Interactive | Sustainability Report

Transcription

Interactive | Sustainability Report
at 31 December 2013
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Interactive
Sustainability Report
Commitment
GRI-G4 1
This content was subject to assurance by SGS Italia S.p.A. (14 March 2014)
The commitment of the Group
Our Group carries out its mission of being a responsible and sustainable company every single day in every geographical area where we are
present. The ultimate goal is to provide our customers sustainable and quality products. Our engagement in sustainability has expanded over
time to involve every function within the company, setting increasingly challenging goals that cover the entire value chain and focus on long-term
progress, instead of short-term wins.
At Fiat Group, each employee and every organization plays a role in helping the company continue along the path of sustainability. All Group
undertakings are deeply rooted in sustainability values, as the company strives to build a more secure future for its employees, customers,
suppliers, dealers and society as a whole. This sense of mutual responsibility has always been a part of the Group’s history and corporate culture
and has evolved and strengthened over the years, building trust in the Group among its many stakeholders.
GRI-G4 1
Commitment / Letter from the Chairman
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Letter from the Chairman
Dear Stakeholders,
During 2013, Fiat-Chrysler continued in its commitment to responsible and sustainable development and achieved significant new milestones in the environmental and social areas that
deserve mention.
With regard to environmental performance, for example, we have reduced CO2 emissions per vehicle produced by more than 15% over the past four years.
At Fiat and Chrysler plants worldwide, we have also achieved 99% reuse of water in the manufacturing cycle, representing savings of more than 2.1 billion m3 of water in 2013.
Our approach to sustainability issues is widely recognized at the international level. For the fifth consecutive year, Fiat was included in the prestigious Dow Jones Sustainability Indices World and
Europe and we were recognized as the leader in Italy in addressing climate change with inclusion, for the second consecutive year, in the Italy 100 Climate Disclosure Leadership Index (CDLI) and
Climate Performance Leadership Index (CPLI).
Expo Milan 2015, where we are Global Partners together with CNH Industrial, will provide another occasion to present the numerous eco-compatible solutions we have developed,
demonstrating that respect for the environment and economic growth can and must coexist.
The Group also maintained its strong focus on safety. Recognitions received for product safety during 2013 included: a Euro NCAP 5 Star rating for the new Maserati Ghibli and Jeep Cherokee
(Europe), an ANCAP 5 Star rating for the Fiat Panda (Australia), inclusion in the IIHS “Top Safety Picks” for the Maserati Ghibli and Fiat 500L and a NHTSA NCAP 5 Star rating for the Jeep Grand
Cherokee 4WD (USA). In addition, the adoption of World Class Manufacturing standards by many of our suppliers, including those related directly to health and safety, has further extended
the benefits to some 300 supplier plants around the world.
Social responsibility is another aspect of our activities that is very important to us. We believe firmly in the values of multiculturalism and diversity and, wherever we have a presence, we actively
contribute to the advancement of local communities. Of approximately €20 million committed to local communities in 2013, for example, around 40% was for cultural, educational and training
initiatives.
For every social initiative, we give priority to the involvement of local employees and suppliers in order to create jobs, stimulate the local economy and strengthen social ties within each
community.
Finally, publication of this year’s Sustainability Report offers me the opportunity to reinforce a message that I believe is of fundamental importance. With completion of the integration of Fiat and
Chrysler expected during the year, our commitment to sustainability will not diminish. On the contrary, it will be intensified with the involvement of more than 300,000 people around the world.
The Group’s targets and long-term initiatives planned up to 2020 are a tangible sign of our desire to maintain this commitment in the years to come, wherever we are present.
/s/ John Elkann
John Elkann
CHAIRMAN
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Commitment / Letter from the Chief Executive Officer
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Letter from the Chief Executive Officer
Dear Stakeholders,
2013 was a particularly important year for our Group and I don’t believe there could have been a more appropriate or significant way to launch 2014.
As you know, after a protracted negotiation with the VEBA Trust, on January 1st we reached an agreement that cleared the way for us to acquire 100% of Chrysler’s equity and will soon lead
to the formal creation of a single entity.
From the very moment Fiat and Chrysler formed an alliance almost five years ago, we pursued a vision that went beyond industrial cooperation to full cultural integration at the global level.
We worked tenaciously and single-mindedly to transform differences into strengths, to break down barriers of nationalistic or cultural resistance and to create an organization that would be
truly unified in practice, even before it was on paper.
That vision is now a reality. We have created a leading global automaker that is the 7th largest in the world. Even more importantly, we have created an organization that is unique and rich
with potential at the technical, professional and human level – 300,000 people around the world driven by the spirit and values of an organization intent on distinguishing itself not only in
terms of the excellence of its products, but also for the commitment, integrity and transparency with which it conducts its activities.
The coming together of Fiat and Chrysler has enabled us to intensify our sustainability-related activities by sharing best practices and leveraging our respective strengths.
Our strategy for sustainable mobility is focused on achieving a balance between conventional and alternative technologies that will deliver the greatest benefits for the environment now,
while also ensuring that we continue to offer customers affordable products.
This includes designing systems and developing new technologies to cut CO2 emissions and improve vehicle efficiency, as well as projects to address emerging mobility needs and
customer-focused initiatives to raise awareness on the impact driving behavior has on fuel consumption.
Our commitment in this area and the innovations we launched during the year have received wide recognition at the international level.
Fiat’s Methane Program received the “Ecobest 2013” award for being the simplest and most cost-effective solution, with the lowest environmental impact among fuels available today.
The innovative natural gas/gasoline TwinAir Turbo engine was named “Best Green Engine of the Year 2013” and the 3.0-liter EcoDiesel V-6 and the Fiat 500e Battery-Electric Drive System
were both named to Ward’s “10 Best Engines” for 2014.
The Ram 1500 received Motor Trend’s “2014 Truck of the Year” and Fiat Professional was named “Light Commercial Vehicle Manufacturer of the Year” at the Green Fleet Awards 2013,
both for the second consecutive year.
The Group’s Luxury Brands were also recognized for their eco-performance: the new Maserati Ghibli and Quattroporte with V-6 diesel engines have CO2 emission levels 35% lower than
the V-6 gasoline versions, and Ferrari launched its first ever production hybrid (LaFerrari) with emission levels halved compared with the Enzo.
The Group also further reduced the environmental impact of its production processes, mainly through implementation of the World Class Manufacturing program (WCM), which continues
to play an important role in terms of competitiveness, as well as being a key platform for ensuring the highest sustainability standards at plants and among our suppliers.
During 2013, energy-related projects developed as part of WCM contributed to a reduction of approximately 180,000 tons in CO2 emissions.
Commitment / Letter from the Chief Executive Officer
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In recognition of these efforts and our focus on quality, the WCM program’s Gold level was awarded to the Fiat plants in Pomigliano d’Arco (Italy) and Tychy (Poland), as well as the Tofas
plant in Bursa, Turkey.
We also continued in our commitment to ensure a safe and healthy working environment for employees in every area of activity at our sites worldwide.
During 2013, we invested a total of €194 million in health and safety improvements, representing an increase of 15.5% over the previous year.
In line with our operating philosophy, the Group also promotes the application of its sustainability principles along the entire value chain.
One initiative involved dealers in Italy, where the introduction of new practices and promotion of environmental awareness generated significant energy savings and reduced the environmental
footprint of the sales network.
This project will continue with expansion to our dealer networks in other countries over the next few years.
In the U.S., Chrysler managed the second annual Dealer Environmentally Conscious Operations (ECO) Program, which was designed to encourage environmental responsibility across the
dealer network and to recognize dealerships with a demonstrated commitment to eco-friendly business practices.
The Group was recognized again in 2013 by leading rating agencies and other international organizations for its leadership in sustainability.
For the fifth consecutive year, Fiat was included in the prestigious Dow Jones Sustainability Indices World and Europe, receiving the maximum score in several key areas of evaluation in the
economic, environmental and social dimensions.
In addition, for the second consecutive year, we were recognized as the leader in Italy for our commitment to addressing climate change. Our environmental performance together
with transparency in disclosure earned us recognition at the very top of the Carbon Disclosure Project’s Italy 100 Climate Disclosure Leadership Index (CDLI) and Climate Performance
Leadership Index (CPLI).
A forward-looking mentality and commitment to continuous improvement are natural to a group that values and cultivates diversity in individual talent, experience and cultures.
With the combined strength of our two organizations, we now also have the opportunity to play a leading role in the creation of a cleaner, safer planet.
We are all challenged to proactively become a part of the solution to problems that today’s world faces, such as pollution in urban areas, climate change, over-dependence on oil and
diminishing natural resources.
We need to put the maximum effort into helping to solve these issues, not just to meet stringent regulatory demands but, even more importantly, to ensure we can be proud of the legacy
we leave future generations.
Fiat and Chrysler, united, intend to do their part.
I want to thank everyone in the Group for embracing the culture of sustainability and for their daily dedication to translating it into concrete actions. They are our best and most precious resource.
/s/ Sergio Marchionne
Sergio Marchionne
CHIEF EXECUTIVE OFFICER
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Commitment / Fighting climate change
GRI-G4 1, 2, EC2
Fighting climate change
Climate change is one of the major global challenges facing the world today. The automotive industry is being called upon to help stabilize the level of greenhouse gases in the atmosphere
and to take an active role in the research and development of solutions for more sustainable mobility. Fiat Group recognizes its role in addressing climate change and is committed to
reducing the CO2 emissions of its products and processes from design and production, to distribution, use and the end-of-life phase.
There is growing recognition within both the scientific community and the general public that climate change is occurring and that the global climate is being affected by an increasing
level of greenhouse gases (GHG) in the atmosphere. The Intergovernmental Panel on Climate Change (IPCC) estimated that to keep the global temperature from rising by more than 2°C,
atmospheric concentrations of CO2 would have to be limited to between 400 and 550 parts per million (ppm). The lower limit of 400 ppm has now been reached, compared with the preindustrial level of approximately 280 (1). The fifth Intergovernmental Panel on Climate Change (IPCC) report states with 95 percent confidence that humans are the main cause of the current
global warming.
The increase in human-generated CO2 emissions has led many governments to implement control and regulatory measures to limit the resulting effects. The automotive industry is
addressing this challenge responsibly.
Fiat Group believes that effective, long-lasting results to address climate change can only be achieved through an integrated approach involving energy producers, manufacturers (including
suppliers), consumers, academia, the financial community and government. As stated in the Group Environmental Guidelines, the company is committed to adopting and developing
solutions that are at the same time safe, environmentally-friendly and economically viable. These solutions aim to fight climate change, preserve resources and safeguard health. Accordingly,
Fiat Group continues to focus on addressing CO2 emissions and once again, it has confirmed in its Sustainability Plan the commitment to reduce CO2 emissions in:
n engines, by developing increasingly efficient technologies for conventional engines, expanding the use of alternative fuels (such as natural gas and biofuels), and developing alternative
propulsion systems (such as hybrid or electric solutions), based on the specific energy needs and fuel availability of the various countries
n production plants, by cutting energy consumption levels and promoting the use of renewable energy
n transport activities, by increasing low-emission transport and involving our employees to reduce their commuting emissions
n supplier activities, by promoting environmental responsibility and spreading the principles and culture of World Class Manufacturing
n office-related activities, such as business travel, office activities and information technology emissions
n eco-responsible driving behavior, by providing dealers and customers with information and training on vehicle use and maintenance.
Fiat Group is also committed to maintain a risk management system for climate change-related risks, including increased physical risks associated with weather extremes and compliance
with emission trading regulations.
Source: Fourth Assessment Report of the Intergovernmental Panel on Climate Change (IPCC, 2007).
(1)
GRI-G4 34, 35, 36, 37, 43, 48, 49
Commitment / Sustainability governance model
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Sustainability governance model
Sustainability is about ensuring long-term financial success and business viability, in part by understanding and addressing the major needs of our stakeholders who are impacted by our
decisions and actions.
During 2013, business functions and regions across the Group committed to establishing long-term commitments and targets which are reported, together with the previous year’s results, in
this Sustainability Report. Our long-term commitments reflect ongoing changes in the automotive competitive environment as well as the evolution of stakeholder desires and requirements.
The Group’s commitment to sustainable development is reflected in the robust, well-established processes and organizational structures that have been created to ensure the integration
of economic decisions with those of a social and environmental nature and the investigation of related impacts. The Group’s approach to business is, in fact, shaped by a culture of acting
responsibly and the conviction that industrial development only has value if it is also sustainable.
Sustainability awareness throughout the Group has evolved and strengthened over the years, becoming an integral part of the strategic approach that drives the business. To reinforce
our commitment throughout the entire organizational structure, a process for delegating authority from the highest governance body to management and subsequently to all employees
has been in place since 2009, when responsibility for sustainability issues was assigned to the Nominating and Corporate Governance Committee which thus became the Nominating,
Corporate Governance and Sustainability Committee.
Since that time, several entities within the organization have assumed direct sustainability management roles.
The Sustainability Team – with its local presence in Italy, Brazil and the US – plays a central role in promoting a culture of sustainability within the Group and among its various stakeholders.
The team facilitates the process of business continuous improvement, contributing to risk management, cost optimization, stakeholder engagement and enhancement of the company’s
reputation. The teams interact with the individuals responsible for operational management of key issues (e.g., environment, energy, innovation, human resources, etc.) within each operating
segment and region, as well as with the central functions, by supporting them in analyzing and reporting sustainability-related impacts, and identifying potential areas for action. It also
manages relationships with sustainability rating agencies, international organizations, analysts and social responsible investors with the support of the Investor Relations team.
The Cross-Functional Sustainability Committee (CSC) promotes and evaluates operational decisions and plays an advisory role for proposals submitted to the Group Executive Council
(GEC) by the Sustainability team. The CSC consists of representatives from the principal functions at the central and company levels (Business Development, Corporate Communications,
Engineering, Design, Finance, GEC Coordinator, Human Resources, Industrial Relations, Institutional Relations, Internal Audit, Manufacturing, Purchasing, Senior Counsel and Treasurer).
The Group Executive Council (GEC), the decision-making body composed of the Chief Operating Officers (COOs) of the regions and sectors and various functional heads, defines the
strategic approach, approves the Guidelines and evaluates the alignment of the Sustainability Plan targets with business objectives. The GEC is periodically updated on the status of projects
and the Group’s overall performance on sustainability issues.
The Nominating, Corporate Governance and Sustainability Committee (a sub-committee of the Fiat S.p.A. Board of Directors) evaluates proposals related to strategic guidelines on
sustainability-related issues, presents opinions to the Board of Directors as necessary, and reviews the annual Sustainability Report. Consultations regarding sustainability aspects between
stakeholders and the highest governance body are delegated to the sustainability team which is responsible for maintaining an open dialogue with internal and external stakeholders on
these issues. Outcomes of this dialogue are then incorporated into the annual disclosure of the Sustainability Report and reported to the highest governance body according to their
relevance. In 2013, the Chief Operating Officers (COOs) of the EMEA, NAFTA and LATAM regions and their functional reports were updated by the Sustainability team on results of
Stakeholder Engagement Events.
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Commitment / Sustainability governance model / Sustainability ratings
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Sustainability ratings
Our Group’s commitment to sustainability has received recognition at the global level from several leading organizations and indices.
For the fifth consecutive year, Fiat S.p.A. was selected by RobecoSAM AG (the specialists in sustainability investing) for inclusion in the prestigious Dow Jones Sustainability Indices
(DJSI) World and Europe which only admit companies judged best-in-class in terms of economic, environmental and social performance. The Group received a score of 89/100 compared
with an overall average of 61/100 for companies evaluated in the Automobiles sector.
In addition, for the second consecutive year, the Group was recognized as the undisputed leader in Italy for its commitment to addressing climate change. On the basis of performance and
transparency in disclosure, the Group was named the leader in the CDP Italy 100 Climate Disclosure Leadership Index (CDLI) and Climate Performance Leadership Index (CPLI) for
2013. Fiat received the highest score overall for transparency in disclosure (99/100) and the maximum score (A) for its commitment toward reducing carbon emissions.
During the year, Fiat Group’s position was also confirmed in the Euronext Vigeo Europe 120 and the Euronext Vigeo Eurozone 120 indices, both established in collaboration with NYSE
Euronext, which include the top ESG performers based on an analysis of approximately 330 indicators.
The Group is also a member of several other major sustainability indices, including: ESI Excellence Europe, STOXX Global ESG Leaders, STOXX Global ESG Environmental Leaders, STOXX
Global ESG Social Leaders, STOXX Global ESG Governance Leaders, ECPI Euro Ethical Equity, ECPI EMU Ethical Equity, ECPI Global Developed ESG Best in Class Equity, FTSE ECPI Italia
SRI Benchmark and FTSE ECPI Italia SRI Leaders. In 2013, the Group also entered the Parks GLBT Diversity Index.
GRI-G4 2, 42
Commitment / Sustainability Plan / Process for the Sustainability Plan
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Sustainability Plan
Fiat Group’s approach to sustainability is based on aligning the company’s projects and initiatives to ensure that value is generated responsibly through the incorporation of economic,
environmental and social aspects into its business decisions. This approach has led to the creation of a focused and disciplined method for tracking the company’s progress toward
sustainable development. The Sustainability Plan communicates the Group’s progress annually to stakeholders by reporting on the boundary of each commitment, the specific actions to
be taken, progress toward achievement of the goal during the current reporting year and the target for the future. The Group’s sustainability strategy has resulted in a variety of projects
related to good corporate governance; environmentally responsible products, plants and processes; a healthy, safe and inclusive work environment; and constructive relationships with local
communities and business partners, as these are the milestones along the Group’s path of continual improvement oriented to long-term value creation.
Discover all our commitments and results in the Fiat Group Sustainability Plan.
Process for the Sustainability Plan
The Sustainability Plan presents the commitments, targets and results of the Group. Every year, it is updated by the Sustainability Team, which coordinates and consolidates the feedback
from all of the regions and business functions. The highest governance bodies of the Group are engaged in the development and approval of goals related to economic, environmental and
social aspects. This process consists of three main phases:
Planning phase: the commitments, actions and targets in the Sustainability Plan are initially defined on the basis of the areas for improvement identified by the Sustainability Team in
collaboration with the operating segments/regions and central functions. In support of that activity, throughout the year the team monitors the performance of best-in-class competitors
as well as the assessments by the principal sustainability rating agencies, international organizations and Socially Responsible Investors with whom the Group has a relationship. The draft
Sustainability Plan is submitted for the approval of the Group Executive Council (GEC), which evaluates its consistency with Group strategy and makes appropriate recommendations. Once
the Plan is approved by the GEC, it is then evaluated by the Nominating, Corporate Governance and Sustainability Committee of the Board which grants formal approval.
Management phase: responsibility for individual projects and achievement of the targets in the Sustainability Plan rests with the various operating segments/regions or corporate functions
which have the resources, tools and knowledge necessary for their implementation.
Control phase: as a further indication of adherence to the commitments made, the Sustainability Team is periodically updated on the status of projects and, in turn, updates the GEC.
Following the materiality analysis completed for 2013, the Sustainability Team launched a project to establish Group targets with a longer time horizon. Results of targets set in prior reports
which have not yet been concluded as well as the new targets are available through the Group’s online interactive report. The selection of the most relevant long- term targets is reported in
the printed version of the report at the beginning of related section.
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Commitment / Stakeholder engagement
GRI-G4 18, 19, 20, 21, 34, 35, 36, 37, 42, 48, 49
Stakeholder engagement
Dialogue with internal and external stakeholders is essential for Fiat Group to continue making progress in its quest for sustainability. In a dynamic, competitive environment, engagement
and dialogue are important to understanding stakeholder expectations, needs and concerns. As a corporate citizen, it is our responsibility to be aware of paradigm shifts, anticipate change
and pick up on emerging trends. This is all possible because we listen to and learn from our many stakeholders, inside and outside the Group.
One of the objectives of the dialogue with all Group stakeholders is to determine which commitments and topics are considered most important and crucial. These topics are those that
allow the Group to continue creating value in the short-, medium- and long-term for all its stakeholders.
We conducted an analysis to update the Group materiality diagram, the first edition of which was published in the 2012 Sustainability Report. This analysis has allowed us to identify the
most relevant aspects that reflect significant Group economic, environmental and social impacts and that greatly influence the assessments and decisions of stakeholders, both within the
world automotive industry and taking into account the unique characteristics of each geographic area where the Group is present.
This year we updated the materiality diagram with the results of the sustainability-focused Stakeholder Engagement Events held in Italy, Brazil and United States, allowing us to draw
conclusions for the Group level, as well as single out issues perceived to be important in specific locations.
The materiality analysis was carried out in accordance with the AA1000 Stakeholder Engagement Standard guidelines for the steps relating to the identification, mapping and prioritization
of stakeholders, and to the analysis of the results of their involvement. The guidance notes on Accountability and the criteria defined by the Global Reporting Initiative (GRI-G4) were also
followed with regard to outlining an approach to the materiality principle and the identification of material issues.
In this Report material topics identified by internal and external stakeholders as significantly important will be reported. The following topics that are not considered highly material:
n energy from renewable sources in operations
n other emissions from operations
n protecting biodiversity
n employees well-being and work-life balance
n recovery from external event
n public policy engagement.
An analysis defining the scope of each of the issues reported was carried out as well. In the context of the value chain, “scope” means the extent of the impact (of each of the material aspects
identified) of Group activities, products, services and relations.
All aspects that the analysis showed to be material have impacts within the organization as a whole (Mass-Market and Premium Brands, Luxury and Performance Brands, Components and
Production Systems, companies operating in advertising, communication and services). More specifically, the boundary of this Sustainability Report refers to all companies falling within the
scope of consolidation of Fiat S.p.A. at 31 December 2013. Furthermore the aspects analyzed have impacts outside the organization in geographical areas where the Group conducts its
operations and for all the stakeholders categories identified.
The result of the materiality analysis also led to a change in the structure of the sustainability section included in the 2013 Annual Report, concentrating more on the material topics,
discussed in detail in specific chapters.
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Commitment / Stakeholder engagement / Materiality diagram
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Materiality diagram
The stakeholder engagement events organized in Italy, Brazil and the US in 2013 provided an opportunity for additional insight into the economic, environmental and social aspects of the
Group’s activities that have the greatest impact on the decisions of stakeholders, including issues of specific relevance in each geographic area. As a result, the Group has updated the
materiality diagram first presented in the 2012.
Scrolling over the icons is possible to learn more about a specific issue, as clicking on each icon the related definition will appear. The icons allows you to select or to exclude the related
issues and to fill out a personalized matrix view.
Product
Environment
Social
Research and innovation
Human rights along the value chain
Customer satisfaction
Business integrity and ethical standards
Vehicle quality
Health and safety for employees
Community engagement
Professional development of employees
Workforce diversity and equal opportunity
Vehicle CO2 emissions
Energy and CO2 emissions
from operations, offices
Water used by operations
Vehicle fuel economy
Engagement with trade unions
Waste generated by operations
Alternative mobility solutions
Engagement with business partners
Environmental impact of business partners
Alternative propulsion and drive systems
Environmental impact of logistics
Important
Importance for external stakeholders
Very important
Vehicle safety
Recycled and recyclable materials
Responsible sourcing of raw materials
Important
Importance for internal stakeholders
Very important
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Product
Vehicle Safety
The Group works hard to increase the passive and active safety of vehicles and promotes initiatives that encourage drivers to behave responsibly, researching solutions to prevent accidents,
reduce damage and facilitate safe driving. Fiat Group sees increasing safety for drivers and all other road users as being one of the main ways of fulfilling its commitment to customers and
the community.
Research and innovation
The Group seeks to meet the demand for mobility while keeping the environmental footprint of the entire life cycle of vehicles to a minimum and being ever readier to handle new mobility
demands. Research and innovation activities are coordinated worldwide and aimed at developing solutions for increasingly sustainable mobility. The goal is to reduce consumption and
emissions as well as to increase vehicle safety and recyclability. At the same time, we maintain high standards for quality and driver satisfaction.
The Group responds to the needs and expectations of customers, promoting many initiatives aimed at keeping dialogue open through an increasing number of channels and constantly
improving the quality of its service and product offering. The ultimate goal here is to make sure that customers are as satisfied and loyal as possible.
Vehicle quality
The Group’s commitment to customers is oriented towards providing vehicles that are in line with the highest quality standards on all markets and in all segments.
Vehicle CO2 emissions
The Group’s product strategy is based on the development of solutions for minimizing the environmental impact of vehicles by reducing emissions.
Vehicle fuel economy
The Group is committed to developing innovative solutions focused on minimizing fuel consumption in vehicles.
Alternative mobility solutions
The Group works to identify and create new mobility solutions and services for providing new modes of vehicle use that are ever more flexible and customized, not to mention suitable to
the city and the country.
Alternative propulsion and drive systems
The Group works hard to improve combustion engine efficiency while guaranteeing high performance and lowering polluting emissions. It offers a vast range of alternative fuel vehicles,
develops alternative drive systems and emission abatement systems, and reduces the energy demand of its vehicles.
Recycled and recyclable materials
The Group places particular emphasis on its place at the forefront of material recycling and recovery once the vehicle reaches the end of its life (End-of-Life Vehicles – ELVs). This is why
it implements preventive measures right from the start while the vehicle is being designed, promoting the use of eco-compatible materials and substances so as to ensure their disposal
without posing any risk to the environment whatsoever.
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Environment
Energy and CO2 emissions from operations, offices
The Group is continuously engaged in research on technology that consumes little energy and solutions that help reduce the use of fossil fuels and decrease greenhouse gas emissions
from its production activities and offices.
Waste generated by operations
The Group works to prevent waste generation so that fewer raw materials are used and there is less of an impact on the environment. Recycling and recovery of materials is widespread
throughout the Group.
Water used by operations
The Group considers water to be one of the most important natural resources to conserve, and invests efforts in sustainable management of the entire water cycle, identifying the technology
and actions to maximize recycling and reuse of water.
Environmental impact business partners
The Group’s commitment to reducing the environmental footprint of partners not only covers products and production processes but also gets suppliers directly involved.
Environmental impact of logistics
Efficiency and environmental sustainability of logistics processes are key factors in creating value. In this area, the Group places emphasis on lowering the emissions from the movement of
material, components and products all along the supply chain and resorting to non-reusable packaging as little as possible.
Responsible sourcing of raw materials
The Group makes efforts to guarantee the integrity of its procurement sources and pays close attention to what is going on in countries that are highly politically or economically unstable
and that could disrupt the supply chain and compromise the availability of essential materials that are difficult to replace.
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Social Human rights along the value chain
The Group advocates human rights and proper working conditions in the scope of its activities and along the entire value chain.
The Group responds to the needs and expectations of customers, promoting many initiatives aimed at keeping dialogue open through an increasing number of channels and constantly
improving the quality of its service and product offering. The ultimate goal here is to make sure that customers are as satisfied and loyal as possible.
Business integrity and ethical standards
The Group makes efforts to meet with the highest ethical and business standards, helping to maintain a corporate culture characterized by integrity, transparency and responsibility.
Health and safety for employees
Safety at work and helping workers stay healthy are fundamental conditions that the Group strives to ensure for all employees in all areas and in every country.
Professional development of employees
Human capital is a crucial factor that gives the Group a competitive edge, not just to maintain its ranking among the giants of the automobile industry, but also to reach the ambitious goal
of creating sustainable value over time.
Workforce diversity and equal opportunities
The Group sees diversity as essential to corporate success and fosters a work environment where employees feel respected, valued and involved, as well as recruits highly motivated
individuals that bring innovation and diversity.
The Group maintains relations geared toward mutual recognition, dialogue and exchange with trade unions and employee representatives.
The Group sees its suppliers as strategic allies in creating advanced-technology vehicles that up its competitiveness. It makes an effort to establish solid, enduring collaborations and share
its approach to sustainability.
Community engagement
The Group helps promote progress and independent development in the communities where it operates.
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Commitment / Stakeholder engagement / Commitment toward stakeholders
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Commitment toward stakeholders
The Group approach to stakeholder engagement relies on the assumption that the voice of our stakeholders is relevant and potentially useful for the Group’s ability to continuously strengthen
its efforts as a global sustainable player. Our ability to generate value through business choices also depends intrinsically on the effectiveness with which we can listen to and recognize the
needs and expectations of those stakeholders who, directly or indirectly, affect the activities of the Group or are influenced by them.
Fiat Group’s activities have an impact on the decisions of a large number of stakeholder categories, both internal and external, including: employees, customers, suppliers, dealers,
institutions, trade unions and associations, investors, local communities and their surrounding area. Similarly, the Group’s results and activities depend in varying degrees on the behavior,
expectations and fulfillment of stakeholder needs.
Acting responsibly therefore means engaging in an ongoing dialogue, both locally and globally, with main Group stakeholders, in order to understand their different needs and expectations.
As the Stakeholder Engagement Guidelines state, the Group “firmly believes that this engagement process, backed by a clear commitment, is a key element for maximizing the
opportunities and managing the potential risks affecting our business which could arise from the interaction with the various categories of stakeholders”.
Our approach toward stakeholders has evolved over the years in the shape of increasingly sophisticated initiatives. Through its business functions, the Group manages relations with
various categories of stakeholders by continually establishing an ongoing dialogue aimed at understanding their expectations and promoting concrete actions that target specific needs
and major interests.
Stakeholder interface occurs through many channels, and now, in 2013 the Group added yet another by creating the email address [email protected].
Assessment of the issues that the Group’s internal stakeholders perceive as most important in the area of sustainability were launched in 2012 and continued throughout the year.
A questionnaire was administered to a total of about 70 employees from different units and geographic areas.
In 2013, the Group also took a new approach to interacting with its external stakeholders by organizing three sustainability-focused Engagement Events in Italy, Brazil and the
United States.
The goals of these events were:
n gain greater insight into regional or national differences with regard to sustainability issues
n increase transparency in the communication of sustainability results and information of interest to stakeholders
n obtain feedback and ideas on how to address sustainability better and shape it to meet major needs of principal stakeholders.
The dialogue opened in each of these three countries made possible an exchange of opinions, ideas and perspectives of various categories of stakeholders (1) aimed at broadening their
horizons in the field of sustainability on today’s and tomorrow’s pressing challenges.
At the meetings, the various participating stakeholder representatives engaged in activities and open discussions, giving them the opportunity to meet and converse freely, contributing to
the assessment of:
n the most significant impacts of Group activities on the entire value chain
n challenges for a more sustainable mobility and the long-term sustainability commitments they would like the Group to undertake
n perceived relevance and materiality of various sustainability topics.
These were mainly private customers, fleet customers, dealers, suppliers of materials and services, media, local communities, universities and technical institutes, environmental protection organizations and other foundations, and non-governmental
organizations.
(1)
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Commitment / Stakeholder engagement / Commitment toward stakeholders
The following table shows the main challenges and opportunities that stakeholders believe that the Group should address in the short and long term.
Sustainability-focused Stakeholder Engagement Events
Topics selected by region
Turin (Italy), November 2013 – 23 participants
n
Promoting a culture of sustainability through partnerships with the world
of education and other players
n
Promoting new models of mobility that meet the ever-changing
requirements of customers and new constraints of urban spaces
Belo Horizonte (Brazil), December 2013 – 25 participants
n
Emphasis on managing end-of-life products
n
Participation in the development of public policies that improve
the quality and accessibility of services
Detroit (US), January 2014 – 24 participants
n
Major cross-cutting themes that emerged
Promoting new models of mobility that meet the ever-changing
n
Developing innovative solutions for sustainable mobility
n
Developing alternative fuels
n
Optimizing fuel consumption and reducing the CO2
n
Road safety and relative social impact
n
Sharing sustainable practices along the supply chain
n
Spreading a culture of sustainability in society
emissions of vehicles
requirements of customers and new constraints of urban spaces
As mentioned in the Group Stakeholder Engagement Guidelines, “as part of its responsibility toward stakeholders, the Group is committed to disclose and consult on the impacts and
benefits of its activities and to communicate the development of its programs to the public.” For this purpose, the following map of relevant topics for stakeholders is a summary of the main
actions taken to respond to the feedback from stakeholders.
GRI-G4 16, 26, 27
Commitment / Stakeholder engagement / Map of relevant topics for stakeholders
Interactive
Map of relevant topics for stakeholders
Public institutions
Government, local authorities, public agencies, regulatory bodies, institutions and trade associations
Approach of engagement
n Continuous dialogue on regulatory and legal developments
n Periodic ad hoc meetings on corporate objectives and decisions
n Development of joint projects and alliances to promote social and environmental issues
n Participation in working groups and collaborative training on auto industry-specific topics
Stakeholder expectations
Our leading actions
Achievement of common targets and alignment with industry
standards in terms of quality, safety and the environmental
impacts of products and processes
Compliance with industry standards, pulling ahead achievement and exceeding minimum requirement when feasible
Responsiveness and proactiveness toward projects and
initiatives related to environmental and social matters
Regular disclosure on performance and future targets related to the minimization of environmental and social impacts
of our business
Technical support on specific industry-related issues
Active membership in trade and industry organizations such as ACEA,(1) NGV Italy,(2) NGVA,(3) EDTA,(4) ERT,(5)
the Alliance,(6) AIAG (7) and ANFAVEA (8) among others
European Automobile Manufacturers’ Association.
Natural Gas Vehicle Association (Italy).
Natural Gas Vehicle Association (Europe and US).
(4)
Electric Drive Transportation Association.
(5)
European Round Table for industrial leaders.
(6)
Alliance of Automobile Manufacturers (US).
(7)
Automotive Industry Action Group (North America).
(8)
Associação Nacional dos Fabricantes de Veiculos Automotores (Brazil).
(1)
(2)
(3)
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Employees
n Ongoing dialogue with Human Resources function representatives and management
n Yearly evaluation process and meetings to communicate expected and actual performance level and outline professional development path
n Internal people satisfaction surveys
n Employee Town Halls and other meetings
n Provision of development opportunities including training and mentoring
n Employee Resource Groups (ERG) and Diversity Work Stream initiatives
n Employee suggestion initiatives
n Provision of volunteer opportunities in the areas of society and the environment
Our leading actions
Transparent, open corporate communication
Worldwide access to intranet and other internal communication channels for employees
Updates from senior management on organization performance and company developments
Safe and healthy work environment
Highest health and safety standards pursued at all work locations and continuous reduction of work injury rates
Transparency on objectives and reward system
Employee appraisal systems adopted worldwide to assess employee results and behavior
Availability of training and professional development
Training available to Group employees on topics which include job skills, integrity, sustainability and diversity
Promotion of diversity, inclusion and respect for human rights
Group codes of conduct, guidelines, processes and procedures aligned with highest international standards
Interactive
Trade unions and employee representatives
n Meetings at all levels (plant/company, regional/national) as required by law or contractual provisions
n Continuous dialogue at plant, company, regional or national level
n Trilateral meetings (company, trade unions and government bodies) on matters of particular relevance
Our leading actions
Open and constructive dialogue aimed at defining joint solutions
Dialogue in line with applicable local legal or contractual provisions and regulations
Dealer and service network
n Daily contacts and periodic meetings n Sustainability-focused Stakeholder Engagement Events
Our leading actions
Wide range of competitive products
Competitive financial services offered to customers
Affordable products to meet the needs of a diverse customer base
Complete and rapidly accessible product information, including
sustainability features and Group commitment
e-Product tool made available to support vehicle sales by effectively explaining the product range and illustrating
innovative characteristics and technologies
Incorporation of sustainability messages in product advertising
Support business profitability by reinforcing managerial skills
Empowerment of dealership staffs to improve managerial and interpersonal skills
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Prospective and existing customers
n Sales and after-sales processes
n Market research (concept tests, clinic tests, image and awareness surveys, focus groups)
n Customer satisfaction surveys
n Communication channels (web, social media, direct mailing)
n Events (exhibitions, product launches, trade fairs, conventions and owner events) and sponsorships
n Sustainability-focused Stakeholder Engagement Events
Our leading actions
Quality, innovation and affordability of products
Provision of products that combine highest quality standards and innovative technologies while recognizing
and accommodating for different economic and geographic requirements and mobility needs of a wide range
of customers
Safety of products
Offer a variety of technologically advanced safety features and characteristics on our products
Innovation at competitive prices
Introduction of innovative product solutions accessible to a wide customer base
Quality, speed, and efficiency of services offered
Professional, courteous and timely response from dealers, service centers and company
Availability of credit and financial services
Financial services offered to customers
Quality and reliability of products
Quality priorities used globally to categorize and address product standards
Low-emission products
Continual efforts made to introduce and develop a diversified portfolio of technology solutions to reduce CO2
emissions from vehicles
High-fuel economy vehicles
Ongoing efforts made to increase fuel economy using a balanced approach that combines conventional and
innovative technologies
Development of mobility solutions and services for greater
affordability of urban transportation and an increase in the
quality of life in modern-day cities
Promotion of new mobility concepts (e.g., car-sharing, carpooling) that are economically viable for the Group
and its customers in partnership with institutions and other organizations
Future trends analyzed and sector drivers of mobility paradigm shifts identified
Environmentally friendly business processes
The Group continues to develop solutions designed to reduce the environmental footprint of its operations
Interactive
Suppliers and commercial partners
n Daily relationship through Purchasing function representatives
n Engagement through sustainability clauses in contracts
n Technology Days and SUpplier Product Enhancement Reward (SUPER) program
n Supplier Town Halls
n Conferences and training programs
Our leading actions
Joint collaboration and sharing of best practices between
the Group and the supply chain on critical aspects
of sustainability
Support and training provided to suppliers intending to implement the World Class Manufacturing system
Sustainability and innovation criteria as drivers for purchasing
decisions
Organization of initiatives to allow suppliers to present innovative ideas and new products
Clauses progressively introduced in new agreements requiring suppliers to comply with both the Group’s Code
of Conduct and specific Sustainability Guidelines
Continuity of supply and fulfillment of contractual conditions
Significant number of long-standing company-supplier relationships
Limited number of disputes with commercial partners
Promotion of diversity and inclusion in the supplier base
Initiatives to support inclusion of minority suppliers in the supplier base
Collaboration for common improvements to reverse logistics
Partnerships established with other organizations to handle reverse logistics and to make component and material
takeback more efficient
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Local communities and NGOs
Scientific and technological research, schools and academia, cultural, professional and socio-political representatives and opinion leaders
n Ad hoc meetings on sustainability issues
n Initiatives, managed directly or in partnership
n Collaboration on joint projects
n Cultural exchange programs
n Dialogue with universities
n Participation on boards of directors of organizations
n Community Town Halls
Our leading actions
Collaboration on research projects
Collaborations in place worldwide with private and public partners on automotive innovation programs and sector
priorities
Research on alternative fuels
In 2013 alone, the Group invested around €3.4 billion on research and development
Continuous research on the potential of alternative fuels to reduce CO2 emissions through innovative technologies
Development of an alternative, affordable drive system
Development of electric/hybrid technologies, focusing on solutions that are economically viable, competitive
in the marketplace, and beneficial to society
Improve urban mobility experience
Worldwide engagement in research and development programs which focus on the development of new
technologies and solutions to guarantee a mobility experience that is increasingly safe and sustainable
Promotion of education and culture of sustainability in society
Promotion of initiatives and programs dedicated to employees as well as external stakeholders conducted
in partnership with academia and other organizations to increase sustainability awareness in society as a whole
Promotion of a safe approach to driving with a particular focus
on youth
Collaboration with several institutions and organizations to promote the teaching of techniques that combine safety
and responsibility with driving pleasure
Support education of future generations
Youth nurtured through scholarships and monetary rewards worldwide
Contributions and support for initiatives for local development
including medium to long-term commitments
Material and monetary resources committed in 2013 for a value of approximately €19.7 million to benefit local
communities, (with activities focused on a variety of causes, such as education, for value of approximately
€7.7 million and social welfare of approximately €4.9 million)
Employees dedicated time and skills to volunteer initiatives in support of local communities in need
Interactive
Investment community and financial analysts
Traditional and Socially Responsible Investors; sustainability rating agencies
n Daily dialogue
n Shareholder meetings
n Sensitive communications and information
n Quarterly conference calls
n Seminars, industry conferences, non-deal roadshows and investor meetings
n Investor Relations section of the Group website
n Sustainability assessment processes
Our leading actions
Expand and reinforce knowledge of the Group’s sustainability
efforts and results
Inclusion of sustainability information in presentations of quarterly financial results
Value creation (return on investment, sustainable and
responsible management of the business)
Global presence of the business with more than a century of industrial history, with 4.4 million vehicles sold in 2013
and trading profit of €3.4 billion
Around 6% of free float shares held by Socially Responsible Investors (Source Vigeo research, as of 30 November 2013)
Identification of key developments
in CSR-related topics
Continuous open dialogue with rating agencies and sustainability stakeholders to update material aspects and new
emerging trends and expectations
Journalists and media
n Daily dialogue
n Presentations and press conferences
n Other events (product drives/launches, plant investment events, auto shows, etc.)
n Group and company websites
Our leading actions
Availability, timeliness, accuracy and transparency of information
on financial and non-financial performance
Continuous release and disclosure of information on Group strategies and results through the press, brand websites,
the sustainability section of the corporate website and brochures
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GRI-G4 EC1
Commitment / Stakeholder engagement / Breakdown of value added
Each initiative is monitored through qualitative and/or quantitative performance indicators used by the business functions involved at both centrally and locally.
The evaluation of the effectiveness of the implemented measures is a key ingredient in the analysis of the lessons learned (see also the Sustainability section of www.fiatspa.com), which,
together with feedback from stakeholders, contribute to fine-tuning continual efforts in Group sustainability.
Breakdown of value added
The value added through the activities of Fiat Group and distributed to its various stakeholders in 2013 totaled €13,437 million (15% of revenues).
Direct economic value generated
Fiat Group worldwide (€ million)
Consolidated 2013 revenues
Income of financial services companies
Government grants (current and deferred/capitalized), release of provisions, other income
Other income
Direct economic value generated
Cost of materials
Depreciation and amortization
Other expense
Value added
Breakdown of value added
2013
86,816
(239)
693
460
87,730
(68,175)
(4,574)
(1,544)
13,437
Fiat Group (€ million)
ef
d
a. 9,352 Employees
c
b. 1,958 Finance providers
b
a
d
c. 1,328 Reinvested in the Group
d. 772 Government and Public Institutions
e. 20 Communities
f. 7 Shareholders
Commitment / xx
Interactive
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GRI-G4 6, 8, 9
Group profile
Group profile
Fiat is an international auto group engaged in industrial activities in the automotive sector that designs, engineers, manufactures, distributes and
sells vehicles for the Mass-Market and Premium Brands under the Fiat, Alfa Romeo, Lancia, Abarth and Fiat Professional brands and Group
Chrysler brands such as Chrysler, Jeep, Dodge and Ram brand vehicles and vehicles with the SRT vehicle performance designation, as well as
Luxury and Performance cars under the Ferrari and Maserati brands.
MASS-MARKET AND PREMIUM BRANDS(1)
LUXURY AND PERFORMANCE BRANDS(2)
COMPONENTS AND PRODUCTION SYSTEMS(3)
OTHERS(4)
Following the acquisition of Chrysler, the Group is making rapid progress in completing the plan for the integration of Fiat and Chrysler and asserting itself as a strong and competitive group
that is a leader in technological innovation with a global presence and comprehensive product range.
The Group also operates in the components sector, through Magneti Marelli and Teksid, and in the production systems sector, through Comau and in after-sales services and products
under the Mopar brand name. The Group provides retail and dealer finance, leasing and rental services in support of the car business through subsidiaries, joint ventures and commercial
agreements with specialized financing services providers.
(4)
(1)
(2)
(3)
Includes Fiat Group Automobiles (100%; as of January 2013 Fiat Powertrain is included in Fiat Group Automobiles) and Chrysler Group (as of 21 January 2014, Fiat S.p.A.’s interest in Chrysler Group increased to 100%).
Includes Ferrari (90%) and Maserati (100%).
Includes Magneti Marelli (100%), Comau (100%) and Teksid (84.8%).
Includes firms operating in publishing, communication and services.
GRI-G4 4
Group profile / Mass-Market and Premium Brands
Interactive
Mass-Market and Premium Brands
Fiat
The quintessential symbol of Italian motoring, the brand strives to offer simple, innovative and affordable solutions to the many different needs of its customers.
All Fiat brand products combine the genuinely Italian passion for design and original aesthetic solutions with the greatest functional efficiency and versatility. For years now,
Fiat has been designing cars that are both fun to drive and low on fuel consumption and emissions. Fiat is engaged in constantly reducing the environmental impact of its
cars. In fact, for six years running Fiat has been recognized as the brand with the lowest average CO2 emissions among the best-selling car brands in Europe. In addition,
the European motoring magazine Autobest has awarded Fiat’s “methane program” the “Ecobest 2013” title for being the simplest and most cost-effective solution with the
lowest environmental impact of fuels currently available.
Alfa Romeo
Technology, efficiency, sportiness, and unique Italian design are the hallmarks of every Alfa Romeo model. The brand’s history is reflected in every car and translates into
a perfect balance between driving pleasure and maximum safety, made possible by the research and development of cutting-edge technologies. For more than twenty
years, Alfa Romeo has been working with the International Safety Driving Center, headed by former Formula 1 champion Andrea de Adamich, to organize driving classes
promoting safety, accident prevention and driver education among the general public and especially young people.
Lancia
The Lancia range results from a product philosophy which places elegance, personality, style and customization at the heart of its projects. A charm which, together with
the adoption of technological innovations, succeeds in satisfying a demanding audience looking for cars that set themselves apart from the rest of the automotive scene.
The ECOCHIC range embodies these same values and is designed to be eco-friendly with bi-fuel engines (natural gas/gasoline) that reduce emissions to a minimum.
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Fiat Professional
Fiat Professional is our commercial vehicle brand whose proven experience makes it a leader in its sector. It offers a wide range of vehicles, designed to meet all
work and transport needs while minimizing fuel consumption and operating costs and maximizing profitability. Its leadership was confirmed by the title of “LCV
Manufacturer of the Year,” received for the second year in a row at the GreenFleet Awards 2013. The award recognizes its efforts to improve fuel economy and reduce
the environmental impact of commercial vehicle fleets. The innovative eco:Drive Professional and eco:Drive Fleet systems play a significant role in helping customers
optimize efficiency of its commercial vehicles.
Abarth
The legendary company founded in 1949 by Karl Abarth has always been synonymous with cars with a strong, determined and indomitable spirit, just like the
scorpion in the company’s logo. Today, the brand builds and sells small and easy-to-handle sports cars with an unmistakable Italian taste, with lightweight engines
that can get the most out of every single unit of horsepower. In addition to pursuing engine performance matched with sporty driving, Abarth advocates conscious
and safe driving. In 2013, for the third year in a row, the brand held the “Make it Your Race” competition for aspiring race drivers. This platform that brings together
the virtual and real worlds is designed to usher young aspiring racing drivers into the world of motor sports while promoting safe and responsible driving on the road.
Chrysler
The Chrysler brand has delighted customers with distinctive designs, craftsmanship, intuitive innovation and technology all at an extraordinary value since the
company was founded in 1926. The Chrysler brand’s succession of innovative product introductions continues to solidify the brand’s standing as the leader in design,
engineering and value. The premium for the Chrysler brand is in the product, not the price. Whether through groundbreaking, bold design; sleek elegant styling; or
family-room-on-wheels functionality, Chrysler brand vehicles reward the passion, creativity and sense of accomplishment of its owners.
Jeep
Built on more than 70 years of legendary heritage, Jeep is the authentic sport utility vehicle (SUV) with class-leading capability, craftsmanship and versatility for
people who seek extraordinary journeys. The Jeep brand delivers an open invitation to live life to the fullest by offering a full line of vehicles that continue to provide
owners with a sense of security to handle any journey with confidence. In 2013, the Jeep brand set a new all-time global sales record, with sales of more than 731,000
Jeep vehicles around the world. This marked the fourth consecutive year of Jeep sales increases both globally and in the United States.
Interactive
Dodge
The Dodge brand is tearing into its centennial year with a keen eye focused on the future and a desire to create vehicles customers can’t wait to drive and are proud
to park in their driveways. With 100 years of history, Dodge is building on the technological advancements of the ’30s and ’40s, design evolution of the ’50s, the racing
heritage of the ’60s, the horsepower of the ’70s, the efficiency of the ’80s and unbelievable styling of the ’90s as it paves the road to its future.
Ram Truck
Since its launch as a distinct vehicle brand, the Ram Truck brand has concentrated on how core customers use their trucks and what new features they’d like to see.
Whether focusing on a family that uses its half-ton truck day in and day out, a hard-working Ram Heavy Duty owner or a business that depends on its commercial
vehicles every day, Ram has the truck market covered. The Ram brand offers best-in-class fuel economy with the new 3.0-liter EcoDiesel engine, a number of firstin-segment fuel saving technologies, and the only factory-built natural gas pickup truck.
SRT
Chrysler Group’s Street and Racing Technology (SRT) uses a successful product development formula to design, engineer and build benchmark American highperformance vehicles. Five proven hallmarks are applied to each SRT vehicle: awe-inspiring powertrains; outstanding ride, handling and capability; benchmark
braking; aggressive and functional exteriors and race-inspired and high-performance interiors to remain true to its performance roots.
Mopar
Mopar is the Group’s service, parts and customer-care brand which is establishing itself as one of the major players in the market. With the creation of the alliance
between Chrysler Group and Fiat S.p.A., Mopar continues to extend its global reach, integrating service, parts and customer-care operations in order to enhance
dealer and customer support worldwide. Mopar’s worldwide portfolio includes more than 500,000 parts and accessories that are distributed in more than 130
markets. Mopar is the source for genuine parts and accessories for Chrysler Group brands as well as Fiat brands.
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Group profile / Luxury and Performance Brands
GRI-G4 4
Luxury and Performance Brands
Ferrari
Since its founding in 1947, the company has traveled a long way, but its mission has always been the same: to make unique sports cars that represent the best in automotive
technology, both on the track and on the road.
The epitome of passion and sportiness, Ferrari needs no introduction. Its calling card is the numerous Formula One titles it has won: a total of 16 constructors’ and 15 drivers’
championships. And of course, there is the impressive lineup of legendary GT models – exclusive cars that are unique for their performance, cutting-edge technology and
design. One after another, each model released raises the bar of excellence within the industry.
Behind these extraordinary cars there is a group of equally extraordinary people. To achieve outstanding results, Ferrari believes in the importance of teamwork built on a group
of individuals whose skills and competence are pooled together to create a close-knit and winning team. True to this philosophy, in 1997 it launched a comprehensive initiative
spanning from workplace safety to bio-sustainable architecture and workplace ergonomics, geared toward ensuring general employee well-being – Formula Ferrari.
Maserati
The brand has continued to achieve success on the track and on the road for over a hundred years through the charm, elegance and cutting-edge technology of its unique cars.
Maserati cars combine power with elegance and a futuristic design with surprising practicality. Its models immediately stand out for their extraordinary personality and satisfy
even the most demanding and sophisticated tastes.
With the launch of the new Quattroporte, the brand’s flagship model, and the Ghibli, which heralds its entry into the luxury E segment, Maserati’s has set an ambitious strategic
target of achieving a major global presence in the luxury car market with annual production of 50,000 units.
Its long tradition of successful models has repeatedly redefined the concept of the Italian sports car in terms of style, performance, comfort and elegance, as well as safety, as
testified by the two prestigious international safety ratings awarded to the Ghibli: the Euro NCAP 5-star rating and the IIHS 2013 Top Safety Pick.
GRI-G4 4
Group profile / Components and Production Systems
Interactive
Components and Production Systems
Magneti Marelli
Magneti Marelli is an international company committed to the design and production of hi-tech systems and components for the automotive sector: from lighting to
engine control, electronics and suspension systems, from exhaust systems to components for the aftermarket and motorsport. Magneti Marelli has a direct presence in
19 countries with 86 manufacturing facilities, 12 Research and Development centers and 26 application centers.
Magneti Marelli combines quality, flexibility and competitive technologies to offer customers a range of cost-effective products. Through a process of continuous
innovation, Magneti Marelli leverages its technical know-how to develop intelligent systems and solutions that contribute to the evolution of safe and sustainable mobility,
as well as enhance the passenger experience. For example, application of research in lightweight materials to suspension systems won it the “Supplier of the Year” at
the Vehicle Dynamics International Awards 2013.
Comau
With 40 years of experience in industrial automation, Comau is a recognized world leader in the design and construction of sustainable automation solutions and
maintenance services.
Continuous improvement in products, processes and services, and significant investment in research and development have enabled the brand to position itself as a
leader in its sector, meeting the expectations of the most demanding customers.
Environmental responsibility is an integral part of the company’s activities. In addition to its active engagement to improving energy efficiency and reducing greenhouse
gas emissions in its own plants around the world, through the eComau business line it works with customers to improve their automated processes and reduce energy
consumption.
Teksid
With over 80 years of experience in the production of engine blocks, cylinder heads, engine components, and transmission, gearbox and suspension components,
Teksid is the world’s largest producer of gray and nodular iron castings. The company is committed to continuously adapting the technical characteristics of its products
to the increasingly exacting needs of the automotive industry.
The ingredients of Teksid’s success include: high level of automation; continuous technology upgrades to improve quality standards; as well as close integration with the
product development activities of customers, which include the leading global producers of cars, trucks, tractors and diesel engines.
In addition, Teksid Aluminum is the world leader in aluminum production technology for cylinder heads and engine components. In 2014, leveraging the synergy with
Chrysler Group, there will be a substantial increase in production of cylinder heads at the Carmagnola plant in Italy where new systems, new workstations, leaner
production processes and optimized logistics have been implemented.
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Group profile / Map of principal international agreements
GRI-G4 6
Map of principal international agreements
EUROPE
FGA Capital: Fiat Group Automobiles (FGA)
and Crédit Agricole Group (through their French subsidiary CA
Consumer Finance S.A.) JV (50/50%) for the financial services
activities related to FGA, Chrysler Group, Maserati,
Jaguar & Land Rover car sales in Europe.
On November 8 2013, the agreement to extend the Joint Venture
through 31 December 2021 was completed.
On October 21 2013 FGA Capital and Jaguar & Land Rover
renewed the Financial Services partnership
SERBIA
Fiat Group Automobiles (FGA) and the Serbian government
JV (66.7% FGA; 33.3% Serbian government) for the production
of FGA passenger cars at the plant in Kragujevac for both
European and NAFTA markets
Fiat Group Automobiles (FGA) and Opel
Agreement with Opel to supply vehicles based
on the Fiat Doblò platform
ITALY
Fiat Group Automobiles (FGA) acquisition(1) of remaining 50%
stake in VM Motori S.p.A. (VM) from General Motors
VM is a long-established company specialized in the design
and manufacturing of diesel engines
ITALY AND FRANCE
Fiat Group Automobiles (FGA)
and PSA Peugeot Citroën Group
JV in Sevel Val di Sangro (50/50%) and Contract Manufacturing
Agreement in Sevel Nord(2) for the production of the following
vehicle families:
n compact commercial vans for Fiat, Peugeot and Citroën
n light commercial vehicles for Fiat, Peugeot and Citroën
POLAND
Fiat Group Automobiles (FGA) and Ford
Cooperation for the development and production
of A-segment cars (Fiat 500 and Ford KA)
TURKEY
Fiat Group Automobiles (FGA) and Koç Group
Listed JV (37.86% FGA; 37.86% Koç Group)
for the development and production of passenger cars and light
commercial vehicles, including a compact commercial van
and a passenger car for Fiat, Peugeot and Citroën, and light
commercial vehicles for Fiat and Opel
Magneti Marelli
and Johnson Controls Automotive S.r.l.
JV (50% MM; 50% JCI) for the production and distribution
of instrument panels, door panels, floor consoles and rear
quarters to Fiat Group Automobiles Serbia
HUNGARY
Fiat Group Automobiles (FGA) and Suzuki Motor Corporation
Agreement (PDMA) for the production by Magyar Suzuki Corp.
of the Fiat Sedici model in Hungary
MEXICO
Magneti Marelli and Promatcor Inc.
JV (51% MM; 49% Promatcor) for the production of suspension
components for Fiat-Chrysler (Ducato)
Group profile / Map of principal international agreements
Interactive
CHINA
INDIA
INDONESIA
Fiat Group Automobiles (FGA),
Chrysler Group International LLC
and Guangzhou Automobile Group
Framework Agreement to expand cooperation on passenger
car manufacturing and sales in China
Fiat Group Automobiles (FGA) and TATA Motors
Agreement on the restructuring of Fiat India Automobiles Limited
and the distribution model for Fiat brand vehicles in India
and PT Garansindo Inter Global
Agreement for appointing third party distributor in Indonesia
for Alfa Romeo and Fiat
and GAC Fiat Automobiles Co., Ltd (GAC FIAT)
Agreement signed for the production of the C-Hatch Back
in China by GAC FIAT
Teksid, Shanghai Automotive Industry Corporation (SAIC)
and Yuejin Motor Corporation (YMC)
JV (50% Teksid; 25% SAIC; 25% YMC) for the production of gray
and nodular iron cylinder blocks for cars
Magneti Marelli, Hefei Jianghuai Automotive Co., Ltd (JAC)
and Hefei Lingdatang Collective Assets Management Co.,
Ltd (LINGDATANG)
JV (51% MM; 37% JAC; 12% Lingdatang) for the design,
development, production and distribution of exhaust systems
for the Chinese market
Magneti Marelli and Changchun Fudi Equipment Technology
Development Co., Ltd (FUDI)
JV (51% MM; 49% FUDI) for the production and distribution
of powertrain systems (such as intake manifolds, throttle bodies,
fuel rails, and air/fuel modules) for the Chinese market
Magneti Marelli
and Shanghai Automobile Gear Works (SAGW)
JV (50% MM; 50% SAGW) for the production and distribution
of hydraulic components for the Automated Manual Transmission
(AMT) and hydraulic kit of Dual Clutch Transmission (DCT)
for the Chinese market
Magneti Marelli and Wanxiang Qianchao Co., Ltd
JV (50% MM; 50% Wanxiang) for the design, production
and distribution of automotive shock absorbers and related
products for the Chinese market
Magneti Marelli
and China South Industries Group Corp. (CSI)
Agreement for the establishment of a JV (50% MM; 50% CSI)
for the design, production and distribution of automotive
lighting products for the Chinese market
Fiat Group Automobiles India Private Limited
Wholly FGA owned distribution company established in India.
This entity commenced distribution of Fiat brand vehicles
on 1 April, 2013
Magneti Marelli
and Talbros Automotive Components Ltd
JV (50% MM; 50% Talbros) for the design, production
and distribution of suspension components and modules
(such as control arms, knuckles, front and rear axles)
for automobile applications in India
Magneti Marelli, Suzuki Motor Corp.
and Maruti Suzuki India Ltd
JV (51% MM; 30% Suzuki; 19% Maruti) for the production
and distribution of electronic control units for diesel engines
in India
and PT PARAMA UNGGUL OTOMOTIF
Agreement for appointing third party distributor
in Indonesia for Abarth
KOREA
Chrysler Korea Limited
Chrysler Korea Limited launched the distribution of Fiat brand
vehicles in Korea pursuant to an authorization from FGA
to Chrysler Group
NEW ZEALAND
Magneti Marelli and Unitech Machines Ltd
JV (51% MM; 49% UM) for the design, production
and distribution of automotive electronic systems
and components (such as instrument clusters, body electronics,
telematics devices) in India
New distributor appointed for Fiat brand vehicles in New Zealand
Magneti Marelli and Sumi Motherson Group
JV (50% MM; 50% Motherson) for the production
and distribution of automotive lighting products and engine
control systems (such as intake manifolds for engines) in India
Magneti Marelli and Faurecia
Cooperation Agreement for the establishment of a JV (50%
MM; 50% Faurecia) for the design, development, production
and distribution of advanced human-machine interface (HMI)
vehicle interior products
Magneti Marelli and Krishna Group
Two JVs (both 50% MM; 50% Krishna) through SKH Metals Ltd
and SKH Sheet Metal Components Ltd, respectively, for the
design, production and distribution of exhaust systems in India
Magneti Marelli and Hero MotoCorp Ltd
Agreement for the establishment of a JV (40% MM; 60% Hero)
for the design, development, production and distribution
of powertrain systems for the two-wheeler market in India
WORLDWIDE
Current as of end of February 2014.
Acquisition finalized in October 2013, FGA now holds 100% of VM.
JV in Sevel Nord (France) ended on 6 February 2013. Starting from that
date, the production of light commercial vehicles for FGA continue under a
Contract Manufacturing Agreement scheme.
(1)
(2)
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Group profile / Relationships with organizations, associations and political parties
GRI-G4 15, 16, EC4, SO6
Relationships with organizations, associations and political parties
Fiat Group believes that responsible corporate citizenship is also reflected through participation in public policy development and advocacy in the communities and countries where the
company does business.
The Group embraces dialogue and engagement with numerous organizations. It regularly participates in round table discussions and working groups at both the national and international
levels to represent the interests of both the company and its many stakeholders.
Relationships with organizations and associations are subject to the Code of Conduct and to the Fiat S.p.A. Business Ethics and Anti-Corruption Guidelines and Conflict of Interest
Guidelines as well as Chrysler Group’s Integrity Code, Policy and Procedures. Any advocacy activities are conducted in strict observance of applicable laws and regulations and fully respect
the Group’s core values and principles of fairness, transparency and integrity. Advocacy activities must be authorized at the appropriate level within each Group company.
Dialogue with associations focuses on issues of an economic nature, such as those related to growth, development and company performance; environmental issues linked to sustainable
mobility; labor policies (flexibility, training, pension systems); and specific needs associated with Fiat Group products, manufacturing and commercial activities (technical, trade and tax
regulation).
In particular, consistent with the Fiat S.p.A. Code of Conduct and Chrysler Group Integrity Code, the Group aims to contribute positively to the future development of regulations and
standards in the automotive industry and in all other sectors related to the mobility of people and goods.
Europe In Europe, the Group belongs to trade associations such as the European Automobile Manufacturers’ Association (ACEA) for passenger cars and commercial vehicles. Moreover, with
respect to the natural gas vehicle (NGV) sector, Fiat is also a member of NGV Italy and NGVA Europe, the industry associations with the mission to foster good relations with Italian, European
and international institutions, and to define and advocate the positions of the European NGV industry.
Fiat Group believes that advocating the use of natural gas in many different ways will help to secure sustainable mobility.
The Group also participates in working groups such as the European Round Table (ERT) for industrial leaders. Through ACEA, which interfaces on a regular basis with the major European
institutions, Fiat S.p.A. has contributed to the definition of regulations and directives on CO2 emissions, technical car standards and international transport and trade policies, in an effort to
ensure that regulations are balanced and sustainable for automakers and EU member states.
North America In North America, the Group works with several industry organizations. As a founding member, Chrysler Group has a long history of working with the Automotive Industry Action Group (AIAG)
and supporting critical projects. This cooperative forum for the auto industry is focused on improving business processes and practices involving trading partners and peers throughout the
supply chain. Projects in corporate responsibility, supply chain management and quality allow both Chrysler Group and the industry to improve the quality and efficiency of daily work.
The Alliance of Automobile Manufacturers is the leading advocacy group for the US auto industry. The Alliance focuses on developing and implementing constructive solutions to public
policy challenges that promote sustainable mobility and benefit society in the areas of environment, energy and motor vehicle safety. The organization provides Chrysler Group and the auto
industry with a united voice on US federal and state regulatory and legislative matters.
The Group is also engaged with organizations that focus on alternative propulsion or fuels, including the US Natural Gas Vehicle Association as well as the Electric Drive Transportation
Association.
Group profile / Relationships with organizations, associations and political parties
Interactive
Brazil In Brazil, Fiat has long been an active member of the Associação Nacional dos Fabricantes de Veículos Automotores (ANFAVEA), among others. This nationwide association unites the
country’s automakers with the purpose of addressing industry and market issues affecting the automotive sector as well as coordinating and protecting the collective interests of the
association’s members.
Other countries In other countries, such dealings are carried out through the employers’ associations that Group companies belong to, such as the Bundesvereinigung der Deutschen Arbeitgeberverbände
(BDA) in Germany, Mouvement des Entreprises de France (MEDEF) in France, Confederación Española de Organizaciones Empresariales del Metal (CONFEMETAL) in Spain, Polish
Confederation of Private Employers – Lewiatan (PKPP Lewiatan) in Poland, Confederação Nacional da Indústria (CNI) in Brazil and Cámara Nacional de la Industria de Transformación
(CANACINTRA) in Mexico.
These associations act to protect the interests of their partners and represent them in social dialogue, both at the national and local levels, with the key political and administrative institutions,
trade unions and other social parties.
In Europe, Business Europe, the confederation of European businesses, representing more than twenty million companies of all sizes through its 41 member federations from 35 countries
– is a recognized partner that participates in social dialogue at the European Union level.
Finally, any relationship between Fiat Group and political parties and their representatives or candidates is conducted according to the highest standards of transparency and integrity.
Political contributions by the Group are only allowed where permitted by law and must be authorized at the appropriate level within each Group company. In 2013, no contributions were made
by Fiat Group to political parties. Fiat Group does not have a Political Action Committee (PAC), but employees are free to make personal contributions to political candidates or parties, to the
extent that these contributions do not violate corporate policy. Any political association or financial contribution made by Group employees is considered personal and completely voluntary.
Public funding
Public funding by country
Grants
Loans
of which subsidized loans
of which EIB(1) loans
Fiat Group worldwide
2013
44
973
571
402
2012
81
509
309
200
c
a. 44%Italy
b
European Investment Bank.
(1)
a
b. 52% Brazil
c. 4% Others
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36
Group profile / Corporate Governance / Timeline of Corporate Governance
GRI-G4 34
Corporate Governance
By managing its business in an ethical, transparent and responsible way, Fiat Group’s system of corporate governance creates value for all stakeholders. Fiat S.p.A. has a system of
corporate governance aligned with international best practices and the principles endorsed by the Italian Corporate Governance Code for listed companies (issued in December 2011) with
amendments adopted to address the specific characteristics of the Group. Over time, Fiat S.p.A.’s corporate governance system has been expanded to incorporate a set of values, rules
and procedures that reflect regulatory changes and improvements in corporate governance practices.
2004
Timeline of Corporate Governance
n
1992
n
Publication of the first Fiat S.p.A. Environmental Report
1993
n
Publication of the first Fiat S.p.A. Code of Ethics, replaced
2002
n
in 2003 by the Code of Conduct
that establish disclosure and conduct requirements
for Relevant Persons. These Regulations remained in place
until March 2006, when the European Market Abuse Directive,
which governs such matters, took effect
1997
n
Institution and adoption of Internal Dealing Regulations
Adoption of a system of Values and Policies
Publication of first Annual Report on Corporate
Governance, prepared in accordance with guidelines issued
by Assonime and Emittenti Titoli S.p.A. and endorsed
by Borsa Italiana S.p.A.
n Implementation of an Enterprise Risk Management
process based on the 2004 Enterprise Risk
Management – Integrated Framework of the Committee
of Sponsoring Organizations of the Treadway
Commission (COSO)
n Publication of the first Fiat S.p.A.
1999
2003
2005
n
n
n
Issuance of Whistleblowing Procedures for reporting alleged
n
Approval by Fiat S.p.A. shareholders of requirements for the
Establishment of the Internal Control Committee and
the Nominating and Compensation Committee. In 2007,
the Nominating and Compensation Committee was separated
into the Nominating and Corporate Governance Committee
and the Compensation Committee
Approval of the first Compliance Program (Italian Legislative
Decree 231/2001) which was updated in subsequent years
to reflect developments in legislation and interpretation that
expanded the scope of Italian Legislative Decree 231/2001
to include new categories of crimes
n Approval of Guidelines for the Internal Control System
n Issuance of Guidelines for Significant Transactions
and Transactions with Related Parties
violations of the Code of Conduct
annual assessment
of the independence of members of the Board of Directors
n Approval of the Group Procedure for the Engagement of Audit
Firms aimed at ensuring the independence of the external
auditors
Group profile / Corporate Governance / Timeline of Corporate Governance
2006
n
2008
n
2012
Certification of the System of Internal Control over
Financial Reporting (ICFR) established pursuant to Section
404 of the US Sarbanes-Oxley Act. Although the company
is no longer listed on the New York Stock Exchange (NYSE),
management and Internal Audit have continued their activities
relative to the evaluation and monitoring of the ICFR System.
Those activities also provide support for the attestations
of the Chief Executive Officer and the executive officers
responsible for the preparation of the company’s financial
statements, required under Italian Law 262/2005 since 2007
Creation of the Sustainability Unit and publication of the first
Sustainability Plan
n
2010
n
Formulation of Group Guidelines on Conflicts of Interest, Data
n
Dissemination of Fiat S.p.A. Code of Conduct updated to
Privacy, ICT Assets and of the Green Logistics Principles
include references to all Group guidelines
Approval of Procedures for Transactions with Related Parties
n Review of the internal Business Ethics Audit system to include
n
additional sustainability-related elements in line with the Code
of Conduct
n Update of the Enterprise Risk Management model and revision
of risk map
2009
2011
n
n
n
n
n
(1)
(2)
Assignment of responsibility for sustainability issues
to the Nominating and Corporate Governance Committee,
which thus became the Nominating, Corporate Governance
and Sustainability Committee
Revision of the Code of Conduct to incorporate additional
principles of sustainability
Formulation of Group Guidelines on the Environment, Health
and Safety, Business Ethics and Anti-Corruption, Sustainability
for Suppliers, Human Capital Management, Human Rights
and Investments in Local Communities
Update of the Enterprise Risk Management model to include
additional risk factors related to climate change
Interactive
Formation of a new Group Executive Council(1) (GEC) following
acquisition of majority ownership of Chrysler Group, consistent
with the objective of enhancing operational integration
between Fiat(2) and Chrysler Group. The GEC consists
of members from both organizations and is the highest
executive decision-making body, supporting the CEO
in operational decisions
n Integration of all Fiat standard audits with ethical issue
assessments regarding human rights, business ethics, conflict
of interest, corruption, and discrimination issues
n Fiat Compliance Program pursuant to Italian Legislative
Decree 231/2001 updated to include the sensitive processes
for the prevention of environmental crimes
n Publication and distribution of updated Chrysler Group
Standards of Conduct, including references to environmental
stewardship, health and safety
n Publication of Chrysler Group’s first Sustainability Report
Introduction of an attendance recommendation in the 2012
Annual Report on Corporate Governance according
to which Directors are expected to prepare themselves
for and to attend all Board meetings, the Annual General
Meeting of Shareholders and the meetings of the Committees
on which they serve, with the understanding that on occasion
a Director may be unable to attend a meeting
n Inclusion of women for more than 20% of Fiat S.p.A. Board
of Directors
n Publication of the Fiat S.p.A. 2011 Sustainability Report,
marking the first ever joint report by Fiat(2) and Chrysler Group
on shared goals and combined results of sustainability
initiatives
2013
Human rights, already included in Code of Conduct, risk
assessment regarding child labor, young workers, labor
practices, forced labor, non-discrimination, conditions
of employment, security and supply chain management
implemented as part of the Fiat S.p.A. standard audit process
in place in EMEA, LATAM and APAC to ensure coverage
of due diligence requirements of the UN Ruggie Framework
Guiding Principles
n New Anti-Corruption Policy approved for Chrysler Group,
which updates and consolidates the Company’s
anti-corruption rules and procedures
n Formulation of Group Guidelines on Stakeholder Engagement
n
In July 2011, Fiat S.p.A. formed a management committee, known as the Group Executive Council, or GEC, to oversee and enhance the operational integration of all Fiat affiliates, including Chrysler Group. Nevertheless, the two companies remain distinct legal
entities with separate governance. The GEC cannot contractually bind Chrysler Group, and recommendations made by the GEC to Chrysler Group, including transactions with Fiat companies, are subject to Chrysler Group’s governance procedures.
Refers to Fiat Group excluding Chrysler Group.
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Group profile / Corporate Governance / Integration of economic, social and environmental choices
GRI-G4 34, 38, 39, 40, 41, 44
Integration of economic, social and environmental choices
The Group’s governance supports the Group’s mission to grow and create value by supplying innovative products and services for maximum customer satisfaction with due respect to the
legitimate interests of all categories of stakeholders. The Group’s governance structure consists of a management and control system and general meetings of shareholders. In addition, as
required by law, the accounts are reviewed by independent auditors.
The system of management and control adopted by Fiat is based on a Board of Directors and a Board of Statutory Auditors. Within that structure, the Board of Directors – which is
responsible for management and, both directly and through committees assigned propositive and advisory functions, ensuring that controls to adequately monitor company performance
are in place – is supported by the Board of Statutory Auditors that has an independent role and powers and is composed of individuals who meet the requirements of professionalism,
integrity and independence prescribed by law and the By-laws.
The Board of Directors is vested with the broadest powers for the ordinary and extraordinary management of the Company. It guides the Group’s activities through definition of a model of
delegation and the direct delegation and revocation of powers, as well as review, approval and continuous monitoring of: the strategic, industrial, and financial plans formulated by directors
with executive powers; the organizational structure of the Group; transactions having a material impact on the earnings and financial position of the Group; transactions in which the
executive directors have a conflict of interest; and, transactions with related parties that are subject to its approval pursuant to the relevant procedures.
Based on the recommendations of the Internal Control and Risk Committee, the Board also sets guidelines for the system of internal control and risk management aimed at identifying,
measuring, managing and monitoring the principal risks to which the Company and its subsidiaries are exposed, determining the level of acceptable risk consistent with its strategic
objectives. The Board of Directors is also responsible for: evaluating the adequacy of the organizational, administrative, and accounting structure; the system of risk management and internal
control; and the general performance of the Group on the basis of reports from the executive directors, as well as for supervising effective compliance with the administrative and accounting
procedures and the adequacy of the powers and resources attributed to the manager responsible for the Company’s financial reporting.
The Board of Statutory Auditors is responsible for supervising compliance with law and the By-laws, respect of the principles of proper management and, in particular, the adequacy of the
internal control and risk management system and the organizational, administrative, and accounting structure of the Company and its effective functioning, in addition to supervising effective
implementation of the rules of corporate governance to which the Company adheres. It is also the role of the Statutory Auditors to make recommendations to shareholders in relation to the
independent auditors’ appointment, removal and compensation.
General meetings are the mechanism through which all shareholders are represented. At ordinary general meetings, shareholders vote on approval of the annual financial statements,
appointment and dismissal of members of the Board of Directors, appointment of members of the Board of Statutory Auditors and its Chairman, compensation of the Directors and Statutory
Auditors, engagement of the independent auditors, and actions relating to the obligations of the Directors and Statutory Auditors. At extraordinary general meetings, shareholders vote on
amendments to the By-laws and transactions of an extraordinary nature such as capital increases, mergers and demergers, except where decision-making authority is attributed to the
Board of Directors under Article 15 of the By-laws, as indicated above. As required under Article 123-ter of Legislative Decree 58/98, the Compensation Policy, which forms the first section
of the Compensation Report, is submitted to the non-binding vote of shareholders.
In 1999, the Board of Directors established following commitees: the Internal Control Committee and the Nominating and Compensation Committee.
The roles and requirements of these committees are constantly updated to reflect current best practice in corporate governance.
In 2007, as part of the continuous review of the system of corporate governance and to better align itself with best practice, the Board passed a resolution to split the Nominating and
Compensation Committee into the Compensation Committee and the Nominating and Corporate Governance Committee.
In recognition of the importance of integrating economic choices with those of a social and environmental nature, in 2009 Fiat S.p.A. assigned the Nominating and Corporate
Governance Committee the further responsibility of evaluating proposals related to strategic guidelines on sustainability-related issues and for reviewing the annual Sustainability Report,
changed its name to Nominating, Corporate Governance and Sustainability Committee.
GRI-G4 38, 39, 40
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The Committee is composed of the following three directors, two of whom are independent: John Elkann (Chairman), Joyce Victoria Bigio and Patience Wheatcroft.
The governance structure demonstrates the important role attributed to management of sustainability topics across the business: at Fiat Group, each employee and every organization plays
a role in helping the company continue to follow the path of continuous improvement and long term commitments which are at the core of our sustainability model.
Composition of highest governance bodies and its committees For a description of composition of the highest governance body and its committees please see the table provided in the 2014 Annual Report of Corporate Governance at page 17, 19, 2
and 23.
Executive powers of the Chairman The Chairman of the Board of Directors, John Elkann is an executive. The model for delegation of powers, which is described in detail in this Report, is based on the fact that the Chairman
and Chief Executive Officer have the same powers. In practice, the Chairman provides the coordination and strategic direction for the activities of the Board of Directors, while the Chief
Executive Officer is responsible for the operational management of the Group. This division of responsibilities complies with the Code principle, which states that in principle, the Chairman
should not be responsible for operational management of the Company. Accordingly, Fiat has not deemed it necessary to appoint a lead independent director.
Qualification and expertise of Directors With regard to the nomination and selection process of the Board of Director and its committees, criteria considered include independence, expertise and precedent experiences.
The Board of Directors is currently made up of nine members, four of whom are independent. The current number also allows for the Board to continue to have an adequate mix of technical
abilities, professional background and experience, both general and specific, gained in an international environment and pertaining to the dynamics of the macro-economy and globalization
of markets, more generally, as well as the industrial and financial sectors, more specifically. It also allows for a mix of skills and experience that is adequate in terms of the size of the Company
and the Group, as well as the complexity and specific characteristics of the sectors in which the Group operates and the geographic distribution of its businesses.
It was the Board’s view that a reduction in the number of members was appropriate in consideration of the Group’s increased concentration in the automobiles business, and would also
facilitate more effective execution of the Board’s activities, while at the same time ensuring adequate diversity of membership on the Committees. The Board also emphasized the benefits
of gender diversity in its membership.
The Internal Control and Risk Committee established by the Board of Directors of Fiat S.p.A. (the Committee) is composed of at least three independent directors with adequate
experience in accounting and financial matters or risk management. The Committee’s members and Chairman are appointed by the Board of Directors, which may also dismiss them.
If the Board has not already done so, the Committee may appoint a secretary that need not be one of its members.
The Nominating, Corporate Governance and Sustainability Committee is composed of at least three Directors, the majority of whom independent. The Board of Directors appoints
the members of the Committee and its Chairman. The Committee may name a secretary that need not be one of its members; the Secretary draws up the minutes of the meetings.
The Compensation Committee is composed of three non-executive directors, the majority of whom are independent. The Committee’s members and Chairman are appointed by the
Board of Directors. If the Board has not already done so, the Committee may appoint a secretary that need not be one of its members. The Secretary is responsible for preparing minutes
of the meetings.
Relations with shareholders is an essential element of the Group governance structure. The Company has created dedicated entities to establish and maintain a constant dialog with the
market for the purpose of maintaining the confidence of investors and improving their understanding of the Company and its activities.
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40
GRI-G4 40, 41
Throughout the year, the Investor Relations team maintains constant contact with financial analysts, individual shareholders and institutional investors, as well as organizing conference
calls and public presentations to present financial results, and participating in industry conferences. Information presented and discussed on those occasions is also published on the
Company’s website (www.fiatspa.com). Corporate information, regular and extraordinary financial information, the corporate calendar, and corporate governance documentation are also
available on the website (in both Italian and English). Shareholders can request general information or information on specific transactions by phone (toll free in Italy: 800-804027) or by
e-mail ([email protected] and [email protected]).
Fiat General Meeting, during which every year Financial as well as Sustainability performances are presented to the public, represent an important and traditional occasion for communicating
with shareholders.
Process to avoid conflict of interest The Group is aware of the corrosive effects that corruption has on societies, and its impact undermining democracy and the rule of law.
All business relationships are expected to be established and maintained with integrity and loyalty and without any conflict of interest between business and personal affairs. The Fiat Group,
its directors, officers, other employees and others to whom the Code is addressed are committed to the highest standards of integrity, honesty and fairness in all internal and external
affairs, in compliance with national and international anti-corruption laws, with particular reference to the OECD Convention on Combating Bribery of Foreign Public Officials in International
Business Transactions, the OCSE Guidelines and Foreign Corrupt Practices Act (“FCPA”). The Group will not tolerate any kind of bribery (paying or offering to pay to obtain an improper
business advantage) to public officials or representatives of international organizations or any other party connected with a public official and to private entities/individuals or which is
otherwise prohibited by applicable laws.
To ensure the highest standards are met, principles of fairness, transparency and integrity have been included in detail in the relevant guidelines (Business Ethics and Anti-Corruption
Guidelines and Conflict of Interest Guidelines) and, together with the requirements of local law, they are to be adhered to by all employees, agents, suppliers and other individuals and
entities that have a business relationship with the Group.
The Fiat S.p.A. Guidelines specifically address:
the prohibition of cash gifts to public officials, politicians or military personnel aimed at obtaining economic advantages for Group companies
n the need to include clauses in outsourcing and joint venture agreements that specify the consequences of violating anti-corruption laws
n the prohibition of gifts and benefits-in-kind for the purpose of gaining preferential treatment
n the possibility of donations for charitable purposes only and the requirement that contributions to political parties must be approved by top management
n full compliance with laws applicable to the export of goods and services.
n
For what concern the highest governance bodies highest standard of transparency and strict criteria are followed:
n as some directors also hold positions at other listed companies or companies of significant interest. Excluding the positions held by the executive directors within Fiat Group, the most
significant cross-board membership are reported to the public in the Annual Report on Corporate Governance
n an adequate number of independent directors is an essential element in protecting the interests of shareholders, particularly minority shareholders, and third parties, assuring that potential
conflicts between the interests of the Company and those of the controlling shareholder are assessed impartially. The contribution of independent directors is also fundamental to the
composition and proper functioning of committees tasked with undertaking ex ante evaluations of risk and, where identified, formulating proposals to address that risk. Those committees
represent one of the most effective means of managing potential conflicts of interest
GRI-G4 41, 44
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independent criteria: The Board of Directors is currently made up of nine members, four of whom are independent. On 4 April 2012, Shareholders elected a new Board of Directors
with a significant representation of independent directors. In addition to the two independent directors required by law and in consideration of the recommendation of the Corporate
Governance Code that at least one-third of directors be independent, Shareholders elected a total of four directors who met the requirements of independence adopted for previous
elections
n related party disclosure: With adoption of the procedures for transactions with related parties pursuant to Consob Regulation 17221 of 12 March 2010 (as amended) the Compensation
Committee was assigned responsibility, for matters relating to compensation only, for reviewing transactions with related parties. Accordingly, the Committee is required to give an opinion
on the substantial and procedural fairness of transactions with related parties of particular significance, as defined in those procedures. To enable it to perform that role, the Committee
is provided timely and adequate information on transactions during the evaluation phase, and, for significant transactions, it has the authority to communicate its views to the individuals
responsible for conducting negotiations. During the year, the Committee provides the Boards of Directors and Statutory Auditors a quarterly report on transactions with related parties.
n
Evaluation of the Board of Directors’ performance The Committee also met on 26 February 2014 to examine the Corporate Governance and Sustainability Reports for 2013, as well as conducting the annual evaluation of the activities of
the Board and its Committees for 2013 through a self-evaluation questionnaire. The positive results of that evaluation were reported to the Board during the meeting of 27 February 2014.
All non-executive directors participated in the self-evaluation process, which examined the size, composition, mix of skills and experience, and functioning of the Board. There was also a
comprehensive review of the various activities of the Committees.
The analysis focused on the most material aspects relating to the Board of Directors as a collective body, individual Directors and their performance and the Committees. In particular
the analysis evaluated: (i) the structure, composition, role, functioning and responsibilities of the Board and each of its Committees; (ii) procedures for board and committee meetings,
management of information and decision-making processes; (iii) the effectiveness, efficiency and completeness of the information provided to the Board on the work of the Committees;
(iv) the relationship between the Board, the Committees and the Statutory Auditors; (v) an evaluation of the performance of the various boards and committees; and, (vi) the value of the
self-evaluation process itself. Directors were also given the opportunity to comment on issues of a general nature. The overall conclusion of the evaluation process was very positive in
terms of the e ffective and efficient functioning of the Board of Directors and its Committees. One of the most positive aspects to emerge from the self-evaluation process was the quality
and depth of discussion, as well as the level of interaction and transparency. In particular, it was noted that the cohesive atmosphere between the executive and non-executive directors
during meetings, as observed in previous self-assessments, was conducive to open and constructive debate, with due respect given to the contribution of each director leading to decisions
typically being reached with a broad consensus.
The quality and completeness of documents and information provided to directors and the timeliness with which they were made available was considered more than satisfactory.
Comparable results were found with reference to the work of the Committees with particular appreciation for the level of access to management made available to the directors. Identified
areas for improvement related substantially to opportunities for more in-depth examination of issues relative to the competitive environment and, when possible, faster access to information.
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42
Group profile / Labor practices and Human Rights
GRI-G4 DMA, 13, HR1, HR2, HR3, HR4, HR5, HR6, HR7, HR12, LA16, EN34, SO1, SO3, SO4, SO11
Labor practices and Human Rights
The Group is committed to the highest business integrity and ethical standards. Key components of this commitment are embedded in Group codes of conduct. Fiat S.p.A. and Chrysler
Group are aligned in terms of the principles and contents of their codes, following international best practices in the respect of local legal requirements.
The Fiat S.p.A. Code of Conduct represents a set of values recognized, adhered to and promoted by the Group, which believes that conduct based on the principles of transparency,
integrity and fairness is an important driver of social and economic development. The Code of Conduct is a pillar of the governance system which regulates the decision-making processes
and operating approach of the Group and its employees in the interest of stakeholders.
The Code of Conduct expands on aspects of conduct related to the economic, social and environmental dimensions, underscoring the importance of dialogue with stakeholders.
Explicit reference is made to the United Nations’ Universal Declaration of Human Rights, the principal Conventions of the International Labour Organization (ILO), the OECD
Guidelines for Multinational Enterprises and the US Foreign Corrupt Practices Act (FCPA). Specific Guidelines, which are an integral part of the Code of Conduct, were created
concerning the following aspects: Environment, Health and Safety, Business Ethics and Anti-Corruption, Sustainability for Suppliers, Human Capital Management, Human Rights, Conflict
of Interest, Community Investment, Data Privacy, ICT Assets and Stakeholder Engagement.
The document, available in ten languages (Italian, English, French, German, Spanish, Polish, Dutch, Portuguese, Chinese and Japanese), may be consulted and downloaded from the
Group’s internet and intranet sites and is posted on company boards where employees have direct access. Copies can also be obtained from Human Resources, the Legal department or
the Head of Internal Audit. The Code applies to the members of the Fiat S.p.A. Board of Directors, to all employees of Group companies and to all other individuals or companies that act in
the name of, and on behalf of, one or more Group companies. Diffusion of the Code follows different steps: Corporate Officers must sign a binding document (1) expressing the commitment
to abide by all of its rules; Managers must sign a letter declaring awareness and acceptance of its content; other employees receive a copy of the Code during the hiring process and their
employment confirmation letter makes reference to the Code.
Chrysler Group has an Integrity Code available in several languages and Standards of Conduct that are applicable to all employees. Together with the Chrysler Corporate Policies and
Procedures, these documents represent the company’s firm commitment to high business and ethical standards and contribute to creating a corporate culture that is characterized by
integrity, transparency and accountability. The Integrity Code details rules of conduct for employees, including dealing with third parties such as suppliers, customers, government officials
and business partners, as well as conflict of interest and internal control issues.
The Corporate Policies are a collection of approximately 50 company statements that support the Integrity Code and cover topics such as Discrimination and Harassment Prevention;
Workplace Violence Prevention; Employee Health and Safety; and Environmental Protection; among others.
The Standards of Conduct describe actions or behavior which violate Chrysler Group’s standards and which may result in disciplinary actions. In 2013, a new Anti-Corruption Policy was
approved for Chrysler Group, which updates and consolidates the company’s anti-corruption rules and procedures.
The Integrity Code, Corporate Policies and Standards of Conduct can be found on the online employee portal.
(1)
For reference, see Appendix C of the Code of Conduct.
Group profile / Labor practices and Human Rights
Interactive
The Group disseminates the principles established in these documents and the values of good governance to all employees. In 2013, a total of 43,630 Group employees worldwide were
involved in training courses focused on Corporate Governance (including code of conduct), Anti-corruption and Human Rights (including non discrimination) topics. Among these training
initiatives, each year all salaried Chrysler Group employees complete the Ethics and Integrity Code web-based awareness training and acknowledge they have read and understood the
Code, and that they know whom to contact for questions or concerns.
The Group’s commitment to the respect for human rights applies across the entire organization without exception; in fact, security personnel are also trained on this topic. In 2013,
435 security personnel employed directly by Fiat Group (2) were trained in policies and procedures concerning aspects of human rights. Third party organizations which provide this service
to the Group are also expected to adhere to these principles by signing contract clauses.
Aware of the importance attributed also by external stakeholders to the respect for human rights, business integrity and ethical standards, the Group extends its commitment to the
promotion of the adoption of the Code as a best practice standard to the business conduct of partners, suppliers, consultants, dealers and others with whom it has a long-term relationship.
In fact, Group contracts worldwide include specific clauses relating to the recognition of, and adherence to, the principles underlying the Code of Conduct and related guidelines, as
well as compliance with local laws and regulations, particularly those related to anti-corruption, money laundering, terrorism and other crimes constituting liability for legal persons. In Latin
America, for example, a dedicated website (3) was created to support access for all stakeholders to the Code of Conduct and to serve as an extra channel for receiving complaints,
including from third parties such as suppliers and clients. Similarly, to enhance the channels for receiving alleged violations of the Code of Conduct, Fiat S.p.A. created a dedicated email
address directed to the Fiat S.p.A. Chief Audit Executive.(4) At Chrysler Group there are dedicated hot lines and dedicated email address (5) available to report anonymously alleged violations.
In addition, supplier self-assessment questionnaires and field audits are regularly conducted by internal Supplier Quality Engineers and/or external organizations to verify the levels of
adherence to the sustainability standards required by the Group. Suppliers are required to provide references on how they manage and prevent all forms of discrimination, harassment, child
labor and forced labor in the workplace, as well as any sort of bribery and corruption (public/private), and on how they protect human rights, including freedom to associate.
Under the Fiat S.p.A. Code of Conduct, Fiat Group “does not employ any form of forced, mandatory or child labor, namely it does not employ people younger than the permissible age for
working established in the legislation of the place in which the work is carried out and, in any case, younger than 15, unless an exception is expressly provided by international conventions
and by local legislation.” The annual survey of child labor at Group companies covered more than 99% of employees (6) worldwide, and showed that no incidents of child labor or forced and
compulsory labor took place in any of the companies mapped, including those located in countries that have not ratified ILO Conventions on these issues.
The survey also confirmed that no Group company employs individuals under the minimum working age set by local legislation, apprentices under the statutory minimum age, or minors
under 15 years of age in countries where the minimum age is lower.
To address the potential risk of child labor, the Group has initiated several projects in areas where we have operations. Projects aimed at advocating inclusion and promoting completion of
schooling typically takes the form of job training courses in several countries.
The mapped population refers to security personnel employed at Group companies in Argentina, Brazil, Italy, Mexico, Poland, Serbia and Venezuela.
http://www.eticagrupofiat.com.br
[email protected]
(5)
[email protected]
(6)
Including Sevel Italia.
(2)
(3)
(4)
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“
Group profile / Labor practices and Human Rights / Human Rights Risks Assessment
GRI-G4 DMA, HR1, HR2, HR3, HR4, HR5, HR6, HR7, SO1, SO3, SO4
Brazil The Group must always be aware
of social needs such as working
conditions along the entire value chain
Stakeholder Engagement Event, Belo Horizonte (BR)
”
In Brazil, for example, Group companies participate in the programs organized by the National Industrial
Apprenticeship Service (SENAI) and other local institutions. Throughout the year the “Formare” program
saw Magneti Marelli engaged in efforts to support four schools that provide vocational training to young
people as well as an internship in the Amparo, Hortolândia, Maua and Lavras plants. Also in Brazil,
since 2006 Teksid do Brasil has been a partner in the government project “Filhote” geared towards
children and adolescents from the Betim region. The project offers a chance to attend laboratories in:
carpentry, weaving, computer science, literature and circus performance.
Mexico In Mexico, in collaboration with the local institutions, the Fundación Chrysler I.A.P offers troubled youths a chance to continue their schooling and develop further by granting scholarships.
India In India, Fiat India Automobiles Ltd (a 50-50 joint venture between Fiat Group Automobiles S.p.A. and Tata Motors Ltd), in collaboration with “Don Bosco Vyawasaik Prashikshan Kendra
(DBVPK)” (Pune), started the Program called “Diksha” aimed at providing educational paths and technical training for the youth of the country with the primary objective of offering a
decent living to orphans, disadvantaged and poor students who otherwise may be deprived of good educational facilities. The company has financially supported the establishment of the
skill training center “Fiat & Don Bosco Experiential Skill Training Center” at Chinchwad (Pune) to offer vocational training to students interested in a career in manufacturing. The program,
certified by Fiat and Don Bosco, is recognized as equivalent to all the courses of the Government of India and is licensed by the National Council for Vocational Training – New Delhi. During
2012-2013, 349 students participated in the program and more than of 90% of qualified students are now employed in the automobile sector.
Human Rights Risks Assessment
In 2013 an additional Human Rights risk assessment has been implemented as part of the Fiat S.p.A. standard audit process in place in EMEA, LATAM and APAC to ensure coverage of
due diligence requirements of the UN Ruggie Framework Guiding Principles. The assessment covers the areas of:
n Child labor & young workers
n Forced labor
n Non-discrimination
n Conditions of employment
n Security
n Supply chain management.
Since November 2013, a total of 10 Human Rights risk assessments have been completed for a total of 72 items checked. The focus was on the areas of child labor and young workers,
forced labor, non-discrimination, conditions of employment, security and supply chain management. No issues were noted.
This project will continue in 2014 to cover 100% of Fiat S.p.A. internal audits.
All these efforts demonstrate the continuing Group commitment to respect human rights within and outside its boundaries.
GRI-G4 HR9, SO5
Group profile / Labor practices and Human Rights / Monitoring Code of Conduct violations
Interactive
Monitoring Code of Conduct violations
Violations of the Fiat S.p.A. Code of Conduct and Chrysler Group Integrity Code are essentially identified through:
n periodic activities carried out by Internal Audit & Compliance
n reports received in accordance with the Whistleblowing Procedures
n reviews of standard operating procedures.
In 2013, Fiat S.p.A. Internal Audit & Compliance systematically verified the level of knowledge and the respect of the Code of Conduct throughout Fiat Group companies (excluding Chrysler
Group). Operational audits which were expanded in 2012 to include assessment of ethical issues with particular reference to human rights, business ethics, conflict of interest, corruption
and discrimination issues, have been further integrated with the Human Rights risk assessment based on the UN Ruggie Framework Guiding Principles.
During 2013, 264 cases of actual violations – received both internally and externally – of the Fiat S.p.A. Code of Conduct were reported. As a consequence of Code violations,
264 employees were subject to disciplinary actions, while 6 reports received through the
Violations of Fiat S.p.A. Code of Conduct
Fiat Group worldwide(1)
Whistleblowing Procedure led to the introduction of improvements to the Internal Control
System, such as the review of pertinent policies and procedures.
2013
2012
2011
Actual violations revealed during standard operating procedures,
For all Code violations, the disciplinary measures taken were commensurate with
periodic activities carried out by Internal Audit and checks
the seriousness of the case and complied with local legislation. The relevant corporate
forming part of standard operating procedures
246
251
167
departments were notified of the violations, irrespective of whether criminal charges were
Alleged violations received (internally and externally) under
made by the authorities.
86
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Whistleblowing Procedure
The principal types of violation verified in 2013 included inappropriate conduct by employees
14
of which verified actual violations
2
2
such as absenteeism, inadequate and unethical behavior and misuse of company assets.
4
Verified actual violations from previous years
3
2
Cases of violations of the Code of Conduct involving discrimination were not assessed.
Total actual violations
264
256
171
(1)
Chrysler Group not included in the scope.
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Group profile / Labor practices and Human Rights / Fighting corruption
Fighting corruption
The Group is aware of the corrosive effects corruption has on societies, and its impact undermining democracy and the rule of law. To ensure the highest standards are met, principles of
fairness, transparency and integrity have been included in detail in the relevant guidelines (Business Ethics and Anti-Corruption Guidelines and Conflict of Interest Guidelines) and, together
with the requirements of local law, they are to be adhered to by all employees, agents, suppliers and other individuals and entities that have a business relationship with the Group. The
Fiat S.p.A. Guidelines specifically address:
n the prohibition of gifts to public officials, politicians or military personnel aimed at obtaining economic advantages for Group companies
n the need to include clauses in outsourcing and joint venture agreements that specify the consequences of violating anti-corruption laws
n the prohibition of gifts and benefits-in-kind for the purpose of gaining preferential treatment
n the possibility of donations for charitable purposes only and the requirement that contributions to political parties must be approved by top management
n full compliance with laws applicable to the export of goods and services.
Compliance with business ethics standards, including those that relate to corruption, is checked through regular audits conducted by the Fiat S.p.A. Internal Audit & Compliance department
based on the annual risk assessment. Over a five-year period, the audit cycle will cover all consolidated Group entities (excluding Chrysler Group).
All Chrysler Group functional areas are subject to analysis on an ongoing basis to detect risks related to corruption both through audits of the area itself and the management process
governing each area. In addition, the Legal Compliance Questionnaire (LCQ) is distributed annually to the operating areas as required by Chrysler Group’s Legal Compliance and Ethics
Program, managed by the Office of the General Counsel (OGC). It contains 39 general questions and up to 150 area-specific questions to ensure full awareness and compliance with
Chrysler Group’s anti-corruption policies and procedures. In the event an issue is identified, the OGC will work with the Business Practices Office to investigate and resolve the issue.
In order to avoid conflicts of interest, the company’s Operating Agreement provides that Chrysler Group cannot enter into any new agreement with its members or any of their affiliates
that involves aggregate payments in excess of $25 million without approval of the Chrysler Group Board of Directors. Additionally, Chrysler Group has a written Conflict of Interest policy
prohibiting officers, employees and their family members from personally participating in transactions that conflict with business interests or that might influence employees’ business
judgment. The Chrysler Group Business Practices Office interprets the policy, issues advisories, oversees investigations and reports non compliance to the Chrysler Group Board of
Directors’ Audit Committee.
GRI-G4 EN29, SO7, SO8, PR2, PR4, PR7, PR9
Group profile / Labor practices and Human Rights / Compliance
Interactive
Compliance
A summary is provided below of the final court judgments, final arbitration awards and other final orders deemed significant because of their value and for which a final decision was issued
in 2013 against companies of the Fiat Group (Final Judgments).
There were no significant Final Judgments relating to breaches of environmental legislation, violation of rights of indigenous people, unfair competition, violations of antitrust legislation,
non-compliance with laws and regulations, violations concerning health and safety impact of products and services, product and service information, privacy, advertising and marketing or
product and services provision.
Final Judgments were however issued against companies within the Fiat Group in relation to:
n two cases of contractual liability (former dealers’ claims for compensation for loss of clientele for approx. €0.3 mln in total value), and
n a dispute with an insurance company covering a supplier’s liability towards the Group, which the insurance company initially paid to the Group and then claimed back in court (for approx.
€0.2 mln).
There were also certain matters in which non-Final Judgments against companies in the Fiat Group were issued. Such matters are still pending and their final outcome remains uncertain.
They include:
n two claims by bankruptcy proceedings to obtain payment of a disputed receivable and to claw back certain payments (for a total amount of approx. €1.7 mln), and
n a contractual liability case regarding a claim by the purchaser of certain real estate formerly owned by the Group to obtain reimbursement of costs and expenses incurred in connection
with the property (for approx. €0.4 mln).
Lastly, final rulings delivered in 2013 related to labor and social security litigations against Group companies involved a total payment corresponding to 0.16% of labor costs for the year.
The year’s litigations were concentrated mostly in Brazil, where final rulings, mainly related to the interpretation of regulations, represented 94.8% of all final judgments, equal to 88.2% of
the total payout. However, within the specific context of the country, these final judgments were not exceptional either in nature or in number.
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Group profile / Risk Management and opportunities / Enterprise Risk Management
GRI-G4 2, 14, 45, 46, 47, 58, EC2, EC7, EC8, HR9, PR1, SO5
Risk Management and opportunities
Enterprise Risk Management
Fiat Group adopted an Enterprise Risk Management (ERM) model in 2004 to provide greater transparency and disclosure of business risks as well as respond to regulatory directives
requiring companies to adopt suitable corporate governance models. Chrysler Group subsequently adopted the Fiat ERM methodology in 2012. In the first half of 2013, a review of the
ERM process was launched based on a pilot project carried out at Chrysler Group. As a result of this review, the ERM process was revised to focus on making the analysis of potential
risks dynamic (periodic evaluation with follow-up of the main risks and periodic monitoring of mitigating actions identified and/or implemented), predictive (prospective risk assessment),
and cross-functional (risk assessment with close involvement of business areas). With this in mind, ERM Coordinators were appointed in the Sector/Region Finance functions and they
are supported by one or more business unit leaders to prepare, coordinate and hold meetings with key company functions. These meetings are cross-functional and open to the various
Business Unit managers to facilitate the discussion, identification and evaluation of potential risks, as well as the development and definition of risk mitigation plans.
Adapted to the specific needs of the Group from the framework established by The Committee of Sponsoring Organizations of the Treadway Commission (COSO), the model was
updated in 2010 to reflect experience acquired over the years and include best practices that emerged from a comparison with other industrial firms. In particular, risk drivers were
remapped into new, refined or reformulated clusters to better respond to new requirements or emphasize significant issues (climate change, macroeconomic developments, joint
ventures, etc.). Some 50 risk drivers have been identified, which are further broken down into approximately 85 potential events.
This process, which is aided by a dedicated information system, is based on a bottom-up approach that, beginning with individual business units, enables generation of a summary
report for each sector/region, including any containment measures to be implemented. Sector Chief Executive Officers and Chief Financial Officers/Region Chief Operating Officers
are required to approve these reports, while the Group Chief Financial Officer is responsible for their coordination and consolidation into the Group Risk Report. The Group Risk
Report is submitted annually to the Internal Control and Risk Committee, which assists the Fiat S.p.A. Board of Directors in verifying the adequacy and effective functioning of the
Internal Control System.
Group profile / Risk Management and opportunities / Enterprise Risk Management
The 2013 assessment revealed various types of risk related to climate change, which include
risks concerning regulations, consumer preferences for eco-sustainable products, reputational
impact on the community where the Group operates and increase in energy costs. As in the
past, the Group has demonstrated continuous appropriate management of these risks through
the most effective tools, gearing research and investments toward products with an everdecreasing environmental impact, promoting low emission vehicles, improving sales force skills
to convey the benefits of the ecological features of the Group’s vehicles to customers, adopting
efficiency projects for reducing plant energy consumption and using renewable energy sources.
Certain specific risks (1) are monitored by the appropriate organizational entities. For example,
risks associated with the potential impact of the Group’s industrial activities on the environment
and climate are monitored and proactively managed by the Environment, Health and Safety
(EHS) function for each company in accordance with the Environment pillar of World Class
Manufacturing. Plant managers are responsible for the operational aspects, and their activity is
coordinated centrally by the Group EHS structures.
In addition, Fiat’s Risk Management S.p.A. and Chrysler Group’s Risk and Insurance Management
Department are responsible for control of pure risks (e.g., fires, explosions, natural disasters) and
insurance coverage for those risks. Both organizations play a central role in the management of
events that could potentially impact the continuity of operations or the integrity of physical assets
(in particular, the Group’s plants).
Interactive
Risk Events
Is risk event applicable to context
being analyzed?
NO
Analysis
Complete
NO
Analysis
Complete
YES
Analysis
Complete
YES
Modeling of impact from occurrence
of event and frequency of occurrence
Placement of event on map based
on Impact (I) and Vulnerability
of occurrence (V)
Does (I) x (V) exceed
significance/acceptability threshold?
Analysis of monitoring
and risk response measures in place
Level of monitoring adequate?
Residual exposure acceptable?
NO
Determination of “target” exposure
and identification of mitigating
strategies/actions to be implemented
For additional information on the management of financial risks, please refer to the 2013 Fiat S.p.A. Annual Report.
(1)
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Group profile / Risk Management and opportunities / Management of pure risk
GRI-G4 2, 14, 45, 46, 47, 58, EC2, EC7, EC8, HR9, PR1, SO5
Management of pure risk (1)
The Group believes in preventing losses that could result in property damage leading to an interruption in business. The Fiat Risk Management S.p.A. and Chrysler Group Risk and Insurance
Management Departments address all stages of pure risk management including risk identification, analysis and treatment (including loss prevention).
The four pillars of risk management are:
n preventing accidents or limiting their effect
n adopting the highest standards for the prevention of property loss
n minimizing the cost of risk by optimizing loss prevention, investments, self-insurance and risk transfer programs
n centralizing and consolidating the relationships with global insurance markets.
The entire risk management process is executed with maximum transparency and the highest level of expertise, supported by consulting companies specializing in industrial risk that,
through field audits, ensure an in-depth, continuous and impartial assessment of risk across the entire Group. In 2013, 123 sites were inspected (covering approximately 98% of industrial
activities at Chrysler Group and 64% in the rest of the Group) and 519 new projects were tracked ensuring that the highest level of international loss prevention standards are followed. During
the year, the Group’s investment in loss prevention and mitigation measures totaled around euro 26.1 million.(2) The e19.1 million of Fiat targeted investments reduced loss expectancies by
approximately e2.37 billion resulting in a Global Efficiency Index (GEI) of 0.81(3) in line with the highest international standards.
The Fiat and Chrysler Group risk management functions work to develop forward-looking, risk engineering approaches and solutions. In particular, this is demonstrated by the development
of specific projects that highlight the contribution of risk management in addressing climate change issues. Current Group projects include:
n a new approach to insurable environmental risks
n a Visual Command Center(4)
n earthquake risk re-engineering
n climate change impact analysis
n carbon emissions avoidance through effective loss prevention
n prioritization of risk treatments using a standard loss expectancy evaluation process
n Business Continuity Management.
The Group risk management function provides a critical, real-time contribution to the Group’s sustainable development and competitive advantage in a global, fast-changing competitive
business environment, with a focus on:
n refining the existing tools, processes, measurements and modeling of risks to facilitate more complete risk-based business decision analysis and the evaluation of emerging risk-based
opportunities
n integrating and consolidating risk management programs
n developing risk awareness across the organization; and
n creating a cross-functional risk management committee that will periodically review all areas of Fiat and Chrysler enterprise risk management.
Pure risks are risks resulting from natural causes or accidental or malicious acts (fire, explosion, floods, etc.) that may result not only in damage to goods or facilities but also lead to a short- or long-term interruption of operations.
Figures related to the period from 1 July 2012 to 30 June 2013 (insurance year).
Global Efficiency Index for loss mitigation measures (GEI = reduction of expected damage/cost of protection) is recognized as a measure of best practice for industrial risk management.
(4)
A tool that unites data from external sources, enterprise systems and internal devices into a real-time, consolidated view of risk, enabling threat alerts, assessments and action.
(1)
(2)
(3)
Group profile / Risk Management and opportunities / Environmental Insurable Risks
Interactive
Environmental Insurable Risks
New approach to environmental insurable risks
What:
When used:
Fiat Risk Management has developed an innovative risk management methodology
in collaboration with the EHS departments of Group companies, a major international
consultancy and certification firm, and an insurance partner. This methodology enabled
the Group to:
n obtain an objective and quantified knowledge of the insurable environmental exposures
n develop improvements in risk profiles according to the Sectors’ EHS strategy
n understand and clearly communicate priorities and benefits
n effectively inform the insurance market about the loss prevention activities to prevent
and mitigate potential environmental losses
n obtain environmental insurance coverage appropriate to the exposures, the loss
prevention activities carried out and in line with Group strategies
Using this methodology, 69% of Fiat Group total insured value was assessed and
analyzed in 2012-2013.
Outcomes:
Lesson learned:
This extraordinary effort resulted in the development of the first environmental maps for
the Group and its companies. These maps represent a quantified overall level of risk
obtained via a certified self-assessment tool using scientific methodology
These results were presented to the insurance market confirming that Fiat Group
environmental risks are known, well-quantified and properly managed. Results also led
to comprehensive global insurance coverage
To validate the information obtained through self-assessment in 2013, a visit campaign
was launched to a selected number of sites considered representative for the Group in
term of size, occupancy and geographical distribution. The visits were organized by the
central EHS Departments of each Group company and were conducted by specialized
environmental risk engineers of a leading insurance company in the environmental field
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Earthquake risk re-engineering project
What:
When used:
The work group formed by AXA, Naples University, Magneti Marelli and Fiat Risk
Management launched a three-year research project to develop a scientific quantitative
earthquake risk evaluation process. The methodology enabled the Group to:
n efficiently assess
n properly quantify
n proactively manage
n the seismic risks exposing industrial manufacturing sites
During the development of the research project, the approach was defined as multilevel
and quantitative, i.e., a procedure capable of considering different knowledge levels as
an input and providing a quantitative measurement of seismic risk:
n level 1 – relative, mainly for prioritizing purposes
n level 2a – absolute analysis based on existing fragility curves
n level 2b – absolute analysis based on computed fragility curves
Outcomes:
Lesson learned:
The principal output of this procedure was a ranking within the portfolio based on seismic
risk; consequently, a prioritization of structures for decision making and potentially a
more refined analysis of the top ranked facilities
The events which occurred in 2012 in a key Italian industrial area confirmed the importance,
for a global manufacturing organization, of having in place a modern earthquake risk
management methodology
Interactive
Climate change potential impact analysis
What:
When used:
The three main goals of this project, launched to study the potential new risks posed by
climate change, were:
n raise awareness across the whole organization of the potential new risks posed by
climate change
n explain the nature of the risks associated with climate change
n verify that all risk management processes already in place, and the new measures
under development or still to be developed, must consider climate change
The hail project was developed primarily for the finished parking lots but it also has
positive effects for Group plants and other sites. Its goals are:
n widen the period of hail net coverage
n support the parking lot emergency teams delivering weather bulletins and alerts in the
event of a storm forecast
n the rain project aimed to develop a methodology to analyze the potential rain water risk
based on the gap analysis between the design data used at the time of the building
construction, and the current design data function of occupancy and latitude (as per
internationally recognized construction standards)
Outcomes:
Lesson learned:
The hail risk project adopted a weather forecast/alert service which provides information
about snowstorms, rainstorms and hailstorms, as well as long-range forecasts to optimize
the installation and removal of hail protection nets.
The weather alert service has already yielded positive results as demonstrated by the
roughly 1500 vehicles spared (not damaged) during the April 6, 2012 hailstorm that
impacted a parking lot in Turin
The rain risk project allowed:
n the identification of relevant data about the plant’s rain water collecting and removing
network
n the creation of an ad hoc form to collect and report key data
n the development of a methodology to identify and extract the current design data for
the specific occupancy and latitude
n software development to carry out the gap analysis (design data at the time of the
construction data compared with current design data)
n processes to identify treatment priorities considering both the gap and the values at risk
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Product / A comprehensive approach to sustainable mobility
GRI-G4 DMA, 14, EN7, EN27
Product Innovation and Responsibility
The automobile is still today’s most flexible solution to individual mobility needs and among the most popular means of transportation. Fiat Group
manages the need for mobility with responsibility by offering a wide range of vehicles that are sustainable throughout their life cycle and accessible
to a large number of consumers. To this end, the Group invests heavily in research and innovation.
A comprehensive approach to sustainable mobility
The Group’s emphasis on innovation plays a key role in product research and development. The global innovation and product development activities are centrally coordinated by the
Chief Technology Officer (CTO), Powertrain Coordinator, Product Portfolio Management responsible and Design responsible who are members of the Group Executive Council, the Group
decision-making body. In particular the CTO leads the Group Research & Development and is responsible for stimulating opportunities for synergies and technology transfer across the
entire enterprise.
The 1st of January 2014 Fiat S.p.A. announced the acquisition of the remaining equity interests in Chrysler Group LLC, finalizing the global strategic alliance started in 2009. This process of
corporate integration brings major benefits like the sharing of architectures, components, know-how, best practices and tools across the two organizations, which leads to common innovation
programs. The two groups have been able to draw on the core strengths of the other, with the whole being a far stronger, unified enterprise. Fiat’s presence and experience in smaller car
segments combined with Chrysler’s in the medium and larger vehicle segments produces a full range of products competing in diverse market segments. The number of offerings, however, is
not the most important factor, but rather that they are capable of meeting customer expectations in terms of fuel efficiency, safety, quality and affordability. Fiat is recognized for its technological
know-how and commitment to sustainable mobility, as well as for its ability to introduce fuel-efficient powertrain technology, including diesel and compressed natural gas engines. Chrysler
Group brings to the partnership a wealth of experience in larger displacement engines, and has led the development of electric and hybrid vehicles for the Group.
The 78 R&D centers across the Group’s operating regions (EMEA, NAFTA, LATAM and APAC) employ a combined headcount of about 18,700 individuals. The two primary R&D facilities in
EMEA and NAFTA are the Centro Ricerche Fiat (Orbassano, Italy) and the Automotive Research & Development Centre (Windsor, Canada).
Product / A comprehensive approach to sustainable mobility
Interactive
The Global Innovation Process (GIP), an innovation network, was established in 2012 and is led by the Centro Ricerche Fiat (CRF). This network serves as a framework for all Group
innovation activities around the world. The GIP covers activities from idea generation to pre-competitive development and results in the formulation of the Global Innovation Master Plan.
The starting point of the plan are the strategic priorities defined in two annual publications: the Strategic Research Agenda, which sets long-term research priorities, and the Strategic
Innovation Agenda, which provides short and medium-term guidelines. Both collaborative and competitive research are launched according to the Master Plan.
To ensure successful global product stewardship, centralized databases measuring the environmental impact of materials, components and processes are used and continually enhanced.
Similarly, CO2 and fuel economy databases are in place to provide for constant performance monitoring and precise reporting to the relevant organizations and stakeholders in each region.
In particular, a specific system tracks compliance to European CO2 emission regulations. In the US, fuel economy is expressed in miles per gallon, which is the parameter used to measure
vehicle efficiency. At Fiat Group, we constantly monitor the fuel economy of our product portfolio and report the values recorded according to the requirements of the US Environmental
Protection Agency (EPA), the National Highway Traffic Safety Administration (NHTSA) and the California Air Resources Board.
The Group’s product strategy is based on the development of innovative solutions to minimize the impact on the environment by reducing fuel consumption and emissions, improving
product recyclability, reducing traffic congestion and diversifying mobility products and services, while in turn helping our customers become increasingly more responsible when driving.
All of these topics have been determined to be material during sustainability-focused Stakeholder Events conducted in 2013 across the regions. In particular, participants expressed a strong
focus on the need for an expanded view of the concept of moving people and goods: this concept could include mobility services, car-sharing and connectivity solutions.
Diverse, changing market conditions, as well as the evolving needs of our stakeholders, call for the constant adaptation of product strategy in order to remain fully competitive worldwide.
The Group accepts this continuous challenge by developing its sustainable mobility approach.
The Group’s commitment to sustainable mobility is based on a balanced approach that takes into account best-in-class technologies, with the awareness that there is no single solution
to the challenges faced by the automotive industry. Immediate and tangible results can be achieved only by combining the best conventional and alternative technologies, while recognizing
and accommodating the different economic, geographic and fuel requirements of each market. Ecological mobility results and targets are a tangible sign of its long-term commitment to
combine environmental responsibility with business viability.
The Group addresses this commitment on a variety of fronts:
optimizing the ecological performance of conventional engines
n continuing to offer a wide range of vehicles with alternative fuels
n developing alternative propulsion systems that are widely accessible
n designing systems to cut emissions and reduce vehicle energy demand
n developing initiatives to meet new mobility needs
n engaging with consumers to raise awareness of driver behavior on fuel consumption.
n
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GRI-G4 DMA, EN7, EN27
Product / A strategy to minimize emissions
A strategy to minimize emissions
Over the years, the Group has achieved significant results in reducing CO2 emissions and fuel consumption.
The Group’s commitment to increasingly sustainable mobility has been demonstrated by the results already achieved in reducing fuel consumption and CO2 emissions, particularly in EMEA
and NAFTA, where approximately 72% of Group revenues were generated in 2013.
European Union In the European Union, the average CO2 emissions of the Group’s Mass-Market and Premium Brands amounted to 122.9 g/km in 2013. This represents an 18% decrease compared with
2006 (the benchmark year used in EU regulations to set the 2012-2015 and 2020 targets) and a 24% reduction compared with 2000, which was the first year the EU Commission monitored
average emissions.
Approximately 71% of the Group’s newly registered cars of Mass-Market and Premium
Brands emitted 120 g/km of CO2 or less in the European Union, while 81% emitted
130 g/km of CO2 or less.
Average CO2 emissions for newly-registered vehicles
Fiat Group (Mass-Market and Premium Brands) in the European Union (g/km)
170
161.7
158.1
160
150
140
155.7
157.2
151.1
150.4
150.3
146.9
New car registrations by CO2 emission levels
Mass-Market and Premium Brands in the European Union
142.6
133.1
130
120
110
121.7
a
e
123.0
127.8
b
122.9
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
d
a. 13%
Up to 100 g/km
b.
101-110 g/km
12% c. 46% 111-120 g/km
d. 10% 121-130 g/km
Source: 2000-2012 – data submitted to EU Commission; 2013 – FGA estimate
e. 19% Over 130 g/km
c
Interactive
Product / A strategy to minimize emissions
United States In the United States, where shipments account for 84% of the NAFTA market, vehicle
efficiency is measured by fuel economy expressed in miles per gallon (mpg). In 2013,
Chrysler Group’s domestic passenger car mpg increased from 31.1 in 2012 to 32.1, an
improvement of 3%. Light truck mpg increased 1%, from 24.3 to 24.5.
Fuel economy (1) of vehicles sold in the US according to Corporate Average Fuel Economy – CAFE (2)
Mass-Market and Premium Brands in the US (mpg)
29.3
28.1
28.3
23.6
23.9
24.3
2008
2009
2010
Passenger cars (Domestic)
31.1
32.1
24.4
24.3
24.5
2011
2012
2013
29.8
Light Duty Trucks
(3)
China In countries in the APAC and LATAM regions, including those without specific regulations governing CO2 emissions or fuel consumption, Fiat Group offers vehicles with leading-edge
technology designed to reduce both. In China, where the Corporate Average Fuel Consumption (CAFC) regulation sets limits for CO2 emissions by 2015, the Group is committed to launch
new low-emission products, as well as various technologies currently available in other markets, including MultiAir, 8- and 9-speed transmissions and other technical engine upgrades.
Brazil In Brazil, the major market in the LATAM region, the sale of Flexfuel and TetraFuel vehicles totaled more than 744,100, corresponding to 97.5% of Fiat vehicles sold. The Group voluntarily
participates in the government’s INMETRO vehicle fuel consumption monitoring program (PBEV – “Brazilian Labeling Program Vehicle”). In PBEV 2013, referring to the Fiat position in 2012,
30 Fiat vehicles were involved, equaling 13% of the total participating vehicles. Fiat was the carmaker that participated with the highest number of vehicles in the labeling program. The 2013
program featured five Fiat vehicles among the top 15 cars with the lowest average consumption.
International awards The international awards received by the Group are further proof of its continued commitment to ecological mobility. In 2013, these included:
n The innovative 0.9 TwinAir Turbo bi-fuel natural gas-powered engine received the “Best Green Engine of the Year 2013” title
n Fiat’s “Methane Program” won the “Ecobest 2013” award
n Fiat Professional named “LCV Manufacturer of the Year” at the GreenFleet Awards 2013
n Ward’s 10 Best Engines list for 2014 included two from Chrysler Group: the 3.0-liter EcoDiesel V-6 engine and the Fiat 500e Battery-Electric Drive System.
n Palio Fire, the latest Fiat model to hit the Brazilian market and the most affordable car, received an “A” Rating under the “Etiquetagem Veicular” INMETRO initiative.
Refers to fuel consumption in miles per gallon, which, by applying an appropriate conversion factor, corresponds to the kilometers traveled with a liter. Therefore, an increase in fuel economy corresponds to an increase in vehicle efficiency and a reduction of fuel
consumption and CO2 emissions.
Data is reported to the US National Highway Traffic Safety Administration (NHTSA) and provided by model year, meaning the year used to designate a discrete vehicle model, irrespective of the calendar year in which the vehicle was actually produced,
provided that the production period does not exceed 24 months. CAFE standards from NHTSA are set independently for passenger cars and light duty trucks. Fuel economy is based on the most recent NHTSA required submission, which for 2013
reflects mid-model year data. Previous year data is adjusted to reflect final EPA/NHTSA reports.
(3)
Vehicles for the transportation of passengers and/or goods with specific characteristics defined by the US National Highway Traffic Safety Administration – NHTSA (e.g., SUVs, MPVs and pickups).
(1)
(2)
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Interactive
Product / A strategy to minimize emissions / Ferrari: HY-KERS, high performance hybrid technology
Ferrari: HY-KERS, high performance hybrid technology
The LaFerrari represents Ferrari’s most ambitious project to push the boundaries of technology on a road car, drawing together the finest expression of the marque’s technical capabilities
in both GT and Formula 1 engineering. Indeed, LaFerrari is the final outcome of this quest; it is the first ever car with hybrid technology to come out of Maranello. This model’s V12
combustion engine produces 800 hp and the electric motor a further 120 kW (163 hp) for a total of over 960 hp. Thanks to the technological leap represented by HY-KERS, a system
designed based on F1 experience, the LaFerrari is the most high performance and efficient Ferrari ever built. Making full use of Ferrari’s time on the racetrack with the KERS system which
has been further developed for application to road cars, the HY-KERS guarantees maximum integration between the V12 and the electric engine, blending the advantages offered by each
of these two types of propulsion. The high levels of torque available at low revs from the electric engine allowed the engineers to optimize the internal combustion engine’s performance at
higher revs, thus providing unending power throughout the rev range and an outstanding torque peak of over 900 Nm. In addition, the HY-KERS solution was designed from the outset to
be flexible and modular to enable its application even in models with a different architecture. The HY-KERS system is governed by one a product developed in cooperation with Ferrari’s
technical partner Magneti Marelli, the Hybrid Power Unit, which controls the power delivery from both the V12 and the electric engine.
This technology has enabled Ferrari’s engineers to maximize performance and reduce fuel consumption. “LaFerrari” emits just 330 g/km of CO2, but without resorting to electric-only
drive, so that driving your Ferrari is still a pleasure. To design and create LaFerrari’s body, Ferrari drew heavily on the Scuderia’s F1 experience. As with all ultra high-power vehicles, for the
LaFerrari, too, the goal was to design a chassis which would provide maximum rigidity and minimum weight, despite the constraints imposed by incorporating the hybrid system. It was built
entirely in-house in Maranello, using the same materials, structures and processes as the Scuderia. These uncompromising solutions guaranteed a significant improvement in performance
characteristics over the chassis of the Enzo Ferrari, with torsional rigidity increased by 27%, while weight has dropped by 20% thanks to the use of composite materials.
Product / A strategy to minimize emissions / Maserati: high performance meets the highest environmental standards
Interactive
Maserati: high performance meets the highest environmental standards
Maserati has devoted great efforts to developing the new Maserati Ghibli and Quattroporte, reducing the fuel consumption compared with the previous generation of cars and engines.
The new Twin Turbo V6 and V8 have been designed to consume as little fuel as possible and emit less CO2 and at the same time deliver extremely sporty performance. With an aluminum
alloy crankcase and cylinder heads, both units are extremely compact, keeping the weight of the car down. Also, a new V6 diesel engine with an enhanced Start&Stop Maserati feature was
introduced to further meet the demand for a low-consumption vehicle. Ultimately, these vehicles now run on 30% less fuel than those in the previous models.
The new Maserati Ghibli and Quattroporte benefit from the latest generation of eight-speed automatic transmissions,which are lightweight, precise and easily capable of coping with the car’s
high-performance engines. It uses self-adaptive software that recognizes driving style and road conditions and then alters the way gears are shifted accordingly. The seventh and eighth
gears are now specially calibrated to reduce fuel consumption and increase comfort on long, high-speed journeys.
A specific button near the gear stick changes to a specific drive mode created by Maserati, I.C.E. (Increased Control & Efficiency Mode). In I.C.E. mode, gears shift automatically,
reducing engine speed and quickening throttle response in all driving conditions for a quieter, smoother and low-fuel ride.
Particular emphasis was also placed on weight reduction. A brand new Chassis was constructed combining aluminum alloy and steel to meet tight weight and strength requirements and
thus yielding top safety. A large number of suspension and body components are also made of lightweight aluminum to further reduce total weight. That is why the V8 version makes the
new Quattroporte almost 100 kg lighter than the previous model, despite being 21 cm longer.
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Interactive
Product / Sustainable innovations on board
Sustainable innovations on board
500L is available with the wider range of sustainable propulsion systems.
Safety
Technologies
The vehicle body is composed for
almost 72% of the vehicle weight by
the latest generation in high-strength
steel (HSS) to ensure optimal
performance without weight increase
TwinAir Engine: -30% CO2
emissions vs similiar engines
MultiAir II: -10% CO2 emissions
thanks to the innovative eco electric
valve management
MultiJet II: is the eco cutting
edge evolution of Common Rail
Technology, so called Injection Rate
Shaping
+
+
Eco Engines @ Eco-Plants
TwinAir Turbo bi-fuel, has been
awarded Best Green Engine
of the Year 2013
Bielsko-Biala Plant, has been
awarded with the Gold Medal
for World Class Manufacturing
Product / Sustainable innovations on board
Interactive
Features
Transmission Systems
Continuous technological improvements
to optimize engine-transmission pairings
Thanks to the Automated Manual
Transmission CO2 emissions can be
further cut by 5%
eco:Drive LIVE
The real time eco assistant that let you
save up to 16% of consumptions
+
Initiatives
Enjoy, the brand new one car-sharing formula launched in 2013 by ENI in Milan (Italy) in partnership with Fiat and Trenitalia had choosen 50 Fiat 500L and its low emissions technologies.
The Fiat Likes U project, launched by Fiat in 2012 to benefit students from eight Italian universities and recently expanded across Europe, promotes environmental awareness and
eco-friendly use of vehicles through a three-pronged approach based on Mobility, Education and Employment.
The Group, Expo 2015 official sponsor, will provide a fleet of sustainable cars for transport inside the Expo area, as well as courtesy cars for guest delegations
arriving from all over the world: 500L will be provided to the organization, both in the CNG and diesel versions.
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Product / Optimization of the ecological performance of engines
GRI-G4 EN7, EN27
Optimization of the ecological performance of engines
Conventional engines will continue to play a predominant role in mobility in coming years. The Group believes that there is still significant potential to reduce the fuel consumption and
emission levels of these engines through innovative technological solutions.
Gasoline engines The two-cylinder TwinAir engine, which emits up to 30% less CO2 compared with engines of similar performance (16V 1.4-liter gasoline version), continued to be rolled out in further
models. The TwinAir family features four engine versions: a naturally aspirated 65 hp, 85 hp and 105 hp turbo, and an 80 hp natural gas turbo. The Group offers these on 31% of cars offered
in Europe. The new Twinair105 hp turbo version includes improved engine architecture (Cylinder Head Integrated Manifold – CHIM) and a high-efficiency turbocharger, thus further reducing
fuel consumption and emissions. After its introduction on the Fiat 500L in 2012, it is now available on the Fiat 500 and 500C, Fiat Punto and Alfa Romeo MiTo.
MultiAir technology lies at the heart of the TwinAir engines. Its electro-hydraulic valve management system reduces fuel consumption by controlling air directly via the intake valves without
using the throttle. Improved combustion control allows MultiAir to reduce polluting emissions, while simultaneously enhancing performance by improving drivability. Compared with a
traditional gasoline engine of equal displacement, MultiAir engines increase power by up to 10% and torque by up to 15%, in addition to a significant reduction in CO2 emissions of up to 10%.
The Group has already developed the new and improved MultiAir II, featuring next generation intake valve management and combustion control, thus enabling a further reduction in CO2
emissions without compromising performance, drivability or customer satisfaction.
All the gasoline engines in the TwinAir family and the 170 hp FIRE Turbo engine now feature MultiAir II technology. MultiAir II technology has also been extended to all Tigershark engines
including the new 2014 Jeep Cherokee. This vehicle comes equipped with a 2.4-liter MultiAir II Tigershark I-4 producing 184 horsepower and 171 lb.-ft. of torque. It achieves a fuel economy
rating of up to 31 miles per gallon (mpg) highway for 4x2 models, a more than 45% improvement versus the outgoing model. This same powertrain is standard on the new 2015 Chrysler 200,
and contributes to estimated fuel economy improvements of 13% compared with the outgoing model.
The Group’s Pentastar V-6 engine, originally launched on the Jeep Grand Cherokee in 2010, was expanded during 2013 with the addition of two new downsized versions: a 3.2-liter V-6 in
the all-new 2014 Jeep Cherokee and a 3.0-liter V-6 in the 2014 Jeep Grand Cherokee sold in China. With these two introductions, the Pentastar engine family now accounts for all of Chrysler
Group V-6 offerings, powering 16 models across 11 segments – from mid-size car to full-size commercial van. The Pentastar V-6 engine has a flexible architecture, so it can be used with a
variety of advanced technologies, such as Fiat’s MultiAir, direct injection or turbocharging. This “plug-and-play” characteristic, with little or no modification, accommodates longitudinal and
transverse orientations; front-wheel, rear-wheel, all-wheel and four-wheel-drive systems; 6-speed manual transmissions and 6-, 8- and 9-speed automatic transmissions.
In 2013, cars equipped with MultiAir technology represented 14.6% of all Mass-Market and Premium Brand sales in Europe.
Research into gasoline engines has been aimed at developing solutions to ensure ever-higher performance and extremely low polluting emissions. These solutions are the result of a range
of complementary technologies, such as modern supercharging systems incorporating new features developed in the MultiAir system and the use of exhaust gas recirculation systems.
These are all solutions that make engine management more flexible while increasing fuel economy and cutting emissions. New engines can deliver the torque needed even at low engine
speeds and will lead to the introduction of specific solutions to adapt transmission performance, favoring downspeeding and resulting in even better fuel economy. Vehicles featuring these
innovations will be more competitive while offering customers low ownership costs matched with top performance.
Product / Optimization of the ecological performance of engines
Interactive
Chrysler Group is engaged in a cooperative project involving the MultiAir system in collaboration with the US Department of Energy. In partnership with academia, suppliers and laboratories,
this project aims to help accelerate the development of highly efficient engine and powertrain systems for light-duty vehicles, while meeting future emissions standards. Key research
activities related to improved efficiency include reduced engine displacement, direct injection, advanced boosting systems that incorporate series/sequential turbocharging and cooled
Exhaust Gas Recirculation (EGR).
Diesel engines Our technological leadership in the field of diesel engines was strengthened by the second generation MultiJet technology (MultiJet II), an evolution of the revolutionary Common Rail
injection system patented by Fiat (Unijet). This technology has spread across the world, and testifies to Fiat’s commitment to developing solutions that are accessible to a large number of
customers. The MultiJet 1.3-liter version alone reached the historic milestone of five million units produced at the Bielsko Biala (Poland) plant. MultiJet II engines are characterized by their
eco-efficiency and performance through advanced combustion optimization technologies such as Injection Rate Shaping (IRS). With IRS, the MultiJet’s typical main injection is replaced by
two consecutive injections with no hydraulic interval, generating significant improvements in terms of fuel consumption (up to 3% less) and harmful emissions (a potential 20% reduction
in NOX ). In 2013, the MultiJet II was further extended across the product range, with the launch of the new 120 hp 1.6-liter version on the Fiat 500L, 500L Trekking and 500L Living and of
the new 150 hp 2.0-liter version on the Alfa Romeo Giulietta.
The Group’s recently-launched V-6 EcoDiesel engine was adapted specifically for the North American market to meet the NAFTA region’s stringent emissions and on-board diagnostic
regulations. This engine is available in all 50 US states and is Tier 2/bin 5 compliant. It benefits from Fiat’s MultiJet II technology, which enables Injection Rate Shaping – fuel injection that is
modulated to mitigate noise and improve low-speed throttle response, while reducing fuel consumption and emissions.
The EcoDiesel-powered 2014 Ram 1500 has earned a 28 miles per gallon (mpg) rating from the US Environmental Protection Agency (EPA), the best highway-cycle test result ever achieved
by a full-size, half-ton pickup. The new diesel engine also enables the 2014 Jeep Grand Cherokee to achieve best-in-class 30-mpg performance on the highway. The 3.0-liter EcoDiesel V-6
engine was named among Ward’s 10 Best Engines for 2014 and contributed to the 2014 Ram 1500’s victory in the latest Motor Trend Truck of the Year competition.
In the US, the Selective Catalytic Reduction (SCR) after-treatment system is provided on the Ram Heavy Duty diesel trucks, as well as on the new EcoDiesel engine in the Jeep Grand
Cherokee, Ram 1500 and Promaster. SCR provides a robust solution for managing NOX emissions while improving fuel economy.
Research into diesel engines has been focused on further developing the injection and combustion process with the aim of improving engine performance and reducing noise. In addition,
the research also aims to study and develop innovative ways to minimize polluting emissions, including nitrogen oxides, in anticipation of future mandatory requirements.
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Interactive
64
GRI-G4 DMA
Product / Roadmap of propulsion-vehicle systems
Roadmap of propulsion-vehicle systems
Fiat Group, Mass-Market and Premium Brands(1)
Already available
In the pipeline
Innovation
MULTIJET II
ECO-TURBO
SELECTIVE CATALYTIC REDUCTION
START&STOP
LIGHT DUTY DIESEL (North America)
NEW ADVANCED TECHNOLOGIES FOR EURO 6 / LEVIII
HIGH-EFFICIENCY AFTERTREATMENT
HIGH PRESSURE INJECTION SYSTEM
HIGH-EFFICIENCY COMBUSTION
ADVANCED COOLING SYSTEM
ADVANCED EXHAUST AFTERTREATMENT
ENERGY / EXHAUST HEAT RECOVERY
VARIABLE VALVE TIMING
Diesel
ULTRA LOW FRICTION ENGINE TECHNOLOGIES
SMART BOOSTING INTEGRATION SYSTEMS
Gasoline
MULTIAIR II
GDI AND MULTIAIR INTEGRATED
HIGH-EFFICIENCY COMBUSTION
TWINAIR
CYLINDER DEACTIVATION
START&STOP
DIRECT INJECTION
DISPLACEMENT DOWNSIZING
ULTRA LOW FRICTION ENGINE TECHNOLOGIES
MULTIAIR III
INNOVATIVE ENGINE CONTROL MANAGEMENT
ENERGY / EXHAUST HEAT RECOVERY
LEAN BURN STRATEGY
VARIABLE COMPRESSION RATIO
SMART BOOSTING INTEGRATION SYSTEMS
NATURAL GAS – TWINAIR – MULTIAIR II
BIOMETHANE (2)
VERY LOW EMISSIONS/MONOFUEL NATURAL GAS
FLEXFUEL/TETRAFUEL
LIQUEFIED PETROLEUM GAS (LPG)
BATTERY ELECTRIC VEHICLE (BEV)
MILD HYBRID
PLUG-IN HYBRID (3)
DIRECT INJECTION CNG
MULTIFUEL ENGINES (ETHANOL & GAS)
HYDROGEN/NATURAL GAS BLENDS (3)
NEXT GENERATION BATTERY ELECTRIC VEHICLE (BEV)
COOLED EXHAUST GAS RECIRCULATION
Alternative Fuels and Propulsion Systems
TURBO & DIRECT INJECTION ETHANOL ENGINE
Transmissions
6-SPEED MANUAL
7-SPEED DDCT
OPTIMIZED TRANSMISSIONS FOR HYBRID / ELECTRIC
AUTOMATED MANUAL TRANSMISSION
DUAL DRY CLUTCH TRANSMISSION (DDCT)
ADVANCED AUTOMATIC TRANSMISSIONS (6, 8 AND 9 SPEED)
EXTENSION OF DDCT APPLICATION
TRANSMISSION CONTROL OPTIMIZATION
AXLE DISCONNECT FOR FWD-BASED 4WD VEHICLES
Vehicle
ACTIVE GRILLE SHUTTERS
ADVANCED THERMAL MANAGEMENT
SOLAR ROOF
IMPROVED AERODYNAMIC KIT
CONTROLLED FUEL PUMP
WEIGHT REDUCTION
ENGINE ENCAPSULATION
HEAT STORAGE
LED DAYTIME RUNNING LIGHT
The Mass-Market and Premium Brands include the brands of Fiat Group Automobiles and Chrysler Group.
Demonstration fleets.
Experimental fleets already in operation.
(1)
(2)
(3
NEXT GENERATION LIGHT-WEIGHT MATERIALS
GRI-G4 EN7, EN27
Product / Broad range of alternative fuel-powered vehicles
Interactive
Broad range of alternative fuel-powered vehicles
A fundamental aspect of Fiat Group’s vehicle emission reduction strategy centers on the use of alternative fuels. From natural gas to biofuels, the objective is to offer technologies that are
aligned with the fuels available in the various markets, and capable of resulting in an immediate reduction in emission levels.
Natural gas Fiat Group believes that natural gas is currently the best existing solution for reducing urban pollution levels and CO2 emissions.
It is the cleanest and most economical fuel available, and the only currently viable alternative to gasoline and diesel. Specifically, natural gas:
n produces the lowest levels of harmful emissions, from particulate matter (reduced to essentially zero) to the most reactive hydrocarbons that result in the creation of other pollutants
n generates 23% less CO emissions compared with gasoline
2
n has the potential to become a renewable fuel source in the form of biomethane.
Market recognition Newly registered natural gas cars by CO2 emission levels
Fiat Group has been Europe’s leading producer of Original Equipment Manufacturer (OEM) natural gas vehicles
Fiat and Lancia in Europe
for more than 15 years. It offers the largest eco-friendly bi-fuel (natural gas/gasoline) range, satisfying the needs
of a wide variety of private and commercial consumers. With the 2013 launch of the natural gas versions of the
c
Fiat 500L and 500L Living and of the Lancia Ypsilon, the available range now features 12 models of passenger
cars and commercial vehicles (Fiat Natural Power Panda, 500L, 500L Living, Punto, Qubo, Doblò, Panda Van,
Punto Van, Fiorino, Doblò Cargo, Ducato, and Lancia Ypsilon Ecochic Methane). Safety and comfort remain
a. 56% Up to 100 g/km
uncompromised, as the natural gas tanks are designed to be fully integrated into the vehicle structure.
b. 41% 101-120 g/km
b
a
In 2013, Fiat Group’s European leadership was reconfirmed, with a share of more than 67%, corresponding to
c. 3% Over 120 g/km
more than 62,000 natural gas vehicles registered (+15% compared with 2012), thus totaling almost 600,000 cars
and commercial vehicles sold since 1997.
In Italy, despite a market demand contraction of 7%, the demand for natural gas cars increased by more than
26%. Fiat and Lancia natural gas cars sold in Italy in 2013 represented 16.5% of total sales and 17% of total
brand revenues.
Building on our long experience in Europe in the development of natural gas-powered vehicles, in 2013 the Group remained the only automaker in the United States to offer a factory-built
natural gas pickup, the Ram 2500 Heavy Duty CNG. The Group is currently developing the next generation of fuel tanks to power compressed natural gas (CNG) vehicles by using the
human body as inspiration. Patent-pending technology mimics human lungs to benefit CNG-tank capacity and formability. This unique technology development is supported in part by a
grant from the Michigan (US) Economic Development Council’s Technology Innovation Challenge.
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Interactive
66
Product / Broad range of alternative fuel-powered vehicles
Technological recognition The innovative 0.9-liter TwinAir Turbo bi-fuel methane-powered engine was named Best Green Engine of the Year 2013, one of the 12 categories of the prestigious International Engine
of the Year Awards. Now in its 15th year, the international contest is one of the most significant events on the automotive calendar, with participations from all the major car manufacturers
worldwide. The two-cylinder engine earned the title based on the combination of the environmental benefits of compressed natural gas (CNG) with fun at the wheel. It achieves maximum
power of 80 hp at 5,500 rpm and maximum torque of 140 Nm at 2,500 rpm. The methane-powered Panda TwinAir Turbo produces 86 g/km of CO2, one of the lowest levels of any vehicle
on the market.
In addition, the international jury of Autobest, a leading European automotive magazine, awarded Fiat’s “methane program”(1) the “Ecobest 2013” title for being the simplest and most costeffective solution with the lowest environmental impact among fuels currently available.
Biomethane: a renewable fuel source Natural gas vehicles can operate on biomethane, a biofuel produced from biomass (without affecting food resources) which is chemically similar to natural gas. From a well-to-wheel
perspective, biomethane-powered vehicles produce roughly the same CO2 emissions as an electric vehicle powered by a renewable fuel. For this reason, biomethane can help countries
like Italy meet their renewable energy commitments. The Group is working on research projects fostering the development of a biomethane supply chain.
Biofuels Fiat Group invests heavily in technologies that optimize the use of available natural resources. This commitment has propelled Fiat Group to leadership in the Brazilian market with its full
range of Flexfuel vehicles that run on varying blends of gasoline and bioethanol. Another example of Fiat Group’s technological excellence in this area is the TetraFuel engine (patented by
Magneti Marelli), the first in the world capable of running on four different fuels: bioethanol, Brazilian gasoline (refined crude oil and 22% anhydrous ethanol), gasoline and natural gas.
In 2013, more than 744,100 Fiat Flexfuel and TetraFuel vehicles were sold, representing approximately 97.5% of total sales. This result was largely achievable because of the extensive
bioethanol distribution network in Brazil, supported by long-standing government policies and readily available raw materials.
In addition, all engines sold in Europe are compatible with blends of up to 10% bioethanol with gasoline (E10), and up to 7% biodiesel with diesel (B7). In the United States, Chrysler Group
has produced more than 4 million flexible fuel vehicles capable of running on E85, which contains 85% ethanol, or biodiesel blends. In addition, some commercial vehicles are compatible
with diesel and biodiesel blends of up to 20% (B20).
(1)
The Fiat program on natural gas vehicles.
GRI-G4 EN7, EN27
Product / Non-conventional propulsion
Interactive
Non-conventional propulsion
The Group is focused on the development of alternative propulsion systems, especially for vehicles used in predominantly urban settings. It has adopted an approach that considers every
technology which is potentially capable of reducing the environmental impact of vehicles.
Chrysler Group leads the hybrid and electric technology development for the Group. The resources that were previously spread over various electrification development organizations across
the Group have now been gathered and integrated into the Powertrain and Vehicle Engineering departments. Accordingly, Chrysler Group is developing technologies that can be used in a
range of electrified vehicles, including conventional hybrids, plug-in hybrids, fully electrified and range-extended electric vehicles.
Chrysler Group is exploring how electric vehicles might mesh with our energy infrastructure. Through a partnership with NextEnergy we are evaluating vehicle-to-grid (V2G) technology using
four all-electric minivans. Detroit-based NextEnergy is a nonprofit energy technology and business accelerator. If the EVs prove to be viable storehouses of electricity, they could provide
energy savings by sending surplus power to the grid. By linking a sufficient number of EVs, their combined surplus power could be sold back to utility companies to offset demand surges
and pay EV owners for the surplus energy.
The Group’s first zero-emission Battery Electric Vehicle (BEV) for mass production, the Fiat 500e, began production in 2012 for the US market. The Fiat 500e launched in the US with
an Environmental Protection Agency (EPA) label of 108 highway MPGe (1) rating and class leading 87 miles of combined city/highway driving range. Such performance is enabled, in part,
by a distinctive “blended” braking strategy that combines the coasting experience associated with conventionally powered vehicles, with the power-saving benefits of regenerative braking.
Customers will spend only an estimated $500 a year to power the vehicle assuming a 15,000 mile annual distance, according to the EPA.
The Fiat 500e battery-electric drive system was named among Ward’s 10 Best Engines ranking for 2014 and is the lone representative of electric vehicle technology on this list.
In support of the Zero Emissions Vehicle Regulations (ZEV), development is under way to design the next generation Battery Electric Vehicle (BEV). The next battery electric vehicles focus
on reduced costs and extended driving range on a single charge. The core technologies are under development in conjunction with advanced battery suppliers.
MPGe is the EPA-devised measure for determining how many miles an electric vehicle can travel on a quantity of battery-generated electricity with the same energy content as a gallon of gasoline.
(1)
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Interactive
Product / Transmissions
GRI-G4 EN7, EN27
Transmissions
The Group continues to invest significantly in improving transmission systems, focusing in particular on optimizing engine-transmission pairings. The primary objective is to develop the most
efficient powertrain solutions for each vehicle segment in order to significantly reduce fuel consumption and CO2 emissions.
By striking an optimal balance between performance, fuel economy and costs, the Automated Manual Transmission (AMT), adopted by the Group for small cars and light commercial
vehicles, can cut CO2 emissions by 5% compared with traditional manual transmissions (New European Driving Cycle – NEDC). The AMT, developed and produced by Magneti Marelli,
is based on the electro-hydraulic automation of manual transmissions, and combines comfort with a reduction in fuel consumption and emissions. It replaces gear selection and clutch
activation with electro-hydraulic components, using an electronic control unit to select the correct gear for all driving conditions.
Chrysler Group’s eight-speed rear-wheel drive automatic transmission is available on the Ram 1500 pickup, Chrysler 300, Lancia Thema, Jeep Grand Cherokee and Grand Cherokee SRT,
and Dodge Durango and Charger. Depending on the application, this transmission contributes to fuel economy improvements of up to 12%, compared with the previous five-speed and
six-speed transmissions it replaces. It will ultimately be used on all rear-wheel drive vehicles except for the heavy-duty diesel versions of the Ram truck.
In 2013, a new nine-speed front-wheel-drive transmission was introduced on the 2014 Jeep Cherokee, and on the recently revealed 2015 Chrysler 200. In addition to improved fuel economy
over a six-speed automatic transmission, the Cherokee’s nine-speed transmission delivers customer driving benefits such as quicker acceleration and smoother shifting. The Chrysler 200
is the world’s first mid-size sedan to feature a nine-speed automatic transmission, which comes standard. When equipped with the available award-winning 3.6-liter Pentastar V-6 engine,
which delivers best-in-class 295 horsepower, the Chrysler 200 sedan’s highway fuel economy is improved by nearly 13% compared with the outgoing model.
Additionally, the Dual Dry Clutch Transmission (DDCT) technology, already available on the Alfa Romeo MiTo, Giulietta and Dodge Dart, was extended in 2013, to include the Fiat 500L
in the US. This transmission incorporates 23 patented technologies. It offers significant reductions in fuel consumption and CO2 emissions, as well as improved driving comfort. The
DDCT combines the basic mechanical system of a conventional manual transmission with an electronically controlled shifting system operated by the driver like an automatic transmission.
Further innovations are being introduced with respect to All-Wheel-Drive (AWD) systems. Starting in 2012, Fiat Panda was equipped with two newly developed AWD systems: a six-speed
version for gasoline and a five-speed for diesel. A new generation of AWD systems used on future Front-Wheel Drive (FWD)-based architectures will further enhance fuel economy. By
utilizing a power disconnect to the auxiliary axle, the AWD system can completely remove power to the non-driven axle when FWD performance is sufficient. The system automatically
selects FWD or AWD and can seamlessly switch modes as needed to minimize fuel consumption.
The new 2014 Jeep Cherokee offers a choice of three innovative four-wheel-drive systems to deliver best-in-class capability regardless of weather conditions. All three systems feature a
rear-axle disconnect resulting in reduced energy loss when four-wheel drive isn’t needed and improved fuel efficiency. The rear-axle disconnect seamlessly switches between two- and
four-wheel drive for full-time torque management and does not require input from the driver. The Cherokee is the industry’s first mid-size sport-utility vehicle (SUV) to feature a front-wheeldrive-based rear-axle disconnect system.
With respect to transmissions, innovation efforts have focused mainly on the evolution of Dual Clutch systems currently available on the Alfa Romeo MiTo and Giulietta, Dodge Dart and
Fiat Viaggio, optimizing the mechatronics system and its integration into the gearbox as well as control system functions to enhance the driving experience and increase fuel economy.
GRI-G4 EN7, EN27
Product / Vehicle architectures
Interactive
Vehicle architectures
To reduce fuel consumption and emissions without compromising safety and comfort, Fiat Group is working on reducing vehicle weight, aerodynamic drag, rolling resistance and the energy
required by auxiliary systems.
In 2013, the best architectural solutions were applied to the Fiat 500L Living. The vehicle body is composed for almost 72% of the body weight by the latest generation in high-strength steel
(HSS) to ensure the optimal performance without weight increase.
The newly-launched 2014 Jeep Cherokee uses 65% HSS, an improvement of 16% over its predecessor, the Jeep Liberty.
The Group continually strives to reduce the aerodynamic drag of its vehicles. From the earliest development stage, the aerodynamic performance of every vehicle profile is measured,
optimized, tested and certified in the world-class, full-scale, aerodynamic wind tunnels of the Group. The 500L’s profile optimization led to a 10% reduction in the vehicle’s aerodynamic drag
coefficient (Cx) compared with the Fiat Idea and Lancia Musa.
The 2014 Jeep Cherokee was designed with integrated aerodynamic features to reduce drag and assist
in improving fuel economy. Aerodynamically-designed features include:
n Fully integrated, aerodynamic tuned body
n Extensive rear spoiler
n Integrated underbelly pans
n Integrated sill aero spats
n Tail lamp designed to kick air off the side of the body
n Lightweight aluminum wheels for aero efficiency
In 2013, Magneti Marelli consolidated the ADI material project to reduce by 20% the weight of components
such as suspension arms and knuckles. The next step will be to investigate the application of this
material for other suspension products, focusing on weight reduction.
Magneti Marelli is also working actively in the innovation area to develop new lightweight materials such
as CFRP or GFRP composites for suspension components. This type of material can provide significant
advancement in reducing vehicle weight.
Composition of the new Fiat 500L Living platform
e f g
a. 25.9% Low Carbon Steel
d
a
b. 34.3% Conventional High-Strength Steel
c. 25.8% Advanced High-Strength Steel
d. 10.4% Press Hardened Steel
c
e. 1.4% Ultra High-Strength Steel
f. 1.8% Aluminum
b
g. 0.4% Plastic – Xenoy/Noryl
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70
Product / Other technologies for ecological performance
Other technologies for ecological performance
Another innovative solution that improves fuel economy is Chrysler Group’s Fuel Saver Technology
found in all of the light duty V-8 5.7L and 6.4L HEMI eight-cylinder engines. By means of cylinder
deactivation, it seamlessly alternates between high-fuel-economy four-cylinder mode when less
power is needed and V-8 mode when more power is required. Vehicles with multiple displacement
systems automatically shift to accommodate different driving conditions and needs. Chrysler Group
vehicles with this technology include the automatic transmission versions of the Jeep Grand Cherokee,
Chrysler 300/300C, Dodge Durango, Charger, Challenger, and Ram 1500. Fuel Saver Technology is
capable of delivering fuel economy savings of approximately 9%. In 2013, 88% of V-8 engines sold by
Chrysler Group worldwide incorporated this technology.
Chrysler Group is investigating Powertrain Thermal Management to effectively distribute waste engine
heat to reduce oil viscosity, thus improving driveline efficiencies. Future technical strategies to manage
and distribute exhaust heat include exhaust / coolant heat exchangers.
Moreover, Magneti Marelli, with its eco-sustainable products (1) contributed €1.41 billion in revenues for
2013, representing an increase of 9.3% over the prior year (€1.29 billion).
(1)
“
Sustainability-related technologies,
like propulsion and drivetrain,
should be affordable
”
Stakeholder Engagement Event, Belo Horizonte (BR)
Includes Xenon and LED headlights, LED tail lights, GDI injection systems, electronic control modules, automated manual transmissions and dual clutch transmissions.
GRI-G4 DMA, 14, PR1, EC4, EN27
Product / Innovation and sustainable mobility scenario
Interactive
Innovation and sustainable mobility scenario
At the Fiat Group Stakeholder Engagement Events, stakeholders recognized innovation as one of the main drivers for
sustainability. In 2013, the Group spent approximately €3.4 billion on research and development activities, in spite
of the current economic crisis in Europe.
The Group completed a significant number of major innovation projects during the year. The main areas of research
were focused on the following:
n reduction of environmental footprint
n safety and connected vehicles
n increasing product competitiveness.
The Group carefully assesses in advance the potential impact of its research on the environment and on the health of
the users of its products. In accordance with the precautionary principle, innovations are thoroughly tested before being
introduced on the market to verify their safety for the environment and society as a whole.
As a result of this approach, Fiat Group innovation is geared toward a future mobility scenario based on affordability
and economic sustainability.
The continuous collaboration between the Group and external partners led to tangible results for intellectual property,
with more than 8,000 patents granted to Group companies.
The registered patents are a result of a broader research and development activity which considers medium- and longterm mobility scenarios and technological future trends. The Group’s ability to anticipate consumer and market needs
plays a key role in our competitiveness in the market.
(1)
Fiat Group worldwide (€ million).
Public funding for research and development
Grants
Loans
of which subsidized loans
of which EIB(1) loans
2013
31
410
10
400
2012
51
7
7
-
Patents
Total patents registered at 31 December 2013
of which: registered in 2013
Patents pending at 31 December 2013
of which: new patent applications filed in 2013
8,521
425
3,333
459
71
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Product / Promoting creativity within the Group
GRI-G4 DMA, EN27
Promoting creativity within the Group
Employee creativity is a key factor in Group innovation. Fiat Group promotes in-company projects aimed at collecting suggestions and ideas for product and process improvement.
In 2013, the World Class Manufacturing method testified to employee commitment, producing 1.3 million suggestions, an increase of 8% over 2012. The best suggestions were implemented
and the project owners were recognized for their contributions.
For example, in 2012, the EMEA region launched the iPropose initiative, which is designed to encourage employees to propose ideas on ways to reduce costs and increase competitiveness.
In 2013, the initiative involved some 8,400 employees who submitted a total of 8,300 proposals. Adoption of the best suggestions led to approximately €17.3 million in cost savings.
Similarly, in the NAFTA region, the internal innovation program is implemented by the Innovation Idea Submission Database, a submission suggestion portal for employees. In 2013,
Chrysler Group employees submitted over 200 proposals. The Innovation Space in Auburn Hills held more than 200 training and workshop activities on topics such as strategy development,
product features and creative problem solving. In 2013, more than 1,000 employees participated in these workshops.
Universities and research centers Fiat Group engages in long-standing collaborations with universities and research centers through research groups and joint projects. These close ties with the academic world are
instrumental to encouraging creative thinking and rewarding talent in young people. Collaboration is promoted in many different ways by the individual companies and across the Group.
Fiat Group supports the Italian Automotive Technical Association (ATA) which is committed to promoting technical culture and training among young engineers. The goals of the
organization are to:
n improve technical know-how in the automotive sector
n promote innovative development through collaboration between research and academic institutions and industry
n increase the transfer of technological know-how among large, medium and small companies.
Product / Promoting creativity within the Group
Interactive
The collaboration in the EMEA region with Politecnico di Torino (Italy) and the University of Windsor (Canada) continues to demonstrate Fiat Group’s commitment.
As part of the program with Turin Polytechnic and in collaboration with ATA and CRF, three new voluntary courses were launched in 2013 focused on environmental sustainability and certain
aspects of emissions reduction. Organized as Voluntary Educational Programs and Summer Schools for Automotive Engineering students, these courses provided access to the latest
information from professionals working directly in the field.
The Group has established partnerships with several government entities, universities and other organizations to develop electric technologies.
Chrysler Group has entered a 5-year, $18.2 million partnership with McMaster University, a public research university in Hamilton (Canada), with funding support from the Canadian
government, to develop next-generation, energy-efficient, high-performance electrified powertrains and powertrain components. Work will be centered at McMaster University, where
20 engineers from Chrysler Group’s Global Electrified Powertrain Group and seven McMaster research engineers will team with 16 faculty members and 80 graduate and undergraduate
engineering students. The partners will also use Chrysler Group laboratories and test vehicles.
To advance Chrysler Group’s electrification strategy, the partnership will develop multiple prototypes of critical components, platforms and tools that will strengthen the company’s
future product lines. Six facets of vehicle electrification will be explored: electrified powertrain architecture and optimization, power electronics, electric machines, motor control, energy
management system and embedded software. The project consists of three phases, each building on the achievements of the previous one. The final phase is scheduled to conclude in
March, 2018.
Institutions European research organizations in which CRF is actively involved
In Europe, the Group has been active for many years in the support of policy and priority definition
related to automotive innovation programs. During 2013, Centro Ricerche Fiat (CRF) participated in
23 European project proposals, totaling more than 170 projects launched since the start of the
Seventh Framework Programme (2007-2013) with a global network of approximately 1,800 partners.
CRF is also involved in several stakeholder organizations that support the European Commission with
the mission to define priorities and guidelines on mobility research.
ERTRAC: Road transport
European
EPoSS: Smart system integration
Technology
EuMaT: Advanced engineering materials and technologies
Platforms
MANUFUTURE: Manufacturing and production processes
Public-private Green Cars Initiative
partnerships Factories of the Future
EUCAR: European Council for Automotive R&D
Research and ERTICO-ITS Europe: network of Intelligent Transport Systems
development and Services
organizations EIT ICT Labs: Knowledge & Information Community on ICT
established by the European Institution of Innovation & Technology
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Product / Recovery Recycling Reuse
GRI-G4 DMA, EN1, EN2, DMA, PR3
Recovery Recycling Reuse
The Group knows that a bolder approach to making the best use of both raw materials and recovered or recycled items can make a big difference in reducing the environmental
footprint of products throughout all stages of their life cycles. This approach advocates using eco-compatible materials and substances and also looks into types of design that create
more opportunities to recover and recycle the vehicles at the end of their lives.
In 2013, 41.9% of the weight of type-approved Group vehicles in Europe was made of recycled materials, in line with previous years. These results were also reached through
participation in numerous international research projects on innovations in the use of recycled materials and biomaterials. These initiatives evaluate the environmental benefits of using
different formulas of polymers – post-consumer recycled plastic or biopolymers – reinforced with natural fibers.
In general, all innovation and development of materials takes place at the Centro Ricerche Fiat’s Group Materials Labs (GML), which are also responsible for monitoring the impact
of the chemical substances used during vehicle production and sale. Furthermore, CRF’s GML ensures that the European regulation REACH (Registration, Evaluation, Authorisation
and Restriction of Chemicals) – which sets the thresholds of concentration of Substances of Very High Concern (SVHC) – is complied with throughout Fiat Group and coordinated with
Chrysler Group.
This includes keeping abreast of changes in legislation and assessing how this will affect products and/or processes.
The International Material Data System (IMDS) enables suppliers to enter all information on the composition of the products they provide. Fiat Group Automobiles’ End-of-Life Integration
System (FELIS) integrates all data from the IMDS with the product development management system. Currently the IMDS is available in Europe, Turkey, Latin America and China and its
integration into the relevant NAFTA databases is proceeding. This year the number of suppliers that used the IMDS grew even more than in previous years (+5% vs 2012 (1)). The IMDS is
important not only for analyzing vehicle recyclability and recoverability, but also for monitoring heavy metals use and substances potentially critical to the automotive sector, i.e., those in the
Global Automotive Declarable Substance List (GADSL).
The IMDS is also used to verify compliance with REACH, which governs the manufacture, import, sale and use of chemicals. Composition data is also checked for the use of certain minerals
whose availability on the market is seen as critical by the European Union for geopolitical reasons. Examples include rare earths or some noble metals used in catalytic converters.
The recyclability and recoverability of type-approved vehicles, as well as vehicles currently being built, continued to be monitored in Europe in 2013. All vehicles that the Group sells were
95% recoverable and 85% recyclable by weight, in compliance with European Directive 2005/64 (also known as Reusability, Recyclability, Recoverability – RRR), which establishes
the limits of recoverability and recyclability.
For more than a decade, the Vehicle Recycling Laboratory at the Group’s Automotive Research and Development Centre (ARDC) in Windsor (Canada) has been involved in
improving the understanding of product recyclability through the entire product life-cycle from development, concept and use, through to end-of-life disposal and recycling. To support
vehicle end-of-life research and development, the laboratory is equipped with material identification equipment, vehicle fluid removal equipment, unique vehicle dismantling equipment,
and advanced data analysis equipment. The ARDC performs vehicle teardowns to satisfy International Dismantling Information System (IDIS) requirements. In 2013, the ARDC
conducted a complete teardown analysis on the new 2014 Jeep Cherokee to identify the types of materials in all vehicle components. The information from this analysis was used
for both RRR processing (ISO 22628) and IDIS requirements.
(1)
Data refers to the Italian registered companies.
Product / Recovery Recycling Reuse
Interactive
This year, Chrysler Group’s Organic Materials Engineering organization approved an additional seven materials for the Chrysler Plastic Number (CPN) Index which contains recycled
content, renewable content or low emission polymers. The CPN Index is used to track specific grades of plastic materials approved for use on Chrysler Group programs. More than
70 specific grades with recycled content are listed, with the earliest active approval going back to 1993.
In 2013, recycled material used in wheel liners (Jeep Wrangler and the new Chrysler 200 sedan) rose from 52% to 64%, and resulted in an expected cost savings of €1.20 per
Jeep Wrangler in post-consumer recycled material. In addition, Chrysler Group now uses a renewable soy-based foam product in the A and B pillars and rear wheel wells on several
vehicles. Because its density is lower, less foam is required resulting in a weight reduction of up to 0.68 kg per vehicle. This product blocks unwanted noise in the passenger compartment
and enhances driving experience while contributing to improved fuel economy. In addition, the lower viscosity makes it easier to work with than traditional acoustic material used for this
type of manufacturing.
Materials used (2)
Mass-Market and Premium Brands in Europe
Average weight of
materials used
Steel
Cast iron
Light alloys
Other metals
Polymers
of which thermoplastics
of which thermosettings
Elastomers
Glass
Fluids
Other(3)
Total
Average composition of
vehicles by material (%)
Average weight of
recycled materials used
Average percentage of
recycled materials used (%)
56.7
6.8
7.1
2.5
13.8
12.0
1.8
3.9
2.8
4.6
1.8
100%
301.8
82.7
77.4
31.7
64.8
64.8
0.0
0.0
1.3
0.0
8.5
568.2
39.3
90.2
81.0
92.3
34.7
39.8
0.0
0.0
3.4
0.0
35.1
41.9
768.1
91.7
95.5
34.3
186.9
163.0
23.9
53.4
37.4
62.9
24.2
1,354.4
In 2013, the average weight of renewable materials for Group vehicles in Europe was 7.5 kg.
Average for 2013 existing range of type-approved vehicles in Europe, based on Directive 2005/64/EC.
In addition to “other metals”.
(2)
(3)
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Product / Recovery Recycling Reuse / Application of Life Cycle Assessment (LCA)
Application of Life Cycle Assessment (LCA)
For many years, Life Cycle Assessment (LCA) analyses have played an important role in Group design choices by aiding in the evaluation of the overall environmental impact of materials,
components and certain production processes. LCA is conducted in accordance with ISO 14040 and ISO 14044 and takes into consideration factors relating to energy and other
resources consumed in production, use and recycling, as well as waste generation.
As collaborative measurement programs on this topic are being increasingly introduced, in today’s market, companies must react faster and more effectively to assess the environmental
impacts of their products. To this end, in 2013 Centro Ricerche Fiat conducted and completed the first full analysis of a new type-approved vehicle. This study is the most recent
in the center’s long track record in LCA, an area in which it began working in 1994.
This examination of a Fiat 500L enabled a complete assessment of different engines and relevant scenarios in terms of the environmental impact of logistics processes,
together with other life cycle stages, i.e., materials selection, production, vehicle use and end-of-life (including reuse of components and recycling/recovery of materials). This activity will
continue in the next few years in order to combine the in-depth knowledge of vehicle components with the specific environmental impact of each stage, leading to the development of new,
more environmentally friendly products for the market.
In addition, in 2014 Chrysler Group will integrate LCA analysis by piloting one vehicle through the product development process.
Centro Ricerche Fiat also pursued research into the biopolymers PLA (Polylactide) and PHB (Polyhydroxybutyrate) and into recycled polymers reinforced with natural fibers (for
example flax, corn cob and wood dust), with the goal to reduce the environmental footprint of components and the use of non-renewable resources. For example, the MaTeRiA project
included an LCA analysis comparing PHB and natural fiber-reinforced (corn cob and wood) and recycled polymers with synthetic polypropylene. Specifically, it proved that a component for
the passenger compartment made out of these materials was technically feasible as well as environmentally friendly.
Product / Recovery Recycling Reuse / Magneti Marelli LCA case studies
Interactive
Magneti Marelli LCA case studies
Magneti Marelli, the Group company in charge of designing and producing automotive systems and components, also considers LCA as one solution to the ever-higher environmental
expectations of stakeholders and a way to distinguish in the market.
In 2013, Magneti Marelli was involved in five LCA projects on the following Business Lines:
n Automotive Lighting: for a thermoset and thermoplastic reflector (completed)
n Powertrain: for a polyamide and polypropylene air/fuel manifold (completed)
n Suspension Systems: for a steel and composite suspension arm (completed)
n Exhaust Systems: for a rolled and stamped muffler (still underway)
n Plastic Components and Modules: for an innovative injection process in multilayer fuel tanks (still underway).
All of these LCAs were comparative, that is, a component whose life cycle, resulting wastes and consumptions are known and are subsequently compared with innovative solutions, in order
to gather more information for strategic choices. This is obtained integrating LCA results with internal assessments about technical and economic feasibility.
These projects have had varying outcomes. In one case, while the innovative solution was comparable to the conventional method, it presented technical limits, making it impossible to
choose either one or the other without some kind of trade-off. In the other cases, new materials yielded a better performance not only from an environmental standpoint, but even from a
technical and cost perspective. The LCA methodology also highlighted an unexpected impact of new materials, which consequently are no longer competitive.
To optimize its organization, Magneti Marelli established an internal LCA Committee and an Operational Team. The LCA Committee is responsible for assessing and validating
results, as well as establishing KPIs and targets, while the Operational Team supports and coordinates teams within the Business Lines. Magneti Marelli teams receive scientific support
from the University of Florence’s Mechanical Engineering Department.
Additionally, in order to quantify performance results, in 2014 Magneti Marelli will add a KPI in each individual Business Line based on the percentage of revenues represented by
vehicle components that underwent LCA projects. Finally, LCA activities could become part of Magneti Marelli’s Environment and Energy Pillar in WCM methodology, comprising an
innovative contribution to this manufacturing standard. In the next few years, the aim is to gradually involve all Business Lines, applying LCA to more and more components while they are
still being designed. In addition, more employees are expected to be trained to use the tools and methods aimed at consolidating this approach in the company, thus changing the mindset
and reducing the impact of products and processes. The higher goal is to become the most environmentally-conscious company in the eyes of its stakeholders.
LCA case study on the production of biodiesel from frying oil When not disposed of properly, frying oil from households or restaurants may cause clogging of waste drainage pipes and sewage systems, water contamination and soil sealing. The
production of biodiesel from frying oil and its utilization for energy generation is a potential alternative to disposal, adding value to this waste through its use as an energy source. In this
study, we investigated a proposal to produce biodiesel from frying oil to fuel the vehicles used for employee transport at the Fiat plant in Betim (Brazil). Besides the technical and
economic evaluation, a Life Cycle Assessment (LCA) was performed according to the CML 2001 methodology to examine the environmental feasibility of producing biodiesel
from frying oil and its use as fuel in the minibuses, replacing conventional B5 diesel with B50. We observed a potential 44% reduction in GHGs, 34.5% in ODSs and a saving of 49.5%
in abiotic resource consumption. The conclusion of the project’s final evaluation was that using frying oil for biodiesel production and to fuel the fleet will potentially yield significant
environmental benefits.
77
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Product / Recovery Recycling Reuse / Monitoring hazardous substances
GRI-G4 DMA, PR1, PR3
Monitoring hazardous substances
Each year, the Group works to eliminate or reduce the concentration of substances that pose extreme health or environmental risk, as well as heavy metals. In Europe, the relevant regulation
is REACH (Registration, Evaluation, Authorisation and Restriction of Chemicals), which governs the control of Substances of Very High Concern (SVHC) in the Candidate List. The list is
updated every six months and covers “high concern” substances that may potentially be subject to authorization or restrictions in the future.
The Group uses the International Material Data System (IMDS) database to track each product compound, comparing it to the REACH regulation and the Global Automotive Declarable
Substance List (GADSL). Data from the IMDS are then channeled into the Fiat End-of-Life Integration System (FELIS), a software program that enables monitoring of the product compound
for all vehicles and automatic verification of the presence of SVHCs. When the new Candidate List was published in 2013, the analyses of vehicles, spare parts, engines and transmissions
were updated accordingly, in order to meet the communication requirements outlined in Article 33 of the REACH regulation.
The results once again confirmed that in all Fiat Group Automobiles vehicles, the percentage of SVHCs is less than 0.1%.
In order to increase awareness and understanding of the issues related to REACH and its application, the Group conducts periodic training and disclosure sessions inside and outside the
company. The Group also participated in relevant events and conferences, and continued ongoing interaction with the authorities responsible for managing and monitoring these issues.
Product / Recovery Recycling Reuse / Ethical sourcing of raw materials
Interactive
Ethical sourcing of raw materials
Many geopolitical experts believe that in the future, conflicts may arise specifically over access to raw materials. For this reason, the Group accepts its responsibility with respect to the
integrity of our sources of supply. We carefully monitor current events in countries that are extremely unstable from a political or an economic perspective. Disruptions in the supply chain
could arise in these regions and compromise the availability of fundamental raw materials that are difficult to replace. Conflict minerals are one example of such materials and include
tantalum, tin, tungsten and gold. These minerals may be mined to fund armed conflicts in the Democratic Republic of the Congo under conditions that do not respect human rights. In
addition, Rare Earths Elements (REE) are increasingly difficult to find due to China’s monopoly over their production.
Given that careful management of the supply chain is essential to the promotion of responsible sourcing practices, during the year the Group offered its suppliers the support needed to
understand and comply with current legislation on conflict minerals and to use the tools implemented for tracing their origin. Moreover, in order to lay the basis for an effective collaboration
between the EMEA and NAFTA regions, a working group was formed. Specialists from Purchasing management, the Legal Office and Group Materials Labs have been an integral and
contributive part of this team.
The Group also continued updating the map of applications that call for raw materials and noble metals whose availability may become critical in the coming years, thus posing a threat to
sourcing stability for the industry. In fact, the objective is to develop alternative solutions, including evaluating opportunities to recycle or reuse these materials in collaboration with other
industry sectors.
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Product / Recovery Recycling Reuse / Vehicle End of Life
GRI-G4 DMA, EN4, EN17, EN28, DMA, PR3
Vehicle End of Life
The Group is strongly committed to the recycling and recovery of materials when a vehicle reaches the end of its life cycle, and has played a key role in this field for many years.
In keeping with the Group’s Environmental Guidelines, we implement preventive measures from the start of product design, to promote vehicle disposal with minimal impact on the
environment. We also foster development of the recycled materials market in order to close the loop and get these resources back into use.
In our organization, ELV & CAR RECYCLING is responsible for ensuring compliance with relevant regulations in Italy, Europe and other non-European markets that have specific regulations
or emerging proposals for end-of-life vehicles. Its job is to ensure full compliance with laws inherent to end-of-life vehicles and fulfillment of the relevant obligations of vehicle manufacturers
and/or vehicle importers.
In Italy, the Group has been active in this field since 1992, the year the F.A.RE. (Fiat Auto REcycling) project was launched. It gained momentum with the European Directive 2000/53/EC
and the signing of the ELV Framework Program Agreement between Italian Ministries for the Environment and for Economic Development and the leaders in Italian industry in 2008.
Our commitment thus played an essential role, especially in Italy, which met the goal set by the European Union due in large part to our efforts.
According to Eurostat, the Directorate-General of the European Commission responsible for the publication and communication of end-of-life vehicles (ELV) recycling and recovery data for each
Member State, by 2011 Italy had reached 84.8% in reuse and recycling and 85.3% in reuse and recovery.(1) The Group recognizes that it must strengthen its commitment and increase the
number of activities and programs specifically aimed at reaching the goal of 85% recycling and 95% recovery for 2015, as set by the directive. Therefore we are now revising the Framework Program
Agreement with the relevant ministries and ELV supply chain associations in order to establish technological and organizational initiatives that will lead Italy to reach the ambitious targets for 2015.
Europe and non-European markets To maximize the recoverability of its end-of-life vehicles, the Group has developed a network of approved agents in Italy. These agents are trained in dismantling reusable components and
properly separating the materials – particularly rubber, plastic and glass – so they can be recycled.
During 2013, the Group enlarged its ELV network in Italy even more, for a total of 310 dismantling sites. It also improved the performance of the national network by finding operators who could
prove their certification in the areas of quality and the environment. Currently, over 50% of operators in the network have a quality, environment, ethics or safety certificate. Free take-back for
Group customers is 100% guaranteed for Fiat and Chrysler vehicles that reach the end of their life in the Italian market, as well as in the other 27 European countries where this is required.
The Group also continued to improve www.carecycling.fiat.com
This website was developed to provide updated information to customers, dealers and dismantling companies about regulations, recycling activities and new research projects to use
materials from demolished vehicles. All sections are available in English and Italian, and an international area was added to give updates on amendments to specific end-of-life recycling
regulations in the Group’s four operating regions. Today, end-of-life vehicle issues, are monitored not just in Italy and the European markets where European Directive 2000/53 has been
adopted, but also in an additional 32 countries in other regions (13 in EMEA, three in NAFTA, five in LATAM and 11 in APAC). In total, these issues are monitored in 60 countries that
represent about 95% of Group products sold worldwide.
An international team led by the EMEA region was also formed, involving the Group’s four operating regions, to monitor changes in legislation on ELVs in non-European countries, particularly
in emerging markets.
In 2013, the Group continued to strengthen its dismantling agent network in Europe’s key markets, particularly in Germany, where the network grew by over 10%, for a total of 90 collection
centers. At the same time, new services related to end-of-life vehicles (ELVs) management were developed. For example, in Germany an online search tool was launched, which helps the
customer quickly find the nearest dismantling center. On the whole, 15% of the Fiat and Chrysler ELV network in Europe is made up of single contracts with individual dismantlers;
Please note that data is published with a two-year delay on EUROSTAT website. Similarly, 2012 data will be available in 2014.
(1)
Product / Recovery Recycling Reuse / Vehicle End of Life
Interactive
35% of contracts are with qualified companies offering comprehensive management of ELVs; and 50% is comprised of the Collective Systems created to fulfill the obligations under
laws on end-of-life vehicle management.
United States In the United States, there are approximately 9,000 auto dismantlers in operation. Every year end-of-life vehicles produce more than 16 million tons of steel among other materials that
can be reused and recycled (source: www.autoalliance.org). Chrysler Group is also committed to the recycling and recovery of end-of-life vehicles and partnered with other automakers
to establish the End-of-Life Vehicle Solutions Corporation (ELVS) in the United States. Collectively this industry collaboration continues to promote the industry’s environmental efforts in
recyclability, education and outreach on issues such as disposal of elemental mercury from automotive switches and end-of-life high voltage batteries from electric and hybrid vehicles.
Lastly, Fiat Group is active in updating the International Dismantling Information System (IDIS), a comprehensive, advanced information system for pretreatment and disposal of vehicles
to be scrapped. Developed by the automotive industry, this database is meant to optimize demolition procedures for 1,854 models and versions of 71 vehicle brands, and is available in
39 countries and in 30 different languages. Any company that manages end-of-life vehicles can log on and use it free of charge.
Extensive research has been conducted on energy recovery from fluff, the material left over after a vehicle has been shredded and is no longer recyclable, as well as on selected other end-of-life
vehicle parts, such as tires. The Centro Ricerche Fiat (CRF) led a project known as Target Fluff on behalf of Fiat Group’s End-of-Life Vehicle division. Target Fluff also involved three industrial
groups in the shredder business, and was subsequently presented as part of the Italian Industria 2015 innovation program. This research and development project was partially funded by the
Italian Ministry for Economic Development. It increased knowledge of recycling and energy recovery technology, and helped the companies involved to invest in technology that optimizes the
separation of metal from fluff and prepares this material for subsequent transformation into energy. This project also enabled the construction of a second pilot plant related to fluff treatment.
Fiat Group is also committed to promoting end-of-life vehicle materials recycling through innovative technology and researching new potential emerging markets. For instance, in 2013 the
PFU (End-Of-Life Tires) collection system sent 100% of the tires collected from all dismantlers in Italy – representing more than 20,000 tons – to be recycled. This service is entirely free of
charge to the dismantler, while the costs incurred for collection, management and recycling are covered by the PFU (End-Of-Life Tires) Committee managed by the Automobile Club of Italy.
With the support of this committee, the Group is working to develop potential markets for the recycled rubber from end-of-life tires and encourage competition among collection and
management service firms in order to promote a reduction in the new vehicle ecotax for buyers.
Fiat Group Automobiles and Centro Ricerche Fiat (CRF) also participate in the project TyRec4Life, funded under the European Union’s LIFE+ project. This project aims to develop innovative
technologies to incentivize the use of rubber from end-of-life tires in street pavement and thus improve the characteristics and performance of asphalt in terms of safety, comfort, resistance,
environmental impact and noise.
To evaluate safety and sustainability of the product and process, as well as ensure security and eco-sustainability, Life Cycle Risk Assessment (LCRA) and Life Cycle Assessment (LCA) studies
have been conducted. In 2013, Centro Ricerche Fiat conducted an analysis of Life Cycle Assessment (LCA) to compare recycling of rubber from end-of-life tires (PFU) with energy recovery from
cement works where the end-of-life tires are used as a replacement for solid fossil fuels, thanks to the favorable heat of combustion/emission ratio. This analysis showed that the Global Warming
Potential (GWP) of recycling 1,000 kg of PFU is negative (-6 kg of CO2eq) compared with the 70 kg of CO2eq outcome obtained from PFU energy recovery in cement works. This means that the
environmental credit for using recycled materials instead of raw materials exceeded the environmental debts caused by shredding, separation and cleaning of the materials comprising the PFUs.
Finally, the Group measures CO2 emissions and the associated energy consumption resulting from end-of-life vehicle treatment. In 2013, CO2 emissions amounted to approximately 209 kg
of CO2eq per vehicle, while energy consumption was 1,600 MJ (PED – Primary Energy Demand per vehicle (2)).
In order to calculate the GWP of the end of life of an average Fiat-Chrysler vehicle, Life Cycle Assessment analysis is conducted according to ISO 14040-14044 and performed with Gabi 6 software and the CML 2001 method (updated as of April 2013). Outcomes
take into account the environmental debts due to the following ELV management activities: depollution (oil, fluids), dismantling for component reuse and material recycling, shredding activities, and landfilling of the Automotive Shredder Residue. The environmental
credits due to the reuse, recycling and recovery of the materials sorted are out of the scope of the LCA.
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GRI-G4 DMA, 27
Promoting new mobility models
In the continuously changing mobility scenario, Fiat Group is addressing mobility needs with respect to traffic management, customer involvement and alternative mobility solutions.
Examples include a variety of navigation and hands-free features on Group vehicles.
In Italy, projects devoted to research, development and experimentation of innovative technologies for new mobility models are in process, as well as partnerships in car-sharing services
to provide solutions to customers that are affordable and economically viable.
In the United States, the Group has been deeply engaged in research on future social and technological trends that will affect nearly every aspect of our business – from design to
manufacturing to marketing to human resources. This research is organized around five driving forces: cities, lifestyle, work, health and energy. The findings from this research will enable
the Group to more successfully navigate the shifting landscape and anticipate evolving consumer needs and behaviors.
Improving traffic management Traffic flow is a key factor that can be optimized to reduce travel time, traffic congestion, and therefore fuel consumption and air pollution. The cutting-edge applications offered by the Group
are an expression of its commitment to encourage efficient mobility. The Blue&Me TomTom2 (available on the Lancia Ypsilon, Fiat 500, Panda, Punto, Qubo, Doblò and Ducato) offers
drivers peace of mind in city traffic through exclusive LIVE services. In countries where the services are available, LIVE uses the TomTom HD Traffic system to cross-check traffic data with
a dynamic calculation of journey routes, providing real-time updates on traffic jams and slowdowns.
Similarly, on Chrysler Group’s Uconnect system, SiriusXM Traffic works with the vehicle’s navigation system to display real-time updates on traffic speed, flow and accidents to assist
drivers in avoiding congested areas. In 2013, the SiriusXM Traffic service was available on 24% of navigation system units offered in the United States.
In 2013, Magneti Marelli completed the development of the first product based on the open source GENIVI (1) platform. Along with the product development, Magneti Marelli has developed
a methodology for the usage of technologies and tools specifically designed for developing, documenting and testing software based on Open Source according to the V-Cycle paradigm
of software development. Further activities are already in place to add features enhancing the connectivity domain with both user devices and with Cloud-based services, that will allow the
gathering of big data from the car for additional services and features including those related to fuel economy and safety.
Magneti Marelli has developed an eToll system for France. The solution is based on cellular (GSM/GPRS) and multi-constellation satellite technology (GPS, Galileo and Glonass), which is
combined with short-range communication modules (DSRC) already used extensively in this type of market. The installation of this device on vehicles will make it possible to independently
track the route covered and obtain the information needed to calculate the toll, thus limiting the infrastructure needed. In addition, the system will develop differentiated payment schemes
based on specific parameters, such as kilometers covered, time, geographical area and municipalities crossed, making it possible to replace the road tax altogether.
The eToll service marks the first step toward enabling governments to implement different road policies aimed, for instance, at changing driving habits, optimizing infrastructure, and reducing
environmental impacts. Starting in 2015, countries such as Germany, Belgium and Russia will adopt this service.
(1)
GENIVI is an alliance consisting of over 150 companies located around the world, whose main goal is to guide the widespread adoption of an open-source platform for IVI devices.
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Involving the customer The environmental impact of vehicles is strongly influenced by consumer driving behavior and the level of vehicle maintenance. With this in mind, Fiat Group goes beyond the sale of its
products by promoting environmentally conscious and eco-friendly driving.
Fiat Group has invested in the eco:Drive system, software offering personalized tips to drivers based on driving style, hence reducing fuel consumption and emissions. Eco:Drive is currently
available in Europe, Brazil, the United States and Canada for almost all Fiat and Fiat Professional models (500 and 500L, Punto, Bravo, Qubo, Doblò, Linea, Panda, Grande Punto
Van, Punto Evo Van, Bravo Van, Fiorino, Doblò Cargo and Ducato). The software includes specific functions to measure energy savings associated with the Start&Stop system and the use
of natural gas. In Europe, the data collected from eco:Drive’s best users confirmed that fuel consumption can be reduced by up to 16% using this system. By the end of 2013, more than
94,000 customers, including more than 11,500 new users in 2013 alone, had used the software, with CO2 savings exceeding 5,800 tons/year.
New features are continuously being developed in order to make eco:Drive more fun and engaging. In 2013, a new version of the software, called eco:Drive LIVE, was made available on
the Fiat 500L Living and Trekking. Interfacing with the new Uconnect 5” touchscreen multimedia system, it provides users with real-time tips to drive in a more eco-friendly manner. The
eco:Drive Mobile application, compatible with Android, Blackberry and Symbian smartphones and Apple iPads, is also available. It provides drivers with immediate, direct feedback.
Fiat Group also plays an active role in encouraging young people to drive responsibly. One example is the Group’s involvement in the Ecopatente project sponsored for the 4th year in
2013 by the Italian environmental association Legambiente, which so far has involved more than 2,500 driving schools and awarded 45,000 Ecopatente licenses. In 2013, the Group was one
of the project’s main partners, along with CONFARCA and UNASCA, two nation-wide industry associations representing 70% of Italian driving schools. Students attending these schools
learn how to use vehicles properly and in an eco-friendly manner, by focusing on topics such as respect for the environment and safety. As proof of the civic and social value attributed to
this project by institutions, in 2013, the Ecopatente project was also promoted in 2,500 high schools where participating students earned course credits.
The Group also seeks to focus customer attention on vehicle maintenance, which can affect fuel consumption and emission reduction.
Alternative mobility solutions Among the critical topics discussed at Fiat Group’s 2013 stakeholder engagement activities was the concept of new ways to use vehicles. Vehicles today are more flexible and customized
than ever before, and are designed for both city and country driving.
Looking toward the future of mobility and the potential response to a changing market environment, the Group has launched various initiatives that illustrate its commitment to meet these
new challenges.
Enjoy is the new advanced, Italian car-sharing service ENI launched in Milan in partnership with Fiat and Trenitalia. Its goal is to reduce traffic and improve the quality of life for those
who live and work in the city. For this project, Fiat provided Enjoy with a fleet of about 650 Fiat 500 and 500L vehicles. Innovative features of the service include online or smartphone
app sign-up and management, as well as the ability to instantly select from a pool of available vehicles parked at locations around the city and to leave the vehicle at any of the approved
parking facilities within the service coverage area.
Naturally, youth have an important part to play in any discussion about the future of mobility.
The Fiat Likes U project was launched by Fiat in 2012 in collaboration with the Italian Ministries of Education and Environment, for students from eight Italian universities in Turin,
Rome, Milan, Salerno, Parma, Cosenza, Pisa and Catania. For the first time in Europe, a car manufacturer promoted environmental awareness and eco-friendly use of vehicles through
a three-pronged approach based on Mobility, Education and Employment. The project included a car-sharing service available to students free of charge, scholarships, paid training
programs and lectio magistralis.
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The initiative was highly successful. More than 6,000 students used the eight vehicles (Panda and 500L) for over 28,000 trips totaling 320,000 km. Moreover, there have been more than
180,000 hits on the dedicated likesu.fiat.it website.
In 2013, Fiat decided to extend the project to other universities across Europe through the Erasmus study abroad network. The first expansion of the initiative was at the Royal College of Art
in London (UK). The dialogue with the English students started with Fiat Two of a Kind, an important educational program that will allow them to get a closer look at Centro Stile Fiat. Through
lectio magistralis by prominent representatives from this facility, they can participate in a contest that awards the best designs applied to Fiat Panda and Fiat 500 models. In addition, Fiat
will offer the Royal College of Art students a free car-sharing service with Panda and 500 vehicles. The 10 winners will be offered internships in Turin at the Centro Stile in 2014 and 2015
and have the opportunity to learn more about Italian culture and Fiat Group brand values.
Fiat Group is also an official global partner of Expo Milano 2015, a world’s fair not oriented toward trade, but rather to comprehending the challenges that face all of humanity. The theme
of EXPO 2015, Feeding the Planet, Energy for Life, is closely aligned with the Group’s commitment to respecting the environment. In fact, Fiat Group will provide a fleet of vehicles, designed
for sustainable mobility, for getting around inside the Expo and as courtesy cars for the many delegations of visitors coming from every corner of the globe.
Reducing polluting emissions As part of its environmental commitment, Fiat Group’s work to reduce fuel consumption and CO2 emissions is paired with an even greater effort to develop devices that reduce polluting
emissions, including particulates and nitrogen oxides (NOx).
Regulations with respect to the maximum polluting emissions for vehicles are becoming increasingly stringent and are affecting future requirements for automakers.
The Group has also been developing solutions to reduce emission levels even more, to comply with the upcoming Euro 6 standard. This standard will introduce mandatory, more stringent
limits, particularly on NOx, for all new type-approved models in Europe as of September 2014, and for all new registrations as of September 2015. By the end of 2013, the Group had pulled
ahead compliance with the Euro 6 standards on all gasoline vehicles.
For diesel engines, MultiJet II technology represents an important step toward compliance with Euro 6 emission standards, as it ensures better combustion while lowering the need for
exhaust gas after-treatment. The Group is developing further innovations to offer Euro 6-compliant, cost-effective solutions for the entire engine range.
In the United States, Chrysler Group has already complied with the revised Mobile Source Air Toxic (MSAT) regulation issued by the US Environmental Protection Agency, expected to
come into effect in 2014. Plans for 2014 include expanding the portfolio of extremely clean Partial Zero-Emission Vehicles (PZEV) to the four-cylinder Tigershark engine, and introducing
new products compliant to California LEV III Low Emission Vehicles. LEV III is the California Air Resources Board’s new regulation that introduces the most stringent tailpipe emissions in
the world.
Product / Sustainable materials
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Sustainable materials
The activities of Centro Ricerche Fiat (CRF), through the Group Materials Lab, are geared toward continued reduction of the environmental footprint, as well as compliance with regulations.
The most important activities of 2013 are related to:
n solutions for weight reduction
n reuse of materials
n bio-materials.
With respect to bio-material, sustainable mobility is pursued not only through the development of new concepts for vehicle systems, but also through the adoption of new materials that yield
environmental benefits. For this reason, research in recent years has been focused on developing composite materials with vegetable content and on polymer matrices of biological origin
derived from renewable sources, which can greatly impact the vehicles of tomorrow. CRF is engaged in this field through partnerships with companies operating in the sector to adopt these
materials in vehicles and, at the European level, with important research institutes to monitor future developments and their potential for application.
CRF is a partner of the BRIGIT European project whose objective is to develop an environmentally and economically sustainable process to produce biocomposites from biopolymers, which
can be used in combination with natural fibers. The material is developed taking into account the fact that it will be used in cars and industrial vehicles to achieve mechanical, physical and
fire resistance performance comparable to that of the materials currently used.
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Customers
GRI-G4 DMA, 2, PR2, PR3, PR4, PR5
Responsibility toward customers
The Group’s relationship with its customers represents one of the significant focal points of every activity undertaken by the company: from initial
market research to product development, to the manufacturing process, through the purchase and after-sales experience. It is essential to the long
term viability of Fiat Group that we engage with our current and potential future customers to ensure that their expectations are met or exceeded. In
fact, customer satisfaction and vehicle quality were confirmed as two of the most material aspects during the Group’s 2013 sustainability-focused
Stakeholder Engagement Events held in Turin (Italy), Belo Horizonte (Brazil) and Detroit (US). Through lifelong relationships with satisfied customers,
the Group builds a loyal customer base which promotes the brand in the marketplace and contributes to the overall success of the company.
Fiat Group engages with consumers in a variety of ways with the responsibility shared by many different business functions. The Group strives to address a wide range of requirements
from customers, including those with special needs. Regardless of the type of interaction, the relationship with the customer is handled with honesty, integrity and transparency, specified
by the codes of conduct and several related policies and guidelines. The Group has an obligation to inform customers about the proper use of our products and services including potential
risks or hazards.
For this purpose, manuals, labels and advertising are available and distributed or communicated through the dealer and service networks, the Customer Contact Centers (CCC), as well as
on Group websites.
The Group also strives to improve vehicle safety performance and give customers peace of mind while using our products. This is the premise behind our vision and commitment for
increasingly sustainable mobility: one that responds to consumer mobility needs while reaching high standards of safety and quality.
The Group monitors customer expectations and satisfaction in various ways and throughout the whole value chain, starting from market research during the pre-purchase phase. Monitoring
continues after the vehicle is purchased by means of the Customer Feedback program.
The programs measure how satisfied customers were with the vehicle purchase, service and repair, if applicable, as well as how likely they are to recommend a dealer or a brand to family
and friends.
By surveying the customer throughout the vehicle consideration and ownership process, customer expectations and feedback can be integrated into all of the Group’s development and
process decisions.
GRI-G4 DMA, PR1, PR2
Customers / Vehicle quality / Global quality strategy
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Vehicle quality
To reflect its strong commitment to global vehicle quality, the Group has established a goal of achieving the top quartile competitive position for the vehicle portfolio based on relevant benchmark
data in each region by 2020. Fiat Group’s commitment to customers is focused on delivering world class quality in all markets and all vehicle segments. To ensure a stronger, worldwide quality
organization, the Group’s Head of Quality is a member of the Group Executive Council (GEC) and reports directly to the Fiat S.p.A. Chief Executive Officer (CEO). The GEC is responsible for
reviewing the operating performance of the businesses, setting performance targets, making key strategic decisions and investments for the Group and sharing best practices. Each of the four
operating regions, EMEA, NAFTA, LATAM and APAC, has its own quality department that reports to the global Head of Quality, as well as to the respective region’s President and CEO.
Global quality strategy
The convergence of cross-regional teams has resulted in a Global Quality System that includes one quality language, standard measures, target setting to drive top quartile (1) results and
standard global processes. The Global Quality System has been a key driver in establishing a process for definition of customer requirements, developing component and vehicle testing and
implementing manufacturing plant quality processes and measures. The Group has implemented a common Quality methodology and standard measures worldwide through its defined
Six Types of Quality to surpass customer expectations, eliminate inconvenience and cost to the customer and improve the company’s reputation.
The Six Types of Quality that the Group monitors for improvement are:
n reliability, also described as ordinary quality, is measured according to warranty claims. The establishment of 14 customer satisfaction teams has been a key factor in significantly
reducing the number of warranty claims in the past five years. Each of the teams is responsible for identifying and correcting problems for a specific vehicle system (brakes, driveline,
electronics, etc.). For example, the heating, ventilation and air conditioning (HVAC) team – made up of experts from engineering, manufacturing, supplier quality and service – is tasked
with continually reducing warranty claims and improving HVAC system quality on all Group vehicles
n perceived, also called appearance quality, measures and evaluates vehicle attributes such as fit-and-finish, ergonomics, the feel of interior materials and even the sound quality of movable
parts like doors and storage bins. The goal is for customers to identify new vehicles as well-crafted and quality-built vehicles the first time they see or touch a vehicle at a dealership, auto
show or in a neighbor’s driveway
n performance quality measures how well a vehicle performs and functions compared to its competition. To improve a vehicle’s performance quality, engineers start with an all-new vehicle
program, collecting and prioritizing customer desires. Then the team benchmarks more than 300 physical characteristics of best-in-class vehicles. Criteria such as acceleration, braking,
handling, seat comfort, storage space, fuel economy and visibility are measured so that all-new vehicles are designed to compete with the best
n dislike quality refers to situations where customers find certain vehicle features frustrating or poorly designed even though the vehicle performs reliably. For instance, a customer may
think the cup holders are too low or the cruise control is difficult to set. The Group uses this customer feedback to reduce “dislike” design issues. Another example is the Group’s extensive
consumer research to make sure the Uconnect radio, navigation and entertainment controls are intuitive and easy to use
n service quality measures the customer’s experience in the dealership, before and after the sale. The Group surveys customers after dealership visits to determine how likely they are to recommend
the brand and product. If the vehicle was serviced, the company also asks customers about their level of satisfaction and monitors whether an issue was fixed properly on the first visit
n regulatory quality refers to recalls for safety or environmental compliance issues which can have an impact on a manufacturer’s reputation, in addition to customer inconvenience for extra service
trips to a dealer. With strict quality control processes, the Group is committed to identifying potential issues as quickly as possible and providing safe, high-quality vehicles for its customers.
Vehicle portfolio will place within the top 25% of benchmark data.
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Customers / Vehicle quality / Safety and regulatory compliance
The implementation of World Class Manufacturing (WCM) at Fiat Group plants worldwide has also been a key driver of manufacturing quality system improvements. WCM is a best-in-class
system of manufacturing that encompasses all plant processes, including a Quality Control pillar dedicated to creating instruments and methods that help the company reach its quality
targets.
All Group manufacturing plants have adopted a Quality Management System Certification compliant with ISO 9001:2008. In addition, Fiat Powertrain plants in Europe are also
ISO / TS 16949:2009 certified.
Among the factors contributing to strengthened manufacturing quality systems is the development of common vehicle measures worldwide. Fiat Group measures approximately
2,500 standard vehicle characteristics during the manufacturing process. Additionally, final vehicle quality is measured through a common Customer Product Audit (CPA). The CPA is a
global quality audit methodology integrating best-in-class criteria that prioritizes defect severity levels based on customer perception and the competitive landscape.
Common quality tools, such as Metrology Centers, are utilized for product measurement at Group plants. The Metrology Center enables engineers and technicians to find sources of build
variation – even when the components appear perfect to the naked eye – and resolve any fit and finish issues before customer vehicles are built.
As a commitment to global vehicle quality, the Group has implemented a goal of achieving the top quartile competitive placement for the vehicle portfolio by 2020, which is confirmed through
relevant benchmark data in each region. This commitment is also supported by targets to improve customer satisfaction within each region and vehicle reliability as measured by rates
of repair. In 2013, rate of repair in the first 90 days of ownership improved by 10% to 20% globally, depending on the model. Net Promoter Score (NPS) is an internal tracking system that
measures customers’ willingness to recommend their vehicle to a friend or family member. In 2013, NPS on three year old vehicles improved by as much as 32% in regions with available
measures.
Safety and regulatory compliance
A manufacturer’s responsibility does not end with the final sale to the customer, but continues throughout the entire life cycle of the vehicle. With this in mind, the Group continues to
monitor all aspects relating to vehicle safety during the after-sales phase. If technical problems relating to safety or regulatory compliance arise, prompt and fair recall campaigns are
initiated to resolve problems identified.
In 2013, there were 71 safety and regulatory compliance campaigns involving 7,157,370 customers around the world (EMEA, NAFTA, LATAM and APAC).
In the EMEA region, recall campaigns are managed by informing customers about the activities concerning their vehicle through written communication. The entire process is designed to
minimize inconvenience to the customer and vehicle downtime.
Moreover, a customer can obtain additional information on the work to be carried out, the location of service centers and other services that may be available, by contacting the Fiat Group
Automobiles Customer Contact Center at any time through one of the available contact channels: brand toll-free numbers, “Contact us” links on websites and social networks, etc.
In the NAFTA region, a Safety Recall Follow Up program provides for a variety of communication methods to customers that have not had a Safety Recall performed on their vehicle within
six months of the first notification. The number of customers that have recalls completed during the 6-18 month period after notification has nearly doubled since the introduction of the
program. Chrysler Group also began a 60-day customer notification program to describe to customers the safety campaign that will be performed on their vehicle.
GRI-G4 DMA, PR1
Customers / Vehicle safety / Global safety strategy
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Vehicle safety
The Group is strongly committed to its efforts to ensure safety for all road users. This commitment is grounded in the respect for human life which is reflected in all of the Group’s activities.
Our vision of sustainable mobility is one that leads to the development of vehicles that address both the security and mobility needs of consumers worldwide, while offering a product
portfolio that delivers innovation, style and passion that affords the level of driving confidence today’s consumer demands.
Meticulous research has been conducted to design vehicles equipped with safety systems that keep the customer and brand image in mind, and are competitive in the marketplace.
The Group applies an integrated approach to the development of on-board safety systems – which has been proven to significantly reduce the probability of injury in the event of an
accident – focusing on the following key areas:
n collision avoidance: systems that assist the driver in recognizing potentially dangerous situations
n driver assist: systems that provide active assistance in controlling the vehicle and maneuvering to avoid collisions
n damage mitigation: systems to minimize damage and injury in the event of an impact.
We strive to make society safer by continuing to make advancements in technology.
In addition to vehicle-related innovations, other factors affecting safety for consumers worldwide include infrastructure and driver behavior. These factors are addressed by the Group in a
variety of methods by extending the use of wireless communication technologies to enable Vehicle-to-Vehicle (V2V) and Vehicle-to-Infrastructure (V2I) communication, setting up safety
education programs and advocating proper vehicle maintenance.
Global safety strategy
The ultimate governance of strategy in relation to safety lies at the highest level of the management organization. Several functions across engineering, research and development, which
contribute to the implementation of this strategy, includes representatives from the regional Active and Passive Safety, Regulatory and Quality areas.
With respect to long-range safety research, the Centro Ricerche Fiat (CRF) is the focal point and draws on a broad array of technical skills, covering all automotive engineering disciplines,
together with state-of-the-art laboratories for testing.
Additionally, the Chrysler Group Automotive Research and Development Centre (ARDC) in Windsor (Canada) is home to the Lighting Research Facility, one of the largest of its kind in the world.
With a 91-meter, two-lane indoor roadway – including roadside markings, overhead signs and reflectors – the facility is used for headlamp, fog lamp and taillamp testing. In this facility,
consistent weather conditions can be created regardless of season or time of day, and it is equipped with fog simulation equipment.
The Group evaluates how vehicles may impact the health and safety of customers through crash analysis and real-life road safety data. A team of specialized engineers within
the Group Safety Center in Orbassano (Italy), Auburn Hills and the Chelsea Proving Grounds (US) develops and assesses effective safety systems, concentrating on various aspects
including safety levels in front and side collisions for vehicles from different segments, protection of vulnerable road users and integration of active and passive safety systems. In support of
this approach, upgrades are continually implemented in our impact test facilities. Most recently, the focus has been on improving the main physical crash testing tools, the full-size vehicle
crash barriers and impact simulators, resulting in greater capability and precision in crash replication and analysis. The latest innovations in Anthropomorphic Test Dummies were also added
to the testing fleet to support child safety development in frontal and side crashes, as well as adult safety in lateral crashes.
In addition, vehicle safety system performance in real world collisions is analyzed, with results leading to the development of future active and passive safety systems. Also worthy of mention
is the simulation and analysis of thirty real accidents in 2013, performed by the Product Safety & Innovation team at the Pomigliano Technical Center (Italy).
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Customers / Vehicle safety / Active safety
Active safety
The best protection from crashes is to prevent them. With this in mind, the Group sets ambitious targets to develop advanced safety systems that help the driver take preventive action
and react before a crash happens. Technologies at the forefront of automotive innovation deliver driving support by monitoring vehicle surroundings and driver behavior.
Automatic warning systems like Forward Collision Warning, Blind-spot Monitoring, Rear Cross Path Detection and Lane Departure Warning detect potentially dangerous situations before
they escalate. Traction and chassis control systems, which include Hill Descent Control, Hill Start Control and Electronic Stability Control, as well as effective brake assistance systems,
which include Advanced Brake Assist, Ready Alert Braking and Rain Brake Support, provide assistance for vehicle handling.
The Autonomous Emergency Braking (AEB), available under the name City Brake Control, is an innovative system designed to avoid low-speed rear collisions with vehicles that are
stationary or traveling in the same direction. City Brake Control works at speeds of up to 30 km/h (19 mph), which means it is activated in rear collisions that generally take place during
urban driving. Another important technology that delivers driving support capability on the new Jeep Cherokee is the Adaptive Cruise Control with Stop and Go, which helps maintain
distance from the vehicle ahead and, under certain conditions, can bring the vehicle to a full stop without driver intervention. In addition, the Cherokee is the first Chrysler Group vehicle
available with Park Sense Parallel/Perpendicular Park Assist, which uses ultrasonic sensors to guide the driver securely into parking spaces.
Given that real-life performance data suggests that crash avoidance systems can reduce accidents by up to 27%, the Group’s engineers are evaluating and testing new active safety
solutions such as the Autonomous Emergency Braking (AEB) Inter-Urban system for speeds up to 72 km/h (45 mph) and the Autonomous Emergency Braking (AEB) Pedestrian
system to detect pedestrians and other vulnerable road users. In addition, new, built-in systems such as Intelligent Speed Control automatically detects signal and map recognition
systems to help drivers stay within the speed limit.
Customers / Vehicle safety / The thrill of Formula One on the road: safety and control
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The thrill of Formula One on the road: safety and control
Ferrari has always brought the Scuderia’s Formula One (F1) experience in the choice of materials, design and engineering into its on-road vehicle design.
LaFerrari’s chassis is built entirely in-house in Maranello alongside the F1 single-seaters using the Scuderia’s materials and production processes. A working group of GT and F1 engineers,
joined by Rory Byrne, designer of the single-seater of the Prancing Horse from 1990 to 2000, designed a chassis which provides maximum rigidity and minimum weight, while working
to make the passenger compartment as secure as possible.
The tube is made of T800 fabric, which ensures energy absorption along the established lines of force, while T100 fabric is used in areas that are important for passenger compartment
protection, such as the doors and sills. Structural elements of the body are made using M46J carbon-fiber which is extremely rigid, but lightweight. For the underbody, carbon-fiber is
combined with another specialist composite material Kevlar ®, which is a super high-strength material used to protect the carbon structure from road debris damage.
In addition, in terms of electronic management, Ferrari 458 Speciale marks the world debut of Side Slip Angle Control (SSC) and an upgrade of the F1 traction control logic. SSC
instantaneously calculates the car’s side slip angle, comparing it with reference data: torque management is optimized while differential torque is distributed more efficiently. It helps reach
top car performance making driving all the more thrilling as well as allowing for more manageable oversteering.
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Customers / Vehicle safety / Passive safety
Passive safety
The architecture of Group vehicles includes energy-absorbing front ends and, in the most recent launches, third load paths that are crucial to lengthening the crushable zone and
reducing the force of inertia. In head-on collisions, these features contribute to protecting front-seat passengers involved in the crash. In addition, multistage driver and front-seat
passenger airbags, full-length side-curtain and side-thorax airbags as well as Active Seat Belt Load Limiters further minimize the risk of injury and protect vulnerable passengers
such as the elderly and children. To enhance child safety, an all-new custom child restraint system is offered on new Maserati vehicles in 2013 to provide proper seating for children
in the vehicle. The Group designed the system in collaboration with the Italian company Peg-Pérego to extend child safety options.
Other solutions for protecting road users include the Group’s hood architecture, designed to reduce the risk of pedestrian head injuries on impact as well as the Active Pedestrian
Protection System in the upper segments, which raises the hood in the event of a collision, increasing the amount of hood deformation and minimizing potential consequences for
pedestrians. Additional passive safety systems that are in the pipeline include enhanced restraint systems that improve adaptation to vehicle occupants, and further crashworthiness
characteristics.
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Tertiary safety
The Group is also working on tertiary safety through systems which alert emergency rescue services when there is an accident. In 2013, several initiatives have been launched.
In the NAFTA region, the new 2014 Jeep Cherokee provides vehicle occupants with the ability to connect directly with local emergency-service dispatchers or with Chrysler Group
Uconnect Customer Care by accessing buttons located on the vehicle’s rearview mirror. The service, available through the Uconnect system, can also be used for theft alarm notification,
by alerting owners via SMS or e-mail whenever their vehicles’ security alarms are activated.
In the EMEA region, the Group, through Centro Ricerche Fiat (CRF) and Magneti Marelli, continued to be actively involved in the HeERO project, aimed at launching an interoperable and
harmonized eCall system. Co-funded by the European Commission, the goal of the eCall system, which will be mandatory on all new vehicles in Europe by the end of 2015, is to save up
to 2,500 lives each year and reduce the response times of emergency services following an accident by up to 50%.
In addition to Magneti Marelli and CRF, Italy is represented in the HeERO project by the Office of the President of the Council of Ministers, Telecom Italia, AREU (the emergency and rescue
service of the Lombardy Region) and the Automobile Club of Italy (ACI).
The Italian pilot project is unique because it implemented and tested the eCall system on an end-to-end real chain and not in a simulated one. For example, the eCall emergency control
center is supported and managed by the Italian emergency call center in Varese. This is Italy’s first example of a level-1 PSAP (Public Safety Access Point) that fully meets the standards of
the single European emergency call number 112.
In 2013 the on-board devices developed by Magneti Marelli were installed in vehicles of ACI members who participated in the operational tests. In addition, CRF helped develop a prototype
vehicle to test the emergency call service.
The results of the HeERO project were officially presented in Bucharest in November 2013. The event was held under the sponsorship of the European Commission in cooperation with
ERTICO (the network of Intelligent Transport Systems and Services stakeholders in Europe – project coordinator), and the European Emergency Number Association (EENA). Moreover, the
results from the Italian test site were presented in Turin in September 2013 at the first conference of Smart Mobility World, dedicated to Smart City and Green Mobility issues.
Centro Ricerche Fiat is also designing and developing new services based on the eCall system to fully exploit its telematics potential. In association with Telecom Italia, CRF is creating
technological solutions for advanced driver assistance systems aimed at enhancing the standard eCall (e2Call), and providing information on road and traffic hazards by using Road Safety
Information Services (RSIS) for more efficient driving.
Also in the field of tertiary safety, in the EMEA region the Group is working on the draft of the new ISO standard for emergency rescue sheets.(1) These sheets provide information to rescue
teams or first responders of special design elements and the position of components to be considered when extricating the occupants of vehicles involved in an accident. Currently, the
standard is being voted on, and the Italian version is being drafted in collaboration with the Italian National Firefighters Department.
Finally, the Group also offers safety systems, such as the Event Data Recorder (EDR) and the Enhanced Accident Response System. The main purpose of the EDR is to record data
that helps to understand how a vehicle’s systems performed in actual crashes or close calls. The EDR is designed to record data related to vehicle dynamics and safety systems for a short
period of time. This type of data can help provide a better understanding of the circumstances in which crashes and injuries occur. Additionally, the Enhanced Accident Response System
(EARS), makes it easier for emergency rescue personnel to see and reach vehicle occupants in the event of an accident by automatically turning on the interior lighting and unlocking doors
when the airbags deploy. It even shuts off the flow of fuel to the engine.
Rescue sheets are available for all models in the customer service area of the brand websites in the EMEA region.
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Customers / Vehicle safety / New horizons of safety
New horizons of safety
In the coming years, the Group will continue its research on accident prevention through vehicles that detect hazards and support the driver when maneuvering.
In 2013, Centro Ricerche Fiat took part in an experimental program – the first real-life trial in Europe – using applications based on cooperative systems and vehicle-to-vehicle and
vehicle-to-infrastructure communication (V2X systems).
Some of the various functions under study were: road construction alert; ambulance or motorcycle approaching; sudden traffic jams; slowdowns caused by slow vehicles; and static and
dynamic road signs. This large-scale test, now underway in many European Union member states, is yielding results that are paving the way for the first implementation of these functions
in vehicles.
Additional activities to develop and conduct experiments on V2X communication systems have also continued as part of the IoTToI research project, i.e., Internet of Things, road Traffic
over Internet. It is funded by the Piedmont Region and coordinated by Magneti Marelli. In December 2013, a demonstration was held in Turin with the aim of proving some of the
potential safety benefits. Through the use of cars, Road Side Units (RSU) equipped with V2X and a Traffic Control Center (CCT) for data processing, scenarios were chosen to show
that the deployment of V2X can assist drivers through a specially-designed human-machine interface (HMI) by signaling in advance potentially dangerous events that are not yet directly
visible. The V2I and V2V demonstration was a success because it provided tangible evidence of the ability of similarly-equipped vehicles to recognize one another. The demonstration also
increased understanding about the type of information that can be transmitted, including the unique identifier on the network (UID), the position and velocity. The demo was set up with the
collaboration of the IoTToI project partners: Istituto Superiore Mario Boella, Politecnico di Torino, CSystem, Ivrea Sistemi, Hicare Research, and Capetti Elettronica, all of which are leading
players in the field of research and new technologies.
While establishing advanced methods, technologies and systems for driver-vehicle interaction that prevent road accidents and reduce polluting emissions, the Group participates in
the DRIVE IN2 – DRIVEr Monitoring: Technologies, Methodologies, and IN-vehicle INnovative systems for a safe and eco-compatible driving project. This project is in collaboration with
universities and other research institutes including (CNR – Istituto Motori, C.R.F S.C.p.A, Medic4all S.p.A., TSEM Research S.r.l., Megaris S.r.l, University of Naples Federico II, Catanzaro
University, Suor Orsola Benincasa University of Naples and Salerno University). The project has proven effective due to its multidisciplinary approach, and is currently developing devices
for acquiring data on the driver’s vital signs. For example, one device, Alcohol Interlock, can detect the driver’s blood alcohol content. Other devices can monitor vehicle passenger activity,
like In-vehicle Child Monitoring which detects children inside the vehicle, and still others monitor the way the vehicle is being driven or choice of route.
Vehicle-driver interaction is intended to promote more conscious driving by intervening in driver decisions and behaviors.
The Group also participates in the APPS4Safety – Innovative methodologies and technologies for an integrated approach to vehicle safety project with the specific goal of analyzing vehicle
safety system performance in relation to collisions that are not evaluated in ratings or type-approval procedures. This will assist in addressing the new 2015-2016 ratings protocols and help
set priorities for developing tomorrow’s active and passive safety systems. In addition, statistics gathered from accidents enables us to evaluate new systems to aid in driving, such as AEB
Pedestrian (emergency braking in urban or suburban settings). The Group is currently working on solutions of this nature with universities as well as law enforcement agencies.
Lastly, the Group collaborates with other automotive companies to enhance the driving experience and develop future technologies. For example, in 2013 the Centro Ricerche Fiat, within the
AdaptIVe and AutoNet2030 project, started the first pre-competitive research partnerships in Europe with BMW, Daimler, Opel, PSA, Renault, Volvo Cars, Volvo Technology, Ford, Bosch,
Continental, Delphi, Hitachi and other prestigious European research centers, to create automatic driving systems in different traffic situations.
Customers / Vehicle safety / Roadmap of safety and security systems
Interactive
Roadmap of safety and security systems
Already available
In the pipeline
Innovation
TIRE PRESSURE MONITORING
ADAPTIVE FRONT LIGHT SYSTEM
AUTO HIGH BEAM
ADAPTIVE CRUISE CONTROL
REAR CAMERA WITH DYNAMIC GRIDLINES
SPEED LIMITER
HANDS-FREE BLUETOOTH CONNECTIVITY
VOICE CONTROL
SEMI-AUTOMATIC PARKING
PERPENDICULAR-PARALLEL SEMI-AUTOMATIC PARKING
PADDLE SHIFTER
ROLLOVER DETECTION
HILL DESCENT CONTROL
HILL START ASSIST
TRAILER SWAY CONTROL
ADAPTIVE CRUISE CONTROL STOP & GO
LANE DEPARTURE WARNING
FORWARD COLLISION WARNING
BLIND-SPOT MONITORING
FULL LED FRONT HEADLAMPS
911 CALL
SMS DICTATION
REMOTE SERVICES
ACTIVE SAFETY NAVIGATION SUPPORT
BIRD’S EYE VIEW CAMERA
DRIVING NAVIGATION ASSISTANCE FEATURES
CONSUMER DEVICE CONNECTIVITY FEATURES
DRIVING IMPROVEMENT INCENTIVE FEATURE
DRIVER HELP FEATURE
DRIVING SUPPORT BASED ON CONNECTED VEHICLE
REVERSE DRIVING ASSISTANT
DRIVER DISTRACTION MITIGATION
ATTENTION ASSIST
AUTONOMOUS VEHICLE
DRIVER WORKLOAD REDUCTION HMI
SAFE & ECO-DRIVING INTEGRATION
LANE CENTERING
ECO ADAPTIVE CRUISE CONTROL
INTELLIGENT SPEED CONTROL
TRAFFIC JAM ASSIST
PARENTAL AWARENESS FEATURES
VEHICLE RELATIONSHIP MANAGEMENT FEATURE
AUTONOMOUS EMERGENCY BRAKING INTER-URBAN
ADVANCED AUTOMATIC PARKING BRAKE
ACTIVE BLIND SPOT ASSIST
PEDESTRIAN DETECTION WITH ACTIVE BRAKING
SCENARIO RECONSTRUCTION FOR COLLISION PREVENTION
PRE-COLLISION ENHANCE
NARROW OVERLAP CRASHWORTHINESS
WINDSHIELD BAG FOR ACTIVE PEDESTRIAN PROTECTION SYSTEM
ADVANCED EMERGENCY CALL FEATURE
ENHANCED E911 FEATURE
ADAPTIVE VOLUME AIRBAGS
Driving support
Collision avoidance
ELECTRONIC STABILITY CONTROL (ESC)
REAR CROSS PATH DETECTION
AUTONOMOUS EMERGENCY BRAKING URBAN
EMERGENCY BRAKE LIGHT
ELECTRIC HAND/PARK BRAKE
Q2 (SELF-LOCKING DIFFERENTIAL SYSTEM)
TRACTION PLUS
ELECTRONIC ROLL MITIGATION
FORWARD COLLISION WARNING WITH BRAKING
ADVANCED BRAKE ASSIST
FRONT AND REAR PARK ASSIST
READY ALERT BRAKING
RAIN BRAKE SUPPORT
REAR PARK ASSIST WITH BRAKE PULSE
Damage mitigation
KNEE AIR BAGS
ACTIVE PEDESTRIAN PROTECTION SYSTEM
AUTONOMOUS EMERGENCY BRAKING URBAN
ROLLOVER EJECTION MITIGATION
FIRE PREVENTION SYSTEM (FPS)
REAR SEAT SIDE AIRBAGS
ACTIVE SEAT BELT LOAD LIMITING
ELECTRIC VEHICLE SAFETY
ACTIVE AIRBAG VENTING
SERVICE AND QUALITY DATA FEED (SQDF)
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GRI-G4 PR1
Customers / Vehicle safety / Safety ratings
Safety ratings
Our approach to designing and developing vehicles that support the driver, minimize the risk of collision and mitigate damage when there is a crash, continues to receive recognition
across the industry. In 2013, the Maserati Ghibli was awarded two prestigious international ratings for safety. In Europe, the Ghibli achieved a Euro NCAP(1) 5-star rating and earned
the “best in class” designation from Euro NCAP in its category. In addition, in the US, the Ghibli was first in every safety category of the 2013 Top Safety Pick rating, issued by the
Insurance Institute for Highway Safety (IIHS).
The Jeep Cherokee also achieved an overall Euro NCAP 5-star safety rating and was recognized as “best in class” in its category from Euro NCAP. And, as evidence of the Group’s
attention to vehicle design in all markets, the Fiat Panda also received an ANCAP 5-star rating in Australia.
In the US, the IIHS recognized the Dodge Dart, Dodge Avenger and Chrysler 200 sedan as “Top Safety Picks” for 2014. In addition, the Jeep Grand Cherokee 4WD was awarded
the National Highway Traffic Safety Association (NHTSA) NCAP 5-star rating and the Jeep Grand Cherokee 2WD and Jeep Compass received a 4-star rating.
The Fiat City Brake Control received the 2013 Euro NCAP Advanced award for its application on the Fiat Panda and Fiat 500L. This feature integrates three functions: Autonomous
Emergency Braking (AEB), Prefill and Brake Assist. The 2013 Euro NCAP Advanced recognition identifies automakers that make new safety technologies which demonstrate a
scientifically proven benefit for consumers and society. This important acknowledgment confirms the Group’s commitment to designing and manufacturing vehicles that achieve high
performance levels both in real life and in safety crash tests.
Euro NCAP rating (2)
Fiat Group Automobiles
Maserati Ghibli (4) (2013)
Jeep Cherokee (4) (2013)
Fiat 500L(4) (2012)
Fiat Freemont(4) (2011)
Lancia Thema (4) (2011)
Alfa Romeo Giulietta (4) (2010)
Alfa Romeo MiTo (2008)
Lancia Delta (2008)
Fiat 500 (2007)
Fiat Bravo (2007)
Fiat Grande Punto (2005)
Fiat Panda (4) (2011)
Lancia Voyager(4) (2011)
(4)
(5)
(1)
(2)
(3)
Rating
5 star
5 star
5 star
5 star
5 star
5 star
5 star(5)
5 star(5)
5 star(5)
5 star(5)
5 star(5)
4 star
4 star
Adult
Occupant Score
Child
Occupant Score
Pedestrian
Protection Score
Safety
Assist Score(3)
95%
92%
94%
83%
83%
97%
98%
93%
94%
89%
91%
82%
79%
79%
79%
78%
82%
77%
85%
59%
67%
57%
73%
71%
63%
67%
74%
67%
65%
50%
59%
63%
50%
42%
39%
44%
53%
49%
47%
81%
74%
71%
71%
71%
86%
43%
71%
European New Car Assessment Programme.
Rating for vehicles in the Fiat Group Automobiles range launched from 2005 onwards. For detailed information on the Euro NCAP system, see www.euroncap.com
Category introduced for new Euro NCAP rating system since 2009.
Scores based on post-2009 Euro NCAP rating system.
Stars assigned according to adult vehicle occupant protection level (pre-2009 Euro NCAP rating system); percentage scores are index-linked based on pre-2009 Euro NCAP rating system.
GRI-G4 DMA; PR3
Customers / Vehicle safety / Safe use of products and services
Interactive
Safe use of products and services
The Group provides relevant information on vehicle safety through several channels, including in owner’s manuals and on brand websites. This information covers a range of topics
such as vehicle features, maintenance schedules and driving behavior.
To highlight the importance of this issue, specific sections are regularly added to owner’s manuals. Safety inspections continued to be part of Summer and Winter Check-Up programs,
including special offers on the purchase of parts related to vehicle safety, and six months free roadside assistance in Europe. Correct diagnosis and maintenance increase vehicle
efficiency, resulting in lower fuel consumption as well as safety system integrity. With this aim in mind, Magneti Marelli continues to offer advanced remote diagnostic services.
Through an extensive and well-structured Service Network (the Magneti Marelli Checkstar Service Network), Magneti Marelli is able to provide a range of maintenance and repair services.
In addition to its expertise in after-sales services, Magneti Marelli provides solutions for telediagnosis. The Telematic Box (1) provides access to the on-board network and enables the
telediagnosis service. This service minimizes the impact of malfunctions, reduces vehicle downtime, lowers costs and ensures service efficiency. In 2013, Magneti Marelli identified strategic
partners to work with in order to provide its clients, in particular fleets and insurance, with access to EOBD (European On Board Diagnosis) data. In 2014, the first pilot fleets will be activated.
Telematic applications are spreading in the aftermarket in the insurance sector and fleet management, in advance of the date the eCall regulation goes into effect. These aim at improving
driving safety and fleet circulation, while curbing insurance fraud cases.
Because technology is not the only way to save lives, the Group has also developed an array of courses on safe driving aimed at improving driver behavior and control over the
vehicle.
Alfa Romeo Alfa Romeo has for years been at the forefront of promoting safety, accident prevention and driver education through driving classes organized in collaboration with the Dorado International
Safety Driving Center, headed by former Formula One champion Andrea de Adamich. The latest initiative has been extended to offer two different programs, Evolution Driving and Sports
Driving. The courses, which are aimed at improving driving ability and vehicle control, involve a series of theory lessons and practical exercises. Specifically, participants complete an
instructive/dynamic course in two parts: reactive driving, to improve vehicle control in emergency situations, and active driving, to learn how to anticipate critical situations.
Abarth The Abarth brand also promotes safe sports driving by teaching techniques that combine safety with driving pleasure through dedicated driving courses, provided in 2013 by the Abarth
Driving Academy.
In addition, for the third year in a row, the brand organized the Make It Your Race contest for aspiring race drivers. The project, primarily aimed at young people, is focused on promoting safe
and responsible driving. Of the more than 50,000 who applied from 11 countries across Europe, 28 had the opportunity to take part in an advanced driving course while 14 participated in
an intensive boot camp in Italy, becoming real race drivers and obtaining their racing license from the Commissione Sportiva Italiana (ACI-CSAI).
Telematic Box incorporates a phone module to connect to cellular communication networks, a multi-constellation satellite positioning unit (GPS, Galileo and Glonass) and a 3-axis accelerometer to detect the vehicle’s acceleration and braking parameters.
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Customers / Vehicle safety / Safe use of products and services
Ferrari Finally, to give customers the opportunity to fine-tune their Granturismo skills, since 1993 Ferrari has been offering Pilota Ferrari driving courses in Maranello (Modena) and other closed
circuits in Italy, with courses subsequently added in the United States and China. In 2013, a wide range of courses was conducted: Sport, Advanced, Evolution, Challenge, Scuola Piloti
Challenge, Limited Edition and Corso Pilota On Ice.
Maserati Maserati also organizes safe sports driving courses under the supervision of professional drivers. Open to both aspiring and current owners, these classes are a blend of theory and practice
which allow participants to familiarize themselves with Maserati vehicles and perfect on-track driving technique in a safe environment. The advice from Maserati’s trainers and the on-circuit
experience will help promote safer on-road driving and the ability to successfully manage emergency situations.
Chrysler Group Finally in 2013, Chrysler Group offered teen driving classes for children of employees in conjunction with the US Michigan State Police. This event, Road Ready, is designed to enhance the
skills they learned in driver’s training by simulating real-world, potentially dangerous driving situations in order to improve their on-road skills.
In an effort to minimize the risk of distracted driving, the Group’s Human Machine Interface (HMI) team continues to work on new connectivity features aimed at keeping the driver’s eyes
on the road and hands on the wheel. The Group enhanced the voice command recognition which enables hands-free operation of phones and media players.
The 2014 Jeep Cherokee, Ram lineup and Dodge Durango offer all-new Voice Texting, a real-time free-form voice dictation for composing messages or responses. In addition, phone
connectivity leverages existing features provided by Text-to-Speech and Voice Recognition, which announces new text messages with the contact name and reads incoming text messages
received on the phone.
GRI-G4 PR5
Customers / Customer experience
Interactive
Customer experience
To ensure strong and global management of customer activities worldwide, dedicated Customer Care functions have been established in all four operating regions, NAFTA, EMEA, APAC
and LATAM, to:
n offer multichannel interaction
n increase customer satisfaction
n build and improve customer loyalty.
Customer Contact Centers (CCC), together with dealers, are the main channel of communication between customers and the company. There are 26 Contact Centers worldwide, with
roughly 1,000 agents handling more than 9 million customer contacts per year.
The Group’s Head of Mopar Service, Parts and Customer Care, is globally responsible for the Mopar brand and its Customer Contact Centers. The Head of Mopar is also a member of the
Group Executive Council (GEC) and reports directly to the Fiat S.p.A. Chief Executive Officer (CEO). This represents the greatest possible commitment to customer management. The GEC
is in fact responsible for reviewing the operating performance of the businesses, setting performance targets, making key strategic decisions and investments and sharing best practices.
To enhance global coordination of activities, in 2012 a study was conducted to evaluate a common customer care platform, to leverage best practices and move toward an even more
standardized process across regions. The first step in this effort was the identification of the Customer Relationship Management (CRM) platform to manage customer care processes
around the world, gradually replacing individual local systems.
The first region to adopt the system was APAC, which completed the roll-out and deployment of the new processes in India in the first half of 2013. In 2014, this activity will be expanded
to the Fiat and Chrysler brands in China and Korea, with the remainder of APAC anticipated in 2015. The project is scheduled to begin roll-out in LATAM in 2014. A cross-regional project
steering committee is in place to ensure global alignment of strategies and process convergence. NAFTA and EMEA are scheduled to join the CRM project, which is expected to be
completed by 2020.
The CCCs offer a variety of services including information, complaint management and, in some locations, roadside assistance.
Customer Contact Center Activities – 2013
EMEA
NAFTA
LATAM
APAC
Contacts managed (million)
2.7
5.1
1.2
0.2
Customers participating in satisfaction surveys
9%
5%
19%
5%(1)
Satisfaction index (scale 1-10) Information
8.2
8.3
8.6
8.6 (1)
Satisfaction index (scale 1-10) Complaints
7.0
6.6
7.0
6.4(1)
% of calls within 20 seconds
80%
83%
90%
Information: cases settled in a single call
90%
96%
92%
92%
cases settled within
average 7 days 60%
settled within 5 days
average 4 days
84% settled within 5 days
average 6 days
66% settled within 5 calendar days
average case
settled time N/A;
73% settled within 5 business days
Complaints: average settled time and
% cases settled within 5 business days
Figure based on South Korean data only.
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93%
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Customers / Customer experience
The main CCC in the EMEA region is located in Arese (Italy), which supports not only Mass-Market and Premium Brand and Maserati customers, but also FGA Capital and Fiat Services in
20 countries and is one of the largest such centres in the European automotive sector.
The EMEA CCC provides multilingual support with a strong focus on employing native speakers of each of the 17 different service languages. With 362 personnel, the EMEA region Customer
Contact Centers handled approximately 2.7 million contacts in 2013. As a results of the Customer Care process experience in the EMEA region and the excellence in CCC performance
management, in 2013, Fiat Group Automobiles was awarded the “Best Customer Care of the Year” by Viséo Conseil in the Car Maker category in France.
The NAFTA region CCCs, located in the US, Canada and Mexico, and handle incoming customer contacts of all Mass-Market and Premium Brands through separate and dedicated brand
teams. These teams also provide special attention during new model launches. Additionally, selected sites provide support to dealers on various topics.
The NAFTA CCCs handled approximately 5.1 million customer contacts in 2013 with 457 personnel. Both the EMEA and NAFTA Customer Contact Centers manage the entire process, from
the first contact with the customer until a response has been given, ensuring resolution in the shortest possible time.
With respect to the other operating regions, in LATAM the Group has six Customer Contact Centers. The centers handled around 1.2 million customer contacts per year in Portuguese and
Spanish, through 170 professionals. In addition to the CCCs and to ensure a local and culturally appropriate response, Fiat has established a specialized structure in its eight regional offices
in LATAM which handle complaints related to the dealer network. In 2013, the Customer Contact Center in Brazil received recognition for its success, ranking best in the automotive industry
in the Excellence Award on Customer Service, promoted by Consumidor Moderno magazine, the main publication specializing in Brazil call centers. In addition, it received the IBRC/Exame
Award, organized by the Brazilian Institute of Customer Relations in partnership with Exame Magazine, the primary Brazilian publication on the economy.
The countries within the APAC region are very diverse in terms of culture, language, vehicle population and automotive industry penetration. To respond to these regional differences, the
current customer care strategy is for each main country, i.e., India, China, South Korea, Japan and Australia, to have its own CCC. In 2013, the APAC Contact Centers globally managed
about 181,000 customer contacts with 38 agents covering the full range of Fiat and Chrysler Group brands.
Furthermore in APAC, the Group is increasing its CRM activities in response to its growing presence in the region and to enable the move to the common Customer Care platform. In
April 2013, India became the first country within the APAC region to roll-out the Siebel Global CRM platform and enhanced Customer Care process. It now collectively handles over
50,000 inquiries a year. As a result, complaint levels were reduced and the Net Promoter Score, which measures customer satisfaction, improved.
In order to continue improving CCC operators’ skills, training was conducted in 2013 across all regions. Not including new hire training, EMEA personnel received approximately 41 hours
of training per person, 33.5 in NAFTA, 27 in LATAM, and 14 in APAC. In India alone, the 14 CCC operators received 100 hours of training each in order to expedite the transition to the joint
Customer Care platform.
GRI-G4 PR5
Customers / Customer experience / Customer feedback
Interactive
Customer feedback
Customer feedback and opinions are monitored on an on-going basis regarding satisfaction with their vehicle, dealer and ownership experiences. Regional programs are in place to evaluate
these events, as well as how likely customers are to recommend a dealer or a brand to family and friends.
In the US, the Customer Promoter Score (CPS), an internal monthly tracking system, surveys customers at several points during the first three years of ownership through a combination of
time-triggered and event-triggered transactions. Expressed on a scale of zero to ten, the answers allow customers to be broken down into three categories: promoters, passive customers
and detractors.
Similar to CPS, Fiat Group Automobiles in EMEA uses the Net Promoter Score (NPS) to evaluate customer satisfaction throughout the vehicle sales and service experience.
In the US, to assess customer satisfaction with their service experience, customers are contacted within their first year of ownership immediately after their first warranty service visit or the
first time they pay for service. Additionally, surveys are sent to customers who have dealership service visits later in the ownership cycle.
The primary questions related to the customer’s dealership service experience include:
n How would you rate your satisfaction with your most recent experience at the dealership?
n Were all your service needs completed correctly on the first visit?
In 2013, more than 700,000 responses were received from US service customers. Owners are able to complete the survey by phone or email.
In the EMEA region, Fiat Group Automobiles developed the Customer Feedback Sales and Service program to manage customers and help dealerships improve customer satisfaction. In
2013, it was expanded to 19 markets in Europe.
Specifically, Customer Feedback aims to:
n provide feedback to dealerships and service points to improve their organizations and processes that have an impact on customer experience
n incorporate the results of the Net Promoter Score to provide additional customer input and improvement opportunities.
In 2013, FGA expanded the customer management processes at repair facilities by gauging the satisfaction of vehicle owners regardless of whether their vehicle is covered under warranty
or not. By doing this, the program provides useful input to manage all business at repair facilities.
FGA developed a new reporting tool called Customer Feedback Web Report available to markets so they can easily use the results. It also allows users to gain a better understanding of
customer opinions.
Finally, because customer wants and needs continue to evolve, in 2014 a new, digital way to keep in touch with customers will allow them to complete the questionnaire at their convenience:
by phone, email or smartphone.
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Customers / Customer experience / Communication with customers
GRI-G4 PR5, PR8
Communication with customers
One way to better understand a customer’s perspective is to create a customized on-demand channel of communication.
In order to create a connection between the dealer network and customers, the Group launched an innovative platform in Italy in 2013 that offers valuable information to put Mopar in touch
with customers. The Mopar Owner Center is a digital platform dedicated to Fiat-Chrysler owners within the Fiat, Alfa Romeo, Lancia, Fiat Professional, Abarth and Jeep website. It will be
implemented in all European countries by the end of 2014.
The website provides customers with information on:
n original parts and how to personalize their vehicles
n direct access to all Customer Care channels
n warranty and maintenance plans
n the roadside assistance services
n a direct link to the virtual stores
n a complete list of authorized dealerships and service centers.
The site also allows owners to find individual vehicle advice, dedicated tools and exclusive promotions for their vehicles.
By entering the Vehicle Identification Number (VIN code) and additional information about city and highway driving patterns, monthly average miles or kilometers driven, etc., the Mopar
Owner Center offers suggestions and specific reminders to properly maintain the vehicle.
To increase communication in 2013, Fiat Group Automobiles (FGA) enhanced the Mobile Customer Care program, which enables customer-to-company interaction through the latest mobile
channels, including iPhone and iPad. This channel achieved more than 280,000 downloads for seven brands. The channel expanded with a dedicated iPad application “Lancia Everywhere
Tablet,” while Norway and Finland were added to the covered countries of the Fiat Camper mobile app. The Mobile Customer Care program currently reaches 17 EMEA markets.
After-sales functionality for this program provides additional support to customers with content such as “Frequently Asked Questions,” “Methane-LPG filling stations” and “Warranty and
Maintenance.” The “Augmented Reality” technology was also applied to apps in order to give customers a new and exciting experience on Fiat, Alfa Romeo, Lancia and Jeep vehicles.
Product catalog and advertisements for the Fiat 500L and 500L Trekking, Lancia Ypsilon Momo Design, Alfa Romeo 4C and Jeep Grand Cherokee were developed using multimedia content
on the apps.
In 2013, Fiat Group’s focus on social media was further strengthened. The Customer’s “Social Listening” process has been extended to cover all 4 Brands on Italy market and 2 Brands
in Germany and France, while for the engagement activity program involves the Arese Customer Contact Center manages messages received via Twitter through the @FiatCareIT,
@AlfaRomeoCareIT, @IamJeep and @LanciaEverywhere accounts. From 8 a.m. to 8 p.m. Monday through Friday, a dedicated team of agents responds to information and assistance
requests received from public or private messages.
In the second half of 2013, social media activity for Fiat and Alfa brand customers was further extended to include forums, such as Facebook. In 2014, Customer Care will extend social
media services to other brands, markets and social networks.
Similarly, Chrysler Group launched its Customer Care Social Media program in 2011 with program expansion in 2012 and 2013. It is currently active on more than 20 defined websites
focused on high volume/high velocity forums where customers are looking for support with their ownership experience. In 2013, approximately 2400 unique customer engagements took
place through this program. In 2014, Mopar’s Customer Care and Marketing social media efforts will be combined in order to leverage additional opportunities for engaging the customer.
Existing Customer Care initiatives will continue expansion to additional sites and forums to provide support to customers across all Group brands.
GRI-G4 PR5
Customers / Customer experience / Customer-centered services and products
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Chrysler Group launched its Vehicle Information mobile application program in 2010 with 26 individual vehicle mobile applications. Program enhancements have simplified the customer
experience by enabling the customer to download one single app regardless which Chrysler Group vehicle or vehicles they currently own. This simplification takes up less bandwidth on
their phone while offering increased functionality including a parking meter reminder and timer. In 2014, expected improvements will continue to simplify the mobile experience for owners.
In LATAM, the CRM and Customer Care departments regularly monitor the main company social media channels for comments regarding Fiat Group or its products. The comments are
evaluated, and if appropriate, a case file is opened. Depending on the topic, contact is made with the customer to achieve a resolution.
Customer-centered services and products
Customer-centered services respond to owner expectations and provide added value related to their ownership of Group products.
In order to increasingly meet customer requirements during 2013, Chrysler Group increased the number of dealers offering express service by 16% over 2012, which significantly reduces
the time required for routine maintenance such as oil change, tire rotation and multi-point inspection.
In addition, in 2013, dealers offering Saturday service hours increased by 2% in the US, for a total of 80.6% of the dealers. Accordingly, in order to support dealership needs, Chrysler Group
also expanded both Mopar parts distribution and customer service hours.
The focus in 2014 and beyond will be to further increase the number of North American dealerships offering express service and extended service hours (nights and weekends).
As important as it is to serve customers directly, the Group also believes that it is just as vital to work behind the scenes to ensure that customer needs are met. For this reason, six areas
were identified within the Mopar Brand Organization to drive integration and alignment of business processes in support of the ongoing convergence between product development and
distribution. These six areas are Brand Management, Service Contracts, Technical Services, Supply Chain, Customer Care and New Business Development. A lead was assigned to each
area to drive convergence in alignment with the priorities of the respective region.
To deliver the quality of service that customers expect, Chrysler Group has expanded offerings of high-quality remanufactured parts. These parts offer alternatives to dealers and customers
that simultaneously reduces the cost of vehicle ownership and the volume of salvageable materials heading to landfills. The selection of remanufactured options includes more than
4,000 unique parts, 200 of which were added in 2013, and includes remanufactured brake calipers, starters and alternators, electronic control modules, steering and suspensions, air
compressors, as well as engine and transmission product categories.
Chrysler Group launched the wiADVISOR dashboard for US dealerships during the fourth quarter of 2012 to further enhance the experience of dealership service for customers during
the write-up process. The tool is designed to provide a seamless, portable method to support the interaction between the service advisor and the customer in the service write-up area.
It integrates several Chrysler Group systems and many third-party service write-up resources into a single, web-based user interface displayed on a tablet. During the 3rd and 4th quarters
of 2013, a pilot was conducted with wiADVISOR Product Specialists to provide on-site in-dealership training to maximize the benefits of the tool. As of December 2013, 52% of Chrysler
Group’s US dealer network is enrolled in wiADVISOR. Dealers utilizing this product enhance the customer experience by educating the owner about their vehicle, building trust and providing
transparency of services that are recommended to properly maintain the vehicle.
The tool can offer basic vehicle diagnostics, vehicle and mileage-specific factory-required maintenance with pricing, as well as complete vehicle service history and inspection results.
An even greater level of on-site in-dealership support is expected in 2014.
The wiADVISOR dashboard for EMEA dealerships was developed in Italy, where it was launched in 2012. Since the first pilot, the wiADVISOR application has continued to grow as a result of
the experience gained in the Italian market. The application meets the needs of customers during vehicle repair by improving the process and reducing the overall time spent in the service
center as well as the total amount of paper used for printing.
As of December 2013, 35% of the Group’s Italian dealer network is enrolled in wiADVISOR and Fiat Group is expanding this program to the entire EMEA region.
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Customers / Customer experience / Addressing special needs
Additionally, Mopar continued its green check up campaign, which is promoted in several countries in Europe on all Group brands. The campaign is an educational program on proper
maintenance offering a series of free vehicle checks which covers inspection of areas such as tire condition, spark plugs, air filter, exhaust, lambda probe, passenger compartment filter,
etc, aimed at reducing fuel consumption and CO2 emissions.
Another example of customer convenience in LATAM is the program that offers Brazilian customers after-sales services with related prices and Fiat Autocentro, which allows customers to
watch quick services being performed, providing transparency during the service process.
In 2013, Fiat Group also launched a pilot project for the direct sale of used cars between private individuals as a way to help customers address the economic crisis in Europe and meet their
financial and mobility needs. This innovative project, Privauto, brings supply and demand together at Group-owned dealerships with no cost to participants. In addition to providing space,
selecting the vehicles, and publishing ads on numerous websites, the Group also offers the expertise of our sales professionals who evaluate the condition of the vehicles.
In our digital age, Privauto is first and foremost a real-life place where buyers and sellers can meet on a number of occasions during the year, and touch first-hand the quality of the vehicles
for sale, all with the support of the Fiat sales network.
The Group is working not only to design and launch innovative vehicles, but also to promote efficient mobility features such as the Blue Tom Tom2 systems available on the Lancia Ypsilon,
Fiat 500, Panda, Punto, Qubo, Doblò and Ducato and Chrysler Group’s Uconnect system, SiriusXM Traffic. In addition, the Group participates in various projects dedicated to car-sharing,
such as Enjoy, where a large fleet of vehicles is provided by the Group in Italy.
Exploring issues linked to mobility of the future was the aim of a unique contest promoted by the European Automobile Manufacturers’ Association (ACEA) and the Fiat Brand, called
“Design, Future, Accessibility.” Through this initiative, Fiat launched a virtual round table and competition open to all young Europeans interested in the future of sustainable design. All of the
projects submitted to the dedicated Facebook page were evaluated by Fiat’s Style Center team according to the criteria of originality, inspiration and the capacity to foresee future scenarios.
The three winners were invited to Turin for a unique experience and to exchange ideas with Fiat’s Style Centre team.
Addressing special needs
Freedom of movement for all: this is the guiding principle of Fiat Group’s Autonomy and Automobility programs.
Since 1995, the Fiat Group Automobiles’ (FGA) Autonomy program has been providing technical solutions for people with reduced motor ability, which allow them to use any vehicle or
commercial vehicle model (Fiat, Lancia, Alfa Romeo, Abarth, Jeep and Fiat Professional). It has also sponsored sports events and trend setting activities. For individuals with disabilities,
driving is one of the major steps toward independence. For this reason, Fiat Group designs and provides technical solutions to meet a variety of transportation needs, either individual
or collective. The best evidence of the Autonomy program’s effectiveness and appeal are the 1,000 people in 2013 who benefited from the services offered by the 19 Mobility Centers
in Italy, as well as the number of Autonomy vehicles sold throughout the year in Europe and Brazil, totaling 18,770. This figure represented an increase of approximately 10% over 2012.
The Mobility Centers are run jointly with local associations and rehabilitation centers, local health authorities and the Italian Traffic Authority. They offer a whole range of services, from
advice and assistance in dealing with the administrative, legal and technical aspects of the fitness-to-drive screening assessment, to providing information on how to get a driver’s license
and test driving the specially-equipped vehicles.
Our commitment is also reflected in the many sport initiatives we participate in through the Autonomy program, which seeks to dispel stereotypes and increase freedom of mobility for all.
We are convinced that there is no such thing as “different” competitions, but only “different” skills, and that all athletes have the same desire to win and overcome any obstacle.
Since 2007, the Autonomy program has supported an exciting project called “Autonomy on the Snow,” an alpine skiing beginners course for children with disabilities, organized by the
Freewhite Ski Team at the Sestriere ski resort.
During the 2013 Italian leg of the “Para-Alpine Ski World Cup,” the Autonomy program provided the event’s organizers with a number of Fiat Ducatos adapted for transporting both the
athletes and their sports equipment.
Customers / Customer experience / Addressing special needs
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During the second “Off-Road on the Olympic and Paralympic Mountains” event, young people with disabilities were given the opportunity to experience close contact with nature in
unique and breathtaking scenery. Jeep, the epitome of outdoor life, provided vehicles that allowed participants to experience adventure in the mountains and the great outdoors, and to
independently and safely conquer nearly impassable off-road routes.
The Autonomy program and the Freewhite Ski Team share the same idea of sport, providing opportunities for people with disabilities to experience the mountains, whatever the season, to
promote inclusion, and physical and social rehabilitation.
Also in 2013, the Autonomy Program took part in the event organized by the British Embassy in Rome that continued to carry the torch of the Paralympics after the highly popular 2012
Games in London. The event brought sports, technology and new abilities into the spotlight thanks to exhibitions, debates and meetings with athletes, experts and workers in related
sectors. One of the workshops addressed access to transportation, placing emphasis on the work that the Autonomy Program has done, including association with leading companies in
the industry of specialized mobility aids.
Another Group initiative designed to improve mobility and enhance vehicle accessibility is Chrysler Group’s Automobility program. Automobility is a financial assistance program that was
launched in 1987 to help customers with permanent disabilities get in and out of, and/or operate, a new vehicle. The program helps cover up to approximately €725 of the out-of-pocket expense
for installing adaptive driver or passenger equipment on most Chrysler, Jeep, Dodge, Ram or Fiat vehicles. It also helps customers locate assessment centers and vehicle modifiers or adaptive
equipment installers to ensure new products meet their needs. Since 2000, Chrysler Group has provided approximately 89,000 Automobility Program customer assistance grants.
In 2013, Chrysler Group completed several initiatives to increase awareness of the opportunities available through its Automobility Program. Automobility displays were created for auto
shows in major markets across the United States, including Los Angeles, Chicago, and New York, to promote and better educate physically-challenged customers about the company’s
product offering and financial commitment to the program. In addition, the Automobility displays were also featured at the National Mobility Equipment Dealers Association in Orlando,
Florida and the Association for Driver Rehabilitation Specialist in Columbus, Ohio. Finally, to mark the National Mobility Awareness Month in May, the company, together with other sponsors,
donated a new Dodge Grand Caravan to a local hero to help him overcome mobility challenges.
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Customers / Transparency in communication
GRI-G4 DMA, PR3, PR4, PR5, PR6, PR8, LA9
Transparency in communication
As indicated in the Group’s Data Privacy Guidelines which are available on the Group’s corporate website, as well as in the legislation of the countries where the company operates,
maximum attention is given to processing and protecting the personal data of customers and others who contact the company. The process for managing communication with customers
is committed to respect their right to privacy.
Responsible selling practices The Group, through FGA Capital (FGAC), a joint venture (1) between Fiat Group Automobiles and Crédit Agricole Consumer Finance, facilitates purchasing a vehicle. FGAC offers its various
customer segments, private or corporate, financial services for the purchase and lease of new and used vehicles, as well as dealers with tailored products.
FGAC is committed to providing customers access to credit founded on principles of fairness, responsibility and diligence at acceptable conditions, through transparent relationships and
in full compliance with applicable regulations. In 2013, FGAC signed over 430,000 financing contracts.
Across the 14 European countries where FGAC operates, customers can rely on a full range of financial products and insurance services (e.g., Credit Protection Insurance, Car Insurance,
Extended Warranties, etc.). The products and services offered are supported by the principles that underscore the importance of using clear and accessible language.
In order to allow everyone access to responsible credit, FGAC incorporated two specific financial tools into its websites in 2012. These tools allow customers to work out the financial plans
that most suit their needs and budget.
The first tool is a financial calculator: depending on the brand and car models selected, customers are free to choose from several different funding options (e.g., financing, leasing, etc.).
The same tool, embedded into the car configurator of each brand, allows the option value to be included. In 2013, the number of quotations formulated totaled more than 180,000 (2), about
70% more than in 2012.
n The other tool, “Find Your Car”, is a simple emulator that helps customers determine the most suitable monthly payment and car model simply by entering their monthly income and
expenses. In 2013, the number of simulations more than quadrupled compared to the previous year, reaching about 26,000 (3).
n
In 2013, FGAC also launched a loyalty program, aimed at strengthening the relationship with customers and improving their overall satisfaction. The program offers renewal and vehicle
replacement opportunities through increasingly customized financial products that help reduce car maintenance costs and gain easier access to innovative and more environment-friendly
vehicles.
In 2013, FGA Capital continued its training program launched in 2012 to promote sustainability and responsible credit. Training is delivered to both internal staff and to dealership salespeople.
The training module, based on the principles of the European Coalition for Responsible Credit (ECRC), was aligned with local regulations and translated into the languages of those countries
where FGAC operates.
In the 2012-2013 period, the course, delivered through e-learning or in the classroom depending on local market needs, was completed by all FGAC employees, about 1,900 people and
approximately 9,000 salespeople in those EMEA countries where FGAC operates.
A 50/50 joint venture between Fiat Group Automobiles and Crédit Agricole Consumer Finance, which operates in 14 European markets and manages 3 lines of business dedicated to dealers, private customers and commercial customers respectively. For more
information, visit www.fgacapital.com
Source: Google Analytics (GA), a service offered by Google that generates detailed statistics about the number of hits on a website. Scope of Financial Calculator statistics: Italy, Germany, the Netherlands, Greece, Spain, and Portugal.
(3)
Source: Google Analytics (GA), a service offered by Google that generates detailed statistics about the number of hits on a website. Scope of Find Your Car statistics: Italy, the Netherlands, Greece, Spain, Portugal, France, and Switzerland.
(1)
(2)
Customers / Transparency in communication
Interactive
In 2014, FGAC plans to enhance the monitoring of its sales network, analyzing the conduct and performance of salespeople to achieve key goals, including:
n increase the ability of salespeople to communicate in a clear and transparent way
n increase the ability of salespeople to explain financial products in an increasingly detailed, tailored and easy to understand way
n collect information on customer expectations and needs to improve customer-dealer relations.
Twice a year, FGAC conducts a comprehensive Customer Satisfaction Survey to monitor customers’ level of satisfaction with financial products, salesperson behavior, and clarity and
completeness of the information provided by salespeople. In 2013, about 14,000 customers were surveyed by phone. In January 2014, the report on the Customer Satisfaction Survey will
be expanded with a section dedicated to monitoring processes and sales behavior of salespeople with specific regard to the level of transparency and correctness perceived by customers.
Ethics in communication Fiat Group adopts and fosters positive values and responsible practices in all types of communication, and knows that communication through advertising has a voice in society. In 2011,
Fiat Group Automobiles (FGA) published its guide to ethics in communication to promote a policy of responsible marketing and advertising in every market where it is present. Based on
applicable laws and advertising standards in individual countries, the guide sets out the fundamental principles that are to be applied in communication activities by all those who work in or
with FGA, such as advertising agencies. The core values underlying the guide reflect FGA’s principles of respect, honesty and responsibility. The guide was drafted in clear, straightforward
language to ensure that it could be readily understood and applied by everyone. The Group is also an active member of the Utenti Pubblicità Associati – UPA (the advertisers’ association of
Italy), which supports the Istituto di Autodisciplina Pubblicitaria (Italian institute for advertising standards), and is also a member of the European Advertising Standards Alliance.
Product and service information Numerous national and international laws and regulations governing product information apply to Fiat Group business dealings, due to their very nature. In Europe, the Group provides
consumers specific information on fuel economy and CO2 emissions. Information is provided through various channels such as posters, advertisements, websites, etc., in accordance with
the provisions of Directive 1999/94/EC of the European Parliament and Council of 13 December 1999, relating to the availability of consumer information on fuel economy and CO2 emissions
with respect to the marketing of new passenger cars. In the United States, the Environmental Protection Agency (EPA) ensures compliance with fuel economy labeling requirements on
new vehicles. The EPA, together with the US National Highway Traffic Safety Administration (NHTSA), rolled out an entirely new design for labels, appearing on vehicles starting with the
2013 model year. In addition to information about a vehicle’s fuel economy, the new labels inform consumers about energy use, fuel costs and environmental impact, including smog and
greenhouse gas ratings. Customers with smartphones can scan the QR Code on the label to access additional online vehicle information.
The Group expressly communicates other information including caution and warning messages, whether required or added as an option, through manuals (e.g., owner’s manual and
maintenance guide), labels, advertising, the dealer and service network, Customer Contact Centers, and other channels. Users are informed about topics such as the proper use of
active/passive safety features (e.g., seat belts, airbags, child seats), the vehicle’s environmental impact, correct driving habits that may affect fuel economy and emissions and responsible
disposal of maintenance materials (e.g., fluids or filters). The Group also encourages the use of low environmental impact technology and fosters safe and environmentally friendly driving
through driving courses, awareness campaigns and computer-based tools like eco:Drive, which debuted its “LIVE” version on the Fiat 500L. The system provides suggestions on how to
be more environmentally friendly at the wheel in real-time.
Fiat Group is a global automaker that sells its products or services to customers in more than 150 countries. We do not sell our products in markets where there are restrictions banning
their sale. We regularly engage in dialogue with our many stakeholders in order to better understand their expectations, needs and concerns. At the same time, no incidents of material
non-compliance were identified in products, service information or labeling.
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Business partners
GRI-G4 DMA, 2, 12, 13, EC8, EC9
We believe that working closely with our global supply chain and dealership network is crucial to achieve the high level of quality that we expect
in our products, services and operations. Establishment of partnerships, dissemination of best practices and collaboration on several topics
(technological, environmental and social) are the ways the Group engages its business partners.
Supplier profile
Suppliers are strategic allies who support our creation of successful and exciting vehicles that deliver best-in-class quality, innovation and performance to our customers. We believe that
cooperation is what makes the difference. Our supplier relationships go beyond the purely commercial sphere and include a mutual understanding of what it takes to promote
good practices and pursue responsible and sustainable development. This is demonstrated throughout the year and at such events as Group Purchasing’s Annual Meetings that
include recognition of suppliers for exemplary performance. Today, globalization requires leading supply chain management methods that ensure the widespread incorporation of
sustainability criteria in the management, training, selection and engagement of suppliers; in so doing, these practices help to limit exposure to unexpected events and supply
disruption while building long-term core competence. Group Purchasing is the Fiat and Chrysler organization responsible for supplier management by setting global purchasing strategies
as well as developing an integrated worldwide process. This organization works with peers and counterparts to integrate key environmental, social and governance considerations into its
global purchasing processes, thereby enabling responsible and sustained economic success for the extended Group enterprise.
The ultimate governance of strategy in relation to supplier management lies at the highest level of the management organization.
The Group evaluates the effectiveness of its management approach through external audits and feedback from various stakeholders. In 2013, all information related to the model for
sustainable management of the supply chain was assessed by SGS by means of a high level audit as per the AA1000 and Assurance Standard principles, which did not find any gaps in the
management approach. Further improvement is expected by continuous application of the new KPIs related to an extensive supply chain monitoring process.
Furthermore, media monitoring, stakeholder commentaries and other public information gave no reason for concern, as reported by the rating agencies responsible for assessing the
Group’s supply chain management processes.
In 2013, Group Purchasing managed approximately €44.5 billion (1) in purchases through a supply base of 2,884 companies (direct material suppliers). The top 184 supplier parents
producing roughly 57% of the total purchase value were identified as key suppliers.
Value of purchases from direct and indirect material suppliers totals roughly €55.4 billion.
(1)
Business partners / Supplier profile
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Through a formal supplier classification process, the Group identifies its strategic suppliers on the basis of the following criteria: allocated spending amount; production and spare parts
capacity; the absence of technical and commercially viable alternatives; and the percentage of Group procurement orders in comparison to the suppliers’ annual turnover.
Approximately 69% of the direct material purchase value is for plants in the NAFTA region, 19% for plants in EMEA, and 12% for LATAM. Roughly 73% of direct material suppliers are located
in NAFTA, 19% in EMEA, 3% in LATAM, and 5% in APAC (percentages refer to the monetary value of direct material purchases managed by Group Purchasing).
In 2013 the Group added 442 new suppliers, and a very small number of supplier relationships were terminated. Additionally, there were no significant changes in our supply chain’s
structure nor any notable outsourcing activities. Starting in 2014, the Group will begin to utilize our re-qualification process to monitor changes in the location of suppliers’ plants from
one country to another.
Although the Group does not purchase raw materials directly (with the exception of steel and other metals used for direct production), it monitors overall consumption and price trends.
The Group is aware of the impacts of its operations on local economies, and is therefore committed to providing equal opportunities for multicultural businesses in the selection
and qualification processes. Group Purchasing leverages its existing and long-standing supplier relationships and regularly seeks to understand and support their issues.
In general, the selection of suppliers is an operational phase of the sourcing process categorized by commodity group (e.g., direct materials; capital expenditure and indirect materials; and
services), each of which is regulated by specific procedures.
Whenever possible, we utilize local suppliers at major locations of operation (based on the amount of spending allocated) in order to generate direct and indirect income and
employment opportunities in the communities where the business is located; this also serves to minimize transport-related environmental impacts. The term “local suppliers” refers to
suppliers operating in the country where a Group plant is located. Enhancing skills and
building industrial capacity through local content favor economic and social growth for
Highlights
Group Purchasing worldwide
local communities.
2013
In addition, the Group constantly monitors and manages any critical situations arising
Direct and indirect material purchases managed by Group Purchasing (2)
in the automotive supply chain to ensure prompt detection and mitigation of potential
(% of total Group purchases)
approx. 95
disruptions. Resolution actions may entail providing support for restructuring plans and,
Direct material suppliers (no.)
2,884
Concentration of direct material purchases (% of purchases from top 184 suppliers)
57
where necessary, temporary cash-flow support with the objective of ensuring supply
Value of purchases from direct material suppliers (3) (E billion)
44.5
continuity and preserving jobs if possible. In some cases, such actions are taken jointly
Value of purchases from indirect material suppliers (4) (E billion)
10.9
with other automakers.
Refers to the monetary value of purchases managed by Group Purchasing.
Direct materials are pre-assembled components and systems used in assembly.
Indirect materials are services, machinery, equipment, etc.
(2)
(3)
(4)
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Concentration of Group Annual Purchase Value (APV) on local suppliers at major locations of operation and by emerging markets (5)
local supplier
Poland
NAF TA
54%
71%
Mexico
Brazil
L ATAM
EME A
67%
98 %
83%
93%
Purchases(6) by origin
Purchases(6) by destination
Purchases(6) by type
e
c
d
d
c
a. 38%Metals
a. 73% NAFTA
b
b. 19%EMEA
b.
c. 5% APAC
19%EMEA
(6)
c. 25% Electrical
d. 9% Mechanical
e. 1% Others
a
Refers to markets where Group plants are located (source for “Emerging Markets”: Dow Jones Indices Country classification system, effective September 2011).
Refers to the monetary value of direct material purchases managed by Group Purchasing.
(5)
a
c
c. 12% LATAM
d. 3% LATAM
a
b. 27% Chemicals
a. 69% NAFTA
b
b
Business partners / Supplier profile / Supply chain standards
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Supply chain standards
We are committed to ensure impartiality and equal opportunities for all parties involved in the supplier selection process. Suppliers are selected based on the quality and competitiveness
of their products and services, and on their respect of social, ethical and environmental principles. This commitment is a prerequisite to becoming a Group supplier and developing a lasting
business relationship with the Group. For this reason, and in order to address, prevent, and mitigate any potential impacts, contractual clauses have been progressively introduced
since 2009, and the new agreements require suppliers to comply with both the Group’s code of conduct and specific Sustainability Guidelines.
Suppliers must duly carry out business activities according to the ethical standards and procedures in force in the country/countries in which they operate, and as set forth by the code of
conduct and Sustainability Guidelines.
Should a supplier fail to follow these principles, the Group reserves the right to terminate the business relationship or require the supplier to implement a corrective action plan, to be verified
by audit. Compliance with environmental, social and governance clauses is required in 100% of new agreements (General Terms and Conditions). For the sake of clarity, the above
clauses are also included in new agreements (in addition to the General Terms and Conditions) regarding each specific project.
Supplier Sustainability Guidelines are available on the Supplier Portal and on the Group corporate website. They focus on the following principles:
n Human rights and working conditions
n rejection of the use of forced or child labor in any form
n recognition of the right to freedom of association in accordance with applicable laws
n freedom from harassment and discrimination
n safeguarding of employee health and safety
n guarantee of equal opportunities, fair working conditions, appropriate working time, equal compensation, and the right to training for employees
n
n
Respect for the environment
n optimization of the use of resources
n responsible waste management
n elimination of potentially hazardous substances from the manufacturing process
n development of low environmental impact products
n use of an environmentally sustainable logistics system
Business ethics
n high standards of integrity, honesty and fairness
n prohibition of corruption and money laundering.
Group Purchasing monitors supplier compliance with the Guidelines through a Sustainability Committee (“the Committee”). The Committee’s role is to review performance and to identify
the appropriate actions for non-compliant suppliers in order to prevent and mitigate actual and potential adverse impacts. The Committee consists of the Processes Compliance manager,
the Head of the Group Supplier Engineering Unit, and the General Counsel. The Group is committed to ensuring that all new Fiat and Chrysler purchase agreements regularly incorporate
contractual clauses on adherence to Sustainability Guidelines.
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GRI-G4 DMA, EN32, LA14, HR10, SO9
Assessing potential suppliers
In 2013, the Group adopted a new supplier assessment system which strengthened the criteria relating to sustainability. The SEA (Supplier Eligibility Assessment) identifies
suppliers’ strengths, weaknesses and capabilities to produce a product of the required quality, performance and cost, and whether a supplier has the potential to be a high-performing
supplier for the Group. The SEA is a single-purpose tool to assess those suppliers who are not currently providing parts or services for the Group. The evaluation is done through a dedicated
process assessing new suppliers or those suppliers that experienced a change in their organizational structure, location, commodity produced, manufacturing process, or technology.
The SEA may also be used in situations in which the supplier’s location has not delivered products for more than 24 months. The SEA is required well before the sourcing phase even if the
Supplier has already been assessed for other families, products, or commodities. This allows all potential new suppliers to be included in a source package. Suppliers are also required to
adopt a Code of Conduct or Code of Ethics, governing matters such as respect for human rights and anti-corruption measures, and to implement certified systems for Health and Safety
Management and for Environmental Management. Additionally, suppliers must provide evidence of the existence of process and product quality improvement processes; training courses
to expand the skills of their internal staff; and adequate and comprehensive sub-tier supplier development methods.
The SEA consists of an audit carried out at the supplier’s facility, and is generally preceded by the completion of a Supplier Data Profile. Subsequently, if required, a Gap Analysis document
may be created to define corrective actions, responsibilities, and target dates for resolution of all identified items. Twenty new suppliers were evaluated in 2013 through this process.
In general, 100% of new suppliers are evaluated according to sustainability criteria by means of the Supplier Eligibility Assessment and the self-assessment questionnaire.
GRI-G4 DMA, EN32, EN33, LA14, LA15, HR4, HR5, HR6, HR10, HR11, SO9, SO10
Business partners / Supplier profile / Supplier assessment process
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Supplier assessment process
We aim to prevent or mitigate any adverse environmental or social impacts that are directly linked to our business operations, or by products or services from a
business partner. Suppliers play a key role in our business continuity, and can significantly impact public opinion of how responsible the company is in the social and environmental
spheres. We recognize that any adverse events within the supply chain can have a direct, material impact on production and economic performance – both for the company and
the supplier – and may affect our collective reputation. In order to prevent or mitigate environmental or social impacts, we seek to preemptively leverage our long-standing and
cooperative supplier relationships.
Responsibility for supplier assessments is assigned to the Supplier Quality department and at the operational level to Supplier Quality Engineers.
In order to preempt any sourcing risks, we developed a risk map to identify critical suppliers whose compliance with sustainability criteria must be monitored. The four primary
risk drivers used to create this map were:
n supplier amount of business
n country risk associated with the supplier’s location, with particular emphasis on poor human rights records
n supplier financial risk
n sustainability history.
Manufacturing locations and commodities are also considered in the analysis. The risk map, which covers all suppliers with annual purchase volume, classifies suppliers as high-, mediumor low-risk. A score between one and three is assigned to each driver. The final score is a weighted average of the risk drivers and defines the overall level of supplier risk.
The Group then assesses supplier compliance with sustainability criteria through self-assessment questionnaires. In 2013, Chrysler Group teamed up with AIAG, other OEMs
and several suppliers to create an industry standard tool, the Supplier Sustainability Self-assessment (SSSA). This tool has a three-fold purpose: to communicate our expectations
of suppliers, to determine the level of sustainability activity within the supply base, and to create an efficient and effective tool that reduces the burden of multiple and similar information
requests received by suppliers. Chrysler Group was the first company to launch the SSSA, with other companies following their own internal timelines. A Tier 2 pilot began in the fourth
quarter will be expanded in 2014 to better understand and respond to needs within that level of the supply chain. Overall, this systematic screening through questionnaires covers
supplier operations based on environmental, labor practice, human rights and social criteria. In 2013, about 1,200 suppliers completed the self-assessment questionnaire,
representing approximately 43% of total purchase value for the year. Suppliers that completed the questionnaire scored 79/100 on average. We conduct audits if the outcome of selfassessment questionnaires requires further investigation.
Building on last year’s self-assessment questionnaires, 72 audits were performed in the EMEA, NAFTA and APAC regions (of which 38 were conducted by Group Supplier
Quality Engineers and 34 by a third party auditor). These audits did not reveal any particularly critical situations; no contracts were suspended or canceled, and no suppliers were placed
on probation. However, corrective action plans for certain areas in need of improvement were developed in collaboration with suppliers. Specifically, in 2013, approximately 143 joint action
plans were initiated for about 28 suppliers as a result of the audits. The analysis of the action plans was performed on 47 audits, while for the remaining 25 audits this will be completed
in 2014. No significant issues have arisen during these audits.
To verify performance and progress, action plans are monitored regularly. All audits are announced and coordinated with suppliers. The Supplier Sustainability Committee
established within Group Purchasing is also involved in the development of these plans. The Committee defines remedial actions, taking into consideration the impact of such actions
on the workers, the community, and more generally, on the supplier’s stakeholders. In the event of extreme cases of non-compliance, the business relationship with the supplier may
be terminated.
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Business partners / Supplier profile / Supplier assessment process
Suppliers’ levels of compliance and required action plans are reported in the Supply Quality
Performance (SQP) system. The SQP system records the outcomes of self-assessment
questionnaires and on-site audits, and divides suppliers into three groups: compliant (green
code); compliant with identified area of improvement (yellow code); and non-compliant (red
code). Results can be viewed monthly by all employees responsible for supplier management.
The SQP system updates the Bid List which indicates the quality and sustainability rating
of suppliers eligible to be quoted for a business opportunity. Bid List data are processed
in the Summary By Plan document, which gathers detailed information on quality, financial
risk and sustainability, as well as an index of World Class Manufacturing application levels
for each supplier. Final ratings are a determining factor in awarding business and can be
viewed by all Group employees responsible for supplier management.
Any significant actual or potential negative impacts requiring investigation, based on the
outcome of the 2013 self-assessment questionnaires, will be managed in 2014 through
on-site audits.
Data includes Chrysler Group for the full year.
Value of direct material purchases managed by Group Purchasing.
(1)
(2)
Self-assessment questionnaires
Suppliers sent self-assessment questionnaires (no.)
Suppliers responding to questionnaire (%)
Average score
Purchases (2) by value covered by questionnaires (%)
2013
2,051
59
79/100
43
2012
1,522
71
85/100
55
2011(1)
1,924
64
87/100
37
2013
72
38
34
5
2012
89
42
47
7
2011(1)
51
37
14
1
Audits
Sustainability audits (no.)
performed by Group personnel (Supplier Quality Engineers)
performed by a third party
Purchases (2) by value covered by audits (%)
Business partners / Supplier profile / Environment across the supply chain
Interactive
Environment across the supply chain
Suppliers are screened to verify a wide array of environmental aspects. During the inspections, the auditors verify the presence and certification of an environmental management
system. In addition, we encourage suppliers to develop in-company standards or guidelines providing direction on all topics in this area. In addition to the aspects mentioned above, our
environmental due diligence process also determines whether suppliers are adequately managing water consumption and discharge, waste (recycling and waste disposal), and the
use of recycled materials. Lastly, we stay informed on supplier engagement in protecting biodiversity, since one of the Group’s environmental missions is to preserve the variety of plant
and animal species in all areas of operation.
In working toward full compliance with REACH, our direct suppliers are required to use chemicals whose contents meet our current standards for the management of hazardous
substances as closely as possible. We also examine the supplier’s use of the LCA (Life Cycle Assessment) method.
If we discover through the self-assessment that the supply chain is causing a negative impact on the environment or has the potential to do so, the Group conducts thorough on-site audits
to examine the supplier’s environmental management methods – or lack thereof. These audits include a rigorous inspection of: proper environmental management system documents and
their mode of distribution in the work environment; the person responsible for ensuring compliance with the environmental management system; how information or training programs are
provided to employees; engagement with environmental protection organizations; goals set to improve environmental performance; and any environmental certifications in possession. In
order to prevent, mitigate or redress a negative impact encountered during inspection, a joint action plan is defined with the supplier.
Based on results of self-assessment questionnaires, 78 suppliers were identified in 2013 as creating – or at risk of creating – a significant potential negative environmental impact
specifically in the areas of greenhouse gas emissions management, environmental training, recycled and/or sustainable materials use, biodiversity and measures to verify responsible
environmental practices of their suppliers. In addition, we implemented action plans for about 17% of audited suppliers (1) (i.e., 8 action plans about the definition of a formal
Environmental Management System for 8 suppliers), as follow-up to the 2012 self-assessment process. No contracts were canceled.
We recognize the importance of supplier collaboration for improving the environmental sustainability of their products and processes, so we provide comprehensive support through a
variety of initiatives.
For example, in an effort to raise the awareness of suppliers on climate change issues, with a particular focus on the reduction of their greenhouse gas emissions, 68 suppliers
were invited to participate in the Carbon Disclosure Project (CDP) Supply Chain program in 2013. Forty-five suppliers disclosed (66% response rate), attaining an average
disclosure score of 68 and an average performance band of C. As evidence of their commitment to drive down carbon emissions, the Group suppliers that responded to the CDP
Supply Chain survey eliminated approximately 39 million tons of CO2 equivalent in 2012. The CDP Supply Chain program is an annual process that yields consistent information from
suppliers on climate and water-related strategy and action.
After a pilot with CDP Supply Chain, we are planning to work more closely with our suppliers in the coming years to increase our collective emissions reduction and climate change
mitigation efforts.
The percentage is calculated based on the number of 47 suppliers audited. The analysis of the action plans for the remaining 25 suppliers audited will be completed in 2014. No significant issues have arisen during these audits.
(1)
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Business partners / Supplier profile / Environment across the supply chain
The Group believes that water scarcity could impact business continuity and that water conservation is becoming increasingly important, involving both peers and business partners alike.
For this reason, we are consulting with selected Tier 1 suppliers on ways to develop a mutual water stewardship strategy in water-stressed areas. In addition, in 2013 we added questions
to the supplier self-assessment questionnaire specifically aimed at preventing and detecting risks related to water usage in the supply chain. The questionnaire gathers information on:
n water policy, strategy or management plan
n specific water-related targets or goals
n water policy, strategy or management plan focused on discharge water quality improvement
n quantitative data on water withdrawal, recycling/reuse and discharge
n bodies of water, wetlands or natural habitats affected by operations due to water discharge or withdrawal and
n operations located in water-stressed areas.
This collaborative approach will foster innovative thinking and will help to identify specific risk factors, forming the basis for a second-level risk map, which is a goal for 2014.
To help manage environmental aspects related to vehicles and components, the Group uses the International Material Data System (IMDS). Suppliers are required to submit detailed
information on the materials and substances used in their components through this on-line platform so that hazardous substances can be traced back to the specific component. We thus
are able to work with suppliers to reduce, control, or eliminate the hazard. A total of 88,000 data sheets were completed in 2013 for Group vehicles.
The system also covers information on recycled material content. This feature facilitates
Fiat and Chrysler Suppliers – CDP Supply Chain summary results
the analysis of raw and recycled material consumption trends, as well as the evaluation
Average supplier response rate: 66%
of the environmental implications of replacing certain materials or substances, thereby
39 million tCO2eq of emissions reduced
enabling recyclability and recoverability calculations.
€325 million was saved as a result of emissions reduction initiatives
Suppliers are therefore involved in product development; the Group has a general
91% of suppliers who responded integrate climate change into their business strategy
quality specification under all supply contracts indicating every material’s adherence
76% of suppliers who responded have emissions reduction targets
to environmental, health and safety requirements, including ingredients, formulas’
87% of suppliers who responded report emissions reduction initiatives
38% of suppliers who responded propose collaboration projects
ingredients and handling procedures where relevant.
GRI-G4 DMA, EC8, LA14, LA15, HR4, HR5, HR6, HR10, HR11
Business partners / Supplier profile / Human rights and labor practices across the supply chain
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Human rights and labor practices across the supply chain
Ensuring that business partners abide by international human rights regulations and labor laws can be challenging in a complex supply chain.
Suppliers at every tier of the supply chain carry much of the management responsibility, but we are aware of the significant role we can play in preventing human rights violations and
providing for sound working conditions. Our approach over the years has been built on systematic assessments and competency-building initiatives.
Self-assessment questionnaires used to verify the suppliers’ management system also address their performance and progress in guaranteeing basic human rights, health
and safety in the workplace and fair working conditions. Suppliers are expected to comply with all applicable local laws but we also verify whether they have publicly endorsed
international charters or guidelines (such as the Universal Declaration of Human Rights, the Tripartite Declaration of Principles concerning Multinational Enterprises and Social Policy, or
the OECD Guidelines for Multinational Enterprises).
Similarly, other aspects explored through our assessment process encompass whether a supplier employs workers through a contract, if a process has been implemented within the
organization to monitor labor standards and overtime hours, and whether minimum wage levels have been established.
Since one of the Group’s commitments is the ongoing development of its workforce, we also require feedback on how training and development activities are carried out within the
supplier’s organization.
In addition to all aspects mentioned above, our self-assessment tool also checks whether procedures exist to ensure that workers are not discriminated against and that harassment and
intimidation are not tolerated in the workplace.
Suppliers are also expected to establish an occupational management system, systematically assess occupational health and safety risks; measure performance by key indicators;
and extend their health and safety policies to their contractors.
Lastly, appropriate steps must be in place to prevent child labor and forced or compulsory labor, and to ensure freedom of association and collective bargaining rights.
If warned of potential or increased risks, we conduct thorough on-site audits aimed at providing insights into any concerns that may have arisen. Through the self-assessment questionnaire,
80 suppliers were identified in 2013 with either current or potential significant human rights and labor practices issues, specifically for the following areas: human rights and labor
practices addressed through supplier code of conduct and monitoring of responsible working conditions; contractual requirement to their own suppliers for compliance with labor and
human rights laws and regulations; and health and safety management. The findings also included one evidence of potential negative impact for child and forced labor due to the lack of a
dedicated management procedure. Consequently, the supplier has been submitted to an audit and a targeted action plan has been implemented.
No potential negative impact has been identified for the right to exercise freedom of association or collective bargaining.
In addition, after the audits performed following the 2012 self-assessment process, 58 action plans were implemented for 21 suppliers (about 45% of those audited) for labor practice
issues (concerning evidence of workplace safety documentation, training activities, adoption of a dedicated management procedure for harassment, health and safety performance,
overtime monitoring) and 32 action plans for 18 suppliers (roughly 38% of suppliers audited) were developed for human rights topics (additions to the code of conduct, ensuring
freedom of association rights, adoption of a dedicated management procedure for child labor). No contracts were canceled (1).
Ensuring commitment and compliance to human rights and fair working conditions can be particularly challenging beyond the Tier 1 level due to reduced transparency and a lack of
contractual relationships. Therefore, in 2013, the training course on working conditions that has been provided in recent years to Tier 1 suppliers has been extended to roughly 100 Tier 2
suppliers. We plan further deployment through our Tier 1 suppliers in 2014. These actions will help develop new approaches and further commitment throughout the multi-tier supply chain.
The percentage is calculated based on the number of 47 suppliers audited. The analysis of the action plans for the remaining 25 suppliers will be completed in 2014. No significant issues have arisen during these audits.
(1)
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Business partners / Supplier profile / Human rights and labor practices across the supply chain
Conflict Minerals The global challenges of today’s automotive supply chain encourage working with peers to address ethical and social sourcing risks arising from the multiple layers of
suppliers over a global supply chain. In collaboration with the Automotive Industry Action Group (AIAG), the Group has developed strategies addressing Section 1502 of the Dodd-Frank
Act, as well as subsequent rules promulgated by the US Securities and Exchange Commission, regarding conflict minerals. The rule requires companies to determine whether tin, tantalum,
tungsten, or gold (3TG) in their supply chain originated from the Democratic Republic of the Congo (DRC) or surrounding countries, and if the sale of those minerals supported the armed
conflict in the DRC. The Group has used a cross-industry reporting template to survey the supply base about the origin of 3TG used in their products.
In addition, the Group has supported AIAG in creating a common automotive process to obtain conflict minerals reporting information. Our streamlined approach includes common reporting
using the iPoint Conflict Minerals Platform (iPCMP), a web-based data-management tool based on the Conflict Minerals Reporting Template. We ask suppliers to provide us with the
smelter information for the tin, tantalum, tungsten, and gold in their products and ensure those minerals are not supporting the armed conflict in the Democratic Republic of
the Congo. The Group is collaborating to create a single policy and will continue working together especially in light of likely future European regulations. Being subject to US Securities
and Exchange Commission (SEC) regulation, Chrysler Group will be filing their conflict minerals report with the SEC in May, 2014. Fiat, however, will not be filing a report as it is not subject
to the SEC rule.
The Group has adopted the iPoint Conflict Minerals Platform (iPCMP), a web-based data-management tool based on the EICC/GeSI reporting template. This tool has been launched,
allowing streamlined reporting to multiple customers. The tool asks suppliers to provide smelter information for the 3TG used in their products. Smelter information can be used to determine
whether the 3TG came from a conflict-free source. By determining this information, the Group fulfills its due diligence obligation under the SEC conflict minerals rule.
These steps are being pursued both in collaboration with AIAG and also with a Chrysler Group-specific targeted approach for maximum efficiency and effectiveness. The coordinated efforts
will help promote responsible mineral sourcing practices. Part of that targeted approach includes guidance and training provided during Supplier Training Week (over 600 suppliers trained
in the US and Mexico).
Supplier diversity In 2013, Chrysler Group received the inaugural Company of the Year Innovation Award from the National Minority Supplier Development Council (NMSDC). The newly-created Innovation
Award “recognizes a new corporate method, initiative or process to accelerate and positively impact minority supplier development in support of NMSDC’s vision, mission and core
capabilities – certify, develop, connect and advocate – with particular emphasis on professional services and non-traditional categories.”
Chrysler Group was selected to receive the award for the accomplishments of its High Focus Supplier program. Since 1983, Chrysler Group has purchased more than €38 billion from
minority-owned suppliers. The High Focus Supplier Program is a best practice that creates a win-win for Chrysler and our suppliers, and serves as an example of supply chain innovation.
The High Focus program, established in 2011, focuses on suppliers with greater potential for diverse spend and equips them with the tools and support to achieve their diversity targets.
The diversity spend status of each supplier is monitored monthly and reviewed quarterly with the supplier. Since the program’s inception, 143 suppliers have improved their minority
purchasing by more than six times or €644 million. Chrysler Group is believed to be the only automaker to include diversity sourcing performance at Tier 2 level as a criterion on a
supplier’s scorecard.
Another Chrysler Group innovation designed to expand opportunities for minority suppliers is its Matchmaker program. Having completed its 14th year, the annual Matchmaker event
provides minority-owned, women-owned and veteran-owned businesses access to Chrysler Group’s Tier 1 suppliers and to decision makers in the company’s procurement and affiliated
organizations. The program has generated more than €1.5 billion in new business opportunities for exhibitors since 2000. As the premier networking trade event in the automotive
supplier community, the 2013 Matchmaker event attracted more than 3,000 participants. More than 270 minority-owned, women-owned and veteran-owned Chrysler Group suppliers
participated in the day-long event.
GRI-G4 DMA, SO9, SO10
Business partners / Supplier profile / Impact on society across the supply chain
Interactive
Chrysler Group spent €3.9 billion with minority suppliers in 2013, representing 16.8% of its total annual purchasing value. Women-owned businesses, which are tracked separately,
accounted for €358 million of the company’s spending.
Chrysler Group continues to support several organizations that assist Tier 1 suppliers in achieving their minority-owned and women-owned sourcing goals. These organizations include the
National Minority Supplier Development Council, the Canadian Aboriginal and Minority Supplier Council and the Women’s Business Enterprise National Council. In addition, Chrysler Group
supports veteran-business ownership through membership with the National Veteran-Owned Business Association. In 2013, Chrysler Group’s Chief Procurement Officer was the Chairman
of the Board of Directors of the Michigan Minority Supplier Development Council.
Impact on society across the supply chain
The Group does not tolerate unethical or corrupt practices by its business partners, since bribery and corruption undermine investments and distort international competition
through direct, material impact on our business operations and on society’s democratic institutions. Thus, the highest standards of integrity, honesty and fairness are a must for all
business activities, and any form of bribery, corruption or money laundering is strictly forbidden. In order to prevent, mitigate or redress any negative impact on society by setting precautions
in place, the Group performs a detailed spend analysis.
Monitoring changes in the financial situation of suppliers is a cornerstone of our supply chain management. A tool for different spending categories gives a clear picture of delivery data
broken down by commodity and by supplier. Thus, an economic risk analysis is regularly performed through the spend analysis process covering roughly 100% of annual
purchase value of direct material suppliers. Depending on the supplier’s strategic role, the economic risk analysis may be performed annually, or more frequently if warranted. The
evaluation is conducted based upon a supplier’s public financial reports, where available, and/or of the management of confidential information for different key areas. In the Group’s
systems, the financial information of each supplier is recorded and a score is calculated. If the minimum threshold rating required is not reached, the supplier is placed on a financial watch
list and can be eliminated from sourcing decisions. An action plan may be designed in order to identify the appropriate measures. Troubled suppliers are managed through a dedicated
process and weekly meetings are held with the relevant departments of all Group operating segments.
In addition, due to our awareness of the corrosive effects of corruption on societies, we constantly monitor suppliers’ compliance with recognized business ethics standards through
the self-assessment questionnaire and follow up with on-site audits if needed. Suppliers are expected to comply with all applicable laws on bribery and corruption, money
laundering, infringement of data protection, insider dealing, conflicts of interest, anti-competitive behavior and unethical contract tendering. Their approach to management
should include policies, goals and procedures, as well as the review and evaluation of process risk to assure ethical operations and activities. Likewise, they must not have had either
pending lawsuits or passed rulings in the past year relating to these issues. Since ethical business practice is more important than ever, our suppliers must continually review ethical
values and policies and closely monitor their operations for potential issues; accordingly, their role in supply chain ethics is key. For this reason, training and awareness programs have been
carefully designed – in some specific cases by working together with other automakers – to encompass numerous topics, such as working conditions, ethics and environmental footprint.
We gauge their efforts and progress during our assessments by including specific questions on community development activities and, whether they have adopted social accountability
standards or have implemented a process to measure and verify sustainability performance of their suppliers and sub-suppliers. In this way, we hope to champion more positive change
and help strengthen communities and markets.
In 2013, self-assessment questionnaires identified four suppliers as having – or risking – a significant negative impact on society specifically in the area of supply chain management.
Additionally, based on audits conducted following the 2012 self-assessment process, we implemented 45 action plans about inclusion of monitoring activities and supply chain
involvement for 18 suppliers (38% of suppliers audited (1) ); no contracts were canceled.
The percentage is calculated based on the number of 47 suppliers audited. The analysis of the action plans for the remaining 25 suppliers audited will be completed in 2014. No significant issues have arisen during these audits.
(1)
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Business partners / Supplier profile / Ongoing dialogue with suppliers
GRI-G4 DMA, EC8, EN34, LA16, HR12, SO11
Ongoing dialogue with suppliers
The Group is continuously renewing its focus on supplier relations, thus constant engagement and communication are essential to helping the company to foster more positive, mutually
beneficial relationships. Quality of relations was improved and relationships with suppliers have been strengthened as demonstrated by the many long-standing company-supplier
relationships, and also confirmed by the limited number of lawsuits in 2013.
Many process and system improvements have been executed to help suppliers work with the company more effectively. A continuous dialogue is encouraged with suppliers at all
levels of management, including forums such as the regional Supplier Advisory Councils (SAC). These types of exchanges foster collaboration between the company and the supply base,
and thereby improve partnership and enhance communication on initiatives, issues and opportunities. The SAC meets quarterly, and involves 15-20 suppliers that facilitate supplier feedback
on specific topics. The Group also uses a dedicated supplier internet portal to share information on technical requirements, supply planning, supplier quality and the results of compliance
tests conducted on new components. Suppliers can use the portal to communicate with the company, enter details of contract bids, specify the origin of components and update their contact
information. The NAFTA web-based Supplier Portal also includes a section dedicated to sustainability, including best practice articles highlighting supplier initiatives that provide inspiration to
companies early in their own sustainability programs. This section also fosters recognition of suppliers willing to share their success stories with other companies. As in previous years, initiatives
for the exchange of ideas and information continued, including local conferences and Technology Days (23 meetings in 2013), attracting an average of approximately 1,200 participants. At
these events, leading suppliers in terms of innovation, technology, and quality address specific topics and share some of their latest technological developments. At Chrysler Group, regular
Supplier Town Hall meetings, which are attended by an average of 500 suppliers either in person or via webcast, continued to be a major enabler of two-way communication.
Continuous improvement is also seen in World Class Manufacturing Purchasing, which, in collaboration with the World Class Manufacturing (WCM) team, continued providing its advice
to suppliers intending to implement the WCM system. During the year, WCM was implemented at additional supplier plants, reaching a total of 300 supplier sites (of which 218 in EMEA, 70 in
LATAM and 12 in NAFTA). This means they now apply what is considered to be one of the world’s leading manufacturing standards to their own operations. A total of five executive conventions
have been held to examine the status of application of the program and the commitment of the senior management that fuels it. Such sharing of expertise translates into on-site training provided
to each of the supplier plants involved, with the support of Fiat Group WCM specialists, and benchmarking through visits to Fiat Group facilities arranged to share best practices.
In the EMEA region, in supplier plants where the implementation of WCM is more mature, significant results have been achieved mainly in the model area. In terms of safety improvement
there was a 100% reduction of injuries in the model area and there was a 78% reduction in the total frequency index (results from best chemical supplier plant). Moreover, in
terms of efficiency improvement, there was a 16% reduction in HPV (Hour Per kit component of Vehicle) from our best chemical supplier plant and an 18% improvement in Overall
Equipment Effectiveness (OEE) of the bottleneck machine from one of our best metal supplier plants. These results mean a better management of resources and, in the long run,
increased business competitiveness. Furthermore, in EMEA by the end of 2013, a total of 88 WCM Audits were conducted at 59 supplier plant locations; of those 59 suppliers, 15 are
located in Poland. The audit is a method that allows application of consistent criteria for evaluating the production systems in both our plants and the supply base.
In the LATAM region, 70 suppliers were checked for implementation level and commitment. By the end of 2013 the integrated activity between the WCM specialists in Purchasing and
Manufacturing has expanded and supplier improvement is increasing. Furthermore, approximately 2000 kaizen improvement projects were initiated involving 44% of the suppliers’
employees. The results indicate that four supplier plants have achieved “Green” status and are ready to receive their first WCM audit.
In the NAFTA region, 12 suppliers were involved in the WCM program by the end of 2013. Overall these suppliers are committed, motivated and are initiating many WCM projects for mutual
benefits. For 2014, the Group has an aggressive goal to have 22 additional contracts signed in the NAFTA region. Together, plant manufacturing, the WCM Central team, and Supplier
Quality are engaging and communicating with the supply base to help understand and support WCM in our plants. Also, approximately 500 supplier plants have participated in specialized
training programs with the goal of extending the basic principles of WCM throughout the supply chain.
The Group works closely with many industry and supplier organizations to encourage dialogue. One such group is the Automotive Industry Action Group (AIAG), which Chrysler Group
helped found in 1982. The AIAG is a cooperative forum for the auto industry focused on improving business processes and practices involving trading partners and peers throughout the
Business partners / Supplier profile / Ongoing dialogue with suppliers
Interactive
supply chain. In addition to a leadership role on the Board of Directors and co-chairing the Corporate Responsibility Steering Committee, Chrysler Group employees are engaged in more
than 40 work groups, many of which focus on sustainability issues within the supply chain, and on streamlining tools and metrics across the industry. Chrysler Group hosts Supplier
Training Week three times per year covering numerous subjects, including sustainability-related topics such as responsible working conditions, environmental impact and ethics. Additional
in-depth training on responsible working conditions is offered to suppliers in partnership with the Automotive Industry Action Group. This training was developed collaboratively with other
automakers and is designed to help assure and protect the rights and dignity of the workers who make vehicle components. However, we are also committed to promoting entrepreneurial
growth by providing entrepreneurs the practical capacity-building training they need, which enables subject matter experts to achieve a higher level of sustainability. With this aim, an on-site
basic sustainability training course was delivered at Fiat headquarters to 13 select suppliers (17 individuals participated). The carbon emissions that resulted from travel to participate were
entirely offset through the purchase of 15 equivalent credits under a forestry project in Italy (Po Delta Park).
To address existing and emerging sustainability issues, the Supplier Sustainability Panel was created. This stakeholder group represents a cross section of the supplier base with
participants from companies of different sizes, footprints and commodities. Topics addressed include ways in which Fiat Group and its suppliers can work together on sustainability
initiatives, gap assessment and resolution, benchmarking site visits, and training and communication throughout the supply chain. Also In 2013, Fiat and Chrysler again honored
top-performing suppliers during the NAFTA and EMEA Supplier Sustainability Award ceremonies, by recognizing their outstanding achievement in social and environmental
responsibility performance. The top winners in 2013 were BASF for NAFTA and Brembo for EMEA. These companies, and others, were recognized for their commitment in sustainability
and the breadth and depth of their related initiatives and programs. In the EMEA region, the QUALITAS event was ISO 20121 certified as a sustainable event, and all CO2 emissions
generated from it were offset through the purchase of 181 equivalent credits under a forestry project in Italy (Po Delta Park).
Finally, the Group encourages supplier innovation through various initiatives to find ways to reduce costs. The Technical Cost Reduction SUPER (SUpplier Product Enhancement
Reward) Program is aimed at encouraging a proactive approach with suppliers by the mutual sharing of the economic benefits generated by proposing and introducing innovative methods
and technologies. In 2013, in the NAFTA and EMEA regions more than 350 ideas were implemented by suppliers, resulting in tangible cost reductions of about €39 million.
Moreover, the Supplier Innovation Gateway, whose goal is to stimulate innovative ideas leading to benchmark systems, provides a streamlined process to review, investigate, and approve
supplier innovations in the NAFTA region.
Dedicated email addresses ([email protected] and [email protected]) represent another method for suppliers to request information or report events or
situations of non-compliance in the supply chain; in addition to the specific channels identified by the Group companies for reporting a violation (or suspected violation). In 2013, no violations
or suspected violations were received about environmental, labor practices, human rights and society impacts (see also Chapter 2, Labor practices and Human Rights paragraph).
Culture of sustainability To ensure the awareness of sustainability and governance principles among employees who manage supplier relationships irrespective of their level or role, Group Purchasing’s Human
Resources disseminate the Code of Conduct and the values of good governance through periodic training and other information channels. The online training program aimed at raising
awareness about the Group’s Code of Conduct continued in 2013. It targeted Group buyers and Supplier Quality Engineers (SQE), involving 1,481 employees between 2009 and 2013.
In 2013, the program was completed by all Group buyers and SQEs in LATAM and APAC, providing 381 hours of training to 381 individuals.
In 2013, a new training program on Health and Safety was launched in Italy involving all Fiat Group Purchasing employees to enhance their knowledge and strengthen their technical
capabilities related to these issues: 9,128 hours of training were provided to 908 employees.
Further, with the aim of broadening accountability toward sustainability goals, these are incorporated on a yearly basis in performance management processes and systems for approximately
210 Supplier Quality Engineers and their teams. In so doing, we are able to measure their commitment and responsiveness toward supplier sustainability management.
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Business partners / Dealer and service network / Reducing environmental impact
GRI-G4 DMA, EN3, EN4, EN6, EN15, EN16, EN17, EN19, SO1
Dealer and service network
The Group considers our dealer network to be a key business partner: they represent an important direct link between the Group and its customers. The dealer network plays an important
role in creating and enhancing customer satisfaction. Through the skill and expertise of our dealership personnel, the Group can maintain an open and trusted relationship with the owners
of our vehicles. To this end, extensive and varied training is offered not only to expand the skills of those working within the dealer network, but also to foster their involvement in building the
Group’s success and competitive position in the marketplace.
We also work with them to implement several initiatives aimed at increasing their awareness on sustainability issues and reducing the environmental footprint of sales and service activities,
while reducing related operational costs.
Reducing environmental impact
Reducing the environmental impact of the dealer network is one way the Group approaches sustainability issues across the entire value chain. Working together with dealers toward this
goal is also an opportunity to establish dialogue with customers, touching on all aspects of the Group’s commitment to sustainability.
The Group dealer network consists of company-owned and privately-owned sales points in more than 150 countries. The Group is committed to support the monitoring and progressive
reduction of the environmental footprint attributable to the network, despite the fact that it only has operational control over company-owned dealerships and that the majority of the dealer
network is privately-owned.
To reach this goal, in 2013 the Group continued to develop and expand methods and initiatives in different regions, based on local network characteristics.
Actions taken or proposed at dealerships were mainly related to increasing awareness on sustainability and reducing energy consumption, and subsequently, total emissions generated
on-site or at the source.
New goals have been set for 2017 in order to support this commitment.
In the EMEA region, company-owned dealerships represent 2% of the total Group dealerships in terms of number and 5% in terms of surface area. In 2013, the Group focused on defining
actions for all company-owned dealerships in Italy, which cover an area of 105,000 square meters (31% of the entire surface area of company-owned dealerships in all of EMEA).
Actions taken at Italian company-owned dealerships included: a detailed analysis of their status and energy consumption; the provision of suggestions, including potential benefits, on
how to improve energy use in areas like maintenance and employee-specific behavior; and continual monitoring of dealership energy consumption trends. With the technical support of
Fiat Partecipazioni, the Group company in charge of facility and energy management, dealership suggestions were customized depending on their site characteristics.
With the introduction of these 2013 initiatives, the total amount of energy consumed decreased by 5.5% compared with the previous year and around 6,400 GJ were saved. In
addition, more than 685 tons of CO2 were not emitted into the atmosphere. The program resulted not only in environmental improvements, but also in operational benefits in the form
of reduced costs.
The approach was to implement actions that were either no cost or highly affordable. The site that improved the most saved 17% in electricity compared with 2012. However, up to 27%
electricity (in kWh) was saved at sites that had refurbished systems and machinery.
This experience led to the creation of operational guidelines on eco-efficiency specifically tailored to dealerships. The purpose of the guidelines is to help dealerships conserve
resources, illustrating best practices to reduce waste and use energy more efficiently. They also offer technical solutions and examples focused on saving energy. The goal is to reach as
many dealerships as possible, and encourage each site to implement appropriate changes on a voluntary basis. Separate eco-efficiency guidelines addressing the sustainable construction
of future company-owned dealerships are also available. These two documents pave the way for future actions to minimize the environmental impact within the scope of our dealerships.
Business partners / Dealer and service network / Reducing environmental impact
To support lower energy consumption and less environmental impact in the dealer
network, we set targets to be met by 2017 at all Italian company-owned dealerships for
electricity consumption. Targets were also set for progressive extension of eco-friendly
initiatives to both company-owned and independent dealerships in other countries.
In the LATAM region, the World Class Dealer (WCD) program was implemented in
2013. WCD aims to increase the focus on operational efficiency at dealerships, including
identifying opportunities, improving performance and achieving results.
As part of the program, an initiative to monitor and increase the environmental and
social sustainability of the Brazilian dealerships was launched in partnership with the
Ethos Institute and will eventually cover the entire dealer network, comprised of around
600 private dealers. The development of this initiative started with direct involvement of
the Fiat Brazil Dealer’s Association (ABRACAF) in four engagement meetings.
Dedicated workshops were held with 11 dealers where an online sustainability tool was
defined on the basis of 26 indicators that help analyze a dealer’s performance in areas
such as:
n human rights
n relationships with workers and local communities
n sustainable consumption of materials and resources (like energy and water)
n reverse logistics for material disposal.
Interactive
Direct and indirect energy consumption in dealerships
Mass-Market and Premium Brands in EMEA (TJ)
Private (1)
Company-owned
2013
EMEA of which in Italy
EMEA (2) of which in Italy (3)
Direct energy consumption
1,196
186
120
26
Indirect energy consumption
1,075
168
153
82
Total energy consumption
2,271
354
273
108
Direct and indirect CO2 emissions in dealerships
Mass-Market and Premium Brands in EMEA (thousands of tons of CO2)
2013
Direct emission
Indirect emission
Total emission
Private (1)
Company-owned
EMEA of which in Italy
EMEA (2) of which in Italy (3)
70
11
7
2
106
17
14
9
176
28
21
11
Each dealership is able to monitor its environmental and social impact by using the online tool to enter data on the 26 indicators. The system then provides suggestions and priorities to
enhance performance.
In the NAFTA region, in an effort to promote environmental responsibility, the Chrysler Group Dealer Network organization and the Corporate Sustainability Office organized the Dealer
Environmentally Conscious Operations (ECO) program for the second consecutive year. The program recognizes Chrysler Group dealers who contribute to the company’s goal of reducing
its impact on our planet.
Top performing dealers are then nominated for the Chrysler Group Environmental Leadership Award (ELA) based upon energy consumption and efficiency, waste recycling, community
relations, etc. Best practices highlighted in the 2013 program will be communicated to all Chrysler Group dealers in 2014 via the sustainability portal in DealerCONNECT. The
DealerCONNECT portal was also enhanced to include an area for updates regarding Green Buildings where sustainability practices will be easily accessible to the dealer network. For
example, data collected from dealers who have implemented LED lighting, waste oil burners, sustainable roofs, etc. will be made available to the dealer network to promote the benefits
of sustainability practices in terms of the impact on the environment as well as the financial impact.
Data estimated according to GHG Protocol on figures collected on some company-owned dealerships.
Data includes both figures collected and estimations based on the GHG Protocol.
Data entirely based on figures collected.
(1)
(2)
(3)
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Business partners / Dealer and service network / Training for the network
Training for the network
To enhance the customer experience and create loyal advocates of our products and services, in 2013 the Group continued to develop training opportunities as well as skills
assessment and certification of salespeople and technicians. Focusing on these areas helps to grow the quality of service offered by dealerships as well as their operations and
product-related knowledge.
Unetversity, the Fiat Group Automobiles (FGA) training school, and Chrysler Academy, the Chrysler Group training organization, standardize skill levels across the network, and offer
targeted training paths to over 170,000 dealership personnel, sales and after-sales professionals and technicians worldwide. In 2013, more than 6.3 million hours of training
was provided worldwide. A variety of learning needs are addressed for technical and sales issues faced by the network, such as customer relationship management processes, product
and vehicle systems knowledge, and environmental and safety features of the Group’s vehicles. Furthermore, technician training is focused on diagnosis, maintenance and repair techniques
for fuel-efficient gasoline and diesel engines, as well as techniques for servicing and repairing vehicles that run on electricity or compressed natural gas.
In 2013, continued progress was made in the area of online training and performance supported through internal multimedia platforms. The knowledge and information was
readily accessible to everyone in the network, saving time and money and limiting the environmental impact of travel.
In 2013, Chrysler Group increased the number of Virtual Classroom training sessions by 27% in the NAFTA and LATAM regions as well as in the EMEA region, which, along with the alreadyavailable video streaming, expanded the delivery methods used for training.
Business partners / Dealer and service network / Customer relationship and management training
Interactive
Customer relationship and management training
FGA’s Unetversity and Chrysler Academy have developed a series of programs focused on selling methods and processes. In Europe, the Customer First Program and the Business
Support Program enhance the approach and behavior of sales personnel during the sales process. It also reflects the commitment to promoting responsible selling techniques encouraging
the greatest transparency in the management of customer relationships. In 2013, Chrysler Academy further supported the Customer Experience Initiative by redesigning the selling skills
curriculum and course development, aligning course objectives to be consistent with customer survey results. The initiative is designed to improve the overall customer experience as well
as promote the long term success of both the company and the dealer network.
Customer relationship improvements were also achieved through programs such as the Step It Up, piloted within the US dealer network in the Southwest Business Center. This initiative,
supported by in-dealership consultants who coached and mentored retail professionals, aided the Customer Experience Initiative by correlating customer survey results with dealership
behaviors and processes linked to customer satisfaction. This effort resulted in a significant positive impact within the pilot dealers. The after-sales curriculum was also redesigned to reflect
the Customer Experience Initiative.
In the EMEA region, Unetversity continued to place particular emphasis on training for the after-sales staff in dealerships, such as service center managers, service consultants and frontoffice employees, who manage the after-sales relationship with customers.
Training activities to support dealership owners and managers also continued during 2013 through the EMEA Effect program, in partnership with leading business schools and modeled after
university-level business management curriculums. A combination of hands-on experience and theory provided managerial skills and tools to help address changing conditions at the global
and local level, placing particular emphasis on succession management within the dealers. In 2013, the program, in its sixth year, was redesigned and updated to reflect the competitive
scenario: 3 modules were delivered: two in Germany and one in Spain.
In addition, tools and technology are continuously refined to better support the network. The iExam business analysis tool is being upgraded by Chrysler Group to enhance usability and
functionality. Ram Compressed Natural Gas (CNG) resource information was provided online to support the launch of the Ram CNG vehicle. These tools, along with the Market Master
Online Business Analysis tool, continue to empower dealers to maximize their operational performance and capitalize on business opportunities. New Dealer Installation training materials
were also developed to provide a more comprehensive orientation for new dealer principals when joining Chrysler Group. The training includes position-specific content for all roles within a
typical dealership management team to promote greater shared understanding and appreciation for Chrysler Group operational systems, procedures, and corporate values.
Dealer Candidate Development Program Chrysler Group is committed to diversity within its dealer network. During 2013, Chrysler Group increased its minority dealer count by 16%, expanding from 163 to 189 dealerships. This
improvement includes a 6% increase in minority-owned Fiat dealerships, which increased from 34 to 36 dealers. This corresponds to a minority representation in the Fiat dealer network
of 17%, which remains the highest diversity percentage for any automotive brand. To support the growth of its minority dealer network, Chrysler Group continues to utilize the Dealer
Candidate Development Program (DCD). This program is designed to identify candidates who are currently employed with a Chrysler Group or Fiat dealership and have the potential to
become a dealer principal in the near future. Through educational webinars, live training and on-site dealership assessments, these candidates are provided dedicated training to enhance
their knowledge of dealership operations. In 2013, a graduate from the first class of candidates successfully partnered with Chrysler Group and was placed into a dealership as an operating
partner/general manager. Additionally, the second class of candidates in the program completed all of their classroom training modules during the year.
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Business partners / Dealer and service network / Environmental and safety training
A focus on after-sales training In 2013, the Unetversity enhanced training for after-sales customer relations processes to improve the service and parts customer experience.
Over 370,000 hours of training were delivered to the Fiat Group Automobiles, Maserati and Ferrari after-sales force worldwide, of which approximately 181,000 hours were through distance learning.
The virtual classroom was introduced in various markets in the EMEA and LATAM regions, involving up to 1,500 users and covering various after-sales topics, which included repair and
quality check, scheduling, reception and follow-up, and the new WiADVISOR.
Delivery methods combined instructor-led training and online training with virtual classroom experiences. Comparing 2012 with 2013, the after-sales training attendance increased significantly,
mainly due to the contribution of online and virtual classroom training. Approximately 175,000 hours of distance learning were dedicated exclusively to FGA’s after-sales personnel
(+26% vs 2012).
Environmental and safety training
The Group dedicates considerable resources to support environmental and safety training in our dealer and service network. In 2013, approximately 2.1 million hours of training
on these issues were provided to sales people, technicians and after-sales staff worldwide, representing approximately 33% of all training provided.
Worldwide, the sales force received 1.1 million hours of specific training on topics related to the reduction of fuel consumption and CO2 emissions, eco-friendly technologies, alternative
fuels and the latest generation engines. In addition, when possible, test drives were organized to demonstrate the characteristics of these engines and their competitive advantages.
Worldwide training for service technicians and after-sales personnel involved roughly 845,000 hours with continued focus on developing know-how in the repair and maintenance of
eco-friendly engines and safety and environmental-related features. This training is essential to ensure engine efficiency and reduce fuel consumption and emission levels in accordance
with regulatory limits. In addition, the increased presence of safety features on the vehicles was supported by specific training covering these topics for the after-sales staff in the
dealerships (about 113,500 hours provided).
On-site and web training The Group provides extensive web training for all dealership positions, as well as web-based equivalency courses for those network professionals who are not located near live course
offerings. Local and web training make information and knowledge accessible to everyone in the dealer network, saving time and money, and reducing the environmental impact of travel.
As key training developers and providers, Unetversity and Chrysler Academy offer various on-line tools and performance support, including virtual classroom online training, web portals,
tablet apps, in-dealership touch-screen kiosks and smartphone-optimized tools and resources. In 2013, 60% of total training hours were provided to the dealer network through the
web or virtual classrooms.
Over 3.7 million online hours of training were delivered to Group sales, after-sales and technical personnel in the four regions. These web-based training channels eliminated the need
for over 110 million kilometers of travel around the world, resulting in a reduction of approximately 24,000 tons of CO2 emissions.
With the objective of offering solutions close to the participants, Fiat and Chrysler Group offer 34 Technical Training Centers located across NAFTA, 34 in EMEA, 22 in LATAM and 6 in APAC
to cover the training needs of field personnel.
Finally, several initiatives have been implemented in the US to reduce the environmental impact from technical training. These efforts include a reduction in print/paper usage by eliminating
the annual printed course catalog, moving to a print-on-demand strategy for course materials instead of bulk printing, and using erasable tent cards/name tags in live courses. In addition, the
new eResource Guide allows all professionals within the Chrysler Group dealer network to readily review and understand the variety of learning offerings available from Chrysler Academy.
This electronic guide eliminates the need for printed course catalogs, can be updated easily and cost-effectively, and provides a comprehensive source of information for all Academy course
offerings, curricula, and available on-line tools and resources.
Business partners / Dealer and service network / Tools and resources
Interactive
Alternative fuels workshop The growing interest in alternative fuel vehicles, confirmed each year by sales data, has prompted Unetversity, the Fiat Group Automobiles (FGA) training center, to create a training workshop
targeting this topic.
An ad hoc training event for the Italian Lancia sales network, the Lancia 2013 Product Day (involving around 440 dedicated FGA salespersons and field staff) presented information about
various product innovations and financial services. Unetversity trainers also provided details about the various types of fuel systems available on the market: from natural gas to electric,
from LPG to hybrid and from bio-fuel to hydrogen. They led an analysis of features, operation, emissions, procurement and management of each type of system.
In addition, market data and alternative fuel trends were presented to illustrate the short-, medium- and long-term selling potential, and suggested market opportunities and risks.
During the training day, all participants had the chance to take a test drive of about an hour on a route with different types of terrain to compare the Lancia Ypsilon TwinAir EcoChic to the
Toyota Hybrid and therefore to verify the specific characteristics and performance of the two products.
In addition to an overview of the types of fuel, which helped expand participants’ automotive knowledge, the training was designed to provide attendees with the information, expertise and
skills needed to effectively communicate the eco-friendly and economic competitiveness of Lancia’s EcoChic offering that runs on gasoline/natural gas and gasoline/LPG bi-fuel versions.
Tools and resources
In 2013, Chrysler Group launched several new electronic tools and resources to support its approximately 2,400 dealerships. iShowroom, Chrysler Group’s sales consultant electronic
product presentation platform, was enhanced to include commercial vehicles and enhanced functionality. This platform includes video, graphics and animations designed to engage the
potential vehicle buyer to better understand the product, and includes product information, vehicle accessory details, competitive comparisons, and the ability to virtually build a vehicle to
suit the wants and needs of a particular customer. Furthermore, this tool is dealership-specific, displaying vehicles that are currently available in that dealer’s inventory. The system is updated
nightly to ensure accuracy of content, and is available via kiosk, web-based and mobile platforms. Over five million views of iShowroom were recorded in 2013.
Owner Support Lite and Owner Support+, electronic tools designed to enhance the new vehicle delivery experience, were both launched to support dealer network personnel. These
tools provide Vehicle Identification Number-specific product information for sales professionals to share and review with new vehicle owners, and both are designed to improve Chrysler
Group’s customer experience delivery-related scores. While OS Lite is a pdf-based deliverable, OS+ is an electronic suite of videos and product information that can be emailed directly
to a customer, further increasing their appreciation and understanding of their new Chrysler Group product. The content of these tools is derived from features identified as “difficult to
understand” by the Chrysler Group Customer Call Center, to ensure maximum relevancy.
The e-Product tool developed for European markets supports vehicle sales by effectively explaining the product range with videos and animation and illustrating their innovative characteristics.
e-Product supports communication with the customer by standardizing the sales negotiation. At the same time, it is very useful in presenting complex content such as Electronic Stability
Control (ESC), the Hill Holder function, the fuel saving technology of Group engines and the low environmental impact of LPG or compressed natural gas. e-Product was designed to run fully
integrated with the Link-e-sales software, currently used by dealerships to build a car based on the customer’s request during negotiations. It can be accessed like a traditional website on
any kind of device (iPad, tablets, smart phone). This feature is very important, since the salesperson always has access to videos and graphics that support the information he/she provides,
adding credibility to what is said about the vehicle. The tool also sends the customer an email with a link they can use to browse a personalized website, as well as a brochure that portrays
the vehicle built with all the selected features. With this tool, the customer can share the experience he/she had at the dealership with friends and relatives, while the microsite and online
brochure includes both the dealership and salesperson’s contact information to ensure continued dialogue with the customer.
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Communities
GRI-G4 DMA, 2, EC1, EC7, EC8, SO1, SO2
Engagement with local communities
Fiat Group operates under the fundamental belief that the company has a moral responsibility to contribute positively to the greater community.
This belief is deeply embedded in the corporate culture and shapes the way the company acts and makes decisions. By developing fully engaged
employees who are capable of leading in the workplace and in the community, Fiat Group is building a more secure future for its industrial
enterprise as well as for society as a whole.
Corporate citizenship efforts focus primarily in areas where we have operations, as this is where we can be most effective. Our presence in these communities enables us to best assess
particular needs and challenges related to social, economic and cultural aspects. Through our ongoing engagement and strong relationships with community, academic and political
leaders, programs can be developed for the benefit of all. While financial donations continue to play a role in our citizenship commitment, the Group’s primary focus is on initiatives that
strengthen communities by helping them help themselves. The Group’s goal is to help build strong, self-reliant communities with an engaged and skilled workforce.
During 2013, the Group committed resources for a value of approximately €19.7 million (1) to benefit local communities. In addition to direct cash contributions and donations in kind,
Fiat Group also supported local communities when permitted by company policies by encouraging employees to participate directly in volunteer activities during work hours. In the NAFTA
region, Chrysler Group has a corporate policy that allows salaried employees to take part in charitable or public-service activities during normal work hours. In order to make a sustainable
improvement in local communities, the Group prefers investments designed to enhance community development (50.7% of total value of community initiatives) over simply donating money.
The Group’s 2013 activities focused on a variety of causes: 39.2% promotion of education, culture and art (scholarships accounted for 10.9%(2)); 25.1% social welfare projects addressing
issues such as disability, eldercare, etc.; 12.0% emergency relief efforts; and 23.7% other areas, such as health (accounting for 19.1%).
From a regional perspective, the Group primarily made investments in Europe where 47.3% of the total resources were donated. North America, followed, with 29.2% of investments in this
area and remaining funds donated in Latin America (23.3%), Asia (0.1%) and the rest of the world (0.1%).
The Fiat S.p.A. Code of Conduct best expresses the Group’s commitment to community development in the following statement: “Fiat Group is aware that its decisions can have significant
impacts, direct and indirect, on the local communities in which it operates” and accordingly “seeks to contribute to the social, economic and institutional development of local communities
through specific programs” generally established based on engagement initiatives with the local community and impact assessments.
By engaging with the relevant stakeholders, the Group establishes a collaborative relationship with local communities and authorities, strengthening its social license to operate.
The new initiatives of the business call for the Group to “take all reasonable steps to inform those communities of relevant actions and projects and [that it] shall promote an open dialogue to
ensure that their legitimate expectations are taken into due consideration.” An ongoing dialogue is ensured over time; for instance, Human Resources managers on-site continually interact
and maintain dialogue with community representatives and local authorities in order to assess needs and expectations as well as monitor the impact of the company’s industrial activities.
The employees themselves are “asked to behave in a socially responsible manner by respecting the cultures and traditions of each country in which the Group operates and acting with
integrity and good faith in order to merit the trust of the community.”
Based on non-accounting data and calculation methods. Also includes estimates. Amounts in currency other than euros were converted at the average progressive annual exchange rate as of 31December, 2013. The reported figure doesn’t include initiatives
whose sole purpose is to promote a brand. Amounts refer to all Fiat Group companies worldwide.
Includes scholarship granted within the corporate program and other initiatives at local level.
(1)
(2)
Communities
Interactive
Fiat Group Community Investment Guidelines provide indications on how to manage the various initiatives to benefit communities and define the commitment to implementing initiatives
that are consistent with each brand’s core characteristics and positioning. Every initiative is managed at the plant, company and brand level, and those that are financially significant are
approved and supervised at the corporate level. A portion of the Group charitable activities is managed by The Chrysler Foundation, which supports a wide variety of charitable and
community-based local and global organizations. The Foundation is an independent, non-profit organization sponsored exclusively by Chrysler Group and governed by its own Board of
Trustees consisting of six corporate executives.
Specific indicators are used to measure the impact of initiatives in order to evaluate the benefit for the local community. This helps to ensure that the Group’s activities remain
aligned and relevant to the current needs of the regions involved. In addition, these metrics assist in evaluating potential opportunities for development or extension of programs, as well as
turning successful individual activities into long-term commitments.
Type of contributions
Type of initiatives
d
c
c
b
a. 77.7% Cash contribution
b. 17.8% Volunteer work
c.
3.3%
d.
1.2%
Donations in kind
a
b
a. 50.7%Investment in local communities
b. 47.4% Charitable donation
c.
Management cost
1.9%
Commercial initiatives
with social impact
a
Area of intervention
Destination of initiatives
de
e
c
d
a. 47.3% Europe
a. 39.2% Education, culture and art
b. 29.2% North America
a
b
c. 23.3% Latin America
d.
0.1% Asia
e.
0.1% Rest of world
b. 25.1% Social welfare
a
c
c. 19.1%Health
d. 12.0% Emergency relief
e.
b
4.6% Other support
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Communities / Self-sustaining development in the community / Betim
GRI-G4 DMA, EC1, EC7, EC8, SO1, SO2, HR8
Self-sustaining development in the community
At each location, the Group is engaged in providing appropriate operational conditions for generating local growth while respecting the interests of the various stakeholders. To this aim,
three main conditions must be met: the identification and cultivation of local assets, the establishment of collaborative processes to plan and implement change and the encouragement
of a local mindset that fosters growth. These three conditions can form only if founded on a relationship of mutual trust between the Group and the local community and its institutions.
It is clear that nearly nine years after the first initiatives of the Árvore da Vida program, the Fiat Group Automobiles’ (FGA) experience in Brazil has become a sort of training ground.
A selection of Fiat Group’s 2013 initiatives are described in the other sections, chosen for their distinctiveness and their economic or social significance.
Betim
Since 2004, Fiat made developing the Árvore da Vida program a priority in the scope of relations with the community. It is an important part of the company’s effort to collaborate with local
leaders who are mobilized to build collective opportunities for social development.
The program is aimed at promoting social, cultural and economic development by encouraging the independence and empowerment of people living in the community of Jardim Teresópolis,
an area neighboring the plant in the city of Betim (Brazil). This community is home to approximately 30,000 people and, in recent years, has experienced significant improvement in social
indicators such as the level of literacy, employment and entrepreneurship. Along with other organizations and the government, the Arvore da Vida Jardim Teresopolis program contributed
to this transformation.
From the start, the primary concept behind the program was that the mutual interdependence of business and society implies that both company decisions and social policies follow the
principle of shared value generation. To achieve this, any intervention would have to arise from a broader awareness of the real needs of the community. The program first began, in fact, with
the execution of an extensive analysis of the region. The study yielded results showing a low rate of education, low family income, high violence rates and a flat social structure. Consequently,
the program focused on initiatives such as sports, socio-educational, professional qualification, support for entrepreneurship and community strengthening. Moreover, a development
network was formed by local representatives, and a women’s cooperative for production of items with recycled automotive industry material was created.
Engagement with stakeholders and seeking to understand their needs and expectations gradually became a part of an ongoing broader strategic intervention, which involved close
collaboration with local institutions and the non-governmental organizations ASVI and CDM.
In nine years of operations, the program achieved major results. Over 20,000 people benefited from it, and €2.5 million were invested solely in 2013. As a result, the community’s own
resources and local capital have become the main factor in successful local growth and self-sustaining solutions.
The program also created opportunities for economic well-being; the average income of families increased exponentially from 2004 to 2013. Compared with an increase in the average
income of Brazilian families of +41.4%, this value grew to +105.7% for the families participating in the project’s activities (source: Polis, 2013).
Impact analysis was conducted in 2004, and was subsequently repeated in 2008, 2011 and 2013, representing an important tool for monitoring the effect of activities as well as serving as
a management instrument for the assessment of actions performed and reorientation of the agenda, if needed.
Cooperarvore, the social cooperative formed by women from the community in 2006, recycled more than four tons of material, such as seat belts and automotive fabric, in 2013. Since
its creation, the organization has recycled more than 17 tons of material. The average family income of cooperative members increased 227% (1) (increase in monthly withdrawal from the
cooperatives from 2007 to 2013). The Cooperative revenues increased 112% from 2006 to 2013.
(1)
Increase calculated by the nominal value adjusted by IGP-M (FGV).
GRI-G4 EC7, EC8, SO1, SO2
Communities / Self-sustaining development in the community / Pernambuco
Interactive
Conscious that developing a program of this magnitude requires collaboration among leaders in the community, Fiat encourages cross-sector development that welcomes partners such
as suppliers, universities and governments into the Arvore da Vida program; to this end, the Fiat Citizenship Network (Rede Fiat de Cidadania) was created, now 57 members strong.
Inspired by its experience creating networks and large-scale sustainability projects tailored to the urban scenario of other Brazilian and Latin American cities, Fiat proposed enlarging the
experience developed in the Jardim Teresópolis area to the city of Betim. The creation of Our Betim was inspired by the experience of the Sustainable Cities movement, and the initiative was
officially launched in December 2010. Guided by principles such as sustainable development, ethics and participatory democracy, the Our Betim movement is a citizens’ initiative independent
from political parties and religious groups, which unites people and social organizations with companies that respect their diversity and independence, on the condition that they are willing
to work together to improve the quality of life in the city of Betim. The movement developed a system with the principal social elements of the city (education, health, employment, poverty,
literacy, etc.), organized by region. This information is essential to influence public policies in order to promote better and more equitable living conditions for the population.
Pernambuco
Throughout its many years of operation, the Group has continued to evolve and develop its relationship with the core communities where it does business. This process has strengthened
its social license to operate in the various areas by gaining respect and credibility among local stakeholders. This is particularly true of projects that have a significant impact, such as the
building of the all-new Fiat Group Automobiles (FGA) plant in the Brazilian region of Pernambuco, started in 2012.
In order to successfully integrate the business into the local community, the company worked with the non-governmental organization AVSI Nordeste to evaluate the social, cultural,
economic and environmental aspects of life in Goiana and 17 nearby municipalities. The results of this comprehensive impact study were essential in identifying initiatives and programs
that will be implemented starting in 2014 in response to local needs. The plant project was presented to more than 800 individuals representing the various interests in the community, with
special emphasis placed on the environmental impact. This multi-stakeholder engagement helped to sow the seeds for ongoing dialogue crucial to the success of this project.
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Communities / Self-sustaining development in the community / Kragujevac
GRI-G4 EC1, EC7, EC8, SO1
Kragujevac
Fiat has launched a number of community-based initiatives in Serbia following the signing of the memorandum of understanding between Fiat Group Automobiles and the Serbian
Government in 2008 and the reconstruction and re-opening of the Kragujevac plant in 2012. These activities are focused primarily in the city of Kragujevac, where the Fiat Automobili Srbija
(FAS) production facilities and plant are located, as well as in the surrounding region.
The activities aim to strengthen development in the area and enhance the synergies between the company and the local community. Based on the Group’s global experience in the field of
sustainable development and growth, initiatives strive to position Fiat as a desirable employer, socially responsible community member and contributor to Serbian development.
Balancing the needs of Kragujevac and the neighboring municipalities with those of the company, activities have focused on employment, living and working conditions, health and safety,
support for local sports clubs, educational programs, philanthropic activities and other initiatives. Examples of these activities in the relevant areas include the following listed below.
Employment To promote employment in this community which has an extremely high unemployment rate, particularly among youth, FAS has sponsored a Job Fair for the past three years. In addition,
through a talent search program, 15 young engineers got the opportunity to start their professional careers within FAS.
Health and Safety FAS has completed the first phase of a planned multi-phase project to create a culture of health and safety in the workplace by teaching awareness of safety protection and precautions
This campaign was organized in collaboration with the city of Kragujevac, in all high schools in the city.
Living and working conditions In September, 2013 the Serbian Minister of Health, Slavica Djukic-Dejanovic, attended an event marking the FAS establishment of a specialized Medical Center for employees. Also, more
than 12,000 FAS employees and family members attended the 2013 Family Day at the Kragujevac plant, which included special gifts for attendees.
Support for local sports clubs FAS is a sponsor of the local basketball club “Radnicki” and the water polo club with the same name. Through its sponsorship, FAS has strengthened its bond with the city and the local
community. The basketball club has helped to organize sports tournaments for FAS employees.
Local philanthropic activities FAS has helped fund the publication of a book about its automotive predecessor in Kragujevac, “Zastava” and has also financially supported the city’s children’s library.
GRI-G4 EC1, EC7, EC8, SO1
Communities / Self-sustaining development in the community / Initiatives in North America
Interactive
Initiatives in North America
In the NAFTA region, the Group engages in a number of robust and innovative programs in the communities where we operate. Many of these initiatives benefited from the Volunteer Policy
launched in 2012 for Chrysler Group salaried workers. Under this policy, in 2013 nearly 3,000 employees in the US committed more than 9,400 total work hours to participate in 76 volunteer
activities. An estimated 3.3 million community residents benefited as a result of these programs.
Chrysler Group US and Canadian workers also continued to support the United Way, donating about €4.3 million in 2013. United Way is a non-governmental organization (NGO) operating
in 45 countries worldwide which is committed to improving living conditions in local communities, focusing in particular on education, financial stability and basic needs.
While many Chrysler Group initiatives in 2013 involved food donation and delivery, the Ram Truck brand participated in an innovative program with CNH Industrial to donate farm equipment
and a new Ram 3500 truck to Forgotten Harvest, the Detroit area’s only food rescue organization. The equipment, worth nearly €290,000, will enable Forgotten Harvest to expand its
farming operations, which provide healthy fruits and vegetables to people who would otherwise go hungry in Southeastern Michigan.
This initiative with Forgotten Harvest was one of many farming-related programs sponsored by the Ram Truck brand, which designated 2013 “The Year of the Farmer.” The Ram brand
campaign kicked off in February when its much-talked-about “Farmer” television advertising spot aired during the US Super Bowl football championship. This year-long initiative set out to
create greater awareness, support and appreciation for farming families, communities and providers. The brand donated about €725,000 to the National FFA Organization (formerly known
as Future Farmers of America) as well as numerous scholarships for students. Funds raised at community events organized by the brand and its partners were distributed to FFA hungerrelief efforts geared toward fighting hunger in local communities across the country.
Other community initiatives focused on conservation efforts that enhance the quality of life for area residents. These included planting trees at the Windsor (Canada) Assembly Plant and a
number of clean up and planting actions along the Clinton River, the center of Michigan’s most populous watershed and home to over 1.4 million people. The river has a major impact on
the water quality of Lake St. Clair, which supplies drinking water to millions of area residents.
Chrysler Group volunteers also joined the community in activities to improve the city of Detroit’s Belle Isle, the largest island park in the US. Employees cut down and removed small trees,
vines and bushes, removed debris and potted native plants to help restore Belle Isle’s natural beauty and play a positive role in Detroit’s revitalization.
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Communities / Supporting education / FIRST Robotics
GRI-G4 2, EC8
Supporting education
Fiat Group believes that education plays an essential role in building and sustaining strong communities. For this reason, we are highly engaged in a variety of training programs and
educational initiatives, particularly for young people, in communities around the world. The Group’s investment in education will help these future innovators obtain the technical skills
necessary to address the many social and environmental topics facing our ever-changing world.
FIRST Robotics
FIRST Robotics was created in 1989 to reach out to and inspire high school students to explore and pursue careers in science, technology, engineering and mathematics. By encouraging
interest in these critical fields at a young age, the Group is helping develop the technical skills necessary for the workforce of the future. The FIRST family of initiatives has grown to include
FIRST Tech Challenge, as well as FIRST Lego League for younger students. Over the past 17 years, The Chrysler Foundation and Chrysler Group have supported these programs across
the US and Canada, with approximately €140,000 donated in 2013.
In 2013, Chrysler Group sponsored 23 FIRST Robotics teams involving a total of approximately 575 students in high schools across the United States. During the year, the program was
also extended to seven schools in Canada, with 175 students participating. Support included not only financial contributions from The Chrysler Foundation, a founding sponsor, but also the
time and talents of Chrysler Group employees and retirees who served as mentors and volunteers. Approximately 2,000 hours during company time were contributed by 47 mentors, with
many more hours of personal time devoted to FIRST Robotics activities. Each year, the teams are given a specific task and are asked to build a robot to perform it. Teams have six weeks
to design, build and test their machines under the supervision of the mentors.
Communities / Supporting education / TechPro2
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TechPro2
The TechPro2 project is a collaboration between Fiat Group Automobiles (FGA) and the Salesian Professional Training Center (CNOS-FAP). TechPro2 was designed to provide specific
technical training to young people who have finished their required schooling – and who often come from socially disadvantaged or troubled neighborhoods. In 2013, approximately
2,300 students took part in the vocational training program, which provided around 2.2 million hours of training in seven different languages at 51 locations around the world.
The educational program consists of both theoretical and practical training at the Salesian Professional Training Centers (designed, renovated and equipped by FGA according to the
standards and regulations that the Group applies to its own network). Since the second year, the program is completed with an apprenticeship or internship in the FGA service network,
allowing young people to develop technical and professional skills, while also gaining useful hands-on experience.
In Italy, starting in 2013, students received training according to existing regional regulations, allowing them to develop the technical skills required to be service advisors. The initiative,
launched in 2012, has attracted the interest of other TechPro2 centers in Europe and around the world, with other centers adopting similar programs. The training has been enhanced with
new educational content that provides technical as well as behavioral skills. The training module was designed and delivered to learn the technical and interpersonal skills needed by a
service advisor(1). Service advisors play a strategic role within the FGA service network because they need both customer management and technical skills.
The entry level Train the Trainer course was enhanced with the introduction of advanced courses in Rome (Italy) on wiTECHPlus diagnostic tools and natural gas fuel systems in vehicles,
focusing particular attention on environmental issues. Also in 2013, a series of targeted actions increased and improved the opportunities for contact between training centers and the FGA
authorized service network.
As part of the upgrade of the new TechPro2 portal, the Virtual Classroom initiative was launched. It focuses specifically on aspects concerning the planning of internships for students and
the sharing of new opportunities for the FGA network and students.
In India, the TechPro2 program resulted in a project called DIKSHA as a collaboration between Fiat India Automobiles Ltd (FIAL) and the Don Bosco Vyawasaik Kendra Prashikshan (Pune).
The program provides education and technical training to youth from across India, focusing on underprivileged & orphan students, who would otherwise lack access to a good education
or livelihood.
Opportunities for student internships as a part of the TechPro2 program continue, making the highly specialized labor needed throughout the Group more readily accessible. In 2013, second
or third-year Italian students participated in 762 internships, 40% of which were within the FGA authorized network (2).
The effectiveness of the project was confirmed by a study carried out by the CNOS-FAP on a sample of 377 students from the previous school year. The analysis found that, in spite of the
current challenges in the automotive industry, 34% of the apprentices had already found a job, with this rate being more than double in emerging countries, such as India.
The service advisor is the person in the Group network who is responsible for the preliminary checks on the vehicle and for customer relations.
Source: CNOS-FAP, 2013.
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Communities / Supporting education / Other projects
Other projects
The Group’s commitment to educational initiatives for youth led us to support a number of innovative projects in 2013.
United States The Chrysler Foundation, an independent, nonprofit organization sponsored exclusively by Chrysler Group, helped students at the Macomb Mathematics Science Technology Center in
Warren (US) literally “reach for the stars”. A grant from the Foundation enabled high school students to send one of their science experiments to the International Space Station as part of
the Student Spaceflight Experiments Program mission. Overseen by the US National Center for Earth and Space Science Education, the Student Spaceflight Experiments Program typically
gives 300-plus students across a community the ability to design and propose real microgravity experiments to be conducted aboard the International Space Station. The students’ project
launched on January 9, 2014 from the US National Aeronautics and Space Administration facility in Virginia and headed for the space station for the experiments to begin.
Chrysler Group also provided support to the nonprofit organization Winning Futures, in the form of mentors from the company and grants for scholarships. Winning Futures partners with
high schools in the Detroit (US) area to focus on character value development, self-exploration, goal setting, job readiness skills, overcoming obstacles and strategic planning. More than
95% of students from the program continue their education past high school. By serving as positive adult role models, Chrysler Group employees help the students make positive changes
in both their school and home lives, and demonstrate the Group’s commitment to “hands-on” engagement in the community.
The Group also recognizes that children cannot focus on their studies when they are hungry. In 2013, the Chrysler Foundation collaborated in an innovative partnership with the Detroit Public
Library and Forgotten Harvest, a Detroit-area (US) food rescue organization. This program provides school-aged children with free nutritious snacks and lunches at more than a 20 Detroit
(US) library branches during the library’s summer and after-school reading programs. Due in part to the lunch program, the number of children participating increased in 2013 to 6,598 – up
23% from 2012. And while the further impact on families has not been measured, the number of children accompanied by a parent or adult also has increased and it’s not uncommon for
them to take part in the food program too. In total, 11,000 lunches were served over a 10-week period during the summer of 2013.
Italy In the EMEA region, the Master’s Course in Industrial Automation organized jointly by Politecnico di Torino and Comau for the Fiat Group, provides young people the training and
employment opportunities necessary to help them develop their talents and put them into practice in those sectors of Italian industry where there is a growing demand for these skills.
Funded by the Piedmont Region, the course is a training and employment pathway that aims at attracting and selecting the best graduates in engineering from Italian and foreign universities,
helping them specialize in industrial automation, and finally hiring them through a two-year advanced apprenticeship contract.
The course is held entirely in English and provides 540 hours of lessons the first year, partly conducted by Comau managers, and 660 hours of project work at the company the second
year. The growing number of young engineers hired by the company testifies to the initiative’s success: 15 graduates attended the first session, 19 students the second, and another 25 have
started the latest session of the Master program, for a total of 59 new hires in three years.
In 2013, under the agreement with Politecnico di Torino and in collaboration with the Associazione Tecnica dell’Automobile (ATA) and Centro Ricerche Fiat (CRF), three new voluntary courses
were launched as part of the VEP (Voluntary Educational Program) and Summer School. The programs, each totaling 120 hours, focused on environmental sustainability issues and some
of the most important ways to reduce vehicle emissions. This program provides students with a post-graduate degree in Automotive Engineering and the opportunity to gain the most upto-date knowledge directly from those who deal with this challenge at the company.
Communities / Supporting education / Other projects
Interactive
Serbia Among the community-based initiatives in Serbia surrounding the Kragujevac plant, Fiat Automobili Srbija (FAS) has developed and launched a number of projects to support education. The
collaboration with the University of Kragujevac and local schools is being strengthened to increase the level of education and technical training in the automotive field. Inspired, initiated and
supported by FAS, the University of Kragujevac has opened two new study programs – Italian language and automotive engineering. During 2013, professors from the Faculty of Engineering
Sciences and the Polytechnic Academy have conducted lectures and expert training for FAS workers in various fields – robotics, hydraulics, electrics, metrology and pneumatics.
Brazil Fiat Group also promotes educational activities for the children of employees. For example, in Brazil, as an incentive for elementary school students, Fundação Fiat distributes school
supplies to the children of Group employees at the start of the school year. In addition, the Maratona Cultural initiative, supported by Fiat Group companies in Brazil for the past 13 years,
aims to support the educational progress of employees’ children at the elementary and middle school levels.
In Betim (Brazil), the rate of students participating in the Árvore da Vida Jardim Teresópolis project who passed their final exams at school made a leap from 71% in 2004 to 96% in 2013,
and the percentage of students attending school grew from 78% to 99.5% in the same period.
Fiat Group also developed the Árvore da Vida Professional Training initiative in seven Brazilian States, providing the professional education young people need to be employed in the
company’s dealer network. Since 2006, around 670 students benefited from this program, with an employment rate of 87%. This initiative helps Fiat Group to contribute to the implementation
of national policies for youth training and job creation in Brazil.
Also, through this program the Group is fostering the employability of women. In the automobile sales consultant course, women are the majority in the classroom. Six of the 18 graduates
of the first electromechanical class in Porto Alegre, capital of the state of Rio Grande do Sul, were women.
The Group’s involvement in the Árvore da Vida program had provided us with varied and substantial experience in developing multi-stakeholder relationship strategies. By listening to
communities and other key partners, we have been able to build socially responsible best practices with them. Consideration of stakeholder needs has become an integral part of the way
business is conducted.
Fiat Group’s commitment to multi-stakeholder community engagement is also demonstrated by the recent building project of a new plant in the Pernambuco region of Brazil.
During 2013, specific educational activities were developed for the community around the plant, focused on promoting better education in the region and ensuring the inclusion of the
population in the professional activities of the automotive industry.
These activities include:
n partnership between the Pernambuco Government and Fiat for the development of automotive courses (basic qualification, technical and college courses) starting in 2014
n training preparation of the public school teachers on technologies, processes and automotive products
n collaboration with the Universities of Pernambuco and other institutions to increase the level of education and technical training in automotive fields
n partnership between the Pernambuco Government, Politecnico di Torino and Fiat to prepare future engineers for the automotive industry. In 2013, five engineers with double degrees
(Brazil and Italy) were hired into the Pernambuco Program. There are 15 young talents participating in this initiative, or in studying.
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Employees / Workforce insights
GRI-G4 DMA, SO1, LA1
Leadership for the future
Human capital is a crucial factor in providing the Group with a competitive edge at the highest levels of the automotive industry and in succeeding
in its ambitious goal of creating sustainable value over time for its stakeholders. The degree to which the technical expertise and motivation of
our employees contribute to the success of our global industrial group is strongly demonstrated by the work already completed over the past few
years to integrate Fiat and Chrysler’s respective cultures, transform differences into strengths and break down geographic and cultural barriers,
leveraging potentials. The 2014 acquisition by Fiat of a 100% equity interest in Chrysler further fueled the expectation for both organizations to
leverage their unique characteristics for the benefit of the combined enterprise.
Workforce insights(1)
Motivated and committed employees have always been crucial to the Group’s success. Our ability to build a sustainable enterprise that competes in the global marketplace is dependent
upon the Group’s single most important resource: our people. Fiat Group strives to provide its employees with growth opportunities that continuously foster international collaboration,
capitalizing on diverse experience, background and skill. The Group’s approach to human capital management rests on structured processes applied globally across all regions to ensure
harmonic governance and management of employee development paths.
The Human Resource (HR) function is responsible to support the business leaders in all areas of employee management. Robust Human Resource processes are intended to deal with
all the fundamental phases of the employee career life cycle: from recruiting to retirement. The recruiting and hiring processes at Group companies are supported worldwide by modern
scouting and recruiting tools aimed at finding the best talents in the employee population, (through internal job postings), as well as external applicants (through career websites, recruiting
platforms, and selected service providers).
Customized according to the needs of the local community (except when already set by law), hiring tools, methods and specialists adhere to the principles of an Equal Opportunity Employer
policy which highlights Group commitment to respecting the diversity of job applicants during internal recruiting and hiring processes. Results-oriented programs are designed to monitor
and analyze recruiting agency practices and can be used as necessary to promote consistent application of the policy toward external recruiting services. Additionally, to monitor potential
cases of discrimination, Human Resources supports investigations and takes appropriate corrective actions, where warranted.
Unless otherwise specified, workforce data is calculated at year-end.
(1)
Interactive
The evaluation process adopted worldwide to assess employee leadership and performance plays a key role in the management model of our people. Our Performance and Leadership
Management (PLM) process applies to 100% of managers and professionals, plus a portion of salaried staff, and is conducted annually. Data related to employee performance are stored
in dedicated information systems, accessible to HR representatives, managers and employees eligible for the process, each one of them having access to proper information.
To support the management of employees along their career path, the company organizes classroom and web-based training initiatives for the acquisition and reinforcement of both managerial
and technical skills, as well as coaching and team building pathways. These activities support the development of a Group-wide culture of embracing change, driving accountability and
fostering empowerment. Training activities are monitored and measured on an ongoing basis, with training program effectiveness and efficiency evaluated using a set of key performance
indicators. Effectiveness is generally measured on the basis of participant satisfaction, improvement in knowledge/individual skills, and, when relevant, applicability of concepts learned to
the participant’s work process. To verify whether the desired outcome is achieved, training efficiency is monitored by comparing training hours by both type and category and examining
expenditure levels against international best practices.
The Group recognizes it is important to continually measure and understand employee attitude, opinion, motivation and satisfaction. With this in mind, along with the many opportunities that
the Human Resources function organizes to maintain an open dialogue with employees, powerful ad-hoc tools are adopted as necessary. These include but are not limited to engagement
and people satisfaction surveys, and launches initiatives aimed at collecting employee suggestions and increasing the level of their participation in company processes and progresses.
To maintain its appeal as an employer throughout the final stages of an employee’s career, initiatives to support employee transition from employment to retirement are made available.
Similarly, detailed pension estimator tools were available in certain countries, as well as savings plan reinvestment initiatives and retirement seminars, webinars and retirement counseling.
All employee data are monitored and reported on a monthly basis for headcount reporting. IT systems support this activity.
Employees trend by year For instance, the turnover rate represents a key indicator for Group workforce reporting and is periodically monitored both
Fiat Group worldwide (no.)
at the company and headquarter level. The Group HR Reporting & Projects team is responsible, on a monthly basis, for
data collection and trend monitoring through dedicated HR data systems, with support provided by local HR representatives
responsible for data maintenance and update.
2011
197,021
During the year, the Group carried out activities in the automotive sector through companies located in approximately 40
countries and sold its products or services to customers in more than 150 countries. Worldwide shipments were up 3% over
2012
214,836
the prior year to 4.4 million units. Progressive regionalization, the reorganization of the business into operating segments and
the export challenge, are crucial choices for the Group’s solidity. This also creates sources of employment opportunities and
growth opportunities for the economies of the countries in which the Group operates. This is seen in the steady increase in the
225,587
2013
Group’s workforce. Group employees, as of 31 December 2013, were 225,587, a 5% increase over year-end 2012.
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Employees by geographic area
Employees by operating segment
e
d
d
a. 39.5% Europe
c
a
a. 68.3% Mass-Market and Premium Brands
c
b. 36.0% North America
b.
c. 21.4% Latin America
d.
3.0% Asia
e.
0.1% Rest of the world
1.6% Luxury and Performance Brands
c. 26.2% Components and Production Systems
d.
b
b
3.9% Others
a
Employees by age
Employees by category(2)
d
c
d
a.
b
a
a. 20.0% Up to 30 years
70.4% Hourly
b. 14.6% Salaried
b. 27.3% 31 to 40 years
c.
13.9% Professional
c. 29.5% 41 to 50 years
d.
1.1% Manager
b
d. 23.2% Over 50 years
c
a
The shift of the Group’s product strategy toward the Premium segment has positively impacted some production areas in EMEA. This is the case of the Italian plant Officine Maserati
Grugliasco (OMG) which had been inactive from September 2006. It was then acquired by Fiat Group in November 2009 and finally inaugurated after refurbishment in January 2013, under
the new name of Avv. Giovanni Agnelli plant. The plant, located in Grugliasco (Italy), is the production site for the new Maserati Quattroporte and the Maserati Ghibli.
Employees are divided into four main categories: hourly, salaried, professional and manager. Professional encompasses all individuals who perform specialized and managerial roles (including “professional” and “professional expert” under the Fiat S.p.A.
classification system and “mid-level professional” and “senior professional” under the Chrysler Group classification). Manager refers to individuals in senior management roles (including those identified as “professional masters,” “professional seniors” and
“executives” under the Fiat S.p.A. classification system, and “senior managers” and above under the Chrysler Group classification).
(2)
Employees by length of service
Employees by level of education
d
a
a.
b
e
a
5.5% Over 30 years
b. 15.4% 21 to 30 years
a. 23.1% Elementary/middle school
b. 44.5% High school
c
c. 26.3% 11 to 20 years
c. 25.2% University degree or equivalent (3)
d. 12.8% 6 to 10 years
c
d
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d.
e. 40.0% Up to 5 years
7.2% Not tracked (4)
b
Employee turnover
Worldwide, the highest concentration of Group employees remained in the 41 to 50 age
group, and approximately 40% of the workforce has been employed for five years or
Employees at 31 Dec 2012
214,836
less. In recent years, the impact of the demographic changes in progress has started
New Hires
34,245
to be reflected in the slight yet progressive aging of the Group’s workforce: continuing
Departures
(25,542)
into 2013 there was a steady global increase in the number of employees in the over-50
∆ scope of operations
2,048
category compared with 2012, while the distribution of other categories was stable. No
225,587
differences were registered between genders. To respond to aging trends observed in
the working population, the company develops specific initiatives in areas that range
from workstation ergonomics to career transition to retirement programs.
With respect to education level, there was a continuous increase for both men and women having higher levels of education, with 23% of employees holding a university degree or
equivalent qualification. Roughly 45% of Group employees had completed high school.
The number of employees having completed elementary/middle school was stable at about 25%. During 2013, efforts made to improve data quality and reporting systems continued to lead
to a significant drop in the percentage of the workforce for which it is not possible to report the level of education, mainly composed of hourly employees.
Calculation subject to approximation resulting from the comparison of academic qualifications among different countries.
Cases for which it is not possible to report level of education as the data is not always tracked in Group information systems, particularly with reference to hourly employees.
(3)
(4)
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GRI-G4 10, 13, LA1
Employees / Workforce insights / Turnover
Pernambuco project The construction of the new plant in Pernambuco (Brazil) is an excellent example, as well as a clear signal of the Group’s strategy to expand and to reach the highest levels of competitiveness
at every location of operation. The plant is expected to start activities
during the first half of 2015 with an initial production capacity of 200,000 vehicles per year. The site will also have an integrated supply park, product engineering center and testing
facilities.This new industrial presence in the area will be characterized by an approach to development and deruralization based on participation that provides for the engagement of local
communities early on, starting from the very first design phases and assessments of local needs.
Turnover
In 2013 a total of 34,245 people were hired, 47.4% of whom were in North America, which continued to be the area particularly benefited by an increase in production volume. About 25,550
employees left the Group throughout the year. Changes in the scope of operations also led to a net increase of 2,048 employees. In October, the Group completed the acquisition of VM
Motori, a company employing approximately 1,150 people. Located in Cento (Italy), this plant specializes in the production of advanced diesel engines.
In 2013, about 96% of Group employees were covered by an unlimited-term employment contract and about 99% were employed full time. Fixed-term contracts were kept to a minimum;
the use of this type of contract was distributed over the different geographic areas ranging from a minimum of 0.4% (Latin America) to a maximum of 2.1% (North America) of all contracts.
In 2013, despite the ongoing global economic crisis, about 6,900 temporary contracts were converted into unlimited-term contracts (of which approx. 8% were female employees). A total
of 1.3% of the Group workforce is employed part-time, of which about 70% are women.
Employees by contract type
Fiat Group worldwide (%)
Unlimited-term contract
Fixed-term contract
Employees by contract and employment type
2013
95.7%
4.3%
2012
94.8%
5.2%
2013
Europe
North America
Latin America
Asia
Rest of world
Total
Unlimited-term
Total
89,030
81,365
48,306
6,699
187
225,587
Full-time
85,461
76,512
47,400
5,238
187
214,798
Part-time
952
6
15
4
977
Fixed-term
Full-time
2,609
2,887
890
1,457
7,843
Part-time
8
1,960
1
1,969
GRI-G4 DMA, LA11
Employees / Management and development
Interactive
Management and development
Through robust people management processes that cover the entire employee life-cycle – from selection to retirement – the Group is committed every day to developing existing talent,
focusing on business objectives as well as individual growth opportunities. The company not only recognizes that human capital is essential for its success, but also believes that it has
a responsibility toward its employees.
The Group’s approach to human capital management and development rests on five key principles:
n Merit must always be recognized and employed
n Leadership is a worthy calling, which enhances people’s lives
n Taking on the competition is the stimulus for aiming ever higher
n Best-in-class performance is the goal we want to achieve
n Keeping our promises is what makes us credible and reliable.
Those principles are essential to the Group culture and have been embodied worldwide into the Group people management processes, through which employees’ performance is evaluated
and aspirations are embraced.
Performance and Leadership Management (PLM) is the appraisal system adopted worldwide to assess Group employees (manager, professional and salaried).(1) It is one of the key
processes used by Fiat Group in the management and development of human resources.
Through PLM, specific targets are set to help guide and assess employees in relation to their results and leadership behavior.
This unique skills mapping and evaluation process, which is the basis for variable compensation,(2) is supported by information systems that enable managers to constantly access up-todate information on the people within their organizational unit, as well as those not directly in their reporting line. In this way, the individual performance of each employee is accessible and
can be examined by upper management within the organizational structure. The PLM process serves not only as the basis for all human resources management decisions, but is also a
fundamental element specifically in talent management, succession planning and sustainability culture growth. Sustainability targets are in fact incorporated every year in the performance
management system for 100% of individuals with responsibility for projects included in the Group Sustainability Plan, for Group Executive Council members and a majority of second-level
reports to sector CEOs.
During 2013, complete performance and leadership mapping processes were conducted for around 54,500 Group employees, including all managers and professionals, and a portion
of salaried employees.
The proportion of salaried employees evaluated has increased on a yearly basis, from 68% in 2012 (3) to 69% in 2013. 100% of all hourly employees complete a pre-employment screen and
an initial probationary evaluation through WCM performance management system.
The importance of the evaluation process to the company’s success is also demonstrated by the five days dedicated to the process by Fiat S.p.A.’s Chief Executive Officer and Chrysler
Group’s Chief Executive Officer and Chairman, together with the Regions and supporting businesses Heads in analyzing the results of the PLM process, with particular emphasis on
senior managers. Concrete measures in terms of the career development of individual employees combined with the evolution of the business will be defined and planned, determining
organizational changes, cross-region and cross-company transfers as well as key positions filled largely by internal candidates.
In some areas, a similar appraisal system, named Performance & Behavior Feedback, is in place for salaried employees.
The PLM process is the basis for the individual contribution element for manager and professional employees’ variable compensation.
(1)
(2)
(3)
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Employees / Management and development / The Performance and Leadership management: yearly calendar
GRI-G4 DMA
The Performance and Leadership management: yearly calendar
At the beginning of each year, managers discuss individual targets with each team member. Then, at year-end, individuals are evaluated on performance (i.e., achievement of business
targets) and leadership (i.e., the ability to lead change, work as part of a team and manage people). These two dimensions – performance and leadership – are plotted on a nine square
grid which indicates a summary appraisal of the employee’s results. Consistency in the evaluation process is ensured by comparing the rating of other employees in the same category/
role. Calibrations within an expected distribution curve reduce the risk of inequity and align appraisal outcomes through defined criteria. The final results are discussed in a meeting between
the manager and the employee, during which an open dialogue on areas identified for improvement contributes toward validating the employee’s performance and strengthening the bond
with the organization. Upon completion of this process, employees can access their evaluation on-line, add details on their professional aspirations and request specific training to address
identified areas of improvement through a variety of actions (such as coaching, exposure to senior management, etc.).
Other individual performance evaluation systems In addition to the PLM evaluation process, other performance evaluation processes are in place for individual performance related compensation. For salaried and hourly employees working
at plants in Brazil, Group companies have a variable bonus called Profit Sharing Plan (PLR), which entails participation in profit and results (normally negotiated on a yearly basis). The
bonus is paid individually and takes into account collective and individual key performance indicators such as annual production, World Class Manufacturing scores, quality index, customer
satisfaction and individual attendance. This system applies to 19,534 employees.
GRI-G4 DMA, LA13
Employees / Management and development / Talent management and succession planning
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Talent management and succession planning
The integration between Fiat and Chrysler Group continued to generate further opportunities for the business during 2013, particularly in terms of skills, experience and ability sharing to
provide greater performances across the entire organization.
The Group is called to address the challenges of the industry with ever greater flexibility and firmly believes that success can be achieved by ensuring the presence of empowered individuals
in the organization and by appointing the people with the right skills to key positions. Talent management paves the way to reaching this objective by identifying the most talented employees
and fast-tracking their development.
The selected individuals are offered professional opportunities that allow them to gain experience in other geographic or business areas as well as opportunities for greater contact with
senior management. The program focuses on ensuring that all key leaders are developing both a short- and long-term succession plan. Through this process, attention is focused on
less experienced talented individuals who are not yet widely known within the organization, but who warrant investment as potential leaders for the future. Consequently, the Group can
develop effective succession plans that give priority to internal candidates. The process is conducted in a uniform manner for all countries, business units and levels of corporate hierarchy
Group-wide. Key individuals, selected on the basis of their professional profile (in terms of performance and leadership) and potential for growth in positions of increased responsibility, are
evaluated through a process that directly involves management, from their immediate supervisor to senior management representatives.
In 2013, following the evaluation of all managers and professionals, Talent Reviews were performed for Group employees, across 20 professional families/supporting businesses/functions.
Since 2011 senior managers, during the Talent Review sessions, can view the profiles of both the mid-level talents and senior managers identified in succession plans, through the dedicated
Talent Review tool.
In 2013, the Fiat S.p.A. Chief Executive Officer, together with the members of the Group Executive Council and their supporting Head of HR, dedicated two full days to talent management,
focusing on the assignment of key roles, the analysis of talents and initiatives to support their development and international/cross-functional career plans.
In 2014, the Group will continue to evaluate its Total Compensation to maintain alignment with market best practices. Part of this evaluation will include a Long-Term Incentive Plan as well
as various other programs. This evaluation is important to ensure the engagement and retention of individuals who are the key to the Group’s continued development.
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Employees / Management and development / Local minimum wage
Local minimum wage
In many countries, minimum wage levels are established by law and, in some cases there are also variations based on regional, state or other criteria (e.g., in the UK, France, Spain, the
United States and Brazil).
Where no specific law exists, a minimum wage is often established by collective bargaining agreements between employer associations and union representatives. This is the case in Italy,
Germany and Belgium, for example, where pay and employment conditions are negotiated at the regional or national level, with the possibility of establishing higher wage levels at the
company level. It is important to note that minimum wage levels are also established on the basis of specific economic, social and political circumstances and, therefore, do not allow for
cross-border comparisons.
In order to evaluate the adequacy of entry-level salaries in each country, the Group conducted an analysis which shows that in all countries monitored,(1) entry-level salaries (2) are at least
equal to, if not higher than, the statutory minimum or applicable non-company collective labor agreement.
Workplace equality within the Group is also seen in the comparison between minimum entry-level wages by gender. Considering the 27 countries included in the survey sample, wage levels
were found to be identical between men and women.
Comparison between entry-level salary and minimum wage
654
Fiat Group worldwide (minimum wage = 100)
297
199 212 213 215
100 100 100 100 100 100 100 100 100 100 100 100 102 108 109 113
130 136 139 140
171
100
Venezuela
South Korea
Argentina
United States
Romania
Canada
Poland
Czech Republic
Mexico
Brazil
Belgium
Malaysia
Turkey
China
Serbia
Japan
United Kingdom
Spain
Russia
Portugal
Italy
India
Ireland
Germany
France
Austria
Australia
minimum wage
in each country
The survey covered around 83% of the workforce of the 27 countries mapped and about 97% of the Group’s total workforce.
In accordance with the GRI-G4 guidelines, entry-level salary is defined as the minimum compensation paid to a full-time employee hired at the lowest pay scale/employee grade on the basis of company policy or agreements between the company and
trade unions. For each country, results are based on the company with the lowest ratio of entry-level salary to minimum wage. Figures reported are as of 31 October 2013.
(1)
(2)
GRI-G4 DMA, LA2, EC3
Employees / Management and development / Benefits
Interactive
Benefits
The Group’s compensation and benefits packages are aligned with international best practices with the goal of fair and attractive economic rewards for all employees. Fiat Group offers a
broad range of benefits depending on an individual’s grade level, country of employment and local policies. In October 2013, Fiat Group conducted its annual analysis of various company
compensation and benefits (on a sample of about 86% of the workforce). The findings are provided in the following table.
Those findings show that more than 63% of employees are eligible for a pension plan and, during 2013 around 71% of these joined this type of plan. This figure represents 45% of the total
population mapped.
Supplementary pension plans provided by the Group fall into two categories:
n defined contribution pension plans, for which contributions (by employees, the company or both) are defined at the outset, and benefits depend on the total sums allocated to the fund
supporting the plan and the financial returns of the fund itself
n defined benefit pension plans, in which the future benefits paid out to employees are defined at the outset, and contributions may vary over time to guarantee payment of the pre-defined
benefits.
Most existing pension plans at Group companies are defined contribution plans.
Company-provided health plans are also available for Fiat Group employees, and about 81% of the surveyed
population was found to have joined such a plan. Child care and elderly care services are also in place
at some locations to help employees achieve work-life effectiveness by responding to their needs. The
Group also promotes a healthy lifestyle through comprehensive wellness programs and facilitates access
to dedicated sports facilities.
(4)
(1)
(2)
(3)
Includes kindergarten, free gymnasium access for children, assistance with homework, summer camps/holidays, other services dedicated to child care.
Includes nutrition coaching, smoking cessation training, medical check-ups, medical screening, other wellness programs.
Includes benefits such as company cars, housing, interest free loans.
Includes free gymnasium access, gym/fitness courses and other sports initiatives.
Principal employee benefits
Financial benefits
Pension plans
Company-provided health plans
Life insurance
Financial support for disability/invalidity
Employee cafeteria or lunch vouchers
Child care services(1)
Wellness and nutrition programs(2)
Gym/fitness services(3)
Others(4)
% of employees entitled to benefit
63.4
79.9
62.8
53.7
64.0
37.6
62.0
42.0
44.9
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Employees / Management and development / Training
GRI-G4 DMA, LA9, LA10
Training
The Group is committed to the ongoing development of its workforce through a number of alternatives, such as job rotation, coaching, mentoring, training and development. To this end,
in 2013, at Fiat Group, professional development through training and skill-building initiatives continued to be one of the key elements in the Group’s strategy for the development and
continual strengthening of skills for its staff. The Group’s investment in training reached a total of about €76 million. The slight decrease in investment in training is due to the priority given
to activities focused on on-the-job training, e-learning and the transfer of skills between colleagues. There was no reduction in the number of hours of training, or the quality of the results
of these activities.
The Fiat reference center for learning activities, Fiat SEPIN,(1) supports these efforts as needed, particularly in the rollout of required standards, regulations, and behaviors (e.g., Health &
Safety, Corporate Governance), and of key techniques and skills within the automotive field (e.g., Research & Development, Manufacturing). At the individual business level, those in charge
of training are responsible for the development of customized programs created to respond to specific needs and in line with Group guidance. Regular meetings, dedicated web portals,
virtual classrooms, and collaborative learning sessions are some of the tools used by training managers and specialists to share best practices, coordinate formal knowledge networks, and
promote synergy with regard to standards, methods and training objectives.
Since 2012, the Group has utilized an e-learning platform that is designed to increase the ability to manage and monitor the entire Group training process with a common set of rules
and support remote training worldwide. Training tools and content are accessible via the platform, which training specialists can update at any time with new courses, modules, and
other materials. In addition to providing on-line courses, the platform also offers training process management, including management of programs, invitations to courses, evaluation
questionnaires, reporting, cost tracking, etc. Starting in 2013, the platform enables an even more comprehensive and systematic approach to monitoring learning processes and related
investments.
During the year, more than 4.2 million hours of training were provided (+1.1% vs 2012) to approximately 186,000 Group employees, of whom about 149,400 were men (80%) and
36,400 women (20%).
Of the employees involved in training activities, 59.5% were hourly employees, 38.4% professional and salaried employees, and 2.1% managers. Each employee received an average of
approximately 19 hours of training; specifically, 16.7 hours for hourly employees, 24 hours for professionals and salaried employees, and 32.3 hours for managers. In 2013, male and female
employees have benefited, on average, from a total of 27.7 and 20.1 hours of training respectively.(2)
Investments in classroom, on-line and on-the-job training focused primarily on the Group’s four core training concepts: development of job-specific know-how (82%), managerial skills (7%),
cross-cultural awareness and language skills (7%) and corporate campaigns, rules, commitments (4%).
In 2013, training on issues related to sustainability continued: the Group sustainability course has been made available on unrestricted basis and delivered to approx. 14,550 Group salaried
employees worldwide in addition to all Fiat professionals worldwide and approximately 16,950 Chrysler Group salaried employees and contact workers who attended the course in 2012.
In addition, Fiat SEPIN oversees the benchmarking and innovation of learning methods and solutions, supporting the management of training program financing and, in partnership with Fiat Group Purchasing, facilitating the selection and certification of external
training providers.
Averages calculated based on total workforce and not exclusively on employees enrolled in training courses.
(1)
(2)
Employees / Management and development / Training
Training expenditures and activities
Spending on training (€ million)
Percentage of personnel costs (4)
Hours of training provided (thousands)
Employees involved (thousands)
2013
75.7
0.8
4,232
185
2012
83.7
0.9 (5)
4,206
135
2011(3)
80.3
1.1
4,048
139
2013
53,242
4.3
2012
93,232
2.1
Training on corporate governance, anti-corruption,
human rights, non-discrimination and sustainability
Employees involved (no.)
of which manager (%)
Corporate initiatives and on-the-job training sessions are designed to continually channel information to employees
and keep them up to date on health, safety, and environmental issues. In 2013, around 1,184,000 hours of training
were delivered on health and safety topics. 218,544 hours of training were dedicated to environmental issues.
The model, adopted in 2012, to evaluate benefits and potential savings from training initiatives continued to be used.
Based on the industry leading World Class Manufacturing (WCM) Cost Deployment framework, this model is called
Cost Deployment of Training.
With reference to the training initiatives most specific to field activities, the potential savings generated
from as a result of the training were calculated. The application of this methodology to on-the-job-training has
allowed for the generation of process efficiencies resulting from investments in employee training as well as from
converting them into their corresponding economic value. In 2013, spending in the training activities monitored
using this methodology amounted to about €1.3 million and generated a potential savings of approximately
€2.5 million.
Personnel costs totaled €9,352 million in 2013, €9,110 million in 2012, €7,629 million in 2011.
data differs from the one reported in 2012 Sustainability Report due to adjustment to the calculation methods of personnel costs.
(3)
(4)
(5)
Interactive
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Employees / Management and development / People Satisfaction Surveys
GRI-G4 DMA
People Satisfaction Surveys
The Group conducted a first extensive people satisfaction survey in 2010, in collaboration with the Great Place to Work Institute® (GPTW), a globally recognized organization that assists in
evaluating results against national and international benchmarks. 2011 was dedicated to the deployment of action plans focused on the main areas for improvement raised in the survey.
The Group completed a second extensive survey (1) in 2012 in order to again monitor satisfaction levels, needs and requests of employees. This survey also followed the GPTW® methodology,
ensuring comparability of scores. In 2013 the Group completed satisfaction surveys in selected companies and departments.
People satisfaction survey (2) has been conducted following GPTW® methodology on more than 35,000 Magneti Marelli employees worldwide. Engagement surveys were conducted at
Chrysler Group involving 1,700 salaried employees across certain functions and satisfaction surveys were completed by more than 200 employees working at National Sales Companies
across Australia and China.
Within the EMEA region, about 10,000 employees representatives of Mass-Market and Premium Brands operating segment, took a Computer Assisted Web Interviews conducted by
a specialized research institute. The survey included questions useful to provide an updated framework on the average level of employees’ satisfaction. The definition of action plans
according to the above surveys results is ongoing.
Launched in part in November 2011.
Launched in part in November 2013.
(1)
(2)
GRI-G4 DMA, LA12, LA13
Interactive
Employees / Diversity and equal opportunity / Equal opportunity employer
Diversity and equal opportunity
Inclusion at Fiat Group inspires a company culture where every individual is encouraged to reach his or her
full potential by leveraging and celebrating uniqueness. An organization differentiated by gender, ethnicity
and culture is considered a distinct advantage for business competitiveness, and represents a promise for
challenging working experiences and opportunities. To this end, the Group seeks to foster a work environment
in which employees feel respected, valued, and included, and is committed to attracting a diverse, highly
motivated and innovative global workforce.
Equal opportunity employer
“
With the increased emphasis
on technology, partly due to new,
non-traditional competitors entering
the auto space, the Fiat-Chrysler worker
of the future will require a different
skill-set than those of the past
”
Fiat Group rejects discrimination, particularly discrimination based on race, gender, sexual orientation, physical
Stakeholder Engagement Event, Detroit (US)
and health conditions, disability, age, nationality, religion or personal beliefs.
The Fiat S.p.A. Code of Conduct formalizes the Group’s commitment to offer all employees equal opportunities
in every aspect of the employment relationship, including recruitment, training, compensation, promotion,
transfer and departure.
Enabling career opportunity and advancement that is free from discrimination, and respecting and enhancing diversity are among the commitments highlighted in the Fiat S.p.A. Human
Capital Management Guidelines and Human Rights Guidelines. At Chrysler Group, the Discrimination and Harassment Prevention Policy addresses these same objectives.
Due to Fiat Group’s global presence, there may be significant differences in legislation among countries where the Group is present, as well as different levels of employee awareness,
concern and capability in applying the principles of Non-discrimination. The company Code of Conduct and specific guidelines aim to ensure that the same standards are applied worldwide.
Company standards, as stated in the Code of Conduct, have precedence in jurisdictions where legislation is less stringent.
In its commitment to ensure an inclusive work environment and equal opportunities for all employees, Fiat Group adopts a progressive total compensation system based on equitable
and fair criteria.
At the heart of the company’s compensation philosophy lies the concept of meritocracy, which acknowledges the value of a high performance culture and the importance of a market-driven
approach.
Additionally, the Group employs a formal process to monitor application of its core equity and fairness principles to compensation levels, annual salary reviews and promotions. In particular,
these reviews are based on standard criteria, and do not allow manager discretion of those receiving compensation actions. Combined, all of these actions are designed to ensure that the
company’s total compensation system, in line with all other internal processes related to people management, promotes equal opportunity.
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Employees / Diversity and equal opportunity / Workforce inclusion
GRI-G4 DMA, LA12
Workforce inclusion
Ensuring the same rights and opportunities for both men and women in the workplace is a fundamental principle of Fiat Group’s human resources management. This commitment is in line
with the UN Gender Equality Seal (GES) definition of gender equality as a human right and business imperative. The contribution of both genders is essential for the long-term success of
the company as it creates a wider, more diverse pool of talent and improves the company’s understanding of its customer base.
The percentage of female managers was stable in 2013 at more than 13%.
Several initiatives are in place across the Chrysler Group to foster among employees the importance of having a
Women employees by geographic area
diverse and inclusive workforce.
2013
2012
Among these, the Chrysler Group Diversity Council was established more than a decade ago in the United
21.6
Europe
21.6
States. The Council’s commitment led to the launch of the Diversity Work Stream strategy in 2011. The Council
19.4
North America
22.0
implemented 3 new Workstream initiatives in 2013, for a total of 17. Among the Workstreams implemented since
22.4
Latin America
8.8
2012 were such initiatives as bilingual call centers and expanded utilization of the Employee Resource Groups.
9.6
Asia
29.7
Diversity in North America is also represented by the longstanding Employee Resource Groups (ERG). Chrysler
29.8
Rest of world
27.5
Group’s ERGs (African American Network, Hispanic Network, Asian Network, Native American Network, Gay and
Total
19.6
19.2
Lesbian Alliance, and Women’s Forum) provide multicultural learning opportunities and career development avenues
such as mentoring and networking for employees, as well as support for many community outreach initiatives and
charitable events. Participation in ERG-sponsored activities is encouraged and open to all salaried employees from
Women employees by category
all facilities with the aim of maximizing social and cultural exchange.
During 2013, Chrysler Group continued its internship program to facilitate the integration of veterans from the
2013
2012
US
armed forces into the company’s engineering and product design departments. A total of 17 internships
18.0
Hourly
17.4
started
during the year. In Brazil, Fiat Group Automobiles is a partner of Minas Pela Paz (MPP) a non governmental
28.9
Salaried
29.1
18.3
Professional
18.2
organization that works for building a culture of peace in society, through social inclusion, with a view to transforming
13.1
Manager
13.1
the lives of socially vulnerable people, including former prison inmates.
Employees / Diversity and equal opportunity / Employee representative involvement
Interactive
Employee representative involvement
Fostering equal opportunities for both men and women in the workplace is also one of the common objectives shared by the Group and employee representatives. Globally, equal
opportunity is an issue discussed in the social dialog conducted according to local regulations and practice. Every two years, in compliance with Italian law, Group companies with
more than 100 employees submit a report on male and female employment to the trade unions and Equal Opportunities Councilor. This report provides information on training initiatives,
compensation levels, promotions, and turnover, as well as other pertinent data. The First-level Collective Labor Agreement (CCSL), which applies to Fiat S.p.A.’s Italian companies, provides
for the establishment of Equal Opportunity Commissions within all covered Group companies. The objective of these commissions is to monitor employment conditions for women – also
by analyzing the biannual report – and examine feasibility of proposed proactive initiatives and promote their implementation, as well as interventions for spreading behavior consistent with
equal opportunities.
In France, equal gender opportunities in business environments and the measures to achieve them are among mandatory bargaining issues and, if an agreement with trade unions is not
reached, companies are required to present a unilateral action plan. For example, at Magneti Marelli France SAS, an agreement was signed with unions outlining specific objectives to
improve equal treatment of men and women in hiring, training enrollment and grade classification. Magneti Marelli Motopropulsion France SAS, Comau France SA and Fonderie du Poitou
Fonte S.A.S.U. instead presented unilateral action plans with hiring guidelines that guarantee equal opportunities in addition to the commitment and tools that will be adopted both to ensure
equal treatment as far as salary and to facilitate employees’ work-life balance.
Also, in accordance with French law, each year Group companies with more than fifty employees submit a report on employment and training provided to both men and women to employee
representatives. Fiat Group Automobiles monitors equal opportunities is the detailed analysis it carries out each year in France on the male and female body of workers. The objective is to
single out any differences in: the opportunities to evolve within the company, pay rates/qualifications or opportunities for training courses.
Furthermore, an action plan outlines the Company’s commitment beginning in 2014 to:
ensure equal treatment of male and female candidates during hiring
n guarantee equal access to training in addition to providing women that are back from maternity leave a specific interview with the preparation of any training plan needed to facilitate their
return to work n help employees to balance work and family life by giving access to part-time jobs and flexible hours when the school year starts, together with the commitment not to schedule meetings
after 6:00 p.m.
n conduct an analysis of differences in salary for equivalent roles.
n
In all other European countries, as well as in those where a Works Council or a similar body representing the employees is in place, equal opportunities are the subject of information
and/or consultation with the employer.
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Employees / Diversity and equal opportunity / Fair compensation
GRI-G4 DMA
Fair compensation
In its commitment to ensure an inclusive work environment and equal opportunities for all employees, Fiat Group adopts a progressive total compensation system based on equitable and
fair criteria.
At the heart of the company’s compensation philosophy lies the concept of meritocracy, which acknowledges the value of a high performance culture and the importance of a market-driven
approach.
To support these elements of meritocracy, the company has defined a compensation system that comprises a number of different components. This comprehensive package rewards
employees for their contribution to the company’s results, provides development opportunities and allows them to share in the business success they help create.
Base salary, benefits and long-term incentives are determined by market-driven benchmarks, therefore ensuring fair and objective treatment for all employees in the different markets around
the world. The specific criteria for adjustments focus on closing competitive gaps with respect to market position, giving priority to top performers. Variable compensation and career
development are impacted by individual contribution, which is vigorously evaluated through a performance and leadership management program that is consistently deployed throughout
the entire organization. The same metrics and methodology are applied in this assessment of annual performance to all eligible employees worldwide. Additionally, the Group employs
a formal process to monitor application of its core equity and fairness principle to compensation levels, annual salary reviews and promotions. In particular, these reviews are based on
standard criteria, and do not allow manager discretion of those receiving compensation actions.
Combined, all of these actions are designed to ensure the company’s total compensation system, in line with all other internal processes related to people management, promotes equal
opportunity.
GRI-G4 LA12
Employees / Diversity and equal opportunity / National and ethnic minority groups
Interactive
National and ethnic minority groups
In 2013, Fiat Group repeated two surveys to determine employee affiliation to a nationality or ethnic minority group. Other diversity indicators that may be sensitive in nature or subject to
data protection legislation were not included in the study. The first study related to nationality involved all Group companies, and the outcome revealed that 2.7% of employees (of whom
23% are women) have a nationality that differs from that of the country where they work.
Workforce by principal ethnic origin
Fiat Group North America (%)
Caucasian
Hispanic
African American
American Indian
Other
2013
58.8
20.7
18.2
0.2
2.1
A second survey examined the ethnic origin (1) of employees based in the United States, Canada and Mexico (approx.
36% of the total Group workforce) and found that 36% of the employees surveyed (of which 45% are women)
reported belonging to one of the identified ethnic minority groups.
The minority group with the largest representation in 2013 continued to be Hispanic workers, who represent
approximately 21% of responding employees.
The analysis was conducted with reference to the six ethnic groups with the greatest representation in the North American population (Caucasian, African American, American Indian, Asian, Hispanic, Pacific Islander).
(1)
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156
Employees / Diversity and equal opportunity / Employees with disabilities
Employees with disabilities
Promoting employment opportunities for individuals with disabilities is another ongoing Group commitment. In 2013 (1), the yearly monitoring of the employment of disabled workers within
the Group covered 38 countries, mapping over 66% of all employees.
In certain countries, such as Austria, Brazil, China, France, Germany, Italy, Spain and Venezuela, local legislation requires companies to employ an established minimum of disabled workers,
which also may vary in relation to the headcount of the company/site, in many cases entailing the requirement only for sites with a headcount over a certain threshold. These laws also may
give employers the alternative of paying contributions to specific funds for the disabled (i.e., Poland), or establishing agreements with the relevant bodies to hire these individuals gradually
(i.e., Italy). Economic difficulties have led to a temporary suspension of the minimum employment quota requirement (Greece) or widening of the scope of exemptions, as in Italy, where
some Group companies had to resort to extraordinary temporary lay-off benefits and collective redundancy schemes (see also Social Dialogue section). In some countries the deadlines for
the payment of contributions to be allocated into specific funds can be changed (e.g., Germany and Spain), as can those previously established by agreements within individual countries
(Italy) for hiring disabled workers.
In countries where there are regulatory minimums (15 out of a total 38), disabled workers accounted for an average 2.9% of Group employees (0.5% women and 2.4% men. The total average
value is the result of different scenarios and is influenced by local regulations that establish mandatory minimum quotas of 1.6% to 7% of the headcount or quotas reached with specific formulas
based on other types of calculations. Company-wide, the Group had the highest percentage of disabled workers in Venezuela (4.9%). The survey also revealed that in these countries disabled
women make up 17.3% of the disabled employees; this statistic mirrors that of the percentage of women in the entire headcount at the companies mapped, which was 17.2%.
In many other countries (including Argentina, Australia, Belgium, Canada, India, Mexico, United Kingdom and United States), there are no regulations specifying a minimum employment quota
for workers with disabilities. However, integration is supported by a variety of accommodations, for example, working hours, working environment, special terms or benefits for companies
employing disabled workers, etc. In countries where employees and applicants are not legally required to disclose any disabled status, there are objective limitations to reporting the number of
disabled workers, as the information is sensitive and often subject to data protection legislation. Consequently, US mapping is partial and Canada was not included in the survey.
Nevertheless, Group companies still keep a focus on this area; in fact, the companies located in these countries are proactive in ensuring that their facilities provide reasonable accommodation
to disabled individuals in terms of both workplace accessibility and usability.
Furthermore, this data does not include the disabled workers who are fit to perform specific tasks as per assessments carried out by a medical professional or facility responsible for
evaluating both the health conditions of the worker and the activities involved. In these specific circumstances, the company offers workers a position appropriate to their condition.
Chrysler Group’s Return to Work Specialists in US and Canadian plants provide a concrete example of how the company handles employees whose work capacity has been impacted.
These specialists actively pursue – within legal and contractual obligations – safe and productive work for affected employees including, if necessary, a role in a different capacity. For
employees whose condition is such that employment with Chrysler Group is no longer feasible, the company frequently works with the respective state or provincial governments to retrain
the individuals so they may find work in other external occupations.
Data refers to 31 October 2013.
(1)
GRI-G4 DMA, LA3
Employees / Work-life balance
Interactive
Work-life balance
Fiat Group recognizes that helping employees to better balance their private life with work is a challenge that must be met so that they may be satisfied in all dimensions of their lives.
Achieving an optimal balance is also essential for employees to continue delivering an outstanding performance on the job while also gaining self-satisfaction.
Effective company support to employees in managing this balance means working within local requirements and constraints, such as job tasks and workplace needs, and available services
may differ by region.
Flexible working arrangements Fiat Group supports the professional and personal goals of its employees by offering a variety of options related to flexible work arrangements where feasible. These include flextime
(starting/quitting times), job sharing, part-time or reduced hours, telecommuting, compressed workweek/summer hours, parental leave and other leaves.
Depending on the company, flexible arrangements may be formal agreements approved by the Human Resources department, or the result of an informal agreement with the local manager,
subject to considerations based on staffing needs, job responsibilities, business climate, mutual agreement or other factors. These arrangements are monitored and updated as required to
respond to changing employee needs. One example of a new form of flexibility offered since 2012 is a telecommuting policy adopted in the Chrysler Group Purchasing and Supplier Quality
department. It is being utilized to varying degrees by approximately 70% of the workforce involved.
It allows salaried employees to work from home up to two days a month. Schedules are approved in advance and coordinated by the managers and employees. The program has proven
to be successful, with a significant number of department employees participating.
An assessment of Group companies revealed that in 2013, roughly 11% of employees (1) were covered by one or more of the flexible working arrangements available. The actual figure may
be considerably higher, as this percentage does not include participation resulting from an informal agreement with local managers, and consequently not formalized or tracked.
Specifically, 2.4% of the total workforce surveyed took parental leave related to child birth and care, while approximately 7% participated in other types of leaves; (2) 1.3% are employed parttime; and 1.7% were covered by other types of work schedule flexibility (e.g., flexible working hours, working from home, job sharing).
These offerings are part of a corporate direction that leads to a healthier, more motivated and stable workforce that actively participates in the Group’s success. During 2013 the Group
expanded its flexible working programs in its regions of operation, with the objective of facilitating family management, eldercare and other personal needs. For further details see the
Sustainability Plan.
The assessment covered 100% of Group average workforce (January-October 2013).
Other types of leaves are those not related to child birth or child care.
(1)
(2)
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Interactive
Employees / Work-life balance
Return to work after parental leave Equitable choices for maternity, paternity and adoption reflect the Group’s commitment to encourage both female and male employees to balance parental responsibilities with their careers.
The Group provides parental leaves to all employees in compliance with local regulations (labor law requirements may vary from country to country) and in some instances actually exceeds
local requirements with dedicated policies (i.e., Canada, Mexico, Serbia and Denmark).
In an effort to ensure that the prospect of continued employment at the company remains attractive for both men and women returning from parental leave, a variety of programs to support
family management are available on a regional basis.
During 2013, about 5,400 Group employees took at least one type of parental leave, representing approximately 3.7% of the female workforce and 1.4% of the male workforce.
Return-to-work and retention rates following parental leave are two key indicators of the mid- and long-term capability of the company to provide employees with career growth
opportunities and achieve balance between their home and work lives.
A pilot analysis conducted by the Group covering 100% of company employees focused on the percentage of employees who return to work after parental leave and who are still employed
12 months after their return. The rate of women who returned to work in 2013 was approximately 35%, while for men the rate was 34%. Among those who returned to work, about 62% of
women were still employed by the company 12 months later, while for men the percentage was approximately 84%.
Fiat Group’s efforts to support and encourage work-life balance have been recognized for instance, by the fact that Chrysler Group was named among the 50 best employers for Hispanic
women for the 10th time. This also validates the strategic value of our commitment to diversity and inclusion, and contributes the company’s growing reputation as an employer of choice
for diverse talent.
GRI-G4 DMA
Employees / Engagement with trade unions
Interactive
As stated in the Fiat S.p.A. Code of Conduct, the Group recognizes and respects the right of its employees to be represented by trade unions or other representatives established
in accordance with local applicable legislation and practice as well as with the rules of different trade unions. Fiat Group maintains relationships with trade unions and employee
representatives that are based on mutual respect, dialogue and constructive interaction. We continued pursuing dialog in 2013 to reach consensus-based solutions designed to
address various market conditions and manage the impact on workers of measures adopted in response to the European market trend, which remained particularly critical in Italy.
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Employees / Engagement with trade unions / Social dialogue
GRI-G4 HR3
Social dialogue
At the European level, the establishment of a European Works Council (EWC) complies with regulations whose purpose is strengthening the worker’s right to information and consultation
in Community-scale undertakings. Fiat Group’s EWC was established in 1997, as a result of the founding agreement signed in 1996, and subsequently revised and amended. Still today,
Fiat S.p.A.’s European Works Council, as established by the renewal agreement signed on 28 June 2011 has not been set up, despite the fact that the deadline for announcing the appointment
of its members was 31 October 2011. Not having representatives from four countries – out of the nine eligible – up until now has in fact stopped the company from initiating convocation of
the EWC. Fiat informed the industriAll European Trade Union (the European federation of metalworking, chemical and textile industries) that it still intends to launch convocation as soon as
the EWC is fully set up, as well as to work out together the most suitable solutions to overcome any obstacles to its proper establishment.
Over the year, however, the Group did not launch any initiatives with a significant impact on employment at a transnational level, and locally the company does business in compliance with
the procedures and practice of employee information and consultation as laid down by the law.
In Italy, on the 8th of March, 2013, Fiat SpA and the trade unions FIM-CISL, UILM-UIL, FISMIC, UGL Metalmeccanici and Associazione Quadri and Capi Fiat reached an agreement on the
renewal of the wage-related part of the first-level Collective Labor Agreement (Contratto Collettivo Specifico di Lavoro di primo livello – CCSL) for the year 2013.
In 2013, too, the Chief Executive Officer met with the Italian trade unions signatories to Fiat’s Collective Labor Agreement to present the half-year economic results. On September 4th, a
further meeting was held at which the company and trade unions both confirmed their commitment to protect and strengthen the contractual relationship, with full awareness of its vital
importance to Fiat’s continued commitment to its industrial presence in Italy. On the basis of this renewed mutual commitment, at the end of the meeting Sergio Marchionne announced
that the Group would undertake the investment necessary to ensure future production and jobs at the Mirafiori plant in Turin. The meeting gave the opportunity for trade unions to urge
FIOM-CGIL once again to follow the basic principles of industrial democracy by accepting an agreement that has been signed by the vast majority of trade unions represented within Fiat.
In 2013 FIOM-CGIL (trade union that chose not to sign the Fiat CCSL) continued to claim the right to appoint employee representatives within Fiat Group companies provided for and
recognized by Art. 19 of the Workers’ Statute (Law 300/70) solely for trade unions signatory to the collective labor agreement applied within a company.
This dispute is part of a larger scenario regarding trade union representation in Italy comprised of: the National Multi-Industry Agreement signed 31 May 2013 by Confindustria and CGIL,
CISL and UIL (which does not apply in Fiat Group companies since the company is not a member of Confindustria); the parliamentary debate still underway on the countless bills concerning
it; and a ruling by the Constitutional Court. In July, the Constitutional Court determined unconstitutional the section of Article 19 of the Workers’ Statute which requires that a union be
signatory to the collective labor agreement applied within a company as a prerequisite for representation, reversing the stance it had taken on numerous previous decisions on the topic.
The Court ruled that unions are entitled to representation when they have actively participated in negotiations for a collective labor agreement, even if they are not signatory to such
agreement.
The interpretation Fiat has applied up to this point has been recognized not only as correct, but as the only interpretation possible, affirming that Article 19 does not allow for the application
of criteria that would go beyond a literal interpretation.
Despite the fact that the general principle laid down by the Constitutional Court (actual participation in negotiations) appears questionable to the trade union FIOM specifically concerning
Fiat, in September the company informed FIOM it would be allowed to appoint plant-level union representatives (RSA), according to law.Lastly, in November the company and FIOM settled
all litigation regarding Article 19 of the Workers’ Statute. In short, the settlement in court calls for the acknowledgment of FIOM plant-level union representatives in a number permitted by
law and the legislative rights, rather than under labor contract, and FIOM’s agreement not to pursue any other lawsuits in this area.
GRI-G4 11, LA8
Employees / Engagement with trade unions / Collective bargaining
Interactive
Collective bargaining
Collective bargaining at various levels resulted in major agreements being reached with trade unions on both wage and employment conditions in several countries.
Around 90% of the Group’s employees worldwide are covered by collective bargaining agreements.
Italy In Italy, all Fiat Group employees are covered by such agreements. To this regard, the Fiat Supplementary Pension and Health Fund is particularly important, set up after negotiations
between the company and the trade unions and ongoing dialogue between the two parties.
Italian managers are subject to the collective labor agreement for managers at Fiat S.p.A. and Fiat Industrial S.p.A., signed on 23 December 2011 with Federmanager. The contract remained
in effect the entire year 2013, and on December 16th, the first meeting for renewal with Federmanager was held.
The agreement was anything but predictable, given the enduring market crisis that the automotive industry suffers and the country’s deep economic crisis. It lasted for all of 2013, and on
November 25th the company entered renewal negotiations with the trade unions.
Trade union agreement for renewal of the Fiat CCSL
In March 2013, Fiat S.p.A. and the trade unions FIM-CISL, UILM-UIL, FISMIC, UGL Metalmeccanici and Associazione Quadri and Capi Fiat reached an agreement on the renewal of the
economic part of the first-level Collective Labor Agreement (Contratto Collettivo Specifico di Lavoro di primo livello – CCSL). It lasted the entire year of 2013.
The main points of the agreement can be summarized as follows:
n Increase of the minimum wage (the minimum under the CCSL) by a gross average of 40 euros per month as of 1 February 2013
n Introduction of the production bonus, paid monthly on an individual basis according to the actual number of hours worked. The agreement makes days off for hospital stays and serious
illnesses – as well as mandatory maternity leave, trade union meetings and leaves of absence taken by Worker Safety Representatives (RLS) – equal to full work days
n Layout of the structure of the supplemental health care plan FASIF. Although it was already laid out in a trade union agreement signed on 11 October 2012 (integrated on 29 October 2013),
it is an integral part of the contract renewal as required by a specific article of the CCSL. In addition to outlining the health care plan’s different parts concerning contribution and services, the
agreement includes the implementation of basic health care coverage for employees at the sole expense of the company. Starting January 2013, employees under the CCSL benefit from
annual LTC (Long Term Care) coverage of not self-sufficient cases as well as a biannual cardiovascular/metabolic syndrome screening.
Outside Italy Outside Italy, around 80% of employees are covered by collective bargaining agreements. This is an average figure based on local practice and regulations that vary from country to
country. However, it should be noted that in non-unionized Group companies, the company grants 37% of the employees not covered by collective bargaining terms better than, or in
addition to, those set by law.
In 2013 (1), an analysis was carried out in those countries that have not ratified ILO Conventions on freedom of association and/or the right to organize and collective bargaining. It covered
over 97% of the employees of Group companies in Brazil, the United States, Canada, Mexico, China and India, and showed that the application of these rights and principles is ensured
through the implementation and application of national legislation.
Data as of 31 October 2013.
(1)
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Employees / Engagement with trade unions / Collective bargaining
Brazil In Brazil, in December, FIEMG (Federaçao das Industrias do Estado de Minas Gerais) and metalworkers’ trade unions renewed the economic and regulatory terms of the collective labor
agreements in force in the sector for businesses operating in the State of Minas Gerais.
In 2013 company-level collective salary agreements in France and Poland were inevitably affected by the negative economic results in Europe, and the continuing negative market trends
called for a strict policy curbing collective wage increases.
France In France, Magneti Marelli Motopropulsion France SA signed an agreement with trade unions aimed at protecting jobs at the Argentan site and to improve competitiveness linked to the
increase of production levels. The agreement, which will take effect in January 2014, provides for measures concerning work organization, working hours, and wages. The company
confirmed the investment in a new production line and the adaptation of another production line to better suit differently-abled workers, as well as the commitment to maintain the same
employment level for three years, also through new hires.
Serbia In December, a three-year agreement was reached in Serbia for the renewal of the collective labor agreement in force at the Fiat Automobili Srbija d.o.o. plant in Kragujevac. The company
and trade unions have also concluded collective negotiations on wages that resulted in average raises in line with inflation. The agreement also provides for a Christmas Bonus, the amount
of which depends on the actual performance of the workers concerned.
Canada In Canada, CpK Interior Products Inc. (a Chrysler Canada Inc. company) and the United Steel Workers (USW) negotiated
a new 4-year Collective Agreement with competitive labor cost provisions and work rules. Major economic provisions
of the new Agreement include annual Cdn $500 lump sum payments to employees and annual Cdn $500 lump sum
payments to the defined contribution pension plan of each eligible employee.
Collective agreements signed during the year at company/plant level
Collective agreements
2013
384
2012
372
2013
24.5
44.0
7.6
8.6
0.8
7.8
12.5
2012
24.5
50.5
4.6
13.4
1.3
6.5
21.8
Mexico In Mexico, Chrysler Group and Sindicato Nacional de Trabajadores de la Industria Automotriz Integrada, Similares y
Conexos de la República Mexicana completed the annual bargaining process. For the first time in their history and in the
history of the Mexican automotive industry, the parties negotiated a multi-year agreement. The new 3-year agreement will
end 9 May 2016. Covering approximately 8,200 employees, it ensures the competitiveness of the cost of labor, since the
increase in wages is counterbalanced by savings arising from the implementation of better labor rules. The new agreement
also provides for annual US $500 lump sum payments to employees in recognition of their contribution to the achievement
of the Company’s plant-specific quality improvement targets. It provides additional bonus incentives for employees at
facilities that achieve increasingly higher target audit scores within the Company’s World Class Manufacturing (WCM)
system. For instance, employees at the Saltillo Assembly Plant qualified for total payments of US $625 in 2013.
Also includes prevention of work-related stress issues.
(2)
Main issues covered under the agreements
Wage issue
Operating issue
Restructuring
Occupational Health and Safety (2)
Equal opportunities
Training
Other
GRI-G4 DMA
Employees / Engagement with trade unions / Management of production levels
Interactive
Management of production levels
Also in 2013, the economic results achieved throughout the world benefited from the strength of the Group, further consolidated by the geographical diversification of the various business activities.
During the year, the Group positively responded to the performance of some markets through instruments aimed at enhancing flexibility. These market situations also made it possible to
transform the majority of fixed-term employment contracts to unlimited contracts.
In Europe, 2013 was characterized by further shrink in demand, which particularly impacted Fiat Group’s production capacity in Italy, where work stoppages were necessary. However, the Company
has continued its policy for the protection of jobs through the use of temporary social welfare mechanisms, where possible, or other measures based on collective agreements or company policy.
Italy In Italy, recourse to temporary layoff benefits schemes by Group companies to cope with reduced production and restructuring or reorganization initiatives linked to Group investments declined
slightly over 2012 (-1.9%). These benefit payment schemes (financed with company contributions) continue to play a significant role in this context; this year, too, they avoided redundancies.
In 2013, the Company continued in the reorganization of production in Italy by leveraging the premium brands, realigning the product portfolio and repositioning the business for the future.
In January, the Avv. Giovanni Agnelli plant was inaugurated in Grugliasco (Turin), which is the production site for the Maserati Quattroporte and the Maserati Ghibli sold all over the world.
Fiat has invested more than €1 billion to develop the two new models and refurbish the plant.
On July, the CEO of Fiat, Sergio Marchionne, presented plans for future activities at the plant of Sevel (a 50/50 JV between Fiat Group and PSA Group for the production of Light Commercial
Vehicles) located in Atessa, Italy, where the Ducato is currently produced. Approximately €700 million is to be invested in the facility over 5 years.
In September, the CEO announced an investment plan for the Mirafiori Plant in Turin, where a production establishment dedicated to the premium segment will be set up.
At the end of October, following receipt of regulatory approvals, Fiat Group Automobiles’ acquisition of the 50% stake in VM Motori S.p.A. held by General Motors was completed. VM is
specialized in the production of advanced diesel engines. Its plant located in Cento, in central Italy, employs over 1,000 people.
As announced in late 2012, investment of over €1 billion in the SATA Plant in Melfi (Italy) started in 2013 for the production of the Fiat 500X and a Jeep brand vehicle.
Two major corporate streamlining measures were undertaken during the year in Italy. One was the transfer of the Officine Maserati Grugliasco plant to Fiat Group Automobiles situating it
in the Turin-based complex specialized in manufacturing premium brand vehicles. The other involved the transfer of staff and operations from Fabbrica Italia Pomigliano (FIP) to Fiat Group
Automobiles. It was prompted by the fact that certain circumstances, organizational and industrial requirements and constraints that led to the formation of a company specifically dedicated
to the investment in the new Panda were overcome.
Brazil In 2013, the positive trend of the automotive market in Latin America continued.
In Brazil, work on the new Pernambuco plant started, as announced on 28 December 2010. The Group’s new plant is expected to start activities during the first half of 2015 with initial
production capacity of 200,000 vehicles per year based on the Small Wide platform which will strengthen the product offering in the mid-size segments of the market. The establishment
will also have an on-site supply park, product engineering center and testing facilities.
In 2013, the Group confirmed its leadership on the Brazilian market, despite a slight decrease over the previous year, which had benefited from tax incentives on sales. In 2013, the need to
adjust production levels to market trends was primarily addressed through flexible working schemes by managing shifts accordingly, under trade union agreements.
North America As for Chrysler Group, in 2013 the company increased vehicle production at its NAFTA facilities in response to higher product demand. To handle the greater output, the company increased
staff, i.e., the number of manufacturing employees to support our current and anticipated production volumes, as well as additional engineering, research and development and other highly
skilled employees to support our product development, sales, marketing and other corporate activities.
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164
Employees / Engagement with trade unions / Freedom of association and representative bodies
GRI-G4 DMA, HR4
Freedom of association and representative bodies
Under the Fiat S.p.A. Code of Conduct, employees are free to join a trade union in accordance with local law and the rules of the various trade union organizations. The Group recognizes
and respects the right of its employees to be represented by trade unions or other representatives in accordance with local applicable legislation and practice.
In 2013, an analysis was carried out in countries that have not ratified ILO Conventions on freedom of association and/or the right to organize and collective bargaining. It covered over 97%
of the employees of Group companies in Brazil, the United States, Canada, Mexico, China and India, and showed that the application of these rights and principles is ensured through the
implementation and application of local legislation. At Magneti Marelli plants in Mexico, the right to representation is also ensured through company practices that support existing legislation.
A survey of workers belonging to trade unions in the Group’s various companies is not possible in all countries, since legislation on the freedom of association varies from country to country.
For example, in France and Germany the decision to join a union is considered a personal matter for employees, who are not required to inform the company. In countries with a greater
presence of Group operations where such data is not considered sensitive, surveys are conducted regularly to map trade union membership.
Italy Union membership Italy
In Italy (1), it was found that 32.8% of workers were trade union members in 2013 (compared with 33.5% in 2012). In
addition to the rights granted to all Italian trade unions and workers concerning freedom of association, the company
provides an additional service to its employees by paying trade union dues on behalf of those employees who are
members of trade unions that are signatories to the Fiat first-level Collective Labor Agreement (CCSL). Trade union
dues for employees who are members of trade unions that are not signatories to the Fiat CCSL are paid either
directly by employees or via deductions from employee’ wages (2) through the company.
Fiat Group in Italy (% of total workforce to whom CCSL applies, excluding managers)
gh
a. 67.2% Non-union members
e f
d
b. 9.2% FIM
c. 8.7% UILM
c
d. 7.6% FISMIC
e. 5.3% FIOM
b
Union membership US
f. 1.5% UGL Metalmeccanici
Fiat Group in US(4) (% of total workforce excluding managers)
g. 0.1% FAILMS
c
a
a
United States a. 25.6% Non-union members
b. 73.6% UAW
c. 0.8% Other trade unions
b
(4)
(5)
(1)
(2)
(3)
h. 0.4% Other trade unions (3)
The survey covered a sample of 98.2% of workers under the Fiat CCSL.
Cessione del credito retributivo.
Other trade unions includes independent trade unions.
The survey covered 99.8% of the workforce, managers excluded.
The survey covered 99.8% of the US workforce, excluding temporary part-time workers.
In the United States (5), over 74% of Group employees are union members, almost all of them with the International
Union, United Automobile, Aerospace and Agricultural Implement Workers of America (UAW). More specifically,
with reference to Chrysler Group in the United States, the UAW represents over 36,000 hourly production workers
and more than 3,000 salaried office workers.
Canada Union membership Canada
Fiat Group in Canada(7) (% of total workforce excluding managers)
In Canada (6), Unifor, the trade union that emerged from the merger of National Automobile, Aerospace,
Transportation and General Workers Union of Canada, or the CAW, and the Communications, Energy and
Paperworkers Union in September 2013 represents about 9,700 hourly production workers and over 100 salaried
office workers.
c
a
b. 88.7% Unifor
Mexico In Mexico, the Sindicato Nacional de Trabajadores de la Industria Automotriz Integrada, Similares y Conexos
de la República Mexicana represents over 8,200 hourly production workers at eight Chrysler Group facilities.
c. 3.1% United Steelworkers Union (USW)
b
Venezuela In Venezuela the Sindicato de Trabajadores de Chrysler de Venezuela, L.L.C. represents about 900 hourly
production workers.
Interactive
Union membership Mexico
Fiat Group in Mexico(8) (% of total workforce excluding managers)
e
China Fiat companies in China comply in all material respects with all applicable Chinese laws and regulations. In
particular, these companies take measures permitted by applicable laws and regulations to implement advanced
practices in terms of labor contracts, working conditions, work safety, establishment of a labor union and
participation of the union in the company’s decision-making process. Where provided for under applicable laws
and regulations, a labor union is established and provided with the condition of operating inside the company.
Where a union is not established (usually in small companies where unions are neither required by regulations
nor by the employees), the Human Resources Departments implement the relevant laws and regulations and
proactively adopt advanced practices in China, actively communicating with employees on relevant labor and
other issues.
d
a
c
b. 74.9% Sindicato Nacional de
Trabajadores de
la Industria Automotriz
Integrada Similares y
Conexos de la Republica
Mexicana
c. 8.7% Sindicato de la Industria
b
Metal Mécanica
del Estado (CTM)
d. 4.1% Confederación
Revolucionaria de
Obreros y Campesinos
(CROC)
e. 2.2% Sindicato Nacional
The survey covered all Canadian employees.
The survey covered 100% of the workforce, managers excluded.
The survey covered 84% of the workforce, managers excluded.
(6)
(7)
(8)
crom de Trabajadores
y Empleados de
la IIndustria Productora,
Transformadora, Metalica,
Derivados Y Conexos
165
166
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Representative bodies, generally elected by workers of the site concerned, are entitled to be informed and/or consulted and/or to negotiate matters defined by law or collective agreements
in force. In the countries of the European Union, the law provides for the setting-up of representative bodies at companies and/or sites employing a number of workers exceeding the specific
minimum limits, while in North America these bodies are present only at sites where there is a trade union. In China, laws and regulations do not provide for the obligation to establish
employee representative councils. However, workers are free to set them up in accordance with national labor legislation and based on specific regulations implemented by several provinces
and cities. In China, there are currently no national laws or regulations mandating that companies must have an employee representative council, however employees are free to form an
employee representative council in accordance with relevant PRC labor laws (mainly: Labor Law, Labor Contract Law and Trade Union Law). Based on PRC labor laws, several provinces
and cities have further issued their own rules to regulate the employee representative councils which shall only apply on such provinces and cities.
In Italy, under the Workers’ Statute (Law 300/1970), worker representation in Fiat Group companies takes place through plant-level union representatives (RSA). As of 31 December 2013,
there were 887 RSA at the plants of Group companies. The data includes FIOM-CGIL RSAs that are present in Group companies and/or sites as a result of the ruling of the Italian
Constitutional Court in July. FIOM’s plant-level union representatives were appointed according to the numerical terms set by law and are entitled to the rights provided for by existing law.
The RSAs of trade unions, which are signatories to the Fiat CCSL benefit from more hours of paid leave for trade union-related activities than required by Italian law, as well as from offices
and personal computers, made available according to law. In addition, notice boards are provided at sites where the trade unions may display announcements, accessible to all Fiat Group
employees.
The participation system set up by the Fiat CCSL fosters dialogue between the signatories and is organized into joint commissions that operate at company and plant level. The issues
addressed by these commissions include equal opportunities, occupational health and safety, organization and production systems, company services and absentee monitoring. This last
commission tracks the rate of absenteeism due to illness.
At the national level, the participation system provided for by the CCSL sets forth the establishment of the Bilateral Welfare Commission and the Joint Conciliation Commission, whose task
is to examine any unresolved conflicts at individual plants.
Employees / Engagement with trade unions / Restructuring and reorganization
Interactive
Restructuring and reorganization
In Italy, use of extraordinary temporary lay-off benefits schemes during 2013 enabled drops in production to be managed, and restructuring and reorganizing programs linked to Group
investments to begin or continue.
Redundancy plans launched during the year as a result of an agreement with trade unions affected a very small number of workers – a total of 34 people – and the relevant procedures will
be completed by 2015. All the affected employees will become eligible for retirement during the period covered by the collective redundancy scheme (mobilità) (1). As a result of this scheme
implemented following agreements signed with trade unions in previous years, in 2013, about 650 left the Group. As in previous years, the Company granted them an additional redundancy
payment set by the corresponding trade union agreements. These included the workers to whom the scheme was applied in 2012: of the 81 workers initially involved, thirty were relocated
within the Group.
In Italy, in 2013 the Ministry for Economic Development continued its efforts to find a solution for maintaining industrial activities at the plant in Termini Imerese (which, as announced by
Fiat in 2009, ceased production in December 2011). During the year, lay-offs under “mobilità” continued for those workers at the Termini Imerese plant (2) who became eligible for retirement,
according to union agreements signed in 2011. An agreement on extraordinary temporary lay-off benefits (Cassa Integrazione Guadagni “in deroga” (3)) was signed in October. Considering
the forthcoming completion of the review of reindustrialization projects by the relevant authorities, the benefits were extended until 30 June 2014 for the remaining workers for whom the
deadline of the previous scheme was in December 2013.
Also in 2013, the Group took steps to reduce the impact of reorganization on employees. In Italy, at the Fiat Group Automobiles Avv. Giovanni Agnelli plant (formerly Officine Maserati
Grugliasco) work was halted for restructuring and extraordinary temporary lay-off benefits were paid to workers. During the year, employees continued to receive training to update their
skills for when production activities resume. The training program addressed various contents such as the World Class Manufacturing (WCM) system, ergonomics and work metrics. In
2013, a total of 637 people attended the training courses with the objective of updating and adding basic skills, as well as raising awareness and spreading the use of WCM methodologies
for workers placed on the extraordinary temporary lay-off benefits scheme.
As planned, the current production volume of premium range vehicles has allowed employees to return to work.
Outside Italy, stoppages were negligible and there were no significant restructuring and reorganization measures. The reorganization process at the Fiat Auto Poland plant in Tychy,
announced in December 2012, was completed in the early months of the year.
Government benefit scheme, financed by companies, and applicable to employees affected by collective redundancies for a duration of three years in Northern Italy and four years in the South.
Those employees are included in the data referred to those who left the Group during the year.
Extraordinary scheme to protect workers’ income.
(1)
(2)
(3)
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Employees / Engagement with trade unions / Labor unrest
Labor unrest
In 2013, cases of unrest in Group companies in Italy were scarce, with very few employees taking part, although in some cases the reasons for unrest had an impact on the community.
Likewise, the scope of locally organized labor action was extremely limited. This trend confirms the commitment undertaken by those trade unions that signed the first-level Collective Labor
Agreement, in which they agreed not to call strikes for issues already settled in this accord. It also showed how effective the “cooling-off” procedure has been in preventing, examining and
solving any potential causes of labor unrest for which the commissions set up through the agreement found no solution.
This year, labor unrest in other countries was negligible once again and mostly involved issues at individual plant level.
GRI-G4 LA4
Employees / Engagement with trade unions / Minimum Notice Period
Interactive
Minimum Notice Period
In the European Union, Directive 01/23 stipulates that in the event of the transfer of businesses, plants or parts of businesses or plants following a contractual sale or merger, an information
and consultation procedure must be conducted with employee representatives.
The procedure must be initiated reasonably in advance of the transfer. Accordingly, Fiat Group companies comply with the regulatory provisions resulting from the adoption of the above
directive in each individual EU Member State.
Furthermore, the agreement establishing the Fiat Group European Works Council includes issues requiring that employees be informed and consulted: fundamental changes in the
organization, introduction of new working methods and new manufacturing processes significantly affecting the Group as a whole, and reductions in size or the closure, relocation of
production, or merger of companies or business units having a substantial impact on employment at a global level.
Outside the European Union, local laws and practices apply.
In the United States, a federal law known as WARN (Worker Adjustment and Retraining Notification Act), which applies to both unionized and non-unionized sites, requires an employer to
give a minimum of 60 days’ notice of any action that will cause at least 50 employees or 33% of the workforce to lose their jobs.
In Canada, notice of termination regulations vary by province. In Ontario, where the majority of the Canadian workforce is employed, notification must be given within four weeks of the
actual termination, for plants with 50 employees or more. The remaining Chrysler Canada employees are located in Alberta and Quebec, where the maximum notice requirement is ten
weeks for employees with more than ten years of service. At unionized sites and/or plants in the United States and Canada, the level of union involvement is normally defined by the collective
bargaining agreement signed between the company and the trade union and applicable at plant level, and usually also sets out the information and consultation procedures to be followed
in such circumstances. At non unionized plants, it is common practice to make a company-wide announcement to all employees of organizational changes relating to outsourcing, giving
reasonable prior notice of the operation.
In Mexico, companies are required to notify the Secretariat of Labor and Social Welfare as well as the trade union prior to any mass employee layoffs or plant closures. However, no
notification period is expressly defined in Mexican labor law. In Venezuela, notice of termination of employment varies according to an employee’s years of service, e.g., from a minimum of
one week’s notice for employees with one to six months of service, to a maximum of three months’ notice for employees with ten or more years of service.
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170
Processes / World Class Manufacturing and process certification
GRI-G4 DMA, 2, EN19, EN31
Responsible and World Class processes(1)
Fiat Group’s commitment to environmental stewardship and the conservation of natural resources includes not only our efforts to enhance
sustainable mobility solutions, but also our focus on minimizing the impact of manufacturing processes. The measurement of our environmental
footprint and the pursuit of continuous improvement in environmental performance are integral parts of the Group’s industrial strategy.
These pursuits are essential to generating value over time for our stakeholders and to the viability of the company in the global marketplace.
World Class Manufacturing and process certification
At Fiat Group, one of our key commitments is to reduce our environmental impact during the production phase.
Proof of this is the expansion of World Class Manufacturing (WCM), a system that has been in place for several years and now covers 97% (2) of our plants.
WCM is a structured, rigorous and integrated methodology covering every aspect of the entire organization, from safety to the environment, from maintenance to logistics and quality. The
WCM system is aimed first and foremost at improving production processes to ensure product quality with the aim of meeting or exceeding customer expectations.
At year-end 2013, a total of 121 Fiat Group plants were part of the WCM program: 26 have achieved bronze level, seven silver and four the gold level (Bielsko Biala engine and
transmission plant in Poland, achieved in 2012, and assembly and stamping plants of Tychy in Poland, Tofas in Turkey and Pomigliano in Italy).
The projects developed within WCM are designed to achieve the broadest engagement of employees and to systematically reduce losses and waste, ultimately reaching zero accidents,
zero waste, zero breakdowns and zero inventories.
The WCM system reflects our commitment to environmental and sustainability issues. WCM, and in particular the Environment pillar, is an integral part of the Group’s Environmental
Management System. This pillar is dedicated to the development of instruments and methods that provide support in reaching targets to curb the environmental impact of plants while
aiming to cut waste and optimize energy use. The Energy sub-pillar, included under the Environment pillar, plays a key role in improving energy performance through specific projects
targeted at eliminating inefficient energy use.
In 2013, about 2,400 specific energy projects were implemented, resulting in approx. 180,000 fewer tons of CO2 emissions. The total number of roughly 3,000 environmental projects
started during the year resulted in cost savings of €70 million.(3)
In the tables with absolute values in this chapter the data relative to 2011 include Chrysler Group for the full year. The data relative to 2010 have been restated to include Chrysler Group and to exclude companies demerged into CNH Industrial S.p.A.
Percentage based on the total manufacturing cost base.
Data is prorated to include carry-over from projects launched in 2012.
(1)
(2)
(3)
Interactive
To manage and minimize environmental and safety risks, a preventive and proactive approach is employed. In the event of an accident, WCM calls for a rigorous analysis of the causes and
application of the most appropriate procedures to reduce the risk of recurrence. Moreover, in the event of an environmental accident or a natural disaster (e.g., hurricane, flood, earthquake,
fire) all plants are covered under a contingency plan whose purpose is to limit the event’s environmental impact, as well as to preserve the integrity of physical assets, the continuity of
operations and limit financial implications in general.
The success of WCM is highly dependent on the participation of employees, who are periodically involved in targeted training programs. All Group plant employees worldwide are
encouraged to make suggestions, each of which is assessed for potential application to be transformed in a project. In 2013, Fiat Group’s plant employees submitted a total of 1.3 million
proposals for improving processes, representing an average of 15 suggestions per employee.
Furthermore, an essential contribution to extending the best processes to all plants derives from the sharing of innovative best practice projects, with approximately 10,100 approved
and disseminated across the Group’s plants through 2013.
WCM tools and methods can also be applied to other activities not strictly related to production. Fiat Group is transferring these principles into its Logistics, Manufacturing Engineering and
Design activities as well, to integrate this approach in other areas of the company.
Moreover, we are committed to implement WCM also among suppliers. The engagement of plants and suppliers enables the most relevant environmental impacts to be minimized
as an integral part of the daily management of production processes along the entire value chain. This entails reducing greenhouse gas emissions, conserving energy and raw materials,
and reducing water consumption and waste generation, by maximizing reuse and recycling.
WorkPlace Integration (WPI) – a new way of designing the process In production system development, the Group has refined the design and workstation improvement phase at plants through the use of WPI.
One of the strengths of WPI is that the design phase begins earlier; in fact, studying production cycles already starts during the development of the new model. Thus, the product and
process are developed to optimize the technical and methodological synergies, which results in many fewer changes later on and has a positive effect on station ergonomics and costs.
For the first time, a project of this nature brings together process engineers, quality specialists, research and development managers and plant personnel to plan the process from the very
beginning. The activities are carried out in the WPI Room, an area equipped with the technology needed for design and simulation. The assembly line personnel are involved in organizing
their future workstation, proposing improvements based on their direct experience at the plant and giving suggestions to the planners who create the new workstation layouts.
First developed at the Pomigliano (Italy) plant and then spread to all Group plants with new model launches, WPI applies all WCM principles. The workstation is centered around human
beings, making it safe, ergonomically sound, comfortable and functional for the designated worker’s job.
Naturally, environmental sustainability aspects are also included. In order to ensure that the impact is kept to a minimum, WPI works by reducing disposable packaging, hazardous
chemical products and the generation of waste, as well as by aiming to eliminate energy waste. During each individual phase, quality aspects are analyzed, introducing systems
geared toward avoiding human error in the process.
This way, the workstation is efficient and organized from the very start, consistent with the most sophisticated concepts of logistics engineering and material flow management, and is
aligned with the best technical solutions for processes and products.
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172
At the same time, as an integral part of our management of industrial processes, we are committed to implementing and maintaining our Environmental Management System (EMS) at
all of our production plants worldwide, compliant with the ISO 14001 standard. At year-end 2013, 133 plants, representing 100% of industrial revenues (4) in 2012 scope and 99% of
manufacturing employees (5) were ISO 14001 certified.The plants still awaiting certification have adopted an EMS which complies with the ISO 14001 standard. These plants are regularly
audited by the central Environment, Health and Safety (EHS) unit, which verifies compliance prior to third party audits. By the end of 2014, all Group plants operating worldwide in 2012 will
be ISO 14001 certified.
With respect to the Energy Management System, efforts continued in 2013 to integrate an Energy Management System compliant to the ISO 50001 standard into the Environmental
Management System. At year-end 2013, 43 Group plants were certified, representing approximately 36% of the Group’s total energy consumption. By 2014, all of the Group’s main plants,
accounting for more than 90% of total energy consumption, will be ISO 50001 certified.
An Environmental Management System certified by accredited third parties, associated with WCM methodologies and tools, ensures the achievement of a steady and continuous reduction
in the impact of manufacturing processes, as well as achievement of environmental objectives.
Both WCM and the management systems are based on the Group’s Environmental Guidelines, which reflect our commitment to being a responsible environmental steward.
These guidelines apply to all employees worldwide. They specify the correct approach to environmental issues and provide clear instructions on setting and updating environmental
objectives, developing new products, and conducting daily activities around the globe. While implementing these Guidelines, the Group complies with all relevant environmental legislation
and regulations and constantly strives to outperform them.
Action plans and related short-, mid-, and long-term projects aimed at reducing the environmental footprint and ensuring financial sustainability are in place at our plants. In 2013,
expenditures and investments for the environment amounted to almost €100 million,(6) clearly demonstrating the Group’s commitment to environmental protection.
Industrial revenues are those attributable to the activity of plants directly controlled by the Group.
Manufacturing employees are those directly and indirectly involved in manufacturing processes.
€96.67 million, of which 65.8% for waste disposal, emissions treatment, and remediation costs, and 34.2% for prevention and environmental management costs.
(4)
(5)
(6)
GRI-G4 DMA
Processes / World Class Manufacturing and process certification / Organization, environmental performance and monitoring systems
Interactive
Organization, environmental performance and monitoring systems
In the Group, environmental protection is managed through its Environment, Health and Safety (EHS) organization. Each company relies on its own department responsible for environment,
health and safety topics, both centrally and at the plant level. Company EHS managers are responsible for overseeing facility environmental activities and direct capital investments dedicated
to specific action plans. Moreover, they are in charge of monitoring national and local legislation, as well as rules and regulations related to the environment. They ensure that senior
management and plant environmental professionals understand the potential impact of new or revised policies on their operations, and also conduct compliance audits.
Meetings are held regularly to coordinate Group activities. This enables EHS managers to discuss results, share best practices, and carry out benchmark comparisons against main
competitors in key areas, in order to define new actions. The Environmental Plan sets both annual and long-term targets for each company relative to the principal areas of environmental
focus:atmospheric emissions, water and waste. The Plan is monitored on a monthly basis.
A dedicated IT platform ensures that environmental professionals receive regular updates and remain continuously in contact with each other. This platform provides access to training
materials and documents on specific environmental areas (general and operational procedures, guidelines, reporting, manuals, etc.), as well as to the Standard Aggregation Data (SAD)
system and other applications used for reporting environmental performance data of individual plants, and for comparing plants within the same operating segment.
The continuous monitoring of environmental performance indicators is the main tool available to management to determine if plants are operating properly, to plan new courses of action,
to realign programs and interventions, and to set new and more challenging targets.
In 2012, Fiat Group structured the monitoring process to track environmental performance not only at the plant and corporate levels, but also across operating regions. This was
a result of the Group’s new organizational structure, and was achieved by means of the SAD application (1). The data management system enables EHS managers to compare and
contrast the environmental performance of standardized processes, enhancing the likelihood of internal benchmarking and ensuring that opportunities for improvement within the
Group are promptly identified. For consistency with financial information and organizational structure, as well as with the data and targets published in the Group’s 2012 Sustainability
Report, the term “Mass-Market and Premium Brand assembly and stamping” refers to 15 assembly and stamping facilities of Fiat Group Automobiles (FGA) and 18 of Chrysler Group
(CG). “Mass-Market and Premium Brand engines and transmissions” includes nine engine and transmission facilities of FGA and nine of CG, previously included in “Chrysler others.”
“Mass-Market and Premium Brand casting” and “Mass-Market and Premium Brand others” refer respectively to two and to four facilities of CG previously included in “Chrysler others.”
“Mass-Market and Premium Brands” refers to the data of these 57 FGA and Chrysler facilities.
Like last year, this year’s Sustainability Report presents normalized environmental performance indicators as well as the absolute values directly correlated to production volumes, in order to
ensure data comparability from year to year and allow the evaluation of operational trends. Due to the variety of production lines within the company (vehicles, engines, components, etc.), it
is not possible to present normalized data at the Group level. In addition, within certain companies (for example, Teksid), different production lines require varied normalization parameters.
The only normalized data documented in this Report are for Mass-Market and Premium Brand assembly and stamping facilities (which account for more than half of the impacts) for energy,
emissions, water and waste. For information on the performance and targets of each Group company, see the Appendix section.
In use at all Fiat Group plants starting in 2012.
(1)
173
174
Interactive
Processes / World Class Manufacturing and process certification / Environmental training
GRI-G4 LA9
Environmental training
Investment in human capital at all organizational levels is a key driver for improving the Group’s environmental performance. Competence, knowledge and motivation are essential attributes
to ensure a deeply embedded environmental culture throughout the company. For this reason, a variety of methods are used to spread environmental know-how, promote awareness
and encourage action planning throughout the company. The training of specialized personnel working within the Environmental Management System (EMS) continued in 2013. Seminars
conducted by internal environmental professionals and online courses provided approximately 220,000 hours of environmental training to 71,500 individuals. Training activities focused
on prevention, management of environmental aspects, Environmental Management Systems in accordance with the ISO 14001 standard, and Energy Management Systems in conformance
with ISO 50001. Additionally, special training was provided to increase employee understanding of their individual impact on the environment.
Internal employee websites dedicated to Environment, Health and Safety, and internal periodical newsletters provide information on policies, procedures, organizational responsibilities,
publications, best practices, regulatory information and company requirements. The websites also provide links to external environmental internet sites and IT applications used in the
management of environmental programs and training.
GRI-G4 DMA, EN3, EN5, EN6, EN19
Processes / Energy consumption
Interactive
Energy consumption
Consuming energy responsibly is the premise behind Fiat Group’s commitment to researching technologies that consume less energy as well as employing energy solutions with an everdecreasing impact on the environment. This commitment is embodied by the World Class Manufacturing (WCM) program that dedicated a sub-pillar to energy in 2010 for improving the
ability to identify and implement energy reduction measures and increase efficiency.
Primarily because of increased production volumes in the NAFTA region combined with adverse weather conditions in that area throughout the year, total energy consumption compared
with the previous year increased slightly. Despite this, an overall downward trend is seen compared with the baseline year of 2010.
The factors contributing to the increase in energy use were mitigated by a series of interventions geared toward improving the energy efficiency of systems and equipment. This activity
included overhauling or refurbishing the equipment in favor of more technologically advanced and efficient solutions that saved approximately 600 TJ and averted 55,000 tons of CO2.
Direct and indirect energy consumption
Fiat Group worldwide (TJ)
Plants
Electricity
Natural gas
Other fuels
Other energy sources
2013
2012
2011
2010
142
144
150
148
21,272
20,957
1,234
4,860
48,322
20,520
18,278
1,322
5,572
45,692
21,274
19,253
1,617
6,731
48,875
21,182
19,440
1,395
7,705
49,722
A major contribution also came from organizational measures, including process redesign, improving the use of plant operating
capacity, operational changes and changing employee behavior through heightened energy awareness. These activities resulted
in total savings of about 1,400 TJ and avoidance of 125,000 tons of CO2.
At Mass-Market and Premium Brand assembly and stamping plants, the energy consumption per vehicle produced showed
a small increase of 2.6% compared with last year, from 6.19 GJ per vehicle produced in 2012 to 6.35 GJ per vehicle produced (1).
This was principally due to the factors mentioned previously (increased production volumes in NAFTA region and adverse weather
conditions). As with total energy, energy per vehicle produced has also shown an overall downward trend compared with the
baseline year of 2010 (-14.2%).
Number of vehicles produced and plant list are confidential for competitive reasons and therefore are not publicly published.
(1)
Direct and indirect energy consumption per unit of production Mass-Market and Premium Brand assembly and stamping worldwide
(GJ per vehicle produced)
2020 target
(-30% vs 2010)
2010
7.40
6.86
6.19
6.35
2011
2012
2013
175
Interactive
176
GRI-G4 DMA, EN15, EN16, EN18, 20, EN21
Processes / Energy consumption / CO2 and other emissions
CO2 and other emissions
Fiat Group’s engagement in the fight against climate change is demonstrated by the general downward trend in CO2 emissions from our production processes compared with the 2010
baseline. As with energy, the 2013 CO2 results were negatively affected by the increased production volumes in the NAFTA region and the adverse weather conditions.
Consequently, in 2013, total CO2 emissions increased by 5.4% at Group plants, for a total of about 4 million tons, despite the 2,400 energy projects that were launched in 2013, which
saved €62 million (1).
The CO2 emissions per vehicle produced at the Mass-Market and Premium Brand plants decreased 15.5% in the last four years, falling from 0.612 tons per vehicle produced in 2010
to 0.517 tons per vehicle produced (2).
Direct and indirect CO2 emissions per unit of production
Direct and indirect CO2 emissions
Fiat Group worldwide (thousands of tons of CO2)
Plants
Direct emissions
Indirect emissions
Total CO2 emissions
2013
2012
2011
2010
142
144
150
148
1,198
2,980
4,178
1,069
2,896
3,965
1,150
3,046
4,196
1,140
3,243
4,383
In 2013, the Group continued to use renewable energy sources, slightly increasing the percentages reached by each company. In
Europe, the vast majority of renewable energy purchased by the Group is certified by the supplier, while on the South American
market electricity purchased is certified as coming almost entirely from hydroelectric sources. Furthermore, within the Group there
are some plants that take advantage of solar energy to produce renewable energy for electricity or heating.
Total energy from renewable energies used in Group production processes covered 20.9% of the total consumption, excluding
Chrysler Group, and 9.7% of total energy consumed, including Chrysler Group.
Data is prorated to also include carry-over from projects launched in 2012.
Number of vehicles produced and plant list are confidential for competitive reasons and therefore are not publicly published.
(1)
(2)
Mass-Market and Premium Brand assembly and stamping worldwide
(tons of CO2 per vehicle produced)
2020 target
(-32% vs 2010)
2010
0.612
0.553
0.508
0.517
2011
2012
2013
Interactive
Paint Process Energy Savings at the Sterling Heights Assembly Plant (SHAP) Major energy savings are represented by the new paint shop at SHAP in the US. Painting demands more energy than any other stage of the production process in the automotive industry.
In paint shops, the paint booth in particular consumes the most energy, since it requires around 100,000 cubic meters of air per minute at a specific temperature and humidity. Booths
consume natural gas, electricity and water in order to meet stringent process control requirements.
SHAP’s new paint shop covers approximately 100,000 square meters and was conceived to guarantee high energy efficiency, using a “cascading air / recirculating air” process to
significantly reduce energy and water usage, designed to recirculate 90% of the air.
This innovation provides annual energy savings of approximately €1.3 million, avoiding approximately 24,000 tons of potential CO2 emissions through energy reduction, while also
resulting in a significant reduction in water use.
Participation in emissions trading programs In 2013, the Group only had five directly-owned power generation plants that qualified for the European Emissions Trading System (EU-ETS), under ETS Directive (2003/87/CE), all of them
in Italy. These were located at the Italian manufacturing sites of FGA engines and transmissions in Pratola Serra and Grugliasco, Magneti Marelli in Modugno, Teksid in Carmagnola and
Ferrari in Maranello. These five sites in 2013 represented approx. 5.3% of the Group’s CO2 direct emissions, for a total of 63,112 tons of CO2.
Nitrogen and sulfur oxides (NOX and SOX ) and dust NOX emissions increased as a result of major consumption of natural
gas, while SOX emissions decreased in 2013 as a result of the
decrease in direct fuel consumption and increased use of cleaner
fuels.(3) Dust slightly increased.
Estimated emissions based on direct fuel consumption.
(3)
Direct emissions of NOx, SOx and Dust
Fiat Group worldwide (tons)
2013
2012
2011
Plants
142
144
150
148
NOx
SOx
Dust
1,396
172
74
1,235
189
70
1,335
249
77
1,349
200
72
2010
177
Interactive
178
Volatile Organic Compounds (VOC) VOC are chemical compounds that may have a potential and indirect impact on climate change, and contribute to the
formation of ground level ozone and smog.
For many years, Fiat Group has introduced important technical and operational developments in its paint operations such
as more efficient paint application and using paints that contain less solvent in order to progressively reduce the associated
VOC emissions (4).
Very substantial reductions have been achieved in Mass-Market and Premium Brand plants, with an average of
approximately 28.0 g/m2 of VOC in 2013 compared with an average of approximately 32.1 g/m2 in 2010 (-12.8%) and
65.4 in 2007(5) (-57.2%).
Since Mass-Market and Premium Brand assembly and stamping plants represent more than 95% of VOC emissions, the
average of all Group plants worldwide shows similar results and trends. For further details, see the interactive Sustainability
Report online.
Presence of Ozone Depleting Substances (ODS) in equipment Emissions of VOC
Mass-Market and Premium Brand assembly and stamping plants worldwide (g/m2)
2020 target
(-25% vs 2010)
2010
32.3
30.0
2011
27.7
2012
28.0
2013
Some equipment used for cooling, air conditioning and climate control contains ODS which are potentially harmful to the ozone
layer, the part of the upper atmosphere that protects the earth from ultraviolet rays. In the event of an accident, these substances
may leak and contribute to ozone layer depletion. As a consequence, Fiat Group believes that constant monitoring of this
equipment is essential to prevent unexpected ODS leakage. No leaks of these substances were reported during 2013.
In addition, following an inventory of plants and equipment containing ODS, an action plan was developed in 2010 to specify measures to replace these substances by 2014 at all plants
worldwide. Chrysler Group was included in the inventory for the first time in 2012, and committed to eliminate ODS as equipment is replaced. These substances will be substituted with more
environmentally compatible gases and/or alternative substances. In 2013, ODS in equipment at Group plants worldwide was reduced by 6.4% compared with 2012.
Equipment containing PCBs and PCTs Certain electrical equipment (e.g., transformers) uses cooling liquids containing Polychlorinated Biphenyls (PCBs) and Polychlorinated Terphenyls (PCTs). These substances are
classified as hazardous and are subject to restrictions relating to their use, production and sale, although this varies from country to country. For a number of years, Fiat Group has
worked toward the progressive elimination of these substances ahead of regulatory deadlines. As a result of the latest actions implemented, as of 2011 PCBs and PCTs are no longer
present at Group plants.
External noise With the objective of minimizing noise at our plants to the greatest extent possible, Fiat Group continually monitors noise emitted into the external environment. For this purpose, the Group
implements the policies provided by the Noise Management Guidelines, which are in effect across all our plants.
VOC emissions are calculated with the mass balance equation, according to the “Operating Guideline for monitoring environmental KPIs – VOC” and apply to the entire Fiat Group’ paint shops.
2007 scope differs from 2012 as Chrysler Group LLC was included starting in 2010.
(4)
(5)
GRI-G4 DMA, EN8, EN9, EN10, EN22, EN24, EN26
Processes / Energy consumption / Water management
Interactive
Water management
Water scarcity is one of the primary challenges facing governments, businesses and individuals in many parts of the world today. Because water scarcity also exposes companies to
business risk, it is a factor that needs to be managed rapidly and effectively.
Fiat Group sees water as one of the most important natural resources to be protected, so much so that it has drawn up Water Management Guidelines that apply to all Group companies.
These provide the principles for sustainable management of the entire water cycle and place greater emphasis on reducing consumption of water resources, especially in water-stressed
regions where water is a limited resource and its availability is critical to the surrounding environment and population.
We periodically map the availability of water resources around the world, correlating the quantity of water available with the quantity consumed in each region.
Areas where the Group is present are subsequently overlaid. This risk assessment identified 13 plants located in areas where water is considered a limited resource. (1) Accordingly, these
plants took appropriate measures to improve water reuse and recycling.
Water withdrawal in water-stressed regions
Fiat Group worldwide (thousands of m3)
Company and plant location
Fiat Group Automobiles – Tychy (Poland)
Fiat Group Automobiles – Tychy Dies Shop (Poland)
FGA Engines and Transmissions – Bielsko Biala SDE (Poland)
FGA Engines and Transmissions – Bielsko Biala Twin Air (Poland)
Magneti Marelli – Wadeville EXH (South Africa)
Magneti Marelli – Sosnowiec Ergom PCMA (Poland)
Magneti Marelli – Sosnowiec ER.SI. PCMA (Poland)
Magneti Marelli – Sosnowiec AL (Poland)
Magneti Marelli – Sosnowiec EXH (Poland)
Magneti Marelli – Bielsko Biala ShA (Poland)
Magneti Marelli – Bielsko Biala SS (Poland)
Comau – Shikrapur (India)
Teksid – Skoczow (Poland)
Total thousands of m3
Base line year
Fresh water consumption
of base line year
Fresh water consumption
in 2013
Percentage variation
Absolute variation
627
6
28
7
7
29
47
102
0
6
11
6
195
1,071
451
2
18
7
1
5
29
68
3
6
9
6
183
789
(28.1)
(61.2)
(36.9)
6.0
(83.0)
(84.1)
(37.6)
(33.5)
561.5
7.1
(16.5)
14.7
(6.2)
(26.3)
(176)
(4)
(10)
(6)
(24)
(18)
(34)
2
(2)
1
(12)
(282)
2009
2010
2009
2011
2009
2009
2009
2009
2009
2009
2009
2009
2009
Water availability <1,700 m3/(person per year). Source: Food and Agriculture Organization’s (FAO) global information system.
(1)
179
Interactive
180
Processes / Water management
As a result of improvements in water cycle management and measures taken to reuse water in industrial processes, in 2013 Fiat Group reduced overall water consumption by 3.6%
compared with 2012 (from 25.9 to 24.9 million m3 ) and by 27.1% compared with 2010 (from 34.2 to 24.9 million m3 ).
Water withdrawal and discharge
Fiat Group worldwide (million of m3)
Plants
Total water withdrawal
Total water discharge
2013
2012
2011
142
144
150
148
24.9
16.2
25.9
17.3
29.9
18.8
34.2
22.4
2013
2,155.6
2,130.6
24.9
98.8
2012
2,064.7
2,038.9
25.9
98.8
2010
Water recycling index
Fiat Group worldwide (million of m3)
Total water requirement
of which covered by recycling
of which water withdrawal
Recycling index (2) (%)
Water withdrawal per unit of production
Mass-Market Market and Premium Brand assembly and stamping worldwide
(m3 per vehicle produced)
2020 target
(-40% vs 2010)
2010
4.97
2011
4.06
3.44
3.23
In 2013, all Mass-Market and Premium Brand assembly and stamping plants currently in operation reduced water consumption
per vehicle produced by an additional 6.1% compared with the previous year (a 34.9% reduction compared with 2010).
The reduction in water consumption without a corresponding action with respect to pollutants would cause an increase in
the concentration of the latter and a decrease in the quality of discharge water. For this reason, Fiat Group pairs reducing
consumption of water resources with optimizing wastewater treatment processes and constant monitoring of the relevant
parameters. For 2014, each plant aims to maintain this discharge well under mandatory limits. In 2013, analysis conducted on
water discharged from Fiat Group plants worldwide revealed levels of Chemical Oxygen Demand (COD) up to 80% below
regulatory requirements, while levels of Biochemical Oxygen Demand (BOD) and Total Suspended Solids (TSS) were
up to 97% and 91% below required limits, respectively.
2012
2013
The recycling index is calculated on the basis of total water requirement, which is the sum of water withdrawn and water recirculated in the plants.
(2)
Water recycling resulted in 2.1 billion m3 of water
saved, equivalent to the amount of water that flows
over Niagara Falls over 13 consecutive days.
Processes / Water management
Interactive
The Group regularly measures and analyzes the presence in our industrial processes worldwide of certain heavy metals which are considered most material. In 2013, nickel (Ni) and
zinc (Zn) were analyzed, following 2012’s analysis of lead (Pb), cadmium (Cd) and copper (Cu). These analyses provide a comprehensive view of Fiat Group’s overall impact on water
quality. Specific objectives were set for levels well below legal limits.
Of 142 total plants active in 2013, 132, which generate 99.9% of the total amount of wastewater, were serviced by either an internal or external wastewater treatment system. The
manufacturing activities of the remaining 10 plants generate wastewater classifiable as domestic and/or not requiring treatment.
No significant spills were reported for the Group in 2013.
Water resources significantly affected(3) by water withdrawal and/or discharge at plants
Company and plant location
Teksid – Carmagnola (Italy)
Water source
(name and size in m3 /year)
Use
Protected
water body
High biodiversity
value water body (4)
Water
withdrawal (5)
Water
discharges (5)
Gora del Naviglio River 3.5 million
Process water effluent
no
no
no
23%
Saving water in Pernambuco, Brazil The commitment to conserve water will also be applied at the new plant that Fiat Group will open in Goiana, in Pernambuco, one of the north-east states in Brazil, an area that has been
drought-stricken for years. Water distribution and wastewater treatment in Pernambuco is managed by Compesa, (Companhia Pernambucana de Saneamento) which has set more
stringent limits on water consumption for industrial activities than other Brazilian regulations.
When installing a new plant in such a sensitive area, special care must be dedicated to water cycle optimization. Particular attention was dedicated to designing water-optimized production
processes. For example, the paint line – traditionally the most water-consuming process in the automotive industry – will have a water consumption index lower than one cubic meter per
vehicle through internal recycling and careful planning of the rinsing stages.
Despite internal water use optimization, the plant’s water consumption would nonetheless be high for this specific area unless additional actions were taken. A further dramatic reduction
will be achieved by sending treated wastewater back to the industrial processes. For this purpose, the wastewater treatment station design includes a recycling process that will generate a
stream of high quality water for industrial reuse, drastically improving the water recycling index. This will also lead to significant economic savings.
The remaining water will be discharged with quality standards far higher than the limits set by local authorities.
Water sources are regarded as significantly affected by water withdrawals and/or discharges if they are designated protected areas or have high biodiversity value, or if the withdrawals and/or discharges of water represent more than 5% of the average annual
volume of the water body concerned. Only surface water has been taken into account. In 2013, water withdrawal never exceeded the 5% threshold at any site.
There is no known impact on the aquatic habitat, since the receiving water body does not have protected species and is not included on any list of extremely valuable natural habitats.
(5)
Representing more than 5% of average annual volume of the water body concerned.
(3)
(4)
181
Interactive
182
Processes / Waste management
Waste management
Fiat Group is also strongly committed to reducing waste generation in its production activities. Accordingly, reusing and recovering materials is widely practiced throughout the Group. What
cannot be reused is recycled. When the waste generated cannot be recycled, it is disposed of, seeking to use technologies with minimal environmental impact (waste-to-energy conversion
or treatment, with shipment to landfills only as a last resort).
The consolidation of actions to improve this important environmental factor resulted in a substantially stable trend in the volumes of waste generated in 2013 compared with 2012, despite
increased production volumes. In the past two years, the total amount of waste generated has decreased by 2.5%. Projects to cut the quantity of waste generated led to overall savings of
about €4.5 million in 2013.
The Group also monitors the level of waste defined as hazardous which is generated during manufacturing processes, in accordance with the applicable legislation in each jurisdiction.
Particular importance is given to reducing the generation of such waste, since by its very nature it is less suitable for recovery. Through appropriate environmental practices, hazardous
waste decreased by 3.1% in the last year and by 36.7% compared with 2010 levels.
Waste generation and management (1)
Fiat Group worldwide (tons)
Plants
Waste generated
Non-hazardous waste
Hazardous waste
Total waste generated
of which packaging
Waste disposed
Waste-to-energy conversion
Treatment
Sent to landfill
Total waste disposed
Waste recovered
Total waste recovered
2013
2012
2011
2010
142
144
150
148
1,770,029
39,069
1,809,098
121,837
1,720,410
40,327
1,760,737
75,332
1,804,698
50,614
1,855,312
97,099
1,650,257
61,754
1,712,011
90,982
23,750
31,055
438,741
493,546
19,950
31,219
438,345
489,514
23,336
37,489
547,056
607,881
21,609
43,936
515,434
580,979
1,315,552
1,271,223
1,247,431
1,131,032
The information relating to the determination of the waste disposal method is provided in the Waste Management Guidelines and embodied in the “operating guideline for monitoring environmental KPIs – Waste”, which applies to the entire Fiat Group.
(1)
Interactive
In Mass-Market and Premium Brand assembly and stamping plants, the quantity of waste generated per vehicle in 2013 was roughly the same as the previous year, while the comparison
with 2010 shows a decrease of 2.8% (from 215.0 to 209.0 kg/vehicle produced) in overall waste generated per vehicle produced. Hazardous waste per vehicle produced decreased
10.3% compared with 2012 (from 3.9 to 3.5 kg/vehicle produced) and 50.0% compared with 2010 (from 7 to 3.5 kg/vehicle produced).
In 2013, Mass-Market and Premium Brand assembly and stamping plants increased the waste recovery rate to 96.4% (compared with the Fiat Group average of 72.7%) and reduced
the percentage of waste sent to landfill to levels as low as 1.3% (compared with the Fiat Group average of 24.3%).
The average value of waste sent by the Group to landfills is essentially linked to a single type of waste, that is, Teksid’s inert industrial process sand, which must be sent to landfill at the
present time due to technological constraints. However, Teksid has several specific projects in progress aimed at optimizing the management of this type of waste.
Waste generated per unit of production
(kg per vehicle produced)
215
Hazardous waste generated per unit of production
(kg per vehicle produced)
2020 target
2020 target
(-14% vs 2010)
(-54% vs 2010)
2010
209.5
2011
208.5
2012
209
2013
2010
7.0
2011
4.5
3.9
3.5
2012
2013
183
Interactive
184
In alignment with the terms of the Basel Convention, 104 tons of hazardous waste were exported from Canada to the United States for recycling (paint shop-related waste) (2), representing
0.27% of all hazardous waste generated by Fiat Group.
Waste recovery rate
Waste sent to landfill
97% 2020 target
2010
92.2%
2011
95.6%
2012
96.2%
2013
96.4%
1% 2020 target
2010
4.4%
2011
1.6%
1.1%
1.3%
2012
2013
Reducing waste sent to landfill In 2013, numerous waste management improvements were implemented in the majority of the Group’s plants. The Teksid plant in Monclava (Mexico) introduced a foundry sand regeneration
system that allows recovering and reusing part of the sand in the production cycle to shape the cores (sand and resin templates used to make the hollow spaces inside iron castings), thereby
reducing the amount of waste generated by about 30,000 tons a year.
This activity is yet another step in spreading the Best Available Technologies (BAT) in waste management to all plants, which started in 2012 at the Teksid plant in Ingrandes sur Vienne
(France).
No other case registered for hazardous waste transported, imported, exported or treated falls under the terms of the Basel Convention.
(2)
GRI-G4 DMA, EN11, EN12, EN13, EN14, EN26, SO1
Processes / Biodiversity conservation
Interactive
Biodiversity conservation
Fiat Group is aware that each species, no matter how small, plays an essential role in the ecosystem and that biodiversity is an important global issue. Accordingly, the Group strives to
preserve biological diversity and the variety of life forms on earth through sustainable development strategies.
During 2010, Fiat Group, in association with the Department of Life Sciences and Systems Biology at the University of Turin (Italy), defined a specific Fiat Group Biodiversity Value Index
(FGBVI) as well as guidelines for its application across the company. The index measures the level of biodiversity and influencing factors for areas surrounding plants in order to identify, and
give the proper priority to, any interventions that should be carried out to protect and/or restore the local environment.
The methodology has led to the definition of two parameters. The first reflects the level of biodiversity found in the surrounding area that is measured through the analysis and assessment of
specific indicators characteristic of aquatic and terrestrial ecosystems, taking into account protected species on the relevant national and/or international lists, for example the International
Union for Conservation of Nature (IUCN) Red List and Directive 2009/147/EC concerning conservation of wild birds. The second parameter measures the level of environmental pressure
based on human activity in the area (agriculture, industry, urban expansion, etc.). Impact on biodiversity derives from anthropogenic pressure of infrastructures in the areas surrounding the
plants and, to a much lesser extent, of the activities carried out at Fiat Group plants. The analysis of the impact of the application of FGBVI helps determine – with the collaboration of local
authorities when possible – which activities and initiatives to pursue in the areas affected.
The methodology was initially implemented at two Italian pilot locations (the Fiat Group Automobiles plant in Verrone and the Magneti Marelli plant in Venaria, both near Turin).
In 2011, the Fiat Group Automobiles plant in Kragujevac (Serbia) also adopted the FGBVI to restore habitat. In 2012, it was extended to one Teksid plant in Funfrap (Portugal), and in
2013 the methodology was further updated in order to be easily extended to other regions. A self-assessment was conducted at 144 plants to identify sites where FGBVI should be applied.
The Group is also highly engaged in biodiversity efforts in the NAFTA region. In 2013, the Chrysler Group World Headquarters and Technology Center in Auburn Hills (US) achieved
Wildlife at Work certification. This program is administered by the Wildlife Habitat Council and recognizes sites that increase biodiversity through specific projects. Preserving the natural
habitat was part of the Master Plan when this Chrysler Group site was first conceived several years ago. Located in an expansive wooded setting with wetlands on 465 acres, the complex
hosts a wide variety of wildlife including great blue heron, double-crested cormorant, wood duck, cottontail rabbit, and Blanding’s turtle. The projects recognized as part of the Wildlife
at Work certification included, among others, wetland management to protect the natural habitat and a newly created pollinator garden planted by a team of Chrysler Group volunteers.
The garden provides a food source for several species including bees, butterflies, moths, hummingbirds, and bats.
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186
Processes / Biodiversity conservation
Plants near, bordering or within protected(1) or high biodiversity areas
Company and
plant location
FGA
Verrone
(Italy)
Type of activity
Production
of transmissions
and parts
Surface
(mln m2 )
1.8
IUCN – Red List species
and national conservation
list species present
44 species listed:
0 Critically endangered
2 Endangered
2 Vulnerable
2 Near Threatened
38 Least Concern
Investment
(€)
58,000
Description of activities
implemented to protect
or restore
Preservation of the natural habitats
and designated Community interest
(Habitats Directive 92/43/EC) to ensure
suitable conditions for the species in danger
of extinction; Containment activities of shrub
species; Restoration of moorland and fire
protection paths (approximately 250,000 m2);
Processing of new biennial FGBVI index;
Biophilia activities conducted for elementary
school students from surrounding towns;
Placement of nests.
External check
on restoration
Y
Position
in relation to
protected area
The protected area
is in the plant area
Magneti Marelli
Venaria
(Italy)
Production of lighting
and exhaust systems
0.2
1 species listed:
1 Near Threatened
28,000
Preservation of the natural habitats of the
Y
Osmoderma Eremita and engineering activities
to protect the century-old oaks in La Mandria
Park. The monitoring of the number of these
threatened species proceeds side by side with a feasibility study to determine the best solution
for keeping the trunk vertical. To date, six oaks
have been anchored with cables connected
to screws driven into the ground, in the least
invasive way.
The Plant
is in the protected
area IT1110079
La Mandria
Teksid
Funfrap
(Portugal)
Production of engine
blocks, exhaust
manifolds, differentials
and carter turbines
0.1
n.a.
35,000
Conducted study to determine the FGBVI
and start of the activities to plan the next
initiatives.
-
Adjacent to
the protected area
(within 5 km)
FGA
Kragujevac
(Serbia)
Assembly and stamping
1.2
73 species listed:
0 Critically Endangered
0 Endangered
0 Vulnerable
2 Near Threatened
71 Least Concern
419,100
Improvement of environmental conditions
through FGBVI application, environmental
recovery, planting of native plant species,
clearing of cement from the bed to recover
the floodplains, creation of a bio-lake;
creation of recreational areas.
-
Restored habitat
Biodiversity in Verrone plant With a keen eye on biodiversity and ecological sustainability, Fiat Group collaborates with the Department of Life Sciences and Systems Biology at the University of Turin for the preservation of
an important ecosystem. At the end of the study to develop the Fiat Group Biodiversity Value Index (FGBVI), the Verrone (Italy) plant decided to continue the collaboration. In 2012, an action
plan was completed which details plant engagement through 2020 to coincide with the United Nations Decade on Biodiversity (2011-2020). The plan includes all interventions and activities
that will be implemented by the plant to preserve biodiversity in its protected area, as well as build greater awareness on this topic among the inhabitants and students in the local community.
In 2013, communication initiatives with LIPU (Lega Italiana Protezione Uccelli) and with local schools were also implemented to spread knowledge about biodiversity and conservation.
A protected area (national, regional, site of community importance, special protection zone, oasis, etc.) is a geographically defined area that is designated, regulated or managed to achieve specific conservation objectives. An area of high biodiversity value is an
area that is not subject to legal protection, but is recognized by a number of governmental and non-governmental organizations as having significant biodiversity.
(1)
GRI-G4 EN19, EN23, SO1
Processes / Non-manufacturing processes
Interactive
Non-manufacturing processes
The Group’s commitment to reducing our environmental impact goes beyond our products and industrial plants to also include workspaces and offices.
Offices
In 2013, several initiatives were launched or continued from previous years, aimed at engaging and training personnel on issues concerning health, environmental protection (waste
management, water consumption, energy saving) and proper management of workspaces. The ultimate goal of these initiatives is to make employees fully aware of the need to put healthy
and sound habits into practice in the workplace, thus increasing their awareness of responsible behaviors that could also be continued at home.
The Group’s various initiatives have been implemented through a number of different communication channels. These included meetings, information disseminated through specific intranet
and internet sites and by email, signs in common areas and special events.
In Italy, the ECOffice program was continued for Group employees. The program consists of an online course available on the intranet portal that illustrates the most common energy-related
issues in the office and suggests actions that employees can take to significantly reduce their usage. The course offers technical information, tips, links to related topics, a self-assessment
test and a suggestions area that is divided into three office equipment categories: PCs, printers and lighting. It also includes a more general module on saving energy and water. In 2013,
access to the program was extended to include additional Maserati employees.
Zero Waste to Landfill at Chrysler Group headquarter The environmental protection initiatives currently under way include the Zero Waste to Landfill program at the Chrysler Group Headquarters and Technology Center in Auburn Hills (US),
where more than 14,000 people work. Approximately 1,670 containers were installed for separate waste disposal of plastic, paper, recyclable and organic material. At a special education
event, employees participated in a contest to test their level of knowledge about waste disposal, with awards for the best responses. Of a total 8,358 tons of waste generated at the Auburn
Hills complex during 2013, zero waste was disposed of via landfill.
Converting an existing industrial site into an office complex in Italy In 2013, the Group began a major project to convert an abandoned 42,000 m2 industrial site in Turin (Italy) into offices. The energy performance specifications of the new structure are
superior to existing regulations and, starting in 2014, the site will house approximately 1,600 employees that are currently located at multiple sites around the city. Beginning with the design
phase, particular attention was given to the ability of the building’s outer shell to adapt to seasonal variations in climate, optimizing ventilation systems and natural lighting, as well as using
advanced technologies to limit thermal dispersion.
From an environmental point of view, the primary benefits of renovating an existing building rather than building a new structure are:
reuse of existing industrial site
n significant reduction in the generation of waste due to preservation of the building’s external structure
n minimization of new building materials to avoid the consequent impact to production and transportation
n conservation of latent energy of materials in the existing structure.
n
187
188
Interactive
Processes / Non-manufacturing processes / Offices
An analysis during the design phase was completed using established standards. The results showed that maintaining the existing structure and materials to transform the building saved
energy and cut emissions significantly, compared to a demolition and rebuild.
The parameters considered were:
n Global Warming Potential 100, i.e., the contribution to global warming produced over 100 years expressed in tons of CO equivalent and calculated based on the contribution to emissions
2
of each element and material present in the building (existing and planned). Preserving the original structure saved about 7,600 tons CO2e.
n PEI, or Primary Energy Intensity, which represents the total energy consumed during the entire life cycle of a product from the extraction of the raw materials up to its demolition and
disposal. Preserving the original structure saved about 89 terajoule
n AP, or Acidification Potential, which represents the potential to form acid rain and is linked to the emission of specific airborne acidifying substances, such as nitrogen oxides and sulfur
oxides. Preserving the original structure saved about 925 tons SO2e.
Another tangible sign of the project’s responsible approach was the use of recyclable materials for the renovation.
Once occupied, the building’s energy performance will be monitored. In addition, the new site is expected to contribute to a progressive revitalization of the local area and infrastructure.
Together We Are 20 Thousand Sustainable Attitudes program in Brazil Several initiatives were launched at FGA sites throughout the LATAM region where approximately 22,500 hourly and salaried workers are employed. Some were linked to the implementation
of standards and international certifications, such as ISO 14001 and ISO 50001, at Group plants. Others focused on preserving natural resources through conscientious use and reducing
food waste in cafeterias, like the Together We Are 20 Thousand Sustainable Attitudes and No Waste campaigns launched at the Betim plant.
Before the launch of the awareness campaign at company cafeterias in the Betim plant where approximately 19,500 people work, 45.6 grams of food per person were wasted on average.
This totaled 19 tons a month and 228 tons a year, enough to feed more than 200 people for a year. Each month, ten baskets of food were donated to charitable institutions designated by
the Árvore da Vida association for each of the four company cafeterias that succeed in wasting less than 40 grams per person. In May 2013, nine months after the launch of the initiative,
all four cafeterias reduced waste to below the threshold, recording quantities of waste per person ranging between 21.38 and 39.76 g. As a result, 20 baskets of food were donated to the
Antonio Goncalves Pereira association in the Teresopolis Gardens neighborhood where 32 elderly people live, and another 20 baskets to Good Shepherd kindergarten in the Imbirucu
neighborhood, which serves over 145 children.
GRI-G4 EN6, EN19
Processes / Non-manufacturing processes / Green IT
Interactive
Green IT(1)
The Group is committed to reducing the environmental impact of our Information Technology (IT) activities by replacing equipment so that it is more efficient.
In 2013, a program to replace office hardware worldwide with equipment featuring high-efficiency power supply units continued. This resulted in saving 1,179 MWh of electricity and
approximately 791 tons of CO2 since 2010. The Group intends to further extend the initiative in 2014.
In addition, approximately 13,800 computer monitors were replaced with new EnergyStar equipment. These new monitors consume less electricity by 473 MWh, and CO2 emissions
by approximately 236 tons since 2010, while meeting the most stringent health, safety and environmental standards. This new equipment does not contain mercury, thus enabling
environmentally friendly disposal and recycling.
In 2013, Chrysler Group initiated a program to replace all printing devices throughout US facilities. Multifunctional printing devices were deployed at the Auburn Hills Campus, enabling
printing, copying, faxing and scanning – all from one device. The new devices also streamline maintenance by automatically ordering toner when low levels are detected. According to plans,
these devices will be deployed in the remaining US facilities in 2014. Along with improved functionality, it is expected to save over €750,000 a year.
In the Data Center area, which includes the computer systems that host applications and IT services, activities continued to reduce, replace, consolidate and virtualize servers, achieving a
cumulative reduction of 36,470 MWh and approximately 23,200 tons of CO2 since 2010. Further initiatives are planned in this field for 2014.
Finally, Chrysler Group in NAFTA region saved cumulative 3,013 MWh of energy and about 2,200 tons of CO2 since 2010 by automatically powering down personal computers not in use
at night.
The conversion factor used for EMEA is 1 kWh = 0.52 kg of CO2 (source: Carbon Trust, Conversion Factors, 2011), the conversion factor used for NAFTA is 1 kWh = 0.75 kg of CO2 (source: Emissions & Generation Resource Integrated Database eGRID, 2012).
(1)
189
Interactive
190
Health and Safety / Health and safety management
GRI-G4 DMA
Occupational Health and Safety
Safety in the workplace and the health of workers is of paramount importance to Fiat Group, in every area of business and in each country of
operation. The Group strategy for promoting and safeguarding employee health and safety on the job is divided into many different areas of
intervention and includes the belief that the highest levels of health and safety are necessary for the performance of all operations.
The main components of the Group’s commitment toward health and safety are the continuous reduction of accidents in terms of their severity and
frequency; the alignment of all Group operations, including new plants, to the highest international standards (OHSAS 18001); and the promotion of
a culture of well-being and healthy conditions across the workforce.
Health and safety management
As part of the Group commitment to being a responsible employer, a safe and healthy working environment is considered a basic right that must be provided to all employees.
Choosing to operate according to the highest internationally recognized standards involves an integrated approach to the management of health and safety in our plants, factories and
offices. The commitment to health and safety covers in fact not only company employees, but also suppliers, service providers and the communities surrounding Group sites.
Our Group takes action in many different areas:
the definition of common, uniform procedures for identifying and assessing risks
n the application of robust safety and ergonomic standards in plant and equipment design
n the promotion of safe behavior through training initiatives and awareness campaigns
n efforts to assure a healthy work environment
n the promotion of a healthy lifestyle.
n
Health and Safety / Health and safety management
Interactive
These responsibilities are formally outlined in the Health and Safety Guidelines, which define the Group’s commitment in every area of activity and location. The Guidelines are regularly
updated by incorporating regulations, insights from specialized literature and needs reported by stakeholders inside and outside the Group. These updates ensure that the Guidelines remain
a current source for new requirements and developments in the field of occupational health and safety.
Integrated health management approach and systems are structured to prevent, and when necessary to assist, all workforce members and contract workers, as well as their families and
communities indirectly.
Main pillars of our approach are:
n management of risk through continuous analysis of critical areas and adoption of a preventive approach for all key activities
n implementation of a management system that conforms with the requirements of the OHSAS 18001 international standard
n continuous improvement of working conditions through comprehensive risk analysis and assessment, formulation and implementation of corrective and preventive action plans, and
continuous monitoring of health and safety activities and risk factors that may arise from the introduction of new substances, materials or technologies (i.e., nanomaterials, hazardous
substances)
n monitoring and analysis of the root causes of non-conformance, applying the tools of the World Class Manufacturing Safety pillar to prevent recurrences
n active involvement of all employees in the improvement process by providing comprehensive information and targeted training
n promotion of safety and prevention-centered conduct among employees
n involvement of suppliers, dealers and other business partners in improving health and safety in the workplace and in their respective areas of activity.
Health and safety activities are organized both by in-company and third-party safety specialists who operate centrally and in the individual organizational units (plants and staff functions).
Centrally, Environment, Health and Safety (EHS) managers are responsible for defining health and safety guidelines, procedures and standards; locally, they support the EHS managers of
each organizational unit of the Group in managing and implementing health and safety policies accordingly. Moreover, they are responsible for monitoring national and regional legislation,
as well as rules and regulations related to health and safety. They are also involved in monitoring observance of the Health and Safety Guidelines and in the implementation of prevention
programs. Coordination between the different regions and organizational units is provided through regular meetings worldwide addressing EHS, during which the key performance
indicators are evaluated and areas for improvement are identified.
A dedicated IT platform monitors performance, and is updated constantly to help assess results achieved, as well as to share best practices, new ideas and successful experiences.
191
Interactive
192
GRI-G4 DMA
Health and Safety / Pursuing the highest standards
Pursuing the highest standards
Maintaining high standards of health and safety calls for an ongoing investment of resources and energy by the Group so that the best working conditions are ensured at every plant and in
every country of operation around the world.
By expanding a management system based on standardized methods and procedures, established centrally and certified by an authorized certification body, the Group can bring its safety
requirements to countries where government standards may be less stringent. With this aim we have continued to pursue our worldwide commitment to adopt the Occupational Health
and Safety Management System (OHSMS) certified in conformance with the OHSAS 18001 international standard.
This provides for a uniform approach in the different plants as well as consistency in the production processes of the sites across the world. By 2014, all Group plants operating in 2012 will
be OHSAS 18001 certified.
OHSAS 18001 certifications
Spending on Occupational Health and Safety
Spending on Occupational Health and Safety (1) (E million)
Percentage of personnel costs (2)
(4)
(1)
(2)
(3)
2013
194
2.1
2012
168
1.8 (3)
2011
270
3.5
Plants certified (no.)
Employees working at certified plants (thousands)
Includes spending on improvements to safety and working conditions (improvements to facilities, worker protection, inspections of plants and the working environment) and to employee health (health care costs).
Personnel costs totaled €9,352 million in 2013, €9,110 million in 2012, €7,629 million in 2011.
Data differs from that reported in 2012 Sustainability Report due to adjustment to the calculation methods of personnel costs.
Coverage includes employees working at manufacturing plants as well as nearby facilities (e.g. offices).
2013
110
147(4)
2012
107
123
2011
103
121
GRI-G4 DMA
Health and Safety / Full engagement in prevention
Interactive
Full engagement in prevention
Health and safety conditions at Group facilities depend on the interconnection of preventive measures and a collaborative approach that recognizes that employees, regardless of their
role or responsibilities within the organization, have a duty to contribute to the dissemination and maintenance of the highest possible standards in the workplace by the way they behave.
Employees are involved in activities focused on safety through training and initiatives geared toward increasing their awareness, which are supported by a formal system for the collection of suggestions.
During 2013, about 1.3 million suggestions from employees were received. 149,000 of these were about ways to improve health and safety conditions. The best suggestions have been adopted
and implemented and the idea owners recognized for their efforts. This significant level of employee participation demonstrates how widely and strongly the commitment is shared within the Group.
Combining proactive and preventive approaches has enabled the Group to capitalize on specific projects and initiatives that have established themselves over time as best practice, and
have become an integral part of Fiat Group’s Occupational Health and Safety Management System (OHSMS).
During the year, more than 5,000 audits (+100% compared with 2012) were completed (of which 122 external, representing an improvement of 85% compared with 2012) covering a total
of about 150,000 employees.
From 2009 to 2013, WCM was implemented in a total of 300 supplier sites (of which 218 in EMEA, 70 in LATAM and 12 in NAFTA).
World Class Manufacturing: the Safety pillar The World Class Manufacturing Safety pillar aims to contribute to the continuous improvement of the work environment and to progressively reduce all objective and behavioral risks that
could result in accidents, injuries and occupational diseases. The basic principle of this pillar is that these objectives can be achieved only by creating and disseminating a genuine culture
of shared safety throughout the entire organization.
A strong leadership that is expressed through the direct involvement of senior management in setting clear and measurable objectives and the motivation and engagement of all employees
are essential ingredients to achieve the highest health and safety standards like those set by the Safety pillar.
Leadership and engagement promote the dissemination of the company’s vision and fundamental values in the field of health and safety at all levels, as well as the strategies for intervention
and the results to be reached. A crucial role is played by the training and education of all workers as a part of the objectives set in the Skills Development pillar.
The scope for the implementation of the pillar is not limited solely to the plant level, but also includes suppliers, third-party companies and other entities along the value chain.
The Safety pillar allows for the sharing of objectives specific to each plant area and the clear and transparent communication of indicators to monitor whether these are achieved.
The Safety pillar’s objectives are:
n elimination or drastic reduction of the risk of accidents, injuries and occupational diseases
n development of a corporate culture of health and safety in the workplace
n constant improvement of ergonomics in the workplace, including redesigning workstations through worker feedback
n development of specific professional skills in the field of occupational health and safety
n creation of intrinsically safe workstations and equipment starting from the design phase
n elimination or minimization of environmental pollution in the production unit
n adoption and consolidation of safe behaviors by workers both at and outside the workplace.
The Safety pillar is oriented toward direct worker engagement in prevention, with the support of management and the awareness that a genuine culture of safety requires the active
involvement of the people who every day face operational issues that may entail health and safety risks.
193
Interactive
194
GRI-G4 LA6, LA7
Health and Safety / Safety first
Safety first
By integrating the standards and tools defined in the Occupational Health and Safety Management Systems (OHSMS), the methods and tools in the World Class Manufacturing Safety pillar,
proactive employee participation, development of know-how and the company’s financial commitment, the Group has achieved significant results in reducing the indicators related to work
injuries.
Frequency rate(1)
Fiat Group worldwide (accidents per 100,000 hours worked)
2011
0.28
2012
2013
0.22
0.19
Severity rate(2)
Fiat Group worldwide (days of absence due to accidents per 1,000 hours worked)
2011
0.08
2012
2013
0.07
0.06
Work injuries are investigated and analyzed in depth to understand root causes and to establish the right measures to eliminate the risk of recurrence. The injuries are classified according
to their frequency, severity and gender of the employee involved. Further classifications are handled at the site level and by production line/process. Any new best practice deriving from this
in-depth analysis is then shared across the Group.
For the seventh year in a row, work injury indicators continued to improve, with a 13.6% drop in the Frequency rate (with 0.19 accidents per 100,000 hours worked) and 14.3% in the
Severity rate (with 0.06 days of absence per 1,000 hours worked) compared with the previous years. As of 2012, data is also monitored by gender. The data analysis does not show any
prevailing gender-related trend. For further details see Appendix.
Initiatives and investments also led to a gradual reduction of risk factors attributed to our plants in Italy by the National Institution for Insurance against Accidents at Work (INAIL). The measures
adopted by the Group have yielded savings from lower insurance premiums paid to INAIL, amounting to over €17.5 million in 2011, about €16 million in 2012 and €14.6 million in 2013.
Every year near misses (3) (approximately 28,000 cases identified and analyzed in 2013) and unsafe acts continue to be monitored. This analysis enables the development of measures to
prevent conditions and to correct behaviors that could potentially cause hazardous situations.
(1)
(2)
(3)
The Frequency rate is the ratio of the number of injuries reported (resulting in more than three days of absence) to the number of hours worked, multiplied by 100,000.
The Severity rate is the ratio of the number of days of absence due to accidents to the number of hours worked, multiplied by 1,000.
A near miss is an event that did not result in injury or illness but had the potential to do so.
Health and Safety / Safety first
Interactive
Prevention, surveillance and emergency aid activities to safeguard health in the workplace are carried out by medical and paramedical personnel, generally present at each Group plant
based on the needs of each site. In 2013, medical check-ups of all kinds numbered approximately 409,000 (318,000 in 2012).
Occupational Illness Frequency rate
Fatalities
Fatal accidents involving Group employees (no.)
Fiat Group worldwide (cases of occupational illness per 100,000 hours worked)
2013
2
2012
3
2011
2011
0.18
In 2013, two fatal accidents occurred involving Fiat Group employees in Brazil and Argentina. The first involved an
2012
employee at the Teksid plant in Brazil, the second concerned a Comau worker at the plant in Argentina.
0.24
A fatal accident involving one employee from an external company occurred at the Fiat Group Automobiles plant
G. Vico (Italy). Each accident was analyzed in-depth and the Group companies involved took immediate steps to
2013
0.18
support the families of these individuals and are fully cooperating with local authorities.
Occupational illnesses refer to diseases resulting from gradual and progressive harm to the worker, which occur
during, and as a direct consequence of, insured activities performed while working. Trends in occupational illnesses
and how they change over time are closely monitored by the Group.
From a statistical point of view, information on occupational diseases occurring within the manufacturing environment is collected and classified in two distinct categories: case files opened
and confirmed cases of disease. The former are cases being investigated and verified by insurers in accordance with applicable local regulations to determine the existence of an occupational
disease and any causal link with the work activities performed. The latter are cases where the insurer, upon completion of the investigation, confirms that the above conditions exist.
In 2013, a total of 732 cases of occupational illnesses were verified by insurers in the various countries. The Occupational Illness Frequency rate shows the ratio of occupational illness
cases per 100,000 hours worked. In 2013, it was 0.18 (0.24 in 2012). The comparison of this indicator between years is only tentative since unlike accidents, the data on occupational disease
refers to cases discovered several years – often decades – prior to the year in which they were actually verified. In fact, occupational diseases are quite complex, and often related to
situations that no longer exist within the Group because they may be associated with working methods and environmental conditions that have long since been eliminated. For this reason,
there is no evidence of high incidence or high risk of disease related to employee occupations.
195
196
Interactive
Health and Safety / Health at the workstation / Health and wellness programs
GRI-G4 LA5, LA7, LA8
Health at the workstation
We believe that promoting a healthy and safe working environment is an essential value and a primary responsibility toward employees and anyone else at company sites. This responsibility
implies a broader outlook on health and safety, in which health is not just the absence of disease and risk factors, but also the availability of resources that support well-being.
The experience gained within the Group, ongoing dialogue and sharing of know-how, in addition to the directives of the European Agency for Safety and Health at Work, confirm that new
forms of occupational disease are becoming a serious issue. Most of the more recent occupational diseases are related to musculoskeletal disorders and work-related stress. Both are new
areas of risk analysis in which Fiat Group has been engaged, establishing a number of tools and actions for risk prevention, elimination and mitigation.
Health and wellness programs
Health initiatives across the world
Fiat Group has always been committed to supporting and promoting health and wellness programs for its employees and their families broaden the level of awareness and sensitivity to
these issues.
These programs have been developed and implemented both within the Group and locally.
WELL – a Group-wide initiative The WELL initiative was further developed throughout the Group and its scope was expanded with new content aimed at promoting healthy habits and prevention. Clear and simple tips on
its dedicated website address: healthy diet, no-smoking campaigns, prevention of cardiovascular diseases and conscientious use of prescription drugs. In addition to this initiative, there
were many other individual campaigns promoted locally by different company establishments.
Fiat Group Automobiles Powertrain Plant in Termoli (Italy) The Termoli plant participated in a project organized by the LILT (Italian League for the Fight against Cancer) aimed at raising awareness and providing information on how to prevent tumors
and on the kinds of exams needed for the early diagnosis of some specific types. This project was carried out in collaboration with local trade union organizations.
Fiat Group Automobiles Powertrain Plant in Verrone (Italy) Cooperation with the “Edo e Elvo Tempia” Foundation began in order to launch campaigns to raise awareness about how harmful and dangerous smoking is. Through group lessons and
one-on-one meetings held by specialists, employees got the opportunity to request specialist exams to assess their current health.
Magneti Marelli Plant in Corbetta (Italy) For World Food Day, the Healthy Eating Program was organized to spread information among employees, helping them improve their eating habits. A targeted information and education
campaign was launched which also broadcast dedicated videos on the Magneti Marelli CCTV. Employees were given the chance to take a survey on their diet, and signs were made with
the calories in the menu of the day at the company cafeteria.
Interactive
Magneti Marelli Plant in Hortolandia (Brazil) The Smoking Cessation Project at the Hortolandia plant was continued with the aim of raising awareness and generating motivation, while explaining why people should quit smoking. The
project activities included an internal communication campaign through banners, posters, brochures, speeches and an intranet section. Conferences and dedicated medical support aimed
at raising awareness among employees of the risks linked to smoking. The project was managed by a multidisciplinary group of partners including Unimed Campinas in partnership with the
Medical Service and Magneti Marelli Internal Communication.
Magneti Marelli Plants in Germany and Poland In Germany, the company provided nutrition/dietary consulting services and eye check-ups, while in Poland, MM Automotive Lighting and Exhaust Systems provided specialist visits and
blood tests absolutely free of charge.
Fiat Group Automobiles Plant in Tofas (Turkey) The Towards Healthy Life project was organized in association with a specialist company to implement a 24/7 legal, social and psychological support program for employees.
In addition, about 1,500 employees underwent anthropometric measurements, blood tests and other instrumental exams and completed nutrition questionnaires as part of a campaign to
prevent metabolic syndrome.
Fiat Group Automobiles Plants in Latin America A tool was specifically designed for classification of cardiovascular risk linked to employee lifestyle habits in order to reduce the incidence of cardiovascular disease and improve the
management of chronic diseases. Each year, a cardiovascular risk analysis is conducted on employees participating in the screening campaign through the IQS – Quality Health Index.
Fiat Group Automobiles Plant in Bielsko Biala (Poland) New smoking rooms were made available throughout the plant. These are provided with ionized air and multilayer filters to ensure good air quality and prevent smoke from escaping. These
rooms were also used to provide information about the dangers and harmful effects of smoking by means of signs on the walls. An information booklet about the dangers of smoking had
already been handed out to all employees.
A campaign on the benefits of a healthy diet was conducted and informative posters were hung in company cafeterias.
Fiat Group Automobiles Plant in Cassino (Italy) The Smoking Cessation campaign was conducted to help motivated smokers to quit smoking and at the same time to raise awareness among those lacking motivation of the risks they are
running if they do not quit. The campaign also provided easily accessible psychological and pharmacological treatment to help those interested achieve this goal. Several external partners,
including the Frosinone AUSL, the Fondazione G. Veronesi, and the San Giovanni Bosco Hospital in Turin, were involved in organizing and promoting the initiative.
The questionnaires were distributed throughout the company, involving 2,648 employees. The findings showed that there were 422 smokers and that 352 of them were motivated to quit
smoking.
Support measures are currently being implemented to guide these workers along the path that will free them from nicotine dependence.
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Fiat Group Automobiles Plant in Pomigliano (Italy) In Pomigliano, a prevention initiative called “Programma di prevenzione delle malattie cardiovascolari e di prescrizione dell’attività fisica” (Program for the prevention of cardiovascular
diseases and prescription of physical exercise) was launched for employees.
Participation in the prevention program is voluntary and free for all employees of the Fiat Group Automobiles Plant in Pomigliano.
The visits under the program do not replace the periodic medical visits required by the company health protocol and by existing law.
Sports Medicine and Cardiology assessment
The annual medical examination includes:
n sports medicine/cardiology consultation
n anthropometric measurements (weight, height, Body Mass Index, abdominal circumference)
n electrocardiogram at rest
n exercise electrocardiogram with cycloergometer
n bioelectrical impedance analysis to estimate body composition
n blood tests to determine coronary risk factors (complete blood count, blood glucose, total cholesterol, HDL cholesterol, triglycerides and transaminase)
n urine test
n spirometry for pulmonary assessment
n prescription of an exercise regimen
n certification of good health and/or fitness to do sports (on request)
Obesity prevention visits
Screening of patients to be referred to the obesity prevention clinic based on the following selection criteria:
n altered BMI
n body composition
n abdominal circumference
n altered lab test results
n cholesterol
n triglycerides
n blood sugar
n transaminase
n consultation with the physician (to avoid repeat exams and so on)
n at the end of the visit, all participants receive a sealed copy of their own booklet with the initiative’s logo, complete with all the information resulting from the exams and important advice
on the lifestyle to follow and on recommended sports. The collected data is loaded into a special database of statistics that provides real-time results in terms of average values, standard
deviation and differences from previous exams, providing a reliable snapshot of the general population as well
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Special projects
n obesity and Metabolic Syndrome Prevention outpatient clinic
n nutritional and dietary counseling
n liver ultrasound
n psychological assessment.
Another issue the Group places strong emphasis on is employee well-being. When it comes to the diet and physical well-being of its employees, Fiat Group Automobiles organized a series
of meetings in 2013 between its staff and the physicians at the Fiat Sepin Medical Diagnostic Center (Ce.Me.Di.) in Turin (Italy). Employees have the chance to enroll in sessions where they
meet doctors and health and wellness specialists, discuss issues and have any doubts cleared about general or personal issues by talking directly with the experts. These meetings are also
recorded and the videos made available to all Group employees on the employee portal.
The topics discussed at the meetings focused on:
n cardiovascular diseases: tips, and useful examples of healthy lifestyles to prevent cardiovascular diseases
n violence against women: its various forms and suggestions for a culture of prevention
n the flu: its symptoms and instructions for prevention and care.
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Health and Safety / Initiatives for a culture of prevention
GRI-G4 LA9
Initiatives for a culture of prevention
The development of a culture of prevention, health and safety, and the integration of safe behaviors within the working environment is pursued at Fiat Group through investments in training
programs and awareness campaigns.
Within the framework of the Occupational Health and Safety Management System (OHSMS) and the World Class Manufacturing (WCM) Safety pillar, dedicated organizational structures
plan and implement awareness campaigns, as well as educational and training initiatives.
These activities focus on the importance of safeguarding health and safety, complying with policies and procedures, and promoting appropriate prevention behaviors across all organizational
levels and roles.
In 2013, the number of training hours on health and safety was 1,184,000, representing
Health and safety training
an improvement of about 10% compared with 2012 (1,079,000 in 2012), delivered to
Fiat Group worldwide (thousands)
approximately 155,000 employees, including about 116,000 hourly employees.
2013
2012
2011
1,184
Hours of training provided
1,079
699
The Organismo Paritetico Health and Safety (OPHS), established in 2012, thoroughly
155
Employees involved in training activities
215
148
planned the health and safety courses of the Health and Safety First training platform. OPHS
116
of which hourly
154
102
is a joint body in which Fiat S.p.A., CNH Industrial and trade unions FIM-CISL, UILM-UIL and
FISMIC ensure the joint governance of training programs and relevant management activities,
as well as propose solutions for critical workplace health and safety issues.
The goal of the Health and Safety First training platform is to provide an array of training courses developed and customized to real-life scenarios and needs within the Italian operations
of the Group, particularly addressing managers and professionals in charge of safety, specialists (Safety Officers responsible for emergencies and first aid, etc.) and employee safety
representatives.
Information campaigns aimed at increasing employee awareness of health risks and health care prevention measures continued in 2013.
The WELL initiative is accessible to web users worldwide on the company intranet sites (accessible as of year-end 2013 to approx. 42,000 employees). This initiative provides information
on the promotion of good health habits and the prevention of minor illnesses, sensory impairment and future health problems. Other regular programs included those for the prevention of
seasonal flu; campaigns against the spread of infectious diseases, with a focus on sexually transmitted diseases (particularly HIV; provided to approx. 19,600 employees and 7,700 external
providers); and for the promotion of personal hygiene.
Counseling services are also available at Chrysler Group US facilities through Employee Assistance Programs (EAP), whose purpose is to put employees in touch with professional
counselors when needed. The program provides an opportunity to discuss personal concerns and to easily access a variety of services to address stress management and other personal
issues (i.e., depression and anxiety, substance dependence, family or financial troubles) or needs such as child care, eldercare and other concerns in balancing work and personal life.
GRI-G4 LA5
Health and Safety / Initiatives for a culture of prevention / Trade union relations on health and safety
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The comprehensive Group-wide Health Promotion Program, developed and launched in 2012, continued throughout the year. The Health Promotion Program is based on experiences
reported both inside and outside the Group, and follows the health and safety principles of the main international organizations, especially the World Health Organization (WHO), the
US Occupational Safety and Health Administration (OSHA), the European Agency for Safety and Health at Work (EU-OSHA), and the International Labour Organization (ILO). The four
top-priority intervention areas used during the program’s first year remained:
n screening and vaccination (including services such as blood pressure, blood sugar level and cholesterol monitoring, as well as free vaccinations)
n nutrition education initiatives (counseling on healthy eating in the workplace; healthier food options on the cafeteria menu)
n promotion of physical activity (increasing options for physical activity through sports teams or clubs, and advice on how to increase daily activity levels)
n smoking cessation programs (awareness campaign on issues related to smoking including long-term health risks; creation of smoking cessation groups).
In addition to Fiat Group’s Health Promotion Program, various other initiatives were developed and promoted locally over the years to inform, support and monitor employees as they
strive to adopt healthy lifestyle habits.
Trade union relations on health and safety
Improvement of employee health and safety is also one of the key issues in the exchange with employee representative bodies, in keeping with current legislation and collective labor
agreements applicable in each country where the Group is present.
In 2013, a survey carried out on over 99% of Group employees (1) worldwide showed that over 81% are covered by representative bodies which, among other topics, also handle health
and safety issues by supporting the monitoring of dedicated programs and advising as needed.
(1)
Including Sevel Italia.
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202
Transports / Upstream and downstream logistics / Organization
GRI-G4 DMA
Optimizing transport
As a global automaker, people and goods within Fiat Group are always on the move. Every year, our Logistics departments manage the movement of
a huge amount of goods and vehicles. We strive to keep our emissions as low as possible by expanding the number of low-emission transport
vehicles, by optimizing our transport logistics flows, and by using telecommunication technologies where possible to reduce employee travel.
Upstream and downstream logistics
Attaining maximum efficiency and minimal environmental impact while managing the movement of materials, parts and finished vehicles through a complex global supply chain is a
commitment that Fiat Group Logistics embraced years ago. By optimizing freight flows and maximizing efficiencies, our efforts are centered on reducing environmental impacts by cutting
logistics-related emissions and minimizing the use of non-reusable packaging.
This is specifically stated in our Green Logistics Principles, consistent with the Fiat Group Environmental Guidelines on which they are based, which provide guidance on reducing
environmental impacts, focusing on four main areas:
n increase in low-emission transport
n use of intermodal solutions
n optimization of transport capacity
n reduced use of packaging and protective materials.
Organization
World Class Logistics (WCL) defines logistics processes at plants and in the supplier network which have been established to meet the requirements of safety, ergonomics,
eco-compatibility and transport flow optimization. This is managed by Fiat’s Logistics Engineering unit and Chrysler Group’s Logistics & Customs department, which act as bridges
between manufacturing and suppliers or dealers through material movement. Processes have been significantly improved through the re-engineering of material flows and the application
of Just-in-Time methodology, by reducing stock and material handling and delivering only what is needed, where it is needed, at the right time.
Logistics flows Components and materials delivery (upstream transport) to Group plants and spare parts (managed by Fiat Parts & Services and Mopar(1)) transport to warehouses and distribution
centers is handled either by external transport providers engaged by the company or managed directly by the material suppliers themselves. Shipment of spare parts to dealers is handled by
external logistics operators that are not managed by the Group. Vehicle distribution (downstream transport) from plants to dealers is handled by the Group-owned fleet (i-FAST Automotive
Logistics S.r.l. in Europe and Chrysler Group Transport in North America) or by external transport providers engaged by the company.
The Group’s service, parts and customer care organization.
(1)
GRI-G4 EN15, EN17, EN18, EN19, EN30
Transports / Upstream and downstream logistics / Environmental performance
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Environmental performance
The environmental key performance indicators (KPI) identified and adopted are regularly monitored to enable greater coverage and in-depth analysis of distribution flow impacts. The results
from monitoring are used to set continuously challenging improvement targets.
CO2 emissions recorded in 2013 relating to Group logistics processes managed directly by Mass-Market and Premium Brand logistics in the NAFTA region equaled approximately
900,000 tons: 52% from upstream and 48% from downstream transport for vehicle distribution. This represents an increase of about 19.8% compared with the previous year(1).
The 2013 increase in production levels and volume mix in the NAFTA region led to significant challenges in freight and vehicle movement. In some cases, production schedules and
availability of materials necessitated less than fully-cubed loads, resulting in more miles per vehicle shipped being traveled by the upstream transport fleet.
Improved sales growth in the international markets, which requires shipment to coastal ports, as well as increased sales
CO2 emissions in logistics processes (2)
in the southern and western states, saw more vehicles traveling longer distances.
Mass-Market and Premium Brands in EMEA (thousands of tons of CO2)
Aggressive measures were essential in keeping the resulting carbon emissions to a minimum. Overall, carbon emissions
2013
2012 (3)
2011(3)
per kilometer traveled for upstream freight increased by 1.6% despite the 17.4% increase in kilometers driven, while
65.7
Upstream
74.6
81.0
downstream carbon emissions per kilometer traveled decreased by 7.5% compared with the 30.3% increase in transport
96.1
Downstream
104.7
114.5
kilometers, primarily due to an increase in rail transport.
8.0
Spare parts
8.4
9.5
Total
169.8
187.6
205.0
With respect to the EMEA region, CO2 emissions decreased 9.5% in 2013 compared with 2012 (3).
Increase in low-emission transport In the NAFTA region, efforts continued to reduce our carbon footprint for downstream Group-managed transport, resulting in new official partnerships. Following the partnership between
Canada and the US Environmental Protection Agency in 2012, a similar initiative was established in 2013 with the Mexican Secretariat of Communications and Transportation Agency (SCT)
and the Mexican Environmental Agency (SEMARNAT). The primary objective of Transporte Limpio (literally “Clean Transport”), a voluntary national program, is to reduce CO2 emissions from
cargo transport vehicles while increasing fuel economy and implementing more environmentally friendly practices.
During 2013, we avoided more than 19,000 tons of CO2 by using rail transportation instead of other, more polluting modes.
With respect to downstream transport in Europe, the Group’s internal fleet of trucks carries about 16% of the total vehicle distribution by road. Of this fleet, 80% is already Euro V-compliant.
Continued investment in more efficient trucks is expected for 2014.
Last year’s report indicated 308,000 metric tons of CO2 emissions from upstream freight. This figure should be 387,904 resulting in a total of 749,473 metric tons.
The calculation of CO2 emissions was based on the criteria illustrated in The Greenhouse Gas Protocol – revised edition for road transport, and the IFEU Heidelberg environmental method for sea and rail transport. The figure relates to 100% of
downstream transport and 71% of the volume of upstream transport in Europe. The figure for emissions from the transportation of spare parts relates to 31% of upstream traffic by weight; downstream transport for spare parts is not monitored as it is
not currently managed directly by the Group.
(3)
Data restated to be consistent with 2013 scope.
(1)
(2)
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204
Regarding Group-managed upstream transport in Europe, access to plants is already prohibited for vehicles with emission levels that do not meet the Euro III standard.
Contractual clauses continued to be progressively introduced in 2013, requiring that at least 50% of supplier fleets consist of vehicles compliant with Euro IV or stricter standards.
We are also continuing to monitor emission standards on the vehicles used by a large part of material and component suppliers not managed directly by the Group. This makes it possible
to extend the same standards required for Group-managed transportation to those fleets as well.
Use of intermodal solutions In order to reduce traffic congestion and CO2 emissions, the Group explores alternative solutions to road transport through a variety of options such as rail and sea. Depending on
geography, infrastructure and production volumes, the upstream and downstream material transport may require a significant percentage of road transport. Efforts were made in 2013 to
continue the extension of intermodal solutions which had already been introduced. In addition, the Group continued to evaluate potential new rail routes both for material transport and
vehicle distribution.
In 2013, Fiat Group upstream rail transport share of CO2 emission in the EMEA region increased from 5.8% to 8.0% compared with 2011, while road transport impact decreased from 93.5%
to 90.6% (4). Sea transport accounted for less than 1% out of the total emission.
Regarding downstream logistics, sea transports share of CO2 emission increased from 32.8% to 39.3% compared with 2011, while road transport impact decreased from 59.9% to 55.7%.
The remaining percentage is attributable to rail transport. In Europe, the lower volumes transported made it more difficult to fully exploit railcar density and hence resulted in a slight decrease
in the use of this transport mode.
In the NAFTA region, the Group works in partnership with other automakers by co-loading vehicles and, in this way, increase railcar density. Due to the increase in intermodal transport
solutions, 2013 registered savings of about 4,500 tons of CO2 and about €1.3 million.
Logistics transport by mode(5) Logistics transport by mode
Mass-Market and Premium Brands in EMEA (% of CO2)
2011
73.8
19.5
6.7
2012
70.8
23.0
6.2
2013
69.8
23.9
6.3
Mass-Market and Premium Brands in NAFTA (% of km)
Road
Sea
2012
41.9
58.1
2013
38.6
61.4
Rail
Percentage data have been restated to include FGA Engines and Transmissions in the scope.
Data includes upstream and downstream transport and excludes spare parts figures.
(4)
(5)
Road
Rail
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Optimization of transport capacity Maximum utilization of transport capacity is another method used by the Group to reduce the environmental impact of logistics operations while simultaneously containing shipping costs.
The extension of the “milk run (6)” approach by Magneti Marelli in the EMEA region resulted in a reduction of 12,500 tons in CO2 emissions in 2013.
Through daily route optimization in upstream flows in the NAFTA region, 870,000 kilometers were saved, avoiding the emission of 850 tons of CO2. Collaboration with other automakers
to consolidate collection routes resulted in a savings of an additional 1 million kilometers, avoiding the emission of 970 tons of CO2. The process led not only to improvements in financial
performance but also a reduction in truck traffic.
The Mopar Service and Parts organizations have embraced the concepts of World Class Logistics (WCL) and have begun implementing actions similar to those at our manufacturing facilities
in order to achieve a best-in-class supply chain. A Central Lead has been established within the organizations and Central Teams are in place to drive the WCL methodology and support
the Mopar network.
The continuation of training and awareness programs on cube utilization has resulted in additional year-over-year improvement. In 2013, our supplier shipments required an estimated
300 fewer trailers and 320,000 fewer kilometers when adjusted for volume.
Additionally, we initiated a focused, small-scale pilot project with the Milwaukee Parts Distribution Center to determine the impact trailer decking has on delivery cost. Mopar identified a 25%
potential reduction in trailers needed and distance traveled, due to the additional space that decking provides within each trailer. Expansion will begin in the first part of 2014.
In 2013, the Group continued efforts to reduce CO2 emissions by looking for additional opportunities to engage other automakers and non-automotive companies via the carriers to combine
downstream freight and share the transportation costs among all parties. Additional focus was placed on opportunities within the Mopar network utilizing both upstream and downstream
lanes to reduce capacity and save kilometers. These efforts allowed Mopar to supply 25% of the dealers on shared service routes.
Reduced use of packaging and protective materials We also work to minimize packaging and protective materials and increase the use of reusable containers, while maintaining standards and meeting quality requirements. Where this
is not possible, the Group ensures that standard recovery processes are applied.
Although the Group’s commitment is to reduce disposable cardboard packaging in European plants, its use increased in 2013 by 5.2% compared with the previous year (from 5.7 to
6.0 kg per vehicle). This was principally due to an increase in cardboard required by the new Grugliasco (Italy) plant where Maserati vehicles are produced. This plant was out of scope in
2013, but its cardboard usage was unexpectedly reported under the Mirafiori (Italy) plant figures. It was not possible to isolate the specific Grugliasco figures, leading to a perceived jump in
overall usage. Despite this, compared with 2009 there was a 6.3% reduction (from 6.4 to 6.0 kg per vehicle).
We continued to reduce wood packaging for international shipments of materials from Italy. In 2013, shipments to our plant in Betim (Brazil) saw a 9.7% reduction in the use of disposable
wood packaging compared with 2012 (from 7.2 in 2012 to 6.5 kg/m3 shipped), and a 47.6% reduction compared with 2011. These results are due to the progressive introduction of returnable
metal crates or specially equipped containers replacing disposable wood packaging. In 2013, monitoring of wood packaging systems was extended to Group plants in Turkey and Poland.
We also initiated projects to reduce packaging material in the NAFTA region. Where wood or corrugated material is necessary for the export of material to international manufacturing
locations, the company partners with service providers that are certified by the Sustainable Forestry Initiative (SFI).
The “milk run” refers to a process whereby transport pickups are organized to optimize truck routes, ensure full truckloads and minimize the time required to make all supplier pickups in a specific geographic area.
(6)
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Transports / Employee commuting
Employee commuting
One of the areas where Fiat Group has long focused its efforts to reduce CO2 emissions is employee commuting between home and work. The initiatives implemented include the
optimization of travel routes, the promotion of public transportation and the use of more sustainable vehicles.
The easygo project addresses approximately 18,000 employees and 4,000 daily visitors at the Mirafiori complex in Turin (Italy). The initiative was developed in 2008 in collaboration with
institutions and public transportation companies, and uses input from employees for continuous improvement.
In 2013, we conducted a mobility survey on approximately 1,600 employees prior to their transfer to new offices created at the Mirafiori complex in Turin. The study was meant to analyze
employee commuting needs and the optimal routes for getting to their new workplace. By analyzing the local public transport network, we then were able to provide employees with
pertinent information on the company intranet and thus ease the move to the new offices.
With respect to public transportation, special and regular routes have been reorganized, with service made more frequent and at specific hours of the day to coincide with employee arrival
and departure times. In addition, shuttle services between the main bus routes and train stations have been arranged. In terms of private transportation, the focus has been on bicycling
and personal vehicles. Bike paths were improved both inside and outside of the plant complex and parking spaces for bikes were created.
Employees at the facility also have a dedicated internet web portal where they can sign up to participate in carpooling initiatives, share means of transportation and access information about
public transportation and bike paths. A special email address was also launched for employees to suggest areas of improvement and indicate service disruptions. In addition, traffic lights,
pedestrian crossings and stopping/parking zones continue to be upgraded to improve the flow of traffic and safety conditions in and around the Mirafiori complex.
The principal benefits expected from the easygo project include not only a reduction in the environmental impact from commuting, but also improved employee satisfaction and well-being
resulting from reduced commute time and cost, reduced risk of accidents, lower stress and, finally, more social interaction with co-workers.
In order to plan improvement activities for the coming years, a study was conducted to evaluate the effectiveness of the interventions completed since the beginning of the project,
particularly with respect to public transportation and parking areas.
At the Chrysler Group headquarters, a grassroots sustainability program promotes employee ideas and engagement. One of the grassroots teams encouraged employee cycling by
installing additional bicycle parking slots at the complex to secure bikes for those that cycle to work. The team also coordinated with local experts to offer cycling education to employees
to support safe cycling in and around the community. In addition, vanpool information was offered at the annual Earth Day event at the Chrysler Group headquarters to support more
environmentally friendly transportation and employee convenience.
GRI-G4 EN17, EN19, EN30
Transports / Business travel
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Business travel
The Group understands the impact that business travel can have on the environment, employees and the broader community, and is committed to a responsible travel management
program.
Since 2011, a project at Fiat Group has monitored CO2 emissions generated by its business air travel. In 2013, CO2 emissions from air travel, covering 55% of Group employees, totaled
more than 39,600 (1) tons. The CO2 emissions recorded in 2013 were generated by more than 110,000 business trips taken during the year, a result of the global nature of the Group.
The total amount of km flown increased by 0.7% compared with 2012, emitting the same amount of CO2.
To minimize the need for travel, the use of audio and video conferencing and instant messaging systems was further extended to reach more than 75,000 individuals. On average, there
were approximately 34,000 phone calls, 8,500 desktop sharing sessions, 4,000 web conferences and 350,000 instant message sessions each day in 2013. The Group TelePresence
videoconferencing system has significantly grown since 2012. At year-end 2013, this integrated system of 117 meeting rooms registered more than 32,300 hours of teleconference, an
increase of 120% compared with the previous year. These communication methods enabled employees to stay in contact with their counterparts at other locations, without the need for
business travel and its resulting impact on the environment.
This calculation was made according to the DEFRA/GHG methodologies.
(1)
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Appendix / About this Report
GRI-G4 28, 30, 31, 32
Appendix
About this Report
Reporting period
Financial year 2013 (1 January 2013 to 31 December 2013)
Reporting cycle
Annual
Date of publication
March, 2014
Document formats
PDF and interactive versions available online in English and Italian. Printed versions can be ordered through our website
www.fiatspa.com
www.chryslergroupllc.com
Report scope and boundary
n
n
The information and data relate to Fiat Group companies worldwide falling within the scope of consolidation at 31 December 2013.
Financial figures reflect those reported in the Fiat S.p.A. Annual Report 2013.
Report content
The content of this report is based on the results of our dialogue with stakeholders, the Global Reporting Initiative G4 requirements and
other sustainability ratings and rankings. This interactive version includes material aspects as well as topics which are not material, but
which may be of interest to selected stakeholders.
Global Reporting Initiative (GRI)
The Report is GRI-G4 in accordance – Comprehensive.
Assurance
n
Contact
The Report was subject to an assurance audit by SGS Italia S.p.A., an independent certification body in compliance with the Sustainability
Reporting Assurance procedure (SRA), with the GRI-G4 guidelines, and with the AA1000 APS (2008) standard.
n SGS is officially authorized to conduct AA1000 assurance audits. In addition, as of this year, the Group’s sustainability management
system is aligned with the ISO 26000 Guidance on Social Responsibility standard, published in November 2010. The statement of
assurance describing the activities carried out and the expression of opinion is provided at this link.
Your opinion is important to us. Please contact the Sustainability Teams with any questions or suggestions.
+39 011 0063908
[email protected]
[email protected]
[email protected]
GRI-G4 22, 23, 29, 30, 33
Appendix / Definitions, methodology and scope
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Definitions, methodology and scope
The Fiat S.p.A. Sustainability Report, now in its 10th edition, is a voluntary document issued by the Group according to GRI-G4 guidelines (1) to provide stakeholders a comprehensive picture
of the activities carried out, results achieved and commitments made in the economic, environmental and social spheres.
This appendix provides a methodology guide and additional economic, environmental and social indicators.
Unless otherwise specified or required by the context in which they are used:
n the terms “Fiat Group” or “Group” refer to all companies consolidated within Fiat S.p.A. for accounting purposes, (see subsidiaries consolidated in the Fiat S.p.A. Annual Report)
n the term “Chrysler Group” refers to all companies consolidated within Chrysler Group LLC for accounting purposes (see subsidiaries consolidated in the Fiat S.p.A. Annual Report)
n the term “Fiat Group excluding Chrysler Group” should be construed accordingly
n the term “company” refers to the entire Group unless when used with reference to a selection among the following entities: Fiat Group Automobiles (FGA), Chrysler Group, Ferrari,
Maserati, Comau, Magneti Marelli, Teksid, Fiat Services and other companies
n the term “operating segment” refers to the four segments established as of July 2011 and according to which the Group business is organized. They include: Mass-Market and Premium
Brands (previously reported as FGA, FGA Engines and Transmission and Chrysler Group); Luxury and Performance Brands (Ferrari and Maserati); Components and Production Systems
(Magneti Marelli, Teksid, Comau); others (firms operating in publishing, communications and services, and other companies)
n the term “operating region” refers to the distinct areas in which the operations of Mass-Market and Premium Brands are carried out, with the boundaries set according to the organizational
changes effective as of September 1, 2011. The operating regions are: EMEA (Europe, Russia, Middle East and Africa), NAFTA (US, Canada and Mexico), LATAM (South and Central
America) and APAC (Asia and Pacific countries)
n Unless otherwise indicated or required by the context, the information and data contained in this Sustainability Report relates to financial year 2013 (1 January 2013 to 31 December 2013)
and to all Fiat Group companies worldwide falling within the scope of consolidation at 31 December 2013.
In order to ensure that information is comparable and meaningful over time, some data was presented on a pro forma basis. In particular:
n with respect to year 2012 and 2013, data refers to all companies consolidated within Fiat S.p.A. for accounting purposes, for the full year (see subsidiaries consolidated in the Annual Report)
n with respect to year 2011, although Chrysler Group was consolidated in Fiat S.p.A. for accounting purposes as of June 2011, data includes Chrysler Group information for the full year
n with respect to year 2010, data was restated to include Chrysler Group and to exclude companies demerged into Fiat Industrial S.p.A.
The exclusion of any geographical area, Group company, or specific site from the scope of reporting is attributable to the inability to obtain data of satisfactory quality, or to its immateriality
in relation to the Group as a whole, as may be the case for newly-acquired entities or production activities that are not yet fully operational. In some cases, entities that are not consolidated
in the financial statements were included in the scope of reporting because of their significant environmental and social impacts. In particular:
n data on occupational health and safety reported in chapter 9 relates to 140 of the 159 plants (2) included in the Fiat S.p.A. Annual Report (covering approx. 98% of plant workers), (3) to office
facilities (in total covering approx. 100% of overall Group employees), and to four plants of companies that are not fully consolidated (including the Sevel and Tofas joint ventures)
n the Group’s environmental and energy performance reported in chapter 8 refers to 138 of the 159 plants (2) included in the Fiat S.p.A. Annual Report (covering over 98% of the Group’s
industrial revenues),(4) and to four plants of companies that are not fully consolidated (including the Sevel and Tofas joint ventures)
n performance indicators per unit of production reported in chapter 8 restated to make data comparable year over year.
The Global Reporting Initiative (GRI) is a multi-stakeholder process for the development and disclosure of Sustainability Reporting Guidelines. The GRI-G4 guidelines have been issued in May 2013. These guidelines offer an international reference for the
disclosure of governance approach and of the environmental, social and economic performances and impacts of the organizations.
Data was not considered material, and was thus not reported, for 2 plants dedicated to publishing and communication activities and 19 plants in start-up or closing phase.
(3)
Plant workers are defined as all employees located at a particular site, including workers assigned to manufacturing and other associated units (quality control, logistics, etc.), and to research and development.
(4)
Revenues attributable to activity of plants directly controlled by the Group.
(1)
(2)
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Appendix / Definitions, methodology and scope
Data was collected and reported with the aid of existing management control and information systems, where available, in order to ensure reliability of information flows and the correct
monitoring of sustainability performance.(5) A dedicated reporting process was established for certain indicators, using electronic databases or files populated directly by the individuals or
entities responsible for each aspect worldwide.
Quality of information
The quality of the information contained in the Sustainability Report is supported by compliance with the following principles:
n materiality: inclusion of all information deemed to be of interest to internal and external stakeholders due to its economic, environmental or social impact
n completeness: inclusion of all material topics and indicators
n balance: coverage of both positive and negative aspects of the Group’s performance
n comparability: ability to compare between time periods and with similar organizations
n accuracy: provision of adequate levels of detail
n reliability: reporting process subject to audit by an independent organization
n timeliness: Report presented together with the Fiat S.p.A. Annual Report at the Annual General Meeting of Fiat S.p.A.
n clarity: the language used addresses all stakeholders.
Preparation of the Sustainability Report is part of an annual reporting process subject to audit, analysis and approval by a number of individuals and entities. Fiat Group makes every effort to
ensure the accuracy of the sustainability information contained in this Report. From time to time, however, figures may be updated. The online interactive version of the Sustainability Report
will be considered the most current version and takes precedence over any previously printed version. The document is:
n prepared by the Fiat Group Sustainability teams that coordinates and engages Group operating segments and regions and relevant functions
n approved by the Group Executive Council, the highest decision making body headed by Fiat S.p.A.’s CEO, consisting of Chief Operating Officers of regions and companies of the Group
and various function heads
n examined by the Nominating, Corporate Governance and Sustainability Committee, a sub-committee of the Board of Directors of Fiat S.p.A.
n subject to an assurance audit by SGS Italia S.p.A.,(6) an independent certification body, in compliance with the Sustainability Reporting Assurance procedure (SRA), with the GRI-G4
guidelines, and with the AA1000 APS (2008) standard. SGS is officially authorized to conduct AA1000 assurance audits. In addition, as of this year, the Group’s sustainability management
system is aligned with the ISO 26000 Guidance on Social Responsibility standard, published in November 2010. The statement of assurance describing the activities carried out and the
expression of opinion is provided
n presented together with the Annual Report at the Annual General Meeting of Fiat S.p.A. to provide a complete, up to date overview of the Group’s financial, environmental and social performance
n published and freely available for download from the sustainability section of the Group website (www.fiatspa.com).
The 2012 Sustainability Report was made available at Fiat S.p.A.’s Annual General Meeting on 9 April 2013.
Please note that numbers may be subject to rounding.
The Chief Executive Officer of Fiat S.p.A. Sergio Marchionne is the Chairman of the Board of Directors of SGS S.A. Mr. Marchionne: his position does not include any executive responsibilities or powers and therefore this circumstance does not
influence SGS’ independence.
(5)
(6)
GRI-G4 9
Interactive
Appendix / Details by operating segments
Details by operating segments
EMEA
NAFTA
(€ million)
2013
17,420
(470)
979
Segment revenues
Trading profit/(loss)
Shipments (000s)
2012 (2)
17,800
(703)
1,012
2011(1)
19,591
(557)
1,166
2012
11,062
1,056
979
2011
10,562
1,356
910
LATAM
(€ million)
Segment revenues
Shipments (000s)
2013
45,777
2,220
2,238
2012 (2)
43,521
2,443
2,115
2013
4,621
358
163
2012
3,128
260
103
2013
1,659
171
890
2012 (3)
755
57
770
2011(1)
19,830
1,008
1,033
APAC
(€ million)
2013
9,973
619
950
Segment revenues
Shipments (000s)
(2)
(€ million)
(1)
Segment revenues
Shipments (000s)
2011(1)
1,513
88
53
Ferrari
Maserati
(€ million)
2013
2,335
364
2,787
Net revenues
Employees at year-end (no.)
2012 (3)
2,225
335
2,719
2011
2,251
312
2,695
(€ million)
Net revenues
2011
588
40
714
Magneti Marelli
(€ million)
Net revenues
Comau
2013
5,988
166
38,157
2012
5,828
141(4)
36,911
2011
5,860
181
34,804
(€ million)
Net revenues
Teksid
2013
1,463
48
13,481
2012
1,482
33 (4)
13,277
2011
1,402
10
14,457
(€ million)
Net revenues
Data includes Chrysler Group as of June 2011.
The figures previously reported for 2012 have been restated to reflect application of the amendment to IAS (International Accounting Standards) 19.
Ferrari and Maserati stand alone have been restated to reflect the allocation to Maserati of its activities in China conducted, from a legal entity standpoint, through the local Ferrari subsidiary.
(4) The figures previously reported for 2012 have been restated to reflect application of the amendment to IAS (International Accounting Standards) 19. Restatement resulted in total.
(1)
(2)
(3)
2013
688
(13)
8,754
2012
780
7,214
2011
922
26
7,865
211
Interactive
212
GRI-G4 EN3, EN5
Appendix / Details by operations / Energy
Details by operations (1)
Energy
Direct energy consumption by source
Luxury and
Performance Brands
Worldwide (GJ)
Components and
Production Systems
Fiat
Group
Assembly
and stamping
Engines and
transmissions
Casting
Others
Maserati
Ferrari
Magneti Marelli
Teksid
Comau
142
33
18
2
4
2
2
61
6
14
20,956,720
15,546,304
1,708,396
736,521
443,501
280,846
350,297
792,492
950,348
148,015
1,109,418
-
-
-
-
-
-
-
1,109,418
-
Diesel
79,234
6,854
-
-
-
280
-
4,692
66,223
1,185
LPG
44,942
126
-
-
-
-
-
43,261
-
1,554
117
-
-
-
-
-
-
117
-
-
22,190,431
15,553,284
1,708,396
736,521
443,501
281,126
350,297
840,562
2,125,988
150,755
2013
Plants
Non-renewable sources
Natural gas
Coal
Other (HS and LS fuel oil)
Total non-renewable sources
Renewable sources
Biomass
-
-
-
-
-
-
-
-
-
-
1,564
-
776
-
-
-
788
-
-
-
-
-
-
-
-
-
-
-
-
-
1,564
-
776
-
-
-
788
-
-
-
22,191,995
15,553,284
1,709,172
736,521
443,501
281,126
351,085
840,562
2,125,988
150,755
-
-
-
-
-
-
0.2%
-
-
-
144
30
21
2
4
1
2
64
6
14
18,277,833
13,373,813
1,651,551
627,024
407,370
20,278
305,303
766,481
1,031,840
94,173
1,183,307
-
-
-
-
-
-
-
1,183,307
-
Diesel
82,685
8,987
-
-
-
-
-
7,514
64,986
1,198
LPG
48,398
170
-
-
-
-
-
48,228
-
-
7,716
-
7,294
-
-
-
-
422
-
-
19,599,939
13,382,970
1,658,845
627,024
407,370
20,278
305,303
822,645
2,280,133
95,371
Photovoltaic
Solar-thermal
Total renewable sources
Total direct energy consumption
from renewable sources
2012
Plants
Natural gas
Coal
Renewable sources
Biomass
Photovoltaic
Solar-thermal
1
1
-
-
-
-
-
-
-
-
1,799
15
996
-
-
-
788
-
-
-
72
72
-
-
-
-
-
-
-
-
1,872
88
996
-
-
-
788
-
-
-
19,601,811
13,383,058
1,659,841
627,024
407,370
20,278
306,091
822,645
2,280,133
95,371
-
-
0.1%
-
-
-
0.3%
-
-
-
In this section, the absolute data relative to 2011 includes Chrysler Group for the full year. The data relative to 2010 has been restated to include Chrysler Group and to exclude companies demerged into CNH Industrial S.p.A. The per unit data has been
recalculated on the basis of the reporting scope applicable for 2013.
(1)
Direct energy consumption by source
Luxury and
Performance Brands
Worldwide (GJ)
Interactive
213
Components and
Production Systems
2011
Fiat
Group
Assembly
and stamping
Engines and
transmissions
Casting
Others
Maserati
Ferrari
Magneti Marelli
Teksid
Comau
Plants
150
31
22
2
4
1
2
69
6
13
19,253,359
14,139,905
1,781,796
630,813
303,890
21,957
309,293
851,221
1,126,947
87,537
1,410,386
-
-
-
-
-
-
-
1,410,386
-
100,187
16,239
-
-
-
-
-
5,800
77,228
920
LPG
58,832
58
-
-
-
-
-
57,338
-
1,436
47,876
49
46,510
-
-
-
-
1,317
-
-
20,870,640
14,156,251
1,828,306
630,813
303,890
21,957
309,293
915,676
2,614,561
89,893
Natural gas
Coal
Diesel
Renewable sources
Biomass
-
-
-
-
-
-
-
-
-
-
2,398
15
1,442
-
-
-
941
-
-
-
72
72
-
-
-
-
-
-
-
-
2,470
87
1,442
-
-
-
941
-
-
-
20,873,110
14,156,338
1,829,748
630,813
303,890
21,957
310,234
915,676
2,614,561
89,893
-
-
0.1%
-
-
-
0.3%
-
-
-
148
32
21
2
4
1
2
68
6
12
19,439,642
13,526,834
1,813,142
756,210
786,463
27,596
309,179
911,420
1,231,485
77,313
1,236,021
-
-
-
-
-
-
-
1,236,021
-
84,134
7,848
27
-
-
-
-
6,876
67,839
1,544
LPG
63,688
93
-
-
-
-
-
62,176
-
1,419
11,430
-
10,021
-
-
-
-
1,409
-
-
20,834,915
13,534,775
1,823,190
756,210
786,463
27,596
309,179
981,881
2,535,345
80,276
Photovoltaic
Solar-thermal
2010
Plants
Natural gas
Coal
Diesel
Renewable sources
Biomass
Photovoltaic
Solar-thermal
-
-
-
-
-
-
-
-
-
-
2,494
13
1,625
-
-
-
856
-
-
-
72
72
-
-
-
-
-
-
-
-
2,566
85
1,625
-
-
-
856
-
-
-
20,837,481
13,534,860
1,824,815
756,210
786,463
27,596
310,035
981,881
2,535,345
80,276
-
-
0.1%
-
-
-
0.3%
-
-
-
214
Interactive
Indirect energy consumption by source
2013
Plants
Luxury and
Performance Brands
Fiat Group worldwide (GJ)
Components and
Production Systems
Fiat
Group
Assembly
and stamping
Engines and
transmissions
Casting
Others
Maserati
Ferrari
Magneti Marelli
Teksid
Comau
142
33
18
2
4
2
2
61
6
14
108,008
Electricity
16,591,936
7,948,094
3,830,463
530,803
332,601
152,819
357,378
2,166,039
1,165,730
Renewable sources
4,678,890
1,843,169
835,678
-
-
7,200
101,925
695,909
1,181,261
13,748
Total electricity
21,270,826
9,791,263
4,666,141
530,803
332,601
160,019
459,303
2,861,949
2,346,991
121,757
4,035,758
3,174,584
381,320
-
-
111,922
-
128,349
239,583
5,223
-
-
-
-
-
-
5,219
4,040,981
3,174,584
381,320
-
-
111,922
-
133,567
239,583
4
818,530
619,038
145,104
-
-
3,049
-
51,340
-
-
-
-
-
-
-
-
-
-
-
-
818,530
619,038
145,104
-
-
3,049
-
51,340
-
-
26,130,337
13,584,885
5,192,565
530,803
332,601
274,990
459,303
3,046,856
2,586,574
121,761
17.9%
13.6%
16.1%
-
-
2.6%
22.2%
23.0%
45.7%
11.3%
144
30
21
2
4
1
2
64
6
14
16,039,936
7,679,072
3,831,059
481,737
359,755
18,736
324,605
2,156,054
1,074,426
114,492
4,479,791
1,648,348
669,728
-
-
7,200
128,236
708,546
1,304,119
13,614
20,519,727
9,327,420
4,500,787
481,737
359,755
25,936
452,841
2,864,600
2,378,544
128,106
4,649,668
3,866,666
417,829
-
-
-
194,405
128,918
41,850
4,675
-
-
-
-
-
-
4,671
4,654,343
3,866,666
417,829
-
-
-
-
199,076
128,918
41,854
916,072
649,325
213,605
-
-
-
53,142
-
-
-
-
-
-
-
-
916,072
649,325
213,605
-
-
-
-
53,142
-
-
26,090,142
13,843,411
5,132,220
481,737
359,755
25,936
452,841
3,116,818
2,507,463
169,960
17.2%
11.9%
13.0%
-
-
27.8%
28.3%
22.9%
52.0%
8.0%
Thermal energy
Renewable sources
Total thermal energy
4
Renewable sources
Total other energy sources
Total indirect energy consumption
2012
Plants
Electricity
Renewable sources
Total electricity
Thermal energy
Renewable sources
4
Renewable sources
Indirect energy consumption by source
Luxury and
Performance Brands
Fiat Group worldwide (GJ)
Interactive
215
Components and
Production Systems
2011
Fiat
Group
Assembly
and stamping
Engines and
transmissions
Casting
Others
Maserati
Ferrari
Magneti Marelli
Teksid
Comau
Plants
150
31
22
2
4
1
2
69
6
13
16,520,074
7,626,194
3,994,101
467,782
225,640
20,991
322,687
2,410,620
1,347,796
104,263
4,753,938
1,874,039
533,477
-
-
5,760
97,781
790,251
1,439,060
13,570
21,274,012
9,500,233
4,527,578
467,782
225,640
26,751
420,468
3,200,871
2,786,856
117,833
5,638,851
4,821,875
454,963
-
-
-
-
207,472
113,259
41,282
2
-
-
-
-
-
-
5,638,853
4,821,875
454,963
-
-
-
-
1,089,289
783,617
243,280
-
-
-
-
-
-
-
-
-
-
-
1,089,289
783,617
243,280
-
-
-
28,002,154
15,105,725
5,225,821
467,782
225,640
17.0%
12.4%
10.2%
-
148
32
21
16,914,769
7,705,719
4,267,238
1,684,888
21,182,007
Electricity
Renewable sources
Total electricity
Thermal energy
Renewable sources
-
2
207,472
113,259
41,284
62,392
-
-
62,392
-
-
26,751
420,468
3,470,735
2,900,115
159,117
-
21.5%
23.3%
22.8%
49.6%
8.5%
2
4
1
2
68
6
12
4,062,406
458,992
464,398
29,027
399,952
2,502,972
1,181,025
110,278
416,420
-
-
-
-
781,893
1,383,035
1,002
9,390,607
4,478,826
458,992
464,398
29,027
399,952
3,284,865
2,564,060
111,280
6,452,052
5,359,558
527,504
-
-
-
100,602
272,404
133,479
58,505
-
-
-
-
-
-
-
-
-
-
6,452,052
5,359,558
527,504
-
-
-
100,602
272,404
133,479
58,505
1,250,791
909,623
261,614
-
-
-
35,152
44,402
-
-
-
-
-
-
-
-
-
-
Renewable sources
-
2010
Plants
Electricity
Renewable sources
Thermal energy
Renewable sources
Renewable sources
1,250,791
909,623
261,614
-
-
-
35,152
44,402
-
-
28,884,850
15,659,788
5,267,944
458,992
464,398
29,027
535,706
3,601,671
2,697,539
169,785
14.8%
10.8%
-
-
-
-
-
21.7%
51.3%
0.6%
216
Interactive
Direct and indirect energy consumption
Luxury and
Performance Brands
Worldwide (GJ)
Components and
Production Systems
Fiat
Group
Assembly
and stamping
Engines and
transmissions
Casting
Others
Maserati
Ferrari
Magneti Marelli
Teksid
142
33
18
2
4
2
2
61
6
14
Electricity
21,272,390
9,791,263
4,666,917
530,803
332,601
160,019
460,091
2,861,949
2,346,991
121,757
Natural gas
20,956,720
15,546,304
1,708,396
736,521
443,501
280,846
350,297
792,492
950,348
148,015
Other fuels
1,233,711
6,980
-
-
-
280
-
48,070
1,175,641
2,739
4,859,511
3,793,622
526,424
-
-
114,971
-
184,907
239,583
4
48,322,332
29,138,169
6,901,737
1,267,324
776,102
556,116
810,388
3,887,418
4,712,563
272,515
9.7%
6.3%
12.1%
-
-
1.3%
12.7%
18.0%
25.1%
5.0%
2013
Plants
Comau
2012
144
30
21
2
4
1
2
64
6
14
Electricity
Plants
20,521,526
9,327,435
4,501,783
481,737
359,755
25,936
453,629
2,864,600
2,378,545
128,106
Natural gas
18,277,833
13,373,813
1,651,551
627,024
407,370
20,278
305,303
766,481
1,031,840
94,173
Other fuels
1,322,106
9,157
7,294
-
-
-
-
56,164
1,248,293
1,198
5,570,488
4,516,064
631,434
-
-
-
-
252,218
128,918
41,854
45,691,953
27,226,469
6,792,062
1,108,761
767,125
46,214
758,932
3,939,463
4,787,596
265,331
9.8%
6.1%
9.9%
-
-
15.6%
17.0%
18.1%
27.2%
5.1%
2011
150
31
22
2
4
1
2
69
6
13
Electricity
Plants
21,276,410
9,500,248
4,529,020
467,782
225,640
26,751
421,409
3,200,871
2,786,856
117,833
87,537
Natural gas
19,253,359
14,139,905
1,781,796
630,813
303,890
21,957
309,293
851,221
1,126,947
Other fuels
1,617,281
16,346
46,510
-
-
-
-
64,455
1,487,614
2,356
6,728,214
5,605,564
698,243
-
-
-
-
269,864
113,259
41,284
48,875,264
29,262,063
7,055,569
1,098,595
529,530
48,708
730,702
4,386,411
5,514,676
249,010
9.7%
6.4%
8.1%
-
-
11.8%
13.5%
18.0%
26.1%
5.5%
2010
Plants
148
32
21
2
4
1
2
68
6
12
Electricity
21,184,501
9,390,620
4,480,451
458,992
464,398
29,027
400,808
3,284,865
2,564,060
111,280
309,179
911,420
1,231,485
77,313
70,461
1,303,860
2,963
Natural gas
19,439,642
13,526,834
1,813,142
756,210
786,463
27,596
Other fuels
1,395,273
7,941
10,048
-
-
-
7,702,915
6,269,253
789,118
-
-
-
135,754
316,806
133,479
58,505
49,722,331
29,194,648
792,759
1,215,202
1,250,861
56,623
845,741
4,583,552
5,232,884
250,061
8.6%
5.8%
-
-
-
-
0.1%
17.1%
26.4%
0.4%
Interactive
Direct and indirect energy consumption per unit of production
Fiat Group Worldwide (GJ/unit of production)
FGA assembly and stamping
Chrysler assembly and stamping
Mass-Market and Premium Brand assembly
and stamping
FGA engines and transmissions (small engines)
FGA engines and transmissions (medium engines)
FGA engines and transmissions (large engines)
Chrysler engines and transmissions
Mass-Market and Premium Brand engines
and transmissions
Mass-Market and Premium Brand casting
Mass-Market and Premium Brand others
Maserati
Ferrari
Magneti Marelli
Teksid (cast iron)
Teksid (aluminum)
Comau
Targeted reduction
2020 vs 2010 (%)
-20%
-40%
Targeted reduction
2014 vs 2009 (1) (%)
-15%
-34%
2013
4.70
7.70
2012
4.80
7.47
2011
5.10
8.99
2010
5.26
10.81
2009
5.44
n.a.
2008
5.80
n.a.
Unit of
measurement
GJ/vehicle produced
GJ/vehicle produced
-30%
-14%
-21%
-29%
-40%
-18,3%
-15%
-15%
-15%
n.a.
6.35
0.625
0.409
0.739
1.040
6.19
0.637
0.415
0.855
1.110
6.86
0.642
0.388
0.928
1.250
7.40
0.696
0.454
1.029
1.500
n.a.
0.719
0.459
1.091
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
GJ/vehicle produced
GJ/unit produced
GJ/unit produced
GJ/unit produced
GJ/unit produced
n.a.
-40%
-40%
-3%
n.a.
-21%
-15%
-30%
n.a.
n.a.
n.a.
-8%
n.a.
-15%
-7%
-13%
-28%
0.80
7.84
0.22
0.171
0.139
0.131
9.29
41.79
0.0217
0.82
8.05
0.23
0.183
0.136
0.137
9.23
44.90
0.0222
0.79
8.41
0.30
0.186
0.128
0.146
8.89
47.23
0.0240
0.90
10.92
0.34
0.186
0.134
0.157
9.31
51.52
0.0278
n.a.
n.a.
n.a.
0.193
0.127
0.180
9.93
55.47
0.0331
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
7.15
62.08
0.0544
GJ/unit produced
GJ/unit produced
GJ/hour of production
GJ/ton produced
GJ/ton produced
As Chrysler Group LLC was formed in mid-year 2009, Chrysler Group- and Mass-Market and Premium Brands-specific targets utilize a 2010 baseline.
(1)
217
218
Interactive
GRI-G4 EN3, EN5
Appendix / Details by operations / CO2 emissions
CO2 emissions
Direct and indirect CO2 emissions
2013
Plants
Direct emissions
Indirect emissions
Total CO2 emissions
Luxury and
Performance Brands
Worldwide (tons)
Components and
Production Systems
Fiat
Group
Assembly
and stamping
Engines and
transmissions
Casting
Others
Maserati
Ferrari
Magneti Marelli
Teksid
142
33
18
2
4
2
2
61
6
14
1,198,185
796,895
87,833
36,685
22,136
15,776
19,652
47,545
163,173
8,490
2,980,135
1,573,897
739,064
82,891
45,232
26,145
48,432
299,201
151,968
13,305
4,178,320
2,370,792
826,897
119,576
67,368
41,921
68,084
346,746
315,141
21,795
Comau
2012
Plants
Direct emissions
144
30
21
2
4
1
2
64
6
14
1,069,047
687,031
85,535
31,247
20,325
1,138
17,128
46,628
174,643
5,372
Indirect emissions
2,896,163
1,524,271
750,386
74,410
46,893
1,975
43,991
302,949
133,434
17,854
Total CO2 emissions
3,965,210
2,211,302
835,921
105,657
67,218
3,113
61,119
349,577
308,077
23,226
2011
150
31
22
2
4
1
2
69
6
13
Direct emissions
Plants
1,149,552
730,055
94,874
31,429
15,271
1,232
17,351
51,903
202,367
5,070
Indirect emissions
3,046,515
1,607,349
756,353
75,838
43,720
2,262
43,731
334,358
166,123
16,781
Total CO2 emissions
4,196,067
2,337,404
851,227
107,267
58,991
3,494
61,082
386,261
368,490
21,851
2010
Plants
Direct emissions
148
32
21
2
4
1
2
68
6
12
1,139,407
698,630
99,530
37,730
33,369
1,548
17,345
55,673
191,041
4,541
Indirect emissions
3,243,395
1,704,153
802,304
72,652
71,547
3,213
62,138
350,656
157,254
19,478
Total CO2 emissions
4,382,802
2,402,783
901,834
110,382
104,916
4,761
79,483
406,329
348,295
24,019
Interactive
Direct and indirect CO2 emissions per unit of production
Fiat Group worldwide (Tons of CO2/unit of production)
Mass-Market and Premium Brand assembly
and stamping
FGA engines and transmissions (small engines)
FGA engines and transmissions (medium engines)
FGA engines and transmissions (large engines)
Mass-Market and Premium Brand engines
and transmissions
Maserati
Ferrari
Magneti Marelli
Teksid (cast iron)
Teksid (aluminum)
Comau
Targeted reduction
2020 vs 2010 (%)
-35%
-35%
Targeted reduction
2014 vs 2009 (1) (%)
-30%
-30%
2013
0.341
0.661
2012
0.360
0.644
2011
0.393
0.746
2010
0.433
0.897
2009
0.483
n.a.
2008
0.546
n.a.
-32%
-41%
-54%
-54%
-35%
-17%
-20%
-20%
-20%
n.a.
0.517
0.037
0.024
0.043
0.154
0.508
0.048
0.027
0.051
0.166
0.553
0.051
0.033
0.061
0.180
0.612
0.058
0.045
0.083
0.215
n.a.
0.062
0.050
0.085
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
-35%
-35%
-2.3%
n.a.
-24%
-15%
-40%
n.a.
n.a.
n.a.
-8%
n.a.
-15%
-19%
-13%
-33%
0.096
0.740
0.019
0.0129
0.021
0.0117
0.629
2.622
0.0017
0.101
0.767
0.020
0.0138
0.020
0.0121
0.597
2.813
0.0019
0.102
0.822
0.034
0.0141
0.022
0.0132
0.598
3.026
0.0021
0.114
0.992
0.030
0.0143
0.027
0.0145
0.623
3.350
0.0027
n.a.
n.a.
n.a.
0.0148
0.023
0.0167
0.733
3.688
0.0032
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
Unit of
measurement
tons of CO2/vehicle produced
tons of CO2/unit produced
tons of CO2/transmission+engine
tons of CO2/
transmission+engine
tons of CO2/ton produced
tons of CO2/hour of production
(1)
219
220
Interactive
Energy consumption from renewable sources
Mass-Market and Premium Brand assembly and stamping
FGA engines and transmissions
Mass-Market and Premium Brand engines and transmissions
Maserati
Ferrari
Magneti Marelli
Teksid
Comau
Average (all Companies)
Average without Chrysler Group scope
2013
18.5%
0.2%
6.3%
37.1%
12.1%
1.3%
12.7%
18.0%
25.1%
5.0%
9.7%
20.9%
2012
16.8%
6.1%
28.9%
9.9%
1.3%
17.0%
18.1%
27.2%
5.1%
9.8%
20.5%
2011
16.2%
6.4%
20.7%
8.1%
1.0%
13.4%
18.0%
26.1%
5.5%
9.7%
19.0%
2010
13.5%
5.8%
16.0%
5.9%
0.1%
17.1%
26.4%
0.4%
8.6%
16.4%
2009
7.2%
n.a.
n.a.
10.0%
n.a.
n.a.
n.a.
n.a.
0.1%
16.3%
24.2%
0.4%
11.7%
11.7%
GRI-G4 EN20, EN21
Appendix / Details by operations / Other emissions and impacts
Interactive
221
Other emissions and impacts
Presence of Ozone-Depleting Substances in equipments
Luxury and
Performance Brands
Worldwide (kg)
Components and
Production Systems
Fiat
Group
Assembly
and stamping
Engines and
transmissions
Casting
Others
Maserati
Ferrari
Magneti Marelli
Teksid
Comau
Plants
142
33
18
2
4
2
2
61
6
14
CFCs
1,250
1,094
85
13
20
-
-
38
-
-
HCFCs
77,459
65,661
2,614
928
2,157
20
2,012
3,571
42
454
Halons
56
-
-
22
-
-
-
34
-
-
-
-
-
-
-
-
-
-
-
-
2013
Methyl bromide
Other CFCs fully halogentated
Total
1
-
-
-
-
-
-
1
-
-
78,766
66,755
2,699
963
2,177
20
2,012
3,644
42
454
14
2012
Plants
144
30
21
2
4
1
2
64
6
CFCs
1,621
1,093
467
20
20
-
-
21
-
-
82,324
65,369
2,646
878
2,279
-
2,352
8,085
86
629
-
HCFCs (1)
Halons
162
-
-
22
-
-
-
140
-
Methyl bromide
-
-
-
-
-
-
-
-
-
-
1
-
-
-
-
-
-
1
-
-
84,108
66,462
3,113
920
2,299
-
2,352
8,247
86
629
Plants
150
31
22
2
4
1
2
69
6
13
CFCs
580
-
560
-
-
-
-
20
-
-
HCFCs
16,139
2,199
1,004
-
-
1
2,414
9,779
113
629
Halons
Total
2011
(2)
65
-
-
-
-
-
-
65
-
-
Methyl bromide
-
-
-
-
-
-
-
-
-
-
2
-
-
-
-
-
-
2
-
-
16,786
2,199
1,564
-
-
1
2,414
9,866
113
629
Plants
148
32
21
2
4
1
2
68
6
12
CFCs
581
-
561
n.a.
n.a.
-
n.a.
20
-
n.a.
HCFCs
16,657
4,766
1,215
n.a.
n.a.
38
n.a.
10,412
226
n.a.
Halons
102
-
-
n.a.
n.a.
-
n.a.
65
37
n.a.
Methyl bromide
-
-
-
n.a.
n.a.
-
n.a.
-
-
n.a.
2
-
-
n.a.
n.a.
-
n.a.
2
-
n.a.
17,342
4,766
1,776
n.a.
n.a.
38
n.a.
10,499
263
n.a.
Total
2010 (2)
Total
(1)
(2)
Data restated due to a miscalculation.
2010 and 2011 scope differ because Chrysler Group data was not available.
222
Interactive
Emission of Nitrogen Oxides (NOx)
Fiat Group Worldwide (tons)
Maserati
Ferrari
Magneti Marelli
Teksid
Comau
Total
2013
351
543
894
40
59
99
32
19
31
41
98
163
18
1,396
2012
304
467
771
41
58
99
27
18
2
36
96
176
11
1,235
2011
342
488
830
43
69
112
27
13
3
37
106
197
10
1,335
2010
352
457
809
46
69
115
33
29
3
37
114
202
9
1,349
2013
1
3
4
1
166
172
2012
2
3
5
5
5
2
177
189
2011
2
3
5
30
30
3
211
249
2010
2
3
5
7
7
4
185
200
Emissions of Sulfur Oxides (SOx)
Maserati
Ferrari
Magneti Marelli
Teksid
Comau
Total
Interactive
Emissions of Dust
Maserati
Ferrari
Magneti Marelli
Teksid
Comau
Total
2013
0.1
40.5
40.6
4.4
4.4
2.4
1.4
0.1
25.2
74.1
2012
0.2
34.8
35.0
4.3
4.3
2.0
1.3
0.1
26.8
69.6
2011
0.2
36.4
36.6
5.6
5.6
2.0
1.0
0.1
32.0
77.2
2010
0.2
34.1
34.3
5.2
5.2
2.4
2.1
0.1
28.0
72.1
223
Interactive
224
Emissions of Volatile Organic Compounds (VOC)
Fiat Group worldwide (g/m2)
FGA engines and transmissions (2)
Chrysler engines and transmissions (2)
Mass-Market and Premium Brand engines and transmissions (2)
Mass-Market and Premium Brand casting (2)
Mass-Market and Premium Brand others (2)
Maserati
Ferrari
Magneti Marelli
Teksid
Comau
Average VOC emissions
Target 2020
vs 2010 (%)
-20%
maintain
-25%
n.a.
n.a.
n.a.
n.a.
n.a.
-19%
n.a.
-10%
-68%
maintain
up to -68%
Target 2014
vs 2009 (1) (%)
-10%
maintain
-6%
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
-10%
-30%
-50%
maintain
up to -50%
2013
41.0
18.8
28.0
n.a.
n.a.
n.a.
n.a.
n.a.
55.3
35.1
45.2
50.5
12.6
28.5
2012
41.9
17.7
27.7
n.a.
n.a.
n.a.
n.a.
n.a.
55.3
36.3
40.3
135.4
12.6
28.2
2011
43.0
18.9
30.0
n.a.
n.a.
n.a.
n.a.
n.a.
55.3
30.8
45.5
186.2
12.7
30.8
FGA engines and transmissions, Chrysler engines and transmissions, Mass-Market and Premium Brand casting and Mass-Market and Premium Brand others are not equipped with paint shops.
(1)
(2)
2010
43.4
19.5
32.3
n.a.
n.a.
n.a.
n.a.
n.a.
55.3
35.1
45.5
198.5
14.1
33.1
2009
44.3
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
33.7
41.9
248.5
13.8
44.1
2008
47.1
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
34.9
37.6
299.0
112.4
46.6
2007
65.4
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
32.1
29.0
131.8
n.a.
64.0
GRI-G4 EN8, EN10, EN22
Appendix / Details by operations / Water
Interactive
225
Water
2013
Plants
Luxury and
Performance Brands
Worldwide (thousands of m3)
Components and
Production Systems
Fiat
Group
Assembly
and stamping
Engines and
transmissions
Casting
Others
Maserati
Ferrari
Magneti Marelli
Teksid
Comau
142
33
18
2
4
2
2
61
6
14
Withdrawal
Groundwater
Municipal water supply
Surface water
Other
6,219
2,383
688
178
9
222
543
669
1,482
44
17,589
11,998
2,848
115
162
98
131
1,568
606
62
1,113
419
-
-
-
-
-
339
355
-
16
13
3
-
-
-
-
1
-
-
24,936
14,812
3,539
293
171
320
674
2,577
2,443
106
4,586
1,328
1,149
-
-
-
-
82
2,027
-
10,352
7,011
1,269
126
84
95
423
913
357
76
Discharge
Surface water
Public sewer systems
Other destinations
1,258
674
458
13
-
-
24
89
-
-
16,196
9,012
2,876
139
84
95
447
1,084
2,384
76
144
30
21
2
4
1
2
64
6
14
2012
Plants
Withdrawal
Groundwater
6,494
2,598
802
152
-
3
471
673
1,748
47
18,219
12,414
2,905
87
201
13
147
1,657
724
71
1,124
417
1
-
-
-
-
315
391
-
37
20
-
-
-
-
-
17
-
-
25,874
15,449
3,708
239
201
16
618
2,662
2,863
118
Surface water
4,288
1,259
1,076
-
-
-
-
62
1,891
-
9,875
7,165
1,306
110
106
16
319
695
73
85
Surface water
Other
Discharge
Other destinations
3,158
954
373
-
-
-
-
1,460
371
-
17,321
9,378
2,755
110
106
16
319
2,217
2,335
85
226
Interactive
Luxury and
Performance Brands
Worldwide (thousands of m3)
2011
Fiat
Group
Plants
150
Assembly
and stamping
Engines and
transmissions
Casting
31
22
2
Others
4
Maserati
Components and
Production Systems
Ferrari
Magneti Marelli
Teksid
Comau
1
2
69
6
13
Withdrawal
Groundwater
Surface water
Other
8,287
3,245
1,356
165
-
3
433
704
2,328
53
20,225
13,990
3,115
80
135
13
105
1,830
888
69
1,250
515
-
-
-
-
-
307
428
-
100
16
1
-
-
-
-
83
-
-
29,862
17,766
4,472
245
135
16
538
2,924
3,644
122
4,888
1,047
1,536
-
-
-
-
114
2,191
-
11,368
8,092
1,399
122
126
15
178
1,282
70
84
Discharge
Surface water
Other destinations
2,583
1,439
542
-
-
-
-
174
428
-
18,839
10,578
3,477
122
126
15
178
1,570
2,689
84
148
32
21
2
4
1
2
68
6
12
2010
Plants
Withdrawal
Groundwater
10,113
3,606
1,880
142
-
2
367
996
3,062
58
22,838
16,026
3,138
89
401
13
93
2,123
877
77
1,144
541
-
-
-
-
-
250
353
-
103
-
-
-
-
-
-
103
-
-
34,198
20,173
5,019
231
401
15
460
3,472
4,292
135
Surface water
Other
Discharge
Surface water
Other destinations
5,423
1,603
1,684
-
-
-
-
306
1,830
-
13,042
8,945
1,930
118
348
15
123
1,416
135
12
3,900
1,962
342
-
-
-
-
387
1,209
-
22,365
12,510
3,956
118
348
15
123
2,109
3,174
12
Interactive
Water withdrawal per unit of production
Fiat Group worldwide (m3/unit of production)
Mass-Market and Premium Brand
assembly and stamping
engines and transmissions
Maserati
Ferrari
Magneti Marelli
Teksid (cast iron)
Teksid (aluminum)
Comau
Fiat Group
Targeted reduction
2020 vs 2010 (%)
-45%
-35%
Targeted reduction
2014 vs 2009 (1) (%)
-25%
-20%
2013
3.11
3.32
2012
3.45
3.42
2011
4.42
3.62
2010
5.24
4.53
2009
5.84
n.a.
2008
6.47
n.a.
2007
6.83
n.a.
Unit of
measurement
m3/vehicle produced
m3/vehicle produced
-40%
-59%
-35%
-19%
-10%
n.a.
3.23
0.48
0.35
3.44
0.49
0.40
4.06
0.64
0.42
4.97
0.76
0.50
n.a.
0.71
n.a.
n.a.
0.66
n.a.
n.a.
0.67
n.a.
m3/vehicle produced
m3/unit produced
m3/unit produced
-52%
-15%
-50%
-1%
n.a.
-50%
-11%
-77%
-50%
up to -77%
n.a.
n.a.
n.a.
-35%
n.a.
-40%
-30%
-40%
-40%
0.41
1.82
0.05
15.24
0.21
0.09
2.99
61.56
0.01
0.45
1.74
0.06
14.62
0.20
0.09
3.15
87.19
0.01
0.54
1.88
0.08
14.63
0.17
0.10
3.22
122.61
0.01
0.65
2.07
0.10
14.68
0.15
0.13
3.15
154.27
0.01
n.a.
n.a.
n.a.
3.60
0.13
0.20
4.48
160.54
0.02
n.a.
n.a.
n.a.
2.20
n.a.
0.11
3.74
135.52
0.07
n.a.
n.a.
n.a.
3.50
n.a.
0.09
6.63
0.05
m3/unit produced
m3/ton produced
3
m /hour of production
m3/vehicle produced
m3/hour of production
m3/hour of production
m3/ton produced
m3/ton produced
3
m /hour of production
(1)
227
Interactive
228
Water recyclind index
Luxury and
Performance Brands
%
Components and
Production Systems
Fiat
Group
Assembly
and stamping
Engines and
transmissions
Casting
Others
Maserati
Ferrari
Magneti Marelli
Teksid
Comau
2,155,551
1,377,112
590,564
113,760
10,271
14,717
674
36,876
11,471
106
2,130,615
1,362,299
587,016
113,467
10,109
14,397
-
34,299
9,028
-
24,936
14,812
3,548
293
162
320
674
2,577
2,443
106
98.8%
98.9%
99.4%
99.7%
98.4%
97.8%
-
93.0%
78.7%
-
2,064,747
1,343,717
540,438
121,821
10,310
16
618
38,106
9,599
121
2,038,873
1,328,268
536,730
121,582
10,109
-
-
35,444
6,736
3
25,874
15,449
3,708
239
201
16
618
2,662
2,863
118
98.7%
98.9%
99.3%
99.8%
98.1%
-
-
93.0%
70.2%
2.5%
122
2013
Recycling Index (%)
2012
Recycling Index (%)
2011
(1)
Recycling Index (%)
2010
476,390
407,403
16,034
n.c.
n.c.
16
538
39,227
13,051
455,598
396,893
12,995
n.c.
n.c.
-
-
36,303
9,406
1
20,793
10,510
3,039
n.c.
n.c.
16
538
2,924
3,645
121
95.6%
97.4%
81.0%
n.c.
n.c.
-
-
92.5%
72.1%
0.9%
374,011
306,200
17,293
n.c.
n.c.
15
460
45,253
4,655
135
349,135
293,184
13,807
n.c.
n.c.
-
-
41,781
363
-
24,876
13,016
3,486
n.c.
n.c.
15
460
3,472
4,292
135
93.3%
95.7%
79.8%
n.c.
n.c.
-
-
92.3%
7.8%
-
(1)
Recycling Index (%)
2010 and 2011 scope differ because Chrysler Group data was not available.
(1)
Interactive
BOD - COD - TSS
Biochemical Oxigen Demand (BOD) (1)
Fiat Group worldwide (maximum level under applicable
regulation = 100) percentage of the limit(2)
Chrysler casting
Chrysler others
Maserati
Ferrari
Magneti Marelli
Teksid
Comau
Biochemical Oxigen (BOD) (1)
Fiat Group worldwide (milligram/liter)
2013
16.4
12.1
15.5
n.a.
n.a.
n.a.
15.8
11.0
40.4
6.7
3.0
2012
25.0
20.0
25.0
n.a.
n.a.
n.a.
3.2
5.6
13.3
30.0
28.3
2011
32.1
24.1
50.4
n.a.
n.a.
n.a.
21.7
n.a.
60.8
35.3
21.4
2010
16.5
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
Chemical Oxigen Demand (COD) (1)
Chrysler casting
Chrysler others
Maserati
Ferrari
Magneti Marelli
Teksid
Comau
Chrysler casting
Chrysler others
Maserati
Ferrari
Magneti Marelli
Teksid
Comau
2013
23.5
n.a.
46.3
n.a.
n.a.
n.a.
42.9
20.0
68.4
27.8
20.2
2012
14.5
n.a.
3.6
n.a.
n.a.
n.a.
7.0
8.6
2.2
27.8
10.4
2011
10.8
n.a.
51.4
n.a.
n.a.
n.a.
43.9
n.a.
49.1
32.9
21.6
(2)
2012
27.8
40.0
42.3
n.a.
n.a.
n.a.
8.0
14.0
17.8
21.1
35.5
2011
53.8
48.3
18.3
n.a.
n.a.
n.a.
13.0
n.a.
97.9
23.2
388.5
2010
87.2
n.a.
27.2
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
2010
50.0
n.a.
45.0
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
Chrysler casting
Chrysler others
Maserati
Ferrari
Magneti Marelli
Teksid
Comau
2013
117.7
n.a.
201.9
n.a.
n.a.
n.a.
214.6
65.3
107.6
83.7
31.1
2012
89.8
n.a.
116.3
n.a.
n.a.
n.a.
35.0
43.0
48.6
61.8
89.3
2011
25.9
n.a.
38.4
n.a.
n.a.
n.a.
79.0
n.a.
254.4
43.6
1,104.1
2010
89.6
n.a.
53.1
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
2013
35.4
23.5
64.3
n.a.
n.a.
n.a.
39.4
15.9
15.0
17.9
15.6
2012
29.3
26.0
36.7
n.a.
n.a.
n.a.
8.0
12.0
28.3
14.6
28.8
2011
50.5
47.5
8.0
n.a.
n.a.
n.a.
36.7
n.a.
55.9
21.0
296.6
2010
94.9
n.a.
19.1
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
Total Suspended Solids (TSS) (1)
2013
12.8
11.8
31.6
n.a.
n.a.
n.a.
19.7
12.0
35.0
8.6
24.8
2012
30.0
13.0
36.0
n.a.
n.a.
n.a.
4.0
6.0
3.0
8.6
36.0
2011
45.2
23.7
52.0
n.a.
n.a.
n.a.
36.7
n.a.
72.0
27.7
17.0
Figures take into account worst level registered for all plants in each company.
Numbers may differ from last year as calculation was reviewed to align all different companies worldwide.
(1)
2013
42.2
24.2
36.5
n.a.
n.a.
n.a.
10.0
12.3
38.0
31.8
19.4
Chemical Oxigen Demand (COD) (1)
Total Suspended Solids (TSS) (1)
Chrysler casting
Chrysler others
Maserati
Ferrari
Magneti Marelli
Teksid
Comau
2010
48.3
n.a.
50.0
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
Chrysler casting
Chrysler others
Maserati
Ferrari
Magneti Marelli
Teksid
Comau
229
Interactive
230
Heavy metals in water discharged
Cadmium (Cd) (1)
Fiat Group worldwide (maximum level under applicable regulation = 100)
percentage of the limit(2)
FGA Assembly and Stamping
Chrysler Assembly and Stamping
FGA Engines and Transmissions
Chrysler Engines and Transmissions
Chrysler casting
Chrysler others
Maserati
Ferrari
Magneti Marelli
Teksid
Comau
Cadmium (Cd) (1)
2013
6.8
18.7
0.7
n.a.
n.a.
n.a.
9.9
5.0
3.0
15.0
n.a.
2012
20.0
42.9
15.0
n.a.
n.a.
n.a.
10.0
5.0
25.0
15.0
n.a.
Copper (Cu) (1)
Chrysler casting
Chrysler others
Maserati
Ferrari
Magneti Marelli
Teksid
Comau
(2)
2013
0.1
n.a.
n.a.
n.a.
n.a.
2012
2.5
n.a.
n.a.
n.a.
n.a.
2013
0.3
n.a.
n.a.
n.a.
0.2
0.1
n.a.
2012
1.5
n.a.
n.a.
n.a.
0.2
n.a.
Copper (Cu) (1)
2013
4.0
4.2
1.8
n.a.
n.a.
n.a.
51.6
2.0
25.0
28.0
n.a.
(1)
Chrysler casting
Chrysler others
Maserati
Ferrari
Magneti Marelli
Teksid
Comau
2012
28.0
40.0
21.0
n.a.
n.a.
n.a.
50.0
2.0
51.0
20.0
n.a.
Chrysler casting
Chrysler others
Maserati
Ferrari
Magneti Marelli
Teksid
Comau
Lead (Pb) (1)
Chrysler casting
Chrysler others
Maserati
Ferrari
Magneti Marelli
Teksid
Comau
Lead (Pb) (1)
2013
7.6
20.0
5.2
n.a.
n.a.
n.a.
4.0
3.0
9.7
25.0
n.a.
2012
25.0
40.0
25.0
n.a.
n.a.
n.a.
3.3
3.3
28.0
25.0
n.a.
Nickel (Ni) (1)
Chrysler casting
Chrysler others
Maserati
Ferrari
Magneti Marelli
Teksid
Comau
Chrysler casting
Chrysler others
Maserati
Ferrari
Magneti Marelli
Teksid
Comau
2013
14.2
6.2
8.4
n.a.
n.a.
n.a.
21.4
4.0
10.4
5.0
n.a.
(2)
2013
0.2
n.a.
n.a.
n.a.
n.a.
2012
1.5
0.1
n.a.
n.a.
n.a.
n.a.
2012
50.0
37.5
24.1
n.a.
n.a.
n.a.
22.0
4.8
33.3
5.0
n.a.
Chrysler casting
Chrysler others
Maserati
Ferrari
Magneti Marelli
Teksid
Comau
2013
0.4
0.3
0.3
n.a.
n.a.
n.a.
0.9
0.1
n.a.
2012
0.5
3.5
0.1
n.a.
n.a.
n.a.
0.9
0.2
0.4
0.1
n.a.
2013
0.5
0.3
0.5
n.a.
n.a.
n.a.
0.8
0.1
0.1
0.2
n.a.
2012
0.1
4.5
0.3
n.a.
n.a.
n.a.
0.8
0.5
0.1
0.7
n.a.
Zinc (Zn) (1)
2013
23.9
1.4
15.6
n.a.
n.a.
n.a.
76.7
15.0
21.0
48.0
n.a.
(1)
Chrysler casting
Chrysler others
Maserati
Ferrari
Magneti Marelli
Teksid
Comau
Nickel (Ni) (1)
Zinc (Zn) (1)
Interactive
2012
21.2
33.3
50.4
n.a.
n.a.
n.a.
76.0
45.0
10.9
80.0
n.a.
Chrysler casting
Chrysler others
Maserati
Ferrari
Magneti Marelli
Teksid
Comau
231
232
Interactive
GRI-G4 EN23, EN25
Appendix / Details by operations / Waste
Waste
Waste generation and management
Luxury and
Performance Brands
Worldwide (tons)
Components and
Production Systems
Fiat
Group
Assembly
and stamping
Engines and
transmissions
Casting
Others
Maserati
Ferrari
Magneti Marelli
Teksid
Comau
142
33
18
2
4
2
2
61
6
14
1,770,029
942,887
145,877
45,574
14,065
2,635
8,224
53,620
554,213
2,933
39,069
16,289
6,543
-
-
270
3,003
8,877
3,629
458
1,809,098
121,837
959,176
96,699
152,421
8,488
45,574
8
14,065
1,379
2,905
2,545
11,227
1,043
62,497
10,196
557,842
1,026
3,391
453
23,750
18,762
1,871
340
-
-
-
613
1,863
301
Treatment
31,055
3,602
11,455
6
-
246
6,052
7,400
1,962
331
2013
Plants
Waste generated
Non-hazardous waste
Hazardous waste
of which packaging
Waste disposed
Sent to landfill
438,741
12,050
2,071
123
752
-
-
2,952
420,574
219
493,546
34,414
15,397
469
752
246
6,052
10,965
424,399
851
1,315,552
72.7%
24.3%
924,762
96.4%
1.3%
137,023
89.9%
1.4%
45,105
99.0%
0.3%
13,313
94.7%
5.3%
2,659
91.5%
-
5,175
46.1%
-
51,532
82.5%
4.7%
133,443
23.9%
75.4%
2,540
74.9%
6.5%
144
30
21
2
4
1
2
64
6
14
1,720,410
904,062
140,340
31,661
14,887
419
7,817
70,293
547,686
3,245
40,327
17,010
6,786
-
25
25
3,687
8,988
3,382
424
1,760,737
75,332
921,072
52,053
147,126
9,255
31,661
6
14,912
383
444
321
11,504
807
79,281
11,294
551,068
779
3,669
434
Waste recovered
waste recovered
waste sent to landfill
2012
Plants
Waste generated
Non-hazardous waste
Hazardous waste
of which packaging
Waste disposed
19,950
14,144
1,251
298
-
-
1
2,296
1,709
251
Treatment
31,219
10,303
5,309
1
38
48
7,532
6,461
1,210
317
Sent to landfill
438,345
10,270
2,614
-
827
-
124
6,322
417,574
614
489,514
34,717
9,174
299
865
48
7,657
15,079
420,493
1,182
1,271,223
72.2%
24.9%
886,355
96.2%
1.1%
137,952
93.8%
1.8%
31,362
99.1%
-
14,047
94.2%
5.5%
396
89.2%
-
3,847
33.4%
1.1%
64,202
81%
8%
130,575
23.7%
75.8%
2,487
67.8%
16.7%
Waste recovered
waste recovered
Waste generation and management
Luxury and
Performance Brands
Worldwide (tons)
Interactive
Components and
Production Systems
2011
Fiat
Group
Assembly
and stamping
Engines and
transmissions
Casting
Others
Maserati
Ferrari
Magneti Marelli
Teksid
Comau
Plants
150
31
22
2
4
1
2
69
6
13
1,804,698
878,543
124,564
34,987
12,602
416
8,274
81,091
661,151
3,070
50,614
19,451
10,590
-
-
26
3,020
10,885
5,993
649
1,855,312
97,099
897,994
69,875
135,154
10,191
34,987
12
12,602
309
442
323
11,294
757
91,976
13,222
667,144
1,887
3,719
523
23,336
16,509
2,165
258
-
-
-
2,544
1,833
27
Treatment
37,489
8,867
10,209
-
-
52
7,941
7,956
1,969
495
Waste generated
Non-hazardous waste
Hazardous waste
of which packaging
Waste disposed
Sent to landfill
547,056
14,423
5,535
184
521
-
129
8,999
516,474
791
607,881
39,799
17,909
442
521
52
8,070
19,499
520,276
1,313
1,247,431
67.2%
29.5%
858,195
95.6%
1.6%
117,246
86.8%
4.1%
34,545
98.7%
0.5%
12,080
95.9%
4.1%
390
88.2%
-
3,224
28.5%
1.1%
72,477
78.8%
9.8%
146,868
22%
77.4%
2,406
64.7%
21.3%
148
32
21
2
4
1
2
68
6
12
1,650,257
823,352
138,817
18,011
6,938
567
5,660
81,000
572,804
3,108
61,754
29,076
14,845
-
2
61
3,316
10,563
3,225
666
1,712,011
90,982
852,428
63,650
153,662
10,575
18,011
5
6,940
191
628
422
8,976
744
91,563
14,148
576,029
750
3,774
497
Waste recovered
waste recovered
2010
Plants
Waste generated
Non-hazardous waste
Hazardous waste
of which packaging
Waste disposed
21,609
17,531
1,228
-
-
-
-
1,818
1,019
13
Treatment
43,936
11,040
18,327
-
44
97
6,076
6,446
1,177
729
Sent to landfill
515,434
37,756
5,408
196
428
-
135
9,495
461,460
556
580,979
66,327
24,963
196
472
97
6,211
17,759
463,656
1,298
1,131,032
66.1%
30.1%
786,101
92.2%
4.4%
128,698
83.8%
3.5%
17,815
98.9%
1.1%
6,468
93.2%
6.2%
531
84.7%
-
2,765
30.8%
1.5%
73,804
80.6%
10.4%
112,373
19.5%
80.1%
2,476
65.6%
14.7%
Waste recovered
waste recovered
233
Interactive
234
Waste generated per unit of production
Fiat Group worldwide (kg/unit of production)
Maserati
Ferrari
Magneti Marelli
Teksid (cast iron)
Teksid (aluminum)
Comau
Fiat Group
Targeted reduction
2020 vs 2010 (%)
-15%
-10%
Targeted reduction
2014 vs 2009 (1) (%)
-6%
-15%
2013
198.7
217.5
2012
200.6
215.7
2011
200.9
219.9
2010
212.8
218.5
2009
199.1
n.a.
2008
229.2
n.a.
2007
226.8
n.a.
Unit of
measurement
kg/vehicle produced
kg/vehicle produced
-14%
-33%
-20%
n.a.
-10%
n.a.
209.0
14.7
21.1
208.5
14.9
24.7
209.5
16.6
27.0
215.0
18.5
24.7
n.a.
20.3
n.a.
n.a.
21.3
n.a.
n.a.
22.6
n.a.
kg/vehicle produced
kg/unit produced
kg/unit produced
-21.1%
n.a.
n.a.
-5%
n.a.
-30%
-8%
-12%
-34%
up to -34%
n.a.
n.a.
n.a.
-20%
-10%
-10%
-10%
-8%
-20%
17.7
282.1
4.0
138.2
3.5
2.1
1,307.0
432.0
0.3
17.8
234.1
3.5
137.9
3.7
2.7
1,245.0
429.0
0.3
16.2
276.2
7.3
137.9
3.7
3.1
1,249.7
476.5
0.3
19.9
179.0
2.4
147.2
3.0
3.2
1,250.0
450.0
0.4
n.a.
n.a.
n.a.
128.9
3.2
4.0
1,119.0
472.0
0.5
n.a.
n.a.
n.a.
107.0
3.5
2.4
1,229.0
539.0
0.7
n.a.
n.a.
n.a.
114.0
4.1
2.5
1.018.0
n.a.
0.6
kg/unit produced
kg/ton produced
kg/hour of production
kg/vehicle produced
kg/ton produced
kg/ton produced
(1)
Interactive
Hazardous waste generated per unit of production
Fiat Group worldwide (kg/unit of production)
Maserati
Ferrari
Magneti Marelli
Teksid (cast iron)
Teksid (aluminum)
Comau
Fiat Group
Targeted reduction
2020 vs 2010 (%)
-48%
-65%
Targeted reduction
2014 vs 2009 (1) (%)
-10%
-
2013
6.4
1.2
2012
6.4
1.5
2011
6.9
1.7
2010
10.0
2.8
2009
7.6
n.a.
2008
7.5
n.a.
2007
8.0
n.a.
Unit of
measurement
kg/vehicle produced
kg/vehicle produced
-26%
-74%
-50%
-28%
-30%
n.a.
3.5
1.4
0.2
3.9
1.3
0.4
4.5
2.0
0.4
7.0
3.1
0.3
n.a.
3.3
n.a.
n.a.
3.5
n.a.
n.a.
3.6
n.a.
kg/vehicle produced
kg/unit produced
kg/unit produced
-75%
-3%
n.a.
-30%
-17%
-17%
-57%
up to -74%
n.a.
n.a.
n.a.
n.a.
-10%
-10%
-10%
-6%
-15%
0.8
12.8
0.9
0.3
5.3
72.4
0.1
0.8
12.5
1.2
0.3
5.3
61.9
0.1
1.3
12.5
1.0
0.4
9.9
48.8
0.1
1.9
14.2
1.1
0.4
5.8
32.7
0.1
n.a.
n.a.
n.a.
12.1
1.2
0.5
6.1
37.2
0.1
n.a.
n.a.
n.a.
5.6
1.1
0.3
4.6
82.7
0.2
n.a.
n.a.
n.a.
3.5
0.8
0.3
7.6
n.a.
0.1
kg/unit produced
kg/ton produced
kg/vehicle produced
kg/ton produced
kg/ton produced
(1)
235
236
Interactive
Recovery of waste
Fiat Group worldwide (% waste recovered out of waste generated)
Maserati
Ferrari
Magneti Marelli
Teksid
Comau
Fiat Group
Target 2020
97%
95%
97%
98%
90%
96%
95%
95%
91%
50%
90%
28%
95%
up to 98%
Target 2014
95%
95%
95%
85%
n.a.
n.a.
n.a.
n.a.
90%
35%
90%
26%
90%
2013
96.4%
96.4%
96.4%
95.6%
86.1%
89.9%
99.0%
94.6%
91.5%
46.0%
82.5%
23.9%
74.9%
2012
95.9%
96.5%
96.2%
94.0%
92.4%
93.8%
98.8%
96.9%
89.2%
33.4%
81.0%
23.7%
67.8%
2011
95.3%
95.9%
95.6%
89.4%
92.3%
86.8%
98.4%
95.9%
88.2%
28.5%
78.8%
22.0%
64.7%
2010
90.4%
94.9%
92.2%
82.5%
89.5%
83.8%
96.0%
92.3%
84.7%
30.8%
80.6%
19.5%
65.6%
2009
90.3%
n.a.
n.a.
82.2%
n.a.
n.a.
n.a.
n.a.
85.3%
32.7%
70.7%
23.3%
63.9%
2008
90.5%
n.a.
n.a.
81.3%
n.a.
n.a.
n.a.
n.a.
78.1%
38.8%
74.4%
31.3%
62.1%
2007
86.8%
n.a.
n.a.
81.5%
n.a.
n.a.
n.a.
n.a.
67.3%
51%
72.3%
39.4%
65.7%
Target 2020
0%
2%
1%
0%
2%
1%
2%
2%
0%
0%
3%
70%
0%
up to 0%
Target 2014
0%
4.4%
1.8%
0%
n.a.
n.a.
n.a.
n.a.
0%
1.5%
9%
80%
10%
2013
0%
2.2%
1.3%
0%
2.2%
1.4%
0.3%
5.3%
0%
0%
4.7%
75.4%
6.5%
2012
0.1%
1.9%
1.1%
0%
4.1%
1.8%
0.2%
3.0%
0%
1.1%
8.0%
75.8%
16.7%
2011
0.2%
3.1%
1.6%
0.1%
5.0%
4.1%
0.9%
4.1%
0%
1.1%
9.8%
77.4%
21.3%
2010
4.4%
4.4%
4.4%
0.5%
5.6%
3.5%
4.0%
6.9%
0%
1.5%
10.4%
80.1%
14.7%
2009
4.4%
n.a.
n.a.
0.1%
n.a.
n.a.
n.a.
n.a.
0%
6.8%
13.1%
75.9%
23.5%
2008
4.5%
n.a.
n.a.
2.4%
n.a.
n.a.
n.a.
n.a.
9.2%
6.8%
14.4%
75.7%
16.7%
2007
8.3%
n.a.
n.a.
1.4%
n.a.
n.a.
n.a.
n.a.
10.1%
7.8%
16.3%
72.3%
3.0%
Waste in landfill
Worldwide (% waste in landfill out of waste generated)
Maserati
Ferrari
Magneti Marelli
Teksid
Comau
Fiat Group
GRI-G4 10, 13
Appendix / Details by workforce / Employees in numbers
Interactive
Details by workforce
Employees in numbers(1)
Workforce gender distribution by geographic area
Workforce gender distribution by category (2)
2013
Europe
North America
Latin America
Asia
Rest of world
Total
2013
2012
workforce by
geographic area
(no.)
%
men
%
women
workforce by
geographic
area (no.)
89,030
81,365
48,306
6,699
187
225,587
78.4
77.6
90.4
70.2
72.7
80.4
21.6
22.4
9.6
29.8
27.3
19.6
88,625
73,713
46,949
5,360
189
214,836
%
men
%
women
78.4
78.0
91.2
70.3
72.5
80.8
21.6
22.0
8.8
29.7
27.5
19.2
Manager
Professional
Salaried
Hourly
Total
2012
workforce by
category (no.)
%
men
%
women
workforce by
category (no.)
%
men
%
women
2,409
31,302
33,047
158,829
225,587
86.9
81.7
71.1
82.0
80.4
13.1
18.3
28.9
18.0
19.6
2,302
29,051
30,670
152,813
214,836
86.9
81.8
70.9
82.6
80.8
13.1
18.2
29.1
17.4
19.2
Workforce by geographic area and category
2013
2013
Europe
North America
Latin America
Asia
Rest of world
Total
2012
Total
Hourly
Salaried
Professional
Manager
Total
Hourly
Salaried
Professional
Manager
89,030
81,365
48,306
6,699
187
57,137
60,145
38,826
2,696
25
14,857
9,014
6,242
2,905
29
15,857
11,151
3,085
1,078
131
1,179
1,055
153
20
2
88,625
73,713
46,949
5,360
189
57,576
54,356
38,695
2,161
25
14,526
8,406
5,309
2,364
65
15,392
9,959
2,794
809
97
1,131
992
151
26
2
225,587
158,829
33,047
31,302
2,409
214,836
152,813
30,670
29,051
2,302
Workforce gender distribution by operating segment
2013
of which Fiat Group Automobiles(3)
of which Chrysler Group
of which Ferrari
of which Maserati
of which Magneti Marelli
of which Comau
of which Teksid
Others (4)
Total
2012
workforce by
operating segment (no.)
%
men
%
women
workforce by
operating segment (no.)
%
men
%
women
154,074
77,786
76,288
3,677
2,787
890
59,082
38,157
13,481
7,444
8,754
225,587
82.0
85.9
78.0
87.5
89.5
81.1
79.9
72.6
92.1
94.7
53.3
80.4
18.0
14.1
22.0
12.5
10.5
18.9
20.1
27.4
7.9
5.3
46.7
19.6
145,372
77,259
68,113
3,489
2,719
770
57,402
36,911
13,277
7,214
8,573
214,836
82.7
86.1
78.9
87.8
89.4
81.9
79.6
71.8
92.9
95.0
54.2
80.8
17.3
13.9
21.1
12.2
10.6
18.1
20.4
28.2
7.1
5.0
45.8
19.2
Unless otherwise specified, workforce data is calculated as of year-end.
Employees are divided into four main categories: hourly, salaried, professional and manager. Professional encompasses all individuals that perform specialized and managerial roles (including “professional” and “professional expert” under the
Fiat S.p.A. classification system and “mid-level professional” and “senior professional” under the Chrysler Group classification). Manager refers to individuals in senior management roles (including those identified as “professional masters,”
“professional seniors” and “executives” under the Fiat S.p.A. classification system, and “senior managers” and above under the Chrysler Group classification).
(3) As of January 2013, Fiat Powertrain is included in FGA: 2012 and 2011 data restated accordingly, in order to ensure data comparability from year to year.
(4)
Others includes companies operating in publishing, communications and services and other companies.
(1)
(2)
237
Interactive
238
GRI-G4 10, 13, EC6
Appendix / Details by workforce / Employees in numbers
Employees by country
Nationality of managers
2013
27.7
2012
28.8
United States
24.4
22.3
Brazil
Italy
2013
Italian
managers (no.)
% of total managers
1,005
41.7
American
915
38.0
Brazilian
18.5
18.9
116
4.8
Mexico
6.7
6.8
French
66
2.8
Canada
4.9
5.2
German
44
1.8
Poland
4.0
4.8
Polish
23
1.0
Argentina
2.4
2.5
Other nationalities
240
9.9
Total (no.)
Serbia
1.8
1.5
Germany
1.2
1.3
France
1.2
1.2
Spain
0.6
0.6
Venezuela
0.5
0.5
Other countries
6.1
5.6
225,587
214,836
Total (no.)
Workforce by nationality minority group
2,409
Managers of local nationality by geographic area
2013
91
Europe
North America
100
Latin America
85
Asia
81
Rest of world
50
Workforce by principal ethnic origin(2)
2013
6,076
Employees belonging to a nationaly minority group (1) (no.)
Fiat Group North America (%)
2013
58.8
Caucasian
of which men (%)
77.2
Hispanic
20.7
of which women (%)
22.8
African American
18.2
2.7
American Indian
0.2
Other
2.1
over total workforce (2) (%)
Workforce gender distribution by contract and employment type
2013
Unlimited-term
Total
Fixed-term
% men
77.1
% women
18.5
Part-time
% women
% men
8.3
91.7
79.5
North America
33.3
66.7
Latin America
33.3
Asia
Rest of world
(2)
% women
1.1
Part-time
% women
Full-time
% men
% women
% men
% women
20.5
62.5
37.5
68.6
31.4
77.6
22.4
54.0
46.0
94.4
5.6
66.7
90.5
9.5
100.0
-
91.1
8.9
50.0
50.0
69.5
30.5
100.0
-
72.7
27.3
-
-
72.7
27.3
-
-
-
-
Minority group reported in the table consists of employees with nationality different from country of work (data calculated as of 31 October 2013).
Workforce calculated as of 31 October 2013.
(1)
% men
3.3
Full-time
% men
Europe
GRI-G4 LA1, LA11
Appendix / Details by workforce / Employee turnover
Workforce gender distribution by length of service
90,413
77.7
6 to 10 years
28,797
11 to 20 years
59,228
21 to 30 years
34,714
Over 30 years
12,435
Up to 5 years
2012
%
men
Total
Workforce gender distribution by age
2013
workforce
by length of
service (no.)
Interactive
workforce
% by length of service
women
(no.)
%
men
%
women
20.6
2012
workforce
by age (no.)
%
men
Up to 30 years
45,024
31 to 40 years
61,631
15.2
41 to 50 years
24.7
Over 50 years
22.3
84,542
79.4
82.8
17.2
22,883
81.3
18.7
81.4
18.6
60,730
81.7
18.3
85.8
14.2
33,324
84.8
74.8
25.2
13,357
75.3
Total
214,836
225,587
2013
%
women
workforce
by age (no.)
80.4
19.6
43,508
81.4
18.6
79.6
20.4
60,089
80.0
20.0
66,554
81.2
18.8
64,081
81.6
18.4
52,378
80.5
19.5
47,158
80.4
19.6
%
men
%
women
214,836
225,587
Workforce gender distribution by level of education
2013
workforce by
education (no.)
2012
%
men
%
women
workforce by
education (no.)
%
men
%
women
52,202
76.1
23.9
47,161
76.6
23.4
100,369
82.7
17.3
91,933
83.6
16.4
Elementary/middle school
56,671
81.4
18.6
55,093
81.3
18.7
Not tracked (2)
16,345
76.9
23.1
20,649
77.1
22.9
University degree or equivalent
(1)
High school
Total
214,836
225,587
Talent attraction
Individual performance appraisal (PLM, PBF) by gender(4)
2013
1,810
2012
1,816
Traineeships (no.)
2,765
2,540
Scholarships (3) (no.)
2,686
2,982
1.9
2.5
New graduates recruited (no.)
Scholarships (E million)
Men
Women
2013
84
2012
80
71
63
Employee turnover
Geographic area (5)
Europe
88,625
North America
73,713
Latin America
46,949
New Hires
5,640
New Hires
16,233
New Hires
9,649
Departures
(6,533)
Departures
(8,567)
Departures
(8,977)
1,298
89,030
Asia
5,360
Rest of world
New Hires
2,696
New Hires
Departures
(1,436)
Departures
(4)
(5)
(1)
(2)
(3)
79
6,699
(14)
81,365
189
27
(29)
0
187
Total worldwide
685
48,306
214,836
New Hires
34,245
Departures
(25,542)
2,048
225,587
Calculation subject to approximation resulting from the comparison of academic qualifications among different countries.
Cases for which it is not possible to report level of education as the data is not always tracked in Group information systems, particularly with reference to hourly employees.
Includes scholarships granted within the corporate program.
Calculated over eligible employees.
The geographic areas were redefined in 2012 and 2011 data restated accordingly, in order to ensure data comparability from year to year. For this reason, employee breakdown by geographic area at year-end is not comparable with data reported in
the 2011 Sustainability Report.
239
Interactive
240
GRI-G4 LA1
Appendix / Details by workforce / Employee turnover
Category
Hourly
152,813
Salaried
30,670
Professional
29,051
Manager
2,302
New Hires
24,989
New Hires
6,662
New Hires
2,503
New Hires
91
Departures
(20,432)
Departures
(4,739)
Departures
(366)
Departures
(5)
Hourly at 31 Dec 2013
1,459
158,829
535
Salaried at 31 Dec 2013
33,128
33
Professionals at 31 Dec 2013
31,221
Managers at 31 Dec 2013
21
2,409
Category and geographic area
Hourly Europe
57,576
Hourly North America
54,356
Hourly Latin America
New Hires
3,307
New Hires
12,192
New Hires
Departures
(4,654)
Departures
(6,420)
Departures
908
57,137
17
60,145
38,695
8,170
(8,573)
534
38,826
Hourly worldwide
152,813
Hourly Asia
2,161
Hourly Rest of world
New Hires
1,320
New Hires
0
New Hires
24,989
Departures
(785)
Departures
0
Departures
(20,432)
0
0
2,696
25
25
1,459
158,829
Age group (1)
Up to 30 years
43,508
31 to 40 years
60,089
41 to 50 years
New Hires
19,327
New Hires
10,130
New Hires
Departures
(9,657)
Departures
(8,314)
Departures
928
54,106
127
62,032
64,081
3,323
(3,266)
543
64,681
Over 50 years
New Hires
Departures
47,158
1,465
(4,305)
450
44,768
Gender
Men
173,689
Women
41,147
New Hires
26,228
New Hires
8,017
Departures
(20,224)
Departures
(5,318)
Men employees at 31 Dec 2013
Turnover by age does not cover employees that changed age group between 2012 and 2013.
(1)
1,742
181,435
Women employees at 31 Dec 2013
306
44,152
GRI-G4 LA6, LA7
Interactive
Appendix / Details by workforce / Occupational Health and Safety
241
Occupational Health and Safety (1)
Injuries by geographic area and gender(2)
Days of absence (3) by geographic area and gender(2)
total
2013
men
Europe
323
North America
161
Latin America
women
total
2012
men
251
72
332
126
35
179
259
247
12
Asia
5
5
Rest of world
-
-
748
629
119
Total
2013
men
women
2011
total
260
72
488
Europe
10,407
8,174
136
43
186
North America
8,762
6,176
292
285
7
320
Latin America
5,378
5,088
-
5
3
2
15
72
-
-
-
-
-
-
808
684
124
1,009
24,619
total
Asia
Rest of world
Total
total
2012
men
women
2011
total
2,233
10,709
2,586
10,534
8,815
1,894
14,841
7,977
2,557
290
7,792
5,689
5,626
63
5,864
72
-
-
149
140
9
472
-
-
-
-
19,510
-
5,109
27,081
22,558
4,523
28,969
women
Occupational illness cases by geographic area and gender(2)
Frequency rate by geographic area and gender(2)
Fiat Group worldwide (accidents per 100,000 hours worked)
total
2013
men
women
total
2012
men
women
2011
total
total
2013
men
women
total
2012
men
women
2011
total
0.34
Europe
211
156
55
289
256
33
59
Europe
0.24
0.24
0.26
0.26
0.25
0.29
North America
378
217
161
436
279
157
386
North America
0.09
0.09
0.10
0.12
0.12
0.13
0.15
Latin America
143
140
3
165
162
3
197
Latin America
0.28
0.31
0.10
0.33
0.35
0.09
0.39
0.07
0.10
-
0.09
0.07
0.12
0.18
-
-
-
-
-
-
-
0.19
0.19
0.15
0.22
0.22
0.19
0.28
total
2012
men
women
2011
total
Asia
-
-
-
-
-
-
-
Asia
Rest of world
-
-
-
-
-
-
-
Rest of world
732
513
219
890
697
193
642
Total
Total
Severity rate by geographic area and gender(2)
Occupational Illness Frequency rate by geographic area and gender(2)
Fiat Group worldwide (days of absence due to accidents per 1,000 hours worked)
Fiat Group worldwide (cases of occupational illness per 100,000 hours worked)
total
2013
men
women
total
2012
men
women
2011
total
total
2013
men
women
Europe
0.08
0.08
0.08
0.08
0.09
0.08
0.10
Europe
0.16
0.15
0.20
0.23
0.25
0.13
0.04
North America
0.05
0.05
0.07
0.07
0.07
0.08
0.06
North America
0.22
0.16
0.46
0.29
0.24
0.49
0.30
Latin America
0.06
0.06
0.02
0.06
0.07
0.01
0.07
Latin America
0.16
0.18
0.02
0.19
0.20
0.04
0.24
Asia
0.01
0.01
-
0.03
0.03
0.01
0.06
Asia
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Rest of world
-
-
-
-
-
-
-
0.06
0.06
0.07
0.07
0.07
0.07
0.08
0.18
0.16
0.28
0.24
0.23
0.29
0.18
Rest of world
Total
(1)
(2)
(3)
Total
Data related to 2011 includes Chrysler Group for the full year.
Starting in 2012, the Occupational Health and Safety indicators also include a breakdown by gender.
Refers to the number of calendar days of absence (including Saturdays, Sundays and holidays) due to accidents that occurred to employees (hourly, salaried and professional) resulting in absence from work for more than three days, excluding the day
the accident occurred. Excluded from the calculation are: days of absence due to accidents that occurred while traveling to and from work, including by private transportation.
242
Interactive
GRI-G4 32
Appendix / Index of GRI-G4 content
Index of GRI-G4 content
The following table has been provided to help the reader in locating content within the document that relates to specific GRI-G4 indicators. Each indicator is followed by reference to
the appropriate pages in the 2013 Sustainability Report or other publicly available sources.
Key
PSR = 2013 Paper Sustainability Report
ISR = 2013 Interactive Sustainability Report
AR = Annual Report at 31 December 2013
ARCG = Annual Report on Corporate Governance, February 2014
n.a.
Fully disclosed
Partially disclosed
Not disclosed
Not applicable
General standard disclosures
DMA and Indicators
Publications
Page
Omission and reason
External Assurance
Strategy and analysis
G4-1
Statement from the Chairman and the CEO
PSR
ISR
8-12
YES-179
G4-2
Key impacts, risks, and opportunities
PSR
ISR
12, 46-47
YES-179
Organizational profile
G4-3
Name of the organization
ARCG
4, 183
YES-179
G4-4
Primary brands, products, and/or services
PSR
ISR
30, 33-37
YES-179
G4-5
Location of the organization’s headquarters
PSR
ISR
194
YES-179
G4-6
Countries where the organization operates
PSR
ISR
31, 38-39
YES-179
G4-7
Nature of ownership and legal form
AR
ARCG
16-19
183-184
YES-179
G4-8
Markets served
PSR
ISR
31
YES-179
G4-9
Scale of the reporting organization
PSR
ISR
AR
30-31, 170
YES-179
G4-10
Workforce characteristic
PSR
ISR
110-111, 174-175, 177
YES-179
G4-11
Employees covered by collective bargaining agreements
PSR
ISR
125-127
YES-179
G4-12
Organization’s supply chain
PSR
ISR
88-91
YES-179
14-15
Omission and reason
Interactive
External Assurance
DMA and Indicators
Publications
Page
G4-13
Changes in organization’s size, structure, ownership or its supply chain
PSR
ISR
42, 88-91, 108, 111, 174-176
YES-179
G4-14
Precautionary approach to risk management
PSR
ISR
46-47, 49-52, 60, 68
YES-179
G4-15
Externally developed charters, principles or initiatives to which the organization subscribes
ISR
ARCG
G4-16
Membership in associations or organizations
PSR
ISR
21
YES-179
5
YES-179
Identified material aspects and boundaries
G4-17
Entities included in the organization reports
PSR
AR
33-37
237-258
YES-179
G4-18
Reporting principles for defining report content
PSR
ISR
16-17
YES-179
G4-19
Material aspects identified in defining report content
PSR
ISR
16-17
YES-179
G4-20
Material aspects within the organization
PSR
ISR
16-17
YES-179
G4-21
Material aspects outside the organization
PSR
ISR
16-17
YES-179
G4-22
Restatements of information provided in earlier reports
PSR
ISR
167-169
YES-179
G4-23
Significant changes from previous reporting periods in scope and aspect boundaries
PSR
ISR
167-169
YES-179
Stakeholder engagement
G4-24
Stakeholder groups engaged by the organization
PSR
ISR
19, 21-27
YES-179
G4-25
Identification and selection of stakeholders to engage
PSR
ISR
18-19, 21-27
YES-179
G4-26
Organization’s approach to stakeholder engagement
PSR
ISR
17-19, 21-27
YES-179
G4-27
Key topics collected through stakeholder engagement
PSR
ISR
20-27, 44, 60, 68-69, 71, 103, 120, 140
YES-179
Report profile
G4-28
Reporting period
PSR
ISR
3
YES-179
G4-29
Date of the last report
PSR
ISR
167-169
YES-179
G4-30
Reporting cycle
PSR
ISR
3, 167-169
YES-179
G4-31
Contact point for questions regarding the report
PSR
ISR
3
YES-179
G4-32
GRI Content Index
PSR
ISR
3, 181-193
YES-179
G4-33
External assurance
PSR
ISR
3, 169, 179-180
YES-179
243
244
Interactive
DMA and Indicators
Publications
Page
Omission and reason
External Assurance
Governance
G4-34
Governance structure
PSR
ISR
ARCG
14-16, 40-41
G4-35
Delegating authority for economic, environmental and social topics
PSR
ISR
14-16
YES-179
G4-36
Positions with responsibility for economic, environmental and social topics
PSR
ISR
14-16
YES-179
G4-37
Consultation between stakeholders and the highest governance bodies on economic,
environmental and social topics
PSR
ISR
14-16
YES-179
G4-38
Composition of highest governance bodies and its committees
ISR
ARCG
17, 19-20, 23
G4-39
Executive powers of the Chairman
ISR
ARCG
44
G4-40
Qualification and expertise of highest governance bodies
ISR
ARCG
39, 48, 69, 168, 170, 172
G4-41
Processes to avoid conflicts of interest
ISR
ARCG
16-17, 20-21, 36-37, 75
G4-42
Highest governance bodies and senior executives’ roles in the development, approval,
and updating of the organization’s purpose, value or mission statements, strategies, policies,
and goals related to economic, environmental and social impacts
PSR
ISR
14-16
YES-179
G4-43
Measures taken to develop and enhance the highest governance bodies’ collective knowledge
of economic, environmental and social topics
PSR
14
YES-179
G4-44
Evaluation of the Board of Directors’ performance
ARCG
ISR
19, 20
YES-179
G4-45
Highest governance bodies’ role in the identification and management of economic,
environmental and social impacts, risks, and opportunities
PSR
ISR
AR
ARCG
46-47
YES-179
Highest governance bodies’ role in reviewing the effectiveness of the organization’s risk management
processes for economic, environmental and social topics.
PSR
ISR
AR
ARCG
46-47
G4-47
Frequency of the highest governance bodies’ review of economic, environmental
and social impacts, risks, and opportunities
PSR
ISR
46-47
YES-179
G4-48
Highest committee or position that formally reviews and approves the organization’s
sustainability report
PSR
ISR
14-16
YES-179
G4-49
Communicating critical concerns to the highest governance bodies
PSR
ISR
14-16
YES-179
G4-50
Critical concerns that were communicated to the highest governance bodies
and the mechanism(s) used to address and resolve them
G4-51
Remuneration policies for highest governance bodies and senior executives
G4-46
YES-179
6-8, 18
YES-179
YES-179
YES-179
YES-179
107-108
152
YES-179
107-108
152
The information is subject
to specific confidentiality constraints.
The data is considered confidential.
AR
189-195, 306-311, 350-361
YES-179
YES-179
Omission and reason
Interactive
External Assurance
DMA and Indicators
Publications
Page
G4-52
Determining remuneration
ARCG
53-58
G4-53
How stakeholders’ views are sought and taken into account regarding remuneration
ARCG
28, 69, 70
G4-54
Ratio of the annual compensations within the organization
In some countries of presence this
information is subject to confidential
treatment.
YES-179
G4-55
Ratio of percentage increase in annual compensation within the organization
treatment.
YES-179
YES-179
YES-179
Ethics and integrity
G4-56
Organization’s values, principles, standards and norms of behavior
PSR
ISR
43
YES-179
G4-57
Internal and external mechanisms for seeking advice on ethical and lawful behavior,
and matters related to organizational integrity
PSR
ISR
43
YES-179
G4-58
Internal and external mechanisms for reporting concerns about unethical or unlawful behavior,
and matters related to organizational integrity
PSR
ISR
43, 45-46
YES-179
Specific standard disclosures
Economic
DMA and Indicators
Publications
Page
Omission and reason
External Assurance
Material aspect: economic performance
G4-DMA
Generic Disclosures on Management Approach
PSR
AR
116
42-79, 114-117, 122-132
YES-179
G4-EC1
Direct economic value generated and distributed
PSR
ISR
28
YES-179
G4-EC2
Financial implications, risks and opportunities for the organization’s activities due to climate change PSR
ISR
12, 46-47
YES-179
G4-EC3
Coverage of the organization’s defined benefit plan obligations
PSR
ISR
116
YES-179
G4-EC4
Financial assistance received from government
PSR
ISR
60
YES-179
Material aspect: market presence
G4-DMA
PSR
ISR
115
YES-179
G4-EC5
Ratios of standard entry level wage by gender compared to local minimum wage
PSR
ISR
115
YES-179
G4-EC6
Proportion of senior management hired from the local community
PSR
ISR
175
YES-179
245
246
Interactive
DMA and Indicators
Publications
Page
Omission and reason
External Assurance
Material aspect: indirect economic impacts
G4-DMA
PSR
ISR
88-91, 102-103
YES-179
G4-EC7
Development and impact of infrastructure investments and services supported
PSR
ISR
46-47, 103-104
YES-179
G4-EC8
Significant indirect economic impacts
PSR
ISR
46-47, 88-91, 95-97, 103-105, 108
YES-179
Material aspect: procurement practices
G4-DMA
PSR
ISR
88-91
YES-179
G4-EC9
Proportion of spending on local suppliers
PSR
ISR
88-91
YES-179
Environmental
DMA and Indicators
Publications
Page
Omission and reason
External Assurance
Material aspect: materials
G4-DMA
PSR
ISR
62-63
YES-179
G4-EN1
Materials used
PSR
ISR
62-64
YES-179
G4-EN2
Recycled input materials
PSR
ISR
62-64
YES-179
Material aspect: energy
G4-DMA
PSR
ISR
66-67, 98-99, 134, 140-141
YES-179
G4-EN3
Energy consumption within the organization
PSR
ISR
101, 140, 171
YES-179
G4-EN4
Energy consumption outside of the organization
PSR
ISR
66-67, 101, 171
YES-179
G4-EN5
Energy intensity
PSR
ISR
141
YES-179
G4-EN6
Reduction of energy consumption
PSR
ISR
99, 140, 151
YES-179
G4-EN7
Reductions in energy requirements of products and services
PSR
ISR
49-54, 56-58
YES-179
Material aspect: water
G4-DMA
PSR
ISR
134, 138, 143-144
YES-179
G4-EN8
Water withdrawal
PSR
ISR
144, 172
YES-179
G4-EN9
Water sources significantly affected by withdrawal
ISR
G4-EN10
Water recycled and reused
PSR
ISR
YES-179
145
YES-179
DMA and Indicators
Publications
Page
PSR
ISR
134, 138
Omission and reason
Interactive
External Assurance
Material aspect: biodiversity
G4-DMA
YES-179
G4-EN11
Operational sites in, or adjacent to, protected areas and areas of high biodiversity value
ISR
YES-179
G4-EN12
Description of significant impacts on biodiversity
ISR
YES-179
G4-EN13
Habitats protected or restored
ISR
YES-179
G4-EN14
List of species with habitats in areas affected by operations, by level of extinction risk
ISR
YES-179
Material aspect: emissions
G4-DMA
PSR
ISR
66-67, 98-99, 134, 140-142
YES-179
G4-EN15
Direct greenhouse gas (GHG) emissions (Scope 1)
PSR
ISR
101, 141-142, 164-165, 171
YES-179
G4-EN16
Energy indirect greenhouse gas (GHG) emissions (Scope 2)
PSR
ISR
101, 141-142, 171
YES-179
G4-EN17
Other indirect greenhouse gas (GHG) emissions (Scope 3)
PSR
ISR
66-67, 101, 164-165
YES-179
G4-EN18
Greenhouse gas (GHG) emissions intensity
PSR
ISR
142, 164
YES-179
G4-EN19
Reduction of greenhouse gas (GHG) emissions
PSR
ISR
99, 135, 140, 150-151, 165-166
YES-179
G4-EN20
Emissions of ozone-depleting substances (ODS)
ISR
YES-179
G4-EN21
NOX, SOX, and other significant air emissions
ISR
YES-179
Material aspect: effluents and waste
G4-DMA
PSR
ISR
134, 138, 146
YES-179
G4-EN22
Water discharge
PSR
ISR
144-146, 172
YES-179
G4-EN23
Waste disposal
PSR
ISR
146-149, 173
YES-179
G4-EN24
Significant spills
PSR
ISR
146
YES-179
G4-EN25
Hazardous waste
PSR
ISR
148, 173
YES-179
G4-EN26
Biodiversity and habitats affected by the organization’s discharges
ISR
YES-179
Material aspect: products and services
G4-DMA
PSR
ISR
48-51, 55, 60, 66-69
YES-179
G4-EN27
Mitigation of environmental impacts of products and services
PSR
ISR
49-54, 56-61
YES-179
G4-EN28
Products sold and their packaging materials that are reclaimed
PSR
ISR
66
YES-179
247
248
Interactive
DMA and Indicators
Publications
Page
Omission and reason
External Assurance
Material aspect: compliance
G4-DMA
ISR
YES-179
G4-EN29
Monetary value of significant fines and total number of non-monetary sanctions
for non-compliance with environmental laws and regulations
ISR
YES-179
Material aspect: transport
G4-DMA
PSR
ISR
163-164
YES-179
G4-EN30
Environmental impacts of transport
PSR
ISR
164-165
YES-179
Material aspect: overall
G4-DMA
PSR
ISR
134, 138
YES-179
G4-EN31
Environmental protection expenditures and investments
PSR
ISR
137
YES-179
Material aspect: supplier environmental assessment
G4-DMA
PSR
ISR
92-94
YES-179
G4-EN32
Suppliers screened using environmental criteria
PSR
ISR
92-93, 165
YES-179
G4-EN33
Actual and potential negative environmental impacts in the supply chain and actions taken
PSR
ISR
92
YES-179
Material aspect: environmental grievance mechanisms
G4-DMA
PSR
ISR
42, 94, 97-98
YES-179
G4-EN34
Grievances about environmental impacts filed, addressed, and resolved
PSR
ISR
42, 97-98
YES-179
Social
Labor practices and decent work
DMA and Indicators
Publications
Page
Omission and reason
External Assurance
Material aspect: employment
G4-DMA
PSR
ISR
106-109, 116
YES-179
G4-LA1
Number and rates of new employee hires and employee turnover
PSR
ISR
110-111, 176-177
YES-179
G4-LA2
Benefits provided to full-time employees that are not provided to temporary
or part-time employees
PSR
ISR
116
YES-179
G4-LA3
Return to work and retention rates after parental leave
ISR
YES-179
DMA and Indicators
Publications
Page
Omission and reason
Interactive
External Assurance
Material aspect: labor/management relations
G4-DMA
PSR
ISR
124
YES-179
G4-LA4
Minimum notice periods regarding operational changes
PSR
ISR
124
YES-179
Material aspect: occupational health and safety
G4-DMA
PSR
ISR
152-157
YES-179
G4-LA5
Workforce represented in health and safety committees
PSR
ISR
161-162
YES-179
G4-LA6
Injuries, occupational diseases, lost days, absenteeism and total number of work-related fatalities
PSR
ISR
158-159, 178
YES-179
G4-LA7
Workers with high incidence or high risk of diseases related to their occupation
PSR
ISR
160, 178
YES-179
G4-LA8
Health and safety topics covered in formal agreements with trade unions
PSR
ISR
127
YES-179
Material aspect: training and education
G4-DMA
PSR
ISR
112-114, 117-118
YES-179
G4-LA9
Training per employee
PSR
ISR
81, 87, 116-118, 139
YES-179
G4-LA10
Programs for skills management and lifelong learning of employees
PSR
ISR
117-118
YES-179
G4-LA11
Employees receiving regular performance and career development reviews
PSR
ISR
112-114
YES-179
Material aspect: diversity and equal opportunity
G4-DMA
PSR
ISR
119-123
YES-179
G4-LA12
Composition of governance bodies and breakdown of employees per indicators of diversity
PSR
ISR
120-123
YES-179
Material aspect: equal remuneration for women and men
G4-DMA
G4-LA13
Ratio of basic salary and remuneration of women to men
ISR
YES-179
treatment.
YES-179
Material aspect: supplier assessment for labor practices
G4-DMA
PSR
ISR
92-94
YES-179
G4-LA14
Suppliers screened using labor practices criteria
PSR
ISR
92-93
YES-179
G4-LA15
Actual and potential negative impacts for labor practices in the supply chain and actions taken
PSR
ISR
92, 94
YES-179
249
250
Interactive
DMA and Indicators
Publications
Page
Omission and reason
External Assurance
Material aspect: labor practices grievance mechanisms
G4-DMA
PSR
ISR
42, 97-98, 124-126
YES-179
G4-LA16
Grievances about labor practices filed, addressed, and resolved
PSR
ISR
42, 97-98
YES-179
Human rights
DMA and Indicators
Publications
Page
Omission and reason
External Assurance
Material aspect: investment
G4-DMA
PSR
ISR
42-44
YES-179
G4-HR1
Investment agreements and contracts that include human rights clauses or that underwent
human rights screening
PSR
ISR
42-44
YES-179
G4-HR2
Employee training on human rights policies or procedures concerning aspects of human rights
that are relevant to operations
PSR
ISR
42-44
YES-179
Material aspect: non-discrimination
G4-DMA
PSR
ISR
42-45, 124-125
YES-179
G4-HR3
Incidents of discrimination and corrective actions taken
PSR
ISR
42-45, 124-125
YES-179
Material aspect: freedom of association and collective bargaining
G4-DMA
PSR
ISR
42-44, 92, 128-131
YES-179
G4-HR4
Risks to the right to exercise freedom of association and collective bargaining
PSR
ISR
42-44, 92, 94, 128-131
YES-179
Material aspect: child labor
G4-DMA
PSR
ISR
42-45, 92
YES-179
G4-HR5
Operations identified as having significant risk for incidents of child labor
PSR
ISR
42-45, 92, 94
YES-179
Material aspect: forced or compulsory labor
G4-DMA
PSR
ISR
42-44, 92
YES-179
G4-HR6
Operations identified as having significant risk for incidents of forced or compulsory labor
PSR
ISR
42-44, 92, 94
YES-179
YES-179
Material aspect: security practices
G4-DMA
PSR
ISR
42-44
G4-HR7
Security personnel trained on human rights policies
PSR
ISR
42-44
The process for data collection
in under development.
YES-179
DMA and Indicators
Publications
Page
Omission and reason
Interactive
External Assurance
Material aspect: indigenous rights
G4-DMA
ISR
G4-HR8
Violations of the rights of indigenous peoples
PSR
ISR
103-104
YES-179
YES-179
YES-179
Material aspect: assessment
G4-DMA
PSR
ISR
44-46
G4-HR9
Operations subject to human rights reviews or impact assessments
PSR
ISR
44-46
For a portion of the Group data
is considered confidential. Evaluations
for possible inclusion in the scope
of disclosure are ongoing.
YES-179
Material aspect: supplier human rights assessment
G4-DMA
PSR
ISR
92-94
YES-179
G4-HR10
Suppliers screened using human rights criteria
PSR
ISR
92-93
YES-179
G4-HR11
Actual and potential negative human rights impacts in the supply chain and actions taken
PSR
ISR
92, 94
YES-179
Material aspect: human rights grievance mechanisms
G4-DMA
PSR
ISR
42, 97-98
YES-179
G4-HR12
Grievances about human rights impacts filed, addressed, and resolved
PSR
ISR
42, 97-98
YES-179
Society
DMA and Indicators
Publications
Page
Omission and reason
External Assurance
Material aspect: local communities
G4-DMA
PSR
ISR
102-104
YES-179
G4-SO1
Operations with implemented local community engagement, impact assessments,
and development programs
PSR
ISR
18-19, 42-44, 100, 103-104, 108-109
YES-179
G4-SO2
Operations with significant actual and potential negative impacts on local communities
PSR
ISR
103-104
YES-179
Material aspect: anti-corruption
G4-DMA
PSR
ISR
42-44
YES-179
G4-SO3
Operations assessed for risks related to corruption
PSR
ISR
42-44
YES-179
G4-SO4
Communication and training on anti-corruption policies and procedures
PSR
ISR
42-44
YES-179
G4-SO5
Confirmed incidents of corruption and actions taken
PSR
ISR
44-46
YES-179
251
252
Interactive
DMA and Indicators
Publications
Page
Omission and reason
External Assurance
Material aspect: public policy
G4-DMA
ISR
YES-179
G4-SO6
Value of political contributions
ISR
YES-179
Material aspect: anti-competitive behavior
G4-DMA
ISR
YES-179
G4-SO7
Legal actions for anti-competitive behavior, anti-trust, and monopoly practices and their outcomes
ISR
YES-179
G4-DMA
ISR
YES-179
G4-SO8
Fines and sanctions for non-compliance with laws and regulations
ISR
YES-179
Material aspect: supplier assessment for impacts on society
G4-DMA
PSR
ISR
92-94
YES-179
G4-SO9
Suppliers screened using criteria for impacts on society
PSR
ISR
92-93
YES-179
G4-SO10
Actual and potential negative impacts on society in the supply chain and actions taken
PSR
ISR
92, 94
YES-179
Material aspect: grievance mechanisms for impacts on society
G4-DMA
PSR
ISR
42, 97-98
YES-179
G4-SO11
Grievances about impacts on society filed, addressed,
and resolved
PSR
ISR
42, 97-98
YES-179
Product responsibility
DMA and Indicators
Publications
Page
Omission and reason
External Assurance
Material aspect: customer health and safety
G4-DMA
PSR
ISR
46-47, 65, 70-77
YES-179
G4-PR1
Product and service categories for which health and safety impacts are assessed for improvement
PSR
ISR
46-47, 60, 65, 71-75, 77
YES-179
G4-PR2
Incidents of non-compliance with regulations concerning the health and safety impacts
of products and services during their life cycle
PSR
ISR
72
YES-179
Material aspect: product and service labeling
G4-DMA
PSR
ISR
62-63, 66, 78-87
YES-179
G4-PR3
Product and service information
PSR
ISR
62-63, 66, 78-79, 86-87
YES-179
G4-PR4
Incidents of non-compliance with regulations concerning product and service
information and labeling
PSR
ISR
86
YES-179
G4-PR5
Results of surveys measuring customer satisfaction
PSR
ISR
79-85, 87
YES-179
DMA and Indicators
Publications
Page
Omission and reason
Interactive
External Assurance
Material aspect: marketing communications
G4-DMA
PSR
ISR
86
YES-179
G4-PR6
Sale of banned or disputed products
PSR
ISR
86
YES-179
G4-PR7
Incidents of non-compliance with regulations concerning marketing communications
ISR
YES-179
Material aspect: customer privacy
G4-DMA
PSR
ISR
84
YES-179
G4-PR8
Substantiated complaints regarding breaches of customer privacy and losses of customer data
PSR
ISR
84
YES-179
G4-DMA
ISR
YES-179
G4-PR9
Fines for non-compliance with laws and regulations concerning the provision and use of products
and services
ISR
YES-179
253
254
Interactive
Appendix / Statement of assurance
Statement of assurance
This Sustainability Report has been audited by SGS Italia S.p.A., an independent company that provides verification, testing, analysis and certification of goods, services and
systems. The scope of the audit is reported in the following letter.

Interactive | Sustainability Report

Transcription

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