Sustainability Report 2018 Powering Progress Table Together Through of Contents Sustainability
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Sustainability Report 2018 Powering Progress Table Together through of Contents Sustainability This first edition of the MARELLI Sustainability Report marks • Top Commitment 03 the beginning of a new phase, with the two companies • Calsonic Kansei Sustainability Report 06 Calsonic Kansei and Magneti Marelli united since May 2019, • Magneti Marelli Sustainability Magazine: Start 06 40 forming one new industrial entity, MARELLI. As MARELLI, the new global entity is a leading player in the industry, positioned as one of the world’s largest independent automotive suppliers, with 62,000 employees and 170 facilities and R&D centers across the world. Within this publication we host the sustainability reports of Calsonic Kansei and Magneti Marelli for the period 2018. During this period each company operated as a separate entity from what is now the MARELLI group, with different reporting boundaries, metrics and standards of reference. For Calsonic Kansei, the reporting period within this report covers 1 April 2018 – 31 March 2019. For Magneti Marelli, the reporting period covers 1 January 2018 – 31 December 2018. Although integration of our two companies has only just begun, we chose to present the reports in one for the purpose of transparency and ease of reference for our many stakeholders. Through the reports we aim to display our commitment to the ongoing compliance and investment in sustainability practices under the global brand, MARELLI. As part of the ongoing integration of MARELLI, we will ensure progressive alignment of strategies, metrics and reporting methods. In future years, we are excited to report one single MARELLI sustainability policy and commitments. 2 3 Sustainability Report 2019 Sustainability Report 2019 in mindset is prompted by a growing need to address climate change caused by CO² emissions and more demand for shared mobility and connectivity. eaing in sustainability with rout ortfolio esign an sill At the MARELLI Group, we recognize that our own product portfolio must provide a strong mix of established and new technologies to meet the needs of the evolving environment. Our existing competitive product line will continue to prove critical going forward and we will compliment this through ongoing investment in research and development in order to respond to meet the changes in consumer demand. ealiing sustainable obility ia our thought leaershi I believe that, in particular, electrification of the powertrain and the pursuit of zero-emission vehicles will gather pace. We want to be an industry leader, not a follower. For that, we This is an area where we are very confident that we can make must clearly communicate our vision and future direction a real difference in leading the transition to a greener future. clearly, both internally and to communities. Sustainability will Autonomous driving is another key trend likely to accelerate form an important part of our combined group strategy as in the years ahead. The MARELLI Group can support the we move forward in future years. The vision we project, delivery of safe, comfortable autonomous driving for people targets we set, and plans we implement will be important with various needs and preferences through our cutting-edge signals showing how we intend to contribute to fundamental technologies, human centered designs and comprehensive and needed changes in society. Consistent with our current system solutions. Our safety-related technologies will also be approach, MARELLI will align its own Sustainability activities integral to this entire development. to the United Nations’ Sustainable Development Goals. tiliing our global resene to be a green ioneer I believe that there should be no compromise between the global growth strategy of the MARELLI Group and the move As a leading production company with a large number of towards safer, cleaner, zero-emissions vehicles. It is this manufacturing plants across the world, we are well placed to message that, with hope and excitement, I share with my make significant steps towards greater sustainability. colleagues, business partners, customers, and society. While we keep driving innovation in our manufacturing processes As part of our integration work, we are conscious of the need for to achieve state-of-the-art environmental performance, we a clear vision and implementation program for how we want to can grow our business with products and services that help improve our environmental performance, including via realize a more sustainable form of mobility for the world. To Coitent around €14.6 billion (approximately ¥1825 billion*¹), the purchasing and logistics. As a combined company, we are MARELLI Group becomes one of the top 10 largest independent reviewing our environmental strategies to ensure we set *1 Based on Fiscal 2018 figures. Converted at an exchange rate of €1= ¥125 *2 Monozukuri refers to the creation of value in all respects, through T SST automotive suppliers in the world. Our aim is to build on this ourselves progressive targets helping to tackle climate change manufacturing fine products and providing excellent services in a timely manner SSS T T CT position in the coming years to create a strong and sustainable related issues through recycling, resource efficiency, reduction of to meet customers’ expectations. business, delivering long-term value to all of our stakeholders. pollutants, and protection of ecosystems. T ST S ea olenius The automotive industry is undergoing unprecedented change. Now is the time to ask ourselves what we, as the MARELLI Group, CO Presient an rou C Advances in technology and changing consumer demand fueled can further do to raise our environmental performance. ² rou by environmental considerations are driving the development of emissions and their impact on climate change is among the sustainable, socially responsible vehicles. As a global automotive most critical issues not only for our industry, but also for supplier, inspired by our strong heritage in innovation and humanity. Addressing it is therefore of key interest to our Monozukuri*² we take our role in contributing to a sustainable stakeholders, and increasingly, our customers. society very seriously. Through ongoing investment in new awn for the inustry an us sustainable technologies and innovation, we see a real Today, we consider sustainability as impacting not only industry opportunity to help shape the future of mobility. trends, but also a new set of political priorities that may affect 2019 marked a huge milestone for our company as Calsonic entire social systems in many parts of the world. We need a Kansei and Magneti Marelli formally joined forces to create Sustainability tren riing ush for lean share ars growth strategy and a mindset that incorporates this one of the world’s leading global independent automotive development. I do not see these changes in our relationship with suppliers. In coming together under the global brand, Central to what is considered the once-in-a-century the environment and each other as something we should try to MARELLI, we can compete even more effectively on a global transformation of the global automobile marketplace is the avoid or merely react to; rather they represent a new set of scale, better serving our customers, employees, suppliers and development of Connected, Autonomous, Shared and Electric innovation drivers that will help separate winners from losers in many stakeholders across the world within the many (CASE) mobility. Consumer attitudes towards the purpose, value, the future global automotive market. communities we operate. With post-integration net sales of and use of cars is changing. One of the critical factors in this shift Sustainable Development Goals (SDGs) 03 4 5 04 A PART OF Calsonic Kansei Sustainability Report Summary RN A VE N C O E G ON M VIR EN N T E C IET SO Y Calsonic Kansei Corporation R&D Center, Headquarters 2-1917 Nisshin-cho, Kita-ku, Saitama City, Saitama 331-8501, Japan Global Communication Department 2019 www.calsonickansei.co.jp/en/ 6 7 Sustainability Report 2019 Sustainability Report 2019 Creating New Value through Sustainability Table of Contents 09-10 At a Glance Social 11-12 Sustainable Value Creation Process 27 Improve ESG in Supply Chain 13-14 Medium-term Business Plan 28 Create Social Values Through Innovations 15-20 Our Business Units and Sustainability 29 Respecting Human Rights 21 CSR Policy and Key CSR Issues 30 Occupational Health and Safety / Promoting Diversity 31 Promoting Work-life Balance 22 ESG Initiatives 32 Human Resources Development / Productivity Improvement 23-36 Highlights 33 Improvement of Customer Satisfaction / Quality Improvement 34 Promotion of Social Contribution Activities Environment 23 Green Challenge 2030 (Medium to Long-term Environmental Goals) Governance 24 Climate Change 35 Corporate Governance / ESG Risk Management 25 Resources Recycling 36 Strengthening Compliance / Strengthening Information Security 26 Environmental Pollution and Biodiversity 37 Company Overview / Financial Highlight 38 Editorial Policy 07 8 9 08 Sustainability Report 2019 Sustainability Report 2019 At a Glance Consolidated Sales Share of Consolidated Sales by Region Japan 36.6 % Americas 27.5 % Asia 24.3 % Europe 8,921Billion Yen 11.6 % RUSSIA U.K. GERMANY U.S.A. FRANCE ROMANIA KOREA SPAIN CHINA JAPAN INDIA MYANMAR THAILAND MEXICO MALAYSIA BRAZIL Regional Head Offices Development Production Offices, etc. R&D / Global HQ Testing and Research / Production Engineering Number of Employees (Consolidated) Number of Employees