans to address areas for improvement.

The results allow the implementation of different action plans to meet the needs identified.

(*) Scored on a scale of 100

2016 (*)

55

74

80

72

94

94

71

70

76

79

92

2015 (*)

39

61

69

69

89

92

59

54

69

67

77

EMPLOYEE’S SURVEY

2015 2016

0 2010 30 50 70 9040 60 80 100


79%WAS THE SATISFAC-TION RATE IN 2016.

COMMUNICATION CHANNELSKnowing that employees are a determin-ing factor in meeting business challenges, it is necessary to keep them informed about changes and news. They acknowl-edged this effort, showing 92% favorability with the Internal Communication in the VOC RH 2016 survey. Internal communi-cation is the product of a strategic analysis on points such as what to transmit, to whom, what means to use and what the expected results are.

The goal is to feedback communication and to invite all the company’s manage-ment to suggest news that may be of interest to employees.

Internal communication is also driven by Public Affairs, Communication and Sustain-ability Management, which has numerous means to keep collaborators involved: “Global” magazine, Renault News Site (an internal communication website), Renault

Working at Renault is Living a Renault Life.

“VIVI RENAULT” PROGRAM“Vivi Renault” integrates employees in a dynamic way in the company, creating value for each communication, promoting and developing employees’ well-being, and making them participate in the activities from a closer and more experiential place.

A new concept that includes information, activities, advantages, and integration and allows: Knowing; Growing; Making projects; Enjoying and Benefiting.

News TV (an audio-visual platform with 14 contact points and online updates) and Renault Argentina en 5 Minutos (a weekly newsletter), among others. Specific acti-vations and campaigns are also being de-veloped to promote the pride of belonging and brand image, carrying out test drives of new models, raffling tickets for sporting events and making employees participate in the launches and events.

With regard to Renault Argentina sustain-ability strategy, social investment pro-grams are the most visible and direct ar-ticulation with the community. In the early years, these programs were concentrated in the main places where the organization operates, that is to say, the province of Cordoba and Buenos Aires.

Over the years, and considering that the marketing activity is present in all the country, the programs were extended in alliance with dealers, suppliers, local civil society organizations, companies and public institutions.

4.1, 4.3,

4.4, 4.5

3.1, 3.2,

3.6, 3.7,

3.9

Framed in the Group’s global strategy, and together with Groupe Renault Corporate foundation, the main focus is placed on awareness, diffusion and education in the following aspects:

→ Road Safety → Development and integration of education

→ Environmental protection and care → Sustainable Mobility → Diversity

6.B, 13.3,11.2, 11.6,

11.B,

Action programswith the community. Social investment MATERIAL ASPECTS 19

GRI INDICATORS G4-DMA, G4-SO1, G4-SO2

ROAD SAFETY

DEVELOPMENT AND INTEGRATION OF EDUCATION

ENVIRON-MENTAL

PROTECTION AND CARE

SUSTSINABLE MOBILITY

RENAULT ARGENTINA AND FOUNDATION

DIVERSITY


Road safetyAs a leading company in the manufacture and marketing of automobiles, the organi-zation focuses on providing safety equip-ment for our vehicles, assuming the com-mitment to promote road safety and foster road education and sustainable mobility.

It promotes awareness and active participation for safe driving.

SAFETY AND MOBILITY FOR ALL“La Calle y yo”: The program emerges as an initiative carried out in public and pri-vate schools for children between 7 and 11 years old. Its aim is to generate, among the small ones, the ability to detect hazards, in their role as pedestrians, passengers and cyclists, providing Road Safety tools to generate responsible future pedestrians and drivers.

120.294STUDENTS HAVE PARTICIPATED OF THE PROGRAM “LA CALLE Y YO” SINCE ITS LAUNCH IN 2007.

TWO LEVELS:Smaller ones: 7 to 8

Older ones: 9 to 11 years old

TEACHING BOOKSTeachers’ Guide

Test for students Contests

www.programalacalleyyo.com.ar

SAFETY FOR ALL Ensure peace of mind and protection

in everyday trips

MOBILITY FOR ALL Respecting the planet during

daily commute

“LA CALLE Y YO” PROGRAM


10th Edition - Recognitions 2016

1ST PRIZEEscuela Roberto Romero (Salta) Dealer: Centro del NortePrizes: 4 bikes + 1 projector

2ND PLACERecognition of Commitment:IPSI 44 PE (Mendoza)Dealer: Mediterraneo

3RD PLACE “Juan Larrea” No 144 Elementary school (Santa fe)Dealer: Circular Rosario

4TH PLACEIncorporated Private School No 1191 “Santa Lucia” - Santa fe Dealer: Circular Rosario

LA CALLE Y YO

Students

Participating students

Participating students (accumulated)

Teachers

Participating teachers

Participating teachers (accumulated)

Schools

Participating schools

Participating schools (accumulated)

Areas of influence

Schools in the province of Cordoba

Schools in the province of Buenos Aires

Schools in other provinces

2016

3,753

120,294

149

4,431

15

810

2

4

9

2015

3,716

116,578

64

4,367

13

797

2

9

2

Agreements of co-participation

During 2015 and 2016, different agree-ments were signed, which made it pos-sible to continue carrying out the road safety program, articulated with different institutions:

Dealers → Mediterraneo Capillitas S.A., Mendoza Branch

→ Mediterraneo Capillitas S. A., Cordoba Branch

→ M. Tagle y Cia., Cordoba Branch → Pergamino Automotores → Pergamino Automotores, San Nicolas Branch

→ Ruta 3 Automotores – Ramos Mejia, Buenos Aires

→ Galante de Antonio, San Isidro, Buenos Aires province

GLOBAL PRIZE FOR ARGENTINE DEALERSTwo dealers, Pergamino Automotores and France Motors in San Juan, were distin-guished among the dealersof the Americas region at the “Dealer of the Year” (DOTY) awards ceremony, 2015 and 2016, respectively, held at headquarters in France, for their Sustainable work by actively working in “La Calle y Yo” program, with an impact on their local educational communities, integrated with Renault’s strategy of value chain.

→ France Motors – San Juan province → Centro Automotores Buenos Aires, CABA → Centro del Norte Salta → Circular Rosario → Centro Rosario → Macua – Santa Fe

Other Institutions → DAIA (Delegation of Argentine Jewish Associations)

→ Municipality of San Martin → Sancor Seguros Foundation, Sunchales, Santa Fe

→ Transit Department of the province of Chaco

→ Public Transit Authority and Education Department of the province of San Juan


TUS IDEAS, TUS INICIATIVAS PROGRAMFocusing on the young people next to get their driving license, Groupe Renault Corporate foundation develops the

international program “Tus Ideas, Tus Iniciativas”, to work on the promotion and awareness of this sensitive subject for the community.

The objective is to raise awareness of the impor-tance of compliance with road safety stan-dards in a creative and proactive way.

Since 2015, the local competition has joined the initiative of the International Program of PAU Education. In 2016, 12 countries participated, 88 schools in the world, of which 8 were Argentine.

2,393STUDENTS HAVE PARTICIPATED IN THE PROGRAM “TUS IDEAS, TUS INICIATIVAS”, SINCE ITS LAUNCH IN ARGENTINA.

TUS IDEAS, TUS INICIATIVAS

Students



Teachers



Schools



Area of influence

Schools in Buenos Aires province

Other provinces

2016

248

2,393

8

68

7

29

6

1

2015

144

2,249

7

61

3

26

2

1

Students between 15 and 17

→ Teacher and student’s handbook→ Test for students

→ Contests→ Exclusive web of the program

TUS IDEAS:→To reflect on the problems of road safety

and sustainable mobility→To reflect and disseminate

TUS INICIATIVAS:→ To carry out an awareness campaign

at school and / or in the local environment → To propose and carry out

TUS IDEAS, TUS INICIATIVAS

www.ideaseiniciativas.com.ar


SUSTAINABLE MOBILITY AND ROAD SAFETY FORUM The 1ST Forum on Sustainable Mobility and Road Safety was held at the Faculty of Eco-nomic Sciences of the University of Buenos Aires, in partnership with CEADS, IARSE, PNUD, CABA Transport Department, Conduciendo a Conciencia Civil Association, Sancor Seguros, CESVI, National Roads Directorate, Sociedad y Territorio, Commu-nicaRSE and Innovar Sustentabilidad.

The objective was to promote citizen participation and to install in the public agenda the priorities of infrastructure, com-munication and awareness on this subject.

WINNERS 2016Instituto Cervantes (Boulogne, San Isidro):

http://safety-mobili-ty-for-all.com/school-story/if-you-are-going-drive-do-not-drink-alcohol

Groupe Renault Corporate Foundation works for the construction of a collective public agenda on road safety.

“We worked on the aspects that most interested and worried us: Excess of al-cohol, designated driver, among others”.

“CONDUCIENDO A CONCIENCIA”Since 2015, it has been articulated with Conduciendo a Conciencia Civil Association for the diffusion of the program for youth in the schools where they conduct their Road Safety talks.

http://www.conduciendoaconciencia.org/

WINNERS 2015Escuela Argentina del Oeste (Ramos Mejia Buenos Aires)

https://www.youtube.com/watch?v=eU-kySaojmWY&feature=youtu.be


RENAULT TECHNICAL INSTITUTE

Students (secondary level)


Women

Men

Scholarship students

Students (tertiary level and extension courses)


Women

Men

Scholarship students

Development and integration of Education

RENAULT TECHNICAL INSTITUTESince 1962, Renault Technical Institute (RTI) promotes and fosters the technical training of adolescents and young people.

Renault Technical Institute works so that students may achieve the necessary competences for a full insertion in the world of adults, through the commitment

2016

278

10

268

28%

905

29

876

81

2015

265

8

257

27%

813

22

791

80

→ In the period, 7 employees studied at Renault Technical Institute.

→ As of 2011, enrollment for women was accepted, and currently, there are 39 women in total, 10 in the secondary and 29 in the tertiary level.

→ 28% of RTI students at secondary level has been granted a scholarship by the Foundation.

IMPROVING EDUCATIONAL QUALITY → Together with Civil Society organiza-tions, we support the strengthening of educational inclusion programs. Through an alliance with Junior Achievement, 31 students of Renault Technical Institute participated in the Industrial Young Entrepreneurs program.

→ Together with the Ministry of Education of the province of Cordoba, 10 young professionals participated in “Enseña por Argentina” program in 10 secondary schools, working with 1,200 children from vulnerable areas.

to academic excellence and full training in values such as respect, dedication, re-sponsibility and effort in study and work.

With an annual average of 1,100 students in the last three years, RTI located in San-ta Isabel Factory, Cordoba, currently hasa great educational offer.

Mechanical Technician (2 years)

→ Advanced Technical Degree in Engines (3 years)→ Advanced Technical Degree in Motorcycle Mechanics and Electronics → Advanced Technical Degree in Plastics and Elastomers

→ Automobile Expert→ Industrial Expert→ Industrial Maintenance Expert→ Professional Training in Automotive Technology→ Other trainings:Logistics, Higher Diploma in Automobile Management, Robotics Workshop, Automotive Repainting

SECONDARY LEVEL TERTIARY LEVEL JOB TRAINING


In 2016, the contents were updated by the biologist and peda-gogue of the social organization Casa Tierra (specialists in environ-mental education).

Protection and Environmental Care

ENVIRONMENTAL EDUCATION FOR ALL“Educacion Ambiental para Todos” program is focused on 4 themes:Water, Biodiversity, Energy, Consumption and Garbage, in order to generate aware-ness in its use and treatment. It is directed to children of the last years of primary school, their teachers and the citizens of their educational community.

The schools participating in the program receive a complete kit of teaching materials and handbooks, specially developed by specialists in psycho-pedagogy and biology, adapted to

25,427students have participat-ed in the program since its creation in 2009.

EDUCACIóN AMBIENTAL PARA TODOS

Students



Teachers



Schools



Areas of influence

Schools in the province of Cordoba

Schools in the province of Buenos Aires

2016

1,179

24,248

44

1,436

19

341

12

7

2015

1,198

23,050

55

1,381

20

321

16

4

school syllabus. Teachers develop the proposed contents and reflect in class on the environmental issue. At the end of this stage, the children and their teachers par-ticipate in a contest of “Campañas de Bien Publico”, which promotes the message of care and respect for the environment.

The program is also implemented by other companies interested in adding, in their ac-tions and regional programs, the proposal of Educacion Ambiental para Todos. As the case of Sancor Seguros Foundation, which for the 3rd consecutive year has an impact on Sunchales city www.educacionambientalparatodos.com/

Students between 11 and 15 years old

EDUCACIóN AMBIENTAL PARA TODOS→ Sharing information on water, biodiversity,

energy, consumption and garbage→ Caring for and respecting the environment

→ Handbook for teachers and students → Parent Guide

→ Contest “Campaign for Public Good”→ Exclusive Web for the program

→ Test of Ecological Footprint→ Biodiversity file


Recognitions 2016

Buenos Aires:

1ST PRIZE:EP No 82 - fray Mamerto Esquiu School

2ND PRIZE:Santa Maria de Nazareth School

Cordoba:

1ST PRIZE:Don Orione School – 6Th C

2ND PRIZE:Jesus Ismael Recalde School - 6Th A

DISTINTION:Jesus Maria School

To select the participat-ing schools, employees are asked to “sponsor” educational establish-ments. In 2015-2016 editions, 28 employees of the company present-ed schools and accompa-nied them in their pro-cesses, showing commit-ment to care for the environment, both strategically and operationally.

TRAINING OF ENVIRONMENTAL TRAINERSIn partnership with Argentine Institute of Corporate Social Responsibility (IARSE), a training program on environmental educa-tion was conducted, “Sustainability from School to the Planet and Society”, aimed at teachers. It was carried out in 5 Argentine regions, with a participation of more than 2.000 teachers of secondary schools, and was replicated during 2 days in Paraguay. The Foundation provided the contents on Educacion Ambiental para Todos. They are available for free at:www.rsdocentes.org

ECOBOCHOS – ENVIRONMENTAL TRIVIAIn the framework of Educacion Ambien-tal para Todos program, a free app called ECOBOCHOS (available for Android and desktop) was launched. It is a training game of questions and answers on environmental education topics, based on the students’ notebook of Educacion Ambiental para Todos, for adolescents and young people aged 15 to 19 years old.

Recognitions 2015

Buenos Aires:

1ST PRIZE:EP No 82 - fray Mamerto Esquiu School – 6Th A, B and C

2ND PRIZE:San Miguel Arcangel School - 5Th A, morning shift

SPECIAL RECOGNITION:Nuestra Señora de Lujan de los Patriotas Institute - 6Th A and B

Cordoba:

1ST PRIZE:Padre Sebastian Raggi School - 6Th D

2ND PRIZE:Gral. Jose Maria Paz Institute - 6Th A

SPECIAL RECOGNITION:Padre Sebastian Raggi School - 6Th B


3R CAMPAIGNIn 2015, the 3R internal campaign began in the offices of Buenos Aires, to generate habits of responsible behaviors, based on 4 axes:

→ Waste sorting and recycling → Responsible use of energy → Responsible use of water → Reuse of materials

In terms of waste, awareness about waste sorting at source is promoted, as well as how to implement it through proper use of waste sorting bins.

www.youtube.com/watch?v=x9BRDngTJis

GARRAHAN FOUNDATIONSince 2002, Renault Argentina has par-ticipated in the paper recycling program developed by the Garrahan Foundation.

CAMPAIGN OF INTERNAL AWARENESS - CARING FOR RESOURCES To generate awareness about the care for the environment, and coinciding with the environment month, different and varied activities were generated for all the compa-ny’s employees.

→ Communication of environmental values: A flyer for all employees on: Recycling paper, environmental policy of Santa Isabel factory, tips and dissemina-tion of Educacion Ambiental para Todos program. Themed place mats, brochures, and a trivia with raffle.

→ Drawing contest: “Nosotros y Renault Cuidamos el Planeta”: for children, grandchildren, nephews or brothers up to 15 years old of all employees.

→ In 2016, some 7,545 kg of paper were do-nated for recycling.

→ In 2015, some 6,676 kg of paper were do-nated for recycling.

IN 2015 AND 2016, SOME 1,173 KG OF PAPER

WERE RECYCLED.

IN 2015 AND 2016, SOME 1,173 KG OF PAPER

WERE RECYCLED.

IN 2016, SOME 50 KG OF WASTE WAS RECYCLED

PER MONTH (GLASS, PLASTIC, STYROFOAM

AND ALUMINUM


ECO DRIVINGEvery year the company offers courses to improve driving behaviors to reduce con-sumption, care for the environment and generate greater car efficiency.

In total, 235 people participated, invited by CEADS, RED Di Tella, IARSE, PGNU, CCIFA and GDFE institutions.

Each edition of the program seeks to add efforts in a cause of public good. In the 2016 edition, Groupe Renault Corporate Founda-tion together with digital magazine Cuyo Motor organized a Renault Duster caravan, which visited rural schools in San Juan and Mendoza to distribute donations.

VIVI SUSTENTABILIDADIn November 2016, the “Vivi Sustentabili-dad” Day was held, the first experience of direct link from a sustainability perspective, in order to make the concept of sustainable development more tangible, and to increase commitment to others and with the inte-gral economy.

Renault Argentina, participated in this ex-perience by proposing a test drive of Twizy electric model.

The contribution of Groupe Renault Corporate Foundation has developed into the construction of 10 Child Malnutrition Prevention Centers, which have benefited more than 2,000 mothers and children per year.

Sustainable mobility

In 2016, we sponsored the 7th edition of Marathon Conin, which was held in Mendo-za. Two bicycles were donated for the raffle at that event, which was attended by more than 1,000 people.This Marathon aims at summoning every-one to walk, jog or run with family and friends, and thus, raising funds for Conin Foundation.

CENTER

Conin Prevention Center Las Heras (Mendoza)Conin Center CDP 1 (Rosario, Santa Fe)Conin-Cepan Center (Tigre, Buenos Aires)Conin Center (Corrientes, Capital)Conin Center Barranqueras (Chaco)Conin Center SENDAS (González Catán, Bs. As.)Conin Center Villa el Libertador (Cordoba)Conin Center Jose C Paz (Buenos Aires)Conin Center Pilar (Derqui, Buenos Aires)Conin Center Ituzaingo (Corrientes)TOTAL

2015

267

415

64

182

46

106

323

257

2451,905

2016

275

1.483

127

145

64

102

240

178

1402,690

2002

2003

2004

2005

2006

2007

2008

2009

2010

2014

DIRECT AND INDIRECT BENEFICIARIES

YEAR OF CREATION

Prevention Model Center

CONIN CENTERSSince 2002, Groupe Renault Corporate Foundation, has been working with Coop-eradora para la Nutricion Infantil (Conin), which focuses on the rehabilitation and prevention of child malnutrition.

INCLUSIVE MOBILITYRenault group at the global level is com-mitted to the principle of Sustainable Mo-bility, which includes providing inclusive mobility that strengthens the actions of civil society organizations in their commu-nity management, generating the pos-sibility of transporting both people and professionals focused on humanitarian aid and social promotion.

In the period, civil society organizations of Conin and Conduciendo a Conciencia received a new Kangoo unit, in its van and passenger versions respectively.

Haciendo Camino Foundation also re-ceived a new Kangoo unit equipped as an ambulance, in order to guarantee health mobility to all community members of Monte Quemado, Añatuya, Herrera and Suncho Corral in the province of Santiago del Estero.


Diversity

GENDER → Groupe Renault Corporate Foundation and the CSR Department of the province of Buenos Aires signed an agreement to offer courses of empowerment and leadership. Fuerzas Vitales Foundation will be in charge of implementing them as of the second quarter of 2017. The program is aimed at 1,440 female community leaders from 6 municipalities in Buenos Aires. The training program in team manage-ment was developed together with Los Grobo Foundation for 30 women from Mana Cooperative in the city of Santa Fe.

→ Together with Liderazgos y Organi-zaciones Responsables Foundation, it was agreed to train four female employees in Mujeres en Lugar de Decision program.

→ In order to support Enlazate program, the dissemination of the 3rd Breast Cancer Congress was facilitated for the care and

prevention to patients and relatives of the regional hospital network of all the country linked to Hospital Austral.

INCLUSION

→ Redes Culturales Pradier foundation: We accompanied the transfer logistics of the International Youth Philharmonic Festival in Chaco. Additionally, a number of scholarships were awarded for 5 musical workshops addressed to more than 120 children in situation of vulnerability.

→ Rombo de Oro: Together with the journalistic circle of Cordoba, every year sports professionals with a broad career are distinguished. The prize is aimed at all types of sports, both at the standard level and to those with reduced or special abilities.


FIRST PET FRIENDLY AUTOMOBILE COMPANY IN THE COUNTRY

Aligned to the Global strategy, and in the pursuit of active participation and com-munity development, in 2016, Renault Pet Friendly initiative was launched.

The initiative includes: → Pets allowed at dealers. → Diffusion of safety measures and comfort for traveling in a car with a dog.

→ Itinerant family festivals, going round the main municipalities of the country, bringing the residents closer to the possibility of celebrating Renault Pet Friendly initiative with their families and pets.

→ Donating food to pet shelters. For every test drive request made by any customer anywhere in the country, one kilo of food is donated to dog shelters.

The main impacts that occur from Renault Argentina on local communities have to do with the vehicle manufacturing process in Santa Isabel factory. Under the premise that activities must respect the environ-ment, the factory is responsible on a daily basis of integrating operations with the environment and with the local community. In this sense, based on the results that are evidenced from environmental indicators, which are audited and monitored every year by Renault Group, and from risk moni-toring and supervision activities performed by the Internal Control Committee and Risk Management Argentina, no significant negative or actual impacts on thelocal community are identified

To learn more about the program, visit: http://petfriendly.renault.com.ar/

RENAULT Customer

Access to the Brand Knowing the Customer

Continuity of RelationshipCustomer Relationship Policy

Customer Relationship Service

Mi Renault program

Quality surveys

Customer Satisfaction Plan

Product and Service Quality

PRODUCT AND SERVICE LABELLINGGRI INDICATORS G4-DMA, G4-PR3, G4-PR4, G4-PR5

12.8

VEHICLES Vehicles are designed with the firm will to respect the impact on sustainability throughout their service lives, both in their manufacturing, as well as their use and even at the end of the vehicles’ life. This commitment materializes with the informa-tion that customers have on 100% of the vehicles, before and after their purchase.

CataloguesThey can be consulted on Renault Argentina website and at the respective official dealers, with an exhaustive description of their char-acteristics and usability conditions, with clear, precise and detailed information and an agile and simple reading.

handbooksRenault handbooks, conceived and pro-duced in all plants of the world, use the same criteria of information. All units are delivered with their respective handbooks, which include detailed information on:

→ Characteristics of the unit, equipment and operation.

→ Eco-driving and anti-pollution operating tips (RENAuLT ECO² LABEL).

→ Information related to the safety of adult and child passengers, regarding the use of safety belts, airbag, devices and safety seats for children.

→ Aspects that make driving more comfortable (air, storage places, trunk, parasol, etc.).

→ Unit maintenance (oil, battery, brake fluid, among others).

→ Practical advice. → Technical characteristics (motor identifi-cation, dimensions, weights, among others).

→ Factors that are the driver’s responsibility.

Product liability MATERIAL ASPECTS 2, 7

GRI INDICATORS G4-DMA

Queries Front

ClaimsBack Office

Kindness Immediate Response

Service Delivery Quality of Contact

Social networks

Web Renault Tel. Line

Renault Comercial Network


Handbooks also include warnings about factors that are the responsibility of the driver, and should be taken into account when using a vehicle.

Extract from Renault Captur Handbook 85% of your vehicle can be recycled and can be valued 95%. To achieve these objec-tives, many parts have been designed to be recycled. Architectures and materials have been specially studied to facilitate disassembly of these components and their treatment in specific centers. With the aim of preserving raw material resources this

vehicle incorporates numerous parts made of recycled plastic materials or renewable materials (plant or animal materials, such as cotton or wool).You may also contribute to respect the environment.

→ Worn out and replaced parts, during the routine maintenance of your vehicle

(battery, oil filter, air filter, batteries) and oil tanks (empty or filled with used oil) must be disposed of in specialized organizations.

→ At the end of the vehicle’s life cycle, it must be delivered to authorized centers where responsible recycling will be carried out.

→ In any case, observe local laws.

PARTS AND SPARE PARTSIn relation to parts and spare parts market-ed by Renault Argentina, 100% are source labeled, being the vehicle’s battery the only product with a high environmental impact that has to be handled, which is clearly identified and labeled.

No regulatory and / or voluntary code breaches regarding information and label-ing of the brand’s products and services have been identified in the country.

ANTI-POLLUTION

RENAULT ECO2 LABEL


LEVEL OF SERVICE- ANSWER TO INQUIERIES

CUSTOMER RELATIONSHIP SERVICEThe policy “Customer Relationship”, aims at satisfying and gaining the loyalty of Renault Argentina’s customers.

The Customer Relationship Service area is in charge of contacting customers to pro-vide satisfactory solutions for Renault users.

→ It carries out surveys on Service and Sales Quality, to know the level of customer satisfaction, both in the vehicle purchase and repair.

→ Answers to inquiries or complaints.

2016

97%

2016

37%

AVERAGE OF SATISFIED CUSTOMERS WITH THE ANSWER RECEIVED

(*) 2 month average

(*) 2 month average

Claims (Back Office)During 2015 and 2016, an average of 1,202 customers per month was served.

They were mainly concerned with the avail-ability of spare parts and issues related to the product or the dealer.

2015 (*)

28%

2016

24%

AVERAGE OF CUSTOMERS SATISFIED WITH THE RESPONSE RECEIVED

2015

94%

2015 (*)

39%

Inquiries (front Office)During 2015 and 2016, an average of 1,263 monthly consultations were received.


CUSTOMER PROMISE PLANThe Customer Promise Plan focuses on continuous improvement in customer relationships as well as ensuring the highest standard of quality in products and services throughout the country. The 7 commitments of the Customer Promise Plan:

QUALITY SURVEY The Quality Survey is a source of informa-tion, which allows verifying compliance with Customer Service and identifying possible improvements.

Quality of Sale results: → Customers recommending the dealer with confidence

Homogenize customers with high standards of quality of care.

YEAR

2015

2016

RESULT

59.8%

68.2%

IS THE CUSTOMERS’ GROWTH THAT WOULD RECOMMEND THE DEALER WITH CONFIDENCE, REGARDING SALE QUALITY IN 2016.

14 %Results in Quality of Service:

→ Customers recommending the dealer with confidence

changed. It was no longer answered by telephone and was carried out via e-mail instead.

Note: As of the second half of 2015, in both cases (quality of sales and service), the methodology for Customer’s Survey

YEAR

2015

2016

RESULT

68.7%

73.5%

IS THE INCREASE, IN 2016, OF CUSTOMERS WHO WOULD RECOMMEND WITH CONFIDENCE THE DEALER, REGARDING THE QUALITY OF THE SERVICE.

7%

To answer your inquiries via inter-net in less than one business day.

To offer you a test drive on a vehi-cle of our demonstration fleet.

To return your vehicle after a service intervention, at the agreed time and price.

Not to charge any service inter-vention carried out without your approval.

1

4

2

5

3 6

7

To guarantee for 12 months any intervention performed by you at our service points (including spare parts and work).

To reward your loyalty by making you enjoy privileged advantages in Mi Renault.

To guarantee a competitive and homogeneous price for maintenan-ce service throughout the country.


CLIO Mio

SANDERO GT Line(*)

SANDERO

SANDERO Stepway

LOGAN

DUSTER

FLUENCE(**)

MEGANE III

KANGOO

CAPTUR

CLIO Work

Duster OROCH

MASTER Furgon

MASTER Minibus

KANGOO Express

MEGANE Coupe R.S.

FLUENCE GT2

SANDERO R.S. 2.0

EURO 4

EURO 5

(*) SANDERO GT Line Euro 5 since March 2016. The vehicle was not marketed under Euro 4 standard. It was born

with the definition of Euro 5 emissions.(**) FLUENCE 2,0 16v CVT, Euro 5 since December 2016. FLUENCE GT2 and FLUENCE 1.6 16v, Euro 5 since May 2015.

Customers’ health and SafetyGRI INDICATORS G4-DMA, G4-PR1, G4-PR2

16.3

Customers are a priority for Renault Group and for Renault in Argentina. Therefore, from the creation stage of vehicles, through design, manufacture and use, the aspects that have to do with customers’ health and safety are evaluated periodically, with the aim of promoting improvements and com-plying with regulations in this area.

EMISSION STANDARDSince January 2016, the Euro 5 standard on pollutant emissions has been in force in Argentina, which regulates the acceptable limits for emissions of internal combustion gases. Renault Argentina started moving from Euro 4 to Euro 5 standard from 2015, and even before in some cases, the latter being compulsory starting in 2016, for the new models launched and for preexisting models, from in 2018.

EMISSION STANDARD


(*) Available for vehicles with MEDIA-NAV

VEHICLE SAFETYSafety is a fundamental axis of the brand. Vehicles are equipped with the latest active and passive safety technology, which are pe-riodically tested by Renault and the enforce-ment authority, the National Road Safety Agency and the Ministry of Production.

In 2008, vehicles began to increase consid-erably their safety level and today they have modern equipment, which provides safety and comfort to drivers and passengers of Renault units. In 2014, the first quality leap was taken with the equipment for light

ECO DRIVINGThe “Eco-Driving” program aims to make customers and general public more aware of how to drive in a more sustainable way, sav-ing fuel, contaminating less and reinforcing those behaviors that allow us a safer driving.

ECO2 DRIVING DRIVER ASSISTANCE:

→ Promotion and education: The vehicles of the brand(*) have an on-board system that informs and promotes Eco Driving.

→ This is Driving eco2, which displays the following information on the screen:

→ Ride: Average consumption, Total consumption, Average speed, Distance without consumption.

passenger vehicles with dual front airbags and anti-lock braking system (ABS).

Another improvement that will definitely be a before and after in terms of vehicle safety, and which is already being worked on, is the incorporation of ISOFIX anchors, rigid anchorages for baby seats, which complement the action of three-point seat belts, required for all vehicles produced and/or imported after 2018, and lateral impact tests and the Electronic Stability Control System (ESC), which will be mandatory for

new vehicles produced and/or imported starting from January 2018 as well.

Renault takes these requirements very se-riously and works from the engineering for its implementation in new projects, as well as in the adaptation of the current range as appropriate.

No incidents of non-compliance with regu-lations or voluntary codes relating to health and safety of products and services have been identified in the reporting period.

Renault Duster Oroch was granted the Crash Test award by CESVI Argentina, as the safest vehicle of 2016 in the category. Launched in April of that same year, it is the first pickup of the brand.

In 7 years of application, more than 2,040 drivers have carried out the program in different parts of the country.

The goal of an Eco Driver is to save energy and money by limiting pollution and CO2 emissions that lead to greenhouse effect, as well as improving everyone’s safety.

Eco Driving generates be-tween 5% and 20% reduc-tion in fuel consumption.

Between 10% and 15% less traffic accidents.

→ Eco classification: This menu allows a global score of 100. The higher the score, the better the behavior as an eco-driver.

→ Eco coaching: This menu evaluates the driving style and gives the driver the most appropriate tips to optimize their fuel consumption.

88 /SUSTAINABILITY REPORT 2015 - 2016

Sirs,Renault Argentina S.A.Fray Justo Santa María de Oro 1744 - CABA(Autonomous City of Buenos Aires)CUIT: 30-50331781-4

1. Identification of the information object of the entrusted taskWe have been hired by Renault Argentina S.A. to issue a limited assurance report on the information contained in the attached 2015-2016 Sustainability Report for the period from 1 January 2015 to 31 December 2016 and the self-dec-laration made by Renault S.A. on that the contents have been complied with under the Guidelines for the elaboration of Sustainability Reports of the Global Reporting Initiative, ver-sion G4 (hereinafter “GRI G4”) in its comprehensive option.

2. Responsibility of the Company’s Management in relation to the information that is the subject of the entrusted task.Renault Argentina is responsible for:

→ The content of the attached Sustainability Report 2015-2016, which implies determining the performance indicators to be included, and those relevant to the interest groups to which it is addressed;→ The definition of the applicable criteria in the elaboration of this Sustainability Report. The criteria adopted by the entity are those defined by GRI G4 Guidelines;→ The maintenance of appropriate records to support the relevant information management process for the purpos-es here stated and to carry out the performance measure-ment based on established criteria;

→ The design, implementation and execution of adequate internal controls for the preparation of the information under analysis;→ The preparation and presentation of the attached Sus-tainability Report.

3. Responsibility of certified public accountantsOur responsibility is to carry out our task of issuing a limit-ed and independent assurance report in accordance with the standards established by the Argentine Federation of Professional Councils in Economic Sciences in accordance with Technical Resolution No. 37. These standards require that we comply with the ethics requirements, and that we plan and perform the task in order to issue a limited and independent assurance report on the social evaluation with the scope detailed in this report.

In a limited assurance report, evidence is obtained, based on proofs on a selective basis, of the evidence related to the sustainability information covered by our report. It is also contains an assessment of the estimates, and inquiries to the people responsible for the preparation of the informa-tion presented, and other similar procedures, which have a smaller scope compared to an audit, and, therefore, it is not possible to obtain certainty about whether we have got to know all significant issues that could be identified in an audit or in a reasonable assurance work. To obtain a limited assurance on the information included in the accompany-ing social report, our task consisted in:→ Interviewing the management and staff of the entity responsible for collecting the information and prepar-ing the performance indicators, attached in Annex 1, for the purpose of obtaining an understanding the entity’s

Limited assurance report by independent public accountants (on Sustainability Report)

Deloitte & Co. S.A. Commercial Registration. CPCECABA Volume No. 1 Page 3

Deloitte refers to one or more of the member firms of Deloitte Touche Tohmatsu Limited (“DTTL”), a private company limited by guarantee registered in

the United Kingdom, its member firm network, and its related entities. DTTL and each of its member firms are single and independent and legally separate

entities. DTTL (also known as “Deloitte Global”) does not provide services to customers. A detailed description of the legal structure of DTTL and its member

firms can be found at www.deloitte.com/about

Deloitte Touche Tohmatsu Limited is a private company limited by guarantee registered in England and Wales under number 07271800, with legal address

at Hill House, 1 Little New Street, London, EC4a, 3TR, United Kingdom

Deloitte & Co. S.A.Florida 234, 5° pisoC1005AAFCiudad Autónomade Buenos AiresArgentinaTel.: (+54-11) 4320-2700Fax: (+54-11) 4325-8081 /4326-7340www.deloitte.com/ar


Deloitte & Co. S.A. Commercial Registration. CPCECABA Volume No. 1 Page 3

Deloitte refers to one or more of the member firms of Deloitte Touche Tohmatsu Limited (“DTTL”), a private company limited by guarantee registered in

the United Kingdom, its member firm network, and its related entities. DTTL and each of its member firms are single and independent and legally separate

entities. DTTL (also known as “Deloitte Global”) does not provide services to customers. A detailed description of the legal structure of DTTL and its member

firms can be found at www.deloitte.com/about.

Deloitte Touche Tohmatsu Limited is a private company limited by guarantee registered in England and Wales under number 07271800, with legal address

at Hill House, 1 Little New Street, London, EC4a, 3TR, United Kingdom.

policies on sustainability, the activities implemented and the systems of data collection used and to evaluate the application of GRI G4;→ Carrying out tests, on a selective basis, to verify the accu-racy of the information submitted regarding the indicators mentioned in Annex 1;→ Analyzing, where appropriate, the information systems and methodology used for the compilation of the quanti-tative data corresponding to the performance indicators of the entity;→ Inspecting, on a selective basis, the existing documenta-tion to corroborate the Management’s statements in our interviews and to determine if they conform to the reality of Renault Argentina S.A., and its self-declaration “in accor-dance with” the Guide for its “Comprehensive” option on the basis of the criteria established in GRI G4 Guidelines.

We believe that the evidence and the information we have obtained provide a sufficient and adequate basis for our limited assurance conclusion. Non-financial information is subject to its own limitations, given its nature and meth-ods used to calculate, sample or estimate values, which are subject to individual assumptions and criteria. We have performed no work outside the agreed scope and there-fore our conclusion is limited only to the revised sustain-ability information.

4. ConclusionBased on the work described in this report, nothing drew our attention nor made us think that the 2015-2016 Sus-tainability Report attached for the period 1 January 2015 to 31 December 2016 and the self declaration of Renault S.A. have not been prepared, in all their significant aspects,

in agreement with the guidelines set forth for the level “in accordance with” the Guide for its “Comprehensive “ option on the basis of the criteria established in GRI G4 Guidelines; nor do the performance and information indicators includ-ed in these documents contain significant misstatements that do not match the records and files that served as the basis for their preparation.

Autonomous City of Buenos Aires, 17 May 2017

DELOITTE & Co. S.A.(Commercial Registration C.P.C.E.C.A.B.A. Volume No. 1 Page 3)

Martín M. CarmuegaCertified Public Accountant (UBA) C.P.C.E.C.A.B.A. – Volume No. 264 – Page No. 198

Content Index

GRI


STRATEGY AND ANALYSIS

G4-1

G4-2

ORGANIZATION’S PROFILE

G4-3

G4-4

G4-5

G4-6

G4-7

G4-8

G4-9

G4-10

G4-11

G4-12

G4-13

G4-14

G4-15

G4-16

MATERIAL ASPECTS AND COVERAGE

G4-17

G4-18

G4-19

G4-20

G4-21

G4-22

G4-23

PARTICIPATION OF STAKEHOLDERS

G4-24

G4-25

G4-26

G4-27

REPORT PROFILE

G4-28

G4-29

G4-30

G4-31

G4-32

G4-33

GOVERNANCE

G4-34

G4-35

G4-36

4, 5

4, 5, 23

8

10

8

8, 10

8

8, 10

12, 56

12, 56

12, 63

12, 13, 35, 37

8, 12, 13

39

14

14

8

28

28

28

28

28

28

31

31

31

31

28

28

28

28

28

28

17, 28

17, 28

17

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

8. Decent work and

economic growth

8. Decent work and

economic growth

Statement by the principal responsible for the organization’s decisions on the importance of sus-

tainability - for the organization and the strategy of the organization with a view to addressing them.

Describe the main effects, risks and opportunities.

Name of the organization.

Most important brands, products and services of the organization.

Location of the organization’s headquarters.

Countries in which the organization operates.

Nature of the property regime and its legal form.

Markets served by the organization.

Scale and dimensions of the organization

Composition of the organization’s employees.

Percentage of employees covered by collective bargaining agreements.

Description of the organization’s supply chain.

Significant changes that occurred during the period, in size, structure, ownership,

among others

Indicate how the organization addresses, where appropriate, the precautionary principle.

List of economic charters, principles or other external initiatives regarding environmental and

social matters that the organization subscribes or has adopted.

List of national and international advocacy associations and organizations to which

the organization belongs.

List of entities in the consolidated financial statements of the organization, indicating - if any

of these entities are not included in the report.

Description of the process followed to determine the content of the report and the coverage -

of each aspect.

List of the material aspects that were identified during the process - of defining the content of

the report.

Coverage of each Material aspect within the organization.

Coverage of each Material aspect outside the organization

Consequences of the reformulations of the information provided in previous -

reports and their causes.

Point out any significant changes in the Scope and Coverage of each Aspect with respect -

to previous reports.

List of stakeholders linked to the organization.

Basis for the choice of the stakeholders with whom the organization works.

Organization’s approach on stakeholders’ engagement.

Point out key issues and problems that have emerged as a result of stakeholders’- engagement

and describe the evaluation carried out by the organization.

Period object of the report.

Date of last report.

Report presentation cycle.

Point of contact to resolve doubts that may arise in relation to - the content of the report.

Which “compliance” option with the Guide has chosen the organization, provide the GRI Index -

of the option chosen and provide the reference to the External Verification report, if applicable.

Organization’s current policy and practices with regard to the report external verification

Governing structure of the organization, the committees of the senior governing body.

Describe the process by which the senior governing body delegates its authority to senior man-

agement - and to certain employees in matters of economic, environmental and social nature.

Indicate whether there are executive or responsible positions in economic, environmental and

if their holders report directly to the superior governing body.

GENERAL BASIC CONTENTS

GENERAL

BASIC

CONTENTS

PAGE EXTERNAL

VERIFICATION

SUSTAINABLE

DEVELOPMENT

OBJECTIVE

DESCRIPTION


G4-37

G4-38

G4-39

G4-40

G4-41

G4-42

G4-43

G4-44

G4-45

G4-46

G4-47

G4-48

G4-49

G4-50

G4-51

G4-52

G4-53

G4-54

G4-55

31

17

17

17

17

17

28

17

17

17

17

28

28

28

17

17

17

17

17

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

16. Peace, justice

and solid institutions

5. Gender equality

16. Peace, justice


16. Peace, justice


5. Gender equality

16. Paz, justicia e

instituciones sólidas

16. Peace, justice


4. Quality education

16. Peace, justice


16. Peace, justice


Describe the processes of consultation between stakeholders and the senior governing body

with respect to economic, environmental and social issues.

Describe the composition of the superior governing body and its executive and non-executive

committees; independence; seniority in the governing body; specific activities and nature of

such activities; competences related to economic, environmental and social effects.

Indicate whether the person who presides over the senior governing body also holds

an executive position.

Describe the processes of appointment and selection of the senior governing body and its com-

mittees, as well as the criteria on which the appointment is based.

Describe the processes by which the superior governing body prevents and manages

potential conflicts of interest.

Describe the functions of the senior governing body and senior management in the development,

approval and updating of the purpose, values or mission statements, strategies, policies and objec-

tives related to the economic, environmental and social impacts of the organization.

Describe the steps taken to develop and improve the knowledge of the senior governing body

in relation to economic, environmental and social issues.

Explain the processes of evaluation of the performance of the senior governing body in

relation to economic, environmental and social affairs and describe the measures adopted

as a result of the evaluation.

Describe the role of the senior governing body in the identification and management of econom-

ic, environmental and social impacts, risks and opportunities. In addition, indicate whether the

stakeholders are consulted in the identification and management of impacts, risks and opportu-

nities of economic, environmental and social nature.

Describe the role of the senior governing body in analyzing the effectiveness of risk management

processes of the organization with regard to economic, environmental and social affairs.

Indicate how often the senior governing body analyzes the impacts, risks and opportunities

of economic, environmental and social nature.

Indicate which is the most important committee or position that reviews and approves the orga-

nization’s sustainability report and ensures that all Material aspects are reflected.

Describe the process to inform important concerns to the senior governing body.

Point out the nature and number of important concerns that were transmitted

to the senior governing body; describe the mechanisms used

to address and evaluate them.

Describe remuneration policies for the senior governing body and senior management, and

relate the performance criteria for the remuneration policy with the economic,

environmental and social objectives of the senior governing body and senior management.

Describe the processes by which remuneration is determined. Indicate if consultants

are asked to determine the remuneration and if they are independent of the management.

Indicate any other type of relationship that such remuneration consultants

may have with the organization.

Explain how stakeholders’ opinion is asked and taken into account regarding remuneration,

including, where appropriate, the results of voting on policies and proposals

related to this issue.

Calculate the relationship between the total annual salary of the highest paid person in the

organization in each country where significant operations are carried out with the average annual

total remuneration of all payroll (not counting the highest paid person) in the corresponding country.

Calculate the relationship between the percentage increase in the total annual salary of high-

est-paid person in the organization in each country where significant operations are carried out

with the percentage increase in the average total annual salary of all payroll (not counting the

highest-paid person) in the corresponding country.


GENERAL

BASIC

CONTENTS

PAGE EXTERNAL

VERIFICATION

SUSTAINABLE

DEVELOPMENT

OBJECTIVE

DESCRIPTION


ETHICS AND INTEGRITY

G4-56

G4-57

G4-58

CATEGORY: ECONOMY

Material aspect: Economic performance

G4 - DMA

G4-EC1

G4-EC2

G4-EC3

G4-EC4

Material aspect: Procurement practices

G4 - DMA

G4-EC9

CATEGORY: ENVIRONMENT

Material aspect: Energy

G4 - DMA

G4-EN3

17, 19

19

19

23, 28, 31,

33

33

23

33

33

23, 28, 31,

35

35

23, 28, 31,

39, 43

43

-

-

-

16. Peace, justice


16. Peace, justice


16. Peace, justice


2. Zero hunger

5. Gender equality

7. Affordable and

non-polluting energy

8. Decent work and

economic growth

9. Industry, renovation

and infrastructure

13. Climate action

1. End of poverty

5. Gender equality

8. Decent work and

economic growth

12. Responsible produc-

tion and consumption

7. Affordable and


8. Decent work and

economic growth



13. Climate action

Describe the values, principles, standards and rules of the organization, such as - codes of con-

duct or ethical codes.

Describe the internal and external counseling mechanisms for ethical and lawful - conduct

and to consult matters relating to the integrity of the organization, such as help or advice

telephone lines.

Describe the internal and external mechanisms for reporting unethical or unlawful - conduct and

matters relating to the integrity of the organization.

Description of management approach

Direct economic value generated and distributed

Economic consequences and other risks and opportunities

for the organization’s activities arising from climate change

Coverage of the organization’s obligations under its benefit plan

Economic aid granted by government entities


Percentage of expenditure in locations with significant operations that correspond

to local suppliers


Internal power consumption


SPECIFIC BASIC CONTENTS

GENERAL

BASIC

CONTENTS

INFORMATION

ON MANAGEMENT

APPROACH

AND INDICATORS

PAGE

PAGE OMISSIONS

EXTERNAL

VERIFICATION

SUSTAINABLE

DEVELOPMENT

OBJECTIVE

SUSTAINABLE

DEVELOPMENT

OBJECTIVE

DESCRIPCTION

DESCRIPTION


G4-EN4

G4-EN5

G4-EN6

G4-EN7

Material aspect: Water

G4 - DMA

G4-EN8

G4-EN9

G4-EN10

Material aspect: Emissions

G4 - DMA

G4-EN15

G4-EN16

43

43

43

43

23, 28, 31,

39, 41

41

41

41

23, 28, 31,

39, 44

44

44

Information

not available

at this time

7. Affordable and


8. Decent work and

economic growth



13. Climate action

7. Affordable and


8. Decent work and

economic growth



13. Climate action

7. Affordable and


8. Decent work and

economic growth



13. Climate action

7. Affordable and


8. Decent work and

economic growth



13. Climate action

6. Clean water

and sanitation

6. Clean water

and sanitation

6. Clean water

and sanitation

8. Decent work and

economic growth



3. Health and wellness



13. Climate action

14. Underwater life

15. Life on terrestrial

ecosystems




13. Climate action

14. Underwater life


ecosystems

External power consumption

Energy intensity

Reduction of energy consumption

Reductions in the energy requirements of products and services


Total water collection by source

Water sources that have been significantly affected by water collection

Percentage and total volume of recycled and reused water


Direct emissions of greenhouse gases (sources within the organization)

Indirect emissions of greenhouse gases when generating energy (Scope 2)


INFORMATION

ON MANAGEMENT

APPROACH AND

INDICATORS

PAGE OMISSIONS SUSTAINABLE

DEVELOPMENT

OBJECTIVE

DESCRIPTION


G4-EN17

G4-EN18

G4-EN19

G4-EN20

G4-EN21

Material aspect: Effluents and waste

G4 - DMA

G4-EN22

G4-EN23

G4-EN24

G4-EN25

G4-EN26

44

44

44

44

44

23, 28, 31,

39, 48, 51

51

48

52

48

51

Information

not available

at this time




13. Climate action

14. Underwater life


ecosystems

13. Climate action

14. Underwater life


ecosystems

13. Climate action

14. Underwater life


ecosystems







14. Underwater life


ecosystems


6. Clean water and

sanitation



14. Underwater life


6. Clean water

and sanitation




6. Clean water and

sanitation



14. Underwater life


ecosystems




6. Clean water and

sanitation

14. Underwater life


ecosystems

Other indirect greenhouse gas emissions (Scope 3)

Intensity of greenhouse gas emissions

Reduction of greenhouse gas emissions

Emissions of ozone-depleting substances

NOx, SOx and other significant atmospheric emissions


Total water discharge according to quality and destination

Total weight of waste, according to type and method of treatment

Total number and volume of significant spills

Weight of transported, imported, exported or treated waste considered

to be hazardous pursuant to Basel Convention Annexes I, II, III, and VIII,

and percentage of waste transported internationally

Identification, size, status of protection and biodiversity value of water bod-

ies and related habitats significantly affected by discharges from

the organization


INFORMATION

ON MANAGEMENT

APPROACH AND

INDICATORS


DEVELOPMENT

OBJECTIVE

DESCRIPTION


Material aspect: Regulatory compliance

G4 - DMA

G4-EN29

CATEGORY: SOCIAL PERFORMANCE

SUBCATEGORY: LABOR PRACTICES AND DECENT WORK

Material aspect: Employment

G4 - DMA

G4-LA1

G4-LA2

G4-LA3

Material aspect: Health and safety at work

G4 - DMA

G4-LA5

G4-LA6

G4-LA7

G4-LA8

Material aspect: Training and education

G4 - DMA

G4-LA9

G4-LA10

G4-LA11

Material aspect: Diversity and equal opportunities

G4 - DMA

G4-LA12

Material aspect: Equal pay between women and men

G4 - DMA

G4-LA13

23, 28, 31,

39, 41

41

23, 28, 31,

55

56

56

56

23, 28, 31,

55

63

63

63

63

23, 28, 31,

55

65

65

65

23, 28, 31,

55

56

23, 28, 31,

55

56

5. Gender equality

8. Decent work and

economic growth

8. Decent work and

economic growth

5. Gender equality

8. Decent work and

economic growth

8. Decent work and

economic growth


8. Decent work and

economic growth


8. Decent work and

economic growth

8. Decent work and

economic growth

4. Quality education

5. Gender equality

8. Decent work and

economic growth

8. Decent work and

economic growth

5. Gender equality

8. Decent work and

economic growth

5. Gender equality

8. Decent work and

economic growth

10. Inequality reduction


Monetary value of significant fines and number of non-monetary

sanctions due to non-compliance with environmental laws and regulations


Number and rate of hirings and average turnover of employees, broken

down by age group, gender and region

Social benefits for full-time employees not offered to temporary or part-time

employees, broken down by significant locations of activity

Return to work and retention rates after paternal leave, broken down

by gender


Percentage of workers represented in joint formal safety and health commit-

tees of management and employees established to help control and advice

on occupational safety and health programs

Type and rate of injuries, occupational diseases, days lost, absenteeism and

number of work-related fatalities by region and by gender

Workers whose profession has an incidence or a high risk of disease

Health and safety issues covered in formal agreements with trade unions


Average annual training hours per employee, broken down by gender

and by job category

Skills management and continuous education programs that promote work-

ers’ employability and help them manage the end of their

professional careers

Percentage of employees receiving regular performance and professional

development assessments, broken down by gender and by

professional category


Composition of governing bodies and payroll breakdown by professional

category and gender, age, minority group membership and other indicators

of diversity


Ratio of men’s basic salary to that of women, broken down by professional

category and by significant locations of activity


INFORMATION

ON MANAGEMENT

APPROACH

AND INDICATORS


DEVELOPMENT

OBJECTIVE

DESCRIPTION


SUBCATEGORY: HUMAN RIGHTS

Material aspect: Non-discrimination

G4 - DMA

G4-HR3

Material aspect: Child labor

G4 - DMA

G4-HR5

Material aspect: Forced labor

G4 - DMA

G4-HR6

SUBCATEGORY: SOCIETY

Material aspect: Local communities

G4 - DMA

G4-SO1

G4-SO2

Material aspect: Fight against corruption

G4 - DMA

G4-SO3

G4-SO4

G4-SO5

SUBCATEGORY: PRODUCT RESPONSIBILITY

Material aspect: Customers’ health and safety

G4 - DMA

G4-PR1

G4-PR2

Material aspect: Labeling of products and services

G4 - DMA

G4-PR3

G4-PR4

G4-PR5

23, 28, 31

65

23, 28, 31,

35

35

23, 28, 31,

35

35

23, 28, 31,

70

70

70

19, 23, 28,

31

19

19

19

23, 28, 31,

82, 86

86

86

23, 28, 31,

82

82

82

82

5. Gender equality

8. Decent work and

economic growth

16. Peace, justice and

solid institutions

8. Decent work and

economic growth


solid institutions

8. Decent work and

economic growth

1. End of poverty

2. Zero hunger


solid institutions


solid institutions


solid institutions


solid institutions




solid institutions

Descripción del enfoque de gestión

Number of discrimination cases and corrective measures adopted


Identification of centers and suppliers with a significant risk of child exploita-

tion, and measures taken to contribute to the abolition of child exploitation


Centers and suppliers with a significant risk of being the source of forced

labor, and measures taken to contribute to the elimination of all forms

of forced labor.


Percentage of centers where development programs, impact assessments

and local community participation have been implemented

Operations centers with significant possible or actual negative effects on

local communities


Number and percentage of centers in which risks related to corruption

and detected significant risks have been assessed

Policies and procedures for communication and training on the fight

against corruption

Confirmed cases of corruption and measures taken


Percentage of significant product and service categories whose health and

safety impacts have been assessed to promote improvements

Number of incidents of non-compliance with regulations or voluntary codes

related to product and service impacts on health and safety during their life

cycle, broken down according to the type of outcome of such incidents


Type of information required by the organization’s procedures relating to the

information and labeling of its products and services, percentage of signifi-

cant product and service categories that are subject to such requirements

Number of regulation and voluntary codes breaches concerning information

and labeling of products and services, broken down by type of outcome

Results of surveys to measure customer satisfaction


INFORMATION

ON MANAGEMENT

APPROACH AND

INDICATORS


DEVELOPMENT

OBJECTIVE

DESCRIPTION

There is no magic to

choices and persistence.

It’s really about

MIchelle obaMa

hard work,achIeVeMeNT,

rENaULT arGENTINa SUSTaINaBILITY rEPorT©2017 RENAULT ARGENTINA S.A.Fray Justo Santa María de Oro 1744,(C1414DBB), CABA

ContentsRenault Argentina

Editing and CoordinationDepartment of Public Affairs, Communication and Sustainability

External advisorsAG Sustentablewww.agsustentable.com

Visual communicationTholön Kunstwww.tholon.com

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