In 2014, monitoring continued of some of the environmental aspects considered most significant1 to logistics processes in order to substantiate the targets included in the Sustainability Plan and the improvement projects that followed.
The significance of the environmental impact of CO2 emissions is affected by: the number of inbound/outbound transport flows generating the impact; CNH Industrial’s ability to promote mitigation initiatives among suppliers (e.g., the inclusion of contractual clauses); the initiatives implemented to reduce the impact (e.g., the adoption of intermodal solutions); and the impact’s potential effects on the community (e.g., traffic congestion related to plant location).
In 2014, to improve the management of this aspect, the worldwide monitoring of CO2 emissions was completed for all segments, totaling 466 thousand tons of CO2 (of which approximately 142 thousand in Europe).
For 2015, CNH Industrial set the challenging target of cutting global CO2 emissions by 5,200 tons.
Worldwide, the reduction in inbound and outbound CO2 emissions was 13,288 tons. The lower emissions were a result of the improvement projects implemented in 2014. In Europe, CO2 emissions were cut by 4,927 tons, exceeding the target set for 2014 (1,580 tons). For example, intermodal transport between Italy and Spain led to a 1,982 ton reduction in CO2 emissions, saving over $590 thousand.
In 2014, the monitoring of air transport CO2 emissions was extended to all segments, amounting to 44.5 thousand tons of CO2.
CO2 EMISSIONS IN LOGISTICS PROCESSES (a)
(a) CO2 emissions for road transport were quantified as per the GHG Protocol, revised edition, and for sea and rail transport as per the IFEU Heidelberg methodology for environmental calculations. The increase in CO2 emissions is due to the broader reporting scope (in line with the targets stated in the Sustainability Plan) and the relocation of some manufacturing sites.
Managing the environmental aspects associated with logistics also focuses on reducing non-reusable packaging and protective materials, according to Corporate standards and quality requirements. Where this is not possible, CNH Industrial seeks the best solutions to ensure the recovery of materials. Although this aspect is less significant than atmospheric emissions, a monitoring process was set up that will provide a solid database for defining future areas for improvement.
CNH Industrial plants in Europe recorded an average of 7.17 kilos of cardboard disposed of per unit produced, down 3.5% from the previous year.
CARDBOARD DISPOSED OF IN LOGISTICS PROCESSES
|Cardboard disposed of per unit produced||7.17||7.43||7.34|
(1) The assessment criteria used to measure the significance of the environmental aspects of logistics processes are related to the entity of the impact, and to the Company's ability to manage and mitigate both the impact and its potential effects on the surrounding environment.