Sustainability Report

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Sustainability Report 2011 Sustainability Report Economic, Environmental and Social Responsibility 2011 Sustainability Report Economic, Environmental and Social Responsibility For an appropriate interpretation of the information contained in this Sustainability Report, please refer to the Guide to the Report on pages 230-231. Abarth, Alfa Romeo, Chrysler, Dodge, Ferrari, Fiat, Fiat Professional, Jeep, Lancia, Maserati, Mopar, Ram, and SRT are registered trademarks of companies wholly or majority owned by Fiat S.p.A. Contents 2011 3 Sustainability Report Contents The commitment of the Group Social dimension 6 Letter from the Chairman 143 Employees 7 Letter from the Chief Executive Officer 143 Workforce insights 10 A year of sustainability: facts and figures 147 Management and development 12 Sustainability Plan 160 Diversity and equal opportunity 167 Work-life balance Economic dimension 172 Occupational Health and Safety 47 Group profile 184 Industrial relations 48 Presence in the world 193 Product safety 50 Automobiles 193 Group centers of competence 56 Components and production systems 193 Integrated approach to safety 58 Map of principal international agreements 201 Dealer and service network 60 Corporate governance 201 Training for the network 60 Corporate governance timeline 204 Reducing environmental impact 62 Code of Conduct 205 Customers 66 Relationships with organizations, associations 205 Customer relationship and political parties 207 Recall campaigns 70 Risk Management 208 Transparency in communication 74 Sustainability governance 209 Vehicle quality 74 Sustainability-focused entities 210 Suppliers 76 Sustainability indexes and ratings 210 Supplier profile 77 Socially Responsible Investors 212 Supply chain standards 79 Sustainable innovation 215 Ongoing dialogue with suppliers 80 Open innovation 219 Communities 88 Innovation for clean technology 219 Group support for communities Environmental dimension Appendix 93 Ecological mobility 230 Guide to the Report 93 360 degree sustainable mobility 230 Definitions, Methodology and Scope 107 Recovery Recycling Reuse 232 Materiality and stakeholder inclusiveness 113 Plants and non-manufacturing processes 236 Further details 113 Environmental Management System 236 Economic dimension 117 Environmental performance and monitoring systems 239 Environmental dimension 132 Logistics 246 Social dimension 138 Non-manufacturing processes 252 Glossary 254 Statements of assurance 256 Index of GRI-G3.1 content 260 Fiat on social networks 261 Other corporate publications and web 262 Contacts ©iStockphoto.com/Mlenny Photography ©iStockphoto.com/Mlenny If you do not know where you are going, every road will get you nowhere Henry A. Kissinger The commitment of the Group 6 Letter from the Chairman 7 Letter from the Chief Executive Officer 10 A year of sustainability: facts and figures 12 Sustainability Plan 6 The Letter from commitment the Chairman of the Group Letter from the Chairman Dear Stakeholders, 2011 was a very positive year for our Group not only in terms of financial results, but also in relation to environmental and social responsibility. This year for the first time – following separation of the tractor, truck and construction equipment activities – the Report is focused on the automobile sector. The facts and figures on the following pages demonstrate improvements we have made during the year, such as the significant reductions in CO2 emissions and water consumption at Fiat and Chrysler plants. We also invested more in training and safety and strengthened ties with local communities by increasing our participation in numerous social projects. No less important was the recognition from others, which confirms our continued commitment. For the third consecutive year, Fiat S.p.A. was included in the prestigious Dow Jones Sustainability World and Europe Indexes. In addition, Fiat brand cars have been recognized for the fifth year in a row for the lowest average CO2 emissions among the best-selling brands in Europe. We also remained leader in the natural gas vehicle segment, where Fiat is by far the largest European producer. The Sustainability Plan presented in the pages that follow provides all the details. It reports results achieved and, more importantly, in the right-hand column it shows our targets for the next few years. For us, this is the essence of the Report because it is a statement of our commitment – a commitment that applies to all of our activities around the world – to pursue development that is sustainable over time and brings benefits both to our people and the environment. /s/ John Elkann John Elkann CHAIRMAN Letter from The 7 the Chief commitment Executive Officer of the Group Letter from the Chief Executive Officer Dear Stakeholders, This is the first year that we are reporting on the results of the integration between Fiat and Chrysler, and our shared commitment to sustainable development. The integration process actually began from the moment we initiated our partnership and it has been a very natural process given our shared values and determination to grow responsibly and in harmony with the environment and local communities. Sustainability is an integral part of how both organizations do business. Expanding the scope of analysis and reporting to include Chrysler Group and, at the same time, adopting the updated reporting standards published by GRI in March 2011 required a great deal of effort by the entire organization. We took on this challenge because we firmly believe that continuing to set the bar even higher – not just in our daily activities, but also in the quality and quantity of the information we report – is part of the responsibility we have towards you, our stakeholders. The “open road” theme chosen for the 2011 Sustainability Report is a suiting metaphor for the journey of discovery, challenge and continuous improvement that Fiat and Chrysler have embarked on together. Far from making us complacent, the excellent results we have delivered so far have actually spurred us to set even more ambitious targets. Analysts and investors have also recognized the level of our commitment and performance. For the third consecutive year, Fiat S.p.A. was included in the prestigious Dow Jones Sustainability World and Europe Indexes, which only admit companies that are best-in-class in terms of economic, environmental and social performance. Fiat was also included in the Global 500 Carbon Disclosure Leadership Index (CDLI) and Carbon Performance Leadership Index (CPLI), in recognition of our efforts toward combating climate change, and was the only Italian company among just 23 companies to be included in both indexes. In addition, in December Fiat became one of a select number of companies included in the ASPI Eurozone® Index on the basis of research conducted by Vigeo, European leader in assessing organizations on environmental, social and governance issues. As further evidence of stakeholder confidence in our approach, the level of our free float shares held by Socially Responsible Investors has increased to 8.7%. 8 The Letter from commitment the Chief of the Group Executive Officer A culture of responsibility is integral to Fiat-Chrysler’s business model, because we believe that the true value of a multi-national organization such as ours is also determined by its level of environmental awareness, respect for people, fair and transparent conduct in commercial relationships and positive contribution to local communities. Financial success can only be sustainable if it is achieved ethically. Together with the Group’s top management, more than 197,000 people around the world put those values into practice every day through their commitment and dedication to making Fiat-Chrysler a strong and competitive group, while never losing sight of our moral obligation to contribute to the well-being of society as a whole and to the construction of a better future. That side of our organization is a rather private side seldom reported on in the press, but it involves people at every level, working away without fanfare, who understand the responsibilities associated with our activities, who give this organization its good name and carry its values with them out into the community. I want to thank all the men and women in our Group for their professional and personal contribution, for the dedication and passion that they contribute every day to the achievement of a higher goal. 2011 was a year of significant achievement in a number of areas. On the environmental front, the Group continued to develop and apply concrete and affordable solutions for reducing fuel consumption and vehicle emissions, while maintaining high safety standards. The union between Fiat and Chrysler has enabled us to strengthen our focus on sustainable mobility by leveraging each partner’s strengths. Fiat is a recognized leader in high-efficiency engine technologies, while Chrysler Group, with the significant know-how developed in recent years, has been designated as the center of expertise for hybrid and electric technologies. In Europe, Fiat has been confirmed for the fifth consecutive year as the leader among the best-selling brands for cars with the lowest average CO2 emissions levels and Fiat Group Automobiles continued its leadership in the natural gas market. In the United States, Chrysler Group will begin production in 2012 of a fully-electric version of the Fiat 500 for the North American market. Fiat Powertrain has continued development of solutions to lower the environmental footprint of vehicles. Application of second generation MultiJet
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