As a mobility player, Arval strives to contribute to other environmental objectives beyond the mitigation of climate change, such as the reduction of air pollution and consumption of primary resources. Transportation has a major impact on air quality, particularly because of nitrogen oxide (NOx) and fine particle emissions (especially from diesel engines), Volatile Organic Compounds («VOCs») that come mainly from hydrocarbons and their chemical derivatives, and other non- exhaust emissions from braking abrasion or microplastics from tyre wear. To reduce global emissions (greenhouse gases and pollutants), Arval’s strategy is based on vehicle electrification. This is the best technical solution for individual mobility in the short and medium terms. The upcoming application of EURO7 norm, which includes non- exhaust emissions for type- approval testing, will help structure and steer the reduction of emissions more accurately. With more than 440,000 vehicles purchased in 2024, and as manufacturers integrate more recycled materials into vehicle design, the consumption of primary resources remains a point of attention for Arval. Strategies to extend contract duration, and to avoid the purchase of new vehicles, will help limit the need for raw materials. This also translates into policies to promote circular vehicle repair and maintenance, with strategies to repair rather than replace, while minimising repairs through advanced SMART techniques. I PRESERVING RESOURCES AND LIMITING POLLUTION How Arval promotes circularity to limit pollution Supporting biodiversity 54 8,254 trees planted or regenerated since 2021 with ReforestAction Circular Maintenance & Repair 6,000 partner garages –19% of SMART repairs at the end of 2024 Air pollution: levers and solutions 1. Fleet electrification 2. SMART Repairs 3. Preventive Maintenance Second hand cars + 400,000 cars sold in second hand market in 2024 Car sharing A mobility option that contributes to a circular economy + Read More + Read More + Read More + Read More + Read More + Read More + Read More + Read More + Read More + Read More 1. Fleet electrification Electrification is an essential part of Arval’s decarbonisation plan for reducing the global emissions (greenhouse gases and pollutants) of its leased fleet. In practice, battery-powered electric vehicles do not emit CO2e or NOx during use, and pollutant emissions are mainly limited to braking and tyre wear. 2. SMART Repairs Arval uses SMART repairs (Small to Medium Area Repair Technology), which limits pollution generated by vehicle repairs. This approach uses modern tools and techniques to repair damage locally without replacing entire parts, reducing waste and the use of polluting materials. Arval supports processes such as Paintless Dent Removal (PDR) to minimise use of polluting chemicals, and the use of fast-drying lamps that cut down on paint booth usage and therefore reduce energy consumption. 3. Preventive Maintenance Arval’s proactive maintenance uses telematics data to anticipate and schedule maintenance, reducing emergency interventions and their environmental impact. Drivers receive notifications to book timely maintenance, extending vehicle lifespan and lowering repair impact. Already launched in seven countries, the goal is to expand this programme across Europe. Arval addresses the air pollution challenge via three main levers Arval’s international biodiversity programme, launched in 2021, plants a tree for each electrified vehicle leased. Arval has already funded more than 548,000 trees in 50 forests with ReforestAction, and aims for 700,000 trees by 2025, matching the company’s electrified vehicle target. All Arval countries contribute to this objective, through local projects and through a global initiative in Peru, enhancing local biodiversity, and involving Arval’s employees and customers.The target of 700,000 trees is equivalent to: • 105,000 of CO2e sequestrated1. • 2,100,000 shelters for animals created2. • 2,800,000 months of oxygen generated3. • 700,000 hours of work created4. (1) 1 tree = 150kg of CO2 sequestrated - Source: Book “Foret et Carbone : comprendre, agir, valoriser » (2) 1 tree = 3 shelters for animals created – Source : Study of IRSTEA published in Biological Conservation (3) 1 tree = 4 months of oxygen generated – Source: pulmonologist expert from APHP (Public Parisian Hospitals) (4) 1 tree = 1 hour of work created – Source: Fransylva Planting Trees with ReforestAction Arval tracks the number of SMART repair events, and their percentage in relation to total repairs. Country-specific targets have been set for 2026. Out of approximately 6,000 partner garages that do body repairs on vehicles leased by Arval, the SMART Repair rate increased from 13% in 2020 to 19% in 2024. Arval aims to reach 22% in 2026. SMART repairs contribute to a reduction in waste and energy consumption while at the same time prioritising the reusability of parts over replacement. Arval has implemented various initiatives as part of its maintenance and repair strategy to limit use of resources. These include SMART repair, glass repair, and exploring the use of replacement parts as part of a circular economy where feasible, while tracking their progress. With nearly 2 million tyres purchased to service client needs, responsible tyre management is an important focus for Arval. Various initiatives are in place at different stages of maturity. These include promoting the use of ‘all season’ tyres to optimise the number of tyres purchased in relevant countries, and exploring opportunities with tyre manufacturers for reshaping tyres, which can lead to resource and carbon emission savings. These commitments extend to Arval’s partnerships in managing charging points, including clauses on repair versus replacement and end-of-life recycling. Circular Maintenance & Repair Arval sells vehicles reaching the end of their lease contracts into the used car market, an activity that aligns with EU Taxonomy sale of second-hand goods and that accounts for more than a third of the company’s turnover. Most of these vehicles are relatively new, typically less than five years old, which means that Arval is injecting recent technology vehicles into the second-hand market. This contrasts with the broader European used-car market, where the average age exceeds ten years. Second hand cars More than 400,000 cars sold in second hand market in 2024 A thriving electric vehicle (EV) second-hand market is vital for their electric vehicle (EV) leasing. The maturity of this market impacts the resale price value of EVs at lease end which in its turn directly affects the residual value set at the contract’s outset and consequently, influencing the leasing rental rates. Since rental cost is a key factor for lessees, the second-hand market significantly shapes EV adoption. EVs are often seen as too expensive for second-hand buyers, and tax incentives in this market are limited in many countries where Arval operates. To address this, Arval supports the development of the second-hand EV market by reassuring buyers about battery performance. As the first leasing company to systematically offer battery health certificates when reselling EVs (through partnerships with specialists like Moba or Aviloo), Arval builds trust and removes a barrier to wider EV adoption. Arval Car Sharing is a digital solution that optimises fleet utilisation, reducing the required fleet and its associated costs This solution, which is mainly aimed at multinationals, large national companies and public sector companies, is deployed in most European countries where Arval operates1. Transitioning to a pool utilisation model from full operating ownership can effectively reduce the total fleet volume while still satisfying corporate mobility needs, thereby minimising upstream resources and pollution associated with vehicle production. Arval Car Sharing’s digital solution facilitates the automation of operational and administrative tasks, enhancing vehicle use and reducing idle time. Clients receive comprehensive reports that provide insights that help them make informed decisions on the size and composition of their fleet. (1) Countries where the solution is active (registered users): France, Italy, Spain, United Kingdom, Austria, Belgium, Germany, Netherlands, Switzerland, Czech Republic, Poland, Slovakia, Sweden and Turkey. Car sharing, a mobility option that contributes to a circular economy