CNH Industrial N.V. Corporate Seat: Amsterdam, the Netherlands 25 St. James’s Street, London, SW1A 1HA, United Kingdom E-mail: [email protected] www.cnhindustrial.com CONTENTS

Welcome 1

About CNH Industrial 2

Snapshots 2020 4

2024 Sustainability Targets 6

Recognition as a Socially Responsible Company 7

2020 Sustainability Highlights 8

● Carbon Footprint 9

● Occupational Safety 19

● Life-Cycle Thinking 27

● People Engagement 31 Sustainability at COMMITTED CNH Industrial TO A BETTER is a way of doing business that FUTURE involves every CNH Industrial is committed to operating engage with all stakeholders as we create area, function, in an environmentally and socially shared value. responsible manner, boosting its global To make these aspirational goals even growth and profitability while maintain- more tangible, senior management and employee ing high standards of sustainability, and included challenging targets for year-end delivering even greater long-term value 2024 in the Company’s Strategic Business for all its stakeholders. Sustainability at Plan. They are consistent with the UN CNH Industrial is a way of doing busi- Sustainable Development Goals (SDGs), ness that involves every area, function, providing a universal and visionary and employee within the Company, as framework to address the challenges of demonstrated by its purpose “Powering global co-operation and action. sustainable transformation.” This reflects Despite the difficulties of the last year, the Company’s ability to drive internal due to the pandemic, CNH Industrial transformation and create new and continued, if not strengthened, its path increasingly innovative solutions, while to sustainability, improving processes considering the impact of its activities on and making progress in line with the planet and people. identified priorities. Some noteworthy The Company commitment is spelled examples are the increasing focus on out by four sustainability priorities diversity and inclusion within the (Carbon Footprint, Occupational Safety, Company and the support to communi- Life-Cycle Thinking, and People ties and individuals particularly Engagement) and four aspirational goals; impacted by COVID-19, through the namely, to become a zero-carbon organi- $2 million Solidarity Fund allocated to zation, achieve zero serious injuries, fully food, health, and education projects all recover waste and components, and fully over the world.

CNH INDUSTRIAL – A SUSTAINABLE YEAR | 1 COMPANY STRUCTURE ABOUT Segments We operate across five global segments: synergies and development areas: an Agriculture, Construction, Commercial increased customer focus and further & Specialty Vehicles, Powertrain, and expansion in evolving key market trends CNH INDUSTRIAL Financial Services. They are supported such as alternative propulsion, digitali- by global functions addressing key zation, automation and servitization. “The Company aims to be a global leader in all its business segments”

CONSTRUCTION Overview Key figures A global player in CNH Industrial has a wealth of globally construction respected brands dating back to 1842, Brands Consolidated revenues equipment which have shaped the industries of AGRICULTURE agricultural and construction machinery, Second largest commercial and specialty vehicles, and manufacturer of Global financial- the powertrain sector. Today, it is one of agricultural services player the leading capital-goods companies in equipment supporting customers the world. and dealers The Company provides farmers with 12 $26bn Plants industry-leading technologies to help them Employees feed a growing world population, it assists FINANCIAL in building and rebuilding cities and infra- SERVICES structure, and it delivers sustainable transport solutions for goods and commu- nities, all with future-proof powertrains. Its customers can also count on a com- prehensive suite of financing solutions and 66 64,016 R&D centers a dedicated range of aftermarket services. R&D spending With a presence in 180 countries, CNH Industrial is uniquely diversified across segments and geographies. The Company aims to be a global leader in all its business segments. It is POWERTRAIN a pioneer in efficient machinery that Global leader in CAPITAL enables other sectors of the global econ- 57 $932m regulated markets omy to operate at maximum potential, Note: all figures provided herein are on a US CNH Industrial shares are listed on the COMMERCIAL & GAAP $ basis, updated at the end of 2020. and it achieves this by harnessing new New York and Milan stock exchanges. SPECIALTY VEHICLES technologies and through its vast market Market leader in alternative fuels reach and solid enterprise culture.

CNH INDUSTRIAL – A SUSTAINABLE YEAR | 3 2 | CNH INDUSTRIAL – A SUSTAINABLE YEAR Fighting wildfire damage CNH Industrial employees are committed to making a difference in their local communities, often with a focus 2020 on the environment. In response to the devastation SNAPSHOTS caused by the October 2020 wildfires in Córdoba, Argentina, 50 local employees came together to make a Reuse, recycle, replay… reforestation plan to help the environment recover from The Ricrea (Recreate) project first the extensive damage. Together with the environmental launched in Lecce, , in 2019 advisory company Ambiente Argentino, they supported continued in 2020 with the creation the planting of 500 native trees in the mountains. of Il Giardino di Lorenzo (Lorenzo’s Garden) in Bologna, Italy. A park in the province was redeveloped with Zero-emissions trucking new furniture and equipment made Reducing packaging waste The first battery-electric heavy-duty truck jointly developed by and from discarded wood packaging Plants worldwide, including Fargo, These measures FPT Industrial in partnership with Nikola Motor Company is undertaking testing in from the Saskatoon, and Wichita in North America, the U.S. The Nikola TRE prototype, the first step toward a fuel-cell electric production plant in Modena. The revamped Annonay, Foggia, and Zedelgem in model, will be built at the IVECO factory in Ulm, Germany, a center of heavy-duty area will benefit the local commu- , and Córdoba, Curitiba, and Sete led to an truck engineering excellence that aims to become a hub for fuel-cell mobility. The first nity, including the non-profit Lagoas in South America, have been models to enter production will be the battery-electric 4x2 and 6x2 articulated trucks, AGEOP Association, which sup- taking measures to reduce – and partic- with modular and scalable batteries with a capacity of up to 720 kWh. They will also ports children undergoing cancer ularly reuse – packaging waste. The main approximate feature an electric powertrain that delivers up to 480 kW of continuous power output. treatment. The project is designed improvements included replacing The vehicle is based on the IVECO S-WAY heavy truck and integrates Nikola’s to promote urban redevelopment wooden and/or cardboard shipping pal- 1,720-tonne advanced technology and infotainment systems. The Ulm facility receives module and inclusion, as well as reduce lets and disposable packaging with supplies from IVECO´s manufacturing locations in Valladolid and Madrid, Spain, environmental footprint through reusable materials, reusing wood waste which enable a rapid ramp-up to meet expected customer demand. The battery- the recycling and reuse of wood. from packaging to make planters and reduction in electric version will be introduced to the market in 2021, while the fuel-cell electric supports for parts and vehicle shipment, versions, built on the same platform, will be tested under the EU-funded H2Haul and adopting reusable metal containers. project for an expected market launch in 2023. Overall, these measures led to an packaging- approximate 1,720-tonne reduction in packaging-related waste and more than related waste $200,000 in savings. Digital agriculture evolution CNH Industrial is one of the founders and leaders of ConectarAGRO, a non- profit association in that aims to Children’s COVID-19 creativity bring easily accessible internet to remote Educating and engaging younger people is an regions across the country. Increasing important Company value that took on greater connectivity is expected to fuel a signif- urgency during the pandemic. Bearing this in icant improvement in rural agricultural mind, employees at Vysoké Mýto, in the Czech productivity in a nation that is already a Factory of the future Republic, developed an innovative, educational world-leading producer of grain and At the FPT Industrial Driveline plant in and fun competition for children of workers to responsible for approximately 40 percent , Italy, robots are partnering with help engage them creatively. The competition, of the global production of sugarcane. In humans to improve production processes called “In the lead role ,” involved 60 2019, ConectarAGRO expanded connec- and make them more efficient. AURA children, who were asked to use art supplies to tivity to more than 5.1 million hectares (Advanced Use Robotic Arm), a robot create a bus of the brand. Ultimately, 25 winners of rural areas via 4G LTE 700 MHz broad- designed and built by Comau, worldwide were chosen, each receiving a scooter – a fun band, covering 575,000 individuals and leader in delivering advanced industrial reward for participating that also helped them 218 towns. The ambition is to expand this automation products and systems, is exercise and stay active during the pandemic. to 13 million hectares during 2021. used in the HuManS (Human-centered Manufacturing System) project to help assemble spindles for heavy equipment Protecting biodiversity axles. Almost three meters high, and The Fargo plant in the U.S.A. repurposed part of its property, weighing about three tonnes, AURA is a which was formerly used to store parts, to create a pollinator collaborative industrial robot designed plot, planting a mix of flowers that provide nectar and/or pollen to work alongside humans, sharing for bees and butterflies. Thanks to this and other initiatives, space with them safely. It performs the such as tree planting, the facility was certified by the National heavy work of retrieving parts, then is Wildlife Federation as a Backyard Wildlife Habitat – a space guided by a human in the more delicate capable of supporting healthy and diverse animal habitats assembly stages. and ecosystems.

4 | CNH INDUSTRIAL – A SUSTAINABLE YEAR CNH INDUSTRIAL – A SUSTAINABLE YEAR | 5 -

For 2024, the Strategic Business Plan 2024 SUSTAINABILITY includes the following targets: RECOGNITION A 50 percent reduction in CO� emissions per AS A SOCIALLY TARGETS production unit compared to 2014 at Company plants worldwide RESPONSIBLE CNH Industrial’s ambition is to become carbon neutral, to ensure 80 percent of total zero serious injuries, to deliver electricity consumption to COMPANY fully recoverable life-cycle thinking, come from renewable and to be fully engaged with its sources at Company people. To substantiate this ambi- plants worldwide tion and illustrate its strong commitment to sustainability, the A 20 percent reduction in Company has included 11 challeng- kilos of CO� emissions per ing targets for 2024 in its five-year tonne of goods transported 2020-2024 Strategic Business Plan. (including spare parts) compared to 2014 Active engagement with stakehold- ers worldwide is crucial for creating 25 percent of the product shared value over the long term. portfolio available with Short-term targets are updated natural-gas powertrains annually to report the progress of existing projects and establish new CARBON FOOTPRINT OCCUPATIONAL SAFETY A 50 percent reduction in targets to ensure continuous the frequency rate of improvement and value creation. The Company is actively engaged in reduc- CNH Industrial takes a preventative and employee injuries ing CO� emissions associated with proactive approach to occupational compared to 2014 Inclusion in sustainability indexes, As at December 31, 2020, CNH Industrial’s strategy is manufacturing processes, logistics, and the safety, to minimize the risk of injury in and the ratings received from spe- CNH Industrial was included in the aligned with the 17 Sustainable usage of its vehicles. A decarbonization the workplace. 100 percent of new cialized sector-specific agencies, following indexes: Euronext Vigeo Development Goals set by the UN strategy is being developed to shift toward products to include further reflect the robustness of Europe 120, Euronext Vigeo Eurozone for 2030. The Company has chosen more environmentally friendly solutions. sustainability/recyclability CNH Industrial’s commitment to 120, ECPI Global Agriculture Liquid to concentrate on six of these as the design criteria sustainability. In 2020, the Company Equity, ECPI World ESG Equity, ECPI most relevant to our businesses. was reconfirmed as Industry Leader Euro ESG Equity, ECPI Global This is how the Company intends 95 percent of waste in the Dow Jones Sustainability Developed ESG Best-in-Class, STOXX to continue to work for a better, recovered at Company Indices (DJSI) World and Europe for Global ESG Leaders Index, STOXX sustainable future. plants worldwide the 10th consecutive year, receiving Global ESG Environmental Leaders a score of 89/100. Index, STOXX Global ESG Social 100 percent of employees In 2020, CNH Industrial was Leaders Index, STOXX Global ESG involved in engagement included in the prestigious A List of Governance Leaders Index, STOXX surveys the CDP Climate Change program, Global ESG Impact Index, STOXX in recognition of its actions to opti- Global Low Carbon Footprint Index, A 50 percent increase in mize energy consumption, reduce STOXX Global Reported Low Carbon the number of women CO₂ emissions, and mitigate the Index1, Refinitiv Diversity & Inclusion managers compared business risks of climate change. It Index, and Integrated Governance to 2019 also scored A- in the CDP Water Index (IGI). Furthermore, in 2020, Security program, won the SAM CNH Industrial received an MSCI 100 percent of Tier 1 Gold Class Sustainability Award ESG2 Rating of AAA and was a suppliers involved in 2021, and was awarded ISS ESG responder to the 2020 Workforce sustainability Prime status. Disclosure Initiative (WDI). self-evaluations LIFE-CYCLE THINKING PEOPLE ENGAGEMENT Note: 1 Those listed are the main global STOXX indices in which CNH Industrial is included. 100 percent increase The Company recognizes the importance The full engagement of all its people is in the number of people 2 The use by CNH Industrial of any MSCI ESG Research LLC or its affiliates’ (“MSCI”) data, and the use of MSCI logos, trademarks, service marks or index names herein, do not constitute a of minimizing its impact on the environ- one of the Company’s sustainability benefiting from sponsorship, endorsement, recommendation, or promotion of CNH Industrial by MSCI. MSCI ment, through a life-cycle approach. The priorities. CNH Industrial’s local services and data are the property of MSCI or its information providers, and are provided ‘as-is’ aspirational goal pursued is that of its community initiatives and without warranty. MSCI names and logos are trademarks or service marks of MSCI. waste becoming fully recoverable. compared to 2017

6 | CNH INDUSTRIAL – A SUSTAINABLE YEAR CNH INDUSTRIAL – A SUSTAINABLE YEAR | 7 CARBON OCCUPATIONAL LIFE-CYCLE PEOPLE FOOTPRINT SAFETY THINKING ENGAGEMENT CARBON -8.3% 1,410 $108.9 50% EMPLOYEES IN CO2 EMISSIONS MILLION OF WATER VOLUNTEERED PER HOUR OF SPENT ON RECYCLED DURING PRODUCTION HEALTH AND WORKING SAFETY FOOTPRINT HOURS

72% 93.9% +48% OF ELECTRICITY -5% OF WASTE IN EMPLOYEE RECOVERED IN SUPPLIER FROM SUSTAINABILITY RENEWABLE ACCIDENT FREQUENCY SELF- SOURCES RATE ASSESSMENTS COMPLETED

8.2% 56% 202,200 OF NET SALES OF OF KEY HOURS OF SPARE PARTS FROM $7 SUPPLIERS OCCUPATIONAL MILLION MONITORED REMANUFACTURED HEALTH AND INVESTED IN FOR CO2 COMPONENTS SAFETY TRAINING LOCAL EMISSIONS DELIVERED COMMUNITIES

10,000 NATURAL 11,210 DEALERSHIP GAS TECHNICAL ENGINES TRAINING SOLD SESSIONS CNH Industrial is actively engaged in reducing COMPLETED CO2 emissions associated with its manufactur- ing processes, logistics, and the use phase of its vehicles. This approach is fundamental to the continuous improvement of the Company’s performance and the protection of the envi- ronment in which it operates. CNH Industrial’s plants use systems and pro- 2020 cesses for reducing energy consumption and limiting the use of fossil fuels, favoring electric- ity from renewable sources. SUSTAINABILITY Initiatives to promote ever-more sustainable logistics processes focus on technologies, pro- cedures, and activities aimed at increasing low-emissions transport, adopting intermodal HIGHLIGHTS solutions, and optimizing transport capacity. Furthermore, the Company is developing its own decarbonization strategy to shift toward a more environmentally friendly product port- folio, increasing the use of biofuels and electrification, and continuing research into Note: the 2020 highlights are in line with the Company's four sustainability priorities: Carbon CNH Industrial hydrogen fuel and clean diesel. Footprint, Occupational Safety, Life-Cycle Thinking, and People Engagement; variations are vs 2019 supports the SDGs

8 | CNH INDUSTRIAL – A SUSTAINABLE YEAR CNH INDUSTRIAL – A SUSTAINABLE YEAR | 9 RAISING A “We try to anticipate GLASS TO what our customers A ZERO- will need as the energy transition picks up” Marco Gerbi, Head of Global Compact & Specialty EMISSIONS Line-up at New Holland Agriculture BAROLO HARVEST “We needed space for the compressed gas A heritage of innovation bottles, too, but the F28 NG is part of a New Holland Agriculture is the market new generation of engines for smaller leader in the specialist narrow A biomethane engine for specialist vineyard tractors which are particularly compact, used to work in vineyards and orchards, crawler tractors will enable the ‘King of Wines’ and that made it easier.” and the Company also has a long pedi- to cut its CO2 emissions to zero The natural gas engine fitted to the gree in crawler tractors, which use tracks tractors provides the same power and rather than standard tires, to navigate torque as its diesel equivalent in specialty difficult terrain without slipping or get- applications. However, FPT Industrial ting stuck. The first crawler tractor to be will soon be able to gather more detailed mass-produced in Europe was built in data about its performance in different 1932 by , which merged its industrial For CNH Industrial’s agricultural cus- of certified organic vineyards in the conditions once the two tractors devel- business with Ford New Holland in 1991. tomers, cutting carbon emissions and Piedmont region of Italy. The wine- oped for Fontanafredda are delivered in Fiat produced a methane-powered making their processes more sustainable maker is working in partnership with early 2021, and used to bring in the grape tractor as early as 1939, but it is in the 21st is no longer simply an environmental FPT Industrial, CNH Industrial’s power- harvest this autumn. century that alternative fuels have imperative, it is good business, too. train brand, to carry out the first zero become a priority for CNH Industrial as Consumers are increasingly conscious of CO₂ emissions harvest of Barolo grapes Collaborating with local businesses a whole. New Holland Agriculture has the impact the food and drink they buy this year, in order to produce 100 per- The three-year partnership between been working on methane-powered has on the environment, and they are cent sustainable wines ready for drinking the companies is supported by both tractors since 2013. In 2017, the brand willing to pay more for products that are in 2025. Piedmont’s regional government and unveiled the New Holland T6 Methane grown and made sustainably. To achieve this, FPT Industrial’s F28 Top: the New Holland other local firms that have contributed Power concept tractor and the production According to wine industry body NG (natural gas) engine will be used in TK Methane Power has been to the development of the vehicle, version, first shown in 2019, will be com- IWSR, sales of organic wine globally are the New Holland TK Methane Power, a designed to fit between vines including the body of the proto- mercialized in 2021. The most recent New and navigate steep slopes. expected to increase at a compound specialist vineyard crawler tractor, which Above: Fontanafredda's type, which was designed with a Holland TK Methane Power features the annual growth rate (CAGR) of 9.2 percent is narrow enough to fit between the rows La Rosa Barolo is the fruit of futuristic look by CNH Industrial’s F28 NG engine, which offers the choice of between 2017 and 2022 compared with of vines but sufficiently powerful to nav- the partnership. design center. a zero CO₂ emissions version to farmers Far right: Fiat Trattori, wine sales generally, which are expected igate the steep slopes of the Langhe through the subsidiary Officine “It has given us the opportunity to using smaller tractors for orchards and to remain largely flat over the same winegrowing region where Fontana- Costruzioni Industriali of build a network with other businesses vineyards. The F28 NG engine is built period. While organic wines still repre- fredda is located. The engine can run on Modena, launched the first mass- in the region that are involved with bio- according to an innovative modular produced crawler tractor in sent a small share of the overall market, biomethane, which is produced using Europe in 1932, the Fiat 700 C. methane and the green economy,” says approach so it can also be produced as a they command a premium price – in the anaerobic digestion of organic matter Right: FPT Industrial’s F28 NG Giordana. “They gave us a lot of ideas diesel engine or a diesel-electric hybrid. UK, for example, research shows con- such as animal manure or crop residue. engine can run on biomethane, and added to the experience that we “We try to anticipate what our which is produced from sumers are willing to pay 38 percent It has been in development since 2018, organic matter already have within the Company.” customers will need as the energy tran- more for a bottle of organic wine. and Fontanafredda, FPT Industrial and The partner companies have also sition picks up,” says Marco Gerbi, Head New Holland Agriculture have been helped with the supply of compressed of Global Compact & Specialty Tractor First CO2 emissions-free harvest working together on the vineyard tractor biomethane to Fontanafredda. In fact, the Line-up at New Holland Agriculture. Fontanafredda, the celebrated vineyard since 2019. biomethane that powers the New Holland “For Fontanafredda, the ultimate aim founded by the first king of Italy, Vittorio “The smaller the tractor, the more TK Methane Power tractor can be is zero CO₂ emissions, and to be able Emanuele II, put sustainability at the difficult it is to integrate the fuel system produced by the anaerobic digestion to take one of the best wines in the heart of its winemaking more than a on board,” says Sergio Giordana, Head of agricultural waste, thus creating a world to market without producing decade ago, and now has 120 hectares of Alternative Fuels at FPT Industrial. virtuous circular economy loop. carbon dioxide.”

10 | CNH INDUSTRIAL – A SUSTAINABLE YEAR CNH INDUSTRIAL – A SUSTAINABLE YEAR | 11 The biggest environmental benefit of the continent. This means the LNG trucks – and smaller trucks that run fuel undoubtedly has a role to play in on compressed natural gas (CNG) – is decarbonizing long-distance freight that they produce around 95 percent less transportation in Europe, necessary to particulate matter (PM) than diesel and meet the EU’s goals of cutting emissions 90 percent less nitrogen dioxide (NO₂). by 55 percent by 2030 and reaching Particulate matter is one of the biggest carbon neutrality by 2050. IVECO’s long- contributors to air pollution in cities, and term goal is for hydrogen to form the exposure has been linked to heart and major part of the heavy-duty transport lung problems, while NO₂ and other fuel mix, but production technologies nitrogen oxides (NOx) can also cause are still at an early stage, so costs respiratory issues. As a result, most traf- remain high. fic bans in cities have been focused on “The limitation on biomethane is older diesel vehicles with high levels of availability, but that is improving,” says PM and NOx emissions. Buffa. “Leaving the path of diesel is very long and complex, and the market will A mix of technologies to go through different alternatives. LNG-POWERED meet emissions goals Biomethane offers both environmental When it comes to carbon emissions from and economic sustainability, and costs LNG trucks, the picture is more complex. are just as important because if vehicles Biomethane, which is produced using are unaffordable, truck owners will not TRUCKS KEEP anaerobic digestion of organic matter, make the switch.” such as animal manure or crop residue, is Methane and biomethane can be a carbon neutral fuel. Although it does used interchangeably, and even com- produce a small amount of CO₂ when bined in the same fuel tank, and GATHERING used, the biogas is derived from plants, building up the LNG refueling network which, in turn, remove carbon from the across Europe has been a key part of atmosphere as they grow, creating a bal- IVECO’s strategy for expanding the ance. In Europe, biomethane currently market for alternative power sources. MOMENTUM makes up around 17 percent of the market, There are now around 400 LNG refuel- while the rest of the methane used as LNG ing sites across Europe, with good and CNG comes from fossil fuels. The coverage in France, Italy and Spain, says carbon emissions of fossil methane are Buffa. The Company is working in around 5 to 10 percent lower than diesel. partnership with Shell to expand LNG Sales of trucks run on liquefied However, biomethane production is refueling infrastructure in Germany natural gas rise even in the increasing in several European countries. and central Europe. pandemic year, as lower running In Italy, for example, by 2022 enough will costs, environmental benefits, and be produced to refuel 2,000 trucks a day. Sustainable high performance a wider refueling network attract Crucially, biomethane refueling points IVECO has also focused on another new customers are being added at filling stations across aspect of sustainability with its LNG truck fleet: greater connectivity to ensure vehicles take the best route and Last year was a tough one for the auto- natural gas is more economical, making best suited for short missions, due to the save fuel, as well as predictive mainte- motive industry, and the market for monthly running costs lower. Customers limited power range of batteries. For nance to ensure they function at their trucks was no exception. Overall, heavy seeking to improve the sustainability of example, with the current battery technol- best. All S-WAY trucks are connected to commercial vehicle registrations fell by their entire supply chain, including trans- ogy, the longest distance that electric trucks an IVECO control room 24 hours a day, 27 percent in Europe, however there was port and logistics, are increasingly asking can travel before recharging is around where staff monitor the condition of the a bright spot – methane-powered truck for biomethane.” 400km (248miles), whereas methane- vehicles and communicate with fleet sales increased by 11 percent over the IVECO S-WAY natural gas truck sales powered trucks have a range of 1,600km managers if, for example, a planned stop year, despite the impact of the pandemic. increased by 15 percent in 2020, outpacing (995 miles) before needing to refuel. for maintenance of the braking system This was due to more customers recog- the overall market. This represents a good With 460 horsepower, the LNG version is required. nizing the fuel-efficiency of natural gas result for the Company, which has also set of the IVECO S-WAY has been the most Achieving the ambitious level of engines, as well as their positive impact the Sustainability Target for 2024 to make powerful natural gas engine on the change needed in the transport industry on air quality. 25 percent of its product portfolio avail- market since its launch in 2018. It has been to reduce emissions in line with the “In a pandemic year, this demonstrates able with natural gas powertrains. The a game-changer for the Company and the goals of the EU and the UN Paris the strength of the growth path the sector Company has been developing liquefied market because it can compete with diesel Agreement, the international treaty on is on,” says Fabrizio Buffa, Head of Gas natural gas (LNG)-powered vehicles as an engines on performance, as well as offer- climate change, will require continuous Business Development for IVECO and alternative to diesel for two decades, with ing lower total cost of ownership. Fuel progress. LNG, and particularly bio- Alternative Propulsions Manager for Italy. a particular focus on heavy-duty long- consumption is between 5 and 15 percent methane, has a key role to play in “Demand is being driven by the fact that distance trucks, while electrification is lower than diesel, estimates Buffa. keeping that positive momentum going.

12 | CNH INDUSTRIAL – A SUSTAINABLE YEAR CNH INDUSTRIAL – A SUSTAINABLE YEAR | 13 LOWERING LOGISTICS EMISSIONS IN BRAZIL

Transport logistics decisions are driven by sustainability and efficiency, with a focus on fewer journeys by road and cargo storage innovation

“Sustainability is one of our core values and for years we have been committed to implementing sustainable transport solutions around the world,” says Dror Noach, Head of Transport Logistics at CNH Industrial. For the Company’s FIRST ELECTRIC transport logistics department there are three main areas of focus: adopting inter- To meet demand modal solutions with a combination of BACKHOE LIGHTS from utility customers, rail or sea with truck transport; making CASE built the first- the most of every journey by optimizing ever fully electric transport capacity; and using lower- backhoe – and it emissions vehicles. THE WAY IN matches its diesel In Brazil, achieving these goals counterparts on power presents a particular challenge, firstly and performance because of sheer size – at 850 million CONSTRUCTION hectares, Brazil is the fifth largest coun- try in the world – and secondly, because it is a market where freight transport is The quiet swoosh of electric cars is and Avangrid and produces zero emis- and maintenance costs by as much as 90 dominated by trucking and the rail becoming more commonplace on city sions. Furthermore, the development percent, taking into account the cost of network is limited. Nevertheless, CNH streets, and a growing number of local process is going beyond simply replacing diesel, engine oil, and regular mainte- Industrial’s transport specialists have a deliveries are carried out by low- a diesel engine with a battery. It’s consid- nance. While the 580 EV will initially cost range of on-going projects to reduce emissions electric vans and trucks. ering all the efficiencies and energy a client more to buy than diesel-powered carbon emissions. However, construction sites still rever- management opportunities that an backhoes, the Company believes average “We’re thinking all the time about berate with the sound of diesel engines electric powertrain (the engine, gear- fleets will see a payback on that premium how to reduce carbon footprint,” says On the outbound side, Schaicoski and powering large and heavy equipment. box and clutch) offers, including fewer in around five years. All savings achieved Joāo Schaicoski, Director of Transport his team work to make deliveries more So when two U.S. utility customers, heavy components and less complex after that will improve profitability Logistics for CNH Industrial in South efficient. In one recent example, to fulfill National Grid and Avangrid, approached system integration. and continue to lower the client’s America. “We constantly review modes an order of 957 school buses for the CASE Construction Equipment for help The reaction in the construction indus- carbon footprint. of transport to find the most efficient national government more efficiently, the with adding electric backhoes to their fleet try has been overwhelmingly positive Using electric construction equipment solution, and emissions are one of the transport logistics team developed a of vehicles, the Company took a big step since the team launched the vehicle at the may also make contractors eligible for key considerations.” device that allowed them to increase the into the future. The intent was to build a ConExpo trade show in March 2020, says jobs they might otherwise have been On the inbound side, the transport number of bus chassis that could fit on battery-electric powered backhoe with the Chris Andreuccetti, Head of Construction unable to bid on, expanding their busi- logistics team has started using trains to each truck. Mounting the cargo differ- same power and performance as the Technology Innovation at CNH Industrial. ness opportunities, particularly in cities ship components from the port in Rio de ently meant five rather than three chassis diesel equivalent, which could work a full “Every utility company that saw it and states with higher emissions regula- Top: components are Janeiro to the IVECO commercial vehicles could be transported in each journey, transported by train from the day without having to be recharged. wanted to buy one, and we’ve had tions and noise standards. plant in Sete Lagoas. Shipping containers saving more than 316 tonnes of CO₂ port in Rio de Janeiro to the CASE started working with partners municipalities and local governments “The success of the 580 EV has sparked travel 540km (335 miles) by rail, then the emissions in total. IVECO plant in Sete Lagoas. Green Machine, which makes battery expressing interest,” he says. “The real a whole new outlook for construction Center: a new device allows final 14km (8 miles) by truck from the rail Despite the challenges, Schaicoski and more bus chassis to be drive systems for industrial and con- advantages are in air and noise pollution equipment within our organization,” terminal to the factory. Around 338 con- his team are continuously working to mounted on each truck, struction vehicles, and Moog, which as there are no issues with idling restric- says Bob Nute, Service Technical tainers a year arrive this way – at an balance the increasing market demands saving CO2 emissions . produces electric vehicle motion-control tions. When this vehicle is not in use, it Manager at CASE. “The project has Above: IVECO BUS delivers average saving of 0.3 tonnes of CO₂ per for faster deliveries and environmental 957 buses to the Minas Gerais systems, in 2019. The vehicle they built, goes to sleep.” highlighted a great potential, and it’s container compared with road freight – issues, thus ensuring efficient and sus- Government to be used by state the 580 EV, meets all the performance CASE estimates the 580 EV has the opening the door for new opportunities saving 101.4 tonnes of CO₂ emissions. tainable transport solutions. public school students requirements set out by National Grid potential to reduce annual vehicle service across the Company.”

14 | CNH INDUSTRIAL – A SUSTAINABLE YEAR CNH INDUSTRIAL – A SUSTAINABLE YEAR | 15 “While we continued our efforts to reduce emissions further, we realized we must also look at offsetting the balance to reach

Amid the unprecedented disruption of COVID-19, In 2020, CNH Industrial’s commitment carbon neutrality” CNH Industrial to reduce its carbon footprint in manu- Giovanni Violano, Director of Testing Operations maintained its focus on facturing processes remained strong: and Prototypes at FPT Industrial energy management and carbon emissions fell by 13 percent, the on the use of renewable equivalent of 44,000 tonnes of CO�. The energy sources, taking longer-term initiatives of the Company new opportunities to contributed to this result, even though further cut its emissions the lockdowns imposed by the pandemic played a significant role in reducing CARBON CO2 emissions. During the year, 287 technical and management improvement projects were REDUCTION AND realized, and the level of people engagement and awareness increased. In addition, 72 percent of the electricity AIMING RENEWABLES used by its plants came from renewable sources, which allowed it to cut CO� emissions by 114,300 tonnes. This has TARGETS kept the Company on track to meet its FOR A ZERO- target of achieving 80 percent renewable electricity by 2024. REMAIN ON With production halted for weeks at a CARBON time due to the lockdowns, the Company had the opportunity to analyze the fixed TRACK energy consumption of machinery while idle at all plants, and consequently iden- FOOTPRINT tify the areas in which specific energy-saving projects could be realized to optimize processes. This systemic analysis, performed by the plants’ energy FPT Industrial’s Strada Cascinette research and development center As a cutting-edge testing center in the specialists in collaboration with the has cut its own carbon emissions and is offsetting the balance with CNH Industrial portfolio, the Strada Central Energy Department, led to the projects delivering solar-powered cooking stoves in China, protecting Cascinette site in Turin is doing every- identification of the correct start-up the Peruvian rainforest, and building wind turbines in India thing it can to minimize its own sequence needed to avoid over- emissions and offset what’s left. consumption and minimize energy use in equipment, and enabled the Company Cutting carbon emissions to identify the machines that did not The center is responsible for developing actually require to be put in stand-by and testing engines and drivelines. Its mode but could be turned off instead. testing benches measure the engines’ Right: the Despite the difficulties caused by the durability and performance under dif- Company's plant in pandemic, it was a unique opportunity ferent simulated conditions. Inevitably, Saskatoon, Canada, has installed solar for CNH Industrial to continue to pursue the engines emit greenhouse gases panels to generate its commitment to continuous improve- during this work. So does running the renewable energy ment in energy management. plant, where 440 people work.

16 | CNH INDUSTRIAL – A SUSTAINABLE YEAR CNH INDUSTRIAL – A SUSTAINABLE YEAR | 17 OCCUPATIONAL SAFETY

Efforts to cut its carbon footprint started in earnest in 2016, when the plant was producing 18,000 tonnes of emis- sions. “We cut the amount of energy we used, installed solar panels, and captured the energy produced by the engines we Top and above: Strada Cascinette testing test here and sold it to the national grid. center in Turin is a cutting-edge facility, dedicated We also improved our energy efficiency, to minimizing emissions and offsetting what’s left installing LED lighting throughout,” explains Giovanni Violano, Director of The second is a project in China help- Testing Operations and Prototypes at ing rural populations in Zhenping, FPT Industrial. Henan, replace their traditional charcoal By 2018, these projects had cut emis- cooking stoves with solar-powered ones. sions by 4,000 tonnes. “While we “The charcoal stoves produce both a high continued our efforts to reduce emissions amount of greenhouse gases and atmo- further, we realized we must also look at spheric pollution. This can make people offsetting the balance to reach carbon ill. The project is distributing 50,000 neutrality,” he says. solar-powered stoves to stop the pollu- tion and help protect people’s health. It CNH Industrial’s approach to occupational Three initiatives toward also relieves families of the burden of health and safety is based on effective preventive carbon neutrality continuously buying fuel. It’s a triple and protective measures, implemented both In 2020, FPT Industrial decided to take win,” he says. collectively and individually, that aim to minimize shares in three projects to offset its The final project, in Tamil Nadu, the risk of injury in the workplace. carbon footprint. The first was a sustain- southern India, also involves taking a CNH Industrial endeavors to ensure optimal able forest management project in the share in an initiative that promotes working conditions, applying principles of indus- Madre de Dios region of Peru. Part of the renewable energy. Over the 10 years for trial hygiene and ergonomics to managing pressure on the forest comes from a new, which FPT Industrial has pledged its processes at organizational and operational nearby highway that connects Brazil to support, a new wind farm with 396 wind levels. Its safety management system engages Peruvian coastal ports. The road has turbines will generate 4,559,321 GWh of employees to create a culture of accident pre- opened a route for illegal loggers into the energy, replacing conventional energy vention and risk awareness, and involves them forest – and a way out of it for rural that would have produced 4.17 million directly in identifying and reporting work-related dwellers escaping poverty. tonnes of CO�. hazards and potentially hazardous situations. “It’s a global hotspot for biodiversity, “Taking our involvement in these This proactive approach is intended to promote but it is under immense pressure,” important projects into account we, as a common, ethical occupational health and safety explains Violano. “The project focuses on center, are now in carbon equilibrium,” principles, and enables the achievement of improvement targets using various tools such as managing the rainforest; we’re helping Right: one of the says Violano. “But we are still thinking protect the rainforest and local commu- solar-powered stoves about adding more activities and are CNH Industrial training and awareness campaigns. nities,” he says. distributed in China continuously working on new plans.” supports the SDGs

18 | CNH INDUSTRIAL – A SUSTAINABLE YEAR CNH INDUSTRIAL – A SUSTAINABLE YEAR | 19 “If you’re installing a catalytic filter into an engine, for example, it’s crucial that we understand the potential stresses on the worker’s body,” says Claudia Campanella, Manager of Ergonomics at CNH Industrial Technology department. “But obviously if a production line worker is doing the same task 30 or 40 times an hour, it could have a major impact on their body. Working with your arms above your head, for example, gets very painful quite quickly. We focus particularly on posture and safety, and we have to be sure it is equally effective for different body sizes.”

Improving comfort scores Above: assembly line Virtual testing tracks the “comfort score” in our manufacturing of various tasks, with a special focus on plant in Greater Noida, India visibility and reachability. The scores are assessed using the European Assembly “We focus STREAMLINING THE Worksheet (EAWS Method) and the Rapid Entire Body Assessment (the REBA scale) to calculate the risks of particularly on MANUFACTURING musculoskeletal disorders for the whole body. posture and safety” PROCESS WITH “We track the effect of the assignment on the operator’s body, checking the Claudia Campanella, Manager of Ergonomics at joint angle and the effects on the back CNH Industrial Technology department VIRTUAL and limbs,” says Makesh Rajendran, Manufacturing Engineer, Industry 4.0 Global Operations at CNH Industrial. SIMUL ATIONS “We can see when they have to reach an area uncomfortably to install, say, a Recommendations were then sent back screw on an engine, or when they have to India for implementation in the Greater Ground-breaking virtual testing systems allow CNH Industrial to to twist to reach a button in a cab.” Noida plant. anticipate and resolve design issues long before they affect manufacturing, On one practice assignment, the use “The virtual rooms allow us to work optimizing the safety of workers on the factory shop floor of virtual testing for installing an SCR closely with colleagues across the world,” (Selective Catalytic Reduction filter, says Ankush Harchand, Manager of The process of designing a product is virtually, ensuring the safety of every- which cuts down emissions) reduced Digital Manufacturing at CNH Industrial complex. Every step from planning one involved with the product, from the EAWS score from 64.9 points to 25 in Greater Noida. “We are able to collab- through to implementation requires mechanic to engineer. points with a few simple changes to orate at all points in the process, exchange careful testing and analysis to ensure the the process. information and feedback instantly, so safety and wellbeing of staff – a critical Testing with digital twins “In the case of the SCR installation, it dramatically improves safety. We are focus for CNH Industrial and a key part Entering a CNH Industrial virtual room we could specify that the worker would now looking to roll out virtual testing of its Industry 4.0 program. Sometimes is nothing like visiting a traditional man- need a platform at a certain point in the across the whole of CNH Industrial, during the product development process ufacturing environment. In the center of operation in order to carry out the task as it has comprehensively proved its of a new vehicle, the design team dis- the room, a person wearing a fully with ease,” says Rajendran. “It was a effectiveness.” covers a small issue – for example, a immersive virtual-reality headset and a small change, but it made a huge differ- As well as optimizing employee worker needs to twist into a painful posi- number of motion-capture sensors carries ence to the stress put on the body.” safety, virtual testing helps design teams tion on the assembly line. Discovering out various tasks. Large screens show from different countries to mitigate prob- these kinds of issues at a late stage in the the person’s virtual “view” of their Scaling the virtual systems lems from the very early stages of product process can set back product develop- current assignment and simultaneously across the Company development, with consequent benefits ment by months. illustrate the different stresses and The virtual testing of the assembly line in terms of saving both time and expense. However, by introducing virtual test- strains being put on their body as they in Greater Noida has been developed, “It improves the sense of teamwork with ing at each step, these complications can carry it out. By creating this “digital together with the University of Modena our colleagues,” says Campanella. “With Top, above and far right: be minimized. From the very start, the twin” – a virtual mannequin of the and Reggio Emilia, at CNH Industrial’s virtual testing, we are much less virtual testing tracks the Rapid Entire Body Assessment ergonomics of the interaction between person performing the task – all the data Virtual Center in Modena, Italy, where a restricted to being the ‘Noida team’ or (the REBA scale) to calculate the factory worker and the machine can be can be tracked and analyzed quickly digital twin of the assembly line was the ‘Modena team.’ This way, we work as risks of musculoskeletal disorders thoroughly measured and checked and effectively. created in a virtual testing room. one Company.”

20 | CNH INDUSTRIAL – A SUSTAINABLE YEAR CNH INDUSTRIAL – A SUSTAINABLE YEAR | 21 Test-driving a vehicle has always carried an element of risk, but in design evaluation of agricultural equipment, the size of the vehicles involved substantially increases VIRTUAL the potential for accidents. Maneuvering a 25-tonne across an uneven field has its risks. CNH Industrial’s development of virtual testing is changing that risk profile, as well as reducing the TESTING time, costs, and carbon emissions involved in testing agricultural machines. The agricultural sector is evolving rapidly. Computer power is growing expo- nentially and there has been a vast increase IMPROVES in the amount of data available on every- Virtual testing reduces carbon thing from soil to humidity to weather emissions and risks conditions. Product testing has been evolv- Testing vehicles in a traditional manner ing, too, and is now enabling a major leap involves significant carbon emissions. It forward for farming technology. PRODUCT is anticipated, for example, that the Currently, modern farming vehicles validation of an autonomous automobile enhance the role of the operator by means will require between six billion and 14 of a user interface and sensing technol- billion miles of testing. Agricultural ogy that allows the vehicles to locate SAFETY equipment will require a considerable themselves and avoid hazards. However, number of hours and hectares to reach soon they will shift toward supervised the necessary level of confidence. autonomy, where the operator oversees leads to a high product development cost. Running a virtual simulation substan- an unmanned vehicle. Ultimately, Agricultural equipment has to perform in a “If we need to test a tractor in a field, we tially reduces those emissions. CNH Industrial is aiming for full auton- range of environments, which makes testing might have to ship a prototype to a Monacelli points out that prototype omy, where farming machinery will be complex, expensive, and challenging. By country far away and synchronize the vehicles create a large carbon footprint. able to carry out a wide range of tasks introducing virtual testing, CNH Industrial development time with the right season “When building a prototype, you know it completely unsupervised. can streamline the whole process to harvest the crop. Any delays in the is ultimately going to be scrapped,” he says. For obvious reasons, real testing of product development mean the proto- “It’s a big investment and not something autonomous vehicles is costly, time type may not be ready, thus missing a you really need to do, as simulations are consuming, and requires a raft of safety whole season of testing and resulting in becoming more realistic and predictive.” protocols. By testing in a virtual environ- One area where virtual testing is almost a year delay to release the product To produce an autonomous vehicle, ment, CNH Industrial will speed up the particularly effective is in cab design, to customers. We can manage this risk dozens of different elements – including design process toward full autonomy, where issues around driver comfort and using soil and crop modeling, anticipating cameras and LiDAR (Light Detection and while simultaneously ensuring optimal safety are addressed. Using virtual cabs, many tests on a computer and correlating Ranging, a remote sensing method that occupational safety. for example, driver postural comfort and them in the testing laboratory.” uses pulsed laser light to measure ranges) the “reachability” of controls can be However, by running a virtual – must all be tested. Virtual testing can be A safer approach to testing closely monitored. Whereas traditionally, test, not only can the evaluation be used for every element of the design pro- Safety has always been a key focus a person would have to physically sit in carried out almost immediately, but it is cess, from assessing one small component throughout the development of the the cab to test the ergonomics – possibly also possible to learn more about the of a tractor to the final product's function. Company’s vehicles. Everything from in some discomfort – the virtual system machine’s operation than would be Farming equipment will become more driver safety to uneven ground must be can fully assess the cab’s design. revealed by a standard physical test. and more sophisticated in the next few taken into consideration, and the poten- Virtual testing also allows customers “When we are harvesting a crop like years. “CNH Industrial is accumulating tial dangers mitigated. to provide input and feedback into the sugarcane in real life,” says Monacelli, a vast amount of data, which will trans- Normally, the product development design process. Using virtual cabs, they “we aren't able to see what is happening form what we know,” says Monacelli. team would run a series of “bump tests” can view solutions, track design devel- inside the machine. But through virtual “On larger farms, vehicles will soon be for a piece of farming equipment, which opment, and see improvements to testing and crop modeling we can do able to communicate with each other. In monitors vibrations, analyzes the forces product design first-hand. exactly that.” the future, we will be able to tell farmers on specific elements of a design, and Crop modeling – the analysis of the the optimum time to harvest a crop, and checks the pressures on hydraulic com- Cutting costs and time dynamics between the crop, the atmo- the harvester will be able to carry out that ponents. But by combining a variety of Traditional testing requires farming sphere, the soil and the machine – is task without the need for supervision.” modeling techniques with physical com- equipment to be used in a wide range of becoming far more sophisticated at However, at each step of development, ponents, CNH Industrial has created a environments, as well as trials on several Left and above: crop modeling can CNH Industrial. The Company can, for safety will be paramount. Shifting the simulation environment able to emulate varieties of crops. Gennaro Monacelli, accurately monitor the exact crop movements example, check the exact crop move- focus to virtual testing will reduce risks inside components. Top: virtual "bump tests" using standard testing, creating a “digital CNH Industrial’s Global Director of a digital twin are highly accurate and far safer than ments everywhere inside the machine, to personnel and ultimately provide the twin.” By shifting to this virtual setting, Design Analysis and Simulation, explains standard physical testing making the testing more accurate and customer with an optimum – and com- design validation becomes far safer. that this broad spectrum of evaluation allowing for further enhancements. prehensively tested – product.

22 | CNH INDUSTRIAL – A SUSTAINABLE YEAR CNH INDUSTRIAL – A SUSTAINABLE YEAR | 23 Audits to share best practices widely. As a manufacturing company, it The COVID-19 protocols became part of also helped mitigate the international CNH Industrial’s commitment to shortfall of personal protective equipment employee safety with special emphasis (PPE) by producing its own masks. EMBRACING THE on the sharing of best practices, thus “First we consulted our colleagues in promoting their standardization. China,” says Menduni. “Then we began “After implementation, we moved producing millions of our own masks at very quickly to the auditing phase,” says our factory in Harbin, China, which have CHALLENGE OF Menduni. “140 of CNH Industrial’s sites, been used at our plants in North and South manufacturing and non-manufacturing, America, and Italy. It has been very helpful were audited by CNH Industrial’s Health to close gaps in our PPE procurement.” THE PANDEMIC and Safety teams three times between CNH Industrial COVID-19 protocols July and December 2020, and at least once proved effective at stemming the spread so far in 2021. We will keep on making of contagion. “We analyzed infection these audits until the end of the pan- rates across the whole of CNH Industrial CNH Industrial had to respond rapidly to the unprecedented demic, because we need people to be and we found that around the world crisis presented by the COVID-19 pandemic. With lives at risk, confident and safe at work.” our employees had significantly lower the Company changed almost every aspect of its working As plant visits were not possible, site infection rates than other people in practices. Here’s how it addressed the situation EHS managers used GoPro cameras or their communities.” smartphones to show how the countermea- sures had been implemented. A dedicated A shift to working from home app was developed and used to record At the same time as the changes were being audit evaluations and outcomes. introduced to manufacturing facilities As one of the biggest capital goods board recommendations from prominent “These walkthroughs with cameras around the world, the Company managed manufacturing companies in the world, virologists in Italy and the U.S.A. in order enabled us to both evaluate conformity the switch for thousands of people to work- CNH Industrial responded to the to implement the safety protocols; that to the protocols and roll out best practice ing from home. Within days, a strategy was pandemic by rapidly embracing a meant we were very quickly in a position across the whole Company,” says developed to ensure that everyone had hybrid approach. to establish safety systems.” Menduni. “For example, we could see access to the appropriate ICT devices Groundbreaking protocols were estab- By the beginning of April, protocols that one plant was managing the flow of (information and communications tech- lished to prioritize health and safety for had been introduced, and were then set personnel through the entrances partic- nology). Managers also had to change the all employees, and working from home up at all international operations by July. ularly effectively, so we could highlight way they led their teams. was introduced for those who could These included detailed procedures this to other plants and identify oppor- “It was a huge logistical effort and work remotely. about how to behave in every Company tunities for improvement.” people have been very flexible to make it environment – temperature checks on work,” says Guido Moscheni, Head of Health and safety in pride of place arrival for staff and visitors, clear mark- Reaching out to all stakeholders Human Resources, Construction CNH Industrial’s response to the pan- ings on the floors in plants to ensure As it developed its strategy, Segment and member and coordinator of demic allowed no room for error. social distancing, screens in canteens and CNH Industrial passed on its protocols to ROC. “The ICT department in particular “From very early on, we were speak- at other bottlenecks where employees suppliers and other stakeholders, ensur- has been great. Everyone came together ing to our Chinese colleagues, so we might interact closely. ing that lessons learnt could be shared to work apart.” knew something huge was coming,” says Aldo Menduni, Head of Manufacturing Engineering, Head of Environment, Health and Safety, and member of CNH Industrial’s Restricted Operational Committee (ROC). “Even so, we didn’t “It was a huge logistical realize how quick and how serious this crisis would be.” At the beginning of February 2020, the effort and people have Company established ROC, its crisis response unit, to react to and manage the situation as it developed. been very flexible to Italy was the first Western country to be hit hard by COVID-19 and the Italian government was first to publish protocols make it work” for fighting the pandemic, on March 14, Guido Moscheni, Head of Human Resources, 2020. “CNH Industrial took that docu- Construction Segment and member and coordinator of ROC ment and moved fast to create a protocol for the whole Company,” says Menduni. Left and above: temperature checks and social distancing “That was then adapted, translated, and are part of CNH Industrial’s sent around the world. We also took on COVID-19 protocols

24 | CNH INDUSTRIAL – A SUSTAINABLE YEAR CNH INDUSTRIAL – A SUSTAINABLE YEAR | 25 On the minus side, “people found it increasingly difficult to stay motivated,” says Moscheni. “For some, it is because they have children at home, or they don’t LIFE-CYCLE have enough space, or they share a house, so they have lots of people trying to work/ study at the same time. Others live on their own and are feeling a little isolated.” CNH Industrial conducted several THINKING surveys to establish employees' priorities. At present, Moscheni estimates After analyzing responses to the that between 60 and 65 percent of employee surveys, a “New Normal” pro- CNH Industrial’s white-collar employees gram was launched to look at the future are working from home, and he expects of work in CNH Industrial, support flex- flexibility of work patterns to continue Top and above: regular cleaning and PPE ible ways of working and boost employee beyond the end of the pandemic. “Of are standard practice at CNH Industrial's motivation, wellbeing, and work-life course, like every company, we are cur- sites. Below: CNH Industrial employees balance. Under the program, several carried out a total of 2.5 million days of rently working to identify and implement remote working in 2020 important projects were launched in the ideal balance between home and 2020. In Italy, the new remote working office working,” he says. initiative #ioLavoroAgile (I work flexibly) Fortunately, as Lorenzo Succio, Head focuses on increased flexibility in terms of HR Service Delivery Europe, points out, of location, working hours, the right to the Company had been rolling out pilot disconnect, and the option to work schemes for remote working since 2016. remotely up to 12 days a month. “It was much less of a jump for us than Similar programs were launched in it was for other companies,” he explains. other countries. Go the Distance, on the “We knew that certain things would be other hand, is an online learning program a challenge, like ensuring everyone had that offers CNH Industrial employees a the right computer equipment. But for us variety of training resources across four it was more a matter of scaling up rather topics: Virtual Work and Collaboration; than an entirely new experience.” Emotional Intelligence; Navigating Uncertainty; and Stress Management. The pros and cons of New Normal projects and initiatives will remote working continue to be launched in 2021 and Despite the initial enthusiasm and team- beyond in preparation for the workplace work that allowed home working to of the future. function well for CNH Industrial, the It is likely that the pandemic has novelty has worn off after a combined changed the workplace and ways of total of 2.5 million days of remote work- working for good. Employees have been ing in 2020. offered flexibility, and in return they “At first, people saw working from have worked very hard through a hugely home both as a necessity and an oppor- difficult time. tunity, but now it is starting to feel a little CNH Industrial recognizes the real importance like a constraint," says Moscheni. “At the of promoting a circular product life-cycle in beginning of 2020, our employees were which resources are used fully and for as long scared of the virus and they also enjoyed as possible, and products and materials are the novelty of working from home. But recovered and regenerated at the end of their as time has rolled on, they have become service lives. For this reason, the Company keen to get back to the office.” offers a range of products that can run on fuels On the plus side, working from home derived from renewable sources, and is com- cut out commuting and the carbon emis- mitted to adopting sustainability criteria from sions associated with traveling to work. the design stage in order to develop more In Europe alone, around 15,000 employ- environmentally friendly products. To maximize ees have avoided more than 26 million product life, CNH Industrial also offers its km (16.15 million miles) of commuting customers a range of remanufactured spare since the start of the pandemic. The parts, in line with its circular economy approach. Company estimated that each employee In manufacturing processes, particular emphasis has saved 51 hours or six working days is given to improvements that increase waste in commuting time and around 200kg of CNH Industrial recovery and reuse. CO� in carbon emissions. supports the SDGs

26 | CNH INDUSTRIAL – A SUSTAINABLE YEAR CNH INDUSTRIAL – A SUSTAINABLE YEAR | 27 LIFE-CYCLE STUDIES SHAPING THE ENGINE OF THE FUTURE

By accurately calculating the carbon footprint of the full life-cycle of its engines, FPT Industrial imagines a roadmap to reduce emissions and plan its sustainable transformation The Company already knew that the Certification and recognition majority of an engine’s carbon footprint The first LCA on the 3-liter F1C diesel When you know where you’re starting derived from field use, but the assess- engine was instrumental in securing ISO/ from it’s much easier to plan where you’re ments showed that this accounted TS 14067 certification in 2014. Since then, going. This is the fundamental motiva- for almost 100 percent. Clearly, if further LCAs have estimated the CO₂ tion behind assessing the environmental FPT Industrial was going to cut the emissions impact of a product over its impact of FPT Industrial’s diesel engines carbon footprint it would have to concen- entire life-cycle. These calculations have throughout their life-cycle, from the raw trate on how the engines worked. strengthened the “life-cycle perspective” materials that go into making an engine, “Sustainability is a big enabler for approach, first introduced in 2015 in through manufacturing and shipping, to CNH Industrial. It’s a competitive advan- response to the requirements of ISO 14001, the emissions released during its useful tage. These studies have allowed us to which regulates environmental manage- life, and even engine disposal. look at every component that makes up ment plans. The resulting software is now Far left: FPT Industrial's plant in Bourbon- “Life-cycle assessment [LCA] studies an engine. This way of thinking raises being used to help plan how to reduce Lancy, France. Top left: FPT Industrial's are helping us fulfill our vision of power- awareness with everyone involved in carbon footprints for engines and compo- Cursor 13 engine. Top right: the plant in Bourbon-Lancy where the Cursor 13 is built. ing sustainable transformation by design, development and manufacturing nents produced at three FPT Industrial Above: the New Holland Agriculture quantifying the total environmental about how to make our engines more plants: Bourbon-Lancy; Turin Engine, for CR9.90 combine harvester impact of the engines we make. This allows efficient and environmentally friendly,” medium-sized engines; and Turin us to work out where we need to focus to explains Rodonò. Driveline, for transmissions and axles. reduce that impact most effectively,” says Collecting the necessary data is rela- Besides helping it obtain these import- Davide Rodonò, Chief Engineer for the tively straightforward when it comes to ant certifications, the LCA approach is Cursor range at FPT Industrial, who devel- raw materials and manufacturing. helping the Company maintain its com- oped the Cursor 13 engine, built at the Knowing exactly how the engines are petitive advantage. “I believe we are plant in Bourbon-Lancy, France. used is a bit more complex. ahead in setting [life-cycle footprint “Some 90 percent of the combine fleet reduction] targets and having the best Assessing environmental impact is monitored via telematics once it has technology,” Rodonò says. LCA assessment started in 2014 as a left the plant. We get that data and ana- Data from the LCAs has enabled the pilot study with the 3-liter F1C diesel lyze it to work out emissions levels. Then Company to pinpoint exactly where it “We look at all engine for IVECO’s light commercial we extrapolate final use using worst and needs to make changes to achieve its goal vehicles and the F1C NG engine, which best-case scenarios,” he explains. “We of sustainable transformation. Initially, the options to try runs on natural gas or biomethane. The know that combine harvesters, for exam- that will be reduction in fuel consump- new LCA study involved the Cursor 13 ple, can work in very dusty conditions, tion and lower emissions, but ultimately engine, which is mounted on the on hard soil and with different loads. It’s the Company plans to move toward to reduce the New Holland Agriculture CR9.90 +10 or –10 percent for the different pro- cleaner alternative propulsions. combine harvesters. The assessment was files. But even in the very worst-case “Such studies are relevant in raising run in strict collaboration with the scenarios we found that 100 percent of awareness about the impact that the carbon footprint” New Holland Agriculture team in our monitored engines have emissions carbon footprint has on organizations Zedelgem, Belgium, where CR combines below target.” such as ours and for our businesses and Davide Rodonò, Chief Engineer for are manufactured, and with the This kind of granular data is vital to customers. In addition, they highlight the the Cursor range at FPT Industrial FPT Industrial team in Bourbon-Lancy, get a clear overall life-cycle picture. “We role that each individual can play in France. The teams contributed by provid- look at all the options to try to reduce contributing to the reduction of carbon ing all the necessary data – that related to the carbon footprint. We try to involve emissions and in making a difference for both the manufacturing processes, and everyone in the design and develop- the future of the Company and of the also that connected with field operations. ment,” says Rodonò. planet,” says Rodonò.

28 | CNH INDUSTRIAL – A SUSTAINABLE YEAR CNH INDUSTRIAL – A SUSTAINABLE YEAR | 29 CNH Industrial’s tech incubator AGXTEND™ helps bring to market new technologies that allow farmers to make the most of resources, reduce their environmental impact, and improve yields PEOPLE

Inside a slurry tanker, cutting-edge arti- ficial intelligence (AI) and near-infrared ENGAGEMENT (NIR) sensor technology can now assess the chemical composition of the manure held there, and ensure exactly the right amount is spread on the fields to fertilize the crop most effectively. Such precision benefits both farmers and the environ- ment. For example, farmers use slurry as a source of nitrogen fertilizer. The main challenge is that nitrogen concentration in slurry is variable: if too much nitrogen is applied then the excess washes away AI-ENABLED and pollutes rivers and streams; if too little is used, crops will not grow to their full potential. PRECISION This is one of the technologies offered by AGXTEND™, the tech incubator set up by CNH Industrial in 2019. It helps FARMING start-ups and small companies scale up innovative products designed to make farming less resource-intensive, and to give them access to the broad customer PRODUCES base of CNH Industrial’s Case IH, STEYR and New Holland Agriculture brands. Keeping people engaged in Company projects The precision fertilizer system uses BETTER is the best way to reach set targets together. two products offered by AGXTEND™. CNH Industrial considers its people an essential The NIRXact infrared sensor determines resource. When operating in dynamic and the proportion of dry matter, nitrogen, RESULTS highly competitive industries, success is ammonia, phosphorous, and potassium achieved first and foremost through the talent contained in the slurry, and the and passion of skilled individuals. Indeed, the ManureXControl system works out the AGXTEND™ supported the Italian Company strongly believes that business right speed of distribution based on the company Dinamica Generale, which growth is made possible through personal composition of the slurry and what nutri- manufactures NIRXact, to improve the growth, which is why it invests its business gains ents the farmer wants to add to the soil. algorithm used by the near-infrared in the development of its people, creating a Both are controlled via the ISOBUS ter- sensor and helped it to collect more virtuous circle. minal common to many tractors, which slurry samples via CNH Industrial’s CNH Industrial adopts a responsible approach allows attachments made by any manu- network of farming customers in to the management of its entire supply chain, facturer to be connected to the vehicle Germany to train the algorithm further. from small local companies to large multi- and controlled via the same screen. AGXTEND™ also collected substantial national organizations, establishing relation- “The technology behind it is very com- customer feedback and defined ships that go beyond commercial transactions, plex, but what the farmer sees on the screen ManureXControl product specifications and fostering long-lasting and mutually satisfying collaborations with eminently qualified partners is really user-friendly,” says Médéric Top: cutting-edge technology to ensure customers get the maximum Sornay, Product Manager Precision ensures the exact amount of most out of their NIRXact sensors. These that share the Company’s principles. Farming Aftermarket Solutions at CNH slurry is spread on fields to products are available through selected Living and working in synergy with the sur- fertilize crops. Above: the rounding area, and collaborating on projects Industrial. “They enter the exact quantity NIRXact infrared sensor Case IH, STEYR and New Holland of the fertilizing element they want to Agriculture dealers, who have been that benefit the community, contribute to apply, and then the ManureXControl trained to support the technology. enhancing the satisfaction of employees (who system automatically adjusts the machine.” “Our aim is to support our customers often live close to plants) and their sense of The product was tested in 2020, officially to use resources efficiently and sustain- CNH Industrial loyalty to the Company, while bringing eco- presented in early 2021, and the first ably, and we add value by helping supports the SDGs nomic advantages to both the Company and customers have given positive feedback suppliers to build customer-centric the community. about how simple it is to use products,” says Sornay.

30 | CNH INDUSTRIAL – A SUSTAINABLE YEAR CNH INDUSTRIAL – A SUSTAINABLE YEAR | 31 EUROPE IVECO truck delivers boost to From crime to crops – supporting children’s organization in Germany SHOWING SOLIDARITY sustainable farming in Italy When IVECO Nord, a dealership for the Two brand new, state-of-the-art commercial vehicles brand, wanted to New Holland tractors will soon be at deliver a check for $25,000 from the fund work on land in Sicily that used to belong to a children’s organization in Hamburg, IN THE FIGHT AGAINST to criminal gangs. CNH Industrial and Germany, an impressive IVECO S-WAY New Holland Agriculture have joined truck was the obvious transport choice. environmental organization Legambiente The organization, called ARCHEN on their Evoluzione Terra (Evolution (Arks), helps children and young people As the impact of the pandemic spread across COVID-19 Earth) project, which aims to foster inno- in low-income neighborhoods and relies the world, CNH Industrial set up a $2 million fund vation in sustainable farming. on donations for 95 percent of their to help local communities in which it operates. The fund funds. Youngsters get a free lunch, help targeted initiatives in three key areas in line with both the with homework, and take part in after- Company’s business drivers and stakeholders’ priorities school activities. of food, health, and education The children had so much fun climb- ing into the truck, taking a close look and trying out all the controls, that some queued for a second – and even a third When the COVID-19 pandemic hit its – chance to sit in the driving seat. stakeholders and local communities in spring 2020, CNH Industrial took swift ASIA, MIDDLE EAST, AFRICA action. As well as offering support for Tablets for teaching in Turkey dealers, customers, and suppliers to meet As education went online in many coun- liquidity needs and to access government tries during the COVID-19 pandemic, funding, the Company set up a $2 countless pupils lacked the technology million Solidarity Fund in April to to keep up with lessons. In partnership support initiatives in food, health, and with the Aegean Contemporary education. These areas align with the Education Foundation, IVECO Turkey UN Sustainable Development Goals of: provided 72 tablets with internet access zero hunger; good health and well- to students in Izmir, Turkey, and sur- being; quality education; and reduced rounding regions. inequalities. The fund complemented other Breathing more easily in Ethiopia Company donations ranging from med- Case IH donated four ventilators to ical equipment, including ventilators, Ethiopia, where the capital Addis Ababa bottles of hand sanitizer, and personal had only 41 for the city’s entire popula- protective equipment (PPE), to electrical tion of around five million people. generators and ambulances. The donation included installation The $2 million was allocated to 83 Measures aimed at tackling food As part of the project, New Holland and training in the use of the life-saving initiatives with a range of short, medium shortages included help for food banks will supply tractors along with six machines, which were delivered in and long-term goals, as follows: and setting up food delivery networks. auto-guidance systems for precision unopened pallets to reduce the risk Educational initiatives included support farming to four co-operatives in the of infection. for students lacking resources for remote Libera Terra Mediterraneo consortium, “Each community served by the 18 related 37 related to learning, and enhancement of the which uses land confiscated from orga- Solidarity Fund has different needs, and to education food ($963,000) Company’s TechPro2 project, which trains nized crime for sustainable agriculture. we figured that in Ethiopia, life-saving ($490,400) students to become highly qualifiedtech - The brand will also support the purchase medical equipment would be the best nicians in the industrial vehicle sector. of advanced equipment such as an inno- choice for a donation,” says Marcin CNH Industrial also supported the vative seeder for organic farming. Ruppert, Case IH Marketing Manager for Telethon Foundation’s research into Carlo Lambro, New Holland Agriculture Africa and Middle East. SARS-CoV-2, to study the genetic brand President, says the project is a perfect makeup of COVID-19, and to understand fit with the Company’s strategy to help NORTH AMERICA its variants, face them and prevent new drive the transition to resource efficient Rescuing food and reducing hunger epidemiological crises. and sustainable agriculture. “It is very clear in the United States Piloted by national and regional to us that sustainability is the future. We The CNH Industrial Foundation donated Top: the Case IH plant in Benson, Minnesota, Top: the TechPro2 project trains students to Company committees, the Solidarity donated $12,000 to the Discovery Kids daycare become highly qualified technicians in the industrial have pioneered agriculture that respects $300,000 to Feeding America, the largest Fund proved a flexible way to respond center. Above: New Holland Agriculture created vehicle sector. Center: IVECO provided 72 tablets and protects the environment, continu- hunger-relief organization in the U.S.A. to specific needs around the world. What the Rede do Bem, which distributes products from to students in Izmir, Turkey. Above: Case IH ously pushing the boundaries of Feeding America estimates that small farmers to local communities in Brazil donated four ventilators to Ethiopia follows are examples of some of the technology to enable our customers to almost one in every six Americans could 28 related to health ($544,300) initiatives undertaken: produce more with less.” be forced to seek food aid as the

32 | CNH INDUSTRIAL – A SUSTAINABLE YEAR CNH INDUSTRIAL – A SUSTAINABLE YEAR | 33 Left: Fundimisa’s innovative funding project for affordable housing near its plant in Rio Grande do Sul in the South of Brazil. Above: Fundimisa employees are offered Above: the Comedores Y Merenderos initiative SOUTH AMERICA a plot of land at a heavily subsidized price distributed groceries and cleaning products to Emergency supplies in Argentina 7,500 vulnerable people in Argentina CNH Industrial provided and distrib- SUPPLIERS AWARDS uted food and medical supplies to needy Recycling to cut CO2 emissions COVID-19 crisis continues, while around families, social organizations and public Thanks to an innovative recycling process 21 percent of landfill volume is food hospitals in Córdoba and Buenos Aires, CNH Industrial’s – FOUNDATIONS developed by RecondOil, a start-up com- waste. Up to 13 million children are expe- Argentina. 2020 Suppliers pany that SKF acquired in 2019, the riencing food insecurity now, compared One of the social organizations sup- Excellence Awards AND FOOTPRINTS lubricating oil at the firm’s ball-bearing with 10 million before the pandemic. ported by the Company was Comedores honor two plant in São Paulo state is regularly trans- Feeding America helps get food that Y Merenderos, which distributed boxes companies in formed from grungy sump oil to a purified would otherwise go to waste from farms, of groceries and cleaning products to Brazil making a Every year, CNH Industrial celebrates its The company offers employees a plot lubricant the color of maple syrup. supermarkets and restaurants to food vulnerable families, thus benefiting big contribution best South American suppliers with of land at a heavily subsidized price on The lubricating oil used in working banks, and helps provide it to people in about 7,500 people. to their awards in a range of categories, including which to build a house. Employees make the metal into ball bearings is recovered need. It rescues around 3.5 billion pounds Moreover, CNH Industrial also communities and sustainability, technology, and quality. a down payment of about $1,000, paid and run through huge steel containers, of food every year. extended its help to four hospitals and the environment The Suppliers Excellence Awards were over two years, in monthly installments which use a double separation technol- “COVID-19 has sharply increased the five social assistance institutions, which launched in 2018 to honor and strengthen that amount to about 15 percent of their ogy to purify it without stripping out the number of American families facing food received PPE, contributing to the safety the company’s collaboration with its sup- salary. The design of their home is up additives that smooth industrial produc- insecurity and we are proud to be able to of 400 medical professionals. pliers. CNH Industrial believes that strong to them. Some opt for hi-tech, others tion processes. support the vital work of Feeding relationships in the supply chain, sharing go traditional. Recycling the oil brings huge benefits America to help people in need,” says Linking farmers and families in need best practices and know-how, are essential For employees, the cheap land brings in three key areas. It reduces production CNH Industrial Foundation President through Brazil’s Network for Good for delivering more competitive and inno- the cost of a house down to around of carbon dioxide (CO₂), cuts water con- Brian French. “At the same time, we are New Holland Agriculture worked with vative products, ensuring availability to $32,000, Fundimisa says, compared with sumption, and reduces the manufacturing contributing to reducing food waste and its network of over 200 dealers in Brazil meet demand and top quality. the national average of $100,000. Some costs of ball bearings, explains Claudinei helping to create sustainable solutions to create the Rede do Bem (Network for In 2020, two of the winners in the envi- 100 houses were built in the first project, Reche, SKF Group’s President for Latin that will benefit both the environment Good), which buys products from small ronment and social responsibility category which ran from 2007-17. And while you America. and our communities.” farmers and distributes them to local were companies based in Brazil that were need to have worked for Fundimisa for at Around 20,000 liters of oil are used communities. recognized for their outstanding sustain- least a year to qualify, you don’t have to daily at the plant and every drop is recy- Funds help Minnesota children’s New Holland started by donating 17 ability initiatives. Fundimisa, owner of the continue working with the company to cled. Recycling saves around 360,000 kg daycare center food parcels a month to each of its deal- largest foundry in the state of Rio Grande keep your home. Less than half of resi- of CO₂ from being released in the atmo- The Company’s Case IH agricultural erships, who then distributed them to the do Sul, in the south of the country, is help- dents now are employees, Fundimisa says. sphere and it also saves on water use, as manufacturing plant in Benson, local communities who were most in ing employees build their dream home. Fundimisa also wants to make sure four liters of water would be used to Minnesota, donated $12,000 to the need. Dealers liked the idea and decided SKF RecondOil is looking after the envi- residents enjoy a better quality of life all produce one liter of oil. Treating the oil Discovery Kids daycare center in the to double that number to 34, filling the ronment by recycling the lubricating oil it round, and to raise their awareness of costs about 25 percent less than buying local community. food parcels with fruit and vegetables uses in the manufacture of ball bearings. environmental issues. So the development new oil and SKF RecondOil estimates it Discovery Kids offers before and after purchased from small local producers. includes a soccer pitch, an organic garden is saving about $8 million a year. school care, giving much-needed support Rede do Bem also partnered with the The Home of Your Dreams full of home-grown vegetables, and an In South America, the company to parents trying to balance working Brazilian Association of New Holland A swanky modern house, all pale brick and orchard with more than 100 fruit trees. piloted this new technology at its plant from home with childcare needs, as Distributors (Abraforte), which enabled Top: RecondOil recycles metal with a flat roof, stands out among its Fundimisa bought a second plot in in Cajamar, São Paulo state, and is now lubricating oil at SKF’s ball-bearing many daycare centers and schools have it to distribute hygiene items and food plant in São Paulo state, Brazil. more traditional neighbors with their white 2012, about twice the size of the first. It expanding it into other plants in Brazil, been closed due to the pandemic. donated by local people via New Holland Above: the RecondOil process, walls and terracotta tiles. What all the will offer land for about 200 houses – Mexico, and Peru. The RecondOil process, “We are extremely proud to do our dealerships. “We take advantage of the which was first used in Sandvik, dwellings on this 50,000 square meter devel- enough for some 20 percent of current which was first employed in Sandvik, Sweden, can be employed in part to help our employees and our local great capillarity of our network, which many industrial plants that use opment in the agricultural town of Santo employees. Construction should be Sweden, can be used in pretty much any community get through this pandemic can receive these donations and distrib- lubricating oils Angelo have in common is that they are underway in 2021. industrial plant that uses lubricating oils. by supporting Discovery Kids with this ute them to people in situations of food dream homes for employees of Fundimisa. “We are setting an example. We “Winning a CNH Industrial award for donation from our Company’s Solidarity insecurity,” says Gustavo Taniguchi, The foundry has launched an innovative thought housing was needed and it was the RecondOil project makes us very proud Fund,” says Case IH’s Plant Manager Commercial Marketing Director at New funding project for affordable housing in the right thing to do,” says Paulo Ely, because it matches exactly our approach to Jason Hausauer. Holland Agriculture for South America. this area just 1,100 meters from its plant. General Manager for Brazil at Fundimisa. the circular economy,” Reche says.

34 | CNH INDUSTRIAL – A SUSTAINABLE YEAR CNH INDUSTRIAL – A SUSTAINABLE YEAR | 35 Nevertheless, some informal training took place when CASE dealers who were lending their equipment to Team Rubicon instructed volunteers on site while fol- NO LET-UP IN lowing the organization’s pandemic safety guidelines. “Anytime there’s a deployment of equipment, there’s usually someone from CASE or one of our dealers LOCKDOWN available to help answer questions or guide,” Campos adds. Looking ahead to the future, Campos says training will again be a priority: “We want to do as much as we can.”

Volunteer support To mark the anniversary of Team Rubicon’s first disaster response following “Mother Nature the devastating earthquake in Haiti in 2010, the organization hosted a recruit- certainly did not ment event called Go Day in January 2021, with corporate partners including CASE. “We launched an internal and external hold back just campaign using social media channels to support that recruitment effort,” says Campos. A link on CASE’s website made because there was it easy for employees to sign up. She spots a good fit between Team Rubicon’s mis- sion and the brand’s initiatives to help a pandemic” build communities.

A valuable partnership Athena Campos, Head of Market Development for CASE North America at CNH Industrial CASE sees real value in its partnership CASE Construction Equipment supports Team Rubicon in the U.S.A. with Team Rubicon as both new and exist- as the veteran volunteers tackle destruction caused by storms, fires, ing employees respond strongly to the and tornadoes that have rampaged across the country camaraderie of community support. “There is an intangible benefit and pride in working for a brand that does CASE Construction Equipment’s part- help with clearing routes into hurricane-hit “Whether in Louisiana or as far west more than just sell machinery. It motivates nership with disaster-response communities and removing debris. as California, CASE has always shown many of us in a much bigger way to give organization Team Rubicon stormed In Tennessee, Team Rubicon used up to support us,” says David Burke, SVP this Company our all, because we know ahead in 2020 despite a hit to training CASE equipment when they went in to of Programs and Field Operations at we are making an impact,” Campos says. caused by the COVID-19 pandemic. help clean up after a derecho – a whole Team Rubicon. “CASE has been integral The partnership inspires loyalty that Through the partnership, which started series of hurricane-force storms – followed in the development of our Heavy has a real effect on the bottom line, in 2015, CASE and its dealers provide by a tornado, tore across the middle of the Equipment Program and has been a Campos thinks, as there is a cost to heavy machinery and training to volun- state in May. Some of the worst damage consistent partner in every step of the recruiting, hiring, and retaining employ- teers who work with experienced was around Nashville, where, according disaster cycle from mitigation to rebuild.” ees. Many dealers lend their equipment military veterans to speedily tackle to the National Weather Service, winds of at no cost, in addition to volunteering large-scale disasters. up to 80 miles per hour knocked out COVID-19 hits training time and “elbow grease.” “Mother Nature certainly did not hold power to over 130,000 customers, making CASE has run training sessions for Team CASE made a significant investment back just because there was a pandemic,” it the worst power outage on record. Rubicon volunteers every year since the in the partnership by donating a special says Athena Campos, Head of Market Hurricane Laura hit records when it partnership began in 2015. In 2019, there edition of its most powerful skid-steer Development for CASE North America smashed across Louisiana in August were 16 formal training events. In 2020, loader – the SV340 – to Team Rubicon in at CNH Industrial. “There were a number 2020, then Hurricane Delta, close on its CASE and Team Rubicon managed just 2017, which the organization nicknamed of disasters this year, in addition to heels in October, matched its ferocity. one, early in the year. The Beast. COVID-19, which just added to the chaos “The hurricane response in Lake “It’s very difficult to do online training “This is also an employee attraction of the new decade.” Charles, Louisiana, was probably one of with equipment, so all of our training is tool. Research shows that the next gener- the longest deployments we’ve ever sup- in person,” Campos explains. That, of ations are even more compelled to work Record-breaking hurricanes Top and above: CASE Construction ported with Team Rubicon. We had Equipment provides Team Rubicon with course, had to be suspended as social for organizations that can demonstrate a CASE provided excavators, skid steers and equipment in place for almost three excavators, skid steers and compact track distancing was introduced to stem the purpose beyond just turning a profit,” compact track loaders to Team Rubicon to months,” Campos says. loaders to help hurricane-hit communities spread of the pandemic. says Campos.

36 | CNH INDUSTRIAL – A SUSTAINABLE YEAR CNH INDUSTRIAL – A SUSTAINABLE YEAR | 37 “It is not necessary to be perfect in everything that you do. It’s about man- STRENGTHENING aging your personal as well as your “We are working day- professional life,” says Alok Gupta, Head of Learning & Development at COMMITMENT TO by-day to increase the CNH Industrial India. The Company also ran a series of well- being initiatives, most of them as online DIVERSITY & awareness of diversity workshops because of the difficult situa- tion generated by the pandemic. They included yoga classes and webinars on INCLUSION and inclusion in mindfulness, stress management, uncon- scious bias, and more. INITIATIVES our Company” Supporting the next generation In early March 2020, celebrations for Priyanka Srivastava, Head of Talent International Women’s Day were a big Development for CNH Industrial in India team effort. From the corporate office in CNH Industrial has set clear diversity and inclusion targets covering training and Gurgaon, south-west of Delhi, to Pune, employment across its operations worldwide. In India, for example, multiple initiatives further south, women took part in ses- were launched in 2020 to support female workers, and more will be developed in 2021 sions dedicated to health and exercise. In early 2021, seven young women took up apprenticeships at CNH Industrial’s plant in Greater Noida and a further six CNH Industrial is increasingly committed Development, in order to frame the D&I in Pune. In virtual sessions during to creating a truly diverse and inclusive strategy, Commitment Statements, set International Women’s Day this year, workplace where everyone benefits from long-term results, and accelerate results. they were advised and mentored by equal opportunities based on their Strong progress was achieved in 2020. long-standing female employees from abilities and skills. Corporate policies on The number of women participating in both plants. this topic are aligned with UN Sustainable leadership and development initiatives CNH Industrial is also working to Development Goals 3 (good health and increased by 40 percent compared to 2019, combat gender and other social stereo- wellbeing), 5 (gender equality), and 10 and all senior leaders and first-line types among young people. Its Junior (reduced inequalities). managers took part in workshops focused Achievers Awards recognize outstanding Diversity and inclusion are fundamental on unconscious bias and inclusion. achievements accomplished by the family elements of our Company’s success. They Many Company initiatives were imple- members of CNH Industrial’s employees. are vitally important to reach our goals of mented throughout the year to promote The awards honored 59 young people for fostering an open and supportive culture, and build awareness of the importance of Championing female empowerment their skills in areas including sports, while continuously improving perfor- a diverse and inclusive workforce. Multiple initiatives have been launched music, and education. In August 2020, the mance. By welcoming diverse perspectives, to recognize women’s contribution, both Junior Achievers Awards were held vir- we can boost innovation and creativity, and Tackling gender imbalance in India at work and in the home. tually in India for the first time, due to the better serve our customers. According to World Bank data, women CNH Industrial in India set up a COVID-19 pandemic. Among the partici- Our people are committed to adopt- account for little more than 20 percent of Prevention of Sexual Harassment (PoSH) pants honored were young girls with ing behaviors that promote equity and India’s workforce, compared with 46 committee, in accordance with Indian exceptional talents – Tanvi Kanodia, who pursue a workplace where all feel wel- percent in the United States and 43 per- Above: CNH Industrial in regulations. It listens to employee griev- is a certified coder at the age of seven, comed, included, and valued. cent in China. India runs diversity and ances and has an outside legal adviser. It and Ashima Khanna, a young woman As a result, to further strengthen diver- “We are essentially a male-dominated inclusion awareness also ran awareness training for staff. who received a scholarship for engineer- training for staff. sity and inclusion (D&I) efforts and industry, but we are working day-by-day Above right and left: Working women often struggle to meet ing studies. outcomes, in 2020, the Company set its to increase the awareness of diversity and International Women’s the burden of expectations when simul- CNH Industrial will build on these D&I targets across all operations to be inclusion in our Company,” says Priyanka Day celebrations at taneously running a home and holding initiatives in 2021. A year-long program the Gurgaon office achieved by the end of 2024. These include Srivastava, Head of Talent Development in March 2020 down a full-time job. One key corporate of D&I initiatives has been drawn up, training on D&I for all employees and for CNH Industrial in India. initiative was a virtual program for female which includes awareness sessions for all increasing the number of women manag- CNH Industrial is taking action in its employees and the spouses of workers employees, fun sessions for children, and ers by 50 percent compared with 2019. In Indian operations to address this imbal- called “Superwoman Syndrome,” which a host of wellness activities, including addition, the Company aims at involving ance. The Company’s human resources helps them understand the importance of yoga, mental health, emotional wellbeing, 15 percent more women in leadership team in India was among those taking part taking care of their own mental and emo- and looking after yourself outside work. initiatives year-on-year. In 2020, in a Company-wide virtual summit on tional wellbeing. Women were encouraged “We are thinking differently in a CNH Industrial set up a D&I task force D&I on September 25, 2020. Several to “take back” some of their power and changing world. You can see clearly the consisting of four members of the Senior employees have now been identified as were taught that being perfect in every shift that CNH Industrial has made con- Leadership Team, the Head of “D&I Champions” and more will be added role – office work, housework, childcare, sciously and deliberately with its D&I Sustainability and the Head of Talent to promote increased awareness on D&I. cooking – could lead to burn-out. initiatives,” Srivastava says.

38 | CNH INDUSTRIAL – A SUSTAINABLE YEAR CNH INDUSTRIAL – A SUSTAINABLE YEAR | 39 ANN AL REP ORT

Global Corporate Communications Publications A SUSTAINABLE E-mail: [email protected] YEAR www.cnhindustrial.com 2020