In a concerted effort to minimise its environmental footprint and optimise its global supply chain, automotive giant Renault is actively integrating circular economy principles into its industrial packaging strategy. This strategic shift aims to significantly reduce waste generation, streamline logistical operations, and extend the lifespan of packaging assets across its extensive international network. As part of its overarching sustainable procurement policy, Renault has formalised its commitment through a global framework agreement encompassing social and environmental responsibility, with a specific focus on packaging and the broader circular economy.
A key objective of this initiative is Renault’s ambitious target to slash carbon emissions within its supply chain by 30 percent by the year 2030, benchmarked against 2019 levels. To achieve this significant reduction, the company is employing a multi-pronged approach. This includes leveraging digital tools to optimise the fill rate of both lorries and packaging, thereby reducing unnecessary logistics mileage. Furthermore, Renault is strategically working to bring its suppliers geographically closer to its manufacturing plants, enhancing industrial processes to minimise transportation distances and associated emissions.
The circular economy packaging expert at Renault Group recently articulated the company’s innovative approach at the Automotive Logistics & Supply Chain Europe 2025 event, highlighting the intrinsic value of packaging as a crucial asset that can be preserved and maximised through circularity. The core tenets of this strategy prioritise reuse, repair, and retrofitting of packaging before considering recycling as a final option. This philosophy underscores a fundamental understanding that true circularity extends beyond mere recycling, which often entails significant energy consumption and cannot be perpetually sustained, particularly with materials like plastic and cardboard. The emphasis, instead, is on retaining the inherent value embedded within the packaging itself.
Renault employs a dual system for its inbound parts deliveries, utilising both standardised and specific packaging solutions. For the majority of small and large components, the OEM predominantly uses returnable, foldable plastic boxes situated on plastic pallets. In instances where standard packaging proves unsuitable for particular parts, the company develops bespoke containers tailored to those specific needs. For long-distance and overseas shipments, cardboard and wooden pallets are typically employed to ensure the safe transit of goods. To provide additional protection against potential damage during transit, such as shocks, dust, humidity, corrosion, and electrostatic discharge (ESD), which can be particularly detrimental to sensitive electronic components, accessories like textile pockets and dividers are integrated within the packaging.
The process for managing the return flow of Renault’s empty packaging is carefully orchestrated, taking into account whether the packaging is designed for specific parts or if it is part of the standard pool. For packaging that is uniquely designed for a particular component, the empty containers are invariably returned to the original supplier. However, for the standardised packaging assets, Renault implements a more dynamic and efficient system, endeavouring to redirect the empty packs to the nearest supplier within its network who has an immediate need for that type of packaging, rather than automatically sending them back to the original supplier.
This intelligent redirection strategy yields significant benefits, not only substantially reducing the return distances for packaging and consequently cutting CO2 emissions – by an estimated 18,000 tonnes annually – but also minimising the dwell time of packaging languishing in trucks. This improved efficiency translates to a reduced overall requirement for packaging within the entire pool. While inbound logistics to assembly plants can be highly optimised through the use of returnable transport packaging, managing aftermarket service parts presents a more complex challenge, as this segment traditionally relies heavily on disposable, single-use packaging. However, the recent implementation of regulations such as the Packaging and Packaging Waste Regulation (PPWR) and Extended Producer Responsibility (EPR) is anticipated to exert a greater influence on the aftermarket segment, with compliance pressures potentially driving a necessary shift towards more circular packaging solutions. The measures outlined in the PPWR, which came into force in February of this year, are set to become applicable from 12 August 2026.
Renault views packaging as a fundamental element of its core supply chain infrastructure, rather than a mere afterthought. The company recognises packaging as a primary lever for enhancing transport performance, noting that optimised packaging density can directly lead to a reduction in the number of packs required and, consequently, the number of trucks on the road. The standardisation and modularity of packaging are identified as key enablers for improved transport optimisation, more efficient pooling of packaging assets, and a longer overall lifespan for these assets. However, Renault acknowledges the importance of striking a careful balance, as excessive customisation or extreme lightweighting in packaging design can inadvertently compromise these efficiencies. Foldability is also considered a crucial design element, with eco-design principles in packaging development going hand-in-hand with the pursuit of standardisation. Standardised packaging dimensions are deemed essential to facilitate greater opportunities for reuse and retrofitting, extending the second life of packaging assets. While the ultimate goal is to minimise the use of single-use plastics, Renault recognises that economically viable alternatives are not always readily available. In such instances, lightweighting strategies can help to reduce the overall material consumption. However, the company is mindful that excessive lightweighting can lead to a proliferation of diverse standard container types, potentially complicating reverse logistics and reducing the efficiency of return pool management by making it more challenging to optimise return routes and container reuse.
Renault’s commitment to a circular approach to packaging is reflected in its significant operational scale: the company manages approximately 5 million returnable standard packs across Europe, Turkey, and Morocco, serving 20 plants and thousands of suppliers. Impressively, over 95 percent of the cubic metres of returnable parts delivered to Renault plants worldwide are transported in returnable packaging. On a global scale, around 90 percent of the packaging waste generated within Renault’s plants is currently recycled. The impact of this circular approach is substantial; without the widespread use of returnable packaging, the tonnage of packaging waste generated in Renault’s operations would be estimated to be ten to twenty times greater than current levels.
Beyond reuse, Renault has implemented a structured process for repairing and retrofitting packaging, actively discouraging the disposal of damaged or no longer immediately usable containers at its plants. Metal containers are repaired using hydraulic jacks to straighten damaged frames, while foldable plastic boxes and pallets undergo plastic welding repairs, resulting in significant material savings – 30 tonnes of plastic saved in France alone in a single year. Renault also retrofits and modifies older packaging, particularly metal containers, to accommodate new components. While this process can be more complex and time-intensive, it is often cost-effective and helps to avoid prematurely scrapping assets with high embodied energy, thereby mitigating associated carbon emissions.
To further enhance the efficiency of its packaging return flows, Renault is actively exploring various technological tools and tracking systems, including RFID, BLW, LPWAN, and GPS. While the company has yet to identify a universally applicable solution with a clear and compelling return on investment for large-scale deployment, trials are ongoing. Renault emphasises that the true challenge lies not merely in data collection but in extracting actionable insights and value from the vast amounts of data generated. Technology is viewed as an enabler, not a panacea, with the real added value stemming from the processes and systems put in place to effectively respond to the collected data, generating alerts, prioritising interventions, and optimising flows. Simply having visibility of “lost” containers on a map is deemed insufficient justification for costly recovery efforts if the value of the containers is low. The focus is on leveraging technology to improve decision-making processes rather than just accumulating data points.
Renault’s comprehensive strategy ensures that its supply chain is not only well-prepared for forthcoming regulatory requirements under the PPWR but is also strategically positioned to reduce emissions, lower logistics costs, and establish packaging as a durable, value-retaining asset within its overall supply chain ecosystem.
