Public Policy and Interest Representation

The materiality analysis highlighted that public policy and interest representation are key issues for the Company and for its stakeholders. The Company’s participation in the debate on shaping public policy and defining regulations is essential to help define workable standards and guidelines and thus preserve the value of its investments. As evidenced by stakeholders’ engagement results, promoting public-private relationships, entering the debate on public policies, and contributing to the establishment of international standards are crucial to improving market development. Stakeholders in NAFTA believe that active participation and engagement in the public policy arena are the most important aspects of being a responsible corporate citizen, and essential to both the democratic process and the Company’s success. They also feel that CNH Industrial should participate in the political process. In LATAM and APAC, stakeholders believe that Public-Private Partnerships (PPPs) could boost infrastructure development, through knowledge sharing and efficient infrastructure management. In EMEA, the public policy and interest representation aspect is relevant mainly to those stakeholders on whose behalf CNH Industrial is expected to promote public-private relations, enter the debate on public policies, and contribute to devising and setting international regulations to enhance market development.

Policies and Commitments

CNH Industrial aims at making a positive contribution to the future development of policies, regulations, and standards on issues that affect its business and the communities in which the Company operates. Specifically, CNH Industrial contributes its expertise and knowledge in its dialogue with authorities and other stakeholders on policies concerning the capital goods sector, including both sustainable agriculture and the automotive industry and other sectors related to the mobility of people and goods. CNH Industrial is committed to contributing to the technological advancement society, and to cooperating with public institutions, universities, and other organizations on research and development into innovative solutions in the fields in which it operates. The Company’s proactive approach to institutional relations contributes to identifying new business opportunities early on, and to creating business conditions that are competitive as well as sustainable over the long-term. Interest representation is conducted only where permitted by, and in strict compliance with applicable laws, including anticorruption and antitrust laws, and in full compliance with the Company’s Code of Conduct and other policies and procedures.

Resources and Responsibilities

The Institutional Relations or Government Affairs unit reports directly to the Chief Operating Officer of each Region, except in the APAC Region where institutional relations are managed by the head of each country or business area, who also report to the Region’s Chief Operating Officer. Activities are structured around three pillars:

  • institutional affairs, focusing on international institutional and diplomatic relations 
  • public affairs, focusing on non-technical policy matters as well as institutional communications 
  • technical affairs, focusing on regional and international technical regulations.

Goals and Targets

The Institutional Relations unit mainly aims at:

  • actively monitoring societal developments and future legislative trends, in order to engage with public authorities, local governments, business associations, regional institutions, international organizations, and NGOs in the institutional decision-making processes that affect CNH Industrial’s product and marketing strategies 
  • defining the Company’s position with regard to policy changes, and developing strategies for interacting with policy makers and other relevant stakeholders 
  • managing the Company’s collaboration with trade associations dealing with global and regional regulations 
  • protecting and enhancing Company and brand profiles by proactively interacting with external stakeholders and participating in public dialogue 
  • engaging with the Company’s product development, innovation, engineering, product portfolio, and market leadership to understand the requirements and constraints of future regulatory trends, as well as to provide information on mid and long-term policy trends and legislative requirements, with the aim of supporting the continuous development and updating of the Company’s long-term product and operational strategy 
  • supporting CNH Industrial’s business goals by identifying specific business issues and opportunities in the context of institutional and/or diplomatic relations.

Specific Activities

The specific activities of the Institutional Relations unit are: participation in governmental and other institutional meetings on technical specifications, public policies and/or business opportunities contribution to industry associations’ working groups, events, and initiatives stakeholder collaboration projects in various fields, for example sustainable mobility.

REGIONAL INITIATIVES

CNH Industrial is a member, either directly or through one of its brands, of the major sector associations in the different areas in which it operates.

EMEA

In EMEA, the Institutional Relations department ensures CNH Industrial’s voice is effectively heard by national government officials and European Union Institutions on relevant issues such as regulatory affairs, sustainable mobility, and policies impacting the Company’s business.

In 2014, within the framework of the Italian Presidency of the Council of the European Union (July 1 - December 31, 2014), CNH Industrial planned several technical workshops on regulatory issues, sharing its Corporate vision and regulatory and innovation priorities with EU Member States’ representatives.

In EMEA, CNH Industrial is an active member of:

  • ACEA - Association des Constructeurs Européens d’Automobiles (Commercial Vehicles). CNH Industrial, through its brand Iveco, holds a position on the governance body (one Board member) 
  • CEMA - European Agricultural Machinery (Agricultural Equipment). CNH Industrial, through its brands New Holland Agriculture and CASE IH, holds a position on the governance body (two Board members) 
  • CECE - Committee for European Construction Equipment (Construction Equipment). CNH Industrial, through its brands Case Construction Equipment and New Holland Construction Equipment, holds a position on the governance body (two Board members) 
  • EUROMOT - European Association of Internal Combustion Engine Manufacturers (Powertrain). CNH Industrial, through its brand FPT Industrial, holds a position on the governance body (one Board member) 
  • NGVA Europe - Natural and Bio Gas Vehicle Association. CNH Industrial, through its brand Iveco, holds a position on the governance body (one Board member) 
  • AmCham EU - American Chamber of Commerce to the European Union.

VIRTUAL TESTING
Leveraging its technical leadership in virtual simulation tests, CNH Industrial set up and now oversees a Virtual Testing working group (Project Team 29). The group comes under CEMA (European Agricultural Machinery trade association) and focuses on the introduction of virtual type-approval testing for agricultural machinery.
Virtual testing uses virtual simulations for the type-approval testing of machinery, reducing the overall number of field tests required and allowing the remaining ones to be tailored to the scenarios that emerge from virtual testing.
The use of virtual tools means fewer prototypes need to be built, and subsequently transported to the test station, leading to material and labor savings. Data on the associated reduction in CO2 emissions will be available in 2015.
The first application will involve type-approval safety tests on a tractor cabin in the event of rollover.
Cab structural integrity and the protection provided to the occupant during vehicle rollover will be evaluated via advanced computing methods, also used in the automotive industry. The virtual simulation uses powerful computing servers, enabling the execution of a wider range of tests and resulting in enhanced vehicle architectures that are safer for the customer

In 2014, CNH Industrial organized and attended the following institutional events and major initiatives:

  • CECE Summit, Antwerp (Belgium) - Construction Equipment 
    • focusing on how to keep our industry sufficiently innovative to remain competitive at global level 
  • Young Farmers’ Event at the European Parliament, Brussels (Belgium) - Agricultural Equipment 
    • promoting and supporting the work of young farmers in the EU and their value in agriculture 
  • Citytech and Bustech, Milan (Italy) - Commercial Vehicles 
    • reconsidering the mobility paradigm of the cities of the third millennium 
  • NGV 2014 Brussels (Natural Gas Vehicle Summit 2014), Brussels (Belgium) - Commercial Vehicles 
    • developing a sustainable, growing market throughout Europe for natural gas vehicles 
  • LNG Conference, Genoa (Italy) - Commercial Vehicles 
    • taking stock of the current outlook on the global supply and demand of LNG 
  • Gas Visually Exhibition at the European Parliament, Strasbourg (France) - Commercial Vehicles 
    • joining forces to promote gas use in vehicles 
  • Ecomondo, Rimini (Italy) - Commercial Vehicles, Agricultural Equipment and Construction Equipment 
    • focusing on major international strategies for eco-innovation and for transforming waste into a resource 
  • Smart Mobility World, Turin (Italy) - Commercial Vehicles, Agricultural Equipment, and Construction Equipment 
    • the European reference event for mobility in the XXI century 
  • UN/ECE GRPE Working Party on Pollution and Energy, Geneva (Switzerland) 
    • conducting research and analysis to develop emission and energy requirements for vehicles 
  • 3rd Annual Natural Gas Vehicle Europe, Amsterdam (Netherlands) - Commercial Vehicles, Agricultural Equipment, and Construction Equipment 
    • European Fleets event connecting fleets with suppliers to advance projects and share the success of natural gas as a fuel 
  • Biomethane Day, Verona (Italy) - Commercial Vehicles, Agricultural Equipment, and Construction Equipment 
    • focusing on how the use of biomethane can boost competitiveness and encourage innovation.

NAFTA

In NAFTA, the Government Affairs department ensures CNH Industrial’s voice is effectively heard by government officials on bottom-line issues such as tax reform, Trade Promotion Authority (TPA), Trans-Pacific Partnership (TPP), Transatlantic Trade and Investment Partnership (TTIP), the farm bill, the highway funding bill, etc.

In NAFTA, CNH Industrial is a member of:

  • US Chamber of Commerce BRT (Business Roundtable) 
  • NAM (National Association of Manufacturers) 
  • AEM (Association of Equipment Manufacturers) 
  • OFII (Organization for International Investment)
  • DTF (Diesel Technology Forum) 
  • EMA (Engine Manufacturers Association) 
  • CEE (Coalition for Employment through Exports) 
  • Trade Benefits America 
  • Coalition in support of the Keystone Pipeline 
  • BIPAC (Business Industry Political Action Committee) 
  • Several bilateral business associations and councils: AUCC (American-Uzbekistan Chamber of Commerce), USKBA (US-Kazakhstan Business Association), USRBC (US-Russia Business Council), USCBC (US-China Business Council), USTBC (US-Turkmenistan Business Council), USPBC (US-Poland Business Council), AMRO (American-Romania Business Council), USEBC (US-Egypt Business Council), USUBC (US-Ukraine Business Council) and USIBI (US-Iraq Business Initiative) 
  • US-China Agriculture and Food Partnership 
  • Corporate Council on Africa 
  • Fuels America 
  • Campaign to Fix the Debt 
  • National Cattlemen’s Beef Association 
  • Growth Energy

LATAM

CNH Industrial maintains governmental relations with the Brazilian government through class associations and entities contributing to the development of the markets in which it operates. Specifically, these contributions are in the form of discussions and improvements regarding technical standards, as well as other topics such as product operator safety and technological innovations to decrease gas emissions.

In Brazil, CNH Industrial is a member of:

  • ANFAVEA (National Association of Automotive Vehicle Manufacturers). CNH Industrial holds a position on
  • the governance body (one Board member)
  • ABIMAQ (Brazilian Association of Machines and Equipment)
  • NTC LOGISTICA (National Association of Cargo Transportation and Logistics)
  • SAE Brasil (Mobility Engineers Society)
  • AEA (Brazilian Association of Automotive Engineering)
  • FEBRABAN (Brazilian Federation of Banks) through CNH Industrial Capital.

In Argentina, CNH Industrial is a member of:

  • AFAT (Association of Agricultural Machinery Manufacturers)
  • CAC (Argentine Chamber of Construction - Construction Equipment)
  • AmCham (American Chamber of Commerce)
  • ADEFA (Association of Automotive Manufacturers - Commercial Vehicles).

In 2014, CNH Industrial organized and attended the following institutional events and major initiatives:

  • AutoData Seminar on Market Perspectives: economic and market scenario and the positioning of CNH Industrial within this context
  • 23rd SAE Brazil International Congress and Display Mobility Technology: “Constructing Intelligent Mobility - The Vehicles of the Future”
  • 2014 Metallurgy/Power Grid Conference: The Challenge of the Metallurgical sector is energy efficiency in the industry as a tool for increased competitiveness
  • 6th SAE Brazil Symposium on Agricultural Machines: “Market perspectives - A manufacturer’s view” and “Certification in Agricultural Machines - The international scenario and opportunities for Brazil”
  • 13th CBA (Brazilian Conference on Agribusiness): organized by ABAG (Brazilian Agribusiness Association)
  • AutoData Perspectives Conference 2015: Agricultural Equipment and Construction Equipment
  • 2014 Amerigo Vespucci Award: tribute to Italian-Brazilian business personalities responsible for important achievements in favor of socialization and closer ties between the two countries
  • 20th Advisory Council: The economic scene in Minas Gerais and the impact on investor relations
  • ABIMAQ Regular Meeting: Industrial machines and equipment sector
  • ICF Global Conference Latin America: Best practices for training directors and managers at CNH Industrial
  • SAE Brazil Symposium on Agricultural Machines: Agricultural machinery certification, international scenario, and opportunities for Brazil
  • Lean Summit Event: “5C: Lean maintenance for stability”. 

APAC

In Australia and New Zealand (ANZ), CNH Industrial Institutional Relations engages directly and actively with key stakeholders across the three tiers of government (local, state, and federal, with respect to Australia), and within both the political and bureaucratic arms of government, in strict compliance with the Company’s Code of Conduct. In addition, Institutional Relations participates in various industry forums/associations and has strong relationships with relevant diplomatic offices.

Focused on promoting CNH Industrial’s Corporate and brand-level public policy position (on diverse issues ranging from the development of natural gas as an alternative fuel, to the impact of domestic trade policy on future investments), Corporate and External Affairs interacts across the various functions of the organization at national, Regional, and global level to align any commentary or submissions accordingly.

Corporate and External Affairs also engages with non-trade media, through its Public Affairs/Corporate Communications function, to enhance the Company’s reputation within the business sector and among the broader public.

In ANZ, CNH Industrial has contributed to the debate on key issues regarding the future of Australia’s automotive sector, via the Productivity Commission’s review process, the revision of the Motor Vehicle Standard’s Act, the Agriculture White Paper, and the establishment of non-road vehicle emissions standards, to name a few.

In ANZ, CNH Industrial is a member of:

  • Ai Group (Australian Industry Group)
  • TIC (Truck Industry Council)
  • TMA (Tractor and Machinery Association). CNH Industrial holds a Board position.
  • BIC (Bus Industry Confederation)
  • Gas Energy Australia’s CNG and LNG Joint Taskforce
  • Italian Chamber of Commerce and Industry (Australia)
  • Italian Chamber of Commerce and Industry (Victoria)
  • META (Manufacturing Excellence Taskforce Australia)
  • InvestWest Agribusiness Alliance (Western Australia)
  • ATA (Australian Trucking Association).

In 2014, CNH Industrial organized and attended the following institutional events:

  • 2014 New Zealand Transport Fuels Summit
  • Launch of Gas Energy Australia’s “2030 Vision for Cleaner, Cheaper Australian Fuels”
  • The Victorian Government’s Manufacturing Showcase
  • Launch of AGL’s Smart CNG infrastructure roll-out program
  • AGL’s Alternative Transport Fuels Conference
  • Blueprint for Australian Agriculture forum.

In China, CNH Industrial is an active member of various associations.
For the Commercial Vehicles segment, the Company is a member of:

  • CICEIA (China Combustion Engine Industry Association)
  • C8 Heavy Truck Manufacturing Association
  • CFLP (China Federation of Logistics and Purchasing)
  • China National Light Industry Council
  • Italy Chamber of Commerce
  • The European Union Chamber of Commerce.

For the Agricultural Equipment segment, the Company is a member of:

  • CAAMM (China Agriculture Machinery Industry Association Management Committee)
  • CAMCA (China Agriculture Machinery Distribution Association)
  • AmCham China (American Chamber of Commerce in China).

For the Construction Equipment segment, the Company is a member of:

  • CCMA (China Construction Machinery Association)
  • China construction machinery industry association working committee of agents.

In 2014, CNH Industrial organized and attended the following institutional events and major initiatives:

  • BAUMA China (IVECO)
  • Auto Show in Shanghai, Beijing and Guangzhou (IVECO)
  • China International Agriculture Exhibition (Agricultural Equipment).

In Central Asia, CNH Industrial does not belong to any associations.

In Russia, CNH Industrial is a member of:

  • United Association of Manufacturers: association set up at the end of 2013 in line with the rules of localization. The association has only 3 members
  • ROSAGROMASH (Russian association of farm machinery)
  • AEB (Association of European Businesses). CNH Industrial is a member through its Agricultural Equipment and Construction Equipment segments.

In India, CNH Industrial is a member of various associations, but does not hold a position on any of their governance bodies:

  • CII (Confederation of Indian Industry)
  • Euro Club
  • IICCI (Indo-Italian Chamber of Commerce and Industry)
  • TMA (Tractor Manufacturers Association)
  • India CEO/CFO Forum organized by the International Market Assessment India Ltd
  • Euclid Infotech Pvt Ltd
  • Infodrive India. 

     

GRI: 
G4-DMA; G4-16;