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;makingandr assistance around theworld –buildingtwofullyequippedfieldhospitalsinBrazilandone The commitmentandsolidarityFCA’s people haveshownwhenproviding muchneeded provide supporttofirst responders andhealthcare workersacross theglobe. the financialhealthofbusiness.Italsosteppedintohelpour localcommunitiesand the societieswhere theylive,itsupportedourcustomersanddealers,pr Not onlydidFCAmovequicklytosafeguard thehealthandwelfare ofitspeopleand crisis reveal thetruecharacterofanorganizationanditspeople. As thepandemicspr totally unexpectedandthatnothingshouldsurpriseus. we believewe’vethoughtofandplannedforeverything,mustalwaysbeready forthe It wasmore challengingthananybodycouldeverhaveimagined,proving thatevenwhen in thehistorybooks,and2020willundoubtedlyjointhatlist. Some yearsare soeventfulthatweknowaslivethrough themthattheywillgodown and emotionaltollonoursocietiesasitwent.But2020alsoreminded usthattimesof and upsetthesenseofnormalityweoftentookforgranted,takingitshuman,economic the ChairmanandCEO Message from ead across theworld,itchanged ourlives,impactedrelationships epairing ventilators;producing facemasksandshields,with otected
3 2020 SUSTAINABILITY REPORT Message to Stakeholders Message from the Chairman and the CEO automakers eachcontributingarichheritage,iconicbrands,and talentedpeople. the creation ofStellantismarked anewchapterpower Based onbothfoundingcompanies’trackrecords of performanceandcompetitivespirit, with astrong NetFinancialPosition. weather thistoughyear 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 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 hasbeguntoshowimpr 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 , andmaintainahighlevelofprofitability initsAutomotivebusiness, , protecting itsemployeesandsupportingthecommunity ovement inthesecondhalfofyear, FCA ed bythecombinationoftwo Chairman provide ourcustomerswithclean,safeandaf We willleveragethebenefitsofStellantisandourunmatchedcompetitiveadvantagesto capture theopportunitiesofneweraaheadus. John Elkann /s/ March 4,2021 our extraordinary adventure. engagement aswenowmoveforwar with usduringthismostdifficulttimeandforyourcontinued trust,support,and And we would also like to thank all of our shareholders and stakeholders for standing r 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,r Diversity andinclusionare anintrinsicpartofourcompany’s fabric,andweintendtomake on thepathtocarbonneutralityacross ourpr 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 ambitionsar As aglobalcompany, wewillalwaysstrivetoensure thatourESGfocusisembeddedinto environmental stewar We also believe that long-term success is achieved by linking economic growth with convenient andinnovativevehiclesservices. company withthescale,resour Stellantis represents oneoftheworld’s leadingautomakers,butmore importantlyitisa elentless hard workandresilience willbecrucialtoour future success. dship andfinancialperformancewithsocial responsibility. ces, thediversityandknow-howtosuccessfully d togetherasStellantisintothenextchapterof elying onthetalentofourmore than400,000 oducts andfootprint. e compatiblewithsustainabledevelopment fordable mobility, whileoffering distinctive, 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 third consecutive year in the 75% of FCA’s Operations Brazilian plants Refinitiv Diversity in 40 countries 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 with to create New Fiat 500, ENGIE EPS largest FCA's first a JV in the e-Mobility sector to "born electric" car offer a full suite of innovative Vehicle-to-Grid services and solutions pilot project in Turin, Italy
Strengthened the
100% of plants Responsible Launched 7 models offering ISO 14001 Sourcing electric powertrains certified program to gain greater options transparency 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 transactiontocr 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 eate Stellantison Read more FCA incorporatedtheconceptofacircular economyintoourbusinessapproach, focusing use andeventualreuse ofmaterials. on reducing wasteinthevaluechainfrom vehicledesignthrough production, distribution, not only which products and serviceswedeveloped, but also how we developed them. Emerging trends, evolvingconsumer attitudesandregulatory requirements influence we operate. grow thebusinessbutalsoour commitmenttotheenvironment andthecommunitieswhere We recognized thatourenvironmental andsocialactivitiesaffect notonlyouraspirationto connections with customers, employees, dealers, suppliersand communities, amongothers. and widevarietyofstakeholders.We aimedtocreate valuethrough our relationships and automotive industry's valuechain and product offering, FCAimpactedalarge number partnerships withsuppliersanddealersonaglobalscale.Due tothecomplexity of the FCA had operations in 40countries,customersinmore than130countries,andbusiness with third partyfinancialinstitutions. and rental servicesthrough oursubsidiaries,jointventures andcommercial arrangements vehicle Teksid andComaubrands.TheGroup alsoprovided retail anddealerfinancing,leasing performance SRT In addition,FCAoperatedinthecomponentsandproduction systemssectorsunderthe the Maserati, designation andMopar,thepartsservicebrand. Ram, Lancia, Jeep, Professional, Fiat Fiat, Dodge, Chrysler, Romeo, Abarth, Alfa were: worldwide 40 than more systems brands automotive and Group’s The centers. and development research facilities manufacturing production 100 than more and through components vehicles, selling and distributing manufacturing, engineering, designing, in engaged group automotive global a was Automobiles Chrysler Fiat 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-termvaluer 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 • • • • a governance modelbasedontransparencya governance andintegrity constructive managementandprofessional developmentofemployees effective communicationwithconsumers a competitiveproduct offering andinnovativemobility solutions safe andsustainableproducts & Innovation Design esponsibly. Purchases Quantitative informationinthissectionrelates toyearendedDecember31,2020. bringing valuetotheCompany, toourcustomers,societyandtheenvironment. competes. Itillustrateshowinputswere convertedthr The followinggraphicspresent asimplifiedviewofthehighlycomplexindustryinwhichFCA Nations SustainableDevelopmentGoalssupportingthisAgenda. Sustainable Development.We operatedresponsibly tocontributetherelevant United today, asexpressed intheUnitedNationsTransforming ourWorld 2030 Agendafor to transitionamore sustainablefutur Acr • • • impacts ontheenvironment. responsible managementofmanufacturingandnon-manufacturingprocesses toreduce mutually beneficial relationships withbusinesspartnersandlocalcommunities safe workingconditionsandrespect forhumanrights oss ourvaluechain,FCAimpactedstakeholdersdirectly orindirectly. Theneed Production Use e isoneofthemajorchallengesfacingworld ough theGroup's businessactivities, End-of-life
9 2020 SUSTAINABILITY REPORT Business Model and Governance Business Model and Value Chain • • • • • • • • • • MAJOR IMPACTS Design &Innovation Employee healthandsafetyinproduction processes consumption inproduction processes Environmental impactandnaturalresource Vehicle materialcompositionandend-of-life Brand perception andvalue Product competitivenessandreputation Customer satisfactionandloyalty Vehicle quality Vehicle fueleconomyandemissions Vehicle safety Innovation inproducts andprocesses Purchases • • • • MAJOR IMPACTS resource consumption Indirect environmental impactandnatural communities Local revenue forbusiness partnersand Working conditionsforthird-party employees Indirect employmentinthird-party operations 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 5.9 Miliontonsoftotalrawmaterials ~2,000 suppliersglobally KEY INPUT which comprisesemi-manufactured goods 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 Production • • • MAJOR IMPACTS Use €86.7 Billioninrevenue KEY INPUT working teams across regions, Group companiesand Technological andknow-howsharing Process innovation consumption from direct operations Environmental impactandnaturalresource Employee developmentthrough training Employee safetyandworkingconditions operates Local revenue forcommunitieswhere FCA Direct employment Customer satisfactionandloyalty Vehicle fuelconsumptionandemissions access tomobility Social impactsontraffic, road safetyand KEY INPUT 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 through 3.4millionnewFCAvehicles millions ofpeoplearound the world FCA grantsaccesstomobilityfor AND SHARED VALUE GENERATED (withdrawal) atGroup plantsworldwide are relevantduringthisphaseoftheValueChain: The followingUNSustainableDevelopmentGoals Read more 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 Milliontonsofwaste recycling indexof99% Group plantsworldwidewitha Read more management andremanufacturing dismantling, recycling, disposal battery end-of-life:wastegeneration, Environmental impactsofvehicle and sourced How rawmaterialsare originally Billion inpersonnelcosts 3 ofwatersavedat 2
emissions generated are relevantduringthisphaseoftheValueChain: The followingUNSustainableDevelopment Goals are relevantduringthisphaseoftheValueChain: The followingUNSustainableDevelopmentGoals of vehicleownershipforcustomers and componentsreduce thecost to extendtheusefullifeofmaterials component remanufacturing, inorder toward repairability, recycling and manufacture vehicleswith a view FCA strivestodesignand AND SHARED VALUE GENERATED 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 Company's dailyactivities. while Our stakeholder engagementanddevelopment ofmaterialityare conducted topics those on focuses reporting sustainability FCA’s the riskmanagementframework. stakeholderswereexternal alsoconnectedtothekeyriskfactors identifiedby The areas confirmedduring thelatestassessmentas and relevant forinternal the latestupdateofFCA'sMaterialityDiagramwasundertaken in2019. Since 2020markstheendofourcurrent setoflong-termsustainabilitytargets, Materiality Background Pape 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 FROMOPERATIONS WASTE MANAGEMENT RELATIVE IMPORTANCE TOFCA FCA MaterialityDiagram WATER MANAGEMENT MOBILITY SERVICES ANDSOLUTIONS 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 Alternative fuels conservation Biodiversity Water management Waste management Emissions from operations Vehicle fuel economy and emissions Community development Workplace attractiveness Vehicle safety Customer experience well-being and safety health, Employee and data protectionCybersecurity Responsible sourcing Business transparency and integrity FCA’s MaterialSustainabilityTopics TECHNOLOGY ENVIRONMENTAL EMPLOYEES, BUSINESS internationally-agreed 2030AgendaforSustainableDevelopment. FCA's sustainabilityareas ofcommitmentandmostmaterialtopicsare alignedwiththeUnitedNationsSustainableDevelopmentGoals(SDGs)andobjectivesidentifiedin OPERATIONS CUSTOMERSANDSOCIETY ANDINNOVATION ANDCLIMATEIMPACT 14 2020 SUSTAINABILITY REPORT Business Model and Governance Materiality and Stakeholder Engagement to innovateourdialoguewithstakeholdersinthebeliefthattheseactivitiesare anessential We conductstakeholderengagementactivitiesrelated tosustainabilitytopics,andwork related stakeholderengagementactivities. identifying andprioritizingstakeholders,provide ageneralframeworkforsustainability- They helpdefinethegoalsofdialogue, setthecriteriafor dialogue. continuous this communication, planning andreporting. elements intothe businessstrategyanddailyactivities whilealsosupportingsustainability able todiscusssustainability issues.Thenetworks alsosupportincorporatingsustainability networks existineachregion andprovide aforumwhere employeesandmanagersare expertiseandcoordinatefurther strengthen jointinitiatives.These sustainability internal Sustainability Regional REGIONAL SUSTAINABILITY NETWORKS employees. from them.Duringtheyear avarietyofworkshopsandonlinediscussionswere heldwith day tostrengthen FCA's sustainability profile, potentialareas andtolearn ofimprovement two-fold purpose:tocommunicate to themthe importance ofthework theydoevery of several stakeholderengagement activities. Our interaction with employees servesa FCA employeesplayaparticularlyvitalrole inoursustainabilityefforts andare the focus ENGAGING EMPLOYEES activities. material topicsweidentified.Thefollowingare someexamplesofour2020engagement groups orindividualscan mosteffectively helpusexplore andconfirmtheand relevant To accomplishthis,wetypicallyworkwithrepresentatives withinFCAtoidentifywhich Our stakeholdereventsreflecteffortstoreachabroadspectrumofkeystakeholders. the review ofpotentialupdatesinFCA'smaterialsustainabilitytopics. stakeholder engagementeventsare analyzedtoaddress differences andguide,globall stakeholder initiativesare adaptedtolocallyrelevant topics.Theregional results from our part ofarobust sustainabilityprogram. Ineachofthe regions where FCAoperates,our Our sustainability-focused technological andregulatory changesaround theglobe. us tobetteridentifyrisksandopportunities,aswellalignour objectives tosocial, affected byourdecision-makingprocesses andassociated actions,stakeholdershelp stakeholder inputtodeterminematerialityisanongoingprocess. Whetheraffecting or As aglobalenterprisewithcomplex,intricatelyconnectedvaluechain,gathering ENGAGING STAKEHOLDERS eams work with selected employees to form networks that networks form to employees selected with work Teams Stakeholder EngagementGuidelines formthebasisfor y,
provided relevantcontentandresourcestoournetworksacrosstheregions. on varioussustainabilityissuesfrom sources. external Thesenewcommunicationtools topic ineachedition;andSustainabilitytheNews,whichisadigitalclippingofarticles the ONBOARDemployeenewsletter,whichfeaturessustainability detailsonaspecific on more virtualdialoganddigitalcommunicationsolutions.Asanexample,welaunched more employeesworkingremotelyWith across ourregions duetoCOVID-19,wefocused the process ofevaluatingsuppliers'sustainabilityprofiles. During 2020,we moved toa new sustainability-focused assessment to strengthen extensively withthemonseveralsustainabilitytopics. Because suppliersrepresent suchanessentialelementinFCA'svaluechain,weengage ENGAGING THESUPPLY CHAIN only gainedabroaderperspectivebutwerealsoabletoengageinthediscussion. the from external other Sustainability Our SUSTAINABILITY ALKS supplier. F to identifyresponsediscrepancies thatmayrequireadditionalfollow-upwiththe to cross-check supplierresponses aboutmaterialscontainedinproducts suppliedand refine asked toreport theiruseof3TG (tantalum,tin,tungstenandgold),theprocessing smelteror To transferinformationthrough thesupplychain,ourin-scopedirect materialsupplierswere new serviceprovider togather informationusingtheConflictMineralsReporting In 2020,wetookafurthersteptoward ourresponsible sourcing strategybymoving toa groundwork forariskmap toidentifysuppliersthatrequire furtherinvestigation. chains. Theresults ofthenew sustainabilityassessment,alongwithothercriteria,laythe to improve thesocial,ethical and environmental performanceofautomotivesupply provide Questionnaire, developed byDriveSustainability andhostedbyathird-party service were askedtosubmitinformationandevidencethrough theSustainabilityAssessment , and the country and mine of origin. This system works with our internal r, procedures and the country of origin. This system works with and mine our internal regions, offered employees the ability to participate in online discussions with discussions online in participate to ability the employees offered regions, r. DriveSustainabilityistheOEMpartnershipwhosemissionto worktogether guest speakers. These virtual events featured sustainability-related topics sustainability-related featured events virtual These speakers. guest or furtherdetailsseetheResponsibleSourcingsection . esetv o aohr opn o ssanblt lae. u epoes not employees Our leader. sustainability or company another of perspective ls eis iiily anhd n AA ad hn xadd o the to expanded then and LATAM in launched initially series, Talks F or t he fi rst ti me, T emplate. su ppliers 15 2020 SUSTAINABILITY REPORT Business Model and Governance Materiality and Stakeholder Engagement Through alltheseevents,we were abletoreach atotalofmore than3,000stakeholders. 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, Manufactur 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 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–Future mobilityoptionsrely oninputfrom avarietyofstakeholders working environment and employeebenefits. Discussions focused on specific topics such as company culture,their internships. to gathertheirexperiencesandperspectivesrelated toworkingremotely throughout Workplace in North America engagedin two online events attractiveness – FCA interns 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 Non-financial disclosure andFCA'ssustainabilityperformance-TheSustainability Team ers’ Association(ACEA)forpassenger carsandcommercial vehicles.
Alliance ofAutomobileManufactur 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 information service, international communication andexhibitionservice. information service,international automotive industryinChina,leveragingitsmainfunctionssuch aspolicyresearch, andtheautomotiveindustry.government Thisgroup promotes thedevelopment of the CAAM isaleadinggr FCA isalsoamemberoftheChinaAssociationAutomobile Manufacturers (CAAM). association’s members. the automotivesectoraswellcoordinating andprotecting thecollectiveinterests ofthe country’s automakerswiththepurposeofaddressing industryandmarketissuesaffecting Fabricantes In Brazil,theGroup haslongbeenanactivememberoftheAssociaçãoNacionaldos space canbemembers. 1suppliers,technologycompaniesandnewentrantstothemobility automakers, Tier public policy, stakeholderengagementandgreater publicunderstanding.Inadditionto Innovation. The new entity aims to speed advancement in transportation through automotive sectorfortheentir ACEA isengagedincommunicationactivitiesabouttherole andimportanceofthe de Veículos Automotores (ANFAVEA). This nationwide association unites the oup aimedatfacilitatingthecommunicationbetweenChinese e EUeconomy, andundertakesastrategicreflection on ers, mergedtocreate theAllianceforAutomotive 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,reflectingDecember31,2020.Asasofwetheorganizationmoveforward, reason, itisnotincludedinthelistoftargetsthissection.ThisReportfocusesonlegacy PSA, theprevious FCA targetis not applicableto the newscopeof Stellantis. Forthis One of the FCA targets hadan expiration year of 2025.Giventhe merger with Groupe however asa part ofStellantis we anticipatesupportingacommonsustainabilitystrategy. such asproduction. Aswe moveforward, wewillnotrelease anewsetofFCAtargets, target objectives. Sometargets were notmetlargely due tothe COVID-19 impact on areas The existingFCAtargetsexpired attheendof2020,withmajorityresults meeting input including topics, material of analysis our years, the Throughout relationships withlocalcommunitiesandbusinesspartners. vehicles; constructive and of dignity; and work rights human respect for inclusive environment; safety and safe healthy, and a governance; corporate quality good as processes; and plants such products, responsible priority environmentally FCA, covered for targets areas These targets. sustainability-focused long-term of development the to contributed stakeholders, key from 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 forazero injuryrate engagement, challengeandreward employees through inclusion, Attract, developandretain thebest activities to supportcompetitivebusiness Implement innovativesolutions aspects Social andGovernance in response toEnvironmental, Foster apathofresilience andgrowth • RESPONSIBLE SOURCING • LOGISTICS • PRODUCTION • • • CUSTOMER FOCUS • • • PRODUCT and improving fueleconomy responsibility amongsuppliers Promote social andenvironmental of logistics while reducing theenvironmental impact Deliver goodsandvehiclesontime of production processes Optimize environmental performance higher satisfactionlevels customers worldwideandachieve Strengthen relationships with the needsofcustomersworldwide Offer competitiveproducts thatmeet passive systemsandoverallroad safety Improve vehiclepreventive, activeand product lifecycle impacts throughout theentire Assess andmanageenvironmental access toaffordable solutions mobility experienceandprovide greater Offer newservicesthatimprove the our products byreducing CO Minimize environmental impactsfrom 2 emissions 17 2020 SUSTAINABILITY REPORT Business Model and Governance Sustainability Targets 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 CORPORATE GOVERNANCEANDVALUES (1) minimize economic,environmental andexternal andsocialimpacts,bothinternal 2020: prevent andmanageemergingriskstoensure businesscontinuityand accordance withlocalconstraints andrequirements human rightsrelated risks across theGroup andimplement remedial actions,in 2020: adopt,maintainandimprove systemsandprocesses designedtoeliminate behaviors insupportofsustainabilityculture andvalues 2020: incorporatesustainabilitytargetsinindividualperformancegoalstodrive Commitment: 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 foster apathofresilienceandgrowthinresponsetoEnvironmental,SocialGovernanceaspects 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,ECPIWorld ESGEquity, andECPIEuro Ethical scoreEarned ofA-onCDPSupplierEngagementRatings scoreEarned ofA-onCDPClimateChangeassessment (1) Key: Target notachieved Target partiallyachieved Target achieved 18 2020 SUSTAINABILITY REPORT Business Model and Governance Sustainability Targets INFORMATION ANDCOMMUNICATION TECHNOLOGY Targets workplace andvirtualsalesexperience 2020: supportFCAdigitaltransformationforsmartmanufacturing, 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 Targets pr 2020: provide long-term,performance-related incentiveplansanddevelopment improve effectiveness intalentacquisition,developmentandretention 2020: conductpeoplesatisfactionsurveysonaregular basistomonitorand and effectiveness 2020: increase work-lifebalance opportunitiestomaximizeemployeesatisfaction complete skillsetandvalueeveryone’s contribution implementation worldwidethrough HumanResources processes, tobuilda 2020: leveragediversityasakeyassetandmonitorequalopportunity constraints the Group’s sustainabilityprofile 2020: developnewinitiativesandchannelstoincrease employeecontributionto corporate volunteerprograms, basedonlocalneeds,policiesandconstraints 2020: strengthen localcommunity involvementthrough regional implementationof Commitment: ograms attheregional level,inaccordance withlocalrequirements and attract, developandretainthebestemployeesthroughinclusion,engagement,challengereward 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 2020 Results
survey results andkeyfindingsunderevaluationfordevelopmentofappropriate actions approx. 30,000hourlyand salariedemployeesinvolved Key: Target notachieved Target partiallyachieved Target achieved
20 2020 SUSTAINABILITY REPORT Business Model and Governance Sustainability Targets OCCUPATIONAL HEALTH ANDSAFETY Targets ultimate goalofzero losttimeinjuriesforallGroup plants 2020: achievecontinuedreduction ininjuryFrequency andSeverityRates,with 2020: achieveOHSAS18001certificationforallGroup plantsoperatingworldwide environment with localneedsandconstraints,topromote healthylifestylesandsafeworking 2020: expandHealthPromotion Program (HPP)toallplantsworldwide,inline Commitment: strive forazeroinjuryrateandtomaximizeemployeehealthwell-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 Targets development oflocalcommunities 2020: serveasacatalysttohelpenhancetheself-sustainingsocial-economic Commitment: support socialinclusionandculturaleconomicdevelopmentinlocalcommunities • • • 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 2020 Results
expanded bedsavailablefortreatment byworkingoninstallationoffieldhospitals support fortechnical,logisticalandproduction programs, suchasmanufacturingfacemasksandventilators donations tocharitiesthatprovide foodservicestochildren Re-imagine Detroit’s EastsideCommunities Árvore daVida Read more Read more Key: Target notachieved Target partiallyachieved Target achieved 22 2020 SUSTAINABILITY REPORT Business Model and Governance Sustainability Targets Targets innovation, mobilityandenvironmental issues technology, engineeringandmathprograms, includinginitiativesthataddress 2020: advanceyoutheducationandtraining,withparticularemphasisonscience, Commitment: support socialinclusionandculturaleconomicdevelopmentinlocalcommunities 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 secondarystudentsattendedRoboticsLicenseforthedevelopmentandcertification of robotic useandprogramming and STEMskills approx. 1,000primaryand secondaryschoolstudentsparticipatedine.DOExperience program, aimedatreinforcing robotics Detroit PublicSchoolsConnected Futures Program withapprox. €435,000 Politecnico ofTurin (Italy)withmore than€2.1milliontosupporttheAutomotiveEngineeringmaster'scourse Key: Target notachieved Target partiallyachieved Target achieved 23 2020 SUSTAINABILITY REPORT Business Model and Governance Sustainability Targets 2020: achieveatleast5%to15%improvement infueleconomy PRODUCT (2) (2) (1) Targets 2020: reduce CO innovation andretain significantpositionamongleadersinEurope 2020: maintainawideoffering ofCNGmodelsinEurope, promote technological 2020: achieve40%reduction inCO sold inEurope, according toEUregulation requirements economically viable,competitiveinthemarketplace,andbeneficialtosociety 2020: developelectric/hybridtechnologies,focusingonsolutionsthatare renewals ofFCAUSvehicles compared withreplaced vehicles/models Commitment: minimizeenvironmentalimpactsfromourproductsbyreducingCO 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 Wrangler 4xePlug-In Hybrid Jeep GrandWagoneer Plug-InHybridconcept Maserati GhibliHybrid Lancia Ypsilon mildhybrid Jeep Renegade4xePlug-InHybrid Jeep Compass4xePlug-InHybrid Fiat Pandamildhybrid Fiat 500mildhybrid New Fiat500electric 2 2 emissionsby30%vs2008onentire Maserati product rangeinthemain three regulated markets(U.S.,China,EU), emissionsinEurope by41%vs2006and45%2000,whileincreasing product portfolioofmass-marketcars 2 emissionsandimprovingfueleconomy Key: Target notachieved Target partiallyachieved Target achieved 24 2020 SUSTAINABILITY REPORT Business Model and Governance Sustainability Targets 2020: minimizeenvironmental impactofmaterialsusedinvehicles Targets Targets network inrelevant markets minimum regulatory requirements withexpansionofqualifiedandcertified ELV 2020: improve efficiencyinmanagementofEnd-of-Life Vehicles (ELVs) andexceed materials vehicles withafocusonrecycling andsubstitutionopportunitiesforcriticalraw 2020: increase theuseofrenewable andrecyclable materialsinnextgeneration Assessment (LCA)methodologies performance certificationthrough integrationofISO14040/44-compliantLifeCycle 2020: offer newproducts (vehiclesandcomponents)withenvironmental our customers connectivity andmobilitysolutionsthatare economicallyviablefortheGroup and 2020: pursueresearch, advancedevelopmentanddeliveryofnewsustainable recovery quotatarget(95%) 2020: outperformEuropean Unionreuse/recycling quotatarget(85%)andreuse/ Commitment: Commitment: assess andmanageenvironmentalimpactsthroughouttheentireproductlifecycle offer newservicesthatimprovethemobilityexperienceandprovidegreateraccesstoaffordablesolutions 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: 2020 Results 2020 Results 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 StradaHard Working CC1.48VFlexvsNovaFiatStradaEnduranceCabinePlusand Key: Target notachieved Target partiallyachieved Target achieved 25 2020 SUSTAINABILITY REPORT Business Model and Governance Sustainability Targets regional benchmarks increased customerloyaltyandadvocacyforourproducts basedonapplicable Targets (1) • • • • encompassing allsafetyaspectswhile: 2020: continuetofocusonvehicleoccupantsafetythrough advancedsolutions CUSTOMER FOCUS Targets 2020: achievetopquartile Commitment: Commitments: Vehicle portfolio will place within the top 25% of benchmark data. data. 25% benchmark top of the within place will portfolio Vehicle safety systemcustomerinterfaces continue tobeanindustryleaderinuser-centered HMIdesignapproaches forall including globalapplications providing technicallyadvanced activesafetysystemsformass-marketvehicles offering modulararchitectures, innovativeandefficient restraint systemsand and Forward CollisionWarning (FCW) Driver AssistanceSystems(ADAS)suchasAutomaticEmergencyBrakes(AEB) maintaining highlevelsofstructuralcrashworthinesswhileintroducing Advanced in allregions adapting totherapidlychangingregulatory requirements andthird-party ratings offer competitiveproductsthatmeettheneedsofcustomers worldwide improve vehiclepreventive,activeandpassivesystemsoverallroadsafety (1) competitivepositionforvehicleportfolio,leadingto 2020 Results • • • • • • • • Models thatachievedfirstquartileplacementinspecificmarkets: • • • • • • Brands thatachievedfirstquartileplacementinspecificmarkets: • • • • • • • 2020 Results
Jeep Compass-APAC Jeep Compass-LATAM Jeep Renegade-LATAM Fiat Strada-LATAM Fiat Mobi-LATAM Lancia Ypsilon -EMEA Fiat Panda-EMEA Dodge Durango-NorthAmerica Jeep -APAC Jeep -LATAM Lancia -EMEA Fiat -EMEA Ram -NorthAmerica Dodge -NorthAmerica 2021 Ram1500achievedU.S.NCAP5-Starrating 2021 JeepGrandCherokee 4x4achievedU.S.NCAP5-Starrating 2021 DodgeChargerachievedU.S.NCAP5-Starrating 2021 DodgeChallengerachievedU.S.NCAP5-Starrating 2021 ChryslerVoyager achievedU.S.NCAP5-Starrating 2021 ChryslerPacificaachievedU.S.NCAP5-Starrating 2021 Ram1500(crew cab) namedanIIHSTop SafetyPick Key: Target notachieved Target partiallyachieved Target achieved 26 2020 SUSTAINABILITY REPORT Business Model and Governance Sustainability Targets performing region (2) Targets personnel developmentandqualitymanagementprograms 2020: supportcustomerexperiencewithinthedealernetworkbyfocusingon 2020: achievecustomerservicelevels Customer Care platformanddedicatedinitiativesorchannels 2020: supportandengageexistingpotentialcustomersthrough aglobal Commitment: 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 strengthen relationshipswithcustomersworldwideandachievehighersatisfactionlevels (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)certificationfor 2020: maintainwaterrecycling indexover95%atallFCAplantsworldwide Targets 2020: extendWCMprogram to99% plants worldwide square meterpaintedvs2010atmass-marketvehicleassemblyandstamping 2020: achieve25%reduction inVolatile OrganicCompounds(VOC)emittedper mass-market vehicleassemblyandstampingplantsworldwide 2020: achieve14%reduction inwastegeneratedpervehicleproduced vs2010at mass-market vehicleassemblyandstampingplantsworldwide 2020: achieve40%reduction inwaterconsumedpervehicleproduced vs2010at 2020: achieve32%reduction inCO (4) (3) (2) (1) PRODUCTION targets foreachcompany 2020: achieveupto98%wasterecovery atGroup plantsworldwide,withspecific vs 2010atmass-marketvehicleassemblyandstampingplantsworldwide 2020: achieve54%reduction inhazardous wastegeneratedpervehicleproduced the EMEAregion electricity suppliedfrom thegridandconsumedbymass-marketvehicleplantsin 2020: useelectricitygeneratedfrom renewable sources for100%ofpurchased mass-market vehicleassemblyandstampingplantsworldwide Commitment: 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 optimize environmentalperformanceofproductionprocesses 2 emittedpervehicleproduced vs2010at (4) ofGroup plantsoperatingworldwideand 2010 (from 0.61to0.53tons CO 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 2020 Results 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 Targets materials whileprotecting partqualityandtheenvironment 2020: leverageexistingandemergingprocesses andtechnologiestomove movement application ofmethodologiesdesignedtoreduce theimpactoffreight andvehicle 2020: enhancelogisticsoperationsthrough optimizationoffleetcharacteristicsand Commitment: deliver goodsandvehiclesontimewhilereducingtheenvironmentalimpactoflogistics 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 Targets and increase awareness ofbusinessimplications along theFCAsupplychainformineralsthatmaybelinkedtohumanrightsabuses engagementstoincrease2020: advanceFCAinitiativesandexternal traceability 2020: monitorCO party auditsofallstrategicsuppliers social risksthrough sustainabilityauditsorassessments;conducttargetedthird- 1supplierswithpotentialexposure tohighenvironmental2020: evaluateallTier or Commitment: 2 emissionsof90-100%topGroup suppliers(representing promote socialandenvironmentalresponsibilityamongsuppliers 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 2020 Results 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 p by whistleblowing the supported was model This stakeholders. all with interacting in workforce our and Company the d 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 ecision-making processes and the approach used by used approach the and processes ecision-making rocess for reporting situations, events, or actions actions events, or situations, reporting for rocess 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 th and Sustainability Committeewas responsible for,The Governance amongother the legitimateinterestsofstakeholders.ThemainelementsCompany'sgovernancestructureasDecember 31,2020aredescribedbelow. The Compa • • • The Board ofDirectors wassupportedbythree Committees: BOARD COMMITTEES a pr mentioned goalsandtoachievesufficientdiversityofviews theexpertiseneededfor The Companyconsidered eachofthesediversityaspectskeydriverstosupporttheabove- debate, balanceddecision-makingandindependentactionsoftheBoard ofDirectors. expertise, workandpersonalbackground andnationalitywasanimportantmeansofpromoting believes thatdiversityinthecompositionofBoard ofDir A diversity policy for the Board of Directors (the Diversity Policy) was adopted, as the Company purposes ofNewYork StockExchangerulesandtheDutchCorporateGover In 2020,wedeterminedthatsevenofour12Board membersqualifiedasindependentfor Company wastobevestedintheBoard ofDirectors and theChiefExecutiveOfficer. to-day responsibility withintheCompanyorGroup. Thegeneralauthoritytorepresent the management oftheCompany, andninenon-executive Directors, whodidnothavesuchday- the ChiefExecutiveOfficer 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- of Directors andduringthe annualperformanceassessmentprocess. Committee considered such factorswhenevaluatingnomineesforelectiontotheBoard to theCompany'sbusiness.TheBoard ofDirectors andSustainability anditsGovernance Corporate Governance Compensation Committee. Audit Committee andSustainabilityCommittee Governance ings, assisting and advising the Board of Directors with: i) the identification of the oper understanding of current affairs and longer-term risks and opportunities related ny’s governancesupportedhowwedidbusinessonadailybasis,enablingustopursuesustainablegrowthandcreate valuewhilerespecting , and the Chief Financial Officer), having responsibility for the day-to-day , and the Chief Financial Officer), having responsibility for the day-to-day ectors intermsofage,gender, nance Code. members were tobeindependent. and comprisedofatleastthr andSustainabilityCommitteewaselectedbytheBoard ofDirectorsThe Governance sustainability-related issues,andreviewing theannual SustainabilityReport. and vii)reviewing, assessingandmakingrecommendations astostrategicguidelinesfor and practices,managementstandards, strategy, globally; performanceandgovernance monitoring and evaluating reports on the Group’s sustainable development policies vi) 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 i periodicassessmentofthesizeandcompositionBoar ii) criteria, professional and personalqualificationsforcandidatestoserveasDirectors; perceived areas forimprovement. as wellsteps that couldbetakentoaddress specific requests or the functioningofBoard ofDirectors ofFCAanditscommittees, was giventowhatactions,ifany, couldenhanceandfurtherimprove Dir 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 ectors, itscommitteesandtheindividual Directors. Consideration ee Dir ectors according toitscharter. More thanhalfofthe d ofDirectors; iii)periodic
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 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 addr 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,please readhere . efficiency researcheffortsintwo areas:reducingvehicledemandenergy,aswell efficiency ofourproducts.Historicall y, weconcentratedthemajority ofourfuel aspect ofourbusinessthataffects climate-relatedriskscentersaroundthefuel report oftheCEOandreportedouttoBoardDirectors in2020.Asignificant transfer acrosstheentireenterprise.TheCTOwasamember oftheGEC,adirect (R&D) andwasresponsibleforstimulatingopportunitiesforynergies andtechnology development activities.Inparticular,theCTOledFCAResearchandDevelopment The ChiefT propulsion systems andalternativefuels.For moreinformationabout FCA's technologies including: engines,transmissions anddrivelines,hybridelectric and greenhouseemissionsreduction activitieswereprimarilyfocusedonpowertrain as reducingfuelconsumptionand greenhousegasemissions.Fuelconsumption and managing the climate-related risks and opportunities that had the potential echnical Officer(CTO)coordinatedtheglobalinnovationand product essed. Climatechangerisksandopportunitieswere considered, among
• risk governance in their respectiverisk governance region/secto related risksandopportunities,RiskManagementCommitteeswere responsible for supporting andmanagementofclimate- Among organizationalstructures assignedforthegovernance • • Compliance, TechnologyDevelopmentandProduct Launch,Product Portfolioand 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 tofueleconom TheProduct Committeeoversawcapitalinvestment, engineeringand to supportriskgovernance. In addition,weutilizedtheoperationalfocusofourexistingProduct andCommercial Committees facilitate ourintegratedriskassessmentprocess. operations. ThemissionofthisCommitteewastoprovide broad process oversightandto representatives Audit functionsandfrom from business theLegal,RiskManagement,Internal chaired bytheGroup CFO,whowasalsoaBoard ofDirectors membe ieiod ht h rss cu ad h mtgtn fcos dpe b or ru. For Group. our by adopted factors more information aboutFCA's riskmanagement, pleaseread here. mitigating the and occur risks the that likelihood risk were considered significantrisks,based onthepotentialimpact our organization,the profitabilit its strategicgoals,havingthepotential togenerateasubstantivechangeinGroup operations, ability toachieveimpacts that could hinder FCA’s risks), theCompanyalsoidentifies substantive When identifyingorassessingany riskeventsincludingclimate-related risks(i.e., transition Strategies aswellInterruption of CriticalSuppliesandriskscarcity ofrawmaterials. information aboutFCA'sfleetemissionsandfueleconomy, pleaseread GEC, adirectreportoftheCEOandreportedouttoBoardDirectorsin2020.Formore products includinggreenhousegasandotheremissions.TheCTCOwasamemberofthe Regulatory Complianceorganizationwhichfocusesonenvironmental-relatedmattersforour The ChiefTechnicalComplianceOfficer(CTCO)overseestheglobalVehicleSafetyand 2020. FormoreinformationaboutFCA'sproductionperformance,pleasereadhere. a memberoftheGEC,directreportCEOandreportedouttoBoardDirectorsin planning foroperationalenergyefficiencyandrelatedCO The ChiefManufacturingOfficer(CMO)overseesallFCA'smanufacturingoperations,including including theBoardofDirector’s GovernanceandSustainabilityCommittee. climate-related data.Onanannualbasis,thepositionreportstoBoardofDirectors, environmental, socialandgovernanceperformanceatthegloballevel,whichincludes member, andcoordinatestheactivitiesofSustainabilityTeamthatmonitorsFCA's The ChiefAudit,SustainabilityandComplianceOfficer,reportstotheCEO,wasaGEC , andbrandreputation.Risksidentified to havehighor medium-high levelsof residualy, r. TheGlobalRiskManagementCommitteewas y, emissionsandvehicleelectrification, 2 emissionsreduction.TheCMOwas r. Othermemberswere here. Technology
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 Discussions betweenstakeholdersandtheBoard Committeeregarding sustainability of ourcommitmentsandresults. cost optimization, stakeholder engagement and effective communication to stakeholders facilitates thegoalofcontinuousimpr The SustainabilityTeam, withmemberslocatedinItaly, Brazil,ChinaandtheU.S., the sustainabilityachievementsandobjectives. related tostrategicsustainabilityinitiatives,advisesthefullBoard asnecessary, andreviews management. TheBoar Several entitieswithintheGroup, helpdirect adisciplined approach tosustainability among ourmanysuppliers. were involved.TheGroup alsoactivelypromotes environmental andsocialresponsibility from thetopofmanagementchaintoworkersinplantsandofficesaround theworld of sustainabilityaspectswithintheCompany In order toimplementmeaningfulsustainabilitypracticesandoptimizethemanagement well ascommunityservice. includes integrity, respect forothersandacommitmenttoenvironmental protection as improvement. The commitment tosustainability arises from acorporate culture that th 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 e needs of internal and external stakeholders, and to identify and opportunities external fore needs of internal were carried out by the Sustainability Team as part of its assignment to maintain d’s andSustainability Committeeevaluatesproposals Governance ovement, contributingindirectly toriskmanagement, , allareas, functionsandlevelsofemployees, The fullsetofguidelineswasavailable onthecorporatewebsite. 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 (UN) De 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 and marketingcommunication, ConflictMinerals. sustainability for suppliers, environmental management, responsible taxation, advertising These covered, amongothers,mattersrelated tohumanrights,competition, Company’s accountabilityandcommitmenttoaculture ofresponsibility andintegrity. Statements, includingGuidelines,thatcovered specificissuestoemphasizethe certain geographicalregions and/orbusinessesasappropriate. achieving compliancewiththeCode,andthatmayhavespecific applicationlimitedto Procedures thatfurtherarticulatedtheCompany'sspecific operationalapproach to overarching Principles.The PracticessupplementedthePrincipleswithusefuldetail. Practices thatwere thebasic rulesthatguidedourdailybehaviorstoachieve and personalconduct. Principles thatcaptured the Company'scommitmenttocore ethicalvaluesinbusiness claration of Human Rights, the International Labour Organization (ILO) Conventions claration of Human Rights, the International 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’ One oftheCommittee'sresponsibilities wastodesign,implementandoversee Company's AuditCommittee. Compliance Committees.TheCommitteereported totheCEOand and theChiefFinancialOfficer, andwassupportedby regional Ethicsand Compliance Officer The Committee’s membersincludedtheChiefAudit,Sustainability and integrity andcompliancewithapplicablelaws,regulations andCompanypolicies. Group level,andsupported thegoaltocontinuouslyimprove anethicalculture of Company’s AuditCommitteeandmanagementinorder tohaveoversightat The FCAEthicsandComplianceCommitteeprovided assistancetothe s ComplianceProgram. The ComplianceProgram wastailored , theGeneralCounsel,ChiefHumanResources Officer
obligations undertheCodeofConduct. promote theFCAculture ofintegritywhilefamiliarizingtheworkforce withits the complianceteamandothers.Inaddition,globallocaltraining helped including communicationsfr 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 wasintendedtoensure thatthe pr training andcommunicationplans,theEthicsHelpline,anassessment ogram withanoutsideethicsorganizationthatensured continuous 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 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 inthehandling of concerns, om seniormanagement,middle
35 2020 SUSTAINABILITY REPORT Business Model and Governance Corporate Governance Violations 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. provide have beeninconsistentwiththeFCACodeofConduct.Itwasmanagedbyanindependent telephone andwebtoreport ofallegedsituations,events,oractionsthatmay anyconcerns The EthicsHelplineoffered aworldwide,commonandindependentintakechannelvia or regulatoryconcern,anyconflictofinterest,throughtheEthicsHelpline. anonymously ifdesired,communicateanyconcern,includingvehiclesafety,emissions FCA's workforce and business partners could always effectivel placed theCompanyatrisk,andmayhavebeensubjectofdisciplinaryaction. or reports authorities.Anyfailure togovernmental inreporting suchviolationscouldhave but notlimitedto,issuesinvolvingvehiclesafety,emissions,financialreporting, violations oflaw, regulation orCompanypolicyofwhichtheybecomeaware, including non-compliance. Unless locallaw provides otherwise, employees were directed to report The FCACodeofConductclearlyandaffirmatively required employeesto report issuesof ACTING RESPONSIBLY • • • • checks performedaspartofthestandard operatingprocedures. periodic activitiescarriedoutbytheAuditandCompliancedepartment reports madetomanagement orHumanResources reports received through theEthicsHelpline r, available24hoursadaysevendaysweek.FCAchosethisreporting channelto y, and in most countries years forallothercompanies. to ensure 100%coverageeverythree yearsofallcommercial companies,andeveryfive professional opinions.Themostrelevant risksarisingfrom theassessmentwere audited and sectoraswellqualitative criteriasuchasinterviewswithseniormanagementand of theallegationswithaspecificfocusonsignificantcases. The FCAAuditCommitteeoftheBoard ofDirectors wasperiodicallyupdatedonthestatus Compliance Committee.Therelevantfunctionswere internal notifiedoftheviolations. at theregional levelandwhere deemednecessaryescalated totheglobalFCAEthicsand results FCA analyzedandinvestigatedtheallegationsreceived through theEthicsHelpline; Total including those 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 Workforce Our Protecting Conducting Business Parties External with Interacting Managing Our Assets and Information by category Violations oftheCodeConduct and anypotentialactionswere assessedbytheEthicsandComplianceCommittee related to corruption on the basis of quantitative criteria: location, activity, Total c losed cases 1,663 1,169 308 113 73 Total confirmedcases [ 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 partners, withwhomwedobusiness,toadhere tothesestandar 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 • • • • 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 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. Business partnersandsuppliers: FCAexpectedoursuppliers,contractorsandother communities where wehadoperations. Communities: FCAwascommittedtosociallyresponsible engagementwiththe our customers. Customers: FCAwascommittedtooffering safe,reliable, high-qualityvehiclesto the workplacewasminimized. improving healthandsafety measures tohelpensure thatthepotentialforinjury in workforce inaccordance withapplicablelawsandwasdedicatedtoconsistently our worldwideoperationswiththehighestregard for thehealthandsafetyofour 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. Employees: FCAprohibited theuseofchildandforced labor. We soughttoprovide ds.
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 in anyofthecompaniesmapped. issues. In2020, noincidents of childlabor orforced andcompulsory laborwere reported including thoselocatedincountriesthathadnotratifiedILOConventionsonthese an annualsurveyaimedatdetectingchildandforced laboratworldwideFCAcompanies, DATA PRIVACY RIGHTS had ar employees, contractors,suppliers, customersandotherpersonswithwhomwe FCA collectedasignificantamount ofpersonallyidentifiableinformation relatedto risks andincidents. personal andsensitivedata,theprevention ofpotentialprivacyandsecurity website, andspecificPrivacyPolicies,provide guidanceonthemanagementof Conduct andDataPrivacyGuidelines,whichwere availableonourCompany in caseofunlawful dataprocessing. will beused,exercising therighttolodgea complaint withasupervisoryauthority andtransparencyfairness toensure thatthedatasubjects trusthowtheirdata world thatgover FCA aimedtooperateinaccordance withthelawsandregulations around the as confidentialityandpersonaldataprotection rights. be fundamentalinourbusinessrelationships andintendstoprotect valuessuch FCA considered thepersonal rightsandprivacyofeacheveryindividualto elationship. Treatment ofthedatarespected theprinciplesoflawfulness, n thecollectionandprocessing ofpersonaldata.
Our Codeof sector, inparticularwiththeincreasing relevance of connected vehicles. with privacyregulations relating tonewtechnologiesappliedtheautomotive Automobile Manufacturers’ Association(ACEA),sharingbest practicestocomply In particular, FCA participatedactivelyindiscussionsledbytheEuropean in workinggr FCA provided trainingandawareness withintheGroup companiesandtookpart Regional PrivacyOfficeswhichconsistofICTandLegalprofessionals. regulations. Alongwithcollaborating witheachother, theysupportedtheir providing guidancetotheorganization onrequirements ofrelevant dataprivacy Organization. RegionalandBusinessDPOswere responsible fordefiningand appointed theGr theaimofpromoting andmonitoringthedataprivacycompliance,FCA With data storageandexchangenetworks. design” and“privacybydefault”wasconstantlyimpr The Group hadalready committedtotheessentialprinciplesof“privacyby ind In 2020, the human rights self-assessment compliance checklist was performed by • • • • • • Areas covered bytheself-assessmentinclude: wer potential violations,includingtheFCAEthicsHelplineandworldwidecontactlistwhich 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: Child laborandyoungworkers Supply ChainManagement Security Conditions ofemployment Freedom from discrimination Forced labor ividual legal entities and reviewed by the Audit and Compliance organization, with e availableonourcorporatewebsite. oups amongprofessionals tofostertheexchangeofbestpractices. oup DataProtection Officer (DPO)whodefinedtheFCAPrivacy
oving thesecurityofits 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-carbonfutur 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. W Responsibility forprotecting theenvironment rested witheveryoneatFCA,aswell aswith involvement oftheentire manufacturingworkforce. our manufacturingoperationsbyapplyingmethodsandstandards withrigor, andwiththe to evaluateandaddress alltypesofoperationalwasteandlosses,reduce injuriesat structur 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. Ourappr 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. ed production system that promotes sustainable, systematic improvements aimed oach tor e. esponsible vehicledevelopmentincludeddedicationtoefficient 2 emissions and improve fuel emissionsandimprove fuel e encouragedthesafe 2
included appropriate anti-corruptionrepresentations, warranties andrelated clauses. acquisition transaction,andensur 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 engagedthir These principlesappliedtothird parties that actonFCA’s behalf.Each FCAcompany Company. Facilitatingpaymentsor"grease payments"aswell commercial bribery official for an improperto a government purpose in connection with their work for the shall dir 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. Pleaser Most ofthecompany'stargets,includingthosementionedabove,expired attheendof (accounting forabout57%ofpurchases byvalue)2020. gas emissionsandsetatargettomonitorCO FCA alsohelpedmobilizesupplierstobecomeactivelyinvolvedincuttinggreenhouse worldwide. management aswelltheadoptionofinter Global goalsforourmanufacturingoperationsfocusedonenergy, waterandwaste replaced vehicles/models. improvement infueleconomyformajorrenewals ofFCA US vehiclescompared with year fueleconomyreduction targets,includingtheachievementofatleastafiveto15% industry year In the U.S., we targeted actions in support of the U.S. EPA/NHTSA’s goal of increasing (i.e., improper officials)were transactions notinvolvinggovernment alsoprohibited. ectly orindir -over-year averagefleetwidefueleconomyperformance. We setyear-over- efer totheSustainabilityTargets sectionofthisreport formore information d partiestoactonitsbehalfwasensur ectly, give,offer, promise, authorize,solicitoracceptanythingofvalue ed thatthefinalagreements inanysuchtransactions national certificationsforourplantsoperating 2 emissionsofatleast90%topsuppliers e thatsuchrepresentatives
39 2020 SUSTAINABILITY REPORT Business Model and Governance Corporate Governance had inter Conflicts ofinterest could arisewhen membersofourworkforce engagedinactivitiesor interest disclosures through theFCAEthicsHelpline. potential conflicts,theGr Thus, in order to assist the workforce in the management of conflicts of interest or any the performanceofwork-related duties. interests couldcompromise objectivebusinessdecisionmakingorotherwiseinterfere with the highestdegr When dealingwithourbusinesspartners,workforce wasexpectedtoalwaysmaintain Guidelines, periodictraining,awareness andcounseling. we adoptedacomprehensive complianceprogram, which includedCompetition Company’ 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 ests thatcompromise theinterests ofourCompany, becausetheseactivitiesor s commitmenttocomplianceinthisar ee ofintegrityandtoactsolelyinthebestinter oup implementedadedicatedmoduletosubmitconflictsof ea inallcountrieswhere we dobusiness, ests oftheCompany. 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 authorized attheappr Political contributionsbytheGroup were onlyallowedwhere permitted by lawandmustbe applicable localprocedures. applicable laws and ethics rules as well as in full compliance with the Code and any were madetopoliticalparties. gover As reported intheCode of Conduct, the Group was committed toconducting our nment andpublicinstitutionrelations, includinglobbying,inaccordance with opriate levelwithineachGroup company. In2020,nocontributions 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 t 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 o identify and capitalize on the opportunities generated generated opportunities the on capitalize and o identify 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 • euaoy ntaie; opttv atos idsra acdns ntrl iatr; ik psd y lmt cag; iblt cam and claims liability change; climate by chain. posed risks disasters; natural accidents; lawsuits; industrial actions; competitive initiatives; regulatory uncertainty; socio-economic including possibilities, of array broad a encompass business our to risks of mitigation and management The environment. • 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 provides acompetitiveadvantageinfast-changingand challengingglobalbusiness The riskmanagementprocess usedisafactorinoursustainabledevelopmentand • Risk Management appr the BusinessContinuityManagementprocess, whichestablishesandvalidatesastructured metrics forkeyglobalrisksthroughout theyear. development ofinnovativerisksolutions. and naturalhazard risks,but havebeenextendedtoseveralotherpure risksthrough the process for effectiveness. These activities are not only focused on the more common fire events thatimpairproduction across multipledaysand/or manufacturingplants. place, determinethe and prioritizerisksbasedonimpact,likelihoodcontrols, andmitigationactionsin could hindertheabilitytoachieveourstrategicgoals.Allregions collaboratetoidentify the Enterprise Risk Management process, which increases visibility to keyrisks that optimized business interruptionlosses;assignsprobability andestimatestheimpact;implements the LossPrevention process, whichidentifiesconditionsthatcould result inproperty and oach tor portfolio management and investor decisions; employee health, safety, and retention issues; and similar exposures within the supply the within exposures similar and issues; retention and safety, health, employee decisions; investor and management portfolio prevention, protection, and risk transfer countermeasures; and monitors the estoring normalbusinessoperationsaftermajordisruptions–typically those acceptable risktolerance, and monitor mitigation actionsandrisk
potential risks,andformulaterisk mitigationplans. segments. Thesemeetingsprovide theforumtofacilitatediscussion,identifyandevaluate responsible forconducting cr We appointERMcoordinators foreachoperatingsegment oftheGroup, whoare • • • 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. Adheringto Governance EnterpriseRiskManagementmodel)andtheprinciplesofDutch Corporate - Committee ofSponsoringOrganizationstheTr Our approach tomanaging thoserisksisbasedontheframeworkestablishedby impact theCompany’s abilitytoachieveitsobjectives. FCA's EnterpriseRiskManagement(ERM)modeldefinesariskasanyeventthatcould ENTERPRISE RISKMANAGEMENT cross-functional: through riskassessmentwithdirect involvementofbusinessareas. predictive: through prospective riskassessment mitigating actionsidentifiedand/orimplemented dynamic: duetoperiodicevaluationofthemainriskswithfollow-up andmonitoringof oss-functional meetingswiththeheadsofkeyoperating eadway Commission(COSOReport 42 2020 SUSTAINABILITY REPORT Business Model and Governance Risk Management 2020 FCAAnnualReport. For furtherdetails,seeSignificantRisksIdentifiedandControlMeasuresTakeninthe materials; commercial policies;andcorporatecybersecurit portfolio andtechnologystrategy;developmentproduct launch;customer Key globalrisksidentifiedinrisks2020includerelatedtoregulatorycompliance;product An enterpriseriskassessmentisperformedannuall driving toanalignmentwiththeglobalfocusrisksforGroup. disclosed inthematerialitydiagram,were includedintheERMriskassessmentdiscussion, subsequently definedeachidentifiedrisk.sustainability-relatedforInaddition,as topics, has beenclassifiedb risk categories ndc m ontrol easures aa ndmitigating are y a ctions satisfaction; talentmanagement;interruptionofcriticalsuppliesandriskscarcity ofraw Directors intheirresponsibility forstrategicoversightofriskmanagementactivities. Once validated,results are submittedtothe Audit Committee,assistingtheBoard of focusrisksg lobal significant an dmonitoring reidentified tions areestablished. ac a Committee (GRMC)andGroup ExecutiveCouncil(GEC).Aspartoftheconsolidation, results intoaGroup report forreview andvalidationwiththeGlobalRiskManagement Chief OperatingOfficersandtheGlobalRiskOwners.ThecentralERMteamconsolidates segments viewfor each functional areas, and includes thereview by theresponsible y , basedonaglobalandoperating y. Eachkeyglobalfocusrisk
t risk manufacturingplantsintheUnitedStates,CanadaandMexico, accountingformore By theendof2020,BusinessContinuityPlanshadbeendeveloped for23ofthehigher r The results andprioritiesof theBusinessContinuityManagementprocess are reviewed • • • 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 han 90% of FCA's total North America revenue attributed to vehicle sales. Plans have also egularly bymanagement. Elements oftheplanare testedannually, ataminimum,through asimulationexercise. recovery A production systemuntilr Key operationalrisksandmitigationinitiativesmaythenbeassociatedtoanyfacetofthe vehicle orcomponentproduct lineswithineachplant resultant financialimpactofeachplant.Financialisalsodeterminedforindividual An enterpriseimpactanalysisiscreated toidentifyplantinterrelationships, andthe knowledge canbeshared across businessunitsand plants Current recovery strategiesare documented.Dataismadeavailabletoemployees,and infrastructur Critical production processes foreachplantare mappedtokeyinputs,includingfacility Business Continuity Plan is developed to summarize information required for business . Aflexibleappr e, pr ocess equipment,datatechnology, humanresources, andsuppliers. oach allowseachplanttodevelopasituation-specific response. esolved - 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 • Disaster RecoveryenablesFCAto: outlined bytheNationalInstituteofStandards andTechnology (NIST). Disaster Recovery program is executed within ICT, following standards and guidelines compliance. Theregional ChiefInformationOfficersar 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 FCA Servicesistheshar activities, FCAServiceshasputBusinessContinuityPlans(BCP)inplaceitsoperations. Because disruptionstobusinessoperationsmayalsoimpactnon-manufacturing • • conducting businessatFCA help ensure the safety and well-being of personnel, customers, and other individuals meet ourcontractualandlegalobligations. minimize thelossofdata,revenue, andcustomersintheeventofadisaster ed servicecenterdedicatedtosupportingFCA'sworldwide e responsible forensuringthatthe
• All • • • • operations, allowingemployeestocarryouttheiractivitieswithout impact tothebusiness. pandemic, theBCPwasactivatedsuccessfullyin2020allcountries where FCAhas and consistentimprovement oftheBusinessContinuityPlan.DuetoCOVID-19 CA Services Business Continuity activities are reviewed every year by a Steering auditorstoassure thecorrectness andindependentexternal Committee aswellbyinternal • • • • This BCPincludes: disruption scenariostobepr Business ContinuityPlanenhancementsasaresult oftestingperformed. involve andtrainemployees testing, from simulation exercises to full testing, to ensure the validity of the plan and consistent control andmonitoringofeventsthatcouldimpactthebusiness covering incidentsthatcouldaf Business ContinuityPlanswithallstepsandactionstobetakenincaseofadisruption campaigns andnewsletters Business r Key PerformanceIndicatortoassessthecorrect alignmentofallpartieswiththeBCP and newcountermeasures are implemented evaluate financial,r Enterprise Risk Assessment and Business Impact Analysis to identify the risks and Policies andProcedures regularly updatedfollowedbyallFCAServicescountries F equirements andthefullachievementofallobjectives Continuity training including a number of awareness-raising activities such as eputational andoperationalimpact.To mitigatetherisks,actionplans epared addressing adversesituations fect partorthewholecompanybusinessprocesses
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 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 pr 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 presidium Protection systemsmaintenance Human factorprevention innovative engineering solutions related to physical risks created by natural operty damagethatcouldresult ininterruptionstoour protection forthoseactivitiessusceptibleto newrisksattheplantsconcerned. the emergencyperiodinorder toensur The LossPrevention teamwasalsoinvolvedinseveralinitiatives launchedduring • • • • advisors, re-analyzed allthe activitiescarriedout,actingonfourspecificlevels: In response, theLossPrevention team,withthesupportofriskengineering pe pause" "production It wasvitalthatlossprevention activitiescontinuedduringthe Seize opportunitiespresented byacrisisperiod. Increase focusoninnovationandtechnology Simplify allbusinessprocesses Identify andprioritizeallactivitiesdeemedindispensableunavoidable riod, whichdidnoteliminatetheGroup’sriod, industrialrisksbutintroduced newones. The Loss Pr • in-depth andconsistentassessmentofriskacross theGroup. consulting firmsspecializedinindustrialrisk.Theyusefieldauditsto provide animpartial, controlling, monitoringandr 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, centralizing andconsolidatingrelationships withglobalinsurancemarkets. risk transferprograms minimizing thecostofriskbyoptimizinglossprevention, investment,self-insuranceand standardsadopting higherinternational forriskprevention preventing accidentsormitigatingtheireffects evention Managementpr eporting riskatalllevels.Fourpillarsdescribeourapproach: e thehighestlevelofprevention and ocess is conducted with the support of external ocess is conducted with the support of external
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 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 risk re-engineering project earthquake riskre-engineering project insurable environmental risk management risk engineeringapproaches andsolutionstobetter
OVERCOMING 2020CHALLENGES prevention procedures. appreciated, thewebclasseswillbecomeanintegralpartof therisk related tofire prevention. Duetotheireffectiveness, theinitiativedeeply some 65Group plants.Thewebclassesdealtwithdifferent issues various regions. Twelve webseminarsabout150specialists from via webtoalllossprevention specialistsworkingfr 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;pr Loss prevention remote riskdialogue: 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 Industrialriskanalysisactivities om homeinthe ovide 46 2020 SUSTAINABILITY REPORT Business Model and Governance Risk Management pr 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 INSURABLE ENVIRONMENTALRISKS managed, enablingtheGroup tosecure insurancecoverage. environmental riskshave beenadequatelyidentifedandquantifedare properly assessment tool.Resultspresented totheinsurancemarketconfrmthatFCA’s insurable • enables theGroup to: This program, ofthelossprevention whichhasbecomeacornerstone activitiesofFCA, Group, consultancyandcertifcation and insurancepartner. frm, an a major international in collaborationwithEnvironment, HealthandSafety(EHS)departmentsacross the FCA usesaninnovativeenvironmental riskmanagementmethodologydeveloped and quantifedusingthismethodology Since thelaunchofproject, 92%ofFCA’s worldwidetotalinsured valuewasanalyzed • • • • obtain objectiveandquantifedassessmentsofitsinsurableenvironmental exposures execute prevention activitiesinlinewithGroup strategies. potential loss obtain environmental insurancecoverageappropriate tothelevelofriskexposure and inform theinsurancemarketofactivitiestoprevent andmitigatepotentialenvironmental losses understand andclearlycommunicateprioritiesbenefts ovide aquantifcationoftheoveralllevelrisk,usingscientifcally-based certifedself- . Further, tovalidateinformationcollectedthrough 86
A will beupdatedduringeachsubsequent survey. above identified were sites flood industrial for methodology This techniques interpretation along withfieldchecks. instrumental and visual on based analysis risk their provide companies macro insurance the of engineering departments The first portfolio. risk the of analysis the hazard for modeling mathematical natural and on imagery their based satellite tools geomorphological by mapping provide Enabled companies reinsurance the leaders. centers, research global reinsurance and recognized FCA four insurance of engineering of departments prevention loss effectiveness the from the specialists of confirm maps risk To consisting team working a formed updated tools. has Management Risk Fiat Chrysler requires methodologies, modeling assessment advanced risk using flood obtained objective and effective An FLOOD RISKPROJECT quantitative seismicassessment. 126 selectedFCAsites,withfurther13nolongerwithinscope,wer Since itsinceptionin2013,theIntegratedApproach hascovered theGroup worldwideand building structuralresponse, andtheuniqueeconomic activitiesandassetvalues. ofallbasiccomponentsofrisk:thattheseismichazardofthesite,theexpectedquantifcation and rationalallocationofavailableresources. Thismethodology encompassesindividual management, amulti-levelframeworkthatallowssimultaneousseismicriskassessment and universities,developedtheIntegratedAppr Fiat ChryslerRiskManagement,incollaborationwithspecializedriskconsultants potential propertydamageandbusinessinterruption. program engineering affecting events estimates EARTHQUAKE RISKPROJECT
out ik aaeet decision-making management risk robust . The initiative is considered complete and the risk the and complete considered is initiative The methodology. f xetd oss u t simc vns I te at eae seismic decade, last the In events. seismic to due losses expected of nutilzd onre hv dmntae ta a structured a that demonstrated have countries industrialized
s oetal epsd n al ee enlzd plig the applying reanalyzed were all and exposed potentially as ae o sud ik siain s ia t cnrl xoue to exposure control to vital is estimation risk sound on based
risk assessment was applied globally and 97 and globally applied was assessment oach toseismicriskassessmentand
rcs rqie quantitative requires process e analyzedproviding
assessment
risk- 47 2020 SUSTAINABILITY REPORT Business Model and Governance Risk Management hs lbl rjc am to aims project global This PARKING LOTPROJECT FCA and,where needed,recommend riskreduction actionplans. losspreventionteam todeterminetheiralignment withinternational standards adoptedby pr with deductivemethodologiesthat measure theirriskmanagement andbusinesscontinuity Large, globalsupplierswithwell-structured riskmanagement organizationsare analyzed components. to ensure thatriskmanagement pr Suppliers whoare identifed undercertainriskcriteriaare encouragedtoworkwithFCA started tobeextendedtheotherregions. large componentmanufacturinggroups andsmallersuppliers.In2020,thismethodology in EMEA2017usingadedicatedriskrankingtool,theGlobalRisk Index,toselectboth in termsofsupplierriskidentifcation,quantifcationandmapping. Awaslaunched pilot to levels tier lower at profiles supplier exceptional and everyday chain, supply both the risks along manage that strategies implement to strives FCA SUPPLY CHAINRISK of property andbusinessinterruption risks.Theinitialstudyconfrmed Our supplychainriskapproach wasdevelopedin2015,focusingonanalysisandmitigation that tools develop to support supplychainmappinghasbecomeanimportantfocus. Working disruptions. supply potential of event the in response supported bytheGroup riskengineeringpr teamcomprisedoflogisticsandriskmanagementspecialists An international hazards andexternalexposure. expose • The initiativecovers227FCAvehicleparkinglotslocatedin33countries. • • collect keydatatoquantifyandcompare risksonaccumulationandpotentialexposures appropriate actionplans. defne both prevention and protection risk treatment priorities and outline the most and priorities produce bothglobalexposures andspecifchazard riskmapshighlightingtoprisks ocesses andprocedures. Smallersuppliersare visitedbyaspecializedlossprevention finished FCA vehicles stored in parking lots to damage such as fire, hail, natural hail, fire, as such damage to lots parking in stored vehicles FCA finished
ses n pociey aae aua hzr rss that risks hazard natural manage proactively and assess
throughout its many tiers. It is critical to understand to critical is It tiers. many its throughout ocesses inplaceare ableto secure thefow of key
ovider developedariskmappingtoolto: nue cmlt rs assmn and assessment risk complete a ensure theexpectedresults
• • of acomprehensiveandthoroughanalysisof: basis the on designed is coverage insurance risk cyber dedicated place. FCA's in processes management risk other with consistent is initiative this that ensures management function risk The resilience. Where their enhance analyze further practices. that improvements best focused necessary, team, they recommend industry with prevention alignment verify loss to processes Management macro ICT Risk the globally Chrysler Fiat the by leaders, market coordinated insurance and and experts risk cyber FCA of composed teams Specialized • CYBER RISKMANAGEMENT policies andpr protected andatwhichlevel the threats ofexposure ofvitalcompanyassets,including theinformationthatmustbe plans andprocedures 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 caree processes designed to secure the talentrequired bythebusiness and provide employees To achievetheCompany'sobjectives,HumanResources functionsupportsrobust respond quicklytothemarketandcompetitiveactions. as act creativity knowledge, their and bring levels all at employees FCA FCA worldwide Workforce byGeographicArea EUROPE 30.8% AMERICA LATIN 17% Employees xeine o h jb n re t ietf opruiis and opportunities identify to order in job the to experience catalysts for change. This enables the Group to adapt and adapt to Group the enables This change. for catalysts ASIA 1.9% REST OFWORLD 0.1% r, from recruiting toretirement. 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% 70.9% HOURLY 51 2020 SUSTAINABILITY REPORT Employees and Community Employees Gender Equalitythr 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,Gay andLesbianAlliance, Company's tenBusinessResource Groups include:AfricanAncestryNetwork,Asians In additiontocorporateinitiativesfocusedondiversityandinclusion, inNorthAmericathe technical careers among women. 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 oppor 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 several pr 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, tun ities based onmerit without regard to race, color, sex, sexual orientation, ograms tofosteradiverseandinclusiveworkenvir ough anumberofactivitiesthataimtoadvancether onment amongemployees. ole ofwomenin
Professional Salaried FCA worldwide (%) from thepriorsurvey. (14 mapped),employeeswithdisabilitiesmadeup3.7%oftotal employees,anincrease workforce. Thesurveyshowedthatinthecountrieswhere regulatory requirements exist with disabilitieswasconductedacross 39countries,covering99% of theGroup's total countries wher 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 Hourly Women byEmploymentCategory Manager w orkforce e legally allowed. In 2019, a survey monitoring the employment of individuals e legallyallowed.In2019,asurveymonitoringtheemploymentof individuals 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 avirtualTalentalktoprovide and aplatformforlearning European FormulaSAEevents.In2020,FCAtookpartinthejury oftheDesignforFuture 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, at eachstepfromrecruitmentthroughretirement. beginning skilled as especially workforce, our they of expectations evolving ever the recognizes FCA TALENT ATTRACTION talent intoday'sautomotiveindustry. foundational elementsaswecontinueouref We expecteverydecision,includingtheappointmentofleaders,tobeinfluencedbythese • 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 • • • • • • • we recognize andreward performance we valuediversityandinclusion. in allwedo we collaborateandsimplifydecisionmaking,strivingforspeed,rigordiscipline we holdeachotheraccountablethrough transparency, honesty and constructivedebate we deliverwhatpromise we aimtoachievebest-in-classperformance we embraceandcherishcompetition we defineleadershipasleadingchangeandpeople relate to rewards and challenges. Aligning FCA's current and future needs with needs future and current FCA's Aligning challenges. and rewards to relate rfsinl, hte toe led pr o tdys okoc, r hs just those or workforce, today's of part already those whether professionals, their career, makes attracting and retaining talented individuals a top priority top a individuals talented retaining and attracting makes career, their forts tobeanorganizationofbest-in-class problem-solving skillstoamulti-sectorpanelofbusinessexecutives. they present givesthesestudentsanopportunitytodemonstratetheirknowledgeand leading businessschoolstocompeteformore than€43,000inscholarships.Thesolution This annualeventenablestalented,high-potentialMBAcandidatesfrom thenation as theU.S.NationalBlackMBAAssociationGraduateStudentCaseCompetition. In addition,tosupportFCAefforts to attractthebesttalent,wesponsorprograms such activities. In2020,FCAgranted€2.1milliontosupportthisdegreeprogram. research FCAemployeesare involved inlecturingandcoordination andinternationalization. Engineering degree program. Thisprogram focusesonthree mainareas: teaching, In Ital 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 andtheCompany.Thesecollaborationsare designed to combine We alsohave strategic relationships with several universities tohelp bridge thegap all salariedemployees. organization with responsibility forrelated projects. Thisprocess encompasses virtually are incorporated inthe performance management system for individuals across the conducted during2020forapproximately 58,000FCAemployees. Sustainabilitytargets to theirresults andbehaviors.Completeperformanceleadership evaluationswere 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 workforce equippedtorespondthechallengesofourindustry. development, organization, us helps which professionally, grow to retain workers our for means the provides FCA TALENT MANAGEMENT, RETENTIONANDSUCCESSIONPLANNING y, FCAcontinuestocollaboratewiththePolitecnicoofTurinfor the Automotive n dvlp aetd n mtvtd mlye. h Hmn Resources Human The employees. motivated and talented develop and managers and all other employees share duties and responsibility in this in responsibility and duties share employees other all and managers n ti coeain rae a atatv wrig niomn ad a and environment working attractive an creates cooperation this and ’s 53 2020 SUSTAINABILITY REPORT Employees and Community Employees maximizing overallemployeesatisfactionandengagement. and information. We usethese opportunities toplan andaddress 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 newideas are encouragedandvaluedatevery FCA so satisfaction, employee to contributor important an is dialogue that believe We DIALOGUE WITHEMPLOYEES launched in2020. system rules andcommitments(22.1%).Thiswassupportedbyournewgloballearning (7.7%), cross-cultural awareness andlanguage skills (1.5%) andcorporate campaigns, training concepts: development ofjob-specifick now-how( 68.7%), managerial s kills Investments invirtualandon-the-jobtrainingfocusedprimarilyontheGroup hours oftrainingtoapproximately 93,000Group employees. The Group investedabout€25millionintrainingduring2020,delivering1.1 of developmentopportunities,includingtraining,coaching,mentoringandjobrotations. are FCAoffers encouragedtoenvisionacareer anumber thatinvolvescontinuouslearning. employees change, transformational undergoing industry auto an in competitive remain To LEARNING MANAGEMENT leaders fortheirroles. helps protect theCompany were madeavailabletoFCAsalariedandhourlyemployeesworldwide.Thisapproach engagement withseniormanagement.Approximately mobilityopportunities 3,000internal Such opportunitiesincludeassignmentstoothergeographicorbusinessareas aswell for individualstodeveloptheleadershipskillsnecessaryfurtherFCA'sfuture growth. Talent reviews andsuccession planningprocesses are designedtocreate opportunities ’s future, leveragingourworkforce bypreparing thenext View data ’s fourcore employees. TheWCMprogram of 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 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 WORLDWIDE FROM EMPLOYEES SUGGESTIONS MILLION 1.5 fers ourlargestworldwideexampleofemployee 54 2020 SUSTAINABILITY REPORT Employees and Community Employees and strivesforfairobjectivetreatment foremployeesar FCA reviews manyfactorsto determinebasesalary, benefitsandvariableincentives, success theyhelpcreate. results, provides development opportunities, and allows them to share in the business 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 This compr 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 ehensive package rewards employees for their contribution to the Company’s ound theworld.Thespecific BENEFITS Others (4) (3) (2) (1) Childcare services Employee cafeteria or lunch vouchers Financial for support disability/invalidity Life insurance Company-provided health plans retirementSupplementary plans In 2020,74%ofemployeesare eligibleforasupplementaryr FCA worldwide (% of employees eligible for benefit) benefit) for eligible (% employees of worldwide FCA Principal EmployeeBenefits access todedicatedfitnessfacilities,whichare availableincertainareas. by responding totheneedsoffamil services are offered atsomelocationstohelpemployeesachievework-lifeeffectiveness 73% ofthesurveyedpopulationparticipatedinacompany-provided healthplan.Childcare Company-provided healthplansare alsoavailableforFCAemployees,andmore than Group fallintotwocategories:definedcontributionplansandbenefitplans. roughly 57%ofthetotalemployeebase.Supplementaryretirement plans provided bythe approximately 76%oftheseemployeesparticipatedinthistypeplan,representing Gym/fitness services Gym/fitness The Group promotes ahealthylifestylethrough comprehensive wellnessprograms and 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) y. etirement plan.During2020, 66 86 34 55 28 73 71 74 74 55 2020 SUSTAINABILITY REPORT Employees and Community Employees flexible workingarrangements.Specifically 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 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 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 , 4.4%oftheworkforce isemployedpart- called 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 education oftheirchildren. a way to attract and keep top talent who have invested in their education as well as the by of 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, fering astudentloanrefinancing benefit. We recognizethatthisinnovative offering is Conto Welfare allows employees to convert someof their pre-tax into a earnings View data 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 thr 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 ough theglobaladoptionofapreviously-applicable OccupationalHealthandSafety 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 th Effective implementationofhealthandsafetystandards atFCAfacilitiesismadepossible then classifieddependingontherisksidentified. out major risk areas and implementing preventive action plans. Areas within the plants are 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 accor Risk identification and assessment, both on a routine and non-routine basis, are conducted rough a combination of preventive measures and the collaboration of employees. ding toaspecificGroup procedure appliedworldwidewiththepurposeofsingling 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 2018 0.03 0.70 2019 2019 0.60 0.03 2020 2020 0.02 0.57 [ SDGs3 [ SDGs3 ] ] 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. adopted, hasresulted inapr 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 con Occupational illnessesrefer todiseasesthatdevelopgraduallyovertimeasadirect led tosavingsofapproximately €130millionfrom 2012 through 2020. agency. Asaresult, theGroup waseligiblefor“goodperformer”premium discounts,which risk attributedtoGroup plantsinItalybyINAIL,theItalianaccidentanddisabilityinsurance sequence of working activities carried out by an employee. FCA regularly monitors ogressive reduction inthelevelofoccupationalhealthandsafety 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 monitoring. level andcholesterol blood including servicessuchas AND VACCINATION SCREENING their families. centers forusebyemployeesand agreements withlocalsports activities and/orentering areas oftheCompanytosports For example,dedicatingspecial daily and adviceonhowtoincrease through sportsteamsorclubs, OF PHYSICALEXERCISE PROMOTION pressure, exercise. blood sugar THE FOURTOP-PRIORITY THE HPPPROVIDES
SUPPORT ARE: AREAS WHERE the creationofsupportgroups. including long-termhealthrisksand disease orsmoking-relatedissues, campaigns andtrainingsessionson are developedthroughawareness AIDS preventionprograms.These such assmokingcessationorHIV/ implemented wheremorerelevant, 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,howtoavoidcontractingorspr 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 requir Reconfiguration ofworksitestocomplywithsafeandsocial Increased frequency ofcleaningcommonareas. Mandated cleaningpr located thr Dedicated hand-washingmaterialsandhandsanitizerstrategically Mandates forwearingasurgicalmaskwheneverinsidetheFCApremises. and nitrilegloves. Distribution ofdailykitstoemployeesconsistingsurgicalmasks pr Screening process foreveryoneenteringFCAsiteswith specific on publictransportation. Self-screening before travelingtotheworkplaceandsocialdistancing ocedures forvisitors. oughout thefacilities. ements. otocols forworkstations. eading
59 2020 SUSTAINABILITY REPORT Employees and Community Employees companies orsiteswher In theEuropean Union countries,employeerepresentative bodiesare established for collective agreements. informed andconsulted,negotiateonspecificissuesasprovided bylaworapplicable bodies. Representative bodies,generallyelectedbylocalplantworkers,are entitledtobe a representative council inaccordance withnational laborlaws,localrulesandregulations. sites where a trade union has been established. In China, FCA employees are free toform national lawsorprocedures. IntheNorthAmericaregion, representatives are present at including Sevel(Italy),showedthat84%ofemployeeswer 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 cover 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 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 and the rules of the various trade union organizations. FCA recognizes and respects ed bycollectivebargainingagreements atanylevel,basedonanaveragefigure e employeenumbersexceedthe minimumlimitsspecifiedby e covered byrepresentative ITALY significant pr Relevant examplesofcollectivebargainingagreements incountrieswhere FCAhasa that theapplicationoftheserightsandprinciplesisensured through locallegislation. companies inBrazil,theU.S.,Canada,Mexico,China,IndiaandMalaysia,showed right toorganizeandcollectivelybargain.Itcovered over99%ofemployeesatGroup 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% Inter In 2020,ananalysiswascarriedoutinthosecountriesthathavenotratifiedfundamental the Gr In mostcountries,dialogueoccursthrough industrialandemployers’associationstowhich national LabourOrganization(ILO)Conventionsonfreedom ofassociationorthe oup companiesbelong. esence are summarizedbelow. 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, r 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 Eur 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 effect untilSeptember23,2023. in October2020coveringmore than9,000employees.TheAgreement withUniforisin In Canada,FCACanadaInc.appliesthetermsofthree-year laboragreement signed unionized 90.7% CANADA opean Works Council(EWC),whichensures workerstherighttoinformationand esulted in227tradeunionagreements ateithertheCompanyorplantlevel. nonunionized 16.8% nonunionized 9.3%
• with theinvolvementoftradeunions,basedonregulations ofthedifferent countries. market demandconditions.Managingtheeffects ofthemarketfluctuationswasachieved During 2020,themanagementofproduction levelsvariedwithintheregions basedon MANAGEMENT OFPRODUCTIONLEVELS • In theEMEAr 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 capacityinanef In the North America region, the Company has spent the past several years realigning its 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 egion, theCompanycontinuedimplementationofr fort tomeetthedemandforSUVsandtrucks,utilizingexisting eorganization 61 2020 SUSTAINABILITY REPORT Employees and Community Employees • Outside theEur 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 • notice requirement iseightweeksforemployeeswithmore than10yearsof service. FCA CanadaInc.employeesare locatedinAlbertaandQuebec,where themaximum periods forcertainoperationalchanges. constitutes aplantclosingormasslayoff. Severalstatesalsoregulate required notice requires anemployertogiveaminimumof60days’ advance noticeofanyactionthat (WARN Act),which U.S.: AfederallawknownastheWorker AdjustmentandRetrainingNotificationAct prior toterminationforemployeeswitheightyearsormor of theCanadianworkforce isemployed,notificationmustbegivenatleasteightweeks Canada: Noticeofterminationregulations varybyprovince. InOntario,where themajority opean Union,locallawsandpracticesapply: applies to bothunionizedand nonunionized employment sites, e ofservice.Theremaining
• • is At unionizedsitesand/orplantsintheU.S.andCanada,levelofunioninvolvement Accor Court andthetradeunions,priortoanylarge-scaleemployeelayoffs orplantclosures. Mexico: According toFederalLaborLaw, companiesare required tonotifytheLabor prior noticeoftheoperation. to allemployeesoforganizationalchangesrelating tooutsourcing, givingreasonable At nonunionizedplants,itiscommonpracticetomakeacompany-wideannouncement the informationandconsultationprocedures tobefollowedinsuchcircumstances. and thetradeunionisapplicableatplantlevel.Theagreements usuallyspecify authorities withaworkforce reduction plan. or totheemployees30daysinadvance.Thecompanymustalsoprovide thelocallabor 20 butaccountingfor10%ofcompanyemployeesmustbenotifiedtothelaborunion r China: LaborContractLawstatesthatalloperationalchangessuchasreorganizations, such layoff. However, nonotificationperiodisexpressly definedinMexicanlaborlaw. layoff, theCompanyandUnionwillagree tothetermsandconditionsapplicable estructuring, oractionsr normally definedby thecollectivebargainingagreement signed betweenthe company ding toFCA´sUnionBargainingAgreement, incaseofanylarge-scaleemployee educing theworkforce by20ormore employeesor less than
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) projects andmore than 100,000hoursdonatingblood. FCA employeesvolunteered more than62,000 hoursduringworktime insupportofsocial Over theyears,wehavetraditionally supportednumerous efforts, suchasin2019when interviews andtutoringfocusedon enrichingthelivesofyoungpeopleinourcommunities. for employeestovolunteertheirtimeandtalentsvirtuallythrough career coaching,mock able tovolunteermore time in2020.FCAfoundnewways hours duringworking than4,800 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 the FCAFoundation,whichisgoverned of COVID-19. MuchoftheGroup's charitableactivitiesaround theworldare historically welfare, includinghealthprograms; 39%foremergencyrelief andotherefforts, including of causes: 49% foreducation-related initiatives; 12% forcommunitydevelopment and communities withpandemicrelief efforts. TheGroup areas suchaseducationandcommunitydevelopment,FCAtookactionstoprotect our 2020 wasayearwithuniquechallengesacross theglobe.Inadditiontosupporting operate. made tosupportlocalcommunityneedsintheountrieswheree future. Inaddition,initiativesandcharitablecontributionsre communities witheffectsatcanextendgenerationsintothe focus oneducationtoempowerpeopleandbuildresilient Sustainable DevelopmentGoals,oursocialcontributionefforts from theFCAoundation.InalignmentwithUnitedNations thriving, resilientcommunities.In2020,weommittedharitable Our communityinvestmentactivitiesreflectoueffortstopromote to estimate methods calculation and data cost f non-accounting Includes abrand. to promote is purpose sole whose figure initiatives reported 31, The 2020. include not December at does rate exchange on based converted were Euro than other currency in Amounts operations. joint resources foravalueofabout€37.8million and ventures joint as 31, well as 2020, December at basis a line-by-line on consolidated worldwide companies FCA to all refer Amounts Community or e mployee v olunteer t ime. ’s 2020activitiesfocusedonavariety (1) , includingcontributions Trustees Spending andnumberofinitiativesbygeographicarea ofdistribution Spending andnumberofinitiativesbycategory 39% (€14.6Millions) INCLUDING COVID-19 AND OTHEREFFORTS, EMERGENCY RELIEF more than120initiatives Actuals 2020 (€) (€) 2020 Actuals (€19.1 M) 49% North America North 249 Initiatives (no.) Initiatives (€17.3 M) 44% Europe 59 HEALTH PROGRAMS WELFARE, INCLUDING DEVELOPMENT AND COMMUNITY approx. 140initiatives 2 (46 Millions) (€4.6 12% (€1.4 M) Latin America 4% 71 INITIATIVES EDUCATION RELATED approx. 150initiatives 49% (€18.6Millions) (€1.3 M) 3% Asia 38 64 2020 SUSTAINABILITY REPORT Employees and Community Community In Detroit (U.S.) Detroit PublicSchoolsConnectedFuturesProgram BRIDGING THEDIGITAL DIVIDE in the and sector. find employment manufacturing service training leadstoaDiplomainManufacturingExcellenceenable thegirlsopportunitiesto further studiesduetosocialandeconomicconditions.Acombination ofacademicsandjob supports girlsfrom ruralareas whohavepassedthe10thStandard butare unabletopursue The GirlEducationandEmployabilityPromotion program, WINGYAAN, inPune, India, WINGYAAN Program basis fortheirfuturegrowth. Robotics Project, whichfocusesonSTEM,softskillsandindustrialculture, providing a Educational Center nearly 3,000studentshavebenefited from in the Learning participation school studentsuserobots toenhancetheirknowledgeonschoolsubjects.In2020, Brazil whichoffer aninnovativeeducationenvironment where primaryandsecondary the digitalgapfacedbyanestimated 90%ofDetroit public schoolstudents. FCA 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 and three elementaryandmiddleschools.Thegrantaddressed theurgentneedto close provided free serviceandtechnicalsupport tostudentsatahighschool laptops, internet andconnecttotheworlddigitallyasaresultto learn ofaFCAFoundationgrant.Thegrant ’ s production systems brand, Comau,developed programs in Italy,China, U.S. and public schools,mor e than1,100studentswer e pr ovided theopportunity Engineering nowincludes l investing ineducation,trainingandresearch. Thedegree program inAutomotive engineers tounderstand First e Polytechnic ofTurinTrainingandCollaboration WORKFORCE DEVELOPMENT Italian MinistryforEducationandtheTurinCuneoProvincial EducationAuthorities. schools inMirafiori,LingottoandGrugliasco(Italy).Theprogram isinpartnershipwiththe graduates andyoungprofessionals tohelpaddress educationalinequitiesindisadvantaged program. The multi-year grant will allowTeachforItalyto hire adiversegroup ofcollege Italy isaddressing earlyschooldropout ratesandteachershortageswiththe Teach forItaly LITERACY social responsibilit programsintelligence. Theagreement andhelpsprepare encompassesinternational 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 stablished in1999, FCAcontinuesi y, andteamwork,alongwithasolidbackground inthehumanities. the societyforwhichtheyar essons withexpertsinsustainablemobilityand artificial ts collaboration withtechnic Poly ofTurin, e designing,thr ough criticalthinking, Teach forItaly 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 LA NORTH AMERICA T AM 8.4M IN NEED SENIORS, ANDOTHERS MEALS TOCHILDREN, 5.5M FACE MASKSDONATED 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 foodservicestochildr Throughout theCOVID-19pandemic,FCAfocusedrelief efforts onareas suchas:charities APAC EMEA 3K VEHICLES LOANED 466 PRODUCED VENTILATORS VEHICLES LOANED 2 PRODUCED FACE MASKS 17M en; support fortechnical, logisticalandproduction (Producing 23Mperday) MASKS PLANTS PRODUCED 2 SCHOOLS PROGRAM TOMEDICAL SCHOLARSHIP €252K 66 2020 SUSTAINABILITY REPORT Employees and Community Community support activitiesinclude: Examples • • • production rose from about 8 to 80 units per da manufacturing andmanagementexperienceWorld ClassManufacturingmethods, specific electricalmedicaldevices,FCAbuiltover3,000ventilators.DrawinguponFCA's these produces that Italy in company only the Engineering, Siare with cooperation In Ventilators Paulo (Brazil). to employeesanddonatedhealthprofessionals andSão inMinasGerais,Pernambuco million, theproduction unit wasinstalledinless than twomonths.Maskswere distributed Purchasing andLogisticsEngineeringareas andaninvestment ofapproximately €5.9 theexpertiseofFCA'sManufacturing, factory withintheFCAplantinBetim(Brazil).With 600 workers.Anotherillustrationofoursupportincludedtheinstallationasurgicalmask (Italy) withadailyproduction ofabout23millionmaskswere produced, involvingmore than Serra Pratola and Mirafiori in plants FCA the at produced were shields face and Masks Masks andFaceShields Ducato vansadaptedasambulancestosupporttheunits’logisticalneeds. ventilators machine, equipment Gerais Minas in and patients COVID-19 for hospitals field equipped fully three delivered FCA Contributions forfieldhospitals provided avarietyofdonations: contributions,In additiontomasks,faceshields,ventilatorsandfieldhospitalFCAalso building solenoidvalves–the‘beatingheart’ofaventilator,atFCAplantinCento(Italy). production ofmore than 40,000mealsoversixmonths. Gerais (Brazil),approximately 18tonsoffoodwer FCA participatedinanetworkforthedonationoffood,waterand hygienekits.InMinas hygiene products to53institutionsinthemetr In SãoPaulo(Brazil),thecompany supportedthedistributionofover200,000personal more than1,500hygienekitswer (Brazil),aboutatonoffood,moreIn Pernambuco than5,000litersofmineralwaterand enmuo Bai) ad n ódb (retn) FA lo oae medical donated also FCA (Argentina). Córdoba in and (Brazil), Pernambuco of eurd o te ramn o CVD1 ptet, uh s n X-ray an as such patients, COVID-19 of treatment the for required initiatives tha FA oae Fiat donated FCA Moreover, materials. medical various and t illustratehebreadth ofF e delivered. y. Acrucialstrength of the cooperationwas opolitan region. e donatedinthestate,ensuring CA's engagement ofCOV ID-19 • • Responsibility impact onthefamilies involved,theprogramillustrates thebenefitsofacirculareconomy. positive the with Along material. of tons 41 about repurposed has Cooperárvore created, was it Since households. 70 than more for life of quality the improving to contributed has Cooperárvore years, 14 past the Over items. other and accessories fashion into them transforms Cooperárvore and plant the from remnants belt seat and fabric donates FCA income. generate to activities entrepreneurial local on focuses (Brazil), Betim in plant FCA the surrounding community the from women by 2006 in formed program, Brazilian The Cooperárvore: CombiningEntrepreneurshipand nvironmental on Detroit’s firstcommunity-basedenvironmentaleducationplaza. construction start to organization nonprofit the enabled which Conservancy Park Chandler the to contributed also was thousand €230 than More neighborhoods. Riverbend and End West Park, Chandler the in projects improvement for Fund Neighborhood Impact the to thousand €325 than more contributed FCA neighborhoods. and people the for life of quality the improve to Communities Eastside (U.S.) Detroit’s Re-imagine to thousand €600 approximatel invested FCA (U.S.), Detroit in plant FCA new the of result a As Neighborhood ImpactFund the 16thanniversaryofthisproject-FCA’slongest-standingcommunityinBrazil. marked 2020 inception. its since program the from benefited have people 23,300 than More residents. local of empowerment and independence of growth economic and cultural social, promote to aims program The (Brazil). Betim in plant FCA the near community, Teresópolis Jardim the in Vida da Árvore called project social a supported has FCA 2004, Since Árvore daVida(TreeofLife) Though examples ofthetypesprogramsweparticipatedin: are Here life. of quality the of improvement the support to projects and communities on institution thatprovides supportinsituationsofnaturaldisastersandaccidents. FCA donatedapproximately €125thousandtotheCivilProtection inItaly, thegovernment normally accessschoolmealservices. been extendedacross NorthAmerica,supportingsimilarrelief efforts forkidswhowould manufacturing plantsinIllinois,Indiana,Michigan and Ohio (U.S.). The program has more thanonemillionmealstoschool-agechildr FCA workedinpartnershipwithnon-pr FCA directed relief efforts to the COVID-19 pandemic, we continued to focus to continued we pandemic, COVID-19 the to efforts relief directed ofit organizationsandfoundationstoprovide en inthecommunitiesaround our 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 consumer perceptionandsustainabilityoftheGroup’sproductsservices. FCA’ C The globalinnovationandproduct developmentactivities are centrallycoordinated bythe • 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 • plan include: Important areas offocusfortheGroup’s research anddevelopmentactivitiesbusiness technology andimprovements considered importanttoourbusiness. 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, Research andDevelopment hief Technical Officer (CTO). In particular, the CTO leads FCA Research and Development of ourbrands. r continuing toinvestinasuiteoftechnicalsolutionskeeppacewith evolvingregulatory driving technologies synergies and economies of scale needed to advance the development of autonomous initiatives pr continuing tocollaborateandpartnerwithtechnologyautoindustryleaders-these equirements in eachregion while, atthesametime,enhancingspecificstrengths s globalresearchanddevelopmentactivitiesareaimedatimprovingthedesign,performance,safety, fuelefficiency,reliability, ovide theopportunitytoleverageeachother’s capabilitiesandachievethe T 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 collaborativetechnologyorganizationaimedatstr 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)and OaklandUniversity(U.S.),andour (Italy),theUniversityofWindsor Two DualMaster'sDegree Program keyexamplesincludeourInternational withPolitecnico instrumental in encouraging creative thinking, rewarding talent and leveraging synergies. other industrialplayers,thr 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 lightweighting and materials;andcircular economy initiatives. related to,amongothers,autonomousdriving;connectivity; electrification andeco-driving; echnology Platforms.Itisthefocal pointforcollaborativeresearch programs ontopics ough research groups andjointprojects. Theseclosetiesare engthening the technology base of the engthening thetechnologybaseof 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 toconnectivity withinvehiclesare 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 DEVELOPMENT GOALS(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 POWER improvements infueleconomyandareduction inCO mild hybrid,highvoltageplug-inandfullbatteryelectricvehicles,allofwhichoffer 48-volt stop/start, engine 12-volt includes: technologies electrification of suite FCA's ELECTRIFIED VEHICLETECHNOLOGIES growing demandforelectrifiedvehicles. development, andmanufacturingfacilitiesinNorthAmericaItaly,tosupportthe architectures. We havemadesignificanti nvestments vehicle electrification n (battery electric,plug-inhybridfullandmildhybrid)inglobalproduct 1500 5.7-literand 3.6-literapplications.TheeTorque system delivers significantgainsin vehicles equipped withboththe2.0-literturboand 3.6-literengine,aswellin the Ram example, the48-voltmildhybrid technologyismarketedas“eTorque” inJeepWrangler which offered improvements infuel economyandareduction inCO In previous years,FCAlaunchedthree mildhybridapplicationsusingBSGtechnology, with eBoosterand48-voltBSG, the firststepinMaserati’s electrificationpath. Maserati GhiblimildhybridlaunchedinSeptember2020,equipped witha2.0-literturbo engine launchedintheFiat500,PandaandLanciaYpsilon inEurope. The new In 2020,anew12-voltBSG(beltstartergenerator)3cylinder1.0-liter naturally-aspirated early 2021inEurope. km. TheFiatDucato electric van wasunveiled in 2019,andisexpectedtobe launched in in Turin(Italy).TheNewFiat500electricisoffered inelectricrangesof320kmand180 launched inOctober2020andmanufactured for theEuropean market attheMirafiori plant Along withtheexistingfullyelectricvariantofFiat500is NewFiat500electric, around theglobe. Turin (Italy).Substantialworkwasalsoperformedwithsuppliersand universitieslocated were Hills(U.S.),Modenaand developedatFCA'stechnicalcentersprimarilyinAuburn emissions andimprove fueleconom FCA’s ispartof Maximizing powertrainefficiency commitment to reduce vehicle CO PROPULSION TECHNOLOGIES FCA's approach overtheyearshasbeentooffer electrifiedp ropulsionsystems and transmissions,optimizingthevehicle/powertrainsystems. TRAINS ANDELECTRIFIED y . This includes developing more efficient . Thisincludesdevelopingmoreengines efficient 2 emissions.Thesetechnologies 2 emissions.For 2
plug-in hybridelectrictechnologytobeavailableinEur The newJeepCompass4xeandRenegadeare thefirstJeepmodelswith 48-volt battery. extended fuelshut-off duringcertainmaneuvers,andregenerative brakingtorecharge the efficiency optimizationmanagerwhichbalancesmotorandenginetorque, enhancedand fuel economybyoffering fasterandsmootherstop/startfunctionality, areal-time powertrain and lowenvironmental impact(lessthan50g/kmofCO performance (upto240horsepower),improved safety(four-wheel driveisalwaysavailable) that integratessomeofthemostadvancedtechnology, whichcombinesenhanced increases fuelefficiencyandoverallpower. Bothmodelsfeature aplug-inhybridpowertrain turbocharged gasolineengineplustheelectricmotorsprovides performanceand their benchmarkof the new hybrid technology,With Jeep Renegade 4xeand Compass 4xe further improve operators, from thesameplatform. countries. Bysigninguptotheservice, userswillbenefitfrom interactingwithallthemain charging solutionwillprovide accesstomore than130,000 chargepointsin21European justoneappandsinglecard the for thelargestchargingnetwork intheworld.With customers access to the digital service “My easyCharge,” offering thema 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.During2020, FCA in asustainableway a newmobilitysystem,ensuringcustomerscandriveanelectric vehicleonadailybasis FCA’s strategyisnotlimitedtosimplyoffering electrified powertrains, 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's plug-inhybrid lineup This allowsthetwoaxlestobeseparatedandcontrol thetorque independentlyinamore to therear axleisnotprovided byaprop shaftbut through thededicatedelectricmotor. between thetwopowersources. Asaresult ofthenewJeep4xetechnology, traction f-road capabilitycourtesyofgreater torque offered bythecombination . To supportthisapproach, thee-Mobilitydepartmentaimsto build ope. Thecombinationofa1.3-liter 2 inhybridmode). 73 2020 SUSTAINABILITY REPORT Fiat Fiat ELECTRIFICATION TIMELINE PANDA 500 Europe Europe
Fiat Lancia Fiat NEW 500 YPSILON 500e Europe Europe United States (California and Oregon)
Jeep Jeep RENEGADE COMPASS Chrysler Europe Europe PACIFICA HYBRID North America Maserati GHIBLI HYBRID Jeep Europe, China WRANGLER 2.0L North America
2012 2016 2017 2018 2019 2020 2021
Jeep Jeep Chrysler COMMANDER WRANGLER 4xe PACIFICA China North America, Europe, China HYBRID China RAM Fiat Professional 1500 5.7L E-DUCATO AND 3.6L Europe North America
Efficient Powertrains and Technologies and Customers Efficient Powertrains Products Among others 2020 SUSTAINABILITY REPORT mild hybrid plug-in hybrid (PHEV) battery electric (BEV) 74 Products and Customers Efficient Powertrains and Technologies to becomealeaderintheEuropean e-Mobilitylandscape.Thiswillrely onFC venture withENGIEEPS,anItaliantechnologyplayerinEnergyStorageande-Mobilit In addition,FCAenter naturally aspiratedandturbocharged versions.Eachenginefeatures amodularapproach suit marketneeds.Theglobalsmall engine(GSE)familyincludesthree andfourcylinder gasoline enginefamiliestoimprove fueleconomyandGHG/CO displacement medium and small global the of development continued FCA 2020, In ENGINES charge theelectricmodelsmanufacturedonsite. electricity andcontributetoareduction in CO pilot project. Inaddition,solar panelswillbeinstalledattheMirafioricomplextoproduce car andthecharginginfrastructure speakacommonlanguage,whichisthefocusof powertothegrid.Thistechnologycanonlywork efficientlywhenthe car andreturns technology havestartedwithabidirectional chargingsolution,whichbothchargesthe a mor aswellascontributingoptimize vehicles'operatingcostsforthecustomers'benefit,to resource forthepowergridoperatedby enables vehiclestoexchangeenergywiththepowergrid,makingthemavaluable FCA launcheditsV2Gpilotproject attheMirafioriplantin full setofagreements occurred inJanuary2021. charging pointacross Europe signing of the rate. The withasubscriptionat fixed monthly green energypackages.Itwouldenablecustomerstochargeathomeandanypublic customers suchasresidential, businessandpubliccharginginfrastructures aswell Th packages. launched Vehicle-to-Grid (V2G)pilotproject andtheinnovativecustomer-oriented energy exclusive FCAeasyWallbox, aneasy-to-use plug-and-playcharging unit,the recently This approach allowedtheimplementationofprojects, suchastheintroduction ofthe of Understandingoriginatesfrom athree-year cooperationbetweenthetwocompanies. make accesstoelectricmobilityeasyandconvenient.ThesigningofthisMemorandum intellectual property portfolio.ThetwoCompanieswould offer solutions andservicesto resources andindustrialfootprintalongwith ENGIEEPS’technologicalknow-howand e newly created company would offer afull suite of products and solutions for EV e sustainableelectricalpowerdeliverysystem.Experimentsusing thisinnovative ed intoaMemorandumofUnderstanding,aimedatcreating ajoint erna. ItalsorepresentsTerna. anopportunityto 2 emissionsandsupplysustainableenergy to T urin (Italy). urin V2G (Italy). technology 2 emissions,tobetter A ’s financial y,
transmissions. efficiency bearings have been incorporated in updates to midsize front-wheel drive manual variants ofFCA'ssmallandmidsize front-wheel drivemanual transmissions,andhigh to operatemore efficiently. Industrialization began in 2019 for enhanced and updated Jeep GladiatorandWrangle The 6-speedmanual transmissionforrear-wheel drive applications, introduced onthe electric oilpumpsandadvancedtorque converterdesigns. Additionally, FCA continued to investigate technologies to improve theefficiencyofour joint venturewithGuangzhouAutomobilesGroupCo.,LtdinChina. by produced hybrid plug-in Commander in used eFlite) (the transmission hybrid 100 to up output with motor electric introduced FCA 4xe, Wrangler between transitions and axle) rear Compass two In TRANSMISSIONS ANDDRIVELINE medium engineT4wasdevelopedtosupporttheMaseratilineup. was launchedinEMEA2020,whileahighoutputsupercharged versionoftheglobal (TJI) technology, increasing poweroutput.A1.0LGSEthree cylinderenginemildhybrid In 2020,FCA also developed a new3.0L V-6 gasoline engine addingturbulent jet ignition harshness behavior. competitive withrespect tofuelconsumption,performance,weight,noise,vibrationand and cooledexhaust gasrecirculation. Allofthese features enable theengines tobe injection, downsizing, integrated exhaust manifold, MultiAir variable valve lift, turbocharging range ofvehicleapplicationsincludingfeatures andtechnologies suchasdirect fuel efficiencyandpoweroutputs.Theseengineshavebeenfullydeployedtocoveralarge using ashared cylinderdesign,allowingfordifferent engineconfigurations, displacements, 8 and9-speedtransmissionswithlowerviscosityautomatictransmission fluid,auxiliary upr o goa fe cnupin n CO and consumption fuel global of support yrdzd rnmsin ytm. h 22 Je Rngd 4e n Jeep and 4xe Renegade Jeep 2020 The systems. transmission hybridized x faue w eeti mtr (nie one ad elcn the replacing and mounted (engine motors electric two feature 4xe 6sed uoai tasiso t fcltt seamless facilitate to transmission automatic 6-speed a ovninl n E diig oe. n h 22 Jeep 2021 the In modes. driving EV and conventional r, offers optimizedgearratiospread toallowtheengine n -pe hbi tasiso wt a compact a with transmission hybrid 8-speed an kilowatts. These products join the dedicated the join products These kilowatts. the Chrysler Pacifica plug-in hybrid and Jeep and hybrid plug-in Pacifica Chrysler the GAC Fiat Chrysler Automobiles Co., FCA's Co., Automobiles Chrysler Fiat GAC 2 eurmns FA introduced FCA requirements, 75 2020 SUSTAINABILITY REPORT Products and Customers Efficient Powertrains and Technologies 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: • • • • RANGE, CHARGINGANDDRIVING included inthelaunchedition,canbemanagedeasilyviaBluetooth. easyWallbox, ahomechargingsystemthatcanbeconnectedtonormaloutlet, travel 30miles 85 kWfastchargersystem,onlyfiveminutestobuildupasufficient energy reserveto when drivinginthecity Range ofmore than180kmWLTP andupto320kmWLTP, increasing to460km Lithium-ion batterieswithacapacityof42kWh CYCLE IN THEWLTP RANGE KM 320 New Fiat Electric 500 76 2020 SUSTAINABILITY REPORT Products and Customers Efficient Powertrains and Technologies • • • LEVEL 2AUTONOMOUSDRIVING FIRST CARINITSSEGMENTTOOFFER • • • • and takeabr Attention Assist,whichprovides onthedisplay, warnings recommending thatyoustop complex maneuvers. 360° sensorsprovide adrone viewtoavoidanyobstacles whenparkingorperforming longitudinally andlaterally Front-facing cameramonitoringtechnologymonitorsallareas ofthecar, both obstacles withatriangularwar ofany Urban BlindSpotusesultrasonicsensorstomonitortheblindspotsandwarn Intelligent SpeedAssistreads thespeedlimitsandrecommends applyingthem Lane Centeringkeepsthevehicleincenteroflane cars, cyclists,pedestrians Intelligent Adaptive Cruise Control (iACC) system brakes or accelerates in response to eak whenyouare tired WHAT’S BEHIND ning lightonthewingmirror In theCarofYear2021awards oftheUKmagazine"WhatCar?" FOR THECITY CONVERTIBLE OFTHEYEARANDBESTSMALLELECTRIC CAR Awarded by"DrivingElectric"intheUK CAR OFTHEYEARANDBESTSMALLELECTRIC Bestowed bythereadersofGermanmagazine"AutoMotorund Sport" BEST DESIGN2020AWARD In the"DesignConcept"categor RED DOTAWARD2020 AWARDED DESIGN SUSTAINABLE MATERIALS fibers are offered. and floorsmatsmadeofr 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 y, oneofthemostcovetedprizesinworldindustrialdesign ecycled ecycled
77 2020 SUSTAINABILITY REPORT Products and Customers Efficient Powertrains and Technologies AL by theGroupinthismarket. licensed vehicles of 86% approximately for accounting Brazil, in registered were vehicles Flexfuel FCA 370,000 than more 2020, In materials. raw available readily and policies government long-standing by supported network, distribution bioethanol extensive an has Brazil bioethanol. and gasoline of blends varying on run that vehicles Flexfuel of range full a has FCA Brazil, In (B7). diesel in biodiesel 7% to up and (E10), gasoline Europe, In BIOFUELS powered vehiclerunningonelectricitygeneratedfromrenewablefuel. CO of level same the roughly produces basis, well-to-wheel a on and, biomethane on run also can vehicle gas natural A waste. municipal organic and residues crop manure, as such materials organic from derived is Biogas gas. natural as Biomethane, potential tobecomearenewablefuelsourceintheformofbiomethane. CO less generates and emissions regulated of level lower a produces It fuels. traditional to alternative viable a and available fuels economical most the of one is gas Natural vehicles. 780,000 exceeded Europe in vehicles CNG-powered of output Group's the 2020, to 1997 From propulsion. (CNG) gas natural compressed in leaders EU-market the among historically was FCA NATURAL GASANDBIOMETHANE markets, andcapableofreducingemissionlevels. various in available fuels the with aligned are that technologies offering biofuels, to gas natural from fuels, alternative of use the includes strategy reduction emission vehicle FCA's TERNATIVE FUELS all vehicle engines are compatible with blends of up to 10% bioethanol in bioethanol 10% to up of blends with compatible are engines vehicle all which is produced by upgrading biogas, has the same properties and uses and properties same the has biogas, upgrading by produced is which 2 emissions compared with gasoline. In addition, natural gas has the has gas natural addition, In gasoline. with compared 2 emissions as an electric- an as emissions energy demandofourvehicles.Recentr FCA augmentsitspowertraininnovationsbyintegratingtechnologiesthatoptimizethe VEHICLE ENERGYDEMAND The wideruseofsmarttechnologies,whichprovide dynamicmanagementofthevehicle which improve frictionandothervehicleoperationalpowerlosses. tunnels oftheGroup. Selected FCAvehiclesuseactiveaerodynamic technologiesthatare From theearliest development stage, the aerodynamic performance ofevery vehicle air conditioningcompressors; highefficienc Reducing vehicleweightincreases vehiclefuelefficienc WEIGHT REDUCTION air dams,activeaerofrontsplitters,andadjustableheightsuspension. and reduce fuelconsumption andCO automatically activated undercertain operating conditions to improve aerodynamic drag profileismeasured,optimized,testedandcertifiedinthefull-scale,aerodynamicwind Fuel economycanbeimproved byoptimizingvehicleaerodynamic performance. “waste” thermalenergy,isbeingleveragedinmultipleproducts. Thisapproach allows systems fuel economy. These technologies include smart charging, optimized enginecooling powertrain systems,hascontributedtoanimproved balancebetweenperformanceand CO operating conditionstoimprove aerodynamic dragandreduce fuelconsumption and 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, of weightreduction solutions,forexample,the2021JeepWrangler features lightweight, high- IMPROVED AERODYNAMICS at moreoptimaltemperatures. vehicle systemstooperateatahigherefficiencybytailoringindividualcomponentsrun swing gate,allof which helpboostfueleconomy. strength aluminumdoors,hinges,hood,fendersandwindshield frame,aswellamagnesium lighter vehiclesthatmeettheexpectations ofourcustomers.Thisincludesadoptinganumber 2 emissions;variablespeedfuelpumps;displacementandhigher-efficiency and cylinderdeactivation.Thevalueof thermal management,orusingavailable 2 emissions,suchasactivegrilleshutters,front esearch anddevelopmentfocusedonvehicle y, brushlesselectricmotorsforcoolingfans, , soaimsFCAtodesignandproducey, ’s
78 2020 SUSTAINABILITY REPORT Products and Customers Efficient Powertrains and Technologies FCA's vehiclesmustcomplywithcompr r FCA historicallypursuedcompliancewithfueleconomyandgreenhouse gas regions where FCAoperatesreports totheCompany'sChiefTechnical ComplianceOfficer. In support of this, the Vehicle SafetyandRegulatoryComplianceorganization in the four addressing vastlydifferent consumer preferences anddemandsaround theworld. technologies thatare intended torespond to these regulatory requirements, whilealso regulations withrespect tovehicleemissionsandfueleconomy. TheGroup develops least afiveto15%impr FCA is committed to improving vehicle fuel efficiency and set a target to achieve at (CARB) regulate greenhouse gas(GHG)emissions. Agency (EPA) regulate vehiclefueleconomy. EPA Air Resource andtheCalifornia Board Highway Traffic SafetyAdministration(NHTSA)andthe U.S. Environmental Protection recent NHTSArequired submission,whichreflects mid-modelyear datafor2020. model year. The2020fueleconomy datareported inthe graph,isbasedonthemost that amanufactur Corporate Average FuelEconomy (CAFE)isthesales-weightedaveragefueleconomy major renewals ofFCAUSvehicles. cases surpassed, in the years since it was established. However, in 2020 there were no compared withreplaced vehicles/models. Thistargethasbeenachieved,andinsome and isexpectedtocontinueincrease inthefuture. when imposed.Thecostofeachthesecomponentsourstrategyhasincreased reduced emissions, purchasing compliancecredits andpayingregulatory penalties of developing,manufacturingandsellingvehicleswithimproved fueleconomyand and acorresponding reduction offuelconsumption andCO gallon (mpg).Anincrease infueleconomycorresponds toanincrease invehicleefficiency, In theU.S.,vehiclefuelefficiencyismeasured byfueleconomyexpressed inmilesper UNITED STATES FCA addresses thefueleconomyandCO EMISSIONS ANDFUELECONOMY • • product developmentprocess byfocusingon: egulations in themarkets where weoperate through a cost effective combination vehicle energydemand(e.g.,aerodynamics, weight,tire performance). powertrain technologies(e.g.,engines,transmissions,hybridandelectricpropulsion) er's fleetmustachieve.Data reported toNHTSAisprovided by ovement infueleconomyformajorrenewals ofFCAUSvehicles ehensive local,regional andnationallaws 2 emissionsofourvehiclesatthestart 2 emissions.TheNational
FCA mass-market vehicles sold in the U.S. (mpg) 20 25 30 35 Fuel EconomyStandar Fuel EconomyAccording toCorporateAverage Although the U.S. policy iscomplex with three separate CO 2016 andisincludedthrough 2015. Ferrari brandvehicles.Thespin-off ofFerrarifrom theGroup wascompletedonJanuary3, mass-market andluxuryvehiclessoldintheU.S.,includingFiat,Maserati, AlfaRomeoand FCA’s importpassengercarfueleconomywasfirst 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 lowfuelpricesand increasing consumerpreference forSUVsandpickup 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, itcontainsaflexiblearray of newtechnologyincentivestoencourage 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 ds 2015 26.2 30.3 33.7 2016 3 26.4 31.8 Light Duty Trucks Duty Light 2 .4 2017 33.7 31.7 27.6 2018 33.4 30.4 28.7 2 emissions-related 2019 33.0 28.1 31.0 [ SDGs 13] 2020 28.2 30.2 34.4
79 2020 SUSTAINABILITY REPORT Products and Customers Efficient Powertrains and Technologies Average EnergyConsumption andCO (1) (1) 1.75 1.79 1.83 1.87 MJ/km gCO and (MJ/km Brazil in cars mass-market FCA 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; Pr 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 ogram andestablishesmandatoryrequirements forvehicle commercialization inBrazilwith 2017 135.1 1.85 2 emissionsthrough improvements toethanol-fueledengines. 2019 2018 130.6 1.79 2 /km) 2 Emissions 2 reduction onanequivalent30/70fuelmix 31.4 1 1.80 2 /fuel efficiency) beginning in /fuel efficiency)beginningin 2 131.8 020 1.80 (1) [ gCO SDGs 13] 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 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 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)wasenfor 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 withChina6athr 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 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 world. Sincemuchofthevehicleconsumerdemographicresides in urban areas, esholds andbyJuly2023withChina6bthresholds. China6a ced andprovided anindustrytargetof5.0litersper 2 fleet reduction targetswouldbemetthrough 80 2020 SUSTAINABILITY REPORT Products and Customers Efficient Powertrains and Technologies own NEVcredits, orthepurchase of NEVcredits. Non-compliance withtheNEVtarget carry-forward CAFCcredits, transferofCAFCcredits withinaffiliates,theOEMsuseofits Non-compliance withtheCAFC target intheseadministrativerulescanbeoffset through administrative rulesr 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) (3) (2) 6.75 7.17 7.59 8.02 8.44 8.86 9.28 9.70 10.13 L/100 km gCO and km (L/100 China in cars mass-market FCA Average FuelConsumptionandCO 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 7.35 223.5 (3)
172.8 2014 7.29 9.43 Vehicles (Domestic) egarding CAFCandNEVcredits thatbecameeffective inApril2018. 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 181.8 7.67 208.8 168.5 2018 181.8 7.11 7.67 167.1 178.5 2019 7.53 7.05 214.2 2020 [ 158.6 6.69 SDGs 13] gCO 9.04 (2) 2 /km 2 2 220 1 1 150 2 180 210 170 0 3 90 6 40 0 0 0 fleet averagetargetof95grams of CO average CO vehicles (LCVs). This regulation required thatnewlightcommercial vehicles meet afleet aging vehicles.TheCO combustionengine applicationswilllikelyberestricted,Conventional internal especiallywith are implementinglowemissionzonesinanattempttoimprove airqualityincitycenters. 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), the newRealDrivingEmissions and are effective forallnewpassengercarsandlightcommercial vehicles.Inadditionto to priorEuro 5standards. Furtherrequirements ofEuro 6havebeendevelopedbytheEC r Euro 6emissionlevelsare ineffect forallpassengercarsandlightcommercial vehiclesand regulations undertheUNECE framework. requirements on vehicles sold in all 27 EU member states, while non-EU countries apply E In Europe, emissionsare regulated bytheEuropean Commission(EC) and theUnited Nations The EU has also adopted standards for regulating CO cars (130g/kmuntil2019). technology The Group has implemented fuel efficient technical solutions such as engine stop/start NEV deficitsuntilthe are offset. portfolio thatFCAoffered intheregion. configuration. Additionally, theJeepCommanderplug-inhybridexpandedNEV Jeep GrandCommanderandRenegadehaveenginestop/startasastandard exceed CAFCtargetswillbesuspendedforOEMsthatar can onlybeoffset bythepurchase ofNEVcredits. Thehomologationofnewproducts that equire additionaltechnologies andfurtherincrease thecostofdieselenginescompared conomic Commission for Europe (UNECE). The EC imposes standardized emission control . TheJeepWrangler andlocally-produced JeepCherokee, JeepCompass, 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 e unabletooffset CAFCand/or 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 [ 2 emissions SDGs 13 133.1 ] 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 the Dutch 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 opportunities. of spectrum full a addresses that approach balanced and thought-out well a favors FCA waste. and products materials, from use and value the maximizing on focused is that economy circular a toward transition the stimulate to efforts global support help practices sustainability FCA's (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 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 Eur 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 ope and the Materials Engineering organization in the U.S. TheGML also monitors to berestricted inthenearfuture. equivalent andenvironmentally sustainablesubstitutesforsubstances thatare expected adopted byFCAsupplierswith whomwecollaboratecloselyinidentifyingtechnically and heavymetals ban. This level ofawareness andcommitment to compliance is also FCA focusesonSoCsidentifiedinglobally regulated substance restrictions liketheEU's increasing transparency andclarit sold ormarketed,thatminimizemarket-specificuncertainty ointerpretation w hile r It provides uniformglobalrequirements, regardless ofwhere theproducts are ultimately worldwide, whichare required toadhere toIMDSand 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 andcomponentsinourvehicles.Datafrom IMDSisthenfedintoFCAinternal We Material Data System (IMDS) to track the composition use the of International individual impact humanhealthortheenvironment. FCA workstoeliminateorreduce (SoC)thatmay theuseofSubstancesConcern SUBSTANCES OFCONCERN by weightforcertainEuropeanapplications. For example,wemanufacture thatare gasolinetanksinternally upto45%recycled plastic alloys. We alsopromote theuse ofrecycled plastics inourdesignrequirements. aluminum castingpartsusedinsomepowertrain applicationsinEurope are secondary in Europe, andrecycle thembackintoourmanufacturingprocesses. Upto25%of FCA hasaclosed-loopprocess toreturn aluminumandsteelscrapstoselectedsuppliers REACH (Registration,Evaluation, AuthorisationandRestrictionofChemicals)regulation y.
85 2020 SUSTAINABILITY REPORT Products and Customers Sustainable Design improvement duringtheuse phase,whichdependsontheelectricitygridmix. Fiat 500electricduetotheLi-ionbatterymaterialsandmanufacturing, butanimportant • analyses since2014.In2020,LifeCycleAssessmentscompletedinclude: envir 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 500 gasolineshowa For instance,themainresults from theLCAanalysis oftheNewFiat500electricvs • • New Fiat500electricHB-longrangevsgasoline1.269hp Jeep RenegadePHEV190hpvsgasoline180 1.4 8VFlexandNovaFiatStradaFr Fiat StradaHard Working CC1.48VFlexvsNovaFiatStradaEnduranceCabinePlus onmentally-friendly products. Collectively, FCAhascompleted31fullvehicleLCA higher Global Warming Potentialforthe production oftheNew eedom CabinePlus1.38VFlex VEHICLE END-OF-LIFEMANAGEMENT weight, incompliancewiththeEU’ In 2020,allGroup vehiclessoldinEurope were 95%recoverable and85%recyclable by the developmentofnewstandards orregulations, suchasvehicleandbatteryrecycling. in thereview process ofend-of-life vehicle(ELV) andend-of-lifebatterypolicies,supporting achieve the reuse/recycling/recovery targets in EU countries. In addition, FCA participates free take-backnetworks,sharingofdismantlinginformation andcontinuousefforts to the designofrecyclable andrecoverable vehicles,managementoftheend-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 Economypackagedescriberequired regulates end-of-life managementactivitiesandresponsibilities. IntheEuropean Union, the mostrecycled consumerproducts inthatcountry. Inothermarkets, locallegislation a market-drivenr In theU.S.,environmental effects ofvehiclesatthe end-of-life stageare reduced using life stage. impact isalsoreduced atthepointwhencustomerdiscards thevehicleatitsend-of- production, deliveryandusephases.FCAdesignsourproducts sothattheirenvironmental Pursuing aresponsible approach across the valuechainmeanslookingbeyonddesign, ecycling infrastructure, makingautomobilesandtheircomponentsamong s Reusability, Recyclability, RecoverabilityDirective. 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 thevolumeofsalvageablematerialsheadingtolandfills.TheFCA aftermarket needsofcustomers,simultaneouslyreducing thecostofvehicleownership developed specific product lines of remanufactured parts. These parts support the To provide asecondlifeforselectedpartsusedinFCAvehicles,theCompanyhas that FCAstrivestoreduce byemployingcircular economyprinciples. 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 a positive 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 KEY FCA FIGURES SUPPORTING UNITED NATIONS SUSTAINABLE DEVELOPMENT GOALS (SDGS) RATINGS NCAP 5-STAR ACHIEVED MODELS 6 CONTACT CENTERS WORLDWIDE BY CUSTOMER CONTACTS HANDLED MILLION ~45.5
AGENCIES ON EXTERNAL RATING PLACEMENT BASED FIRST QUARTILE MARKETS, ACHIEVED IN THEIR RESPECTIVE 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 r 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 equirements oftheU.S.Motor Vehicle
by alertingthem to certainpotentiallyhazardous situationsorassistingthemin mitigatingthe tertiary safety FCA offers active andpassivefeatures fordiversedriversand vehiclesegments,alongwith speed limitsandrelays theinformationtodriver. uses digital camera technology and navigation-system data to monitor the roadway for improve safety andthemobilityexperience.Forexample,IntelligentSpeedAdapter (ISA) them. Byproviding real-time availabilityofservicesandinformation, FCAiscontributingto and passengers'abilitytosafelyinteractwiththeirvehicle withtheworldaround devoting significant resources to research anddeveloptechnologiesthatsupportdrivers FCA isresponding toconsumerexpectations ofhightechsolutionsintheirvehiclesby SAFETY TECHNOLOGYANDRATINGS 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 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 ofoccupantandvulnerableroad usersafety, suchasdevelopingnewand FCA groups also actively participates in national and international and projects focused elements. The intent of active safety systems is to help drivers avoid crashes elements. The intent of active safety systems is to help drivers avoid crashes 89 2020 SUSTAINABILITY REPORT Products and Customers Customer Focus comparative safetyofvehiclesacross theindustryindif independent agencieshelpvalidateourprogress. Independentagenciesratethe As wecontinueefforts todeliveradvancementsinsafetytechnologies,ratingsfrom to beconsidered whenassisting theoccupantsofvehiclesinvolvedinanaccident. consideration as wedevelopandtestoursafety systems. stringent protocols toachievefive-starsafetyratings.FCA hastakentheseprotocols into Independent ratingagencies,such asEuro NCAPandIIHS, haverequired increasingly • • • • • 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 rescue t In thearea oftertiarysafety 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 China: 100% Australia andNewZealand:83% Latin America:33% EU: 19% U.S.: 43% eams or first responders on special design elements and the position of components , theGroup provides emergencyrescue sheetswithinformationto ferent regions. Whilethespecific • 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 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 ofthe importanceofcustomerschecking 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 hasbeenharmonizedtoenhancecoordination across r Through theGlobalTechnical Complianceorganization,thevehiclesafetyinvestigationand • • deposits onthecontactpointsofcertainfuelpumprelays mayinterruptelectricalcurr connection. Feedbackfrom FCAdealersledtoaninvestigationthatdiscovered silicon Campaign onapproximately 708,000vehiclestohelpensure theintegrityofanelectrical and malfunction.Affected ar circuit maybehigherthanbrake switchloadspecificationsandmayleadtocontactwear illuminate thebrakelightswhenpedalispressed. Electricalloadsonthebrakeswitch Campaign onapproximately 252,000vehiclestoreplace abrakeswitchthatmaynot and 2020Ram1500Classicpickups,produced before March 3 of2020. poor visibility. Affected are certain2019and2020JeepCompassSUVs, If so,intendedwiper-arm movementmaybecompromised, potentiallycontributingto to connectwindshield-wiperarmsoncertainvehicles,maynotbesufficientlysecur A warrantydatareview prompted anFCAinvestigation thatdiscovered afastenerintended Campaign onapproximately 555,000vehiclestotightenawindshield-wiperfastener. Durango andJeepGrandCherokee SUVs. and prevent enginestart-upand/or contributetostall.Affected are certain2011-13Dodge e certain2016to2020FiatMobihatchbacks. egions egions ed. ent
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 • • 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 some regional r Due to COVID-19, the ability to gather customer feedback impacted the availability of • • • • • • • placement intheirrespective markets: The followingmodelsachievedfirstquartile • • • • • Fiat Mobi-LATAM Dodge -NorthAmerica Jeep Compass-APAC Jeep Compass-LATAM Jeep Renegade-LATAM Fiat Strada-LATAM Lancia Y Fiat Panda-EMEA Dodge Durango-NorthAmerica Jeep -APAC Jeep -LATAM Lancia -EMEA Fiat -EMEA Ram -NorthAmerica psilon -EMEA esults.
on qualitystandards. When thisoccurs,FCAtypicallyappliesthemoststringent At times,differences incustomerexpectationswithinaspecificmarkethaveanimpact solutions more costeffective. potential qualityissuesearlierinthevehicledevelopmentprocess andmakesimplementing 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 r 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. Reliabilitytest fleetvehiclesar Engineering andQualityteamsalsostudyhowvehiclesperform inlesspredictable powertrain plantsinEurope are alsoIATF 16949certified. plants haveadoptedaQualityManagementSystemthatisISO 9001certified,andall dealers, andultimately, totheendcustomers.Aspartofourqualityapproach, allGroup All ofthese tools are usedto find and resolve qualityissuesbefore vehicles are shipped to technicians canassessandmitigatebuildparameterstoevaluateriskmore proactively. and acomplexsetoffixtures thatmimicthebodyshop’s process sothatengineersand laboratories withaclean-r 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 helpexpeditequality issue resolution across functionalgroups 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 if differ design phase,whichisthenevaluatedagainstexistingdataandprocesses todetermine ent testingortimingapproaches are needed.Theprogram helpsidentifyandavoid egulations, toparticipateinan online communitytoprovide earlierandmore oom environment. The metrology labs use laser scanners e drivendayandnightonpublicroad surfaces,
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.FCApr 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 experiencesare monitored onamarketbasisthrough surveysthatprovide insight dealer network,thevastmajorityisprivatelyowned. over time toimprove processes, customerservicestandards and service quality for theGroup’s values, localr 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 c ustomer advocacy and satisfaction with the dealer network. Results are integrated into 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 equirements, anddifferent customerneeds.Measures havebeenimplemented ovides opportunitiesforcustomersto
customer iscontactedbyasales consultanttofinalizethepur a fewsteps.Thesystemsendsthe informationtotherelevant dealershipandthe ultimately order thevehicle andotherservices,includingfinancingoptions,inonly experiences from previous visitorsto helpdealersimprove customer experience. dealers inEurope. CustomerFirstoffered easyaccesstofeedback, opinionsand Customer FirstAwar In additiontonewe-commerce solutions,FCAexpanded on thesuccessofits to beextendedotherEuropean countries. The project involvesallFCAbrandsandthesalesnetworkin Italyandisexpected 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 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,suchascustomerexperienced-based vehicle features. Contentincludedintrainingdevelopedforsales,after-sales andtechnical model launches, process improvements, customer expectations and advancements in Training contentvariesbymarketandchangesovertimetoreflect brandpresence, d forExcellence in NorthAmericabyunveilingthe program at TRAINING OF DEALERNETWORK HOURS MILLION 5.1+ chase process.
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 • LOCAL schools,supportingapproximately 7,500activestudents. secondary andruralmarkets.At theendof2020there were 97MoparCAPand in 2015,continuestogrow thenetworkofschoolsinU.S. byenlistingschoolsin 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 Degrees@Work andDegrees@Work Familyprograms. U.S.dealershipemployeesand metr CAP hascr potential, entry-levelautomotivetechniciansforemploymentatFCA dealerships.Mopar by anetworkofschoolsintheU.S.thatutilizeFCA-specificcurriculum totrainhigh- Mopar Career Automotive Program program (CAP).Thisstudyandinternship isoffered 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 sales and the dealernetwork.In2020,more than60,000 vehicles andimprove thetechnicalskillsandknowledgeof products. FCAoffers trainingtosupportthelaunchof electrified One ofthecentraltrainingtopicsforFCAiselectrificationour opolitan areas oftheU.S. In addition,MoparCAPLOCAL,whichwasestablished families are offered the opportunity to receive a no-cost, no-debt college degree. eated strategicpartnershipswithautomotivetechnicalcolleges primarily in as wellsystems andnewprocedures. provided over 48,000hoursofagenttraining onnewproducts, behaviors andprocesses, are essential forahighlevelofcustomersatisfaction. Forthisreason, in2020theGroup speakers of29languages.FCAbelieves thatskilled,knowledgeableandmotivatedagents efficient manner. Theyprovide multilingual supportwithastrong focusonemployingnative the customeruntilar 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 customercontactorganizationsinallr In additiontowebsites,smartphoneapplicationsanddigitalmedia channels,FCAhas information aboutvehiclemaintenanceandservices,alongwithaccessories andmerchandise. and automotiveblogs.Ownersitesare availablewithinmarketstoprovide ourcustomerswith media teamsmonitordigitalchannels,suchasFacebook,T 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. TechPro 2 program. project Thisinternational isathree-year program forselectedstudents esponse is given or a concern isresolved,esponse isgivenoraconcern ensuringresolution inan 2 withabout31%ofthemwithintheFCAdealernetwork.Around egions toensure strong andglobal witter, Instagram,YouTube, 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;potentialrisksorhazar FCA regularly engageswithcustomerstoprovide informationregarding theproper use 427 761 PERSONNEL PERSONNEL EMEA NORTH AMERICA S SPOKEN LANGUAGE 25 S SPOKEN LANGUAGE 3 ds; safetyandusageinstructions; 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 [SDGs9 ] product information. than 130countries worldwide,andissubjecttonumerous lawsandr ourglobalfocus,theGroup sellsourproductsWith andservicestoconsumersinmore sustainable communication. truth, accuracy, fair the FCAAdvertising,Marketing& CommunicationPrinciplesincludestandards ofhonesty, 24 148 PERSONNEL PERSONNEL APAC LA T AM ness andpropriety incommunicationandprovide thecriteriafor S SPOKEN LANGUAGE S SPOKEN LANGUAGE 5 2 Brisbane, Australia Pune, India Tokyo, Japan Seoul, SouthKorea Shanghai, China Cordoba, Argentina Belo Horizonte,Brazil Valencia, Venezuela egulations governing egulations governing 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 is expectedtobeintroduced inotherItalianandEuropean cities. this monthlysubscriptionserviceof My Dream Garage: available exclusively to buyers of New Fiat 500 electricvehicles, needs ofourcustomers,basedonthepackagetheyselect. vans –FiorinoandDoblò.Theseexpandedof Hybrid, MaseratiGhibliandLevante,theNewFiat500electricPr such astheall-newJeepCompass4xePlug-inHybrid,Renegade CarCloud: introduced additionalmodelsaspartoftheLeasyssubscriptionofferings, sharing serviceinT Leasys GO!: afleet of New Fiat 500 electric vehicles was introduced as a free-floating car urin (Italy)andinitiallytestedbytheGroup’s employees.Theservice fers alargeselectionofFCA'snameplates. ferings supportbothbusinessandleisure ofessional
in 1987tohelpcustomerswithpermanentdisabilitiesenter 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 mobilitycanof FCA alsosupportsindividualswithspecialmobilityneeds.Foranindividualadisability, features availableonourvehicles tobenefitspecialmobilityneeds. rehabilitation specialists present the latest in advanced safety and conveniencetechnology assistance foradaptiveequipment,theprogram hasprovided sessionswhere 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 driveror passenger equipmentonmost Chrysler, Jeep,Dodge,Ram or Fiat vehicle. Theprogram provides financialassistance up to€893oftheexpenseforinstalling fer anincr eased levelofindependence.AtFCA,theAutonomyand , exitand/oroperateanew 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 FCA's 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 pillarseekstoeliminate wasteandincrease theproductivity, to eachpillar’s topic,includinganenvironmental 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 Hea Environmental protection andcomplianceatFCAismanagedthrough ourEnvironment, the production atFCA’s plantsacross thevariousregions. mainly duetotheeffects oftheCOVID-19pandemicwhichcausedtemporaryhalt manufacturing performanceandachievementofsometargetswere negativelyimpacted 2020 wasayearwithuniquechallengesacross theglobe.FCA’s environmental Class Manufacturing(WCM)methodologiesandtools,these managementsystems The Group's EMSandEnMSare certifiedbyaccredited third parties. Together with World consumption. were ISO50001certified, representing approximately 99%oftheGroup’s totalenergy and theirbiodiversityinareassurroundingoursites. energy r FCA's EnergyManagementSystem(EnMS)focusesonmethodologies andprocesses audited bytheEHSorganization. already adoptedanEMSthatisalignedwiththeISO14001standard andare regularly of industrialrevenues, were ISO14001certified.Theplantsstillawaitingcertificationhave manufacturing activities.Attheendof2020,95Group plants,representing nearly100% other things,are designedtoprevent orreduce the environmental impactoftheGroup’s standard.a systemofmethodologiesandprocessesof FCA'sEMSconsists which,among Environmental ManagementSystem(EMS)worldwide,alignedwiththeISO14001 elated totheoptimizationofenergyuse.Atend2020, majority ofGroup plants Production lth and Safety (EHS) and Energy organizations. TheGroup has implemented an Environmental Guidelines Environmental consumption, water withdrawal and waste generation. Our environmental responsibility also entails efforts to preserve natural habitats natural preserve to efforts entails also responsibility environmental Our generation. waste and withdrawal water consumption, detail our commitment to address environmental and climate change issues by aiming to reduce CO reduce to aiming by issues change climate and environmental address to commitment our detail
throughout 2020. plants, withapproximately 25,500approved andappliedacross theGroup’s plants average of14proposals peremployee.Bestpracticeprojects are shared amongall FCA plantemployeessubmittedmore than1.5millionsuggestions,representing an improvement suggestions,eachofwhichisassessedforpotentialapplication. In 2020, apply WCM methods. Employees worldwide are also encouraged to make process our employees,whoar 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 foreachofthe10technical pillars,aswell commitment oftheworkforce tomakingsignificantchangesthatcansecure thefuture of 34 silverandsixgold.TheachievementofWCMaward levelsrecognizes thelong-term of ourplants:28haveachievedaWCMbr At year-end 2020,93FCAplantshaveimplementedWCM,whichcovers more than99% e involvedintargetedtrainingprograms inorder toproperly APPLY WCM FCAOF PLANTS ~100% onze levelofimplementationandperformance, 2 emissions, 98 2020 SUSTAINABILITY REPORT Production and Responsible Sourcing Production recorded adecrease of8%compared with 2010(from 7.3to6.8GJ). normalized At mass-marketvehicleassemblyandstampingplants,the energyconsumption in absoluteterms. In 2020,energyconsumptionwaslowerthanboththeprevious yearandthebaseline year Over time,thesesolutionshavegeneratedsignificantsavings inenergy-related costs. in ourenergyconsumption,withaparticularfocusondecreasing theuseoffossilfuels. The Group seekssolutionsinourmanufacturingprocesses 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 pr 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 per vehicle produced increased compared with last year (at 6.8 GJ), but still ocesses inorder thatthose operationsbenefitfrom theWCMsystem. 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;toincrease energyawareness efficiency ofsystemsandequipment;toimplementorganizationalmeasur During theyear, theGroup rolled outmore than4,200projects toimprove theenergy Total Direct energy consumption Mass-market vehicle assembly and stamping plants worldwide (GJ) Direct andIndirect EnergyConsumptionperVehicle Produced - Indirect energy consumption Direct andIndirect EnergyConsumption FCA worldwide (TJ) 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% vs2010) [ [ View data es suchas 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 Total Mass-market vehicle assembly and stamping plants worldwide (tons of CO of (tons worldwide plants stamping and assembly vehicle Mass-market Emissions of CO CO of tons of (thousands worldwide FCA In 2020, total CO MANUFACTURING CO In 2020,tosupportourcommitment toreduce CO Indirect emissions Direct emissions - consumption in2020. sources used inGroup production processes represented around 16%oftotal electricity power is used forelectricityand/or heatingat some Group plants. Energy from renewable located, electricity originatedalmost entirely from renewable sources. In addition, solar renewable sources. InBrazil,where themajorityofourSouthAmericanplantsare Direct andIndirect CO the 2010baselinelevelonbothatotalandpervehicleproduced basis. decreased by16%compared with2019to2.9milliontons.Thisachievementwasbelow C O 2 emissions (base year) 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% vs2010) View data [ SDGs 12 2020 target 2010 3,958 2,882 1,075 ] ] FCA LATAM CARBONNEUTRALPROGRAM the residual carbon emissions. are Carbon Neutral,astheybuyrenewable energyandcompensate in bothBrazilandChile.Asaresult, 75%ofFCA'splantsinLATAM Contagem becameCarbonNeutral, alongwithsomeregional offices In 2020,twoothercomponent production plantsinGoianaand Guararapes; andpartdistribution centersinBetimandHortolândia. Largo andBetimengineplants; componentplantinJaboatãodos also obtainedCarbonNeutralcertifications inBrazil:Campo suppliers inthecomplex’ first carbonneutralmulti-plantindustrialcomplex,whichincludes 16 In 2020,theachievementinGoianawasextendedbybecoming the raising awareness ofsuppliers. planting seedlings,recovering environmentally degraded areas and offset withcarboncredits. Inaddition,otheractionsincluded renewable electricityandcleanerfuelsuse,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, s SupplierPark.Inaddition,thefollowing 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. serviced byeitheraninternal FCA’s overall impactonwater. Of113totalplants(including fourjointventures) active in measures and analyzes the quality of wastewater to provide a comprehensive view of wastewater withregulated constituents atlevelswellbelowlegallimits,andr In addition to minimum standards of legal requirements, FCA aims to discharge its for 2020. stamping plantswasapproximately 36%lowerthan2010,almostachievingthetargetset 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, in2020FCAr 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 the decrease thelevelofpollutantsindischargedwater. We periodically maptheavailability water usebyincreasing ther 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 waterwithdrawalfrom WATER MANAGEMENT ecycling andreuse ofwater, andweadopttechnologiesto WATER SAVED M BILLION 1.8 3 educed totalwaterwithdrawalatourplants ofwatersaved. 3 3 ). Thereduction in the egularly
Water Withdrawal andDischarge - F of which water withdrawal water which of recycling by covered which of requirement Total water Water discharge withdrawal Water FCA worldwide (millions of m of (millions worldwide FCA Mass-market vehicle assembly and stamping plants worldwide (m Water WithdrawalperVehicle Produced (1) - Recycling Water recirculated in the plants. W CA worldwide (millions of m of (millions worldwide CA 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 ater RecyclingIndex c onsumption (base year) i ndex 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% vs2010) [ [ [ View data 2018 SDGs 12 SDGs 12 SDGs 12 2020 target 2010 2,340.4 2,318.7 99% 30.6 10.2 20.4 21.7 ] ] ] 101 2020 SUSTAINABILITY REPORT Production and Responsible Sourcing Production 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 Total 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 r In addition towaste management generally, theGroup -inaccordance with applicable products orenergy. generated bysellingrecoverable wastetocompaniesthatuseitgeneratenew with 2019,savingabout€3.5million.Inaddition,revenues ofabout€26millionwere 21% r 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 egulations ineachjurisdiction-placesparticularimportanceonreducing the wastegenerated eduction oftotalwastegeneratedatourplantsworldwidein2020compared 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% vs2010) (-14% vs2010) [ [ View data SDGs 12] SDGs 12] 2020 t 2020 target arget 102 2020 SUSTAINABILITY REPORT Production and Responsible Sourcing Production footprint havinganeconomic,envir 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 whileminimizing new constructionandland 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 tobuildingonagreenfield site.Theoriginalplantwas onmental, andsocialimpactontrafficcongestion. 2 emissions when emissionswhen supplier network,Gr 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, • The Company'slogisticsapproach focuseson: of freight andvehiclemovement. optimize transportfleetcharacteristicsandapplymethodologiesto reduce theimpact goods. TheCompanyhasadopted Logistics Guidelines that provide direction onhowto operators,dependingontheoriginanddestinationof andexternal of internal transports amongtheseparties.Thelogisticsoperationsare handledbyavariety and transpar We monitorourlogisticsperformancetoidentifyareas ofimprovement andactionsneeded, • Mopar Total 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, of Environment, 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 adoption oflow-emissiontransportvehiclestoimpr the optimizationoflogisticsflows regarding network,modeandcapacityin additiontothe use ofpackagingandpr the implementationofemergingsolutionsandtechnologiestoprotect partsanddecrease the on theenvironment emissions (3) ently communicateourrelated environmental andsocialimpactstostakeholders. 2 Emissionsfrom LogisticsProcesses (4) oup plants,PartsDistributionCenters,anddealersbymanaging otective materialstosaveresources. 2 ) 2020 1,2 521 716 96 59 ove performanceandminimizeimpacts (2)
2019 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
processes are based on the Group’s commitment to Group’s the to on based commitment are processes
face. The FCA Code of Conduct and the due diligence diligence due the and FCA of Conduct The Code face.
way the to global chain supply may challenges address
Collaboration and respect will continue to provide the best best to the provide will continue respect and Collaboration
collaborating with suppliers more than ever before. than more suppliers with collaborating
are adopted more quickly, and automakers are are quickly, more automakers adopted and are
The vehicleThe cycle design is technologies more stringent,
connected, electrified, autonomous,shared.and electrified, connected,
driving change as vehicles today are becoming more more becoming today are vehicles as change driving
including the automotive the sector.including Technology is
presents particular challenges for all major industries, industries, major all for challenges particular presents
Managing the complexity ofManaging the multi-tier complexity chains supply
Sourcing
Responsible
UNITED NATIONS SUSTAINABLE DEVELOPMENT GOALS (SDGS)
KEY FCA FIGURES SUPPORTING
WORLDWIDE
SUPPLIERS SUPPLIERS
~2,000
IN TOTAL PURCHASES
BILLION
~€60
QUESTIONNAIRE
ASSESSMENT
SUSTAINABILITY
THROUGH THE SUPPLIER
ENGAGED IN ASSESSMENT
VALUE
OF PURCHASED PURCHASED OF 48% 104 2020 SUSTAINABILITY REPORT Production and Responsible Sourcing Responsible Sourcing SELF-ASSESSMENT SUST SUPPLIER REGIONAL SUPPLIERS GUIDELINES FOR SUSTAINABILITY impacts. Localsuppliersare thosewithmanufacturingoperationsthatsupplyanFCA developed andemergingeconomies,whileminimizingtransport-related environmental and employmentopportunitiesinthecommunitieswhere thebusinessislocated,inboth suppliers near 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% ofdir Our supplybaseis concentrated, with 286 strategic suppliers accounting forapproximately everything from basicmaterialstostate-of-the-artcomponentry. opera Weapproximately haveaglobalnetworkof 2,000suppliers,ranginginsizefrom small services neededtorunouroperations. that makeupourvehicles,aswellindirect suppliers,whoprovide the goodsand Our suppliersincludebothdirect materialsuppliersthatproduce thepartsandcomponents OUR RESPONSIBLESOURCINGJOURNEY 2009 AINABILITY DEVELOPING ASUSTAINABLE SUPPLY CHAIN tions with few employees up to very large companies, which supply us with ect materialpurchases byvalue.TheGroup classifies suppliers asbeingstrategic major locations of operation. This generates direct and indirect income 2010 COLLABORATION AIAG 2011 CORRUPTION AND ANTI- HUMAN RIGHTS CONDUCT FOR CODE OF SELF-ASSESSMENT SUPPLIER SUSTAINABILITY GLOBAL 2012 2013 CHAIN CDP SUPPLY plant locatedinthesamecountry The selectionofsupplierswithpr while enhancingtransparency regarding rawmaterialoriginandhumanrights. environmental andsocialprinciplesbyfocusingonoursupplybasesustainabilitydevelopment Our responsible sourcing aimstoensure journey adherence tocommon,globally-embraced, and long-termcore competenciesthathavedrivensustainablegrowth overtime. and sustainabledevelopmentpractices.Thesepracticesfocusedonlimitingtheexposure to unexpectedeventsandsupplydisruption,whilebuildingstronger supplierrelationships go beyondthepurely commercial sphere inorder to worktogethertodevelopresponsible based onamutualpursuitofexcellence.Ourcloserelationships alsomadeitpossibleto In theresponsible sourcing journe social, environmental, key and governanceconsiderationsintoglobalpurchasingdecisions. integrate to organizations and counterparts non-automotive integration ofprocesses worldwide.Thisdepartmentalsoworkswithautomotivepeers, traditionally playsacriticalrole insettingglobalpur Compan understanding, readiness toinnovate andrespect forsustainabilityiscriticalthe our spendingatplantsinBrazilhasoriginatedfrom in-countrysuppliers. y. FCAPurchasing, the functional area responsible for supplier management, 2016 DUE DILIGENCE 2017 SCORECARD SUPPLIER GLOBAL . Forexample,inthelastthree yearsmore90% o than y, wehavestrivedtocreate relationships withsuppliers oven capabilitiesinqualitymanagement,market 2019 NETWORK BLOCKCHAIN SOURCING RESPONSIBLE chasing strategiesandoverseeingthe
NQC PLATFORM 2020 SUSTAINABILITY DRIVE View data f 105 2020 SUSTAINABILITY REPORT Production and Responsible Sourcing Responsible Sourcing safety practices;ethicsandanti-corruption;trainingofemployees. year andverifysupplieractivitiesinrelation to:humanrights;environmental, health and The aimwastocoveratleast60%oftheGroup's annualpurchased valueduringeach was introduced usingsustainabilityself-assessmentquestionnaires andon-siteaudits. including terminationofthebusinessrelationship. Athree-year monitoringprocess FCA. Additionalactionswer Failing tomeetthesestandards entailedacorrective actionplanjointlydevelopedwith including theFCACodeofConductandSustainabilityGuidelinesforSuppliers. requiring newpurchase orders toalignwiththeprinciplessetforthbyFC developing anongoingbusinessrelationship. Clauseswere introduced tonewagreements and environmental principles has remained a condition to becoming an FCAsupplierand standards thatcanbefoundonourcorporatewebsite.Thiscommitmenttosocial,ethical requiring supplierstocommitoperatingresponsibly according toFC The commitmenttoaddre 2010 Sustainability GuidelinesforSupplierswer 2009 additional contracts andcontinuedgrowth with FCA. questionnaires and localauditswere considered inthefinaldecisionawardfortheof of suppliers. The supplier sustainability performance assessed through self-assessment Regional environmental andsocialaspectswere integratedintotheglobalmanagement 2012 the previousrequirementsforacertifiedEnvironmentalManagement System. of Ethics,aswellacertified Health was in Management System. This change addition to 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 otherautomakers,suppliers and theAutomotiveIndustryAction Group ss ethicalandsocialsourcing riskswasexpandedby e adoptedbyFCAincaseofnon-compliance,uptoand e developedtogetherwithindustryassociations, A’s policies, A’s ethical
and supportourduediligenceactivities. for resources additional started also provides which platform NQC supplier the adopted also We Sustainability, anautomotiveassociationfocusedonresponsible sourcing collaboration. FCA extendeditscommitmenttoenhancesuppliersustainability byjoiningDrive 2020 level oftheextendedsupplychain. ThisisthecriticalfirststeptohavetransparencyTemplate (CMRT). downtothe smelter achieved nearly 100% response rate from our suppliers forthe ConflictMinerals Reporting sustainable, responsible sourcing andproduction practicesfrom minetomarket.We also Network (RSBN), anindustry collaborationusing blockchain technology tosupport to enhanceoursustainabilitystrategy. FCAjoinedtheResponsibleSourcing Blockchain We launchedtheResponsibleSourcing project togatherinputfrom diverseviewpoints 2019 conversations. strategic indicatoravailableonallregional scorecard viewsandusedforsuppliersourcing supplier performance.Everyyear, suppliers’sustainability performanceiscaptured asa A Global Scorecard withstandardized regional metricswasdevelopedtoevaluate 2017 subsidiaries. SEC obligationsasaresult oftheconvergenceactivityregional FCAdataincludingthe firstunder theSECConflictMineralsrule.FCAfileditsreportglobally2016follow into Our commitment tominerals source due diligence was reinforced to fulfillobligations 2016 climate, particularlyregardinggreenhousegasemissions. Chain initiative.Thisinitiativepr Suppliers' environmental responsibility expandedwithparticipationin the CDPSupply 2013 utiaiiy development sustainability to perform a Cobalt survey to gain greater transparency in the supply chain supply the in transparency greater gain to survey Cobalt a perform to omoted awareness amongsuppliersoftheirimpactonthe (see sesn Sple Ssanblt section ). Sustainability Supplier Assessing We 106 2020 SUSTAINABILITY REPORT Production and Responsible Sourcing Responsible Sourcing collaborating oncommonissues. organizationstodetermineopportunities fordiscussions withnon-governmental due diligencewithaspecificfocusonchildandfor In lightofthegrowing momentumamong stakeholderstoundertakehumanrights supply chain. Code ofConduct.Thisresource ismeanttobeshared across alllevelsofthemulti-tiered recorded trainingmodulewhichwascreated toassistsupplierswithdevelopingaSupplier Supplier CodeofConduct.Thismessageisshared invarioustrainingmaterials,includinga bargaining. To reinforce theseexpectations,FCA isastrong supporterofcreating a compulsory labor 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 i FCA’s approach over the years has been built on assessments and competency-building the communitieswhere therawmaterialsare sourced. more efficientlyandpreemptively mitigateunethicalpractices thatthreaten thefuture for rights abusesorarmedconflict. Traceability andmappingofrawmaterialsare 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 fortheCompanyandcommunitiesinwhichwedobusiness.This beliefis The respect andsupportoffundamentalhumanrightsisessentialforbuildingabetter HUMAN RIGHTSANDBUSINESSPRACTICES nitiatives. Self-assessment questionnaires are used to monitor the suppliers’ management , aswelltorecognize the right tofreedom ofassociationandcollective ced labor, during2020FCAbegan
• • • • RAW MA trade andprocessing stages.Suchengagementsinclude: through ethicalandconscientiousprocurement practicesduringthemineralextraction, the automotiveindustry,FCAaddresses notonlytheneeds,butopportunitiesthatexist Through engagement withseveralmulti-stakeholderorganizations,bothwithinandoutside for incidentsofchild,forced orcompulsorylaborinoursub-tiersupplychain. movement ofConflictMineralstofinancetheiroperations.Thismayalso represent risk a “covered countries.”Insomecases,illegalrebel groups control minesandthetrade the DemocraticRepublicofCongo(DRC)orsurrounding countries,oftenreferred toas gold. Thesemetalsar The vehiclesweproduce containvariousmetals,includingtantalum,tin,tungsten and CONFLICT MINERALS of newtoolsandresourcesthatcanbetterevaluatematerialsrequireriskmitigation. stakeholders andlaunched the Responsible Sourcing project tofacilitate thedevelopment its importanceinoursourcing process. Insupport ofthis,FCAinteractswithmany of any raw material may beseveral tiers removed in the supply chain, we recognize The responsible procurement ofrawmaterialsforourvehiclesisvital. Althoughthesource resources forsuppliersustainabilitydevelopment andgathersuppliersustainabilitydata. resources. Inaddition, FCAusedanewserviceprovider, NQCtoprovide additional Initiative, supportscr members oftheResponsibleBusinessAlliance(RBA)and Global e-Sustainability Our membershipwiththeResponsibleMineralsInitiative(RMI),which wasfoundedby mica andConflictMineralsactivities relationships. gr FCA becameamemberofDriveSustainabilityin2020.Thisnew associationprovides the ResponsibleMineralsworkgr In theAIAGCorporateResponsibilitySteeringCommittee,FCAwas electedco-chairof whether theprocurement ofthosemineralssupportedthearmedconflictinthis region. tin, tungstenandgoldintheirsupplychainoriginatedfrom thecovered countries,and of theU.S.Dodd-FrankAct,whichr In collaborationwiththeAIAG,FCAhasdevelopedstrategiesaddressing Section1502 eater engagementwithotherOEMs,aswellaccesstoadditional toolsand TERIALS SOURCING e commonlyreferred toasConflictMineralsandmayoriginatefrom oss-industry discussionanddevelopmentofcommontools. oup whichleadsautoindustryengagementincobalt, equires companiestodetermine whethertantalum, 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 sour We work with our suppliers, to determine whether tantalum, tin, tungsten or gold were we are helpingtobuildfairsupplychainsofmineralsinthecovered countries. Through AIAG,RMI,andDriveSustainability, alongwithotherstakeholderorganizations, hoc trainingforthetargetedsuppliersr To prepare suppliers for submitting information into the new NQC platform, FCA provided ad • • • the materialsusedinproducts theysupplytoFCA diligence andpr require arelevant suppliers make reasonable efforts to conduct the necessary due including fr expect oursupplierstosource materialsfrom suppliers whoalsosource responsibly, supply chain. provide detailedsmelteranalysis tosuppliersreporting non-conformantsmeltersintheir review submissionsfrom allincomingCMRT oursuppliers suppliers toutilizeanysuchconflict-fr support initiativestoverifysmeltersandrefiners thatare conflict-free andexpectour ced from covered countriesasalsooutlinedbytheOrganisationforEconomicCo- om legitimate,conflict-free minesinthecovered countries ovide uswithproper verificationofthecountryoriginandsource of egarding thecompletionand submissionoftheCMRT. ee smelter/refiner programs thatare available 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. refinerauditprogram,alignedwiththeOECDDueDiligenceGuidanceandtheChinese materials. RMIhasalsocollaborated withtheResponsibleCobaltInitiativeonajointcobalt to mitigateundesirable practices as they relate toConflict Minerals, cobalt and other raw global supplychain.Thistoolcanhelpimprove supplychaintransparency andmapping Assessment, whichaddresses environmental, riskspresent socialandgovernance inthe To helpcompaniesaddress thesechallenges,theRMI has developedtheRiskReadiness metals andmineralsthrough process, toolandinfrastructure improvements. use theirglobalpresence and leveragetodriveground-level improvements in theminingof 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 informedthattheCRT andtargetedsuppliers with RMI tohave these facilities addedasa priority for engagement. In addition, in 2020 conformant listswetargetthosefacilitiesforoutreach anddevelopment.We alsoworked discussions fornextsteps.Whensmeltersandrefiners are notfoundontheRMIactiveor against theRMI Cobaltsmelter/refiner lists to check their conformance status and facilitate and refiners being utilized. When the CR information through thesupplychainregarding thecobalt'scountryoforiginandsmelters facilitatestheexchangeof forConflictMinerals.TheCRT RMI, andissimilartotheCMRT Thisisanautomotiveindustrytoolprovidedthe CobaltReportingTemplate(CRT). by Our electricvehicle(EV)batterysupplierswere thefirsttor and thestrategyforward dependsonappropriate applicationofthesetools. which approach bestsupportsourneeds.Manyresources haverecently beenreleased to applyingindustrytoolsandresources. We haveevaluateddifferent toolstodetermine new materialsrelies from onthelessonslearned ourConflictMineralsprocess inaddition aroundthe ongoingconcerns theuseofchildlaborinminingcobalt.Expandinginto FCA hastakenactiontobeginengagingsuppliersregarding cobaltintheirproducts given Cobalt is of growing interest for the auto industry due to its use in electric vehicle batteries. COBALT s werereceivedfromsuppliers,theywereTs verified eceive ourrequest tosubmit most effective manne FCA toanappropriate proposed actionplan,andefforts are ongoingtoapplytheminthe pr In aneffort toenhanceouroverallsourcing processes wecreated aResponsibleSourcing mirror housingandcovers. surface coatingsandcontainedinothervehiclematerials,suchaspolymersforexterior 2019. Micarepresents forchild labo anotherarea ofconcern In addition,RMIopenedtheRiskReadinessAssessmentprocess to micasmelters in MICA ANDOTHERS blockchain pilot. In 2020,weworkedwithRSBNtomakeimprovements whileparticipatinginthe internally support sustainable,responsible sourcing andproduction practicesfrom minetomarket. Network (RSBN)whichisanindustrycollaborationusingblockchaintechnologyto protection inmineralsupplychains,FCAjoinedtheResponsible Sourcing Blockchain Furthe oject thatgathered inputfrom diverseviewpoints.This project generatedtoolstoguide r, inresponse totherecommendations tostrengthen humanrightsandenvironmental r. r. Itisusedpredominantly in 109 2020 SUSTAINABILITY REPORT Production and Responsible Sourcing Responsible Sourcing ELIGIBILITY SUPPLIER ASSESSMENTPROCESS the supplierhasalready beenassessedforotherfacilities,products, orcommodities. which asupplier’slocationhasnotdelivered aproduct typeformore than12months,evenif who are notcurrently providing partstoFCA,butmaysoon.Itcanalsobeusedinsituations The assessmentisconductedpriortotheprocurement phaseforallthosesuppliers’plants actions, responsibilities, andtargetdatesforresolutionforallidentifieditems. canbedefined is created tobringthesupplierintocompliancebefore businessissourced. Corrective potential suppliershowsdeficienciesinareaanyassessment,oftheagapclosurestrategy The SEAalsoincludesanauditcarriedoutatthesupplier’sfacilitybyFCApersonnel.Ifa labor practices,humanrights,andtheirimpactonsociety. system. Theseconditionshelpensure thattheymonitorandmanageenvironmental aspects, system formanagingemployeehealthand safety; and a certified environmental management along thesupplychain.AfewofmainitemsinSEAare: acodeofconduct;certified and capabilitiestoproduce partsoftherequir Supplier EligibilityAssessment(SEA),weidentifyapotentialsupplier’sstrengths, weaknesses an evaluationhelpsdetermineitssuitabilitybasedonabroad setofcriteria.Through the Before FCAconductsbusinesswithacompanytopurchase vehiclepartsandcomponents, demonstrate thattheyhaveadoptedaprogram thatpromotes sustainabilit whether it has the potential to be a high-performing supplier for FCA.Potential suppliers must REQUIREMENTS ed qualit y, performanceandcost,evaluate , both internally and y, bothinternally
SUPPLIER WCM AT WCM THE ACADEMY SUPPLIERSTRAINING indicators. and mentoringtoimpr 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 pr 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 oviding WCMmethodologyandtoolstooursuppliers.support EVENTS 3 ove asupplier'skeyactivityandperformance PARTICIP 14 1 ANTS 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% ofFCAannualpur In 2020,disclosingsuppliersaccountedforapproximately suppliers reported theirscope1and2emissions. emissions andclimateimpact.Approximately 50%ofresponding the importanceandbenefitsfrom transparently reporting on dedicated suppliertrainingwebinarswer 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 r Based onsupplierdatasubmitted,thescale-upestimate, Chain program. 57% ofannualpurchases by value)through theCDPSupply epresenting 100%oftheannual purchased value,for 2 emissionsfrom oursupply baseaccountedfor RATE RESPONSE 75 SUPPLIERS DISCLOSING 231 % chases byvaluefrom direct andindirect 2 emissions (accounting for about emissions(accountingforabout e held to communicate e heldtocommunicate SCORE AVERAGE C APV 57 % and adoptinglogisticsprocesses withminimizedenvironmental impact. greenhouse gases;properly managingenergyandwater use,wastetreatment anddisposal; a supplybasethatisseekingtooptimize itsuseofr As anexample,historicallywithinthe Environment section,self-assessmentfeedbackreflects • • • • • • • ASSESS The SAQincludesthefollowingsections: complete the SAQ online by accessing iton the NQC Supplier Assurance platform. within thesupplybase and to communicate FCA’sexpectations to oursuppliers. Suppliers automotive industry,hasatwo-foldpurpose:todeterminethelevelofsustainabilityactivity The SAQstandardized tool,developedbyDriveSustainabilityincollaboration withthe and 20%in-process ofourannualpurchased valueonbothdirect and indirect suppliers. FCA, whichcoversgreater than assessment eachyear.During2020,weinvitedtargetedsupplierstocompletetheSAQfor questionnaire (SAQ).ActiveFCAsuppliersare expectedtocompleteasustainability The firstphaseconsistsofgatheringsupplierinformation,viaasustainabilityassessment The social risks. 1 supplierswith potential exposure tosignificant environmentalassessments of allTier or beganwehavebeenfocusedonconductingsustainabilityauditsand Since ourjourney who provide evidencevalidationandmentoring. 1 suppliers.NQCSupplierAssuranceprovides both a platform for theSAQandpersonnel Sustainability. Thisdatagatheringtool shouldhelpreduce thereporting burden forourTier Questionnaire (SAQ),themostcommonautomotivesustainabilityassessment,from Drive sustainability topics.Inaddition,wehavemigratedtousingtheSustainabilityAssessment The Group hasmadesignificantprogresstounderstandhowsuppliersare focusingon 48% ofourinvitedsuppliersresponded tothequestionnaire, representing 28%completed Recommendations Responsible Sourcing ofRaw Materials Supplier Management Environment Business Ethics Health &Safety Working ConditionsandHuman Rights supplier complianceassessmentsare conductedyearlyandincludethree phases. ING SUPPLIERSTAINABILITY
95% of ourdirect annualpurchased value.Approximately esources andminimizeemissions
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 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 impr These auditsnotonlyhelpFCA,butalsostrengthen oursuppliersbyidentifyingareas of auditors. or external sustainability standards, andareSupplierQualityEngineers conductedbyeither internal • All direct materialsuppliersare analyzedandratedon criteriathatinclude: The secondphaseofassessingsuppliersisthecreation ofthesustainabilityriskmap. u On-site suppliersustainabilityaudits-intheformofbothannouncedandsemi-announced/ prioritize supplieraudits. The risk map score indicates a supplier’s overall sustainability risk level and is used to • • • • • nannounced - represent the third phase for confirming supplier compliance with our Indicators FCA spendingonthesupplier location ofsupplier’s mainproduction activities(where availableorknown). supplier’s exposure tocommodityriskbasedonprocess orlaborintensity supplier’s sustainabilityassessmentscore supplier’s financialrisk countries withapoorhumanrightsr country riskassociatedwiththesupplier’s homecountry ovement inwhichtheycanclosegaps,becomingstronger andmore sustainable. on watch status or, in particularly severe cases, the relationship with the supplier ecord, according totheWorldwide Governance , withparticularemphasison
Increased supplier engagementisaprimary focusfortheValue Optimization team. manufacturing technologies and leanercomponentdesignsare implemented. to collaborate on cost saving ideas. Economic benefits are shared when innovative Product Enhancement Reward) encourages a proactive approach with suppliers p Another supplierengagement program focuses onfosteringinnovationtoimprove 12 Technology OpenHouseeventswere held. or services tospecifically-defined FCA audiencesthey might not otherwise reach. In 2020, House eventswhichallowT Supporting our efforts to engage sub-tier suppliers, FCA also hosts Technology Open developments andconceptsforthefuture. quality, andallowsupplierstoshare withFCApersonnelsomeoftheir latesttechnological encourage collaborationwith In 2020,FCAandoursuppliersparticipatedin37Technology Dayevents.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 communicationwithsuppliersisbasedonthetrustandtransparency outlinedinour ENGAGING ANDTRAININGSUPPLIERS roducts, processes and content. The Value Optimization SUPER Program (SUpplier SUPPLIER AWARDS sustainability efforts in environmental, social and governance categories. sustainability efforts inenvironmental,categories. socialandgovernance the award bydemonstratingexcellence,innovationandthescopeoftheir Suppliers meetingeligibilityr 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 ier 2 or Tier 3supplierstopresent commodities, technologies ier 2orTier suppliers on innovative solutions for features, efficiencies and equirements may nominate their companies for equirements maynominate theircompaniesfor
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 SUPPORT RESPECT AND ADVOCACY EMPATHY INTEGRITY TRUSTWORTHY TRUST ANDBE
& DECISIVELY ACT QUICKLY AND S AND INFORMATION SHARE EXPECTATIONS TRANSPARENCY MUTUAL ENSE OFURGENCY
w 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 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 ith other automakers and is designed to help protect the rights and dignity of the workers EFFECTIVEL WORK TOGETHER PROACTIVE COLLABORATION SHARE BESTPRACTICES IMPROVEMENT CONTINUOUS EFFICIENTLY Y AND RELA FOSTER SUSTAINABLE MAKE DECISIONSTHAT LONG-TERM MINDSET ACCEPT RESPONSIBILITY T AC PERSONAL AKE OWNERSHIPAND COUNTABILITY TIONSHIPS
View data 113 2020 SUSTAINABILITY REPORT Production and Responsible Sourcing Responsible Sourcing than €5.97billionwithT 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 USreceived thefollowingawards forourfocusondiversityduring2020: and drivegrowth forsuppliers thatare appropriately certifiedwithapproved councils. the year. These awards honor corporations for diversity programs that reduce barriers Recognition ofthediversityefforts the Companyhasmadeare presented throughout BalancedScorecardExternal 2level. includesametricfordiversitysourcing attheTier FCA’s commitmenttodiversityandinclusionalsoextends to oursupplychain. AND INCLUSION SUPPORTING SUPPLIERDIVERSITY Top 100Company byWomen’s EnterpriseUSA Veteran-Owned BusinessRoundtable AdvocateoftheYear Minority BusinessNewsSupplier DiversityAll-Stars Council Corporation oftheYear IIProgram bytheNationalMinoritySupplier Development -Tier ier 1 and Tier 2diversesuppliersin2020.TheFCAUSsuppliers’ ier 1andTier DIVERSE SUPPLIERS SPENT WITH BILLION €5.9+
which cr FCA supports inclusion across our supply base also through the annual Matchmaker event, status ofeachsupplierismonitored monthlyandreviewed quarterlywiththem. them withthetoolsandsupporttoachievetheirdiversitytargets.Thespend V In addition, we support veteran-business ownership through membership with the National • • • • • • • the wayswesupportorganizations,whichinclude: support, sponsorships,membershipandBoard andcommitteeparticipationare someof to decisionmakerswithinourprocurement organization.Training, mentorship,scholarship I suppliers and owned, women-owned and veteran-owned businesses access to ourTier pr Our long-lastingleadershipinhelpingdiversesuppliersincludestheFCAHighFocus Council. eteran-Owned Business Association and the National Veteran Business Development WECONNECT International Women’s BusinessEnterpriseNationalCouncil Canadian AboriginalandMinoritySupplierCouncil DisabilityIN National MinoritySupplierDevelopmentCouncil National GayandLesbianChamberofCommerce Billion DollarRoundtable ogram whichworkswithsuppliersgreater potentialfordiversespendandequips eates opportunities fordiverse suppliers.Matchmakerevents provide minority- 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 Rest of world of Rest Latin America North America Hourly North America Asia Other Activities Maserati Mass-market vehicles Latin America Europe Total Total Total Total FCA worldwide Workforce GenderDistributionbyGeographicArea FCA worldwide Workforce GenderDistributionbyCategory * Other Activities: Comau, Teksid, and companies operating in and services holding. FCA worldwide Workforce Gender DistributionbyOperatingSegment FCA worldwide (no.) Workforce byGeographicArea andCategory Employees Rest of world of Rest Salaried Asia Professional Manager Facts &Figures * 189,512 32,208 58,375 58,375 95,108 95,108 3,590 3,590 Workforce Distribution Total 231 Total (no.) Total Total (no.) Total (no.) Total 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 1,628 134,371 231 72,773 72,773 36,162 36,162 25,188 25,188 Hourly 204 44 2020 Salaried 22,691 2020 2020 2020 8,857 8,023 8,023 3,792 3,792 1,957 1,957 Men (%) 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 1,368 1,368 125 Women (%) Women Women (%) Women (%) Women Manager 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 Total (no.) Total (no.) Total 165,068 135,077 191,752 191,752 191,752 23,896 60,636 30,689 95,621 25,001 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 (%) 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 (%) 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 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 1,940 9,276 Men (%) 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 11,940 14,104 2,965 1,328 139 Women (%) Women Women (%) Women Women (%) Women Manager 2,095 1,110 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 31 years to 40 years to 30 Up 21 years to 30 11 years to 20 6 to 10 years to 5years Up * 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. Total 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 Total Elementary/middle school High school University degree Total Not tracked Not years 50 Over 41 years to 50 31 years to 40 years to 30 Up Not tracked Not years 50 Over 41 years to 50 Over 30 years 30 Over Not tracked Not Not tracked Not * * * * Total (no.) Total Total (no.) Total Total (no.) Total 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 - 56,299 56,299 35,857 49,855 49,855 47,488 47,488 Total 13 2020 2020 2020 Men (%) 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 (%) Women 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 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 Men (%) Men Men (%) Men Men (%) Men 6,029 6,029 6,529 6,529 4,812 4,812 5,317 5,317 79.6 86.5 79.6 90.3 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 Women (%) Women Women (%) Women 20.4 20.4 26.2 20.9 23.6 23.3 22.8 20.4 22.8 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 (%) Men Men (%) Men Men (%) 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 1,096 1,096 774 175 1 - Women (%) Women Women (%) Women Women (%) Women 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 16.1 18.1 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 FCA worldwide (no.) Workforce byContractandEmploymentType FCA worldwide (%) Workforce GenderDistributionbyContractandEmploymentType Total Men 20.7 9.9 - - - 189,512 Part-time 32,208 58,375 58,375 95,108 95,108 3,590 3,590 Total 80.1 Men 231 Wo 79.3 men 90.1 Unlimited-term Unlimited-term - - - 177,389 Fu 32,065 32,065 84,274 84,274 57,255 57,255 76.2 Men 73.6 81.3 ll-time 77.3 87.8 3,564 3,564 231 F Wo ull-time Unlimited-term 19.9 men 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 3,157 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 7,619 7,619 Women 11 33.3 2 14.0 51.9 - - 3.2 - 118 2020 SUSTAINABILITY REPORT Supplemental Information Facts & Figures France China Serbia Rest of world of Rest Asia Latin America North America Europe Germany Argentina Poland Canada Mexico Brazil Italy U.S. Total (no.) Other countries Spain FCA worldwide (%) Managers ofLocalNationalitybyGeographicArea FCA worldwide (%) Workforce DistributionbyCountry 2020 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 6.3 0.2 0.5 0.5 9.8 2.2 1.2 1.3 1.1 Italian American Total FCA worldwide Nationality ofManagers Other German Polish French Chinese Mexican Canadian Brazilian 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 FCA in North America North in FCA Workforce belongingtoNationalityMinorityGroup Total ( over total workforce (%) workforce total over of which women (%) women which of (%) men which of no.) * Managers (no.) 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 wage 100 120 2020 SUSTAINABILITY REPORT Supplemental Information Facts & Figures Employees that took parental leave in 2019 in leave parental took that Employees Employees who left the Group after parental leave parental after Group the left who Employees Employees * Retention leave aparental on still Employees 31, 2019 December of as Employees that took leave parental during 2019 FCA Italy Retention AfterParental Leave byGender leave aparental on still Employees 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 (no.) 2020 in workforce the among leave parental took that Employees - FCA worldwide toWorkReturn AfterParental LeavebyGender 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, 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 Return toworkrateatDecember31,2020 as ofDecember31,2020 Returned to work after parental leave ended and still employed still and ended leave parental after to work Returned Employees who left the Group after parental 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 rateatDecember 31,20 thatookparentalleaveduring20 and are still employed (%) employed still are * and
* * 1,340 1,000 1,328 1,328 1,503 1,503 1,100 1,100 1,890 1,890 96% 98% 97% Men Men Men Men 366 366 323 323 81.2 113 113 62 62 37 37 17 17 Women Women Women Women 871 98% 95% 95% 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 1,560 1,560 2,021 2,021 2,395 2,395 1,574 1,574 Total ,2 Total Total 98% 95% 96% 623 623 758 758 273 273 101 101 11 63 63 28 28 121 2020 SUSTAINABILITY REPORT Supplemental Information Facts & Figures FCA worldwide(no.) Turnover byCategory Employees Turnover byAgeGroup Employees FCA worldwide(no.) FCA worldwide(no.) Turnover byGender Employees New 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 FCA w Hourly Turnover byGeographicArea ∆ scope of operations, transfers and category change category and transfers operations, of ∆ scope Departures 31, 2019 December at Employees Employees FCA worldwide (no.) Turnover byGeographicArea Employees Employees at December 31, 2019 December at Employees Employees at December 31, 2019 December at Employees New Hires New ∆ scope of operations, transfers and category change category and transfers operations, of ∆ scope New Hires New 31, 2019 December at Employees Departures Employees ∆ scope of operations and transfers and operations of ∆ scope Departures 31, 2019 December at Employees New Hires New ( orldwide atDecember31,20 atDecember31,20 atDecember31,20 atDecember31,20 atDecember31,20 20 no.) 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 35,856 135,077 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, 152,620 (16,792) Europe 60,636 (3,080) 14,614 14,614 375 Men 822 195 31 Years to 40 (3) Salaried 22,691 47,494 36, Europe 23,896 46,810 (5,834) 37,609 (1,659) (2,910) 5,846 5,846 2,256 2,256 (109) (551) 1 321 672 62 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 30,404 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 2,090 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 (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 Total Men 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 1,811,364 848,402 234,329 144,348 104,331 Hours 4.0% 34.1 T raining Hours 2018 2018 2018 Average Average 176,003 176,003 991,576 138,134 5.7 6.0 5.6 3.4% 40.7 *
Rest of world of Rest Asia Latin America Europe North America Hours of training Total FCA worldwide Training byCategory FCA worldwide Training onAnti-Corruption Manager Professional & Salaried Hourly Employees involved Employees FCA worldwide and selected JVs (no.) JVs selected and worldwide FCA Envir * 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 onmental Training 2020 Employees involved (no.) involved Employees 89,904 60,457 Workforce (%) Workforce 13,954 13,953 13,953 43.5 54.2 2019 2.3 1 2020 2020 - - - 136,976 66,052 T raining 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 FCA worldwide (no.) Injuries byRegion/Company 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 Total North America EMEA Maserati APAC LATAM Plastic Components Comau Teksid Employees Total North America EMEA Maserati LATAM Plastic Components Comau Teksid APAC * by Region/Company 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 Plastic Components Comau Teksid FCA worldwide (injuries per 1,000,000 hours) 1,000,000 per (injuries worldwide FCA Frequency RatebyRegion/Company FCA worldwide (days of absence due to injuries per 1,000 hours 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 Maserati APAC LATAM North America EMEA * 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 Maserati APAC EMEA Total Total Plastic Components Comau Teksid LATAM North America 2020 2020 * 0.02 0.57 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 0.04 0.03 0.03 0.56 0.04 0.70 0.40 0.97 1.80 1.71 0.10 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 * 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 Spending on Occupational Health and Safety and Health Occupational on Spending Total APAC EMEA Maserati Comau Teksid Plastic Components * 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 - - FCA worldwide (occupational illness cases per 1,000,000 hours 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 million. 290 approximately were rate frequency to calculate used were that hours worked * 2020 Total APAC LATAM North America EMEA Total Plastic Components Comau Teksid Maserati APAC LATAM North America EMEA Plastic Components Comau Teksid Maserati * byRegion/Company 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 3 1 1 4 2 - - - - - 125 2020 SUSTAINABILITY REPORT Supplemental Information Facts & Figures FCA worldwide (€ million) worldwide FCA Direct EconomicValue andValue Addedgenerated in 2020totaled€11,265million(about13%ofrevenues). The valueaddedthrough theGroup activitiesanddistributed toourvariousstakeholders (%) type by agreements FCA Main IssuesCovered UnderCollectiveBargainingAgreements * Occupational Health and Safety includes work-related stress. Other Equal opportunities Training Value Other expense Depreciation and amortization materials of Cost Direct Other income release of provisions, other income Government grants (current and deferred/capitalized), Income of companies financial services Consolidated 2020 revenues Employees Employees Occupational Health and Safety Restructuring Wage issue Operating issue added economicvaluegenerated Direct EconomicValueandAddedGenerated Freedom ofAssociationandCollectiveBargaining * 2020 2020 (68,031) 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 PUBLIC INSTITUTIONS GOVERNMENT AND 286 PROVIDERS FINANCE 689 FCA (€ million) Breakdown ofValue Added
38 COMMUNITIES EMPLOYEES 10,252 126 2020 SUSTAINABILITY REPORT Supplemental Information Facts & Figures Project name BARBARA ECOXY InterACT eCharge4Drivers Carmen 5G L3Pilot Main CollaborativeEuropean Projects FCA worldwide (€ million) worldwide FCA Public FundingforResearch andDevelopment Loans Grants Product * European Investment Bank. of which EIB which of of which subsidized loans * loans Project focus 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 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 Platforms European Technology organizations Research and development Public-private partnerships Involvement inEuropean Research Organizations 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 FCA worldwide (no.) Patents Materials BoughtforVehicle Production Patents pending at December 31, 2020 December at pending Patents 31, 2020 December at granted Total patents Total Other Fluids Polymers Elastomers Other metals Cast iron Light alloys Steel 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 ofmaterialsbought(metrictons) 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 Personnel (agents and supervisors) Hours of training personnel (no.) Complaints: % cases settled within 5 business days call asingle in settled cases Information: % of calls answered within 20 seconds 20 within answered calls % of Satisfaction index Complaints (scale 1-10) Customers 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. 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 Other energy sources Other fuels Natural gas Electricity Total - 2020 energyconsumption Energy Certification andEnvironmentalExpenditures - - - 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 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 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 1,259,072 488,338 515,459 515,620 95 92 79 402 307 121 Vehicles 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 Other (HS and LS fuel oil) fuel LS and (HS Other Total direct energy consumption LPG Renewable sources Diesel Coal Diesel Other (HS and LS fuel oil) fuel LS and (HS Other Natural gas Natural gas - - Coal LPG Renewable sources Other (HS and LS fuel oil) fuel LS and (HS Other LPG Diesel Coal Natural gas Total - 2020 directenergyconsumption 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 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 1,025,427 Mass-Market VehiclesMass-Market Mass-Market VehiclesMass-Market 1,260,265 1,438,796 1,023,498 1,435,828 1,259,072 1,809 2,567 886 402 307 121 ------Vehicles 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 T 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 otal energy thermal Total otherenergysources Other renewablesources Total thermalenergy Nonrenewable thermalenergy Total electricity Renewable electricity T Other nonrenewablesources Renewable thermalenergy 2020 Nonrenewable otal indirectenergyconsumption e lectricity
- - - 1 15,161,792 2,931,824 1 9,102,647 12,692,882 24,132,384 22,005,410 16,288,928 ,009,031 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 3 979,473 29,558 ,127,165 39,670 7087 37,0 FCA FCA FCA - - - Assembly and and Assembly Assembly and and Assembly Assembly and 11 12,323,994 8,458,787 10,339,489 2,103,980 13,757,062 ,283,022 2,559,731 9,502,818 9,258,689 1,080,800 2 8,443,524 1,059,294 2,559,731 2,103,980 , 57,651 2,0 Stamping Stamping Stamping 720,256 7,608,110 ,057,651 763,525 857,842 850,677 720,256 763,525 5, 42 857,8 ------Transmissions Transmissions Transmissions Engines and Engines and Engines and Mass-Market 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 4,195,912 320,569 167,691 348,534 343,509 348,534 343,509 296,622 320,569 171,947 285,910 323,712 201,116 167,691 171,947 201,116 ------V ehicles 431,207 431,207 548,860 548,860 503,978 503,978 548,860 503,978 431,207 Casting Casting Casting ------
558,382 707,803 638,604 848,492 891,989 459,938 569,901 112,833 194,948 76,614 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 ------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 P Plastic Plastic 24,19 4,550 4, lastic 550 3 ------132 2020 SUSTAINABILITY REPORT Supplemental Information Facts & Figures * * FCA reports direct CO direct reports * FCA 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 Comau Plastic Components 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 FCA w CO Production - Direct emissions Indirect emissions Direct emissions - 2018 - 2019 Indirect emissions Total CO Total Total CO Total No Direct emissions - Total 2020 Indirect emissions t a 2 Emissions vailable. orldwide ( CO 2 2 emissions emissions 2 emissions tons) ** ** * 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% 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, 2,264,041 1,338,495 1,444,096 2,107,818 Stamping Stamping Stamping 1,216,151 645,443 769,323 819,945 595 2020 vs 2010 up to-42% Result -32% -42% -22% -21% 19% 13% -8% -3% Transmissions Transmissions Transmissions 2% Engines and Engines and Engines and 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 Vehicles 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 Average FCA Mass-market vehicle assembly and stamping Comau Teksid (aluminum) Mass-market vehicle others FCA Mass-market vehicle casting 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 Maserati 2 CO EmissionsperUnitofProduction 2 e missions 2 Emissions 2020 vs 2010 up to-40% 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% 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) Indirect emissions Direct emissions Total 2 CO Emissionsfrom Non-manufacturingActivities - 2 e missions 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 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 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 Methyl bromide Halons Methyl bromide Total Other CFCs fully halogenated HCFCs HCFCs CFCs CFCs Other CFCs fully halogenated Total - 2018 - 2019 Other CFCs fully halogenated Methyl bromide HCFCs CFCs Halons Total - 2020 Other ManufacturingEmissionsandImpacts - - - 3.3 FCA 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 Mass-Market VehiclesMass-Market VehiclesMass-Market 0.5 0.4 0.5 0.4 ------Vehicles 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 Mass-market vehicle engines and transmissions Mass-market vehicle assembly and stamping - * Estimated emissions based on direct fuel consumption. Total Mass-market vehicle casting Mass-market vehicle engines and transmissions Mass-market vehicle assembly and stamping - FCA averageVOC emissions - NOxemissions dustemissions 2 ) * * 2020 2020 9 692 134 5 7 33 33 59 21 10 16 13 4 2 1 2 9 3 - - - 2020 vs 2010 up to-68% 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% 69 80 36 43 33 20 19 16 13 1 3 4 - - - Result -63% -63% -48% -95% -29% n.a. n.a. n.a. Mass-market vehicle engines and transmissions Mass-market vehicle assembly and stamping - FCA worldwide (tons) Emissions ofSulfurOxides(SOx) Total Mass-market vehicle assembly and stamping - FCA worldwide (tons) Emissions ofVolatile OrganicCompounds(VOC) * Estimated emissions based on direct fuel consumption. Total 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 SOxemissions VOCemissions 2020 23.1 20.6 23.1 74.1 2.7 7.3 - - - 2019 * 2 23.2 35.5 20.7 13.4 21.5 3 .1 - - - 2020 2020 9 9,367 , 2018 456 86 86 8 81 3 - 9 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 ** 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). copper and (Cd) cadmium (Pb), lead (Zn), zinc (Ni), nickel as such process, manufacturing the in present when wastewater its in metals heavy certain c analyzes and measures regularly FCA requirements, legal to any addition In ** freshwater. as considered is water discharged and withdrawn * FCA Production Other Discharge Surface water Surface Surface water Surface Municipal water supply Other Withdrawal Other destinations Other Public sewer systems Total water consumption discharge water Total Discharge Municipal water supply Withdrawal Total water discharge water Total destinations Other Public sewer systems Surface water Surface Groundwater T - 2018 Surface water Surface To Groundwater - 2019 omprehensive view of FCA’s overall impact on water quality to maintain levels well below legal limits. No incident of non-compliance was recorded in 2020. in recorded was non-compliance of incident No limits. legal below well levels to maintain quality water on impact FCA’s of overall view omprehensive o Other destinations Other Public sewer systems Total waterconsumption Total waterdischarge Surface water Surface Total - 2020 Groundwater Withdrawal Discharge Municipal water supply Other Surface water Surface tal water withdrawal t al water withdrawal waterwithdrawal * and Discharge
Water 3 ) ** ------10,544 1 13,277 18,816 13,520 5,207 11,705 5,751 5,540 21,651 10,358 3,958 4,889 9,292 3,737 2,722 15,517 17,167 7,810 FC 2,233 4,576 5,511 300 405 FCA FCA 450 27 173 12 A 3 8 ------Assembly and and Assembly Assembly and and Assembly Assembly and S Stamping Stamping t 11,211 amping 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 Mass-Market Mass-Market VehiclesMass-Market Mass-Market VehiclesMass-Market 1,4 2,152 2,559 1,552 1,007 2,658 1,836 2,037 3,127 4,191 1,501 2,146 and 679 668 994 653 466 799 552 314 410 73 3 6 6 3 2 ------Vehicles Casting Casting Casting 235 229 263 301 267 195 219 170 65 82 73 6 5 1 3 1 4 9 2 7 ------Others Others Others 328 190 518 206 288 328 468 216 252 136 144 219 131 68 69 82 59 61 75 51 11 1 ------Maserati Maserati Maserati 133 167 234 243 234 105 101 102 133 131 111 34 63 65 42 27 74 4 ------1,327 Teksid Teksid Teksid 2,228 1,495 1,881 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 43 62 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 33 54 92 29 77 67 25 25 5 3 ------137 2020 SUSTAINABILITY REPORT Supplemental Information Facts & Figures FCA Teksid (cast iron) Mass-market vehicle engines and transmissions 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 Water WithdrawalandDischargeinWater Stressed Areas Total waterconsumption Total waterdischarge water Surface Discharge Total water Surface Municipal water supply Groundwater Withdrawal Other destinations Other Public sewer systems Other Mass-market vehicle casting waterwithdrawal 3 /unit of production) 3 ) - - 2020 vs 2010 up to-77% 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% 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 Plant * 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 Component Plant Teksid Carmagnola (Italy) and Activity Recycling Index (%) Index Recycling Total water requirement Total water requirement - 2019 Recycling Index (%) Index Recycling 2020 - 2018 Recycling Total - of which covered by recycling by covered which of of which water withdrawal water which of of which water withdrawal water which of of which covered by recycling by covered which of of which water withdrawal water which of of which covered by recycling by covered which of Location waterrequirement Index(%) 3 ) Gora del Naviglio river 3 (Name andSize - - - .5 million m Water S in m 1,766,034 2,340,351 2,318,700 2,318,700 2,220,110 3 2,201,293 1,750,284 /Year) ource 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 Us Mass-Market Engines and Engines and Engines and e 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 Vehicles Water Body 109,308 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 WaterBody 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 Other Other Activities Other Activities no Activities Comau Comau Comau 70 70 70 70 48 62 48 62 ------Di Components Components Components s charges* 20,548 20,548 20,350 20,350 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 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 Total waste generated Total waste generated Waste to treatment 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 Hazardous waste recovered Nonhazardous waste recovered Waste totreatment Nonhazardous Waste Hazardous waste to landfill Nonhazardous wastetolandfill 2020 Total - Waste Hazardous waste to treatment w tolandfill recovered aste generated wastetoreatment
* Waste - - - 493,630 138,885 635,875 138,492 478,060 478,060 806,396 594,880 594,880 3,360 205,372 205,372 204,887 575,696 575,696 238,854 15,569 15,569 626,736 75 3 07,50 6 875,170 1,068 237,742 2,292 2,292 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 14,170 2,154 16,110 3,981 2,723 1,900 1, 2,081 1,429 8 233 561 725 158 874 48 Transmissions Transmissions Transmissions Engines and Engines and Engines and 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 Vehicles Casting Casting Casting 245 106 139 430 293 559 430 184 109 106 109 184 129 139 129 ------
30,685 31,408 40,573 39,645 41,205 Others Others Others 29,716 6,622 5,941 7,517 530 969 530 725 928 681 102 102 725 651 651 170 72 94 76 71 - - - - 1
- - - Maserati Maserati Maserati 1,555 1,56 3,339 3,062 1,238 1,250 1,316 2,741 990 239 276 322 248 197 10 79 12 5 7 7 3 5 ------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 2,269 , 108 339 503 433 321 104 421 107 615 511 172 119 53 1 Other A Other Activities Other Activities ctivities Comau Comau Comau 1,121 1,118 2,006 1,844 2,018 1,851 1,043 1,827 1,720 179 124 75 12 11 3 1 3 7 6 1 ------Components Components Components 10,395 10,408 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 FCA Comau Plastic Components Plastic Components Maserati Teksid (aluminum) Comau FCA Mass-market vehicle others Mass-market vehicle casting Mass-market vehicle engines and transmissions Mass-market vehicle assembly and stamping Teksid (cast iron) * Not available. FCA worldwide * Not available. - FCA worldwide Waste GeneratedperUnitofProduction - Mass-market vehicle assembly and stamping Teksid (aluminum) Maserati Mass-market vehicle casting Mass-market vehicle engines and transmissions Teksid (cast iron) Mass-market vehicle others Hazardous Waste GeneratedperUnitofProduction 2020 vs 2010 2020 vs 2010 up to-34% up to-75% 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% up to-99% 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 Mass-market vehicle engines and transmissions FCA Plastic Components Teksid Mass-market vehicle assembly and stamping - FCA worldwide (waste recovered out of waste generated) waste of out recovered (waste worldwide FCA Recovery ofWaste FCA worldwide (waste sent to landfill out of waste generated) waste of out to landfill sent (waste worldwide FCA FCA Plastic Components Mass-market vehicle others Mass-market vehicle casting Mass-market vehicle assembly and stamping - Waste toLandfill Comau Maserati Mass-market vehicle others Mass-market vehicle casting Mass-market vehicle engines and transmissions Comau Teksid Maserati 2020 Target 2020 Target up to98% up to0% 90% 96% 98% 95% 95% 95% 45% 70% 91% 0% 0% 2% 2% 3% 1% 1% 2020 2020 up to99.9% up to0% 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 Assembly and Stamping plant Cordoba (Argentina) Vehicle Component plant Jaboatão dos Guararapes (Brazil) Assembly and Stamping plant (Brazil) Goiana Engine and Transmission plant Campo Largo (Brazil) Pl ** 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 Transmission plant Engine (Italy) Verrone and ant Location Activity Biodiversity Conservation 3.9 0.1 3.0 1.2 1.8 (km Surface 2 ) 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 41 Unrated 41 listed: -41 species 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 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 38 Least Concern Least 38 2 Near Threatened; 2 Vulnerable; 2 Endangered; listed: species -44 Flora Species Present Conservation Species/National IUCN RedList List 3 0 56 0 0 (thousand €) Investment Project: 2020 Activities carried out under the Biodiversity (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 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 pollination (year 2020). to increase bees native of breeding and Capture apiary forapiary indirect air quality monitoring. and recovery wastewater for system purification Biodiversity conservation activities and use of phyto- • Action Taken • • • • 60 primaryandsecondaryschools. trainingandawarenessVirtual raisingtomore than Start-up offillingthelagoons supplied from ourecological island the gr In theRecreational Nature Reserve,extensionof green sitesoftheplant) tr Forestation withnativespecies-more than350 Greenhouse Construction ees (inRecreational Natural Reserveandother eenhouse toanursery, withrecycled material No Yes Yes Yes Monitoring Independent Yes (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 Area Relative Protected (less than 5km) than (less to plant Adjacent Plant ** 143 2020 SUSTAINABILITY REPORT Supplemental Information Facts & Figures Electricity Other LPG Municipal water supply Surface water Surface Total wastegenerated(tons) CO Water withdrawal(m 2020 Total Diesel Natural gas Groundwater FCA worldwide Environmental ImpactsofPDCsthathaveImplementedWorld ClassLogistics Total Energy consumption(GJ) of which renewables (%) renewables which of of which waste recycled (%) recycled waste which of 2 emissions(tons) waterwithdrawal energyconsumption 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 7,777 92,293 92,293 27,619 27,619 PDCs 606 100% 99% 99% 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 SUPPLIERS LOCAL 88% EMEA 40% APAC 22% OUTSIDE THEREGION SUPPLIERS LOCATED 12% LATAM LATAM 2% 36% AMERICA NORTH 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 Supplier SustainabilitySelf-AssessmentResults Average Score byModule 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 “Company” and“FCA”refer toFiatChryslerAutomobilesN. In thisReport, unless otherwise specified,theterms“we”,“our”,“us”,the“Group”,the DEFINITIONS This appendixprovidesamethodologyguide. The (4) (3) (2) (1) or services. References to"customer"asusedinthisReportrefer totheenduserofourproducts businesses thatare notoperatingsegmentsunderIFRS8–Operating Segments. business andourcastiron andaluminumcomponentsbusiness,aswelltheactivities Other activitiesincludetheresults ofourindustrialautomationsystemsdesignandproduction Maserati brand. Hills(U.S.),Betim(Brazil),Shanghai(China)andinModena(Italy)forthe (Italy), Auburn no otherchangeswere madeto thesegment.Regionalheadquartersare locatedin the UnitedStates-Mexico-CanadaAgreement (USMCA).Otherthanthechangeofname, NAFTA segmentwasrenamed North America inresponse totheexpectedratificationof Maserati global luxury brandoperating segment. During 2019, our previously reported LATAM (SouthandCentralAmerica)APACc ountries) (AsiaandPacifica t he nd Middle EastandAfrica),NorthAmerica(U.S.,Canada,Mexico and CaribbeanIslands), include fourregional mass-marketvehicleoperatingsegments:EMEA(Europe, Russia, for makingstrategicdecisionsandallocating resources andassessingperformance. They refer tothesegmentsofGroup thatare regularly reviewed bytheChiefExecutive 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 itspredecessor prior tothecompletion of themerger Fiat S.p.A.with and intoFiat this spheres Elements oftherequirementsfromTaskForceonClimate-RelatedFinancialDisclosures(TCFD)arealsoembedded withinthis Report. social and environmental economic, the in commitments and edition results activities, FCA of picture comprehensive a stakeholders provide 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 Sustainability Report, now in its in now Report, Sustainability marks the adoption, for the first time, of additional frameworks such as the Sustainability Accounting Standards Board (SASB) and the ISO26000. the and (SASB) Board Standards Accounting Sustainability the as such frameworks additional of time, first the for adoption, the marks 17 th
edition, is a voluntary document issued by the Group according to GRI Sustainability Reporting Standards. Reporting Sustainability GRI to according Group the by issued document voluntary a is edition, V ., togetherwithitssubsidiaries Turin individuals orentities responsible foreach aspectworldwide. for certainindicators,usingelectronic databasesorfilesp opulatedd irectly bthe y 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 • • DA because oftheirsignificantenvironmental andsocialimpacts.Inparticular: In somecases,unconsolidatedjointventures were includedinthescopeofreporting entities orproduction activitiesthatare notyetfullyoperational. immateriality inrelation totheGroup asawhole,may bethecasefornewly-acquired The exclusionofanygeographicalarea, Group compan falling withinthescopeofconsolidationatDecember31,2020. The informationanddataincludedinthisReportrelate toFCAlegalentitiesworldwide and thecombinedcompanywasrenamed StellantisN. Automobiles N.V. (“FCA”or“FCAN.V.”) withFCAasthesurvivingcompanyinmerger, On January16,2021,PeugeotS.A.(“PSA”)mergedwithandintoFiatChrysler SCOPE ANDBOUNDARY of reporting isattributableto theinabilityto obtaindataofsatisfactoryquality, ortoits (including officesandwarehouses), plants ofunconsolidatedjointventur plants Data on manufacturing environmental and energy performance refers to 95 of the 109 a Data on occupational health and safety relates to 95 of the 109 plants CO Gr Turkey andthree inChina pproximately 98% of plant workers), TA, REST oup employees),andtofourplantsofunconsolidatedjointventures, includingonein 2 emissions datahasbeenprovided inaseparatetablefornon-manufacturingfacilities (3) respectively (coveringnearly 100%oftheGroup’s industrial revenues), andtofour ATEMENT ANDROUNDING (4) es, includingoneinTurkey andthree inChina.Additional coveringnearly100%ofnon-manufacturingscope. (2) to office facilities (in total covering nearly 100% of V .. y, orspecificsitefrom thescope (1) (covering To 148 2020 SUSTAINABILITY REPORT Supplemental Information Definitions, Methodology and Scope • wer Compared withdatareported inthe2019SustainabilityReport,followingrestatements targets because2010wasthefirstyearFCAUSincludedin scope oftheGr 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,dir 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)financialmeasur We monitorouroperationsthrough theuseofseveralnon-generallyacceptedaccounting respectively. limited assuranceengagement,pleaserefer to2019,2018and2017SustainabilityReports information previously publishedandoverwhichtheindependentauditorcarriedouta past yearswasr 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 both formarket-basedandlocation-based approach. assembly andstamping andmass-marketvehicle enginesandtransmissions differs market vehicleothersnormalizedenergy perhoursofproduction havealsochanged. (Spain) plant.Therefore, totalenergyconsumption,share ofrenewable electricity andmass- others dif Data related to2019manufacturingindirect energyconsumptioninmass-marketvehicle Data related to2019manufacturingindirect CO e made: fers duetotheinclusionofdata missing forrenewable electricity intheUrduliz estated toensure comparabilityintermsofscope.Forhistoricaldataand ectly correlated toproduction volumesandreporting boundaries, es: Netcash/(debt),industrial 2 emissionsinmass-marketvehicle oup. compliance withthefollowingprinciples: The documentis: REPORTING PROCESS update orrevisepubliclyforward-lookingstatementsotherinformation. speak onlyasofthedatethisdocumentandCompanydisclaims anyobligationto Report. Anyforward-looking statements orotherinformation contained inthisdocument its bestefforts toensure theaccuracyofsustainabilityinformationcontainedinthis audit, analysis and approval byanumber of individualsandentities.FCA continues touse The qualityoftheinformationcontainedinSustainabilityReportissupportedby QUALITY OFINFORMATION performance. • • • • • • • • • • • • • Pr None ofthea • 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 independent auditfirm(i.e. subject toalimitedassuranceengagement byanexternal approved bytheSustainabilityDisclosure Committee experts prepared bytheFCASustainabilityTeam thatcoordinates andengagessubjectmatter timeliness reliability comparability clarity balance accuracy: provision ofadequatelevelsdetail completeness materiality sustainability context stakeholder inclusiveness and stampingdif Data related to2019manufacturingNOxemissionsinmass-marketvehicleassembly eparation of the SustainabilityReportispartofanannualreporting process subject to within Group operating segments and relevant functions across various countries & Touche S.p.A.) in accordance with the criteriaestablished in theInternational bove restatements causedmaterial variationto Gr fers duetoincorrect datareported. oup ov erall dataand 149 2020 SUSTAINABILITY REPORT Supplemental Information Reporting Standards and Frameworks indicators. Eachindicatorr The following table lists content within the document that relates to specific GRI Standards This Reporthasbeenprepared inaccordance withtheGRIStandards: Comprehensive option. GRI Standards ContentIndex or the2020StellantisN.V. (formerlyFiatChryslerAutomobilesN.V.) AnnualReport. Organizational Profile 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 GRI General standard disclosures Reporting Standards and Frameworks Standard eferences theappropriate pagesinthe2020SustainabilityReport Title 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 AR Key: SR =SustainabilityReportatDecember31,2020 =AnnualReportatDecember31,20 Publications SR SR SR SR AR SR SR SR AR SR AR AR SR AR SR AR SR SR AR Page number 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 Omissions andcomments ------150 2020 SUSTAINABILITY REPORT Supplemental Information Reporting Standards and Frameworks Strategy GR 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 I Standard Title 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 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
Page number 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
Omissions andcomments ------151 2020 SUSTAINABILITY REPORT Supplemental Information Reporting Standards and Frameworks Governance GR 102-38 102-37 102-36 102-35 102-34 102-33 102-32 102-39 I Standard Title 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 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 Page number 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, 171-172 Omissions andcomments ------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. I reportable. not is data of set full The I reportable. not is data of set full The 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. n some countries this information is is information this countries n some n some countries this information is is information this countries n some
152 2020 SUSTAINABILITY REPORT Supplemental Information Reporting Standards and Frameworks Stakeholder Engagement GR 102-56 102-55 102-54 102-53 102-52 102-51 102-50 102-49 102-48 102-46 102-45 Reporting Practice 102-44 102-43 102-42 102-41 102-40 102-47 I Standard Title 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 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 Page number 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 13 Omissions andcomments ------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 Report, within relevant chapters. this in concerns these with deal we how We explain concerns. general or perceptions their identify us to help o 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 f sustainability the to identify order In t raised concerns and topics Key ocus areas of importance to FCA to FCA importance of areas ocus hrough stakeholder engagement ur stakeholders on specific topics topics specific on stakeholders ur 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 Standard GRI-204: ProcurementPractices(2016) 205-3 TOPIC-SPECIFIC DISCLOSURES Title 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 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 Page number 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, 40 ------Omissions andcomments communicated externally. be cannot information d.: this 205-2 for constraint Confidentiality communicated externally. be cannot information b. c.:a. this 205-3 for constraint Confidentiality 154 2020 SUSTAINABILITY REPORT Supplemental Information Reporting Standards and Frameworks GRI-301: Materials(2016) GR 302-4 302-2 302-1 103-3 103-2 103-1 GRI-302: Energy(2016) 301-1 302-3 302-5 301-2 301-3 I Standard Title 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 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 - Page number 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 99, 133 99, 179 79-81 85 - Omissions andcomments - - 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, CO on reported FCA standards. and Product based on country regulations materials used. of weight average the 0.3% of for t several b: has FCA 302-4 Indicator c energy average on reports FCA a Renewable materials used in type- E to limited is provided Information applications. aluminum and plastic circular economy without packaging. customer end to the delivered are for reclaimed packaging, as vehicles Information is not applicable for 301-3 "Remanufactured Parts" section. p For information related to reclaimed ypes of projects to reduce energy energy to reduce projects of ypes pproved vehicles in Europe accounts onsumption for Scope 3 - Use of sold sold of 3-Use Scope for onsumption roducts please refer to the to the refer please roducts urope and refers only to selected to selected only refers and urope 2 155 2020 SUSTAINABILITY REPORT Supplemental Information Reporting Standards and Frameworks GRI-303: Water(2018) GR 305-7 305-6 305-5 305-3 305-2 305-1 103-3 103-2 103-1 GRI-305: Emissions(2016) 303-5 303-4 303-3 303-2 303-1 103-3 103-2 103-1 305-4 I Standard Title 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 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 Page number 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, 28, 100,28, 134 179-180
published and publicly available. Climate Change questionnaire, yearly CDP the 3in Scope of categories main Omissions andcomments ------FCA reported on CO on reported FCA 2 emissions from 156 2020 SUSTAINABILITY REPORT Supplemental Information Reporting Standards and Frameworks GR 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: SupplierEnvironmentalAssessment(2016) 307-1 103-3 103-2 103-1 GRI-307: EnvironmentalCompliance(2016) 306-5 306-4 306-3 306-2 306-1 103-3 103-2 103-1 GRI-306: EffluentsandWaste(2016) I Standard Title 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 Publications SR SR SR SR SR SR SR SR SR SR SR SR SR SR SR SR SR SR SR SR SR SR SR Page number 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, ------Omissions andcomments Italy only. FCA is boundary 401-3 e.: c. disclosure 157 2020 SUSTAINABILITY REPORT Supplemental Information Reporting Standards and Frameworks GRI-402: Labor-ManagementRelations(2016) GR 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) 402-1 103-3 103-2 103-1 403-10 I Standard Title 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 Work-related ill health Publications SR AR SR SR SR SR SR SR SR SR SR SR SR SR SR SR SR SR Page number 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, 57-59, 125 57-59, Omissions andcomments ------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 a For 403-9b the information available l Information unavailable at the global 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 evel for 403-10 b. A materiality 403-10 for b. Amateriality evel t the global level for external workers workers external for level global t the
158 2020 SUSTAINABILITY REPORT Supplemental Information Reporting Standards and Frameworks GR 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) I Standard Title 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 Publications SR SR SR SR SR SR SR SR SR SR SR SR SR SR SR Page number 53 123 92-93, 53-54, 123 92-93 13, 53-54, 36, 20, 36-37,20, 53-54 13-14, 53-54 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 ------Omissions andcomments subject to confidential treatment. is rmation info this countries some in 405-2: for constraint Confidentiality communicated externally. be cannot information b.:a. this 406-1 for constraint Confidentiality 159 2020 SUSTAINABILITY REPORT Supplemental Information Reporting Standards and Frameworks GRI-407: FreedomofAssociationandCollectiveBargaining(2016) GR 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: ForcedorCompulsoryLabor(2016) 408-1 103-3 103-2 103-1 GRI-408: ChildLabor(2016) 407-1 103-3 103-2 103-1 I 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 Title 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 Publications SR SR SR SR SR SR SR SR SR SR SR SR SR SR SR SR SR SR Page number 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, Omissions andcomments ------160 2020 SUSTAINABILITY REPORT Supplemental Information Reporting Standards and Frameworks GR 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) I Standard Title 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 Publications SR SR SR SR SR SR SR SR SR SR SR SR SR SR SR SR SR SR SR SR Page number 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 ------Omissions andcomments 161 2020 SUSTAINABILITY REPORT Supplemental Information Reporting Standards and Frameworks GRI 103-1 GRI-419: SocioeconomicCompliance(2016) 418-1 103-3 103-2 103-1 419-1 103-3 103-2 GRI-418: CustomerPrivacy(2016) Standard Title 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 Publications SR SR SR SR SR SR SR SR Page number 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, ------Omissions andcomments 162 2020 SUSTAINABILITY REPORT Supplemental Information Reporting Standards and Frameworks Annual Report. Sustainability Reportorthe2020StellantisN.V. (formerlyFiatChryslerAutomobilesN.V.) Standar The followingtablelistscontentwithinthedocumentthatrelates tospecificSASB This Reporthasbeenprepared inaccordance withtheSASBTransportation Standard. SASB ContentIndex Materials Labor Product Activity Disclosure Topic Emissions Fuel Economy&Use-phase SASB ContentIndex Practices ds indicators.Eachindicatorreferences theappropriate pagesinthe2020 Metrics Safety Sourcing 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 AR Key: SR =SustainabilityReportatDecember31,2020 =AnnualReportatDecember31,20 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.Eachr The followingtablelistscontentwithinthedocumentthatisinlinewithrequirements of responsibility. This Reporthasbeenprepared inalignmentwiththe ISO26000:2010guidelinesonsocial ISO 26000ContentIndex Labour Human Organizational Subjects Core 26000 ISO ISO 26000ContentIndex Practices6.4 Rights6.3 Governance6.2 equirement references theappropriate pagesinthe2020 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 = Key: Annual ReportatDecember31,20 SR AR 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 37-38, 123 52-54, 185-186 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, 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 Com Consumer Fair The Subjects Core 26000 ISO and Development6.8 Environment6.5 OperatingPractices6.6 munity Issues6.7 Involvement Disclosure Number 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 6.7.9 6.7.8 6.7.7 6.7.6 6.7.5 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 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 Publication 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 SR AR - SR AR SR AR SR AR Page number 85, 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 92-94 184-185 - 38 147 40, 92-94 184-185 128 85-87,24-25, 79-82, 39, 93-94, 178-183
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 inquiries, primarilywithcompan 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 Accountants We have compliedwith the independenceandotherethicalrequirementsof Auditors’ independenceandqualitycontrol the Sustainability Report. also “GRIStandards”)asstatedintheparagraphs “About thisReport” and“Definitions,MethodologyScope”of R The managementisresponsibleforthepreparation oftheSustainability Report inaccordancewith“Global Management responsibilityonthepreparationofSustainabilityReport Automobiles N.V. anditssubsidiaries atDecember31,2020(the“formerFCAGroup”). The Sustainability Report hasbeenpreparedonthebasisofscopeconsolidationformerFiatChrysler N.V On January16,2021,Peugeot S.A. (“PSA”) mergedwithandintoFiatChryslerAutomobiles N.V. (“FCA” or“FCA Chrysler A We have carriedoutalimitedassurance engagementontheSustainability Report ofStellantisN.V. relatingtoFiat To theGovernanceandSustainabilityCommitteeofStellantisN.V. documents, recalculationsandotherevidencegatheringprocedures asappropriate. Audits orReviewsofHistoricalFinancialInformation” the Sustainabilit Our responsibility istoexpressourconclusionbasedontheproceduresperformedabout thecomplianceof Auditors’ responsibility ethical requirements,professionalstandardsandapplicablelegalregulatoryrequirements. comprehensiv Our auditingfirmappliesInternationalStandardonQuality Control1(ISQCItalia1)and,accordingly, maintainsa principles ofintegrity, objectivity, professionalcompetenceandduecare,confidentiality andprofessionalbehavior. eporting Initiative Sustainability Reporting Standards”establishedby GRI–GlobalReporting Initiative (hereinafter .”) withFCAasthesurvivingcompany inthemerger, andthecombinedcompany was renamedStellantis N.V.. “International StandardonAssuranceEngagementsISAE3000(Revised)–Otherthan utomobiles N.V. scope(the“Sustainability Report”) asofDecember31,2020. issuedby theInternationalEthicsStandardsBoardforAccountants,whichisfoundedonfundamental y Report withtheGRIStandards.We conductedourworkinaccordancewiththecriteriaestablished e systemofquality controlincludingdocumentedpoliciesandproceduresregardingcompliancewith y personnelresponsibleforthepreparation oftheSustainability Report, analysis of INDEPENDENT AUDITOR’SREPORT ON THESUSTAINABILITYREPORT (hereinafter“ISAE 3000Revised”), issuedby theInternational CodeofEthicsforProfessional
March 31,2021 Milan, Italy Partner Franco Amelio DELOITTE &TOUCHE S.p.A. “Definitions, MethodologyandScope”oftheSustainability Report. in allmaterialaspects,accordancewiththeGRIStandards,asstatedparagraphs “About thisReport” and R Based ontheworkperformed,nothinghascometoourattentionthatcausesusbelieve thattheSustainability Conclusion • • set outinthe“GRIStandards” These proceduresconsistedinverifying itscompliancewiththeprinciples fordefiningreportcontentandquality • eport ofStellantisN.V. relatingtoFiatChryslerAutomobiles N.V. scopeasofDecember 31, 2020isnotprepared, the preparation oftheSustainability Report; gathering, aggregation,processingandtransmittal ofdataandinformationtothedepartmentresponsiblefor systems usedinpreparingtheSustainability Report, aswellontheprocessesandprocedures supportingthe former FCAGroupamongthefouroper In particular, wehave performed interviewsanddiscussions withthepersonnelandmanagementof Sustainabilit analysing how theprocesses underlyingthegeneration, collection andmanagementofquantitative dataofthe to theinternalv included intheStellantisN.V comparing the economicand financialinformation anddata includedintheSustainability Report withthose reference tothemethodsusedforidentificationandprioritizationofmaterialaspectsstak analysing the processrelating tothedefinitionofmaterial aspectsdisclosedintheSustainability Report, with char In addition, for materialinformation,takingintoconsideration theformerFCAGroup’s activitiesand – – acteristics: for thefollowing companies andsites, FCA Italy S.p.A. – Avvocato Giovanni Agnelli Plant (AGAP) site, FCA a) withregardstoqualitative informationincludedintheSustainability Report, wecarriedoutinterviews b) at theparentcompany’s andsubsidiaries’level: calculation methodsusedfortheindicators. gathered supportingdocumentationwithreferencetothecorrectapplicationofproceduresand their location,wecarriedoutremotemeetings,duringwhichhave mettheirmanagementandhave LL based ontheiractivities,contributiontotheperformanceindicatorsatconsolidatedlevel and and gatheredsupportingdocumentationinordertov v regardstoquantitativewith information,wecarriedoutbothanalyticalproceduresandlimited erifications inordertoensure,onasamplebasis,thecorrectaggregationofdata. C –TiptonTransmission Plantsite,FCABrasil LTDA –CampoLargoPlantsite,whichweselected y Report operate. alidation oftheprocessresults; , andaresummarisedasfollows: . (formerlyFCAN.V.) ConsolidatedFinancialStatementsasofDecember31,2020; ating regionstogatherinformationabouttheaccountingandreporting erify itsconsistencywiththeavailable evidence; eholders and
166 2020 SUSTAINABILITY REPORT Supplemental Information Forward-Looking Statements etmt, “niiae” blee” rmi, “n rc, “ein” tre, “betv, “ol” frcs, “rjcin” “outlook,” “projection,” “forecast,” “goal,” “objective,” “target,” “design,” track,” “on “prospects,” “plan,”orsimilarterms. “remain,” “believe,” “anticipate,” “estimate,” This 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 Forward-Looking Statements r eport contains forward-looking statements. These statements may include terms such as “may,” “will,” “expect,” “could,” “should,” “intend,” “should,” “could,” “expect,” “will,” “may,” as such terms include may statements These statements. forward-looking contains eport 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 laborandindustrial relations anddevelopments 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 topr exposure toshortfallsinthefundingofGroup’s definedbenefit pensionplans;the ovide orarrangeforaccesstoadequatefinancingdealersand retail 167 2020 SUSTAINABILITY REPORT Supplemental Information About this Report REPORTING DESCRIPTION CON PREVIOUS ASSURANCE REPORT REPORT SCOPEANDBOUNDARY DOCUMENT FORMA D REPORTING About thisReport ATE OFPUBLICTION TACTS CONTENT REPORT CYCLE P ERIOD TS Y 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) [email protected] our opinionisimportanttous.For questionsandcommentsregardingthereportpleasewriteat: 168 2020 SUSTAINABILITY REPORT