What are the material issues the company has identified?

In its 2021 Sustainability Report CNH Industrial identified a range of material issues, such as circular product life cycle, CO2 and other air emissions, occupational health and safety, employee engagement, renewable energy. Among these, creating economic value for its stakeholders 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 reporting organization shall identify its stakeholders, and explain how it has responded to their reasonable expectations and interests.”

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 (e.g. product launches) 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 discuss expected and actual performance levels and professional development paths ·      Compliance Helpline
Professional organisations and associations	·      Direct engagement in materiality analysis ·      Town hall meetings to share and align with corporate objectives and decisions
Employees’ families	·      Participation initiatives (e.g., Children’s Christmas, Family Day) ·      Internal publications
Financial community: Traditional and ESG investors	·      Direct engagement in materiality analysis ·      Annual 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 ·      EU 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
Local communities: Religious, cultural, and socio-political associations, health systems, schools & universities, and non-governmental & non-profit organisations	·      Direct engagement in materiality analysis ·      Meetings with representatives of associations, organisations or local communities ·      Actions or projects, managed directly or in partnership ·      Cultural exchange programmes ·      Employee volunteering activities ·      Compliance Helpline
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 ·      Periodic meetings
Suppliers and commercial partners	·      Direct engagement in materiality analysis ·      Daily relationship through buyers ·      Web Supplier Portal ·      Come to our Plant initiative ·      WCM suppliers ·      Supplier Advisory Council (SAC) ·      Conventions ·      Technology Days ·      Suppliers’ Proposals Programme ·      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 level ·      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 from a sample of 2,068 stakeholders among employees, customers, dealers, opinion leaders, public institutions, NGOs, investors, and journalists through an online survey or direct interview.

What actions were taken by CNH Industrial to create economic value for its stakeholders?

In its 2021 Sustainability Report CNH Industrial reports that it took the following actions for creating economic value for its stakeholders:

• Creating economic value for employees
• In 2021, 65.8% of the value added generated by CNH Industrial ($7,139 million) went to employees.

• Creating economic value for shareholders
• In 2021, 2.6% of the value added generated by CNH Industrial ($7,139 million) went to shareholders.

• Creating economic value for financial providers
• In 2021, 8.1% of the value added generated by CNH Industrial ($7,139 million) went to financial providers.

• Creating economic value for the government and public institutions
• In 2021, 9.0% of the value added generated by CNH Industrial ($7,139 million) went to the government and public institutions.

• Creating economic value for local communities
• In 2021, 0.1% of the value added generated by CNH Industrial ($7,139 million) went to local communities.

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

The GRI Standard addressed in this case is: Disclosure 201-1 Direct economic value generated and distributed

Disclosure 201-1 Direct economic value generated and distributed corresponds to:

• Sustainable Development Goal (SDG) 8: Decent Work and Economic Growth
• Targets: 8.1, 8.2
• Sustainable Development Goal (SDG) 9: Industry, Innovation and Infrastructure
• Targets: 9.1, 9.4, 9.5

 

78% 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.

7 GRI sustainability disclosures get you started

Any size business can start taking sustainability action

GRI, ISEP, CPD Certified Sustainability courses (2-5 days): Live Online or Classroom  (venue: London School of Economics)

• Exclusive FBRH template to begin reporting from day one
• Identify your most important impacts on the Environment, Economy and People
• Formulate in group exercises your plan for action. Begin taking solid, focused, all-round sustainability action ASAP. 
• Benchmarking methodology to set you on a path of continuous improvement

See upcoming training dates.
References:

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 following link:

https://www.cnhindustrial.com/-/media/CNHi/cnhicorporate/Home-Page/2021-cnh-industrial-sustainability-report.pdf?rev=f7975f788d2d47c5afd34c7e28f18f76

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.

What are the material issues the company has identified?

In its 2019 Sustainability Report CNH Industrial identified a range of material issues, such as circular product life cycle, CO2 and other air emissions, occupational health and safety, employee engagement, water and waste efficiency. Among these, promoting workplace diversity 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 (e.g. product launches) 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 (e.g., Children’s Christmas, Family Day) ·      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 ·      EU 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
Local communities: Religious, cultural, and socio-political associations, health systems, schools & universities, and non-governmental & non-profit organisations	·      Direct engagement in materiality analysis ·      Meetings with representatives of associations, organisations or local communities ·      Actions or projects, managed directly or in partnership ·      Cultural exchange programmes ·      Compliance Helpline
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 ·      Periodic meetings
Suppliers and commercial partners	·      Direct engagement in materiality analysis ·      Daily relationship through buyers ·      Web Supplier Portal ·      Come to our Plant initiative ·      WCM suppliers ·      Supplier Advisory Council (SAC) ·      Conventions ·      Technology Days ·      Suppliers’ Proposals programme ·      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 from a sample of 1,934 stakeholders among employees, customers, dealers, opinion leaders, public institutions, NGOs, investors, and journalists through an online survey or direct interview.

What actions were taken by CNH Industrial to promote workplace diversity?

In its 2019 Sustainability Report CNH Industrial reports that it took the following actions for promoting workplace diversity:

• Promoting gender diversity
• To promote gender diversity, in Europe, some of CNH Industrial’s most outstanding female employees participated in workshops held in schools, where they shared their experiences with students while encouraging girls to pursue their ambitions free from limiting stereotypes. In addition, support programmes were organised for mothers returning from maternity leave, and several workshops were held on women’s leadership, self-awareness, networking, and personal empowerment. Coaching and mentoring programmes to address women’s growth were developed in Brazil and Italy, while, in India, training was provided to help tackle sexual harassment and to encourage diversity. In North America, CNH Industrial is a Corporate Partnership Council member of the Society of Women Engineers (SWE), an organisation that empowers women to achieve their full potential in careers as engineers and leaders, highlighting the value of diversity. As a corporate member, CNH Industrial attended the SWE’s annual conference and continued to support its mission and objectives by funding programmes, supporting diversity, and creating and promoting opportunities for women in engineering and technology.

• Supporting the employment of people with disabilities
• A survey monitoring the employment of people with disabilities is conducted at CNH Industrial every 2 years. The last such survey was carried out in 2018 in 42 countries, covering almost 99% of CNH Industrial’s The survey showed that, in the countries where the law requires companies to employ a minimum percentage of workers with disabilities (15 mapped, accounting for about 69% of CNH Industrial’s global personnel), the latter make up 3.6% of total employees (compared to 3.4% in the 2016 survey). In many other countries (including Argentina, Australia, Belgium, Canada, Mexico, Poland, UK, and USA) there is no legislation relating to the employment of persons with disabilities that establishes minimum quotas, although in some cases other forms of protection exist (i.e., related to working hours or workplace environments, specific grants/benefits for companies employing workers with disabilities, etc.). In these countries (27 mapped by the survey), there are objective limitations to reporting the number of these workers, as the information is sensitive and often subject to data protection legislation. As a result, CNH Industrial is only aware of an employee’s personal status if he/she chooses to disclose it. In September 2015, IVECO France agreed with all 5 trade unions represented in CNH Industrial to implement, for an indefinite term, the agreement signed in 2007 (and subsequently renewed in 2012) setting specific rules and measures aimed at the recruitment, training, and development of people with disabilities and at their long-term employment. As of March 2017, CNH Industrial also entered into a 3-year agreement with all the trade unions in France represented in CNH Industrial, which establishes provisions for employees with disabilities very similar to those in the IVECO agreement. In Europe, awareness of intellectual and physical disabilities was also promoted through the many initiatives in place to engage and integrate people with disabilities in the workforce. In Spain, for example, CNH Industrial renewed this commitment by collaborating once again with local NGO Fundación Roncalli Juan XXIII in support of the enclave laboral, resulting in the hiring of workers with physical disabilities at the manufacturing plant in Madrid. CNH Industrial also continued to support the Integracamp project to promote cognitive impairment awareness and build diversity values among employees’ children from an early age. Moreover, as part of its diversity and inclusion projects, CNH Industrial actively participated in a number of job fairs focused on the employment of persons with disabilities. 

• Promoting awareness of unconscious bias
• CNH Industrial promoted awareness of unconscious bias, in various ways. In Argentina, for example, conferences open to all were organised, attendance voluntary, with a focus on the value of an inclusive environment within an organisation, recognising diversity bias, and practical tools to instigate change. CNH Industrial aims to make diversity and inclusion a competitive advantage for the company, and to create an environment that encourages creative ideas, excludes bias, and retains talent. Evidence of this commitment is its Diversity Committee in South America specifically supporting diversity and promoting inclusivity, as well as the letter of intention sent by the regional head of HR to external recruitment agencies at the beginning of 2019, inviting them to present diversity candidates (such as women for leadership roles, professionals with special needs, people from immigrant and LGBT+2 communities, black professionals, and mothers).

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

The GRI Standard addressed in this case is: Disclosure 405-1 Diversity of governance bodies and employees

Disclosure 405-1 Diversity of governance bodies and employees corresponds to:

• Sustainable Development Goal (SDG) 5: Gender Equality
• Targets: 5.1, 5.5
• Sustainable Development Goal (SDG) 8: Decent Work and Economic Growth
• Targets: 8.5

 

78% 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.

7 GRI sustainability disclosures get you started

Any size business can start taking sustainability action

GRI, ISEP, CPD Certified Sustainability courses (2-5 days): Live Online or Classroom  (venue: London School of Economics)

• Exclusive FBRH template to begin reporting from day one
• Identify your most important impacts on the Environment, Economy and People
• Formulate in group exercises your plan for action. Begin taking solid, focused, all-round sustainability action ASAP. 
• Benchmarking methodology to set you on a path of continuous improvement

See upcoming training dates.
 

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.

What are the material issues the company has identified?

In its 2018 Sustainability Report CNH Industrial identified a range of material issues, such as circular product life cycle, employee engagement, CO2 and other air emissions, renewable energy, water and waste efficiency. Among these, fighting bribery and corruption 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 (e.g., Children’s Christmas, Family Day) ·      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 ·      EU 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
Local communities: Religious, cultural, and socio-political associations, health systems, schools & universities, and non-governmental & non-profit organisations	·      Direct engagement in materiality analysis ·      Meetings with representatives of associations, organisations or local communities ·      Actions or projects, managed directly or in partnership ·      Cultural exchange programmes ·      Compliance Helpline
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 ·      Periodic meetings
Suppliers and commercial partners	·      Direct engagement in materiality analysis ·      Daily relationship through buyers ·      Web Supplier Portal ·      Come to our Plant initiative ·      WCM suppliers ·      Supplier Advisory Council (SAC) ·      Conventions ·      Technology Days ·      Suppliers’ Proposals programme ·      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 engaged with a sample of 1,687 stakeholders among employees, customers, dealers, opinion leaders, public institutions, NGOs, investors and journalists.

What actions were taken by CNH Industrial to fight bribery and corruption?

In its 2018 Sustainability Report CNH Industrial reports that it took the following actions for fighting bribery and corruption:

• Implementing an Anti-Corruption Policy
• CNH Industrial’s Anti-Corruption Policy establishes procedures designed to ensure full compliance with applicable anti-corruption legislation and regulations. As stated in its Anti-Corruption Policy, CNH Industrial does not tolerate any kind of bribery (the paying or offering of anything of value in order to obtain an improper business advantage) concerning public officials or representatives of international organisations, or any other party connected with a public official, or private entities/ individuals or anyone otherwise prohibited by applicable laws. The Company’s culture of integrity requires all employees to actively collaborate in monitoring the Policy’s enforcement, and to set an example of ethical conduct by reporting any possible violations to their managers, HR, Compliance representatives or through the Compliance Helpline. CNH Industrial’s Anti-Corruption Policy is supplemented by regional addendums that take into account the specific corruption risk factors of different geographical areas. The Policy is disseminated to all Company employees and senior management worldwide, and is available on CNH Industrial’s Intranet site in 16 languages.

• Providing corruption prevention training
• CNH Industrial provides corruption prevention training using both online and scenario-based classroom training. In 2018, the Code of Conduct online training included a segment on corruption, with training provided to all members of the GEC (Global Executive Committee) and to approximately 24,600 employees (of whom 80% were professional and salaried employees and 20% managers), for a total of 11,592 training hours. These employees represented the entire workforce deemed to present a higher level of risk, given their roles and responsibilities, at the time the training initiative was launched.

• Establishing a Global Anti-Corruption Practice Team
• CNH Industrial’s Legal and Compliance departments have established a Global Anti-Corruption Practice Team of internal legal advisors from each geographical area. This Practice Team meets regularly to provide updates on new developments in corruption prevention, regulations, and enforcement, and to share best practices across the Company. It also designs training materials, provides classroom training and develops and distributes legal notices and other information to all applicable employees. The Practice Team assesses various aspects of CNH Industrial’s anti-corruption compliance and ethics programme, identifying opportunities for and assisting in programme development and improvement. Additionally, company contracts include specific clauses relating to the acknowledgment of, and adherence to, the fundamental principles of the Code of Conduct, Supplier Code of Conduct, and related policies, as well as compliance with applicable laws, especially those related to bribery and corruption.

• Implementing a Third-Party Due Diligence process
• In 2016, CNH Industrial’s Compliance and Ethics function developed and launched a new and enhanced Third-Party Due Diligence process, using a new web-based third-party risk assessment and due diligence workflow tool. This process gives CNH Industrial more insight into the specific risks posed by different third parties with whom it does business, based on attributes such as location, type of interaction between the third party and the Company, and possible interaction between the third party and government officials in connection with work for CNH Industrial. The new process provides a ranking of high-risk third parties representing CNH Industrial in the marketplace, including dealers and distributors. Third parties identified as posing a high risk are subject to variable levels of additional due diligence, based on their specific risk profile. Additional controls (such as particular contract provisions and certifications) may be implemented with higher-risk third parties. The due diligence process ranges from the basic screening of relevant watch lists to obtaining in-depth corporate intelligence reports from external diligence sources.

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

The GRI Standard addressed in this case is: Disclosure 205-2 Communication and training about anti-corruption policies and procedures

Disclosure 205-2 Communication and training about anti-corruption policies and procedures corresponds to:

• Sustainable Development Goal (SDG) 16: Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels
• Business theme: Anti-corruption

 

78% 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.

7 GRI sustainability disclosures get you started

Any size business can start taking sustainability action

GRI, ISEP, CPD Certified Sustainability courses (2-5 days): Live Online or Classroom  (venue: London School of Economics)

• Exclusive FBRH template to begin reporting from day one
• Identify your most important impacts on the Environment, Economy and People
• Formulate in group exercises your plan for action. Begin taking solid, focused, all-round sustainability action ASAP. 
• Benchmarking methodology to set you on a path of continuous improvement

See upcoming training dates.

 

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.

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:

• Sustainable Development Goal (SDG) 7: Ensure access to affordable, reliable, sustainable and modern energy for all
• Business theme: Energy efficiency, Renewable energy
• Sustainable Development Goal (SDG) 8: Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all
• Business theme: Energy efficiency
• Sustainable Development Goal (SDG) 12: Ensure sustainable consumption and production patterns
• Business theme: Energy efficiency, Transport
• Sustainable Development Goal (SDG) 13: Take urgent action to combat climate change and its impacts
• Business theme: Energy efficiency

 

78% 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.

7 GRI sustainability disclosures get you started

Any size business can start taking sustainability action

GRI, ISEP, CPD Certified Sustainability courses (2-5 days): Live Online or Classroom  (venue: London School of Economics)

• Exclusive FBRH template to begin reporting from day one
• Identify your most important impacts on the Environment, Economy and People
• Formulate in group exercises your plan for action. Begin taking solid, focused, all-round sustainability action ASAP. 
• Benchmarking methodology to set you on a path of continuous improvement

See upcoming training dates.

 

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.

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, self-sustaining food systems, renewable energy, employee engagement. Among these, promoting social and environmental responsibility among its suppliers 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 programs ·         Programs 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
Local communities: Religious, cultural, and socio-political associations, health systems, schools & universities, and non-governmental & non-profit organisations	·         Direct engagement in materiality analysis ·         Meetings with representatives of associations, organisations or local communities ·         Actions or projects, managed directly or in partnership ·         Cultural exchange programs ·         Compliance Helpline
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 engaged, via an online survey or direct interview, with a sample of 1,247 stakeholders among employees, customers, dealers, opinion leaders, public institutions, NGOs, investors and journalists. 

What actions were taken by CNH Industrial to promote social and environmental responsibility among its suppliers?

In its 2017 Sustainability Report CNH Industrial reports that it took the following actions for promoting social and environmental responsibility among its suppliers:

• Implementing a Supplier Code of Conduct
• CNH Industrial’s Supplier Code of Conduct is available on the corporate website in 8 languages and is circulated to suppliers through the CNH Industrial Supplier Portal. The Supplier Code of Conduct requires respect for, among others, labour and human rights, environmental protection and business ethics. It applies to the entire supply chain, and suppliers are required to transfer the Code’s principles to their employees, subsidiaries, affiliates and subcontractors.

• Evaluating suppliers on the basis of sustainability performance
• CNH Industrial applies a Potential Suppliers Assessment (PSA), a process that is carried out before the procurement phase, to allow potential new suppliers to participate in tenders. PSA evaluation criteria include key sustainability aspects, with a clear reference to environmental and occupational health and safety management. Actually, one of the requirements is the presence of an Environmental and Health and Safety System in the working area, preferably certified by a third party. Additionally, all new suppliers have to comply with the CNH Industrial Code of Conduct and Supplier Code of Conduct. They also have to provide references and show abilities relating to: fighting corruption, protecting and safeguarding the environment, promoting health and safety at work, ensuring non-discrimination, prohibiting forced and/or child labour and recognising freedom of association.

• Asking suppliers to fill out a sustainability self-assessment questionnaire
• CNH Industrial asks suppliers to fill out a sustainability self-assessment questionnaire, providing information on human rights, the environment, compliance and ethics, diversity, and health and safety. The process is completed through a dedicated IT platform developed and managed by a third party, to ensure transparency and neutrality. Questionnaires are then analysed and used to carry out a risk assessment, to identify critical suppliers whose compliance with sustainability criteria has to be addressed.

• Carrying out sustainability audits
• CNH Industrial carries out sustainability audits at suppliers’ plants. These audits are intended to confirm the information submitted through the self-assessment questionnaires and define possible improvement plans, where necessary. If audit findings reveal critical issues to be addressed, joint action plans are prepared with the suppliers to define:
  • improvement areas
  • responsibilities
  • corrective measures
  • timing of action plans
• In 2017, CNH Industrial performed 75 audits at 75 supplier plants worldwide.

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

The GRI Standards addressed in this case are:

1) Disclosure 308-1 New suppliers that were screened using environmental criteria

2) Disclosure 308-2 Negative environmental impacts in the supply chain and actions taken

3) Disclosure 414-1 New suppliers that were screened using social criteria

4) Disclosure 414-2 Negative social impacts in the supply chain and actions taken

Disclosure 308-1 New suppliers that were screened using environmental criteria does not correspond to any SDG.

Disclosure 308-2 Negative environmental impacts in the supply chain and actions taken does not correspond to any SDG.

Disclosure 414-1 New suppliers that were screened using social criteria corresponds to:

• Sustainable Development Goal (SDG) 5: Achieve gender equality and empower all women and girls
• Business theme: Workplace violence and harassment
• Sustainable Development Goal (SDG) 8: Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all
• Business theme: Labor practices in the supply chain
• Sustainable Development Goal (SDG) 16: Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels
• Business theme: Workplace violence and harassment

Disclosure 414-2 Negative social impacts in the supply chain and actions taken corresponds to:

• Sustainable Development Goal (SDG) 5: Achieve gender equality and empower all women and girls
• Business theme: Workplace violence and harassment
• Sustainable Development Goal (SDG) 8: Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all
• Business theme: Labor practices in the supply chain
• Sustainable Development Goal (SDG) 16: Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels
• Business theme: Workplace violence and harassment

 

78% 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.

7 GRI sustainability disclosures get you started

Any size business can start taking sustainability action

GRI, ISEP, CPD Certified Sustainability courses (2-5 days): Live Online or Classroom  (venue: London School of Economics)

• Exclusive FBRH template to begin reporting from day one
• Identify your most important impacts on the Environment, Economy and People
• Formulate in group exercises your plan for action. Begin taking solid, focused, all-round sustainability action ASAP. 
• Benchmarking methodology to set you on a path of continuous improvement

See upcoming training dates.

 

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) http://www.fbrh.co.uk/en/global-reporting-initiative-gri-g4-guidelines-download-page

3) https://g4.globalreporting.org/Pages/default.aspx

4) 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.