CNH Industrial’s Sustainability Report aims to give stakeholders a comprehensive overview of the Company’s operations, integrating financial results and economic commitments with environmental and social ones.
This is the second CNH Industrial Sustainability Report. CNH Industrial was formed by the merger between Fiat Industrial S.p.A. and its subsidiary CNH Global N.V., completed on September 29, 2013. The merger had no impact on the consolidated activities of the former Fiat Industrial Group and the results presented herein are therefore consistent and comparable with those previously published by Fiat Industrial. Since CNH Industrial’s operational scope coincides with that of Fiat Industrial, data for 2012 refers to Fiat Industrial.
This document was prepared in accordance with the GRI-G4 Global Reporting Initiative guidelines, core1 option. The topics covered in the CNH Industrial Sustainability Report originate from the materiality analysis (see also page 19). As per the GRI-G4 reporting standard (core option), one or more indicators included in the guidelines were monitored for each material aspect (see also pages 260-264). The contents were integrated with the information requirements of Socially Responsible Investors (SRI) and financial and non-financial analysts who periodically review the Company’s sustainability performance (see also page 47). CNH Industrial’s strategic approach is set out in the Sustainability Plan, which identifies action priorities and defines commitments and improvement targets consistent with, and integrated into, the Company’s business strategy. In 2014, the Sustainability Plan was updated and new targets were set for the health and safety, environmental, and energy aspects, in line with the 2014-2018 Business Plan. In 2014, the layout and structure of the Sustainability Plan was revised to make it easier to connect material aspects with their corresponding targets. Some targets have become part of routine improvement activities and no longer merit a special mention, and were thus excluded from the Plan.
SCOPE OF THE REPORT
Unless otherwise stated, the scope of the Sustainability Report covers information and data for the year 2014 - which coincides with the calendar year - for all CNH Industrial segments worldwide consolidated in the Annual Report as at December 31, 2014. Unless otherwise indicated, the terms Company and CNH Industrial refer to CNH Industrial including all its subsidiaries (also indicated as legal entities). The term segment refers to Agricultural Equipment, Construction Equipment, Commercial Vehicles, Powertrain2, and Financial Services. From 2014, the Agricultural Equipment and Construction Equipment segments are considered separately; differently than in previous years, therefore, the environmental and energy performances are presented in aggregate form, i.e., at Company level. From 2014, the collection of this data is carried out at plant level to enable future aggregations by segment and/or Region.
The Company is divided into the following Regions: EMEA, NAFTA, LATAM, and APAC. The countries that make up these Regions are listed in the Glossary (see pages 266; 268; 267; 265). It should be noted that the definition of plant used in the Sustainability Report is in line with that in the Annual Report.
The exclusion of any geographic area, legal entity or specific site from the scope of the report is attributable to the inability to obtain satisfactory quality data, or to the immateriality of activities (as is often the case for newly acquired legal entities, joint ventures, or manufacturing activities not yet fully operational). In some cases, subsidiaries not consolidated in the financial statements were included within the scope of the Report because of their significant environmental and social impact. Any significant variations in the scope of the Report or in the calculation of specific data are expressly indicated in the text or tables in the appendix.
PLANTS BY SCOPE
CNH INDUSTRIAL WORLDWIDE
PLANTS BY SCOPE
|Country||Plant||Segmenta||WCM||Health and Safety||Environment||Energy|
|Czech Republic||Vysoke Myto||CV|
|Italy||Brescia Special Vehicles||CV|
|Italy||San Mauro Torinese||CE|
(a) AG = Agricultural Equipment CE = Construction Equipment CV = Commercial Vehicles PWT = Powertrain
Specifically, regarding the scope of the Report:
- World Class Manufacturing (WCM) data relates to 53 plants consolidated in the Annual Report as at December 31, 2014, representing 98% of revenues from sales of products manufactured at CNH Industrial’s plants
- occupational health and safety data relates to 64,456 employees, or about 95% of the total workforce
- information on environmental performance and management systems relates to 55 fully consolidated plants, representing 99% of revenues from sales of products manufactured at CNH Industrial’s plants
- information on energy performance and management systems relates to 54 fully consolidated plants, representing 98% of revenues from sales of products manufactured at CNH Industrial’s plants.
In addition, there are 53 ISO 14001 certified plants, representing 98% of revenues from sales of products manufactured at CNH Industrial’s plants, with ISO 50001 certified plants accounting for 88%, and OHSAS 18001 certified plants accounting for 98%.
The plant in Berlin (Germany), running at reduced production capacity was not included within the scope of consolidation for ISO 14001 and OHSAS 18001 certification. The plant in Cordoba (Argentina), opened in 2013, was not included within the energy scope and is undergoing certification of the occupational health and safety management system. Compared to 2013, there were no changes in the number of plants falling within the scope of the Report, and no restatement of data was necessary.
DEFINING SUSTAINABILITY REPORT CONTENTS
Sustainability Report contents are selected through a process of exchange and comparison across CNH Industrial’s internal structures, through a network of representatives within the different organizational areas that oversee the implementation of initiatives and the reporting of performance in terms of sustainability.
Defining the contents of the report is a process based on principles of materiality, stakeholder inclusiveness, sustainability context, and completeness. This complex and systematic process, which takes place during the Report’s planning phase, in part through the materiality analysis (see also page 19), focuses on defining the topics and scope considered important for CNH Industrial’s business and stakeholders owing to their economic, environmental, and social impact. The Report provides as complete a representation as possible of the relevant information, defining environmental and social action priorities and timeframes, to enable a thorough evaluation by stakeholders.
Ensuring the quality of information, on the other hand, is a process that concerns principles of balance, comparability, accuracy, timeliness, clarity, and reliability as per the GRI. Indeed, the annual Sustainability Report describes positive trends as well as weaknesses and areas for improvement, with the aim of presenting a clear and balanced picture of CNH Industrial’s sustainability performance to its stakeholders. Furthermore, information and quantitative data is collected in such a way as to enable data comparability over several years and between similar organizations, with the aim of enabling an accurate reading of the information provided.
The realization of the Sustainability Report was contingent on a systematic information and data retrieval process, crucial to ensure the accuracy of sustainability performance reporting. Approximately two hundred Key Performance Indicators (KPIs) were reported in this document. Where available, computerized management and control systems (e.g., the SAP HR platform for employee data, and System 11 for financial data on communities) were used to ensure the reliability of information flows and data accuracy. Other indicators were monitored through electronic databases (e.g., Standard Aggregation Data for environmental, health and safety data) or spreadsheets, populated directly by the representatives of each thematic area worldwide and verified by their supervisors.
In order to substantiate the Company’s commitment and the reliability of contents, the Sustainability Report was verified, analyzed, and approved by multiple parties. Indeed, it was:
- drawn up by the Sustainability Unit, which reports to the Chief Financial Officer and coordinates across all concerned functions
- approved by the members of the Group Executive Council, CNH Industrial’s highest decision-making body after the Board of Directors
- reviewed by the Governance and Sustainability Committee, a subcommittee of CNH Industrial’s Board of Directors
- submitted to SGS Netherlands B.V.3, an independent certification body, for verification as per Sustainability Reporting Assurance (SRA) procedures and in compliance with both the GRI-G4 guidelines and AA1000 APS 2008 standard. SGS is officially authorized to provide assurance as per AA1000. It also assured the alignment of CNH Industrial’s sustainability management system with the ISO 26000 guidelines on social responsibility4
- presented along with the Annual Report at CNH Industrial’s Annual General Meeting, to provide a complete, up-to-date overview of the Company’s financial, environmental, and social performance
- published and made available in the sustainability section of the Corporate website.
(1) The Global Reporting Initiative (GRI) is a multi-stakeholder association for the development and disclosure of guidelines for non-financial reporting. The guidelines set out principles and indicators for reporting on economic, environmental, and social aspects, and provide content standards to assist the organization in preparing the Sustainability Report, enabling comparability over time and between similar organizations. In May 2013, the GRI launched new reporting guidelines (G4), introducing several changes to the previous G3.1 guidelines including increased focus on the principle of materiality and amendments regarding governance, ethics and integrity, supply chain and anti-corruption, and greenhouse gas emissions, as well as a general model for disclosures on management approach. The G4 guidelines introduced two options for disclosure: core and comprehensive.
(2) Following the creation of CNH Industrial, the scope of the Agricultural Equipment and Construction Equipment segments corresponds to that of CNH, the scope of the Commercial Vehicles segment corresponds to that of Iveco (including buses), and the scope of the Powertrain segment corresponds to that of FPT Industrial.
(3) Sergio Marchionne and Peter Kalantzis, Chairman and Director of the CNH Industrial Board of Directors, are also, respectively, Non-Executive Chairman and Non-Executive Director of the Board of Directors of SGS S.A.
(4) The statement of assurance, describing the activities carried out and the opinions expressed, is available on pages 258-259.