At MEMA’s Sustainability Summit held August 15, Stellantis took the spotlight as it delved into its commitment to sustainability.
Alison Jones, Senior Vice President, Global Circular Economy at Stellantis, shed light on the significant role the Circular Economy strategy plays in the company’s ambitious “Dare Forward 2030” strategic plan. The plan aims at guiding the industry toward achieving carbon net zero by 2038.
The Sustainability Summit was organized by the MEMA Center for Sustainability and MEMA Government Affairs.
Jones’s presentation titled, “SUSTAINera Circular Economy – our industrial and innovative scale up,” showcased SUSTAINera, the dedicated label for Stellantis’s Circular Economy activities.
“Stellantis continues to expand its customer offering, worldwide infrastructure and innovative thinking, both in-house and with suppliers,” Jones said. “To achieve this, the Circular Economy team continues to search for proactive suppliers to expand and innovate the product range to offer a growing number of sustainable parts to customers and at the same time create new recycling opportunities for the development of a true closed-loop process. These are all paramount initiatives in our drive to achieve our Dare Forward 2030 ambitions.”
Launched in October 2022, the initiative is expanding its rigorous 4R strategy – Reman, Repair, Reuse and Recycle. It not only supports Stellantis’s carbon net zero objectives but also enhances the company’s financial stature, benefiting suppliers, customers and stakeholders alike.
Stellantis’s focus on the Circular Economy results in substantial environmental benefits. The SUSTAINera products and services conserve up to 80% of raw materials and cut down CO2 emissions by half compared to equivalent new parts.
This translates to consumers receiving cost-effective, sustainable solutions without compromising on quality. The benefits further manifest in the form of reduced waste, efficient utilization of Earth’s resources, and a smaller carbon footprint.
A pivotal component of the SUSTAINera initiative is remanufacturing (reman), which targets extending product lifespan and bolstering the aftersales spare parts segment. Reman parts, spanning more than 13,000-part numbers across 37 product lines, match the performance and warranty conditions of brand-new parts. They range from starters, alternators and clutches to high-voltage battery packs and engines.
For the North American market, Stellantis envisions an expansion of its current supplier base, the introduction of new products, and broadening its existing product lines over the next two years. One of the significant forthcoming introductions includes headlamps and tail-lamps.
An impressive 95% return rate on core return management underlines the company’s sustainability goals and waste minimization. Investments in optimizing Stellantis’s Core Closed-loop process, emphasizing reverse logistics enhancements, serve a dual purpose. It paves the way for reduced transport CO2 emissions and augments customer service levels along with a faster time-to-market.
Remanufacturing dominates the Circular Economy scene in North America, contributing to 72% of the business, while recycling and repair make up the remaining 28%. In a testament to its success, SUSTAINera’s global sales of remanufactured parts soared by 19% in 2022. By 2030, the company eyes a turnover of over €2 billion, quadrupling its revenue from extended product lifespan endeavors. Additionally, there’s a surge in the Reuse e-commerce business in Europe, which witnessed a whopping 108% sales growth in 2022.
Making strides in North America, Stellantis is set to introduce its e-commerce Reuse channel by the end of 2023. The B-Parts Reuse segment will offer an online solution catering to both individual and business customers, providing them with original multi-brand reused parts. Jones summarized the company’s vision by emphasizing its continuous growth.
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