PUBLIC POLICY AND INTEREST REPRESENTATION
It emerged from the materiality analysis that public policy and interest representation are key issues for the Company and for its stakeholders. The Company’s participation in the debate on shaping public policy and defining regulations is essential to help define workable standards and guidelines and thus preserve the value of its investments. For stakeholders, the community, customers, public institutions, and organizations it is important that technical experts contribute to the public debate on standards and guidelines to help identify innovative, shared solutions.
Policies and commitments
CNH Industrial aims to make a positive contribution to the future development of policies, regulations and standards on issues that affect its business and the communities in which the Company operates. Specifically, CNH Industrial contributes its expertise and knowledge in its dialogue with authorities and other stakeholders on policies concerning the capital goods industry, including the automotive industry and other sectors related to the mobility of people and goods. CNH Industrial is committed to contributing to the technological advancement of society and to cooperating with public institutions, universities and other organizations on research and development into innovative solutions in the fields in which CNH Industrial operates. The Company’s proactive approach to institutional relations contributes to identifying new business opportunities early on and to creating business conditions that are competitive as well as sustainable over the long-term.
Interest representation is conducted only where permitted by, and in strict compliance, with applicable laws and in full compliance with the Company’s Code of Conduct and other policies and procedures.
Resources and responsibilities
The Institutional Relations unit reports directly to the chief operating officer of each Region, except in the APAC Region where this area is managed directly by the regional chief operating officer. Activities are structured around three pillars:
- institutional affairs, focusing on international institutional and diplomatic relations
- public affairs, focusing on non-technical policy matters as well as institutional communications
- technical affairs, focusing on regional and international technical regulations.
Goals and targets
The main goals and targets of the Institutional Relations unit are:
- actively monitoring societal developments and future legislative trends in order to engage with public authorities, local governments, business associations, regional institutions, international organizations, and NGOs in the institutional decision-making processes that affect CNH Industrial’s product and marketing strategies
- defining the Company’s position with regard to policy changes, and developing strategies for interacting with policy makers and other relevant stakeholders
- managing the Company’s collaboration with trade associations that deal with global and regional regulations
- protecting and enhancing Company and brand profiles by pro-actively interacting with external stakeholders and participating in public dialogue
- engaging with the Company’s product development, innovation, engineering, product portfolio and market leadership to understand the requirements and constraints of future regulatory trends, as well as provide information on mid and long-term policy trends and legislative requirements, with the aim of supporting the continuous development and updating of the Company’s longer-term product and operational strategy
- supporting CNH Industrial’s business goals by identifying specific business issues and opportunities in the context of institutional and/or diplomatic relations.
The specific activities of the Institutional Relations unit are:
- participation in governmental and other institutional meetings on technical specifications, public policies and/or business opportunities
- contribution to industry association working groups, events, and initiatives
- stakeholder collaboration projects in various fields, for example natural gas infrastructure and urban logistics.
LOCAL ASSOCIATIONS AND INITIATIVES
CNH Industrial is a member of the major sector associations, either directly or through one of its companies.
In EMEA, CNH Industrial is a member of:
- ACEA - Association des Constructeurs Européens d’Automobiles (Trucks and Commercial Vehicles)
- CEMA - European Agricultural Machinery (Agricultural Equipment)
- CECE - Committee for European Construction Equipment (Construction Equipment)
- EUROMOT - European Association of Internal Combustion Engine Manufacturers (Engines)
- NGVA Europe - the Natural Gas Vehicle Association.
Organization of, and participation in, institutional events and major initiatives in EMEA (2013):
- EU Open Days, Brussels - innovative traction vehicle demo – Trucks and Commercial Vehicles
- Green Week / Imagin’air event, Brussels and Turin – CNH Industrial and its brands
- Participation in CECE & CEMA Summit, Brussels – Agricultural and Construction Equipment
- Precision Farming exhibition at the EU Parliament, Brussels – Agricultural and Construction Equipment
- Hosting the EUROMOT General Assembly, Turin – FPT Industrial
- TEN-T Days exhibition, Tallinn - natural gas vehicle demo – Trucks and Commercial Vehicles
- Participation in Smart Mobility World conference, Turin – Trucks and Commercial Vehicles
- Defining a methodology for simulating CO2 emissions from medium and heavy commercial vehicles, test and trial development -Trucks and Commercial Vehicles
- Hosting of institutional visits (2013):
- EU policy officers, national delegations, and trade association delegations
- EMEA Region diplomatic and business delegations.
In LATAM, CNH Industrial is a member of:
- ANFAVEA (National Association of Motor Vehicle Manufacturers)
- NTC LOGISTICA (National Association of Cargo Transportation and Logistics)
- SAE Brazil (Mobility Association).
Organization of, and participation in, institutional events and major initiatives in LATAM (2013):
- Mobility Congress and International Technology Show (SAE)
- Symposium on Electric and Hybrid Vehicles (SAE)
- Sponsoring FENATRAN (the major transport fair in Latin America) and ANFAVEA, which represents trucking companies, logistics operators, truck manufacturers, and suppliers of goods for cargo transportation
- Agrishow – Latin America’s leading agriculture fair.
In NAFTA, CNH Industrial is a member of:
- US Chamber of Commerce
- Business Roundtable
- National Association of Manufacturers
- Association of Equipment Manufacturers
- Organization for International Investment
- Diesel Technology Forum
- Engine Manufacturers Association.
The main initiatives carried out in NAFTA in 2013 involved:
- Coalition for Employment through Exports
- Trade Benefits America
- Coalition in support of the Keystone Pipeline
- Business Industry Political Action Committee
- American-Uzbekistan Chamber of Commerce
- Several bilateral business associations and councils (US-Kazakhstan, US-Russia, US-China, US-Turkmenistan,
- US-Poland, American-Romanian, US-Egypt, US-Ukraine, and US-Iraq)
- US-China Agriculture and Food Partnership
- Corporate Council on Africa
- Fuels America
- Campaign to Fix the Debt
- National Cattlemen’s Beef Association
- Growth Energy.
Any relationships between CNH Industrial and political parties and their representatives or candidates (collectively, “Political Parties”) are conducted according to the highest standards of transparency and integrity.
Financial contributions to Political Parties are only allowed where permitted by law, and must be authorized at the appropriate level within each company. In 2013, no contributions were made to Political Parties.
Any political association or financial contribution made by employees is considered to be a personal matter, and completely voluntary. This includes contributions made through a United States Political Action Committee (PAC). In accordance with US law, CNH Industrial provides support to the Case New Holland Excellence in Government Committee (a PAC) which collects voluntary personal contributions from company employees for donation to Political Parties. Information relating to these contributions is available on the US Federal Election Commission website (www.fec.gov).
RELATIONS WITH PUBLIC ORGANIZATIONS ON SOCIAL ISSUES
In some countries, such as the USA, interest representation on social issues is managed separately by CNH Industrial companies, which deal directly with governments, institutions and trade unions. CNH Industrial has well-established processes in place to ensure that the company’s interest representation with United States government bodies is in accordance with applicable laws and government ethics and disclosure rules.
In other countries in Europe, these activities are carried out through the industrial and employers’ associations to which CNH Industrial companies belong, such as the Bundesvereinigung der Deutschen Arbeitgeberverbände (BDA) in Germany, and the Mouvement des Entreprises de France (MEDEF) in France. These associations are designed to protect the interests of their members and represent them in social dialogue with key political and administrative institutions, trade unions and other groups, both locally and nationally.
In Italy, as widely reported, CNH Industrial cancelled its Confindustria membership as of 2012 in order to negotiate its own labor contract and pursue its specific interests more effectively, allowing the Company to compete on a level footing with its competitors at an international level, during a particularly difficult period for the world economy.
In addition, Business Europe – the confederation of European businesses that, through 41 member federations from 35 countries, represents more than twenty million companies of all sizes – is a recognized Company partner, and participates in social dialogue across the European Union.
CNH Industrial in Latin America is committed to collaborating and maintaining an open dialogue with numerous organizations. It is an active member of the principal trade associations within the Region, and regularly participates in both national and international round-table discussions, in the firm belief that contributing to public policy development is an essential requirement for a responsible company. This dialogue focuses on economic issues, such as the performance of CNH Industrial companies, factors relating to growth and more general themes, labor policies (flexibility, training and pension schemes) and specific requirements associated with manufacturing and commercial activities.
In APAC, several CNH Industrial companies are members of industry associations within their sector, representing the interests of their members on labor and other issues, according to the country’s specific legal and best practice framework.