This content was subject to assurance by SGS Italia S.p.A. (14 March 2014).

Map of relevant topics for stakeholders

Public institutions
Government, local authorities, public agencies, regulatory bodies, institutions and trade associations

Approach of engagement

  • Continuous dialogue on regulatory and legal developments
  • Periodic ad hoc meetings on corporate objectives and decisions
  • Development of joint projects and alliances to promote social and environmental issues
  • Participation in working groups and collaborative training on auto industry-specific topics

Stakeholder expectations and our leading actions

Stakeholder expectations Our leading actions
Achievement of common targets and alignment with industry standards in terms of quality, safety and the environmental impacts of products and processes Compliance with industry standards, pulling ahead achievement and exceeding minimum requirement when feasible
Responsiveness and proactiveness toward projects and initiatives related to environmental and social matters Regular disclosure on performances and future targets related to the minimization of environmental and social impacts of our business
Technical support on specific industry-related issues

Active membership in trade and industry organizations such as ACEA(1), NGVA(2), EDTA(3), ERT(4), the Alliance(5), AIAG(6) and ANFAVEA(7) among others

(1)European Automobile Manufacturers’ Association.
(2)Natural Gas Vehicle Association (Europe and US).
(3)Electric Drive Transportation Association.
(4)European Round Table for industrial leaders.
(5)Alliance of Automobile Manufacturers (US).
(6)Automotive Industry Actions Group (North America).
(7)Associação Nacional dos Fabricantes de Veiculos Automotores (Brazil).

Employees

Approach of engagement

  • Ongoing dialogue with Human Resources function representatives and management
  • Yearly evaluation process and meetings to communicate expected and actual performance level and outline professional development path
  • Internal people satisfaction surveys
  • Employee Town Halls and other meetings
  • Provision of development opportunities including training and mentoring
  • Employee Resource Groups (ERG) and Diversity Work Streams initiatives
  • Employee suggestion initiatives
  • Provision of volunteer opportunities in the areas of society and the environment

Stakeholder expectations and our leading actions

Stakeholder expectations Our leading actions
Transparent, open corporate communication

Worldwide access to intranet and other internal communication channels for employees

Updates from senior management on organization performance and company developments

Safe and healthy work-environment Highest health and safety standards pursued at all work locations and continuous reduction of work injury rates
Transparency on objectives and reward system Employee appraisal systems adopted worldwide to assess employee results and behavior
Availability of training and professional development Training available to Group employees on topics which include job skills, integrity, sustainability and diversity
Promotion of diversity, inclusion and respect for human rights Group’s codes of conduct, guidelines, processes and procedures aligned with highest international standards

Trade unions and employee representatives

Approach of engagement

  • Meetings at all levels (plant/company, regional/national) as required by law or contractual provisions
  • Continuous dialogue at plant, company, regional or national level
  • Trilateral meetings (company, trade unions and government bodies) on matters of particular relevance

Stakeholder expectations and our leading actions

Stakeholder expectations Our leading actions
Open and constructive dialogue aimed at defining joint solutions Dialogue in line with applicable local legal or contractual provisions and regulations

Dealer and service network

Approach of engagement

  • Daily contacts and periodic meetings
  • Sustainability-focused Stakeholder Engagement Events

Stakeholder expectations and our leading actions

Stakeholder expectations Our leading actions
Wide range of competitive products

Competitive financial services offered to customers.

Affordable products to meet the needs of a diverse customer base

Complete and rapidly accessible product information, including sustainability features and Group commitment

e-Product tool made available to support vehicle sales by effectively explaining the product range and illustrating innovative characteristics and technologies.

Incorporation of sustainability messages in product advertising

Support business profitability by reinforcing managerial skills Empowerment of dealerships staff to improve managerial and interpersonal skills

Prospective and existing customers

Approach of engagement

  • Sales and after-sales processes
  • Market research (concept tests, clinic tests, image and awareness surveys, focus groups)
  • Customer satisfaction surveys
  • Communication channels (web, social media, direct mailing)
  • Events (Exhibitions, product launches, trade fairs, conventions and owner events) & sponsorships
  • Sustainability-focused Stakeholder Engagement Events

Stakeholder expectations and our leading actions

Stakeholder expectations Our leading actions
Quality, innovation and affordability of products Provision of products that combine highest quality standards and innovative technologies while recognizing and accommodating for different economic and geographic requirements and mobility needs of a wide range of customers
Safety of products Offer a variety of technologically advanced safety features and characteristics on our products
Innovation at competitive prices Introduction of innovative product solutions accessible to a wide customer base
Quality, speed, and efficiency of services offered Professional, courteous and timely response from dealers, service centers and company
Availability of credit and financial services Financial services offered to customers
Quality and reliability of products Quality priorities used globally to categorize and address product standards
Low-emission products Continual efforts made to introduce and develop a diversified portfolio of technology solutions to reduce CO2 emissions from vehicles
High-fuel-economy vehicles Ongoing efforts made to increase fuel economy using a balanced approach that combines conventional and innovative technologies
Development of mobility solutions and services for greater affordability of urban transportation and an increase in the quality of life in modern-day cities Promotion of new mobility concepts (e.g., car sharing, carpooling) that are economically viable for the Group and its customers in partnership with institutions and other organizations. Future trends analyzed and sector drivers of mobility paradigm shifts identified
Environmentally friendly business processes The Group continues to develop solutions designed to reduce the environmental footprint of its operations

Suppliers and commercial partners

Approach of engagement

  • Daily relationship through Purchasing function representatives
  • Engagement through sustainability clauses in contracts
  • Technology Days and SUpplier Product Enhancement Reward (SUPER) program
  • Supplier Town Halls
  • Conferences and training programs
  • Sustainability-focused Stakeholder Engagement Events

Stakeholder expectations and our leading actions

Stakeholder expectations Our leading actions
Joint collaboration and sharing of best practices between the Group and the supply chain on critical aspects of sustainability Support and training provided to suppliers intending to implement the World Class Manufacturing system
Sustainability and innovation criteria as drivers for purchasing decisions Organization of initiatives to allow suppliers to present innovative ideas and new products.
Clauses progressively introduced in new agreements requiring suppliers to comply with both the Group’s Code of Conduct and specific Sustainability Guidelines
Continuity of supply and fulfillment of contractual conditions Significant number of long-standing company-supplier relationships
Limited number of disputes with commercial partners
Promotion of diversity and inclusion in the supplier base Initiatives to support inclusion of minority suppliers in the supplier base
Collaboration for common improvements to reverse logistics Partnerships established with other organizations to handle reverse logistics and to make component and material takeback more efficient

Local communities and NGOs
Scientific and technological research, schools and academia, cultural, professional and socio-political representatives and opinion leaders

Approach of engagement

  • Ad hoc meetings on sustainability issues
  • Initiatives, managed directly or in partnership
  • Collaboration on joint projects
  • Cultural exchange programs
  • Dialogue with universities
  • Participation on boards of directors of organizations
  • Community Town Hall
  • Sustainability-focused Stakeholder Engagement Events

Stakeholder expectations and our leading actions

Stakeholder expectations Our leading actions
Collaboration on research projects Collaborations in place worldwide with private and public partners on automotive innovation programs and sector priorities
Research on alternative fuels In 2013 alone, the Group invested around €3.4 billion on research and development.
Continuous research on the potential of alternative fuels to reduce CO2 emissions through innovative technologies
Development of an alternative, affordable drive system Continuous evaluation of market opportunities for the implementation of electric or hybrid vehicles
Improve urban mobility experience Worldwide engagement in research and development programs which focus on the development of new technologies and solutions to guarantee a mobility experience that is increasingly safe and sustainable
Promotion of education and culture of sustainability in society Promotion of initiatives and programs dedicated to employees as well as external stakeholders conducted in partnership with academia and other organizations to increase sustainability awareness in society as a whole
Spread of a safe approach to driving with a particular focus on youth Collaboration with several institutions and organizations to promote the teaching of techniques that combine safety and responsibility with driving pleasure
Support education of future generations Talented youth nurtured through scholarships and monetary rewards worldwide
Contributions and support for initiatives for local development including medium to long-term commitments Material and monetary resources committed in 2013 for a value of approximately €19.7 million to benefit local communities, (with activities focused on a variety of causes, such as education, for value of approximately €7.7 million and social welfare approximately €4.9 million).
Employees dedicated time and skills to volunteer initiatives in support of local communities in need

Investment community and financial analysts
Traditional and socially responsible investors; sustainability rating agencies

Approach of engagement

  • Daily dialogue
  • Shareholder meetings
  • Sensitive communications and information
  • Quarterly conference calls
  • Seminars, industry conferences, non-deal roadshows and investor meetings
  • Investor Relations section of the Group website
  • Sustainability assessment processes

Stakeholder expectations and our leading actions

Stakeholder expectations Our leading actions
Expand and reinforce knowledge of the Group’s sustainability efforts and results Inclusion of sustainability information in presentations of quarterly financial results
Value creation (return on investment, sustainable and responsible management of the business) Global presence of the business with more than a century of industrial history, with 4.4 million vehicles sold in 2013 and trading profit of €3.4 billion.

Around 6% of free float shares held by Socially Responsible Investors (Source Vigeo research, as of 30 November 2013)

Identification of key developments

in CSR-related topics

Continuous open dialogue with rating agencies and sustainability stakeholders to update material aspects and new emerging trends and expectations

Journalists and media

Approach of engagement

  • Daily dialogue
  • Presentations and press conferences
  • Other events (product drives/launches, plant investment events, auto shows, etc.)
  • Group and company websites
  • Sustainability-focused Stakeholder Engagement Events

Stakeholder expectations and our leading actions

Stakeholder expectations Our leading actions
Availability, timeliness, accuracy and transparency of information on financial and non-financial performance Continuous release and disclosure of information on Group strategies and results through the press, brand websites and the sustainability section of the corporate website an brochure