FCA 2020 Sustainability Report
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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 SUSTAINABILITY REPORT Forward-Looking Statements 167 About this Report 168 2020 2 Message from the Chairman and the CEO Some years are so eventful that we know as we live through them that they will go down in the history books, and 2020 will undoubtedly join that list. It was more challenging than anybody could ever have imagined, proving that even when we believe we’ve thought of and planned for everything, we must always be ready for the totally unexpected and that nothing should surprise us. As the pandemic spread across the world, it changed our lives, impacted our relationships and upset the sense of normality we often took for granted, taking its human, economic and emotional toll on our societies as it went. But 2020 also reminded us that times of crisis reveal the true character of an organization and its people. Not only did FCA move quickly to safeguard the health and welfare of its people and the societies where they live, it supported our customers and dealers, and protected the financial health of the business. It also stepped in to help our local communities and provide support to first responders and healthcare workers across the globe. The commitment and solidarity FCA’s people have shown when providing much needed assistance around the world – building two fully equipped field hospitals in Brazil and one in Argentina; making and repairing ventilators; producing face masks and face shields, with a daily production of some 23 million masks in Italy; providing vehicles and ambulances to first responders; and donating over 15 million meals to school-age children to help end childhood hunger in the United States – is a true testament to their extraordinary spirit, courage and perseverance. Message from the Chairman and CEO Message from SUSTAINABILITY REPORT Message to Stakeholders 2020 3 While the pages of this year’s Report do not yet represent the consolidated results and Stellantis represents one of the world’s leading automakers, but more importantly it is a accomplishments of Stellantis N.V., which began life at the beginning of 2021, they provide company with the scale, the resources, the diversity and the know-how to successfully the current perspective of a company that entered into this new venture with a sustainable capture the opportunities of the new era ahead of us. track record of execution and delivery and solid financial foundations. We will leverage the benefits of Stellantis and our unmatched competitive advantages to FCA closed 2020 with strong full year results, despite the impact of COVID-19, with provide our customers with clean, safe and affordable mobility, while offering distinctive, Adjusted EBIT of €3.7 billion and a 4.3% Adjusted EBIT margin. convenient and innovative vehicles and services. As lockdown restrictions have been gradually, if unevenly, eased across the world, and the We also believe that long-term success is achieved by linking economic growth with business environment has begun to show improvement in the second half of the year, FCA environmental stewardship and financial performance with social responsibility. delivered two consecutive record quarters, which are an eloquent reflection of its operating As a global company, we will always strive to ensure that our ESG focus is embedded into potential in a more normalized environment. The strong close to the year, with the truly our strategy and that our growth ambitions are compatible with sustainable development outstanding performance achieved during the second half, not only demonstrates the practices, conscientiously seeking the right balance in every choice we make as we resilience of FCA’s business model, but it is also the best way to fully comprehend FCA’s provide sustainable and affordable mobility. capabilities, employees’ commitment, strength and solid foundations as it transitioned into Stellantis in mid-January. This approach also involves our commitment to supporting the fight against climate change and contributing to a decarbonized economy by engaging our talents and assets The fact that FCA entered this new and exciting era in such robust shape is a great tribute on the path to carbon neutrality across our products and footprint. to Mike Manley and his leadership. We want to thank him for guiding FCA, in particular during such a challenging year, protecting its employees and supporting the community Diversity and inclusion are an intrinsic part of our company’s fabric, and we intend to make at large, and always ensuring that the company performed to the highest standards. And them distinctive strengths of Stellantis, relying on the talent of our more than 400,000 we are very happy that he will continue to play a fundamental role in the future of Stellantis. people around the world and the shared values that drive us in this new journey. Groupe PSA successfully navigated the same challenging year. We would like to recognize and thank everyone in the Stellantis organization for their perseverance and continuing contributions after such a challenging and pivotal year. Their Even if its 2020 consolidated results are not included in the pages of this Report, Groupe relentless hard work and resilience will be crucial to our future success. PSA achieved a remarkable performance: its focus on execution and agility allowed it to weather this tough year, and maintain a high level of profitability in its Automotive business, And we would also like to thank all of our shareholders and stakeholders for standing with a strong Net Financial Position. with us during this most difficult time and for your continued trust, support, and engagement as we now move forward together as Stellantis into the next chapter of Based on both founding companies’ track records of performance and competitive spirit, our extraordinary adventure. the creation of Stellantis marked a new chapter powered by the combination of two automakers each contributing a rich heritage, iconic brands, and talented people. Message from the Chairman and CEO Message from March 4, 2021 /s/ /s/ John Elkann Carlos Tavares Chairman Chief Executive Officer SUSTAINABILITY REPORT Message to Stakeholders 2020 4 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” 2020 Sustainability Highlights €3.9 Billion in Research and Development SUSTAINABILITY REPORT Message to Stakeholders 2020 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 2020 Sustainability Highlights greater options transparency in the supply chain SUSTAINABILITY REPORT Message to Stakeholders 2020 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 Value Chain Fiat Chrysler Automobiles was a global automotive group engaged in designing, engineering, manufacturing, distributing and selling vehicles, components and production systems worldwide through more than 100 manufacturing facilities and more than 40 research and development centers. The Group’s automotive brands THE SPIRIT OF STELLANTIS were: Abarth, Alfa Romeo, Chrysler, Dodge, Fiat, Fiat Professional, In December 2019, Fiat Chrysler Automobiles N.V. and Peugeot Jeep, Lancia, Ram, Maserati, the SRT performance vehicle S.A. signed a binding Combination Agreement providing for a 50/50 designation and Mopar, the parts and service brand. merger of their businesses. During 2020 both companies agreed to amend certain terms of their binding Combination Agreement to In addition, FCA operated in the components and production systems sectors under the create Stellantis, whose Latin root “stello” means “to brighten with Teksid