Environmental management

CNH Industrial is committed to continuously improving the environmental performance of its production processes, adopting the best technologies available and acting responsibly to preserve natural resources.

Environmental protection at CNH Industrial is ensured through criteria of prevention, protection, information and people engagement, thus guaranteeing long-term management.

The materiality analysis has identified the use of water, the protection of biodiversity, and waste and effluent management as the most significant environmental aspects * , both internally and from the stakeholders’ perspective. The management of both waste and effluents is particularly relevant because it is linked to the efficiency of disposal and to the reduction of pollution risks (and hence reputational risks), which have greater economic and social implications than all other environmental aspects.

Water management and the protection of biodiversity are also of great importance, given the increasing relevance they are gaining among the international community. These two aspects are regularly addressed by the Company through initiatives driven by investments that, at this stage, are commensurate with the extent of their impact in the areas most affected.

ENVIRONMENTAL MANAGEMENTThe Environmental Guidelines, available on the Company website, were issued in 2010 by Fiat Industrial, and adopted by CNH Industrial in September 2013 following approval by the Board of Directors. They describe the short, medium, and long-term commitments toward the responsible management of the environmental aspects of production (particularly energy, natural resources, raw materials, hazardous substances, polluting emissions, waste, natural habitats and biodiversity).

All of the aforementioned aspects are included in both the environmental management system of CNH Industrial and the environmental pillar of World Class Manufacturing; both systems require compliance with guidelines, procedures and operating instructions, and regular internal audits and reviews by management. This approach ensures the effective management of environmental aspects, and the adequate evaluation of the results achieved (even with respect to estimated targets); it also ensures that results are duly shared, including through the Sustainability Report and the corporate website.

All environmental aspects are monitored, measured and quantified to set improvement targets at both corporate and segment level. As further evidence of the Company’s commitment toward protecting the environment, all 2013 targets set in the 2010-2014 Environmental Plan and included in the Sustainability Plan (see also pages 117-118) were reached, while indicators have confirmed the continuous improvement of the previous years.

CNH Industrial’s determination to manage the environmental impact of its business in a sustainable way was recognized globally in 2013 by the results obtained in the assessment for inclusion in the Dow Jones Sustainability Index (see also page 97).

Activities are carried out in compliance with the agreements and international standards governing environmental protection, and with the laws and regulations in force.

The building of any new plant abides by environmental protection criteria, taking into account territory-specific needs and the impact of construction.

The path toward reducing the Company’s environmental footprint, which encompasses every aspect affecting the environment (from the selection, use and processing of raw materials and natural resources, to product end-of-life and disposal), continued to require significant commitment in 2013, both financially and in terms of improving technical and management performance.

CNH Industrial’s overall expenditure on environmental performance improvement in 2013 exceeded €37 million (+5% compared with 2012), broken down as follows: €23.3 million for waste disposal and emissions treatment and €14 million for prevention and environmental management. The cost breakdown by segment was: €15.5 million for Agricultural and Construction Equipment, €14.2 for Trucks and Commercial Vehicles and €7.6 for Powertrain.

RESPONSIBILITY AND ORGANIZATION

The Group Executive Council (GEC) has the highest responsibility for initiatives focusing on environmental protection at CNH Industrial. Plant managers are responsible for fulfilling specific projects aiming at the environmental improvement of the production process.

Individual environmental impact reduction targets were included in the Performance and Leadership Management system (see also page 46) of both plant managers and most of the managers responsible for the projects indicated in 2013 Sustainability Plan.

In order to ensure policy consistency with Environmental Guidelines, each Region coordinates and manages issues relating to the environment and to occupational health and safety through the EHS (Environment, Health and Safety) function, which establishes environmental policies, ensures that commitments are met locally, periodically verifies performance against targets, and proposes new initiatives. An important role is also played by every plant employee involved with environmental issues in various capacities and belonging to other functions/bodies (production line, logistics, manufacturing engineering, etc.).

Furthermore, the Company avails itself of centralized systems such as the Standard Aggregation Data (SAD), i.e., a performance indicator management tool, and the Environment, Health and Safety IT platform, which provides users with training and information tools such as ISO 14001 certification support documents (guidelines, procedures and reporting guidelines, etc.). Approximately 350 people from Company sites worldwide have access to the platform.

PROCESS CERTIFICATION

The environmental management system of CNH Industrial’s manufacturing processes is certified and maintained according to the ISO 14001 standard, through accredited external organizations and bodies. In 2013, the Company continued to pursue and maintain the certifications for its manufacturing plants.

ISO 14001 CERTIFIED PLANTS
CNH INDUSTRIAL WORLDWIDE

ISO 14001 CERTIFIED PLANTS CNH INDUSTRIAL WORLDWIDE

In 2013, in line with Sustainability Plan targets, the environmental management system certification process also continued to be pursued for Italian non-manufacturing sites, as in the successful case of the Powertrain Product Engineering organizational unit in Turin (Italy), which develops engines and transmissions.

certified plantsThe mapping of direct material suppliers certified as per ISO 14001 standard was completed during the year by means of a questionnaire, delivered within the scope of an environmental awareness campaign. The results evidenced a good level of environmental certifications among CNH Industrial suppliers.

Lastly, a course for ISO 14001 internal auditors was organized for the EHS staff members of Italian plants, to create a cross-sector team for the auditing of environmental management systems. The purpose of this team is to facilitate the exchange of experiences, ensuring that standards are applied consistently across different manufacturing plants.

ENGAGEMENT AND AWARENESS ACTIVITIES

One of the most effective tools used by CNH Industrial to engage people and share information is World Class Manufacturing (see also page 156), a program fostering good practice and the implementation of improvement projects suggested directly by employees.

With regard to training activities in 2013, various courses were organized for staff members involved with environmental issues, to increase knowledge, expertise and awareness. More than 46 thousand training hours on environmental issues (+3% compared with the previous year) were provided to more than 25 thousand employees.

As regards awareness and communication activities, on the occasion of World Water Day (celebrated every year on 22 March), a summary of CNH Industrial’s efforts toward the sustainable management of water resources was published on the corporate intranet. As part of this initiative, in line with the United Nations’ declaration of 2013 as the International Year of Water Cooperation, the Company reported its main water-related initiatives and results.

training on environmental issuesAdditionally, as part of the 41st World Environment Day (5 June 2013), CNH Industrial addressed employees and suppliers with a series of internal communication and awareness campaigns worldwide, to highlight the relevance of this matter and to promote environmental protection. On this occasion, Turin’s Industrial Village (Italy) hosted the Energy & EHS Days event, where energy specialists and EHS experts shared policies, strategies, objectives and initiatives of mutual interest (see also page 173).

Many other initiatives were implemented at local level, such as the project at the Driveline plant in Turin (Italy) to promote awareness and information among salaried and hourly employees on workplace safety and the environment. The project set up so-called Environment & Safety LABs within the plant’s shops, furnished with tables and chairs made of materials derived from recycled and reused packaging.

AN ORCHARD AT THE BRESCIA PLANT
In line with World Environment Day, whose motto for 2013 was Think, Eat, Save, the plant in Brescia (Italy) created a green orchard within its industrial zone, planting a number of ancient fruit tree species linked to the history of Brescia. The initiative aimed at rediscovering and reviving old traditions and at promoting a sustainable food and environmental culture. The plant has become a sustainability reference point for the local community, fostering an environmental culture linked to biodiversity and to the daily choice of sustainable food. The plant also organized the first communication event in October, engaging employees’ children accompanied by their parents. Gathered at the orchard, they participated in fun activities and games centered on traditional fruits, learning the importance of healthy and sustainable nutrition. At the end of the day, the children were invited to the first ever recyclable snack, organized to raise their awareness on proper waste separation and differentiation.

At these labs, employees were invited to focus on specific topics such as waste sorting, waste recycling, protection equipment and its use, and labeling of dangerous products both at work and at home. Participants were engaged through videos, posters, practical examples and interactive tests, to stimulate their attention and expedite learning.

A further educational project called The Future Needs Us was initiated at the plant in Contagem (Brazil), focusing on reforestation. Implemented in the city of Betim, State of Minas Gerais, it focused on associating respect for the environment with the concept of sustainable development. A similar activity was also implemented by the Plock plant (Poland); trees were planted near a number of schools to raise awareness and involve the local community. Employees were involved in the planting, to strengthen their engagement and commitment in addressing environmental issues in their everyday lives.

GRI-G4
DMA; EN31
Sustainability Plan

Our commitments on page Our Commitment to Sustainability

Glossary
Audit, Biodiversity, Stakeholders, APAC, EMEA, ISO 14001, LATAM, NAFTA, SAD, DMA