The case for CSR/ Sustainability Reporting Done Responsibly


IDENTIFY - MEASURE - MANAGE - CHANGE

Insights on how you can protect the environment, maintain and increase the value of your company, through a structured process.

Insights on how you can protect the environment, maintain and increase the value of your company, through a structured process.

Home / case studies / Case study: How CNH Industrial reduces the environmental impact of logistics processes

Case study: How CNH Industrial reduces the environmental impact of logistics processes

As a global capital goods leader, with a commercial presence in approximately 180 countries around the globe and 66 manufacturing plants, designing, manufacturing and selling agricultural equipment, construction machinery, trucks, buses, specialty vehicles and powertrains, CNH Industrial seeks, through a number of initiatives, to minimise the environmental impact of logistics processes.  Tweet This!

This case study is based on the 2017 Sustainability Report by CNH Industrial published on the Global Reporting Initiative Sustainability Disclosure Database that can be found at this link. Through all case studies we aim to demonstrate what CSR/ ESG/ sustainability reporting done responsibly means. Essentially, it means: a) identifying a company’s most important impacts on the environment, economy and society, and b) measuring, managing and changing.

Layout 1

Abstract

CNH Industrial aims to promote sustainable logistics processes through technologies, procedures and solutions that reduce the environmental impact of these processes, such as type of transport, intermodality, long-haul transport and packaging design. In order to reduce the environmental impact of logistics processes CNH Industrial took action to:

  • increase low-emission transport
  • implement intermodal solutions
  • optimise transport capacity
  • minimise non-reusable packaging and protective materials

What are the material issues the company has identified?

In its 2017 Sustainability Report CNH Industrial identified a range of material issues, such as circular product life cycle, CO2 and other air emissions, renewable energy, self-sustaining food systems, employee engagement. Among these, reducing the environmental impact of logistics processes stands out as a key material issue for CNH Industrial.

Stakeholder engagement in accordance with the GRI Standards

The Global Reporting Initiative (GRI) defines the Principle of Stakeholder Inclusiveness when identifying material issues (or a company’s most important impacts) as follows:

“The organization should identify its stakeholders, and explain how it has responded to their reasonable expectations.”

Stakeholders must be consulted in the process s of identifying a company’s most important impacts and their reasonable expectations and interests must be taken into account. This is an important cornerstone for CSR / sustainability reporting done responsibly.

Key stakeholder groups CNH Industrial engages with:

Stakeholder Group                Method of engagement
Customers

 

·      Direct engagement in materiality analysis

·      Market research

·      Focus groups

·      Customer satisfaction surveys

·      Above-the-line and below-the-line communication channels

·      Two-way communication through: web, direct

mailing, dealerships, toll-free numbers, etc.

·      Events (product launches, etc.) and participation in exhibitions, trade fairs, and conventions

·      Customer-Driven Product Development (CPD)

·      Compliance Helpline

Dealer and service network

 

 

·      Direct engagement in materiality analysis

·      Daily contacts and periodic meetings with the network

·      Two-way communication through the web Dealer Portal and dedicated phone lines

·      Individuals responsible for monitoring the network and ensuring fulfillment of contractual standards

·      Dealer development programmes

·      Programmes to support dealers, including training, definition of standards, financing, and promotional campaigns

·      Compliance Helpline

Employees ·      Direct engagement in materiality analysis

·      Daily dialogue

·      Intranet portal

·      Meetings to communicate expected and actual performance levels and professional development path

·      Compliance Helpline

Professional organisations

and associations

·      Direct engagement in materiality analysis

·      Meetings to share and align with corporate objectives and decisions

Employees’ families

 

·      Participation in initiatives (Children’s Christmas, Family Day, etc.)

·      Internal publications

Financial community: Traditional and Socially Responsible Investors (SRIs)

 

·      Direct engagement in materiality analysis

·      General Meeting

·      Price-sensitive disclosures and information

·      Quarterly conference calls

·      Seminars, industry conferences, roadshows, and meetings

·      Daily dialogue (meetings, telephone, emails)

·      Investor Relations section of the Company website

·      Annual Report

·      Sustainability Report

Journalists, media, and opinion leaders ·      Direct engagement in materiality analysis

·      Daily dialogue

·      Presentations and press conferences

·      Meetings

·      Brand and Company websites

Public institutions: Government, local authorities, public agencies, regulatory bodies, international institutions, trade associations, and non-governmental organisations ·      Direct engagement in materiality analysis

·      Periodic ad hoc meetings on corporate objectives and position

·      Participation in working groups, development of joint projects and alliances

·      Collaboration on R&D projects

·      Initiatives to highlight regulatory issues

·      Dialogue with institutions and environmental associations

Scientific and technological research centres and universities ·      Direct engagement in materiality analysis

·      Open-source tools

·      Periodical meetings

Suppliers and commercial partners ·      Direct engagement in materiality analysis

·      Daily relationship through buyers

·      Web Supplier Portal

·      WCM suppliers

·      Supplier Advisory Council (SAC)

·      Conventions

·      Technology Days

·      Su.Per

·      Compliance Helpline

·      Dedicated email addresses

Trade unions and employee representatives ·      Direct engagement in materiality analysis

·      Institutional meetings and other exchanges pursuant to legal or contractual provisions at plant, legal entity, regional or national levels

·      Trilateral meetings (Company, trade unions, and government bodies) on matters of particular importance

·      Ad hoc meetings at plant, legal entity, regional or national level

How stakeholder engagement was made to identify material issues

To identify and prioritise material topics CNH Industrial received feedback, through an online survey or direct interview, from a sample of 1,247 stakeholders that included employees, customers, dealers, opinion leaders, public institutions, NGOs, investors and journalists.

What actions were taken by CNH Industrial to reduce the environmental impact of logistics processes?

In its 2017 Sustainability Report CNH Industrial reports that it took the following actions for reducing the environmental impact of logistics processes:

  • Increasing low-emission transport
  • CNH Industrial seeks to reduce emissions from the transport of components and finished products by using road vehicles that conform to the strictest environmental standards. In Europe, CNH Industrial has gradually introduced specific environmental contractual clauses that oblige external transport providers to use vehicles that comply with Euro IV standards or higher. In North America, CNH Industrial engages logistics partners in the SmartWay transport programme. This programme is sponsored by the Environmental Protection Agency (EPA) and aims to improve efficiency and reduce greenhouse gas and air pollutant emissions in the transport chain. Participation in the programme is one of the factors CNH Industrial takes into account when evaluating potential suppliers and, in 2017, 93 per cent of service providers (rail and road transport) participated in the programme.
  • Implementing intermodal solutions
  • CNH Industrial promotes alternative modes of road transport through intermodal solutions, to reduce both traffic congestion and CO2 emissions. In 2017, critical components (coloured plastic parts, metal sheets) were shipped by sea from Italy to the plants in Madrid and Valladolid (Spain), thereby reducing CO2 emissions by 3,234 tons. CNH Industrial also used the intercontinental flow by rail between East Asia and Europe to move finished goods (engines) in the opposite direction, from Italy to Japan. In Europe, finished goods and components were moved by rail between plants in Southern Italy and the North, with almost 270 train journeys in each direction in 2017.
  • Optimising transport capacity
  • CNH Industrial optimises transport capacity to reduce the costs and environmental impact of transportation. The company makes both technical and organisational changes to routes and volumes to optimise and streamline the whole process, including environmental impacts. In November 2017 a new project began, to optimise the transport of cabs from the plant in Valladolid to the one in Madrid (Spain), using new 21.5-meter megacamiones (mega-trucks) instead of the standard 13.6-meter semitrailers. This initiative reduced the number of trips by 28 per cent and CO2 emissions by 77 tons. 
  • Minimising non-reusable packaging and protective materials
  • In 2017, CNH Industrial continued to monitor, through the World Material Flow (WMF) programme, the quantity of cardboard and wood used in consolidating shipments of materials by sea to plants in Australia and North and South America. As a result, fewer wood crates were used, reducing the amount of wood shipped by approximately 99 tons (4.13 per cent).

Which GRI Standards and corresponding Sustainable Development Goals (SDGs) have been addressed?

The GRI Standard addressed in this case is:

Disclosure 302-2 Energy consumption outside of the organization

Disclosure 302-2 Energy consumption outside of the organization corresponds to:

 

80% of the world’s 250 largest companies report in accordance with the GRI Standards

SustainCase was primarily created to demonstrate, through case studies, the importance of dealing with a company’s most important impacts in a structured way, with use of the GRI Standards. To show how today’s best-run companies are achieving economic, social and environmental success – and how you can too.

Research by well-recognised institutions is clearly proving that responsible companies can look to the future with optimism.



FBRH GRI Standards Certified and IEMA approved Sustainability Course | Venue: London LSE

By registering for the next 2-day FBRH GRI-Standards Certified and IEMA approved Course you will be taking the first step in gaining the many benefits of sustainability reporting.

 

References:

1) This case study is based on published information by CNH Industrial, located at the link below. For the sake of readability, we did not use brackets or ellipses. However, we made sure that the extra or missing words did not change the report’s meaning. If you would like to quote these written sources from the original, please revert to the original on the Global Reporting Initiative’s Sustainability Disclosure Database at the link:

http://database.globalreporting.org/

2) https://www.globalreporting.org/standards/gri-standards-download-center/

Note to CNH Industrial: With each case study we send out an email requesting a comment on this case study. If you have not received such an email please contact us.

X