2020 SUSTAINABILITY REPORT
FCA N.V. SCOPE Contents
Message to Stakeholders 3 Products and Customers 68
Message from the Chairman and the CEO 3 Research and Development 69 2020 Sustainability Highlights 5 Efficient Powertrains and Technologies 72 Sustainable Design 84 Customer Focus 88
Business Model and Governance 7 Production and Responsible Sourcing 96
Business Model and Value Chain 8 Production 97 Materiality and Stakeholder Engagement 12 Responsible Sourcing 104 Sustainability Targets 17 Corporate Governance 31 Risk Management 41
Employees and Community 49 Supplemental Information 115
Employees 50 Facts & Figures 116 Community 63 Definitions, Methodology and Scope 148 Reporting Standards and Frameworks 150 Independent Auditor’s Report 166 Forward-Looking Statements 167
About this Report 168 2020 SUSTAINABILITY REPORT 2 Message to Stakeholders Message from the Chairman and the CEO courage andperseverance. childhood hunger in the United States – is a true testament to their extraordinary spirit, to first responders; anddonating over15millionmealstoschool-agechildren tohelpend a dailyproduction ofsome 23millionmasksinItaly;providing vehiclesandambulances in Argentina;makingandrepairing ventilators;producing facemasksandshields,with assistance around theworld –buildingtwofullyequippedfieldhospitalsinBrazilandone The commitmentandsolidarityFCA’s people haveshownwhenproviding muchneeded provide supporttofirst responders andhealthcare workersacross theglobe. the financialhealthofbusiness.Italsosteppedintohelpour localcommunitiesand the societieswhere they live,itsupportedourcustomersanddealers,protected Not onlydidFCAmovequicklytosafeguard thehealthandwelfare ofitspeopleand crisis reveal thetruecharacterofanorganizationanditspeople. and emotionaltollonoursocietiesasitwent.But2020alsoreminded usthattimesof and upsetthesenseofnormalityweoftentookforgranted,takingitshuman,economic As thepandemicspread across theworld,itchangedourlives,impactedrelationships totally unexpectedandthatnothingshouldsurpriseus. we believewe’vethoughtofandplannedforeverything,mustalwaysbeready forthe It wasmore challengingthananybodycouldeverhaveimagined,proving thatevenwhen in thehistorybooks,and2020willundoubtedlyjointhatlist. Some yearsare soeventfulthatweknowaslivethrough themthattheywillgodown the ChairmanandCEO Message from
3 2020 SUSTAINABILITY REPORT Message to Stakeholders Message from the Chairman and the CEO automakers eachcontributingarichheritage,iconicbrands,and talentedpeople. the creation ofStellantismarkedanewchapterpowered bythecombinationoftwo Based onbothfoundingcompanies’trackrecords of performanceandcompetitivespirit, with astrong NetFinancialPosition. weather thistoughyear, andmaintainahighlevel ofprofitability inits Automotivebusiness, PSA achievedaremarkable performance:itsfocusonexecutionandagilityalloweditto Even ifits2020consolidatedresults are notincludedinthepagesofthisReport,Groupe Groupe PSAsuccessfullynavigated thesamechallengingyear. we are very happy that hewill continue to play afundamental role inthe future of Stellantis. at large,andalwaysensuringthatthecompanyperformedtohigheststandards. And during suchachallengingyear, protecting itsemployeesandsupportingthecommunity to MikeManleyandhisleadership.We wanttothankhimforguidingFCA,inparticular The factthatFCAentered thisnewandexcitingerainsuchrobust shapeisagreat tribute Stellantis inmid-January. capabilities, employees’commitment,strength andsolidfoundationsasittransitionedinto resilience ofFCA’s businessmodel,butitisalsothebestwaytofullycomprehend FCA’s outstanding performanceachievedduringthesecondhalf,notonlydemonstrates potential inamore normalizedenvironment. Thestrong closetotheyear, withthetruly delivered twoconsecutive record quarters,whichare aneloquentreflection ofitsoperating business environment hasbegun toshowimprovement inthesecondhalfofyear, FCA As lockdownrestrictions havebeengradually, ifunevenly, easedacross theworld,and Adjusted EBITof€3.7billionanda4.3%margin. FCA closed2020withstrong fullyearresults, despitetheimpactofCOVID-19,with track record ofexecutionanddeliverysolidfinancial foundations. the current perspectiveof acompanythatentered intothisnewventure withasustainable accomplishments of Stellantis N.V., which began life at the beginning of 2021, they provide While thepagesofthisyear’s Reportdonotyetrepresent theconsolidatedresults and Chairman /s/ March 4,2021 our extraordinary adventure. engagement aswenowmoveforward togetherasStellantisintothenextchapterof with usduringthismostdifficulttimeandforyourcontinued trust,support,and And we would also like to thank all of our shareholders and stakeholders for standing relentless hard workandresilience willbecrucialtoourfuture success. perseverance andcontinuingcontributionsaftersuchachallenging andpivotalyear. Their We would like to recognize and thank everyone in the Stellantis organization for their people around theworldand theshared valuesthatdriveusinthisnewjourney. them distinctivestrengths ofStellantis,relying onthetalent ofourmore than400,000 Diversity andinclusionare anintrinsicpartofourcompany’s fabric,andweintendtomake on thepathtocarbonneutralityacross ourproducts and footprint. change andcontributingtoadecarbonizedeconomybyengagingourtalentsassets This approach also involves our commitment to supporting the fight against climate provide sustainableandaffordable mobility. practices, conscientiously seeking the right balance in every choice we make as we our strategyandthatgrowth ambitionsare compatible withsustainabledevelopment As aglobalcompany, wewillalwaysstrivetoensure thatourESGfocusisembeddedinto environmental stewardship andfinancialperformance withsocial responsibility. We also believe that long-term success is achieved by linking economic growth with convenient andinnovativevehiclesservices. provide ourcustomerswithclean,safeandaffordable mobility, whileoffering distinctive, We willleveragethebenefitsofStellantisandourunmatchedcompetitiveadvantagesto capture theopportunitiesofneweraaheadus. company withthescale,resources, thediversityandknow-howtosuccessfully Stellantis represents oneoftheworld’s leadingautomakers,butmore importantlyitisa John Elkann
Chief ExecutiveOfficer Carlos T avares /s/
4 2020 SUSTAINABILITY REPORT 2020 Sustainability Highlights
~€37.8 189,500+ Customers in more million employees than 130 countries committed to benefit local communities
Ranked for the % of FCA’s third consecutive year in the 75 Operations Brazilian plants Refinitiv Diversity in countries 40 are Carbon & Inclusion Index in the global “Top 100 Most Neutral Diverse & Inclusive Companies”
€3.9 Billion in Research and Development Message to Stakeholders 2020 Sustainability Highlights 2020 SUSTAINABILITY REPORT 5 6 models achieved NCAP 5-star ratings
Launched the Signed agreement Launched the first phase of the world’s largest New Fiat 500, with ENGIE EPS to create FCA's first a JV in the e-Mobility sector to Vehicle-to-Grid "born electric" car offer a full suite of innovative pilot project services and solutions in Turin, Italy
Strengthened the
100% of plants Responsible Launched 7 models offering ISO 14001 Sourcing electric powertrains program to gain certified greater transparency options in the supply chain Message to Stakeholders 2020 Sustainability Highlights 2020 SUSTAINABILITY REPORT 6 Business Model and Governance
Business Model and Value Chain 8 Corporate Governance 31
Board Committees 32 Climate-related Governance 33 Materiality Sustainability Model 34 and Stakeholder Engagement 12 Code of Conduct 34 Engaging Stakeholders 15 Acting Responsibly 36 Engaging Employees 15 Human Rights 37 Engaging the Supply Chain 15 Environmental Protection 39 Engaging Other Stakeholders 16 Transacting Business Legally 39 Engaging Associations and Institutions 16 Legal Proceedings 40
Risk Management 41
Sustainability Targets 17 Enterprise Risk Management 42 Business Continuity Management 43 Loss Prevention Management 45 Business Model and Governance Business Model and Value Chain Stock Exchange onTuesday, January19,2021. Euronext in ParisonMonday, January18,2021,andonthe NewYork shares begantradingontheMercato Telematico AzionarioinMilanand completed thecombinationonJanuary 16,2021.Stellantis’common and receipt ofthefinal regulatory clearances,FCAandGroupe PSA of Directors ofStellantis.Followingtheapproval byshareholders and appointmentofthepreviously announcedmembersof theBoard matters, includingadoptionofthe Stellantis’ArticlesofAssociation January 4,2021.Theshareholders alsoapproved mergerrelated Meetings approved theirmerger transactiontocreate Stellantison Peugeot S.A.andFiatChryslerAutomobilesN.V. Shareholders' vehicles andservicesofunparalleledqualityinmore than130markets. to efficientlymeetandexceedconsumerexpectationsdeliver industrial operationsinnearly30countries,theCompanyhas ability as dedicatedmobility,With financeandpartsservicebrands. charging pickuptrucks,SUVsandlightcommercial vehicles,aswell luxury, premium andmainstream passengervehiclestohard- spirit, thebrandscoverfullspectrumofmarketsegmentsfrom visionaries whoinfusedthesemarques withpassionandacompetitive and conquered thepodiuminworldofmotorsport.Foundedby home toafullportfolioofstoriedbrandsthathavegracedtheroad aproud heritagestretchingstars”. With back125years,Stellantisis create Stellantis,whoseLatinroot “stello”means“to brighten with to amendcertaintermsoftheirbindingCombinationAgreement to merger oftheirbusinesses.During2020bothcompaniesagreed S.A. signedabindingCombinationAgreement providing fora50/50 In December2019,FiatChryslerAutomobilesN.V. andPeugeot THE SPIRITOFSTELLANTIS Read more use andeventualreuse ofmaterials. on reducing wasteinthevaluechainfrom vehicledesignthrough production, distribution, FCA incorporatedtheconceptofacircular economyintoourbusinessapproach, focusing not only which products and services we developed, but also how we developed them. Emerging trends, evolvingconsumerattitudesandregulatory requirements influence we operate. grow thebusinessbutalso ourcommitmenttotheenvironment andthecommunitieswhere We recognized thatourenvironmental andsocialactivitiesaffect notonlyouraspirationto connections with customers, employees, dealers, suppliers and communities, among others. and widevarietyofstakeholders.We aimedtocreate valuethrough our relationships and automotive industry's value chain and product offering, FCA impacted a large number partnerships withsuppliersanddealersonaglobalscale.Due tothecomplexity of the FCA had operations in 40countries,customersinmore than 130countries,andbusiness with third partyfinancialinstitutions. and rental servicesthrough oursubsidiaries,jointventures andcommercial arrangements Teksid andComaubrands.TheGroup alsoprovided retail anddealerfinancing,leasing In addition,FCAoperatedinthecomponentsandproduction systemssectorsunderthe brand. service and parts the vehicle Mopar, and designation the performance SRT Maserati, Ram, Lancia, Jeep, Professional, Fiat Fiat, Dodge, Chrysler, Romeo, Alfa development The Group’s centers. automotive were: brands Abarth, and research 40 than more and facilities 100 manufacturing than more vehicles, components and production systems worldwide through selling and distributing manufacturing, engineering, in designing, Automobiles was a automotive global Fiat Chrysler engaged group and Value Chain Business Model
8 2020 SUSTAINABILITY REPORT Business Model and Governance Business Model and Value Chain • • • • To accomplishtheseobjectives,theGroup focusedon: to create long-termvalueresponsibly. Our efforts toachieveprogress toward oursustainabilityobjectivesreflected ourcommitment responsibly. principles inoperations.Alloftheseelementswere anintegralpartofFCA’s modelofoperating investment in enabling processes and technologies; and the incorporation of circular economy that combinesindividualandcollectivecommitment;aneffective multi-stakeholderstrategy; pressing environmental andsocialissuescouldonly be achievedthrough anintegratedapproach Central to FCA’s approach was the belief that effective, lasting solutions to climate change and other •
constructive managementandpr ef a competitivepr safe andsustainablepr a gover fective communicationwithconsumers nance modelbasedontransparency andintegrity oduct offering andinnovativemobilitysolutions & Innovation Design oducts ofessional developmentofemployees Purchases • • Quantitative informationinthissectionrelates toyearendedDecember31,2020. bringing valuetotheCompany, toourcustomers,societyandtheenvironment. competes. Itillustrateshowinputswere convertedthrough theGroup's businessactivities, The followinggraphicspresent asimplifiedviewofthehighlycomplexindustryinwhichFCA Nations SustainableDevelopmentGoalssupportingthisAgenda. Sustainable Development.We operatedresponsibly tocontributetherelevant United today, asexpressed intheUnitedNationsTransforming ourWorld 2030 Agendafor to transitionamore sustainablefuture isoneofthe majorchallengesfacingtheworld Across ourvaluechain,FCAimpactedstakeholdersdirectly orindirectly. Theneed •
mutually beneficialr safe workingconditionsandr impacts ontheenvironment. r esponsible managementofmanufacturingandnon-manufacturingprocesses toreduce Production elationships withbusinesspartnersandlocalcommunities Use espect forhumanrights End-of-life
9 2020 SUSTAINABILITY REPORT Business Model and Governance Business Model and Value Chain • • • • • • • • • • MAJOR IMPACTS Design &Innovation
consumption inproduction processes Envir V Brand per Pr Customer satisfactionandloyalty V V V Innovation inpr Employee healthandsafetyinpr ehicle materialcompositionandend-of-life ehicle quality ehicle fueleconomyandemissions ehicle safety oduct competitivenessandreputation onmental impactandnaturalresource ception andvalue oducts andprocesses Purchases • • ect employmentinthird-party operations • • MAJOR IMPACTS
resource consumption communities Indir Local r W Indir orking conditionsforthird-party employees ect environmental impactand natural evenue forbusinesspartnersand oduction processes in research anddevelopment Approx. KEY INPUT registered 6,082 patentsandapplications AND SHARED VALUE GENERATED Read more €3.9 Billion ~€60 Billionintotalpurchases AND SHARED VALUE GENERATED which comprisesemi-manufactured goods 5.9 Miliontonsoftotalrawmaterials ~2,000 suppliersglobally KEY INPUT Read more are relevantduringthisphaseoftheValueChain: The followingUNSustainableDevelopmentGoals are relevantduringthisphaseoftheValueChain: The followingUNSustainableDevelopmentGoals 10 2020 SUSTAINABILITY REPORT Business Model and Governance Business Model and Value Chain • • • • • MAJOR IMPACTS Use • • ect employment • • MAJOR IMPACTS Production • €86.7 Billioninrevenue KEY INPUT
working teams across regions, Group companiesand T Pr consumption from direct operations Envir Employee developmentthr Employee safetyandworkingconditions operates Local r Dir Customer satisfactionandloyalty V access tomobility Social impactsontraffic,r echnological andknow-howsharing ehicle fuelconsumptionandemissions ocess innovation onmental impactandnaturalresource evenue forcommunitieswhere FCA oad safetyand ough training KEY INPUT through millions ofpeoplearound the world FCA grantsaccesstomobilityfor AND SHARED VALUE GENERATED 16 Millionm consumed atGroup plantsworldwide 36 MillionGJofenergy buildings proving grounds, warehouses andoffice other properties: partsdistribution centers, 40 research centersworldwide,aswell 100 manufacturingfacilitiesandmore than 189,512 employeesworkinginmore than delivered tocustomers (withdrawal) atGroup plantsworldwide are relevantduringthisphaseoftheValueChain: The followingUNSustainableDevelopmentGoals Read more 3.4 million newFCAvehicles 3 ofwaterconsumed consumers worldwide Vehicles thatare discarded by KEY INPUT • • MAJOR IMPACTS End-of-life 1.8 Billionm vs 2019 at Group plants,adecrease of16% AND SHARED VALUE GENERATED 2.9 MilliontonsofCO time andefforts as compensationforemployee €10.2 0.6 Milliontonsofwastegenerated recycling indexof99% Group plantsworldwidewitha Read more
management andremanufacturing dismantling, recycling, disposal battery end-of-life:wastegeneration, Envir sourced How rawmaterialsar Billion inpersonnelcosts onmental impactsofvehicleand 3 ofwatersavedat e originally 2
emissions are relevantduringthisphaseoftheValueChain: The followingUNSustainableDevelopment Goals of vehicleownershipforcustomers and componentsreduce thecost to extendtheusefullifeofmaterials component remanufacturing, inorder toward repairability, recycling and manufacture vehicleswith a view FCA strivestodesignand AND SHARED VALUE GENERATED are relevantduringthisphaseoftheValueChain: The followingUNSustainableDevelopmentGoals Read more 11 2020 SUSTAINABILITY REPORT Business Model and Governance Materiality and Stakeholder Engagement for the Company itself. Company the for and externally value social and economic environmental, generating from opportunities understand better us helping stakeholders, with dialogue and engagement continued our reinforces that key the is element analysis societal standards and expectations. The materiality and investors, for of interest information trends, industry values, corporate key risks, plan, global business Company the with along stakeholders from inputs FCAcombines analysis materiality our of efficiency To risks. emerging improve the understanding and to identifying critical is issues of material Monitoring Engagement Materiality andStakeholder UNITED NATIONS SUSTAINABLE DEVELOPMENTGOALS(SDGS) KEY FCAFIGURESSUPPORTING TOPICS MATERIAL 19
STAKEHOLDERS ENGAGED EXTERNAL 3,000+ 12 2020 SUSTAINABILITY REPORT Business Model and Governance Materiality and Stakeholder Engagement the riskmanagementframework. stakeholderswereexternal alsoconnectedtothekeyriskfactorsidentifiedby The areas confirmedduring thelatestassessmentas and relevant forinternal the latestupdateofFCA'sMaterialityDiagramwasundertaken in2019. Since 2020markstheendofourcurrent setoflong-termsustainabilitytargets, Materiality Background Paper. guidelines, the AA1000 Stakeholder Engagement Standard and the
reflect ourfocusinthis report whileothertopicsare covered inmore detailthrough otherchannels. of higherrelative importanceandimpacttobothFCAourstakeholders.Themostmaterialtopics All topicslisted on theMateriality Diagram are important, with those found intheupper-right being corner FCA MATERIALITY DIAGRAM RELATIVE IMPORTANCE TO STAKEHOLDERS DEVELOPMENT COMMUNITY CONSERVATION BIODIVERSITY ALTERNATIVE FUELS RESPONSIBLE SOURCING SUSTAINABLE DESIGN
WORKPLACE ATTRACTIVENESS
CYBERSECURITY ANDDATA PROTECTION EMISSIONS FROMOPERA WASTE MANAGEMENT RELATIVE IMPORTANCE TOFCA FCA MaterialityDiagram W ATER MANAGEMENT MOBILITY SERVICES ANDSOLUTIONS TIONS AND CONNECTEDVEHICLES AUTONOMOUS DRIVING BUSINESS TRANSPARENCY ANDINTEGRITY RESEARCH ANDINNOVATION EMPLOYEE HEALTH, SAFETYANDWELL-BEING CUSTOMER EXPERIENCE VEHICLE SAFETY
AND EMISSIONS VEHICLE FUELECONOMY ELECTRIFIED VEHICLES
13
2020 SUSTAINABILITY REPORT
Business Model and Governance Materiality and Stakeholder Engagement Autonomous driving and connected vehicles and solutions services Mobility Sustainable design Electrified vehicles Research and innovation TECHNOLOGY AND INNOVATION Alternative fuels conservation Biodiversity Water management Waste management Emissions from operations Vehicle fuel economy and emissions ENVIRONMENTAL AND CLIMATE IMPACT Community development Workplace attractiveness Vehicle safety Customer experience well-being and safety health, Employee EMPLOYEES, CUSTOMERS AND SOCIETY and data protectionCybersecurity Responsible sourcing Business transparency and integrity OPERATIONS BUSINESS FCA’s MaterialSustainabilityTopics internationally-agreed 2030AgendaforSustainableDevelopment. FCA's sustainabilityareas ofcommitmentandmostmaterialtopicsare alignedwiththeUnitedNationsSustainableDevelopmentGoals(SDGs)andobjectivesidentifiedin 14 2020 SUSTAINABILITY REPORT Business Model and Governance Materiality and Stakeholder Engagement communication, planning andreporting. elements intothe businessstrategyanddailyactivities whilealsosupportingsustainability able todiscusssustainability issues.Thenetworks alsosupportincorporatingsustainability networks existineachregion andprovide aforumwhere employeesandmanagersare expertiseand coordinatefurther strengthen jointinitiatives. Thesesustainability internal Regional Sustainability Teams work with selected employees to form networks that REGIONAL SUSTAINABILITY NETWORKS employees. from them.Duringtheyear avarietyofworkshopsandonlinediscussionswere heldwith day tostrengthen FCA'ssustainabilityprofile, potentialareas andto learn ofimprovement two-fold purpose: tocommunicate to them the importance of the work they do every of several stakeholder engagement activities. Our interaction with employees serves a FCA employeesplayaparticularlyvitalrole inoursustainabilityefforts andare thefocus ENGAGING EMPLOYEES activities. material topicsweidentified.Thefollowingare someexamplesofour2020engagement groups or individuals canmosteffectively helpusexplore andconfirm the relevant and To accomplishthis,wetypically work withrepresentatives withinFCAtoidentify which Our stakeholdereventsreflect efforts to reach abroad spectrumofkeystakeholders. the review ofpotentialupdatesinFCA'smaterialsustainabilitytopics. stakeholder engagementeventsare analyzedtoaddress differences andguide,globally, stakeholder initiativesare adaptedtolocallyrelevant topics. Theregional results from our part ofarobust sustainabilityprogram. Ineachofthe regions where FCAoperates,our to innovateourdialoguewithstakeholdersinthebeliefthattheseactivitiesare anessential We conductstakeholderengagementactivitiesrelated tosustainabilitytopics,andwork related stakeholderengagementactivities. identifying andprioritizingstakeholders,provide ageneralframeworkforsustainability- They helpdefinethegoalsofdialogue,setcriteriafor dialogue. continuous this Our sustainability-focused Stakeholder Engagement Guidelines formthebasis for technological andregulatory changesaround theglobe. us tobetteridentifyrisksand opportunities, aswellalignourobjectivestosocial, affected by our decision-making processes and associated actions, stakeholders help stakeholder inputtodeterminematerialityisanongoingprocess. Whetheraffecting or As aglobalenterprisewithcomplex,intricatelyconnectedvaluechain,gathering ENGAGING STAKEHOLDERS
provided relevant contentandresources toournetworksacross the regions. on varioussustainabilityissuesfromsources. external Thesenewcommunicationtools topic ineachedition;andSustainabilitytheNews,whichisadigitalclippingofarticles the ONBOARDemployeenewsletter, whichfeatures detailsonaspecificsustainability on more virtualdialogand digitalcommunicationsolutions.Asanexample,welaunched more employeesworkingremotelyWith across ourregions duetoCOVID-19,wefocused For furtherdetailsseetheResponsibleSourcing section. to identifyresponse discrepancies thatmayrequire additionalfollow-upwiththesupplier. to cross-check supplierresponses aboutmaterialscontainedinproducts suppliedand refiner, procedures and thecountry andmineoforigin.Thissystemworkswith ourinternal asked toreport theiruseof 3TG(tantalum,tin,tungstenandgold),theprocessing smelteror To transferinformationthrough thesupplychain,ourin-scopedirect materialsupplierswere new serviceprovider togather informationusingtheConflictMineralsReporting Template. In 2020,wetookafurthersteptoward ourresponsible sourcing strategybymoving toa groundwork forariskmap toidentifysuppliersthatrequire furtherinvestigation. chains. Theresults ofthenew sustainabilityassessment,alongwithothercriteria,laythe to improve thesocial,ethical andenvironmental performanceofautomotivesupply provider. DriveSustainabilityistheOEMpartnershipwhosemissiontowork together Questionnaire, developedby Drive Sustainability and hosted by a third-party service were askedtosubmitinformation andevidencethrough theSustainabilityAssessment the process ofevaluatingsuppliers'sustainabilityprofiles. Forthefirsttime,suppliers During 2020, we moved to a new sustainability-focused assessment to strengthen extensively withthemonseveralsustainabilitytopics. Because suppliersrepresent suchanessentialelementinFCA'svaluechain,weengage ENGAGING THESUPPLY CHAIN broader perspectivebutwere alsoabletoengagein thediscussion. perspective ofanothercompanyorsustainabilityleader. Ouremployeesnotonlygaineda guest speakers. These virtual events featured sustainability-related topics from the regions, offered employees the ability to participate in online discussions with external Our SustainabilityTalks series,initiallylaunchedinLATAM andthenexpandedtotheother SUSTAINABILITY TALKS
15 2020 SUSTAINABILITY REPORT Business Model and Governance Materiality and Stakeholder Engagement • framework ofa dialogue withEuropean institutionsandotherstakeholders. Inaddition, The Association’s mission is to define commoninterests, policies and positions in the design, development, production and sales operations) in the European Union (EU). ACEA represents manufacturers withfully integratedautomobileoperations(i.e.,research, Manufacturers’ Association(ACEA)forpassengercars andcommercial vehicles. In Europe, theGroup belongstotradeassociationssuchastheEuropean Automobile competitive, aswellsustainable overthelongterm. organizations aimstomakeapositivecontributionbusiness conditionsthatare FCA's approach toengagingpublicinstitutions,industryassociations,andother ENGAGING ASSOCIATIONS ANDINSTITUTIONS • such as: Many initiativesthroughout theyearwere heldvirtually andcovered avarietyoftopics at specialsustainabilityevents. working groups and presentations in high schools and universities, to role-playing exercises stakeholders across a range of sustainability issues. These activitiesrange from classroom Many of FCA’s sustainability events are designed to engage a variety of external ENGAGING OTHERSTAKEHOLDERS Through alltheseevents,we were abletoreach atotalofmore than3,000stakeholders. •
working environment and employeebenefits. Discussions focused on specific topics such as company culture,their internships. to gathertheirexperiencesandperspectivesrelated toworkingremotely throughout Non-financial disclosur its powerandsustainability. car-sharing tooptimizingthebatterychargingsystemofelectricvehicleswhile increasing events in 2020ontopics that rangedfrom developing an end-to-endmobility hub for solutions thatmeettheirneeds.FCAthrough itse-MobilityTeam, supportedinteractive with diverse backgrounds and experiences. The challenge also includes finding new Sustainable mobility–Futur W environmental challenges. requirements forcompaniestodisclosehowthey operateandmanagesocial In-depth discussions focused on FCA's sustainability performance and transparency the PolitecnicoofTurin, SAASchoolofManagement andtheUniversityofPavia(Italy). facilitated onlinewebinarsforuniversitystudents,reaching more than200studentsfrom orkplace attractiveness – FCA interns in North America engagedin two online events orkplace attractiveness – FCA interns e andFCA'ssustainabilityperformance-TheSustainabilityTeam e mobilityoptionsrely oninputfrom avarietyofstakeholders
information service, international communicationandexhibitionservice. information service,international automotive industryinChina,leveragingitsmainfunctionssuch aspolicyresearch, andtheautomotiveindustry.government Thisgroup promotes thedevelopment of the CAAM isaleadinggroup aimed atfacilitatingthecommunicationbetweenChinese FCA isalsoamemberoftheChinaAssociationAutomobile Manufacturers (CAAM). association’s members. the automotivesectoraswellcoordinating andprotecting thecollectiveinterests ofthe country’s automakerswiththepurposeofaddressing industryandmarketissuesaffecting Fabricantes de Veículos Automotores (ANFAVEA). This nationwide association unites the In Brazil,theGroup haslongbeenanactivememberoftheAssociaçãoNacionaldos space canbemembers. 1suppliers, technology companiesandnewentrantstothemobility automakers, Tier public policy, stakeholderengagementandgreater publicunderstanding.Inadditionto Innovation. The new entity aims to speed advancement in transportation through Alliance ofAutomobileManufacturers, mergedtocreate theAllianceforAutomotive In theU.S.inearly2020,twoautoindustrytradegroups, GlobalAutomakersandthe aims oftheEuropean Commission’s Green Deal. include paving the way to transition to carbon-neutral transport and fully supporting the In January2020,FCA’s CEOwaselectedACEAPresident. Thepriorities movingforward trade,researchand sustainability;international andinnovation,safetytransportpolicy. connected andautomateddriving,competitiveness,marketeconomy, environment experts’ participationinworkinggroups andtaskforces related tothesepriorityareas: and contributesbothfinanciallythrough amembershipfeeandoperationallythrough our global sustainable mobility challenges. FCA is a founding member of the Association automotive sector for theentire EUeconomy, andundertakesastrategic reflection on ACEA isengagedincommunicationactivitiesabouttherole andimportanceofthe 16 2020 SUSTAINABILITY REPORT Business Model and Governance Sustainability Targets developing thestrategicplan. Stellantis willfocusonconvergingoperations,processes andKPIs,aswellfocusingon we will be developing a new set of targets applicable to Stellantis. In 2021, teams within FCA only, reflecting theorganizationasofDecember31,2020.Aswemoveforward, reason, itisnotincludedinthelistoftargetsthissection.ThisReportfocusesonlegacy PSA, the previous FCA target is not applicable tothe new scope ofStellantis. For this One of the FCA targets had an expiration year of 2025. Given the merger with Groupe however asa part ofStellantis we anticipatesupportingacommon sustainability strategy. such asproduction. Aswemoveforward, wewillnot release anewsetofFCAtargets, target objectives. Some targets were not met largely due to the COVID-19 impact on areas The existingFCAtargetsexpired attheendof2020,withmajorityresults meeting partners. business and communities with local relationships constructive and dignity; and for rights human respect environment; work inclusive and a healthy, safe governance; good corporate and processes; plants products, responsible environmentally vehicles; of safety and quality as such FCA, for sustainability-focused These covered targets. targets areas priority long-term of development to the contributed key stakeholders, from of topics, our material analysis including the years, input Throughout Sustainability Targets • COMMUNITY • HEALTH ANDSAFETY OCCUPATIONAL • EMPLOYEES • TECHNOLOGY AND COMMUNICATION INFORMATION • AND VALUES CORPORATE GOVERNANCE
SUSTAINABILITY COMMITMENTS development inlocalcommunities and culturaleconomic Support socialinclusion health andwell-being and tomaximizeemployee Strive forazer engagement, challengeandreward employees through inclusion, Attract, developandr activities to supportcompetitivebusiness Implement innovativesolutions aspects Social andGovernance in response toEnvironmental, Foster apathofr o injuryrate esilience andgrowth etain thebest
• • omote social andenvironmental • RESPONSIBLE SOURCING • LOGISTICS • PRODUCTION • • ove vehicle preventive, activeand • CUSTOMER FOCUS • PRODUCT
access toaffordable solutions mobility experienceandprovide greater product lifecycle impacts throughout theentire Assess andmanageenvir Of and improving fueleconomy Pr while r Deliver goodsandvehiclesontime Optimize envir Str Of Impr Minimize envir responsibility amongsuppliers of production processes higher satisfactionlevels customers worldwideandachieve the needsofcustomersworldwide passive systemsandoverallroad safety our products byreducing CO of logistics fer newservicesthatimprove the fer competitiveproducts that meet engthen relationships with educing theenvironmental impact onmental impactsfrom onmental performance onmental 2 emissions 17 2020 SUSTAINABILITY REPORT Business Model and Governance Sustainability Targets number of internal and external stakeholdersworldwide andexternal number ofinternal 2020: expandandinnovatedialogueonsustainabilitytopicstoreach anincreasing financial andnon-financialstakeholdersthrough globaland regional recognition 2020: demonstratecontinuedrelevance ofGroup’s sustainabilityperformance to Targets CORPORATE GOVERNANCEANDVALUES (1) minimize economic,environmental andexternal andsocialimpacts,bothinternal 2020: prevent andmanageemergingriskstoensure businesscontinuityand accordance withlocalconstraints andrequirements human rightsrelated risksacross theGroup andimplementremedial actions,in 2020: adopt,maintainandimprove systemsandprocesses designedtoeliminate behaviors insupportofsustainabilityculture andvalues 2020: incorporatesustainabilitytargetsinindividualperformancegoalstodrive Commitment: fosterapathofresilience andgrowth inresponse aspects toEnvironmental, SocialandGovernance Based on data obtained from an independent third-party market intelligence firm and its assessment of investors’ ESG sensitivity based on public information available as of December 31, 2020. December of as available information public on based sensitivity ESG investors’ of assessment its and firm intelligence market third-party independent an from obtained data on Based 2020 Results conducted asongoingproject ofthecore lossprevention activity Insurable environmental exposures assessedandquantifiedthrough 86self-assessedsites,and26adhocon-sitevisits Assessed 227vehicleinventoryparkinglotslocatedin33countrieswithrespect topotentialvehicledamagerisk visits Started tobeextendedgloballythemethodologyfordetectionandmitigation of supplier risks, despiteCOVID-19limitedon-site 97 sitesidentifiedaspotentiallyexposedtofloodriskand reanalyzedaccording tothefloodriskassessmentmethodology of theFCAworkforce worldwide The humanrightsself-assessmentchecklistwasincludedaspartofthestandard auditprocess, internal withacoverageof75% for related projects Sustainability targetsincorporatedinperformancemanagementsystemforindividuals across theorganizationwithresponsibility disclosure andFCA'ssustainabilityperformance,workplaceattractiveness,sustainablemobility More stakeholdersinvolvedininitiativesheldvirtuallyandcovered than3,000external avarietyoftopicssuchasnon-financial considered asHighlyorMedium ESGsensitive Among theFCAshareholdings heldbytheGroup’s top200institutionalshareholders, 75%are heldbyinvestorsthatare • • • levels, including: FCA’s sustainabilityperformancerelated toproduct, process andsocialaspectmanagementrecognized attheglobalandregional
Member ofsustainabilityindexesincludingSTOXX®GlobalESGImpact,ECPIW Ear Ear ned score ofA-onCDPSupplierEngagementRatings ned score ofA-onCDPClimateChangeassessment (1) orld ESGEquity, andECPIEuro Ethical Key: Target notachieved Target partiallyachieved Target achieved 18 2020 SUSTAINABILITY REPORT Business Model and Governance Sustainability Targets INFORMATION ANDCOMMUNICATION TECHNOLOGY workplace andvirtualsalesexperience 2020: supportFCAdigitaltransformationforsmartmanufacturing, Targets Commitment: implementinnovativesolutionstosupportcompetitivebusinessactivities 2020 Results Extended digitalshoppingsolutionsleveragingvirtualandaugmentedreality pandemic Provided toolsandresources tosupportGroup employeesinthetransitiontoworkingremotely duetoimpactoftheCOVID-19 Read more Read more Key: Target notachieved Target partiallyachieved Target achieved 19 2020 SUSTAINABILITY REPORT Business Model and Governance Sustainability Targets EMPLOYEES complete skillsetandvalueeveryone’s contribution implementation worldwidethrough HumanResources processes, tobuilda 2020: leveragediversityasakeyassetandmonitorequalopportunity Targets the Group’s sustainabilityprofile 2020: developnewinitiativesandchannelstoincrease employeecontributionto constraints programs attheregional level,inaccordance withlocalrequirements and 2020: provide long-term,performance-related incentiveplansanddevelopment improve effectiveness intalentacquisition,developmentandretention 2020: conductpeoplesatisfactionsurveysonaregular basistomonitorand corporate volunteerprograms, basedonlocalneeds,policiesandconstraints 2020: strengthen localcommunity involvementthrough regional implementationof and effectiveness 2020: increase work-lifebalance opportunitiestomaximizeemployeesatisfaction Commitment: attract,developandretain thebestemployeesthrough inclusion,engagement,challengeandreward 2020 Results reduce costs Employees contributedapprox. 1.5millionsuggestions toimprove businessproducts andprocesses, increase efficiencyand Executive programs Approx. 4,600employeesparticipatedinexchangeprograms betweenFCAregions andcompanies,high-leveltraining,orMBA achievement oftheproductive targetsestablishedinthe2019-2022period of thebusinessplan Approx. 52,300employeesinItalyeligibleforadditionalvariablepaycomponentasdefinedbytradeunion agreement upon • • People satisfactionsurveysconductedglobally: Approx. 870employeesvolunteered worldwidetosupportlocalcommunities,devotingmore than4,500hoursduringworktime foster professional effectiveness andincrease well-being Variety ofcompanyprograms madeavailabletoemployeesrepresenting opportunitiestobalancetheirworkandpersonallife, Approx. 17%ofmanagerial positionsheldbywomen More than32%ofnewhires were women,contributingtothefemalerepresentation inFCA’s workforce deploymentofapprox.international 200expatriates Diverse perspectives,bestpractices,successstories,professional knowledgeandexpertiseshared across regions through channels, includingjobpostingprograms Approx. opportunitiesmadeavailabletoFCAsalariedandhourlyemployeesworldwidethrough 3,000internal avarietyof FCA listedinthe2020ThomsonReutersDiversity&InclusionIndex
survey r appr ox. 30,000hourlyandsalariedemployeesinvolved esults andkeyfindingsunderevaluationfordevelopmentofappropriate actions Key: Target notachieved Target partiallyachieved Target achieved 20 2020 SUSTAINABILITY REPORT Business Model and Governance Sustainability Targets OCCUPATIONAL HEALTH ANDSAFETY ultimate goalofzero losttimeinjuriesforallGroup plants 2020: achievecontinuedreduction ininjuryFrequency andSeverityRates,with Targets 2020: achieveOHSAS18001certificationforallGroup plantsoperatingworldwide environment with localneedsandconstraints,topromote healthylifestylesandsafeworking 2020: expandHealthPromotion Program (HPP)toallplantsworldwide,inline Commitment: striveforazero injuryrateandtomaximizeemployeehealthwell-being 2020 Results 92 plantscertifiedtoOHSAS18001ornewISO45001,coveringapprox. 97%ofmanufacturingemployees preventive culture through healthand/ormedicalchecks HPP availableinallplants,withfocusonCOVID-19prevention, smokingcessation,nutritioneducationandpromotion ofa worked (-19%vs2019and-82%2010) Severity Ratereduced afterremaining stablefortwoconsecutiveyears,with0.02daysofabsenceduetoinjuriesper1,000hours 2010) Reduced Frequency Rateforthe14thconsecutiveyearwith0.57injuriesper1,000,000hoursworked(-5%vs2019and-87% Read more Key: Target notachieved Target partiallyachieved Target achieved 21 2020 SUSTAINABILITY REPORT Business Model and Governance Sustainability Targets COMMUNITY development oflocalcommunities 2020: serveasacatalysttohelpenhancetheself-sustainingsocial-economic Targets Commitment: supportsocialinclusionandculturaleconomicdevelopmentinlocalcommunities 2020 Results • • • Provided pandemicrelief efforts including: Contributions totheUnitedWay from FCA,FCAemployees, theFCAFoundationandspecialeventstotaledmore than€5million • • Provided localdevelopment opportunitiesandpositiveimpactsthrough programs suchas programs, inadditiontoGroup employeevolunteeringactivities Committed charitableresources foravalueofabout€4.6milliontosupportcommunitydevelopmentandwelfare, includinghealth
expanded bedsavailablefortr support fortechnical,logisticalandpr donations tocharitiesthatpr Re-imagine Detr Árvor Read more Read more e daVida oit’s EastsideCommunities ovide foodservicestochildren eatment byworkingoninstallationoffieldhospitals oduction programs, suchasmanufacturingfacemasksandventilators Key: Target notachieved Target partiallyachieved Target achieved 22 2020 SUSTAINABILITY REPORT Business Model and Governance Sustainability Targets innovation, mobilityandenvironmental issues technology, engineeringandmathprograms, includinginitiativesthataddress 2020: advanceyoutheducationandtraining,withparticularemphasisonscience, Targets Commitment: supportsocialinclusionandculturaleconomicdevelopmentinlocalcommunities 2020 Results school levelssupportedbyapprox. 90FCAemployeementorsintheU.S. Approx. €498,000ingrants from FCAFoundationtosupportFIRSTprograms with114teamsattheelementary, middleandhigh • • Innovative trainingcoursesondigitaltransformationandrobotics provided byComauinItaly: • • FCA contributedtoeducationprograms suchas: distributed annuallythrough 2022basedonmilestoneachievements The FCAFoundationsupportedCERNScienceGatewayproject withacommitmentoftotal45millionSwissFrancsin2019, Committed charitableresources foravalueofabout€18.6milliontosupporteducation-related initiativesworldwide
skills 2,000 secondarystudentsattendedRoboticsLicenseforthedevelopmentandcertifica and STEMskills appr Detr Politecnico ofT oit PublicSchoolsConnectedFutures Program withapprox. €435,000 ox. 1,000primaryandsecondaryschoolstudentsparticipatedine.DOExperience program, aimedatreinforcing robotics urin (Italy)withmore than€2.1milliontosupporttheAutomotiveEngineeringmaster'scourse Key: Target notachieved Target partiallyachieved Target achieved tion ofrobotic useandprogramming 23 2020 SUSTAINABILITY REPORT Business Model and Governance Sustainability Targets 2020: achieveatleast5%to15%improvement infueleconomy PRODUCT (2) (2) (1) innovation andretain significantpositionamongleadersinEurope 2020: maintainawideoffering ofCNGmodelsinEurope, promote technological 2020: achieve40%reduction inCO Targets sold inEurope, according toEUregulation requirements 2020: reduce CO economically viable,competitiveinthemarketplace,andbeneficialtosociety 2020: developelectric/hybridtechnologies,focusingonsolutionsthatare renewals ofFCAUSvehicles compared withreplaced vehicles/models Commitment: minimizeenvironmental impactsfrom ourproducts byreducing CO 2006 baseline established using impact assessment guidelines of EC Regulation 443/2009. Rules for CO for Rules 443/2009. Regulation EC of guidelines assessment impact using established baseline 2006 All improvements represent combined fuel economy compared with the replaced model. 2 emissionsby30%vs2008onentire Maseratiproduct range 2 emissionsvs2006 (1) formass-marketcars (2) for major 2 calculation are defined in EC Regulation 443/2009, EU Regulation 333/2014, EU Regulation 2017/1153and EU Regulation 2019/631. accounting forabout75%ofthetotalnumbervehiclessold 2020 Results Reduced CO Reduced CO FCA confirmedamongleadersfornaturalgasvehiclesinEurope withmore than780,000naturalgasvehiclessoldsince1997 the technologyandmanagelogisticsofstoragearea Initiated theVehicle-to-Grid (V2G)pilotproject withtheinstallationof32V2Gcolumnscapableconnecting64vehicles,topilot electric mobility Expanded collaborationwithENGIEEPS,announcingajointventure tooffer innovativeservices andsolutionsforaccessto • • Presented duringtheyear the followingelectrifiedmodels: • • • • • • • Launched thefollowingall-newelectrifiedmodels: vehicles Powertrain andtechnologyupgradesforexistingproducts contributedtofueleconomyimprovements ofupto15%onselected Read more Read more
Jeep W Jeep GrandW Maserati GhibliHybrid Lancia Y Jeep Renegade4xePlug-InHybrid Jeep Compass4xePlug-InHybrid Fiat Pandamildhybrid Fiat 500mildhybrid New Fiat500electric rangler 4xePlug-InHybrid psilon mildhybrid 2 2 emissionsby30%vs2008onentire Maserati product rangeinthemain three regulated markets(U.S.,China,EU), emissionsinEurope by41%vs2006and45%2000,whileincreasing product portfolioofmass-marketcars agoneer Plug-InHybridconcept 2 emissionsandimproving fueleconomy Key: Target notachieved Target partiallyachieved Target achieved 24 2020 SUSTAINABILITY REPORT Business Model and Governance Sustainability Targets Assessment (LCA)methodologies performance certificationthrough integrationofISO14040/44-compliantLifeCycle 2020: offer newproducts (vehiclesandcomponents)withenvironmental Targets our customers connectivity andmobilitysolutionsthatare economicallyviablefortheGroup and 2020: pursueresearch, advancedevelopmentanddeliveryofnewsustainable Targets network inrelevant markets minimum regulatory requirements withexpansionofqualifiedandcertified ELV 2020: improve efficiencyinmanagementofEnd-of-Life Vehicles (ELVs) andexceed recovery quotatarget(95%) 2020: outperformEuropean Unionreuse/recycling quotatarget(85%)andreuse/ materials vehicles withafocusonrecycling andsubstitutionopportunitiesforcriticalraw 2020: increase theuseofrenewable andrecyclable materialsinnextgeneration 2020: minimizeenvir Commitment: assessandmanageenvironmental impactsthroughout theentire product lifecycle Commitment: offer newservices thatimprove themobilityexperienceandprovide greater accesstoaffordable solutions onmental impactofmaterialsusedinvehicles 2020 Results 2020 Results Monitoring ofELV topicsfurtherexpanded to77markets,alsotakingintoaccountthearrivalofelectrifiedvehiclesin market 264 dismantlersselectedonthebasisof environmental and qualitycriteriatoservetheFCAItalianELV network collectedbydismantlersinItalyresultedTires inapprox. 31,000tonsbeingusedinrecycling activities All Group vehiclessoldinEurope were 95%recoverable and85%recyclable byweight generation recycled andbiomaterials Began collaborativeworkontheEUHorizon2020REVOLUTIONandLIFEGREEN VULCANprojects, at thedevelopmentofnext 16 newapplicationsofsustainablematerialsapproved Monitoring inFCAplantsoftheGlobalListAutomotiveProcess Substances(GLAPS) • • • LCA completedon: Expanded mobilityservicesoffered byLeasys,FCABank'smobilityservicecompany, withadditionalfeatures andnewprograms Launched theall-newUconnect5cloud-basedplatform,featuringglobalcapabilityfor vehicle ownersinmore than150countries Read more
Jeep RenegadePHEV190hpvsgasoline180 New Fiat500electricHB-longrangevsgasoline1.269hp Freedom CabinePlus1.3 8V Flex Fiat StradaHar d Working CC1.48VFlex vsNovaFiatStradaEnduranceCabinePlus1.48VFlexand Key: Target notachieved Target partiallyachieved Target achieved 25 2020 SUSTAINABILITY REPORT Business Model and Governance Sustainability Targets regional benchmarks increased customerloyaltyandadvocacyforourproducts basedonapplicable • • encompassing allsafetyaspectswhile: 2020: continuetofocusonvehicleoccupantsafetythrough advancedsolutions Targets CUSTOMER FOCUS • • (1) 2020: achievetopquartile Targets Commitment: offer competitiveproducts thatmeettheneedsofcustomersworldwide Commitments: improve vehicle preventive, activeandpassivesystemsoverallroad safety Vehicle portfolio will place within the top 25% of benchmark data. data. 25% benchmark top of the within place will portfolio Vehicle
continue tobeanindustryleaderinuser of maintaining highlevelsofstructuralcrashworthinesswhileintr in allregions adapting totherapidlychangingr safety systemcustomerinterfaces including globalapplications providing technicallyadvanced activesafetysystemsformass-marketvehicles and Forward CollisionWarning (FCW) Driver AssistanceSystems(ADAS)suchasAutomaticEmergencyBrakes(AEB) fering modulararchitectures, innovativeandefficient restraint systemsand (1) competitivepositionforvehicleportfolio,leadingto egulatory requirements andthird-party ratings -centered HMIdesignapproaches forall oducing Advanced 2020 Results 2020 Results • • • • • • • • • • • • • • • Models thatachievedfirstquartileplacementinspecificmarkets: • • • • • • Brands thatachievedfirstquartileplacementinspecificmarkets:
2021 Ram1500achievedU.S.NCAP5-Starrating 2021 JeepGrandCher 2021 DodgeChargerachievedU.S.NCAP5-Starrating 2021 DodgeChallengerachievedU.S.NCAP5-Starrating 2021 ChryslerV 2021 ChryslerPacificaachievedU.S.NCAP5-Starrating 2021 Ram1500(cr Jeep Compass-AP Jeep Compass-LA Jeep Renegade-LA Fiat Strada-LA Fiat Mobi-LA Lancia Y Fiat Panda-EMEA Dodge Durango-NorthAmerica Jeep -AP Jeep -LA Lancia -EMEA Fiat -EMEA Ram -NorthAmerica Dodge -NorthAmerica psilon -EMEA TAM AC TAM TAM oyager achievedU.S.NCAP5-Starrating ew cab)namedanIIHSTop SafetyPick TAM AC TAM okee 4x4achievedU.S.NCAP5-Starrating Key: Target notachieved Target partiallyachieved Target achieved 26 2020 SUSTAINABILITY REPORT Business Model and Governance Sustainability Targets performing region (2) Customer Care platformanddedicatedinitiativesorchannels 2020: supportandengageexistingpotentialcustomersthrough aglobal Targets personnel developmentandqualitymanagementprograms 2020: supportcustomerexperiencewithinthedealernetworkbyfocusingon 2020: achievecustomerservicelevels Commitment: strengthen relationships withcustomersworldwideandachievehighersatisfactionlevels Group level refers to the level of service across the four regions: EMEA, North America, LATAM and APAC, including Maserati. APAC, including LATAM and America, North EMEA, regions: four the across service of level to the refers level Group (2) inallregions inlinewiththe Group’s best 2020 Results Through theTechPro Provided more than5.1milliontraininghourstosales,after-sales andtechnical personnelwithinFCA’s dealernetworkworldwide Achieved customerserviceperformanceacross regions rangingfrom 62%to89%callresponse within20seconds Handled approx. 45.5millioncontactsworldwide Provided worldwidecustomer assistancein29different languages 2 program, trainedabout1,200 studentsinItalyforjobsautomotiverepair centersanddealernetworks Key: Target notachieved Target partiallyachieved Target achieved 27 2020 SUSTAINABILITY REPORT Business Model and Governance Sustainability Targets plants inWCMprogram achieve bronze, silver, goldorworldclassaward performancelevel for100%of at mass-marketvehicleassemblyandstampingplantsworldwide 2020: achieve30%reduction inenergyconsumedpervehicleproduced vs2010 all Group plants 2020: achieveEnvironmental (ISO14001)andEnergy50001)certification for 2020: maintainwaterrecycling indexover95%atallFCAplantsworldwide (4) (3) (2) (1) 2020: achieve32%reduction inCO Targets PRODUCTION 2020: extendWCMprogram to99% plants worldwide square meterpaintedvs2010atmass-marketvehicleassemblyandstamping 2020: achieve25%reduction inVolatile OrganicCompounds(VOC)emittedper targets foreachcompany 2020: achieveupto98%wasterecovery atGroup plantsworldwide,withspecific vs 2010atmass-marketvehicleassemblyandstampingplantsworldwide 2020: achieve54%reduction inhazardous wastegeneratedpervehicleproduced mass-market vehicleassemblyandstampingplantsworldwide 2020: achieve14%reduction inwastegeneratedpervehicleproduced vs2010at mass-market vehicleassemblyandstampingplantsworldwide 2020: achieve40%reduction inwaterconsumedpervehicleproduced vs2010at the EMEAregion electricity suppliedfrom thegridandconsumedbymass-marketvehicleplantsin 2020: useelectricitygeneratedfrom renewable sources for100%ofpurchased mass-market vehicleassemblyandstampingplantsworldwide Commitment: optimizeenvironmental performanceofproduction processes For ISO 50001 only where material: corresponding to at least 95% of energy consumption of all Group plants. plants. Group all of consumption energy of 95% least to at corresponding material: where only 50001 ISO For Percentage based on the total manufacturing cost base. cost manufacturing total the on based Percentage Industrial revenues are those attributable to the activities of plants directly controlled by the Group. Manufacturing employees are those directly and indirectly involved in manufacturing processes. processes. manufacturing in involved indirectly and directly those are employees Manufacturing (1) operatingworldwide 2 emittedpervehicleproduced vs2010at (4) ofGroup plantsoperatingworldwideand 2010 (from 0.61to0.53tons CO 2020 Results adopting WCM Award performance levelachievedin68plants(28bronze, 34 silverand6goldlevel),accountingfor94%ofGroup plants WCM program implementedin93plants,accountingformore than99%oftotalGroup manufacturingcostbase ISO 50001certificationforplantsaccounted99%oftotalFCAenergyconsumption 95 Group plantscertifiedtoISO14001,accountingfornearly100%oftotalGroup industrial revenues 2010 (from 32.4to23.1g/m Reduced by29%VOCemissionspersquare meter paintedatmass-marketvehicleassemblyandstampingplantsworldwidevs Achieved 99.9%wasterecovery atGroup plantsworldwide worldwide vs2010(from 8.2to3.6kg/vehicle) Reduced by56%hazardous wastegeneratedpervehicleproduced atmass-marketvehicleassemblyandstampingplants 2010 (from 217.2to87.7 kg/vehicle) Reduced by60%wastegeneratedpervehicleproduced atmass-marketvehicleassemblyandstampingplantsworldwidevs Achieved 99%waterrecycling indexatFCAplantsworldwide 2010 (from 5.0to3.2m Reduced by36%waterconsumptionpervehicleproduced atmass-marketvehicleassemblyandstampingplantsworldwidevs 1.4% oftotalelectricityconsumptionusedinGroup production comesfrom renewable sources 2010 (from 7.3to6.8GJ/vehicle) Reduced by8%energyconsumptionpervehicleproduced atmass-marketvehicleassemblyandstampingplantsworldwidevs Reduced by13.5%CO manufacturing employees Read more 2 3 emissionspervehicleproduced atmass-marketvehicleassemblyandstampingplantsworldwidevs /vehicle) (3) 2 ) 2 /vehicle) Key: Target notachieved Target partiallyachieved Target achieved (2) andcovering98%of 28 2020 SUSTAINABILITY REPORT Business Model and Governance Sustainability Targets LOGISTICS materials whileprotecting partqualityandtheenvironment 2020: leverageexistingandemergingprocesses andtechnologiestomove movement application ofmethodologiesdesignedtoreduce theimpactoffreight andvehicle 2020: enhancelogisticsoperationsthrough optimizationoffleetcharacteristicsand Targets Commitment: delivergoodsandvehiclesontimewhilereducing theenvironmental impactoflogistics 2020 Results delivering thepallets approx. 175,000wooden pallets andsavingmore than€450,000,whileloweringtheenvironmental impactofproducing and Performance andenvironmental impactofpackagingandprotective materialsimproved through projects, suchasrecycling miles andhelpedavoidmore than7,500tonsofCO New projects implemented orexpandedtoimprove worldwidetransportoperations,suchasroute reconfiguration which reduced 3,000 tonsofCO Low-emissions natural-gaspowered trucksinFCA’s transportfleetoperatinginNorthAmericaandEurope avoidedmore than Read more 2 2 Key: Target notachieved Target partiallyachieved Target achieved 29 2020 SUSTAINABILITY REPORT Business Model and Governance Sustainability Targets approx. 57%ofpurchases byvalue)through theCDPsupplychainprogram RESPONSIBLE SOURCING and increase awareness ofbusinessimplications along theFCAsupplychainformineralsthatmaybelinkedtohumanrightsabuses engagementstoincrease2020: advanceFCAinitiativesandexternal traceability Targets 2020: monitorCO party auditsofallstrategicsuppliers social risksthrough sustainabilityauditsorassessments;conducttargetedthird- 1supplierswithpotentialexposure tohighenvironmental2020: evaluateallTier or Commitment: promote social andenvironmental responsibility amongsuppliers 2 emissionsof90-100%topGroup suppliers(representing 2020 Results annual purchased value 307 suppliersinvitedtorespond totheCDPSupplyChainprogram, with231responding, representing approx. 65%ofthe2020 annual purchased value(from direct andindirect materialsuppliers) More than600sustainability assessmentquestionnaires submittedbyFCAsuppliers,representing approx. 48%ofFCA2020 Materials Engaged withmulti-stakeholdergroups inproactive andmaterialactionssupportiveoftheOECDDueDiligenceGuidancefor 250 onlineparticipants Delivered ConflictMinerals andethicalsourcing trainingprovided trainingto50students.AdditionalSAQandCMRT tomore than being utilized toexchangeinformationregardingRequested EVbatterysupplierstosubmitCRT cobalt'scountryoforigin,smeltersandrefiners Launchedanewsustainability-focusedassessmenttoevaluatesuppliersustainability profiles, including requests forevidence supply chain Launched resource forsupplierstosubmitmultiplereports (CMRT, tooneserviceprovider SAQ,CRT) forgreater efficiencyinthe Key: Target notachieved Target partiallyachieved Target achieved 30 2020 SUSTAINABILITY REPORT Business Model and Governance Corporate Governance the Dutch Corporate Governance Code. Governance Corporate Dutch the and ongoing alignment with practices international best system; an and management risk advanced an Conduct; of Code the with inconsistent may havewhich been actions events, or situations, reporting for process by whistleblowing the supported was model This stakeholders. all with interacting in workforce our and Company the by used approach the and processes decision-making CompanyThe governance regulated the model behavior. ethical and responsibility to integrity, dedicated to aculture commitment our reflected that guidelines, including statements, of supporting acollection and of Conduct Code the was foundationThe of the Company's governance model Governance Corporate UNITED NATIONS SUSTAINABLE DEVELOPMENTGOALS(SDGS) KEY FCAFIGURESSUPPORTING FOR ETHICALBEHAVIOR PRINCIPLES 12 CONDUCT OF CODE 1
COMMITMENTS REFLECTING RESPONSIBLE GUIDELINES 12 31 2020 SUSTAINABILITY REPORT Business Model and Governance Corporate Governance things, assisting and advising the Board of Directors with: i) the identification of the • • The Board ofDirectors wassupportedbythree Committees: BOARD COMMITTEES of Directors andduringthe annualperformanceassessmentprocess. Committee considered such factorswhenevaluatingnomineesforelectiontotheBoard to theCompany'sbusiness.TheBoard ofDirectors andSustainability anditsGovernance a proper understanding of current affairs and longer-term risks and opportunities related mentioned goalsandtoachievesufficientdiversityofviews theexpertiseneededfor The Companyconsidered eachofthesediversityaspectskeydriverstosupporttheabove- debate, balanceddecision-makingandindependentactionsoftheBoard ofDirectors. expertise, workandpersonalbackground andnationalitywasanimportantmeansofpromoting believes thatdiversityinthecompositionofBoard ofDirectors intermsofage,gender, A diversity policy for the Board of Directors (the Diversity Policy) was adopted, as the Company purposes ofNewYork Code. StockExchangerulesand theDutchCorporateGovernance In 2020,wedeterminedthatsevenofour12Board membersqualifiedasindependentfor Company wastobevestedintheBoard ofDirectors and theChiefExecutiveOfficer. to-day responsibility withintheCompanyorGroup. Thegeneralauthoritytorepresent the management oftheCompany, andninenon-executive Directors, whodidnothavesuchday- the Chief Executive Officer, and the Chief Financial Officer), having responsibility for the day-to-day The Board ofDirectors asawholewascomposedofthree executiveDirectors (i.e.,theChairman, at thetimeofAnnualGeneralMeeting. Shareholders determined the appointment of Directors, both executive and non-executive, executive – was responsible for the management and strategic direction of the Group. The Board ofDirectors –composedof12Directors, includingbothexecutiveandnon- below. 31, described are 2020 December of as structure governance Company's the of elements main The stakeholders. of interests legitimate the respecting while value to create and growth sustainable to pursue us enabling basis, adaily on business how we did supported governance Company’s The The Gover •
Corporate Governance Compensation Committee. Audit Committee Gover nance andSustainabilityCommittee nance andSustainability Committeewasresponsible for, among other members were tobeindependent. and comprisedofatleastthree Directors according toitscharter. More thanhalfofthe andSustainabilityCommitteewaselectedbytheBoard ofDirectorsThe Governance sustainability-related issues,andreviewing theannual SustainabilityReport. and vii)reviewing, assessingandmakingrecommendations astostrategicguidelinesfor and practices,managementstandards, strategy, globally; performanceandgovernance vi) monitoring and evaluating reports on the Group’s sustainable development policies v) supervision of the selection criteria and appointment procedure for senior management; of Directors; iv)proposals for appointmentof executive and non-executiveDirectors; assessment oftheperformanceindividualDirectors andreporting onthistotheBoard ii) periodicassessmentofthesizeandcompositionBoard ofDirectors; iii)periodic criteria, professional and personalqualificationsforcandidatestoserveasDirectors; perceived areas forimprovement. as wellsteps that couldbetakentoaddress specific requests or the functioningofBoard ofDirectors ofFCAanditscommittees, was giventowhatactions,ifany, couldenhanceandfurtherimprove Directors, itscommitteesandtheindividualDirectors. Consideration on theperiodicassessmentof performanceoftheBoard of andSustainabilityCommitteeofFCAfocused In 2020,theGovernance andSustainabilityCommittee. as determinedbytheGovernance the Board ofDirectors. Reviewsoccurred atappropriate regular intervals the performanceofitscommitteesandeachDirector’s continuationon responsibilities toreview annuallytheBoard ofDirectors’ performance, and SustainabilityCommitteehad,amongothers,theduties In accordance withtheCharter inplace2020,theGovernance OF DIRECTORS’PERFORMANCE EVALUATION OF THEBOARD
32 2020 SUSTAINABILITY REPORT Business Model and Governance Corporate Governance • responsible forassessingand managingclimate-related risksandopportunities. theGEC,severalpositionswere and collaboratingoncertainoperationalmatters.Within operational management,includingreviewing theoperatingperformanceofbusinesses and theday-to-daymanagementofCompany, primarilytotheextentitrelated toits The GECwasresponsible for executingthedecisionsofCEOandBoard ofDirectors, also a Board of Directors member, was supported by the Group Executive Council (GEC). to significantly affect the organization. On certain key industrial matters, the CEO, who was addressing and managing the climate-related risks and opportunities that had the potential the Company,Within the executive leadership team also played an important role in overseeing majorcapitalexpenditures, acquisitions,anddivestitures. organization's performanceobjectives,monitoringimplementationandperformance, action, riskmanagementpolicies,annualbudgets,andplansaswellwhensettingthe others, whentheBoard ofDirectors reviewed andguidedFCA'sstrategy, majorplansof appropriately addressed. Climatechangerisksandopportunitieswere considered, among mechanismscontributedtoensureSeveral governance thatclimate-related issueswere risks theirimpactrangedfrom minortosignificant. issues posedbyclimatechange,andwhetherconsideringlocal,regional orglobal deployment ofopportunitiesencompassedabroad arrayofpossibilitiesincluding business matters.Themanagementandmitigationofriskstoourthe opportunities posedbyclimate-related issuescouldnotbeseparatedfrom other nature oftheproducts weproduced andsoldintheautomotiveindustry, risksand The Board of Directors was responsible for the strategyof Company. Due to the CLIMATE-RELATED GOVERNANCE
Research andDevelopment activities, pleaseread here. propulsion fuels. Formore systemsandalternative information about FCA's technologies including: engines,transmissions anddrivelines,hybridelectric and greenhouse emissionsreduction activitieswere primarilyfocusedonpowertrain as reducing fuel consumption and greenhouse gas emissions. Fuel consumption efficiency research efforts intwoareas: reducing vehicledemandenergy, aswell efficiency ofourproducts. Historically, weconcentratedthemajorityofourfuel aspect ofourbusinessthataffects climate-related riskscentersaround thefuel report oftheCEOandreported outtotheBoard ofDirectors in2020.Asignificant transfer across theentire enterprise.TheCTOwasamemberoftheGEC,direct (R&D) and was responsible for stimulating opportunities for synergies and technology development activities.Inparticular, theCTOledFCAResearch andDevelopment The ChiefT echnical Officer(CTO)coordinated theglobalinnovationandproduct • • • information aboutFCA's riskmanagement, pleaseread here. likelihood that the risks occur and the mitigating factors adopted by our Group. For more risk were considered significantrisks, basedonthepotentialimpact onourorganization,the profitability, andbrand reputation. Risksidentifiedtohave highormedium-highlevelsof residual its strategicgoals,havingthepotential togenerateasubstantivechangeinGroup operations, risks), theCompanyalsoidentifies substantiveimpactsthatcouldhinderFCA’s ability toachieve When identifying or assessing any risk events including climate-related risks (i.e., transition Strategies aswellInterruption of CriticalSuppliesandriskscarcity ofrawmaterials. Compliance, Technology DevelopmentandProduct Launch,Product PortfolioandTechnology in 2020,includeamongothers,thoseconnectedwithclimate-related issues:Regulatory Board of Directors (through the Audit Committee) with risk oversight. Key global risks identified Through anintegratedapproach, ourvariouscommitteessupportFCA'sGEC,CFO,CEOand while theCommercial Committee oversawmattersrelated tosalesandmarketing. product developmentprograms related to fuel economy, emissionsandvehicle electrification, TheProduct Committeeoversawcapitalinvestment,engineeringand to supportriskgovernance. In addition,weutilizedtheoperationalfocusofourexistingProduct andCommercial Committees facilitate ourintegratedriskassessmentprocess. operations. ThemissionofthisCommitteewastoprovide broad process oversightand to representatives Auditfunctionsandfrom from business theLegal,RiskManagement,Internal chaired bytheGroup CFO,whowasalsoaBoard ofDirectors member. Othermemberswere in their respectiverisk governance region/sector. The Global Risk Management Committee was related risksandopportunities,RiskManagementCommitteeswere responsible forsupporting andmanagement ofclimate- Among organizationalstructures assignedforthegovernance
planning foroperationalenergyefficiencyand related CO including theBoard ofDirector’s andSustainabilityCommittee. Governance climate-related data.Onan annual basis,thepositionreports totheBoard ofDirectors, environmental, performanceatthegloballevel,whichincludes socialandgovernance member, andcoordinates theactivitiesofSustainabilityTeam that monitorsFCA's information aboutFCA'sfleetemissionsandfueleconomy, please read here. GEC, adirect report oftheCEOandreported outtotheBoard ofDirectors in2020.Formore products includinggreenhouse gasandotheremissions. TheCTCOwasamemberofthe Regulatory Complianceorganizationwhichfocusesonenvironmental-related mattersforour The ChiefT The ChiefManufacturingOfficer(CMO)overseesallFCA'smanufacturingoperations,including The ChiefAudit,SustainabilityandComplianceOfficer 2020. Formore informationaboutFCA'sproduction performance, pleaseread a memberoftheGEC,direct report oftheCEOand reported outtotheBoard ofDirectors in echnical ComplianceOfficer(CTCO)overseestheglobal Vehicle Safety and 2 emissionsreduction. TheCMOwas , reports totheCEO,wasaGEC here.
33 2020 SUSTAINABILITY REPORT Business Model and Governance Corporate Governance Sustainability Committee. were then included in the annual disclosure and and conveyed to the Governance stakeholders. Reports on these dialoguesan interchange and external with internal issues were carried out by the Sustainability Team as part of its assignment to maintain Discussions betweenstakeholdersandtheBoard Committeeregarding sustainability of ourcommitmentsandresults. cost optimization, stakeholder engagement and effective communication to stakeholders facilitates thegoalofcontinuousimprovement, contributingindirectly toriskmanagement, The SustainabilityTeam, withmemberslocatedinItaly, Brazil,ChinaandtheU.S., the sustainabilityachievementsandobjectives. related tostrategicsustainabilityinitiatives,advisesthefullBoard asnecessary, andreviews management. TheBoard’s andSustainability Committeeevaluatesproposals Governance Several entitieswithintheGroup, helpdirect adisciplined approach tosustainability among ourmanysuppliers. were involved.TheGroup alsoactivelypromotes environmental andsocialresponsibility from thetopofmanagementchaintoworkersinplantsandofficesaround theworld of sustainabilityaspectswithintheCompany, all areas, functionsandlevelsofemployees, In order toimplementmeaningfulsustainabilitypracticesandoptimizethemanagement well ascommunityservice. includes integrity, respect forothersandacommitmenttoenvironmental protection as improvement. The commitment tosustainability arises from acorporate culture that stakeholders, and to identify and opportunities external forthe needs of internal The Group hasestablishedprocesses toalignourlong-termbusinessstrategywith environmental andsocialresponsibility objectives. processes as well as strengthen cultural buy-in to simultaneously achieve our economic, The Company’s sustainabilitymodelincorporatestheneedtoimplementrobust SUSTAINABILITY MODEL CODE OFCONDUCT • The Company'sintegritysystemwascomprisedoftheseprimaryelements: better future forourCompanyandthecommunitiesinwhichwedobusiness. workforce actwiththehighestlevelofintegrity, complywithapplicablelaws,andbuilda applied underapplicablelocallawsandaimstoensure thatallmembersoftheCompany's Multinational Companies.TheCodewasintendedtobeconsistentwithsuchguidelinesas and theOrganizationfor Economic Co-OperationandDevelopment(OECD)Guidelinesfor Labour Organization (ILO) Conventions (UN) Declaration of Human Rights, the International The CodeofConductincludedexplicitreferences tothespiritunderlyingUnitedNations underscoring theimportanceofdialoguewithstakeholders. aspects of conduct related tothe economic, social and environmental dimensions, Group andourworkforce intheinterests ofstakeholders.TheCodeConductamplifies system whichregulates thedecision-makingprocesses andoperatingapproach ofthe in the world (collectively, the “workforce”). The Code ofConduct was apillar of the integrity individuals andcompaniesthatactonbehalfoftheCompany, wherever theywere located including subsidiaries.TheCodealsoappliestoalltemporary, contractandallother The CodeappliestoallBoard members,officersandfull-timepart-timeemployees The fullsetofguidelineswasavailable onthecorporatewebsite. • • •
Statements, includingGuidelines,thatcover Pr Practices thatwer Principles thatcaptur and marketingcommunication, ConflictMinerals. sustainability for suppliers, environmental management, responsible taxation, advertising These covered, amongothers,mattersrelated tohumanrights,competition, Company’s accountabilityandcommitmenttoaculture ofresponsibility andintegrity. certain geographicalregions and/orbusinessesasappropriate. achieving compliancewiththeCode,andthatmayhavespecific applicationlimitedto overarching Principles.The PracticessupplementedthePrincipleswithusefuldetail. and personalconduct. ocedures thatfurtherarticulated theCompany'sspecificoperationalapproach to e thebasicrulesthatguidedourdailybehaviorstoachieve our ed theCompany'scommitmenttocore ethicalvaluesinbusiness ed specificissuestoemphasizethe 34 2020 SUSTAINABILITY REPORT Business Model and Governance Corporate Governance Legal DepartmentorAuditandCompliance. reaching theentire workforce. Copiescouldalsobeobtainedfrom HumanResources, the website, theemployeeportalandothercommunicationchannelsaimedat The PrinciplesoftheCodecouldbeconsultedanddownloadedfrom theCompany’s crimes constitutingliabilityforlegalpersons. regulations, particularly those related to corruption, money-laundering, terrorism and other to theprinciplesunderlyingCodeofConduct,aswellcompliancewithlocal Group contractsworldwide includedspecificclauses relating to recognition and adherence business relationships ofalastingnature suchassuppliers, dealers,advisorsandagents. of business conduct and observed by those third parties with whom we maintained We relied on our best efforts to ensure that the Code was regarded as a best practice FCA ETHICSANDCOMPLIANCECOMMITTEE assessment processes, andconsistedofvariouselements including theCode, to address theareas ofmaterialriskthattheCompanyidentifiedinits the Company’s ComplianceProgram. TheComplianceProgram wastailored One oftheCommittee'sresponsibilities wastodesign,implementandoversee Company's AuditCommittee. Compliance Committees.TheCommitteereported totheCEOand and theChiefFinancialOfficer, andwassupportedby regional Ethicsand Compliance Officer, theGeneralCounsel,ChiefHumanResources Officer The Committee’s membersincludedtheChiefAudit,Sustainability and integrity andcompliancewithapplicablelaws,regulations andCompanypolicies. Group level,andsupported thegoaltocontinuouslyimprove anethicalculture of Company’s AuditCommitteeandmanagementinorder tohaveoversightat The FCAEthicsandComplianceCommitteeprovided assistancetothe
obligations undertheCodeofConduct. promote theFCAculture ofintegritywhilefamiliarizingtheworkforce withits the complianceteamandothers.Inaddition,globallocaltraining helped including communicationsfrom seniormanagement,middle Regular cadenceofcommunicationsreinforced theGroup’s culture ofintegrity, violations, disclosures ofconflicts ofinterest andquestions onCompanypolicies. and stakeholderstocommunicateinstancesofpotentialCode Conduct procedures andanefficientmechanismwhichallowed theGroup’s workforce remedy instancesofnon-compliance withthelawandGroup’s policiesand Company hadadequatesystemsandprocesses, toidentify, investigateand improvement. Asawhole, the program wasintended toensure thatthe program withanoutsideethics organizationthatensured continuous training andcommunicationplans,theEthicsHelpline,anassessment reaching approximately 50,000employees. recorded. Further, the2020CodeofConducttrainingcampaignwasgloballydelivered insider trading for managers. During 2020, roughly 70,000 individual training sessions were harassment prevention, supervisors' responsibilities and inthe handling of concerns, the CodeofConduct,includinganti-corruption,humanrights,non-discriminationand Employees were provided trainingaboutethicsand compliance, withparticularfocuson that were distributedtotheentire workforce andthatdealtwithdiscrete topicsundertheCode. communications reinforced thetraining,suchasshortvideosfeaturingseniormanagement with modulesthattestedcomprehension. Completionrateswere closelymonitored. Other the workforce. ThelevelofknowledgetheCodeConductwasmeasured viatraining The Group to disseminated theCodeofConductandvaluesgoodgovernance
35 2020 SUSTAINABILITY REPORT Business Model and Governance Corporate Governance • • • oftheCodeConductwereViolations identifiedthrough: representatives, ortheLegalDepartment. the FCACodeofConductbycontactingtheirimmediatesupervisor, HumanResources theapplicationandinterpretationFCA employeescouldalsoseekadviceconcerning of example, toverifydefinitionsoftermsor restrictions undertheCode). and otherstakeholderstorequest adviceabouttheapplicationofCodeConduct(for In addition,theFCAEthicsHelplinealsoallowedemployees,suppliers,dealers,consumers meet complianceneedsandmaintainaconsistentreporting environment. provider, available24hoursaday, sevendaysaweek.FCAchosethisreporting channelto have beeninconsistentwiththeFCACodeofConduct.Itwasmanagedbyanindependent telephone andwebtoreport ofallegedsituations,events,oractionsthatmay anyconcerns The EthicsHelplineoffered aworldwide,commonandindependentintakechannelvia or regulatoryanyconflictofinterest, concern, through the anonymously ifdesired, including anyvehiclesafety, communicateanyconcern, emissions FCA's workforce and business partners could always effectively, and in most countries placed theCompanyatrisk,andmayhavebeensubjectofdisciplinaryaction. or reportsauthorities.Anyfailure togovernmental inreporting such violationscouldhave but notlimitedto,issuesinvolvingvehiclesafety, vehicleemissions,financial reporting, violations oflaw, regulation orCompanypolicyofwhichtheybecomeaware, including non-compliance. Unless local law provides otherwise, employees were directed to report The FCACodeofConductclearlyandaffirmatively required employeesto report issuesof ACTING RESPONSIBLY •
checks performedaspartofthestandar periodic activitiescarriedoutbytheAuditandCompliancedepartment r r eports madetomanagementorHumanResources eports received through theEthicsHelpline d operatingprocedures. Ethics Helpline. Total Protecting Our Workforce Our Protecting Conducting Business Parties External with Interacting Managing Our Assets and Information years forallothercompanies. to ensure 100%coverageeverythree yearsofallcommercial companies,andeveryfive professional opinions.Themostrelevant risksarisingfrom theassessmentwere audited and sectoraswellqualitative criteriasuchasinterviewswithseniormanagementand including those related to corruption on the basis of quantitative criteria: location, activity, The auditableuniverseofFCAcompanieswasassessedannually forsignificantrisks, comply withlocallegislation. disciplinary measures takenwere commensuratewith theseriousnessofcaseand Fair andSecure Workplace andEnsuringHealthSafety. ForallCodeviolations,the Practices. Finally, Protecting OurWorkforce includesbehaviorsrelated toMaintaininga Purchasing GoodsorServices,Transacting BusinessLegallyandEngaging inSustainable Supporting OurCommunities.TheConductingBusinesscategory covered Sustainably Parties comprisedAvoiding ConflictsofInterestThe categoryInteractingwithExternal and Records. includes CommunicatingEffectively, Protecting FCAAssetsandMaintainingAppropriate organize the Principles of the Code. Accordingly, Managing Our Assets and Information The violationsoftheCodeConductwere grouped according tothefourcategoriesthat category by Violations oftheCodeConduct Violations of theallegationswithaspecificfocusonsignificantcases. The FCAAuditCommitteeoftheBoard ofDirectors wasperiodicallyupdatedonthestatus Compliance Committee.Therelevantfunctionswere internal notifiedoftheviolations. at theregional levelandwhere deemednecessaryescalated totheglobalFCAEthicsand results and anypotentialactionswere assessedbytheEthicsandComplianceCommittee FCA analyzedandinvestigatedtheallegationsreceived through theEthicsHelpline;
Total closed cases 1,663 1,169 308 113 73 Total confirmed cases [ SDGs16] 471 199 181 77 14
36 2020 SUSTAINABILITY REPORT Business Model and Governance Corporate Governance DO THERIGHTTHING common ethicalconcerns. guidelines from different globalbusinessleaders regarding The videoseriesincludedglobalmessages andessential activities, withtheaimtohelpguide everydaydecision-making. most commonethicalissuesthat maycomeupinday-to-day asked abouttheCodeofConduct andexplainedsomeofthe The videosincorporateinformation,examplesandquestions continued in2020through a dedicatedintranetpage. standards embodiedinit,the videoseries"DotherightThing" Conduct andcreate astronger awareness ofthehighethical To enhanceFCAemployees'familiaritywiththeCodeof
• • • • major stakeholders: The HumanRightsGuidelinescovered therightswesoughttoensure for, andwith,our SlaveryAct2015. LabourOrganization,andtheU.K.Modern International Companies, theDeclarationonFundamentalPrinciplesandRightsatWork ofthe the UnitedNationsSustainableDevelopmentGoals,OECDGuidelinesforMultinational United NationsGuidingPrinciplesonBusinessandHumanRights(RuggieFramework), the spiritandintentofUnitedNationsUniversalDeclarationHumanRights, The FCA Human Rights Guidelines, which were publicly available, were consistent with partners, withwhomwedobusiness,toadhere tothesestandards. FCA promotes theseprinciplesandexpectsoursuppliers,contractorsotherbusiness geographic areas where theGroup operates. principlesfortherespect andsupportoffundamentalhumanrightsinallinternational FCA requires adherence toapplicable local laws that were designed to recognize The Group was committed to the prevention of adverse human rights conditions. HUMAN RIGHTS
value chain. an overallimprovement inoccupationalhealth andsafetyperformancethroughout the related rules and regulations, and to adopt measures and standards that contribute to They were also required to comply with all applicable occupational health and safety business partnerswithwhomwe dobusiness,toadhere toour humanrightsstandards. communities where wehadoperations. our customers. the workplacewasminimized. improving healthandsafety measures tohelpensure thatthepotentialforinjury in workforce inaccordance withapplicablelawsand wasdedicatedtoconsistently our worldwideoperationswiththehighestregard forthehealthandsafetyofour with all applicable employment, wage and working hour laws. FCA conducted all of committed toproviding employment conditionsthatwere competitiveandcompliant We recognize andrespect workforce members' freedom ofassociationandwere a diverse and inclusive workplace, free from discrimination and harassment. Business partnersandsuppliers: FCAexpectedoursuppliers,contractorsandother Communities: FCAwascommittedtosociallyr Customers: FCAwascommittedtoof Employees: FCApr ohibited theuseofchildandforced labor. We soughttoprovide fering safe,reliable, high-qualityvehiclesto esponsible engagementwiththe
37 2020 SUSTAINABILITY REPORT Business Model and Governance Corporate Governance • were developed: identifyandmitigateanyrelated risks,thefollowingtools As partofourinitiativetointernally our businessandinsupplychain. Our duediligenceprocesses includeactionstosafeguard againsthumanrightsabusesin •
on theyearlyAuditPlan. and HumanRights.Checkswere performedinthosecountrieswithahighriskbased diligence requirements oftheUN Ruggie Framework Guiding Principles on Business auditprocess,organization aspartofthestandard inorder internal tocoverdue a HumanRightsself-assessmentperformedbytheAuditandCompliance an annualsurveyaimedatdetectingchildandfor in anyofthecompaniesmapped. issues. In2020, noincidents of childlabor orforced andcompulsory laborwere reported including thoselocatedincountriesthathadnotratifiedILOConventionsonthese DATA PRIVACY RIGHTS in caseofunlawful dataprocessing. will beused,exercising therighttolodgea complaint withasupervisoryauthority andtransparencyfairness toensure thatthedatasubjects trusthowtheirdata had arelationship. Treatment ofthedatarespected theprinciplesoflawfulness, employees, contractors,suppliers, customersandotherpersonswithwhomwe FCA collectedasignificantamount ofpersonallyidentifiableinformation relatedto risks andincidents. personal andsensitivedata,theprevention ofpotentialprivacyandsecurity website, andspecificPrivacyPolicies,provide guidanceonthemanagementof Conduct andDataPrivacyGuidelines,whichwere availableonourCompany thecollectionandprocessingworld thatgovern ofpersonaldata. FCA aimedtooperateinaccordance withthelawsandregulations around the as confidentialityandpersonaldataprotection rights. be fundamentalinourbusinessrelationships andintendstoprotect valuessuch FCA considered thepersonal rightsandprivacyofeacheveryindividualto ced labor at worldwide FCA companies, ced laboratworldwideFCAcompanies, Our Codeof
sector, inparticularwiththeincreasing relevance ofconnected vehicles. with privacyregulations relating tonewtechnologiesappliedtheautomotive Automobile Manufacturers’ Association(ACEA),sharingbest practicestocomply In particular, FCA participatedactivelyindiscussionsledbytheEuropean in workinggroups amongprofessionals tofostertheexchangeofbestpractices. FCA provided trainingandawareness withintheGroup companiesandtookpart Regional PrivacyOfficeswhichconsistofICTandLegalprofessionals. regulations. Alongwithcollaborating witheachother, theysupportedtheir providing guidancetotheorganization onrequirements ofrelevant dataprivacy Organization. RegionalandBusinessDPOswere responsible fordefiningand appointed theGroup Data Protection Officer(DPO)whodefinedtheFCAPrivacy theaimofpromoting andmonitoringthedataprivacycompliance,FCA With data storageandexchangenetworks. design” and“privacybydefault”wasconstantlyimproving thesecurityofits The Group hadalready committedtotheessentialprinciplesof“privacyby • • Areas covered bytheself-assessmentinclude: In • • • • were availableonourcorporatewebsite. potential violations,including theFCAEthicsHelplineandworldwidecontactlistwhich Alleged human rights violations were reported through the same channelsas other types of Argentina, Brazil,Canada,China,Italy, Mexico,Romania, SwitzerlandandtheU.S. a coverageof75%theFCAworkforce worldwide,involvingthefollowingcountries: individual legal entities and reviewed by the Audit and Compliance organization, with
Child laborandyoungworkers Supply ChainManagement Security Conditions ofemployment Fr For 2020, the human rights self-assessment compliance checklist was performed by eedom from discrimination ced labor 38 2020 SUSTAINABILITY REPORT Business Model and Governance Corporate Governance emissions by 2020 compared with the baseline of 2006 for mass-market cars sold in Europe. To reduce theimpactofourvehicles,westrivedtoreduce CO to alow-carbonfuture. FCA acknowledged the challenges posed by climate change and the goal of transitioning communications andtrainingactivitiestosupportthisobjective. efforts toprotect theenvironment, andprovide awiderangeofengagementopportunities, throughout thevaluechain. We encouragedouremployeestotakeanactivepartin related regulations andtocontributeanoverallimprovement inenvironmental impact business partners, licensees, and joint venture partners to comply with all environmental- We expectedournon-managed operationssuchassuppliers,dealers,contractors, regarding theuse,maintenanceanddismantlingofvehiclesotherproducts. and eco-friendlyuseofourproducts, providing customersanddealerswithinformation our businesspartnersandthecustomerswhodrivevehicles. We encouragedthesafe Responsibility forprotecting theenvironment rested witheveryoneatFCA,aswell aswith involvement oftheentire manufacturingworkforce. our manufacturingoperationsbyapplyingmethodsandstandards withrigor, andwiththe to evaluateandaddress alltypesofoperationalwasteandlosses,reduce injuriesat structured production system that promotes sustainable, systematic improvements aimed In ourindustrialoperations,theCompanyadoptedWorld ClassManufacturing(WCM),a and fuelrequirements ofeachmarket. technologies, whilerecognizing andaccommodatingthedifferent economic,geographic and tangible results canbestbe achieved bycombining conventional and alternative of renewable mobilitysolutions.We materials,andalternative believedthatimmediate powertrains, improved aerodynamics, weight reduction, safety, quality, increased use cycle. Ourapproach toresponsible vehicledevelopment includeddedicationtoefficient We evaluatedtheimpactofourvehiclesonenvironment throughout theirentire life promote andinstillthesevaluesinourproducts andoperations. established Environmental Guidelines,whichwere publicly availableonourwebsite,to We fostered environmental protection inouroverallapproach tobusiness operationsand environment, andonourrole indevelopingsolutionstoreduce ourenvironmental footprint. We were focused on the effect that our activities and products have on society and the ENVIRONMENTAL PROTECTION In theEuropean Union(EU),theCompany set atargettoachieve40%reduction inCO economy inresponse totheuniqueregulatory requirements oftheCompany's majormarkets. 2 emissions and improve fuel emissionsandimprove fuel 2
included appropriate anti-corruptionrepresentations, warrantiesandrelated clauses. acquisition transaction,andensured thatthefinalagreements inanysuchtransactions FCA alsoconductedappropriate duediligenceinvestigations priortoanymergerand due diligenceprocedures, ifany. corruption laws,andthattherepresentatives were subjecttotheCompany’s applicable signed written agreements that contained clauses that required their compliance with anti- that engagedthird partiesto act onitsbehalfwastoensure thatsuchrepresentatives These principlesappliedtothird parties that actonFCA’s behalf.EachFCAcompany (i.e., improper officials)were transactions notinvolvinggovernment alsoprohibited. Company. Facilitatingpaymentsor"grease payments"aswell commercial bribery official for an improperto a government purpose in connection with their work for the shall directly orindirectly, give,offer, promise, authorize,solicitoracceptanythingofvalue The Group’s policywasthat nodirector, officer, employee,agent,orbusinesspartner andpublicinstitutionrelations.government were, amongothers,rulesrelated toanti-bribery, anti-corruption,competitionlawand Included intheCompanyCodeofConduct'sPrinciple"Transacting BusinessLegally" TRANSACTING BUSINESSLEGALLY on theresults achieved. 2020. Pleaserefer totheSustainabilityTargets sectionofthisreport formore information Most ofthecompany'stargets,includingthosementionedabove,expired attheendof (accounting forabout57%ofpurchases byvalue)2020. gas emissionsandsetatargettomonitorCO FCA alsohelpedmobilizesupplierstobecomeactivelyinvolvedincuttinggreenhouse worldwide. certificationsforourplantsoperating management aswelltheadoptionofinternational Global goalsforourmanufacturingoperationsfocusedonenergy, waterandwaste replaced vehicles/models. improvement infueleconomyformajorrenewals ofFCA US vehiclescompared with year fueleconomyreduction targets,includingtheachievementofatleastafiveto15% industry year-over-year averagefleetwidefueleconomyperformance. We setyear-over- In the U.S., we targeted actions in support of the U.S. EPA/NHTSA’s goal of increasing 2 emissionsofatleast90%topsuppliers
39 2020 SUSTAINABILITY REPORT Business Model and Governance Corporate Governance interest disclosures through theFCAEthicsHelpline. potential conflicts,theGroup implementedadedicatedmoduletosubmitconflicts of Thus, in order to assist the workforce in the management of conflicts of interest or any the performanceofwork-related duties. interests couldcompromise objectivebusinessdecisionmakingorotherwiseinterfere with had interests thatcompromise theinterests ofourCompany, because theseactivitiesor Conflicts ofinterest could arisewhen membersofourworkforce engagedinactivitiesor the highestdegree ofintegrityandtoactsolelyinthebestinterests oftheCompany. When dealingwithourbusinesspartners,workforce wasexpectedtoalwaysmaintain Guidelines, periodictraining,awareness andcounseling. we adoptedacomprehensive complianceprogram, which includedCompetition Company’s commitmenttocomplianceinthisarea inallcountrieswhere wedobusiness, Compliance withcompetitionlawswasalsocrucialtotheGroup’s reputation. To fulfill through thesamechannelsasothertypesofpotentialviolations. transactions. Allegedviolationswere reported through theFCAEthicsHelpline,aswell designed toensure integrityandaccuracyintherecording andreporting ofallbusiness FCA’s record accountingandcontrol keepingandinternal PracticesandProcedures were any finaljudgmentduring2020. the paragraph "Risk Management" in the Form 20-F, on which the Group has not received The Groupinvestigationsandlegalproceeding issubjecttogovernmental asreferred toin LEGAL PROCEEDINGS were madetopoliticalparties. authorized attheappropriate levelwithineachGroup company. In2020,nocontributions Political contributionsbytheGroup were onlyallowedwhere permitted by lawand mustbe applicable localprocedures. applicable laws and ethics rules as well as in full compliance with the Code and any andpublicinstitutionrelations,government includinglobbying,inaccordance with As reported intheCode of Conduct, the Group was committed toconducting our 40 2020 SUSTAINABILITY REPORT Business Model and Governance Risk Management related risks. related the and return and of growth goals our between balance we to strive achieve risks, a associated the managing By we compete. which in markets the and by business our generated opportunities the on capitalize and to identify ability our on depends organization an as success Our agenda. team leadership of the core the at are assessment opportunity and risk where management, to risk approach We plan. integrated take an business Group’s of the to achievement the integral is and driver business important an is management Risk Management Risk UNITED NATIONS SUSTAINABLE DEVELOPMENTGOALS(SDGS) KEY FCAFIGURESSUPPORTING IDENTIFIED DRIVERS RISK 50+
FROM 65GROUPPLANTS ~150 SPECIALISTS INVOLVED WEB SEMINARS LOSS PREVENTION 12 41 2020 SUSTAINABILITY REPORT Business Model and Governance Risk Management environment. provides acompetitiveadvantageinfast-changingand challengingglobalbusiness The riskmanagementprocess usedisafactorinoursustainabledevelopmentand • The three primaryelementsoftheglobally-integratedCompany'sapproach are: and economicallyfeasible,secure insurancetocoverpotentiallosses. occurrence, developplansforresponding toeventsshouldtheyoccur, andwhere possible After firstidentifyingtherisks,wetakepreemptive stepsto reduce thelikelihoodof qualitative, suchasreputational riskamongconsumers,businesspartnersorinvestors. to significant.Theyare oftentangible–usuallyquantifiedinfinancialtermsor more Whether consideringlocal,regional orglobalrisks,theirimpactcanrangefrom minor and investor management portfolio decisions; employee health, safety, and retention issues; and similar exposures within the supply chain. initiatives;regulatory competitive actions; accidents; risks by posed disasters; industrial natural climate change; claims and lawsuits; liability uncertainty; including socio-economic of possibilities, array a broad of to mitigation risks and encompass our business management The • •
Risk Management development ofinnovativerisksolutions. and naturalhazard risks,but havebeenextendedtoseveralotherpure risksthrough the process for effectiveness. These activities are not only focused on the more common fire optimized prevention, protection, and risk transfer countermeasures; and monitors the business interruptionlosses;assignsprobability andestimatestheimpact;implements the LossPr events thatimpairproduction across multipledaysand/or manufacturingplants. approach torestoring normalbusinessoperationsafter majordisruptions–typicallythose the BusinessContinuityManagementpr metrics forkeyglobalrisksthroughout theyear. place, determinethe acceptable risktolerance, and monitor mitigation actionsandrisk and prioritizerisksbasedonimpact,likelihoodcontrols, andmitigationactionsin could hindertheabilitytoachieveourstrategicgoals.Allregions collaboratetoidentify the Enterprise Risk Management process, which increases visibility to key risks that evention process, whichidentifiesconditionsthatcould result inproperty and ocess, which establishes and validates a structured ocess, whichestablishesandvalidatesastructured • • • The analysisofpotentialrisksis: further broken downintoapproximately 100potentialriskevents. developments, orjointventures. More than50riskdrivers havebeenidentified,whichare requirements or tosignificantemergingissuessuchasclimatechange,macroeconomic identified duringevaluationsofotherindustrialgroups, wecanbetter respond to new to managebymakinginformed,risk-baseddecisions.Byincorporatingbestpractices the core elementsofbusinessplanning,execution,monitoringandadaptingallowsus Code,andwasadaptedtotheuniqueneedsofGroup. AdheringtoGovernance - EnterpriseRiskManagementmodel)andtheprinciplesofDutchCorporate Committee ofSponsoringOrganizationstheTreadway Commission(COSOReport Our approach tomanaging thoserisksisbasedontheframeworkestablishedby impact theCompany’s abilitytoachieveitsobjectives. FCA's EnterpriseRiskManagement(ERM)modeldefinesariskasanyeventthatcould ENTERPRISE RISKMANAGEMENT potential risks,andformulaterisk mitigationplans. segments. Thesemeetingsprovide theforumtofacilitatediscussion,identifyandevaluate responsible forconducting cross-functional meetingswiththeheadsofkeyoperating We appointERMcoordinators foreachoperatingsegment oftheGroup, whoare
cr pr mitigating actionsidentifiedand/orimplemented dynamic: duetoperiodicevaluationofthemainriskswithfollow-up andmonitoringof oss-functional: through risk assessmentwithdirect involvementofbusinessareas. edictive: through prospective riskassessment 42 2020 SUSTAINABILITY REPORT Business Model and Governance Risk Management FCA AnnualReport. For furtherdetails,seeSignificantRisksIdentifiedandControl Measures Takeninthe2020 driving toanalignmentwiththeglobalfocusrisksforGroup. disclosed inthematerialitydiagram,were includedintheERMriskassessmentdiscussion, subsequently definedforeachidentifiedrisk.Inaddition,sustainability-relatedas topics, has beenclassifiedbyriskcategoriesandcontrol measures andmitigatingactionsare materials; commercial policies;andcorporatecybersecurity. Eachkeyglobalfocusrisk satisfaction; talentmanagement;interruptionofcriticalsuppliesandriskscarcity ofraw portfolio andtechnologystrategy;developmentproduct launch;customer Key globalrisksidentifiedin2020include related to regulatory compliance;product Directors intheirresponsibility forstrategicoversight of riskmanagementactivities. Once validated, results are submitted to the AuditCommittee,assisting the Board of significant globalfocusrisksare identifiedandmonitoringactions are established. Committee (GRMC)andGroup ExecutiveCouncil(GEC).Aspartoftheconsolidation, results intoaGroup report forreview andvalidationwiththeGlobalRiskManagement Chief OperatingOfficersandtheGlobalRiskOwners.ThecentralERMteamconsolidates segments view for each functional areas, and includes the review by the responsible An enterpriseriskassessmentisperformedannually, basedonaglobalandoperating
BUSINESS CONTINUITYMANAGEMENT • • • • The businesscontinuitymanagementprocess hasfourelements: and reducing recovery timeintheeventofadisruption. structured anddisciplinedapproach toreducing thelikelihoodandseverityofdisruptions, or unforeseen eventswithinoursupplychain.Ourbusinesscontinuitymanagementisa These potentialeventsincludenaturaldisasters,pandemics,facilityissues,cyberattacks, a catastrophic eventcausesamajordisruptionrequires planninganddiscipline. Managing businessoperationsandreturning tonormalproduction scheduleswhen Mexico thatmostdirectly impact operations. been developedforacore setofsupportingcorporatefunctionsintheU.S.,Canadaand than 90% of FCA's total North America revenue attributed to vehicle sales. Plans have also risk manufacturingplantsintheUnitedStates,CanadaandMexico, accountingformore By theendof2020,BusinessContinuityPlanshadbeendeveloped for23ofthehigher- regularly bymanagement. The results andprioritiesof theBusinessContinuityManagementprocess are reviewed
A production systemuntilresolved Key operationalrisksandmitigationinitiativesmaythenbeassociatedtoanyfacetofthe vehicle orcomponentproduct lineswithineachplant resultant financialimpactofeachplant.Financialisalsodeterminedforindividual An enterpriseimpactanalysisiscr knowledge canbeshared across businessunitsand plants Current recovery strategiesare documented.Dataismadeavailabletoemployees,and infrastructure, process equipment,datatechnology, humanresources, andsuppliers. Critical pr Elements oftheplanare testedannually, ataminimum,through asimulationexercise. recovery. Aflexibleapproach allows eachplanttodevelopasituation-specific response. Business Continuity Plan is developed to summarize information required for business oduction processes foreachplantare mappedtokey inputs,includingfacility eated toidentifyplantinterrelationships, andthe
43 2020 SUSTAINABILITY REPORT Business Model and Governance Risk Management (FCA ServicesisISO27001certified)andfocusesoncontinuity of services. Services BCPfollowsthebestpracticesandrequirements standards ofinternational processes andactivities withinFinance,Taxation, HRServicesandCustoms.TheFCA FCA Servicesistheshared servicecenterdedicatedtosupportingFCA'sworldwide activities, FCAServiceshasputBusinessContinuityPlans(BCP)inplaceitsoperations. • • Disaster RecoveryenablesFCAto: outlined bytheNationalInstituteofStandards andTechnology (NIST). Disaster Recovery program is executed within ICT, following standards and guidelines compliance. Theregional ChiefInformationOfficersare responsible forensuringthatthe The DisasterRecoveryTeam overseesprogramand administration,governance, acceptable timeframes. downtime andrestoring businessoperations,andsupportingapplicationswithin an extendedperiodoftime.Accordingly, disasterrecovery's goalsincludeminimizing Many businessfunctionsare extremely timesensitiveandcannotbeinterruptedfor business disruptionsimpactingInformationandCommunicationsTechnologies (ICT). as itentailsstrategiesandprocesses toplanfor, respond to,andrecover from significant Disaster Recovery Management iscomplementary tobusiness continuity management Because disruptionstobusinessoperationsmayalsoimpactnon-manufacturing •
meet ourcontractualandlegalobligations. minimize thelossofdata,r h conducting businessatFCA elp ensure the safety and well-being of personnel, customers, and other individuals evenue, andcustomersintheeventofadisaster
• • • • • • • • This BCPincludes: operations, allowingemployeestocarryouttheiractivitieswithout impact tothebusiness. pandemic, theBCPwasactivatedsuccessfullyin2020allcountries where FCAhas and consistentimprovement oftheBusinessContinuityPlan.DuetoCOVID-19 auditorstoassure thecorrectness andindependentexternal Committee aswellbyinternal All FCA Services Business Continuity activities are reviewed every year by a Steering •
campaigns andnewsletters involve andtrainemployees requirements andthefullachievementofallobjectives Policies andPr Business ContinuityPlanenhancementsasar t consistent contr disruption scenariostobepr covering incidentsthatcouldaf Business ContinuityPlanswithallstepsandactionstobetakenincaseofadisruption Business Key PerformanceIndicatortoassessthecorr E and newcountermeasures are implemented evaluate financial, reputational andoperationalimpact. To mitigatetherisks,actionplans esting, from simulation exercises to full testing, to ensure the validity of the plan and nterprise Risk Assessment and Business Impact Analysis to identify the risks and Continuity training including a number of awareness-raising activities such as ocedures regularly updatedfollowedbyallFCAServices countries ol andmonitoringofeventsthatcouldimpactthebusiness epared addressing adversesituations fect partorthewholecompanybusinessprocesses ect alignmentofallpartieswiththeBCP esult oftestingperformed. 44 2020 SUSTAINABILITY REPORT Business Model and Governance Risk Management sharing, disasterresponse andrecovery efforts. procedures. Itsfocusistheallocationofresources andefforts amongriskreduction, risk hazard risk-related eventsandtoquicklyinitiateloss prevention ormitigationpracticesand events. Thegoalofthecompetencecenteristoreduce thedetectiontimeofnewnatural advanced and innovative engineering solutions related to physical risks created by natural More than 10 years ago,FCA created acenter of competence whose mission isto develop levels ofmanagement. new projects andinitiatives,issupportedpromoted bytheorganization'shighest business. To beeffective, lossprevention mustbeembeddedinday-to-dayactivities, mitigation tohelpprevent property damagethatcouldresult ininterruptions toour FCA benefitsfrom ariskmanagementpolicystrongly focusedonlossprevention and experienced them. of theseincidents,andmayintroduce newhazards inareas thathavenotpreviously storms, are ontherise.Climatechangewillfurtheraltermagnitudeandfrequency Industrial losses from or naturalsevere disasters such as earthquakes, flooding, tornadoes Natural hazards canthreaten theGroup's physicalassetsandbusinesscontinuity. LOSS PREVENTIONMANAGEMENT LOSS PREVENTIONAT THETIMEOFCOVID-19 • • • • production resumption slowingdown,wefocusedonfourspecificareas: as soonpossible.Inorder tominimizethelikelihoodoflosses andtherelated protection measures neededforensuringreturntonormalproduction standards challenge wastoimplementalltheordinary andextraordinary prevention and the Group’s assetsandbusinesscontinuitybytheglobaloutbreak. Themain functional workgroup whose missionwastoidentifynewrisksintroduced for pandemic. From theearlystages, theLossPrevention Team ledacross- In 2020,lossprevention activities were significantlyimpactedbytheCOVID-19
Risk monitoring Sites pr Pr Human factorpr otection systemsmaintenance esidium evention • protection forthoseactivitiessusceptibleto newrisksattheplantsconcerned. the emergencyperiodinorder toensure thehighestlevelofprevention and The LossPrevention teamwasalsoinvolvedinseveralinitiatives launchedduring • • • advisors, re-analyzed allthe activitiescarriedout,actingonfourspecificlevels: In response, theLossPrevention team,withthesupportofriskengineering whichdid not eliminatetheGroup’speriod, industrial risksbutintroduced newones. It wasvitalthatlosspr
Seize opportunitiespr Incr Simplify allbusinesspr Identify andprioritizeallactivitiesdeemedindispensableunavoidable • in-depth andconsistentassessmentofriskacross theGroup. consulting firmsspecializedinindustrialrisk.Theyusefieldauditsto provide animpartial, The Loss Prevention Managementprocess is conducted with the support of external • • • controlling, monitoringandreporting riskatalllevels.Four pillarsdescribeourapproach: Our RiskManagementpolicyaimstoensure thattheGroup hasaconsistentbasisformeasuring, Group’s 1,264sitesworldwidecovered bytheinsuranceprograms. the potentialtoimpactcontinuityofoperationsorintegrityphysicalassetsat explosions, andnaturaldisasters-playingacentralrole inmanagingeventsthathave Specific activities include monitoring and insuring against pure risks - such as fire,
risk transferprograms centralizing andconsolidatingr minimizing thecostofriskbyoptimizinglosspr adopting higherinter pr ease focusoninnovationandtechnology eventing accidentsormitigatingtheireffects evention activities continued during the "production pause" pause" "production evention activitiescontinuedduringthe esented byacrisisperiod. ocesses national standards forrisk prevention elationships withglobalinsurancemarkets. evention, investment,self-insuranceand 45 2020 SUSTAINABILITY REPORT Business Model and Governance Risk Management • • • • • • The followingprojects are core operationalactivities: procedures. changing risks,andtopromptly adapttheFCAlossprevention andmitigationpractices This proactive approach willcontinuetoreduce thedetectiontimeofnewlydeveloping or losses andcostsassociatedwithnaturalhazards isessentialforbetterhazard mitigation. understand the impactsofnaturalhazards and respond appropriately. The abilitytoassess several forward-looking andinnovative risk engineeringapproaches andsolutionstobetter To bolsterthesustainabilityandresilience oftheGroup, theriskmanagementfunctionlaunched internationally-recognized experts. assessed andcertifiedbyexternal, industrial excellenceinthefieldoflossprevention. Suchpracticeandprotection standards are and protection standards incombatingproperty damagerisksplacingtheGroup amongthe insurancemarket.Thisreflectsinternational theFCA'shighestleveloflossprevention practice and plants,thisenabledan84%HighlyProtected Risk(HPR)certifiedinsured valuefrom the Because theGroup investedtoincrease thelevelofprevention andprotection ofitssites production pause,resulting inatotalof87%for2020. prevention. Inaddition,57 RemoteRiskDialogueassessmentswere completedduringthe projects were inspectedormonitored toensure standards conformitywithinternational inloss 55 sites(outof156),representing approximately 60%ofFCA’s insured value,and272new surveyed atleastonceeverythree yearsandmore than50% issurveyedannually. In2020, monitored, 100% of FCA's total insured value managed by Fiat Chrysler RiskManagementis representing 86%oftotalinsured value.To ensure thatindustrialriskisadequatelyandefficiently During 2020,FCA’s risk management entitiesfocused onmanaging 156sites worldwide,
cyber riskmanagement. supplier riskmanagement parking lotriskmanagement flood riskr earthquake riskr insurable envir e-engineering project onmental riskmanagement e-engineering project
OVERCOMING 2020CHALLENGES prevention procedures. appreciated, thewebclasseswillbecomeanintegralpartof therisk related tofire prevention. Duetotheireffectiveness, theinitiativedeeply some 65Group plants.Thewebclassesdealtwithdifferent issues various regions. Twelve webseminarsabout150specialists from via webtoalllossprevention specialistsworkingfrom homeinthe Loss prevention webinars: Web-based trainingclasses were delivered Management's oversighttoward prevention issues. possible tocontinuemonitoringthelevelofprevention, whileensuring completing 57lossprevention assessmentsremotely. Thismadeit and reduced staff. Thismethodologywaslaunchedinallregions, vital prevention andprotection activitiesatoursitesduringsiteclosures remote methodologywasdeveloped tocontinuemonitoringthelevelof and allfieldriskanalysisactivitieswere suspended.Analternative completed. DuetoCOVID-19,FCAexpandedremote workingoptions probability anddamageoncerecommended improvements are potential economicimpactofloss;costnecessarymitigationaction, added valuefrom quantifiedestimatesofprobability of occurrence; are mostlycarriedouton-sitetodetectallvariablesinvolved;provide Loss prevention remote riskdialogue:Industrialanalysisactiv ities all sitesoftheGroup inorder toensure auniformapproach inallregions. them forproduction restarting. Theseguidelineswere communicatedto protection levelattheCompanyindustrialsites,withaimtoprepare guidelines were studiedto maintainanadequateprevention and risks introduced bycrisisdeviating conditions.Therefore, targeted normal prevention processes andprocedures andmanageanynew that wasadirect result ofCOVID-19,theGroup’s siteshadtomaintain Targeted prevention guidelines:Duringtheproduction stoppage 46 2020 SUSTAINABILITY REPORT Business Model and Governance Risk Management • managed, enablingtheGroup tosecure insurancecoverage. environmental riskshave beenadequatelyidentifiedandquantified are properly assessment tool.Resultspresented totheinsurancemarketconfirmthatFCA’s insurable provide aquantificationof theoveralllevelofrisk,usingascientifically-basedcertifiedself- These activities enable the development of the Group’s environmental maps, which the consistencyofself-assessmentsandidentifypossibleimprovement opportunities. environmental riskengineersfrom aleadingglobalenvironmental riskinsurer tovalidate were 21self-assessmentsandoneadhocon-sitevisit.Thevisitwasconductedby representative intermsofsize,activityandgeographical distribution.In2020alone,there self-assessments, 26 ad hoc on-site visits have been conducted at Group sites considered and quantifiedusingthismethodology. Further, tovalidateinformationcollectedthrough 86 Since thelaunchofproject, 92%ofFCA’s worldwidetotalinsured valuewasanalyzed • • • enables theGroup to: This program, ofthelossprevention whichhasbecomeacornerstone activitiesofFCA, Group, consultancyandcertification firm,and aninsurancepartner. a major international in collaborationwithEnvironment, HealthandSafety(EHS)departmentsacross the FCA usesaninnovativeenvironmental riskmanagementmethodologydeveloped ENVIRONMENTALINSURABLE RISKS •
obtain envir inform theinsurancemarketofactivitiestopr understand andclearlycommunicateprioritiesbenefits obtain objectiveandquantifiedassessmentsofitsinsurableenvir execute pr potential loss evention activitiesinlinewithGroup strategies. onmental insurancecoverageappropriate tothelevelofriskexposure and event andmitigatepotentialenvironmental losses onmental exposures
quantitative seismicassessment. 126 selectedFCAsites,withfurther13nolongerwithinscope,were analyzedproviding Since itsinceptionin2013,theIntegratedApproach hascovered theGroup worldwideand building structuralresponse, andtheuniqueeconomicactivitiesassetvalues. quantification of all basic components of thatrisk: the seismic hazard of the site,the expected and rationalallocationofavailableresources. Thismethodology encompassesindividual management, amulti-levelframeworkthatallowssimultaneousseismicriskassessment and universities,developedtheIntegratedApproach toseismicriskassessmentand Fiat ChryslerRiskManagement,incollaborationwithspecializedriskconsultants and businessinterruption. based onsoundriskestimationisvitaltocontrol exposure topotentialproperty damage industrialized countries have demonstrated that a structured risk-engineering program of expectedlossesduetoseismicevents.Inthelastdecade,eventsaffecting A robust riskmanagementdecision-makingprocess requires quantitativeestimates EARTHQUAKE RISK PROJECT updated duringeachsubsequent survey. methodology. Theinitiativeisconsidered completeandtheriskassessment willbe sites were identified as potentially exposed and all were reanalyzed applying the above This methodologyforindustrialfloodriskassessmentwas applied globallyand97 instrumental interpretation techniques alongwithfieldchecks. departments oftheinsurancecompaniesprovide theirriskanalysisbasedonvisualand mathematical modeling for the first macro analysis of the risk portfolio. The engineering companies provide mapping tools basedongeomorphologicalsatelliteimageryand global leaders.Enabledbytheirnaturalhazard research centers,thereinsurance loss prevention engineering departmentsoffourrecognized insuranceandreinsurance Chrysler RiskManagementhasformedaworkingteamconsisting ofspecialistsfrom the using advancedmodelingtools.To confirmtheeffectiveness ofFCAmethodologies,Fiat An effective andobjectivefloodriskassessment requires updatedriskmapsobtained FLOOD PROJECT RISK 47 2020 SUSTAINABILITY REPORT Business Model and Governance Risk Management • FCA and,where needed,recommend riskreduction actionplans. losspreventionteam todeterminetheiralignment withinternational standards adoptedby processes andprocedures. Smallersuppliers are visitedbyaspecialized lossprevention with deductivemethodologiesthat measure theirriskmanagement andbusinesscontinuity Large, globalsupplierswithwell-structured riskmanagement organizationsare analyzed components. to ensure thatriskmanagementprocesses inplaceare abletosecure theflowofkey Suppliers whoare identified undercertainriskcriteriaare encouragedtoworkwithFCA started tobeextendedtheotherregions. large componentmanufacturinggroups andsmallersuppliers.In2020,thismethodology in EMEA2017usingadedicatedriskrankingtool,theGlobalRisk Index,toselectboth in termsofsupplierriskidentification,quantificationandmapping. Apilotwaslaunched of property andbusiness interruptionrisks.Theinitialstudyconfirmed theexpected results Our supplychainriskapproach wasdevelopedin2015,focusingonanalysisandmitigation mapping hasbecomeanimportantfocus. event ofpotentialsupplydisruptions.Working todeveloptoolsthatsupportsupplychain profiles atlowertierlevelstoensure acompleteriskassessmentand response inthe along the supply chain, throughout its many tiers. It iscritical tounderstand supplier FCA strives to implement strategies that manage both everyday and exceptional risks SUPPLY RISK CHAIN • supported bytheGroup riskengineeringprovider developed ariskmappingtoolto: teamcomprisedoflogisticsandriskmanagementspecialists An international exposure.and external finished FCAvehiclesstored inparkinglotstodamagesuchasfire, hail,naturalhazards This globalproject aimstoassessandproactively managenaturalhazard risksthatexpose PARKING LOT PROJECT The initiativecovers227FCAvehicleparkinglotslocatedin33countries. •
defi and priorities pr collect keydatatoquantifyandcompar appropriate actionplans. oduce bothglobalexposures andspecifichazard risk mapshighlightingtoprisks ne both prevention and protection risk treatment priorities and outline the most e risksonaccumulationandpotentialexposures • and thorough analysisof: FCA's dedicated cyberrisk insurance coverageis designed on the basis of a comprehensive function ensures thatthisinitiativeisconsistentwithotherriskmanagement processes inplace. recommend focusedimprovements thatfurtherenhancetheirresilience. Theriskmanagement ICT macro processes toverifyalignmentwithindustry bestpractices.Where necessary, they coordinated bytheFiatChryslerRiskManagementloss prevention team,analyzeglobally the Specialized teamscomposedofFCAcyberriskexpertsandinsurance marketleaders, and CYBER MANAGEMENT RISK • •
plans andpr policies andpr protected andatwhichlevel the thr eats ofexposure ofvitalcompanyassets,includingtheinformationthatmustbe ocedures inplacetoneutralizethreats andremedy securityissues. ocedures inplacetoreduce theriskofattackineventasecuritybreach 48 2020 SUSTAINABILITY REPORT Employees and Community
Employees 50 Community 63
Diversity and Inclusion 52 Advancing Education 65 Management and Development 53 Working alongside the community 66 Compensation and Reward 55 Work-Life Balance 56 Occupational Health and Safety 57 Safety Insights 58 Health Promotion 59 Freedom of Association and Collective Bargaining 60 Management of Production Levels 61 Minimum Notice Period for Operational Changes 62 Employees and Community Employees barriers and developing and person’s each barriers potential. strengths, breaking down and geographic cultural into differences ways in transform that collaborate that values innovation employees to enables and environment working safe and to arewarding provide the outside inside and Company.stakeholders We work for value create backgrounds and perspectives diverse the around communities world. Employees with and customers business, our how they support and employees our with we FCA at do starts Everything Employees UNITED NATIONS SUSTAINABLE DEVELOPMENTGOALS(SDGS) KEY FCAFIGURESSUPPORTING HOURS OFTRAINING MILLION 1.1 EMPLOYEES 189,500+
WORLDWIDE VS2010 FREQUENCY RATE INJURY IN REDUCTION 87% 50 2020 SUSTAINABILITY REPORT Employees and Community Employees As ofDecember31,2020,theGroup employed189,512people. with opportunitiesduringtheirentire career, from recruiting toretirement. processes designed to secure the talent required by the business and provide employees To achievetheCompany'sobjectives,HumanResources functionsupportsrobust quickly to the market and to competitive actions. respond and to adapt Group the enables This change. for catalysts as act and opportunities to identify order in job to the experience FCA employees at and all levels their knowledge, bring creativity FCA worldwide Workforce byGeographicArea EUROPE 30.8% AMERICA LATIN 17% Employees ASIA 1.9% REST OFWORLD 0.1% AMERICA NORTH 50.2% FCA worldwide Workforce byOperatingSegment ACTIVITIES OTHER 12.5% MASERATI 0.9% FCA worldwide (no.) Workforce Trend byYear 198,545 2018 VEHICLES MASS-MARKET 86.6% 191,752 2019 FCA worldwide Workforce byCategory SALARIED 12% PROFESSIONAL 16% 189,512 2020 MANAGER 1.1% HOURLY 70.9% 51 2020 SUSTAINABILITY REPORT Employees and Community Employees technical careers amongwomen. reviews and promotions, work-life balancearrangements and events to fosterinterest in principlestocompensationlevels,annualsalary application ofourcore equityandfairness the automotive workforce. These include, among others, formal processes to monitor the Gender Equalitythrough a numberofactivitiesthataimtoadvancetherole ofwomenin FCA is aligned with the vision of the United Nations Sustainable Development Goal on planned tobelaunchedintheotherregions. charitable activitiesandcontributepolicyprocess improvements. Similargroups are opportunities,mentoringandnetworkingevents,communityoutreachlearning initiatives, Parent Network and the FCA Veterans’ Group. These resource groups provide multicultural EmployeesTogether,Latins inConnection,MiddleEastern Women’s Alliance,Working Connected Together, DiverseAbilitiesNetwork,FirstNations,GayandLesbianAlliance, Company's tenBusinessResource Groups include:AfricanAncestryNetwork,Asians In additiontocorporateinitiativesfocusedondiversityandinclusion, inNorthAmericathe several programs tofosteradiverseandinclusiveworkenvironment amongemployees. Under theguidanceofGlobalDiversityCouncil,regional Councilspromote improves theCompany’s understandingofourworkforce andourcustomers. management andtheCompany'slong-termsuccess.Awider, more diversepooloftalent Promoting equal opportunity in the workplace is vital to FCA's human resources national origin,disabilitystatus,geneticinformationorotherbasisprotected bylaw. gender identity, transgenderstatus, age, protected veteranstatus,maritalreligion, opportunities based onmerit without regard to race, color, sex, sexual orientation, Today, thisperspectiveismore importantthanever, empoweringequalemployment does nottolerateanyformofdiscrimination. to theCompany. TheCompanyregards thediversityofourworkforce asakeyassetand members ofourworkforce, oneinwhicheveryoneisvaluedfortheiruniquecontributions commitment tomaintainingafair, secure, productive andinclusiveworkplaceforall ethics and behavioral expectations of FCA's Code of Conduct that details the Group's collaboration anddynamicchange.Employeesare expectedtofollowthebusiness to constantlypushourselvesahead,leadinginnovationandexcellencethrough At FCA, weembrace aculture of diversity and inclusion that supports our desire DIVERSITY ANDINCLUSION
Professional Salaried FCA worldwide (%) Women byEmploymentCategory Hourly from thepriorsurvey. (14 mapped),employeeswithdisabilitiesmadeup3.7%oftotal employees,anincrease workforce. Thesurveyshowed thatinthecountrieswhere regulatory requirements exist with disabilitieswasconductedacross 39countries,covering99%oftheGroup's total countries where legallyallowed. In2019,asurveymonitoringtheemploymentofindividuals monitoring theemploymentofworkerswithdisabilitiesisperformedeverytwoyearsin The Company offers employment opportunities for individuals with disabilities. A survey year FCAwasincludedinLatinaStyle's2020listofTop 50U.S.companiesforLatinas. promoting andleveragingdiversityinclusionintheworkplace.Inaddition,for17th Most Diverse & Inclusive Companies.” The index lists the most successful companies in example, FCAwasrankedintheRefinitivDiversity&InclusionIndexglobal“Top 100 FCA received anumberofrecognitions forourcommitmenttodiversityin2020.Asan Total workforce Manager
2020 20.6 28.9 19.2 16.9 21.2 2019 20.4 29.0 18.8 16.6 21.0 View data 2017 [ SDGs5] 20.2 29.5 20.6 18.5 16.7 52 2020 SUSTAINABILITY REPORT Employees and Community Employees • • • • discussion one-Mobility. virtual competitionandorganized avirtualTalent Talk toprovide and aplatformforlearning European FormulaSAEevents.In2020,FCAtookpartinthe juryoftheDesignforFuture technical supportfor16yearsto universityteamsthatdesignandproduce prototypes in in specialeventsacross the regions. Forinstance,FCAhasbeeninvolvedinproviding opportunities tostudentswhileensuringtheirsafety. We alsocontinuedparticipation programour internship wasredesigned andanewvirtualoptionwascreated toprovide 2020 brought manychallenges includinghowweattractanddeveloptalent.Forexample, from recruitment through retirement. their career, makesattractingandretaining talentedindividualsatoppriorityateachstep professionals, whetherthose already partoftoday'sworkforce, orthosejustbeginning relate torewards andchallenges.AligningFCA'scurrent andfuture needswithskilled FCA recognizes theeverevolvingexpectationsofourworkforce, especiallyasthey TALENT ATTRACTION talent intoday'sautomotiveindustry. foundational elementsaswecontinueourefforts tobeanorganizationofbest-in-class • • • • according tothefollowingleadershipprinciples: considerable resources inemployeemanagementanddevelopment.We operate competitive edge needed in our industry. We value diversity and inclusion and invest Our employeesare oneofourgreatest strengths inproviding theCompanywith MANAGEMENT ANDDEVELOPMENT W
in allwedo we deliverwhatpr we aimtoachievebest-in-classperformance we embraceandcherishcompetition we defineleadershipasleadingchangeandpeople we r we valuediversityandinclusion. we collaborateandsimplifydecisionmaking,strivingforspeed,rigordiscipline we holdeachotheraccountablethr e expecteverydecision,includingtheappointmentofleaders,tobeinfluencedbythese ecognize andreward performance omise ough transparency, honestyandconstructivedebate
all salariedemployees. organization withresponsibility forrelated projects. Thisprocess encompasses virtually are incorporated in the performance management system for individuals across the conducted during2020forapproximately 58,000 FCA employees.Sustainability targets to theirresults andbehaviors.Completeperformance leadershipevaluationswere Through PLM,specifictargetsare establishedtoguideandassessemployeesin relation succeed. individuals withthetechnicalandmanagerialskillsneededforFCA andouremployeesto talent managementandsuccessionplanning.Thisrigorous, globalprocess helpsidentify which thevariablecompensationisbased.ThePLMprocess provides theframeworkfor employees. Thisindividualperformanceassessmentprocess isoneoftheelementsupon worldwide toassesstheperformanceofmanagement,professional andsalaried Performance andLeadershipManagement(PLM)istheappraisal systemadopted to respond tothechallenges ofourindustry. and thiscooperationcreates anattractiveworkingenvironment andaworkforce equipped managers andallotheremployeesshare dutiesandresponsibility inthisdevelopment, and developtalentedmotivatedemployees.TheHumanResources organization, FCA provides themeansforourworkerstogrow professionally, whichhelpsusretain TALENT PLANNING SUCCESSION MANAGEMENT, AND RETENTION activities. In2020,FCAgranted€2.1milliontosupportthisdegree program. research FCAemployeesare involved inlecturingandcoordination andinternationalization. Engineering degree program. Thisprogram focusesonthree mainareas: teaching, In Italy, FCAcontinuestocollaboratewiththe Politecnico of Turin for theAutomotive nurturing theskillsneededforFCA'sfuture workforce. opportunity to receive specialized instruction that focuses on their career interests, while classroom educationwithhands-on,industry-levelexperience.Thisgivesstudentsthe between the classroom andthe Company. These collaborations are designed to combine We also havestrategic relationships with several universities tohelp bridge the gap problem-solving skillstoamulti-sectorpanelofbusinessexecutives. they present givesthesestudentsanopportunitytodemonstratetheirknowledgeand leading businessschoolstocompeteformore than€43,000inscholarships.Thesolution This annualeventenablestalented,high-potentialMBAcandidatesfrom thenation’s as theU.S.NationalBlackMBAAssociationGraduateStudentCaseCompetition. In addition,tosupportFCAefforts to attractthebesttalent,wesponsor programs such
53 2020 SUSTAINABILITY REPORT Employees and Community Employees maximizing overallemployeesatisfactionandengagement. and information. We use these opportunities to plan and address specific actions aimed at of our new global employee portal which provides employees up-to-date company news surveys, employeemeetings,team-buildingevents,department meetingsandtheuse level. Formalopportunitiesforexchangeanddialogueinclude town halls,engagement seeks tofosteracompanyculture where newideasare encouragedandvalued atevery We believethatdialogueisanimportantcontributortoemployeesatisfaction,soFCA DIALOGUE EMPLOYEES WITH launched in2020. system rules andcommitments(22.1%).Thiswassupportedbyournewgloballearning (7.7%), cross-cultural awareness and language skills (1.5%) and corporate campaigns, training concepts: development of job-specific know-how (68.7%), managerial skills Investments invirtualandon-the-jobtrainingfocusedprimarilyontheGroup’s fourcore hours oftrainingtoapproximately 93,000Group employees. The Group investedabout€25millionintrainingduring2020,delivering1.1 of developmentopportunities,includingtraining,coaching,mentoringandjobrotations. are FCAoffers encouragedtoenvisiona career anumber thatinvolvescontinuouslearning. To remain competitiveinanautoindustryundergoingtransformationalchange,employees LEARNING MANAGEMENT leaders fortheirroles. helps protect theCompany’s future, leveragingourworkforce bypreparing the next were madeavailabletoFCA salaried andhourlyemployeesworldwide.Thisapproach engagement withseniormanagement.Approximately mobilityopportunities 3,000internal Such opportunitiesincludeassignmentstoothergeographicorbusinessareas aswell for individualstodeveloptheleadershipskillsnecessaryfurtherFCA'sfuture growth. Talent reviews andsuccessionplanningprocesses are designedtocreate opportunities View data generated through direct andspontaneousengagement ofemployeesworldwide. available forthecollectionofimprovement proposals, resulting inanadditional3,000ideas and best-in-class performance. Across the organization, other suggestion channels are engagement. In 2020, 1.5 million WCM suggestions were collected to foster shared learning employees. TheWCMprogram offers ourlargest worldwideexampleofemployee Several toolsandprograms are alsoinplaceworldwidetocollectsuggestionsfrom from theabove-reported initiativesallowFCAtoevaluateanddevelopappropriate actions. to employeesworldwidefrom thesamebusinessarea. Thisandotherinformationderived to matchanorganizationalneed,anddeployedparticularsegmentsoftheCompanyor engagement surveys.Insomeinstances,thesecampaignswere customized During 2020,more than30,000hourlyandsalariedemployeeswere involvedinvarious WORLDWIDE FROM EMPLOYEES SUGGESTIONS MILLION 1.5 54 2020 SUSTAINABILITY REPORT Employees and Community Employees compensation determinations. resource professionals utilizedefinedguidelines,whichare reviewed annually, inmaking to compensationlevels,annualsalaryreviews andpromotions. Managersandhuman the Group monitorsthe application ofourcore principlesrelative equityandfairness entire organization, under which employees are assessed onan annual basis. Additionally, performance andleadershipmanagementframeworkthatisdeployedthroughout the are impacted by individual contribution, which is vigorously evaluated through a common position, givingprioritytotopperformers.Variable compensationand career development criteria forcompensationadjustmentsfocusoncompetitivenesswithrespect tomarket and strivesforfairobjectivetreatment foremployeesaround theworld.Thespecific FCA reviews manyfactorsto determinebasesalary, benefitsandvariableincentives, success theyhelpcreate. results, provides development opportunities, and allows them to share in the business This comprehensive package rewards employees for their contribution to the Company’s The Companyhasdefinedacompensationsystemthatinvolvesseveralcomponents. driven approach. acknowledges thevalueofahighperformanceculture andtheimportanceofamarket- By rewarding employees' abilities and efforts, the Company’s compensation philosophy criteria, providing aninclusive workenvironment andequalopportunitiesforworkers. FCA is committed to offering a total compensation system based on equitable and fair COMPENSATION ANDREWARD Others access todedicatedfitnessfacilities,whichare availableincertainareas. The Group promotes ahealthylifestylethrough comprehensive wellnessprograms and by responding totheneedsoffamily. services are offered atsomelocationstohelpemployeesachievework-lifeeffectiveness 73% ofthesurveyedpopulationparticipatedinacompany-provided healthplan.Childcare Company-provided healthplans are alsoavailableforFCAemployees,andmore than Group fallintotwocategories:definedcontributionplansandbenefitplans. roughly 57%ofthetotalemployeebase.Supplementaryretirement plansprovided bythe approximately 76%oftheseemployeesparticipatedinthistypeplan,representing In 2020,74%ofemployeesare eligibleforasupplementaryretirement plan.During2020, BENEFITS (4) (3) (2) (1) Childcare services Employee cafeteria or lunch vouchers Financial for support disability/invalidity Life insurance Company-provided health plans retirementSupplementary plans benefit) for eligible (% employees of worldwide FCA Principal EmployeeBenefits Gym/fitness services Gym/fitness dedicated to childcare. Wellness and nutrition programs nutrition and Wellness Includes kindergarten, free gymnasium access for children, assistance with homework, summer camps/holidays, other services Includes benefits such ascompany cars, transportation, housing, interest-free loans. Includes nutrition coaching, smoking cessation training, medical check-ups, medical screening, other wellness programs. wellness other screening, medical check-ups, medical training, cessation smoking coaching, nutrition Includes Includes gymnasium access, gym/fitnesscourses and othersports initiatives. (4)
(1)
(3)
(2)
66 86 34 55 28 73 71 74 74 55 2020 SUSTAINABILITY REPORT Employees and Community Employees are notformalizedortracked. include participationresulting from informalagreements withlocalmanagers,which and care. Theactualfigure maybeconsiderablyhigher, asthispercentage doesnot time, of which about 48.6% are women; 2.5% took parental leave related to childbirth flexible workingarrangements.Specifically, 4.4% oftheworkforce isemployedpart- In 2020,roughly 13.4%ofemployeeswere covered byoneormore oftheavailable hours, parental leaveandotherleaves. sharing, part-timeorreduced hours,telecommuting,compressed workweek/summer arrangements andinitiativestoimprove work-lifebalancewhichincludeflextime,job- explore optionsthatenablepositive work-lifeintegration.Basedontherole, FCAoffers climate andcompatibilityofjobassignmentsare considered asemployeesandmanagers address theexpectationsofanevolvinglabormarket.Operationalneeds,business guidelines, processes, technologyenablers,toolsandcollaborativeworkspacesto lives. Dependingontheemployeelocationandlocalrequirements, FCAprovides FCA offers programs andtoolstohelpemployeesbalance theirpersonalandprofessional WORK-LIFE BALANCE FLEXIBLE WORKPROGRAMS employees around theworld. provide more opportunities forflexibleworkarrangementstoour the successofthoseactivities,initiativesare underwayto portions ofourworkforce to workingremotely. Asaresult of support organizations,suchasICT, workedtotransitionlarge tools andresources tosupportouremployees.Manyof accelerated thedeploymentofworkingremotely andprovided work-life integration.Asadirect result ofCOVID-19,we ourregions, avarietyofprograms areAcross inplacetoenable education oftheirchildren. a way to attract and keep top talent who have invested in their education as well as the by offering astudentloan refinancing benefit. We recognizethatthisinnovative offering is In theU.S.,FCAsupplementsfinancial resources andtoolsavailabletoemployees certain healthcare anddependent daycare expenses. employees the opportunity to set aside a portion of their pre-tax to help pay for earnings range oflocalproviders. FlexiblespendingaccountsavailableintheU.S.alsogiveeligible welfare andwork-life balance, granting access toservices andresources from awide more than4,000employeesenrolled inContoWelfare. Thisinitiativesupportedemployee contributes anadditionalfivetotenpercent toward theirspendingaccount.In2020, education andpensionbenefitsorservices.Inadditiontothetaxbenefit,Company spending accounttheycanuseonawiderangeofhealth,wellness,well-being,care, called Conto Welfare allows employees to convert someof their pre-tax into a earnings Financial healthisalsoanimportantaspectofwork-lifebalance.AnFCAinitiativeinItaly home andworklives. provide employeeswithcareer growth opportunitiesandachievebalancebetweentheir leave are twokeyindicators ofthemid-andlong-termcapabilityCompanyto attract and retain and retention the best talent. Return-to-work rates following parental improvements beingmadebasedonmarketanalysistooffer benefitsthatwillhelpFCA countries, theGroup exceedslocalrequirements withdedicatedpolicies,continued provided toallemployeestheextentrequired tocomplywithlocalregulations. Insome While laborlawrequirements mayvaryfrom countrytocountry, parental leavesare which encourage employees to balance parental responsibilities with their careers. The Group supportsequitable choicesformaternity, andadoptionbenefits, paternity
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56 2020 SUSTAINABILITY REPORT Employees and Community Employees more information aboutWCM. to determinetheproper countermeasures. SeetheProduction sectionofthisReportfor performing anactivityandassess allpotentialrelated risks. Themethodologyisthenused methodology, a tool toidentifythepotentialunsafeactsthatcouldhappenwhile encompasses all phases of production. The WCM Safety Pillar applies risk prediction WCM isarigorous manufacturingmethodologythatinvolves theentire organization and Health andSafetypillar, whichalsocontributetoimproving safetyinasystematic manner. FCA hasadoptedWorld Class Manufacturing(WCM)methodologiesandtools,includinga OHSAS 18001orISO45001certified. employees, orthosedirectly orindirectly involvedinmanufacturing processes, were 18001 certified. At the end of 2020, 92 Group plants, representing 97% of manufacturing FCA hadcommittedthatallofourplantsoperatingworldwidein2020willbeOHSAS superseded bytheISO45001standard. PriortotheadoptionofISO45001standard, Management System(OHSMS)certifiedtotheOHSAS18001standard, whichhasbeen as through theglobaladoptionofapreviously-applicable OccupationalHealthandSafety The goalofachievingzero injuriesisformalizedinthetargetssetbyCompany, aswell as applicablehealthandsafetyrulesregulations. them. Inaddition,theyare responsible formonitoringnationalandlocallegislation,aswell procedures andstandards, andforsupportinglocalEHSprofessionals inimplementing managers are responsible attheGroup levelforestablishinghealthandsafetyoperating safe behavior;andencouragingahealthylifestyle.Environment, HealthandSafety(EHS) collaborative robots inmanufacturingoperations;promoting employeeawareness and safety andhealthrisks;implementinghealth,ergonomicsstandards; using safe, healthyandproductive workenvironment. We focusonidentifyingandevaluating Throughout ourfacilities around theworld,FCAaimstoprovide allemployeeswitha OCCUPATIONAL HEALTH ANDSAFETY HEALTH ANDSAFETY SPENDING ON MILLION €160+ specific guidelinesintheworkplace. representatives aimed atensuringtheapplicationofpreventive measures byfollowing During theyear, duetoCOVID-19,there were dedicateddiscussionswithemployee bargaining agreements were also represented on issues such as health and safety. conducted in2020revealed thatalmostallemployeescovered bythosecollective agreements appliedinthevariouscountrieswhichGroup operates.Theanalysis the employee-representative bodiesinaccordance withcurrent lawsandthecollective FCA engagesinongoingdialogueaboutimproving employeehealthandsafetywith are recognized fortheirinvolvement. facilities, incorporatedintoFCA’s ISO45001managementsystemandtheproject owners suggestions. Usefulandimplementableideasare putintopractice,shared across multiple safety awareness andparticipateinacomprehensive systemforgatheringfeedbackand organizational levelsandroles. Theyare alsoengaged ininitiativesdesignedtoincrease of additionalsafetymeasures; andpromoting appropriate prevention behaviorsacross all health andsafety;complyingwithpoliciesprocedures; contributingtotheadoption Employees are involvedthrough trainingthatfocusesontheimportanceofsafeguarding through a combination of preventive measures and the collaboration of employees. Effective implementationofhealthandsafetystandards atFCAfacilitiesismadepossible then classifieddependingontherisksidentified. out major risk areas and implementing preventive action plans. Areas within the plants are according toaspecificGroup procedure appliedworldwidewiththepurposeofsingling Risk identification and assessment, both on a routine and non-routine basis, are conducted SAFETY TRAININGHOURS MILLION 1.9 57 2020 SUSTAINABILITY REPORT Employees and Community Employees and targetedinvestment. together with the activeinvolvementofemployees, development of specific competencies former OHSMSandcurrent ISO45001standard, aswellbytheWCMSafetypillar, past severalyearsthrough theapplicationoftoolsandmethodologiesprovided bythe FCA hassignificantly reduced thefrequency andseverity ofwork-related injuriesoverthe SAFETY INSIGHTS FCA worldwide (days of absence due to injuries per 1,000 hours worked) hours 1,000 per to injuries due absence of (days worldwide FCA Severity Rate worked) hours 1,000,000 per (injuries worldwide FCA Frequency Rate 2010 4.40 2010 0.13
2018 2019 2018 0.03 0.70 2019 0.60 0.03 2020 2020 0.02 0.57 [ [ SDGs 3] SDGs 3] led tosavingsofapproximately €130millionfrom 2012 through 2020. agency. Asaresult, theGroup waseligiblefor“goodperformer”premium discounts,which risk attributedtoGroup plantsinItalybyINAIL,theItalianaccidentanddisabilityinsurance adopted, hasresulted inaprogressive reduction inthelevelofoccupationalhealthandsafety FCA’s investment inoccupational health and safety prevention, combined with the measures injuries per1,000hoursworked). was downabout20%compared totheprevious year (with0.02daysofabsencedueto to theprevious year (with 0.57 injuries per 1,000,000hoursworked)andtheSeverity Rate measures to avoid recurrence. In 2020, the Frequency Rate index was down 5% compared Work-related injuriesare analyzedtodeterminethecausesandtakeappropriate conditions thathavelongsincebeen mitigatedoreliminated. are usuallyrelated torisksassociatedwithhistoricalworkingmethodsorenvironmental or evendecadespriortobeingconfirmed.Occupationalillnesses are quitecomplexand unlike theinjuryindicators,occupationalillnesscanrelate toissuesthatoriginatedyears a lowcorrelation torecent orcurrent healthandsafetyriskprevention measures because, (compared to1.13in2019). Thisindicator(andchangesfrom yeartoyear)typicallybears The occupationalillness frequency rate was1.01casesper1,000,000hoursworked occupational illnesstrends, and in2020recorded approximately 300casesworldwide. consequence of working activities carried out by an employee. FCA regularly monitors Occupational illnessesrefer todiseasesthatdevelopgraduallyovertimeasadirect 2012-2020 SAVINGS ONINSURANCE MILLION €130 View data 58 2020 SUSTAINABILITY REPORT Employees and Community Employees and outside FCA, and follows the health and safety principles of the main international workplace. TheHealthPromotion Program (HPP)isbased onneedsreported bothinside and supportindividualsafety, well-beingandahealthylifestyleatawayfrom the FCA offers numerous programs and services foremployeesand their familiestopromote HEALTH PROMOTION cholesterol monitoring. pressure, bloodsugarleveland including servicessuchasblood AND VACCINATION SCREENING and theirfamilies. sports centersforusebyemployees and/or enteringagreements withlocal of theCompanytosportsactivities For example,dedicatingspecialareas exercise. advice onhowtoincrease daily through sportsteamsorclubs,and OF PHYSICALEXERCISE PROMOTION THE FOURTOP-PRIORITY THE HPPPROVIDES
SUPPORT ARE: AREAS WHERE the creation ofsupportgroups. including long-termhealthrisksand disease orsmoking-related issues, campaigns andtrainingsessionson are developedthrough awareness AIDS prevention programs. These such assmokingcessationorHIV/ implemented where more relevant, REGIONAL PROGRAMS OTHER SPECIFIC on thecafeteriamenu. providing healthierfoodoptions eating intheworkplaceand including counselingonhealthy EDUCATION INITIATIVES NUTRITION [ SDGs3] available inallplants,continuingtoaddress localissueswhere appropriate. Work LabourOrganization(ILO).In2020,theHPPwas (EU-OSHA),andtheInternational Safety andHealthAdministration(OSHA),theEuropean AgencyforSafetyandHealthat organizations, including the World Health Organization (WHO), the U.S. Occupational COVID-19 SAFETYMEASURES keep theworkplacehealthyduring thefluseason. Additionally, FCA offered on-siteinfluenzavaccinationsatsomesites to the virus,etc.)andspecifictraining before tothe workplace. returning how itspreads, symptoms,howtoavoidcontractingorspreading FCA provided specificsafety measure informationonCOVID-19(e.g., • • • • • • • • application ofthesafetymeasures including: expectations required theparticipationofeveryoneto ensure the the workforce andthecontinuityofoperations.Theprotocols and FCA implementedstringenthealthandsafetyprotocols toprotect Due totheCOVID-19pandemicandrestrictions onbusinesses,
distancing r Reconfiguration ofworksitestocomplywithsafeandsocial Incr Mandated cleaningpr located thr Dedicated hand-washingmaterialsandhandsanitizerstrategically Mandates forwearingasurgicalmaskwheneverinsidetheFCApr and nitrilegloves. Distribution ofdailykitstoemployeesconsistingsurgicalmasks procedures forvisitors. Scr on publictransportation. Self-scr eening process foreveryoneenteringFCAsiteswithspecific eased frequency ofcleaning commonareas. eening before travelingtotheworkplaceandsocialdistancing oughout thefacilities. equirements. otocols forworkstations. emises. 59 2020 SUSTAINABILITY REPORT Employees and Community Employees a representative council inaccordance withnational laborlaws,localrulesandregulations. sites where a trade union has beenestablished. In China, FCA employees are free toform national lawsorprocedures. IntheNorthAmericaregion, representatives are present at companies orsiteswhere employeenumbersexceedtheminimum limitsspecifiedby In theEuropean Union countries,employeerepresentative bodiesare established for collective agreements. informed andconsulted,negotiateonspecificissuesasprovided bylaworapplicable bodies. Representative bodies,generallyelectedbylocalplantworkers,are entitledtobe including Sevel(Italy),showedthat84%ofemployeeswere covered byrepresentative In 2020,asurveycoveringapproximately 99.6%ofthetotalworkforce worldwide, from conditionsthatare supplementalto,orbetterthan,theminimumrequired bylaw. various countriesand88.8%ofemployeesnotcovered bycollectivebargainingbenefit that covers a variety of situations in accordance with regulations and practices in the covered bycollectivebargaining agreements atanylevel,basedonanaveragefigure At December31,2020,87.1%ofemployeesworldwide,includingSevel(Italy),were through specificmeetingsonstrategicbusinessoperations(e.g.,plan). places on social dialogue, trade union representatives from Group companies are involved constructive approach and relationship. As confirmation ofthe importance theGroup engaging innegotiations with representatives, FCA’s actions and behavior seek a established inaccordance withthelocallyapplicablelegislationandpractice.When the rightsofouremployeestoberepresented bytradeunionsorotherrepresentatives law and the rules of the various trade union organizations. FCA recognizes and respects Workforce membersare free tochoosejoinatradeunioninaccordance withlocal worldwide. Guidelines forSuppliersdescribeexpectationsGroup suppliersandsub-suppliers to ourstandards, including,butnotlimitedto,humanrights.Moreover, theSustainability partners andsupplierswithwhomtheGroup doesbusinessare alsoexpectedtoadhere commitment in the FCA Human Rights Guidelines. These Guidelines state that business FCA respects workforce members’freedom ofassociation,andpubliclyaffirmsthis AND COLLECTIVEBARGAINING FREEDOM OFASSOCIATION 49,000 employeesandisineffect untilSeptember15,2023. bargaining agreement signedinDecember2019.ThisAgreement coversmore than Agricultural ImplementWorkers ofAmerica(UAW). Thisisafour-year nationalcollective Union,UnitedAutomobile,Aerospacebetween theFCAUSandInternational and In theU.S.,Companyappliestermsofcollective bargainingagreement unionized 76.2% UNITED STATES the evolutionofpandemicrisks. signatory oftheCCSL.TheProtocol wasupdatedseveraltimesduringtheyear, inlinewith the workplacewassignedbyallTrade Unions,includingFiom-Cgil,whichisnota containing theguidelinesfordealingwithhealthemergency andsafelyoperatingin covered byacompanycollectivebargainingagreement. InApril2020,aProtocol (CCSL), renewed onMarch 11,2019forafour-year period.ManagersinItalyare also and all FCA companies apply the 2019-2022 company-specific collective labor agreement In Italy, substantiallyallFCAemployeesare covered bycollectivebargainingagreements unionized 42.2% ITALY significant presence are summarizedbelow. Relevant examplesofcollectivebargainingagreements incountrieswhere FCAhasa that theapplicationoftheserightsandprinciplesisensured through locallegislation. companies inBrazil,theU.S.,Canada,Mexico,China,IndiaandMalaysia,showed right toorganizeandcollectivelybargain.Itcovered over99%ofemployeesatGroup LabourOrganization(ILO)ConventionsonfreedomInternational ofassociationorthe In 2020,ananalysiswascarriedoutinthosecountriesthathavenotratifiedfundamental the Group companiesbelong. In mostcountries,dialogueoccursthrough industrialandemployers’associationstowhich nonunionized 23.8% nonunionized 57.8% 60 2020 SUSTAINABILITY REPORT Employees and Community Employees and mostlyrelated tolocalissuesatindividualplants. In 2020, the level of labor unrest and local labor action in Group companies was negligible practices, resulted in227trade unionagreements ateithertheCompanyorplantlevel. Overall, in2020,collectivebargainingconductedaccordance withlocallawand December 18,2020,inorder toensure thecontinuityofinformationandconsultation. however, attherequest oftheTrade Unions,anadditionalmeeting wasgrantedon parties ofthecurrent agreement. During2020,thisadjustmentwasnotcompleted, to redefine thecomposition oftheEWC,startingnegotiationsbetweensignatory scope oftheEWCare represented. ThesaleofMagnetiMarelli in2019entailedtheneed council membersfrom 20to24sothatadditionalemployeesfrom newcountrieswithinthe a furtheramendmentexecutedinJuly2016.Theincreased thenumberof 1996, andwhichwassubsequentlyrenewed withamendmentsandmodifications consultation. FCAestablishedanEWCin1997onthebasisofagreement signedin a European Works Council(EWC),whichensures workerstherighttoinformationand At theEuropean level,regulations require thatallcommunity-scaleundertakingsestablish This agreement isineffect untilMay9,2021. y ConexosdelaRepublica Mexicana representing more than 14,000 employees. with TheSindicatoNacionaldeTrabajadores delaIndustriaAutomotriz IntegradaSimilares In Mexico,FCAS.A.deC.V. appliesaone-yearagreement negotiatedin2020 unionized 83.2% MEXICO unionized 90.7% CANADA effect untilSeptember23,2023. in October2020coveringmore than9,000employees.TheAgreement withUniforisin In Canada,FCACanadaInc.appliesthetermsofthree-year laboragreement signed nonunionized 16.8% nonunionized 9.3%
• • with theinvolvementoftradeunions,basedonregulations ofthedifferent countries. market demandconditions.Managingtheeffects ofthemarketfluctuationswasachieved During 2020,themanagementofproduction levelsvariedwithintheregions basedon MANAGEMENT OFPRODUCTIONLEVELS
vehicle-to-grid (V2G)pilotsystemattheMirafioricomplex(Italy). such astheconstructionofaBatteryHubforbatteryassemblyandlaunch the R&D,manufacturingandcommercial areas were adaptedandinitiativescontinued, connectivity anddriverassistanceservicescontinued.Theorganizationalstructures in performance. Furthermore, supportoftheelectrificationplananddevelopment Due toCOVID-19,organizationalefforts were oncostcontainmentandmaintaining training andretraining programs; andinitiativesfortheretirement ofeligibleworkers. protection measures, includingtheuseoftemporarylayoff schemeswhileoffering work organizationsolutions;personnelsynergiesbetweenplants;employment initiatives by applying defined and specific agreements. The Company applied new other corporateactivities. other highlyskilledemployeestosupportproduct development,sales,marketingand production volumes,aswell asadditionalengineering,research anddevelopment and the number of manufacturing employees needed to support our current and anticipated atNorthAmericanfacilitiesandtoassess continues toutilizeflexibleoperatingpatterns scheduled tobegininthefirstquarterof2021.Insupportthese initiativestheCompany the CompanyisconstructinganewassemblyplantinDetroit (U.S.),withproduction plant infrastructure. To expandfurtheritsSUVcapacity, includingelectrifiedmodels, installed capacityinaneffort tomeetthedemandforSUVsandtrucks,utilizingexisting In the In theEMEAr North America region, theCompany has spent the past several years realigning its egion, theCompanycontinuedimplementationofreorganization 61 2020 SUSTAINABILITY REPORT Employees and Community Employees • • Outside theEuropean Union,locallawsandpracticesapply: employees are tobeinformedandconsulted. The agreement fortheFCA European Works Councilalsospecifiesconditionswhen regulations ofeachEUmemberstate. FCA companiescomplywiththisDirective asimplementedbytherelevant lawsand representatives. Theprocedure mustbeinitiatedreasonably inadvanceofthetransfer. legal transferormerger, adisclosure andconsultationprocess isrequired withemployee an undertaking,business,orpartofundertakingbusinessoccursasaresult ofa theEuropean Union(EU),DirectiveWithin 2001/23/ECstipulatesthatwhenatransferof employees. strives tokeepemployeerepresentatives involvedwhenoperationalchangesimpact Although regulations andpracticesfrom alocal,regional andnationallevelcanvary, FCA MINIMUM NOTICEPERIODFOROPERATIONAL CHANGES
periods forcertainoperationalchanges. constitutes aplantclosingormasslayoff. Severalstatesalsoregulate required notice requires anemployertogiveaminimumof60days’ advancenoticeofanyactionthat (WARN Act),which applies to bothunionizedand nonunionized employment sites, notice requirement iseightweeksforemployeeswithmore than10yearsof service. FCA CanadaInc.employeesare locatedinAlbertaandQuebec,where themaximum prior toterminationforemployeeswitheightyearsormore ofservice.Theremaining of theCanadianworkforce isemployed,notificationmustbegivenatleasteightweeks Canada: Noticeofterminationr U.S.: AfederallawknownastheW egulations varybyprovince. InOntario,where themajority orker AdjustmentandRetrainingNotificationAct
• •
authorities withaworkforce reduction plan. or totheemployees30daysinadvance.Thecompanymustalsoprovide thelocallabor 20 butaccountingfor10%ofcompanyemployeesmustbenotifiedtothelaborunion restructuring, oractionsreducing theworkforce by20ormore employeesorlessthan China: LaborContractLawstatesthatalloperationalchangessuchasr such layoff. However, nonotificationperiodisexpressly definedinMexicanlaborlaw. layoff, theCompanyandUnionwillagree tothe terms andconditionsapplicableto According toFCA´sUnionBargainingAgreement, in caseofanylarge-scaleemployee Court andthetradeunions,priortoanylarge-scaleemployeelayoffs orplantclosures. Mexico: Accor prior noticeoftheoperation. to allemployeesoforganizationalchangesrelating tooutsourcing, givingreasonable At nonunionizedplants,itiscommonpracticetomakeacompany-wideannouncement the informationandconsultationprocedures tobefollowedinsuchcircumstances. and thetradeunionisapplicableatplantlevel.Theagreements usuallyspecify is normallydefinedbythecollectivebargainingagreement signed betweenthe company At unionizedsitesand/orplantsintheU.S.andCanada,levelofunioninvolvement ding toFederalLaborLaw, companiesare required tonotifytheLabor eorganizations,
62 2020 SUSTAINABILITY REPORT Employees and Community Community personal conduct. personal and business in FCA's values to important commitment guides which FCA of the of Conduct, Code Principles key of the one is Communities our Supporting that fact in the reflected is engagement to community approach Our they work. live and where communities our employees the and between connection important community, provide an leaders local and academic organizations, nonprofit with partnerships Our needs. local to address giving charitable our targeting and promoting employee engagement, volunteerism, jobs, creating education, by supporting needs social with business to balance responsibility our We awhole. as embrace society for and Company our for future asecure to building FCA committed is Community UNITED NATIONS SUSTAINABLE DEVELOPMENTGOALS(SDGS) KEY FCAFIGURESSUPPORTING COMMUNITIES BENEFIT LOCAL COMMITTED TO MILLION ~€37.8
BY EMPLOYEES VOLUNTEERED HOURS 4,800+ 63 2020 SUSTAINABILITY REPORT Employees and Community Community (1) €37.8 about of a value for resources million In 2020, communities. we charitable resilient thriving, committed topromote investment our efforts reflect community activities Our projects andmore than 100,000hoursdonatingblood. FCA employees volunteered more than 62,000 hours during work time in support of social Over theyears,wehavetraditionally supportednumerous efforts, suchasin2019when interviews andtutoringfocusedon enrichingthelivesofyoungpeopleinourcommunities. for employeestovolunteertheirtimeandtalentsvirtuallythrough career coaching,mock able tovolunteermore time in2020.FCAfoundnewways hours duringworking than 4,800 Although COVID-19significantlyimpactedvolunteeropportunities, FCAemployeeswere employeevolunteereffortstime andskills,withformalpoliciesgoverning insomeregions. In additiontomonetarycontributions,FCAencouragesouremployees todonatetheir military, veteransandtheirfamilies. the focusofeducationandcommunityserviceaswellsupport formembersoftheU.S. consisting ofcorporateexecutives.TheFCAFoundationdirects itsresources towards operated through byaBoard theFCAFoundation,whichisgoverned ofTrustees COVID-19. MuchoftheGroup's charitableactivitiesaround theworldare historically welfare, includinghealthprograms; 39%foremergency relief andotherefforts, including of causes: 49% for education-related initiatives; 12% for community development and communities withpandemicrelief efforts. TheGroup’s 2020activitiesfocusedonavariety areas suchaseducationandcommunitydevelopment,FCAtookactionstoprotect our 2020 wasayearwithuniquechallengesacross theglobe.Inadditiontosupporting does not include initiatives whose sole purpose is to promote a brand. Includes non-accounting data and calculation methods to estimate to estimate methods calculation and data cost for non-accounting employee volunteer time. Includes abrand. to promote is purpose sole figure whose reported 31, The 2020. initiatives December at include rate not does exchange on based converted were Euro than other currency in Amounts operations. joint operate. we in where the needs countries community local made to support future. In addition, initiatives contributions are and charitable into extend that can the generations with effects communities resilient build and people to empower education on focus Development efforts contribution our social Goals, Sustainable thefrom FCA Foundation. In with alignment the United Nations Amounts refer to all FCA companies worldwide consolidated on a line-by-line basis at December 31, 2020, as well as joint ventures and and ventures joint as 31, well as 2020, December at basis aline-by-line on consolidated worldwide companies FCA to all refer Amounts Community (1) , including contributions Spending andnumberofinitiativesbygeographicarea ofdistribution INCLUDING COVID-19 AND OTHEREFFORTS, EMERGENCY RELIEF more than120initiatives 39% (€14.6 Millions) Spending andnumberofinitiativesbycategory Actuals 2020 (€) (€) 2020 Actuals (€19.1 M) (€19.1 49% North America North 249 Initiatives (no.) Initiatives (€17.3 M) (€17.3 44% Europe 59 HEALTH PROGRAMS WELFARE, INCLUDING DEVELOPMENT AND COMMUNITY approx. 140initiatives 12% (€4.6 Millions) (€1.4 M) (€1.4 Latin America 4% 71 INITIATIVES EDUCATION RELATED approx. 150initiatives (€18.649% Millions) (€1.3 M) (€1.3 3% Asia 38 64 2020 SUSTAINABILITY REPORT Employees and Community Community the digitalgapfacedbyanestimated 90%ofDetroit public schoolstudents. and three elementaryandmiddleschools.Thegrantaddressed theurgentneedto close provided freeserviceandtechnicalsupport tostudentsatahighschool laptops, internet andconnecttotheworlddigitallyasaresultto learn ofaFCAFoundationgrant.Thegrant In Detroit (U.S.) public schools, more than 1,100 students were provided the opportunity Detroit PublicSchoolsConnectedFuturesProgram BRIDGING THEDIGITAL DIVIDE find employmentinthemanufacturingandservicesector. training leadstoaDiplomainManufacturingExcellenceenable thegirlsopportunitiesto further studiesduetosocialandeconomicconditions.Acombination ofacademicsandjob supports girlsfrom ruralareas whohavepassedthe10th Standard butare unabletopursue The GirlEducationandEmployabilityPromotion program, WINGYAAN, in Pune,India, WINGYAAN Program basis fortheirfuture growth. Robotics Project, whichfocusesonSTEM,softskillsandindustrialculture, providing a nearly 3,000studentshavebenefitedfromCenterEducational participationintheLearning school studentsuserobots toenhancetheirknowledgeonschoolsubjects.In2020, Brazil which offer an innovative education environment where primaryand secondary FCA’s production systems brand, Comau, developed programs in Italy, China, U.S. and e.Do LearningCenter STEM include: to grow across theautomotiveindustry. Afewexamplesofourprograms andinitiatives skills andopportunities,asthedemandforskilledprofessionals isexpectedtocontinue Many ofourinitiativesaimtoexpandscience,technology, engineeringandmath(STEM) remain inschoolandhelpthemdevelopthelifetechnicalskillsnecessarytosucceed. employability. These partnerships include programs to mentor youth, encourage them to organizations across theglobetopromote educational opportunities,andsubsequently, helping developtheworkforce oftomorrow. We partnerwithacademicandnonprofit A significant portion of FCA's community engagement is focused on education and ADVANCING EDUCATION
Teach forItaly LITERACY social responsibility, andteamwork,alongwithasolidbackground inthehumanities. engineers to understand the society for which they are designing, through critical thinking, programsintelligence. Theagreement andhelpsprepare encompassesinternational Engineering nowincludes lessons with experts in sustainable mobility and artificial investing ineducation,trainingandresearch. Thedegree program inAutomotive First established in1999, FCA continues its collaboration with Polytechnic ofTurin, Polytechnic ofTurinTrainingandCollaboration WORKFORCE DEVELOPMENT Italian MinistryforEducationandtheTurin andCuneo Provincial EducationAuthorities. schools inMirafiori,LingottoandGrugliasco(Italy).Theprogram isinpartnershipwiththe graduates andyoungprofessionals tohelpaddress educationalinequitiesindisadvantaged program. The multi-year grant will allowTeach forItalyto hire adiversegroup ofcollege Italy isaddressing earlyschool dropout ratesandteachershortageswiththeTeach forItaly MOI PROJECT opportunities were renewed. temporary contract. Theexperiencewasasuccess andthejob agencies. Somecandidatesjoined anFCAplantunderayear-long secured jobsthrough anagreement betweenFCA andemployment Nigeria, Somalia,BurkinaFaso,Ghana, MaliandTogo. Thecandidates training coursesforpeoplefrom severalcountriessuchasSudan, employment. FCAorganizedand provided generalandtechnical legal status(e.g.,refugees, asylumseekers,legalimmigrants)tosecure immigrants whowere inconditions ofdegradationandwithdifferent in Turin (Italy).Theprogram targetedadisadvantagedarea tohelp participation intheMOIProject (Migrants,anOpportunityforInclusion) Working forRefugeeIntegration 2019."Thisaward recognizes FCA’s for Refugees)awarded FCA theprestigious recognition "Welcome - In November2020,theUNHCR(UnitedNationsHighCommissioner 65 2020 SUSTAINABILITY REPORT Employees and Community Community GLOBAL COVID-19RELIEFINITIATIVES and fosteremployeeengagement. financial donationswithvolunteeropportunitiesallowsustoaddress communityneeds positive impact. We encourage our employeesto lead by example;combiningcharitable By workingtogether, wecanbestunderstandwhere toapplyourresources tomakea FCA recognizes theimportanceofbuildingstrong relationships withinthecommunity. WORKING ALONGSIDETHECOMMUNITY LATAM NORTH AMERICA IN NEED SENIORS, ANDOTHERS MEALS TOCHILDREN, 5.5M FACE MASKSDONATED 8.4M VEHICLES LOANED 13 FIELD HOSPITALS 3 DONATED MEALS 122K DONATED LITERS OFWATER 28.2K DONATED FACE SHIELDS 250 DONATED FACE SHIELDS 30K VEHICLES LOANED 27
beds availablefortreatment byworkingontheinstallationoffieldhospitals. programs, forexample,themanufacture offacemasks andventilators;expandedthe that provide foodservicestochildren; support fortechnical, logisticalandproduction Throughout theCOVID-19pandemic,FCAfocusedrelief efforts onareas suchas:charities APAC EMEA VEHICLES LOANED 466 PRODUCED VENTILATORS 3K VEHICLES LOANED 2 PRODUCED FACE MASKS 17M (Producing 23Mperday) MASKS PLANTS PRODUCED 2 SCHOOLS PROGRAM TOMEDICAL SCHOLARSHIP €252K 66 2020 SUSTAINABILITY REPORT Employees and Community Community • • provided avarietyofdonations: In additiontomasks,faceshields,ventilatorsandfieldhospital contributions,FCAalso ambulances tosupporttheunits’logisticalneeds. and various medical materials. Moreover, FCA donated Fiat Ducato vans adapted as required forthetreatment ofCOVID-19patients,suchasanX-raymachine,ventilators (Brazil),andinCórdobaPernambuco (Argentina).FCAalsodonated medicalequipment FCA delivered three fullyequippedfieldhospitalsforCOVID-19patientsinMinasGeraisand Face Shields and Masks support activitiesinclude: Examples of initiatives that illustrate the breadth of FCA's engagement of COVID-19 • Contributions for field hospitals building solenoid valves – the ‘beating heart’ of a ventilator, at the FCA plant in Cento (Italy). production rose from about 8 to 80 units per day. A crucial strength of the cooperation was manufacturing andmanagementexperienceWorld ClassManufacturingmethods, specific electricalmedicaldevices,FCAbuiltover3,000ventilators.DrawinguponFCA's In cooperationwithSiare Engineering,theonlycompanyinItalythatproduces these Ventilators Paulo (Brazil). to employeesanddonatedhealthprofessionalsSão inMinasGerais,Pernambuco million, the production unit was installedin less than two months.Maskswere distributed Purchasing and Logistics Engineering areas and an investment of approximately €5.9 theexpertiseofFCA'sManufacturing, factory withintheFCAplantinBetim(Brazil).With 600 workers.Anotherillustrationofoursupportincludedtheinstallationasurgicalmask (Italy) withadailyproduction ofabout23millionmaskswere produced, involvingmore than Masks andfaceshieldswere produced attheFCAplantsinMirafioriandPratolaSerra
more than1,500hygienekitswere delivered. hygiene pr In SãoPaulo(Brazil),thecompany supportedthedistributionofover200,000personal In Per production ofmore than 40,000mealsoversixmonths. Gerais (Brazil),appr FCA participatedinanetworkforthedonationoffood,waterand hygienekits.InMinas nambuco (Brazil),aboutatonof food, more than5,000liters ofmineralwaterand oducts to53institutionsinthemetropolitan region. oximately 18tonsoffoodwere donatedinthestate,ensuring impact onthefamilies involved,theprogram illustratesthebenefitsofacircular economy. created, Cooperárvore hasrepurposed about41 tonsofmaterial.Alongwiththepositive has contributed to improving the quality of life formore than 70 households. Since it was them intofashionaccessoriesand otheritems.Overthepast14years,Cooperárvore FCA donates fabric and seat belt remnants from the plant and Cooperárvore transforms FCA plantinBetim(Brazil),focuses onlocalentrepreneurial activitiestogenerateincome. The Brazilianprogram, formed in2006bywomenfrom thecommunitysurrounding the Responsibility Cooperárvore: Combining Entrepreneurship and Environmental on Detroit’s firstcommunity-based environmental educationplaza. Chandler ParkConservancywhichenabledthenonprofit organizationtostartconstruction and Riverbendneighborhoods.More than€230thousandwasalsocontributedtothe Impact NeighborhoodFund for improvement projects intheChandlerPark,West End life forthepeopleandneighborhoods.FCAcontributedmore than€325thousandtothe thousand to Re-imagine Detroit’s (U.S.) Eastside Communities to improve the quality of As aresult ofthenew FCAplantinDetroit (U.S.), FCAinvestedapproximatel €600 Neighborhood Impact Fund the 16thanniversaryofthisproject -FCA’s longest-standingcommunity project inBrazil. More than23,300peoplehavebenefitedfrom theprogram sinceits inception.2020 marked social, culturalandeconomicgrowth ofindependenceandempowermentlocalresidents. Teresópolis community, neartheFCAplantinBetim(Brazil).Theprogram aimstopromote Since 2004,FCAhas supported asocialproject calledÁrvore in the Jardim daVida of (Tree Life) Vida da Árvore examples ofthetypesprograms weparticipatedin: on communitiesandprojects to support the improvement of the quality of life. Here are Though FCA directed relief efforts to theCOVID-19 pandemic, we continued to focus • •
FCA workedinpartnershipwithnon-pr institution thatprovides supportinsituationsofnaturaldisastersandaccidents. FCA donatedappr normally accessschoolmealservices. been extendedacross NorthAmerica,supportingsimilarrelief efforts forkidswhowould manufacturing plantsinIllinois,Indiana,Michigan and Ohio (U.S.). The program has more thanonemillionmeals toschool-agechildren inthecommunitiesaround our oximately €125thousandtotheCivilProtection inItaly, thegovernment ofit organizationsandfoundationstoprovide 67 2020 SUSTAINABILITY REPORT Products and Customers
Research and Development 69 Sustainable Design 84
Collaborative Innovation 70 Materials and Substances 85 Autonomous Driving and Connectivity 71 Life Cycle Assessment 86 Vehicle End-of-Life Management 86 Remanufactured Parts 87
Efficient Powertrains and Technologies 72 Customer Focus 88 Powertrains and Electrified Propulsion Technologies 73 Vehicle Safety 89 The New Fiat 500: all new, all electric 76 Safety Research 89 Safety Technology and Ratings 89 Alternative Fuels 78 Recall Campaigns 90 Vehicle Energy Demand 78 Vehicle Quality 91 Emissions and Fuel Economy 79 Quality Processes 91 United States 79 Customer Experience 92 Brazil 80 Dealer Network Development 92 China 80 Customer Support 93 European Union 81 Customer Mobility 95 Regulatory Actions 83 Products and Customers Research and Development autonomous driving technologies. of to development the relating partnerships and solutions connectivity applications, powertrain various electrified we of previously implementation had no presence, where segments in of products launch of key products, renewal the includes plan business Our partnerships. and projects research generation, idea internal uses Group the and development, and research a key product in role to drive. Innovation plays own and proud are consumers toability develop innovative, that products high-quality our on depends success our that We world. the recognize around industry-wide, equipment, now standard are that breakthroughs engineering numerous with marked It is FCA's acentury. than more of innovation spans history and Development Research UNITED NATIONS SUSTAINABLE DEVELOPMENTGOALS(SDGS) KEY FCAFIGURESSUPPORTING CENTERS AND DEVELOPMENT RESEARCH 44 REGISTERED AND APPLICATIONS PATENTS 6,082
AND DEVELOPMENT DEVOTED TORESEARCH FCA EMPLOYEES ~18,000 AND DEVELOPMENT IN RESEARCH BILLION €3.9 69 2020 SUSTAINABILITY REPORT Products and Customers Research and Development • plan include: Important areas offocusforthe Group’s research anddevelopmentactivitiesbusiness technology andimprovements considered important toourbusiness. designs. Patent applications are filed in Europe, the U.S. andaround the world to protect 2020, FCAhad6,082patentsandpatentapplications,2,219protected product activities, continuingtogenerateasignificantintellectualproperty portfolio.Atyear-end 18,000 employeesat44locationsworldwidewere involvedintheGroup’s innovation representing around 4.5% of net revenues from industrial operations. Approximately In 2020,theGroup investedapproximately €3.9billioninresearch anddevelopment, services. and Group’s the of products sustainability and perception FCA’s safety, development and at improving aimed efficiency, fuel are the activities performance, design, research global reliability, consumer Modena (Italy), Auburn Hills(U.S.),Betim(Brazil)andChennai(India). Modena (Italy),Auburn across the entire enterprise. The primary FCA R&D facilities are located in Turin and (R&D) andis responsible for stimulatingopportunitiessynergiesand technology transfer Chief Technical Officer (CTO). In particular, the CTO leads FCA Research and Development The globalinnovationandproduct developmentactivitiesare centrallycoordinated bythe •
Research andDevelopment of ourbrands. requirements in eachregion while,atthesametime,enhancingspecificstrengths continuing toinvestinasuiteoftechnicalsolutionskeeppacewith evolvingr driving technologies synergies and economies of scale needed to advance the development of autonomous initiatives pr continuing tocollaborateandpartnerwithtechnologyautoindustryleaders-these ovide theopportunitytoleverageeachother’s capabilitiesandachievethe egulatory egulatory lightweighting and materials;andcircular economy initiatives. related to,amongothers,autonomousdriving;connectivity; electrificationandeco-driving; Technology Platforms.Itisthefocal pointforcollaborativeresearch programs ontopics In addition, CRF, FCA's research center in Europe, plays an active role in the European (USAMP) andtheUnitedStates Advanced BatteryConsortiumLLC(USABC). through collaboration, with the United States Automotive Materials Partnership LLC U.S. auto industry through cooperative research and development. USCAR is involved, a collaborativetechnologyorganizationaimedatstrengthening thetechnologybaseof FCA USisalsoamemberoftheUnitedStatesCouncilforAutomotive Research (USCAR), hybrid andelectricvehicletechnologies. expansion ofFCAemployeecompetencyandtonewemployees engagedinthefieldof applications. Thiscollaborationhascontributedtotechnical advancements andthe electrified powertraincomponentsandcontrol systemssuitableforarangeofvehicle focuses ondevelopingnext-generation,energyefficient,highperformance, costeffective partnership withMcMasterUniversity(Canada).The McMasterUniversity of Turin (Canada)andOaklandUniversity(U.S.), andour (Italy),theUniversityofWindsor Two DualMaster'sDegree Program keyexamplesincludeourInternational withPolitecnico instrumental in encouraging creative thinking, rewarding talent and leveraging synergies. other industrialplayers,through research groups andjointprojects. Theseclosetiesare The Group engagesinlong-standingcollaborationswithuniversities,research centersand decision making. diverse viewpointscanpromote more effective collaborations,innovationandbetter as universities,research centersandotherinstitutions.Inviting,includingempowering organizationssuch groups,Among external FCAcollaborateswithsuppliersand creative anduniqueapproaches thinkingandgeneratenewsolutions. tounlockalternative Spaces locatedaround theworld.TheInnovationTeams supportemployeesbyteaching method usedtostimulateinnovationisthrough trainingandworkshopsatourInnovation FCA fostersinnovation by encouraging creativity among our workforce. Internally, one COLLABORATIVE INNOVATION 70 2020 SUSTAINABILITY REPORT Products and Customers Research and Development for themovementofpeopleandgoodsoperatedbyWaymo Driver. across theFCAfleetand has startedtoworkwith Waymo toimagine future FCAproducts selected Waymo asitsexclusive,strategic partner forLevel4autonomoustechnology of commercial customersgiven therapidgrowth ofgoodsdeliveryservices.FCAhasalso competencies to determine howtoeffectively useautonomytoaddress thespecificneeds This partnershipwillallowFCAandWaymo toleveragetheirrespective strengths and The two companies will enable access to a broad range of global commercial customers. Class 1-3lightcommercial vehiclestomovegoodsforcommercial deliverycustomers. work exclusivelywithFCAasitspreferred partnerforthedevelopmentandtestingof partnership andsignedanexclusiveagreement forlightcommercial vehicles.Waymo will During 2020, FCA and Waymo furtherexpandedtheirautonomous driving technology Our ongoingpartnershipsincludeothermajortechnologyplayersinautonomousdriving. autonomous driving technologies, working with leaders in their respective industries. FCA ispursuingamulti-partnerstrategyfordevelopingadvanceddriverassistanceand a highlevelofautomateddrivingforoptimizedbalancebetweendriverandmachine. (ADAS) featuringLevel2autonomousdrivingcapability. ThesenewADASfeatures provide received significanttechnologyupdates,includingnewAdvancedDriverAssistSystems Centering. Similarly, newformodelyear2020,boththeAlfaRomeoGiuliaandStelvio 2 autonomous driving that includes intelligent AdaptiveCruise Control (iACC)andLane The New Fiat 500 is not only fully-electric, but the first car in its segment to offer SAE Level we continuetodevelopautonomoustechnologiesandintegratethemintoourvehicles. increasing numberoftaskswhichare currently performedbythedriver. To thatend, Autonomous technologydemonstratestheabilityofvehiclesystemstotakeoveran safety, convenience,mobility-as-a-service,connectivity andqualitytime. an approach toaddress changingconsumerexpectations drivenbygrowing demandfor autonomous drivingandconnectivity. We are devotingresources toresearch anddevelop FCA takesintoaccountthechallengesandopportunitiespresented bytheadvancesin AUTONOMOUS DRIVINGANDCONNECTIVITY
This newsystemfeatures globalcapabilityforvehicleownersinmore than150countries. all FCA automotive brands and prepares for the integration of advanced technology. futureimprovements. growth With inmind,theUconnect5architecture isscalableacross updates toperiodicallyupdatetheUconnect5systemforperformanceandquality vehicle. Additionalconnectivityfeatures includeFirmware OverTheAir(FOTA) software nearest chargingorgasstation,makedinnerreservations, allfrom thecomfortoftheir commerce platformprovide customerstheabilityto convenientlyorder food,findthe and deliveranenhanceduserexperience.Features liketheUconnectMarketin-vehicle Uconnect 5 uses a cloud-based platform to power connectivity, offer a full array of services demands related toconnectivitywithinvehiclesare alsoincreasing. FCA'sall-new Along withtheriseofautonomousdrivingtechnology, consumerexpectationsand CYBERSECURITY manner onthreat triage. ofnewthreatslearn andvulnerabilities,toworkinacollaborative ISAC). TheAuto-ISACalsoenhancestheindustry’s abilitytoquickly in theAutomotive-InformationSharingandAnalysisCenter(Auto- the developmentofbestpracticeguidelinesthrough activeparticipation through committeesand in participationinISO andSAEInternational industrystandardsactively engagedinthedevelopmentofinternational during development,manufacturingandservice.Inaddition,FCA is Cybersecurity isconsidered throughout avehicle’s lifecycle,including threat monitoring,designenhancements, andpenetrationtesting. our corporatesystemsandvehiclesthrough activitiessuchas functional teamofprofessionals focusedonthecybersecurityof features roll outtomore andmore ofourvehicles.FCAhasacross- Cybersecurity isahighpriorityforFCAasconnectivityandautonomous
71 2020 SUSTAINABILITY REPORT Products and Customers Efficient Powertrains and Technologies to the goal of transitioning to a low-carbon future. future. to alow-carbon of transitioning to goal the to contribute targets established has and change climate market.each FCA by posed the acknowledges challenges of requirements regulatory the different accommodating while technologies, advanced and recognizing and combining, conventional technologicallypossible, where by achieved be best can results viable Economically solutions. connectivity options autonomous as such mobility and technology innovative and materials, of renewable use increased safety, vehicle quality, reduction, weight aerodynamics, improved powertrains, to efficient dedication includes FCA’s development vehicle to responsible approach and Technologies Efficient Powertrains UNITED NATIONS SUSTAINABLE DEVELOPMENTGOALS(SDGS) KEY FCAFIGURESSUPPORTING TECHNOLOGIES ELECTRIFIED VEHICLE 2020 OFFERING LAUNCHED IN MODELS 7
TECHNOLOGIES ELECTRIFIED VEHICLE FEATURING MODELS 12 72 2020 SUSTAINABILITY REPORT Products and Customers Efficient Powertrains and Technologies growing demandforelectrifiedvehicles. development, andmanufacturingfacilitiesinNorthAmericaItaly, tosupportthe architectures. We havemade significant investmentsin vehicle electrification (battery electric,plug-inhybridfullandmildhybrid)inglobalproduct FCA's approach overtheyearshasbeentooffer electrifiedpropulsion systems and transmissions,optimizingthevehicle/powertrainsystems. emissions andimprove fueleconomy. Thisincludesdevelopingmore efficientengines which offered improvements infueleconomyandareduction inCO In previous years,FCA launched three mildhybridapplications using BSG technology, with eBoosterand48-voltBSG, the firststepinMaserati’s electrificationpath. Maserati GhiblimildhybridlaunchedinSeptember2020,equipped witha2.0-literturbo engine launchedintheFiat500,PandaandLanciaYpsilon inEurope. Thenew In 2020,anew12-voltBSG(beltstartergenerator)3cylinder1.0-liter naturally-aspirated early 2021inEurope. km. The Fiat Ducato electric van was unveiled in 2019, and is expected to be launched in in Turin (Italy).TheNewFiat500electricisoffered inelectricrangesof320kmand180 launched in October 2020and manufactured for theEuropean marketat theMirafiori plant Along withtheexistingfullyelectricvariantofFiat500is NewFiat500electric, around theglobe. Turin (Italy).Substantialworkwasalsoperformedwithsuppliersanduniversitieslocated were Hills(U.S.),Modenaand developedatFCA'stechnicalcentersprimarilyinAuburn 1500 5.7-literand 3.6-literapplications.TheeTorque systemdeliverssignificant gainsin vehicles equipped withboththe2.0-literturboand 3.6-literengine,aswellin the Ram example, the48-voltmildhybrid technologyismarketedas“eTorque” inJeepWrangler improvements infueleconomyandareduction inCO mild hybrid,highvoltageplug-inandfullbatteryelectricvehicles,allofwhichoffer FCA's suiteofelectrificationtechnologiesincludes:12-voltenginestop/start,48-volt ELECTRIFIED VEHICLE TECHNOLOGIES Maximizing powertrainefficiencyispartofFCA’s commitmentto reduce vehicleCO PROPULSION TECHNOLOGIES POWERTRAINS ANDELECTRIFIED 2 emissions.Thesetechnologies 2 emissions.For 2
and lowenvironmental impact(lessthan50g/kmofCO performance (upto240horsepower),improved safety(four-wheel driveisalwaysavailable) that integratessomeofthemostadvancedtechnology, whichcombinesenhanced increases fuelefficiencyandoverallpower. Bothmodelsfeature aplug-inhybridpowertrain turbocharged gasolineengineplustheelectricmotorsprovides performanceand plug-in hybridelectrictechnologytobeavailableinEurope. Thecombinationofa1.3-liter The newJeepCompass4xeandRenegadeare thefirstJeepmodelswith 48-volt battery. extended fuelshut-off duringcertainmaneuvers,andregenerative brakingtorecharge the efficiency optimizationmanagerwhichbalancesmotorandenginetorque, enhancedand fuel economybyoffering fasterandsmootherstop/startfunctionality, areal-time powertrain operators, from thesameplatform. countries. Bysigninguptotheservice, userswillbenefitfrom interactingwithallthemain charging solutionwillprovide accesstomore than130,000chargepointsin21European justoneapp andonesinglecard the for thelargestchargingnetwork intheworld.With customers access to the digital service “My easyCharge,” offering them a single provider between FCA and Digital Charging Solutions GmbH, will provide Jeep 4xe or Fiat EV expanded thelistofcollaborationsandpartnerships.Forexample, apartnershipsigned strategic partnerships and create solutions for new mobilityscenarios.During 2020, FCA in asustainableway. To supportthisapproach, thee-Mobilitydepartment aimstobuild a newmobilitysystem,ensuringcustomerscandriveanelectric vehicleonadailybasis FCA’s strategyisnotlimitedtosimplyoffering electrifiedpowertrains,butalsotocreating China markets. plug-in hybridvehiclesand303,728intheNorth America,Europe and specific regions. Overall,in2020FCAsold6,339zero-emission vehicles(ZEV),16,077 4xe forNorthAmerica,Europe, andChinamarkets,withEVchargeportplugstailored to is expectedtobefurtherexpandedinearly2021withthelaunchofJeepWrangler effective waythansolelyamechanicalsystem.TheJeepbrand'splug-inhybrid lineup This allowsthetwoaxlestobeseparatedandcontrol thetorque independentlyinamore to therear axleisnotprovided byaprop shaftbutthrough thededicatedelectricmotor. between thetwopowersources. Asaresult ofthenewJeep4xetechnology, traction their benchmarkoff-road capabilitycourtesyofgreater torque offered bythecombination the new hybrid technology,With Jeep Renegade 4xeand Compass 4xe further improve 2 inhybridmode). 73 2020 SUSTAINABILITY REPORT Products and Customers Efficient Powertrains and Technologies ELECTRIFICATION TIMELINE mild hybrid 2012 plug-in hybrid (PHEV) e 500 Fiat United States(CaliforniaandOregon) 2016 battery electric (BEV) North America PACIFICA HYBRID Chrysler 2017 China HYBRID PACIFICA Chrysler 2018 WRANGLER 2.0L WRANGLER North America Jeep 2019 China COMMANDER Jeep AND AND 5.7L 1500 North America RAM Europe PANDA Fiat NEW 500 NEW Fiat Europe RENEGADE Jeep Europe 3.6L 2020 2021 Fiat Europe 500 GHIBLI HYBRID Maserati North America,Europe,China 4 WRANGLER Jeep YPSILON Lancia Europe Europe, China Europe COMPASS Jeep Europe E-DUCATO Fiat Professional Among others xe 74 2020 SUSTAINABILITY REPORT Products and Customers Efficient Powertrains and Technologies charge theelectricmodelsmanufactured onsite. naturally aspiratedandturbocharged versions.Eachenginefeatures amodularapproach suit marketneeds.Theglobalsmall engine(GSE)familyincludesthree andfourcylinder gasoline enginefamiliestoimprove fueleconomyandGHG/CO In 2020,FCAcontinueddevelopment oftheglobalsmallandmediumdisplacement ENGINES electricity andcontributetoareduction in CO pilot project. Inaddition,solar panelswillbeinstalledattheMirafioricomplextoproduce car andthecharginginfrastructure speakacommonlanguage,whichisthefocusof car andreturnspowertothegrid.Thistechnologycanonlywork efficientlywhenthe technology havestarted with a bidirectional chargingsolution, which both charges the a more sustainableelectricalpowerdeliverysystem.Experimentsusingthisinnovative optimize vehicles'operatingcostsforthecustomers'benefit, as wellcontributingto resource forthepowergridoperatedbyTerna. Italsorepresents anopportunityto enables vehiclestoexchangeenergywiththepowergrid,makingthemavaluable FCA launcheditsV2Gpilotproject attheMirafioriplantin Turin (Italy).V2Gtechnology full setofagreements occurred inJanuary2021. charging pointacross Europe withasubscriptionatfixedmonthlyrate.Thesigningofthe green energypackages.Itwouldenablecustomerstochargeathomeandanypublic customers suchasresidential, businessandpubliccharginginfrastructures aswell The newly created company would offer a full suite of products and solutions for EV packages. launched Vehicle-to-Grid (V2G)pilotproject andtheinnovativecustomer-oriented energy exclusive FCA easyWallbox, aneasy-to-use plug-and-play charging unit, the recently This approach allowedtheimplementationofprojects, suchastheintroduction ofthe of Understandingoriginatesfrom athree-year cooperation betweenthetwocompanies. make accesstoelectricmobilityeasyandconvenient.ThesigningofthisMemorandum intellectual property portfolio.The two Companieswould offer solutions and servicesto resources andindustrialfootprintalongwithENGIEEPS’technologicalknow-how to becomealeaderintheEuropean e-Mobilitylandscape.Thiswillrely onFCA’s financial venture withENGIEEPS,anItaliantechnologyplayerinEnergyStorageande-Mobility, In addition,FCAentered intoaMemorandumofUnderstanding,aimedatcreating ajoint 2 emissions and supply sustainable energy to 2 emissions,tobetter
transmissions. efficiency bearingshavebeenincorporated inupdatestomidsizefront-wheel drivemanual variants ofFCA'ssmallandmidsize front-wheel drivemanual transmissions,andhigh to operate more efficiently. Industrialization began in 2019 for enhanced and updated Jeep GladiatorandWrangler, offers optimizedgearratiospread toallowtheengine The 6-speed manual transmission forrear-wheel drive applications, introduced on the electric oilpumpsandadvancedtorque converterdesigns. 8 and9-speedtransmissionswithlowerviscosityautomatictransmission fluid,auxiliary Additionally, FCA continued to investigate technologies to improve the efficiency of our Group Co.,LtdinChina. GAC FiatChryslerAutomobilesCo.,FCA'sjointventure withGuangzhouAutomobiles the ChryslerPacificaplug-inhybridandJeepCommander hybridproduced by kilowatts. Theseproducts jointhededicatedhybridtransmission(theeFlite)usedin an 8-speedhybridtransmissionwithacompactelectricmotoroutputupto100 conventional andEVdrivingmodes.Inthe2021JeepWrangler 4xe,FCAintroduced a 6-speed automatic transmission to facilitate seamless transitions between 4xe feature twoelectricmotors(enginemountedandreplacing therear axle)and hybridized transmissionsystems.The2020JeepRenegade4xeandCompass In supportofglobalfuelconsumptionandCO DRIVELINE AND TRANSMISSIONS medium engineT4wasdevelopedtosupporttheMaseratilineup. was launchedinEMEA2020,whileahighoutputsupercharged versionoftheglobal (TJI) technology, increasing poweroutput.A1.0LGSEthree cylinderenginemildhybrid In 2020, FCA also developed a new 3.0L V-6 gasoline engine adding turbulent jet ignition harshness behavior. competitive withrespect tofuelconsumption,performance,weight,noise,vibrationand and cooled exhaust gas recirculation. All of these features enable the engines to be injection, downsizing, integrated exhaust manifold, MultiAir variable valve lift, turbocharging range ofvehicleapplicationsincludingfeatures andtechnologiessuch as direct fuel efficiency and power outputs. These engines have been fully deployed to cover a large using ashared cylinderdesign,allowingfordifferent engineconfigurations,displacements, 2 requirements, FCAintroduced two 75 2020 SUSTAINABILITY REPORT Products and Customers Efficient Powertrains and Technologies • • RANGE, CHARGINGANDDRIVING popularity toinspire change. connected andautonomous,adheringtoincreasingly stringentregulations andusingits introduced styleandcharmtotheiconiccitycar. Thethird generationismore sustainable, mobility, establishingitselfasaniconsince1957. Revivedin2007,thesecondgeneration takes inspirationfrom thegenerationsbefore it.The first generationoffered freedom and electric" car,The NewFiat500,FCA'sfirst"born madeitsdebutin2020.TheNew500 ALL NEW, ALLELECTRIC THE NEWFIAT 500: • •
when drivinginthecity included inthelaunchedition,canbemanagedeasilyviaBluetooth. easyW travel 30miles 85 kWfastchargersystem,onlyfiveminutestobuildupasufficient energyr Range ofmor Lithium-ion batterieswithacapacityof42kWh allbox, ahomechargingsystemthatcanbeconnectedtonormal homeoutlet, e than180kmWLTP andupto320kmWLTP, increasing to460km CYCLE IN THEWLTP RANGE KM 320 eserve to New Fiat Electric 500 76 2020 SUSTAINABILITY REPORT Products and Customers Efficient Powertrains and Technologies • • • ont-facing cameramonitoringtechnologymonitorsallareas ofthecar, both • LEVEL 2AUTONOMOUSDRIVING FIRST CARINITSSEGMENTTOOFFER • • •
and takeabreak whenyouare tired Attention Assist,whichpr light onthewingmirrorobstacles withatriangularwarning Urban BlindSpotusesultrasonicsensorstomonitortheblindspotsandwar Intelligent SpeedAssistr Lane Centeringkeepsthevehicleincenteroflane Intelligent Fr complex maneuvers. 360° sensorspr cars, cyclists,pedestrians longitudinally andlaterally Adaptive Cruise Control (iACC) system brakes or accelerates in response to WHAT’S BEHIND ovide adrone viewtoavoidanyobstacleswhenparkingorperforming ovides warnings onthedisplay,ovides warnings recommending that youstop eads thespeedlimitsandrecommends applyingthem n ofany In theCarofYear 2021awards ofthe UK magazine"WhatCar?" CITY FOR THE BEST ELECTRIC CAR SMALL AND YEAR THE OF CONVERTIBLE Awarded by"DrivingElectric"intheUK BEST ELECTRIC CAR SMALL AND YEAR CAR THE OF Bestowed bythereaders of theGermanmagazine"AutoMotorundSport" AWARDBEST 2020 DESIGN In the"DesignConcept"category, oneofthemost covetedprizesintheworldofindustrialdesign DOTRED AWARD 2020 AWARDED DESIGN SUSTAINABLE MATERIALS fibers are offered. and floorsmatsmadeof recycled In addition,seatswithveganleather from theocean:SEAQUAL®YARN. from recycled plasticpartlycollected in theNewFiat500,afiberderived material isusedtoupholstertheseats An innovativeandsustainable renewable materialsinnewproducts. promoting theuseofrecycled and For manyyears,wehavebeen 77 2020 SUSTAINABILITY REPORT Products and Customers Efficient Powertrains and Technologies by theGroup inthismarket. vehicles were registered inBrazil,accountingforapproximately 86%ofvehicleslicensed policies andreadily available rawmaterials.In2020,more than370,000FCAFlexfuel extensive bioethanoldistributionnetwork,supportedbylong-standing government Flexfuel vehiclesthatrunonvaryingblendsofgasolineandbioethanol. Brazilhasan gasoline (E10), and up to 7% biodiesel in diesel (B7). In Brazil, FCA has a full range of In Europe, allvehicle engines are compatible with blendsofupto10% bioethanol in BIOFUELS generates less CO totraditionalfuels.Itproducesa viablealternative lowerlevelofregulated emissionsand exceeded 780,000 vehicles. Natural gas is one of the most economical fuelsavailableand propulsion. From 1997to2020,theGroup's outputofCNG-powered vehiclesinEurope FCA was historically among the EU-market leaders in compressed natural gas (CNG) NATURAL BIOMETHANE GAS AND markets, andcapableofreducing emissionlevels. gas to biofuels, offering technologies that are aligned with the fuels available in various FCA's vehicleemissionreduction fuels,from strategyincludestheuseofalternative natural ALTERNATIVE FUELS a well-to-wheelbasis,produces roughly thesamelevel ofCO and organicmunicipalwaste.Anaturalgasvehiclecanalsorunonbiomethaneand, as naturalgas.Biogasisderivedfrom organicmaterialssuchasmanure, crop residues Biomethane, which is produced by upgrading biogas, has the same properties and uses potential tobecomearenewable fuelsource intheform ofbiomethane. powered vehiclerunningonelectricitygeneratedfrom renewable fuel. 2 emissions compared with gasoline. In addition, natural gas has the 2 emissionsasanelectric- at more optimaltemperatures. vehicle systemstooperateatahigherefficiencybytailoringindividualcomponentsrun “waste” thermalenergy, isbeingleveragedinmultipleproducts. This approach allows systems and cylinder deactivation. The value of thermal management, or using available fuel economy. These technologies include smart charging, optimized engine cooling powertrain systems,hascontributedtoanimproved balancebetweenperformanceand The wideruseofsmarttechnologies,whichprovide dynamicmanagementofthevehicle’s which improve frictionandothervehicleoperationalpowerlosses. air conditioningcompressors; highefficiency, brushlesselectricmotorsforcoolingfans, VEHICLE ENERGYDEMAND swing gate,allof which helpboostfueleconomy. strength aluminumdoors,hinges,hood,fendersandwindshield frame,aswellamagnesium of weight reduction solutions, for example, the 2021 Jeep Wrangler features lightweight, high- lighter vehiclesthatmeettheexpectations ofourcustomers.Thisincludesadoptinganumber Reducing vehicleweightincreases vehiclefuelefficiency, soFCAaimstodesignandproduce WEIGHT REDUCTION and reduce fuelconsumptionandCO automatically activated under certain operating conditions to improve aerodynamic drag tunnels oftheGroup. SelectedFCAvehiclesuseactiveaerodynamic technologiesthatare profile ismeasured, optimized,testedandcertifiedinthefull-scale,aerodynamic wind From the earliest development stage, the aerodynamic performance of every vehicle Fuel economycanbeimproved byoptimizingvehicleaerodynamic performance. IMPROVED AERODYNAMICS CO operating conditions to improve aerodynamic dragand reduce fuelconsumptionand air dams;adjustableheightsuspension,whichare automaticallyactivatedundercertain energy useaccording tooperatingconditions,suchas:activegrilleshutters;front loads. FCAalsocontinuedtorefine technicalsolutionsandsystemsaimedatimproving brake dragtorque, drivelineparasiticlosses,heatingandairconditioning,electrical energy demandconcentratedonreducing weight,aerodynamic drag,tire rolling resistance, energy demandofourvehicles.Recentresearch anddevelopmentfocusedonvehicle FCA augmentsitspowertraininnovationsbyintegratingtechnologiesthatoptimizethe air dams,activeaero front splitters,andadjustableheightsuspension. 2 emissions;variablespeedfuelpumps;displacementandhigher-efficiency 2 emissions,suchasactivegrilleshutters,front
78 2020 SUSTAINABILITY REPORT Products and Customers Efficient Powertrains and Technologies recent NHTSA required submission,whichreflects mid-modelyeardata for2020. model year. The2020fueleconomy datareported inthe graph, isbasedonthemost that amanufacturer's fleetmustachieve.Data reported toNHTSAisprovided by Corporate Average FuelEconomy(CAFE)isthesales-weighted averagefueleconomy major renewals ofFCAUSvehicles. cases surpassed, in the years since it was established. However, in 2020 there were no compared withreplaced vehicles/models.Thistargethasbeenachieved,and insome least afiveto15%improvement infueleconomyformajor renewals ofFCAUSvehicles FCA is committed to improving vehicle fuel efficiency and set a target toachieve at (CARB) regulate greenhouse gas(GHG)emissions. Agency (EPA) regulate vehiclefueleconomy. EPA AirResource andtheCalifornia Board Highway Traffic SafetyAdministration(NHTSA)and theU.S.Environmental Protection and acorresponding reduction offuelconsumptionand CO gallon (mpg).Anincrease infueleconomycorresponds toanincrease invehicle efficiency, In theU.S.,vehiclefuelefficiencyismeasured byfueleconomyexpressed inmilesper UNITED STATES FCA addresses thefueleconomyandCO EMISSIONS ANDFUELECONOMY • and isexpectedtocontinueincrease inthefuture. when imposed.Thecostofeachthesecomponentsourstrategyhasincreased reduced emissions,purchasing compliancecredits andpayingregulatory penalties of developing,manufacturingandsellingvehicleswithimproved fueleconomyand regulations in themarkets where we operate through a cost effective combination FCA historicallypursuedcompliancewithfueleconomyandgreenhouse gas regions where FCAoperatesreports totheCompany'sChiefTechnical ComplianceOfficer. In support of this, the Vehicle SafetyandRegulatoryComplianceorganizationinthe four addressing vastlydifferent consumerpreferences anddemandsaround theworld. technologies thatare intended torespond to these regulatory requirements, whilealso regulations withrespect tovehicleemissionsandfueleconomy. TheGroup develops FCA's vehiclesmustcomplywithcomprehensive local,regional andnationallaws • product developmentprocess byfocusingon:
vehicle energydemand(e.g.,aer powertrain technologies(e.g.,engines,transmissions,hybridandelectricpr odynamics, weight,tire performance). 2 emissionsofourvehiclesatthestart 2 emissions.TheNational opulsion)
20 25 30 35 FCA mass-market vehicles sold in the U.S. (mpg) Fuel EconomyStandards Fuel EconomyAccording toCorporateAverage Although the U.S. policy is complex with three separate CO 2016 andisincludedthrough 2015. Ferrari brandvehicles.Thespin-off ofFerrarifrom theGroup wascompletedonJanuary3, mass-market andluxuryvehiclessoldintheU.S.,includingFiat,Maserati, AlfaRomeoand FCA’s importpassengercarfueleconomy wasfirst reported in2014,andincludesboth mix ofvehiclesconsumerschoosetobuy. on manyfactors,includingthevehiclesandtechnologiesFCA offered, aswellthe passenger cars,aswellforlightdutytrucks.Actualfleetperformance isdependent NHTSA's regulations setseparate, independentstandards fordomesticandimported Previous yeardatainthegraphisadjustedtoreflect final EPA/NHTSA reports. by eachOEMand thenbeginstophase-out. trucks. Thisincentiveisavailable onthefirst200,000qualifyingelectrifiedvehiclessold relatively lowfuelpricesandincreasing consumerpreference forSUVs andpickup a tax credit to purchasers of up to U.S. $7,500 to incentivize demand and help to offset industry movementtoward anelectrifiedfuture. Forinstance,U.S. regulation includes regulations, itcontainsaflexiblearrayofnewtechnology incentivestoencourage Passenger Cars (Import) (Import) Cars Passenger 2012 24.3 31.1 2013 32.3 24.5 Passenger Cars (Domestic) (Domestic) Cars Passenger 2014 29.0 25.7 31.3 2015 26.2 30.3 33.7 2016 32.4 26.4 31.8 Light Duty Trucks Duty Light 2017 33.7 31.7 27.6 2018 33.4 30.4 28.7 2 emissions-related 2019 33.0 28.1 31.0 [ SDGs13] 2020 28.2 30.2 34.4 79 2020 SUSTAINABILITY REPORT Products and Customers Efficient Powertrains and Technologies (1) (1) 1.75 1.79 1.83 1.87 MJ/km gCO and (MJ/km Brazil in cars mass-market FCA Average EnergyConsumption andCO wheels andprovides approximately 12.5%CO cane produced ethanol.Sugarcaneethanolis80%renewable from “well”(orfield)to with adifferent approach. Today about30%ofvehiclefuelusageinBrazilconsistssugar The regulation forthenextphaseofEnergyEfficiency(CO achieve aminimumlevelofstructuralperformanceanddriverassistancetechnologies. commitments to:aVehicle LabelingProgram; achieveaminimumlevelofenergyefficiency; Program andestablishesmandatoryrequirements forvehiclecommercialization inBrazilwith Rota 2030 is a long-term program (three cycles of five years each) that replaced the Inovar Auto With itsabilitytogrow sugarcaneinhighvolume,BrazilisabletoaddressWith CO BRAZIL provide benefitsinconditions thatare notseenonthestandardizedtestcycles. government combustion efficiencyandalso recognizes andprovides credit flexibilitiesfortechnologiesthat categories. Amongotherthings,therulerewards the improvement ofsugarcaneethanol 2022 incorporatesthree fleetssplitintopassenger, largeSUVandlightcommercial vehicle further reduce CO andFCAworkedveryclosely onresearchgovernment anddevelopmentopportunitiesto matrix from thecurrent 30%to40%by2022and55%2030.Inaddition,theBrazilian and productiveness ofethanol, targetinganincrease ofshare onEthanolE100inthefuel launchedaplan(RenovaBio)toimprove E100/E22 basis.TheBraziliangovernment quality 2020 data is an FCA estimate. FCA an is data 2020 2017 135.1 1.85 2 emissionsthrough improvements toethanol-fueledengines. 2018 130.6 1.79 2 /km) 2 Emissions 2 reduction onanequivalent30/70fuelmix 2019 131.4 1.80 2 /fuel efficiency) beginning in /fuel efficiency)beginningin 2020 131.8 1.80 (1) [ SDGs13] gCO 2 reduction 2 127.6 136.6 130.6 133.6 /km monitoring program (PBEV-BrazilianLabelingProgram Vehicle). voltage electrification.FCAalsoparticipatedinthegovernment’s vehiclefuelconsumption 2025 withincreased usageandefficiencyofitsethanolbasedengineswithoutanyhigh calculating credits. battery electricvehicles, andfuelcellvehicles, to whichvariousmultipliersapply when Energy Vehicle (NEV) credit beginningin2019. NEVsconsistofplug-inelectric hybrids, Consumption Limits. Additionalprovisions for PhaseIVincludedmeetinga quota forNew and beyond-it'scompulsoryfor locallyproduced vehicles tomeetSingleVehicle Fuel average requirement beganin2016,withincreasing stringencyeachyearthrough 2020 average fuel consumption target related to vehicle weight. The phase-in of this fleet- 100 kilometers by 2020 under the NEDC cycle. Each OEM must meet a specific fleet Consumption (CAFC)wasenforced andprovided anindustrytargetof5.0litersper respect tofueleconomyinChina,PhaseIVof theCorporateAverageWith Fuel Beijing implementedChina6batthebeginningof2020. Chongqing andTianjin. as Shanghai,Guangzhou,Shenzhen,Yangtze River Delta,PearlRiverChengdu, recovery requirements. Some regions within Chinaimplemented China 6b in 2019, such control requirements, andaddreal driving emissionsandU.S.on-board refueling vapor board diagnostic (OBD) requirements similar to U.S. OBD and evaporative emissions and 6bhavemore stringenttailpipeemissionsthresholds thanEuro 6,implementon- 2021 withChina6athresholds andbyJuly2023withChina6bthresholds. China6a China 6standards were released in2016andare required nationwidebeginninginJanuary electrified objectives. access to public charging is expected to be a critical element to achieving China’s the world. Sincemuchofthevehicleconsumerdemographicresides in urban areas, From aconsumer perspective, China has the highest number of first time car buyers in hybrid, orfuelcellvehicles. credit andincentivesfornewenergyvehicleswhichare definedasbatteryelectric,plug-in policies includerequirements oncorporateaveragefuel economyandnewenergyvehicle electrification, connectivity andautonomous driving inthe next decade. The regulatory hasstatedintentionstobecomethegloballeaderinThe Chinesegovernment CHINA in thismarket.FCAexpectedthatBrazilianCO ofthevehicleslicensedbyGroup registered in2020,accountingforapproximately 86% (E100) accountsforabout30%ofsalesbyvolume.More than370,000Flexfuelvehicleswere market. In Brazil, gasoline contains 27% ethanol, diesel contains 12% biodiesel. Pure ethanol Brazilian consumersalready widelyuseethanolfuel,readily availableinthecurrent retail fuel 2 fleet reduction targetswouldbemetthrough 80 2020 SUSTAINABILITY REPORT Products and Customers Efficient Powertrains and Technologies 6.75 7.17 7.59 8.02 8.44 8.86 9.28 9.70 10.13 Average FuelConsumptionandCO own NEVcredits, orthepurchase of NEVcredits. Non-compliance withtheNEVtarget carry-forward CAFCcredits, transferofCAFCcredits withinaffiliates,theOEMsuseofits Non-compliance withtheCAFC target intheseadministrativerulescanbeoffset through administrative rulesregarding CAFCandNEVcredits thatbecameeffective inApril2018. In September 2017, China’s Ministry of Industry and Information Technology released are expectedtobeissued at alaterdate. kilometers by2025.Thefinalmanagementrulesfor2024-2025 CAFCandNEVCredits withincreasingthe Chinesegovernment stringencyreaching atargetof4.6litersper100 the sameyear. The2021-2023PhaseVCAFCand NEVCredit ruleshavebeenreleased by vehicles andauniqueChinesetestcyclewillbeapplicabletobattery electricvehiclesin Beginning in 2021, China will adopt WLTP for conventional and plug-in hybrid electric (4) (4) (3) (2) L/100 km gCO and km (L/100 China in cars mass-market FCA 6.32 Vehicles (Imported) Include those produced by the GAC-FCA joint venture. joint GAC-FCA the by produced those Include 2020 data is an FCA estimate. FCA an is data 2020 Include Jeep, and, Chrysler from 2017, Alfa Romeo brand vehicles. 2013 230.6 174.2 9.73 7.35 (3)
172.8 223.5 2014 7.29 9.43 Vehicles (Domestic) 177.0 221.1 2015 9.33 7.47 (4) 190.5 2016 9.86 233.7 8.04 2 Emissions 2 /km) /km) 8.81 2017 8. 181.8 181.8 7.67 208.8 168.5 2018 7.11 7.67 167.1 178.5 2019 7.53 7.05 214.2 2020 [ SDGs13] 158.6 6.69 gCO 9.04 (2) 2 /km 200 230 220 190 160 150 180 240 210 170 fleet averagetargetof95grams of CO average CO vehicles (LCVs). This regulation required thatnewlightcommercial vehicles meet afleet price sensitivity. The EU drove a significant CO reduction in Europe represents themostchallengingcombinationofregulatory stringencyandconsumer EUROPEAN UNION target forCO Each automobilemanufacturer mustmeetaspecificsales-weightedfleetaverage real drivingconditionsiseffective. (RDE) testprocedure todirectly assesstheregulated emissionsoflightdutyvehiclesunder Worldwide harmonizedLightvehiclesTest Procedure (WLTP), thenewRealDrivingEmissions and are effective forallnewpassengercarsandlightcommercial vehicles.Inadditionto to priorEuro 5standards. Furtherrequirements ofEuro 6havebeendevelopedbytheEC require additionaltechnologiesandfurtherincrease thecostofdieselenginescompared Euro 6emissionlevelsare ineffect forallpassengercarsandlightcommercial vehiclesand regulations undertheUNECE framework. requirements on vehicles sold in all 27 EU member states, while non-EU countries apply Economic Commission for Europe (UNECE). The EC imposes standardized emission control In Europe, emissionsare regulated bytheEuropean Commission(EC) and theUnitedNations The EU has also adopted standards for regulating CO cars (130g/kmuntil2019). portfolio thatFCAoffered intheregion. configuration. Additionally, theJeepCommanderplug-inhybridexpandedNEV Jeep GrandCommanderandRenegadehaveenginestop/startasastandard technology. TheJeepWrangler andlocally-produced JeepCherokee, JeepCompass, The Group has implemented fuel efficient technical solutions such as engine stop/start NEV deficitsuntilthe are offset. exceed CAFCtargetswillbesuspendedforOEMsthatare unabletooffset CAFCand/or can onlybeoffset bythepurchase ofNEVcredits. Thehomologationofnewproducts that aging vehicles.TheCO combustionengine applicationswilllikelyberestricted, Conventional internal especiallywith are implementinglowemissionzonesinanattempttoimprove airqualityincitycenters. 2 targetof147grams ofCO 2 emissionsasrelated tovehicle weight.Thisregulation setsanindustry 2 financialpenaltystructure isverysignificant. 2 perkilometerin 2020 (175g/kmuntil2019). 2 perkilometerstartingin2020 for passenger 2 emissions from light commercial 2 in 2020, and metropolitan areas 81 2020 SUSTAINABILITY REPORT Products and Customers Efficient Powertrains and Technologies 100 160 130 150 120 140 170 2019/631. CO 2019/631. (5) (5) 110 FCA mass-market cars in the European Union (gCO Union European the in cars mass-market FCA Average CO In theEuropean Union,FCAsetatargettoachieve40%reduction inCO cars anda31%reduction forLCVin2030from 2021 levels. from 2021levelsin2025(bothpassengercarsandLCV),a37.5%reduction forpassenger emissions targetsstartingfrom 2025and2030wasadoptedrequires a15%reduction A new regulatory test procedure for measuring CO to provide CO passenger carsandinSeptember2019forallregistered LCVs.TheWLTP isexpected of lightdutyvehicles,theWLTP, entered intoforce inSeptember2018forallregistered by 2020compared withthebaselineof2006formass-marketcarssoldinEurope. real drivingconditions.InApril2019,theRegulation(EU)2019/631whichsetsnewCO 90 80 Source: 2000-2018 EU Commission data; 2019 and 2020 FCA estimate. The average CO average The estimate. FCA 2020 2019 and data; Commission EU 2000-2018 Source: 2000 161.7 2 values are defined in accordance with EU Regulation 692/2008 and on the basis of the measurement / correlation method referring to the NEDC cycles as per Regulation EU 2017/1153.EU Regulation per as cycles NEDC the to referring method correlation / measurement the of basis the on and 692/2008 Regulation EU with accordance in defined are values 2001 2 157.2 EmissionsforNewly-Registered PassengerCars 2 emissionsandfuelconsumptionvaluesthatare more representative of 2002 158.1 0320 052006 2005 2004 2003 155.7 151.1 2 /km) (5) 150.4 2 emissions and fuel consumption 150.3 2 emissions in 2019 and 2020 include pooling arrangement contribution in order to meet the obligations under Art. 4 of Regulation (EC) 443/2009 and Art. 4 of Regulation (EU) (EU) Regulation 4of Art. and 443/2009 (EC) Regulation 4of Art. under obligations the to meet order in contribution arrangement pooling include 2020 2019 in and emissions 2007 146.9 082009 2008 142.6 [ SDGs13] 2 emissions 133.1 2
2010 127.8 contribution andcomplianceexemptionfor2020. leveraging conventional technologies, high voltage electrification, pooling arrangement FCA adoptedamulti-facetedapproach tomovetoward the95gCO the firstyearEUCommissionmonitored averageemissions. 2012-2019 and2020targets),a45%reduction compared with2000,whichwas decrease compared with2006(thebenchmarkyear usedinEUregulations tosetthe market cars sold in EU during 2020 is estimated to be 89 g/km. This represents a 41% by Regulation(EU)No.2019/631.TheaverageCO FCA’s CO 2011 121.7 2 emissionsdatafor2020isnotyetavailableundertheprocess required 2012 123.0 2013 121.5 2014 120.9 2015 121.4 2016 119.3 2 emissionsoftheGroup’s mass- 2017 119.2 2018 124.4 2 /km targetby 2019 124.8 2020 89.0 82 2020 SUSTAINABILITY REPORT Products and Customers Efficient Powertrains and Technologies certified, asserted its exclusive jurisdiction over the matters raised by the KBA, tested the vehicles, certified, asserteditsexclusive jurisdictionover themattersraised bytheKBA,tested thevehicles, discussions, the MIT, whichhassoleauthorityforregulatory complianceofthevehicles ithas our emissioncontrol calibrationsand thefeatures ofthe vehiclesinquestion.Afterthese initial regarding emissions testresults forourvehicles, and discussedtheKBAreported test results, We also initially responded to inquiries from the German authority, the Kraftfahrt-Bundesamt (KBA), review ofseveralourvehicles. European Union,andtheUKDriverVehicle Standards Agencyinconnection withtheir Vehicle Regulator(RDW),theauthoritiesthatcertified FCAdieselvehiclesforsaleinthe In Europe, wehavebeenworkingwiththeItalianMinistryof Transport (MIT)and theDutch appropriate, agenciesandauthorities. wecontinuetocooperatewiththesegovernmental examine theon-road tailpipeemissionsofseveralautomakers’vehiclesand,whenjurisdictionally We havealsoreceived inquiriesfrom otherregulatory authoritiesinanumberofjurisdictionsasthey an amountthatwasnotmaterialtotheGroup. the dieselemissions-related investigationwiththeU.S.SecuritiesandExchangeCommissionfor a number of related private lawsuits (the Non Opt-Out Litigation). In September 2020, we settled best estimate of probable loss with regard to matters under discussion. We also remain subject to accrued approximately €200millionduringthethree monthsendedSeptember30,2020asour may bereached withtheDoJ,CriminalDivision,orultimateoutcomeofitsinvestigation,we outcome ofthesediscussionsisuncertainandwecannotpredict whetherorwhenanysettlement FCA US,whichmayinvolvethepaymentofpenaltiesandothernon-financial sanctions.Whilethe to determinewhetherwecanreach anappropriate resolution oftheirinvestigationasitrelates to civil settlementsdescribedabove.We havecontinueddiscussionswiththeDoJ,CriminalDivision in connection with efforts to obtain regulatory approval of the vehicles that were the subject of the among otherthings,fraud,conspiracy, falsestatementsandviolationsoftheCleanAirActprimarily Division. InSeptember2019,theDoJfiledcriminalchargesagainstanemployeeofFCAUSfor, In theU.S.,weremain subjecttoadieselemissions-related investigationbytheDoJ,Criminal settlement agreements withlessthan100oftheseremaining plaintiffs. Opt-Out Litigation and participated in court-sponsored settlement conferences, but have reached individual claimsagainstus(theOpt-OutLitigation).We haveengagedinfurtherdiscoverythe that haveexercised theirrighttooptoutoftheclassactionsettlementandpursueown 2019. Nevertheless,wecontinuetodefendindividualclaimsfrom approximately 3,200 consumers eligible customersaffected bytherecall. Thatsettlementreceived finalcourtapproval onMay3, consumers in connection with which FCA US agreed to pay an average of $2,800 per vehicle to A portion of the accrual was attributable to settlement of a putative class action on behalf of the accrualwasrelated tocivilpenaltiesresolve differences overdieselemissionsrequirements. million wasaccruedduringtheyearendedDecember31,2018.Approximately €350millionof 49otherStatesandU.S.CustomsBorderState ofCalifornia, Protection, forwhich€748 AirResources Board,Civil DivisionoftheU.S.DepartmentJustice(DoJ),California the environmental andconsumerclaimswiththeU.S.Environmental Protection Agency(EPA), the On January 10,2019,weannouncedthatFCAUShadreached finalsettlementsoncivil REGULATORY ACTIONS legacy FCA vehicles. in connectionwith thesubjectvehiclesandwith MOE inconnectionwiththeirreview ofother Trade Commissionregarding apurportedbreach oftheActonFairLabelingand Advertisement with localcriminal authoritiesinconnectionwiththeir review ofthismatter, withtheKorean Fair the Group. FCAappealedtheMOE’s decision.OursubsidiaryinSeoul,Korea isalsocooperating above-referenced vehicles and announced an administrative fine for an amount not material to InMay2019,theMOErevoked homologation ofthevehiclesconcerned. certificationofthe control calibrationsvoluntarily performed by FCA, althoughcompliant, would have required re- were notemissionscompliant andthatthevehicleswithasubsequentupdateofemission that approximately 2,400FCAvehiclesimported into Korea during 2015,2016and2017 In December 2018, the Korean Ministry of Environment (MOE) announced its determination compliance ofcertainourvehiclesinGermany. the UK.We are alsodefendinganumberofindividualconsumerclaimsallegingemissionsnon- compliance ofcertainFCAE5andE6dieselvehicles.Asimilarclaim hasbeenannouncedin seeking monetarydamagesandvehiclebuybacksinconnectionwith allegedemissionsnon- were recently servedwithapurportedclassactionfiledintheNetherlandsbyDutchfoundation laws. We are cooperating with the investigations. Several FCA companies and its Dutch dealers their investigationsofpotentialviolationsdieselemissionsregulations andconsumerprotection the UK at the initiative of the Public Prosecutors of Frankfurt am Main and of Turin, as part of In July2020,unannouncedinspectionstookplaceatseveralofFCA’s sitesinGermany, Italyand consumer protection laws. number of automakers including FCA, regarding whether the sale of those vehicles violated French Juge d’InstructionduTribunal deGrandeInstanceofParisisinvestigating dieselvehiclesofa matter isstillpending.Inaddition,attherequest oftheFrench ConsumerProtection Agency, the have beentestedandapproved bytheRDWandare nowbeingimplemented.Nevertheless,this appropriate resolution ofthismatter. We proposed certainupdatestotherelevant vehiclesthat Member States.We engagedwiththeRDWtopresent ourpositionsandcooperatetoreach an an intention to order a recall and report their findingsto the Public Prosecutor, theEC andother summarizing theconclusionsofRDWregarding thosevehiclesandenginesindicating engine suppliedbyus.InJanuary2020,theDutchParliamentpublishedaletterfrom theI&W Grand Cherokee Euro 5modelsandavehiclemodelofanotherOEMthatcontainsEuro 6diesel found bytheRDWandDutchCenterofResearch TNOintheemissionlevelsofcertainJeep Management (I&W)hadbeencommunicatingwiththeMITregarding certainirregularities allegedly In December2019,theMITnotifiedusthatDutchMinistryofInfrastructure and Water confirming thatthevehicles'approval process wasproperly performed. certain FCAemissioncontrol calibrations.TheMIThasresponded totheEC'sallegationsby procedure against Italyregarding Italy'salleged failure to respond regarding to EC's concerns taken withrespect toFCA.InMay2017,theECannounceditsintentionopenaninfringement the KBA,inaneffort toresolve theirdifferences. Themediationwasconcludedwithnoactionbeing between theMITandGermanMinistryofTransport andDigitalInfrastructure, whichoversees of itsdetermination.Thereafter, mediationswere heldunderEuropean Commission(EC)rules, determined that the vehicles complied with applicable European regulations and informed the KBA 83 2020 SUSTAINABILITY REPORT Products and Customers Sustainable Design end-of-life vehicles. for recycling and recovery maximize that choices design and materials eco-compatible integrates life cycle, and their throughout of products footprint environmental the the circular economy. addresses approach design Our of concept the by embracing products of our footprint environmental the to reduce potential the FCA leverages Design Sustainable UNITED NATIONS SUSTAINABLE DEVELOPMENTGOALS(SDGS) KEY FCAFIGURESSUPPORTING COMPLETED SINCE2014 ANALYSES LCA VEHICLE 31 FULL
GLOBALLY PARTS OFFERED REMANUFACTURED 3,350+ 84 2020 SUSTAINABILITY REPORT Products and Customers Sustainable Design (ELV); andverifyingmaintainingtherequirements formaterialsandsubstanceusage. to movetoward sustainableenvironmental development;managingend-of-lifevehicles include conductingLifeCycleAssessments(LCA)onFCA’s products andprocesses inorder of thesetwoareas report directly totheFCAChiefExecutiveOfficer. Their responsibilities Development and Vehicle Safety and Regulatory Compliance organizations. The heads The maintopicsrelated totheCircular Economyfallunder theresponsibility oftheProduct opportunities. of spectrum afull addresses that approach balanced and thought-out awell FCA favors waste. and products materials, from use and value the maximizing on focused is that economy acircular toward transition the to stimulate efforts global support help practices FCA's sustainability from theoceanandfloormatsmadeof recycled fibers. vegan leatherandSEAQUAL®YARN, afiberderived from recycled plasticpartlycollected bio/renewable content. Inaddition,theseatsofNew Fiat 500 electricoffer materialwith channels containingrecycled content,andgradesofsyntheticsuedewithrecycled and polymers. Newlyapproved applicationsincludefloorconsolepanels,storagebinsandwire FCA vehicles.Thesematerialscontainrecycled orbio/renewable content,orlowemissions processes. In2020,16newapplications ofsustainablematerialswere approved forusein changes in legislation and assesses potential implications on the Group’s products and in Europe and the Materials Engineering organization in the U.S. TheGML also monitors Material innovationanddevelopmentisconductedbyFCA'sGroup MaterialLabs(GML) the percentages. other materialssuchaspolymersandelastomers,thoughefforts are inplacetoincrease in ourvehicles(e.g.,metal),thepercentage ofrecycled contentissignificant,lesssofor requirements andthe marketavailability ofsuchmaterials. Forsome types ofmaterials renewable orrecycled contentincludedinourvehiclesvariesdependingonperformance FCA supportsusingrecycled and renewable materialsinournewproducts. Theamountof MATERIALS ANDSUBSTANCES Sustainable Design to berestricted inthenearfuture. equivalent andenvironmentally sustainablesubstitutesfor substances thatare expected adopted byFCAsupplierswith whomwecollaboratecloselyinidentifyingtechnically and heavy metals ban. This level of awareness and commitment to compliance is also REACH (Registration,Evaluation, AuthorisationandRestrictionofChemicals)regulation FCA focusesonSoCsidentifiedinglobally regulated substance restrictions liketheEU's increasing transparency andclarity. sold ormarketed,thatminimizemarket-specificuncertainty orinterpretation while It provides uniformglobal requirements, regardless ofwhere theproducts are ultimately worldwide, which are required to adhere to IMDS and SoC disclosure obligations. standardFCA's internal ofrestricted andprohibited SoCsismadeavailabletosuppliers Substance List(GADSL). recoverability, aswellmonitoringSoCsincludedontheGlobalAutomotiveDeclarable the presence ofSoCs.These systemsare crucialfortrackingvehiclerecyclability and management systems,whichare usedtomonitorthecontentofallvehiclesandidentify materials and componentsin our vehicles. Data from IMDSisthenfedintoFCAinternal We Material Data System (IMDS) use the to International track the composition of individual impact humanhealthortheenvironment. FCA workstoeliminateorreduce (SoC)thatmay theuseofSubstancesConcern SUBSTANCES CONCERN OF by weightforcertainEuropean applications. For example,wemanufacturethatare gasolinetanksinternally upto45%recycled plastic alloys. We also promote the use of recycled plastics in our design requirements. aluminum casting parts used in some powertrain applications in Europe are secondary in Europe, andrecycle thembackintoourmanufacturing processes. Upto25%of FCA hasaclosed-loopprocess toreturn aluminumandsteelscrapstoselectedsuppliers
85 2020 SUSTAINABILITY REPORT Products and Customers Sustainable Design improvement duringtheuse phase,whichdependsontheelectricitygridmix. Fiat 500electricduetotheLi-ionbatterymaterialsandmanufacturing, butanimportant 500 gasolineshowa higher Global Warming Potentialforthe production oftheNew • • analyses since2014.In2020,LifeCycleAssessmentscompletedinclude: environmentally-friendly products. Collectively, FCAhascompleted31fullvehicleLCA The results from vehicleLCAsmayhelpcontributeto thedevelopmentofnew, more automotive componentsare projects. alsoconductedwithinseveralinternationally-funded LCA studieswiththesestandards. CollaborativeLCAsrelated tomaterials,processes and Critical reviews byathird-party certificationcompanyverify thecomplianceofselected waste generation,whichare measured basedonISO 14040andISO14044standards. as energyandotherresources consumedduring production; useand recycling; and components, designandproduction processes. LCAconsidersmultiplefactors,such FCA uses Life Cycle Assessment (LCA) to evaluate the environmental impact of materials, LIFE CYCLEASSESSMENT For instance,themainr •
Jeep RenegadePHEV190hpvsgasoline180 1.4 8VFlexandNovaFiatStradaFreedom CabinePlus1.38VFlex Fiat StradaHar New Fiat500electricHB-longrangevsgasoline1.269hp d Working CC1.48VFlexvsNovaFiatStradaEnduranceCabinePlus esults from theLCAanalysisofNewFiat500electricvs
VEHICLE END-OF-LIFEMANAGEMENT weight, incompliancewiththeEU’s Reusability, Recyclability, RecoverabilityDirective. In 2020,allGroup vehicles soldinEurope were 95%recoverable and85%recyclable by the developmentofnewstandards orregulations, such asvehicleandbatteryrecycling. in thereview process ofend-of-lifevehicle(ELV) andend-of-lifebatterypolicies,supporting achieve the reuse/recycling/recovery targets in EU countries. In addition, FCA participates free take-backnetworks,sharingofdismantlinginformationandcontinuousefforts to the designofrecyclable andrecoverable vehicles,management oftheend-of-lifevehicles of lifetheproducts theyplaceonthemarket.FCAaddresses thisEUDirective through extended producer responsibility, whichstipulatesthatautomakersmustmanagetheend reuse, recycling andrecovery activities.EUDirective 2000/53addresses theprincipleof for example,EUDirective 2000/53andtheCircular Economy packagedescriberequired regulates end-of-lifemanagementactivitiesandresponsibilities. IntheEuropean Union, the mostrecycled consumerproducts inthatcountry. Inothermarkets,locallegislation a market-drivenrecycling infrastructure, makingautomobilesandtheircomponentsamong In theU.S.,environmental effects ofvehiclesatthe end-of-life stageare reduced using life stage. impact isalsoreduced atthepointwhencustomerdiscards thevehicleatitsend-of- production, deliveryanduse phases.FCAdesignsourproducts sothattheirenvironmental Pursuing aresponsible approach across the valuechainmeanslookingbeyonddesign, 86 2020 SUSTAINABILITY REPORT Products and Customers Sustainable Design cathode materials,whichcanreduce costandincrease energydensity. related projects, including those focused on recycling lithium-ion batteries toproduce new collaborative organization of automakers. This work group contains a number of battery- landfill solution.Additionally, FCAparticipatesin theU.S.AdvancedBatteryConsortium,a cost optionforthereplacement oftheirbatteriesinadditiontobeingazero waste-to- including motorizedwheelchairs.Thisinitiativeoffers consumersofthesegoodsalower them forrepurposing innon-automotiveapplicationssuchaspersonalmobilitydevices, available, FCAorabusinesspartnernotifiesthesupplierwho retrieves andtransports due tothesignificantenvironmental footprintofthesebatteries.Whenbatteriesbecome non-automotive applications.TheElectricVehicle BatteryRecyclingprogram isimportant that aimtocollecthigh-voltagelithium-ionbatteriesandrecycle orrepurpose themin the lifecycleoflithium-ionbatteries.We are partnering withseveralsuppliersonprograms As ourelectrifiedvehicleportfoliocontinuestogrow, FCAisexploringsolutionstoextend information thatisusedtogeneratemore accuraterecyclability andrecoverability information. to satisfydismantlingrequirements forELVs, andprovides orhelpsconfirmexistingpart life research anddevelopment.TheVehicle RecyclingLaboratoryperformsvehicleteardowns Development Centre (ARDC)inCanadaplaysanimportantrole tosupportvehicleend-of- with ELV regulations. TheFCAVehicle RecyclingLaboratoryattheAutomotiveResearch and FCA provides recyclability andrecoverability informationonvehiclesexportedtocountries REMANUFACTURED PARTS that carrythesamewarrantyconditionsasnewparts. parts inorder toprovide arepair solutionthatisequivalenttooriginalequipmentparts,and Through specializedproviders, external FCAcertifiestheproduction of remanufactured more than3,350partnumbersglobally. as well asengine and transmission product categories. The number ofproduct offerings is control modules,highvoltagebatterypacks,torque converters,steeringandsuspensions, remanufactured brake calipers, electronic product linesincludestarters,alternators, and decreasing thevolume of salvageablematerialsheadingtolandfills.TheFCA aftermarket needsofcustomers,simultaneouslyreducing thecostofvehicleownership developed specific product lines of remanufactured parts. These parts support the To provide asecondlifeforselectedpartsusedinFCAvehicles,theCompanyhas that FCAstrivestoreduce byemployingcircular economy principles. Dependence onrawmaterialsforpartscreates demandonnaturalresources, ademand 87 2020 SUSTAINABILITY REPORT Products and Customers Customer Focus channels. many and network communication through our dealer process ownership and purchasing the throughout experience customer apositive creating on FCA focuses mind, in this With experiences. driving and preferences individual culture, the as such market each within by differences impacted are may need customers that services and support options, mobility the that recognize We also stakeholders. FCA for our topics and material most the among are experience, customer overall the of key quality, are and elements which Vehicle safety Focus Customer UNITED NATIONS SUSTAINABLE DEVELOPMENTGOALS(SDGS) KEY FCAFIGURESSUPPORTING RATINGS NCAP 5-STAR ACHIEVED MODELS 6 CONTACT CENTERS WORLDWIDE BYCUSTOMER CONTACTS HANDLED MILLION ~45.5
AGENCIES ON EXTERNALRATING PLACEMENT BASED FIRST QUARTILE MARKETS, ACHIEVED IN THEIRRESPECTIVE MODELS 8 CONTACT CENTERS SPOKEN AT CUSTOMER LANGUAGES 29
88 2020 SUSTAINABILITY REPORT Products and Customers Customer Focus the automotiveindustry. Group andotherautomakersstandardized thistrainingandmadeitavailablethroughout NHTSA. Buildinguponthiswork, acollaborationwiththeAutomotiveIndustryAction (NHTSA). Thistrainingwas launchedbyFCA in2017andincorporatedfeedbackfrom Safety Act and regulations of the U.S. National Highway Traffic Safety Administration them onFCA'sexpectationsandsupplier-specific requirements oftheU.S.Motor Vehicle Our suppliers in North America have access to a web-based training program that instructs the Vehicle SafetyandRegulatoryCompliancegroup. investigated, analyzed,andincorporatedintospecificinitiatives andprocedures within applies methodologies to ensure that potential vehicle safety risks are identified, reinforce ourvehiclesafetyculture atalllevelsof the organization. Similarly, the program of Conduct,managementcommunicationsandpublicitycampaigns are alignedto the regulatory framework of ourindustry. Forexample,undertheprogram, ourCode applies complianceprinciplestovariousoperationalfunctions thatare dedicatedto responsible andsustainable manner. Vehicle Ourinternal SafetyComplianceProgram protect drivers,passengers,theenvironment, andourcommunities,inasocially to ensure thatvehiclesafetyremains afundamental corporatevaluethathelpsto FCA believes that the automotive industry should adopt a systematic approach guidelines andprocesses where possible,giventhe different regulatory environments. Compliance Officer. Thisalignmentfurthersupportssharinginformationtoharmonize the fourregions where FCAoperatescollectivelyreport totheCompany'sChiefTechnical From aglobalperspective,theVehicle SafetyandRegulatoryComplianceorganizationsin inquiries. reported through theprogram andprovides appropriate follow-upandfeedbackto Compliance Committeehasglobaloversightoftheprogram andoverseestheissues are required underourCodeofConducttoreport such issues.Inaddition,aTechnical system toallowfortheanonymousreporting ofvehicle-specificissues.FCAemployees compliance. Theprogram worksthrough theexistingEthicsHelplinewhistleblowing FCA employees,toreport related concerns tovehiclesafety, emissionsorregulatory FCA hasaprogram whichallowssuppliers,dealersandotherstakeholders,including of FCA, and is among the essential responsibilities described in our Code of Conduct. Delivering safeproducts to ourcustomersisafundamentalandunwaveringobjective VEHICLE SAFETY research related tovehiclesafety. the U.S.CouncilforAutomotiveResearch, toidentifytechnicalissuesandconduct MeBeSafe. IntheU.S.,FCAcollaborateswithotherautomakers through groups like accident datatoimprove road andvehiclesafetyhassupportedtheEUproject Accident Data),aconsortiumofautomanufacturers thatcollectsandanalyzestraffic safety organizationisamemberofIGLAD(InitiativefortheGlobalHarmonization improved safetystandards and automated drivingsystems. As anexample,theEMEA on areas ofoccupantand vulnerableroad usersafety, suchasdevelopingnewand FCA groups also actively participates in national and international and projects focused at thePomiglianoTechnical Center(Italy). well aspedestriansandcyclists.Inaddition,more than1,000real accidentswere reviewed globally tounderstandperformancevehiclesafetystandards forvehicleoccupants,as than 4,300tests,includingfull-scalecrashsledandcomponentwere reviewed implementation ofupgrades toour testing equipment and methodology. In 2020,more These efforts notonlystrivetohelpimprove vehiclesafety, butalsoresult intheconsistent of vulnerable road users; and integration of active and passive safety systems. levels infront, rear andsidecollisionsforvehiclesfrom different segments;protection safety systemsforallofourmodelsandconcentrateonvariousaspectsincluding future active and passive safety systems. The engineers develop and assess effective performance ofvehiclesafetysystemsinreal-world collisions,weare abletodevelop and innovativetechnologicalsolutionsforvirtual physical tests.Byanalyzingthe Our advancedengineeringorganizationsaround theworldapplyvirtualreality methods SAFETY RESEARCH by alertingthem to certainpotentiallyhazardous situationsorassistingthem inmitigatingthe tertiary safety elements. The intent of active safety systems is to help drivers avoid crashes FCA offers activeandpassivefeatures fordiversedriversandvehiclesegments,along with speed limitsandrelays theinformationtodriver. uses digital camera technology and navigation-system data to monitor the roadway for improve safetyandthemobilityexperience.Forexample,Intelligent SpeedAdapter(ISA) them. Byproviding real-time availabilityofservicesandinformation,FCAiscontributing to and passengers'abilitytosafelyinteractwiththeirvehicle withtheworldaround devoting significant resources to research anddeveloptechnologiesthatsupportdrivers FCA isresponding toconsumer expectationsofhightechsolutionsintheirvehiclesby SAFETY TECHNOLOGYANDRATINGS
89 2020 SUSTAINABILITY REPORT Products and Customers Customer Focus consideration as wedevelopandtestoursafety systems. stringent protocols toachievefive-starsafetyratings.FCA hastakentheseprotocols into • NCAP programs withanoverall5-starsafetyratingisapproximately: vehicle. Among the markets where we operate, the percentage of FCA models rated by for Highway Safety (IIHS) named the 2021 Ram 1500 Crew Cab a Top Safety Pick rated National HighwayTraffic SafetyAdministration(NHTSA).Inaddition,theInsuranceInstitute overall safetyratingintheU.S.NewCarAssessmentProgram (NCAP)conductedbythe Challenger, DodgeCharger, JeepGrand Cherokee 4x4andRam1500 achievedthe5-Star on performance during assessments. The 2021 Chrysler Pacifica, Chrysler Voyager, Dodge through the use of technology. top ratings based Over the years, FCA vehicles have earned during specifictypesofcrashesaswellavehicle’s abilitytoavoidcertaincrashes criteria vary, these ratings generally evaluate the level of safety provided for occupants comparative safetyofvehiclesacross theindustryindifferent regions. Whilethespecific independent agencieshelpvalidateourprogress. Independent agenciesratethe As wecontinueefforts todeliveradvancementsinsafetytechnologies,ratingsfrom to beconsidered whenassisting theoccupantsofvehiclesinvolvedinanaccident. rescue teams or first responders on special design elements and the position of components In thearea oftertiarysafety, theGroup provides emergencyrescue sheetswithinformationto improve crashenergymanagement. occupant restraint technologyandtheuseofmore advanced materialsthatenableusto Passive safetysystemsare designedtohelpmitigatetheeffects ofacrash.Theseinclude brakes. Incertainconditions,thesystemiscapableofbringingvehicletoastop. appears imminent it will, if the driver does not respond accordingly, activate the vehicle’s collisions withpedestrians.Ifthesystemdetectsapedestriananddeterminescollision For example,PedestrianAutomaticEmergencyBraking(PAEB) detectsandhelpsprevent assistance todriversincertaininstances,withthedriverretaining appropriate control. status ofthevehicle,driverbehaviorandincludesemi-automatedtechnologiesthatprovide risk posed by certain typesofidentifiedhazards. Thesesystemsmonitorsurroundings, the Independent ratingagencies,such asEur • • • •
China: 100% Australia andNewZealand:83% Latin America:33% EU: 19% U.S.: 43% o NCAPandIIHS,haverequired increasingly to educate andraiseawareness about theimportanceof gettingrecall repairs completed. Dealers Association alsojoinedwiththeNSCinsupport oftheCheckTo Protect campaignand recalls and urges customerstotakeactionrepair vehiclesquickly. TheNationalAutomobile regularly for openrecalls. Thecampaign drivescustomerstotheNHTSA databaseofallopen (NSC) andFCAUS,isintendedto raiseawareness oftheimportance ofcustomerschecking In addition,theCheckTo Protect publicawareness campaign,ledbytheNationalSafety Council potential vehiclesafetyconcern. Through theLeaveNoDoubtprogram, FCAalsoinvestigatesallsubmissionsthat have a reviews 100% of NHTSA Vehicle Owner Questionnaire complaints filed on FCA vehicles. and therobustness ofsafetyrecall campaignremedies forourcustomers.Respectively, FCA safety recall executionprocess hasbeenharmonized toenhancecoordination across regions Through theGlobalTechnical Complianceorganization,thevehiclesafetyinvestigationand • • • worldwide. Thethree largestrecall campaignsbytotal numberofvehiclesare: there were 77recall campaignsinvolving3,323,749initialrecall noticesforFCAvehicles recalls toaddress safetyissuespromptly andinconveniencefewercustomers.In2020, issues, weare abletoinvestigateandmakedeterminationsregarding appropriate safety effectively identifyandassesspotentialsafetyissues.Byquicklyidentifying rates. We useasetofadvanceddataanalyticstoimprove ourabilitytomore rapidlyand the overallcustomerexperienceduringsafetyrecall process andincrease completion action, includinginitiatingsafetyrecall campaignswhenappropriate. FCAaimstoimprove When potential vehicle safety issues arise, we promptly investigate and take corrective RECALL CAMPAIGNS
and malfunction.Affected are certain2016to2020FiatMobihatchbacks. circuit maybehigherthanbrake switchloadspecificationsandmayleadtocontactwear illuminate thebrakelightswhenpedalis pressed. Electrical loadsonthebrakeswitch and 2020Ram1500Classicpickups,produced before March 3 of2020. poor visibility. Affected are certain2019and2020JeepCompassSUVs, If so,intendedwiper-arm movementmaybecompromised, potentiallycontributingto to connectwindshield-wiperarmsoncertainvehicles,maynotbesufficientlysecured. A warrantydatareview prompted anFCAinvestigationthatdiscovered afastenerintended Durango andJeepGrandCherokee SUVs. and prevent enginestart-upand/or contributetostall.Affected are certain2011-13Dodge deposits onthecontactpointsofcertainfuelpumprelays mayinterruptelectricalcurrent connection. Feedbackfrom FCA dealersledtoanFCAinvestigationthatdiscovered silicon Campaign onappr Campaign onappr Campaign onappr oximately 708,000vehiclestohelpensure theintegrityofanelectrical oximately 252,000vehiclestoreplace abrakeswitchthatmaynot oximately 555,000vehiclestotightenawindshield-wiperfastener.
90 2020 SUSTAINABILITY REPORT Products and Customers Customer Focus • vehicles. Theprogram assessestheriskof items, suchasnewvehiclefeatures, duringthe initiative withinFCAfocuseson managingrisksandimplementingsolutionsfornew functional requirements are analyzedfrom theearlieststagesofdesign.A cross-functional For everyFCAvehicle,quality considerations rangingfrom customerexpectationsto QUALITY PROCESSES some regional results. Due to COVID-19, the ability to gather customer feedback impacted the availability of • • • • • their respective markets: commitment tovehiclequality, thefollowingbrandsachievedfirstquartileplacementin and Brazilachievedfirstquartileplacementbasedoncustomerfeedback.Aspartofour ratingagencyresults,Based onexternal during2020,FCAbrandsasawholeintheU.S. which iswhyourcustomer-focused approach toqualityduringvehicledevelopmentiskey. from markettodue differences indrivingexperiencesandlocalpreferences, to market,withimproved qualityandreliability. Customers'needsandexpectationsvary FCA strives to satisfy our customers by continuing to bring new technologies and products VEHICLE QUALITY • • • • • placement intheirrespective markets: The followingmodelsachievedfirstquartile • • •
Dodge -NorthAmerica Jeep Compass-AP Jeep Compass-LA Jeep Renegade-LA Fiat Strada-LA Fiat Mobi-LA Lancia Y Fiat Panda-EMEA Dodge Durango-NorthAmerica Jeep -AP Jeep -LA Lancia -EMEA Fiat -EMEA Ram -NorthAmerica psilon -EMEA TAM AC TAM TAM TAM AC TAM satisfaction. to rapidlyidentify andresolve potentialissues withnewmodelsandimprove customer is beingusedtochangedesign standards andtargets, programs suchasCCF help extensive vehicle feedback to FCA than traditional methods. Feedback from customers privacy regulations, toparticipateinanonlinecommunity toprovide earlierand more Customer Fleet(CCF)program allowsselectedcustomers, incompliancewithapplicable In additiontomonitoringthroughout theproduct developmentprocess, theConnected a coldweathertestingfacilityintheU.S. of facilitiesworldwide,includinginSweden,SouthAfricaandtheMiddle East,aswellat hot, humidlocationsallovertheglobe.We conductextreme weathertestingatanumber at highandlowaltitudesthrough blizzard conditions,aswelldry, desertheatand environments. Reliabilitytestfleetvehiclesare drivendayandnightonpublic road surfaces, Engineering andQualityteamsalsostudyhowvehiclesperform inlesspredictable powertrain plantsinEurope are alsoIATF 16949certified. plants haveadoptedaQualityManagementSystemthatisISO 9001certified,andall dealers, andultimately, totheendcustomers.Aspartofourqualityapproach, allGroup All of these tools are usedto find and resolve qualityissuesbefore vehiclesare shipped to technicians canassessandmitigatebuildparameterstoevaluateriskmore proactively. and acomplexsetoffixtures thatmimicthebodyshop’s process sothatengineersand laboratories with a clean-room environment. The metrology labs use laser scanners Inside FCA assembly plants, we operate state-of-the-art metrology centers—high-tech supplier-related issues. resourcesour internal by providing oursupplychainaccesstoviewandaddress quality available earlier to team members in all regions. Benefits of the GIM system extend beyond system includestheProduct Developmentphase,makingissueidentificationandtracking to helpexpeditequalityissueresolution across functional groups andregions. TheGIM quality collaboration,theGlobalIssueManagement(GIM)systemprovides arepository close cooperation across regions an essential part of the process. To support global specifications toallmarkets.Thesemarket-baseddifferences addcomplexityandmake on qualitystandards. When thisoccurs,FCAtypicallyappliesthemoststringent At times,differences incustomerexpectationswithinaspecificmarkethaveanimpact solutions more costeffective. potential qualityissuesearlierinthe vehicledevelopmentprocess andmakesimplementing if different testingortimingapproaches are needed.Theprogram helps identifyandavoid design phase,whichisthenevaluatedagainstexistingdataandprocesses todetermine 91 2020 SUSTAINABILITY REPORT Products and Customers Customer Focus through awidevarietyofchannels, oftenbefore anin-personsalesorserviceexperience. interact with the dealer network; research products about our brands and services; and learn personalization andeasyaccesstoinformation.FCAprovides opportunitiesforcustomersto As the needs of our customers around the world continue to evolve, so does the value of one percentage pointtoapproximately fivepercentage pointscompared with2019. sales andserviceadvocacyrecommendation results in2020increased rangingfrom nearly and a net promoter score, respectively. In the U.S. and in the EMEA region's major markets, the recommend thedealertoafriendorfamilymemberbasedontheirsalesserviceexperience customer satisfaction.Thesefigures represent thenetpercentage ofcustomerswhoare likelyto approach usedbyFCAisanadvocacymeasurement andarecommendation indextotrack dealer processes, customercontactcentermanagement,andtrainingprograms. Oneprimary into customer advocacy and satisfaction with the dealer network. Results are integrated into Customer experiencesare monitored onamarketbasisthrough surveysthatprovide insight dealer network,thevastmajorityisprivatelyowned. over time toimprove processes, customerservicestandards and service quality for theGroup’s values, localrequirements, anddifferent customerneeds.Measures havebeen implemented with ournetworktohelpthemupdatesalesandserviceprocesses thataccommodatebrand Our dealernetworkistheprimaryface-to-faceconnectionwithcustomersandFCAhasworked communication channelsandpositiveexperiences. customers andappealtopotentialnewcustomers,wealsoare focusingonproviding convenient are impactinghowweinteract withcustomers.Asweaimto build loyaltyamongexisting FCA understandsthatchangingcustomersentimentandexpectations,alongwithtechnology, CUSTOMER EXPERIENCE The platformallows customerstoselectfeatures fortheirchosenvehicleand CAR@HOME initiative evolvedintoanewplatform calledFCAe-Shop. vehicles, evaluate trade-insandsendfinanceoffers. Taking itastepfurther, the face meetingsenabledcustomers anddealerstoworktogetherconfigure new customers anddealersthrough theuseofvideoconferencing. Thevirtualface-to- European countries,theCAR@HOMEsystemcreated alinkbetweenpotential to virtuallyconnectcustomers ourdealernetwork.Asanexample,insome our customersanddealers,welaunched avarietyofoptionsacross markets To overcome theface-to-face challengesof2020andfocusonthesafety EXPANDING RETAIL OPTIONS experiences from previous visitorsto helpdealersimprove customer experience. dealers inEurope. CustomerFirstoffered easyaccesstofeedback, opinionsand Customer FirstAward forExcellence inNorthAmericabyunveilingthe program at In additiontonewe-commerce solutions,FCAexpanded on thesuccessofits to beextendedotherEuropean countries. The project involvesallFCAbrandsandthesalesnetworkin Italyandisexpected customer iscontactedbyasales consultanttofinalizethepurchase process. a fewsteps.Thesystemsendsthe informationtotherelevant dealershipandthe ultimately order thevehicle andotherservices,includingfinancingoptions,inonly of courses,skillsassessmentsandcertifications. the topic,dealerpersonneldemonstratecomprehensive knowledgebycompletingaseries emission control systems;andmain safety features ofthe Group’s vehicles. Depending on processes andskills;product andvehiclesystemsknowledge,includingelectrification; personnel coversanextensiverangeoftopics,suchascustomer experienced-based vehicle features. Contentincludedintrainingdevelopedforsales,after-sales andtechnical model launches, process improvements, customer expectations and advancements in Training contentvariesbymarketandchangesovertimetoreflect brandpresence, classrooms, tabletapplicationsandin-dealershipmobiletools. training through liveandweb-basedcourses,includingonlinetoolssuchasvirtual to enhancesalesandservicepersonnelknowledgeskills.TheGroup offers targeted FCA's customers.To supporttherole ofthenetwork,FCAdevelopstrainingprograms The dealernetworkplaysapivotalrole indevelopingrelationships andbuildingtrustwith DEALER NETWORKDEVELOPMENT TRAINING OF DEALERNETWORK HOURS MILLION 5.1+ 92 2020 SUSTAINABILITY REPORT Products and Customers Customer Focus • • educational opportunities.Examplesofsuchprograms include: existing networkemployees−italsomeanslookingforward andsupportingadditional Developing the network goes beyond providing training and communication tools for
and familymembershavetakenadvantageofthisopportunity. retention. Since the start ofthe program in 2015, more than 5,600 dealership employees employees, lessentheburden ofpayingforcollegefamiliesandincrease employee The programs enabledealerships toattracttoptalent,improve theskillsetofexisting their families are offered the opportunity to receive a no-cost, no-debt college degree. LOCAL schools,supportingapproximately 7,500activestudents. secondary andruralmarkets.At theendof2020there were 97MoparCAPand in 2015,continuestogrow thenetworkofschoolsinU.S. byenlistingschoolsin metropolitan areas oftheU.S.Inaddition,MoparCAPLOCAL,whichwasestablished CAP hascreated strategic partnershipswithautomotivetechnicalcollegesprimarilyin potential, entry-levelautomotivetechniciansforemploymentatFCA dealerships.Mopar by anetworkofschoolsintheU.S.thatutilizeFCA-specificcurriculum totrainhigh- Mopar Car Degr ELECTRIFICATION ANDTRAINING activities and test drives of electrified vehicles. activities andtestdrivesofelectrifiedvehicles. personnel onlineintroductory courses,classroom training,live and electrifiedtechnologies.Theseprograms offered dealer were involvedintrainingprograms focusedone-Mobility after-sales dealerpersonnelinEMEAandNorthAmerica the dealernetwork.In2020,more than vehicles andimprove thetechnicalskillsandknowledgeof products. FCAoffers trainingtosupportthelaunchof electrified One ofthecentraltrainingtopicsforFCAiselectrificationour ees@Work andDegrees@Work Familyprograms. U.S.dealershipemployeesand eer AutomotiveProgramprogram (CAP). Thisstudyandinternship isoffered 60,000 sales and sales and 60,000 echPro • as well systemsandnew procedures. provided over 48,000hoursofagenttraining onnewproducts, behaviors andprocesses, are essential forahighlevelofcustomersatisfaction. Forthisreason, in2020theGroup speakers of29languages.FCAbelieves thatskilled,knowledgeableandmotivatedagents efficient manner. Theyprovide multilingual supportwithastrong focusonemployingnative the customeruntilaresponse isresolved, isgivenoraconcern ensuringresolution in an FCA CustomerContactCenters managethe entire process, from the first contactwith complaint managementand,insome locations,roadside assistance. 45.5 millioncustomercontactsin2020,offering avarietyofservicesincludinginformation, CCCs worldwide,witharound 1,360agentsandsupervisorswhohandledapproximately primary channelsof communication between customers andthe Company. There are 25 uninterrupted supportforourcustomers.CCCs,togetherwith dealers,are amongthe remote workingoptionsin 2020forCustomerContactCenter(CCC)agentstoensure management ofcustomercontactactivitiesworldwide.DuetoCOVID-19, FCAexpanded dedicated customercontactorganizationsinallregions toensure strong andglobal In additiontowebsites,smartphoneapplicationsanddigitalmedia channels,FCAhas information aboutvehiclemaintenanceandservices,alongwithaccessories andmerchandise. and automotiveblogs.Ownersitesare availablewithinmarketstoprovide ourcustomerswith media teamsmonitordigitalchannels,suchasFacebook,Twitter, Instagram,YouTube, To strengthen connectionswithourcustomersandaddress customercomplaints,FCA'ssocial access toinformationandimproved customerservice. innovative features and solutions to support marketexpectations that provide convenient that allow users to schedule service appointments and receive information. FCA offers within themarkets.Examplesrangefrom onlinechatbotstosmartphone applications ownership experiencethatoffer notonlyproduct informationbutalsospecificsupport FCA provides avarietyof communication channelsforourcustomersthroughout the CUSTOMER SUPPORT
were enrolled inTechPro through andapprenticeships. internships In2020,approximately 1,200studentsinItaly FCA dealernetwork.Secondandthird-year studentsgainimportanthands-onexperience centers are designedandequippedbyFCAreflect thesameservicestandards asthe training focusedonelectrificationtechnologyanddrivingassistancesystems.The instructors whohavereceived professional trainingbyFCAemployees.In2020,the who receive theoretical andpracticalknowledgefrom SalesianVocational Training Center the worldprogram isprovided insevenlanguages and60locations. T 2 program. project Thisinternational isathree-year program forselectedstudents 2 withabout31%ofthemwithintheFCAdealernetwork.Around 93 2020 SUSTAINABILITY REPORT Products and Customers Customer Focus Regional CustomerCare Support others. To promote theethicalpracticeofcommunication inadvertisingwithin theGroup, advertising; the dealer and service network; and Customer Contact Centers, among of methodsincludingownerand maintenancemanuals;informationlabelsandproduct Thisinformationisprovideddisposal ofthevehicles;andwarnings. through avariety of ourproducts andservices;potentialrisksorhazards; safetyandusageinstructions; FCA regularly engageswithcustomerstoprovide informationregarding theproper use PERSONNEL 427 PERSONNEL 761 EMEA NORTH AMERICA SPOKEN LANGUAGES 25 SPOKEN LANGUAGES 3
Johannesburg, SouthAfrica Dubai, U.A.Emirates Cairo, Egypt Istanbul, Turkey Arese, Italy Kragujevac, Serbia Prague, CzechRepublic Budapest, Hungary/ Moscow, Russia San Juan,PuertoRico Mexico City, Mexico Fort Myers,FloridaIrving,Texas Farmington, Michigan Center Line,Michigan Manila, Philippines Windsor, Ontario Chatham, Ontario [ SDGs 9] product information. than 130countries worldwide,andissubjecttonumerous lawsandregulations governing ourglobalfocus,theGroup sellsourproductsWith andservicestoconsumersinmore sustainable communication. truth, accuracy, andpropriety incommunicationandprovide fairness thecriteriafor the FCAAdvertising,Marketing& CommunicationPrinciplesincludestandards ofhonesty, PERSONNEL 24 PERSONNEL 148 APAC LATAM SPOKEN LANGUAGES 5 SPOKEN LANGUAGES 2
Brisbane, Australia Pune, India Tokyo, Japan Seoul, SouthKorea Shanghai, China Cordoba, Argentina Belo Horizonte,Brazil Valencia, Venezuela 94 2020 SUSTAINABILITY REPORT Products and Customers Customer Focus • • • mobility serviceswere expandedwithadditionalfeatures andnewprograms: their needs among the models offered in their subscription package. During 2020, the pick upanddrop off vehiclesindifferent citiesandchoosethemostsuitablevehiclefor and LeasysCarCloud,thefirstcarsubscriptionserviceinItaly. CarCloudallowsclientsto Miles, apay-peruseservicethatallowscustomerstopayonlyforthemileagetheydrive; on thesubscriptioneconomytrend. SomeexistingmobilityservicesincludeLeasys and Crédit Agricole–expanded itsofferings tomeetnewcustomerrequirements based the mobilityservicecompanyofFCABank–equallyheldjointventure betweenFCA products andservices,newmobilitysolutionsthatfittheirchangingneeds.Leasys, FCA focuses our efforts on the entire customer experience through both traditional CUSTOMER MOBILITY
to MaseratiLevante,offering 60daysofflexiblemobilityperyear. Customers canaccessthevirtualgarageandreserve vehiclesrangingfrom aNew500 this monthlysubscriptionserviceoffers alargeselectionofFCA'snameplates. is expectedtobeintroduced inotherItalianandEuropean cities. sharing serviceinTurin (Italy)andinitiallytested by theGroup’s employees.Theservice needs ofourcustomers,basedonthepackagetheyselect. vans –FiorinoandDoblò.Theseexpandedofferings supportbothbusinessandleisure Hybrid, MaseratiGhibliandLevante,theNewFiat500electricProfessional such astheall-newJeepCompass4xePlug-inHybrid,Renegade My Le CarCloud: intr asys GO!: afleet of New Fiat 500 electric vehicles was introduced as a free-floating car Dream Garage: available exclusively to buyers of New Fiat 500 electricvehicles, oduced additionalmodelsaspartoftheLeasyssubscriptionofferings,
features availableonourvehicles tobenefitspecialmobilityneeds. rehabilitation specialists present the latest in advanced safety and conveniencetechnology assistance foradaptiveequipment,theprogram hasprovided sessions where learning program has provided more than 44,000 customer assistance grants. Along with financial more than600salesand serviceoutletsacross theU.S.Since2010,DriveAbility vehicles. DriveAbilitysupplies vehicles to anetworkof 20 vehiclemodifiers,whooperate adaptive driverorpassengerequipmentonmostChrysler, Jeep,Dodge, Ram or Fiat vehicle. Theprogram provides financialassistanceupto€893oftheexpenseforinstalling in 1987tohelpcustomerswithpermanentdisabilitiesenter, exitand/oroperateanew The U.S.-basedprogram, DriveAbility, isafinancialassistanceprogram thatwaslaunched drive screening assessments, andinformationontestdrives. offered includeassistancewitharangeofadministrative, legalandtechnicalissues,fitness-to- rehabilitation centers,healthauthoritiesandthedepartmentofmotorvehicles.Theservices Mobility CentersinItaly. TheseCentersare managedincollaborationwithlocalassociations, people benefitedduringtheyearfrom theservicesoffered through theAutonomyprogram’s 17 sale ofthesevehiclesinItalytotaledmore than€70millionin2020.Inaddition,about650 sold through theAutonomyprogram tocustomers inEurope andBrazil.Revenuesfrom the Fiat Professional brandvehicles.In2020,there were more than35,000customizedvehicles with disabilitiestodrivecurrent vehiclessuchasFiat,Lancia,AlfaRomeo,Abarth,Jeepand Since 1995,theAutonomyprogram hasoffered solutionsthatmakeitpossibleforpeople financial assistancetoward thepurchase ofappropriate customizableadaptiveequipment. DriveAbility programs are designedtohelpcustomers withpermanentdisabilitiesbyproviding accessible mobilitycanoffer anincreased levelofindependence. AtFCA,theAutonomyand FCA alsosupportsindividualswithspecialmobilityneeds.Foranindividualadisability, 95 2020 SUSTAINABILITY REPORT Production and Responsible Sourcing
Production 97 Responsible Sourcing 104
Energy Consumption 99 Our Responsible Sourcing Journey 105
Manufacturing CO2 Emissions 100 Human Rights and Business Practices 107 Water Management 101 Supplier Assessment Process 110 Waste Management 102 Engaging and Training Suppliers 112 Logistics Operations 103 Supporting Supplier Diversity and Inclusion 114 Production and Responsible Sourcing Production at our manufacturing operations. performance environmental in improvements consistent we of excellence, achieve pursuit the in of employees participation direct the innovation, and to sustainable acommitment model, operating digital increasingly and smart of alean, adoption the Through costs. production reducing by success Company's financial to the to contribute and footprint environmental our to fronts: reduce primary two on achieve objectives FCA's to endeavors stewardship environmental Production UNITED NATIONS SUSTAINABLE DEVELOPMENTGOALS(SDGS) KEY FCAFIGURESSUPPORTING VS 2010 GENERATION TOTAL WASTE -61% VS 2010 CONSUMPTION TOTAL WATER -49%
EMISSIONS VS 2010 TOTAL CO -26% 2
97 2020 SUSTAINABILITY REPORT Production and Responsible Sourcing Production and their biodiversity in areas surrounding our sites. our surrounding areas in biodiversity their and consumption, habitats natural energy to water preserve withdrawal and efforts waste also entails Our environmental generation. responsibility and zero inventories. WCM aimtoultimately reach, forexample, zero accidents,zero waste,zero breakdowns well-being, and safety of the individuals who work there. The projects developed within This WCMenvironmental pillarseekstoeliminatewasteand increase theproductivity, to eachpillar’s topic,including an environmental protection andcompliancepillar. facilities, andhas10technicalpillars thatfocusonaspecificsetof requirements applicable WCM isanapproach thatappliestoallareas ofFCA'smanufacturingprocesses and about 15yearsagoandhasbeen implementedatthevastmajorityofFCAplantsworldwide. As akeycontributortoourenvironmental stewardship, theWCMprogram wasadopted energy impactofmanufacturingprocesses. support our efforts to achieve a steady and consistent reduction in the environmental and Class Manufacturing(WCM)methodologiesandtools,these managementsystems The Group's EMSandEnMS are certifiedbyaccredited third parties. Together with World consumption. were ISO50001certified, representing approximately 99%oftheGroup’s totalenergy related totheoptimization of energyuse.Attheend2020,majorityGroup plants FCA's EnergyManagementSystem(EnMS)focusesonmethodologies andprocesses audited bytheEHSorganization. already adoptedanEMSthat isalignedwiththeISO14001standard andare regularly of industrialrevenues, were ISO14001certified.The plantsstillawaitingcertificationhave manufacturing activities.Attheendof2020,95Group plants,representing nearly100% other things,are designedtoprevent orreduce theenvironmental impactoftheGroup’s standard.a systemofmethodologiesandprocessesof FCA'sEMSconsists which,among Environmental ManagementSystem(EMS)worldwide,alignedwiththeISO14001 Health and Safety (EHS) and Energy organizations. TheGroup has implemented an Environmental protection andcomplianceatFCAis managed through ourEnvironment, the production atFCA’s plantsacross thevariousregions. mainly duetotheeffects oftheCOVID-19pandemicwhichcausedtemporaryhalt manufacturing performanceandachievementofsometargetswere negativelyimpacted 2020 wasayearwithuniquechallengesacross theglobe.FCA’s environmental CO to reduce by aiming issues change climate and environmental to address commitment our detail Guidelines FCA's Environmental Production
throughout 2020. plants, withapproximately 25,500approved and appliedacross the Group’s plants average of14proposals peremployee.Bestpracticeprojects are shared amongall FCA plantemployeessubmittedmore than1.5millionsuggestions,representing an improvement suggestions,eachofwhichisassessedforpotentialapplication.In2020, apply WCM methods. Employees worldwide are also encouraged to make process our employees,whoare involvedintargetedtrainingprograms inorder toproperly The success of WCM is highly dependent on the participation and contributions of of people,motivationoperatorsandcommitmenttheorganization. 10 managerialpillars,suchasmanagementcommitment,clarityofobjectives,allocation a facility. Duringanaudit,pointsare awarded foreachofthe10technicalpillars,aswell commitment oftheworkforce tomakingsignificantchangesthatcansecure thefuture of 34 silverandsixgold.TheachievementofWCMaward levelsrecognizes thelong-term of ourplants:28haveachievedaWCMbronze levelofimplementationandperformance, At year-end 2020,93FCAplantshaveimplementedWCM,whichcoversmore than99% APPLY WCM FCAOF PLANTS ~100% 2 emissions, 98 2020 SUSTAINABILITY REPORT Production and Responsible Sourcing Production recorded adecrease of8%compared with2010(from 7.3to6.8GJ). normalized per vehicle produced increased compared with last year (at 6.8 GJ), but still At mass-marketvehicleassemblyandstampingplants,the energyconsumption in absoluteterms. In 2020,energyconsumptionwaslowerthanboththeprevious yearandthebaseline Over time,thesesolutionshavegeneratedsignificantsavings inenergy-related costs. in ourenergyconsumption,withaparticularfocusondecreasing theuseoffossilfuels. The Group seekssolutions inourmanufacturingprocesses thatenablefurtherreductions ENERGY CONSUMPTION a culture ofsustainability. FCA strivestominimizetheenvironmental footprintalongourvaluechainwhilepromoting WCM approach andprinciples tovariousFCAbusinessfunctionsandpartners, manufacturing engineering,designactivities,dealersandsuppliers.Byexpandingthe For example,FCA istransferring WCMprinciplesandbest practices toour logistics, business processes inorder thatthoseoperationsbenefitfrom theWCM system. In addition,we are expanding the application of WCM tools and methods to non-production of more than€44million. About 5,500environmental projects were startedin2020withanestimatedcostsavings STARTED IN2020 PROJECTS ENVIRONMENTAL ~5,500 View data
of CO TJ andapproximately €37million,inadditiontoavoidingapproximately 100,000tons among employees.Theseinitiativesresulted inenergysavingsofapproximately 1,200 process redesign andoptimizationofplantcapacity; andtoincrease energyawareness efficiency ofsystemsandequipment;toimplementorganizationalmeasures suchas During theyear, theGroup rolled outmore than4,200projects toimprove theenergy Direct energy consumption Mass-market vehicle assembly and stamping plants worldwide (GJ) Direct andIndirect EnergyConsumptionperVehicle Produced - Indirect energy consumption Total energy consumption FCA worldwide (TJ) Direct andIndirect EnergyConsumption 2 emissions. (base year) 2010 7.3 2018 6.1 2020 35,575 16,472 19,103
2019 6.1 2019 22,005 22,005 41,900 19,895 2020 6.8 2018 45,345
21,213 24,132 (-30% vs 2010) vs (-30% [ [ View data SDGs 12] SDGs 12] 2020 target 2010 44,836 19,706 25,131 99 2020 SUSTAINABILITY REPORT Production and Responsible Sourcing Production Direct andIndirect CO 2010 to0.53tonspervehicleproduced in2020. plants decreased 13.5% in the last 10 years, falling from 0.61 tons per vehicle produced in In 2020,tosupportourcommitment toreduce CO CO of (tons worldwide plants stamping and assembly vehicle Mass-market Emissions of CO CO of tons of (thousands worldwide FCA Direct andIndirect CO In 2020, total CO MANUFACTURING CO Indirect emissions Direct emissions - consumption in2020. sources used inGroup production processes represented around 16% of totalelectricity power is used forelectricityand/orheatingat some Group plants. Energy from renewable located, electricity originated almost entirely from renewable sources. In addition, solar renewable sources. InBrazil,where themajority ofourSouthAmericanplantsare the 2010baselinelevelonbothatotalandpervehicleproduced basis. decreased by16%compared with2019to2.9milliontons.Thisachievementwasbelow Total CO Total 2 (base year) emissions 2010 0.61 2 pervehicleproduced at mass-marketvehicleassemblyandstamping 2 emissions from manufacturing processes at our plants worldwide 2 2 EmissionsperVehicle Produced Emissions 2018 0.46 2 ) 2020
2,913 2,036 878 2 EMISSIONS 2019 0.45 2019 2 2,359 1,058 3,417 emissions,FCAusedenergy from 2020 0.53 2 )
2018 3,738 2,609 1,129 [ SDGs 12,13] (-32% vs 2010) vs (-32% View data [ SDGs 12] 2020 target 2010 3,958 2,882 1,075 FCA LATAM CARBONNEUTRALPROGRAM the residual carbonemissions. are Carbon Neutral,astheybuyrenewable energyandcompensate in bothBrazilandChile.Asaresult, 75%ofFCA'splants inLATAM Contagem becameCarbonNeutral, alongwithsomeregional offices In 2020,twoothercomponent production plantsinGoiana and Guararapes; andpartdistribution centersinBetimandHortolândia. Largo andBetimengineplants; componentplantinJaboatãodos also obtainedCarbonNeutralcertifications inBrazil:Campo suppliers inthecomplex’s SupplierPark.Inaddition,thefollowing first carbonneutralmulti-plantindustrialcomplex,whichincludes 16 In 2020,theachievementinGoianawasextendedbybecoming the raising awareness ofsuppliers. planting seedlings,recovering environmentally degradedareas and offset withcarboncredits. Inaddition,otheractionsincluded renewable electricityandcleaner fuelsuse,aswelltheemissions Neutral certificate.Theplant’s neutralimpactwasthe result of100% plant tohaveneutralizeditsemissionsandobtaintheCarbon assembly plantinGoiana(Brazil)wasLatinAmerica’s firstauto locations andpartsdistributioncentersinLATAM. In2017,the verified emissioninventorywasdevelopedforallmanufacturing daily activitiesofregional plants.Forthisreason, athird-party reduce andoffset theannualGHGemissionsproduced from the The FCALATAM CarbonNeutralProgram aimstomeasure, manage, 100 2020 SUSTAINABILITY REPORT Production and Responsible Sourcing Production recycling waterindexresulted in1.8billionm quantity ofwaterwithdrawnledtoanoverallsavingsabout€2.3millionin2020.A99% No significant spillswere reported. wastewatertreatment orexternal 2020, allwere system. servicedbyeitheraninternal FCA’s overallimpacton water. Of113total plants(includingfourjointventures) activein measures and analyzes the quality of wastewater to provide a comprehensive view of wastewater withregulated constituentsatlevelswellbelow legallimits,andregularly In addition to minimum standards of legal requirements, FCA aims to discharge its for 2020. stamping plantswasapproximately 36%lowerthan2010, almost achievingthetargetset In 2020, water withdrawal per vehicle produced at mass-market vehicle assembly and worldwide by 49%compared with 2010 (from 30.6 to15.8 million m water inindustrialprocesses, in2020FCAreduced total waterwithdrawalatourplants As a result of improvements in water cycle management and measures taken to reuse 34 plantslocatedinareas where waterisconsidered alimitedresource. during 2019tobetteralignGRIStandards. Thescenarioanalysesconductedidentified in 2016toevaluateouruseofwaterstressed areas andimproved theassessment quantity consumedineachregion. TheGroup adoptedadifferent riskassessmentmethod of waterresources around theworld,correlating thequantityofwateravailablewith decrease thelevelofpollutantsindischargedwater. We periodicallymaptheavailability water usebyincreasing therecycling andreuse ofwater, and weadopttechnologiesto FCA hasfocusedparticularlyontheadoptionoftechnologiesandprocedures toreduce water bodies,whichoccursafterpassingthrough awastewatertreatment process. cooling, cleaning and sanitation; and the discharge in public sewer systems or surface municipal watersuppliersornaturalsources; through useandreuse ofrecycled waterfor FCA aimstoresponsibly manageitsentire watercycle, startingfrom waterwithdrawal from WATER MANAGEMENT WATER SAVED M BILLION 1.8 3 ofwatersaved. 3 3 ). Thereduction in the
Water consumption Water discharge of which covered by recycling by covered which of requirement Total water - withdrawal Water Recycling index withdrawal water which of FCA worldwide (millions of m of (millions worldwide FCA Water WithdrawalandDischarge Mass-market vehicle assembly and stamping plants worldwide (m Water WithdrawalperVehicle Produced (1) m of (millions worldwide FCA Water RecyclingIndex - recirculated in the plants. The recycling index is calculated on the basis of total water requirement, which is the sum of water withdrawn and water water and withdrawn water of sum the is which requirement, water total of basis the on calculated is index recycling The (base year) 2010 5.0 (1)
3 3 ) )
2018 3.1 2020
2020 10.5 15.8 5.2 1,766.0 1,750.3 99%
15.8 2019 3.0 2019 3 ) 18.8 13.3 5.5 2019 2020 3.2 2,201.3 2,220.1 99% 18.8 2018 21.7 17.2 4.5 (-40% vs 2010) vs (-40% [ [ [ View data 2018 SDGs 12] SDGs 12] SDGs 12] 2020 target 2010 2,340.4 2,318.7 99% 10.2 30.6 20.4 21.7 101 2020 SUSTAINABILITY REPORT Production and Responsible Sourcing Production Total waste generated Waste disposed compared with2010(from 8.2to3.6kg/vehicleproduced). to 87.7kg/vehicleproduced). Hazardous wastepervehicleproduced decreased 56% to 87.7kg/vehicleproduced), butdecreased by60%compared with2010(from 217.2 per vehicleproduced in2020increased by12%compared withtheprioryear(from 78.5 In mass-marketvehicleassembly andstampingplants,thequantityofwastegenerated Waste recovered - FCA worldwide (tons) Waste GenerationandManagement compared with2010baselinelevels. suitable forreuse orrecovery. In2020,totalhazardous waste decreased by63% generation of hazardous waste, since by its very nature such waste is typically less regulations ineachjurisdiction -placesparticularimportanceonreducing the In addition towaste management generally, theGroup -inaccordance with applicable products orenergy. generated bysellingrecoverable wastetocompaniesthatuseitgeneratenew with 2019,savingabout€3.5million.Inaddition,revenues ofabout€26millionwere 21% reduction oftotalwastegeneratedatourplantsworldwidein2020compared As aresult ofcontinuedimprovements inwastemanagement,FCAachievedan impact theenvironment asminimallypossible. nor recovery ispossible,wedisposeofwasteaccording toapplicablelawandaiming minimal generationofwaste.We strivetorecycle what cannotbereused. Ifneitherreuse impacts, FCA has implemented procedures to pursueoptimal recovery and reuse with To reduce theconsumptionofraw materials,andtoreduce spillsandrelated environmental WASTE MANAGEMENT 2020 635,875 493,630 142,245
2019 806,396 594,880 211,517 2018 248,434 626,736 875,170 [ SDGs 12] 2010 1,618,000 1,079,542 538,457 Waste GeneratedperVehicle Produced Mass-market vehicle assembly and stamping plants worldwide (kg) Mass-market vehicle assembly and stamping plants worldwide (kg) Hazardous Waste GeneratedperVehicle Produced (base year) (base year) 217.2 2010 2010 8.2 2018 2018 83.3 3.1
2019 2019 78.5 3.4
2020 2020 87.7 3.6 (-54% vs 2010) vs (-54% (-14% 2010) vs [ [ View data SDGs 12] SDGs 12] 2020 target 2020 target 102 2020 SUSTAINABILITY REPORT Production and Responsible Sourcing Production footprint havinganeconomic,environmental, andsocialimpactontrafficcongestion. Optimizing logisticsprocesses represent asignificantopportunityto reduce ourenvironmental and healthsafeguard. solutions andcoordinated efforts towards climatechange,naturalresources conservation Addressing theenvironmental aspectsassociatedwithlogisticsentailsfindingsustainable LOGISTICS OPERATIONS A NEWSUSTAINABLE FACILITY RE-BORN consumption, saving2,600tonsofCO was renovated whileminimizingnewconstructionandland To maximizeenvironmental sustainability, theexistingbuilding reducing consumptionofnatural resources andenergy. due toreduced operationsleadtimeandhumanerrors, inadditionto excellence andimproved servicelevelsandcustomersatisfaction Class Logistics(WCL)program. WCLisanapproach that seeks destinations andisengineered tomeetthegoldlevelofWorld The newPDCdistributesaccessoriesandspare partstoover5,000 Logistics CenterinRivalta(Italy). opened aleadingedgePartsDistributionCenter(PDC)and Focusing onaneco-friendlyandsustainableworkplace,FCA charging stations availableforemployees. The facilityalsosupports aneco-friendlyworkplace byhaving employees tousebikes,busesand electriccarsastransportation. reduced inthecommunitysurrounding thefacilitybyencouraging In additiontothesite'ssustainable approach, emissionsare equipment tomaximizecomfortand minimizeconsumption. installation ofaBuildingEnergySystem thatmanagestheenergy The siteisanexampleofSmartDigital Factoryduetothe photovoltaic panelsinstalledontheroof andsideofthebuilding. renewable energy, with1MWofenergysourced from about3,000 Neutral CertificationLEEDGoldcertification.Thesiteuses100% environmental sustainability. Thesiteistargetingin2021Carbon transformed basedontheprinciplesofenergyefficiencyand compared tobuildingona greenfield site.Theoriginalplantwas 2 emissions when emissionswhen
and transparently communicate ourrelated environmental andsocialimpactstostakeholders. We monitorourlogisticsperformancetoidentifyareas ofimprovement andactionsneeded, • • The Company'slogisticsapproach focuseson: of freight andvehiclemovement. optimize transportfleetcharacteristicsandapplymethodologiesto reduce theimpact goods. TheCompanyhasadopted Logistics Guidelines that provide direction onhowto operators,dependingontheoriginanddestination ofthe andexternal of internal transports amongtheseparties.Thelogisticsoperationsare handledbyavariety supplier network,Group plants,PartsDistributionCenters,anddealersbymanaging FCA Global Purchasing and Supply Chain organization serves as a link between the material flowsandpackaging,applyingjust-in-timemethodology. together withoursuppliersandlogisticspartnerstoimprove processes byre-engineering and deliveringonlytherightproduct, totherightplace,attime.AtFCA,wework Key elementsofsuccessful logistics operations include reducing stock and material handling,
Total emissions Mopar FCA worldwide (thousands of tons of CO of tons of (thousands worldwide FCA Downstream (4) (3) (2) Upstream - Indirect CO DEFRA-U.K. Department for Environment, Food and Rural Affairs. Upstream refers to material and parts distribution to plants. distribution parts and to material refers Upstream Affairs. Rural and Food Transport, Environment, of for Ministry Department Brazilian DEFRA-U.K. Energy, of or EN16258, Department U.S. standards standard which: among international from taken guidelines, are agency factors Emission governmental process. calculation the in used are distances, to routes, capacities related data transport and activity Real frequencies 3Emissions. Scope Calculating for Guidance Technical and Standard Reporting and Related to logistics processes. Calculations were based on the criteria illustrated in the Greenhouse Gas Protocol’s Corporate Value Chain (Scope 3) Accounting Accounting 3) (Scope Chain Value Corporate Protocol’s Gas Greenhouse the in illustrated criteria the on based were Calculations Refers to finished vehicle distribution to markets. to distribution vehicle to finished Refers
use ofpackagingandprotective materialstosaveresources. on theenvironment adoption oflow-emissiontransportvehiclestoimprove performanceandminimizeimpacts the implementationofemergingsolutionsandtechnologiestopr the optimizationoflogisticsflowsr (3) 2 Emissionsfrom Logistics Processes (4) 2 ) egarding network, mode and capacity in addition to the egarding network,modeandcapacityinadditiontothe 2020 1,296 521 716 59 (2)
2019 otect parts and decrease the otect partsanddecrease the 1,491 791 641 59 [ SDGs 12,13] View data 2018 1,588 853 678 57 103 2020 SUSTAINABILITY REPORT Production and Responsible Sourcing Responsible Sourcing risks related to the supply chain. to supply the related risks mitigating potential emerging environmental and social Group’s the to on based commitment are processes diligence due the and FCA of Conduct The Code face. way the to global chain supply may challenges address best to the provide willcontinue respect and Collaboration ever before. than more suppliers with collaborating are quickly, more automakers adopted and are vehicleThe cycle design is technologies more stringent, autonomous,shared. and electrified, connected, more becoming today are vehicles as change driving automotive the sector.including Technology is industries, major all for challenges particular presents ofManaging the multi-tier complexity chains supply Sourcing Responsible UNITED NATIONS SUSTAINABLE DEVELOPMENTGOALS(SDGS) KEY FCAFIGURESSUPPORTING WORLDWIDE SUPPLIERS ~2,000 IN TOTAL PURCHASES BILLION ~€60
QUESTIONNAIRE ASSESSMENT SUSTAINABILITY THROUGH THESUPPLIER ENGAGED INASSESSMENT VALUE PURCHASED OF 48% 104 2020 SUSTAINABILITY REPORT Production and Responsible Sourcing Responsible Sourcing SELF-ASSESSMENT SUSTAINABILITY SUPPLIER REGIONAL SUPPLIERS GUIDELINES FOR SUSTAINABILITY impacts. Localsuppliersare thosewithmanufacturingoperationsthatsupplyanFCA developed andemergingeconomies,whileminimizingtransport-related environmental and employmentopportunitiesinthecommunitieswhere thebusinessislocated,inboth suppliers near major locations of operation. This generates direct and indirect income FCA’s operations impact local economies and, whenever possible, we utilize local the valueofGroup procurement orders asapercentage ofthesupplier’s annualturnover. production andspare partscapacity;technicalandcommercially-viable and alternatives; through aformalprocess based onthefollowingcriteria:allocatedspending amount; 80% ofdirect material purchases byvalue.TheGroup classifies suppliers asbeingstrategic Our supplybaseis concentrated, with 286 strategic suppliers accounting forapproximately everything from basicmaterialstostate-of-the-artcomponentry. operations with few employees up to very large companies, which supply us with We haveaglobalnetworkofapproximately 2,000suppliers, ranginginsizefrom small services neededtorunouroperations. that makeupourvehicles,aswellindirect suppliers,whoprovide thegoodsand Our suppliersincludebothdirect materialsuppliersthatproduce thepartsandcomponents OUR RESPONSIBLESOURCINGJOURNEY 2009 DEVELOPING ASUSTAINABLE SUPPLY CHAIN 2010 COLLABORATION AIAG 2011 CORRUPTION AND ANTI- HUMAN RIGHTS CONDUCT FOR CODE OF SELF-ASSESSMENT SUPPLIER SUSTAINABILITY GLOBAL 2012 2013 CHAIN CDP SUPPLY while enhancingtransparency regarding rawmaterialoriginandhumanrights. environmental andsocialprinciplesbyfocusingonoursupplybasesustainabilitydevelopment Our responsible sourcingaimstoensure journey adherence tocommon,globally-embraced, and long-termcore competenciesthathavedrivensustainablegrowth overtime. to unexpectedeventsandsupplydisruption,whilebuildingstronger supplierrelationships and sustainabledevelopmentpractices.Thesepracticesfocusedonlimitingtheexposure go beyondthepurely commercial sphere inorder toworktogetherdevelopresponsible based onamutualpursuitofexcellence.Ourcloserelationships alsomadeitpossibleto In theresponsible sourcing journey, wehavestrivedtocreate relationships withsuppliers considerationsintoglobal purchasinggovernance decisions. non-automotive counterpartsandorganizationstointegratekeyenvironmental, social,and integration ofprocesses worldwide.Thisdepartmentalsoworkswithautomotivepeers, traditionally playsacriticalrole insettingglobalpurchasing strategiesandoverseeingthe Company. FCA Purchasing, the functional area responsible for supplier management, understanding, readiness to innovateandrespect forsustainabilityiscriticalthe The selectionofsupplierswithproven capabilitiesinqualitymanagement,market our spendingatplantsinBrazilhasoriginatedfrom in-countrysuppliers. plant locatedinthesamecountry. Forexample, inthelastthree yearsmore than90%of DUE DILIGENCE 2016 SCORECARD SUPPLIER GLOBAL 2017 NETWORK BLOCKCHAIN SOURCING RESPONSIBLE 2019 NQC PLATFORM SUSTAINABILITY DRIVE 2020 View data 105 2020 SUSTAINABILITY REPORT Production and Responsible Sourcing Responsible Sourcing additional contracts andcontinuedgrowth withFCA. questionnaires and localaudits were considered inthefinal decision for theaward of of suppliers. The supplier sustainability performance assessed through self-assessment Regional environmental andsocialaspectswere integratedintotheglobalmanagement 2012 the previous requirements foracertifiedEnvironmental ManagementSystem. of Ethics,aswellacertifiedHealthManagementSystem.This change wasinadditionto sustainability criteria.ChangesincludedthatsuppliersadoptaCode ofConductoraCode Improvements were madeintheevaluationofpotentialsuppliersbyincorporatingnew 2011 affected areas. originating from theDemocratic RepublicofCongo(DRC)orothergeographicalconflict- the developmentoftoolsandprocedures fortheidentificationandmappingofminerals These coordinated efforts helpedtopromote responsible practicesandcontributedto (AIAG) toevaluatethepotentialimpactofDodd-FrankAct along thesupplychain. collaborating with other automakers, suppliers and theAutomotive Industry Action Group The commitmenttoaddress ethicalandsocialsourcing riskswasexpandedby 2010 safety practices;ethicsandanti-corruption;trainingofemployees. year andverifysupplieractivitiesinrelation to:humanrights;environmental, healthand The aimwastocoveratleast60%oftheGroup's annualpurchased valueduringeach was introduced usingsustainabilityself-assessmentquestionnaires andon-siteaudits. including terminationofthebusinessrelationship. Athree-year monitoringprocess FCA. Additionalactionswere adoptedbyFCAincaseofnon-compliance,uptoand Failing tomeetthesestandards entailedacorrective actionplanjointlydevelopedwith including theFCACodeofConductandSustainabilityGuidelinesforSuppliers. requiring newpurchase orders toalignwiththeprinciplessetforthbyFCA’s policies, developing anongoingbusinessrelationship. Clauseswere introduced tonewagreements and environmental principles has remained a condition to becoming an FCA supplier and standards thatcanbefoundonourcorporatewebsite.Thiscommitmenttosocial,ethical requiring supplierstocommitoperatingresponsibly according toFCA’s ethical Sustainability GuidelinesforSupplierswere developedtogetherwithindustryassociations, 2009
climate, particularlyregarding greenhouse gasemissions. Chain initiative.Thisinitiativepromoted awareness among suppliersoftheirimpactonthe Suppliers' environmental responsibility expandedwithparticipationintheCDPSupply 2013 sustainability development We also adopted the NQC platform which provides additional resources for supplier Sustainability, anautomotiveassociationfocusedonresponsible sourcing collaboration. FCA extendeditscommitmenttoenhancesuppliersustainability byjoiningDrive 2020 level oftheextendedsupplychain. Template Thisisthecriticalfirststeptohavetransparency (CMRT). downtothesmelter achieved nearly 100% response rate from our suppliers for the Conflict Minerals Reporting sustainable, responsible sourcing andproduction practicesfrom minetomarket.We also Network (RSBN), an industry collaboration using blockchain technology to support to enhanceoursustainabilitystrategy. FCAjoined theResponsibleSourcing Blockchain We launchedtheResponsibleSourcing project togatherinputfrom diverseviewpoints 2019 conversations. strategic indicatoravailableonallregional scorecard viewsandusedforsuppliersourcing supplier performance.Everyyear, suppliers’sustainabilityperformanceiscaptured asa A Global Scorecard with standardized regional metrics was developed to evaluate 2017 subsidiaries. SEC obligationsasaresult oftheconvergenceactivityregional FCAdataincludingthe under theSECConflictMineralsrule.FCAfileditsfirst reportgloballyin2016tofollow Our commitment to minerals source due diligence was reinforced to fulfill obligations 2016 our duediligenceactivities. to performaCobaltsurveygain greater transparency inthesupplychainandsupport (see Assessing SupplierSustainabilitysection). We alsostarted 106 2020 SUSTAINABILITY REPORT Production and Responsible Sourcing Responsible Sourcing collaborating oncommonissues. organizations todetermineopportunitiesfordiscussions withnon-governmental due diligencewithaspecificfocusonchildandforced labor, during2020FCA began In lightofthegrowing momentumamongstakeholderstoundertakehumanrights supply chain. Code ofConduct.Thisresource ismeanttobeshared across alllevelsofthemulti-tiered recorded trainingmodulewhichwascreated toassistsupplierswithdeveloping aSupplier Supplier CodeofConduct.Thismessageisshared invarioustrainingmaterials,includinga bargaining. To reinforce theseexpectations,FCAisastrong supporterofcreating a compulsory labor, aswelltorecognize therighttofreedom ofassociationandcollective Finally, FCA expects suppliers to take appropriate steps to prevent child and forced or through keyindicators;andtoextendtheirhealthsafetypoliciescontractors. systematically assessoccupationalhealthandsafetyrisks;tomeasure performance working conditions.Suppliersare alsoexpectedtoestablishamanagementsystem systems withrespect tobasichumanrights,healthandsafetyintheworkplacefair initiatives. Self-assessment questionnaires are used to monitor the suppliers’ management FCA’s approach over the years has been built on assessments and competency-building the communitieswhere therawmaterialsare sourced. more efficientlyandpreemptively mitigateunethical practices thatthreaten thefuture for rights abusesorarmedconflict. Traceability and mappingofrawmaterialsare essentialto global manufacturingsupplychain,withspecialfocusoncountriesexposedtohuman FCA is conscious of, and continues to be committed to, the safety and integrity of our suppliers, contractorsandotherbusinesspartnerstoadhere tothesestandards. sphere of influence. In these Guidelines, we express the expectation we have of our contained intheFCAHumanRightsGuidelines,whichGroup promotes withinour future fortheCompanyand thecommunitiesinwhichwedobusiness.Thisbeliefis The respect andsupportoffundamentalhumanrightsisessentialforbuildingabetter HUMAN RIGHTSANDBUSINESSPRACTICES of newtoolsandresources thatcanbetterevaluatematerials thatrequire riskmitigation. stakeholders and launched the Responsible Sourcing project to facilitate the development its importanceinoursourcing process. Insupportofthis,FCAinteractswithmany of any raw material may be several tiers removed in the supply chain, we recognize The responsible procurement ofrawmaterialsforourvehiclesisvital.Althoughthesource RAW MATERIALS SOURCING • • • • trade andprocessing stages.Suchengagementsinclude: through ethicalandconscientiousprocurement practicesduringthemineralextraction, the automotiveindustry, FCAaddresses notonlytheneeds,butopportunitiesthatexist Through engagementwithseveralmulti-stakeholderorganizations,bothwithinandoutside for incidentsofchild,forced orcompulsorylaborinoursub-tiersupplychain. movement ofConflictMineralstofinancetheiroperations.Thismayalso represent arisk “covered countries.”Insomecases,illegalrebel groups control minesandthetrade the DemocraticRepublicofCongo(DRC)orsurrounding countries,oftenreferred toas gold. Thesemetalsare commonlyreferred toasConflictMineralsandmayoriginatefrom The vehiclesweproduce containvariousmetals,includingtantalum,tin,tungstenand CONFLICT MINERALS
resources forsuppliersustainability developmentandgathersuppliersustainabilitydata. resources. Inaddition, FCAusedanewserviceprovider, NQCtoprovide additional greater engagementwithotherOEMs,aswellaccesstoadditionaltoolsand FCA becameamemberofDriveSustainabilityin2020.Thisnew associationpr Initiative, supportscross-industry discussionanddevelopmentofcommontools. members oftheResponsibleBusinessAlliance(RBA)and Global e-Sustainability Our membershipwiththeResponsibleMineralsInitiative(RMI),which wasfoundedby mica andConflictMineralsactivities relationships. the ResponsibleMineralsworkgr In theAIAGCorporateResponsibilitySteeringCommittee,FCAwas electedco-chairof whether theprocurement ofthosemineralssupportedthearmedconflictinthis region. tin, tungstenandgoldintheirsupplychainoriginatedfrom thecovered countries,and of theU.S.Dodd-FrankAct,whichrequires companiestodeterminewhethertantalum, In collaborationwiththeAIAG,FCAhasdevelopedstrategiesaddr oup whichleadsautoindustryengagementincobalt, essing Section1502 ovides
107 2020 SUSTAINABILITY REPORT Production and Responsible Sourcing Responsible Sourcing • • • Further, we: and after-market suppliersinorder toobtainsmelterinformation. Minerals ReportingTemplate isthenrequired (CMRT) from more than690in-scopedirect part datafromMaterialDataSheets(IMDS).Aresponse theInternational toConflict in-scope suppliersthathavepartscontaintantalum,tin,tungstenorgold,basedon operation and Development (OECD) Guidance. This process begins by determining the sourced from covered countriesasalsooutlinedbytheOrganisationforEconomicCo- We work with our suppliers, to determine whether tantalum, tin, tungsten or gold were we are helpingtobuildfairsupplychainsofmineralsinthecovered countries. Through AIAG,RMI,andDriveSustainability, alongwithotherstakeholderorganizations, hoc trainingforthetargetedsuppliersregarding thecompletionandsubmissionofCMRT. To prepare suppliers for submitting information into the new NQC platform, FCA provided ad • •
the materialsusedinproducts theysupplytoFCA diligence andprovide uswithproper verificationofthe countryoforiginandsource of expect oursupplierstosour supply chain. pr r suppliers toutilizeanysuchconflict-free smelter/refiner programs that are available support initiativestoverifysmeltersandr r including from legitimate,conflict-free minesinthecovered countries eview all incoming CMRT submissionsfromeview allincomingCMRT oursuppliers equire arelevant suppliers make reasonable efforts to conduct the necessary due ovide detailedsmelteranalysistosuppliersreporting non-conformantsmeltersintheir ce materialsfrom supplierswhoalsosource responsibly, efiners thatare conflict-free andexpectour RESPONSIBLE MINERALSINITIATIVE (RMI) such ascobaltandmica. supply chainfocusingon,butnotlimitingourefforts to,commodities and cross-sector groups topromote anddevelopourrawmaterial responsible sources intheregion. FCAalsoengageswithindustry are illegallyobtained.To thisend,weworktopromote sourcing from activities are notharmedbyourefforts toavoidusing mineralsthat We strivetoensure companiesorindividualsinlegal business as conformingtotheRMAPorcross-sector recognized standards. procurement. Sofar, 252smeltersand refiners havebeenvalidated company-level managementprocesses forresponsible mineral employs arisk-basedapproach tovalidatesmeltersandrefiners’ to validateconformancewithRMAPstandards. Theassessment smelters andrefiners’ managementsystemsandsourcing practices (RMAP). TheRMAPusesanindependentthird-party assessmentof closely withRMIanditsResponsibleMineralsAssuranceProcess best practicesforsupplychainassurancemechanisms,FCAworks Because participationonRMIsub-teamsfacilitatesdevelopmentof 108 2020 SUSTAINABILITY REPORT Production and Responsible Sourcing Responsible Sourcing Due DiligenceGuidelinesforMineral SupplyChains. refiner audit program, aligned with the OECD Due Diligence Guidance and the Chinese materials. RMIhasalsocollaborated withtheResponsibleCobaltInitiativeonajointcobalt to mitigate undesirable practices as they relate to Conflict Minerals, cobalt and other raw global supplychain.Thistoolcanhelpimprove supplychaintransparency andmapping Assessment, whichaddresses environmental,riskspresent socialandgovernance inthe To helpcompaniesaddress these challenges,theRMI has developedtheRiskReadiness metals andmineralsthrough process, toolandinfrastructure improvements. use theirglobalpresence andleveragetodriveground-level improvements intheminingof In addition, cross-sector engagement brings together experts from numerous industries to responsible sourcing practicesanddecisionsmadethroughout oursupplychain. Downstream SupplyChainsprovides acommonfoundationaltoolthathelpssolidify Utilizing andteachingoursupplierstheOECD5-StepFramework forUpstream and were strongly viatheNQCSupplierAssurance. encouragedtosubmittheCRT all supplierswere willbecomearequirement informedthat theCRT andtargetedsuppliers with RMI to have these facilities added as a priority for engagement. In addition, in 2020 conformant listswetargetthosefacilitiesforoutreach anddevelopment.We alsoworked discussions fornextsteps.Whensmeltersandrefiners are notfoundontheRMIactiveor against theRMI Cobalt smelter/refiner lists to check their conformance status and facilitate and refiners beingutilized.WhentheCRTs were received from suppliers,theywere verified information through thesupplychainregarding thecobalt'scountryoforiginandsmelters facilitatestheexchangeof forConflictMinerals.TheCRT RMI, andissimilartotheCMRT the CobaltReportingTemplate Thisisanautomotive industrytoolprovided (CRT). by Our electricvehicle(EV)batterysupplierswere thefirstto receive our request tosubmit and thestrategyforward dependsonappropriate application ofthesetools. which approach bestsupportsourneeds.Manyresources haverecently beenreleased to applying industry tools and resources. We haveevaluateddifferent toolstodetermine new materialsreliesfrom onthelessonslearned ourConflictMineralsprocess inaddition aroundthe ongoingconcerns useofchildlaborinminingcobalt.Expandinginto FCA hastakenactiontobeginengagingsuppliersregarding cobaltintheirproducts given Cobalt is of growing interest for the auto industry due to its use in electric vehicle batteries. COBALT blockchain pilot. In 2020,weworkedwithRSBNtomakeimprovementswhileparticipatinginthe internally support sustainable,responsible sourcing andproduction practicesfrom minetomarket. Network (RSBN)whichisanindustrycollaborationusingblockchaintechnologyto protection in mineral supply chains, FCA joined the Responsible Sourcing Blockchain Further, inresponse totherecommendations tostrengthen humanrightsandenvironmental most effective manner. FCA toanappropriate proposed actionplan,andefforts are ongoingtoapplytheminthe project thatgathered inputfrom diverseviewpoints.Thisproject generatedtoolstoguide In aneffort toenhanceouroverallsourcing processes wecreated aResponsibleSourcing mirror housingandcovers. surface coatingsandcontainedinothervehiclematerials,suchaspolymersforexterior 2019. Micarepresents anotherareaforchild labor. ofconcern Itisusedpredominantly in In addition,RMIopenedtheRiskReadinessAssessmentprocess tomicasmeltersin OTHERS MICA AND 109 2020 SUSTAINABILITY REPORT Production and Responsible Sourcing Responsible Sourcing the supplierhasalready beenassessedforotherfacilities,products, orcommodities. which asupplier’s location has notdelivered aproduct type for more than 12 months, even if who are notcurrently providing partstoFCA,butmaysoon.Itcanalsobeusedinsituations The assessmentisconductedpriortotheprocurement phaseforallthosesuppliers’plants actions, responsibilities, andtargetdatesforresolution canbedefinedforallidentifieditems. is created tobringthesupplierintocompliancebefore businessissourced. Corrective potential suppliershowsdeficienciesinanyarea oftheassessment,agapclosure strategy The SEAalsoincludesanauditcarriedoutatthesupplier’s facilitybyFCApersonnel.Ifa labor practices,humanrights,andtheirimpactonsociety. system. Theseconditionshelpensure thattheymonitorandmanageenvironmental aspects, system for managing employee health and safety; and a certified environmental management along thesupplychain.AfewofmainitemsinSEAare: acodeofconduct;certified demonstrate thattheyhaveadoptedaprogram thatpromotes sustainability, and bothinternally whether it has the potential to be a high-performing supplier for FCA. Potential suppliers must and capabilitiestoproduce partsoftherequired quality, performance andcost,evaluate Supplier EligibilityAssessment(SEA),weidentifyapotentialsupplier’s strengths, weaknesses an evaluationhelpsdetermineitssuitabilitybasedonabroad setofcriteria.Through the Before FCAconductsbusinesswithacompanytopurchase vehiclepartsandcomponents, REQUIREMENTS ELIGIBILITY SUPPLIER ASSESSMENTPROCESS
SUPPLIER WCM AT WCM THE ACADEMY SUPPLIERSTRAINING indicators. and mentoringtoimprove a supplier'skeyactivityandperformance Dedicated WCMknowledgeexpertsfrom FCAprovide guidance launches. emphasis isplacedonsupplierplantsinvolvedinupcomingproduct purchasing strategy, andthesupplier'scurrent performance.Particular and commoditiesare prioritizedbasedontheirimpactFCAplants, production. To maximizetheeffectiveness oftheprogram, suppliers and focusedimprovement activitiesforthosesupportingcurrent includes plantshopfloorassessmentsfornewlaunchsuppliers providing WCMmethodologyandtoolstooursuppliers.support Manufacturing AcademyandFCAplantWCMspecialists,continued During 2020,FCAPurchasing, withthesupportofWorld Class involvement oftheentire manufacturingworkforce. operations byapplyingmethodsandstandards withrigor, andwiththe all typesofwasteandlosses,reduce injuriesatourmanufacturing sustainable, systematicimprovements aimedtoevaluateandaddress Manufacturing (WCM),astructured production system thatpromotes In ourindustrialoperations,FCAhasadoptedWorld Class EVENTS 3 PARTICIPANTS 141 SUPPLIERS 75 110 2020 SUSTAINABILITY REPORT Production and Responsible Sourcing Responsible Sourcing CDP SUPPLY CHAINPROGRAM approximately 7.9milliontons. of topGroup suppliers'CO material suppliers,meetingour2020targettomonitor90-100% 65% ofFCAannualpurchases byvaluefrom direct andindirect In 2020,disclosingsuppliersaccountedforapproximately suppliers reported theirscope1and2emissions. emissions andclimateimpact.Approximately 50%ofresponding the importanceandbenefitsfrom transparently reporting on dedicated suppliertrainingwebinarswere heldtocommunicate To supportthisengagementandboostsupplierresponse rates, rate, attaininganaveragescore ofConascalefrom A toD-. invited, 231suppliersdisclosedtheirresults, a75%response participate intheCDPSupplyChainprogram in2020.Ofthose of theirimpactonclimatechange,307supplierswere invitedto sustainable economy. To promote awareness amongsuppliers business norm,anddrivedisclosure, insightandactiontoward a It aimstomakeenvironmental reporting andriskmanagement a which supportscompaniestodiscloseenvironmental impacts. CDP (formerlytheCarbonDisclosure Project) isanorganization scope 3CO representing 100%oftheannualpurchased value,for Based onsupplierdatasubmitted,thescale-upestimate, Chain program. 57% ofannualpurchases by value)through theCDPSupply 2 emissionsfrom oursupply baseaccountedfor RATE RESPONSE 75 SUPPLIERS DISCLOSING 231 % 2 emissions (accounting for about emissions(accountingforabout SCORE AVERAGE C APV 57 % • • • The SAQincludesthefollowingsections: complete the SAQ online by accessing it on the NQC Supplier Assurance platform. within the supply base and to communicate FCA’s expectations to our suppliers. Suppliers automotive industry, hasatwo-foldpurpose:todeterminethelevelofsustainabilityactivity The SAQstandardized tool, developedbyDriveSustainabilityincollaborationwiththe and 20%in-process ofourannualpurchased valueon bothdirect andindirect suppliers. 48% ofourinvitedsuppliersresponded tothequestionnaire, representing 28%completed FCA, whichcoversgreater than assessment eachyear. During2020,weinvitedtargetedsupplierstocompletetheSAQfor questionnaire (SAQ).Active FCA suppliersare expectedtocompleteasustainability The firstphaseconsistsofgatheringsupplierinformation,viaasustainabilityassessment The suppliercomplianceassessmentsare conductedyearlyandincludethree phases. social risks. 1 suppliers with potential exposure to significant environmentalassessments of all Tier or beganwehavebeenfocusedonconductingsustainabilityauditsand Since ourjourney who provide evidencevalidationandmentoring. 1 suppliers. NQC SupplierAssuranceprovides botha platform for the SAQ and personnel Sustainability. This data gathering tool should help reduce the reporting burden for our Tier Questionnaire (SAQ),themostcommonautomotivesustainabilityassessment,from Drive sustainability topics.Inaddition,wehavemigratedtousingtheSustainabilityAssessment The Group has made significant progress to understand how suppliersare focusing on SUSTAINABILITY SUPPLIER ASSESSING and adoptinglogisticsprocesses withminimizedenvironmental impact. greenhouse gases;properly managingenergyandwateruse,wastetreatment anddisposal; a supplybasethatisseekingtooptimize itsuseofresources andminimizeemissions and As anexample,historicallywithinthe Envir • • • •
Recommendations Responsible Sour Supplier Management Envir Business Ethics Health &Safety W orking ConditionsandHumanRights onment cing ofRawMaterials 95% of ourdirect annualpurchased value.Approximately onment section, self-assessment feedbackreflects
111 2020 SUSTAINABILITY REPORT Production and Responsible Sourcing Responsible Sourcing • is captured asastrategicindicatorandisavailable onallregional scorecard views. standardized suppliermetricsacross allFCAregions. Suppliers’sustainabilityperformance Purchasing andare reported BalancedScorecard, ontheGlobalExternal whichprovides based onassessments,evidence validationandonsiteauditsare shared within FCA activities anddeadlinesforimplementation. Thelevelofsuppliersustainabilitycompliance applicable. Actionplansestablish specific responsibilities within thesupplier’s organization, action planisdevelopedby FCA, thesupplierandwithsupportof the third partywhere may be suspendedorterminated.Where areas forimprovement are identified,acorrective placed on watch status or, in particularly severe cases, the relationship with the supplier If anycriticalissuesare identified duringanauditorevidencevalidation,asuppliermaybe value, whichincludes40ofourtop100direct suppliers. on-site auditsatsuppliersthataccountformore thanathird ofourtotalannualpurchased map wasusedtoprioritizeevidencevalidation activities. Since 2011, wehaveconducted has beenakeynewfunctiontosupplementon-siteaudits.The information from therisk of ourserviceprovider toperformevidencevalidationforsupplierSAQsubmissions,which In 2020,noon-sitesustainabilityauditswere conducted,however, wegained thesupport improvement inwhichthey canclosegaps,becomingstronger andmore sustainable. These auditsnotonlyhelpFCA,butalsostrengthen oursuppliersbyidentifyingareas of auditors. or external sustainability standards, andareSupplierQualityEngineers conductedbyeither internal unannounced - represent the third phase for confirming supplier compliance with our On-site suppliersustainabilityaudits-intheformofbothannouncedandsemi-announced/ prioritize supplieraudits. The risk map score indicates a supplier’s overall sustainability risk level and is used to • • • • All direct materialsuppliersare analyzedandratedon criteriathatinclude: The secondphaseofassessingsuppliersisthecreation ofthesustainabilityriskmap. •
Indicators countries withapoorhumanrightsrecord, according totheWorldwide Governance location ofsupplier’ supplier’ supplier’ supplier’ country riskassociatedwiththesupplier’ FCA spendingonthesupplier s exposure tocommodityriskbasedonprocess orlabor intensity s sustainabilityassessmentscore s financialrisk s mainproduction activities(where availableorknown). s homecountry, withparticularemphasison
Increased supplier engagementisaprimary focusfortheValue Optimizationteam. manufacturing technologies and leanercomponentdesignsare implemented. to collaborate on cost saving ideas. Economic benefits are shared wheninnovative Product Enhancement Reward) encourages a proactive approach with suppliers products, processes and content. The Value Optimization SUPER Program (SUpplier Another supplierengagement program focusesonfostering innovationtoimprove 12 Technology OpenHouseeventswere held. or services tospecifically-defined FCA audiencesthey might not otherwise reach. In 2020, 3supplierstopresent commodities,technologies 2orTier House eventswhichallowTier Supporting our efforts to engage sub-tier suppliers, FCA also hosts Technology Open developments andconceptsforthefuture. quality, andallowsupplierstoshare withFCApersonnelsomeoftheirlatest technological encourage collaboration with suppliers on innovative solutions for features, efficiencies and In 2020,FCAandoursuppliersparticipatedin37Technology Day events.Theseevents and supplychainorganizationsevents,extensivetraining, one-on-onedialogue. We engagewith our suppliers through, among othermethods,Technology Days, industry innovation, qualityproducts, efficiency, bestpracticesharingandsustainabilityconcepts. Purchasing FoundationalPrinciples.Through avariety ofchannels,westrivetopromote FCA’s communicationwithsuppliersis based onthetrustandtransparency outlinedinour ENGAGING ANDTRAININGSUPPLIERS SUPPLIER AWARDS sustainability efforts in environmental, social and governance categories. sustainability efforts inenvironmental,categories. socialandgovernance the award bydemonstratingexcellence,innovationandthescopeoftheir Suppliers meetingeligibilityrequirements maynominatetheircompaniesfor A distinctcategoryrecognizes companiesfortheircommitmenttosustainability. the FCAPurchasing organization’s FoundationalPrinciples. extraordinary commitmenttoinnovation,quality, continuousimprovement and Supplier Conference andAward ceremonies. Supplierswere recognized fortheir FCA honored outstandingsuppliersfrom around theworldduringannual
112 2020 SUSTAINABILITY REPORT Production and Responsible Sourcing Responsible Sourcing including contentandpresentations forSupplierTraining Week. Centerprovidesopportunitiesandotherresourcessupplier Learning learning forsuppliers, FCA’scourses virtuallyandmore than9,800tookpart.Within eSupplierConnectportal,the ethics andConflictMinerals.In2020,in response totheCovidpandemic,weoffered the sustainability-related topicssuchasresponsible workingconditions,environmental impacts, manufacturing, finance,andengineering.Theagendaalsoincludesdedicatedclasseson The curriculumcoverssubjects related to purchasing, quality, supply chain management, hosts SupplierTraining Weeks inTurin Hills(U.S.)andShanghai(China). (Italy),Auburn in AIAGworkgroups andtoworkwiththeirlargerpeersonindustrysolutions.FCAperiodically FCA workswithAIAGtosponsorsmallercompanies,includingsub-tiersuppliers,takepart focus onsustainabilityissuesandstreamlining toolsandmetricsacross theindustry. teams thatpartnerautomakerswithsuppliers.Manyoftheinitiativespromoted byAIAG Responsible Materialsworkgroup, FCAemployeesare engagedinanumberofotherAIAG In additiontoaleadershiprole ontheBoard ofDirectors, withco-leadership withinthe processes and practices involvingtrading partners and peersthroughout thesupplychain. in 1982.AIAGisacooperativeforumfortheautoindustryfocusedonimproving business and supplierorganizations.Onesuchgroup istheAIAG,whichCompanyhelpedfound FCA alsoencouragesdialoguewiththesupplybasebyworkingcloselymanyindustry OUR FOUNDATIONAL PRINCPLES FCA's supplierrelationships are drivenbyourFoundationalPrinciplesthatprovideand inworkingwithoursuppliers. theframeworkweuseinternally EACH OTHER RESPECT ANDSUPPORT ADVOCACY EMPATHY & TRUSTWORTHY TRUST ANDBE INTEGRITY SENSE OFURGENCY TRANSPARENCY MUTUAL DECISIVELY ACT QUICKLY AND AND INFORMATION SHARE EXPECTATIONS
employees. cost tosuppliers,isavailableinseverallanguagesandalsoprovided toFCAPurchasing among the procurement professionals who make sourcing decisions. It is provided at no who make vehicle components. The training helps to educate and create awareness with other automakers and is designed to help protect the rights and dignity of the workers partnership withAIAG.Thisweb-basedtrainingisdevelopedandupdatedcollaboratively Additionally, in-depthtrainingonresponsible workingconditionsisoffered tosuppliersin a criticaltime. option withouttakingkey, dedicatedsuppliercontacts awayfrom theplantlocationduring training duringthe launch of vehicle programs. This method provides a flexible training opportunities. VCOwasalsofoundtobeaneffective optiontoaccommodatesupplier Training Weeks were replaced withVCOclassesinan effort toincrease virtualtraining traveling toatrainingsite.In2020,additionalregional trainingmodulesfrom theSupplier part inalive,interactivesettingfrom theirdesktop,avoidingtheexpenseandextratimeof ClassroomFor example, FCA utilizes the Virtual Offering (VCO), in which suppliers take training information to enable the development, delivery and use of this material. As thesupplybasecontinuestoexpandglobally, itisnecessarytoeffectively manage IMPROVEMENT CONTINUOUS COLLABORATION PROACTIVE SHARE BESTPRACTICES EFFICIENTLY EFFECTIVELY AND WORK TOGETHER RELATIONSHIPS FOSTER SUSTAINABLE MAKE DECISIONSTHAT ACCEPT RESPONSIBILITY TAKE OWNERSHIPAND LONG-TERM MINDSET ACCOUNTABILITY PERSONAL View data
113 2020 SUSTAINABILITY REPORT Production and Responsible Sourcing Responsible Sourcing • • FCA USreceived thefollowingawards forourfocus ondiversityduring2020: and drivegrowth forsuppliersthatare appropriately certifiedwithapproved councils. the year. Theseawards honorcorporationsfordiversityprograms thatreduce barriers Recognition ofthediversityefforts theCompanyhasmadeare presented throughout BalancedScorecardExternal 2level. includesametricfordiversitysourcing attheTier 2diversesuppliersin 2020.TheFCAUSsuppliers’ 1andTier than €5.97billionwithTier asupplierdiversityanddevelopmentprogram thatspans37years,FCAspentmore With CEO-driven businesscommitmenttoadvancediversityandinclusionintheworkplace. our customers.In2020FCAsignedontotheCEOActioninitiativewhichislargest as an everyday practice in our dealings with our employees, our dealers, our suppliers and relevant councils.We government worktoincludediversityandinclusionconsiderations owned by recognized minority groups, women or veterans, and which are certified by the communitiesinwhichwedobusiness.DiversitySuppliersare thosethatare majority FCA believesthediversityofoursuppliersshouldreflect thediversityofourworkforce and FCA’s commitmenttodiversityandinclusionalsoextendsoursupplychain. AND INCLUSION SUPPORTING SUPPLIERDIVERSITY • •
T V Minority BusinessNewsSupplier DiversityAll-Stars Council Corporation oftheY op 100CompanybyWomen’s EnterpriseUSA eteran-Owned BusinessRoundtable AdvocateoftheYear ear - Tier II Program by the NationalMinoritySupplier Development ear - Tier DIVERSE SUPPLIERS SPENT WITH BILLION €5.9+
• • the wayswesupportorganizations,whichinclude: support, sponsorships,membershipandBoard andcommitteeparticipationare someof to decisionmakerswithinourprocurement organization.Training, mentorship,scholarship I suppliersand owned, women-owned and veteran-owned businesses access to ourTier which creates opportunitiesfordiversesuppliers.Matchmakerevents provide minority- FCA supports inclusion across our supply base also through the annual Matchmaker event, status ofeachsupplierismonitored monthlyandreviewed quarterlywiththem. them withthetoolsandsupporttoachievetheirdiversitytargets.Thespend program whichworkswithsuppliersgreater potential fordiversespendandequips Our long-lastingleadershipinhelpingdiversesuppliersincludestheFCAHighFocus Council. Veteran-Owned Business Association and the National Veteran Business Development In addition, we support veteran-business ownership through membership with the National • • • • •
WECONNECT Inter W Canadian AboriginalandMinoritySupplierCouncil DisabilityIN National MinoritySupplierDevelopmentCouncil National GayandLesbianChamberofCommer Billion DollarRoundtable omen’s BusinessEnterpriseNationalCouncil national ce 114 2020 SUSTAINABILITY REPORT Supplemental Information
Facts & Figures 116 Definitions, Methodology and Scope 148 Employees 116 Workforce Distribution 116 Turnover 122 Reporting Standards Training 123 and Frameworks 150 Occupational Health and Safety 124 GRI Standards Content Index 150 Freedom of Association and Collective Bargaining 126 SASB Content Index 163 Direct Economic Value ISO26000 Content Index 164 and Value Added Generated 126 Product 127 Independent Auditor’s Report 166 Customers 129 Production 130 Certification and Environmental Forward-Looking Statements 167 Expenditures 130 Energy 130
CO2 Emissions 133 About this Report 168 Other Manufacturing Emissions and Impacts 135 Water 137 Waste 140 Biodiversity Conservation 143 Responsible Sourcing 145 Supplemental Information Facts & Figures Europe Hourly Latin America North America Rest of world of Rest Total North America Other Activities* Maserati Mass-market vehicles Asia Latin America Europe - - - * Other Activities: Comau, Teksid, and companies operating in and services holding. - FCA worldwide Workforce Gender DistributionbyOperatingSegment - FCA worldwide Workforce GenderDistributionbyCategory - FCA worldwide Workforce GenderDistributionbyGeographicArea - - FCA worldwide (no.) Workforce byGeographicArea andCategory Employees Rest of world of Rest Total Salaried Asia Total Professional Manager Total Facts &Figures 189,512 189,512 32,208 58,375 58,375 95,108 95,108 3,590 3,590 Workforce Distribution Total 231 Total (no.) Total (no.) Total (no.) Total 189,512 189,512 189,512 189,512 189,512 189,512 164,203 164,203 134,371 32,208 30,404 30,404 22,691 23,681 23,681 58,375 58,375 95,108 95,108 3,590 3,590 2,046 2,046 1,628 1,628 134,371 134,371 231 72,773 72,773 36,162 36,162 25,188 25,188 Hourly 204 44 2020 Salaried 22,691 22,691 2020 2020 2020 8,857 8,023 8,023 3,792 3,792 1,957 1,368 1,368 1,957 Men (%) Men (%) Men (%) Men 62 79.4 79.4 79.4 80.2 80.8 76.2 78.8 79.3 73.6 79.6 79.7 83.1 76.1 87.8 71.1 Professional 30,404 13,452 13,452 12,370 12,370 3,089 3,089 125 Women (%) Women (%) Women (%) Women Manager 2,046 2,046 1,108 1,108 20.6 20.6 20.6 23.8 20.3 23.9 28.9 26.4 20.4 20.7 19.2 16.9 19.8 12.2 21.2 738 139 61 - 191,752 60,636 95,621 31,613 3,643 Total 239 Total (no.) Total (no.) Total (no.) Total 165,068 135,077 191,752 191,752 191,752 23,896 60,636 30,689 25,001 95,621 31,613 2,090 3,643 1,683 239 135,077 37,609 72,667 24,525 Hourly 230 46 2019 2019 2019 2019 Salaried 23,896 3,888 8,495 9,434 2,014 Men (%) Men (%) Men (%) Men 65 79.6 79.6 79.6 88.6 83.4 78.9 76.5 76.5 79.9 79.0 72.4 79.7 81.2 80.1 71.0 Professional 30,689 12,380 13,771 3,063 1,348 127 Women (%) Women (%) Women (%) Women Manager 2,090 1,140 20.4 20.4 20.4 23.5 23.5 20.3 29.0 18.8 16.6 19.9 21.0 20.1 27.6 11.4 21.1 761 137 51 1 198,545 33,056 64,616 97,029 3,566 Total 268 Total (no.) Total (no.) Total (no.) Total 198,545 198,545 198,545 171,500 141,452 33,066 24,522 64,616 30,476 97,029 25,417 3,566 2,095 1,628 268 141,452 26,004 40,446 74,703 Hourly 253 46 2018 2018 2018 2018 Salaried 24,522 3,963 9,261 ,4 1,328 1,940 9,276 Men (%) Men (%) Men (%) Men 82 79.8 79.8 79.8 88.9 83.3 80.4 78.9 76.8 79.8 76.9 79.9 70.5 79.4 72.0 81.5 Professional 30,476 1901,110 11,940 14,104 2,965 139 Women (%) Women Women (%) Women (%) Women Manager 2,095 20.2 20.2 20.2 19.6 23.2 20.2 29.5 28.0 20.6 20.1 18.5 16.7 23.1 21.1 11.1 805 134 45 1 116 2020 SUSTAINABILITY REPORT Supplemental Information Facts & Figures Elementary/middle school High school Total tracked* Not years 50 Over 31 years to 40 years to 30 Up to 5years Up 6 to 10 years 21 years to 30 11 years to 20 * Not tracked: 13 employees of a company undergoing integration in the Human Resources reporting process, accounting for approximately 0% of total workforce. total of 0% approximately for accounting process, reporting Resources Human the in integration undergoing acompany of 13 employees tracked: * Not FCA worldwide (no.) Workforce byCategoryandAge * University degree: calculation subject to approximation resulting from the comparison of academic qualifications orequivalent among differentcountries. - - FCA worldwide Workforce GenderDistributionbyLevelofEducation workforce. total of 0.3% approximately for accounting process, reporting Resources Human on integration under 2019 and during insourced 3companies of employees 627 tracked: * Not FCA worldwide Workforce GenderDistributionbyAge workforce. total of 0% approximately for accounting process, reporting Resources Human the in integration undergoing acompany of 13 employees tracked: * Not FCA worldwide Workforce GenderDistributionbyLengthofService - - - - Total tracked Not University degree* - - 41 years to 50 31 years to 40 years to 30 Up 41 years to 50 Total tracked* Not years 50 Over Over 30 years 30 Over Total tracked* Not Total (no.) Total (no.) Total Total (no.) Total 189,512 189,512 189,512 189,512 189,512 189,512 56,304 35,856 38,306 38,306 49,858 48,384 48,384 39,267 39,267 95,544 66,479 66,479 15,793 15,793 27,246 27,246 40,714 40,714 47,494 47,494 7,278 7,278 13 189,512 189,512 - 56,299 56,299 35,857 49,855 49,855 47,488 47,488 Total 13 2020 2020 2020 Men (%) Men (%) Men Men (%) Men 79.4 79.4 79.6 86.2 83.0 78.3 76.8 78.6 92.0 78.5 75.6 73.8 76.6 82.1 82.1 89.1 77.7 - Women (%) Women (%) Women Women (%) Women 134,371 134,371 20.6 20.6 20.6 23.2 26.2 22.3 23.4 13.8 24.4 10.9 21.4 21.5 21.7 17.9 17.9 17.0 35,327 35,327 28,573 28,573 31,624 31,624 8.0 Hourly 3,839 3,839 - 8 Total (no.) Total (no.) Total Total (no.) Total 191,752 191,752 191,752 68,854 30,309 50,903 55,468 40,233 49,399 48,325 46,810 14,029 37,944 86,182 37,700 7,846 627 627 2020 2019 2019 2019 Salaried 22,691 22,691 Men (%) Men (%) Women (%) Men Men (%) Women (%) Women (%) Men 6,029 6,029 6,529 6,529 4,812 4,812 5,317 5,317 79.6 86.5 90.3 79.6 83.4 82.2 78.4 76.9 73.8 79.6 76.4 76.7 81.6 77.2 77.2 78.1 77.2 79.1 4 Women (%) Women 20.4 20.4 26.2 20.9 23.3 23.6 22.8 22.8 20.4 22.8 13.5 16.6 18.4 21.9 21.6 23.1 17.8 9.7 Professional 30,404 10,335 10,335 8,942 8,942 1,966 1,966 9,160 9,160 Total (no.) Total Total (no.) Total Total (no.) Total 198,545 198,545 54,996 42,993 32,493 42,095 78,959 32,871 1 52,714 47,842 12,127 198,545 36,883 93,404 60,947 7,311 - - 2018 2018 2018 Men (%) Women (%) Women (%) Men Men (%) Women (%) Women (%) Men Men (%) Women (%) Women (%) Men 79.8 79.8 83.9 88.0 82.2 78.8 78.8 79.8 78.4 76.5 79.4 78.7 76.7 85.1 81.9 77.9 - - Manager 2,046 2,046 1,096 1,096 774 175 1 - 20.2 20.2 20.2 23.3 23.5 20.6 21.2 21.2 14.9 21.3 12.0 21.6 22.1 18.1 16.1 17.8 - - 117 2020 SUSTAINABILITY REPORT Supplemental Information Facts & Figures North America - - - Total Rest of world of Rest Latin America Europe Asia Rest of world of Rest Asia Latin America Europe North America Total - - - FCA worldwide (%) Workforce GenderDistributionbyContractandEmploymentType FCA worldwide (no.) Workforce byContractandEmploymentType - - - - Men 20.7 9.9 - - - 189,512 189,512 Part-time 32,208 58,375 58,375 95,108 95,108 3,590 3,590 Total 80.1 Men 231 Women 79.3 90.1 Unlimited-term Unlimited-term - - - 177,389 Full-time 32,065 32,065 84,274 84,274 57,255 57,255 76.2 Men 73.6 81.3 77.3 87.8 3,564 3,564 231 Full-time Women Unlimited-term 19.9 Women 23.8 26.4 22.7 12.2 18.7 2020 2020 Part-time 793 735 58 - - - 55.6 Men 72.7 50 - - Part-time 67.3 Men Women 44.4 27.3 50 Full-time - - 3,698 3,698 3,157 3,157 Fixed-term Fixed-term 143 374 24 - Fixed-term 96.8 66.7 Men 48.1 86 - Full-time Women 32.7 Part-time 7,632 7,632 7,619 7,619 Women 11 33.3 2 14.0 51.9 - - 3.2 - 118 2020 SUSTAINABILITY REPORT Supplemental Information Facts & Figures China France Total (no.) Other countries Spain Germany Argentina Serbia Poland Canada Mexico Brazil Italy Europe - U.S. Rest of world of Rest Asia Latin America North America - FCA worldwide (%) Managers ofLocalNationalitybyGeographicArea FCA worldwide (%) Workforce DistributionbyCountry 2020 189,512 189,512 34.4 15.9 24.6 2020 0.2 0.5 6.0 2.2 0.4 1.2 9.7 2.7 1.1 1.1 84.9 99.6 67.2 97.6 100 2019 191,752 33.9 24.9 15.4 0.2 6.5 0.5 9.5 2.2 0.4 1.2 3.1 1.1 1.1 Other American Indian Hispanic African American Caucasian - FCA in North America (%) America North in FCA Workforce byPrincipalEthnicOrigin 2018 198,545 32.8 25.6 15.3 3.2 0.2 6.3 0.5 0.5 9.8 2.2 1.2 1.3 1.1 Italian American - FCA worldwide Nationality ofManagers Polish French Chinese Mexican Total German Canadian Brazilian Other - 2020 38.9 32.3 24.0 0.2 4.6 different from country of work. of country from different * Minority group reported in the table consists of employees with nationality over total workforce (%) workforce total over Total (no.)* - America North in FCA Workforce belongingtoNationalityMinorityGroup of which women (%) women which of (%) men which of Managers (no.) 2,046 2,046 908 100 679 118 30 22 73 91 13 12 2020 Total Managers (%) Total Managers 2020 3,537 33.2 44.4 78.6 100 21.4 5.8 3.6 0.6 0.6 4.9 4.4 1.5 1.9 1.1 119 2020 SUSTAINABILITY REPORT Supplemental Information Facts & Figures FCA worldwide (minimum wage =100) wage (minimum worldwide FCA Comparison BetweenEntry-LevelSalaryandMinimumWage* The survey of 20 countries covered the Group’s total workforce. Workplace equality within the Group is also seen in the comparison between minimum entry-level wages by gender. Considering the countries included in the survey sample, minimum wage levels were were levels wage minimum sample, survey the in included countries the Considering gender. by wages 31, 2020. entry-level December of as minimum are between reported women. Figures and comparison men the in seen headcount. between total also is results Group country’s identical the 10% to be that of country, than found within each less For is unions. equality trade represented and ratio Workplace company lowest the the with workforce. total between Group’s company the the of covered agreements or employees of policy countries 20 of number the company of survey The basis unless the on wage, grade to minimum salary scale/employee pay lowest the at entry-level of hired ratio lowest employee the with full-time to a company paid the on based are compensation minimum the as defined is salary entry-level GRI, the with accordance * In 100 Austria 100 China 100 India 100 Italy 100 Romania 100 Portugal 100 Spain 102 102 France 103 103 Belgium 109 109 Poland 115 Turkey 123 123 Brazil 147 147 UK 158 Canada 169 Serbia 190 190 United States 211 211 Germany 223 223 Russia 231 231 Argentina 241 Mexico minimum country in each each in wage 100
120 2020 SUSTAINABILITY REPORT Supplemental Information Facts & Figures Employees that took parental leave in 2019* and are still employed (%) employed still are 2019* in and leave parental took that Employees Employees that took parental leave among the workforce in 2020 (no.) 2020 in workforce the among leave parental took that Employees * leave aparental on still Employees 31, 2019 December of as Employees that took leave parental during 2019 FCA Italy Retention AfterParental Leave byGender - FCA Italy toWorkReturn AfterParental LeavebyGender process. reporting the during Resources Human on insourced integration 3Companies, of under and 2019 year employees 627 include not does It workforce). 99.7% total of approximately to 191,125 (covering refers employees workforce on * 2019 data - FCA worldwide toWorkReturn AfterParental LeavebyGender Employees who left the Group after parental leave parental after Group the left who Employees Return to work rate at December 31, 2019 December at rate work to Return employed still and ended leave parental after to work Returned leave aparental on still Employees 31, 2019 December of as Employees that took leave parental during 2019 - Returned to work after parental leave ended and still employed still and ended leave parental after to work Returned leave aparental on still Employees 31, 2020 December of as Employees that took parental leave during 2020 Retention rate at December 31, 2020 Returned to work after parental leave ended and still employed still and ended leave parental after to work Returned Return to work rate at December 31, 2020 December at rate work to Return leave parental after Group the left who Employees Employees who left the Group after parental leave parental after Group the left who Employees Not tracked: 13 employees of a company under integration on Human Resources reporting process, weighting approximately 0% of total workforce. total of 0% approximately weighting process, reporting Resources Human on integration under acompany of 13 employees tracked: Not - * * 1,340 1,340 1,000 1,328 1,328 1,503 1,503 1,100 1,100 1,890 1,890 96% 98% 97% Men e Women Men Men Men 366 366 323 323 81.2 113 113 62 62 37 37 17 17 Women Women Women 98% 95% 95% 871 871 1,337 1,337 300 300 693 693 560 560 392 392 160 160 474 474 892 892 81.5 39 39 26 26 11 11 2,211 2,211 1,560 1,560 2,021 2,021 2,395 2,395 1,574 1,574 Total Total Total 98% 95% 96% 623 623 758 758 273 273 101 101 63 63 28 28 121 2020 SUSTAINABILITY REPORT Supplemental Information Facts & Figures Employees at December 31, 2020 ∆ scope of operations, transfers and category change category and transfers operations, of ∆ scope Departures Employees at December 31, 2020 Hires New ∆ scope of operations and transfers and operations of ∆ scope Departures New Hires New ∆ scope of operations and transfers and operations of ∆ scope Departures New Hires New Employees at December 31, 2019 December at Employees FCA worldwide (no.) Turnover byGender FCA worldwide (no.) Turnover byAgeGroup - - FCA worldwide (no.) Hourly Turnover byGeographicArea - - FCA worldwide (no.) Turnover byCategory - - FCA worldwide (no.) Turnover byGeographicArea Employees - - Employees at December 31, 2019 December at Employees Employees at December 31, 2019 December at Employees Employees at December 31, 2020 ∆ scope of operations, transfers and category change category and transfers operations, of ∆ scope New Hires New 31, 2019 December at Employees Departures Employees at December 31, 2020 - - Employees at December 31, 2020 transfers and operations of ∆ scope Departures 31, 2019 December at Employees New Hires New Turnover North America Up to 30 Years to 30 Up North America (16,708) 95,108 95,621 16,253 16,253 (58) 134,371 134,371 35,856 35,856 135,077 72,773 72,773 (18,873) (14,156) 18,406 18,406 14,344 14,344 72,667 (4,838) (9,025) 37,944 Hourly 11,775 11,775 (239) (82) 150,637 58,375 58,375 152,620 (16,792) Europe 60,636 (3,080) 14,614 14,614 Men 822 195 31 Years to 40 (3) Salaried 22,691 22,691 47,494 47,494 36,162 36,162 Europe 23,896 46,810 (5,834) 37,609 (1,659) (2,910) 5,846 5,846 2,256 2,256 (109) (551) 321 672 Latin America 32.208 (3,618) 31,613 4,188 25 41 Years to 50 Latin America Professional 2020 2020 2020 2020 2020 49,858 49,858 30,404 25,188 25,188 50,903 30,689 30,689 (3,020) 24,525 (3,254) (1,915) 2,804 2,804 3,730 3,730 (595) 693 937 (47) 38,875 Women 3,590 39,132 (7,071) 3,643 7,0 45 45 7,0 (430) (231) Asia 375 2 Over 50 Years 50 Over Manager 56,304 Rest of World of Rest 55,468 (5,750) 2,046 2,046 2,090 5,352 5,352 1,234 1,234 (165) 204 Asia 230 (38) 60 61 11 1 231 239 (27) 21 (2) Rest of World of Rest 189,512 189,512 189,512 189,512 189,512 189,512 189,512 189,512 (23,863) (23,863) (23,863) (28,863) 191,752 191,752 191,752 191,752 21,659 21,659 21,659 21,659 21,659 21,659 21,659 21,659 Total Total Total Total (36) (36) (36) (36) 44 46 (2) 0 0 122 2020 SUSTAINABILITY REPORT Supplemental Information Facts & Figures * Training on corporate governance, anti-corruption, human rights, non-discrimination and sustainability. courses. training in enrolled employees on exclusively not and workforce total on based calculated * Averages Employees involved Employees Hours of training - (no.) JVs selected and worldwide FCA Training onHealth andSafety (no.) Participations - FCA worldwide Training onCorporateCampaigns* - - FCA worldwide (no.) Training byGender Spending on training (€ million) - FCA worldwide (€) Training Expenditures Employees Men Total Total Women of which managers Training 2020 2020 2020 1,890,663 1,890,663 Workforce 163,755 163,755 93,005 20,699 20,699 72,306 70,209 3.9% 25.0 2020 2019 2019 2019 1,082,731 1,082,731 1,811,364 848,402 234,329 144,348 104,331 Hours 4.0% 34.1 Training Hours* 2018 2018 2018 Average Average 176,003 176,003 991,576 138,134 5.7 6.0 5.6 3.4% 40.7
Total world of Rest Asia Latin America Europe North America Hours of training - - - - - FCA worldwide Training byCategory FCA worldwide Training onAnti-Corruption Hourly Employees involved Employees Manager Professional & Salaried FCA worldwide and selected JVs (no.) JVs selected and worldwide FCA Environmental Training * Averages calculated based on total workforce and not exclusively on employees enrolled in training courses. training in enrolled employees on exclusively not and workforce total on based calculated * Averages 2020 Employees involved (no.) involved Employees 89,904 60,457 Workforce (%) Workforce 13,954 13,954 13,953 13,953 43.5 54.2 2019 2.3 1 2020 2020 - - - 136,976 66,052 Training Hours (no.)* of which manager 2018 Average Average 118,984 0, 46 207,0 5.9% 5.9% 12.4 3.0 9.9 - - - -
123 2020 SUSTAINABILITY REPORT Supplemental Information Facts & Figures day the injury occurred. Excluded from the calculation are days of absence due to injuries that occurred while traveling to and from from to and traveling while occurred that work, to injuries including due by private transportation. absence of days are calculation the the from day, excluding one Excluded than more for occurred. work from injury the day absence in resulting professional) and salaried (hourly, to injuries due to employees holidays) and occurred Sundays that Saturdays, (including absence of days calendar of number to the refers absence of * Days FCA worldwide (no.) Days ofAbsence*byRegion/Company FCA worldwide (no.) Injuries byRegion/Company EMEA - North America Maserati APAC LATAM Total Plastic Components Comau Teksid Employees North America EMEA - Maserati LATAM Total APAC Teksid Plastic Components Comau Occupational HealthandSafety 2020 2020 6,850 2,363 2,155 167 860 205 207 281 743 69 40 36 10 18 15 1 7 7 2019 2019 10,065 4,063 2,955 210 901 957 624 373 153 85 56 27 39 18 1 6 8 9 2018 2018 12,856 1,094 3,841 1,367 5,151 276 344 280 735 121 25 78 44 16 19 3 8 6 Total Plastic Components Teksid Comau LATAM - hours)* 1,000,000 per (injuries worldwide FCA Frequency RatebyRegion/Company * 2020 worked hours that were used to calculate severity rate were approximately 290 million. 290 approximately were rate severity to calculate used were that hours worked * 2020 EMEA - worked)* 1,000 hours per to injuries due absence of (days worldwide FCA Severity RatebyRegion/Company million. 290 approximately were rate frequency to calculate used were that hours worked * 2020 APAC North America EMEA Maserati APAC Maserati Plastic Components Comau Teksid LATAM North America Total 2020 2020 0.57 0.02 4.34 0.30 0.95 0.32 0.04 0.03 0.03 0.01 0.01 0.07 0.79 1.54 1.55 0.10 0.13 - 2019 2019 0.60 0.03 0.84 0.99 0.08 0.08 0.03 0.04 0.02 0.02 0.02 0.31 0.24 0.07 1.98 1.67 1.42 - 2018 2018 0.03 0.06 0.06 0.93 0.03 0.04 0.03 0.56 0.04 0.70 0.40 0.97 1.80 0.10 1.71 0.18 1.10 - 124 2020 SUSTAINABILITY REPORT Supplemental Information Facts & Figures FCA worldwide (€ million) worldwide FCA Spending onOccupationalHealth andSafety Fatal accidents - FCA worldwide (no.) Fatalities FCA worldwide (no.) Occupational IllnessCasesbyRegion/Company Fatality rate per 1,000,000 hours worked* hours 1,000,000 per rate Fatality LATAM North America Spending on Occupational Health and Safety and Health Occupational on Spending - APAC EMEA - * 2020 worked hours that were used to calculate fatality rate were approximately 290 million. 290 approximately were rate fatality to calculate used were that hours worked * 2020 Maserati Comau Teksid Plastic Components Total 2020 2020 2020 164 297 104 99 82 12 ------2019 2019 2019 0.006 395 169 155 167 48 2 9 2 - - - 2018 2018 2018 0.003 366 160 145 175 38 1 6 1 1 - - Total Plastic Components Comau Teksid Maserati APAC LATAM North America EMEA - worked)* hours 1,000,000 per cases illness (occupational worldwide FCA Occupational IllnessFrequency RatebyRegion/Company * Refers to injuries which determine absence of 6 months (180 consecutive days) or more from working place. working from more or days) (180 consecutive 6months of absence determine which to injuries * Refers FCA worldwide (no.) Serious injuries*byRegion/Company million. 290 approximately were rate frequency to calculate used were that hours worked * 2020 North America EMEA - Total Plastic Components Comau Teksid Maserati APAC LATAM 2020 2020 1.01 0.66 1.85 1.43 7.04 - - - - 2 2 ------2019 0.93 3.52 0.42 1.95 1.42 1.13 - - - 2019 2018 0.93 0.05 0.04 0.97 1.59 0.75 2.73 11 2 4 3 1 1 - - - - - 125 2020 SUSTAINABILITY REPORT Supplemental Information Facts & Figures FCA worldwide (€ million) worldwide FCA Direct EconomicValue andValue Added generated in 2020totaled€11,265million(about The valueaddedthrough theGroup activitiesanddistributed toourvariousstakeholders (%) type by agreements FCA Main IssuesCovered UnderCollectiveBargainingAgreements * Occupational Health and Safety includes work-related stress. Value added Other expense Depreciation and amortization materials of Cost Direct economic value generated Other income release of provisions, other income Government grants (current and deferred/capitalized), Income of companies financial services Consolidated 2020 revenues - Employees Employees Other Equal opportunities Training Occupational Health and Safety* Restructuring Wage issue Operating issue - Direct EconomicValue andValue AddedGenerated Freedom ofAssociationandCollectiveBargaining 13% ofrevenues). 2020 2020 (68,031) 11,265 11,265 87,401 86,676 86,676 (2,962) (5,143) (129) 585 269 22.8 10.4 11.4 37.1 9.9 5.7 2.7 PROVIDERS FINANCE 689 PUBLIC INSTITUTIONS GOVERNMENT AND 286 FCA (€ million) Breakdown ofValue Added COMMUNITIES 38 EMPLOYEES 10,252 10,252 126 2020 SUSTAINABILITY REPORT Supplemental Information Facts & Figures Main CollaborativeEuropean Projects BARBARA ECOXY InterACT eCharge4Drivers Carmen 5G L3Pilot Project name (€ million) worldwide FCA Public FundingforResearch andDevelopment Loans Grants - Product * European Investment Bank. of which EIB* loans EIB* which of of which subsidized loans Development of biopolymers with multifunctional for properties the production of components for vehicle interiors made with 3D printing techniques. Focuses on a circular economy approach for the use of recyclable, reshapable and repairable, bio-based fiber-reinforced epoxy composites. pedestrians. with vehicles self-driving of interaction the for solutions of testing and Development Focuses on connected technologies. vehicle 5G of solutions service to allow trials electric vehicle users a comfortable and enjoyable cross-border charging experience in different cities and to conduct on long journeys. to Germany Italy from corridor a5G-enabled building at aims Union: European the in Mobility Road Automated and Connected L3Pilot cities. and highway, society. and parking, traffic on including impact overall situations, the and driving of aspects range awide in technical the automation evaluate will vehicle tests on trials field perform makers car L3Pilot in Roads: European on Driving Automated Piloting Project focus 2020 79.7 79.7 31.2 31.2 81.9 81.9 2.2 2.2 2019 35.2 0.1 0.1 - 2018 429 420 40 9 Involvement inEuropean Research Organizations organizations Research and development Public-private partnerships Platforms European Technology Human Factors and Ergonomics Society - Europe Chapter EIT Raw Materials: Knowledge & Information Community Community &Information Knowledge Labs: ICT EIT Services and Systems Transport Intelligent of network Europe: ERTICO-ITS R&D Automotive for Council European EUCAR: BBI: Bio Based Industries ECSEL: Components and electronic systems Factories of the Future Green Vehicles Initiative NANOfutures: initiative for sustainable development by Nanotechnologies MANUFUTURE: Manufacturing and production processes EuMaT: Advanced materials engineering and technologies integration system Smart EPoSS: transport Road ERTRAC: 127 2020 SUSTAINABILITY REPORT Supplemental Information Facts & Figures Materials BoughtforVehicle Production FCA worldwide (no.) Patents Total Other Fluids Polymers Elastomers Other metals Cast iron Light alloys Steel Patents pending at December 31, 2020 December at pending Patents - 31, 2020 December at granted Total patents of which: granted during 2020 during granted which: of of which: new patent applications filed in 2020 in filed applications patent new which: of Weight of materials bought (metric tons) (metric bought materials of Weight 5,892,035 5,892,035 4,638,581 4,638,581 200,969 200,969 548,334 173,630 173,630 180,142 180,142 62,323 62,323 30,521 30,521 57,536 57,536 1,006 1,006 5,076 5,076 373 373 162 162 Design rights registered at December 31, 2020 December at registered rights Design FCA worldwide (no.) Designs of which registered in 2020 in registered which of 2,219 2,219 100 100 128 2020 SUSTAINABILITY REPORT Supplemental Information Facts & Figures Customer ContactCenterPerformance Complaints: % cases settled within 5 business days call asingle in settled cases Information: Personnel (agents and supervisors) Hours of training personnel (no.) % of calls answered within 20 seconds 20 within answered calls % of Satisfaction index Complaints (scale 1-10) APAC data related to complaint cases settled refers to India. refers settled cases to complaint related APAC data APAC markets monitored through Customer Satisfaction Index are Japan, India and South Korea. LATAM markets monitored through Customer Satisfaction Index are Argentina, Brazil and Venezuela. EMEA markets monitored through Customer Satisfaction Index are 19 major markets. North America methodology for % complaint cases settled changed from business days to calendar days. North America markets monitored through Customer Satisfaction Index are U.S. and Canada; complaint/information score is aggregated based on methodology changes with launch of Salesforce. - Customers Satisfaction index Information (scale 1-10) Customers participating in satisfaction surveys Contacts managed (million) NORTH AMERICA 16,775 89.0% 79.0% 18.0% 39.3 75% 761 6.8 6.8 EMEA 83.4% 15.0% 61.9% 6,915 61% 427 6.9 4.6 7.9 LATAM 24,077 93.6% 81.7% 6.7% 53% 148 8.7 1.5 7.7 88.0% APAC 89.0% 9.0% 84% 630 9.0 9.0 0.1 24 129 2020 SUSTAINABILITY REPORT Supplemental Information Facts & Figures FCA worldwide (GJ) Direct andIndirect EnergyConsumption FCA worldwide (no.) Certified Plants Production Production OHSAS 18001 / ISO 45001 - Health and Safety and -Health 45001 /ISO 18001 OHSAS -Energy 50001 ISO 14001 -Environment ISO - Total energy consumption Other energy sources Other fuels Natural gas Total energy consumption Other energy sources Other fuels Natural gas Electricity Electricity - 2018 - 2019 Total energy consumption Other energy sources Other fuels Natural gas Electricity - 2020 Energy Certification andEnvironmental Expenditures - - - 35,575,019 15,793,057 15,163,523 45,345,387 41,900,273 19,200,530 3,940,936 18,970,928 20,201,447 17,792,217 1,008,986 4,934,424 4,214,083 7,03 677,50 923,045 FCA FCA FCA Assembly and and Assembly Assembly and and Assembly Assembly and and Assembly 23,828,203 27,398,430 15,933,589 29,199,780 10,339,489 501201,259,072 15,001,270 12,475,648 2,824,235 8,458,787 9,502,818 Stamping Stamping Stamping 2,821,176 2,821,176 105,526 69,533 73,166 2020 Transmissions Transmissions Transmissions Engines and Engines and Engines and Mass-Market Vehicles Mass-Market 5,194,914 Mass-Market VehiclesMass-Market Mass-Market VehiclesMass-Market 6,268,256 6,978,856 3,682,958 4,493,257 1,435,828 1,023,498 4,992,975 488,338 515,459 515,620 95 92 79 402 307 121 1,205,673 - FCA worldwide Environmental Expenditures Environmental expenditures (€ million) 1,392,003 1,363,501 of which prevention and environmental management costs management environmental and prevention which of costs remediation and treatment emissions disposal, waste which of 548,860 859,523 503,978 431,207 774,466 843,143 Casting Casting Casting ------1,233,626 1,214,907 989,424 638,604 558,382 354,353 172,855 172,855 281,622 341,637 149,421 719,134 12,063 Others Others Others ------Maserati Maserati Maserati 538,918 790,949 223,890 190,284 282,326 186,328 907,757 179,280 439,103 184,014 416,651 135,748 - - - 3,467,676 2,026,687 2,026,687 1,705,964 4,395,044 4,245,641 1,0 87,76 0 0 87,76 1,0 2,102,811 1,118,631 1,118,631 606,696 606,696 899,966 292,309 255,049 255,049 881,293 881,293 843,417 843,417 287,776 287,776 Teksid Teksid Teksid Other Activities Other Activities Other Activities 162,089 106,201 211,504 102,013 174,182 Comau Comau Comau 94,066 78,053 76,031 84,974 3,287 2,059 1,080 4 4 3 2020 Components Components Components 188,122 425,687 449,139 284,276 289,451 114,445 127,378 137,315 25,895 73,604 Plastic Plastic Plastic 25% 75% 4,096 6,415 99 72 - -
130 2020 SUSTAINABILITY REPORT Supplemental Information Facts & Figures FCA worldwide (GJ) Direct EnergyConsumptionbySource* * IPCC 2006 conversion factors used to calculate the direct energy consumption. Total direct energy consumption Renewable sources Total direct energy consumption Other (HS and LS fuel oil) fuel LS and (HS Other Renewable sources LPG Diesel Other (HS and LS fuel oil) fuel LS and (HS Other Coal LPG Diesel Natural gas Natural gas - - Coal Total direct energy consumption Renewable sources Other (HS and LS fuel oil) fuel LS and (HS Other LPG Diesel Coal Natural gas - 2020 2019 2018 16,472,372 15,793,057 19,894,863 21,213,003 18,970,928 20,201,447 556,099 782,302 815,865 123,391 52,988 68,416 64,850 75,894 69,729 1,813 FCA 2,570 FCA FCA 890 - - - Assembly and and Assembly Assembly and and Assembly and Assembly 12,545,181 15,074,436 15,933,589 16,039,115 501201,259,072 15,001,270 12,475,648 Stamping Stamping Stamping 102,171 70,251 67,545 3,355 1,988 2,915 ------Transmissions Transmissions Transmissions Engines and Engines and Engines and Mass-Market Vehicles Mass-Market 1,025,427 Mass-Market VehiclesMass-Market Mass-Market VehiclesMass-Market 1,260,265 1,438,796 1,023,498 1,435,828 1,809 2,567 886 402 307 121 ------774,466 859,523 843,143 859,523 774,466 843,143 Casting Casting Casting ------281,622 354,353 366,415 341,637 281,622 341,637 12,063 Others Others Others ------Maserati Maserati Maserati 179,280 282,326 190,284 190,284 282,326 179,280 ------1,506,663 1,999,924 1,931,178 , 77 0 87,76 1,0 1,118,631 899,966 556,099 782,302 815,865 50,597 65,428 Teksid Teksid Teksid 61,116 ------Other Activities Other Activities Other Activities 109,491 106,201 86,058 Comau Comau Comau 94,066 96,129 84,974 2,384 1,326 903 403 733 677 4 3 4 ------Components Components Components 133,792 73,677 141,411 127,378 137,315 73,604 Plastic Plastic Plastic 6,372 4,010 43 86 72 ------
131 2020 SUSTAINABILITY REPORT Supplemental Information Facts & Figures FCA worldwide (GJ) Indirect EnergyConsumptionbySource Total indirect energy consumption Total other sources energy Total other sources energy Total indirect energy consumption Other renewable sources Other renewable sources Other nonrenewable sources Total energy thermal Other nonrenewable sources Total energy thermal Renewable thermal energy Nonrenewable thermal energy Total electricity Renewable electricity Nonrenewable electricity Renewable thermal energy Nonrenewable thermal energy Nonrenewable electricity 2018 2019 Total electricity Renewable electricity Renewable electricity Nonrenewable electricity Other nonrenewable sources Other renewable sources Total indirect energy consumption Total other energy sources Total thermal energy Total electricity 2020 Renewable thermal energy Nonrenewable thermal energy - - - 19,102,647 15,161,792 2,931,824 1,009,031 12,692,882 24,132,384 22,005,410 16,288,928 19,197,966 17,791,494 2,468,911 2,931,824 14,816,418 3,698,224 2,909,038 1,086,751 3,698,224 1,236,194 1,049,663 2,975,076 3,127,165 1,196,524 3,127,165 979,473 29,558 39,670 7087 37,0 FCA FCA FCA - - - Assembly and and Assembly Assembly and and Assembly Assembly and and Assembly 11,283,022 12,323,994 8,458,787 10,339,489 2,103,980 13,757,062 2,559,731 9,502,818 9,258,689 1,080,800 2,057,651 8,443,524 1,059,294 2,559,731 2,103,980 , 57,651 2,0 Stamping Stamping Stamping 720,256 , 8,110 0 7,6 763,525 857,842 850,677 720,256 763,525 5, 42 857,8 ------Transmissions Transmissions Transmissions Engines and Engines and Engines and Mass-Market Vehicles Mass-Market ,8,2 431,207 3,681,227 4,169,487 Mass-Market VehiclesMass-Market Mass-Market VehiclesMass-Market 5,540,060 4,492,534 4,666,699 5,007,991 4,990,411 3,395,318 4,195,912 320,569 167,691 348,534 343,509 348,534 343,509 296,622 320,569 171,947 285,910 323,712 201,116 6, 91 167,6 171,947 201,116 ------431,207 548,860 548,860 503,978 503,978 548,860 503,978 431,207 Casting Casting Casting ------558,382 707,803 638,604 848,492 891,989 459,938 569,901 112,833 194,948 72,807 719,134 112,833 524,186 76,614 85,053 98,444 85,053 87,803 97,055 68,702 72,807 Others Others Others 7803 0 87,8 7055 97,0 76,614 ------Maserati Maserati Maserati 359,638 208,977 135,748 390,263 600,665 625,431 186,328 390,263 208,977 184,014 418,919 154,706 184,014 135,748 418,919 14,913 26,388 26,388 20,183 31,623 20,183 14,913 ------1,705,964 1,961,013 2,026,687 2,314,464 2,395,120 2,102,811 1,249,205 1,279,239 1,182,829 225,491 252,639 250,689 853,606 250,689 252,639 225,491 29,558 523,135 747,448 39,670 29,558 37,087 39,670 7087 37,0 Teksid Teksid Teksid ------Other Activities Other Activities Other Activities 102,013 102,013 76,031 76,031 Comau Comau Comau 78,053 78,053 63,396 26,857 42,869 38,617 35,184 49,174 ------Components Components Components 114,445 114,445 284,276 284,276 289,451 315,346 109,790 173,072 174,486 116,379 21,345 90,252 21,345 Plastic Plastic Plastic 24,193 4,550 4,550 ------
132 2020 SUSTAINABILITY REPORT Supplemental Information Facts & Figures * FCA reports direct CO direct reports * FCA * Not available. FCA worldwide Direct andIndirect EnergyConsumptionperUnit ofProduction the International Energy Agency at the end of 2020 and other regionally published factors such as the eGRID in the U.S. Emissions of greenhouse gases (GHGs) other than CO than other (GHGs) gases greenhouse of Emissions U.S. the in eGRID the as such factors published regionally other and 2020 of end the at Agency Energy International the ** Indirect emissions were calculated using the market-based method. emissions. GHG total Group’s FCA Plastic Components Comau Teksid (aluminum) Teksid (cast iron) Maserati Mass-market vehicle others Mass-market vehicle casting Mass-market vehicle engines and transmissions Mass-market vehicle assembly and stamping FCA worldwide (tons) CO Production - Direct emissions Indirect emissions** Direct emissions - 2018 - 2019 Total CO Total Indirect emissions** Total CO Total Direct emissions - 2020 Indirect emissions** Total CO Total 2 Emissions* 2 2 emissions emissions 2 emissions 2 emissions based on direct energy consumption with the aid of the IPCC 2006 conversion factors. We report indirect CO CO 2 Emissions - - -- 2,913,217 2,035,614 3,485,808 3,737,938 2,608,670 1,058,367 1,129,268 2,427,441 7, 3 0 877,6 2020 vs 2010 2010 vs 2020 up to -40% to up FCA FCA FCA Target Target -30% -40% -40% -30% -25% -21% -15% n.a.* -0%
Assembly and and Assembly Assembly and and Assembly and Assembly 1,861,595 2,264,041 1,338,495 1,444,096 2,107,818 Stamping Stamping Stamping 1,216,151 645,443 769,323 819,945 2020 vs 2010 up to -42% to up Result -32% -42% -22% -21% 19% 13% -8% -3% Transmissions Transmissions Transmissions 2% Engines and Engines and Engines and Mass-Market Vehicles Mass-Market Mass-Market VehiclesMass-Market VehiclesMass-Market
592,750 809,578 752,595 540,061 - 735,671 687,777 52,689 73,907 64,817 2020 33.96 33.48 16.00 10.96 10.60 0.27 0.91 6.78 0.18 112,484 94,546 117,353 Casting Casting Casting 43,006 39,068 42,203 69,477 55,479 75,150 2 emissions according to the standards and guidance outlined in the GHG Protocol and use the emissions factors updated by by updated factors emissions the use and Protocol GHG the in outlined guidance and standards to the according emissions - 2019 65,460 94,660 78,204 18,866 50,931 60,782 75,794 Others Others Others 14,529 17,423 42.81 34.75 14.49 10.18 6.09 0.83 8.32 0.20 0.19 2 have a negligible impact and are therefore not included. CO included. not therefore are and impact a negligible have -- - - - Maserati Maserati Maserati 2018 47,564 66,237 55,562 58,637 15,839 10,057 74,476 10,675 37,507 35.86 25.76 17.75 0.84 0.20 0.20 9.64 6.07 . 0 7.6 - 224,849 310,887 106,844 139,560 172,294 118,005 144,784 317,078 171,327 Teksid Teksid Teksid (base year) year) (base Other Activities Other Activities Other Activities 28.53 49.57 10.92 27.76 2010 0.90 0.34 0.23 9.68 7.34 2 represents more than 99% of the the of 99% than more represents - 11,060 14,661 11,500 Comau Comau Comau 6,086 4,840 8,489 6,220 5,414 6,172 Unit of Measurement MJ/hour of production GJ/hour of production GJ/hour of production GJ/vehicle produced GJ/vehicle produced GJ/unit produced GJ/unit produced GJ/ton produced GJ/ton produced Components Components Components 15,393 46,084 46,091 38,540 37,935 11,260 Plastic Plastic Plastic 4,134 8,149 7,551
133 2020 SUSTAINABILITY REPORT Supplemental Information Facts & Figures FCA worldwide (tons) Location-Based CO FCA worldwide Electricity from RenewableSources FCA worldwide CO Comau Mass-market vehicle assembly and stamping Comau Teksid (aluminum) Mass-market vehicle others Mass-market vehicle casting Total CO Total Indirect emissions Direct emissions Plastic Components Mass-market vehicle others Mass-market vehicle casting Mass-market vehicle engines and transmissions Mass-market vehicle assembly and stamping - * Not available. Teksid Teksid - Teksid (cast iron) Mass-market vehicle engines and transmissions Maserati Plastic Components FCA Average FCA Average Maserati 2 EmissionsperUnitofProduction 2 emissions 2 Emissions 2020 vs 2010 up to -40% to up 2020 Target Target 2,861,513 -30% -40% -32% -35% -35% 1,983,910 -24% -15% n.a.* 7, 3 0 877,6 -
2020 vs 2010 up to -60% to up Result -60% -40% -59% -42% -10% -16% -14% 63% 16% 2019 2020
3,445,600 - 1,058,367 2,387,232 2020 16.3% 35.3% 69.3% 17.6% 10.1% 21.1% 7.8% - - 0.015 3.00 0.80 0.83 0.53 0.02 1.34 1.09 0.10 CO FCA worldwide (tons) Total CO Total Indirect emissions Direct emissions 2 Emissionsfrom Non-manufacturingActivities - 2 emissions 2019 2019 0.021 0.96 0.84 0.69 3.59 0.45 0.01 1.43 0.10 16.7% 38.6% 63.1% 45.1% 27.1% 11.1% 6.6% - - - 2018 0.021 0.09 0.64 0.02 0.46 1.50 1.23 0.79 2.11 2018 - (base year) 15.2% 40.2% 10.8% 59.4% 10.5% 37.9% 17.0% 6.5% 0.025 - 2010 3.35 0.99 tons of CO of tons 0.99 0.03 0.69 0.61 1.84 2.67 0.12 tons of CO of tons tons of CO of tons 2020 - tons of CO of tons tons of CO of tons kg of CO kg of tons of CO of tons tons of CO of tons tons of CO of tons Unit of Measurement 2010 2 2 2 /hour of production /hour of production /hour of production 2 2 /vehicle produced /vehicle produced 2 2 2 2 /unit produced /ton produced /ton produced /ton produced 364,365 237,549 126,816 19.7% 53.9% 18.0% 0.9% 9.3% 9.0% - - - 134 2020 SUSTAINABILITY REPORT Supplemental Information Facts & Figures FCA worldwide (tons of trichlorofluoromethane equivalent - CFC-11e) Presence ofOzoneDepletingSubstancesinEquipment Production Halons Total Other CFCs fully halogenated Methyl bromide Halons Methyl bromide Total Other CFCs fully halogenated HCFCs HCFCs CFCs CFCs - 2018 - 2019 Total Other CFCs fully halogenated Methyl bromide HCFCs CFCs Halons - 2020 Other ManufacturingEmissionsandImpacts - - - FCA 3.3 3.3 3.2 3.2 FCA FCA 0.1 2.6 2.6 2.6 2.6 0.1 3.8 0.2 3.5 0.1 ------Assembly and and Assembly and Assembly and Assembly Stamping Stamping Stamping 3.0 2.0 3.0 0.2 3.0 2.8 2.0 0.1 ------Transmissions Transmissions Transmissions Engines and Engines and Engines and Mass-Market Vehicles Mass-Market Mass-Market VehiclesMass-Market VehiclesMass-Market 0.5 0.4 0.5 0.4 ------Casting Casting Casting 0.1 0.1 0.1 0.1 ------Others Others Others 0.2 0.2 0.2 0.2 0.2 0.2 ------Maserati Maserati Maserati ------Teksid Teksid Teksid ------Other Activities Other Activities Other Activities Comau Comau Comau ------Components Components Components Plastic Plastic Plastic ------
135 2020 SUSTAINABILITY REPORT Supplemental Information Facts & Figures FCA worldwide (g/m Emissions ofVolatile OrganicCompounds(VOC)perUnitofProduction FCA worldwide (tons) Emissions ofDust* FCA worldwide (tons) Emissions ofNitrogen Oxides(NOx)* Plastic Components Teksid Comau Maserati Mass-market vehicle others Mass-market vehicle engines and transmissions Maserati Mass-market vehicle others Mass-market vehicle casting Maserati Mass-market vehicle others Mass-market vehicle casting Mass-market vehicle assembly and stamping Plastic Components Comau Teksid Plastic Components Comau Teksid * Not applicable because no painting activities in the process. the in activities painting no because applicable * Not * Estimated emissions based on direct fuel consumption. Total dust emissions Mass-market vehicle engines and transmissions Mass-market vehicle assembly and stamping - * Estimated emissions based on direct fuel consumption. Total NOx emissions Mass-market vehicle casting Mass-market vehicle engines and transmissions Mass-market vehicle assembly and stamping - FCA average VOC emissions VOC average FCA - 2 ) 2020 2020 974 692 134 52 33 33 59 21 10 16 13 1 2 9 3 - - - 2020 vs 2010 up to -68% to up 2019 2019 Target Target 1,168 -68% -25% -10% -19% 822 166 n.a.* n.a.* n.a.* -0% 66 18 41 20 23 37 73 17 11 1 3 3 - - -
2018 2018 1,263 2020 vs 2010 892 172 up to -95% to up 69 80 36 43 33 20 19 16 13 1 3 4 - - - Result -63% -63% -48% -95% -29% n.a. n.a. n.a. * Estimated emissions based on direct fuel consumption. Mass-market vehicle engines and transmissions Mass-market vehicle assembly and stamping - FCA worldwide (tons) Emissions ofSulfurOxides(SOx)* Total VOC emissions Mass-market vehicle assembly and stamping - FCA worldwide (tons) Emissions ofVolatile OrganicCompounds(VOC) Total SOx emissions Mass-market vehicle engines and transmissions Mass-market vehicle casting Mass-market vehicle casting Mass-market vehicle others Mass-market vehicle others Teksid Teksid Maserati Maserati Comau Comau Teksid Plastic Components Plastic Components
2020 23.1 20.6 23.1 74.1 2.7 7.3 - - - 2019 23.1 23.2 35.5 20.7 13.4 21.5 - - - 2020 2020 9,456 9,367 2018 86 86 89 81 3 - - - 7 1 ------24.2 38.9 24.2 20.7 12.7 24.1 2019 2019 - - - 12,406 12,316 120 120 124 61 21 4 ------8 1 - - - (base year) year) (base 2018 2018 13,895 14,075 198.5 125 125 2010 130 33.2 148 55.3 52.3 32.4 14.1 21 5 - - - - - 9 2 ------
136 2020 SUSTAINABILITY REPORT Supplemental Information Facts & Figures FCA worldwide (thousands of m Water Withdrawal*andDischarge** ** In addition to any legal requirements, FCA regularly measures and analyzes certain heavy metals in its wastewater when present in the manufacturing process, such as nickel (Ni), zinc (Zn), lead (Pb), cadmium (Cd) and copper (Cu). These analyses provide a provide analyses These (Cu). 2020. in copper and recorded (Cd) was cadmium (Pb), lead (Zn), non-compliance of zinc (Ni), nickel incident as No such limits. process, legal below well levels manufacturing the in to maintain present when quality water on wastewater its in impact FCA’s of metals overall view heavy certain comprehensive analyzes and measures regularly FCA requirements, legal to any addition In ** freshwater. as considered is water discharged and withdrawn * FCA Production Discharge Discharge Total water withdrawal Other Other water Surface Municipal water supply Total water withdrawal Surface water Surface Withdrawal Other destinations Other Public sewer systems Total water consumption discharge water Total Municipal water supply Withdrawal Total water discharge water Total destinations Other Public sewer systems Surface water Surface Groundwater - 2018 Surface water Surface Groundwater - 2019 Total water discharge water Total Other destinations Other Total water consumption water Total Withdrawal Public sewer systems Surface water Surface Groundwater Total waterwithdrawal Discharge 2020 - Municipal water supply Other Surface water Surface Water 3 ) ------10,544 15,751 13,277 18,816 13,520 5,207 11,705 5,540 21,651 10,358 3,958 4,889 9,292 3,737 2,722 15,517 17,167 7,810 FCA 2,233 4,576 5,511 300 405 FCA FCA 450 173 27 12 3 8 ------Assembly and and Assembly Assembly and and Assembly Assembly and and Assembly Stamping Stamping Stamping 11,211 13,535 15,281 12,079 3,338 10,114 10,717 7,873 3,669 9,866 2,008 8,301 2,628 6,678 1,646 9,077 1,867 , 94 7,9 2,815 1,191 169 167 120 191 218 5 6 6 ------Transmissions Transmissions Transmissions Engines and Engines and Engines and Mass-Market Vehicles Mass-Market Mass-Market VehiclesMass-Market Mass-Market VehiclesMass-Market 1,473 2,152 2,559 1,552 1,007 2,658 1,836 2,037 3,127 4,191 1,501 2,146 679 668 994 466 653 799 552 314 410 3 6 3 6 2 ------Casting Casting Casting 229 235 263 301 267 195 219 170 65 82 73 6 5 1 9 3 1 4 2 7 ------Others Others Others 328 190 518 206 288 328 468 2 252 136 144 219 131 68 69 82 59 61 75 16 51 11 1 ------Maserati Maserati Maserati 133 167 234 243 234 105 101 133 102 131 111 34 63 65 42 27 74 4 ------1,327 Teksid Teksid Teksid 2,228 1,881 1,495 2,104 1,443 2,190 1,470 1,701 1,012 838 489 386 799 225 180 135 197 179 214 39 52 37 1 ------Other Activities Other Activities Other Activities Comau Comau Comau 48 48 54 62 43 39 52 70 42 27 21 31 10 13 12 41 17 ------Components Components Components Plastic Plastic Plastic 198 120 119 119 30 62 92 86 63 54 33 92 29 77 67 25 25 5 3 ------
137 2020 SUSTAINABILITY REPORT Supplemental Information Facts & Figures Teksid (cast iron) Mass-market vehicle engines and transmissions FCA Maserati Mass-market vehicle assembly and stamping Comau Teksid (aluminum) Mass-market vehicle others Plastic Components - FCA worldwide (m Water WithdrawalperUnitofProduction FCA worldwide (thousands of m Surface water Surface water Surface Municipal water supply Groundwater Withdrawal - Total water consumption water Total destinations Other Public sewer systems Discharge Total waterwithdrawal Other Total water discharge water Total Mass-market vehicle casting Water WithdrawalandDischargeinWater Stressed Areas 3 /unit of production) 3 ) - - 2020 vs 2010 up to -77% to up 2020 Target Target -40% -50% -50% -50% -52% -77% -15% -15% -11% 4,591 2,077 2,514
2,262 2,329 1,434 1,071 9 - - - - 2020 vs 2010 up to -79% to up Result -63% -30% -36% -43% -67% -25% -79% 37% 2019 0%
- 2,262 5,421 2,397 3,024 3,159 1,677 1,471 2020 11 - - 31.9 3.2 5.5 2.2 0.4 4.6 0.1 0.1 2.1 - 2019 45.4 5.2 0.3 3.0 5.7 1.9 1.6 0.1 - - 2018 50.1 5.8 5.6 0.4 1.8 1.6 3.1 0.1 - - (base year) 154.3 2010 14.7 14.1 3.2 5.0 0.7 0.1 0.1 2.1
- Unit of Measurement m m m m L/hour ofL/hour production 3 3 /hour of production /hour of production 3 3 /vehicle produced /vehicle produced m m m m 3 3 3 3 /unit produced /ton produced /ton produced /ton produced 138 2020 SUSTAINABILITY REPORT Supplemental Information Facts & Figures * Water withdrawals and water discharges representing more than 5% of the average annual volume of the water body concerned. body water the of volume annual average 5% the of than more representing discharges water and withdrawals * Water FCA worldwide Water Resources SignificantlyAffected by Water Withdrawaland/or Discharge atPlants FCA worldwide (thousands of m Water RecyclingIndex and Activity Plant Location Component Plant Teksid Carmagnola (Italy) Recycling Index (%) Index Recycling Total water requirement Total water requirement - 2019 Recycling Index (%) Index Recycling Recycling Index (%) Total water requirement - 2018 - 2020 of which covered by recycling by covered which of of which water withdrawal water which of recycling by covered which of withdrawal water which of of which water withdrawal water which of recycling by covered which of 3 ) Gora del Naviglio river 3.5 million m (Name and Size - - - Water Source in m in 1,766,034 2,340,351 2,318,700 2,318,700 2,220,110 2,201,293 1,750,284 3 /Year) 3 21,651 21,651 /year 18,816 15,751 FCA 99.1 99.1 99.1 FCA FCA 99.2
Assembly and and Assembly and Assembly and Assembly Process water effluent water Process 1,320,250 1,710,990 1,710,990 1,695,709 1,695,709 1,668,672 1,309,039 1,655,136 Stamping Stamping Stamping 15,281 15,281 13,535 11,211 99.2 99.1 99.1 99.2 Transmissions Transmissions Transmissions Use Mass-Market Vehicles Mass-Market Engines and Engines and Engines and Mass-Market VehiclesMass-Market VehiclesMass-Market 292,165 439,052 439,052 435,925 435,925 386,953 389,512 290,013 3,127 3,127 2,559 2,152 99.3 99.3 99.3 99.3 Water Body Water 109,308 Protected Protected 117,055 117,055 116,754 116,754 109,073 116,470 116,203 Casting Casting Casting 99.8 99.7 99.7 99.8 301 301 235 267 no
28,231 30,924 30,924 30,597 29,814 29,527 Others Others Others 27,713 98.9 98.9 98.2 Value Water Body Water Value High Biodiversity 99.0 328 328 288 518 - - - Maserati Maserati Maserati 13,160 no 17,374 17,374 11,334 12,993 17,131 17,131 11,229 98.6 98.6 98.7
99.1 243 243 105 167 Withdrawal* 4,338 4,338 2,772 Teksid Teksid Teksid 2,233 2,233 2,104 2,104 4,027 1,445 1,881 1,327 2,146 51.5 51.5 52.1 53.3 Water Water Other Activities Other Activities Other Activities no Comau Comau Comau 70 70 70 70 48 62 48 62 ------Discharges* Components Components Components 20,548 20,548 20,350 20,350 Water Water Plastic Plastic Plastic 99.0 99.0 18% 45.4 198 198 100 218 8.0 119 99 92 8
139 2020 SUSTAINABILITY REPORT Supplemental Information Facts & Figures * No waste transported under the terms of the Basel Convention. Basel the of terms the under transported waste * No FCA worldwide (tons) Waste GenerationandManagement Production Total waste generated Waste to treatment Hazardous waste to treatment Nonhazardous waste to treatment Waste to landfill to Waste Hazardous waste to landfill Nonhazardous waste to landfill Waste recovered Hazardous waste recovered Nonhazardous waste recovered Nonhazardous waste recovered - 2018 Hazardous waste recovered - 2019 Nonhazardous waste to treatment Hazardous waste to landfill Waste recovered Waste to treatment Hazardous waste to treatment Nonhazardous waste to landfill Waste to landfill to Waste Total waste generated Waste to treatment to Waste Nonhazardous waste to treatment Total waste generated* Hazardous waste to treatment Waste to landfill Hazardous waste to landfill Waste recovered Nonhazardous waste to landfill Hazardous waste recovered Nonhazardous waste recovered - 2020 Waste - - - 493,630 493,630 138,885 635,875 635,875 478,060 478,060 138,492 138,492 806,396 594,880 594,880 205,372 205,372 204,887 575,696 575,696 238,854 15,569 15,569 626,736 3,360 3,360 75 3 07,50 6 875,170 237,742 2,292 2,292 1,068 1,068 19,184 19,184 19,233 2,558 2,558 3,587 3,587 6,145 6,145 FCA 9,581 5,827 3,754 393 393 1,112 FCA FCA 485 485 Assembly and and Assembly Assembly and and Assembly Assembly and and Assembly Stamping Stamping Stamping 290,265 306,747 353,396 408,096 334,331 390,231 279,232 321,305 14,328 377,735 16,343 13,885 13,323 13,026 12,496 11,033 2,154 14,170 16,110 3,981 2,723 1,900 1,848 2,081 1,429 233 561 725 158 874 Transmissions Transmissions Transmissions Engines and Engines and Engines and Mass-Market Vehicles Mass-Market Mass-Market VehiclesMass-Market Mass-Market VehiclesMass-Market 58,016 56,181 89,404 86,451 53,496 74,548 77,931 70,618 81,641 2,262 3,930 2,216 2,685 1,204 1,057 1,237 4,810 1,122 896 939 808 989 737 607 679 133 130 979 131 217 Casting Casting Casting 245 106 139 293 430 559 430 109 106 184 109 184 129 139 129 ------30,685 31,408 40,573 39,645 41,205 Others Others Others 29,716 6,622 5,941 7,517 651 530 969 530 725 928 681 102 102 725 651 170 72 94 76 71 1 ------Maserati Maserati Maserati 1,555 1,565 3,339 3,062 1,238 1,250 1,316 2,741 990 239 322 276 248 197 10 79 12 7 3 5 7 ------226,365 122,965 103,292 326,237 223,507 138,349 133,949 359,778 223,086 187,377 122,861 102,789 133,516 187,258 137,734 Teksid Teksid Teksid 2,321 2,269 108 339 503 433 104 421 107 615 511 172 119 53 1 Other Activities Other Activities Other Activities Comau Comau Comau 1,121 1,118 2,006 1,844 1,851 2,018 1,043 1,827 1,720 179 124 75 12 11 3 7 3 6 1 1 ------Components Components Components 10,408 10,395 10,330 Plastic Plastic Plastic 3,984 4,232 4,459 3,499 3,812 3,672 396 456 475 419 313 313 11 65 24 18 11 2 2 ------
140 2020 SUSTAINABILITY REPORT Supplemental Information Facts & Figures Comau Plastic Components Maserati Teksid (aluminum) FCA Plastic Components Mass-market vehicle others Mass-market vehicle casting Mass-market vehicle engines and transmissions Mass-market vehicle assembly and stamping Teksid (cast iron) FCA * Not available. FCA worldwide Hazardous Waste GeneratedperUnitofProduction * Not available. - FCA worldwide - Mass-market vehicle assembly and stamping Comau Teksid (aluminum) Maserati Waste GeneratedperUnitofProduction Mass-market vehicle casting Mass-market vehicle engines and transmissions Teksid (cast iron) Mass-market vehicle others 2020 vs 2010 2020 vs 2010 up to -34% to up up to -75% to up Target Target Target Target -30% -30% -57% -54% -34% -25% -25% -75% -21% -17% -17% -12% -14% n.a.* n.a.* n.a.* n.a.* -8%
2020 vs 2010 2020 vs 2010 up to -92% to up up to -99% to up Result Result 227% 247% -83% -56% -60% -59% -92% -92% -99% -44% -65% -52% -29% -73% -71% 33% n.a. n.a.
- - 2020 2020 3.6 3.6 87.7 87.7 10.2 0.3 8.0 5.6 0.6 51.4 2.4 10.1 0.1 7.6 885 598 109 8.3 2.2 - - - 2019 2019 10.5 10.9 13.7 13.7 78.5 78.5 0.2 0.2 0.3 0.3 3.4 3.4 0.7 1.9 1.9 10.4 67.7 154 972 476 6.5 1.8 1.9 - - - 2018 2018 15.7 83.3 83.3 9.3 9.3 0.4 2.0 2.0 6.7 6.7 0.7 3.1 3.1 0.1 10.7 77.2 983 659 167 1.2 3.1 2.1 - - - (base year) (base year) 100.0 32.7 32.7 14.2 14.2 217.2 217.2 1,250 179.0 147.2 2010 2010 8.2 8.2 0.8 0.8 5.8 5.8 2.3 2.3 21.3 450 370 2.4 3.1 - - - - Unit of Measurement Unit of Measurement kg/hour of production kg/hour of production kg/hour of production kg/hour of production g/hour of production g/hour of production kg/vehicle produced kg/vehicle produced kg/vehicle produced kg/vehicle produced kg/unit produced kg/unit produced kg/ton produced kg/ton produced kg/ton produced kg/ton produced kg/ton produced kg/ton produced 141 2020 SUSTAINABILITY REPORT Supplemental Information Facts & Figures Plastic Components Teksid FCA Comau Maserati Mass-market vehicle others Mass-market vehicle casting Mass-market vehicle engines and transmissions Mass-market vehicle engines and transmissions Plastic Components Mass-market vehicle others Mass-market vehicle assembly and stamping - generated) waste of out to landfill sent (waste worldwide FCA Waste toLandfill FCA Mass-market vehicle casting Mass-market vehicle assembly and stamping - generated) waste of out recovered (waste worldwide FCA Recovery ofWaste Teksid Maserati Comau 2020 Target 2020 Target up to 98% to up up to 0% to up 90% 96% 98% 95% 95% 95% 45% 70% 91% 0% 0% 2% 2% 3% 1% 1% 2020 2020 up to 99.9% to up up to 0% to up 96.8% 99.9% 45.6% 54.3% 94.6% 56.7% 99.7% 99.4% 97.7% 0.0% 0.0% 0.0% 0.0% 4.7% 1.6% 2.1% - - 2019 2019 99.0% 98.5% 99.6% 94.6% 95.7% 62.7% 42.4% 90.1% 57.4% 0.0% 0.0% 0.0% 0.0% 4.6% 1.3% 1.4% - - 2018 2018 95.6% 96.7% 76.9% 99.4% 89.4% 37.2% 91.7% 88.1% 62.1% 0.0% 0.0% 0.0% 0.0% 0.8% 9.6% 3.4% - - 2010 2010 93.2% 98.9% 66.0% 94.0% 84.6% 84.6% 82.6% 10.4% 19.7% 14.7% 80.1% 6.2% 0.0% 3.5% 4.4% 1.1% 142 2020 SUSTAINABILITY REPORT Supplemental Information Facts & Figures Vehicle Component plant Jaboatão dos Guararapes (Brazil) Engine and Transmission plant Campo Largo (Brazil) Assembly and Stamping plant Cordoba (Argentina) Assembly and Stamping plant (Brazil) Goiana Verrone (Italy) Verrone and Transmission plant Engine ** FCA reports only on locations or production sites included in protected areas or that have an active biodiversity project in their respective areas. respective their in project not is that area biodiversity an is active an value have that or areas biodiversity high protected in of area An included sites objectives. production or conservation locations on specific only achieve to reports FCA ** managed or regulated designated, is that area defined ageographically etc.) is oasis, subject zone, to legal protection, protection but is recognized by governmental special and non-governmental organizations for its importance, significant EU or biodiversity. FCA reported national no significant direct or indirect regional, impacts of (site on biodiversity. area * Aprotected Plants Near, Bordering orWithinProtected orHighBiodiversityAreas* Production and Activity Plant Location
Biodiversity Conservation
0.1 1.2 3.9 3.0 1.8 (km Surface 2 ) 41 Unrated 41 listed: -41 species Flora 87 Not Threatened 87 Not 1 Critically Endangered; listed: species -88 Fauna 41 Threatened Not Species; 8 Exotic Species; 2 Rare 3 Endangered; listed: species -54 Flora 52 Least Concern 52 Least 5 Near Threatened; 3 Vulnerable; listed: species -60 Fauna Concern Least 43 2 Near Threatened; 3 Vulnerable; 1 Endangered; listed: species -49 Flora 26 Unrated Unrated 26 1 Introduced; 14 Threatened; Not Concern; Least 33 2 Near Threatened; 22 Vulnerable; 10 Endangered; listed: -108 species Fauna 25 threatened listed: -25 species Flora 38 Least Concern Least 38 2 Near Threatened; 2 Vulnerable; 2 Endangered; listed: species -44 Flora Species Present Conservation List Species/National List Red IUCN
0 0 3 56 0 (thousand €) Investment (fauna and flora) present in our plant. our in present flora) and (fauna - game that teaches about the immensity of species Biodiversus the created we this For plan. awareness environmental our continue that tools and methods with to innovate need we pandemic, the With pollination (year 2020). to increase bees native of breeding and Capture • • Project: 2020 Activities carried out under the Biodiversity • • • as part of our Education Program. Education our of part as schools local by park biodiversity and nursery plant, to visits weekly Conducted corridor. ecological an creating planted, were seedlings native 100,000 than seedlings yearly. Through 2020, cumulatively more seedlings, with production of approximately 16,000 native of anursery Established Norte). Mata da (Zona flora and fauna forest Atlantic on research Historical apiary forapiary indirect air quality monitoring. and recovery wastewater for system purification Biodiversity conservation activities and use of phyto- Action Taken
green sitesoftheplant) trees (inRecreational NaturalReserveandother 60 primaryandsecondaryschools. supplied from ourecological island the greenhouse toanursery, withrecycled material V Start-up offillingthelagoons In theRecr For Gr irtual trainingandawareness raisingtomore than eenhouse Construction estation withnativespecies-more than350 eational Nature Reserve,extensionof No Yes Yes Yes Yes Monitoring Independent (less than 5km) than (less to plant Adjacent (less than 5km) than (less to plant Adjacent (less than 5km) than (less to plant Adjacent (less than 5km) than (less to plant Adjacent Within plant complex to Plant** Area Relative Protected 143 2020 SUSTAINABILITY REPORT Supplemental Information Facts & Figures Energy consumption (GJ) consumption Energy Total waterwithdrawal CO Total energy consumption Electricity Other LPG Municipal water supply Surface water Surface Total waste generated (tons) generated waste Total Water withdrawal (m withdrawal Water Diesel Natural gas Groundwater 2020 FCA worldwide Environmental ImpactsofPDCsthathaveImplementedWorld ClassLogistics of which renewables (%) renewables which of of which waste recycled (%) recycled waste which of 2 emissions (tons) 3 ) - - Center Line (U.S.) (U.S.) Line Center 83,382 25,918
30,218 25,918 53,164 8,902 1,059 PDC 78% ------PDC and Paint Shop Paint and PDC Marysville (U.S.) (U.S.) Marysville 113,636 44,914 11,589 53,409 60,227 44,914 1,319 81% ------None & Volvera (Italy) (Italy) &Volvera None [ SDGs 12] 166,373 138,608 92,293 92,293 92,293 27,619 27,619 7,777 PDCs 100% 99% 99% 606 146 - - - - 144 2020 SUSTAINABILITY REPORT Supplemental Information Facts & Figures AMERICA NORTH 71% EMEA 22% Responsible Sourcing FCA Purchasing worldwide Value ofDirect MaterialPurchases byDestination FCA Purchasing worldwide Value ofDirect MaterialPurchases from LocalSuppliers SUPPLIERS LOCAL 91% AMERICA NORTH OUTSIDE THEREGION SUPPLIERS LOCATED 9% LATAM 7% FCA Purchasing worldwide Value ofDirect MaterialPurchases byOrigin EMEA 40% APAC 22% SUPPLIERS LOCAL 88% OUTSIDE THEREGION SUPPLIERS LOCATED 12% LATAM LATAM 2% AMERICA NORTH 36% FCA Purchasing worldwide Value ofDirect MaterialPurchases byType SUPPLIERS LOCAL 96% ENGINE SYSTEMS CHASSIS AND 24% POWERTRAIN 23% EMEA OUTSIDE THEREGION SUPPLIERS LOCATED 4% MATERIALS BODY ANDRAW 25% AND ELECTRICAL INTERIOR 28% 145 2020 SUSTAINABILITY REPORT Supplemental Information Facts & Figures * Number of questionnaires refers to Suppliers' top organization level. 2020 data refers to the new platform and questionnaire adoption. (%) suppliers responding by covered value by Purchases Suppliers responding to questionnaire (%) Suppliers who were requested to provide the self-assessment questionnaires (no.)* - FCA Purchasing worldwide Average Score byModule Supplier SustainabilitySelf-AssessmentResults Supplier SustainabilitySelf-AssessmentResults Average score 0% 20% 40% 60% 80% 100% Material Sourcing Responsible Raw Ethics Working Conditions and Human Rights Health and Safety and Health Management Supplier Environment 2020 66/100 1,267 1,267 48 48 2019 78/100 2,088 54 62 2018 81/100 2,032 2,032 38 74 146 2020 SUSTAINABILITY REPORT Supplemental Information Facts & Figures *Considering previous years' audit coverage, difficulties due to COVID-19 pandemic and new platform adoption, we did not perform audits in 2020. in audits perform not did we adoption, platform new and COVID-19pandemic to due difficulties coverage, audit years' previous *Considering FCA Purchasing worldwide Audit Results* Performed by FCA personnel (Supplier Quality Engineers) Sustainability audits (no.) - Purchases by value covered by audits (%) audits by covered value by Purchases party athird by Performed 2019 46 57 15 11 2018 88 83 5 7 2017 34 48 14 3 147 2020 SUSTAINABILITY REPORT Supplemental Information Definitions, Methodology and Scope of the requirements from the Task Force on Climate-Related Financial Disclosures (TCFD) are also embedded within this Report. the from Taskof the requirements within this Report. embedded also (TCFD) are Disclosures Force Financial on Climate-Related Elements ISO26000. the and (SASB) Board Standards Accounting Sustainability the as such frameworks additional of time, first the for adoption, the marks provide a comprehensive stakeholders picture of FCA and commitments activities, results in the economic, this environmental spheres and social edition (4) (3) (2) (1) or services. References to"customer"asusedinthisReportrefer totheenduserofourproducts businesses thatare notoperatingsegmentsunderIFRS8– OperatingSegments. business andourcastiron andaluminumcomponentsbusiness,aswelltheactivities Other activitiesincludetheresults ofourindustrialautomationsystemsdesignandproduction Maserati brand. Hills(U.S.),Betim(Brazil),Shanghai(China)andinModena(Italy)forthe (Italy), Auburn no otherchangeswere made tothesegment.Regionalheadquartersare locatedinTurin the UnitedStates-Mexico-CanadaAgreement (USMCA).Otherthanthechangeofname, NAFTA segmentwasrenamed NorthAmerica inresponse totheexpectedratificationof Maserati global luxury brand operating segment. During 2019, our previously reported LATAM (SouthandCentral America)andAPAC (AsiaandPacificcountries)the Middle EastandAfrica),NorthAmerica(U.S.,Canada,Mexico and CaribbeanIslands), include fourregional mass-marketvehicleoperatingsegments:EMEA(Europe, Russia, for making strategic decisions and allocating resources and assessing performance. They refer to thesegments of the Group that are regularly reviewed by the Chief Executive Officer LLC, togetherwithitsdirect andindirect subsidiaries. References to“operatingsegment” Fiat ChryslerAutomobilesN.V., or“FCANV”).References to“FCAUS”refer toFCAUS Investments N.V. onOctober12,2014(atwhichtimeFiatInvestmentsN.V. wasrenamed and its predecessor prior to the completion of the merger of Fiat S.p.A. with and into Fiat “Company” and“FCA”refer toFiatChryslerAutomobilesN.V., togetherwithitssubsidiaries In this Report, unless otherwise specified, the terms “we”, “our”, “us”, the “Group”, the DEFINITIONS This appendixprovides amethodologyguide. The Sustainability Report, now in its 17 its now in Report, Sustainability The Data was not considered material, and was thus not reported, for 5 plants in start-up or closing phase and for 9 plants small and/or operated by external companies or companies insourced in recent years. recent in insourced companies or companies external by operated and/or small 9plants for and phase closing or start-up in 5plants for reported, not thus was and material, considered not was Data Revenues attributable to activity of plants directly controlled by the Group. All employees located at a particular site, including workers assigned to manufacturing, other associated units (quality control, logistics, etc.) and to research and development. and to research etc.) and logistics, control, (quality units associated other to manufacturing, assigned workers including site, aparticular at located employees All Data was not considered material, and was thus not reported, for 5 plants in start-up or closing phase and for 9 plants small and/or operated by external companies or companies insourced in recent years. recent in insourced companies or companies external by operated and/or small 9plants for and phase closing or start-up in 5plants for reported, not thus was and material, considered not was Data Definitions, MethodologyandScope th edition, is a voluntary document issued by the Group according to GRI Sustainability Reporting Standards. To Standards. Reporting Sustainability to GRI according Group by the issued document avoluntary is edition, • individuals orentities responsible foreach aspectworldwide. for certainindicators,usingelectronic databasesorfiles populateddirectly by the monitoring ofsustainabilityperformance. Adedicatedreporting process wasestablished systems, where available,inorder toensure reliability ofinformationflows andthecorrect Data is collected and reported with the aid of existing management control and information DATA, RESTATEMENT ROUNDING AND • because oftheirsignificantenvironmental andsocialimpacts.Inparticular: In somecases,unconsolidatedjointventures were includedinthescopeofreporting entities orproduction activitiesthatare notyetfullyoperational. immateriality inrelation totheGroup asawhole,may bethecasefornewly-acquired of reporting is attributable to the inability to obtain data ofsatisfactory quality, or to its The exclusionofanygeographicalarea, Group company, orspecificsitefrom thescope falling withinthescopeofconsolidationatDecember31,2020. The informationanddataincludedinthisReportrelate toFCAlegalentitiesworldwide and thecombinedcompanywasrenamed StellantisN.V.. Automobiles N.V. (“FCA”or“FCAN.V.”) withFCAasthesurvivingcompanyinmerger, On January16,2021,PeugeotS.A.(“PSA”)mergedwithandintoFiatChrysler SCOPE AND BOUNDARYSCOPE AND
approximately 98% of plant workers), CO plants ofunconsolidatedjointventures, includingoneinTurkey andthree inChina.Additional plants D Turkey andthree inChina Group employees),andtofourplantsofunconsolidatedjointventures, includingonein (including officesandwarehouses), D ata on manufacturing environmental and energy performance refers to 95 of the 109 ata on occupational health and safety relates to 95 of the 109 plants 2 emissions data has been provided in a separate table for non-manufacturing facilities emissions datahasbeenprovided inaseparatetablefornon-manufacturingfacilities (3) respectively (coveringnearly 100%oftheGroup’s industrial revenues), andtofour (4) coveringnearly100%ofnon-manufacturingscope. (2) to office facilities (in total covering nearly 100% of (1) (covering 148 2020 SUSTAINABILITY REPORT Supplemental Information Definitions, Methodology and Scope • were made: Compared withdatareported inthe2019SustainabilityReport,followingrestatements targets because2010wasthefirstyearFCAUSincludedin scope oftheGroup. The year 2010 is used as the baseline to measure progress to FCA's manufacturing environmental assembly andstampingis3,498,671vehiclesproduced. half oftheGroup's environmental footprint.Normalizationfactorformass-marketvehicle the mass-marketvehicleassemblyandstampingfacilities,which accountformore than presented inthe"Production" sectionforenergy, airemissions,waterandwasterefers to etc.), itisnotpossibletopresent normalizeddataattheGroup level.Normalizeddata evaluated. Duetothesignificantvariationintypesofproduction lines(vehicles,engines, in order to ensure data comparability from year to year and enable operational trends to be and normalizedvalues.Normalizedenvironmental performanceindicatorsare presented both absolutevalues,directly correlated toproduction volumesandreporting boundaries, Data reported asameasure ofFCA'smanufacturingimpactontheenvironment consists of Annual Reportavailableonline. comparable measure included inourConsolidatedFinancialStatements,refer tothe2020 for reconciliations ofeach thesenon-GAAPfinancialmeasures tothemostdirectly Before InterestAdjusted Earnings andTaxes (AdjustedEBIT)andAdjustednetprofit; principles (non-GAAP)financialmeasures: Netcash/(debt),industrial We monitorouroperationsthrough theuseofseveralnon-generallyacceptedaccounting respectively. limited assuranceengagement,pleaserefer to2019,2018and2017SustainabilityReports information previously publishedandoverwhichtheindependentauditorcarriedouta past yearswasrestated toensure comparabilityintermsofscope.Forhistoricaldataand In order to ensure that information is comparable and meaningful over time, some data for result inareport ofzero. of Unitsandmaybesubjecttorounding. Insomecases,rounding ofaverylownumbermay Unless otherwiseindicated,alldatapresented intheReportrefersSystem totheInternational •
due toincorrect datareported bothfor market-basedandforlocation-based approach. assembly andstamping andmass-marketvehicle enginesandtransmissions differs Data r market vehicleothersnormalizedenergy perhoursofproduction havealsochanged. (Spain) plant.Therefore, totalenergyconsumption,share ofrenewable electricity andmass- others differs duetotheinclusionofdatamissingforrenewable electricityinthe Urduliz Data r elated to2019manufacturingindirect energyconsumptionin mass-market vehicle elated to2019manufacturingindirect CO 2 emissionsinmass-marketvehicle • • • The documentis: PROCESS REPORTING update orrevise publiclyforward-looking statementsorotherinformation. speak onlyasofthedatethisdocumentandCompanydisclaims anyobligationto Report. Any forward-looking statements or other information contained in this document its bestefforts toensure theaccuracyofsustainabilityinformationcontainedinthis audit, analysis and approval by a number of individuals and entities. FCA continues to use Pr • • • • • • • • • • compliance withthefollowingprinciples: The qualityoftheinformationcontainedinSustainabilityReportis supported by QUALITY OF INFORMATION performance. None ofthe above restatements caused material variation to Group overall data and •
subject toalimitedassuranceengagement byanexter appr experts within Group operating segments and relevant functions across various countries pr timeliness r comparability clarity balance accuracy: pr completeness materiality sustainability context stakeholder inclusiveness carried outandthe expression ofopinionis provided atpage166. assurance engagements. Thestatementoflimited assurancedescribingtheactivities Auditing and Assuranceissued by Standards the International Board for limited Other thanAuditsorReviewsof HistoricalFinancialInformation”(ISAE3000Revised), Standard on Assurance Engagements ISAE 3000 (Revised) - Assurance Engagements Deloitte & Touche S.p.A.) in accordance with the criteriaestablished in theInternational and stampingdiffers duetoincorrect datareported. Data r eparation of the Sustainability Report is part ofan annual reporting process subject to eliability epared bytheFCASustainability Team thatcoordinates andengagessubjectmatter oved bytheSustainabilityDisclosure Committee elated to2019manufacturingNOxemissionsinmass-marketvehicleassembly ovision ofadequatelevelsdetail nal independentauditfirm(i.e. 149 2020 SUSTAINABILITY REPORT Supplemental Information Reporting Standards and Frameworks or the2020StellantisN.V. (formerlyFiatChryslerAutomobilesN.V.) AnnualReport. indicators. Eachindicatorreferences theappropriate pagesinthe2020Sustainability Report The following table lists content within the document that relates to specific GRI Standards This Reporthasbeenprepared inaccordance withtheGRIStandards: Comprehensive option. GRI Standards ContentIndex 102-13 102-12 102-11 102-10 102-9 102-8 102-7 102-6 102-5 102-4 102-3 102-2 102-1 Organizational Profile GRI Standard General standard disclosures Reporting Standards and Frameworks Membership of associations initiatives External Precautionary Principle or approach Significant changes to the organization and its supply chain Supply chain workers other and employees on Information Scale of the organization Markets served form legal and Ownership Location of operations Location of headquarters Activities, brands, products, and services Name of the organization Title SR =SustainabilityReportatDecember31,2020 AR =AnnualReportatDecember31,2020 Key: Publications SR SR SR SR AR SR SR SR AR SR AR AR SR AR SR AR SR SR AR
16 37 34, 41-48, 98-99 8 15-16 145 104-106, 118-119 116, 51, 10-11 8, 13-14 8 30-37 19, 17 148 230 148 114 15-16, 8 148-149 8, 6,114 Page number
------Omissions and comments 150 2020 SUSTAINABILITY REPORT Supplemental Information Reporting Standards and Frameworks 102-31 102-30 102-29 102-28 102-27 102-26 102-25 102-24 102-23 102-22 102-21 102-20 102-19 102-18 Governance 102-17 102-16 Ethics andIntegrity 102-15 102-14 Strategy GRI Standard Review of economic, environmental, and social topics social and environmental, economic, of Review Effectiveness of risk management Identifying and managing economic, environmental and social impacts Evaluating the highest governance body’s performance Collective knowledge of highest governance body strategy and values purpose, setting in body governance highest the of Role interest of Conflicts Nominating and selecting the highest governance body Chair of the highest governance body Composition of the highest governance bodies and its committees Consulting stakeholders on economic, environmental and social topics Executive-level responsibility for economic, environmental and social topics Delegating Authority structure Governance Mechanisms for advice and concerns about ethics Values, principles, standards, and norms of behavior Key impacts, risks, and opportunities Statement from senior decision-maker Title Publications SR AR SR AR SR AR SR AR SR AR SR AR SR AR SR AR SR AR SR AR SR AR SR SR AR SR AR SR SR SR AR SR
32-34, 43, 149 43, 32-34, 173-174 85-86 42-48 85-89 12, 15-16, 32-34 177-178 173-174, 32 155 122, 32-34 173-174 32-34 122 39-40 123 32 149 137, 128-130, 115-116, 32 115-116 32 115-122 34 15-16, 12-13, 177-178 32-34 34 32, 173-174 32-33 114-156 39-40 36, 34-40 41-43 13-14, 9-11, 85-89 3-4 Page number
------Omissions and comments 151 2020 SUSTAINABILITY REPORT Supplemental Information Reporting Standards and Frameworks 102-38 102-37 102-36 102-35 102-34 102-33 102-32 Governance GRI Standard 102-39 Annual compensation ratio Stakeholders’ involvement in remuneration Process for determining remuneration Remuneration polices concerns critical of number total and Nature Communicating critical concerns Highest governance body’s role in sustainability reporting Title Percentage increase in annual total compensation ratio compensation total annual in increase Percentage Publications AR AR AR AR SR AR SR AR SR AR AR AR
171-172 157 159-169 170 157-158, 36, 42-43 86-89, 43 36, 34, 121,85-86, 175, 34 32, 173-174, 122, Page number 171-172
------with the Remuneration Policy. accordance in 2020, in implemented were Directors Non-Executive and Directors Executive the of practices and programs pay the how describes Report Remuneration annual The of the Compensation Committee. recommendation the at Board FCA the by determined is Directors Executive the of remuneration Remuneration Policy, the FCA’s of scope the Within subject to confidential treatment. is information this countries some In reportable. not is data of set full The Omissions and comments with the Remuneration Policy. accordance in 2020, in implemented were Directors Non-Executive and Directors Executive the of practices and programs pay the how describes Report Remuneration annual The of the Compensation Committee. recommendation the at Board FCA the by determined is Directors Executive the of remuneration Remuneration Policy, the FCA’s of scope the Within subject to confidential treatment. is information this countries some In reportable. not is data of set full The
152 2020 SUSTAINABILITY REPORT Supplemental Information Reporting Standards and Frameworks 102-56 102-55 102-54 102-53 102-52 102-51 102-50 102-49 102-48 102-46 102-45 Reporting Practice 102-44 102-43 102-42 102-41 102-40 Stakeholder Engagement GRI Standard 102-47 External assurance External GRI content index Standards GRI the with accordance in reporting of Claims Contact point for questions regarding the report cycleReporting Date of most recent previous report period Reporting Changes in reporting Restatements of information contentDefining report and topic Boundaries Entities included in the consolidated financial statements raised concerns and topics Key Approach to engagement stakeholder andIdentifying selecting stakeholders Collective bargaining agreements groups stakeholder of List Title List of material topics material of List Publications SR SR SR SR SR SR SR SR SR SR SR AR SR SR SR SR SR SR
166 150-162 150 168 168 168 168 148-149 13, 148-149 12-15 148-149 230 13-16 13-16 13-16 60-61 15-16 Page number 13
------chapters of this Report. Report. this of chapters the in reported are boundaries and associated management approach information on material topics, the More content. report’s the defining for Standards GRI the on based reported were boundaries their and topics Material regions. our across dialogue conducted we stakeholders, our and to FCA importance of areas focus sustainability the to identify order In Report, within relevant chapters. this in concerns these with deal we how We explain concerns. general or perceptions their identify us to help topics specific on stakeholders our surveyed we dialogue, our of part As Report. 13 this of page the Materiality Matrix, available at of 2019 the revision for considered were events) face-to-face or live and activities (i.e. stakeholder surveys through stakeholder engagement raised concerns and topics Key Omissions and comments 153 2020 SUSTAINABILITY REPORT Supplemental Information Reporting Standards and Frameworks 103-3 103-2 103-1 GRI-301: Materials(2016) 206-1 103-3 103-2 103-1 GRI-206: Anti-CompetitiveBehavior(2016) 205-2 205-1 103-3 103-2 103-1 GRI-205: Anti-Corruption(2016) 204-1 103-3 103-2 103-1 GRI-204: Procurement Practices(2016) GRI Standard 205-3 TOPIC-SPECIFIC DISCLOSURES Evaluation of the management approach management the of Evaluation The management approach and its components Explanation of the material topic and its Boundary Legal actions for anti-competitive behavior, anti-trust, and monopoly practices approach management the of Evaluation The management approach and its components Explanation of the material topic and its Boundary Communication and training about anti-corruption policies and procedures to corruption related risks for assessed Operations approach management the of Evaluation The management approach and its components Explanation of the material topic and its Boundary Proportion of spending on local suppliers approach management the of Evaluation The management approach and its components Explanation of the material topic and its Boundary Title Confirmed incidents of corruption and actions taken Publications SR SR SR SR SR SR SR SR SR SR SR SR SR SR SR SR SR 25, 84-87 25, 84-87 25, 36, 84-87 13, 40 13, 39-40 36, 123 39-40, 34-36, 39-40 13-14, 123 39-40, 35, 36 13, 39-40 36, 123 39-40, 34-36, 39-40 13-14, 145 104-114 104-114 36-39, 104-106 13-14, Page number 40 ------communicated externally. be cannot information d.: this 205-2 for constraint Confidentiality Omissions and comments communicated externally. be cannot information b. c.:a. this 205-3 for constraint Confidentiality 154 2020 SUSTAINABILITY REPORT Supplemental Information Reporting Standards and Frameworks 302-4 302-2 302-1 103-3 103-2 103-1 GRI-302: Energy(2016) 301-1 GRI-301: Materials(2016) GRI Standard 302-3 302-5 301-2 301-3 Reduction of energy consumption Energy consumption outside of the organization Energy consumption within the organization approach management the of Evaluation The management approach and its components Explanation of the material topic and its Boundary Materials used by weight or volume Title Energy intensity Reductions in energy requirements of products and services Recycled input materials used Reclaimed products and their packaging materials Publications SR SR SR AR SR SR SR SR SR AR SR SR -
99, 103 99, 79-81 130-133 179 97-99 79-82, 28, 99 79-82, 39, 28, 148-149 130-133,13, 99, 79-82, 128 Page number 99, 133 99, 179 79-81 85 -
- - publicly available. questionnaire, published yearly and Change Climate CDP the 3in Scope of categories main from emissions - - - - a savings in electricity. in resulted This plants/offices. of areas avoid consumption in non-occupied to closed were AC outputs several (Italy) plant Verrone at 2020 in example, an As steam. and cooling heating, consumption - reducing fuel, electricity, energy to reduce projects of types several b: has FCA 302-4 Indicator CO on reported FCA standards. and Product based on country regulations sold of 3-Use Scope for consumption energy average on reports FCA materials used. of weight average the 0.3% of for approved vehicles in Europe accounts Renewable materials used in type- Omissions and comments applications. aluminum and plastic circular economy to selected only refers and Europe to limited is provided Information without packaging. customer end to the delivered are for reclaimed packaging, as vehicles Information is not applicable for 301-3 "Remanufactured Parts" section. to the refer please products For information related to reclaimed
2 155 2020 SUSTAINABILITY REPORT Supplemental Information Reporting Standards and Frameworks 305-7 305-6 305-5 305-3 305-2 305-1 103-3 103-2 103-1 GRI-305: Emissions(2016) 303-5 303-4 303-3 303-2 303-1 103-3 103-2 103-1 GRI-303: Water (2018) GRI Standard 305-4 Nitrogen oxides (NOX), sulfur oxides (SOX), and other significant air emissions air significant other and (SOX), oxides sulfur (NOX), oxides Nitrogen Emissions of ozone-depleting substances (ODS) Reduction of GHG emissions emissions GHG 3) (Scope indirect Other emissions 2) GHG (Scope indirect Energy 1) emissions GHG (Scope Direct approach management the of Evaluation The management approach and its components Explanation of the material topic and its Boundary Water consumption Water discharge withdrawal Water impacts discharge-related water of Management resource ashared as water with Interactions approach management the of Evaluation The management approach and its components Explanation of the material topic and its Boundary GHG emissions intensity Title Publications SR AR SR SR SR SR AR SR AR SR SR SR SR AR SR AR SR AR SR SR AR SR SR SR SR AR
28, 136 28, 180 135 100 111 103, 79-82, 133-134 100, 179-180 133-134 100, 179-180 103 24, 97-99, 79-82, 28, 100, 100, 10324, 79-82, 39, 28, 148-149 79-82, 13, 137-138 101, 180 137-138 101, 180 137-138 101, 28, 180 101 111 101, 180 97-99,28, 101 101 39, 28, 148-149 137-139, 101, 13, Page number 28, 100,28, 134 179-180
published and publicly available. Climate Change questionnaire, yearly CDP the 3in Scope of categories main ------FCA reported on CO on reported FCA Omissions and comments 2 emissions from 156 2020 SUSTAINABILITY REPORT Supplemental Information Reporting Standards and Frameworks 401-3 401-2 401-1 103-3 103-2 103-1 GRI-401: Employment(2016) 308-2 308-1 103-3 103-2 103-1 GRI-308: SupplierEnvironmental Assessment(2016) 307-1 103-3 103-2 103-1 GRI-307: Environmental Compliance(2016) 306-5 306-4 306-3 306-2 306-1 103-3 103-2 103-1 GRI-306: Effluentsand Waste (2016) GRI Standard Parental leave employees part-time or to temporary provided not are that employees to full-time provided Benefits turnover employee and hires employee New approach management the of Evaluation The management approach and its components Explanation of the material topic and its Boundary taken actions and chain supply the in impacts environmental Negative New suppliers that were screened using environmental criteria approach management the of Evaluation The management approach and its components Explanation of the material topic and its Boundary Non-compliance with environmental laws and regulations approach management the of Evaluation The management approach and its components Explanation of the material topic and its Boundary runoff and/or discharges water by affected bodies Water Transport of hazardous waste Significant spills method disposal and type by Waste destination and quality by discharge Water approach management the of Evaluation The management approach and its components Explanation of the material topic and its Boundary Title Publications SR SR SR SR SR SR SR SR SR SR SR SR SR SR SR SR SR SR SR SR SR SR SR 56, 121 56, 55-56 122 32-40, 49-62 49-62 32-40, 20, 13-14, 49-62 146-147 110-112, 110-112 110-112 110-112 40, 36, 110-112 13, 83 40, 86-87, 40, 36, 97-103 84-87, 97-103 79-83, 39, 39 13, 139 140 101 140-142 102, 8-9, 11 97-99,28, 102 102 39, 28, 148-149 13, Page number ------Italy only. FCA is boundary 401-3 e.: c. disclosure Omissions and comments 157 2020 SUSTAINABILITY REPORT Supplemental Information Reporting Standards and Frameworks 403-9 403-8 403-7 403-6 403-5 403-4 403-3 403-2 403-1 103-3 103-2 103-1 GRI-403: OccupationalHealthandSafety(2018) 402-1 103-3 103-2 103-1 GRI-402: Labor-Management Relations(2016) GRI Standard 403-10 Work-related injuries system management safety and health occupational an by covered Workers by business relationships linked directly impacts safety and health occupational of mitigation and Prevention Promotion of worker health safety and health occupational on training Worker Worker participation, consultation, and communication on occupational health and safety Occupational health service Hazard identification, risk assessment, and incident investigation Occupational health and safety management system approach management the of Evaluation The management approach and its components Explanation of the material topic and its Boundary Minimum notice periods regarding operational changes approach management the of Evaluation The management approach and its components Explanation of the material topic and its Boundary Title Work-related ill health Publications SR AR SR SR SR SR SR SR SR SR SR SR SR SR SR SR SR SR
21, 57-59, 124-125 57-59, 21, 186 21, 57-59, 130 57-59 55-59 21, 123 57, 57 57-58 57-58 57-58 21, 57-59 21, 21, 57-59 36, 148-149 57-59, 13, 62 126 60-61, 40, 126 60-61, 36, 20, 60-61 13, Page number 57-59, 125 57-59,
------with Group employees). 3% compared than (less percentage small avery for accounted employees Group not are who workers external revealed scope FCA of aportion on fatality. A materiality assessment made collected shows zero injuries and one Data fatalities. and absence of days 30 than more with to injuries only refers workers external for level global the at For 403-9b the information available Omissions and comments communicated externally. be cannot 10 information c.: this Confidentiality constraint for 403- compared with Group employees). 3% than (less percentage small very a are workers external that revealed employees Group not are who workers external of weight the on scope FCA of aportion on made assessment 403-10 for b. Amateriality level Information unavailable at the global
158 2020 SUSTAINABILITY REPORT Supplemental Information Reporting Standards and Frameworks 406-1 103-3 103-2 103-1 GRI-406: Non-Discrimination(2016) 405-2 405-1 103-3 103-2 103-1 GRI-405: DiversityandEqualOpportunity(2016) 404-3 404-2 404-1 103-3 103-2 103-1 GRI-404: Training andEducation(2016) GRI Standard Incidents of discrimination and corrective actions taken actions corrective and discrimination of Incidents approach management the of Evaluation The management approach and its components Explanation of the material topic and its Boundary to men women of remuneration and salary basic of Ratio ofDiversity governance bodies and employees approach management the of Evaluation The management approach and its components Explanation of the material topic and its Boundary reviews development career and performance regular receiving employees of Percentage Programs for upgrading employee skills and transition assistance programs employee per year per training of hours Average approach management the of Evaluation The management approach and its components Explanation of the material topic and its Boundary Title Publications SR SR SR SR SR SR SR SR SR SR SR SR SR SR SR 40 52, 40, 11413, 36-38, 34-37,20, 52, 114 37,13, 34-35, 52 119-120 116-119 32, 13, 50-52 40, 36, 20, 32,20, 36-37, 50-52 13-14, 32, 36-37, 50-52 53 123 92-93, 53-54, 123 92-93 13, 53-54, 36, 20, 36-37,20, 53-54 13-14, 53-54 Page number ------communicated externally. be cannot information b.:a. this 406-1 for constraint Confidentiality subject to confidential treatment. is rmation info this countries some in 405-2: for constraint Confidentiality Omissions and comments 159 2020 SUSTAINABILITY REPORT Supplemental Information Reporting Standards and Frameworks 412-3 412-2 412-1 103-3 103-2 103-1 GRI-412: HumanRightsAssessment(2016) 409-1 103-3 103-2 103-1 GRI-409: Forced orCompulsoryLabor(2016) 408-1 103-3 103-2 103-1 GRI-408: ChildLabor(2016) 407-1 103-3 103-2 103-1 GRI-407: Freedom ofAssociationandCollectiveBargaining(2016) GRI Standard underwent humanunderwent rights screening Significant investment agreements and contracts that include human rights clauses or that Employee training on human rights policies or procedures assessments impact or reviews rights to human subject been have that Operations approach management the of Evaluation The management approach and its components Explanation of the material topic and its Boundary Operations and suppliers at significant risk for incidents of forced or labor compulsory approach management the of Evaluation The management approach and its components Explanation of the material topic and its Boundary Operations and suppliers at significant risk for incidents of child labor child of incidents for risk significant at suppliers and Operations approach management the of Evaluation The management approach and its components Explanation of the material topic and its Boundary risk at be may bargaining collective and association of to freedom right the which in suppliers and Operations approach management the of Evaluation The management approach and its components Explanation of the material topic and its Boundary Title Publications SR SR SR SR SR SR SR SR SR SR SR SR SR SR SR SR SR SR 36, 38, 107-109 38, 36, 107-10913, 18, 34-38, 30, 107-10918, 34-38, 30, 112-115 13-14, 37-38, 107-109, 34-35, 107 60-61, 107,20, 126 37, 36, 34, 20, 107, 60-61, 126 13, 107 60-61, 34, 37, 106-109 123 35, 107, 38, 36, 111-112, 146 107,13, 18, 34-38, 30, 146 107,18, 34-38, 30, 123, 146 13-14, 37-38, 107 34-35, 107-109 38, 36, 107-10913, 18, 34-38, 30, 107-10918, 34-38, 30, 13-14, 37-38, 107-109 34-35, Page number ------Omissions and comments 160 2020 SUSTAINABILITY REPORT Supplemental Information Reporting Standards and Frameworks 417-3 417-2 417-1 103-3 103-2 103-1 GRI-417: MarketingandLabeling(2016) 416-2 416-1 103-3 103-2 103-1 GRI-416: CustomerHealthandSafety(2016) 415-1 103-3 103-2 103-1 GRI-415: PublicPolicy(2016) 414-2 414-1 103-3 103-2 103-1 GRI-414: SupplierSocialAssessment(2016) GRI Standard Incidents of marketing non-compliance concerning communications Incidents of product non-compliance concerning information and service and labeling Requirements for product information and service and labeling approach management the of Evaluation The management approach and its components Explanation of the material topic and its Boundary services and products of impacts safety and health the concerning non-compliance of Incidents categories service and product of impacts safety and health the of Assessment approach management the of Evaluation The management approach and its components Explanation of the material topic and its Boundary Political contributions approach management the of Evaluation The management approach and its components Explanation of the material topic and its Boundary taken actions and chain supply the in impacts social Negative New suppliers that were screened using social criteria approach management the of Evaluation The management approach and its components Explanation of the material topic and its Boundary Title Publications SR SR SR SR SR SR SR SR SR SR SR SR SR SR SR SR SR SR SR SR 40 40 85-87, 93-94 39-40, 31-36 27, 27, 40 34-36, 13-14, 34-35 91 88-91 88-91 26, 88-91 36, 26, 88-91 13, 40 39-40 36, 39-40 36, 34-35, 39-40 13, 147 107-112, 107-112 107-112 107-112 107-112 Page number ------Omissions and comments 161 2020 SUSTAINABILITY REPORT Supplemental Information Reporting Standards and Frameworks 103-1 GRI-419: SocioeconomicCompliance(2016) 418-1 103-3 103-2 103-1 GRI-418: CustomerPrivacy(2016) 419-1 103-3 103-2 GRI Standard Explanation of the material topic and its Boundary data customer of losses and privacy customer of breaches concerning complaints Substantiated approach management the of Evaluation The management approach and its components Explanation of the material topic and its Boundary Non-compliance with laws and regulations in the social and economic area approach management the of Evaluation The management approach and its components Title Publications SR SR SR SR SR SR SR SR 13-14, 34-35 40 40 13, 38, 36, 34-36, 37-38 13-14, 34-35, 37-38 40, 83 40, 13, 83 40, 36, 83 34-36, Page number ------Omissions and comments 162 2020 SUSTAINABILITY REPORT Supplemental Information Reporting Standards and Frameworks Annual Report. Sustainability Reportorthe2020StellantisN.V. (formerlyFiatChryslerAutomobilesN.V.) Standards indicators.Each indicatorreferences theappropriate pagesinthe2020 The followingtablelistscontentwithinthedocumentthatrelates tospecificSASB This Reporthasbeenprepared inaccordance withtheSASBTransportation Standard. SASB ContentIndex Materials Sourcing Emissions &Use-phase Economy Fuel Labor Practices Product Safety Metrics Activity Disclosure Topic SASB ContentIndex Standard Code TR-AU-310a.1 TR-AU-250a.1 TR-AU-000.A TR-AU-440b.3 TR-AU-440b.2 TR-AU-440b.1 TR-AU-440a.1 TR-AU-410a.3 TR-AU-410a.2 TR-AU-410a.1 TR-AU-310a.2 TR-AU-250a.3 TR-AU-250a.2 TR-AU-000.B Percentage of active workforce covered under collective bargaining agreements bargaining collective under covered workforce active of Percentage region by rating, safety 5-star overall an with programs NCAP by rated models vehicle of Percentage Number of vehicles manufactured Average recyclability of vehicles sold recycled percentage recovered, material end-of-life of Weight recycled percentage manufacturing, from waste of Total amount Description of the management of risks associated with the use of critical materials opportunities and risks emissions and economy fuel fleet managing for strategy of Discussion vehicles sold hybrid plug-in and vehicles, hybrid (ZEV), vehicles emission zero of Number region by economy, fuel fleet passenger average Sales-weighted idle days total and stoppages work of Number Number of vehicles recalled investigated percentage complaints, defect safety-related of Number Number of vehicles sold Activity/Accounting Metrics Activity/Accounting SR =SustainabilityReportatDecember31,2020 AR =AnnualReportatDecember31,2020 Key: SR AR SR SR SR AR - SR AR SR AR SR AR SR SR SR SR SR AR Publication
Page Number 60 28-29 90 26, 149 86 182 Not applicable: managed by third parties 142 140, 102, 180 105-109 15, 307 187-190, 101-102, 24, 70, 72-83 86-87, 103-104, 43-48, 21-25, 181 39-40, 33, 73 79-82 61 90 90 30-37 13,
163 2020 SUSTAINABILITY REPORT Supplemental Information Reporting Standards and Frameworks Annual Report. Sustainability Reportorthe2020StellantisN.V. (formerlyFiatChryslerAutomobilesN.V.) the ISO26000guidance.Eachrequirement references theappropriate pagesinthe2020 The followingtablelistscontentwithinthedocumentthatisinlinewithrequirements of responsibility. This Reporthasbeenprepared inalignmentwiththe ISO26000:2010guidelinesonsocial ISO 26000ContentIndex Labour Practices 6.4 Human Rights 6.3 GovernanceOrganizational 6.2 Subjects Core 26000 ISO ISO 26000ContentIndex Disclosure Number 40332 6.3.9 6.3.8 6.3.7 6.3.6 6.3.5 6.3.4 6.3.3 6.2.3.2 6.2.3.1 6.2.1.2 6.2.1.1 6.4.7 6.4.6 6.4.5 6.4.4 6.4.3 Human rights issue 8: Fundamental principles and rights at work at rights and principles 8: Fundamental issue rights Human rights cultural and social 7: Economic, issue rights Human rights political and 6: Civil issue rights Human Human rights issue 5: Discrimination and vulnerable groups Human rights issue 4: Resolving grievances Human rights issue 3: Avoidance of complicity Human rights issue 2: Human rights risk situations 1: diligence Due issue rights Human Related actions and expectations issue the of Description Organizational governance and social responsibility Organizations and organizational governance Labour practices issue 5: Human development and training in the workplace the in training and development 5: Human issue practices Labour work at safety and 4: Health issue practices Labour Labour practices issue 3: Social dialogue protection social and work of 2: Conditions issue practices Labour Labour practices issue 1: Employment and employment relationships Disclosure Title Title Disclosure SR =SustainabilityReportatDecember31,2020 AR =AnnualReportatDecember31,2020 Key: Publication SR AR SR AR SR AR SR SR AR SR AR SR AR SR AR SR AR SR AR SR AR SR AR SR AR SR AR SR AR SR AR SR AR
Page number 37-38, 107, 60-61, 126 147, 155-156 82, 107, 62-64, 52,40, 55-60, 140-141 159 155-156, 37, 107, 58, 121 28-29 37-38,34, 52, 114, 119 36 176 107-109 188-190 107-109 38, 188-190 175-177, 107-112 37-38, 175-177 13-17 177-178 34 173-174 33-34 173-174 122, 32 120-122 115, 37-38, 123 52-54, 185-186 21, 57-59, 107, 110, 123-126, 130 186 50, 126 60-61, 287-288 28-29, 120 60-61, 55-56, 287-288 185-186, 28-29, 37, 120 52, 60-62, 55, 185-186 28-29,
164 2020 SUSTAINABILITY REPORT Supplemental Information Reporting Standards and Frameworks Development 6.8 Community Involvement and Consumer Issues 6.7 Fair Operating Practices 6.6 The Environment 6.5 Subjects Core 26000 ISO Disclosure Number 6.7.9 6.7.8 6.7.7 6.7.6 6.7.5 6.7.4 6.7.3 6.6.7 6.6.6 6.6.5 6.6.4 6.6.3 6.5.6 6.5.5 6.5.4 6.5.3 6.8.9 6.8.8 6.8.7 6.8.6 6.8.5 6.8.4 6.8.3 Consumer issue 7: Education and awareness services to essential 6: Access issue Consumer Consumer issue 5: Consumer data protection and privacy resolution dispute and complaint and support, service, 4: Consumer issue Consumer Consumer issue 3: Sustainable consumption Consumer issue 2: Protecting consumers' health and safety contractual fair and information unbiased and factual 1: marketing, Fair issue Consumer rights property for 5: Respect issue practices operating Fair chain value the in responsibility social 4: Promoting issue practices operating Fair competition 3: Fair issue practices operating Fair Fair operating practices issue 2: Responsible political involvement 1: Anti-corruption issue practices operating Fair of natural habitats restoration and biodiversity environment, the of 4: Protection issue Environmental Environmental issue 3: Climate change mitigation and adaptation Environmental issue 2: Sustainable resource use pollution of 1: Prevention issue Environmental Community involvement and development issue 7: Social investment Community involvement and development issue 6: Health creation income and 5: Wealth issue development and involvement Community access Community involvement and development issue 4: Technology development and development skills and creation 3: Employment issue development and involvement Community Community involvement and development issue 2: Education and culture Community involvement and development issue 1: Community involvement Disclosure Title Title Disclosure Publication SR AR - SR AR SR AR SR AR SR AR SR AR SR AR SR AR SR AR SR SR AR SR AR SR AR SR AR SR AR SR AR SR AR SR AR SR AR SR AR SR AR SR AR
Page number 92-94 184-185 - 38 147 40, 92-94 184-185 128 85-87,24-25, 79-82, 39, 93-94, 178-183 89-91, 85, 181-184 88-91, 95 84, 184 69-70, 12838, 147-148 25-26, 145-147 104-114, 30, 187-190 39-40 35, 147-148 40 123 39-40, 36, 174-175 147, 16, 98-100, 28, 143 178-181 99-100, 103, 111, 79-82, 39, 28, 130-135 178-181 78, 98-103, 39, 28, 111, 128, 130-142 178-182 84-87, 39, 28, 98-103, 130-143 178-181 61, 63-67, 112-114, 92-93, 145 188-190 21, 63-67 55-59, 186 145 112-114, 63-65, 188-190 112-114 65, 63- 23, 190 112-114 62-65, 23, 190 65 190 63-67 23, 190
93-95
165 2020 SUSTAINABILITY REPORT Supplemental Information Independent Auditor’s Report of theassuranceengagementare provided inthefollowing IndependentAuditor'sReport. independentauditfirm,Deloitte& This SustainabilityReporthasbeensubmittedtoassurancebyanexternal Touche S.p.A.Thescope,methodology, limitationsandconclusions Independent Auditor’s Report documents, recalculationsandotherevidencegatheringprocedures asappropriate. inquiries, primarilywithcompany personnelresponsibleforthepreparation oftheSustainability Report, analysisof The proceduresperformedontheSustainability Report are based onourprofessionaljudgementandincluded identified inareasonableassurance engagement. not enableustoobtainassurance thatwewouldbecomeaware ofallsignificantmattersandevents thatmightbe those performedinareasonableassurance engagementinaccordancewithISAE 3000Revised, and,therefore,do material misstatement.Therefore,theproceduresperformedinalimitedassurance engagementarelessthan plan andperformtheengagementtoobtainlimitedassurance whethertheSustainability Report isfreefrom Auditing and Assurance StandardsBoard (IAASB) for limited assurance engagements. The standard requires that we Audits orReviewsofHistoricalFinancialInformation” the Sustainability Report withtheGRIStandards.We conductedourworkinaccordancewiththecriteriaestablished Our responsibility istoexpressourconclusionbasedontheproceduresperformedabout thecomplianceof Auditors’ responsibility ethical requirements,professionalstandardsandapplicablelegalregulatoryrequirements. comprehensive systemofquality controlincludingdocumentedpoliciesandproceduresregardingcompliance with Our auditingfirmappliesInternationalStandardonQuality Control1(ISQCItalia1)and,accordingly, maintainsa principles ofintegrity, objectivity, professionalcompetenceandduecare,confidentiality andprofessionalbehavior. Accountants We have compliedwiththe independenceandotherethicalrequirementsofthe Auditors’ independenceandqualitycontrol the Sustainability Report. also “GRIStandards”)asstatedintheparagraphs “About thisReport” and“Definitions,MethodologyScope”of Reporting Initiative Sustainability Reporting Standards”establishedby GRI–GlobalReporting Initiative (hereinafter The managementisresponsibleforthepreparation oftheSustainability Report inaccordancewith“Global Management responsibilityonthepreparationofSustainabilityReport Automobiles N.V. anditssubsidiaries atDecember31,2020(the“formerFCAGroup”). The Sustainability Report hasbeenpreparedonthebasisofscopeconsolidationformerFiatChrysler N.V.”) withFCAasthe survivingcompany inthemerger, andthecombinedcompany was renamedStellantisN.V.. On January16,2021,Peugeot S.A. (“PSA”) mergedwithandintoFiatChryslerAutomobiles N.V. (“FCA” or“FCA Chrysler Automobiles N.V. scope(the“Sustainability Report”) asofDecember31,2020. We have carriedoutalimitedassurance engagementontheSustainability Report ofStellantisN.V. relatingtoFiat To theGovernanceandSustainabilityCommitteeofStellantisN.V. “International StandardonAssuranceEngagementsISAE3000(Revised)–Otherthan issuedby theInternationalEthicsStandardsBoardforAccountants,whichisfoundedonfundamental INDEPENDENT AUDITOR’SREPORT ON THESUSTAINABILITYREPORT (hereinafter“ISAE 3000Revised”), issuedby theInternational CodeofEthicsforProfessional
March 31,2021 Milan, Italy
• set outinthe“GRIStandards”, andaresummarisedasfollows: These proceduresconsistedinverifying itscompliancewiththeprinciples fordefiningreportcontentandquality Partner Franco Amelio DELOITTE &TOUCHE S.p.A. “Definitions, MethodologyandScope”oftheSustainability Report. in allmaterialaspects,accordancewiththeGRIStandards,asstatedparagraphs “About thisReport” and Report ofStellantisN.V. relatingtoFiatChryslerAutomobiles N.V. scopeasofDecember31,2020isnotprepared, Based ontheworkperformed,nothinghascometoourattentionthatcausesusbelieve thattheSustainability Conclusion • •
In pa anal comparing t anal the preparation oftheSustainability Report; gathering, aggregation,processingandtransmittal ofdataandinformationtothedepartmentresponsiblefor systems usedinpreparingtheSustainability Report, aswellontheprocessesandprocedures supportingthe former FCAGroupamongthefouroperating regionstogatherinformationabouttheaccountingandreporting Sustainability Report operate. to theinternalvalidation oftheprocessresults; reference tothemethodsusedforidentificationandprioritizationofmaterialaspectsstak included intheStellantisN.V. (formerlyFCAN.V.) ConsolidatedFinancialStatementsasofDecember31,2020; In addition, characteristics: ysing how theprocesses underlyingthegeneration, collection andmanagementofquantitative dataofthe ysing the processrelating tothedefinitionofmaterial aspectsdisclosedintheSustainability Report, with – attheparentcompany’s andsubsidiaries’level: – for thefollowing companies andsites, FCA Italy S.p.A. – – Avvocato Giovanni Agnelli Plant (AGAP) site, FCA rticular, wehave performed interviewsanddiscussions withthepersonnelandmanagementof b) a) withregardstoqualitative informationincludedintheSustainability Report, wecarriedoutinterviews calculation methodsusedfortheindicators. gathered supportingdocumentationwithreferencetothecorrectapplicationofproceduresand their location,wecarriedoutremotemeetings,duringwhichhave mettheirmanagementandhave based ontheiractivities,contributiontotheperformanceindicatorsatconsolidatedlevel and LLC –TiptonTransmission Plantsite,FCABrasil LTDA –CampoLargoPlantsite,whichweselected
with verifications inordertoensure,onasamplebasis,thecorrectaggregationofdata. and gatheredsupportingdocumentationinordertoverify itsconsistency withtheavailable evidence; he economicand financialinformationanddata includedintheSustainability Report withthose for materialinformation,takingintoconsideration theformerFCAGroup’s activitiesand regardstoquantitative information,wecarriedoutbothanalyticalproceduresandlimited eholders and
166 2020 SUSTAINABILITY REPORT Supplemental Information Forward-Looking Statements level ofcompetitionintheautomotiveindustry, whichmayincrease dueto consolidation; in relation tocompliancewithenvironmental, healthandsafetyregulations; theintense and environmental claims, investigationsandlawsuits;materialoperatingexpenditures investigations andothercontingencies,includingproduct liabilityandwarrantyclaims and autonomous-drivingcharacteristics;varioustypesofclaims, lawsuits,governmental and sellvehicleswithadvancedfeatures includingenhancedelectrification,connectivity globally; its ability to offer innovative, attractive products; its ability to develop, manufacture changes intaxlawsandregulations; theGroup’s abilitytoexpandcertainoftheirbrands tariffs ortariffs targetedtotheautomotiveindustry, theenactmentoftaxreforms orother and politicalconditions,changesintradepolicytheimpositionofglobalregional demand forautomotiveproducts, whichissubjecttocyclicality;changesinlocaleconomic changes intheglobalfinancialmarkets,generaleconomicenvironment andchangesin Group tolaunchnewproducts successfullyandtomaintainvehicleshipmentvolumes; a varietyoffactors,including:theimpactCOVID-19pandemic,ability may differ materiallyfrom thoseexpressed inforward-looking statementsasaresult of in thefuture and,assuch,unduereliance shouldnot beplacedonthem.Actualresults They relate toeventsanddependoncircumstances thatmayornotoccurexist about future events and are by their nature, subject to inherent risks and uncertainties. based ontheGroup’s current stateofknowledge,future expectationsandprojections Forward-looking statementsare notguarantees offuture performance. Rather, theyare “plan,” or similar terms. “estimate,” “anticipate,” “believe,” “remain,” “on track,” “design,” “objective,” “target,” “goal,” “projection,” “forecast,” “outlook,” “prospects,” “may,” as such terms “will,” “expect,” “could,” include may “should,” “intend,” statements These statements. forward-looking contains report This Forward-Looking Statements Commission, theAMFandCONSOBGroupe PSA’s filingswiththeAMF. reports andfilingsofFCA(now knownasStellantis)withtheU.S.SecuritiesandExchange including factors that could materially affect the Group’s financial results, are included in the theGroupforward-looking anditsbusinesses, statements. Furtherinformationconcerning and uncertainties.TheCompanydisclaimsanyobligationtoupdate orrevise publicly the operationsofGroupe PSA andFCAwillnotbeintegratedsuccessfullyotherrisks other marketrisks;politicalandcivilunrest; earthquakesorotherdisasters;theriskthat applicable labor laws;exchange rate fluctuations, interest ratechanges, credit riskand of rawmaterials;developments in laborandindustrialrelations and developments in employees, dealersandsuppliers;increases incosts,disruptionsofsupplyorshortages political, social and economic instability; risks associated with our relationships with to realize anticipatedbenefits from jointventure arrangements;disruptionsarisingfrom or theelectronic control systemscontainedinthe Group’s vehicles;theGroup’s ability malfunction, disruptionorsecuritybreach compromising informationtechnologysystems and improve theirbusinesses,financialconditionand results ofoperations;asignificant services companies;theabilitytoaccessfundingexecuteGroup’s businessplans customers andassociatedrisksrelated totheestablishmentandoperationsoffinancial ability toprovide orarrangeforaccesstoadequatefinancingdealersand retail exposure toshortfallsinthe fundingoftheGroup’s definedbenefit pensionplans;the 167 2020 SUSTAINABILITY REPORT Supplemental Information About this Report CONTACTS REPORT PREVIOUS ASSURANCE REPORT CONTENT BOUNDARY AND SCOPE REPORT FORMATSDOCUMENT DATE OF PUBLICATION CYCLEREPORTING PERIODREPORTING DESCRIPTION About thisReport [email protected] Your opinionisimportant tous.Forquestionsandcommentsregarding thereport pleasewrite at: The 2019SustainabilityReportwasmadeavailableonfcagroup.com onApril16,2020. the activitiescarriedoutandexpression ofopinionisprovided atpage166. Deloitte &Touche S.p.A.isofficiallyauthorizedtoconductISAE3000assuranceaudits.Thestatementofdescribing Assurance Standards Board forlimitedassuranceengagements. Auditingand Other thanAuditsorReviewsofHistoricalFinancialInformation (ISAE3000Revised),issuedbytheInternational Standardthe criteriaestablishedinInternational onAssuranceEngagementISAE3000(Revised)-Engagements independentauditfirm,Deloitte& This Reporthasbeensubmittedtoassurancebyanexternal Touche S.p.A., inaccordance with indicatorsaregovernance reported intheFacts&Figures section. well as topicswhichare not material, but which may be of interest to selected stakeholders. Detailed environmental, social and Information anddataofinterest forsustainabilityratingsandrankingsisalsoincluded.ThisReportincludesmaterialaspectsas Refer tothesectionReportingStandards andFrameworksformore information. ISO26000. Sustainability AccountingStandards Board (SASB),theTask Force onClimate-RelatedFinancialDisclosures (TCFD)andthe requirements oftheGlobalReportingInitiative(GRI) SustainabilityReportingStandards andotherframeworkssuchasthe The selectionoftopicsforthisReportisbasedontheresults ofourCorporatepriorities,thedialoguewithstakeholders, Methodology andScope. For the description of scope and boundary for the information provided within this Report, please refer to the section Definitions, PDF April, 2021 Annual Financial year2020(January1,toDecember31,2020) Data 168 2020 SUSTAINABILITY REPORT