2012

SUSTAINABILITY REPORT
Economic, Environmental and Social Responsibility
 The true value of a
multinational such
as Fiat Industrial is also
determined by how it
conducts its activities,
by its contribution to
improving the present
and building the future,
by its commitment
to society as a whole.
Sergio Marchionne
Chairman
 2012 CONTENTS
SUSTAINABILITY
REPORT

CONTENTS
Letter to stakeholders 4
ENVIRONMENTAL DIMENSION Training for the network 207
Innovation and product 84 Service quality standards 211
Reduction of pollutant emissions 86 Customers 214
ACTING RESPONSIBLY
Reduction of CO2 emissions 90 Customer interaction 215
A year of sustainability: facts and figures 8
Use of our products 100 Transparency in communication 222
Group profile 10
Recovery Recycling Reuse 104 Product safety 224
Global presence 12
Manufacturing processes 106 Suppliers 228
Agricultural and construction equipment 14
World Class Manufacturing 107 Supply chain management 229
Trucks and commercial vehicles 16
Environmental management 111 Ongoing dialogue with suppliers 236
Powertrain technologies 18
Environmental performance 115 Local communities 240
Integration of the activities
Energy management 130 Community initiatives 241
of Fiat Industrial and CNH Global 19
Energy performance 133
Stakeholder engagement 22
Logistics processes 139
Sustainability Plan 26
Non-manufacturing processes 146
APPENDIX
ECONOMIC DIMENSION Report Parameters 254
Corporate governance 50 SOCIAL DIMENSION Objectives, scope and methodology 254
Code of Conduct 55 Our people 154 Additional information 258
Risk management 61 Employees in numbers 155 Economic dimension 258
Sustainability governance 68 Management and development 160 Environmental dimension 259
Innovation management 72 Equal opportunities 168 Social dimension 268
The innovation process 73 Occupational health and safety 174 Statements of assurance 276
Open innovation 75 Employee welfare 186 Index of GRI-G3.1 content 278
Partnership and projects 76 Industrial relations 195 Glossary 284
Indexes, ratings and investors 78 Dealer and service network 206 Contacts 290

3
 LETTER to 2012
STAKEHOLDERs SUSTAINABILITY
REPORT

LETTER to STAKEHOLDERs
Fiat Industrial began operating as an independent organization just two years ago. Drawing on the existing values and experience of its businesses, the Group
immediately demonstrated a strong commitment to the responsibilities that come with being a global leader in the capital goods sector.
For the Group, acting sustainably means managing the social and environmental impacts of its activities in a manner that takes the expectations of all stakeholders
into account. The concrete demonstration of that commitment is the results achieved during 2012 and the targets we have set for the future.
Our governance model, which conforms to the highest international standards, is constantly evolving.
The Board of Directors elected in 2012 has 8 independent directors, out of a total of 11, and the criteria for determining independence are more stringent
than the current legal requirements. In addition, to enable even greater focus on the individual areas of responsibility, the Nominating, Compensation and
Sustainability Committee was divided and those responsibilities were assigned to the newly-formed Compensation Committee and Nominating, Corporate
Governance and Sustainability Committee.
As the name indicates, the second of those Committees was assigned responsibility for strategic oversight of sustainability-related issues. The Group Executive
Council (GEC) — the highest decision-making body outside of the Board of Directors — defines the sustainability guidelines and sets environmental, social and
economic targets for the Group. The Sustainability Unit has operational responsibility for promoting a culture of economic, social and environmental responsibility.
In 2012, we also took steps to further leverage the intrinsic value of our Group through increased integration of the individual operating entities. Continuing
the simplification process initiated more than two years ago, Fiat Industrial and CNH signed a merger agreement that will result in the creation of a new entity.
That strategic step will further strengthen the Group’s independence, efficiency and potential for growth, leading to a fully-integrated global capital goods player
capable of competing at the very top of its sector. One thing that will not change is our determination to ensure that the new organization remains committed
to the values and principles that have guided us this far. In fact, we expect those values and principles will be even stronger within a fully-integrated organization.
In parallel with that integration, we have also initiated an internal reorganization that reflects the international profile of our businesses. That reorganization will
lead to greater alignment of our operating activities, in addition to facilitating the integration process. Some of the targets in the Group’s sustainability plan have
been revised to reflect the organizational changes and others will be revised during 2013 to take the new Group structure into account.
Fiat Industrial makes products to meet the needs of people at work and that is why we believe we have a responsibility to offer them innovative products that
meet the highest safety standards. Our products are designed to simplify the activities of our customers and increase their productivity, while minimizing the
environmental impacts. Fully aware of our responsibility to contribute to mitigating climate change, the Group has nearly 6,000 people working daily at 49
research centers worldwide to develop solutions that will improve the efficiency of Fiat Industrial vehicles and equipment and reduce CO2 emissions.
A major recognition of that commitment came from the European Investment Bank which in July – following a comprehensive evaluation of our R&D activities
and their orientation towards the environment – gave Fiat Industrial €350 million in financing. The proceeds are being used for projects aimed at the study and
application of innovative solutions to increase the reliability and productivity of our vehicles, while maintaining the highest standards in sustainability.
Several leading rating agencies also recognized the Group’s commitment and achievements. In 2012, for the second consecutive year, the Group was named Industry
Leader in the Industrial Engineering sector of the prestigious Dow Jones Sustainability Indexes (DJSI) World and Europe, which only admit companies that are best in
class in terms of the sustainable management of their businesses. We scored 85/100 compared to an average of 51/100 for the sector. Fiat Industrial was also admitted to
the Italy 100 Carbon Disclosure Leadership Index (CDLI) with a score of 91/100 based on the report published by the Carbon Disclosure Project (CDP), an organization
backed by 722 institutional investors holding US$87 trillion in assets that ranks companies based on disclosure relating to their climate change mitigation strategies.
Our commitment toward people and the environment is also demonstrated in the way we conduct our manufacturing activities. A 33% reduction in the
accident frequency rate and 29% reduction in the severity rate compared with 2011 are the result of our continued focus on maintaining and improving the
standard of safety in the workplace.

4
Significant results were also achieved in terms of reducing the environmental impacts of our production processes. We continued group-wide implementation
of World Class Manufacturing standards and at year-end 2012 the program covered 83% of our manufacturing activities worldwide. The level of CO2 emissions
linked to our production processes was reduced by 9% over 2011 as a result of initiatives to improve energy efficiency and the introduction of the new ISO
50001 standards. At year-end 2012, 23 of the Group’s plants, accounting for 70% of total energy consumption, were ISO 50001 certified.
All of our businesses continued to strengthen their market leadership with innovative products and solutions.
During the year, CNH’s agricultural and construction equipment brands further expanded their offering of Tier 4A/Stage IIIB-compliant models, confirming their
commitment to offer eco-compatible products with low CO2 emissions and fuel consumption levels and improved performance.
Iveco presented the new Stralis Hi-Way, which was voted “Truck of the Year 2013” by a panel of journalists from 25 leading automotive sector magazines
from across Europe. Among the strong points of the new Stralis are the new High Efficiency SCR (HI-eSCR) technology, which significantly reduces polluting
emissions for diesel engines bringing them into line with future Euro VI standards, and the vehicle’s lower total operating cost, including a 10% reduction in fuel
consumption over the previous model.
Building on the SCR Only technology, the HI-eSCR system developed by FPT Industrial has enabled CNH and Iveco to introduce vehicles that are already
compliant with the future Tier 4B/Stage IV and Euro VI emissions standards. With that highly-efficient system, vehicles can achieve emissions within the limits of
those standards without the use of exhaust gas recirculation systems. With more than 20,000 units produced to date, FPT Industrial is also leader in the design
and production of engines that run on natural gas – a fuel of major strategic importance in the fight against climate change.
On the social front, Fiat Industrial is also committed to development that is in harmony with local communities and it is there to provide extra support in
moments of particular need. After the earthquake in Emilia Romagna (Italy), for example, Fiat Industrial acted immediately to help local inhabitants by making
manpower and equipment available to the Civil Protection authorities managing the relief effort. CNH organized an emergency rescue unit consisting of light
and heavy earthmovers, 5 mobile service vans, vehicles for hauling debris, as well as 20 operators and mechanics. Iveco provided a mobile service unit and a
team of technicians that was available around the clock to ensure vehicles involved in recovery activities remained in good working order, as well as supplying
spare parts. FPT Industrial supplied a generator unit that was used to provide power for one of the tent cities. In addition to that initial relief effort, employees
also donated funds to the victims and Group companies matched their donations.

During 2012 the Group continued to build on its rich legacy of values and know-how, while at the same time laying the groundwork for a further transformation
and the beginning of another momentous chapter.
This strong orientation toward the future – constantly guided by our solid values and commitment to addressing the needs of our stakeholders – is a
fundamental aspect of our leadership. As the Group goes forward, it will continue to provide us a competitive advantage and ensure that we remain major
protagonists in a world that is constantly changing.

/s/ Sergio Marchionne

Sergio Marchionne
CHAIRMAN

5
ACTING RESPONSIBLY

8 A year of sustainability: facts and figures

10 Group profile
22 Stakeholder engagement
26 Sustainability Plan
 ACTING A YEAR
RESPONSIBLY OF SUSTAINABILITY:
FACTS AND FIGURES

A YEAR OF SUSTAINABILITY:
FACTS AND FIGURES

Fiat Industrial Group confirmed 6,488 active Compliance with Euro VI

Sector Leader patents owned standard prior to deadline
in the Dow Jones Sustainability
World and Europe Indexes thanks to HI-eSCR technology
for the second consecutive year

+16% in the number

of employees
active in R&D

73% of the members +75% of agricultural equipment

of the Board of Directors already compliant with
independent Tier4A/Stage IIIB standards

€350 million allocated +21% in investment on +46% of natural

by the EIB for projects on Research and gas-powered vehicles
energy efficiency Development sold worldwide
and reducing
CO2 emissions

8
 Acting responsibly
-9% in total 375 thousand suggestions 180 thousand contacts
CO2 emissions from employees under the through Customer
WCM program Centers

-5% in water
withdrawal €3.8 million for local
per hour of production communities

-33% in accident
frequency rate

€36 million spent on €15.2 million invested 56 plants OHSAS

protecting the environment in employee training 18001 certified

9
 ACTING Group profile
RESPONSIBLY

Group profile
Fiat Industrial S.p.A. is a global leader in the capital goods sector. Established in January 2011 following the demerger of
Fiat S.p.A., the Group designs, manufactures and sells vehicles, equipment and innovative systems for agriculture, and
construction (CNH), commercial vehicles and passenger transport (Iveco) and powertrains (FPT Industrial). CNH is a
global company, with an extensive range of agricultural and construction equipment. It occupies a prominent position
across many geographical areas and product categories in both of these industries. Iveco is one of the world’s largest truck
manufacturers (including joint ventures), with a leading position in the Chinese market. Finally, FPT Industrial is a major
manufacturer of industrial powertrain systems.
Fiat Industrial Group employs 68,257 individuals in 64 plants across the world. The Group maintains commercial relations
with more than 190 countries and its products are distributed both directly and through dealerships and authorized
service networks, which also provide after-sales assistance. The innovation process is shared with all Group companies,
and is carried out in 49 Research and Development centers located across five continents. Five of these centers are in
Latin America (see also pages 73-74).
As at year-end 2012, revenues totaled €25.8 billion, up 6.2% on the previous year. Trading profit totaled €2,079 million,
an increase of €393 million over 2011.

CNH FPT IVECO

INDUSTRIAL

GRI-G3.1 87.4% 100% 100%

2.2, 2.3, 2.5, 2.7, 2.8, 3.6, EC4
Web
www.fiatindustrial.com
Glossary AGRICULTURAL & POWERTRAIN TRUCKS &
WCM
CONSTRUCTION ACTIVITIES COMMERCIAL
EQUIPMENT VEHICLES

10
In 2012, for the second year running, Fiat Industrial Group was confirmed as Sector Leader in the Dow Jones Sustainability
World and Europe Indexes (see also pages 78-79). These results reflect the way in which, through its various companies,

Acting responsibly
Fiat Industrial Group is committed to contributing to the economic development of the countries in which it operates,
whilst ensuring respect for people and the environment.
CNH and Iveco share a similar customer base and business model. Their customers use Group products for their normal
business operations, and for this reason, the global operating costs of these products must be competitive. Users of
commercial vehicles and agricultural or construction equipment also demand high levels of reliability, performance and
efficiency, and these elements drive all development processes across the Group. Within the product portfolio offered by
Fiat Industrial Group companies, customers are provided with a wide range of solutions tailored to their individual needs
(see also pages 84-105, 214-223). FPT Industrial’s powertrain activities, mainly used by CNH and Iveco brands, allow it
to achieve important economies of scale: new engine technology can be used across various product types, affording
a competitive edge in terms of manufacturing costs and component purchase. Other advantages are gleaned from the
capacity to use the same technology for various geographical regions and for similar industrial processes, as envisaged
in the World Class Manufacturing (WCM) program. Active in 53 Group plants, the WCM program is applied across all
manufacturing processes. The program focuses on the ongoing improvement of performance, through the engagement
of all corporate functions (see also pages 107-111).

Highlights Public funding awarded to Fiat Industrial Group by country

Fiat Industrial Group worldwide (€ million) Fiat Industrial Group worldwide
2012 2011 2010
Net revenues 25,785 24,289 21,342
Trading profit/(loss) 2,079 1,686 1,092 Italy
Profit/(loss) for the year 921 701 378 62.06%
Investments in tangible Others
1,349 993 872
and intangible assets(1) 0.53%
R&D expenditure(2) 895 742 652
Argentina
Net industrial (debt)/cash (1,642) (1,239) (1,900) Spain
2.66%
Available liquidity 6,206 7,295 5,710 4.61%

Employees at year end (no.) 68,257 66,998 62,123

Brazil France
Plants (no.) 64 64 68 29.96% 0.18%

Public funding awarded to Fiat Industrial Group

Fiat Industrial Group worldwide (€ million)
2012 2011 2010
Grants 3 3 7
Loans 561 204 443
of which subsidized loans 211 204 443
of which EIB(3) loans 350 - -
Total public funding 564 207 450

(1)
Net of vehicles sold under buy-back commitments and leased out.
(2)
Includes capitalized R&D and R&D charged directly to the income statement.
(3)
European Investment Bank. 11
 ACTING Group profile
RESPONSIBLY

GLOBAL PRESENCE

NORTH
AMERICA

28.5% ITALY
Revenues

16.9% 7.9%
Employees Revenues

10 27.2%
Plants Employees

13 14
R&D centers Plants

10
R&D centers

MERCOSUR

14.9%
Revenues

14.2%
Employees

9
Plants

5
R&D centers

12
 Map of principal international agreements(1)

EUROPE
ITALY

Acting responsibly
(excluding Italy)
FPT Industrial and Daimler Group
31.8% Strategic collaboration and supply of light diesel engines
Revenues FPT Industrial and Perkins (Caterpillar Group)
Strategic collaboration and supply of light diesel engines
34.5%
Employees
EUROPE
23 CNH and BNP Paribas
Plants JV (49.9%) for the provision of financial services to CNH’s end customers

18 EUROPE and LATIN AMERICA

R&D centers
FPT Industrial and Ford Trucks
Strategic collaboration and supply of heavy diesel engines

CHINA
Iveco and Nanjing Automotive Corporation
JV (50%) for the manufacture and sale of light and medium commercial
vehicles
Iveco and SAIC
JV (50%) for the manufacture and sale of heavy vehicles
Iveco, FPT Industrial, SAIC and Chongqing
JV (60% directly and indirectly) for the manufacture and sale of engines
and transmissions

PAKISTAN
CNH and Al Futtaim
Listed JV Al-Ghazi (43.2% CNH and 50% Al Futtaim) for the manufacture
and distribution of New Holland Agriculture brand tractors in Pakistan

REST OF the RUSSIA

WORLD
CNH and Kamaz JSC
Two JVs for the manufacture (50%) and distribution (51%) of agricultural
16.9% and construction equipment in the Russian Federation
Revenues

7.2% TURKEY
Employees CNH and Koç Holding
Listed JV (37.5% CNH and 37.5% Koç Holding) for the manufacture
8 of tractors under the Case IH Agriculture and New Holland Agriculture
Plants
brands, and import and distribution of agricultural equipment
3
R&D centers (1)
Current as at 12 February 2013.

13
 ACTING Group profile
RESPONSIBLY

AGRICULTURAL and construction equipment

CNH
CNH is a world leader in the agricultural and construction equipment industries, with roots dating as far back as the
1800s. It engineers, manufactures, markets and distributes equipment across five continents. CNH employs more than
33,800 individuals, operating in 34 plants and 25 Research and Development centers worldwide. CNH delivers state-
of-the-art technology to customers in its core business sectors, providing adaptable, high-quality products which ensure
optimal productivity, along with full service support through CNH Parts & Service, and a comprehensive range of financing
solutions tailored to the individual customer profiles, through CNH Capital. CNH operates globally and is present in
around 170 countries through a commercial network of 11,500 dealers and distributors.

Highlights
CNH worldwide (€ million)
2012 2011 2010
Net revenues 16,056 13,896 11,906
Trading profit/(loss) 1,566 1,154 755
Investments in tangible and intangible assets(1) 758 494 446
R&D expenditure(2) 520 384 346

Employees at year end (no.) 33,826 32,693 28,831

Agricultural Equipment
Case IH is a world-class leader in agricultural equipment and technologies that have been proven in the field. Its products
and systems are developed according to the needs of producers the world over. Case IH is accustomed to working with
its own products daily, and as such, retains a full awareness of their capabilities. From engineers to field staff to dealers,
Case IH commits more professionals to the field each day, helping producers maximize the output of their equipment and
ensuring that it meets their needs. Case IH offers tilling, planting, spraying, precision farming and harvesting equipment
that enables farmers to start working earlier and continue for longer, planting faster and more accurately, and maximizing
returns. Working alongside producers, Case IH strives to reduce working constraints.

GRI-G3.1
2.2, 2.3, 2.5, 2.7, 3.6
Web
www.cnh.com
Glossary
Biodiesel, SCR, Tier

(1)
Net of vehicles leased out.
14 (2)
Includes capitalized R&D and R&D charged directly to the income statement.
Since 1895, New Holland Agriculture has been committed to providing solutions that improve farming efficiency and
productivity through the use of accessible technology. In 2006, the Clean Energy Leader ® strategy was launched for the

Acting responsibly
active promotion of renewable fuels, emissions reduction systems and sustainable agricultural technology. Founded on the
belief that innovative solutions can help free farmers from the constraints of fossil fuels, this strategy is based on the use of
biodiesel, biomass, ECOBlue™ SCR technology to meet Tier 4 emissions standards, conservation agriculture and the Energy
Independent Farm concept, featuring the NH²™ hydrogen tractor. New Holland offers cash crop producers, livestock
farmers, contractors, vineyards and groundcare professionals an extensive choice of easy-to-operate tractors, harvesters,
hay and forage tools, materials handling solutions, sprayers, planting and seeding equipment. New Holland aims to foster a
close relationship with their customers, and to establish itself as every farmer’s reliable and sustainable partner.
Steyr boasts more than 60 years of industry-leading technology from Austria. It specializes in tractors which offer
optimum quality, exceptional comfort and high value retention. The impressive array of Steyr tractors in the range feature
the very latest in technical innovation for agricultural, forestry and municipal applications.

Construction Equipment
Customers worldwide rely on Case Construction Equipment and dealers for full-service solutions. Case equipment
is known for its productivity, fuel efficiency, operator comfort and serviceability. Using advanced design and engineering,
Case ensures consistently powerful performance and maximum uptime, while maintaining fuel efficiency and reducing
emissions. With the highest concern for operator comfort, Case’s ergonomic vehicle design offers enhanced visibility, low
vibration and minimum noise levels. However, Case is aware that customers require more than just great equipment;
through its worldwide network of dealers, Case customers have access to trusted advisors who can help them maximize
their machine uptime and increase profitability. Customized service solutions are based on equipment use and application.
Case provides customers with the equipment, support and flexible options they need.
In partnership with its global dealer network, New Holland Construction provides a full line of products and
services tailored to customer applications and requirements for productivity, safety, environmental performance and
fuel efficiency. New Holland Construction’s product line encompasses specialized offerings for key industry sectors.
New Holland Construction’s Built Around You approach to supporting its customers extends to all areas of business and
to the full life cycle of their equipment. The company supports sustainable practices and invests in green technologies,
providing equipment with emissions and noise levels well below regulatory levels. It is committed to ensuring the safety of
end users, and invests in this at every stage, from product development to training on best safety practices.

15
 ACTING Group profile
RESPONSIBLY

TRUCKS AND COMMERCIAL VeHiclES

Iveco
Iveco is a global manufacturer of trucks and buses as well as special vehicles for firefighting and civil protection. The
company was founded in 1975 through the merger of five leading European brands, and now operates in over 100
countries, through the dealer network, joint ventures, licensees and investee companies. Iveco is committed to safe,
efficient and sustainable mobility, and the company works to develop technological solutions that respect both people and
the environment. Iveco manufactures a wide range of vehicles, covering the heavy, medium and light commercial sectors,
city and intercity buses and coaches, firefighting and civil protection, off-road trucks and mining and quarry machines. The
company employs 26 thousand individuals worldwide in 20 plants and 18 Research and Development centers. In addition,
Iveco Capital offers financial services for the purchase, lease and rental of its vehicles. Iveco has been investing in the
development of alternative drive systems for over 30 years, and currently offers Enhanced Environmental Vehicle (EEV)
engines running on diesel or natural gas on its entire range of vehicles, from the light-duty Daily to the mid-size Eurocargo
and heavy-duty Stralis and Trakker models.

Highlights
Iveco worldwide (€ million)
2012 2011 2010
Net revenues 8,924 9,562 8,307
Trading profit/(loss) 469 490 270
Investments in tangible and intangible assets(1) 439 343 273
R&D expenditure(2) 289 254 214

Employees at year end (no.) 26,307 26,202 25,583

GRI-G3.1
2.2, 2.3, 2.5, 2.7, 3.6
Web
www.iveco.com
Glossary
EEV

(1)
Net of vehicles leased out.
16 (2)
Includes capitalized R&D and R&D charged directly to the income statement.
Iveco Irisbus is a major European manufacturer of public and private transit vehicles. Present in over forty countries,
it works closely with European public transport providers to offer solutions designed to improve passenger transport.

Acting responsibly
Its product range consists of touring coaches, urban and intercity transport, mini-buses and school buses. Manufacturing
processes include the testing of new fuels and new propulsion systems designed to minimize the environmental footprint and
global operating costs of its vehicles. Iveco Astra has garnered a reputation as a premium manufacturer of construction
and mining equipment. Acquired by Iveco Group in 1986, Iveco Astra has over 65 years’ experience building mining and
construction machinery including rigid and articulated dump trucks and specialized vehicles machines that operate in
challenging and remote quarries and mines, moving heavy materials. Ongoing research has led to the development of
efficient technologies and to the reduction of emission levels, Iveco Magirus is an international authority on firefighting
and emergency vehicles. Founded by German fire chief Conrad Dietrich Magirus in 1864, the company has nearly 150
years of expertise in manufacturing vehicles that provide relief in cases of fire threat, hazard and natural disaster. As the
inventor of the turntable ladder, a device present on all major firefighting trucks, Iveco Magirus places great importance on
the development of new technologies that allow firefighters to carry out their tasks safely and efficiently. Iveco Defence
Vehicles develops and manufactures specialized vehicles for defense missions and civil protection. Its headquarters are in
Bolzano (Italy), where vehicle production is divided into four categories: Logistic trucks, Tactical trucks, Multirole vehicles
and Armored vehicles. Iveco Defence Vehicles offers advanced anti-ballistic, anti-mine and other life-saving technology,
together with maximum mobility in extreme circumstances.

17
 ACTING Group profile
RESPONSIBLY

POWERTRAIN TECHNOLOGIES

FPT Industrial
FPT Industrial is dedicated to the design, development, manufacture and sale of engines, transmissions and axles. With more
than a hundred years of experience in the industry, FPT Industrial has always been committed to introducing innovative
technological solutions which offer optimum performance, reduce fuel consumption and minimize polluting emissions. FPT
Industrial employs approximately eight thousand people worldwide, across ten plants and six Research and Development
centers, located in Europe, China, North America and South America. The global presence of the company and the high level
of multiculturalism are complimented by the distribution network, with more than a hundred dealerships and 1,300 service
points present in approximately a hundred countries. FPT Industrial’s product range is extensive, featuring engines ranging
from 2.3 to 20 liters with an output of 42 to 1,006 hp, and five and six-speed longitudinal transmissions with a maximum
torque of 300 to 470 Nm. The range is completed by engine versions which use alternative fuels, including those running
on natural gas and engines compatible with biodiesel up to 20%. In FPT Industrial research centers, testing is carried out
on solutions that allow engine emissions to be reduced, meeting Euro VI and Tier 4B regulations on emissions in advance.
In addition, the study of combustion, thermal and mechanical loading have allowed the company to produce engines with
a more efficient output. FPT Industrial is also testing solutions using second generation biodiesels and high-quality synthetic
fuels which can be extracted from various plant types and biomasses.

Highlights
FPT Industrial worldwide (€ million)
2012 2011 2010
Net revenues 2,933 3,220 2,415
Trading profit/(loss) 142 107 65
Investments in tangible and intangible assets 151 155 152
R&D expenditure(1) 86 104 92

Employees at year end (no.) 8,029 8,008 7,707

GRI-G3.1
2.2, 2.3, 2.5, 2.7, 3.6
Web
www.fptindustrial.com
Glossary
Biodiesel, Euro VI, Tier

18 (1)
Includes capitalized R&D and R&D charged directly to the income statement.
INTEGRATION OF THE ACTIVITIES OF FIAT INDUSTRIAL
AND CNH GLOBAL

Acting responsibly
On 30 May 2012, Fiat Industrial S.p.A. (Fiat Industrial) invited the Board of Directors of CNH Global N.V. (CNH),
in which Fiat Industrial holds an 87% stake, to explore the benefits of a merger of the two companies into a
newly-incorporated Dutch company at exchange ratios determined with reference to the undisturbed market prices of
Fiat Industrial and CNH shares prior to the transaction being announced (i.e., March/April 2012). The objective of the
transaction is to simplify the Group’s capital structure by creating a single class of liquid stock, with a primary listing in
New York and a secondary listing in Europe (subsequently identified as Borsa Italiana in Milan), thereby establishing a
true peer to the major North American-based capital goods players in both scale and capital market appeal.
On 26 November, 2012 – following completion of negotiations between Fiat Industrial and the Special
Committee formed by CNH Global N.V.’s Board of Directors – Fiat Industrial and CNH announced that they
had entered into a definitive merger
agreement. On the basis of the agreement,
Fiat Industrial and CNH will be merged into a
newly-incorporated Dutch company (NewCo),
with Fiat Industrial shareholders receiving one
NewCo share for each Fiat Industrial share
held and CNH shareholders receiving 3.828
NewCo shares for each CNH share held.
The transaction is subject to the customary
closing conditions, including a cap on the
exercise of withdrawal rights by Fiat Industrial
shareholders and opposition rights by Fiat
Industrial creditors of €325 million in aggregate.
It is also subject to the approval of shareholders
of both Fiat Industrial and CNH. Fiat Industrial,
which holds approximately 87% of CNH, has
stipulated that it will vote its CNH shares in
favor of the transaction. Additionally, NewCo
will adopt a loyalty voting structure, whereby
the shareholders of Fiat Industrial and CNH
that are present or represented by proxy at the
respective shareholder meetings at which the
merger transaction is approved, and continue
to hold their shares until the effective date GRI-G3.1
2.9
of the merger, may elect to receive common Web
shares in NewCo registered in a special section www.fiatindustrial.com
Glossary
of the company’s share register that entitles Stakeholders
them to two votes. Following completion of the
merger, new shareholders will also be able to

19
 ACTING Group profile
RESPONSIBLY

earn a double vote by holding their shares continuously for a period of at least three years. The structure is intended
to facilitate a stable shareholder base and reward long-term share ownership, while allowing the Group enhanced
flexibility to pursue strategic opportunities in the future.
In parallel with the merger program, an internal management reorganization has been launched with the aim of improving
and coordinating Group business operations. Consistent with the objective of enhancing the operational integration of Fiat
Industrial and CNH, a Group Executive Council (GEC) was formed in November 2012 which is composed of four main
groupings: the first of these is composed of four Regional Operating Groups which oversee the production and sale of
Agricultural Equipment, Construction Equipment and Commercial Trucks, plus Powertrain technologies (FPT Industrial).
Each group is headed by a Chief Operating Officer (COO) who drives the organization via a regional Management Team,
and who reports to the Group COO. The second grouping reflects the Group’s focus on its brands: each group manager
is tasked with enhancing and developing an appropriate brand portfolio and with implementing commercial and marketing
strategies tailored to each of the Group’s operating regions. The third group is composed of industrial leaders who drive
a rigorous and consistent business approach across the four operating regions, optimizing Group decisions on capital
allocation. The fourth grouping is made up of individuals who occupy key corporate positions in the Group, including the
Chief Financial Officer and the Chief Human Resources Officer.

20
21
Acting responsibly
 STAKEHOLDER
ENGAGEMENT
With a presence that extends across 190 countries around the world, the Group’s
strategy is to maintain ongoing and solid relationships with all its stakeholders. These
are based on constant dialogue and active involvement and bear witness to the
Group’s responsibilities in the social sphere it interacts with.

22
 Stakeholder ACTING
engagement RESPONSIBLY

Stakeholders carry a wide range of interests. Establishing and maintaining stable and lasting relationships is a crucial
element in creating shared value in the long term. By understanding specific needs and priorities, the Group can tackle any

Acting responsibly
issues that may arise in advance and go through with the actions it undertakes in the interest of its stakeholders.
Promptly identifying who its stakeholders are and organizing the most effective channels, as well as constantly monitoring
expectations, needs and opinions, are the first steps in setting an effective engagement process in motion.
Through specific functions, the Group uses a proactive approach with the many interlocutors it maintains relations with
throughout the world, promoting constant dialogue and being receptive to needs. In fact, the Group is aware that such
exchange is an opportunity for mutual growth and enrichment.
A process founded on listening and participation is a tool in building an environment of cooperation and trust in the
communities one works in.

Materiality Index
Fiat Industrial Group

Environment
Families
Customers
of employees Institutions
Employees Stakeholders
Stakeholders Company Financial and that may
influenced and professional Investors sustainability analysts influence
by the Group’s organizations the Group’s
activity Dealer and
and associations activity
service network

Local communities Suppliers and Media

partners

Trade unions

23
 ACTING Stakeholder
RESPONSIBLY engagement

Map of stakeholders
The map of stakeholders and their expectations has been generated from the results of an internal survey involving
corporate structures in charge of managing day-to-day relationships with stakeholders. It assessed the relevance of each
stakeholder to the company and their significance to the activities carried out. The map shows: the corporate functions
responsible for ongoing dialogue with the various stakeholders, the engagement tools used, the main expectations
identified and reference to the sections of the Sustainability Report that address each aspect.

Stakeholder Corporate function(1) Tools and interaction channels Stakeholder expectations References pages
n Public institutions: Institutional Relations n periodic ad hoc meetings on corporate objectives n responsiveness and proactiveness towards 30, 59-60, 76-77
government, local authorities, and decisions projects presented 90-100
public agencies, regulatory bodies, n participation in working groups, development of joint n collaboration and access to information 126-128
international institutions, trade projects and alliances n satisfaction of tender requirements 147-148
associations and n ad hoc engagement for R&D projects 196-198
non-governmental organizations n collaboration on R&D projects n technical support on specific industry-related issues 203-205
n initiatives to promote environmental issues 240-251
n Environment Environment, n dialogue with institutions and environmental n inclusion of environmental aspects in business 29-38
Health and Safety associations strategies (e.g., combating climate change) 60
n strengthen environmental management through: 84-151
dedicated organizational structure, environmental 259-268
performance monitoring systems, management
objectives and action plans
n Employees Human Resources, n daily dialogue n clarity of organization and protection in periods 38-42
Environment, n people satisfaction surveys of market uncertainty 154-205
Health and Safety n meetings to communicate expected and actual n clarity of objectives and reward system 258
performance levels and professional development path n information on Group strategies and results 268-274
n training and professional development
stimulating and safe work environment
n Professional organizations n meetings to share and align with corporate objectives n indirect participation in the decision-making process 59-60
and associations and decisions n developing sense of belonging
n access to information
n Employees’ families n participation initiatives (Children’s Christmas, Family Day, etc.) n indirect participation in corporate life 191-194
n targeted initiatives (nursery school, academic scholarships,
FASIFIAT)
n Trade unions and employee Industrial Relations n institutional meetings and other talks pursuant to legal n social dialogue in line with the applicable legal 40
representatives or contractual provisions at the plant, company, or contractual provisions under which from time 176-177
regional, national or European levels to time and dependent on the country, the matters 195-205
n trilateral meetings (company, trade unions and at issue and the level of dialogue trade unions
government bodies) on matters of particular importance or employee representatives have the right
n ad hoc meetings at plant, company, regional or national level to information, consultation and/or negotiation.
As part of a participatory system of industrial
relations, joint committees have been established
in various countries to focus on specific topics
of interest
n Dealer and service network Sales n daily contacts and periodic meetings with the network n complete and rapidly accessible product information 38
n two-way communication through the web and dedicated n business profitability 42-43
phone lines n developing sense of belonging 151
n individuals responsible for monitoring the network and n quality and availability of products/parts/services 206-213
ensuring fulfillment of contractual standards n competitive prices
n dealer development programs n expansion of product lines
n programs to support dealers, including training, definition n expansion of services offered to customers, including
of standards, financing and promotional campaigns financial services
n support services for dealers and rapid response
to breakdowns

(1)
The names provided in the index for corporate functions have, in some cases, been altered to make them more self-explanatory and, therefore, do not necessarily coincide
with the official name given to the corresponding activity or area of responsibility.

24
Stakeholder Corporate function Tools and interaction channels Stakeholder expectations References pages
Prospective and existing Marketing market research quality, reliability and safety of products 32

Acting responsibly
n n n

customers, and opinion leaders and Customer Care n focus groups n competitive prices and availability of credit 43-44
n customer satisfaction surveys n speed and efficiency of assistance 100-103
n above-the-line and below-the-line communication n professionalism and courteousness in direct contacts 214-223
channels and through dealers 224-227
n two-way communication through: web, direct mailing, n increase in products and services offered
dealerships, toll-free numbers, etc. to customers (including financial services)
n events (product launches, etc.) and participation
in exhibitions, trade fairs and conventions
n Suppliers and commercial Purchasing n daily relationship through buyers n continuity of supply 45-46
partners n conventions n fulfillment of contractual conditions 228-239
n technology days
n Local communities: Miscellaneous entities n meetings with representatives of associations, n responsiveness to project proposals and individual 46-47
religious, cultural, socio-political, organizations or local communities requests for assistance 76-77
scientific and technological n definition of actions or projects, managed directly n contributions and support for initiatives over 193
research, health system, schools or in partnership medium-to-long term 238
and universities, non-governmental n collaboration on R&D projects n satisfaction of tender requirements for R&D projects 240-251
organizations, nonprofit organizations n cultural exchange programs n access to information
n Financial community: traditional Investor Relations, n Annual General Meeting n expand and reinforce knowledge of the Group 26-47
and socially responsible Corporate Affairs and n price-sensitive disclosures and information and its businesses 68-71
investors Sustainability Unit n quarterly conference calls n value creation (return on investment, sustainability 78-80
n seminars, industry conferences, roadshows and meetings of the business)
n daily dialogue (meetings, telephone, email) n transparent and responsible management
n Investor Relations section of the Group website

n Journalists and media Communications n daily dialogue n availability, timeliness and accuracy Company website
n presentations and press conferences of information, transparency
n meetings
n the Group and company websites

BREAKDOWN OF VALUE ADDED

The value added through the activities of the Group and distributed to its various stakeholders totaled €5,709 million in 2012, equivalent to 22% of revenues
(compared with 21% in 2011).

Direct economic value generated Breakdown of value added

Fiat Industrial Group (€ million) Fiat Industrial Group (€ million)
2012
Consolidated 2012 revenues 25,785 Local communities
4
Income of financial services companies (789)
Government grants (current and deferred/capitalized),
release of provisions, other income 268 Reinvested in the Group
Other income 825 430
Direct economic value generated 26,089 Shareholders
Cost of materials (18,156) 480
Depreciation & Amortization (1,000) Employees
Other expenses (1,224)
Government & 3,464
Public Institutions
Value added 5,709 531

Finance providers
800

25
 SUSTAINABILITY PLAN
Fiat Industrial Group’s desire to contribute to development in harmony with
people and the environment is embodied by the Sustainability Plan. Through
actions, results and targets, the company provides clear and direct communication
of its commitment to stakeholders.
The Plan focuses on certain priority areas:
n eco-friendly products
n protection of the environment and natural resources
n employee welfare
n relationship with partners and local communities.
It is updated annually to report the status of existing projects and establish
new targets to ensure continuous improvement, essential for long-term growth.

26
 SUSTAINABILITY ACTING
PLAN RESPONSIBLY

CORPORATE GOVERNANCE AND SUSTAINABILITY p. 28-29

Acting responsibly
n Maintain a best-in-class system of governance and risk management

PRODUCT p. 29-32
n Continue to reduce polluting emissions, fuel consumption and CO2 emissions
n Promote use of alternative fuels and renewable energy sources
n Manage recovery, recycling and reuse rates
n Continue to offer products with high safety standards

MANUFACTURING PROCESSES p. 32-35

n Spread the culture of excellence through the WCM program
n Promote environmental awareness within the Group
n Continue to reduce environmental impact and optimize energy performance

LOGISTICS p. 36-37
n Reduce environmental impact of logistics

NON-MANUFACTURING PROCESSES p. 37-38

n Reduce environmental impact of non-manufacturing processes

HUMAN RESOURCES p. 38-42

n Promote development of human capital
n Attract and retain the best talent
n Offer equal opportunities

n Continue to promote and safeguard health and safety

n Promote employee welfare

DEALER AND SERVICE NETWORK p. 42-43

n Develop know-how on specific environmental and safety issues

CUSTOMERS p. 43-44
n Enhance customer experience

SUPPLY CHAIN p. 45-46

n Promote social and environmental responsibility among suppliers

COMMUNITY p. 46-47
n Support local communities and professional development of young people

27
 ACTING sustainability
Key
RESPONSIBLY plan
Target exceeded
Target achieved
or in line with plan
Target
partially achieved
Target postponed

CORPORATE GOVERNANCE AND SUSTAINABILITY

BEST-IN-CLASS SYSTEM OF GOVERNANCE
Commitment: Develop and spread a company culture of sustainability
Actions 2012 Results Targets
Fiat Industrial Implementation of an integrated sustainability 2013: adaptation of the sustainability management system
Group management system which incorporates environmental to the new Fiat Industrial structure
and social issues in business decisions
Increase in the number of Key Performance Over 200 KPI monitored 2013: alignement of the KPIs monitored to the
Indicators (KPI) monitored and their update based on requirements of new reporting standards (e.g., GRI-G4)
information requested by sustainability rating agencies
and reporting standards
Alignment of the reporting on sustainability issues 2013: conducting of a feasibility study of integrated
to best practice reporting
Continuous alignment of compliance system with 34 audits performed, including business ethics 2013: continuation of audit plan, including business ethics
international best practice and legal framework reviews and specific anti-bribery and anti-corruption and anti-bribery reviews
reviews
Support given to the Legal function in assessing
compliance with local anti-bribery laws in UK and
Spain. In Spain, recommendations adopted by
the Board of Directors of Iveco Espana
Increase in awarness of the Whistleblowing 56 opening meetings (approx. 350 attendees) held 2013: presentation of existing ethics policies and
Procedures in which whistleblowing procedures were presented whistleblowing procedure in the opening meeting of every
new audit
Continuous improvement in sustainability For the second consecutive year, Fiat Industrial S.p.A. 2013: maintaining of Group’s position as a sustainability
performance named Industry Leader in the Dow Jones Sustainability leader
World and Europe Indexes.
Fiat Industrial also included in the following indices:
Vigeo World 120, Vigeo Europe 120, MSCI WORLD
ESG, MSCI WORLD ex USA ESG, MSCI EAFE ESG,
MSCI EUROPE ESG, STOXX® Global ESG Leaders,
STOXX® Global ESG Environmental Leaders, STOXX®
Global ESG Social Leaders, EURO STOXX® ESG
Leaders 50, FTSE ECPI Italia SRI Benchmark and FTSE
ECPI Italia SRI Leaders, ECPI Ethical EMU Equity,
Carbon Disclosure Leadership Index Italy 100

Commitment: Maintain sustainability as a key corporate objective

Actions 2012 Results Targets
Fiat Industrial Incorporation of sustainability targets in performance Target applied to 44 specific project leaders for 2013 consolidation and implementation in the new Fiat
Group management system sustainability plan projects Industrial structure

Commitment: Ensure best-in-class standards of Group governance

Actions 2012 Results Targets
Fiat Industrial Commitment to submit a proposal to the Recommendations adopted and two women elected
Group shareholders with the aim of introducing gender into the Board of Directors, out of a total of eleven
diversity on the Board of Directors

28
 Actions 2012 Results Targets
Fiat Industrial Provision of training and expertise to board members 2013: provision of regular updates on Fiat Industrial’s

Acting responsibly
Group operations, provision of training specific to the tasks of the
board committees, and organization of site visits

Commitment: Continuously update the risk management system to remain aligned with best practice
Actions 2012 Results Targets
Fiat Industrial Continuous updating of the Enterprise Risk ERM risk drivers integrated with water related
Group Management (ERM) system risks
Enhancement of capabilities and tools available to the Climate change: new quantitative methodology
Group for identifying, measuring, analyzing and treating developed for identifying the main sites potentially
pure risks with a focus on risks related to climate exposed to meteorological risks, including specific
change, earthquakes, other environmental factors approach for:
u rain water risks 2013: pilot test in one major industrial site which suffered
several losses in the last few years
u snowstorm, rainstorm and hailstorm risks, based on 2013: enlargement of the perimeter monitored by meteo
the adoption of a new meteo alert service alert service covering wide geographical areas in Italy
Earthquakes: research project fine-tuned 2014: extension and fine tuning of methodology to
with the development of a standard curve based significant Italian sites
analysis methodology
Environment: methodology (developed to identify, 2013: conduct of specific audits to identify areas of
analyze and quantify insurable environmental risks) improvements
applied to main sites worldwide, including significant
Italian site, covering 46% of the Group’s insured value
Use of innovative software to provide real-time Use of Visorisk consolidated through specialized
information within the Group on all pure risks training and activation of a dedicated help desk
(fire, explosion, natural disasters) to which corporate VISIO@ RISK. All companies properly trained to use
assets and continuity of production are exposed the tool/service

PRODUCT
POLLUTING EMISSIONS
Commitment: Minimize polluting emissions
Actions 2012 Results Targets
CNH Early implementation of regulations for the reduction Several Tier 4A/Stage IIIB products launched in the 2014: introduction of Tier 4B/Stage IV compliant models
of polluting emissions (e.g., NOX , particulates) through agriculture and construction segment. Note: compliance deadlines for Tier 4 regulations are:
the development and introduction of new technology Total number of Tier 4 compliant models increased to: 1 Jan 2013: Tier 4B/Stage IV for low power engines (50-75 hp)
solutions u 140 for agricultural equipment 1 Jan 2014: Tier 4B/Stage IV for high hp applications (175-750 hp)
u 116 for construction equipment 1 Oct 2014: EU Stage IV for mid power applications (75-175 hp)
1 Jan 2015: USA Tier 4B for mid power applications (75-175 hp)
Compliance with Euro VI standard for medium and New Stralis Hi-Way with new Euro VI engine 2013: ongoing phase in Euro VI medium and heavy
heavy commercial vehicles, through: launched vehicles
Iveco u further development of Selective Catalytic Reduction

system (SCR)
u general application of Diesel Particulate Filters (DPF)

29
 ACTING sustainability
Key
RESPONSIBLY plan
Target exceeded
Target achieved
or in line with plan
Target
partially achieved
Target postponed

CO2 EMISSIONS
Commitment: Reduce CO2 emissions
Actions 2012 Results Targets
CNH Further reduction in wheel loader fuel consumption Tier 4A/Stage IIIB compliant wheel loader with 2013: further reduction in wheel loader fuel consumption
vs existing version reduced polluting emissions and fuel consumption vs existing version
launched 2013: fuel consumption reduction in various skid steer,
wheeled excavator, crawler hydraulic excavator, sprayer,
combine, and tractor models, with transition to
Tier 4A/Stage IIIB and Tier 4B/Stage IV compliant engines
Iveco Collaboration with the European Automobile New methodology based on analyses and practical 2013: execution of pilot tests to verify performance of
Manufacturers’ Association (ACEA) to develop a tests developed to measure overall CO2 emissions from new methodology
methodology for the measurement of CO2 emissions the use of heavy commercial vehicles, covering the entire
from heavy commercial vehicles variety of trucks and buses per mission and segment
Development and application of a diversified +10% increase in fuel efficiency achieved on the
portfolio of technology solutions for: New Daily vs existing version
POWERTRAIN
u Common Rail engines for heavy vehicle range

u improved engine efficiency for light commercial

vehicle range
u improved efficiency of Selective Catalytic Reduction

system (SCR)
u ultra-high fuel economy oils for Cursor engines

u new 6 speed transmission for light commercial

vehicles
VEHICLES
u improved efficiency of auxiliary systems

(e.g., air conditioning, engine cooling)

u low rolling resistance tires

Promotion of use of longer vehicles to increase goods Over 1.6 million km covered in road testing of 2013: reaching of a total mileage of 6.5 million km by
transport capacity trailers under the DICIOTTO project, reaching a total of testing longer tractors combined with semitrailers
4.7 million km covered from May 2009 to June 2012
Introduction and development of technology Driving Style Evaluation marketed as a driver 2013: engineering study to extend the system to different
solutions to address impact of driver and driving style assistance system for long-haul heavy commercial vehicle architectures/missions and further improve its
on vehicle emissions vehicles effectiveness
Development of a methodology to assess the carbon 2013: methodology testing on a light and a heavy vehicle
footprint of Iveco commercial vehicles pivot configuration
Development of a methodology to assess the carbon 2013: methodology testing on a specific LPT fleet
footprint of a Local Public Transport (LPT) service
FPT Industrial Development of a methodology to assess the carbon 2013: definition of the life cycle assessment from cradle
footprint of light F1 diesel engine to gate (i.e., from resource extraction to factory gate
before delivery to the client)

30
Commitment: Promote use of alternative and renewable energy sources

Acting responsibly
Actions 2012 Results Targets
CNH Promotion of energy independence concept for Additional internal operative tests performed 2013: execution of field tests to refine concept
farms through the use of hydrogen tractors
(New Holland Agriculture)
Presentation of the Natural Power tractor running 2013: further field tests of Steyr Profi 4135 in anticipation
on natural gas of product launch and close look into the development of
other types of alternative fuels, including ethanol
Iveco Promotion of alternative fuel/propulsion solutions for 5 Stralis LNG sold in Italy 2013: expansion of the fleet of LNG heavy duty vehicles
specific product segments: 2013: implementation of specific communication actions
u natural gas for vans, trucks and buses
to support sales of Daily CNG and Daily electric
u electric propulsion for minibuses and urban delivery

vans 2013: road testing of a new CNG engine class (Tector) in

non-European countries
Evaluation and testing of other sustainable solutions Study performed on marketability of Citelis Hybrid 2013: technological research for electric-diesel extension
for the future: (city-bus) in non-European countries to heavier commercial haulage range
u diesel/electric hybrid technology for buses and urban
Plug-in hybrid solution developed for light 2013: feasibility study of plug-in hybrid solution for light
delivery vehicles commercial vehicle concept commercial vehicle concept
u second-generation biofuels (Hydrotreated Vegetable

Oil, Biomass to Liquid) Target postponed to 2013 2013: continued road testing of second-generation
biofuels
Evaluation and testing of other sustainable solutions Bifuel (diesel/ethanol) heavy off-road vehicle tested
for the future: in Brazil (Trakker)
u bifuel technology for heavy commercial vehicles

Evaluation and testing of other sustainable solutions 2013: concept study of photovoltaic panels solution for
for the future: on-board electric power generation
u photovoltaic panels integrated in vehicles

RECOVERY, RECYCLING, REUSE

Commitment: Increase use of remanufactured components
Actions 2012 Results Targets
CNH Increase in number and distribution of 708 incremental remanfuactured components added 2013: distribution of more than 3,800 manufactured
remanufactured components in North America to our CNH REMAN portfolio bringing the total components in 2008-2013 period
number of skus offered to 3,400

Iveco Implementation of International Materials Data Sheet 2013: preliminary evaluation of the recycling rate
(IMDS) for medium and heavy vehicles of N2 and N3 pivot vehicles

31
 ACTING sustainability
Key
RESPONSIBLY plan
Target exceeded
Target achieved
or in line with plan
Target
partially achieved
Target postponed

PRODUCT SAFETY
Commitment: Continue to improve conditions and safety for machine operators
Actions 2012 Results Targets
CNH Reduction of noise level in the operator environment Cab suspension on Case IH 4WD Quadtrac and new 2013: ongoing improvement of conditions and safety for
and of operator exposure to vibration, through active improved cab on Case IH Axial Flow combines machine operators
suspension systems for cabs and axles (agricultural and Noise levels reduced further in Case IH 4WD
construction equipment) Quadtrac and in new Case IH Axial Flow combines.
Noise level reduced in New Holland Construction skid
steer model
Improvement in ergonomics of operator controls to High precision controls and spacious cab equipped 2013: ongoing improvement of conditions and safety
reduce operator stress and enhance comfort with large glazed areas and comfortable workstation for machine operators; enhanced comfort and visibility
with excellent all-round visibility, further enhanced through launch of next generation telehandler products,
by a rear view camera, achieved on New Holland Case IH Axial Flow combines and New Holland
Construction wheeled excavators Construction and Case Construction Equipment crawler
dozer cabs

Commitment: Continue to improve preventive, active and passive safety of vehicles

Actions 2012 Results Targets
Iveco Offering of a range of preventive safety systems and 2013: introduction of AEBS across range of heavy
collision mitigation: commercial vehicles
u Electronic Stability Control (ESC) 2013: introduction of ESC system across medium range
u Lane Departure Warning (LDW) vehicles
u Second-generation Adaptive Cruise Control (ACC2) 2013: study of application of new technological contents
u Electronic Braking System (EBS) (Electric Parking Brake /enhanced Electric Powered
u Automatic Emergency Braking System (AEBS) Steering) to Daily Electric

Evaluation of other safety devices for future Driver Attention Support system marketed for
application: long-haul heavy commercial vehicles (Stralis Hi-Way)
u Driver Attention Support

MANUFACTURING PROCESSES
CONTINUOUS IMPROVEMENT
Commitment: Spread the culture of excellence through World Class Manufacturing (WCM)
Actions 2012 Results Targets
Fiat Industrial Adoption of World Class Manufacturing (WCM) WCM system adopted at 53 plants (30 CNH, 2013: further increase of WCM plants that achieve
Group 16 Iveco, 7 FPT Industrial), collectively accounting for bronze level (20) and silver level (6)
83% of the Group’s plants. 11 plants achieved bronze
level, 4 silver level

32
 ENVIRONMENTAL AWARENESS

Acting responsibly
Commitment: Promote environmental awareness within the Group
Actions 2012 Results Targets
Fiat Industrial Preparation and distribution of a training kit Training kit distributed to all plants worldwide 2013: development and implementation of specific training
Group for personnel working with the environmental initiatives on environmental issues of particular interest
management system

Commitment: Expand and consolidate management system for environmental Key Performance Indicators (KPI)
Actions 2012 Results Targets
Fiat Industrial Development and improvement of environmental KPI Number of monitored KPI extended
Group management systems (monitoring and reporting) and
provision of targeted training

ENVIRONMENTAL IMPACT
Commitment: Optimize the Group’s Environmental Management System
Actions 2012 Results Targets
Fiat Industrial Extension of ISO 14001 certification 56 plants ISO 14001 certified employing approx. 2013: extension of ISO 14001 certification to other non-
Group 45,000 people(1) manufacturing departments
ISO 14001 certification extended to Italian
non-manufacturing departments started

Commitment: Optimize the Group’s environmental performance

Actions 2012 Results Targets
Fiat Industrial Optimization of the water withdrawal and Water withdrawal per production unit vs 2009:
(2)
2014: up to -55% vs 2009 (with specific targets for each
Group discharge management system based on the specific u -19% at CNH company) in water withdrawal per production unit at
characteristics of the country in which each plant is u -47% at Iveco Group plants worldwide
located, and dissemination of specific guidelines u -49% at FPT Industrial
Measures to improve water reuse and recycling
implemented at all plants in areas with scarce water
resources
2014: maintenance of BOD, COD and TSS levels in water
discharge at Fiat Industrial Group plants worldwide below
local regulatory requirements, even after water consumption
reductions (with specific targets for each company)
Water Management Guidelines disseminated to all 2013: testing of the Water Management Guidelines in the
plants worldwide operating procedures of the environmental management
system at pilot plants
Protection of soil and subsoil 2013: development of a guideline on the management
of existing underground equipment (tanks), development
and launch of a policy based on the use of above-ground
systems for new industrial plants/upgrades
2013: development of a guideline on the management
of existing underground equipment (canals and pipes),
development and launch of a policy based on the use of
above-ground systems for new industrial plants/upgrades

(1)
In addition, the certification process of the CNH plant at Queretaro (Mexico) and the Iveco plant at La Victoria (Venezuela) is almost complete.
(2)
The production unit is the main parameter for production volumes for each company: hours of production for CNH and Iveco; units produced for FPT Industrial. 33
 ACTING sustainability
Key
RESPONSIBLY plan
Target exceeded
Target achieved
or in line with plan
Target
partially achieved
Target postponed

Actions 2012 Results Targets

Fiat Industrial Optimization of waste management based on 79% of waste recovered, specifically: 2014: up to 83% (with specific targets for each company)
Group specific characteristics of the countries in which each u 79% at CNH of waste recovered at Group plants worldwide
plant is located u 78% at Iveco
u 80% at FPT Industrial
Waste generated per production unit(1) vs 2009: 2014: up to -11% vs 2009 (with specific targets for each
u +4% at CNH company) of waste generated per production unit at
u -10% at Iveco Group plants worldwide
u -18% at FPT Industrial
Hazardous waste generated per production unit(1) 2014: up to -35% vs 2009 (with specific targets for each
vs 2009: company) of hazardous waste generated per production unit
u -36% at CNH

u -21% at Iveco

u -40% at FPT Industrial

Application of best available techniques for the -26% vs 2009 of VOC emissions per square meter 2014: up to -15% vs 2009 (with specific targets for each
reduction of Volatile Organic Compounds (VOC) in reached, specifically: company) in VOC emissions per square meter at Group
paint processes u -25% at CNH plants worldwide
u -19% at Iveco

u -43% at FPT Industrial

Limitation of external noise produced by plants Application of Guidelines for the design and
purchase of new equipment verified during internal
plant audits
Formulation of guidelines for identifying and Biodiversity Value Index (BVI) calculated for FPT 2013: planning and start of improvement measures
safeguarding protected species and biodiversity Industrial-Bourbon Lancy plant suggested in BVI assessment at FPT Industrial-Bourbon
Lancy plant
2013: calculation of BVI for CNH-Curitiba plant
2013: calculation of BVI for Iveco plants at Suzzara and Ulm
2014: project start-up at one European FPT Industrial plant
Reduction in the use of Ozone Depleting Substances Specific actions to reduce use of SSI identified 2013: start-up of actions to reduce SSI
(ODS) and other substances of significant impact (SSI) 2014: elimination of equipment containing ODS at Group
on health and environment at Group plants worldwide plants worldwide
Alignment with international regulations Compliance with REACH maintained 2013: ongoing compliance with REACH
(e.g., REACH) on the use of potentially dangerous
substances in production processes

Commitment: Optimize the Group’s energy performance and promote use of renewable energy
Actions 2012 Results Targets
Fiat Industrial Implementation of an Energy Management System ISO 50001 certifications achieved by 23 Group 2013: extension of ISO 50001 certification (representing
Group and certification of plants under international plants (representing 70% of total energy consumption) 90% of total energy consumption)
standard ISO 50001 Energy Management System adopted at 41 plants 2013: roll-out of the Energy Management System to main
(representing 93% of total energy consumption) Group plants (representing 95% of total energy consumption)
2013: verification (according to ISO14064-3) of GHG
emissions representing more than 20% of total energy
consumption

34 (1)
The production unit is the main parameter for production volumes for each company: hours of production for CNH and Iveco; units produced for FPT Industrial.
 Actions 2012 Results Targets
Fiat Industrial Identification of measures and technologies Energy consumption per production unit(1) vs 2009: 2014: up to -30% vs 2009 (with specific targets for each

Acting responsibly
Group to reduce energy consumption and CO2 emissions u -21% at CNH company) in energy consumption per production unit at
per production unit u -31% at Iveco Group plants worldwide
u -25% at FPT Industrial for small engines and
transmissions
u -17% at FPT Industrial for large engines
CO2 emissions per production unit(1) vs 2009: 2014: up to -35% vs 2009 (with specific targets for each
u -28% at CNH company) in CO2 emissions per production unit at Group
u -43% at Iveco plants worldwide
u -41% at FPT Industrial for small engines and
transmissions 2013: design and dissemination of a public awareness
u -39% at FPT Industrial for large engines campaign on energy saving
2013: organization of an event on energy to raise
awareness and employee involvement
2013: extension of Energy Challenge to all Group
companies
2013: feasibility study for the conversion of an existing
plant into a green building
Promotion of renewable energy generation and use 14% of the Group’s total (direct and indirect) energy 2013: 14% of the Group’s total (direct and indirect)
consumption derived from renewable sources energy consumption derived from renewable sources, with
specific targets for each company
Proactive management of regulatory risks and Participation of a Iveco plant in Europe in the 2013: assurance of Group compliance with emission
opportunities, through the ongoing monitoring of EU-ETS scheme continued, accounting for approx. trading regulations in the countries of operation
current and future emission trading regulations in the 84,000 GJ per year of total energy generation
Group’s countries of operation (e.g., EU-ETS, CRC Participation of a CNH plant in the UK in the 2013: purchasing of CRC emission reduction credits and
Energy Efficiency Scheme) Carbon Reduction Commitment (CRC) Energy submission of the Evidence Pack under the UK CRC Energy
Efficiency Scheme continued Efficiency Scheme
Development of specific energy saving measures
(Evidence Pack) as part of the CRC Energy Efficiency
Scheme in the UK started
Credits required for compensation of CO2 emissions
purchased

(1)
The production unit is the main parameter for production volumes for each company: hour of production for CNH and Iveco; unit produced for FPT Industrial. 35
 ACTING sustainability
Key
RESPONSIBLY plan
Target exceeded
Target achieved
or in line with plan
Target
partially achieved
Target postponed

LOGISTICS
ENVIRONMENTAL AWARENESS
Commitment: Reduce environmental impact of logistics (1)
Actions 2012 Results Targets
Fiat Industrial Definition of a standard set of environmental KPIs CO2 emissions and cardboard reduction targets set 2013: -1,710 tons overall reduction in CO2 emissions
Group for all sectors in Europe at European level
INBOUND
2013: -15 tons overall reduction in cardboard at
European level
Monitoring process of CO2 emissions generated by 2013: monitoring of CO2 emissions from air freight
transport (excluding air freight) set up at worldwide level shipments for CNH
2013: extension of CO2 emissions monitoring process to
Iveco and FPT Industrial worldwide
2014: CO2 emissions target setting for all sectors
worldwide
INBOUND
2014: completion of cardboard monitoring process for all
sectors worldwide
INBOUND
2015: cardboard target setting for all sectors worldwide
Increase in low-emission transport Restricted access clauses gradually incorporated in
contracts with transport suppliers
Upgraded ecological clause (at least 70% of fleet 2013: ongoing gradual introduction of upgraded clause
compliant to Euro IV or more stringent standards) (at least 70% of fleet compliant to Euro IV or more
incorporated in new signed contracts: stringent standards) in transport supplier contracts
u 82% at CNH

u 67% at Iveco

u 60% at FPT Industrial

CNH Parma-Lecce rail route activated in March 2012 with 2013: -1,350 tons vs 2011 in CO2 emissions once the
a reduction of 793 tons in CO2 vs 2011 Parma-Lecce rail route is fully operational
1,640 tons of CO2 cut vs 2011 at worldwide level 2013: -1,500 tons overall reduction in CO2 emissions
through implementation of intermodal solutions at worldwide level (including Europe)
(excluding Europe)
INBOUND
Use of intermodal solutions
New intermodal flow implemented in March 2012 to
deliver axles and transmissions from Modena plant to
Basildon in UK with a reduction of 415 tons vs 2011
FPT Industrial INBOUND
2013: -410 tons overall reduction in CO2 emissions
at European level
Fiat Industrial INBOUND
Group 80% of cost of shipping in Europe managed through
Streamlined Delivery Project (SDP) for Iveco and
project extended to Irisbus plants
INBOUND INBOUND
Optimization of transport capacity 25% of cost of shipping in Europe managed through 2013: management of approx. 28% of cost of shipping in
SDP for FPT Industrial Europe through SDP for FPT Industrial
CNH 2013: -1,500 tons overall reduction in CO2 emissions
at worldwide level

36 (1)
Unless otherwise specified, the results and targets refer to inbound and outbound flows.
 Actions 2012 Results Targets
CNH INBOUND INBOUND

Acting responsibly
SAP system covering overall World Material Flow 2013: -1% vs 2012 in weight of cardboard and wood for
(WMF) process for the monitoring and optimization of container shipments from Europe to North America and
Reduction in the use of packaging and protective packaging rolled out at all plants serving as WMF hubs Latin America
materials
Iveco INBOUND INBOUND
-15% vs 2011 in disposable wood packaging (from 2013: -5% vs 2012 in disposable wood packaging
12.7 to 10.8 kg/m3) for shipments from Italy to Latin (from 10.8 to 10.3 kg/m3) for shipments from Italy to
America reached within the scope of the World Latin America under the WMF program
Material Flow (WMF) program

NON MANUFACTURING PROCESSES

ENVIRONMENTAL IMPACT
Commitment: Improve commuting for employees
Actions 2012 Results Targets
Iveco and Mobility plans implemented to improve employee 2013: ongoing implementation of mobility plans at all
FPT Industrial commuting to and from all Iveco facilities in Italy: Italian sites for Iveco and FPT Industrial
u car pooling tool (for all Italian plants)
2013: mapping of employee commute to and from main
u easy go infomobility web site
European Iveco sites
u easy go shuttle bus services (Turin plant, shared

with FPT Industrial) to improve employee public

transportation
Questionnaire distributed to all employees at FPT 2013: extension of mapping of employee commute
Industrial plants in Foggia and Pregnana Milanese (Italy) to and from main sites to cover 85% of FPT Industrial
Development of mobility plans to improve and data collection and analysis completed: employees worlwide
u 35% overall response rate
commuting to and from select sites by broadening the
u more than 29% suggestions received
use of public transport, car pooling, alternative mobility
(cycling), and improving entrances and loading and
Effectiveness of initiatives to enhance commuting to 2013: implementation of mobility plans to improve
parking areas
and from Mirafiori (Italy) site evaluated employee commute to and from CNH plant in Modena (Italy)
Questionnaire distributed to all employees at CNH
plant in Modena and data collection and analysis
CNH completed:
u 77% overall response rate

u 1,130 surveys completed

Car pooling pilot project implemented at CNH plant

in Modena (30 employees involved)

Commitment: Reduce Information Communication Technology related energy consumption

Actions 2012 Results Targets
Fiat Industrial Introduction of new low environmental impact -198 MWh vs 2008 (approx. 155 tons of CO2) 2013: -195 MWh vs 2008 (approx. 101 tons of CO2)
Group hardware achieved through introduction of additional through the introduction of additional high-efficiency
high-efficiency power supply units power supply units
Additional 7,300 video monitors replaced with 2013: replacement of 3,500 additional video monitors with
eco-efficient devices (EnergyStar and EPEAT eco-efficient devices (EnergyStar and EPEAT Silver/Gold)
Silver/Gold) 2013: incorporation of sustainability requirements in
tenders for new supplies and contract renegotiations

37
 ACTING sustainability
Key
RESPONSIBLY plan
Target exceeded
Target achieved
or in line with plan
Target
partially achieved
Target postponed

Commitment: Promote environmental responsibility within dealer and authorized service network
Actions 2012 Results Targets
Iveco Use of materials that enable energy savings and New Dealer Identity initiative for the use of more 2013: partial renovation of additional 40 dealership
reduce maintenance requirements eco-compatible materials continued at 55 additional premises (total of 180 from 2009 to 2012)
dealership premises (140 in total from 2009)

HUMAN RESOURCES
HUMAN CAPITAL DEVELOPMENT
Commitment: Enhance skills within the Group
Actions 2012 Results Targets
Fiat Industrial Assessment of employees through performance and 17,205 employees evaluated 2013: continuation of evaluation of all managers and
Group leadership mapping (100% of managers and professionals professionals and an increasing percentage of salaried
and 40% of salaried) employees to reach a coverage of 45% of Group salaried
workforce

Commitment: Manage succession plans and intragroup personnel transfers

Actions 2012 Results Targets
Fiat Industrial Continuation of Talent Review program Succession Plans discussed for the top 25 key 2013: continuation of Talent Review program
Group positions in Fiat Industrial. About 120 individuals
reviewed - including 60 lesser known talents who merit
investment as potential leaders in the future

TRAINING AND KNOWLEDGE MANAGEMENT

Commitment: Develop a group-wide culture of continuous change
Actions 2012 Results Targets
Fiat Industrial Reformulation of training model and management Target postponed to 2013 2013: training model application to new group
Group process to enable a more effective and flexible response organization and new identity
to strategic and tactical training needs according to
changes in the economic environment

Commitment: Promote a culture of sustainability and increase awareness of the Group among employees
Actions 2012 Results Targets
Provision of online training on sustainability Sustainability course delivered to 3,956 people 2013: continuation of sustainability course
Fiat Industrial
Group
Provision of online training on Corporate Governance Target postponed to 2013 2013: revision, and then delivery, following the new
Corporate Governance model

38
 ATTRACTION, RETENTION AND INVOLVEMENT OF EMPLOYEES

Acting responsibly
Commitment: Survey level of satisfaction, needs and requests of employees
Actions 2012 Results Targets
Fiat Industrial Surveying of people satisfaction on a regular basis More than 3,000 people surveyed in Latin America 2015: continuous monitoring, extending the sample to
Group significant locations chosen after the reorganisation

Commitment: Attract and retain the best talent

Actions 2012 Results Targets
Fiat Industrial Implementation of long-term performance-related Target postponed to 2013 2013: definition and implementation of long-term
Group incentive plans performance-related incentive plans for key talent in
companies other than CNH

Commitment: Promote continuous improvement through the direct participation and contribution of employees
Actions 2012 Results Targets
Fiat Industrial Encouragement of improvement proposals from Average of 10 improvement proposals per person 2013: ongoing collection of suggestions from plant
Group employees received from plant employees employees
2013: collection of suggestions leading to projects
implemented at Group plants
2013: tracking of cost savings from projects arising from
employee suggestions

EQUAL OPPORTUNITIES
Commitment: Promote internal professional development
Actions 2012 Results Targets
Fiat Industrial Development of Internal Job Posting program for Program extended and consolidated worldwide: 2014: restart of the program
Group salaried and professional positions 2,462 position posted and 4,747 candidatures received Note: 2013 program suspended due to the Group
worldwide reorganization

Commitment: Promote diversity and non-discriminatory practices

Actions 2012 Results Targets
Fiat Industrial Design of course to promote a work environment Approx. 8,000 people (of which 445 professionals) 2013: continued delivery to professionals worldwide and
Group that is based on the highest principles and guarantees trained in 2012 to newly appointed professionals
fundamental rights in the workplace
Monitoring of global implementation of equal Results of monitoring process of managers and 2013: redefinition and continuation according to the new
opportunity principles in relation to: compensation professionals worldwide analyzed and corrective structure
levels, annual compensation review plan, performance actions implemented, as necessary
and leadership appraisals and promotions External recruitment agencies made aware of the
Company’s role as Equal Opportunity Employer
(EOE). Regional/country-based recruitment processes
monitored to ensure performance as EOE
Promotion of job opportunities for workforce +6.5% female workers employed vs 2011, 2013: continued increase in the number of diversity
diversity +42% of disabled workers employed in Brazil candidates employed by region, in accordance with local
requirements and constraints

39
 ACTING sustainability
Key
RESPONSIBLY plan
Target exceeded
Target achieved
or in line with plan
Target
partially achieved
Target postponed

OCCUPATIONAL HEALTH AND SAFETY

Commitment: Continue process of internal and external certification of Occupational Health and Safety Management System
Actions 2012 Results Targets
Fiat Industrial Extension of OHSAS 18001 certification 56 plants OHSAS 18001 certified, employing 2013: extension of OHSAS 18001 certification to some
Group approx. 46,000 people(1) non-manufacturing sites
2014: extension of OHSAS 18001 certification to most
relevant joint venture plants (where Fiat Industrial owns
at least 50%) existing in 2011
Audit of safety management procedures at plants +47% vs 2011 internal audits conducted: 2013: +5% of internal audits vs 2012
u 565 internal and 106 external audits
u approx. 49,000 employees covered by external audits

u approx. 48,500 employees covered by internal audits

Commitment: Promote a culture of health and safety in the workplace

Actions 2012 Results Targets
Fiat Industrial Development and implementation of a group-wide 2013: launch of new health and safety training and
Group health and safety training project information platform within the Group in Italy in
accordance with Organismo Paritetico Health and Safety
(OPHS) requirements

Definition and progressive implementation of training Training standards and information tools extended 2013: extension of training standards and
standards and information tools for Health and Safety to internal Health and Safety specialists in Europe information tools for internal Health and Safety
specialists within the Group specialists to some non-European countries
Development and implementation of the Top Ten Top Ten Safety project extended to all Group plants 2013: extension of safety guidelines from Top 10 to Top 15
Safety project: 10 key health and safety initiatives operating worldwide in 2010 (involving approx. 47,800
employees)
Provision of online course on safety in the Approx. 8,000 participants in manufacturing areas 2013: mapping of the population involved in non-
workplace for salaried employees (workstation involved manufacturing areas for the EMEA region, adapted in
ergonomics, emergency response, electric hazards, Course materials translated and adapted to local accordance with local requirements and constraints
risks from over-exertion, correct use of video legal requirements, in Czech Republic, France,
monitors) Germany, Poland, Netherlands, Spain, United Kingdom
2013: provision of online course to European
manufacturing managers, professionals and salaried
employees

40 (1)
In addition, the certification process of the Iveco plant at La Victoria (Venezuela) is almost complete.
 EMPLOYEE WELFARE

Acting responsibly
Commitment: Promote work-life balance
Actions 2012 Results Targets
Fiat Industrial Promotion of initiatives that enhance work-life Several activities offered at regional level e.g.,: 2013: continued implementation of work-life balance
Group balance u Turin Plava/Mirafiori -Kindergarten for employees’ initiatives by region
children aged 3 months to 3 years age
u CNH NA -Nurses hotline, 24/7 support for everyday

health issues and questions

u CNH UK, gym on site available during the day

u Iveco CZ paid physical therapy services for senior

employees
(see also page 191)
2013: continued implementation of flexible working
Flexible working programs implemented by region; programs by region (work from home and other flexible
7% of employees at Group level benefited from solutions to facilitate eldercare and family management)
leave of more than three days for the care of family
members, in 2012 a pilot project on telewoking started
at Iveco Turin
CNH Habitat for humanity - approximately three hundred 2013: continued implementation of corporate volunteer
hours of work dedicated to the two new projects by programs by region
75 employees
Meetings of volunteers held at Curitiba plant (Brazil) 2013: transformation of pilot into ongoing project
during working hours to organize actions/initiatives
Support for volunteer work during paid working focused on activities for nonprofit organizations
hours 455 training hours delivered to 65 internal volunteer 2013: continuation of the Programa Formare. Delivery
educators on the Programa Formare of 474 training hours to 20 young people
Iveco
6,680 training hours delivered to 20 disadvantaged
young people by internal volunteers on the Programa
Formare

Commitment: Promote the wellness of employees

Actions 2012 Results Targets
Fiat Industrial Distribution of information and provision of medical Information and medical support related to the 2013: ongoing dissemination of information and provision
Group support to employees to prevent the spread of prevention of the seasonal flu virus regularly supplied, of medical support to employees on the prevention of the
infectious diseases and promote personal hygiene and 5,779 doses of vaccine administered seasonal flu virus
HIV/AIDS information campaign continued in Latin 2013: ongoing HIV/AIDS information campaign in Latin
America, involving 5,670 employees America
Distribution of information to employees on general Tips on Health section launched on Group intranet 2013: release of a second set of Tips on Health
health, smoking-related diseases and diabetes through sites worldwide in the following languages: Italian,
targeted campaigns English, French, German, Spanish, Portuguese, Czech,
Polish, Dutch, Chinese, Hindi
Health Factory campaign carried out at Iveco plant 2013: ongoing Health Factory campaign
in Brescia (Italy) involving 6,800 employees from 2011
to 2012
2013: launch of the Smoking Cessation campaign
at some Group sites in Italy
2014: extension of the Smoking Cessation campaign
worldwide at some sites where the issue is most prevalent
according to studies published by the World Health
Organization

41
 ACTING sustainability
Key
RESPONSIBLY plan
Target exceeded
Target achieved
or in line with plan
Target
partially achieved
Target postponed

Actions 2012 Results Targets

Fiat Industrial Promotion of the wellness of employees through The Picture of Health program continued in 2012 2013: continuation of The Picture of Health program
Group programs aimed at: which is available to approximately 8,000 employees
u spreading of health-focused culture in the United States
u encouraging individuals to adopt a healthy lifestyle

(including through economic incentives)

u reduction of medium and high health risks to low

levels
u encouraging of a work environment that promotes

healthy behavior and engagement of the workforce

u monitoring of the cost of health neglect

Formulation and dissemination of well-being Several well-being initiatives implemented by region 2013: adaptation of program to new organisation and its
Guidelines addressing Group commitment in favor (see also pages 188-190) continuation
of employees’ well-being Target postponed to 2013 2013: formulation and dissemination of well-being
Guidelines

Commitment: Facilitate access to the best health care services

Actions 2012 Results Targets
Fiat Industrial Establishment of a supplementary health care Almost 6,500 hourly and salaried employees and 2013: completion of setup of the new FASIF Fund, which
Group plan (FASIFIAT) for the Group’s hourly and salaried their families in Italy have joined the plan carries over FASIFIAT and FASIQ (the fund for professional
employees in Italy, as per agreements between the employees) services and extension of the protection of
Group and trade unions a basic health care, that includes also a Long Term Care
plan, to all employees, through a contribution paid by the
companies only

DEALER AND SERVICE NETWORK

TRAINING
Commitment: Improve knowledge-base of the sales force and promote customer awareness of the environmental and safety-related features of products
Actions 2012 Results Targets
CNH 274,800 hours of training delivered worldwide to CNH 2013: delivery of same number of training hours provided
sales force in 2012
Design and offer of targeted training courses 5 new persons dedicated to sales training activities 2013: consolidation of the Latin American training team
that leverage best practice within each sector and added to the Latin American training team
Iveco exploration of all potential synergies 46,552 hours of training delivered worldwide to 2013: delivery of same number of training hours provided
Iveco sales force in 2012
666 sales people involved in courses on Stralis 2013: introduction of courses on products launched
Hi-Way and new Trakker during the year

Commitment: Improve skill level of network technicians in diagnosis, repair and maintenance of eco-efficient engines
Actions 2012 Results Targets
CNH 132,000 hours of training delivered worldwide to CNH 2013: delivery of same number of training hours provided
technicians (+12% vs 2011) in 2012
Design and offer of targeted training courses 107,432 hours of training delivered worldwide to 2013: delivery of same number of training hours provided
that leverage best practice within each sector and Iveco technicians in 2012
Iveco exploration of all potential synergies 1,542 technicians involved in courses on major units 2013: launch of new courses on vehicles and major units
and vehicle systems (Stralis Hi-Way and new Trakker) launched during the year

42
Commitment: Promote decentralized training solutions

Acting responsibly
Actions 2012 Results Targets
CNH 195,000 hours of online training delivered to CNH sales 2013: +15% in online training hours vs 2012
and after sales personnel (118,000 hours delivered to
Offer of online training solutions and improved access service personnel)
to live training for dealership personnel 2013: (CNH) implementation, database migration, and
CNH Updated Learning Management System progressively dealers roll out, to be completed by end of year
and Iveco rolled out 2013: (Iveco) ongoing development of Learning
Management System as per plan

Commitment: Promote safe and eco-friendly driving

Actions 2012 Results Targets
CNH 10,000 hours of training delivered to construction 2013: delivery of same number of training hours provided
equipment operators and 19,000 hours to agricultural in 2012
Design and offer of targeted courses for fleet and equipment operators on the safe use of machines
demo drivers at commercial vehicle dealers and for
Iveco agricultural and construction equipment operators Training offered to Fleet Drivers and Demo Drivers 2014: extension of Iveco Driver Training initiative
in Italy, Germany, Spain, France, UK, Bulgaria, Russia,
Serbia and Lithuania

CUSTOMERS
CUSTOMER EXPERIENCE
Commitment: Enhance customer relationship and satisfaction
Actions 2012 Results Targets
CNH New contact channels continued to be implemented
through analysis of customer preferences and service
impact factors, particularly related to social media
Implementation of new contact channels to facilitate Implementation of Customer Experience Service in 2013: finalization of Customer Experience Service
customer access Brazil started implementation in Brazil
Iveco Innovation Club project incorporated as a standard
activity into customer feedback processes

CNH Extension of information, complaint management, Services extended to Argentina for agricultural
and breakdown assistance services to a larger range equipment
of customers

43
 ACTING sustainability
Key
RESPONSIBLY plan
Target exceeded
Target achieved
or in line with plan
Target
partially achieved
Target postponed

Actions 2012 Results Targets

CNH Plan for results monitoring and quality assessments
developed to leverage customer input
Work instructions completed for the call center
in North America
Customer Satisfaction Index pilot project
Development of actions to improve service quality, implemented in North America for CASE IH dealers
communication and monitoring of customer satisfaction
Iveco Mobile Assistance Non Stop (ANS) software 2013: roll-out of ANS Mobile software on smartphone
and feedback
developed for Blackberry and Android platforms. devices in more than 50% of Western European service
Field test on specific workshop carried out in Western points; increased customer satisfaction by improving time
European countries (different scope compared with efficiency in technical support and feedback on repair
2012 target) 2013: guaranteed technical support service in less than
70 minutes on vehicle breakdown in at least 75% of cases
(in major markets)
Iveco Enhancement of service network technician skills with More than 10,000 training hours delivered to service
a view to achieving new levels of excellence in network technicians in major markets
the Assistance Non-Stop service

CNH Development of enhanced customer self-help tools 2013: alignment of brand website contents, focusing on
via web and Interactive Voice Response technology to most frequent customer requests to facilitate and enhance
facilitate ease of customer access to CNH resources customer experience
and information
Development of operational improvements to 2013: alignment of contact processes across the
boost service quality, speed of service resolution and European markets and focus on first call solutions to meet
communication customer expectations of service provided
Enhanced use of resources improving service delivery 2013: execution of pilot projects across regions to ensure
within Product Improvement Campaigns through the faster delivery of product upgrade programs to end
Best Service function customers and close monitoring of completion rates
Review of customer survey methods to improve 2013: revision of survey methodology for the
results reliability, learning, and best practice to advance implementation of audit procedures and improved
operating performance monitoring of customer satisfaction and feedback

Commitment: Support and educate end users on the proper use of products
Actions 2012 Results Targets
CNH Provision of round-the-clock, all year-round technical Customer training on precision agricultural 2013: launch of a specific application to support precision
support to end users, in person and via web equipment designed and delivered agricultural equipment customers

Commitment: Ensure responsible communications practices

Actions 2012 Results Targets
Iveco Formulation of new charter for ethical advertising to Charter for Ethical Advertising drawn up and approved
promote responsible communication worldwide

44
 SUPPLY CHAIN

Acting responsibly
SUSTAINABILITY IN THE SUPPLY CHAIN
Commitment: Promote a culture of sustainability among employees managing supplier relationships
Actions 2012 Results Targets
Fiat Group Provision of on line training on corporate governance Training provided to Supplier Quality Engineers and
Purchasing (FGP)(1) and sustainability buyers in Poland, Turkey, Brazil, China and India

Incorporation of environmental and social targets Environmental and social targets (sustainability audits 2013: ongoing application of environmental and social
in variable compensation system and management of further self-assessment questionnaires targets to variable compensation system for SQE Managers
for select suppliers) continued to be included in variable and respective team members
compensation system for Supplier Quality Engineers (SQE)
managers and respective team members

Commitment: Promote social and environmental responsibility among suppliers

Actions 2012 Results Targets
Fiat Group Formulation and dissemination of Sustainability Contractual clauses on adherence to Sustainability 2013: ongoing introduction of contractual clauses
Purchasing (FGP)(1) Guidelines for Suppliers Guidelines introduced in new FGP purchase on adherence to Sustainability Guidelines in new FGP
agreements purchase agreements
Introduction of environmental and social Supplier sustainability rating system affecting the
performance indicators in supplier assessments awarding of business to all Fiat Industrial suppliers
introduced

Distribution of self-assessment questionnaires on Sustainability self-assessment questionnaire improved 2013: improvement and third-party management
environmental and social performance to select suppliers by introducing logistic for environment section of detailed self-assessement
30 questionnaires returned (representing approx. 2013: ongoing distribution and analysis of questionnaires
2.14% of purchases by value)
Preparation of a supply chain risk map to identify Risk map strengthened 2014: development of a second-level risk map to identify
suppliers for audits and prioritize economic, environmental and social risks
Fiat Group Increase of awareness on water-related issues, 2013: monitoring of water management practices in the
Purchasing (FGP)(1) addressing and assessing exposure to risks relating to supply chain through the introduction of specific questions
and water usage in the supply chain in the self-assessment questionnaire aimed at monitoring
Fiat Industrial water management practices
2014: beginning of the collaboration with select tier 1
suppliers to develop a water stewardship strategy
Fiat Group Execution of environmental and social audits at suppliers 10 audits of suppliers in China and India conducted 2013: execution of 45 audits, including China and India,
Purchasing (FGP)(1) worldwide by internal Supplier Quality Engineers (SQE) by internal SQEs and of 17 audits by third parties
35 audits of most significant suppliers conducted by
internal SQE and 16 audits conducted by third parties
Standard action plan template for audit follow-up
activities developed
Fiat Group Assurance of a conflict mineral-free supply chain Template for suppliers to report the source of certain 2013: identification of eligible suppliers and distribution
Purchasing (FGP)(1) minerals potentially from conflit regions developed of industry-standard conflict minerals reporting tool
and CNH

(1)
A Fiat Group company that also conducts purchasing activities for Fiat Industrial Group. 45
 ACTING sustainability
Key
RESPONSIBLY plan
Target exceeded
Target achieved
or in line with plan
Target
partially achieved
Target postponed

Actions 2012 Results Targets

Fiat Group Enhancement of sustainability awareness among Online course provided to 1,686 employees of 2013: provision of a course on responsible working
Purchasing (FGP)(1) suppliers Fiat Industrial suppliers conditions to tier 2 suppliers of a select number of
tier 1 suppliers
2013: extension of sustainability training courses and
other learning opportunities for suppliers
2013: recognition of outstanding achievement in
improving social and environmental responsibility
performance across the supply chain
2013: involvement of 45 select suppliers in the Carbon
Disclosure Project Supply Chain survey
Fiat Group Promotion of supplier involvement in World Class Total of 68 supplier plants involved in the WCM 2013: involvement of a total of 98 supplier plants in the
Purchasing (FGP)(1) Manufacturing (WCM) program program WCM program
and
Fiat Industrial Review of certified direct material suppliers and Mapping of ISO 14001 certified suppliers started 2013: completion of ISO 14001 certified suppliers
extension of ISO 14001 certification mapping and identification of KPIs for periodic monitoring
Awareness campaign launched

COMMUNITY
LOCAL COMMUNITY
Commitment: Promote social and economic development of local communities
Actions 2012 Results Targets
CNH Support for the Habitat for Humanity initiative for More than €300,000 in funds raised (since 2007) 2013: ongoing support for the Habitat for Humanity
families in need of housing by employees and Case Construction Equipment initiative
dealers, and a total of approx. 300 hours donated
by 75 employees for the construction of houses for
disadvantaged families
Support for the United Way initiative for the More than €1.2 million raised 2013: ongoing support for the United Way initiative
improvement of health, education and income stability
in disadvantaged communities
Support for five initiatives within the Plantar & 2013: support for the Plantar & Construir program
Construir program aimed at contributing to sustainable
development in Brazil

Iveco Support for the Transaid initiative to help African €7,400 raised for Transaid at a raffle at the Transport 2013: ongoing financial support for the initiative
commercial cooperatives with logistics management News Rewards Breakfast Event
160 Train the Trainer hours provided 2013: provision of 2,160 training hours to 270 drivers, each
trained over 4 days in blocks of 2 hours of driving per day

FPT Industrial Support for initiatives aimed at helping disabled people 2013: delivery of powertrains and provision of service
experience life at sea support

46 (1)
A Fiat Group company that also conducts purchasing activities for Fiat Industrial Group.
 Commitment: Aid populations affected by natural disasters

Acting responsibly
Actions 2012 Results Targets
Fiat Industrial Provision of technical, financial and humanitarian €125,000 in cash donated to victims of the 2013: ongoing financial support to charitable
Group support to populations affected by natural disasters earthquake in Emilia Romagna (Italy) organizations serving populations affected
Equipment, operators and assistance services by natural disasters
provided to residents in the areas of Emilia Romagna
(Italy) affected by the earthquake

TRAINING FOR YOUNG PEOPLE

Commitment: Support the professional development of young people
Actions 2012 Results Targets
Iveco Support for TechPro2 Iveco, a technical training Project launched in Belém (Brazil): 2013: training of 20 young people, delivery of 800 training
program on industrial vehicles, developed in u €66,000 worth of materials and support provided hours to young people, delivery of 184 Train the Trainer hours
collaboration with Salesian Institutes to Salesian Institute in Belem
u 20 young people selected
u 56 Train the Trainer hours provided
40 hours of training to delivered 10 Salesian teachers 2013: intensification of communication activities
through the Train the Trainer program, with the aim of between TechPro2 locations and authorized after-sales
providing 1,050 hours of training to 90 students network in order to promote apprenticeship opportunities

Support for Don Bosco Technical Schools in Cairo Local instructors trained, technical equipment and 2013: ongoing support for the initiative according to local
(Egypt) for the development of mechanical and educational material provided political situation
technical automotive skills

47
ECONOMIC DIMENSION

50 Corporate governance
68 Sustainability governance
72 Innovation management
78 Indexes, ratings and investors
 CORPORATE
GOVERNANCE
Fiat Industrial Group believes that a solid corporate governance model is the only
way to effectively manage the interests of all its stakeholders.
The pillars around which this framework is built include ongoing compliance
with international best practice, a well-structured and comprehensive Code
of Conduct and guidelines which are based on this, and finally, an advanced risk
management system.

50
 CORPORATE ECONOMIC
GOVERNANCE Dimension

During 2012, in its second year of operation, Fiat Industrial strengthened its compliance to the Corporate Governance model
already adopted at the end of 2010, before finalizing the strategic separation of the activities of Agricultural and Construction 73%
equipment (CNH), Trucks (Iveco), and the Industrial & Marine sector of FPT Powertrain Technologies (FPT Industrial) from of the members of the
the activities relating to Fiat Group’s Automobile business and associated Components and Production Systems, making Board of Directors
additions and amendments according to the specific business requirements and characteristics of the new Group. The
model includes the corresponding implementation provisions and the internal control system, designed not only to ensure
independent
compliance with Italian laws and regulations, but also the substantial incorporation of best practices adopted internationally
by groups of comparable size, modifying the processes and systems already in force within the Fiat Group.
The corporate governance system includes the following documents:
n Code of Conduct and its guidelines:

Fiat Industrial Group Health and Safety Guidelines

dimension
Economic
Fiat Industrial Group Environmental Guidelines
Fiat Industrial Group Sustainability Guidelines for Suppliers
Fiat Industrial Group Human Rights Guidelines
Fiat Industrial Group Human Capital Management Guidelines
Fiat Industrial Group Business Ethics and Anti-corruption Guidelines
Fiat Industrial Group Conflict of Interest Guidelines
Fiat Industrial Group Data Privacy Guidelines
Fiat Industrial Group ICT Assets Guidelines
Fiat Industrial Group Community Investment Guidelines
Fiat Industrial Group Green Logistics Principles.
n Compliance Program, as per Italian Legislative Decree 231/2001, including the Guidelines for each italian company of

the Group
n Guidelines for Significant Transactions and Transactions with Related Parties

n Guidelines for the Internal Control System

n Whistleblowing Procedures

n Internal Disclosure Controls & Procedures

n Internal Dealing Procedures for identifying managers qualifying as relevant persons under regulations in force

n Procedures for General Meetings.

The nature and composition of the Board of Directors, appointed at the Annual General Meeting on 5 April 2012,
reflects international best practices as well as the recommendations given by the Board of Directors in the specially
prepared report, based in part on suggestions from the Nominating, Compensation, and Sustainability Committee.
Specifically, it should be noted that:
GRI-G3.1
n to further the effectiveness of the Board of Directors and its committees, the number of directors has been
4.1
increased to 11 Sustainability Plan
Our commitments on pages 28-29
n to assess the independence of Directors, the Board of Directors has confirmed more stringent requirements than

those prescribed by current regulations

n with reference to the previous mandate, the percentage of independent directors relative to the total number has

been increased (8 out of 11)

51
 economic corporate
dimension governance

n gender diversity in the Board of Directors composition introduced before the effectiveness of the Italian law.
The current Board of Directors is thus made up of nine male and two female directors
n capital structure complexity has been reduced, also benefiting the company’s governance, through the mandatory

conversion of all preference and savings shares into ordinary shares. The operation, proposed by the Board of
Directors and approved by the Annual General Meeting on 5 April 2012, was carried out in May 2012.
In line with the new organization, the Board of Directors also redefined the committee structure. Given the key role
of the committees in allowing the Board of Directors to adopt their own resolutions in the light of a more complete
analysis of all the relevant facts, from April 2012 the functions of the Nominating, Compensation and Sustainability
Committee have been split between two new committees: the Nominating, Corporate Governance and Sustainability
Committee and the Compensation Committee.
Following the proposal from the Internal Control Committee and the Nominating, Corporate Governance and
Sustainability Committee, the Board of Directors has modified certain aspects of internal control, which constitute
GRI-G3.1
4.1, LA13
the company’s governance structure, to align it with the new requirements laid down by the amended version of
Sustainability Plan the Corporate Governance Code issued by the italian Stock Exchange. Specifically, the Internal Control Committee
Our commitments on pages 28-29
has been renamed the Control and Risk Committee, and modifications have been made to the Committee’s Code
Glossary
Stock Grant Program underlining how the overseeing of risk management is central to its activities. Furthermore, the amended Guidelines
for the Internal Control and Risk Management System have been approved, to align them to the changes introduced
by the Corporate Governance Code.

52
The Board of Directors, therefore, is now advised by three Committees:
n The Nominating, Corporate Governance and Sustainability Committee

n The Control and Risks Committee

n The Compensation Committee.

On 22 February 2012, pursuant the recomendations of the Corporate Governance Code, article 123-ter of the
Financial Consolidated Act and the European Recommendations on compensation, the Board of Directors approved
the Compensation Policy contained in the Compensation Report. The aim of the Compensation Policy is to ensure
the Group is sufficiently competitive in the various business sectors and markets in which it operates, so as to attract,
nurture, and retain highly qualified managers with strong leadership skills by means of the periodic setting of objectively
measurable and widely applicable objectives. Furthermore, the Compensation Policy seeks to incentivize managers
holding key positions in their pursuit of company and Group management performance targets, to maintain consistency

dimension
Economic
between the interests of management and those of the majority of shareholders.
In line with the contents of the Compensation Policy and international best practices and the applicable laws, the Board
of Directors submitted both the Compensation Policy and a long-term incentive plan based on company shares (the
so-called Stock Grant Program) for approval at the Annual General Meeting on 5 April 2012.
For a more in-depth exploration of these issues, see also the Fiat Industrial Annual Report on Corporate Governance
(February 2013) and the Fiat Industrial Compensation Report (February 2013).

Fiat Industrial Group Corporate Governance Timeline

2010 n The Governance Procedures are approved for the new Fiat Industrial Group, analogous to those of the Fiat
Group, applicable from 1 January 2011

2011 n The Nomination and Compensation Committee is also entrusted with supervising Sustainability issues, so
taking the name: Nomination, Compensation, and Sustainability Committee

2012 n The new Board of Directors of the company is appointed with respect for gender diversity. The percentage
of independent directors out of the total number of directors is increased
n The Compensation Policy is approved, along with the long-term incentive program based on equity instruments
n The functions of the Nomination, Compensation, and Sustainability Committee are split between two new
committees: the Nominating, Corporate Governance and Sustainability Committee and the Compensation
Committee
n The mandatory conversion of all preference and savings shares into ordinary shares is carried out, to reduce
capital structure complexity and to simplify the company’s governance
n The Internal Control Committee is renamed Control and Risk Committee, the Committee’s Code is
modified, and the amended version of the Guidelines for the Internal Control and Risk Management system
is approved
>

53
 economic corporate
dimension governance

Fiat Group pre-demerger Corporate Governance Timeline

1992 n Publication of Fiat Group’s first Environmental Report

1993 n Publication of the Group’s first Code of Ethics

1997 n Adoption of a system of Values and Policies

1999 n Establishment of the Internal Control Committee and the Nominating and Compensation Committee

2002 n Adoption of Internal Dealing Regulations that establish disclosure and conduct requirements for Relevant
Persons. These Regulations remained in place until March 2006, when the European Directive on Market
Abuse took effect

2003 n Publication of the Group’s Code of Conduct

n Approval of the first Compliance Program (Italian Legislative Decree 231/2001) subsequently updated to
reflect statutory developments and core law
n Approval of Guidelines for the Internal Control System
n Issuance of Guidelines for Significant Transactions and Transactions with Related Parties

2004 n Publication of first Annual Report on Corporate Governance, prepared in accordance with guidelines issued
by Assonime and Emittenti Titoli S.p.A. and endorsed by Borsa Italiana S.p.A.
n Implementation of an Enterprise Risk Management process based on the COSO (The Committee of Sponsoring
Organizations of the Treadway Commission) Enterprise Risk Management (ERM) – Integrated Framework of 2004
n Publication of the first Fiat Group Sustainability Report

2005 n Approval of Whistleblowing Procedures for reporting alleged violations of the Code of Conduct
n Approval by Fiat S.p.A. shareholders of requirements for annual assessment of independence of members of
the Board of Directors
n Approval of the Group Procedure for the Engagement of Audit Firms aimed at ensuring the independence of
the external auditors

2006 n Certification of the System of Internal Control over Financial Reporting (ICFR) established pursuant to
Section 404 of the US Sarbanes-Oxley Act. Although the company is no longer listed on the New York Stock
Exchange (NYSE), management and Internal Audit have since continued their activities relative to evaluation
and monitoring of the System of Internal Control over Financial Reporting. These activities also provide
support for the attestation of the Chief Executive Officer and the executive officers responsible for the
preparation of the company’s financial statements, required under Italian Law 262/2005 since 2007

2007 n The Nominating and Compensation Committee’s functions are split between the Nominating and
Corporate Governance Committee and the Compensation Committee
>
54
2008 n Creation of the Sustainability Unit within Group Control and publication of the first Sustainability Plan

2009 n Assignment of responsibility for sustainability issues to the Nominating and Corporate Governance
Committee, which thus became the Nominating, Corporate Governance and Sustainability Committee
n Revision of the Code of Conduct to incorporate additional principles of sustainability
n Formulation of Group Guidelines on Environment, Health and Safety, Business Ethics and Anti-corruption,
Sustainability for Suppliers, Human Capital Management, Human Rights, and Investments in Local
Communities

dimension
Economic
n Training on Corporate Governance and Sustainability conducted in Italy for all managers, Supply Quality
Engineers, and buyers (personnel responsible for negotiations with suppliers)
n Update of the Enterprise Risk Management model to include additional risk factors related to climate change

2010 n Formulation of Group Guidelines on Conflicts of Interest, Data Privacy, and ICT Assets, and of the Green
Logistics Principles
n Dissemination of Code of Conduct updated to include references to Group Guidelines on Environment,
Health and Safety, Business Ethics and Anti-corruption, Suppliers, Human Capital Management, Human Rights,
Conflicts of Interest, Community Investment, Data Privacy, and ICT Assets
n Approval of Procedures for Transactions with Related Parties
n Review of the internal Business Ethics Audit system to include additional sustainability-related elements
from the Code of Conduct
n Updating of the Enterprise Risk Management model and revision of risk map

CODE OF CONDUCT
The Code of Conduct is one of the pillars of the Fiat Industrial Group corporate governance system which regulates
the decision-making processes and operating approach of the Group and its employees with a view to protecting the
interests of stakeholders. The Code represents a set of values recognized, adhered to and promoted by the Group, which
understands that diligence, integrity and fairness are important drivers of social and economic development.
The Code of Conduct addresses behaviors relating to economic, social and environmental issues, underscoring the
importance of dialogue with stakeholders. Explicit reference is made to the UN’s Universal Declaration on Human Rights,
GRI-G3.1
the Conventions of the International Labor Organization (ILO), the OECD Guidelines for Multinational Enterprises and 4.1, HR5, HR6, HR7, HR10, SO2, SO3
the US Foreign Corrupt Practices Act (FCPA). The Code was amended to include specific guidelines: Environment; Health Glossary
Audit, ILO, Stakeholders
and Safety; Business Ethics and Anti-corruption; Sustainability for Suppliers; Human Capital Management; Human Rights;
Conflicts of Interest; Community Investment; Data Privacy and ICT Assets.
Available in Italian and eight other languages (English, French, German, Spanish, Polish, Flemish, Portuguese and Chinese), the
contents of the Code are communicated to all employees. It can be viewed and downloaded from the Group’s Internet and

55
 economic corporate
dimension governance

intranet sites, and copies can also be obtained from Human Resources, the Legal Department or the Compliance Officer.
The Code applies to the members of the Board of Directors of Fiat Industrial S.p.A., to all employees of Group companies
and to all other individuals or companies that act in the name and on behalf of one or more Group companies.
The principles and good corporate governance values established in the Code of Conduct are conveyed to all employees
(including security personnel), whatever their level or role, through periodic training and other information channels.
The Group advocates adoption of the Code as a business conduct best practice standard for partners, suppliers, consultants,
agents, dealers and other parties with whom it has a long-term relationship. In fact, Group contracts worldwide include
specific clauses relating to the recognition of and adherence to the fundamental principles of the Code of Conduct and
related guidelines, as well as compliance with local regulations, particularly those related to corruption, money-laundering,
terrorism and other crimes constituting liability for legal persons.
Fiat Industrial Group has adopted a Compliance Program in Italy (pursuant to Legislative Decree 231/2001),
which incorporates Article 2 of the 1997 OECD Convention on Combating Bribery of Foreign Public Officials in
International Business Transactions; this is constantly updated to reflect legislative changes. Cases of potential bribery
and corruption are monitored constantly by the Compliance Program Supervisory Bodies at Group companies in Italy
and, more generally, by Compliance Officers for all Group companies worldwide. Legislative Decree no. 109, article 2 of
16 July 2012, which entered into force in August 2012, introduced a new article - article 25-K - into Legislative Decree
231/01, which punishes the employment of illegally staying foreign nationals.

56
Subsequently, with the recent Law no. 190 of 6 November 2012, entitled Regulations for the prevention and repression of
corruption and illegal conduct in the public sector, the lawmakers have added to the Penal Code legislation on extortion
and corruption, modifying article 2635 of the Italian Civil Code. on corruption in the private sector, and have also made
substantial changes to the body of standards of Legislative Decree 231/2001, providing for two new criminal offences:
n corruption in the private sector (Article 25-ter)

n the use of undue influence to achieve advantages (Article 25).

In November 2012, the Fiat Industrial Group Internal Audit & Compliance function performed a risk assessment to
identify any operations liable to punishment for these new offences, for the purposes of writing an updated edition of the
Guidelines for the Adoption and Update of the Organization, Management and Control Model from Legislative Decree
231/01 in Fiat Industrial Group Companies.
Finally, when commencing, running or closing business operations, it is standard practice for the Group to evaluate

dimension
Economic
the economic, social and environmental impacts of these activities through the relevant corporate functions and
established procedures.

Highlights
Compliance and Ethics Committee

Since 2009, CNH has a Compliance and Ethics Committee, chaired by the Chief Executive Officer and composed of the senior
managers of key corporate functions (Human Resources, Manufacturing, Legal, Finance and Internal Audit). The committee largely
performs an advisory role, to enable the Group to continue to operate according to the highest ethical business standards and in
accordance with applicable laws and regulations. Specifically, the committee works to:
n facilitate the development, implementation and operation of an effective compliance and ethics program

n promote an organizational culture that encourages law-abiding behavior and ethical conduct

n consider and resolve any interpretation issues regarding any aspect of the compliance and ethics program.

MONITORING VIOLATIONS OF THE CODE OF CONDUCT

Violations of the Code of Conduct are essentially determined through:
n checks forming part of standard operating procedures

n periodic audit activities carried out by Internal Audit and Compliance Officers for each Group company

n complaints received in accordance with the Whistleblowing Procedures.

In 2012, violations of the Code involving 107 employees were revealed through standard operational checks. Of these,
no cases of discrimination were identified.
GRI-G3.1
Violations of the Code of Conduct are also identified by the Fiat Industrial Group Internal Audit and Compliance HR4, HR5, HR6, HR7, HR10, HR11,
department in collaboration with the Compliance Officers from each Group company. SO1, SO2, SO3, SO4, SO9, SO10
Sustainability Plan
This is achieved through standard procedures and specific compliance audits – business ethics audits, anti-bribery and Our commitments on page 28
corruption audits and health and safety audits. Cases of fraud at any level within the organization and actual violations of Glossary
Audit
the Code of Conduct by senior managers are submitted to the Internal Control and Risk Committee and to the Board
of Directors of Fiat Industrial S.p.A.

57
 economic corporate
dimension governance

The Group conducted 34 compliance audits in 2012. The audits concerned the agricultural and construction equipment
sector (11 audits), the trucks and commercial vehicles sector (19 audits) and the powertrain technologies sector
(4 audits). Of the 34 audits, 10 regarded business ethics issues, 19 environmental and occupational health and safety issues
and 5 specific issues of corruption and money laundering. The audits revealed substantial compliance with the relevant
standards, and did not uncover any cases of discrimination.
During the year, 46 reports of alleged violations were received under the Whistleblowing Procedures. Of this number,
two cases were confirmed as an actual violation of the Code, resulting in disciplinary action, and three cases led to the
implementation of measures to strengthen the Internal Control System; six cases were found to be groundless or without
sufficient corroborating evidence. Investigations are still underway for the remaining 37 cases.

Violations of the Code of Conduct

Fiat Industrial Group worldwide (no.)

Actions on completed investigations

Sector Reports Investigations Investigations No action Disciplinary Procedural
received in progress completed actions actions
(31/12/2012)
CNH 35 28 7 5 1 2
Iveco 11 9 2 1 1 1
FPT Industrial - - - - - -
Other activities - - - - - -
Total 46 37 9 6 2 3

For all Code violations, the disciplinary measures taken were commensurate with the severity of the case and complied
with local legislation. Regardless of whether or not criminal charges were brought by prosecuting authorities, these
violations were communicated to the relevant corporate functions.
The principal types of violation verified in 2012 included misuse of Group assets and inappropriate conduct by
employees. No cases emerged involving bribery.
In addition, in order to gauge supplier adherence to the sustainability standards set by Fiat Industrial Group, Fiat Group
Purchasing(1) monitors the supply chain through a process based on two principal elements: self-assessment questionnaires
for suppliers and field audits conducted by Group personnel or external organizations (see also pages 232-233). To the
Group’s knowledge, there is no use of child or forced labor at the plants of its suppliers.
During 2012, Fiat Industrial Group conducted a study of 99% of its total workforce(2) to determine the level of
compliance with the Code of Conduct with regard to the use of child labor.
Under the Code: “Fiat Industrial Group does not employ any form of [...] child labor; namely it does not employ those
younger than the permissible age for working as set out in the legislation of the place in which work is carried out and,
in any case, younger than fifteen, unless an exception is expressly provided by international conventions and by local
GRI-G3.1 legislation”.
HR4, HR5, HR6, HR7, HR10,
SO1, SO2, SO4, SO9, SO10 The study found that none of the companies mapped employ individuals under the statutory minimum age set by local
Sustainability Plan legislation for employment or for apprenticeships.
Our commitments on page 28
Glossary
It was also shown that no minor under the age of 18 employed by a Group company on a regular employment contract
Audit or as an apprentice is exposed to hazardous working conditions.(3)

(1)
A Fiat Group company that also conducts purchasing activities for all of Fiat Industrial Group’s companies to enable the global management of suppliers.
(2)
Study conducted on the total workforce as at 31 October 2012.
(3)
For the purposes of the study, hazardous working conditions include: work with dangerous machinery, equipment and tools, or which involves the manual handling or
transport of heavy loads; exposure to hazardous substances, agents or processes, or to temperatures, noise levels, or vibrations damaging to health; work under particularly
58 difficult conditions (long hours or work at night).
 Highlights
BUSINESS ETHICS AND ANTI-CORRUPTION GUIDELINES

Fiat Industrial Group is actively involved in the fight against all forms of corruption, adhering fully to national and international laws
and to principles of fairness, transparency and integrity. To ensure the highest standards are met, these principles have also been
detailed in the relevant guidelines. Together with the requirements of local law, these must be respected by all employees, agents,
suppliers and other individuals and entities that have a business relationship with the Group.
The guidelines specifically address:
n the prohibition of cash gifts to public officials, politicians or military personnel in order to obtain economic advantages for Group

companies

dimension
Economic
n the importance of including clauses in outsourcing and joint venture agreements that specify the consequences of violating anti-

corruption laws
n the prohibition of gifts and benefits-in-kind for the purpose of gaining preferential treatment

n the possibility of making donations for charitable purposes only and the requirement that contributions to political parties must

be approved by high-level management

n full compliance with laws applicable to the export of goods and services.

Relationships with public and private organizations

The Code of Conduct regulates Group relationships with public and private organizations of various types. Any lobbying activity
must be carried out in strict observance of relevant laws and regulations and in accordance with the principles of fairness,
transparency and integrity, as required by the Fiat Industrial Group Business Ethics and Anti-corruption Guidelines, and must be
authorized at the appropriate level within each Group company.
Fiat Industrial Group is committed to collaborating and maintaining an open dialogue with numerous organizations. It
is an active member of the principal trade associations within the sector, and regularly participates in both national and
international round-table discussions, in the firm belief that contributing to public policy development is an essential
requirement for a responsible company. This dialogue focuses on economic issues, such as the performance of Group
companies, factors relating to growth and more generally, labor policies (flexibility, training and pension schemes) and
specific requirements associated with manufacturing and commercial activities (technical, commercial and tax regulations).
As a member of various associations, Fiat Industrial Group is committed to contributing to the development of regulations
and standards for the capital goods sector and for issues regarding the mobility of people and goods.
Fiat Industrial Group is on the Joint Transparency Register, established by the European Commission and the European
Parliament for stakeholders. The purpose of the register is to ensure that lobbying practices are transparent and comply with
GRI-G3.1
relevant laws and ethical principles, with a view to preventing undue pressure and illegitimate or privileged access to information. HR1, HR5, HR6, HR7, HR10, HR11
In its capacity as a major industrial enterprise, the Group promotes ongoing and proactive engagement with central and SO2, SO4, SO5, SO6
Web
local institutions, especially in Italy. In 2012, for instance, Fiat Industrial Group continued to work in partnership with europa.eu./Transparency-register
Iveco and the Ministry of Infrastructure and Transport on the testing of a tractor/semitrailer system of up to 18 meters Glossary
Lobby, Stakeholders
in length, with the aim of optimizing transport capacity and reducing the environmental impact of heavy vehicles, while
meeting strict safety standards (see also page 77).

59
 economic corporate
dimension governance

At the European level, Fiat Industrial Group is a member of trade associations such as
the European Automobile Manufacturers’ Association (ACEA) for industrial vehicles, and the
European Committee of Associations of Manufacturers of Agricultural Machinery (CEMA) for
agricultural equipment. Through the ACEA, which is engaged in ongoing collaboration with
major European institutions, Iveco contributes to the drawing up of regulations and directives
concerning CO2 emissions for medium and heavy-duty commercial vehicles, both under the
direction of international working groups and by developing tests to define the best methodology.
In Brazil, the Group is an active member of the Associação Nacional dos Fabricantes de
Veículos Automotores (ANFAVEA), a trade association representing Brazilian manufacturers of
automobiles, industrial vehicles and agricultural and construction equipment. The association
conducts research on market and industry issues, as well as coordinating and protecting the
interests of its members.
In addition to its active participation in trade associations, Fiat Industrial Group collaborates
with public entities, universities and other organizations. This collaboration is strengthened
by the Group’s contribution to research and laboratory testing, aimed at drafting specific
legislation or regulations. An example of this is seen in some of the projects coordinated by
Iveco, with the support of the engineering departments of partner universities in Italy, under
the Industria 2015 program promoted by the Italian Ministry of Economic Development. This
is designed to identify strategic areas for driving future growth and competitiveness in Italian industry.
Lobbying activities on social issues in some countries, such as the United States, are managed separately by Group
companies, which deal directly with governments, institutions and trade unions. CNH has well-established processes in
place to ensure that the company’s lobbying of United States government bodies is in accordance with applicable laws
and government ethics and disclosure rules. In other countries, these activities are carried out through the industrial and
employers’ associations to which Group companies belong, such as the Bundesvereinigung der Deutschen Arbeitgeberverbände
(BDA) in Germany, and the Mouvement des Entreprises de France (MEDEF) in France. These associations are designed
to protect the interests of their members and represent them in social dialogue with key political and administrative
institutions, trade unions and other groups, both locally and nationally.
In Italy, Fiat Industrial Group has cancelled its Confindustria membership as of 2012, in order to negotiate its own labor contract.
Agreements forged directly with its social partners will allow the Group to compete on a level footing with its competitors at an
international level, during a particularly difficult period for the world economy. In addition, Business Europe – the confederation
of European businesses which, through 41 member federations from 35 countries, represents more than twenty million
companies of all sizes – is a recognized Group partner, and participates in social dialogue across the European Union.
Finally, any relationships between Fiat Industrial Group and political parties and their representatives or candidates
are conducted according to the highest standards of transparency and integrity. Financial contributions by the Group are
only allowed where permitted by law and must be authorized at the appropriate level within each Group company. In
Web
www.fec.gov 2012, no contributions were made to political parties. Any political association or financial contribution made by Group
Glossary employees is considered to be a personal matter, and completely voluntary. This includes contributions made through a
ACEA, Lobby
United States Political Action Committee (PAC). In accordance with US law, CNH provides support to the Case New
Holland Excellence in Government Committee (PAC) which collects voluntary personal contributions from its employees
for donation to political parties or candidates. Information relating to these contributions is available on the US Federal
Election Commission website.

60
 risk event
RISK MANAGEMENT

ENTERPRISE RISK MANAGEMENT MODEL

The Fiat Industrial Group, in accordance with the regulatory guidelines that require companies to Is risk event
adopt appropriate Corporate Governance models and in order to respond to market demands for applicable NO Analysis complete
to context being
ever-increasing levels of transparency and disclosure on the risks associated with company activities, analyzed?
has implemented and adopted its own Enterprise Risk Management (ERM) system.
The adoption of an ERM process was also driven by the need for a systematic approach with a focus
on identifying the risk profile associated with business activities and to allow for the management of yes

business performance from an integrated risk-return perspective. Furthermore, this process reflects

dimension
Economic
Modeling of impact from
the Group’s commitment to sustainability, with the inclusion of regular assessments of potential occurrenceof event and
risks deriving from the environmental and social impact of the Group’s business activities within the frequency of occurrence
internal auditing cycle.
Fiat Industrial Group continues to manage the ERM process according to the methodology adopted
by Fiat Group prior to the demerger, in which a risk is defined as any event that could have an effect Placement of eventon map
on the Group’s ability to meet its objectives. based on Impact (I) and
Likelihoodof occurrence (L)
The model, developed internally by Fiat in 2004, and since adopted by all current Fiat Industrial
Group companies, enables the timely identification of risks and the evaluation of their significance,
and allows action to be taken to mitigate and where possible, to eliminate, these risks. This model
was adapted from the framework established by the Committee of Sponsoring Organizations of
the Treadway Commission (COSO) to the Group’s specific requirements, and has been recently Does (I) x (L)
exceed
updated to incorporate the experience gained over the years and the best practice indicators which significance/ NO Analysis complete
have emerged through comparison with other industrial groups. In particular, risk driver mapping was acceptability
threshold?
redefined in order to respond to new requirements or to better represent several significant issues
(climate change, macro-economic developments, joint ventures, etc.).
yes
The audit carried out in the first months of 2012 incorporated the new driver, particularly for the
evaluation of risk areas associated with water scarcity and sustainable water management (water-
Analysis of monitoring
related risks), with a view to determining and anticipating local needs and avoiding adverse effects on and risk response
manufacturing processes and the company’s reputation. measures in place
The current catalog consists of 52 risk drivers, further broken down into 85 possible events. The
model continues to be based on the classification of risks according to likelihood of occurrence,
potential impact on profitability, business continuity and reputation (or on a combination of these
elements), which, when analyzed as a whole, determine the significance of a risk. For events that
Level of
exceed a predetermined threshold of significance, existing measures are analyzed and future monitoring adequate? yes Analysis complete
containment measures, action plans and responsible individuals are identified. Residual exposure
acceptable?
This process, supported by a dedicated information system, follows a bottom-up approach, which,
starting with an analysis on a business unit level, enables an assessment and summary report to
be generated for different companies, including any containment measures to be implemented. NO

The heads of the sectors involved in this process are required to approve these evaluations and Determination of “target”
reports, while Group Control is responsible for their coordination and consolidation into the Group exposure and identification of
mitigating strategies/actions
to be implemented

61
 economic corporate
dimension governance

Risk Report. This document is submitted annually to the Control and Risk Committee (set up in the course of 2012, in
place of the Internal Control Committee), which assists the Board of Directors in determining the adequacy and effective
functioning of the Internal Control System. Certain specific types of risk(1) are monitored by dedicated organizational units.
In particular, risks associated with the potential impact of the Group’s industrial activities on the environment and the
climate are monitored and proactively managed by the Environment, Health and Safety (EHS) unit for each company,
in accordance with the environmental pillar of World Class Manufacturing. The management of operational aspects is
the responsibility of plant managers at sites worldwide and is centrally coordinated by company EHS structures (see also
pages 113, 175). In addition, for the management of events that could potentially impact on the Group’s continuity of
operations and on the integrity of physical assets (and in particular on the Group’s 64 plants), a central role is played by
Risk Management S.p.A., a Fiat Group company that manages the control of pure risks (fire, explosions, natural disasters)
and insurance coverage for both Fiat Group and Fiat Industrial Group.

GRI-G3.1
1.2, 4.11, EC2, SO9, SO10
Sustainability Plan
Our commitment on page 29
Glossary
WCM

62 (1)
For further information on the management of financial risks, please refer to the appropriate section of the Annual Report and the sustainability section of the Company website.
MANAGEMENT OF PURE RISK
Fiat Group has always managed pure risk centrally, through a specialized risk center, which is responsible for the processes
of identification, quantification, analysis and technical and financial treatment of risks and monitoring of relative changes.
This center, which also serves Fiat Industrial Group, is Risk Management. It ensures compliance with the most rigorous
international prevention standards, combining these with the specific characteristics and strategies of the Group to
provide the methodological support necessary in order to make the best choices. With cross-functional and cross-sector
working groups, Risk Management sets out objectives and methodologies relating to the prevention of specific risk
categories, in accordance with industrial strategies.
Fiat Industrial Group’s Pure Risk Management Policy(1) is based on four fundamental pillars:
n to protect human resources, physical assets and continuity of production at the highest possible level

dimension
n to prioritize actions designed to prevent incidents and to limit the effects of these

Economic
n to adopt the most rigorous international standards for the prevention of and protection from risks, in order to ensure

a level of protection that is consistent across all Group sites. These standards are already applied during the planning
of new initiatives, while the goal for existing operational units is to meet these gradually
n to minimize risk-related costs, with a focus on finding the best balance between prevention/protection investment and

global insurance coverage, appropriately designed based on technical analyses.

This systematic prevention work relies on a management process, which is structured around five stages, with a view
to understanding, quantifying and monitoring the level of risk to which both the company assets and the continuity of
production are exposed.
The five stages call for:
n identification of the risks, areas, processes and key activities

n quantification of the likelihood of incidents occurring and of the potential economic impact of these, calculated both on

the basis of direct damage and the resulting interruption of Group activities
n analysis of risks using mapping and benchmarking tools, which allow for the identification of operational priorities based

on a cost/benefit ratio
n handling of risks with operations designed to reduce the likelihood of incidents, control the effect of these and minimize

economic impact
n constant monitoring of risk levels, both within existing operational units and on new projects.

In order to ensure maximum transparency and credibility, the strategic decision was taken to outsource the activities of
risk identification and quantification to a risk consulting company, which is part of a leading international insurance group
and participates, in a leadership capacity, in Fiat Industrial Group’s insurance coverage programs. This company carries out
a program of visits with a dedicated team to ensure a profound, constant and impartial knowledge of risk levels within the
scope of the entire Group. In order to manage the risks of a global organization such as Fiat Industrial Group, in addition
to strong central co-ordination ensured by the Risk Management team and by the company risk managers, there must be
GRI-G3.1
an adequate number of local specialists who can aid in reconciling the specific characteristics of different countries and 1.2, 4.11, EC2, SO9, SO10
cultures with the necessity to be uniform and aligned with the international prevention standards adopted by the Group. Sustainability Plan
Our commitments on page 29
The analysis stage is carried out within the Risk Management structure and uses the essential information that makes
up the Group’s risk database as a starting point. This stage allows for the identification of operational priorities with the
help of mapping tools that can quantify: the risk of occurrence of a given incident, the potential economic impact and the
investment cost necessary for handling it.

(1)
Pure risks are risks resulting from natural causes or accidental or malicious acts that may result not only in damage to goods or facilities but also lead to a short or long-
term interruption of operations. 63
 economic corporate
dimension governance

The Isorisk methodology is used for fire risks. It allows for the visualization of the risk in terms of the likelihood of
occurrence (vulnerability) and the potential economic impact (severity). Vulnerability is calculated using 38 parameters
measured during audits, whereas severity is defined as the potential loss anticipated, taking into consideration both direct
and indirect damage to the plant and to the Group. Using this methodology to calculate vulnerability and severity for each
site, the position can be visualized on a planar diagram, which provides:
n an immediate and general overview of the level of risk on the following levels: line of business, company and Group

n benchmarking between sites

n the definition of handling priorities

n the simulation of the impact of prevention and protection operations on the vulnerability and severity level.

Isorisk methodology

Risk= Vulnerability x Severity

e million
Plant B

Protection

SK
Improvements

RI
G
HIGHEST LOSS EXPECTANCY

IN
AS
RE
C
Plant A

IN
PrEVENTION
Improvements

Iso Risk Countour

R=K3>K2>K1
R=K2>K1
R=VxS=K1

0 VULNERABILITY 100

The schedule of visits within the scope of the study (98(1) sites that account for 91% of the total insured value)(2) is divided
into a three-year plan, which has allowed for the analysis of 55% in 2012 and 100% in the last 3 years. Furthermore,
Risk Management has followed 194 projects and initiatives on a global level, ensuring compliance with the international
prevention standards adopted by the Group. Prevention activities and investment in protection made in 2012, with a
global investment of €10.4 million(3), have allowed for the elimination of potential losses for €529 million(3) with a global
efficiency index equal to 1.97, in line with the highest international standards(4).
The cultural training schedule on prevention issues was implemented in 2012, with dedicated seminars, bringing the
number of plant specialists trained in the last six years to 112. Together, all of this field work performed during the year
enabled the elimination of 56 human factor non-compliances, raising the number of Group sites certified as entirely in line
with the most rigorous international prevention standards to 56%.

(1)
The term “site” refers to an individual unit, identified by a company, employer or business area, on which a specific risk assessment is performed. Therefore, every manufacturing
plant may be broken down into more than one site.
(2)
Calculation based on replacement value of property insured and cost associated with interruption of activity.
(3)
Figures relate to the period from 1 September 2011 to 31 August 2012 (Insurance Year).
(4)
In the management of major industrial risks, efficiency indices equal to or less than 3 are considered good and are analogous to an investment of €3 in order to eliminate
64 potential losses of €100.
Another important measure is the monitoring and thorough
study of every accident and near miss. In fact, when an
event occurs, it is very important to investigate its causes
immediately and identify the favorable and unfavorable
aspects that contributed to minimizing or amplifying its
effects in order to identify the best corrective actions, with
subsequent rapid passing on of the information to all Group
sites. This is achieved through the drafting of so-called loss
lessons that are distributed to all Group sites worldwide
through the Risk Management community intranet. In
2012, zero losses and eight near misses were studied,

dimension
Economic
from which 379 non-compliances/recommendations were
developed.
All of these activities and the results achieved in 2012, equal
to 45% of the insured value certified as Highly Protected
Risk (HPR) or as Nearly Highly Protected Risk (Nearly
HPR), were appraised and recognized by the international
insurance market to which Fiat Industrial Group refers for
insurance coverage of the Group’s pure risks. Accordingly,
it has been confirmed that prevention is an integral part of
company culture on all levels, fully integrated into both daily
activities and the development of new projects, and has the
full support of senior management.
In addition to these well-established activities, over the
course of 2012, the prevention team continued to dedicate
significant resources, through the Risk Management Lab,
to developing innovative prevention methods capable of
ensuring the ability to identify, analyze and properly manage
new potential pure risk elements for the Group within a
rapidly changing market.
As far as seismic risk is concerned, the three year project
carried out in collaboration with AXA Matrix and the
University of Naples continued, with a view to developing
an innovative methodology for quantitative risk analysis
GRI-G3.1
probability which allows for the evaluation of risk through 1.2, 4.11, EC2, SO9, SO10
a split study of the seismic danger of the area, structural Sustainability Plan
Our commitment on page 29
vulnerability and the potential economic impact in terms
Glossary
of direct and indirect damage. The scope is to obtain a Near miss
quantification of the potential exposure of an industrial site,
developing potential damage scenarios in order to pinpoint

65
 economic corporate
dimension governance

optimized mitigation strategies and operational priorities based on two possible levels of analysis depending on the type of
structural and geotechnical information available. In the first two years of the project, the work group developed and tested
a rapid analysis methodology, useful for the primary classification of seismic risk levels and a second, more detailed analysis
methodology to outline with extreme precision the structural fragility of a typical industrial building. In 2012 the project
focused on the study of a new methodology able to combine the positive aspects of both of the previous methodologies
(simplicity of the data collection process and scientific nature of the outcomes) developing a tool which, using seismic fragility
curves already documented in literature, would allow for a faster evaluation of structural fragility.
In order to be ready to manage the potential risks created by climate change, in 2010 the Risk Management team
produced a set of Guidelines to ensure that the whole Group remains aware of these risks and can prepare the appropriate
counter-measures. In 2011, the climate change project was continued, with the creation of an interdisciplinary work group
and the organization of a workshop, which was focused on compiling a preliminary list of potential new or increased risks
associated with climate change and assessment priorities. In 2012 the work group focused on the development of two
innovative methodologies of proactive management of the risks represented by atmospheric precipitation (in particular
rain, snow and hail), which in recent years has been the cause of the most significant accidents for the Group, both in
terms of frequency and impact.
The first of these, developed and tested in collaboration with a specialist firm, consists of a warning system via email and
text message, which, in the presence of situations constituting meteorological risk, alerts the emergency teams on industrial
sites to implement mitigative preventative actions. The other, also developed in collaboration with another specialist
engineering firm, provides a rapid analysis of the stormwater runoff collection and transportation systems at industrial sites.

66
This methodology is based on a gap analysis between the planning criteria used at the time of construction and the current
requirements based on increases in rainfall.
With regard to the 2012 insurable environmental risk analysis, after two years of study, development and testing, the
operative phase was launched, in which 46% of the total insured value was analyzed. This excellent result was obtained
thanks to the support of the Environment Health and Safety (EHS) unit, whose operational responsibility concerns the
management of environmental risk, and the ongoing commitment of the companies, which understood the project
objectives and allowed for the completion of a representative mapping of risk, and the implementation, in 2013, of a
program of targeted in-depth analysis.
In 2012, a study was launched into the feasibility of the development of an innovative methodology to quantify the impact
of industrial risk prevention and protection measures relating to potential CO2 emissions. This methodology must allow
for a parallel quantification of the potential impact of additional CO2 emissions to be added to the existing process of risk

dimension
Economic
identification, quantification and analysis based on the potential economic impact of a failure to comply with the prevention
standards adopted by the Group. This is designed to give priority to prevention and protection operations, not only based
on purely economic considerations (cost-benefit ratio) but also those relating to potential impact on the environment.

67
 economic SUSTAINABILITY
dimension GOVERNANCE

SUSTAINABILITY
GOVERNANCE
At Fiat Industrial the integration of economic decisions with those of a social and environmental nature constitutes a
commitment which is fundamental to the creation of value over the long term.
To fulfill this commitment, Fiat Industrial has adopted a robust sustainability governance model. From the outset, Fiat
Industrial’s operational approach has been based on sustainability best practice, working according to the operating
methods and organizational structures already in place at Fiat Group prior to the demerger, and adapting them to its
own specific business and organizational requirements. Firmly rooted in the corporate culture of Fiat Group, this model
has evolved year after year, encompassing best practice benchmarking and the implementation of recommendations
from major rating agencies.

GRI-G3.1
4.1, 4.9, 4.11, SO9, SO10
Sustainability Plan
Our commitment on page 28

68
TAKING Responsibility for sustainability
Sustainability is an intrinsic part of Fiat Industrial Group’s corporate governance model, and sees senior management
taking an active role.
The Nominating, Corporate Governance and Sustainability Committee is a subcommittee of the Board
of Directors which is tasked with evaluating proposals regarding strategic guidelines on sustainability-related issues,
presenting opinions to the board as necessary, and reviewing the annual Sustainability Report.
The Fiat Industrial Executive Council (FIEC), the
highest decision-making body after the Board of Directors, is
composed of the Group’s Chairman, the CEOs of the various
Fiat Industrial companies and the heads of key functions.

dimension
During 2012, the Council defined strategy, evaluated the

Economic
alignment of the Sustainability Plan with business objectives
and was periodically updated on the Group’s sustainability
performance. As of 12 November 2012, the FIEC was
replaced by the newly established Group Executive
Council (GEC). The GEC is responsible for reviewing
Group business performance, setting performance targets,
making key strategic decisions and investments for the
Group, overseeing capital allocation and sharing best practice,
including the development and deployment of key human
resources. The GEC will continue to monitor and oversee
the Sustainability Plan of the Group. It is headed by the
Group Chairman and has four main groupings; the first of
these is composed of four Regional Operating Groups which
oversee the production and sale of Agricultural Equipment,
Construction Equipment and Commercial Trucks, plus
Powertrains (FPT Industrial). Each group is headed by a Chief
Operating Officer (COO) who drives the organization via a
regional Management Team, and who reports to the Group
COO. The second grouping reflects the Group’s focus on
its brands: each group manager is tasked with enhancing
and developing an appropriate brand portfolio and with
implementing commercial and marketing strategies
tailored to each of the Group’s operating regions. The
third group is composed of industrial leaders who drive
a rigorous and consistent business approach across the
four operating regions, optimizing Group decisions on
capital allocation.
The fourth grouping is made up of individuals who occupy
key corporate positions in the Group, including the Chief
Financial Officer and the Chief Human Resources Officer.

69
 economic SUSTAINABILITY
dimension GOVERNANCE

The Sustainability Unit reports to the Chief Financial Officer and performs an operational role. The Unit is responsible
for regularly updating the sustainability management system, keeping abreast of developments in relevant fields, implementing
the recommendations of sustainability experts, rating agencies and investors, benchmarking the competition and, together
with Group companies, making adjustments to Key Performance Indicators (KPI). The Sustainability Unit plays a key role in
promoting a culture of sustainability across the Group: through analysis of Group businesses, it identifies opportunities and
risks which may arise when tackling environmental issues, defines action plans and targets (Sustainability Plan) to improve
Group sustainability performance and monitors progress towards meeting these targets. The Sustainability Unit is responsible
for preparing the annual Sustainability Report and for managing the sustainability section of the Group website; it also
completes any questionnaires required by rating agencies, responds, together with Investor Relations, to queries raised by
Socially Responsible Investors (SRI), and supports Group companies in their dealings with stakeholders on environmental
and social issues.
Group representatives in each company are a key part of the sustainability governance system, bringing their expertise
to specific issues involving the company’s reporting process and the outlining of proposals for improvement. Group
representatives are a direct link between the Sustainability Unit and the Group’s companies, acting as intermediaries
between the two from both a technical and an organizational point of view.
In order to address challenges relating to sustainability more effectively, some Group companies have appointed a
company Sustainability Manager. These individuals are tasked with coordinating and promoting responsible behavior
within their respective organizations, ensuring a link between the company and the Sustainability Unit, and managing the
activities of internal committees composed of representatives from the various company departments.
Iveco established also a Sustainability Committee in 2011, headed by the company CEO, while FPT Industrial set up its
own Sustainability Committee in 2012.
In addition, in 2012, social and environmental targets were incorporated into the Performance & Leadership Management
objectives (see also pages 160-161) for the majority of managers of the projects included in the Sustainability Plan, as well
as for first and second-level managers.

The sustainability management system

The sustainability management system consists of the following tools:
n a set of approximately 200 Key Performance Indicators (KPIs), designed to provide maximum coverage of

all the main environmental, social and governance sustainability factors, in line with GRI-G3.1 standards and the
requirements of major sustainability rating agencies
n the Code of Conduct and guidelines which are based on this, approved by the Board of Directors (see also page

51 and 55), which set out the Group’s approach to key issues
n the Sustainability Plan, which identifies action priorities and confirms commitments undertaken
GRI-G3.1 n the Sustainability Report, which annually discloses the Group’s performance on sustainability issues, expanding on and
4.5, 4.9, 4.11, SO9, SO10
Sustainability Plan complementing the information provided in the Annual Report and in the Annual Report on Corporate Governance
Our commitment on page 28 n a summary included in the Annual Report of material sustainability issues, to supplement the economic data
Glossary
n the Group website, which includes a dedicated top-level sustainability area presenting the contents of the most
GRI, KPI, SRI, Stakeholders
recent Sustainability Report, along with regular updates throughout the various reporting cycles.

70
SUSTAINABILITY PLAN PROCESS
The commitments, actions and targets contained in the Sustainability Plan are initially set out with reference to the areas
for improvement as identified by the Sustainability Unit, in collaboration with Group companies and central functions
(planning phase). To support this process, the Sustainability Unit monitors the performance of its closest competitors
throughout the year, together with the assessments of the principal sustainability rating agencies, international
organizations and socially responsible investors with whom the Group has a relationship. Responsibility for individual
projects and for achievement of targets agreed in the Sustainability Plan rests with the various companies or central
functions which have the resources, instruments and expertise necessary for their implementation (management
phase). To further ensure adherence to the commitments made, the Sustainability Unit is periodically updated on the
status of associated projects (control phase).

dimension
Economic
71
 Innovation
Management
For Fiat Industrial Group, innovation means managing a structured process while
remaining open to stakeholder contributions. The company focuses on offering
a range of products at the leading edge of environmental, safety and efficiency
standards while delivering low operating and maintenance costs.

72
 Innovation ECONOMIC
Management Dimension

THE INNOVATION PROCESS

The Group launched the Industrial Innovation Technology Committee 3x3 in 2011 with the aim of establishing a common
strategy for innovation throughout Fiat Industrial Group, and facilitating the transfer of expertise across the sectors.
During 2012, the Committee strengthened cooperation on sustainable innovation between the three Fiat Industrial
Group sectors, maintaining the focus on company strategy through the delivery of competitive products and the fostering
of Group-wide participation.
To oversee the innovation process, Group companies set up the Innovation Team to collaborate on specific projects between
other Fiat Industrial Group colleagues, external engineering companies, universities and research centers across the world.
This process of innovation is standardized to ensure continuity across products and brands, and to allow each stage to
be monitored: conception, assessment of feasibility, and virtual and physical prototyping. This is followed by product

dimension
Economic
engineering, testing via integration into the final product, and validation through advanced prototyping. Finally, a risk
assessment is carried out before moving onto the new product development stage.

GRI-G3.1
4.11, EC4, EN6, EN26

73
 economic Innovation
dimension Management

At FPT Industrial, innovation is also coordinated centrally through the Design, Concept and Quality Engineering
group. The process of innovation at FPT Industrial takes shape gradually, from the analysis of an idea through to its
development, by means of prototype feasibility testing. In the subsequent pre-development stage, the product is validated
via virtual and field testing.
In 2012, Fiat Industrial Group expenditure on research and development totaled approximately €895 million, or 3.6% of net
revenues for the Group’s industrial activities. Overall, research and development activities engaged 5,845 employees (an increase
of 16% compared with 2011) at 49 centers across the world, five of which are situated in South America, and employ 690
individuals with specialist skills (an increase of 27% compared with 2011). The Group focuses its research on the following areas:
+21% n products

in investment reduction of polluting emissions (see also page 86)

on R&D non-conventional propulsion (see also page 98)
alternative fuels (see also page 93)
ergonomics (see also page 102)
safety (see also page 224)
n manufacturing processes, under the Word Class Manufacturing program (see also page 107)

ergonomics in the workplace (see also page 184)

logistics (see also page 139)
quality
energy efficiency (see also page 130)
n working methods

virtual analysis
quality optimization
reduction of product development timeframes.
In July 2012, Fiat Industrial Group and the European Investment Bank (EIB) signed a €350 million loan agreement in
support of the Group’s research and development projects. The purpose of the loan is to finance projects at five Fiat
Industrial Group R&D centers in Europe: in Italy (where 83% will be invested), Germany (8%) and Switzerland (9%).
These projects are focused on increasing product energy efficiency and reducing CO2 emissions by means of:
n powertrain technologies and associated components which are compliant with new emissions regulations, and their

application on industrial, commercial and agricultural vehicles

n engine and transmission technologies and alternative fuels for commercial vehicles

n innovative architecture to deliver improvements in aerodynamics and reductions in vehicle weight, with emphasis on safety.

Public funding for Research and Development

Fiat Industrial Group worldwide (€ million)
2012 2011 2010
R&D spending(1) 895 742 652

2012 2011 2010

Grants 2 2 7
Loans 376 6 10
of which subsidized loans 26 6 10
of which EIB(2) loans 350 - -
Total 378 8 17

(1)
Includes capitalized R&D and R&D charged directly to the income statement.
74 (2)
European Investment Bank.
OPEN INNOVATION
Fiat Industrial Group’s innovation process spurs from the
development and exchange of ideas, and this is stimulated
through a range of tools and initiatives. Creativity is nurtured
across the entire organization, in all stakeholder groups,
from suppliers (see also page 228) to customers (see also
page 214). This is evident, for example, in the practice
of collecting employees’ suggestions for improvements
in manufacturing processes, in line with the World Class
Manufacturing (WCM) program. In 2012, 375 thousand

dimension
dimension
Economic
Economic
suggestions were submitted across the plants where the Each person
WCM has been adopted, an average of ten per person. suggested 10
Suggestions are collected by individual plants and cover
many issues: cost reduction, organization in the workplace,
improvement
equipment safety and efficiency, and general improvements proposals
to the working environment (see also page 107). In 2012, in
its publication cnh&me, CNH underlined the importance
of these contributions, citing the three employees who
submitted the most suggestions. In total, more than two
thousand ideas have been implemented since the adoption
of the WCM program.
In 2012, employees submitted 624 innovative ideas via the
CNH Innovation Portal, accessible online or through
the company intranet. Dedicated teams, centrally managed
by the Intellectual Property Department, receive regular
invitations to evaluate recently published applications or
patents. The aim of this process is to stimulate new ideas
for product improvement through an incentive program
that rewards employees who have patented an idea or
submitted a patent request. Employees can follow each
stage of the process on the Innovation Portal, which further
demonstrates the spirit of innovation within CNH.
Brainwave, an initiative for generating and managing
ideas within Iveco, was continued during 2012. Launched
GRI-G3.1
in September 2010, the system allows employees to post 4.11, EN6, EN26
queries on specific research topics, and to receive feedback Glossary
Stakeholders, WCM
via a web platform. The user community submits ideas that
are discussed and voted on, and promotes their development.
The best ideas are then submitted for formal evaluation
based on an established innovation process, and eventually

75
 economic Innovation
dimension Management

transformed into actual projects. Iveco product research is developed thanks in part to the active contribution of customers,
6,488 suppliers, public and private institutions, research centers and universities, through a rich information-sharing network.
active patents To this end, Iveco makes use of the Open Innovation method to create a global network of international partners from a
owned variety of professional categories, to improve the effectiveness and efficiency of the idea-generation process. The concept
of open innovation is based on today’s greater accessibility to information compared to the past. Remaining competitive and
successful, therefore, requires a degree of openness to new ideas and skills wherever these may be found, regardless of the
geographical location or company. The result is a dramatically increased problem solving capacity that paves the way for
innovative and distinctive solutions that make the product stand out. In 2012, these tools helped contribute to the innovative
character of the Concept Iveco Dual-Energy presented at the Hannover show (see also page 100).

Intellectual Property
Fiat Industrial Group worldwide (no.)
2012 2011 2010
Patents (active) 6,488 5,983 5,517
of which approved in year 887 911 1,021
New patent applications in year 510 474 545

PARTNERSHIPS AND PROJECTS

Fiat Industrial Group believes that participating in working groups and research projects is a winning strategy for expanding
the Group’s wealth of knowledge and skills, and for stimulating a dynamic exchange of ideas. The Group thus works, through
its individual sectors, in collaboration with about thirty universities in North America (USA and Canada), Europe (Italy and
Belgium), Latin America (Brazil) and Asia (China), with the aim of increasing its capacity for innovation. FPT Industrial, for
example, is developing projects on optimizing the combustion process with the Politecnico di Torino, Politecnico di Milano
and Politecnico di Zurigo, and a project on enhancing boosting systems with Imperial College London.
The companies that make up Fiat Industrial Group have a long tradition of involvement in national and international working
groups, and have played an active role in the European Commission’s Framework Programs for some years. CNH, for
example, is involved in two innovation projects under the Seventh Framework Program on precision agriculture
techniques (see also page 103), as a step towards a more sustainable production. The first is entitled Robot Fleets for
Highly Effective Agriculture and Forestry Management (RHEA). The aim of the RHEA project is a 75% reduction in the use
of chemicals, along with improvements in crop quality, human health and safety, and a reduction in production costs via
sustainable crop management by using a series of small and different robots. The second project is called Clever Robots for
Crops (CROPS), which concerns the development of a highly configurable and modular carrier platform inclusive of intelligent
tools (sensors, algorithms, sprayers and grippers) easy to install on the platform itself and that can be adapted for a variety of
GRI-G3.1
4.11, 4.13, EN6, EN26, SO5 tasks and conditions. CROPS will be able to spray accurately onto foliage only, and to harvest fruit selectively. Another goal
Glossary of the project is to develop techniques for the reliable detection and classification of obstacles and other objects, enabling
ANFIA, Magnetocaloric Effect,
Range extender
autonomous navigation and allowing the platform to work effectively in plantations and forests.
The projects that make up the Seventh Framework Program in which Iveco is involved, on the other hand, are strongly
focused on research into innovative solutions for sustainable mobility. In the ICT-EMISSIONS project, for example, a
new approach is being developed for evaluating and quantifying the benefits of IT tools in assessing energy efficiency and

76
CO2 reduction. A model for calculating emissions is also being developed, which monitors driver behavior and can be
employed in transport planning by local authorities, component manufacturers and their suppliers.
The COmplete Vehicle Energy-saving Technologies for Heavy-Trucks (CONVENIENT) project is centered on reducing
vehicle fuel consumption by 30% in the long-distance transport of goods, mainly focusing on energy efficiency
and enhancing aerodynamics. The Hybrid Commercial Vehicle (HCV) project’s purpose is to create an urban goods
vehicle that – thanks to its latest generation hybrid architecture in addition to the optimization of control logics and
auxiliary systems – makes a major difference in reducing emissions. To enhance on-board comfort while reducing
fuel consumption, the MagnetoCaloric Refrigeration for Efficient Electric Air Conditioning (ICE) project focuses on
the development and installation of a highly efficient magnetocaloric electric cooling system, which keeps vehicle
temperature down without generating CO2 emissions. The European Bus of the Future (EBSF) is a prototype meant
to define a new generation of buses for European city centers. Main developments focus on maximizing the number

dimension
Economic
of passengers in the vehicle, standardization of information systems on board and an architecture that ensures bus
capacity flexibility dependent on the situation. Research into electric propulsion is currently focused around two
on-going projects. The first is the Multi-fuel Range Extender with high efficiency and ultra-low emissions (FUEREX) project,
a system for on-board integration into electric vehicles. The second is the Optimized Modular Range Extender for every day
customer usage (OPTIMORE) project, a range extender to ease the transition from combustion engine to electric traction.
In 2012, under the ANFIA association and in collaboration with the Ministry of Infrastructure and Transport, the DICIOTTO
project allowed performing road tests on an 18-meter long tractor/semitrailer system, to optimize the transport
capacity and environmental footprint of heavy vehicles, while following strict safety standards. Between January and June
2012, these vehicles covered 1.6 million kilometers, bringing total road testing to over 4.7 million kilometers.

77
 economic INDEXES, RATINGS
dimension AND INVESTORS

INDEXES, RATINGS
AND INVESTORS
SUSTAINABILITY INDEXES AND RATINGS
Fiat Industrial Group’s ongoing commitment to environmental and social responsibility, together with the results it has
achieved in this sphere, has again ensured the company’s inclusion in some of the world’s most prestigious sustainability-
focused equity indexes in 2012.
In September 2012, Fiat Industrial Group ranked as Sector Leader for the second year running in the Dow Jones
Sustainability World Index and Dow Jones Sustainability Europe Index.
The company scored 85/100, compared to an average of 51/100 for all companies in the Industrial Engineering sector
analyzed by RobecoSAM, a group specializing in company sustainability solutions. DJSI World and DJSI Europe are the most
prestigious sustainability-focused equity indexes, and only include those companies judged to be best-in-class for their
economic, environmental and social performance.
For the second consecutive year, Fiat Industrial Group has been included in the Carbon Disclosure Leadership
Index (CDLI) Italy 100 with a score of 91/100, as stated in the report published by the Carbon Disclosure Project
(CDP). The company also received a B rating for its commitment to reducing CO2 emissions (where A is the highest score
and E the lowest). Companies are rated according to data provided on factors linked to climate change. A high score
indicates good internal management and a satisfactory understanding of the relevant issues. Ten companies were included
in the index this year, based on their responses to the CDP 2012 questionnaire.
Fiat Industrial is part of the MSCI WORLD ESG, MSCI WORLD ex USA ESG, MSCI EAFE ESG, MSCI
EUROPE ESG. MSCI ESG Indices are designed to help clients incorporate environmental, social and governance
(ESG) factors into their investment decisions. The composition of the MSCI Global ESG Indices is reviewed on an annual
basis in May to coincide with the May Semi-Annual Index Review of MSCI GIMI. In addition, the MSCI Global ESG
Indices are also reviewed on a quarterly basis to coincide with the regular Index Reviews (Semi-Annual Index Review in
November and Quarterly Index Reviews in February and August) of MSCI GIMI.
Fiat Industrial Group achieved a score of 57/100, awarded by Vigeo based on its performance with regard to
environmental, social and governance factors over the course of 2012. The Group finished in first place out of 15
companies in the Industrial Goods & Services sector in Europe. Vigeo evaluates the importance that public and private
Sustainability Plan companies give to environmental, social and governance matters throughout their operations. These issues constitute risk
Our commitment on page 28
Glossary factors for organizations when formulating and implementing company policy and strategy. Vigeo’s analysis evaluates the
ESG factors, KPI, SRI level of commitment shown in setting CSR and sustainable development targets, identifies risks to which the organization
is exposed and assesses a company’s ability to manage those risks.
In November 2012, Vigeo launched a new range of ESG indices in collaboration with NYSE Euronext, a leading operator
of financial markets. These indices allow the performance of many companies included in the Stoxx 1800 index in North

78
America, Asia Pacific and Europe to be assessed. All companies are eligible for inclusion by Vigeo regardless of industry,
sector or product, with the exception of those banned by international conventions or treaties. The companies included

dimension
Economic
in the indices are therefore those that perform best, based on the 330 indicators used by Vigeo.
Since 1 November 2012, Fiat Industrial Group has been included in Vigeo World 120 and Vigeo Europe 120.
In September 2012, Fiat Industrial Group became one of an exclusive group of companies included in the Advanced
Sustainability Performance Eurozone Index (ASPI Eurozone®), following research carried out by Vigeo.
ASPI Eurozone® is recognized as one of the most important sustainability indexes, used by a growing community of
socially responsible investors to define sustainable investment scenarios, to benchmark their investment performance or
to create index-linked products.
The STOXX Global ESG Leaders indices are sustainability indices based on a transparent and rules-based selection process.
Only the leading global companies in terms of environmental, social and governance criteria are included in these indices,
according to ESG indicators provided by the ratings agency Sustainalytics. The ratings model is based on KPIs contained in
the ESG 3.0 standard, published by DVFA, the Society of Investment Professionals in Germany, and EFFAS, the European
Federation of Financial Analysts Societies. The ESG Global Leaders index family consists of STOXX Global ESG Environmental
Leaders, STOXX Global ESG Social Leaders and STOXX Global ESG Governance Leaders. The three sub-indices are
summed up to form the overall index, the STOXX Global ESG Leaders. For the Blue-chip ESG indices, the 50 largest stocks
by free float market capitalization are selected, which are part of the STOXX Global ESG Leaders index as well as part
of the respective regional broad index. Fiat Industrial Group has been included in the STOXX® Global ESG Leaders,
STOXX® Global ESG Environmental Leaders, STOXX® Global ESG Social Leaders, and in the new EURO
STOXX ESG Leaders 50 index, created in May 2012.
ECPI is an investment advisory company that has been producing ESG/Sustainability indices since 1997 for investors who factor
non-financial elements into their investment decisions. From 2013, ECPI has decided to stop calculating the ECPI Developed
Ethical+ Equity. In 2012, Fiat Industrial was again included in the ECPI Ethical EMU Equity index.
Fiat Industrial Group is also included in the FTSE ECPI Italia SRI Index Series, which is composed of companies listed on
the Milan stock exchange, produced by FTSE (a British company owned by the Financial Times and the London Stock
Exchange) and ECPI. Specifically, the FTSE ECPI Leaders index is made up of a selected basket of Italian listed companies
which have performed particularly well in terms of environmental, social and corporate governance factors (ESG). ECPI
periodically analyzes the information disclosed by the top 100 listed companies on the Borsa Italiana Main Market. Only
those companies rated EE or above are included in the index (where F is the lowest rating and EEE the highest). The index

79
 economic INDEXES, RATINGS
dimension AND INVESTORS

is equally weighted to ensure equal exposure to all Italian listed companies identified as ESG leaders. Fiat Industrial Group
is included in FTSE ECPI Italia SRI Benchmark and FTSE ECPI Italia SRI Leaders.
In November 2012, Oekom Research awarded Prime status to Fiat Industrial Group, identifying it as a sustainability
leader in its sector. Oekom Research, founded in 1993, is one of the world’s leading sustainability rating agencies.

Fiat industrial GROUP AND SOCIALLY RESPONSIBLE INVESTORS

Fiat Industrial’s firm commitment to sustainability is underscored by the number of socially responsible investors who choose to
invest in the company’s stock on the basis of environmental, social and governance factors, alongside more traditional financials.
As at 30 November 2012, 4.72%(1) of floating Fiat Industrial Group shares were held by 28 asset owners(2) and by 41
socially responsible mutual funds(3).
This percentage is similar to pre-demerger levels and slightly below (-0.53%) a reference benchmark made up of an average
of SRI investor holdings calculated on five companies (Fiat Industrial Group and four of its competitors). Specifically, Fiat
Industrial Group ranked second outperforming three of these companies. Only one company scored higher, significantly
enough to raise the average. The trend over the period under assessment (see graph) demonstrates the strong potential
for growth of Fiat Industrial Group stock originating from this type of investor.

Free Float

10%
9.26%
9%
8%
7.82%
7%
6.64%
6%
5.12%
5%
4%
4.72%
3%
2%

1%

0%
01/01/2011

31/05/2011

30/11/2011

31/05/2012

30/11/2012
Fiat Industrial benchmark Source: Vigeo

(1)
Analysis conducted by Vigeo SA. The Vigeo analysis covers the largest global asset owners, mainly pension funds (national, occupational, company specific, and local
governments), but also foundations and other institutional owners. From this group, an asset owner is identified as being an SRI if at least one of these conditions is met: it
adopts SRI principles in its investment policy (voting, engagement, activism, screening), has dedicated SRI mandates, or uses SRI benchmarks. The analysis also covers green,
social and ethical mutual funds operating worldwide. To be eligible for analysis, a fund must use ethical, social or environmental screening for stock and bond issuer selection
(negative screens and/or best-in-class), be marketed as SRI and be available to the public (retail funds).
(2)
Large financial organizations investing their own assets, pension funds, foundations, public funds and insurance, endowments or sovereign funds. These do not include
assets managed by management firms on behalf of their clients.
(3)
The term is used in the same sense as for the European Fund and Asset Management Association (EFAMA) Statistical Releases: publicly offered open-end funds investing
in transferable securities and money market funds. However, data are not fully comparable as this report includes some life insurance and pension funds which comply with
80 Vigeo definitions (Green, Social and Ethical Funds in Europe – 2012 Review) .
81
Economic
dimension
Environmental Dimension

84 Innovation and product

106 Manufacturing processes
139 Logistics processes
146 Non-manufacturing processes
 INNOVATION AND
PRODUCT
Fiat Industrial Group is committed to fighting climate change, through the
sale of innovative products with optimized efficiency and reduced emissions
of pollutants and CO2. The Group invests extensively in research, both into
fuels derived from renewable sources and into the development of alternative
transport systems. This research is increasingly focused on managing the entire
life cycle of products, the use of new and recycled materials, intelligent driver
assistance systems and agricultural activities, with attention paid to active and
passive safety.

84
 INNOVATION AND Environmental
PRODUCT Dimension

Fiat Industrial Group is a global leader in the field of capital goods, and through its companies it designs, manufactures and
markets an extensive range of products. These include industrial vehicles, buses, special vehicles, tractors and agricultural
and construction equipment, as well as engines for a variety of applications (including marine) and other systems.
Fiat Industrial Group is aware of the role it plays in reducing the level of greenhouse gases, and is therefore committed
to researching and developing products and processes that are safe, environmentally friendly and cost-effective. The Fiat
Industrial Group Environmental Guidelines, approved in September 2010, translate this responsibility into clear goals and
set out the main courses of action to be taken throughout the product life cycle, from conception, production and use
to end-of-life management.
In the design phase, the Group’s companies continually seek to combine innovation with economic feasibility, while
also giving preference to recycled materials. These materials make it possible to reduce raw material usage, and can
be reused or recycled once the product has reached the end of its life. The design phase also focuses on reducing the
number of product components to simplify maintenance operations and sorting at end of life. To monitor and optimize
the level of recyclability and recoverability of the components used in certain product ranges, Group companies have
adopted the International Material Data System (IMDS), an online database where suppliers can upload data. This allows
for the identification of the substances found in the Registration, Evaluation, Authorisation and Restriction of Chemical
substances (REACH) or Substances of Very High Concern (see also page 104).
In the production phase, all Group activities are carried out with an emphasis on mitigating environmental impact.
Effective management systems in place across the Group are key to the implementation of the commitments undertaken

Environmental
in the Guidelines. 53 plants have achieved standards of excellence set by World Class Manufacturing (WCM); 56 have

dimension
ISO 14001 environmental certification and 23 have adopted ISO 50001 energy system certification (see also pages 111, 113, 131).
The innovation process is developed with the utmost consideration for the environmental impact of product use; this phase can
generate, in some cases, as much as 85% of the CO2 emissions of the entire life cycle(1).
The Group offers a portfolio of products whose polluting emissions meet the most stringent European and US
standards. This is the case with the Cursor engines range, which, thanks to HI-eSCR, already meet Euro VI requirements
ahead of their effective date. The Group invests in research to improve the efficiency of its engines and to develop
alternative solutions, ranging from the study of the use of fuels derived from renewable sources to alternative traction

GRI-G3.1
1.2, 2.2, 4.11, EC2, EN6, EN26
Sustainability Plan
Our commitments on pages 29-31
Glossary
ACEA, Euro VI, IMDS, ISO 14001,
ISO 50001, REACH, SCR, WCM

(1)
ACEA Position on Life Cycle Assessment, 2012.
85
 Environmental INNOVATION AND
Dimension PRODUCT

systems. Applications to optimize the customer’s driving style can also help reduce emissions; the human factor contributes
greatly to reducing fuel consumption, while intelligent driver assistance systems (ADAS) increase safety for all road users
(see also page 226).
In recent years, the Group has adopted an integrated approach for a more detailed calculation of the environmental
impact of the life cycle of individual products. This makes it possible to further improve environmental performance,
allowing customers to make environmentally responsible and cost-effective choices. Improving the performance of
products in terms of consumption, duration and longer maintenance intervals, as well as providing access to urban areas
at cheaper rates for certain types of vehicles, can help reduce Total Cost of Ownership (TCO) and, at the same time, the
product’s environmental impact. The Group’s companies have also started to calculate the carbon footprint of the entire
life cycle of their products. Iveco started this effort in 2012 with its Daily commercial vehicle and FPT Industrial will follow
suit in 2013 with its F1 light diesel engines (see also page 90).

Reduction of POLLUTant EMISSIONS

Fiat Industrial Group’s environmental policy is focused on progressively reducing pollution, and the Group is dedicated
to developing efficient systems to cut polluting emissions. The diesel engine combustion process produces harmful
substances, including nitrogen oxides (NOX ) and particulate matter (PM). Organizations such as the European Union
(EU) and the United States Environmental Protection Agency (EPA), along with emerging countries such as China, are
adopting increasingly stringent standards to reduce air pollution caused by the products of combustion. The body of laws
regulating the emission levels includes Euro standards for heavy commercial vehicles and buses, the EPA’s Tier standards
and the EU’s Stage standards for agricultural and construction equipment.

GRI-G.3.1
1.2, 2.2, 4.11, EC2, EN26
Sustainability Plan
Our commitments on page 29
Glossary
ADAS, Carbon footprint,
EPA, Euro VI, NOX ,
PM, TCO, Tier

86
AGRICULTURAL AND CONSTRUCTION equipment
Since the Tier 4A/Stage IIIB standards took effect in 2011, FPT Industrial has continued to work to reduce harmful +75%
pollutants emitted from its engines in order to ensure compliance with Tier 4B/Stage IV standards. These will come into of agricultural equipment
force as of 1 January 2014 for engines with a power output over 130 kW, and then be phased in for other engines with already compliant
an intermediate power output. The transition to Tier 4 for lower power outputs is scheduled for 2013. Compliance with with
Tier 4B/Stage IV requires a significant reduction in NOX emissions (-80%) compared with current Tier 4A/Stage IIIB levels.
No further reductions are planned for particulate matter, as these were already reduced by 90% in the previous phase.
Tier 4A/Stage IIIB
standards

Emissions standard
Engines for off-road vehicles

2008 2009 2010 2011 2012 2013 2014 2015 2016

130 ≤ P ≤ 560 kW Tier 3/Stage IIIA

Tier 4 interim/Stage IIIB

Environmental
dimension
Tier 4/Stage IV

56 ≤ P < 130 kW Tier 3/Stage IIIA

Tier 4 interim/Stage IIIB

Tier 4/Stage IV (1)

Tier 3/Stage IIIA

19 ≤ P < 56 kW Tier 4 interim/Stage IIIB

Tier 4/Stage IV

P = rated power

In the agricultural equipment sector, CNH, in collaboration with FPT Industrial, will continue to rely on the SCR technology
GRI-G.3.1
for high-power engines falling under Tier 4B Final/Stage IV standards. However, the compact light CEGR with a small SCR 2.2, 4.11, EN26
system will be applied to engines below 88 kW. Sustainability Plan
Our commitments on page 29
In 2012, the range of products marketed by CNH that comply with Tier 4A/Stage IlIB was extended compared to the
Glossary
previous year, as follows: EGR, NOX , PM, SCR, Tier
n 140 models of agricultural equipment, up by 75% compared with 2011

n 116 models of construction equipment, up by 55% compared with 2011.

(1)
The effective date of Stage IV is 1 September 2014, while Tier4 will come into force on 1 January 2015.
87
 Environmental INNOVATION AND
Dimension PRODUCT

TRUCKS AND COMMERCIAL VEHICLES

Fiat Industrial Group is equally committed to fostering positive change in the commercial vehicles sector, and focuses
on developing and implementing innovative solutions that reduce emissions ahead of the deadlines set by regulations.
The introduction of Euro VI is a milestone in the development of world emissions standards. For the first time, a World
Harmonized Test Cycle (WHTC) has been introduced for engine certification. The new Euro VI standards will apply to
GRI-G.3.1 all new heavy commercial vehicles and buses registered from 1 January 2014. Compared with Euro V, they introduce
4.11, EN6, EN26
Sustainability Plan significant reductions in the level of tailpipe emissions permitted for the following pollutants:
Our commitments on page 29 n NO emissions decreased by 80%
X
Glossary
n PM emissions reduced by 66%
Euro VI, NOX ,
PM, WHTC n overall reduction of PM by over 95%

n introduction of a threshold for ammonia emissions (NH ).

3

88
Two systems are available for cutting the NOX emissions of a diesel engine: the Exhaust Gas Recirculation (EGR)
system and the Selective Catalytic Reduction (SCR) system. The former recirculates exhaust gases in the combustion
chamber, but this impacts engine efficiency and produces a large amount of PM. The latter reduces exhaust NOX , while
maintaining optimized combustion, cutting fuel consumption and reducing the frequency of DPF (Diesel Particulate Filter)
regeneration. Since 2005, Iveco and FPT Industrial have developed and introduced the SCR system that uses AdBlue for
NOX reduction. AdBlue is a solution of urea and demineralized water that reacts with the engine’s exhaust gases in the
presence of a catalyst, decomposing NOX into non-polluting molecules. The SCR technology, developed by FPT Industrial,
has been enhanced with a new integrated approach that has resulted in numerous patents on the emission control system Compliance with
for precise AdBlue dosing. This system consists of: Euro VI
n AdBlue’s adaptive dosing system, which, using sensor-based control technology that measures the levels of nitrogen

oxide and ammonia, provides accurate information on exhaust gas composition

standard
prior to deadline
n the thermally insulated high turbulence mix, which allows for homogeneous hydrolysis of the urea and correct distribution
thanks to
in the exhaust gas flow
n improved thermal management to accelerate the activation of the SCR system during the cold phase of the
HI-eSCR
emission cycle. technology
All components of the exhaust gas post-treatment system are housed inside a compact, sealed structure which optimizes
the vehicle’s weight and does not hinder bodywork or chassis equipment assembly. The High Efficiency SCR (HI-eSCR)
system has been patented to further improve the quality of emissions ahead of the effective date for Euro VI standards.

Environmental
The system features a network of integrated sensors that monitor nitrogen oxide emissions and NH3 levels. The new

dimension
system consists of the following components:
n Diesel Oxidation Catalyst (DOC)

n Passive Diesel Particulate Filter (DPF)

n AdBlue dosing unit

n AdBlue mixer

n Selective Catalytic Reduction (SCR)

n Clean Up Catalyst (CUC).

Highlights
Iveco Stralis Hi-Way
The Stralis Hi-Way belongs to Iveco’s new range of heavy vehicles, and was designed in response to the demand for diesel
engines with lower polluting emissions. The unique High Efficiency SCR technology was adopted on this model as early as 2012.
Also known as HI-eSCR, it will allow the new Stralis Hi-Way to meet Euro VI limits without need for Exhaust Gas Recirculation
GRI-G.3.1
(EGR). The technology developed by FPT Industrial increases engine efficiency and reduces particulate matter produced during 2.2, 4.11, EN6, EN26
combustion, thereby improving fuel consumption, performance and reliability. Furthermore, the compact size of the HI-eSCR, Sustainability Plan
Our commitments on page 29
which features a single NOX treatment system, reduces weight. Combustion optimization increases efficiency while reducing engine
Glossary
fuel consumption. The decreased production of particulate matter allows passive regeneration by the particulate filter (DPF) with EGR, Euro VI, NOX , PM, SCR
no need for additional cooling as required by the EGR. In addition, less energy is dissipated.

89
 Environmental INNOVATION AND
Dimension PRODUCT

Reduction of CO2 emissions

Fiat Industrial Group products include agricultural and construction equipment, trucks, buses, special vehicles, small and
large engines, marine engines and other systems. No single solution exists for cutting CO2 emissions; this can only be
achieved through a combination of conventional and alternative technologies. Fiat Industrial Group is working to develop
increasingly efficient and environmentally friendly products, reducing CO2 by:
n optimizing the environmental performance of conventional engines

n increasing the use of alternative fuels

n developing non-conventional propulsion systems

n optimizing energy efficiency

n raising customer awareness on the relevance of driving style to performance, efficiency and the environment.

Highlights
Carbon footprint project
In line with international standards and best national and international environmental practice, Fiat Industrial Group has launched several projects to monitor
greenhouse gas emissions from its activities. In particular, Iveco has launched a project designed to calculate the carbon footprint of its Daily commercial
vehicle at the Suzzara plant in Italy. As of 31 December 2012, the Daily accounted for 28% of Iveco’s total turnover. The project will be developed over
the course of 2013 and be based around the calculation of greenhouse gas emissions associated with the entire life cycle of the product and related services.
The ultimate goal of this initiative is to find ways of reducing emissions during the various stages. Since 2011, CNH Latin America too has been engaged
in the analysis of its production, logistics and administration. A closer look at the early stages of the Carbon Footprint Program shows that the project has
made it possible to adopt specific measures to reduce the environmental impact at all levels and to address this issue early on during the design phase.
These include simple interventions in everyday life that can reduce the amount of CO2 equivalent produced. This effort sees CNH Latin America relying
not only on its staff, but also on the engagement of suppliers to consolidate their environmental performance. The project will continue next year with the
launch of this assessment process at CNH plants in Argentina. Once the project activities are completed, it will be possible to measure the carbon footprint
and assess the effectiveness of measures put in place. FPT Industrial is engaged in a similar effort to calculate the carbon footprint and in 2013 it will launch
a Life Cycle Assessment (LCA) project based on the entire life cycle of its F1 light diesel engines, which constitute 50% of company engine manufacture.
The LCA program will allow opportunities for improvement to be identified through the assessment and quantification of the causes and environmental
impacts associated with products, particularly in terms of CO2 emissions.

Optimizing performance
Reduced fuel consumption is essential to cutting emissions. Fiat Industrial Group is dedicated to exploring alternative
solutions to optimize performance and reduce fuel consumption, making vehicles more environmentally friendly
GRI-G.3.1
2.2, 4.11, EN6, EN26 while reducing operating costs.
Sustainability Plan
Our commitments on page 30 Agricultural and construction equipment
Glossary
Carbon footprint, With regard to off-road diesel engine compliance with Tier 4B/Stage IV standards, FPT Industrial has launched
LCA, Tier re-engineered engines that will allow customers to benefit from the main features they are accustomed to, most notably
very low operating costs. To optimize combustion efficiency, major changes were made to the crankcase and cylinder head

90
designs, resulting in structural rigidity and increased swept volume. The engines are equipped with the latest generation
of common rail fuel injection system with peak nozzle pressures of up to 2,200 bar. A new electronic control unit was
introduced to manage engine parameters and the accurate control of the exhaust gas after-treatment system. The new
control unit has been designed to be compact, and to integrate engine and SCR system functions. In order to reduce
environmental impact, the Tier 4A/Stage IIIB engines feature closed circuit breathing systems, which are also available in
the Tier 4B/Stage IV engines. Furthermore, since only filtered air is injected into the engine and not recirculated exhaust
gas, engine wear is minimal, with extremely high oil change intervals (up to 600 hours) and no need for an oversized oil
sump. This too is beneficial, both in terms of reducing the environmental impact resulting from the disposal of waste oil
and of cutting operating costs and downtime for scheduled maintenance.

Environmental
dimension
Trucks and commercial vehicles
Continuous technological advances applied to an already cutting-edge range of diesel engines have led to the creation of the
GRI-G3.1
Euro VI engine range, characterized by higher performance, allowing Iveco vehicles to provide best-in-class features. High 2.2, 4.11, EN6, EN26
mean effective cylinder pressure and high injector nozzle pressures are key to the optimization of combustion efficiency. Sustainability Plan
Our commitments on page 30
Equally, these results have been achieved by making significant changes to the crankcase and cylinder head designs, which
Glossary
now provide increased structural rigidity, higher coolant flow capacity and increased swept volume. The range of Euro VI Common rail, Euro VI,
engines is equipped with the latest generation of common rail fuel injection system with peak nozzle pressures of up to SCR, Tier

2,200 bar. A new electronic control unit was introduced to manage engine parameters and the accurate control of the

91
 Environmental INNOVATION AND
Dimension PRODUCT

exhaust gas after-treatment system. The new control unit has been designed to optimize compactness and to fully integrate
engine, SCR system and DPF functions.
For example, Cursor engine versions with variable geometry turbocharger feature an electronic control unit that
optimizes load response at low engine speeds and increases engine brake effectiveness. All engines will now mount the
flap-type engine brake valve to support passive DPF regeneration and to improve engine brake performance by up to
30% compared with current Euro V engines.
In order to ensure reduced environmental impact, the Euro V and Enhanced Environmentally-Friendly Vehicles (EEV)
engines are equipped with a closed circuit suction system, a feature also available on the Euro VI series. In order to prevent
any oil mist carried in engine blow-by gases, high performance oil separation systems have been introduced to minimize
any risk of DPF contamination.
Engine-out particulate emission rates are already low thanks to the optimized combustion regime, rendering forced DPF
regeneration unnecessary. This is extremely important in terms of fuel use and periodic servicing. In addition, since the
engine only receives clean filtered air rather than recirculated exhaust gases, engine wear is kept to a minimum and oil
change intervals are much longer, reaching up to 150 thousand kilometers. This helps reduce the environmental impact
GRI-G3.1
2.2, 4.11, EN6, EN26
linked to waste oil disposal. In summary, the advantages of this system are:
Sustainability Plan n greater reliability
Our commitments on page 30 n greater power without the need for a sophisticated air handling system
Glossary
EEV, Euro VI, n low operating costs due to low engine wear and high maintenance intervals
Gas blow-by, SCR n simple and compact design, both of the engine and high efficiency after-treatment system, reducing weight and

installation space.

92
 Highlights
FPT INDUSTRIAL AWARDED IN CHINA

FPT Industrial has won two prestigious awards at the Parts Industry Summit and Forum and the Company of the Year Award 2012,
organized by HC360.com China Construction Machinery in Shanghai. Established in 1992 as an offline service provider, HC360 is
now the leader in online B2B services and e-commerce in China. The prize for the most influential powertrain systems brand in
the construction equipment sector awards those brands that have excelled in their efforts to improve technology in the Chinese
construction industry. One example is Strong company decision to introduce the latest generation of FPT Industrial Tier 4 engines
into its excavators range.
The other prize, for the most important technological innovation, went to FPT Industrial for its HI-eSCR system and its efforts to
protect the environment.

Fuels

Environmental
Fuel roadmap

dimension
Fiat Industrial Group has taken fur ther steps to reduce its environmental footprint, developing alternative ways
to use fuels based on their Global Warming Potential (GWP). In the near future, diesel will continue to be the
predominant fuel. However, the adoption of systems to reduce fuel consumption in vehicles will allow a more
intelligent use of this resource. The use of Compressed Natural Gas (CNG) will increase and it may play an
impor tant role in urban areas, especially considering the expected increase in the availability of biomethane
(methane produced from urban waste biomass) on the market. Liquefied Natural Gas (LNG) also has good
prospects for growth. It offers the same advantages as CNG in terms of fuel economy and lower emissions as
well as greater range. With regard to biodiesel, Fatty Acid Methyl Ester (FAME), a first-generation biofuel, will
see a consolidation of its position, opening the way to second-generation biofuels. These are mainly hydrotreated
vegetable oils (HVO), derived from vegetable oils that do not weigh on the food chain, and biomass to liquid (BTL)
fuels, obtained from biomass through a chemical transformation process. Second-generation biofuels are the future
of biofuels. Not only are they obtained from a wider variety of raw materials (biological waste materials, biomass
from urban and industrial waste, etc.), thus preventing interference with the food chain, but they can also reduce
greenhouse gas emissions by up to 95% over the life cycle while ensuring levels of performance similar to those of
fossil fuels. Among biofuels, bioethanol, widespread for some time now in Brazil, is a fuel derived from biomass
fermentation (mainly waste from sugar cane processing), which makes it par ticularly suitable for agricultural areas.
It affords a 50% reduction in greenhouse gas emissions along the entire well-to-wheel cycle and can be used directly GRI-G3.1
2.2, 2.10, 4.11, EN6, EN26
at the production site, making it a zero-kilometer fuel and, moreover, a low-cost alternative (at least 50% estimated Sustainability Plan
savings compared to diesel fuel). Our commitments on page 31
Glossary
Hydrogen, however, is part of a long-term strategy perspective due to its cost, complexity and the safety of managing Biodiesel, Biomethane, BTL,
the distribution network. The Group is still continuing research into the use of hydrogen and methane blends. This CNG, GWP, HVO, LNG,
SCR, Tier, Well-to-wheel
application is already a viable solution for the medium term using technologies that are already available on the market.

93
 Environmental INNOVATION AND
Dimension PRODUCT

Fuels roadmap

GLOBAL WARMING POTENTIAL (GWP) INDEX

50

(diesel Index=100%) GWP trend

100

Today Short Term Mid Term Long Term

H2 HVO diesel LNG

BTL FAME CNG

Natural gas
For Fiat Industrial Group, natural gas consisting mainly of methane (over 85%) is a real and immediate solution to the need
for cleaner and immediately usable fuel. The main features that make it a strategic fuel are:
n minimal harmful emissions ranging from particulate matter (practically zero) to aldehydes (-50% compared with diesel)

n minimal emissions of air pollutants (such as NO )

X
n over 80% less ozone generating agents than conventional fuels

n 5% less CO emissions compared with diesel fuel and 11% less when mixed with 30% hydrogen
2
GRI-G3.1 n already used with technologies in production
2.2, 4.11, EN6, EN26
n renewable source (if derived from biomass).
Sustainability Plan
Our commitments on page 31 Natural gas, though a fossil fuel, is among the best in well-to-wheel terms, and has available reserves similar or even
Glossary
BTL, CNG, Euro VI, GWP, HVO, larger than those of oil. It even has a high resistance to detonation, which allows for use in an internal combustion
LNG, NOX , Well-to-wheel engine with a higher compression ratio. Finally methane, due to its gaseous nature, eliminates issues concerning fuel
accumulation at intake and the multiple aspects of oil dilution, improving engine emissions and reliability compared

94
with those running on liquid fuels. Methane is stored on board the vehicle in cylinders. Natural gas fuelled engines are
ideally suited to urban transport and contribute to reducing pollution; during combustion, natural gas produces less
pollutants and lower exhaust emissions than other fossil fuels.
FPT Industrial offers the largest range of engines on the market for on-road applications that meet the demand for
light, medium and heavy commercial vehicles. FPT Industrial’s range of compressed natural gas (CNG) engines includes
the F1C, NEF6 and Cursor 8, all compliant with Enhanced Environmentally-Friendly Vehicles (EEV), the most stringent
in Europe, and the Euro VI emissions standards. They are also designed to use biomethane obtained from waste
treatment. Currently FPT Industrial is the industry leader in the natural gas engine sector, with around 20 thousand +46% of
vehicles equipped with engines running on CNG. Iveco has been investing in methane since 1995 and now offers natural
the most comprehensive range on the market. The New Daily Natural Power, which boasts excellent reliability and gas-powered
durability, is able to detect the composition of the gas used and adapts engine operation to maintain low emissions vehicles sold worldwide
without sacrificing performance. The electronic ignition reduces noise emissions to below those of an equivalent diesel
engine. The Eurocargo Natural Power produces no emissions of sulfur, hydrocarbons and particulate through exhaust,
and CO2 emissions have been reduced by up to 20% compared with diesel engines of equal performance. The Stralis
CNG is the ideal vehicle for use in urban areas and nighttime distribution missions, while the Stralis LNG Natural Power
is more suitable for the distribution of goods at regional and national level. One of the main advantages of using LNG
is that it provides a greater range for vehicles, allowing them to travel up to 750 kilometers on a full tank. In addition,
the noise reduction for natural gas fuelled Stralis vehicles is between three and six decibels compared with a vehicle

Environmental
with the same power rating running on diesel.

dimension
Natural Gas Powered Vehicles sold
Iveco worldwide (no.)
2012 2011 2010
Bus CNG 324 318 591
Heavy (Stralis CNG or LNG) 164 170 180
Medium (Eurocargo) 33 24 15
Light (Daily Natural Power) 915 471 550
Total 1,436 983 1,336

CNH research into methane-powered agricultural equipment is ongoing. Natural gas, or methane, is in many ways
the best choice for agricultural applications, as it produces 25% lower CO2 emissions and 95% less nitrous oxide
when compared with diesel combustion. In 2012, a prototype of the Steyr Profi 4135 Natural Power tractor was
fur ther improved with software updates to the engine control unit, in order to better meet the needs of agricultural
applications. The vehicle is equipped with a turbocharged mono-fuel CNG engine produced by FPT Industrial for GRI-G3.1
2.2, 4.11, EN6, EN26
light commercial vehicles. The gas is stored in nine fuel tanks, integrated into the bodywork, with a total capacity Sustainability Plan
of three hundred liters. During the year, field tests were star ted at the CNH plant in St. Valentin (Austria) and at Our commitments on page 31
Glossary
an Austrian farm that has a plant for on-site production of biomethane from agricultural biomass. This test stage Biomethane, CNG,
at the bio-farm will assess the actual reliability of the engine and verify the reduction in real-life operating costs. EEV, LNG

The market launch is planned for 2015.

95
 Environmental INNOVATION AND
Dimension PRODUCT

Biofuels
Fiat Industrial Group closely follows the technological developments and research into fuels derived from renewable
resources. In fact, it already offers products fueled by biodiesel, bioethanol and biogas.
With regard to biodiesel, Tier 4A/Stage IIIB engines produced by FPT Industrial are compatible with biodiesel mixed
with 20% diesel (B20), provided that the blend meets the requirements defined by the standards. FPT Industrial is
directing the focus of its research towards the use of second-generation biofuels,
especially HVO and BTL. New Holland Agriculture, which has been using biodiesel
since 2006, approves the use of B20 blends for all new Tier 4A ECOBlue™ SCR
engines as long as they fully comply with the latest fuel specification EN 14214:2009,
and operate in accordance with the operator’s manual guidelines. Iveco vehicles
can use biodiesel mixed with fossil diesel in a percentage of up to 7% by
volume, without needing any intervention. Iveco vehicles are also already
compatible with the use of biofuels, such as biomethane (produced
from organic waste and vegetable matter), while diesel-powered
units can run on blends of up to 5% biodiesel without modification.
During 2012, a series of field tests were carried out together with
Raizen, a joint venture company established with Cosan, the
largest producer of sugar cane in Brazil, and Shell. An Iveco
Trakker Bi-Fuel prototype, fueled by a blend of diesel and
ethanol, totaled more than 27 thousand kilometers on the
ground. On average, the vehicle used a 40 to 60% blend of
ethanol, allowing for lower operating costs compared with a
traditional diesel engine, lower well-to-wheel CO2 emissions
and lower fuel costs.

Highlights
BEIJING CHOOSES FPT INDUSTRIAL ENGINES
FPT Industrial has recently signed a supply agreement with Beiqi Foton Motor Co. Ltd and China Youthman Automotive Group for
180 Cursor 8 CNG engines to power their National V (equivalent of Euro V in Europe) buses manufactured for the Beijing Public
Transportation Company (BPTC).
BPTC is at the forefront of environmental vehicle innovation in China, and is the first public transportation company in China
to adopt National V standards. The buses used by BPTC will be powered by the efficient and environmentally friendly Cursor 8
GRI-G3.1
2.2, 4.11, EN6, EN26 CNG engine. The engine complies with EU EEV standards, which are already higher than the National V emissions standard, and
Sustainability Plan will power buses running along the main streets of Beijing. So far, the entire BRT (Bus Rapid Transit System) fleet of the BPTC is
Our commitments on page 31 powered by FPT Industrial engines, which stand out for their compact dimensions and easy installation and are used for public
Glossary
Biodiesel, Biomethane, BTL, transport in many cities around the world.
CNG, EEV, HVO,
SCR, Tier, Well-to-wheel

96
 Highlights
biomass production
In addition to products capable of
running on biofuels, CNH has also began
looking at ways in which its products can
be used in the production of biomass,
such as woodchips, corn or sugarcane
residue, to make biofuels. In 2012, New
Holland Agriculture participated in a
project with the US Department of
Energy on supply systems to determine
an efficient harvesting process for willow
using a FR9000 series forage harvester.
At the Agrishow in Brazil, as part of
its Clean Energy Leader strategy, New
Holland presented a project developed
in partnership with the Centro de

Environmental
dimension
Tecnologia Canavieira (CTC), based
in Piracicaba (Brazil), which aims to
generate renewable energy by putting
sugar cane residue into bales that can be
used by sugar mills to produce electricity.
The Case IH MagnaCut Extra Fine Cut Chopper is also useful for the production of biomass. This harvester minimizes the
use of fertilizers, with 120 rotating blades that finely reduce residue material from harvesting, allowing it to be more readily
reabsorbed into the soil. Case IH also supplied eight Axial-flow 7130 harvesters that were modified for the Capac cooperative
(Italy) so that, in addition to collecting the corn kernels, this machinery also features a container on the back to collect the cobs,
which are then finely chopped directly on the harvester. This way, waste products can be separated to produce energy (usually
biogas), using a single harvester.

Hydrogen
The Energy Independent Farm project continued in 2012. The NH2™ hydrogen tractor was presented at the Nampo
Harvest Day near Bothaville (South Africa) to promote its Clean Energy Leader Strategy. New Holland has paired with La
Bellotta, a farm in Italy, for its new approach, the Energy Independent Farm, in which a farm generates its own energy from
GRI-G3.1
renewable sources. The hydrogen powering the NH²™ tractor and the farm is generated using the energy produced by 2.2, 4.11, EN6, EN26
wind, sun or biomass. An Iveco study in collaboration with the A22 Brenner Motorway and the Municipality of Trento on Sustainability Plan
Our commitments on page 31
the use of methane-hydrogen blends for light transport is still continuing: with mixtures containing 30% by volume
of hydrogen, it is possible to reduce CO2 emissions by up to 11% compared with a methane-powered vehicle, and to
significantly cut polluting emissions (carbon monoxide, unburned hydrocarbons, etc.).

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 Environmental INNOVATION AND
Dimension PRODUCT

Alternative tractions
Every day, Iveco channels its efforts into researching and testing new alternative traction technologies to meet demand for
increasingly sustainable mobility, promoting both commercial development and environmental protection.

Electric traction
The Daily Electric is part of Iveco’s commitment to reducing emissions and increasing efficiency, and represents
the future of urban transport: a quiet, zero-emissions vehicle not subject to traffic restrictions on internal
combustion vehicles.
Ideal for short range missions and for door to door deliveries, the Daily Electric captures all the advantages
of electric drive: the high specific energy plug-in accumulation system feeds an asynchronous three-
phase electric motor that moves the vehicle. When the vehicle slows down, the kinetic energy is
converted into electricity and stored in the battery. This is the result of a precise technological
analysis and the best compromise between performance and environmental sustainability.
In addition to being lightweight and high performance, the Daily Electric requires no
maintenance, is completely recycled at end of life and its component parts can be reused.
These vehicles have a range of up to 130 kilometers, demonstrated in real urban use.
The most recent result of over twenty years of research (the first electric Daily dates
back to 1986), the Daily Electric is designed, manufactured and guaranteed by Iveco and
servicing is entirely provided through its network.

Highlights
IVECO Dual Energy: a technological concept
The Iveco Dual Energy concept proposes an extremely flexible technology for light commercial vehicles that is capable of
switching to the most appropriate power source depending on a vehicle’s specific mission. The system relies on the use of two
different types of traction. One is exclusively electric, ensuring zero local emissions and low noise levels. The other is hybrid
(thermoelectric), suitable for long and extra-urban journeys. This type of traction reduces consumption and CO2 emissions
by up to 25%. The principle of operation consists of a few steps: the chemical energy of the fuel is converted into mechanical
energy for motion, while the kinetic energy, which during braking or deceleration would be lost, is recovered and converted
into electrical energy to be stored in the battery. If necessary, this energy is made available for traction. In terms of efficient
mobility and optimized fuel consumption on highways, the hybrid mode is certainly the most suitable, while the electric mode
is recommended for travel in urban or low-traffic areas, where the speed limit does not exceed fifty km/h. Alternating these
GRI-G3.1 two modes makes the same vehicle suitable for last-mile delivery in zero-emission areas and extremely high-performing for
2.2, 4.11, EN6, EN26
extra-urban activities. Another highlight is the extreme flexibility of the Iveco Dual Energy’s configurations: the same chassis can
Sustainability Plan
Our commitments on page 31 handle different traction architectures. Iveco has worked on this concept through an Open Innovation model (see also page 75).
Glossary The chassis components have been developed through a joint effort by several large international companies, which have
Last mile
contributed their knowledge to charting a technological course for the sustainable vehicle of the future.

98
 Highlights
RECORD ORDER OF HYBRID BUSES IN FRANCE
In 2012, Iveco announced a record order for its hybrid diesel-electric buses: with 102 vehicles (41 standard and 61 articulated), the
French city of Dijon signed Europe’s largest single order for hybrid buses. The hybrid diesel-electric buses are available as complete
vehicles (the Citelis 12- and 18-meter models) or as a chassis and bodywork under the name of Access’Bus GX.
This record order for Dijon confirms the success of these vehicles in France. To date, Iveco has delivered fifteen hybrid diesel-
electric buses and received more than 170 orders. Since February 2011, the hybrid vehicles already delivered are in operation
in Poitiers, Toulon, Monza, Paris and on the island of La Reunion. New orders concern vehicles for the cities of Rouen, Annecy,
Dijon and Bordeaux.
With the Citelis and Access’Bus GX ranges of hybrid vehicles, in the 12- and 18-meter versions, Iveco offers efficient vehicles which
offer comfort, energy savings and reduced emissions. Thanks to close collaboration with BAE Systems, vehicles are fitted with
established technology that has already been widely used in North America and the United Kingdom.

Hybrid traction
25 tons

Environmental
The electric drive is ideal for city use, while the hybrid diesel-electric vehicle is definitely the best and most flexible

dimension
solution when extra-urban driving is necessary, or indeed when higher performance and larger payloads are needed.
of CO2 less
Hybrid traction can be generated by the electric motor or diesel engine, or a combination of the two.
in a year thanks to
For goods transport, Iveco offers two versions of its Eurocargo hybrid, designed to efficiently distribute and
collect goods in urban settings without sacrificing top performance on rapid transit roads for medium haul distances. hybrid buses
The truck has a diesel-electric parallel hybrid driveline, saving up to 30% on fuel consumption and CO2 emissions
compared with vehicles with conventional diesel engines. The system features include starting from a standstill in
electric mode only, Stop&Start function and regenerative braking, automatic diesel engine starting based on driver
performance requirement and power assist from electric motor during acceleration and uphill driving. The payload is
only 200 kilos less than conventional diesel engine models. This vehicle also features a further innovative feature: the
automatic engagement of the engine brake during deceleration, prior to the application of the foundation brake.
For passenger transport, the Iveco Irisbus offers a range of Citelis hybrid vehicles available in two lengths:
12 and 18 meters. Developed through a collaborative agreement with BAE Systems for the supply of electric driveline
components, the serial hybrid with diesel-electric propulsion links a 6-liter Tector small displacement diesel engine
produced by FPT Industrial with an electric engine/generator that recovers energy accumulated during deceleration.
The generator, coupled to the diesel engine, supplies electricity while avoiding the use of the starter motor, alternator
and belts. The high power electric motor delivers traction to the vehicle through the axle, which is identical to that in
GRI-G3.1
diesel models. This serial hybrid architecture has led to the elimination of the gear box. The latest generation lithium 2.2, 4.11, EN6, EN26
ion batteries accumulate energy during deceleration and deliver it during acceleration. Environmental indicators Sustainability Plan
are very satisfactory, showing an average reduction in fuel consumption and CO2 emissions of up to 35% compared Our commitments on page 31
Glossary
with diesel-only engines. A 35% reduction in CO2 emissions equals about 500 grams of CO2 less per kilometer. Stop&Star t
Considering an annual utilization of 50 thousand kilometers (average for city buses), this means a reduction of around
25 tons of CO2 emissions into the atmosphere.

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 Environmental INNOVATION AND
Dimension PRODUCT

Other systems
Efficient ancillary equipment also plays a major part in lowering consumption and CO2 emissions; improving productivity
reduces consumption. In this field, the Case 621F wheel loader has four operating modes that help the operator to
save fuel and increase available power. The 621F model features a new automatic shutdown system that maximizes fuel
economy by up to 30% and monitors vital engine components.
New Holland Agriculture also offers a variety of solutions. The T4 tractor range is available with the Power Take Off
(PTO) system allowing for continuous speed control: the operator can choose between mechanical and electro-hydraulic
engagement, and from a whole host of PTO speed options. The TK4000 crawler has a system to reduce slippage on soil
while optimizing consumption and easing contact pressure: the lower pressure – 0.3 bar less – reduces root zone damage
and wet soil compaction. The SmartTrax™ track option on T9 4WD tractors and CR combines creates a larger footprint
and less soil compaction, thus consuming less. Case IH has achieved the same result and better maneuverability on the
Steiger Row track 375-500 thanks to the narrower width.
ECOBraud, New Holland’s Sustainable Viticulture program, is aimed at increasing productivity and profitability whilst
reducing the environmental impact of viticulture, and constitutes an integral part of the Clean Energy Leader strategy.
ECOBraud encompasses the complete range of New Holland viticulture equipment, including Braud grape harvesters and
specialty tractors, and enables a reduction in the carbon footprint in vineyards of up to 40%; namely a 10% reduction in
the overall carbon footprint of each and every bottle of wine produced.

Use of our products

Customer awareness
Fiat Industrial Group takes an integrated approach to problems, focusing not only on product life cycle but also on how
customers use their products. Appropriate driving style can contribute considerably to reducing CO2 emissions (see also
page 92). In commercial vehicles, efficient driving style can give 5% to 12% in fuel savings at the same average speed.

GRI-G3.1
2.2, EN6, EN26
Glossary
Carbon footprint, PTO

100
In 2012, Iveco completed the development and validation of the Driving Style Evaluation, aimed at assisting commercial
vehicle drivers to reduce fuel consumption in real time. The algorithms developed analyze the signals and data from the
traction system, vehicle and GPS and give the driver two indicators on the on-board display:
n the overall assessment of driving style on fuel consumption

n main tips to reduce fuel consumption.

The Driving Style Evaluation system can be connected to the IVECONNECT FLEET telematics system and allows for the
remote assessment of consumption associated with the driving style of each fleet driver. Driving Style Evaluation is already
available on the new Stralis Hi-Way, unveiled in June 2012.
New Holland Agriculture has developed the CarbonID™ online calculator as part of its Clean Energy Leader strategy. Fleet
owners or individual farmers can choose to calculate their carbon footprints either based on annual fuel usage or hours
worked. Then, they enter data such as the price of fuel and AdBlue, and the calculator automatically provides them an
estimate of the savings achieved. Case IH also offers the SCR Fuel Savings Calculator, an online tool to verify savings in
operating costs obtained through the use of SCR technology (see also page 89).

The voice of our stakeholders

The pilots working in the Port of Genoa (Italy) are on duty 24 hours a day, 365 days a

Environmental
year, in all weather and sea conditions. The pilot boats in the port are equipped with FPT

dimension
Industrial engines.

Giovanni Lettich, Head pilot, Port of Genoa:

“Our team is made up of 22 pilots and six pilot boats, in operation for a total of around
eight thousand hours a year. We board ships as they are coming into port, and support
the captain through the entry and mooring process, as well providing assistance as they
leave the dock to depart from the port, and during any movement within the port basins of
Genoa, Multedo and Voltri. We board the ships when they are around two miles outside
the port, gaining access while they are still in motion. The most delicate moment is when
the pilot disembarks our vessel to board the ship and vice versa: onboard maneuvers can be dangerous, particularly when the sea
is rough. In these situations, the engines are placed under a great deal of strain, with constant gear shifts and demands for surges in
power as well as rapid deceleration. It is no exaggeration to say that at times, our lives depend on this machinery, and for this reason,
the engines we use must always be ready for action, totally dependable and safe. We first used FPT Industrial engines on a vessel
several years ago, and were so satisfied with their performance that we decided to fit them on all new vessels. We regularly carry
out the necessary maintenance on our FPT Industrial engines, which have accrued thousands of working hours. We are extremely
satisfied with the reliability and durability of these diesel engines”.

GRI-G3.1
Conservation agriculture 2.2, EN6, EN26
Recent studies have demonstrated the validity of conservation agriculture systems. These afford benefits to both farmers Web
www.thecleanenergyleader.com
and the environment in terms of increased profits and lower costs. At a glance, this system is based on:
Glossary
n minimum mechanical soil disturbance through no-till seeding to preserve structure, fauna and organic substances Carbon footprint,
No-till seeding, SCR
n permanent plant or crop residue cover soil to protect the soil and contribute to eliminating weeds

n crop diversification through rotations and associations that favor soil microorganisms and fight weeds, pests and plant diseases.

101
 Environmental INNOVATION AND
Dimension PRODUCT

According to Food and Agriculture Organization (FAO) sources, Conservation Agriculture is already practiced globally
over more than 130 million hectares, i.e., 8% of total arable land worldwide, and has been increasing at the rate of some
six million hectares per year. In Brazil, for example, almost 80% of cereals are produced through direct seeding.
CNH has always been attentive to the needs of its customers and is engaged in the development of new products to
support conservation agriculture. In this context, its agricultural brands have established a strategic alliance with Semeato,
a leading company in Brazil. In order to meet rising demand, they are developing planters and seeders designed for this
technique. Through this alliance, Case IH launched new models in 2012, and now offers the most comprehensive range
of no-till planters in Brazil. In 2012, the electronic system of integration between the planter SOLTT and the tractors of
CNH brands, the result of cooperation with Semeato, received the Prêmio Gerdau Melhores da Terra, the most important
GRI-G3.1 award in the South American agricultural machinery and implements industry.
2.2, 2.10, EN6, EN26
Web
www.fao.org/ag/ca PRODUCT ERGONOMICS
Fiat Industrial Group makes products for people who work, so comfort and ease of use are fundamental. Working
comfortably means preventing the onset of health problems caused by poor posture. In 2012 CNH focused on innovation
in product ergonomics to reduce stress from workload and to improve comfort.

102
For instance, the Steiger 600 features one of the largest and
quietest cabs in the industry, and cab controls have been
relocated to the new MultiControl Armrest console, which can
also accommodate a touch screen monitor. This tractor, along
with the New Holland T8 series tractor, received an AE50 award
from the American Society of Agricultural and Biological Engineers
(ASABE). The T8 Series tractors combine the longest wheelbase
in the industry with optimum maneuverability, stability, operator
comfort and versatility, while providing lower in-cab noise levels
and bounce. The new New Holland Construction 200 Series
skid steers are the result of five years of research, design and
engineering improvements achieved through cooperation with
customers and operators. Based on their input, the loaders were
redesigned and now feature easy serviceability, machine stability,
and more comfort and visibility in the cab. The Super Boom
offers more forward dump height and reach, and the lift cycle
can be reset. This product was honored by Farm Industry News
magazine with their FinOvation Award.

Environmental
dimension
Precision agriculture
The growing commercial availability of more affordable and
easier-to-use technologies such as smartphones, tablets and
cloud computing has made it possible to access information
anywhere, and this is increasingly leading growers to focus on
precision agriculture. This type of management relies on IT tools
and is targeted at farm work that takes into account the actual
needs of crops and the biochemical characteristics and physical
properties of the soil.
The New Holland PLM™ (Precision Land Management) connect
telematics package allows fleet managers to visualize from their
office up to four different machine displays simultaneously in order to monitor operating parameters and fault codes.
Moreover, using the web portal’s messaging system, they can send an instant message to the operator, who in turn can
confirm receipt. Fuel usage and remaining fuel reporting, and analysis and monitoring functions are also available. Case
IH Advanced Farming Systems® (AFS) software provides customers with the ability to mark field maps with bodies
of water, or other obstacles, and helps them chart out the best route to work their fields. This software can also be
GRI-G3.1
used to share data with other computerized management systems. For optimal fertilization, Case IH’s Nutri-Placer 920 2.2, 2.10, EN26
delivers fertilizer into the root zone, providing increased nutrient availability and minimizing residue and soil disturbance.
Additional benefits include reduced horsepower requirements, a wider operating window and faster operating speeds.
This product has been awarded with an AE50 by the American Society of Agricultural and Biological Engineers (ASABE).
The New Holland Field-IQ™ control system can control up to 48 individual rows, preventing seed and fertilizer overlap,
which leads to a drastic reduction in waste and double applications.

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 Environmental INNOVATION AND
Dimension PRODUCT

Recovery Recycling Reuse

Efforts to reduce the environmental footprint of end-of-life vehicles are incorporated across their entire life cycle, from
the design of parts and the purchase of components that are recyclable, to the promotion of remanufacturing and reuse,
and to the assistance offered to customers in scrapping products beyond repair whose individual parts can be recovered.
FPT Industrial, for instance, has adopted an organizational structure that allows it to implement strategies to improve the
environmental compatibility of products, beginning with the design phase. At this stage priority is given to solutions that favor
simple disassembly. The design strategy is also reflected in the development of products whose characteristics allow easy
regeneration, disposal and differentiated recycling by type of material. Priority is given to the use of easily recyclable materials
and in particular of recoverable metals, such as aluminum and cast iron, thermoplastics and paints containing only 5% solvent.
In July 2010, recovery and recycling regulations were extended to light commercial vehicles, including some product ranges
offered by Iveco. European Directive 2005/64/EC (Reusability, Recyclability, Recoverability) sets minimum levels for the
recoverability (95%) and recyclability (85%) of new type-approved models. Fiat Industrial Group has implemented the RRR
project. This extremely versatile system enables simulations to evaluate the impact on vehicle recoverability of a change in
materials or design solutions, continuously monitoring Group compliance with European Directive 2005/64/EC. Iveco has
reached a recoverability rate for its light commercial vehicles of 95%.

Composition of Iveco Daily Cab by material(1) Percentage of raw materials recycled(1)

(% total vehicle weight) Iveco light commercial vehicles range (% total raw material used)

90.2% 92.3%
Other
0.9% 81.0%
Fluids
5.0%
Glass
Metals 41.2%
2.1% 39.3%
77.5% 34.9%
Elastomers
5.9%
13.3%
Polymers
0.0% 3.4% 0.0%
8.6%
Steel

Cast iron

Light alloys

Other metals

Polymers

Elastomers

Glass

Fluids

Other

Average
During 2012, Iveco launched a project to extend the International Material Data System (IMDS) to its medium and heavy
vehicles. It is an online database into which the whole supply chain is required to enter basic information concerning the
GRI-G3.1 composition of their products (see also page 235). This way, the level of recyclability and recoverability of the full range
EN1, EN2, EN26, EN27
Sustainability Plan of Iveco products can be monitored and optimized. The IMDS is also used to track the presence of substances listed in
Our commitments on page 31 the European regulation Registration, Evaluation, Authorisation and Restriction of Chemical substances (REACH), which
Glossary
IMDS, REACH governs the use of chemicals within the European Union, and to accurately identify the presence of Substances of Very
High Concern (SVHC). The IMDS monitors input in real time and generates a warning if it detects an SVHC, allowing
suitable substitutes to be found.

104 (1)
Average for Iveco existing range of type-approved vehicles in 2011, based on European Directive 2005/64/EC.
Finally, the Group is fully committed to the recycling and recovery of the materials contained in its vehicles, when they
become end-of-life vehicles (ELV). 3,500 components
An agreement is in place between Iveco and Fiat Group for the scrapping of ELV Daily vans through a network of approx.
300 approved dismantling agents in Italy, who are trained to recycle metals and separate polymers into their different
remanufactured
by FPT Industrial
categories so they can be reused. The list of authorized dismantling agents is available on the Iveco website.
Fiat Industrial Group operates a strategy of remanufacturing certain parts and components, in order to prolong the life of
vehicles. By reconditioning and readapting parts, remanufacturing extends the component life cycle.
At its Garchizy plant in France, for instance, FPT Industrial remanufactures engines and parts, bringing them back to their
initial state and giving them a second life. The plant only remanufactures engines and parts sourced from authorized Iveco
and CNH dealers. Remanufacturing processes are performed in accordance with ISO 9001 and ISO 14001 standards,
thus assuring the optimal quality of the final product. The annual production of remanufactured engines and components
amounts to approx. 2,500 and 3,500 respectively, including gear boxes, turbines and fuel injection systems.
During 2009, CNH launched CNH Reman, a joint venture with Springfield Remanufacturing Corporation, for the
remanufacturing of components distributed in North America. In 2012, in line with the Sustainability Plan’s objectives,
more than seven hundred components were added to the remanufacturing portfolio, exceeding 3,400 units since the
start of activities. The target set for 2013 is to reach 3,800 or more remanufactured components since the start of the
joint venture.

Environmental
dimension
Remanufacturing of components
CHN Reman North America (no.)
2012 2011 2010 2009
Engines 514 470 395 280
Engine components 1,048 855 680 485
Drivetrain 626 532 482 295
Electronics 197 120 66 10
Hydraulics 563 293 233 144
Rotating Electrical 460 430 398 322
Total parts 3,408 2,700 2,254 1,536

GRI-G3.1
EN1, EN2, EN26, EN27
Sustainability Plan
Our commitments on page 31
Glossary
ISO 9001, ISO 14001

105
 MANUFACTURING
PROCESSES
Fiat Industrial Group is committed to continuously improving the environmental
performance of its manufacturing processes, adopting the best technologies available
and operating responsibly to fight climate change and protect natural resources.

Plants certified
Fiat Industrial Group worldwide

NORTH AMERICA EUROPE

10 36
ISO 14001 ISO 14001

5 17
ISO 50001 ISO 50001

LATIN AMERICA ASIA and AUSTRALIA

7 3
ISO 14001 ISO 14001

1
ISO 50001

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 MANUFACTURING Environmental
PROCESSES Dimension

World Class Manufacturing

The Group aims to achieve and maintain high standards of excellence in production systems by applying World Class
Manufacturing (WCM), a program of innovation originating from Japan, based upon continuous improvement.
WCM is a structured system bringing together the most effective methodologies known in the field of manufacturing,
which include Total Quality Control (TQC), Total Productive Maintenance (TPM), Total Industrial Engineering (TIE),
Just In Time (JIT), all geared towards raising the entire manufacturing-logistics cycle of plants to levels of excellence.
It is a way of working which envisages the elimination of all types of waste and loss by means of the precise application of
methods and standards. WCM is also a management tool, whose fundamental principles are:
n to identify and quantify problems

n to establish a program of action, deploying the best solutions and the most qualified people

n to evaluate if the problems identified have been solved

n to identify solutions which have proven effective, so avoiding the same problems being repeated in the future.

Some of the WCM targets concern: zero injuries, zero defects, zero breakdowns, zero waste, reduction in unsold goods,
suppliers’ punctual delivery of parts to the plant, and from there to the dealer network and end user.
A strong commitment by the plant management and continuous communication between each organizational level is
crucial for the achievement of WCM objectives.
However, no system is satisfactory unless it can evaluate costs. Unlike other systems, in WCM there is a direct relationship

Environmental
dimension
between an activity and its cost reduction benefit. Here actions for ongoing improvement are guided by cost deployment,
which precisely identifies all plant waste and losses, directs the activities of the other corporate functions charged with
combating and eliminating the sources of waste, evaluates the feasibility of projects and assesses and certifies their outcome
by monitoring specific Key Performance Indicators (KPI). This approach leads to a more efficient evaluation process, in that
all factors on which the action has a potential impact are measured and correlated.

GRI-G3.1
EC2
Sustainability Plan
Our commitments on page 32
Glossary
Audit, KPI, WCM

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 Environmental MANUFACTURING
Dimension PROCESSES

Cost deployment is the method that establishes a cost reduction program, scientifically and systematically with close
cooperation between the finance department and the production department in several ways by:
n investigating the relationship between cost factors, process generating costs and various kinds of waste and losses

n finding correlations between waste, loss reduction and cost reduction

n establishing if the necessary know-how for waste and loss reduction is available and acquiring it where needed

n ranking the items for waste and loss reduction according to priority based on cost-benefits analysis

n establishing a cost reduction program for meaningful cost reduction across all of programs pillars.

The voice of our stakeholders

In 2012, CNH rewarded several hourly employees for significant improvements within the
scope of the WCM framework by organizing a trip to Paris to visit Intermat, the largest
construction equipment trade fair in the world.

Gianluca Mancini, Team expert, CNH assembly line:

“It was the first time I ever visited Intermat […] and it was really useful to see the product
offer. Now we are even more convinced that we need to focus on the quality and efficiency
of our vehicles to remain competitive, and that the WCM is the way to go. I have seen the
plant change a lot in the last ten years: the WCM methodology has helped us grow, prevent
waste, and improve quality across the board”.

The widespread use of the WCM system at all Fiat Industrial Group plants allows a common culture to be shared
across the whole Group, based upon efficient processes and in a language recognized universally in all plants and
countries in which the company operates.
The system has also been integrated outside the company itself since, on the one hand, it must be able to respond to
customers’ needs, ensuring maximum flexibility and efficiency and, on the other hand, it must share the approach with
suppliers to ensure product quality and process efficiency.
WCM instills and continually reinforces the idea that all who are a part of the organization must know their customers and
must seek to satisfy their requirements, along with those of all stakeholders, regarding products, order processing, delivery,
quick response to changes, and after-sale service. After all, the goal of continuous improvement is to develop processes and add
value to products and services in such a way as to increase customer satisfaction and loyalty and ensure long-term profitability.
The WCM system cuts across all company boundaries, and is applied to all departments embracing numerous themes
including: safety in the workplace, the environment, quality, logistics, in-house and specialist maintenance, people
development and process and product engineering (involving the reorganization of work stations, the installation of new
machinery and new product launches). These are known as ten technical pillars of WCM.
Sustainability Plan
Our commitments on page 32
The environmental pillar uses the environmental management principles to create an ordered set of actions to reduce a
Glossary plant’s impact. This process starts with compliance to legislation and regulations and advances to systemic and rigorous
Audit, Stakeholders, VOC, WCM
analysis of incidents, risks and wastes (energy consumption, water usage, VOC emissions and waste generation) to identify
corrective actions resulting in cost reduction.
The environmental pillar is, therefore, the managerial tool that allows understanding and then reduction and control of
the environmental aspects and impacts of all activities.

108
 Environmental
dimension
The spiral of continuous improvement provides stages of implementation, verification and review, including operational
activities, audit, monitoring and review. The final step includes reduction of environmental impact, management autonomy
and the push to continuous improvement by comparing against the best-in-class.
The objective of this pillar is to minimize the environmental impact by decreasing the consumption of resources, such as
energy and water, reducing the generation of wastes and polluting emissions, and improving the quality of emissions into
the atmosphere and of the water discharged.
Reducing environmental impacts increases the sustainability of a company, which also produces a benefit by reducing cost.
Each plant, in line with the Fiat Industrial Group Environmental Guidelines and with its own environmental policy,
sets annual environmental targets, which must be commensurate with the legal requirements, risks and costs. These
objectives are supported by plans and projects, accountability and financial resources. Plans need to be forward thinking,
going beyond the immediate to medium and long term and considering future requirements. To ensure continuous Sustainability Plan
improvement, all required parameters must be periodically monitored. Our commitments on page 32
Glossary
One of the strengths of WCM is the way personnel are engaged and made responsible, being an intrinsic part of the Audit, Kaizen, WCM
model and, via a well-established system encouraging suggestions, contributing directly to the optimization of the process.
Personnel participate by achieving targets, via improvement projects (universally known as kaizen) over the whole process,
from definition to realization, so also increasing their motivation level.

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 Environmental MANUFACTURING
Dimension PROCESSES

In this way, people gain and develop skills and best practices,
which are also made available to other plants; a company-
wide network of skills and knowledge is therefore created.
WCM thus helps in creating an organization, which is
engaged and free from barriers, where ideas, knowledge and
talent are shared between working groups and teams within
a single plant and across different plants worldwide.
Fiat Industrial is by now well-established, with the purpose of
sharing information and collecting suggestions; specifically, in
2012, about 375 thousand suggestions were collected in the
plants where WCM is active, with an average of 10 suggestions
per employee.
There is a systematic approach and audit process for the
ten technical pillars, each with a seven-step implementation
375 thousand process, culminating in several awards (bronze, silver, gold
suggestions and world class). This requires ever more challenging targets,
to be met within a rigorous approach comprising three levels:
from employees under the reactive, preventive and proactive.
WCM program The internal audit system has defined and implemented a
gate system for award audits. The gate has a set of defined
criteria for KPI performance in areas of expansion, extension,
plant opening, safety, savings, quality, employee involvement
and absenteeism. This system, along with the creation of
an Award Committee, provides a preliminary analysis of a
plant’s status prior to the audit and it is with this gate system
that an award audit is ultimately granted.
The plant that is competing for an award must apply to the WCM
Central Office for a review of their gates and approval of the
audit by the WCM Award Committee. The award application
showing details on the KPI trends must be prepared and sent
into the WCM Central Office and the Award Committee.
If the KPIs do not meet the necessary targets for the award,
the application will be denied, the plant must submit a recovery
plan and the award audit will be delayed until the plant has
demonstrated improvements to the necessary KPIs.
Sustainability Plan
Our commitments on pages 32, 39
In par ticular, for what concerns the safety pillar, plants
Glossary involved in the program can only be considered for entry
Audit, Frequency rate, KPI, WCM
into the first level or bronze award medal level if they
have achieved a lost time incident rate (1) less than or equal
to 1.0. This value is even more strict if the plant aims at
silver or gold award. As plants grow in their development

110 (1)
The frequency rate is the ratio of the number of injuries reported to the number of hours worked, multiplied by 100,000.
and program expansion, the KPI targets become even more challenging as does the ability to reach the next award
medal level. The awarding of the various prizes is verified by external auditing teams presided over by WCM Association
representatives. Prizes are awarded to those achieving the required performance levels, associated with each pillar.
As of December 2012, plants participating in the program were 53 (30 CNH, 16 Iveco, 7 FPT Industrial), representing 83%
of Group plants and 90% of personnel and 96% of revenues.
Of the plants mentioned, 11 plants received bronze awards: 7 for CNH, 1 for Iveco, and 3 for FPT Industrial; 4 were
awarded silver (the FPT Industrial plant in Bourbon Lancy, and the Iveco plants in Madrid, Suzzara and Valladolid).
During 2012 courses were held to train plant managers in internal auditing, so supporting the continual spread of WCM. 4 plants
In March 2012 the steering committee including Top Manufacturing management and the WCM managers of the awarded silver
three sectors was established. It coordinates World Class Manufacturing initiatives at Group level and aims to provide and 11 plants awarded
commitment, drive strategy, and develop WCM methodology throughout the Fiat Industrial Group.
bronze

Highlights
IVECO QUALITY ASSURANCE SYSTEM

Environmental
dimension
Since 2009, Iveco has adopted a centralized quality assurance system in its European facilities, pursuant to the ISO 9001 standard.
As part of this, Iveco set out policies for quality assurance, compiled a Quality Manual and created a process map applicable to
all Iveco sites in Europe, excluding the Fire Fighting, Markets and Financial Services sites. A description of each business process
included in the map is contained in procedures, which may illustrate particular exceptions due to the different types of business
(e.g., Bus or Astra, etc). Adopting a centralized quality assurance system means:
n defining common rules, avoiding the duplication of any management procedures or methods at sites

n aligning internal quality assurance audits and carrying out an overall evaluation of the adequacy of the system with regard to the

requirements of the business and ISO 9001 norms

n hosting audits from certification bodies according to the sampling criteria for the plant visits
n optimizing solutions to address potential non-conformity and sharing the corrective actions across all sites.
The central quality assurance body is responsible for coordinating and identifying corrective actions as well as ensuring these are
carried out and monitoring the effectiveness of solutions, to avoid the repetition critical incidents.

ENVIRONMENTAL MANAGEMENT
GRI-G3.1
EN30
In 2012, Fiat Industrial Group made significant progress towards reducing its environmental footprint. This process, Sustainability Plan
Our commitments on pages 33-34
which includes all factors affecting the environment (selection, use and processing of raw materials and natural resources,
Glossary
product end-of-life and disposal) has required serious commitment, both financially and in terms of improving technical KPI, ISO 9001, WCM
and management performance. Indeed, all 2012 targets set in the 2010-2014 Environmental Plan have been reached while
the environmental indicators relevant to the Group show a continuous improvement over recent years.

111
 Environmental MANUFACTURING
Dimension PROCESSES

This demonstrates that respect for the environment is as crucial to the companies of the Fiat Industrial Group as the
€36 million desire to lead in the business sectors in which it operates.
spent on protecting Total Group expenditure on environmental performance improvement for 2012 was approximately €36 million (+6% over
the environment the same scope reported in 2011), broken down as follows: €23.8 million for waste disposal and emissions treatment and
€11.9 million for prevention and environmental management expenses.
The cost breakdown by Group company was €14.1 million for CNH, 14.4 for Iveco and 7.2 for FPT Industrial.
Following on from these achievements, 2013 will again be a year of challenges for the Group in terms of progressive
improvement. Initiatives aimed at reducing the environmental impact of its plants will be implemented, with special attention
devoted to issues of global importance for the community, such as biodiversity and conservation of water resources.
Fiat Industrial Group’s Environmental Guidelines, issued in 2010, demonstrate the Group’s dedication to continuous
improvement. These lay out short, medium and long term commitments to responsibly manage energy, natural resources,
raw materials, dangerous substances, polluting emissions, waste, natural habitats and biodiversity. These factors are
included in Fiat Industrial Group’s environmental management system, and are monitored and measured to set Group
and company targets (see also pages 32-35).

112
Organization
Each Group company coordinates environmental and occupational health and safety management through an Environment,
Health and Safety (EHS) unit, to ensure policy implementation consistent with the Group’s Environmental Guidelines.
The purpose of this structure is to ensure that commitments made are implemented locally, to check periodically that
performance is aligned accordingly, to propose new initiatives and to establish environmental policies. Plant personnel
belonging to different functions and bodies (production lines, logistics, manufacturing engineering, etc.) play an equally
important role in environmental issues, acting as the real operating arm of environmental protection.
In addition to confirming the commitments made in 2011, the 2012 Sustainability Plan has set new and challenging targets
for 2013 – 2015 through which Fiat Industrial Group will further improve its overall environmental performance.
The Group also uses centralized systems to spread awareness and manage environmental issues. These include the
Standard Aggregation Data (SAD), i.e., the performance-indicator management tool, and the Environment, Health and 56 plants
Safety IT platform. The latter provides training and information tools such as ISO 14001 certification support documents
(guidelines, procedures and reporting guidelines, etc.) to those who need them. Approximately 350 people from Fiat ISO 14001
Industrial Group worldwide have access to the platform.
certified

Process Certification
The Group has certified the environmental management system of its manufacturing processes according to the ISO 14001

Environmental
standard, through accredited external organizations and bodies.

dimension
An internal standard, established by the EHS unit of each Group company for documents such as guidelines and general
and operational procedures, makes rules and regulations which are standardized and adaptable to all plants.
In 2012, the Group continued its commitment to achieve and maintain certification for manufacturing plants. As of
31 December 2012, 56 plants had obtained certification.

Sustainability Plan
Our commitments on page 33
Glossary
Biodiversity, ISO 14001, SAD

113
 Environmental MANUFACTURING
Dimension PROCESSES

In 2012, as set forth by the Sustainability Plan, the ISO 14001 certification process was also initiated for non-manufacturing
45,200 hours sites in Italy: the Iveco Officine Brennero S.p.A. plants in Verona and Trento (Iveco sales and assistance dealers for
commercial and industrial vehicles and buses) were the first Group sites to be awarded this prestigious accreditation.
of training on
In 2012, as set out in the Sustainability Plan targets, the mapping of suppliers who have achieved ISO 14001 certification
environmental was started. An initial analysis showed that suppliers demonstrate a good level of attention and sensitivity to environmental
issues issues. Fiat Industrial Group is dedicated to extending environmental consciousness beyond the company. With this in
mind, an information and awareness campaign for all Group suppliers worldwide was launched, addressing the importance
of adopting a certified environmental management system.

Training and Communication

Fiat Industrial Group believes that investment in human capital is fundamental to achieving its goals. For this reason, in
2012, the company again provided training to personnel working in areas where environmental issues are relevant, in
order to improve their skills and know-how.
Over the year, approximately 45,200 hours of training on environmental issues were provided (+45% compared with the
previous year), attended by approximately 26,500 employees.
Cross-sector initiatives launched in previous years continued in 2012, with environmental information kits distributed in
all Group plants worldwide, along with the Water Management Guidelines and those on the design and purchase of new
equipment with reduced noise emissions.
Sustainability Plan FPT Industrial organized a training course aimed at the management of environmental and energy-related issues
Our commitments on pages 33-34, 46
Glossary associated with auditing processes and techniques. This course, involving both theoretical lessons and practical
Audit, ISO 14001 group activities, was provided by an accredited third par ty organization in two sessions and was attended by 34
par ticipants from plants across Italy.
These individuals belong to several professional families and will form par t of the internal auditing team and contribute
to fur ther raising awareness of environmental and energy issues within the plants.

114
Fiat Industrial Group published a summary of the Group’s main environmental achievements on its intranet to mark
the 40 th World Environment Day (5 June 2012). This summary highlighted the company’s daily commitment to
environmental responsibility, citing the most significant facts, figures and initiatives of the last two years. Also on this
occasion, Energy Day was held at Iveco’s Turin plant, the first workshop devoted to the professional family of Iveco
energy specialists (see also page 132).

ENVIRONMENTAL PERFORMANCE
The Standard Aggregation Data (SAD) system is used to monitor environmental performance, measure the effectiveness
of actions taken to achieve targets and plan new initiatives for continuous improvement, through the management of Key
Performance Indicators (KPI). These indicators can be analyzed at different aggregate levels: at plant, company or Group
level. This allows measures to be taken simultaneously and in parallel, involving different corporate functions at various
levels to ensure that targets are met.
Throughout 2011, the SAD system, which came into force in 2010, enabled new, standardized environmental indicators
to be monitored and reported, and associated targets to be set. These were reported in the 2011 Sustainability Plan and
updated for the following year.
In 2012, a cross-sector working group made changes to the monitoring system, extending its scope to improve the way it is
used and to increase the amount of information provided. This allowed for a broader use of the system right from its launch.

Environmental
dimension
Brazil
THE ENVIRONMENTAL COMMITMENT
During 2012, Fiat Industrial Group strengthened its commitment to the environment in Brazil (declared World Environment Day
host country), promoting initiatives involving every Group sector.
The FPT Industrial plant in Sete Lagoas supported a program promoted by the Chico Mendes Institute in Paraopeba, which saw
wood originating from packaging donated to carpentry workshops employing young people in social reintegration programs.
This wood is used to make furniture, toys and other objects for schools and other organizations in need. In 2012, FPT Industrial
donated 12 thousand kilos of wood. The Sete Lagoas plant also supported the Sementinha project, establishing an environmental
education program for public schools, employees and their families (see also page 248).
In addition, the CNH and Iveco parts distribution center in Sorocaba was the first in the Latin American car parts sector to
obtain LEED Gold certification, awarded to ecological buildings (see also page 138).
In 2012, certification of Group manufacturing plants with the ISO 14001 standard went on to include the CNH plants in Curitiba, Sustainability Plan
Sorocaba, and Belo Horizonte. Additionally, at the Iveco plant in Sete Lagoas, in recognition of the importance of adopting a Our commitments on pages 33-34
Glossary
certified environmental management system, suppliers with ISO 14001 certification cover over 75% of the direct material Audit, ISO 14001, KPI, SAD
purchased(1), as shown by an initial analysis carried out at the beginning of the mapping and awareness campaign.
Moreover at the Iveco plant in Sete Lagoas, a key initiative has been launched for safeguarding water resources, focusing on the
lakes adjacent to the plant.

(1)
Percentage calculated on the turnover of companies supplying direct materials to the plant. 115
 Environmental MANUFACTURING
Dimension PROCESSES

Safeguarding air quality

The reduction of atmospheric emissions is one of the strategic goals that Fiat Industrial Group pursues through the
application of the best technologies available in production processes and in the production and use of energy.
The main atmospheric emissions are monitored according to specific programs, with the aim of ensuring that existing
regulations are complied with, and the results are systematically recorded by means of the SAD monitoring system.

Volatile Organic Compounds (VOC)

Of all manufacturing processes, painting has the greatest environmental impact, owing to the presence of Volatile Organic
-8% in VOC Compounds (VOC). For this reason, Fiat Industrial Group has always been committed to monitoring and reducing VOC
emissions emissions per square meter painted. In 2009, as reference year, the Group’s emissions were, on average, approximately
67 g/m2 painted; in 2012, the value was reduced to 49.4 g/m2 (-26% over 2009), reaching the target set in the 2011
per square meter
Sustainability Plan (-15% in 2014 over the 2009 figure).
painted over 2011
Emissions of Volatile Organic Compounds
Fiat Industrial Group worldwide (g/m2)
2012 2011 2010
Average VOC emissions 49.4 53.8 62.5

GRI-G3.1
EN20
Sustainability Plan
Our commitments on page 34
Glossary
SAD, VOC

116
Emissions of Volatile Organic Compounds

CNH
(g/m2)
56.3
49.1 Target reduction
2014 vs 2009
44.3 -15%

2010 2011 2012

Iveco
(g/m2)
72.4
63.8 62.5 Target reduction
2014 vs 2009
-15%

Environmental
dimension
2010 2011 2012

FPT Industrial
(g/m2)
36.6 Target reduction
2014 vs 2009
-15%
24.8
22.6

2010 2011 2012

GRI-G3.1
Ozone Depleting Substances (ODS) EN19, EN20
In Group plants, Ozone Depleting Substances (ODS) are only present in certain equipment used for cooling, air Sustainability Plan
Our commitments on page 34
conditioning and climate control.
Glossary
Fiat Industrial Group actively updates inventories of machinery and equipment containing ODS, to maintain control over ODS
the quantity of these substances present in plants, with a view to completely replacing ODS with more eco-compatible
gases and/or technologies by the end of 2014 (see also page 259).

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 Environmental MANUFACTURING
Dimension PROCESSES

WATER MANAGEMENT
The sustainable management of water resources is a key priority for Fiat Industrial Group, particularly in light of the
emphasis placed on this issue by the international community. This was confirmed at the Rio+20 Conference in 2012, and
by the declaration of 2013 as the International Year of Water Cooperation by the UN.
Sustainable water management is a strategic worldwide commitment. Growing populations together with a critical
shortage of water in many world regions is leading to increasing demand coupled with diminished supply. Furthermore,
from a business and risk management point of view, the Group recognizes that the economic relevance of proper water
management lies in the continuity of supply for industrial processes.
Fiat Industrial Group believes therefore that creation of value for the company must include an increase in water efficiency
in its industrial processes, depending on the geographic and ecological context, and that its plants must operate locally to
reduce water requirements and wastewater volumes, while at the same time ensuring high quality standards.
In 2011, the Water Management Guidelines were drawn up and were subsequently extended to all Group plants during
2012. These guidelines and associated application tools are important elements in ensuring uniformity in terms of principles
and methods, so that internal comparisons can be made and plants can be classified according to priorities.
In 2013, the Group will incorporate the Water Management Guidelines in the environmental management systems of
selected plants, extending these to the remaining plants over the coming years.
Water use in Group plants is currently optimized by means of:
-5% in water n analysis of consumption, make-up and management of water withdrawal and distribution systems, identifying and elimi-

withdrawal nating leaks and waste

n assessment of the manufacturing processes with the greatest impact on water resources and adoption of changes and
per hour of
technological innovations for boosting efficiency and reducing consumption
production over 2011
n recycling of water resources in individual manufacturing processes and reusing it in multiple processes

n raising personnel awareness of careful use of water.

Through joint and coordinated efforts across Group companies, in 2012 Fiat Industrial Group improved its performance regarding
water use per production unit in line with targets set for 2014. Specifically, there was an improvement in the water withdrawal
per hour of production, which Fiat Industrial Group reduced by 41% overall compared to 2009 (chosen as reference year).

Water withdrawal and discharge

Fiat Industrial Group worldwide (thousands of m3)
2012 2011 2010
Plants 59 61 63
Withdrawal
Groundwater 4,724 5,278 5,090
Municipal water supply 2,436 2,357 2,091
Surface water 23 30 42
of which salt water - - n.a.
Other 1 9 13
GRI-G3.1 Total water withdrawal 7,184 7,674 7,236
EN8, EN10, EN21, SO9, SO10
Discharge
Sustainability Plan
Our commitments on page 33 Surface water 1,195 1,338 1,503
Web of which salt water - - n.a.
www.uncsd2012.org Public sewer systems 3,439 3,901 4,311
Other destinations 40 47 399
Total water discharge 4,674 5,286 6,213

118
Water withdrawal per production unit

CNH
(m3/hour of production)

0.15
0.13
0.12 Target(1) reduction
2014 vs 2009
-25%

2010 2011 2012

Iveco
(m3/hour of production)

Environmental
0.25

dimension
0.19
0.17 Target reduction
2014 vs 2009
-45%

2010 2011 2012

FPT Industrial
(m3/unit produced)

3.10 3.01 2.97

Target reduction
2014 vs 2009
-55%

2010 2011 2012

(1)
The target has been updated due to several reasons, such as: change in production activities (processes and volumes), relocation of some production activities and
conversion of some plants, change in reporting scope and interruptions in production. 119
 Environmental MANUFACTURING
Dimension PROCESSES

In 2012, as a demonstration of the Group’s commitment to continuous improvement, a reverse osmosis plant was
introduced at the Iveco plant in Vittorio Veneto (Italy), for treating wastewater originating from a waterjet cutting machine,
enabling the recovery and reuse of water within the process. Through this initiative, withdrawal from the water supply per
hour of production was reduced by approximately 67% over 2011.
Safeguarding bodies of water that receive process effluent is equally important to Fiat Industrial Group. For this reason,
both manufacturing processes and internal wastewater treatment plants, which treat approximately 75% of its wastewater,
are carefully managed.
Furthermore, the Group’s companies have set strict internal targets for the quality of water discharges from their
manufacturing plants (see also page 261), focusing on parameters held to be most representative of wastewater quality
in relation to Group manufacturing processes: Biochemical Oxygen Demand (BOD), Chemical Oxygen Demand (COD)
and Total Suspended Solids (TSS).
Among the Group’s best achievements is that of the FPT Industrial plant in Bourbon Lancy (France). The ongoing
Set strict internal improvements to the water treatment plant during 2010 and 2011 led, for the most sensitive wastewater quality parameters,
targets for the to discharges that were under 80% of the threshold set by law for the Loire river (the only sensitive receiving body of water
among those used by Fiat Industrial Group, as defined by the Global Reporting Initiative-GRI).
quality of water Moreover, no significant spills occurred in 2012 with an impact on the environment. This serves to further demonstrate
discharges Fiat Industrial Group’s commitment to environmental protection.

Highlights
ZERO-EMISSION TREATMENT
The CNH plant at Coëx is in an area of France that suffers from regular droughts, and in 2012, the plant’s traditional waste-water
treatment system was replaced with an innovative zero-emission treatment process, based on vacuum evaporation technology.
This technology allows wastewater originating from industrial processes to be treated by boiling at around 35-38°C to separate the
water phase (distillate) from the pollutants (concentrate).
While the concentrate is discarded as liquid waste, the distillate is reused in the productive process, with a recovery of approximately
90% of the water treated. This initiative has saved approximately 4,000 m3/year.
At the end of 2012, a similar system of wastewater treatment was installed at the CNH plant in Tracy le Mont (France), and water
savings are expected to be approximately 300 m3/year.

Plants in water stressed areas

Following the adoption of the Water Management Guidelines in 2011, Fiat Industrial Group identified three plants
worldwide which were considered sensitive in terms of new water availability and use. These zones were identified by using
the map of worldwide water stressed regions, defined by the Food and Agriculture Organization (FAO) in 2008. Countries
GRI-G3.1 considered as water stressed are those where water availability per capita is less than 1,700 m3/year. Following this principle,
EN8, EN10, EN12, EN23, SO9, SO10
Sustainability Plan the plants concerned are the CNH plants in New Delhi (India) and Plock (Poland), and the Iveco plant in Vysoke Myto
Our commitments on page 33 (Czech Republic). In these plants, specific actions for reducing water withdrawal and water requirements were identified
Glossary
BOD, COD, GRI, TSS and implemented, to minimize water needs in that country, conserving and safeguarding this precious resource.
During 2012, the CNH plant in New Delhi (India) made significant efforts to reduce water consumption. A task force
was established to monitor consumption at points of use: new water meters were installed to measure consumption and

120
eliminate leaks, overflows were monitored, water pressure was reduced at times of low demand and water flow limiters
and timers were installed in lavatories. Another initiative saw the reuse of treated wastewater from purification plants for
the irrigation of green areas, and weekly checks of the pipes and valves of the irrigation equipment.
These initiatives have contributed to reducing water consumption by approximately 26%, from 0.27 m3 per hour of
production in 2009 to 0.20 in 2012.
In the CNH plant in Plock (Poland), a new system for monitoring both water consumption and the production of
wastewater was installed in 2011. Furthermore, between 2010 and 2012, a series of improvements were realized
which enabled water efficiency to be improved and overall consumption from the public water supply to be reduced.
Initiatives include the optimization of the use of water in pre-treatment, with the reuse of washing water in the
degreasing process, and the production of demineralized water from paint cycle wastewater and its reuse in processes.
In addition, a significant energy saving and a drastic reduction in sediment was achieved thanks to changes to the metal
pre-treatment system in two of the three paint production lines, replacing the phosphatizing process with an innovative
technology based on silane compounds, which allows operation at room temperature. This led to a reduction in water
consumption of approximately 37%, from 0.16 m3 per hour of production in 2009 to 0.10 in 2012.
In 2011, the Iveco plant in Vysoke Myto (Czech Republic) developed an action plan for reducing water consumption through
technical and organizational improvements, escalating these activities during 2012. Measures taken include: implementation
of a new monitoring system of water withdrawals and use within the plant, technical changes for reducing water consumption
in lavatories and personnel awareness campaigns on key points regarding water consumption. Furthermore, new flow

Environmental
meters have been installed in high water consumption areas to identify high consumption plants and processes and to

dimension
eliminate leaks; this enabled a database to be created for analyzing trends and identifying measures for making improvements.
Another initiative concerns the optimization of water use in the pre-wash stage for cleaning vehicles, identifying maximum
consumption and time required and reducing consumption in the successive wash stage.
Together these measures have enabled a significant reduction in water consumption of approximately 50%, from 0.074 m3
per hour of production at the end of 2009 to 0.035 in 2012.

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 Environmental MANUFACTURING
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SOIL AND SUBSOIL PROTECTION

In 2013, Fiat Industrial Group plans to develop specific guidelines for the management of underground equipment and the
launch of a new industrial policy based around the use of above-ground systems.
In 2012, the Iveco plant in Bolzano (Italy) implemented a major project aimed at reducing environmental impact.
The project identifies possible sources of contamination for soil and subsoil, and takes appropriate action to minimize this.
Three underground reservoirs containing chemicals were removed at the Bolzano plant and two new reservoirs were
positioned above ground in specially designed containment tanks. This also allowed the quantities of products held in
stock to be rationalized, in proportion to production capacity and actual need.
A similar effort was carried out at the Iveco plant at Vittorio Veneto (Italy), which saw the removal of three underground diesel
tanks, used for the old heating system, and the subsequent installation of a new strip heating system fueled by natural gas.
In 2012, there were no significant spills with an impact on the soil or subsoil.

WASTE MANAGEMENT
GRI-G3.1
EN22, EN23
The Group has always worked to optimize manufacturing processes and related activity across all plants, with a view to
Sustainability Plan improving the final product and eliminating waste but also to improve the management of waste products. This is one of
Our commitments on pages 33-34 the key themes on which the Environmental Guidelines are based.
Every plant carries out in-depth analyses of the entire production chain to improve waste management at every stage,
limiting the quantities produced and reducing the risks posed by these materials. In addition, particular emphasis is placed
on actions that increase waste recovery and eventual reuse, through the systematic application of differentiated waste

122
collection at the source. Fiat Industrial Group’s commitment to optimized waste management goes beyond the plant: the
Group as a whole is dedicated to finding solutions that facilitate waste recovery and minimize material sent to landfill. -2% in waste
The latter should always be treated as a last resort and only used in exceptional or emergency cases where other options generation
such as recovery, thermal utilization and treatment are unavailable. Results from 2012 are proof of these efforts: recovered per hour
waste materials (equal to 79% in 2012) increased by 7% compared with 2009, while waste materials sent to landfill (equal of production
to 6% in 2012) were reduced by 21% compared with 2009. Equally, with regard to waste generated per production unit(1), over 2011
FPT Industrial’s performance figures recorded an 18% drop with respect to 2009, and a 40% drop in hazardous waste.

Waste generation and management

Fiat Industrial Group worldwide (tons)
2012 2011 2010
Plants 59 61 63
Waste generated
Non-hazardous waste 252,002 257,487 221,388
Hazardous waste 30,247 36,381 31,254
Total waste generated 282,249 293,868 252,642
of which packaging 77,035 79,220 62,419
Waste disposed
Waste-to-energy conversion 10,081 10,843 7,529
of which hazardous 2,600 n.a. n.a.

Environmental
dimension
Treatment 32,500 33,816 34,597
Sent to landfill 15,964 15,977 14,451
Total waste disposed 58,545 60,636 56,577
Waste recovered
Total waste recovered 223,704 233,232 196,065
of which hazardous 4,749 n.a. n.a.

Waste recovered 79.3% 79.4% 77.6%

Waste sent to landfill 5.7% 5.4% 5.7%

GRI-G3.1
EN22
Sustainability Plan
Our commitments on page 34

(1)
The production unit is the main parameter for production volumes for each company: hours of production for CNH and Iveco; units produced for FPT Industrial. 123
 Environmental MANUFACTURING
Dimension PROCESSES

Waste generated per production unit Hazardous waste generated per production unit

CNH CNH
(kg/hour of production) (kg/hour of production)

10.23 10.19 10.13

Target(1) reduction
2014 vs 2009 0.96
-1% 0.84 Target(1) reduction
0.79
2014 vs 2009
-33%

2010 2011 2012

2010 2011 2012

Iveco Iveco
(kg/hour of production) (kg/hour of production)

4.50 0.49 0.49

0.46 Target reduction
3.90 2014 vs 2009
3.59 Target reduction -20%
2014 vs 2009
-5%

2010 2011 2012 2010 2011 2012

FPT Industrial FPT Industrial

(kg/unit produced) (kg/unit produced)
82.00

66.63 Target reduction

60.45 19.55
2014 vs 2009
-11%
14.15 Target reduction
11.89 2014 vs 2009
-35%

2010 2011 2012 2010 2011 2012

(1)
The target has been updated due to several reasons, such as: change in production activities (processes and volumes), relocation of some production activities and
124 conversion of some plants, change in reporting scope and interruptions in production.
The above objectives were achieved through the application of specific procedures, which identify the responsibilities
and tasks necessary for the correct management of waste, from generation to disposal. These procedures are in place 79.3% of waste
in all Group plants. They are an integral part of the environmental management system, compliant with ISO 14001 (see recovered
also pages 113-114), and ensure a good understanding of the dynamics and flows that enable correct waste management.
Employee involvement is an essential part of this process: potentially critical situations and opportunities for improvement
are often identified by those who work with these issues on a daily basis, and who can make suggestions according to the
procedures set out in the World Class Manufacturing program (see also pages 107-111).
In addition, specific training and awareness programs are provided on appropriate behavior and procedures to be followed
in the everyday management of different types of waste.
In 2012 99% of hazardous waste produced by the Group was transported to, and disposed of, in the countries where it
was generated; no plant treats hazardous waste internally.
Among the main activities carried out in 2012 on these issues, one initiative worth mentioning was the introduction at the
CNH plant in Grand Island (USA) of various changes in the Index Paint System painting process. This project is among the
World Class Manufacturing initiatives. This solution has led to a reduction in the amount of solvent needed to clean the paint
spray guns between color changes, reducing both the paint nozzle diameter and the cleaning time.

Environmental
dimension
Highlights
Waste Task Force
In 2012 Iveco set up a specific task force on waste management, bringing together representatives from the major European plants.
The scope of this work group was to establish measures for making savings and improvements through the systematic and in-depth
analysis of waste disposal costs.
This analysis allowed a comparison to be made between plants, through the benchmarking of disposal rates, of internal management
costs and of the destination of each type of waste. Using standard data collection tools, it was possible to identify measures for
improvement, outline best practices and assess the applicability of these to individual circumstances.
Examples of the measures put in place in the plants include:
n improvement of the differentiated waste collection process, in order to separate and recover waste of most value

n use of reusable and/or recyclable materials requiring appropriate treatments (for example washing), instead of disposable

materials
n zero cost collection of certain wastes using specific service providers or consortia

n updating and maximizing capacity of internal wastewater treatment plants, avoiding disposal as waste

n volumetric reduction measures, through the purchase of specific machinery

n negotiation of favorable disposal tariffs.

GRI-G3.1
The work group identified activities which afford economic savings of around 10% in waste disposal costs. This has contributed to EN22
an improvement in Iveco’s environmental performance, leading to an increase in the company’s waste recovery indicator; in 2012 Sustainability Plan
this figure was equal to 78.3%, compared with 76.6% in 2011. Our commitments on page 34
This activity also proved useful from an educational perspective, allowing the team to exchange experiences and opinions, and to Glossary
ISO 14001, WCM
increase their individual know-how and understanding of different approaches.

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 Environmental MANUFACTURING
Dimension PROCESSES

These alterations allow the Grand Island plant to save a total of 1.5 kilos of solvent over each cleaning cycle. Savings, equal
to approximately €55 thousand, are derived from decreased solvent consumption, reduced hazardous waste production
and reduced spending on steel rollers. The initiative has led to an overall reduction of around 44% in hazardous waste
production levels. With further optimization measures the production of hazardous waste per production unit has
decreased from 0.07 kilos per hour of production in 2011 to 0.03 in 2012.
Also noteworthy is the experience of FPT Industrial in Foggia (Italy), where major changes were made to the mechanical
work process in the second half of 2012. These included:
n changes to the plant system of chips and sludge collection aimed at improving the selection of chips and grinding sludge

downstream from the work machinery

n the installation of a grinding sludge compaction system (briquetter) within the manufacturing process which reduces

sludge weight by 60% and the reuse of coolant directly in the manufacturing process.
The combination of these processes will allow the Foggia plant to achieve a 50% reduction in hazardous waste per
production unit and to reach a waste recovery percentage of 94%; these activities will also have a significant impact on
disposal costs, with a decrease of around 15%.

PROTECTING BIODIVERSITY
The integration of manufacturing plants into the local habitat further strengthens the Group’s responsible approach to
sustainability as set out in the Environmental Guidelines.
The Group is committed to contributing to the preservation of wildlife and biological diversity through the adoption
of sustainable development strategies, continuing with the progressive application of the Biodiversity Value Index (BVI)
methodology. This framework was developed in 2010 with the scientific support of the Department of Life Sciences and
Systems Biology of the University of Turin and with the help of a professional consultancy firm.
The BVI methodology aims to identify and assign priority to any measures necessary to improve the environment
surrounding the plants and to address issues relating to biodiversity, whether as a whole or through a two-fold evaluation
of typical indicators that stem from extensive and scientifically documented expertise. These are:
n Anthropic Pressure Index (API), which quantifies the environmental impact on an area due to industrial, agricultural,

urban or infrastructural pressures

n Biodiversity Index (BI) that measures the most common biological indicators of aquatic and terrestrial ecosystems.

In 2012, in keeping with the Sustainability Plan, several major activities were carried out at those Group plants with
particular interest in the project due to their special focus on environmental and biodiversity issues.
In Curitiba (Brazil), a city close to important and sensitive areas for biodiversity including city parks and an important
nature reserve, a close partnership was established between the CNH plant, the University of Turin, the University of
Paranà and other Brazilian research institutes. The methodology used to calculate the biodiversity index was adapted to
the geography of the region and to the specifics of South American ecosystems, and applied for the first time outside
Europe. The API process showed an anthropic pressure linked mainly to the recent industrial development of the area.
GRI-G3.1
EN12, EN13, EN14, SO9, SO10
The biodiversity analyses will be completed in 2013 with the evaluation of the BVI index and the identification of any
Sustainability Plan actions necessary to achieve biodiversity improvements.
Our commitments on page 34 The BVI method was applied to the Iveco plants in Ulm (Germany) and Suzzara (Italy) over the course of 2012. The Ulm
Glossary
Biodiversity plant is situated in Baden-Württemberg, a densely wooded, hilly region near Bavaria. It borders with the Danube river, the
second longest in Europe, and is located near four protected areas. The Suzzara plant, in the Mantua province, is set on
the right bank of the Po, Italy’s longest river, and one of the most important in Europe. It is also close to a protected area,

126
which belongs to the Nature 2000 network(1). The
evaluation of API, BI and BVI indicators is forecast
for 2013, for both sites.
The FPT Industrial plant in Bourbon Lancy
(France) has completed the application of the BVI
methodology which demonstrated a low level of
anthropic pressure (mostly due to agriculture) and
an elevated BI level, as indicated by the presence
of numerous plant and protected animal species
with high diversity value. This result proves
the effectiveness of the environmental policies
adopted across the region and promoted through
the sensitivity and environmental awareness of
the local community. The Group is driven by the
desire to consistently improve the environmental
performance of its processes. This approach is
supported by an ISO 14001 certified environmental
management system which has been in operation

Environmental
dimension
at the plant for several years. Among the measures
implemented in Bourbon Lancy, the reduction of
water withdrawal and waste in both quantitative
and qualitative terms is particularly significant. This
was achieved through the following solutions:
n the adoption of a recirculation system

n the installation of advanced wastewater treat-

ment systems (see also page 120)

n the use of ever more environmentally friendly

chemicals (such as water-soluble paint instead of

those with high organic solvent content).
Additionally, during 2013, further biodiversity in-
dex improvement measures will be identified and
planned. These may include, for example, the planting
of indigenous hedges, which will act as wildlife cor-
ridors for many animal species, as well as the con-
tainment of invasive, alien plant species in order to
GRI-G3.1
improve natural biodiversity. EN12, EN13, EN14, SO9, SO10
Remaining on the theme of biodiversity, the CNH Sustainability Plan
Our commitments on page 34
plant in Saskatoon (Canada) has collaborated
Glossary
with local authorities on the drafting of a Biodiversity, ISO 14001
biodiversity study; this is currently underway and
aims to identify animal and plant species under

(1)
The Natura 2000 network is the centerpiece of the European Union’s biodiversity conservation policy. It is an ecological network that spans the whole of EU territory,
established under the 92/43/CEE Habitat directive to ensure the long term maintenance of natural habitats and species of rare or threatened flora and fauna across the EU. 127
 Environmental MANUFACTURING
Dimension PROCESSES

protection and collect the data required to implement new policies regarding biodiversity and the management of
local wetland areas.
Fiat Industrial Group is always sensitive to the social and environmental context in which it operates, and intends to extend
the biodiversity project to other plants in the course of 2013. The Group firmly believes that caring for the environment
that surrounds us, and the species that live within it, is essential to ensuring a sustainable future for our planet.

Plants near, bordering or within protected(1) or high biodiversity areas

Fiat Industrial Group worldwide

Company and plant Type of activity Total surface area Position in relation to Species
of plant (m²) protected area IUCN Red List and
on national lists (no.)

CNH - Curitiba (Brazil) Production of agricultural 792,824 Adjacent to / containing portions In identification phase
equipment of the protected area

Iveco - Ulm (Germany) Production of industrial vehicles 679,000 Adjacent to the protected area Planned for 2013
(heavy and special vehicles) (2,000 m away)

Iveco - Suzzara (Italy) Production of industrial vehicles 520,000 Adjacent to the protected area Planned for 2013
(light vehicles) (4,000 m away)

FPT Industrial - Bourbon Lancy Production of heavy-duty diesel 210,090 Adjacent to the protected area 193 species listed(2), of which:
(France) engines (500 m away) n 0 critically endangered (CR)
n 2 endangered (EN)

n 1 vulnerable (VU)

n 1 near threatened (NT)

n 189 least concern (LC)

GRI-G3.1
EN11, EN12, EN13, EN14, EN15, EN25,
SO9, SO10
Sustainability Plan
Our commitments on page 34
Web
www.iucn.org
Glossary
Biodiversity, IUNC Red List

(1)
A protected area (national, regional, site of Community interest, special protection zone, oasis, etc.) is a geographically defined area that is designated, regulated or
managed to achieve specific conservation objectives. An area of high biodiversity value is an area that is not subject to legal protection, but is recognized by a number of
governmental and non-governmental organizations as having significant biodiversity.
128 (2)
Some of the species are shown on pages 127, 128 and 129.
 Environmental
dimension
OTHER ENVIRONMENTAL INDICATORS
Fiat Industrial Group also focuses its attention on other indicators, most notably the reduction of hazardous substances Permanently
and noise emitted to the external environment from equipment and manufacturing processes.
eliminating
Substances of particular influence on health and the environment all substances containing
In 2012 the activities launched in 2011 continued, with a focus on identifying substances used in Group processes and plants PCB
which are of particular relevance to health and the environment. This analysis revealed the use of several components
containing heavy metals. In 2012, these components were subject to analysis and action was taken to reduce their use or
to replace them completely. This was achieved through the application of innovative solutions such as the reformulation
of products and the use of nanoceramic products or silane compounds.
GRI-G3.1
External noise produced by plants SO9, SO10
Following the results obtained by the cross-company work groups established in 2010, the new guidelines were distributed Sustainability Plan
Our commitments on page 34
in 2011 to plants. These regard the design, planning and purchase of new machinery with lower noise emissions. Glossary
To fully satisfy the commitments laid out in the Sustainability Plan, Group plants integrated the contents of the guidelines PCB, Audit
into environmental management system documentation over the course of 2012, ensuring their application through the
audits conducted to date.

129
 Environmental Manufacturing
Dimension Processes

Energy management
Energy is essential to economic development; it also has significant social implications due to today’s dependence on fossil
energy sources, which are not only limited but also have an environmental impact in terms of air pollution, producing the
CO2 emissions most responsible for climate change.
Since energy is an international issue, it was addressed at the global Conference on Sustainable Development held in Rio de
Janeiro in June 2012, and included in The Future We Want document which summarizes future priority measures concerning
sustainability issues.
Climate change mitigation is a major challenge
for the international community: greenhouse gas
emissions can be reduced only through a tangible,
globalized and shared commitment supported by
innovative technologies.
Governments and businesses today endorse waste
reduction and a restricted use of fossil fuels, so as
to mitigate the dependency on increasingly scarce
raw materials. In line with the Environmental
Guidelines, the Group is committed to developing
and adopting environmentally and economically
sustainable solutions to fight climate change,
conserve natural resources, and safeguard health.
Through the specific actions set out in the
Sustainability Plan, Fiat Industrial Group aims
at reducing energy consumption by increasing
the effectiveness of manufacturing processes
and products, and by limiting greenhouse gas
emissions and other pollutants, through cutting-
edge technical solutions and an increased use of
renewable energy sources.
Managing greenhouse gas emissions and energy
consumption is crucial in achieving significant
results, ongoing performance improvement, and a
cleaner environment.
With approximately 6% of the energy spending
GRI-G3.1
EN7, EN18 invested in energy performance improvement,
Sustainability Plan the Group reduced energy consumption by more
Our commitments on pages 34-35
than 117 thousand GJ.
Web
www.uncsd2012.org The Group is also focused on improving the sustainable and efficient management of buildings, by using systems and
technologies that reduce environmental impact and, in particular, energy consumption. It will launch an ambitious project
in 2013 to identify sustainable solutions to design a plant model with a low emission impact.

130
organization
The Group strives to conserve energy resources and fight climate change through a specific internal organization. Every 23 plants
company has, in fact, a department responsible for energy management, both centrally and at plant level. ISO 50001

Environmental
Group activities are coordinated by the Fiat Industrial Energy Management (FIEM) committee, which consists of energy certified

dimension
managers from the various companies, and collaborates with both the Sustainability Unit and the plants. The FIEM defines
Fiat Industrial Group’s guidelines and objectives, and the best strategies to achieve these, while sharing and continuously
enhancing the best practices available. The FIEM is responsible for the constant monitoring of the 2009-2014 Energy Action
Plan, which defines the short and medium term targets for each company regarding major interventions within the energy
field (energy performance, CO2 emissions, renewable energy, emission trading, etc.). A specific IT platform allows the
constant communication between energy managers, who share data reports as well as energy performance outcomes.

Energy management system

FIEM strategies are applied through an energy management system, a method used by plants to create energy standards, launch
monitoring processes, and maintain and improve performance. This system is developed and implemented by each company to
reduce the energy impact of processes, and the risks associated with new legislation and with increasing energy costs.
In 2012, Fiat Industrial Group continued to pursue the procedures started in 2011 to certify its manufacturing processes
according to the UNI CEI ISO 50001:2011 standard, as part of its quest to reduce energy impacts.
The main advantage of the ISO 50001 certification is that it offers a systematic approach to the ongoing improvement
of energy performance; this allows for a more efficient and balanced use of energy, which leads to financial benefits and
GRI-G3.1
a reduction in greenhouse gas emissions. EN5, EN7, EN18
Fiat Industrial Group’s energy management system was rolled out at 23 plants, which represent 70% of energy consumption. Sustainability Plan
Our commitments on page 34
The ambitious goal is to cover 90% of consumption by the end of 2013.
Glossary
CNH’s pursuit of international certification continued in 2012 by extending the energy management system to the plants Emission trading, ISO 50001
in Benson, Fargo, Grand Island, and Saskatoon (USA), and in Anvers (Belgium), Jesi (Italy), Plock (Poland), and Basildon
(UK). After certifying its first plants in Brescia and Suzzara (Italy) in 2011, Iveco implemented a multi-site certification

131
 Environmental Manufacturing
Dimension Processes

Highlights
United by energy
Energy Day, held in Turin on 5 June 2012, was the first global workshop organized by Iveco. Addressing the energy specialist
professional family, the seminar offered CNH and FPT Industrial energy managers and Iveco plant managers a venue to meet
and network. On this occasion, Iveco illustrated its energy performance and its first energy policy, and shared its experience
with the ISO 50001 certification process. The event, attended by more than 90% of Iveco energy specialists from all over the
world, was also an occasion for employees to share experiences, success stories, and information regarding completed energy
saving projects. It was a unique opportunity to showcase the synergies at the core of development and ongoing improvement
within any global business. Furthermore, Iveco played an active role in the scope of World Environment Day by promoting
the Energy Challenge: a competition between plants promoting proper energy management while awarding energy-saving
ideas and plant performance.

project, extending the certification to the plants in Annonay (France), Bolzano and Vittorio Veneto (Italy), Vysoke Myto
(Czech Republic), and Madrid and Valladolid (Spain). After Turin Engine plant, FPT Industrial also introduced the energy
management system at the Torino Driveline and Foggia (Italy) plants. Voluntary compliance with the new ISO 50001
standard reflects Fiat Industrial Group’s determination to manage the company in a sustainable way, as recognized globally
by the results obtained in the Dow Jones Sustainability Index and the Carbon Disclosure Project (see also page 78).
Fiat Industrial Group’s energy management system incorporates the WCM methodology on energy issues to boost
synergy between the various monitoring and management processes.

GRI-G3.1
EN5, EN7, EN18
Sustainability Plan
Our commitments on pages 34-35
Web
www.unep.org
Glossary
ISO 50001, WCM

132
The groundwork for ISO 14064 certification that provides for greenhouse gas (GHG) reporting and monitoring was
started in 2012 for the CNH plants in Grand Island (USA) and Basildon (UK), the Iveco plants in Brescia (Italy) and Madrid
(Spain), and the FPT Industrial Turin Engine plant. ISO 14064 certification was successfully achieved by the Türk Traktor
joint venture at the plant in Ankara (Turkey).

Training and awareness activities

It is essential that employees support the Group in the conservation of energy resources. For this reason, employee training
and awareness programs have been organized across all companies, to illustrate the specifics of the energy management system
in line with the ISO 50001 standard, and to form a team of internal auditors capable of applying, monitoring, maintaining, and
improving the energy management system. Over 3,770 hours of training were provided for a total of 3,113 participants. Iveco
in particular organized an Energy Day on the occasion of World Environment Day (WED) celebrated on 5 June 2012, to raise
awareness and provide information on topics relating to energy. The event was the first of its kind, and in the wake of its success,
the FIEM committee decided to repeat the initiative in 2013, extending it across all Fiat Industrial Group companies.

The voice of our stakeholders

The New Holland Agriculture plant in New Delhi (India) achieved ISO 50001 certification for

Environmental
its energy management system.

dimension
Vikas Gupta, Manufacturing General Manager at the New Delhi plant:
“The certification of the energy system of the New Delhi plant is the result of various initiatives
put in place within the sustainability activities. To just mention one, variable frequency drive
compressors have been installed on the lines. These compressors can modulate the air
production, adapting to demand in real time, therefore without energy loss. Compared to
traditional compressors, up to 15% of energy can be saved”.

Energy performance
93% of energy
An efficient energy management system relies on the effective monitoring of energy performance, also through specific consumption
Energy Performance Indicators (EnPI). monitored
This system allows the Group to measure the benefits and effectiveness of ongoing initiatives, to plan improvement
measures, and to set new, challenging objectives. The Energy Monitoring & Targeting (EMT) management system was
used to monitor energy performance and compliance with Energy Action Plan commitments, and to compare plant
performance levels for each company. The EMT was extended to 41 Group plants, covering 93% of fuel consumption. The
GRI-G3.1
FIEM’s primary focus was on the most energy-consuming plants, with a view to reaching 95% of the overall consumption EN5, EN7, EN18
in 2013. To be noted is CNH’s strong commitment to extending the EMT, which was in place across all plants in 2012, one Sustainability Plan
Our commitments on pages 34-35
year ahead of the objectives set out in the Sustainability Plan.
Glossary
In order to achieve the objectives set out in the 2009-2014 Energy Action Plan, thorough performance monitoring was ISO 14064, ISO 50001
combined with a closer look into the comparison and dialogue between plants, by adopting an IT platform across all
companies aiming at identifying solutions to energy-related challenges. This activity led to the identification and realization

133
 Environmental Manufacturing
Dimension Processes

of over 180 technical and management improvement programs,

while increasing the knowledge and engagement of individuals.
Several management and plant activities were introduced in
2012 to reduce energy consumption:
n solar thermal systems for the production of hot water from

renewable sources
n high-efficiency lighting systems (LED technology, fluorescent

T5 lights or dimmers) in production areas, offices, and external

areas, combined with light intensity regulators and motion
sensors
n high-efficiency engines, electric motor inverters, and variable

speed air compressors

n finding and fixing of compressed air leaks

n intensification of the efforts to switch off machinery when idle

n intelligent stand-by equipment on machining centers and

transfer lines
n systems for recovering heat from output fumes or air

compressors
n use of radiant panels to increase heating efficiency in large

buildings, and management of space heating in workshops

through precise consumption and temperature analysis
n painting floor room air recovery

n application of nanotechnologies in painting

n hardware and software innovations on machines that process

metal components.
An energy-saving campaign promoting the efficient use of light
involved approximately 40% of Group plants. It has led to an
overall reduction of more than 21 thousand GJ and prevented
the release of approximately 2,500 tons of CO2 into the atmosphere. Financially, the benefit after the first year was equal
to 55% of sustained investment.
Direct and indirect energy consumption sources and related CO2 emissions were reported in detail in 2012. A distinction
was made between renewable and non-renewable energy for each source. CO2 emissions were calculated according
to GHG Protocol standards encompassed in company guidelines, whereas indirect emissions associated with energy
GRI-G3.1 production were calculated according to the International Energy Agency standards published in November 2012.
EN5, EN7, EN18
Sustainability Plan Within Fiat Industrial Group, the only greenhouse gas emissions other than those deriving from energy consumption
Our commitments on pages 34-35 are connected to the use of substances with Global Warming Potential (GWP), present in building or machinery air
Glossary
CO2 eq, GHG Protocol, conditioning equipment. The potential emissions associated with these substances (CO2 eq) are negligible in comparison
GWP, Indirect emission,
Inver ter, LED to energy production emissions: with an incidence of less than 0.2%, they are not comprised in the reporting scope.
The reporting scope is explained in the Report Parameters section (see page 255).

134
 Environmental
dimension
Energy Consumption
Fiat Industrial Group’s total energy consumption in 2012 was 7,852 TJ, around 6% less than in 2011. While maintaining
production levels similar to those of 2011, this reduction is mainly the result of greater efficiency arising from energy -6% in energy
projects and the reduction in the number of Group plants. In terms of energy performance, measured in energy
consumption per unit value (hours of production for CNH and Iveco, and units produced for FPT Industrial), the Group’s
consumption
over 2011
2012 year-end results were more than satisfactory because of the lower fixed quota for energy consumption. This is partly
attributable to energy-saving measures and to a more efficient use and management of energy.

Direct and indirect energy consumption

Fiat Industrial Group worldwide (TJ)
2012 2011(1) 2010
Plants 59 63 63
Electricity 2,915 3,090 2,804
Natural gas 3,483 3,623 3,561
Other fuels 415 477 464
Other energy sources 1,039 1,197 1,132
Total energy consumption 7,852 8,387 7,961

GRI-G3.1
CNH’s overall performance throughout the year (in terms of energy consumption per production unit) was 21% less EN3, EN4, EN7, EN18
compared with 2009, while the reduction registered at Iveco was 31%. FPT Industrial’s energy consumption per produced Sustainability Plan
Our commitments on page 135
unit was -25% compared with 2009 for the small engines and transmission division, and -17% for the large engines division.
Due to the variety of production lines across the Group (vehicles, engines, components, etc.), cross-company normalization
of data is a complicated exercise. However, as of 2012 an aggregate performance indicator for Fiat Industrial Group was
identified. The 2012 result amounted to 0.1593 GJ per production hour.

(1)
The data for 2011 have been adjusted compared with those in 2011 Sustainability Report. 135
 Environmental Manufacturing
Dimension Processes

Energy consumption by source Total energy consumption from renewable sources

Fiat Industrial Group worldwide Fiat Industrial Group worldwide (%)

Total consumption 14.3

from renewable sources 12.4
14.3%
Direct consumption from
non-renewable sources 8.8
48.8%
Indirect consumption
from non-renewable
sources
36.9%

2010 2011 2012

Energy consumption per production unit

CNH Iveco
(GJ/hour of production) (GJ/hour of production)
0.173 0.223
Target reduction
0.145 0.140 2014 vs 2009 0.174
-15% 0.160 Target reduction
2014 vs 2009
-30%

2010 2011 2012 2010 2011 2012

FPT Industrial (small engines and transmissions) FPT Industrial (large engines)
(GJ/unit produced) (GJ/unit produced)
1.521 4.991
1.425 1.406 Target reduction 4.454 4.450
2014 vs 2009 Target reduction
-25% 2014 vs 2009
-17%

2010 2011 2012 2010 2011 2012

136
CO2 emissions
Fiat Industrial Group’s CO2 emissions amounted to 535 thousand tons (i.e., over 9% less than the previous year) as a result
of rationalized energy consumption and extensive use of renewable energy.
Direct and indirect CO2 emissions
Fiat Industrial Group worldwide (tons)
2012 2011(1) 2010
Plants 59 63 63
Direct emissions (scope 1) 217,269 229,360 223,292
Indirect emissions (scope 2) 317,667 370,402 378,502
Total CO2 emissions 534,936 599,762 601,794

The CO2 performance improvements per production unit compared to 2009 were: 28% for CNH; 43% for Iveco; 41%
for FPT Industrial’s small engines and transmission division; and 39% for large engines division. These significant results
-9% in total
were mainly attributable to the energy consumption reduction per unit values and to a broader use of renewable energy CO2 emissions
over 2011
CO2 emissions per production unit

CNH Iveco
(tons of CO2 /hour of production) (tons of CO2 /hour of production)

Environmental
dimension
0.013 0.016
0.011 Target reduction
0.010 2014 vs 2009
-15% Target reduction
0.011 2014 vs 2009
0.010 -35%

2010 2011 2012 2010 2011 2012

FPT Industrial (small engines and transmissions) FPT Industrial (large engines)
(tons of CO2 /unit produced) (tons of CO2 /unit produced)

0.325
0.274 Target reduction
0.142 2014 vs 2009
0.121 0.229 -27%
0.100
Target reduction
2014 vs 2009 GRI-G3.1
-30% EN7, EN16, EN18
Sustainability Plan
Our commitments on page 35
Glossary
Direct emissions, Indirect emissions

2010 2011 2012 2010 2011 2012

(1)
The data for 2011 have been adjusted compared with those in 2011 Sustainability Report. 137
 Environmental Manufacturing
Dimension Processes

sources, which reached 14% of the total energy consumed by the Group in 2012, exceeding the target
of 13% expected for 2012. The emission saving associated with the increased use of renewable energy
is equal to 77 thousand tons of CO2.

Participation in Emission Trading programs

Much of the energy used at Group plants comes from third-party power generation plants, or from the
national electricity grid.
The only plant subject to the European system of emission trading (EU-ETS) is the Iveco plant in Vysoke
Myto (Czech Republic). The energy generated in 2012 by the plant was approximately 84 thousand GJ,
allowing for a credit on the annual CO2 allowance. The 2008-2012 period registered an overall credit of
around 2,421 tons of CO2 compared to the assigned quotas. Taking into consideration the CRC Energy
Efficiency Scheme, i.e., the United Kingdom’s emission trading system, the only Group plant subject to
these guidelines is the CNH plant in Basildon, one of the most energy-consuming in Europe. In 2012,
after participating in the reporting and evaluation system (CRC – Performance League Table) and
subscribing to the Evidence Pack, the plant acquired, as per new CRC regulations, the credits required
to compensate for CO2 emission quotas, which it plans to reduce by implementing the ISO 50001
standard and through actions aiming at optimizing energy efficiency.

Brazil
Sustainable ENERGY
The energy sector is of crucial importance to the economy in Brazil, which is particularly rich in energy sources. Fiat Industrial
Group is rolling out numerous initiatives aimed at promoting the use of renewable energy and optimizing energy consumption.
The Iveco plant in Sete Lagoas manufactures its products using exclusively hydroelectric power. The use of renewable energy
resources has allowed the plant to prevent the release of more than 2,000 tons of CO2 into the atmosphere. The Brazilian
FPT Industrial plant derives 100% of its electrical energy from renewable sources. The plant has also reduced its overall energy
consumption by more than 10% thanks to the installation of LED lights, the intelligent management of equipment (power off), and
a solar thermal system.
As further proof of the Group’s commitment to optimizing energy consumption, the CNH and Iveco parts distribution center in
Sorocaba was awarded LEED Gold certification, an international recognition granted to ecofriendly buildings by the United States
Green Building Council, a non-profit organization. The center was designed to rationalize energy consumption and water usage,
and to promote the proper use of materials and the quality of the working environment; it was the first distribution center in Latin
America to achieve this certification. The building’s energy consumption was reduced through the use of large glass windows, which
let in the sunlight thus reducing electricity consumption by 40%, and a special roof covering: 4% is made of special translucent tiles
that filter light and repel heat, while the rest consists of white metal tiles filled with rock wool that reflect sunlight and improve cold/
GRI-G3.1
2.10, EN7, EN16, EN18 heat regulation. Even the consumption of water was rationalized through a rainwater collection system, which reuses the water
Sustainability Plan to irrigate the surrounding green areas, saving around 30% compared to traditional buildings. As far as construction materials are
Our commitments on page 35 concerned, almost 53% is either recycled or certified from sustainable sources.
Web
www.usgbc.org The project is not limited to the construction and management of the building; it also aims at developing and sustaining a green
Glossary culture among employees, encouraging them to respect the environment and use ecological vehicles.
Emission trading, ISO 50001, LED

138
 logistics Environmental
processes Dimension

Logistics processes
Fiat Industrial Group believes that the sustainability of its
logistics processes worldwide is fundamental to creating
value. In 2011, the Group published the Green Logistics
Principles to effectively coordinate its efforts towards
improvement in this area. These principles are intended
to coordinate the Group’s initiatives based on sustainable
behavior and to help the different sectors to operate
effectively, together with suppliers, to continuously monitor
indicators and meet targets.
The Group’s main improvement targets concern the
reduction of CO2 emissions associated with the handling
of components and goods, as well as minimizing the use of

Environmental
dimension
non-reusable packaging.
The Fiat Industrial Group’s approach is based on four paths
of action:
n increase in low-emission transport

n use of intermodal solutions

n optimization of transport capacity

n reduced use of packaging and protective materials.

An additional and crucial element in this approach is the

active involvement of suppliers, which is fundamental for
the effective application of sustainable logistics.
The Green Logistic Principles supplement and complete the
World Class Logistics (WCL) standards, which in turn are
based on the World Class Manufacturing (WCM) program.
These define logistics processes integrated both at plants
and in supplier network planning, meeting criteria for
safety, ergonomics, eco-compatibility and transport flow
optimization.
World Class Logistics creates lean processes both inside and GRI-G3.1
EN18, EN29
outside plants, involving all personnel in the improvement Sustainability Plan
process. With the active participation of all parties, stock Our commitments on pages 36-37
Glossary
is significantly reduced, production and production mix WCM
are balanced and logistical know-how is improved in both
plants and sectors. Another important part of WCL is the

139
 Environmental logistics
Dimension processes

systematic reduction of internal and external

handling, integrating the production and
distribution networks.
Through WCL, the Group shares and
circulates its best practices, tried and tested
at all plants, for example:
n milk runs, that allows goods to be collected

from neighboring suppliers’ plants in a sin-

gle journey, thus grouping the goods and
reducing the distance traveled
n supplier and customer relationship man-

agement, sharing and developing com-

mon projects (for example, new packaging
strategies)
n combined transport of cabs and tractors

on specialized vehicles.
Inbound flow management (i.e., transport of
components and materials to Group plants)
is either handled by external transport
providers engaged by the Group, or directly
managed by the material suppliers themselves.
The distribution of goods from plants to the
sales network (outbound) is carried out by
external transport providers.
Spare parts are managed by CNH and
Iveco Parts & Services, and their inbound
distribution (to warehouses and distribution
centers) is either handled by external providers engaged by Fiat Industrial Group or managed directly by the suppliers
themselves. Outbound transport (to dealers), on the other hand, is managed by specialized transport companies in the
case of CNH, and by external companies coordinated by a logistics operator for Iveco.
To develop a culture of sustainability among logistics suppliers, some will be invited to participate in the Carbon Disclosure
Project Supply Chain (see also page 235), a project that monitors selected suppliers’ CO2 emissions and promotes
initiatives to reduce these emissions.

GRI-G3.1 monitoring eco-performance in logistics processes

EN7, EN18, EN29
Sustainability Plan Since 2011, each Group sector has been monitoring CO2 emissions and the use of non-reusable packaging within Europe.
Our commitments on page 36 The launch of this initiative has provided a better knowledge of processes and enabled the setting of improvement targets,
carried out in 2012, which would otherwise have been difficult to quantify.
Overall, in 2012, CO2 emissions relating to logistics processes managed directly by Fiat Industrial Group in Europe were
130,608 tons.

140
Anticipating one of the goals envisaged by the Sustainability Plan, in 2012, CNH extended the monitoring of CO2
emissions associated with transport to all its plants worldwide, totaling 482,890 tons of CO2, with a CO2 reduction of
6,383 tons. In 2013, CNH will extend the monitoring of this indicator to air transport, while Iveco and FPT Industrial will
aim to meet targets sooner than expected and extend the monitoring of CO2 emissions worldwide.
For the first time, Fiat Industrial Group has set the reduction target for inbound and outbound CO2 emissions in Europe,
which will be 1,710 tons for 2013.

CO2 emissions in logistic processes(1)

Fiat Industrial Group Europe (thousands of tons)
2012 2011
Inbound 75.5 65.6
Outbound 47.2 54.8
Spare Parts 7.9 5.2
Total 130.6 125.6

Special attention is paid to reducing the use of disposable packaging and protective materials, so as to maintain corporate
standards and meet quality requirements. Where this is not possible, Fiat Industrial Group seeks the best solutions to
ensure the recovery of materials.
In 2012, the Group continued to monitor the disposal of cardboard packaging in European manufacturing plants, and, for

Environmental
FPT Industrial, the disposal of wood packaging as well. In 2012, Fiat Industrial Group’s average consumption of cardboard

dimension
was 7.34 kilos per unit produced.

GRI-G3.1
EN7, EN17, EN18, EN29
Sustainability Plan
Our commitments on pages 36-37
Glossary
GHG Protocol

(1)
Calculation of the CO2 based on the criteria in the Greenhouse Gas Protocol (GHG Protocol), revised edition, for road transport and the IFEU Heidelberg environmental
method for sea and rail transport. 141
 Environmental logistics
Dimension processes

The voice of our stakeholders

In Curitiba (Brazil), a recycled plastic pallet was developed
to replace the wooden ones in use, hence eliminating wood
consumption while recycling many tons of plastic. Another benefit
derives from the significantly longer service life of these innovative
pallets: one thousand use cycles against 15 for wooden pallets.

Giuliano Marchiani, EHS Latin America and João Kovalchuk,

Manufacturing Quality Coordinator in Curitiba:
“The initiative to implement these pallets started with the
ideas of safety, quality, cost and reliability – and the focus of an
environmental, socially-friendly development was important for
a successful product. We can also highlight the very positive
feedback of the operators: the comfort, safety – there are no
splinters or loose nails – and the ease of handling and cleanliness
were celebrated. It was an environmental project from the
beginning, but other sectors have participated (such as finance,
logistics, engineering, import/export): in a sense, it was a 100%
sustainable project”.

In 2012, the optimization of packaging for shipments to Latin America continued, with a further reduction in the use of
wood crates (-15% compared with 2011, from 12.7 to 10.8 kilos of wood packaging per m3 shipped) and a reduction of
approximately 420 tons of wood shipped.
Among the initiatives implemented by Group sectors, in 2012 CNH continued to monitor the use of cardboard and wood
for grouping the materials sent by ship to plants in North and South America, within the scope of the World Material Flow
(WMF) program. For 2013, a reduction target of 1% was set compared to previous shipping methods.
Furthermore, Iveco maintains its commitment to the progressive reduction of wood packaging for shipping worldwide
from Italy, favoring metal crates or specially-equipped containers.

Increase in low-emission transport

The Group contributes to cutting CO2 emissions associated with the transportation of components and goods by
continuing to promote the use of low-emission road vehicles. In 2012, contractual clauses were gradually introduced by
all Group sectors, obliging all external transport providers to utilize a fleet in which at least 70% of vehicles are compliant
with Euro IV standards or higher.
GRI-G3.1 The monitoring of vehicle emission standards continued during 2012 on a significant sample of suppliers of materials and
EN7, EN18, EN29
Sustainability Plan components, enabling the same emission standards already applied to directly managed transportation to be extended
Our commitments on pages 36-37 to external providers.
Glossary
EPA, Euro VI For all CNH and Iveco outbound transport in Europe, 94% of vehicles used in 2012 conformed to Euro III standard or higher.
In North America, CNH continued to involve its logistics partners in the SmartWay Transport program, promoted by
the Environmental Protection Agency (EPA). Participation in the program is one of the factors considered in evaluating

142
potential service providers. In 2012, 90% of service providers (rail and road transport) participated in the Smart Way
program, a 10% increase over 2011.

Use of Intermodal Solutions

The inbound and outbound transport of materials can generate significant volumes of road transport, depending on
geography, infrastructure and production quantities. Fiat Industrial Group has always been committed to promoting the
use of alternative methods of transport by using intermodal solutions, with the aim of reducing traffic congestion and so
lowering CO2 emissions. The term intermodal refers to transportation that employs various solutions for the movement
of goods from source to destination, looking at the entire process and, therefore, from the perspective of an integrated
logistics chain.
CNH launched a new intermodal rail route for the transportation of tractor front and rear axles produced at the plant in
Modena (Italy) for assembly at the plant in Basildon (UK), achieving a CO2 reduction of 415 tons.
In addition, a combined inbound and outbound rail service was launched on 12 March 2012 at the CNH plant in Lecce
(Italy); the twice weekly service began in July 2012, with a CO2 reduction of 793 tons.
On the other hand, Iveco has redefined certain distribution routes from its plants in Spain to the Benelux countries and
Germany by increasing transportation by sea and achieved a CO2 reduction of approximately 350 tons.
FPT Industrial, in turn, has organized for 2013, with certain selected suppliers, the launch of its first regular inbound
transportation by rail, setting itself a CO2 emissions reduction target of 410 tons. Over the next few years, the use of rail

Environmental
dimension
transport for inbound products to FPT Industrial plants will be expanded.

GRI-G3.1
EN7, EN18, EN27, EN29
Sustainability Plan
Our commitments on pages 36-37

143
 Environmental logistics
Dimension processes

Breakdown of inbound transport Breakdown of outbound(1) transport

Fiat Industrial Group Europe Fiat Industrial Group Europe

Road Rail
85% 1%

Road
92% Rail
7% Sea
14%

Sea
1%

Highlights
The Freccia gialla
The Freccia Gialla (Yellow Arrow, like the color
of the New Holland and Case Construction
Equipment products it carries), is the rail connection
between the CNH plant in Lecce (Italy) and the
intermodal transport junction at Fiorenzuola, near
Piacenza in Italy. This innovative logistics solution is
unique within CNH worldwide.
The 550 meter-long train is made up of 24 wagons,
and transports materials and parts produced by
suppliers in Northern Italy and Europe to feed plant
production lines. It then transports backhoe loaders,
wheeled loaders and telehandlers to markets across
the world. The choice of Fiorenzuola is the result of
a careful evaluation of strategic locations to facilitate
access by suppliers, mainly located in Northern Italy
and Europe. Unloading and loading takes less than
ten hours, and the maximum number of vehicles
loaded was 50.
At this rate, the expectation is to reduce CO2
emissions by 1,350 tons over a year, compared to
road transport.

144 (1)
Percentages are based on the principal mode of transport used for each vehicle, including CNH and Iveco in the scope.
 Environmental
dimension
Optimization of transport capacity
Fiat Industrial Group is committed to optimizing transport capacity to reduce costs and the environmental impact.
Streamlined Delivery is one of the projects for realizing this goal, by which the collection of materials destined for the Group
plants is outsourced to a pool of logistics providers, in place of delivery through transportation by individual suppliers.
The Streamlined Delivery project has reached a coverage of 82% for CNH and 80% for Iveco (in terms of revenues). In
2011 the project was also launched by FPT Industrial, reaching a coverage of 25% in 2012; the goal for 2013 is to reach 28%
of total costs for transporting goods.
A new SAP management system that covers the entire WMF administrative and logistics process was developed by CNH
GRI-G3.1
and Iveco, enabling precise monitoring and optimization of shipments for the various manufacturing plants. EN7, EN18, EN27, EN29
Currently, the new system has been implemented in CNH’s plants in North and South America and in Iveco’s distribution Sustainability Plan
Our commitments on page 36
hubs in Italy and China.
Moreover in 2012 CNH continued the optimization of container capacity through its World Material Flow program,
thanks to special solutions (i.e., double deck loading) and the operations of the logistics provider, leading to a CO2
reduction of 200 tons.

145
 Environmental NON-MANUFACTURING
Dimension PROCESSES

NON-MANUFACTURING
PROCESSES
Fiat Industrial Group is dedicated to reducing the environmental impact not only of its manufacturing processes, but also of
all those activities not directly related to its field area of business, such as the daily commute, business trips, IT infrastructure
and dealer network operations. The Group’s goal is to develop and implement a series of initiatives to improve environmental
performance, and in particular, to reduce emissions and rationalize energy consumption. Following these principles, a project
was launched in 2012 to extend ISO 14001 certification to Italian non-manufacturing facilities (see also page 114).

146
Internal mobility
The Group is committed to improving the management of employee commuting, encouraging optimal fruition of the
transport systems in place and incentivizing mobility solutions with a low environmental impact. These mobility management
measures are focused on ensuring that employee mobility needs are met whilst reducing energy consumption and social
and environmental costs.
The Group companies are in the process of developing collaborative sustainable mobility measures, taking advantage of
all available synergies. These projects are devised in partnership with local authorities and public transport companies.
For each site, a Mobility Manager is appointed within the organization, tasked with implementing solutions to improve
sustainable mobility, making use of the support provided by the internal communications team and the company Mobility
Manager.
The Easygo project encompasses all of the initiatives related to mobility in the Turin area. It was launched in 2011 at the
Mirafiori facility. Extending across 2.6 square kilometers, this site employs around 18 thousand individuals, and welcomes
more than four thousand visitors daily. In 2012, the project was extended to the Iveco and FPT Industrial facilities in the
north of Turin, which cover an area of around 1.2 square kilometers. These facilities employ more than five thousand
individuals and receive hundreds of visitors every day.
The project covers several areas:
n collaboration with local public transport organizations to optimize services

n implementation of a car pooling scheme, which encourages employees to share vehicles with colleagues

Environmental
dimension
n redevelopment of parkland for bicycles and motorcycles

n shuttle services in addition to regular public transport.

All information relating to the means and services available for efficient commuting to Group facilities is available on a
dedicated website. This tool also allows employees to make suggestions with regard to improving these services. Over
the course of 2013, the website will be further enhanced with new sections containing tools, news and useful information.
As part of the Easygo project, and in line with the results of the survey conducted in 2011, various initiatives were launched
at the Mirafiori facility in Turin (Italy), where some CNH employees work. Moreover, in 2012, improvements were made
to cycle tracks both inside and outside the Mirafiori complex and to parking/stopping zones, traffic lights and pedestrian
crossings. Furthermore, a survey was conducted to evaluate the effectiveness of the measures put in place; the results
allow for improvement measures to be planned for the coming years.
At the Iveco and FPT Industrial facilities in Turin, three new shuttle bus services were set up. Two lines connect the main
entrance of the facility with major public transport lines, while the third is dedicated to travel around the perimeter
of the industrial complex. This follows an analysis carried out in 2011, which showed that employees travel an average of
15.2 kilometers to get to and from the site, spending an average of 32 minutes for each journey. The most commonly used
mode of transport was the car. The results of a questionnaire completed by more than 350 employees showed the level
of satisfaction with this service to be medium-high. The measures implemented in 2012 at the Iveco and FPT Industrial
facilities led to a reduction in CO2 emissions of around 167 tons.
GRI-G3.1
The car pooling service is also available at the Iveco plants in Bolzano, Brescia, Piacenza and Suzzara (Italy), all of which EN7, EN18, EN29
subscribed to the Easygo project. Sustainability Plan
Our commitments on page 37
In addition to the activities which form part of the Easygo project, FPT Industrial also extended commuter mapping to all
Glossary
employees in Italy. This study garnered responses from 35% of the total employees, with 685 questionnaires completed Car pooling, ISO 14001
and 198 suggestions received. The analysis of these results will assist in the development of Piani di Spostamento Casa-
Lavoro - PSCL (Commuting Plans) which will be applied across Italy.

147
 Environmental NON-MANUFACTURING
Dimension PROCESSES

A range of other sustainable mobility initiatives were implemented in Italy in 2012; at the CNH plants in Modena and
S. Matteo a survey was conducted through a questionnaire which targeted all employees, in order to map their commuting
habits. The survey had a 77% response rate with 1,130 questionnaires completed. The analysis of these responses provided
important indicators for future sustainability measures to be introduced in the Modena area (car pooling, public transport
agreements, cycle paths).
As part of this, a pilot project was launched in 2012, on a voluntary basis, for a car pooling scheme, in which 30 employees
were involved. After the first month of the trial, the initiative is being extended, and a web platform has been set up to
allow employees to find colleagues who are interested in sharing transport and/or splitting the costs of traveling to and
from the workplace. It was estimated that if all those who made themselves available for the car pooling scheme actually
took part, a saving of 680 tons of CO2 could be made every year.
In 2013, various new initiatives will be implemented, including:
n the introduction of company noticeboards dedicated to sustainable mobility, displaying information on improving

commuting activities (reduction in travel time, reduction in travel costs, public transport coordination, cycle paths and
GRI-G3.1 useful telephone numbers)
EN7, EN18, EN29
n an agreement with the Agenzia per la Mobilità di Modena aMo (Modena Mobility Agency) to obtain subsidies on public
Sustainability Plan
Our commitments on page 37 transport tickets and to improve the quality of the service.
Glossary
Car pooling The principal benefits expected from sustainable mobility projects include not only a reduction in environmental impact,
but also improved conditions for employees resulting from less commuting time and costs, reduced risk of accidents,
lower stress and, finally, more social interaction among co-workers.

148
 Highlights
Sustainable mobility in India

The initiative of sustainable mobility carried out at the CNH plant located at Pithampur (India), which
manufactures Case compactors and backhoe loaders and is a market leader in these segments, concerns a
transportation service for employees. The company provides nine buses to deliver a daily service from the city
of Indore to Pithampur (about 25 kilometers away), which follows different routes to cover the most strategic
places. In addition to environmental considerations, the decision to start this service is essentially linked to the
need to provide safe means of transport to its 450 employees.

Business travel and teleworking

Since 2011, Fiat Industrial Group has been monitoring CO2 emissions deriving from work-related plane journeys by
employees directly managed by the Headquarters. In 2012, emissions from plane journeys totaled more than 12 thousand
tons of CO2, which is in line with last year’s figure.
The CO2 emissions recorded in 2012 are the result of 23,816 business trips taken over the year, of which 72% were

Environmental
dimension
medium haul(1). This value was calculated following the indications set out by the Defra/GHG Protocol methodology and
was certified by Atmosfair, a climate change organization with a particular focus on the environmental impact of travel.
As to teleworking, in order to reduce employee travel and related environmental impact, it is estimated that audio
conferencing and instant messaging have reached more than 50 thousand users, with about 23 thousand conference calls
per day and an average of 161 thousand instant messaging sessions daily.
Since 2011, the Group has been investing in the phase-in of video conference facilities, and in 2012, it developed the high
quality TelePresence videoconferencing system. In total, 16 specially-equipped rooms are available, and during the year,
these systems were used for more than 1,170 hours.

GREEN ICT
In compliance with its Environmental Guidelines, the Group is committed to minimizing the environmental impact of its
ICT activities, and pursues this goal by using energy-efficient products and solutions.
In line with 2011, the Fiat Industrial Group is implementing the Green ICT plan to reduce energy consumption and CO2
emissions. In 2012, approx. 5,450 personal computers and 1,580 technical workstations in Group offices were replaced with
new equipment featuring more efficient power supply units optimizing the use of electricity. This solution allowed for 155 tons
of CO2 emissions saved compared with 2008(2). The initiative will continue in 2013 in line with the targets of the Green ICT plan.
In 2012, approx. 7,300 monitors were replaced with new EnergyStar and EPEAT Silver/Gold rated units. They ensure
GRI-G3.1
compliance with environmental requirements concerning product energy consumption and efficiency, the use of EN7, EN18
hazardous substances, recycling, packaging and low-impact manufacturing. In particular, these new monitors that meet the Sustainability Plan
Our commitments on page 37
most stringent health, safety and environmental standards do not contain mercury, which also allows for environmentally
Web
friendly recycling and disposal. www.atmosfair.de
The personal computers and monitors were purchased within the framework of a contract awarded in 2010 after a call Glossary
GHG Protocol
for tenders setting, for the first time ever, specific requirements regarding the environment and green ICT, particularly: a

(1)
Here, medium haul refers to trips from 500 to 1,600 kilometers.
(2)
The conversion factor used is: 1 kWh = 0.52 kilos of CO2 (source: Carbon Trust, Conversion Factors, 2011). 149
 Environmental NON-MANUFACTURING
Dimension PROCESSES

statement assuring the availability of environmental certifications for all hardware supplied; indications of the steps taken
to manage environmental risk; reduction of CO2 emissions; improvement of energy efficiency; and finally a commitment to
eliminate toxic chemicals such as brominated flame retardants (BFR) and polyvinyl chloride (PVC) from hardware supplied.
The Group rents its PCs, technical workstations and monitors; once they are no longer usable, the goods are returned
to the rental company, which handles the following life cycle stages. Forthcoming ICT supply contract tenders will include
sustainability targets and specifications that will be used to assess suppliers.
Lastly, as part of the project to optimize printing systems over the period 2009-2012, another 180 new, more energy-
efficient, multi-function printers were installed within the Group. The energy saved by this new-generation equipment can
reach 35%(1) in stand by mode compared with the previous generation, while ensuring the same performance. Since 2009,
GRI-G3.1 a total of 1,030 units have been replaced worldwide, with a reduction in annual consumption of more than 1,870 MWh
EN7, EN18
Web
(equivalent to approx. 975 tons of CO2 saved). The installation of additional units is planned for 2013.
www.energystar.gov As regards the Data Center area, which includes the computer systems that host applications and IT services, activities to
www.epeat.net
reduce, consolidate and virtualize servers continued in order to optimize energy consumption. In particular, around 130
physical servers were eliminated and 142 virtual servers created, generating a reduction in annual consumption of 2,320
MWh over 2010 (equivalent to approx. 1,056 tons of CO2 saved).

(1)
Source: Xerox Italia.

150
Reducing dealer environmental impact
Fiat Industrial Group actively engages the dealer network and service centers in this commitment to reduce the
environmental impact of its activities. With this in mind, the Iveco New Dealer Identity initiative was launched to
modernize dealer premises, taking potential environmental impacts into consideration. The materials and components
used in this process are chosen to ensure longer life and reduced maintenance and to provide considerable energy savings,
largely through the use of LED lighting. This technology means that as much as 55% less electrical energy is consumed in
comparison with traditional solutions. Since the project was launched, 140 dealer locations have been wholly or partly
modernized, and by the end of 2013, an additional forty sites will have been covered by this initiative, bringing the total
number of renovated premises to 180.

Environmental
dimension
GRI-G3.1
EN7
Sustainability Plan
Our commitments on page 38
Glossary
LED

151
SOCIAL DIMENSION

154 Our people

206 Dealer and service network
214 Customers
224 Product safety
228 Suppliers
240 Local communities
 OUR PEOPLE
Talent is the lifeblood of any organization, and in fact Fiat Industrial Group views
employees as its top resource. The Group strives to provide its employees
with growth opportunities that continuously capitalize on diverse experiences,
backgrounds and skills.

Employees by region (1)

Fiat Industrial Group worldwide (no.)

NORTH AMERICA EUROPE

11,500 42,152

LATIN AMERICA ASIA

9,897 3,732

(1)
Rest of the world: 976

154
 OUR PEOPLE SOCIAL
DIMENSION

Employees in numbers
As at 31 December 2012, Fiat Industrial Group had 68,257 employees, an increase of 1,259 over the 66,998 figure at
year-end 2011. This increase is partially attributable to the difference between new hires (approx. 8,100) and departures
(approx. 7,150) during the year. The change in scope of operations accounted for an increase of approximately 300
employees, of whom approximately 170 related to the consolidation – from 1 January 2012 – of Iveco dealers acquired
in France during 2011. Additional increases over year-end 2011 were mainly due to newly hired white-collar employees,
primarily in Research and Development (600), as well as new hires in India and China and in the brand/commercial
organization. An increase was also seen in CNH manufacturing, in particular in the agricultural business, both in Europe
and in North America. These increases were partially offset by a decrease in Iveco manufacturing employees both in Latin
America (relating to temporary workers and mainly associated with weaker market conditions) and in Europe, due to the
restructuring plan announced in May.

Employees by region and category(1)

Fiat Industrial Group worldwide (no.)
2012 Total Hourly Salaried Professional Manager
Europe 42,152 27,517 6,706 7,307 622
of which Italy 18,574 11,878 2,286 3,973 437
North America 11,500 6,661 1,541 3,091 207
Latin America 9,897 7,051 1,571 1,224 51
Asia 3,732 2,009 1,124 583 16
Rest of the world 976 464 279 225 8
World 68,257 43,702 11,221 12,430 904

dimension
Social
GRI-G3.1
2.5, EC7, LA1, LA13
Sustainability Plan
Our commitments on pages 38-42

(1)
Employees are divided into four main categories: hourly, salaried, professional and manager. Professional encompasses all individuals that perform specialized
and managerial roles (including “professional” and “professional expert” under the Fiat Industrial S.p.A. classification system). Manager refers to individuals in senior
management roles (including those identified as “professional masters”, “professional seniors” and “executives” under the Fiat Industrial S.p.A. classification system). 155
 Social our people
Dimension

Employees by region Employees by sector

Fiat Industrial Group worldwide Fiat Industrial Group worldwide

North America Latin America

16.9% 14.5% CNH
Asia 49.6%
5.5%
Other businesses(1)
0.1%
Rest of the world Iveco
1.4% FPT Industrial 38.5%
Europe 11.8%
61.7%

Employees by category(2) Employees by length of service

Fiat Industrial Group worldwide Fiat Industrial Group worldwide

Manager Over 30 years

1.3% 8.4%

Up to 5 years
Professional 43.0%
21 to 30 years
18.2% 12.8%
Hourly
64.0%
Salaried
16.5% 11 to 20 years 6 to 10 years
20.8% 15.0%

Employees by age Employees by level of education(3)

Fiat Industrial Group worldwide Fiat Industrial Group worldwide

University degree or
Over 50 years Up to 30 years equivalent
21.6% 21.3% 20.6%

Elementary/middle
school
37.5%

41 to 50 years 31 to 40 years High school

26.1% 31.0% 41.9%

(1)
Other businesses includes holding and other companies.
(2)
Employees are divided into four main categories: hourly, salaried, professional and manager. Professional encompasses all individuals that perform specialized and
managerial roles (including “professional” and “professional expert” under the Fiat Industrial S.p.A. classification system). Manager refers to individuals in senior
management roles (including those identified as “professional masters”, “professional seniors” and “executives” under the Fiat Industrial S.p.A. classification system).
156 (3)
For level of education the population mapped corresponded to 80% of Group workforce.
A majority of total personnel (62%) is employed in
Europe – where the workforce is concentrated in Italy
(27% of the total) and France (9% of the total) – while
17% and 14% of personnel are based in North America
and Latin America respectively. CNH is the company
with the highest percentage of employees, with 49.6%
of the Group’s total headcount, followed by Iveco with
38.5%. Worldwide, the highest concentration of Group
employees is in the 31 to 40 age group, and 43% of the
workforce has been employed for five years or less. In
2012, the number of employees in the 31 to 40 age group
grew by more than 3% in comparison to 2011, whilst all
other age groups (except the thirty and under age group)
remained stable.
Consequently, the percentage of total employees with a
length of service from six to twenty years increased, while
other length-of-service groups remained stable.
A total of 62% of Group employees(1) have a medium/
high level of education (20% hold a university degree
or equivalent and 42% have a high school diploma).
The remaining 38% completed junior high school/elementary
school. Although Fiat Industrial Group has not established
a formal policy to ensure the hiring of nationals or to favor
individuals from communities in its areas of operation,
nonetheless, where possible, preference is given to national
residents. This ensures a stronger tie between the business

dimension
and the community, enabling a better understanding of local

Social
needs and the development of local human capital.
In 2010, Fiat Industrial Group launched an analysis of
managers in 25 different countries which showed that a significant percentage of managers in each of the Group’s
main regions of operation are of local nationality. Specifically, over the course of 2012, the number of managers pursuing
their professional career outside their native country increased, promoting professional development and the diffusion
of a common culture across the company. In some areas, this increase in international mobility within the Group led to
a reduction, but only in percentage terms, in managers working in their native country compared with the previous year.

Managers of local nationality by region

Fiat Industrial Group worldwide (%)
2012 2011 2010
Europe 80 83 79
North America 91 94 92
Latin America 57 70 67
Asia 42 50 46
Rest of the world 40 57 33

(1)
The population mapped corresponded to 80% of Fiat Industrial Group workforce. 157
 Social our people
Dimension

Fixed-term and unlimited-term contracts A total of 96% of the Group’s current employment contracts
Fiat Industrial Group worldwide
are unlimited term and 99% are full time. Fixed-term contracts
3.9 4.3 3.7
represent approximately 4% of all contracts. Throughout the year,
96.1 95.7 96.3 more than 1,200 contracts were changed to unlimited-term; of
these contract changes, 8% refer to women. Around 1% of the
Group workforce is employed par t-time, of which approximately
77% are women. Agency contracts as at 31 December 2012
numbered around 3,400; this kind of contract is stipulated or
renewed in relation to specific production requirements and is
therefore subject to variation according to business needs.

2010 2011 2012

Unlimited term Fixed term

Employees by contract and employment type

Fiat Industrial Group worldwide (no.)
Unlimited-term Fixed-term
Total Part-time Full-time Part-time Full-time
Europe 42,152 420 40,148 - 1,584
North America 11,500 4 11,440 - 56
Latin America 9,897 2 9,018 - 877
Asia 3,732 - 3,731 - 1
Rest of the world 976 - 967 - 9
World 68,257 426 65,304 - 2,527

Turnover
During 2012 approximately 8,100 people were hired. Approximately 70% of new hires were employed under unlimited
term contracts. In the same period, approximately 7,150 people left the Group. Of this figure, 5% were collective
redundancies following the reorganization or rationalization of operations, including some initiatives launched in previous
years. Wherever possible, these situations were managed through the use of temporary social welfare mechanisms
provided for by law and with the establishment of social plans aimed at minimizing the impact on employees, in collaboration
with trade unions. Specifically, 44% of the collective redundancies mentioned were managed through schemes concerning
the retirement/early retirement of affected employees, 33% were voluntary exits with incentives, and the remainder
regarded termination of contract by the company, through which employees are provided with a severance package and
other supporting measures in accordance with the terms agreed with the unions/employee representatives. Also of note:
GRI-G3.1
LA2 in 2012, more than 500 employees from sites/plants affected by downsizing or restructuring projects, including those
launched in previous years, were offered and accepted transfer on a permanent basis to other locations, thus significantly
reducing the potential impact of collective dismissals. Fiat Industrial Group also provides opportunities for transfers
between sectors and countries; opportunities for transfer to Fiat Group also exist. In 2012, employees passing from one
Group to the other, and Fiat Industrial Group employees changing country or sector or changing company under a given
sector, totaled over 1,100 people.

158
Employee turnover
Fiat Industrial Group worldwide (no.)
2012
Employees at 31/12/2011 66,998
New Hires 8,100
Departures (7,159)
∆ scope of operation 318
Employees at 31/12/2012 68,257

With a view to promoting mobility between sectors and Group companies, an Internal Job Posting program is active
in the various Group sectors for salaried employees and professionals.
Over the course of 2012, the program covered 2,462 positions (1,759 in 2011), and 4,747 internal candidacies (3,964 in
2011) were received across the world, with extension by all Group companies to new countries.
Within CNH, Job Posting was extended to Switzerland, Australia, Russia, Ukraine, Turkey, Uzbekistan and all European
nations with the addition, in Europe, of the possibility for employees to respond to job postings outside of their own
country.
In CNH, in 2012, the program involved a total of 1,804 positions, and 2,736 internal candidacies were received across the
world. Within Iveco, the program was extended to Austria, Belgium, Denmark, Italy, the Netherlands, Norway, the Czech
Republic, Spain and Sweden, for a total of 626 positions, and 1,958 internal candidacies were received across the world.
Within FPT Industrial, it was extended to France and Argentina for a total of 32 positions, and 53 internal candidacies
were received across the world.

dimension
Social
159
 Social our people
Dimension

Management and development

One of Fiat Industrial Group’s key challenges is the need to grow and adapt to a constantly changing environment.
The Group realizes that the nature of today’s socioeconomic context calls for leaders with the ability to evolve. A
solid people management process is the key to success, as it includes employees in the company’s business goals, takes
advantage of employee talent and fuels workforce motivation.
Fiat Industrial Group is committed to supporting its employees with training initiatives and recognizing and rewarding their
achievements and contribution to business results.
In this manner, the Group not only gauges itself against today’s expected levels of global competitiveness, but also gains
insight into potential improvements and succession plans that are essential for the future.

Performance AND leadership management

Five key principles underpin the Group’s approach to the management and development of human capital:
n meritocracy – as a system that rewards excellence

n leadership – as a key driver in managing change and people

n competition – as a factor to be embraced and encouraged

n best-in-class performance – as a core benchmark

n accountability – delivering on promises.

These principles are embodied in the Performance & Leadership Management (PLM) appraisal system, adopted worldwide
to assess Group employees (managers, professional and salaried). It is one of the key processes used by Fiat Industrial
Group in the management and development of human resources. Through PLM, specific targets are set to help guide and
assess employees based on their results, attitude and behavior.

GRI-G3.1
LA12
Sustainability Plan
Our commitments on page 38

160
As part of the program, at the beginning of each year, managers sit down and discuss individual targets with each team
member. Then, at year-end, individuals are evaluated on performance (i.e., achievement of business targets) and leadership
(i.e., the ability to lead change, work as part of a team and manage people). These two dimensions – performance and
leadership – are plotted on a nine-square grid, which provides a brief assessment of the employee’s results. Consistency in
the evaluation process is ensured by comparison with the rating of other employees in the same category/role. Calibrations
within an expected distribution curve reduce the risk of inequity and align appraisal outcomes through defined criteria.
The final results are discussed in a meeting between the manager and the employee, during which an open dialogue on
areas identified for improvement contributes to validating the employee’s performance and strengthening their bond
with the organization. Upon completion of the process, employees can access their evaluation online, enter details on
their professional aspirations and request specific training to address identified areas of improvement through a variety of
actions (such as coaching, exposure to senior management, etc.).
This unique skills-mapping and appraisal process, which is the basis for variable compensation, is supported by information
systems that enable managers to constantly access the up-to-date information on the people within their organizational Performance
unit, as well as those only indirectly in their reporting line. In this way, the individual performance of each employee is and leadership
accessible and can be examined by senior management within the organizational structure. of 17,205
During 2012, performance and leadership mapping was carried out for 17,205 employees, of whom 3,410 were women, employees
including all managers and professionals and 40% of salaried employees. assessed using PLM
The number of salaried employees evaluated has increased from 36% in 2011 to 40% in 2012. The trend is set to continue,
contingent on market and organizational developments.
Fiat Industrial Group’s Chairman firmly believes that an organization’s success is based on its resources and, for this
reason, spent a day analyzing the results of the PLM process, focusing on senior managers. This analysis led to concrete
measures in terms of individual development which, in combination with the evolution of the business, led to significant
organizational changes. This process serves as the basis for all personnel-related management decisions and is a fundamental
element in Talent Management and Succession Planning, which together have resulted in key positions being largely filled
by internal candidates. In addition to the PLM evaluation process, other performance appraisal processes are in place for
individual performance-related compensation around the world. In 2012 other individual performance appraisal systems

dimension
were applied to 4,377 men and 676 women for a total of 5,053 employees (of which 86% were hourly).

Social
The voice of our stakeholders
A young new hire shares his impressions on his work experience at CNH.

Andrew Plovanich, Human Resources Representative, CNH Burr Ridge (USA):

“[…] I served as an HR intern (College Relations) at CNH during the summer and winter
of 2011. After graduating from the University of Minnesota, I started at CNH as an HR
Representative to support the Construction Equipment Product Development Team, and am
currently filling many open positions as well as working on recruiting, PLM and promotions for
the team. I enjoy the family aspect of working here at CNH. I think that CNH is a big company
with the feel of a small one, never treating anyone like a number“.

161
 Social our people
Dimension

Talent Management AND Succession Planning

Fiat Industrial Group operates in dynamic, highly competitive industries where success is achieved by ensuring the presence
of talented individuals in the organization and by appointing the right people to key positions.
These objectives form the basis of the Talent Management program, which identifies the most talented employees and
fast tracks their development. The selected individuals are offered professional opportunities that allow them to gain
experience in other geographic or business areas and enable the Group to develop effective succession plans that give
priority to internal candidates.
The process is conducted in a uniform manner for all countries, business units and levels of hierarchy group-wide.
Key individuals, selected on the basis of their professional profile (in terms of performance and leadership) and potential
for growth in positions of greater responsibility, are evaluated through a process that directly involves management, from
the immediate supervisor to senior management.
In 2012, the first Talent Review following the demerger from Fiat Group was held. Following the evaluation of all managers
and professionals, the reviews were performed for employees, across ten professional families.
The program focuses on ensuring that all key leaders are developing both a short- and long-term succession plan. Through
this process, attention is focused on less experienced talented individuals who are not yet widely known within the
organization, but who merit investment as potential leaders for the future. The Chairman, together with the heads of
each company and the various central corporate functions, dedicated one full day to talent management. Various issues
were addressed including the assignment of key roles, the analysis of talents and initiatives to support their development
and international/cross-functional career plans.
Through guidance and a broader range of career development opportunities, employees have the power to render work
organization smoother, reach above and beyond expectations and create strong teams with co-workers.

Highlights
HR-related awards for CNH Polska
Investor in Human Capital is a program that aims to constantly increase the level of human resources management. A comprehensive
research and certification project, it verifies efficiency sources and barriers for employees of an organization, providing precise
development guidelines and proposing specific follow-up actions.
CNH Polska has been twice named investor in human capital, in 2010 and in 2012.
The program was launched on the market 12 years ago, and during this period over 1,100 companies have been audited.
The benefits of the program are:
n opportunity to develop the CNH Polska brand as a desired employer and investor in human capital

GRI-G3.1 n support of recruitment activities for the company

2.10, 4.5, EC5, LA12
n verification of standards of human resources management through external audits
Sustainability Plan
Our commitments on pages 38-39 n opportunity to diagnose company’s strengths and areas for development in terms of HR activities
Glossary
n support for the HR department through a comprehensive tool/recommendation report
Audit
n building of internal and external employee branding.

162
In 2011, the Long Term Incentive Program, designed to ensure the involvement and
retention of individuals who are key to the Group’s continued development, was defined
and delivered to 200 CNH top managers worldwide, and in 2012, the extension of
the plan to key talent in companies besides CNH was approved. With the recent
reorganization and the pending merger of Fiat Industrial with CNH in 2013, the plan will
be realigned to meet the new organizational needs of the combined companies.

Local Minimum Wage

In many countries, minimum wage levels are established by law and, in some cases, there
are also variations based on Region/State or other criteria. Where no specific law exists,
a minimum wage is often established by collective bargaining agreements between
employer associations and trade union representatives. This is the case in Italy, Germany
and Belgium, for example, where pay and employment conditions are negotiated at the
regional or national level, with the possibility of further agreements on their application
or supplementary terms and conditions at company level. Lastly, minimum wage levels
are also established on the basis of specific economic, social and political circumstances
and, therefore, do not allow for crossborder comparisons.
In order to evaluate the adequacy of entry-level salaries in each country, in 2012,
Fiat Industrial Group analyzed countries representing 98% of its employees. In all countries,
Fiat Industrial Group entry-level salaries(1) were at or above the statutory minimum or non-
company collective labor agreements as can be seen in the graph below.

Comparison between entry-level salary and minimum wage 294

Fiat Industrial Group worldwide (minimum wage = 100)

dimension
Social
193 194
181
156
137 137
120 125
111 112 115
100 100 100 100 100 100 100 103 105 Minimum wage
in each country
100
United Kingdom

Poland

Venezuela

Argentina
Australia

Denmark

Germany

India

Italy

Portugal

Russia

Spain

Czech Republic

Canada

France

Austria

China

Belgium

Brazil

USA

Turkey

(1)
In accordance with the GRI-G.3 guidelines, entry-level salary is defined as the minimum compensation paid to a full-time employee hired at the lowest pay scale/
employee grade, on the basis of company policy or agreements between the company and trade unions. For each country, results are based on the sector with the lowest
entry-level salary. Figures reported are as at 31 October 2012. 163
 Social our people
Dimension

Employee benefits
Benefits provide employees with a value that goes beyond their salary and cash incentives, and can be a meaningful part
of the total reward package they receive. For this reason Fiat Industrial Group offers a competitive range of benefits that,
as a general rule, are available to all employees who work full time. Additionally, many countries also provide competitive
benefits to employees who work part time or on a temporary work schedule. Benefits differ based on an individual’s level
and country of employment and on the basis of local policies. In October 2012, the Group conducted an analysis (on a
sample of 98% of the workforce covering most significant locations of operation of the Group) on the availability and use
of various company benefits (supplementary health plan, financial support for accident-related permanent disability, life
insurance, and employee canteen or luncheon vouchers), the results of which are provided in the table.

Employees entitled to benefit

Fiat Industrial Group worldwide (%)
Financial benefits 2012 2011
Pension plans 92.7 83.9
Supplementary health plans 82.8 80.9
Life insurance 55.5 57.5
Financial support for disability/invalidity 78.8 56.6
Employee canteen or luncheon vouchers 78.3 60.5
Other(1) 10.0 7.2

Social benefits
Child care(2) 23.2 11.6
Gym/fitness(3) 21.4 17.5
Wellness & nutrition programs(4) 33.3 31.3
Other (e.g. flexible working scheme, emergency care/first aid, referral programmes, leave of absence or other flexible benefits) 53.5 27.0

According to an analysis conducted on 98% of the Group’s workforce worldwide as of 31 October 2012, approximately
93% of employees are eligible for a supplementary pension plan, and of these, 75% joined a supplementary plan.
This represents 69% of the total population mapped.
Supplementary pension plans fall into two categories:
n defined contribution pension plans, for which contributions (by employees, the company or both) are defined at the outset,

and benefits depend on the total sums allocated to the fund supporting the plan and the financial returns of the fund itself
n defined benefit pension plans, in which the future benefits paid out to employees are defined at the outset, and con-

tributions may vary over time to guarantee payment of the pre-defined benefits.
Most existing pension plans at Group companies are defined contribution plans.
Health plans are also available for Fiat Industrial Group employees, and about 57% of the total workforce was found
to have joined such a plan (see also page 191). Child care services are in place to help employees be effective in their
GRI-G3.1 working life by responding to their needs (see also pages 192-194). Finally, the Group promotes a healthy lifestyle through
EC3, LA3 comprehensive wellness programs and facilitates access to dedicated sports facilities (see also pages 188-190, 194).

(1)
Includes benefits such as company cars, housing, interest free loans.
(2)
Includes kindergarten, free gymnasium for children, assistance with homework, summer camps/holidays, other services dedicated to child care.
(3)
Includes free gymnasium access, gym/fitness courses and other sports initiatives.
164 (4)
Includes nutrition coaching, no smoking training, medical check-up, medical screening, other wellness programs.
Training
Fiat Industrial Group believes that the training of individuals is key to the management and development of expertise.
Training is the vehicle by which the knowledge required for both business operations and the Group’s strategy and values
are disseminated.
The Training Manager for each Group company coordinates, optimizes and innovates the training provided according to
the needs of the various corporate bodies. Training opportunities are open to all roles, levels, professional families and
individuals who have a drive to improve their own level of professionalism in step with the development of the company
and of technology and in line with the evolution of the corporate culture.
In 2012, the Group training process focused on three central pillars:
n continual support for the development of expertise in the capital goods industry

n development of employees’ managerial skills

n alignment of professional skills with strategic, organizational and technological changes.

The effectiveness and efficiency of training activities are monitored and measured on an ongoing basis using a set of KPIs
based on the Kirkpatrick scale.(1) Training effectiveness is evaluated on the basis of:
n participant satisfaction with the initiative (reaction)

n improvement in individual knowledge/skills (learning)

n applicability of concepts learned to the participant’s work process (behavior).

To verify whether the desired outcome has been achieved, training efficiency is monitored through:
n resources used for each pillar

n hours of training provided for each pillar

n number of hours of training provided by type and by professional level.

dimension
Social
Highlights
Leading People @cnh
In 2012, CNH gave the go-ahead for a global training initiative aimed at strengthening the management skills of complex teams,
at developing a Group culture of expertise by integrating those of individual countries, and at spreading a common culture for
monitoring and improving company performance. Around 650 professionals from North America, Europe, Latin America and Asia
took part in the initiative. The program involved two days of classroom training with external consultants and practical exercises, GRI-G3.1
work tools and action plans, all directly applicable in the participants’ work. LA11
Sustainability Plan
Our commitments on page 38
Glossary
KPI

(1)
The Kirkpatrick scale is a methodology for evaluating training courses and consists in different levels of measurement, applicable to any organization. 165
 Social our people
Dimension

In 2012, Fiat Industrial Group invested €15.2 million in training. By adopting a training strategy which favors the use of in-house
€15.2 million expertise in the teaching process, overall training costs were reduced without cutting the number of training hours provided.
invested in employee A total of 1.4 million training hours were provided to around 68.7 thousand individuals, of whom 82% were men and
training 18% were women. Of the total employees participating in training, 50% were hourly, 49% salaried and professionals,
and 1% managers. Each employee received an average of around 19.9 hours of training, up from the 2011 average of
19.5 hours. Specifically, hourly employees averaged 13.4 hours, professionals and salaried employees 31.5 hours and
managers 35.7 hours (mostly online). In 2012, female employees(1) received an average of 41.4 hours of training per person,
male employees an average of 15.2 per person.
In addition, around 265 thousand training hours on health and safety topics were delivered to about 38,800 employees,
of whom 28,274 were hourly; approximately 45,200 hours of training were delivered on environmental issues to around
26,500 employees (see also pages 176-177).
Investment in classroom, online and on-the-job training focused primarily on the development of job-specific expertise
(69%), corporate campaigns (6%), language courses (11%), managerial skills (13%) and other courses (1%). In Iveco,
specifically, foreign language courses are a key company strength for employee learning.
Most corporate learning campaigns are delivered online, allowing individuals to pursue training when most convenient and
minimizing disruption to their job commitments by allowing them to remain in their place of work.

Training expenditure and activities

Fiat Industrial Group worldwide
2012 2011 2010
Training costs(2) (€ million) 15.2 24.7 22.8
Percentage of personnel costs(3) 0.4 % 0.7 % 0.8 %
Hours of training provided (thousands) 1,363 1,305 648
Employees involved (thousands)(4) 69 32 45

The Group ensures the dissemination to all employees of the principles set out in the Code of Conduct along with good
governance practice, whatever their level or role, including security personnel, through specific periodic courses and other
information channels. For example, in 2012, a survey on security personnel(5) showed that 55% had attended courses on
human rights.
During 2012, a training campaign was provided on the principles described in the Code of Conduct, along with good
governance practice and sustainability, involving approximately 7,366 employees. The course was completed for
managers worldwide on the Compliance Program (Italian Legislative Decree 231/2011) and legal risks. Finally, in 2012, the
online course on non-discrimination in the workplace (ILO Convention 111) continued. A total of 445 individuals took
part, meaning that all professionals worldwide have now received training on this issue.

Training on corporate governance, non-discrimination, anti-corruption and human rights

Fiat Industrial Group worldwide (thousands)
GRI-G3.1
LA10, LA11, HR3, HR8, SO3 2012 2011 2010
Sustainability Plan Hours of training provided 76.9 11.4 6.4
Our commitments on page 38 Employees involved 10.4 12.4 5.7
Glossary
ILO

(1)
CNH training hours on health and safety and the environment by gender are calculated on the basis of the men/women headcount ratio.
(2)
Includes both direct and indirect costs.
(3)
Personnel costs totaled €2,867 million in 2010, €3,296 million in 2011, and €3,464 million in 2012.
(4)
Includes people who have left the company.
166 (5)
The surveyed population covered 678 security personnel, including both those employed by Fiat Industrial Group directly and those employed by outsourcers.
Internal communication
In 2012, the Group’s Internal Communication Committee
developed a number of initiatives designed to achieve a
shared objective: to place employees at the center of the
company. In addition to regularly enriching the content of
the Group’s intranet site and long-standing publications
like The Industry Post, a monthly newsletter, and the
bimonthly magazine Illustrato Fiat Industrial, new initiatives
were conceived with a common goal, especially in terms of
personnel orientation and motivation. This is the idea behind
the Welcome projects, targeting new hires around the world,
with the aim of facilitating integration into the company
and increasing a sense of belonging. When an employee is
hired, he/she receives a CNH Welcome Kit, a personalized
trolley containing a welcome letter from the CEO, a company
presentation in 12 languages and a booklet on the 16
behaviors of leadership. Similarly, the Welcome in FPT Industrial
project includes a backpack full of company memorabilia, such
as a poster of the company’s corporate values and a video
message from the global human resources manager. These
tools have been paired with classroom initiatives such as the
CNH Briefing, two days dedicated to illustrating the activities of
the various corporate functions to employees, and a day and a
half for the Welcome Workshop at FPT Industrial, wich includes
tour of a plant and the opportunity to drive vehicles equipped
with the company’s engines. At its manufacturing sites in

dimension
Social
France, Iveco also organizes conventions dedicated to new hires called Iveco c’est toi; events include a day of introduction to
the company and the product range, a guided tour of the plant and a workshop which, in 2012, was centered around the
theme of safety in the workplace.
A series of motivational initiatives were also introduced. In Iveco, to coincide with the launch of the new Stralis Hi-Way, two events
were held at the Fiat Industrial Village in Turin dedicated to those who worked on the project. The first, the New Stralis Hi-Way
Internal Launch, was organized for the sales launch of vehicles in July, and the second, the New Stralis Hi-Way Celebration, was
held in September to celebrate winning the 2013 International Truck of the Year award. Top management and participants were
actively involved, and videos of the event were distributed on internal blogs. With regard to CNH, 2012 saw the first European
Fairs Awards, which gives workers who have made a major contribution to improving production processes under World Class
GRI-G3.1
Manufacturing the chance to visit an international farming or construction machine trade fair, as well as opportunities to compare 2.10
notes with other professionals. In this area, FPT Industrial organized team building activities and various other workshops in Latin Glossary
America for management, with a view to sparking a process of important cultural change for the business. WCM

167
 Social our people
Dimension

In terms of the climate within the company, in Brazil Iveco promoted a monthly cycle of motivational meetings during which
individuals from different functions discuss new projects and identify areas and methods for improvement. FPT Industrial
integrated four special issues into The Industry Post during the year, dedicated to key themes inherent to the professional families
in the areas of sales, engineering and production, in order to spread awareness of their activities throughout the company. Lastly,
CNH launched a worldwide photo contest on the theme Proud of My Job, in the company’s CNH&ME magazine.

People satisfaction survey

Fiat Industrial Group recognizes that people satisfaction surveys are a useful tool not only for measuring the level of
employee satisfaction, but also for identifying corrective measures that meet the needs and expectations of the entire
organization.
Periodic studies on the work climate are performed both group-wide and within companies. The latter are carried out
independently with internally arranged surveys and methodologies.
At the Group level, in 2010 a first people satisfaction survey was conducted in collaboration with the Great Place to
Work Institute (GPTW), an internationally recognized organization that assists in evaluating results against national and
international benchmarks. At company level, in 2011 all 4,122 CNH employees in Latin America were surveyed. Iveco
continued in 2012 to perform an analysis started in 2010 in Brazil. All 2,430 employees have been surveyed, spanning
all employment grades, and covering five dimensions: Credibility, Respect, Fairness, Pride, Camaraderie plus two open
questions. A percentage of 45% of the people involved responded to the survey with an increase from the 39% of 2011.
The results were in line with the previous year. While at Iveco Venezuela 416 employees were surveyed with a response
rate of 65%. A third survey has been conducted at Iveco Argentina on 180 employees with a response rate of 88%.
The action plan made on the basis of the results will be launched once the new structure of the Group is in place

EQUAL OPPORTUNITIES
The Code of Conduct confirms Fiat Industrial Group’s commitment to offer all employees equal opportunities in the
workplace and in their professional advancement. The head of each department is responsible for ensuring that, in every
aspect of the employment relationship, be it recruitment, training, remuneration, promotion, relocation or termination of
employment, employees are treated on the basis of their ability to meet the requirements of the job. The Group rejects
all forms of discrimination, and in particular discrimination based on race, gender, sexual orientation, personal and social
status, health, physical condition, disability, age, nationality and religious or personal beliefs.
Offering career opportunities and advancement free from discrimination while encouraging and respecting diversity are
among the commitments emphasized in the Fiat Industrial Group Human Capital Management Guidelines and Human
Rights Guidelines.
Given Fiat Industrial Group’s global presence, there may be significant differences in legislation among countries where
GRI-G3.1
HR4
the Group operates, as well as different levels of awareness, concern and ability among employees in applying the
Sustainability Plan principles of non-discrimination. The company Code of Conduct and specific guidelines ensure that the same standards
Our commitments on page 39 are applied worldwide. Indeed, as stated in the Code of Conduct, company standards have precedence in jurisdictions
where legislation is less stringent.
In addition, the Group seeks to build awareness of the importance of a diverse and inclusive workforce through a variety
of initiatives. For example, in 2010, an online course focusing on the principles of non-discrimination was developed

168
in collaboration with the International Training Center of the International Labour Organization (ILO). During 2012,
approximately 8 thousand employees attended courses focused on the importance of behaving in a fair and impartial way,
making use of concrete examples and suggestions on how to identify, prevent and correct conduct that may give rise to
discrimination in the workplace (see also page 166).

MEN AND WOMEN

dimension
The promotion of equal opportunities for men and women in the workplace is an objective shared by the Group and employee

Social
representatives alike. This issue is part of the social dialogue of each country, and follows local regulations and practices. In Italy,
in 2012, Group companies with more than 100 employees presented a report on male and female employment for the period
2010/2011 (under article 46 of Italian Legislative Decree 198 of 11 April 2006, and subsequent amendments) to company
union representatives and to the Regional Equal Opportunities Advisor. These complex yet well-structured reports contain
information on, among other things, training, rates of pay, promotion and turnover. The specific Collective Labor Agreement
(which came into force as of 1 January 2012 for all Fiat Industrial Group companies in Italy, replacing the National Collective
Labor Agreement for metalworkers), envisages the setting up of an Equal Opportunities Commission in each Group company,
made up of company representatives and workers. The commission is tasked with: monitoring employment conditions for
GRI-G3.1
women (also with reference to the two-year report); researching the feasibility and implementing initiatives aimed at promoting HR4
affirmative action and at encouraging behaviors consistent with equal opportunity principles; preventing discrimination, including Sustainability Plan
Our commitments on page 39
that linked to workers’ gender, race or lifestyle and examining any other dispute from an equal opportunity standpoint.
Glossary
Furthermore, among the trade union agreements stipulated at company level worldwide in 2012, 6% addressed equal ILO
opportunities. A study carried out in October 2012 on 97.2% of the Group’s workforce outside Italy showed that around
21% of workers are represented by joint bodies, i.e., organizations comprising company and worker representatives with

169
 Social our people
Dimension

expertise in equal opportunities. It should be noted that within the scope of trade union agreements and joint bodies, the
+6.5% over 2011 concept of equal opportunities goes beyond that of gender equality.
in the female Female employment in numbers
headcount In 2012, the presence of women in the Group’s workforce increased by 6.5% over the previous year, while the overall number
of employees increased by 1.9%. Women represent approximately 14% of the Fiat Industrial Group workforce worldwide.
There was an increase in women in the workforce in all regions compared with 2011, but especially in Latin America where the
increase was 25%. Despite this increase, Latin America has the lowest proportion of female employees (10%), mainly due to the
predominance of hourly employees which represent 75% of the region’s total workforce, and of which the majority are men.

Women employees by region

Fiat Industrial Group worldwide (%)
2012 2011 2010
Europe 13.2 12.7 12.1
North America 18.5 18.8 20.2
Latin America 10.1 8.0 5.8
Asia 10.5 10.7 13.5
Rest of the world 18.6 17.4 17.8
World 13.6 13.0 12.7

The highest female presence was recorded in Iveco (15%) and other businesses(1) (53%).
Specifically, female employment is concentrated in the 30-40 age group and among those with less than 5 years of
employment at Fiat Industrial Group.
There was a slight increase in the proportion of female hourly employees, and a sharper increase in the manager category
where female employees rose from 9.6% in 2011 to 11% in 2012. The proportion of female workers in the salaried and
professional categories, on the other hand, remained largely unchanged.

Women employees by category

Fiat Industrial Group worldwide (%)

29.2 29.6 29.3

2010
16.9 2011
15.8 16.8
2012
GRI-G3.1 11.0
LA13, LA14 8.6 9.6
8.1 8.0 7.2
Sustainability Plan
Our commitments on page 39

Hourly Salaried Professional Manager

170 (1)
Other businesses include holding and other companies.
In terms of employee distribution by level of education, 54% of women employees have a medium/high level (26% hold a
university degree or equivalent and 28% have a high school diploma).
The percentage of part-time contracts remained substantially unchanged compared with 2011, while 77% were signed by
female Group employees. For fixed-term contracts, on the other hand, only 13% were signed by women.

Compensation
In its commitment to ensure an inclusive work environment and equal opportunities for all employees, Fiat Industrial
Group adopts a progressive total compensation system based on equitable and fair criteria.
At the heart of the company’s compensation philosophy lies the concept of meritocracy, which acknowledges the value
of a high performance culture and the importance of a market-driven approach.
To support these elements of meritocracy, the company has defined a compensation system that comprises a number of
different components. This comprehensive package rewards employees for their contribution to the company’s results,
provides development opportunities and allows them to share in the business success they help create.
Base salary, benefits and long-term incentives are determined by market-driven benchmarks, therefore ensuring fair and
objective treatment for all employees in the different markets around the world. The specific criteria for adjustments focus
on closing competitive gaps with respect to market position, giving priority to top performers. Variable compensation and
career development are impacted by individual contribution, which is vigorously evaluated through a performance and
leadership management program that is consistently deployed throughout the entire organization. The same metrics and
methodology are applied in this assessment of annual performance to all eligible employees worldwide.
Additionally, the Group employs a formal process to monitor the application of its core equity and fairness principles
to compensation levels, annual salary reviews and promotions. In particular, these reviews are based on standard
criteria, and do not allow manager discretion for those receiving compensation actions. Combined together, all of these
actions ensure the company’s total compensation system, in line with all other internal processes related to people
management, effectively contributes to ensuring equal opportunities and treatment for all individuals regardless of age,
gender, race, religious belief or other such factor or attribute.

Diversity in the workforce

dimension
Social
Fiat Industrial Group’s commitment to diversity and inclusion involves a range of initiatives to help employees work in an
open, flexible and challenging environment. In 2012, a survey(1) was carried out in 34 countries, covering about 98% of the
Group’s workforce, to monitor employment of disabled workers. The regulations in certain countries (including Austria,
Brazil, France, Germany, Italy and Spain) require companies to employ a minimum percentage of disabled workers (which
may also vary in relation to the headcount of the company or plant, since in many cases the requirement is only applied
to facilities with a headcount exceeding a certain threshold). These laws also give employers the alternative option of
paying contributions to specific funds for the differently abled and of establishing agreements with the relevant bodies for
the phased-in hiring of these individuals, etc. The survey showed that in these countries (14 mapped, accounting for 67%
of the Group’s global workforce) disabled workers make up 3.1% of total employees (largely unchanged from the 2011 3.1% disabled
survey). This average is the result of different scenarios and of local legislation which establishes minimum quotas ranging workers
from 1.5% to 7%. These are calculated on, or with reference to, the headcount (indeed, in certain cases regulations specify
formulas for calculating quotas which, though referring to headcount, calculate quotas on a lower or higher number).
The survey also showed that differently abled women account for 11% of the total surveyed, similar to the percentage of
total female employees in the entire workforce (14%). In many other countries (including Argentina, Australia, Belgium,

(1)
The survey, carried out on 31 October 2012, is performed biannually. 171
 Social our people
Dimension

Canada, Mexico, Poland, the United Kingdom and

the United States) there is no legislation relating to
the employment of disabled people that establishes
minimum quotas, although in some cases other forms
of protection exist (i.e., related to working hours or
workplace environment, particular grants/benefits for
companies employing differently abled workers, etc.).
In these countries (20 mapped by the survey) there
are objective limitations to reporting the number
of disabled workers, as the information is sensitive
and often subject to data protection legislation; as a
result, the company is only aware of an employee’s
personal status if he/she chooses to disclose it. In
Brazil, due to the limited presence in the labor market
of disabled workers and/or disabled workers with the
skills necessary for employment, the FPT Industrial
and Iveco plants at Sete Lagoas have continued
the Inclusão Eficiente (Efficient Inclusion) project
launched in 2010 in collaboration with the Ministry
of Labor. The project envisages twice yearly meetings
between the company and the relevant authorities,
and determines the number of disabled workers to
be hired, together with the best approach (including
training and educational programs) and timescale
for their integration. From January to October 2012,
following specific and targeted initiatives, CNH in
Brazil increased the number of differently abled
workers by 42% (accounting for 7% of total hirings in
the period). In November 2012, Iveco France drew up
a new three-year agreement, with the approval of all
five trade unions represented, which sets out specific
policies and actions aimed at the recruitment, training
GRI-G3.1 and development of differently abled people along
LA13
Sustainability Plan with the provision of long-term employment for them.
Our commitments on page 39 In Italy, in order to fulfill its obligations under Italian
Law 68/99, various Fiat Industrial Group companies
have defined or relaunched the agreements process
with the relevant authorities (suspended in previous

172 (1)
Survey carried out on 31 October 2012.
years, in accordance with the law, due to the implementation of extraordinary temporary lay-off benefits and collective
redundancy schemes), designed to promote the inclusion of disabled people in its workforce. These agreements, provided 14% of employees
for under current legislation, are a suitable mechanism for meeting society’s wish to find employment for differently abled belonged to ethnic
people, in that they balance the needs of the individual with the organizational and productivity requirements of the
company. However, persisting economic difficulties for some business lines, and the consequent recourse to extraordinary
minorities
temporary lay-off benefits and collective redundancy schemes at certain Group plants, resulted in both the suspension of
these obligations, under applicable law, and the deferment of hirings scheduled for certain plants.
Furthermore in 2012, a survey was conducted on 98% of the Fiat Industrial Group workforce in the United States
regarding the number of employees belonging to ethnic minorities as recognized by local legislation. The mapping
showed that 14% of employees belong to ethnic minorities (of which women account for 27%), and that 20% of female
employees and 13% of male employees are from an ethnic minority. Finally, a survey(1) of employee nationality was also
conducted at Fiat Industrial Group companies in ten countries whose headcount totaled 85% of the Group’s workforce
worldwide. It emerged that 4% of employees belong to a nationality other than that of the country surveyed. The
percentage was higher for men (4%) than for women (3%). The country in which Group companies employ the highest
percentage of workers with a nationality other than that of the host country was Germany, where the proportion of
foreign employees is 10%.

Highlights
Diversity Council
In North America, in 2002, CNH established a Diversity Council whose purpose is to champion the Diversity and Inclusion
Journey at CNH, creating an environment that will enhance the company’s ability to succeed in a competitive marketplace by
working with the Diversity Steering Committee, Diversity Coordinators, HR Support Staff and Diversity Specialists. The Council

dimension
Social
collaborates with all these groups as an equal partner, supportive of diversity and inclusion initiatives to promote a more diverse
workforce within CNH. It also works closely with Communications to convey information on diversity-related issues, programs and
communications to employees and customers, as well as acting as a liaison and advisor to CNH businesses on diversity and inclusion
issues and policies. In addition, it works with Communications and local CNH management to establish the presence of CNH in
underrepresented communities. The Council consists of twenty to twenty-five elected members, including personnel representing
the full range of diversity of employees within CNH in North America. The Council strives to represent all groups, covering age,
religion, gender, gender identity, national origin, ancestry, sexual orientation, color, race, persons with disabilities, veterans, marital
status, and familial status. The membership should also be representative of the different organizations within CNH and include
exempt, non-exempt, and management personnel.The Diversity Council operates through committees responsible for the various
areas of Communications: Diversity Education & Training, Career Development & Planning, Performance & Accountability, Culture
Change, and Recruitment.

(1)
Survey carried out on 31 October 2012 in Belgium, France, Germany, Italy, Poland, Canada, USA, Brazil, Spain and the UK. 173
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OCCUPATIONAL HEALTH AND SAFETY

Occupational health and safety are cornerstones of Fiat Industrial Group’s Code of Conduct and key elements of its
sustainability model.
The Group considers safeguarding occupational health and safety an absolute priority for all its activities and is
committed to ensuring the inalienable right of every employee to a safe and healthy work environment.
Safety is increasingly becoming an integral part of company and manufacturing processes and is no longer merely a
procedure made mandatory by regulations and carried out alongside all other activities.
In this regard, the World Class Manufacturing’s safety pillar is the foundation of the methodology applied by Fiat
Industrial Group to optimize production processes and is the prerequisite to successfully achieve the set levels (see also
page 110). Therefore, the implementation of initiatives aimed at the ongoing improvement of safety is considered the
first step to reach excellence in the management of processes in all countries where the Group is present.
This goal can only be reached by involving every employee through training and awareness programs.

GRI-G3.1
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Our commitments on page 40
Glossary
WCM

174
HEALTH AND SAFETY MANAGEMENT SYSTEM
One of the tools applied and implemented by Fiat Industrial Group to safeguard and promote occupational health and
safety is an effective management system compliant to the OHSAS 18001 international standard. The 2010 Health and
Safety Guidelines, shared with all employees and stakeholders through institutional websites, are the expression of the
Group’s commitment in this area. These guidelines establish the principles and approaches to be pursued within the scope
of all activities, including:
n the dynamic and preventive assessment of activities enabling risk prevention and/or control, according to the best

available techniques
n the ongoing improvement of safety-related activities

n the extension of know-how, proficiency, and awareness of all employees through targeted training activities

n the involvement of staff and employee representatives in safety initiatives, adopting a preventive and hands-on approach.

Based on these principles, every company is called upon to set ambitious annual goals to pursue ongoing technical,
educational, organizational and procedural improvement. Continuing progress is ensured by preventive and corrective
action plans that take into consideration company-specific job duties, experience and technical progress while respecting
the health of people and the integrity of the external environment.
These standards are applied in all countries where Fiat Industrial Group operates, even where regulations are less stringent,
as the Group considers them to be the only road to excellence.

Organization
Each company ensures the implementation of a policy safeguarding and promoting occupational health and safety in every
area of activity and in every country through an organizational structure common to all operational units worldwide.
In compliance with national regulations, the specific responsibilities relating to health, safety and the environment are
defined through a system that assigns roles on an individual basis at each company.
Every manufacturing plant has an Environment, Health and Safety (EHS) unit responsible for providing specialized technical
assistance to production managers and to those in charge of corporate processes, and for dealing with occupational health
and safety issues. Plant EHS units are coordinated by a company EHS department, responsible for applying Group and

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company guidelines in compliance with all applicable regulations. Specifically, the company EHS department is responsible

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for providing specialized assistance for all corporate procedures affecting safety, and for coordinating plant EHS units.

Certification process
Fiat Industrial Group’s OHSAS 18001 certified manufacturing plants number 56 worldwide. Certified sites cover 45,933
employees, a result that is deemed excellent considering the changes in Group scope during 2012.
This confirms the Group’s commitment to achieving ever greater improvement through the practical application of the
Health and Safety Guidelines.
Certifications are granted by accredited international certification bodies; these, in turn, are constantly and closely
GRI-G3.1
monitored by international organizations such as Accredia and SAS, which ensure and certify that they meet the high level LA8
of reliability requested, as well as operational and procedural standards. Sustainability Plan
Our commitments on page 40
The Group’s commitment to adopting occupational health and safety management systems is also reflected by the
Glossary
extension of OHSAS 18001 certifications to some non-manufacturing sites, which will gradually be pursued starting from OHSAS 18001, Stakeholders
2013. Furthermore, in 2014, OHSAS 18001 certification will be pursued at all joint venture plants where the Group has
an interest of at least 50%.

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OHSAS 18001 certifications

56 plants Fiat Industrial Group worldwide (no.)
2012 2011 2010
OHSAS Plants certified 56(1) 57 54
18001 Employees working at certified plants 45,933 47,040 42,039
certified
To assure the effectiveness of management systems, fair and transparent inspections (audits) are planned, carried out and
documented on a regular basis, both by qualified internal auditors and external industry-specific auditors or independent
certification bodies (external audits by second and third parties).
In 2012, the Fiat Industrial Group completed a total of 671 audits, up by 26% compared with 2011.

Audits and employees covered

Fiat Industrial Group worldwide
2012 2011 2010
Internal audits (no.) 565 384 200
External audits (no.) 106 147 134
Total number of employees covered by external audits (thousands) 49.02 54.38 42.33
Audited employees over total Group headcount (%) 78.35 87.71 n.a.

Training
Training all employees for their respective tasks and responsibilities is a key point of the Health and Safety Guidelines; training
aims at increasing awareness and fostering proactive behavior among all employees while preempting potential risks.
Fiat Industrial Group provided a total of approx. 265 thousand hours of training on health and safety in 2012,
a 13% increase over 2011. More than 38,800 employees were involved, including 28,274 hourly employees.

Health and Safety training

Fiat Industrial Group worldwide (no.)
2012 2011 2010
Hours of training 264,878 234,138 211,167
Employees involved in training activities 38,841 33,745 36,552

In this context, Health & Safety First is of crucial importance, a training platform adopted in 2012 by all Italian plants and
governed by the new collective labor agreement in Italy.
Health & Safety First offers ongoing, structured and shared training based on learning models proven to effectively
GRI-G3.1 influence behavior following the rationale of the WCM safety pillar.
LA8
Sustainability Plan The national Organismo Paritetico Health and Safety (OPHS), which includes Fiat Group, Fiat Industrial Group and
Our commitments on page 40 EHS representatives, trade unions and the Unione Industriale di Torino (Employers’ Association of Turin), is the
Glossary
Audit, OHSAS 18001, WCM body responsible for promoting and validating all aspects of the Health & Safety First platform. The OPHS entrusts
the development of the platform’s technical contents and the design of training courses to internal specialists and to
qualified external consultants.

176 (1)
The reduction is due to the closure of a certified plant.
 dimension
The main initiatives implemented in 2012 include: the design and creation of a training course catalogue; the preparation

Social
of trainers including about thirty teachers, prevention and protection managers and employees; and the introduction of 265 thousand
an IT platform to file and store educational material and course recordings. As per OPHS directives, approximately 280 hours of
training courses were delivered to Fiat Industrial Group employees across Italy.
Following the election of worker safety representatives in 2012, all representatives in Italy were trained as required by
training
on health and safety
their position; courses were designed and provided by teachers with a trade union background. A total of 11 courses were
provided to 87 worker safety representatives across Italy.
The Group has now decided to export the experience and tools of the H&SF training platform to plants abroad as well,
and for this reason the information booklets created according to OPHS indications were translated into English.

Safety culture
Clear and effective communication is crucial to ensuring the success of accident and occupational disease prevention
policies. Safe behavior derives from a deep-rooted safety culture, which can only be enhanced by engaging employees and
by making sure that they are fully aware of risks and of their responsibilities in terms of health and safety. This is even more

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Highlights
BE SAFETY
A pilot project called Be Safety was completed in 2012 at the CNH plant in Lecce (Italy), involving more than one hundred salaried employees and managers. The experiential
learning activities organized outside the plant were designed to stimulate the participants’ five senses and teach them how to identify and report unsafe conditions and actions.
The training initiative was a major success, with a significant increase in the number of reports and corrective measures implemented. The employees involved in this
project actively participated in the creation of communication tools to be distributed throughout the plant; innovative media to promote a culture of safety, including videos,
graffiti, works of art and photos, were presented to coworkers and families at the plant’s Christmas party.
In light of the project’s excellent outcome, it was extended to other Italian and European plants. Specifically, in 2012 it was launched at the plants in Basildon (United Kingdom)
and at the spare parts warehouse in Les Plessis (France), and the same is planned at the San Mauro Torinese plant (Italy).

important within multinational and interdisciplinary frameworks that embrace different cultures and bodies of legislation,
not to mention a large number of individuals.
Among the initiatives implemented in the Group, the Top Ten Safety project defines and provides standard methods
throughout all Fiat Industrial Group plants designed to draw the attention of employees, visitors, and external companies
on plant premises to safeguard occupational health and safety.

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178
The Top Ten Safety project was extended to all Group plants worldwide in 2012, involving a total of approx. 47,800
employees. One of the future targets included in the Sustainability Plan is to build on the Top Ten Safety contents to 47,800
develop a Top 15 Safety project, defining new guidelines and introducing new universal standards relating to: staircases,
forklifts, see-through doors, internal circulation and safety signs.
employees
involved in
The Group’s intranet is an important communication tool used by the safety professional family. It enables access to a
broad range of informational and educational material, including the documentation regarding OHSAS 18001 certification Top Ten Safety
programs, such as guidelines and general and operational procedures.
project
Fiat Industrial Group plants have launched many initiatives worldwide to spread the culture of safety. In 2012, teams of
employees at the Iveco plants in Annonay (France) and in Suzzara (Italy) contributed to the creation of safety mascots, an
effective way of spreading messages and information on safety and illustrating typical risk situations.
In autumn 2012, the Iveco plant in Suzzara (Italy) promoted an initiative called Disegniamo la nostra sicurezza (Drawing
Our Safety) involving 19 students from the Giulio Romano High School of Arts in the city of Mantua. The project aimed
at disseminating the safety culture among teenagers by stimulating their creativity with regard to specific risk situations
and subsequent reactions. The sketches presented by the students after visiting the plant will be the core of the internal
communication system to be adopted. This was a unique opportunity for students to witness the works of such an
important industry leader.
The Iveco Astra plant in Piacenza (Italy) organized the first photography contest called Un istante di… Sicurezza e Ambiente
(A Moment of... Safety and Environment), proposed, developed and endorsed by the Safety, Environment and People
Development pillars of World Class Manufacturing and by the respective plant bodies. The project, which also involves
participants outside the company, aims at raising awareness on the safeguarding of safety and the environment in all
spheres of life, such as: on vacation, in private and public, in social venues, etc. Eligible photos depicted the importance of
focusing on safety to avoid injuries and prevent accidents, and the relevance of ecological factors in everyday life. The first
year, approximately 250 workers participated and the initiative is planned to be repeated in 2013.

Brazil

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SAFETY WEEK 2012
In October 2012, the Iveco plant in Sete Lagoas hosted the in-company event Week of Prevention and Safety in the Workplace,
in collaboration with local trade unions (CIPA). The initiative, aimed at enhancing the culture of safety among employees, was a
perfect occasion to reaffirm the importance of prevention, in and out of work. The initiative involved 2,380 Iveco employees and
1,844 employees from external companies.
Throughout the week, Mascot Lupercio entertained and involved participants in many activities, while distributing important
information on safety.
GRI-G3.1
All initiatives were developed around the issue of hand safety. A play in four acts with elements of mystery and adventure LA8
called Que mao sou eu (Which Hand Am I), was staged to focus on the specific prevention of hand injuries. Furthermore, workers Sustainability Plan
Our commitments on page 40
received many different hand treatments such as massages, reflexology interventions, exfoliation, and moisturizing. During the
Glossary
week, they also received the booklet Lessons of the Iveco Team, a collection of the best safety-related phrases authored by the OHSAS 18001, WCM
employees for the I Understand Safety contest organized during the previous months.

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In 2012 as well, the FPT Industrial plant in Bourbon Lancy (France) also participated in the dissemination of a safety culture
among the younger generations. Approximately 15 teenagers between 12 and 15 years of age were invited to tour the
plant’s fire station, where they learned first-hand how to use extinguishers to put out a fire and received professional
advice on how to behave in case of dangerous situations.

OCCUPATIONAL HEALTH AND SAFETY PERFORMANCE

Despite the turbulent global economic situation, in recent years much has been done to improve the implementation of
occupational safety principles. In 2012, Group companies spent €96.08 million in total to improve the safeguard of health
and safety in the workplace, 16% more than in 2011.

Spending on Health and Safety

Fiat Industrial Group worldwide (€ million)
2012 2011 2010
Spending on health and safety(1) 96.08 82.74 68.65
Percentage of personnel costs(2) 2.77% 2.51% 2.39%

GRI-G3.1
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Sustainability Plan
Our commitments on page 40

Includes spending on improvements to safety and working conditions (improvements to facilities, worker protection, inspections of plants and the working environment) and
(1)

to employee health (healthcare costs).

180 Personnel costs totaled € 3,464 million in 2012; €3,296 million in 2011; €2,867 million in 2010.
(2)
Spending to improve safety and working conditions (worker protection, improvements to facilities, inspections of plants
and the working environment) totaled €80.17 million in 2012, while €15.91 million were spent on employee health
(healthcare costs).
Thanks to investments in health and safety, savings have been made on insurance premiums paid to the National Institution
for Insurance against Accidents at Work (INAIL) in Italy, for a total of over €5 million in 2011, and over €4 million in 2012.

Safety rates
Safety rates are a clear indicator of how well companies manage to prevent accidents.
Thanks to the Group’s many initiatives mentioned above, the overall 2012 frequency rate was 0.37 accidents per 100,000 -33%
work hours, which accounts for a 33% drop compared to the previous year. The severity rate was 0.12 days of absence
per 1,000 hours worked. The reporting scope covered 92.1% of the Group headcount.
in accident
frequency rate
No fatal accidents were reported in 2012 involving employees, contractors or anyone else working at the various Fiat
Industrial Group facilities worldwide.
A statistical breakdown by gender showed that the number of accidents causing the absence of female personnel for at
least three days was 11.2% of the total number of accidents, less than the percentage of female personnel in the total
workforce (12.6%)(1).

Frequency rate(2) Severity rate(3)

Fiat Industrial Group worldwide (accidents per 100,000 hours worked) Fiat Industrial Group worldwide (days of absence per 1,000 hours worked)

0.70 0.20
0.17
0.55

0.12
0.37

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Social
2010 2011 2012 2010 2011 2012

The Group monitored 5,326 near misses(4) in 2012, whose analysis and subsequent countermeasures made it possible to
GRI-G3.1
further reinforce prevention. LA7
Activities continued during 2012 to develop and disseminate tools aimed at collecting, analyzing and managing the Sustainability Plan
Our commitments on page 40
traceability of events (accidents, first aid and near misses) throughout Fiat Industrial Group, as well as unsafe acts and
Glossary
unsafe conditions, to improve the management of such processes and the effectiveness of preventive actions. Frequency rate, Near miss, Severity rate
In December, New Holland Fiat India celebrated the achievement of an important safety milestone: in five million consecutive
hours of work, no accidents were reported, which set a new record of outstanding occupational safety at CNH plants.

(1)
Data does not include CNH North America plants.
(2)
The frequency rate is the ratio of the number of injuries reported (resulting in more than three days of absence) to the number of hours worked, multiplied by 100,000.
(3)
The severity rate is the ratio of the number of days of absence to the number of hours worked, multiplied by 1,000.
(4)
Near misses: an unplanned event that did not result in injury, illness, or damage, but had the potential to do so. 181
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Dimension

Occupational diseases Occupational Illness Frequency Rate (OIFR)

Fiat Industrial Group worldwide
Specific occupational disease indicators provide a summary (cases of occupational illness per 100,000 hours worked)
overview of the results reached by a company in providing 0.13
a healthy work environment for its employees. Occupational 0.12
diseases are the result of lengthy, gradual and progressive
0.10
exposures during work activities to chemical, physical or
biological agents harmful to workers.
Occupational diseases are constantly monitored by Group
companies for the purpose of identifying persistent working
conditions that may have elicited their onset, assessing any
residual risks, and if necessary, implementing corrective
measures to prevent their recurrence. The onset of
occupational illnesses today is mostly associated with working
methods and environmental circumstances that no longer
exist within the Group, as they have long since been improved
2010 2011 2012
and/or eliminated.
In 2012, a total of 140 cases of occupational diseases were verified by the relevant insurance authorities within the
countries of reference. A statistical breakdown by gender showed that the number of occupational diseases affecting
female personnel is 5.7% of the total number of occupational diseases, less than the percentage of female personnel in
the total workforce (12.6%)(1).

GRI-G3.1
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Our commitments on page 40
Glossary
OIFR

182 (1)
Data does not include CNH North America plants.
HEALTH PROTECTION
The Group is committed to safeguarding the health of
workers on the job at all times. This implies an outlook on
health that goes beyond the mere absence of accidents and
illnesses, addressing the psychological and physical well-being
of individuals and adopting specific promotion and prevention
programs.
This is why, in addition to the many activities within the Group
promoting employee safety, much emphasis is placed on
disease and disorder prevention programs and to the provision
of assistance and support services (see also pages 188-190).
Work-related stress
For some time now, Fiat Industrial Group companies have
undertaken initiatives to assess work-related stress, in
accordance with the new approaches announced by the
International Labour Organization (ILO). The ILO recently
spoke about decent work, broadening the concept of quality
of work, in which the theme of work-related stress is an
integral part. According to the ILO, the international economic
crisis has further accentuated stress-related problems due to
greater job instability, the retirement age increase, and an
aging workforce.
According to many recent studies, stress causes 50-60% of
leaves of absence from work, even if indirectly; this adds up to
a huge cost, both in terms of psychological distress for workers

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and decrease in productivity.

Social
Fiat Industrial Group companies have adopted a step-by-step
process based on standardized criteria to assess risks. Criteria
are taken from the suggestions of the Network Nazionale
per la Prevenzione del Disagio, the national network for the
prevention of psycho-social distress in the workplace; they
were adapted to the Group’s characteristics and combined
with key elements highlighted by the United Kingdom’s Health
and Safety Executive and by the Swiss SUVA.
The risk assessment of work-related stress takes into consideration a series of external, environmental, cultural Sustainability Plan
Our commitments on page 40
and psycho-social factors that may impact worker response to stress in different ways, depending on an individual’s Glossary
country of origin. Therefore, stress-related risk assessments carried out using the same assessment tool may differ ILO

substantially among countries. This is a challenge that international bodies seek to overcome to make data from
different countries uniform and comparable, an aspect that is particularly important to the Group due to the
international scope of its operations.

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Workstation ergonomics
In 2012, Fiat Industrial Group launched specific monitoring of workstation ergonomics in numerous plants in the United
States, Belgium, Italy, Great Britain, Spain and Brazil, a sign of its commitment aiming at preserving the psychological
and physical integrity and well-being of employees. In fact, ergonomics deals with the design of systems, equipment,
tools, technical tasks, hardware and software, with the goal of improving the safety, health, comfort and performance
of users; and it is an interdisciplinary science involving physicians, psychologists, engineers and designers.
Some accidents on the job may be attributed to human error for the most part: the analysis of these events evidences
that their main cause is often the poor quality of interaction between workers and the objects used, or tasks performed.
The probability of an injury and the severity of its consequences may be downsized by addressing human skills and
limitations as early as in the design phase of the working environment, equipment and plants.
The Group has long been constantly monitoring these issues so as to detect and limit critical issues, and anticipate
potential problems. This is why designated in-company structures have been set up to study workplace ergonomics,
often through virtual simulations, also in collaboration with qualified university institutions.
In 2012, CNH and Centro Ricerche Fiat developed an IT tool for the ergonomic analysis of assembly lines (EM-MURI)
and launched pilot projects in several plants worldwide such as Racine (USA), Antwerp (Belgium) and Basildon (UK).
The company is also contemplating the trialing of the ERGO-UAS(1) method at some pilot plants in Europe.

(1)
ERGO-UAS is a technique for planning manual work that enables the measurement and control of workloads and relative standard production times. The result of
184 applying the ERGO-UAS is the development of a well-balanced process that does not expose workers to hazardous situations.
Between 2011 and 2012, Iveco finished applying the ERGO-UAS method at the Valladolid and Madrid plants in Spain,
and launched the project at the plant in Suzzara (Italy). The 2013 corporate objective is to verify the applicability of the
method at the Sete Lagoas plant in Brazil.
In 2012, FPT Industrial launched various educational initiatives for personnel and monitoring activities in the workplace. Specifically,
it arranged a training and refresher program for a work group of
health and safety specialists such as plant ergonomists and company
specialists. The training program was held at the plants and corporate
sites in Italy and France.
It involved thirty people and was structured in two stages: the
first, launched in 2012, focusing on manual handling of loads; the
second, scheduled for 2013, on repetitive activities of the upper
limbs. Moreover, in association with Centro Ricerche Fiat, the
company developed an analysis plan for activities requiring the
use of screw guns. Once the applicability of the ERGO-UAS
method was determined, it launched a pilot project to apply
the system at Drive Line plant in Turin (Italy), which will end in
2013. Subsequently, the ERGO-UAS system will be extended to
all FPT Industrial companies. In order to improve the ergonomic
risk assessment criteria, FPT Industrial reviewed the operational
procedure in the management system. As proof of the Group’s
commitment to ergonomics, FPT Industrial was among the
companies that, in association with INAIL (Italian Institution for
Insurance against Accidents at Work) and the three universities
of Piedmont (Italy), launched a pilot project (ERGOHELP)
to create an IT tool to aid in the assessment and design of
ergonomic workstations and job tasks.

dimension
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Highlights
ERGONOMIC ADVANTAGES FROM WCM
An example of an improvement delivered by World Class Manufacturing is the renewed assembling area within the FPT Industrial
NEF engines plant. The initiative was based on a similar project already realized in the plants in Foggia (Italy) and in Bourbon Lancy
(France).
Sustainability Plan
Thanks to the WCM program, this section of the NEF engines plant has been transformed in order to improve the logistic flow of Our commitments on page 40
components and at the same time facilitate the work of people on the assembly line. Glossary
WCM
The renewed system applies a synchronous methodology aiming to reduce the working cycle in terms of time and to simplify
production process with the use of automated solutions, while ensuring better working position visibility and ergonomic advantages.
This innovative process improves the plant productivity and flexibility and increases the quality of products.

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EMPLOYEE WELFARE
Fiat Industrial Group considers its people to be its most valuable asset. Besides fostering professionalism, offering
opportunities for growth without discrimination and ensuring a safe working environment, the Group promotes various
initiatives aimed at striking a healthy balance between professional and private life and optimizing employee well-being.
The Group believes that enhancing employee wellbeing is essential to improving satisfaction at work, over and above
wages and the requirements of local legislation.

WORK-LIFE BALANCE
Achieving the optimum balance between work and private life is essential to ensuring employees are effective, productive
and satisfied in all dimensions of their lives. Fiat Industrial Group is committed to addressing this challenge in partnership with
its employees, striving to improve this balance, while continuing to deliver excellent performance at work. To help Group
personnel achieve the right balance between their professional and private lives, Iveco launched the telelavoro pilot project in
September 2012, which allows employees to work from home. Currently in the trial phase, the initiative involves a group of
workers at the Turin site (Italy) with particular and verified personal and private needs. Indeed, modern ICT systems allow
GRI-G3.1
LA15 employees to work in a way which is both flexible and compatible with the nature of their job, regardless of location.
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186
FLEXIBLE WORKING
In 2012, the Group carried out a survey on the flexible working arrangements offered to its employees, focusing on flexible
working hours, parental leave and other forms of leave. The results provided a wide range of information, helping to identify
appropriate action for improving employee work-life balance. Flexible arrangements, along with tools to reconcile work needs
with the responsibilities of family life, enable a positive working environment to be established and maintained for all employees
within the Group. The survey revealed that more than 79% of the employees surveyed(1) took advantage of flextime and that
North America and Latin America, at 100% and 91% respectively, are the areas where this system is most applied.
The survey also showed that, between January and October 2012, more than 7% of employees took leave of more than
three days for the care of family members, for personal treatment and care (excluding all forms of compulsory leave
for illness), and for study and sabbatical leave; 2.4% of these types of leave, which are defined by company policy or
agreements with trade unions or employee representatives, exceeded the provisions set by law, and 20% was granted to
female employees. The type of leave most taken by employees was family-related (nearly 78% of the total), with 22% of
this taken by female workers. Study leave comprised more than 17% of the total, 92% of which was taken by male workers,
while leave taken for personal treatment and care amounted to approximately 5% of the total, 26% of which was taken by
women. Sabbatical leave in 2012 was negligible. These benefits form part of a corporate philosophy which aims to achieve
a healthier, more motivated and sustainable workforce that actively participates in the Group’s success.

RETURN TO WORK AFTER PARENTAL LEAVE

The equal opportunities Fiat Industrial Group offers in terms of maternity, paternity and adoption is evidence of its
commitment to encouraging both female and male employees to balance parental responsibilities with their careers. The
Group grants parental leaves to all its employees in compliance with local regulations (labor law requirements may vary
from country to country). In 2012, 1,792 employees(2), approximately 3% of Group personnel, took maternity, paternity,
parental, adoption or breastfeeding leave. Of this, 3.3% of leave granted by the company went above and beyond the
applicable legal and/or contractual provisions. These cases mainly concern maternity leave granted in North America and
make up approximately 10% of total maternity leave worldwide during the period covered by the survey.
In total, 73.7% of overall leave was in Europe, 19.6% in Latin America, 3.8% in North America and the remaining 2.9% in

dimension
Social
the rest of the world. In terms of gender, 61% of overall leave was taken by male Group workers. Paternity leave accounts
for approximately 56% of the total, maternity leave 32%, while breastfeeding accounts for 12%. The percentage of leave
for adoption is negligible. Over the total workforce, parental leave was most frequent in Latin America (approximately
4%) and Europe (3%).
In October 2012, another survey was conducted on the percentage of employees, by gender, who had returned to work
after parental leave. The survey was carried out in Italy for the second consecutive year, as well as being extended to
Belgium, Spain and Poland. The results showed that in these countries, which represent 40% of the Group’s employees,
59% of those taking parental leave were male, 2% of whom were still on parental leave as of 31 October, compared with
14% of female employees at the same date. A total of 100% of men and 99% of women returned to work after taking
leave, and 98% of men and 95% of women surveyed were still company employees 12 months later.

(1)
Survey of all Group employees, excluding hourly employees, carried out on 31 October 2012.
(2)
Survey covers the period from 1 January 2012 to 31 October 2012, and only includes leave of 3 days or more. 187
 Social our people
Dimension

Health and wellbeing

Fiat Industrial Group considers the health and wellbeing of its employees to be fundamental, both within and outside
the scope of work-related activities. The promotion of initiatives for the improvement of employee health and wellbeing
demonstrates Fiat Industrial Group’s commitment to this issue. The initiatives launched across the world to promote and
sustain healthy ways of living are varied and extensive, and range from information and awareness campaigns on health to
the promotion of sporting activities and the Group’s own specific wellness programs.
Since its launch in 2008, CNH and FPT Industrial have continued to run The Picture of Health wellness program,
which is available to approximately eight thousand employees in the United States. Through a wellness champion network
of 24 employees across the organization, the program builds employee awareness of the value of better health, engages
them in discovering their personal health risks, increases understanding of what employees should do in this regard and
inspires action to change. Nearly 90% of the employee population has participated in at least one health management
activity since the program began in 2008; in 2011, more than 70% of eligible employees earned an incentive for completing
a three-step health risk awareness assessment and confidential health advisement process.
The Tips on Health initiative continued to run. Launched in 2011, and appearing twice a month on the company
intranet site, the initiative broadcasts information on good lifestyle habits, and aims to contribute to the prevention of
minor illnesses, sensory problems and potential health issues in the future. In 2012, information was published on the safe
use of medicines, the risks of sun exposure, the harm caused by smoking, the importance of healthy eating, cardiovascular
diseases and the benefits of exercise. Tips on Health are available in the following languages: Italian, English, French,
German, Spanish, Portuguese, Czech, Polish,
Dutch, Chinese, and Hindi. For 2013, further
information will be published, with guidance on:
protecting your eyes, diet-related risks, domestic
accidents, diabetes and issues relating to hearing.
In 2012, FPT Industrial carried out an initiative
within the transmission manufacturing area at
the Driveline plant in Turin (Italy) with the aim
of raising employee awareness about their own
health. The activity was designed to evaluate the
cardiovascular risk and body age of the 230 subjects
involved, through health tests and questionnaires.
The medical and nursing staff from the plant were
also involved in the project.
A range of initiatives are implemented at regular
intervals throughout the year at all Latin America
sites in order to promote employee wellness.
Major internal campaigns during 2012 covered
vaccinations, diabetes, glaucoma, hypertension,
oral health, first aid, cancer prevention, healthy
eating and tobacco and smoking control. CNH
in Latin America has introduced the Quality
of Life Week. Over the course of the week, a

188
structure is built to reinforce the importance of optimizing quality of life. Spaces with different themes offer employees
the opportunity to increase their knowledge on health care, sports, relaxing activities, alternative therapies, etc. To
celebrate the end of the week, a CNH Sports Day is organized for employees and their families. Additionally, in Curitiba
(Brazil), employees have the opportunity to practice sports such as soccer, volleyball, basketball and aerobic activities at
the Employees Association. In 2012, 739 employees took part in the initiative. In FPT Industrial plants in Argentina, an
information campaign was launched to show employees how to take better care of themselves and improve their general
health. The campaign was accompanied by a health screening, which checked body mass index, hypertension and glucose
levels. These indicators were monitored by a medical team tasked with working to reduce bad health habits.
In 2012, a range of other activities designed to prevent specific diseases in Italy continued, from the campaign for the
prevention of seasonal flu, to other initiatives aimed at fighting the spread of infectious diseases, with a particular focus on
preventing sexually transmitted diseases (HIV in particular) and promoting personal hygiene. Information campaigns on
HIV and AIDS continued in Latin America, involving 5,670 employees. Flu vaccines were administered in all plants to
employees who requested them, and the initiative was publicized through posters on plant bulletin boards and through
the intranet portal. Information related to the prevention of the seasonal flu virus in 2012 was regularly supplied. In total,
approximately 5,800 doses of the vaccine were administered.
With regard to the prevention of cardiovascular diseases, in 2012, the HealthFactory campaign was launched: a project
GRI-G3.1
aimed at employees and designed to raise awareness and promote the prevention of medical conditions, and totally 2.10, LA8
free of charge. This year at the plant in Brescia (Italy), in partnership with the San Pellegrino di Castiglione delle Stiviere Sustainability Plan
Our commitments on pages 41-42
hospital, HealthFactory has allowed 30% of plant employees to undergo cardiovascular screening. The initiative continues
the work of the CardioFactory project, which was launched in 2010 at the plants in Turin, Suzzara and Rorthais, involving
more than 6,800 employees to date. In Brazil, a new cardiovascular health program called Bate Coração (Heart Beats)
was launched in 2012, involving 59 employees.

dimension
Social
Brazil
CNH AMONG BEST COMPANIES TO WORK FOR
In 2012, CNH was ranked as one of the 150 Best Companies to Work For in Brazil for the seventh time in a row. This forms part of the most important organizational
climate survey in the country, conducted by Editora Abril, one of the largest and most influential media and educational groups in Latin America, in partnership with
the University of Sao Paulo (USP), one of Brazil’s leading higher education institutions, recognized throughout the world in a number of rankings. CNH made it through
a series of stages in order to be included on the list. First, a report was drawn up summarizing various human resources policies and practices in the company, divided
into seven categories: strategy and management, leadership, compensation, career, health, development and corporate citizenship. At the same time, 600 employees
were selected at random by the publisher to answer an online satisfaction questionnaire consisting of 64 questions covering various issues relating to identity, satisfaction
and motivation, learning and development and leadership. In the final stage, a journalist from the publisher visited the company and met a group of employees and the
heads of the Human Resources department. The result reflects the efforts and commitment of all employees at CNH towards making the company one of the most
respected and renowned in Brazil.

189
 Social our people
Dimension

In 2012, Fiat Industrial Group made a tangible contribution to reducing tobacco consumption, with the launch
of the Smoking Cessation project. According to the World Health Organization, tobacco consumption
has become the primary cause of preventable death across the globe: the total number of deaths attributable
to smoking and related diseases, such as cardiovascular disease and chronic obstructive pulmonary disease
(COPD), is destined to increase steadily, above all in developing countries. The pilot project was
launched at the Iveco plant in Suzzara (Italy) with the involvement of workers and their
families, according to a series of criteria approved by the ISS (Italian Health Institute) and the
Italian Society of Tobaccology. The program is designed in several phases, beginning with the
identification of types of smokers through a questionnaire distributed to all employees, and,
subsequently, with the organization of individual and group meetings to encourage cessation and
maintain motivation. In 2013, this initiative will be extended, along with traditional methods, to
some facilities in Italy, and in 2014, the project will be extended across the world through innovative
communication methods, and, subsequently, at some facilities in countries which the World Health
Organization ranks as the highest consumers of tobacco. The CNH plant at Modena (Italy) has
adopted an initiative organized by the USL (local health authority) and the polyclinic in Modena, along
with other local organizations. This project is based around a competition for smokers who live in
the Modena area and who commit to giving up smoking for at least four weeks. The Stop Smoking
Program is a unique program for CNH employees in Brazil. Through weekly meetings with a nurse, a
specific treatment plan is developed to meet individual needs. The program also includes a combination
of medications and psychological treatment designed to maximize the chances of quitting permanently.
In 2012, 79 employees participated: 41 in Curitiba, 5 in Piracicaba, 8 in Sorocaba and 25 in Contagem.

The voice of our stakeholders

The company’s commitment to improving employee health was considered to be positive by participants in the HealthFactory prevention
campaign in Brescia plant (Italy).

Fabio Serafino, R.L.S. (FIM), Employee Safety Representative - Italian Federation of Metalworkers:
“I believe I was the first to voice a positive opinion when the project was presented:
1 - because workers were not selected on the basis of previous consultations or pathologies
2 - because the initiative offers added value in a short amount of time
3 - because it is an initiative which takes into account a wide range of ages and worker categories, from salaried to hourly employees.
Alongside the internal communication campaign, we presented the initiative to employees directly, and met with positive feedback right
from the start. I believe that if we make people aware that, despite the crisis, there is a company that invests in people and is committed
to addressing all issues relating to employees, we can change the company. The program’s positive outcome demonstrates that investing in
employee wellbeing leads to happier, more productive workers and can also lower healthcare expenses”.

190
Initiatives for employees
Fiat Industrial Group attaches special importance to employees and their families, organizing events expressly for them,
such as Family Days, when employees can show their families their place of work, the much anticipated event Children’s
Christmas, and the children’s summer camps which take place at the Verdeblu centers. The Group also rewards the
most deserving students and makes available both integrated health care plans and sports and recreational facilities to
employees and their families.
Iveco is increasingly committed to company welfare activities, designed to improve equilibrium in the professional sphere.
Various initiatives are included as part of the Welfare Iveco project, from laundry services to driving license renewal to the
At the Village Market initiative (see also page 244) and the teleworking pilot project. Of the services launched in 2012, the
laundry service has been renewed, and the driving license renewal initiative has been extended to FPT Industrial. The
former has been available since September, with special prices for employees from the Turin facilities, while the driving
license renewal service, already active for some time at the Turin headquarters, was implemented over the course of
the year at the plants in Brescia and Suzzara (Italy).

Social Health Care Services

Nearly all Group companies participate in supplementary health care plans, which in most cases are insurance based.
Levels of cover vary from country to country, depending on the public health care system, tax and regulatory restrictions,
and local market conditions.
In Italy, in addition to the services provided by the national health system, all Fiat Industrial Group employees and their family
members have access to supplementary health care plans: FASIFIAT for hourly and salaried employees, FASIQ for professionals,
and FISDAF for managers. The three plans were developed on the basis of agreements set out with trade unions.
Two-thirds of expenses covered by the FASIFIAT plan are funded by Fiat Industrial Group and the remaining third by the
employee, who also pays a similar amount for any family members enrolled. If an employee uses public facilities, the plan
reimburses any expenses not covered by the national health system. If an employee uses private facilities, on the other hand,
the plan provides high cover ceilings, with direct payment of expenses incurred at approved health care facilities, and partial
reimbursement in the case of non-approved facilities. Prevention programs with regular check-ups and a maternity package are

dimension
also provided. The FASIFIAT operations center coordinates the availability of over 470 private medical facilities, approximately

Social
10,800 outpatient clinics, diagnostic centers and laboratories, over 80 thousand specialist doctors, health care and social care
providers, and nearly 4,750 approved dentists. The plan also provides an on-call medical service 24 hours a day, 365 days a year.
Operating and management procedures for FASIQ and FISDAF are similar, in many ways, to those of FASIFIAT. FASIQ
provides services through specific insurance coverage according to a model mainly based on direct health care, utilizing
the same network of accredited facilities as FASIFIAT.
FISDAF provides health care services to managers (both working and retired) and to their families, mainly as reimbursements
and direct payments for healthcare expenses and dental treatment.
In 2012, the healthcare plans provided services to just under ten thousand employees(1): FASIFIAT to around 6,500
salaried and hourly employees, FASIQ to around 2,800 professionals, and FISDAF to more than 400 managers. From 1 GRI-G3.1
LA8
January 2013 FASIFIAT and FASIQ will be combined into a single plan, called FASIF, which aims to provide all Group hourly Sustainability Plan
and salaried employees and professionals in Italy with check-ups and Long Term Care cover. Our commitments on page 42
In addition, in 2012, the new Fiat Sepin Diagnostic Center was opened: three thousand square meters dedicated to
employee health, with laboratories, thirty examination and ultrasound rooms, and a focus on occupational health exams
and sports medicine.

(1)
This figure does not take into account any relatives with the right to these services. 191
 Social our people
Dimension

Services for children and teens

Every Christmas, Fiat Industrial Group organizes the Children’s Christmas party, where children under 11 each receive
a gift. In 2011, parents were able to choose a gift for their children, online if preferred. The initiative was a great
success, with a wide selection of presents available.
During summer 2012, children aged 8 to 16 were able to choose from an extensive range of summer camps in
Italy, organized through Vacanze Verdeblu and Juventus Summer Camp. All of these camps are located in alpine or
seaside settings of great beauty and environmental interest. The centers are organized by age (junior villages for 8 to
12 years and senior for 13 to 16) and offer children opportunities to play sports and use their creativity in artistic and
theatrical workshops, while also learning how to interact with others in group activities. Juventus Summer Camps are
specifically aimed at those wanting to hone their football skills while on vacation: expert trainers help each child to
improve tactics and technical skills. More than 3,200 children took part during 2012. Again in 2012, employees were
able to enroll their children via a dedicated website, and to follow them during their stay away from home by means
of an online diary, updated daily.
Contributions are calculated according to employee grade and the number of participating children at the camps.
In 2012, for the first time, children aged 18 and over with the required skills were able to put themselves forward
for selection for various roles: organizers, sports instructors, workshop assistants, catering and general assistants,
providing them with an excellent opportunity to experience a working environment, perhaps for the first time. Along
with trips away from home, Sisport centers offer recreational activities, water sports and the use of sports facilities
during the summer months.

192
Educational services
Through the Grants and Scholarships program, the children of Fiat Industrial Group employees who have
achieved the best educational results are entitled to receive study scholarships.
The program is open to students who have a high-school cer tificate, a university diploma or university degree.
The awards policy is overseen by the Fiat Grants & Scholarships Committee, which implements this policy through
regional committees, which in turn have contacts in all countries involved. In 2012, the committee was headed by
John Elkann, and its members include Fiat Industrial Group’s Head of Human Resources, academics and researchers.
The initiative covers all countries where the Group has a significant presence, and reflects its commitment to
promoting growth and development oppor tunities for young talent in an increasingly globalized marketplace.
The awards policy was reviewed in 2012, reducing the overall number while increasing the value of each award
made. In 2012, a total of 174 grants and scholarships totaling approximately €310 thousand were awarded, with an
average of approximately €1,800 per award, as opposed to €900 in 2011.

Talent attraction
Fiat Industrial Group worldwide (no.)
2012 2011
New graduates recruited 439 484
Traineeships 2,921 2,293
Scholarships 174 487
Scholarships (€) 307,707 438,054

Highlights
NiÑ@s de mejor promedio
In 2012, at its plant in Queretaro (Mexico), CNH again

dimension
sponsored an awards program for employees’ children.

Social
Children ranging from elementary school to high
school age, and achieving an average score of 9 out
of 10, were admitted into the program. 325 students
received awards in 2012, with each participant receiving
a school kit, two tickets for the Six Flags amusement
park (for one child plus accompanying adult), inclusive of
lunch and return journey from Queretaro to Mexico City.
This initiative was a great success, helping the children of
Queretaro employees to focus on their studies and enjoy
positive feedback from the company.

193
 Social our people
Dimension

Recreation and sports

Sport brings people together and helps them to maintain a healthy lifestyle; for this reason, the Group encourages its
employees and their families to participate in sporting activities.
In 2012, for example, the CNH for Fitness project saw sixty employees from the CNH facilities in Modena and San Matteo
participate in a day devoted to wellbeing at Modena sports center, where six specialized instructors led sessions in
aerobic boxing, accompanied by music. Additionally, through Sisport (a Fiat Group subsidiary), the Group encourages
employees and their families, as well as people outside the company, to participate in sport, whether amateur or
competitive, in well-equipped facilities and at a reasonable price. The three sports centers run by Sisport are located
near the Group’s main Italian plants in Turin, with 200 thousand square meters of facilities used by approximately ten
thousand members and accessed over 500 thousand times a year. Each center provides a range of sports for different
age groups and abilities, with coaching from highly qualified instructors. The centers are equipped with running tracks,
gyms, swimming pools and tennis courts, with large areas dedicated to athletics, fitness (walking and running), the latest
water sports (aquabike, aquapower and diving), tennis and canoeing. Sisport, registered with the Società Sportive Storiche,
is particularly committed to introducing children and young people from 3 to 16 years to sports, and, in partnership
with certified sports instructors, offers a vast range of activities, including swimming, water sports, tennis, volleyball,
basketball, athletics and canoeing. Sisport also excels in the field of competitive sports, achieving impressive results both
nationally and internationally. Every year, Sisport also organizes the Trofeo Agnelli, a contest launched in 1928, which
includes all Fiat Industrial and Fiat Group companies. In 2012, the contest saw more than 2,500 participants across Italy
take part in eighteen sporting categories.

194
Industrial relations
In 2012, Fiat Industrial Group continued to work with trade unions and employee representatives to reach consensus-
based solutions for managing diverse market conditions. These were characterized by difficult and enduring economic
circumstances in Europe that affected Iveco and the CNH Construction Equipment businesses in several countries, as well as
by weaker demand for Iveco products in Latin America; conversely, conditions were favorable for the agricultural businesses
overall and for the construction equipment business in North America due to a modest recovery in the industry.
FPT Industrial felt the effects of the changing market conditions through the fluctuations in production levels experienced
by its customers, both inside and outside the Fiat Industrial Group, with the level of impact varying by country and by
business line. During the year, despite the changing market conditions, the Group was able to transform more than 1,200
contracts from fixed-term to unlimited-term. In addition, intensive collective bargaining took place at various levels,
resulting in agreements being reached with trade-unions on, among other things, pay and employment conditions in the
various countries where Group companies operate.

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GRI-G3.1
HR5

195
 Social Our people
Dimension

Social dialogue and collective bargaining

Fiat Industrial Group qualifies as a Community-scale group of undertakings, and is therefore subject to regulations
designed to improve employees’ rights to information and consultation through the establishment of a European
Works Council (EWC). In November 2012, members of the Fiat Industrial Group Special Negotiating Body (SNB) (the
composition of which was still under dispute) participated in a training course provided by the European Trade Union
Institute (ETUI) as agreed at a meeting on 16 December 2011. During this course attendees learn about the role and tasks
of European Works Councils, in accordance with
the Directive 2009/38/EC. Shortly before the end
of the year, the company was obliged to postpone
the first negotiation meeting between Group
management and the SNB, scheduled for 23
January 2013. This was due to two SNB members
declining the invitation, while IndustriAll (the
European Union of Metal, Chemical and Textiles
workers) withdrew the availability of the expert
nominated by the SNB in light of Fiom being
excluded from designating representatives to the
Special Negotiating Body.
A few days later Fiom-Cgil filed a lawsuit against Fiat
Industrial Group asserting that its representative
was unlawfully excluded from the EWC Special
Negotiating Body, and that this action constituted
anti-union behavior. The first hearing on this claim
took place in February 2013.
In Italy, dialogue continued following the signing
of the Collective Labor Agreement (CLA) of 13
December 2011, in force from 1 January 2012,
which set new regulations for both employment
relations and means for addressing production
needs. Various solutions have been found from
plant to plant by applying the more flexible system
of shifts and working hours put in place by the new
CLA, thereby improving the Company’s ability to
respond to changes in production requirements.
Fiom-Cgil, the only Union which of its own free choice elected not to sign the CLA, has filed 16 lawsuits over the year
GRI-G3.1 against Fiat Industrial Group companies across Italy, claiming anti-union behavior aimed at its exclusion from representation
LA4, LA9, HR5
rights. Specifically, Fiom claims entitlement, in addition to the rights granted to all the trade-unions and employees with
regard to their freedom to act, to those rights which Italian Law n. 300/1970 (also known as the Workers’ Statute) only
accords to those unions who have signed the CLA applied in the Company.
Of the 16 lawsuits filed by Fiom, 12, relating to plants/sites with a total workforce of approximately 12,400 employees
as at 31 December 2012, have been dismissed (one of these has been settled because the union did not appeal), one

196
has yet to be heard and one is still pending, as the
issue has been referred to the Constitutional Court
to verify the case under constitutional law. Two Fiom
claims have been upheld: these rulings, against which
the Company has filed an appeal, relate to the Officine
Brennero S.p.A Verona and Trento sites, small entities
with a total workforce of about 130 employees.
Of the eight appeals heard in 2012, two Fiom claims
were dismissed, two were suspended pending hearing
before the Constitutional Court (with responsibility
for any resumption in proceedings resting with the
parties according to the ruling), whilst four cases were
referred to the Constitutional court.
During the 2012 Fiom also lodged separate complaints
against twelve Group sites/plants for anti-union
behavior, in this case for failing to honor the automatic
deduction of dues from 1 January 2012. Group
companies had indeed suspended such deductions as
Fiom is not a signatory trade-union of the collective
labor agreement applied by all Group companies.
Of the twelve claims, nine were upheld, two were
dismissed and one was upheld with the proviso that
Fiom make a payment to the company of €2 per month
for each deduction, an order which was also confirmed
by the appeal ruling.
Collective bargaining agreements cover 79%(1) of

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Social
the Group workforce worldwide. In Italy, all Group
employees are covered by such agreements. Specifically,
as of 1 January 2012, a collective labor agreement applies
to managers of both Fiat Industrial Group and Fiat Group,
valid for two years and signed on 23 December 2011
with the national union of managers (Federmanager).
This sets the minimum wage guarantee and the general
regulatory conditions for employees in this category.
The Collective Labor Agreement of 13 December 2011 applies to all other employees as of 1 January 2012. As this
agreement, signed with Fim-Cisl, Uilm-Uil, UGL Metalmeccanici, Fismic and Associazione Quadri and Capi Fiat, was
valid for one year, negotiations for its renewal began on 11 October 2012. During the first meeting, an agreement was
signed introducing a basic health care plan for all Fiat Group and Fiat Industrial Group employees in Italy, to be funded
exclusively by the Company. The plan covers long-term care in the case of loss of independence, and specific screenings
and tests for cardiovascular diseases and metabolic disorders. As of 31 January 2013, the negotiations for renewing the
CLA are still ongoing.

(1)
Data are based on mapping of 98.8% of the full scope of Fiat Industrial Group worldwide. 197
 Social Our people
Dimension

Outside Italy, approximately 72% of employees are covered by collective bargaining agreements. This is an average
figure based on local practices and regulations that vary from country to country. In European Union member states,
for instance, 99% of Group employees are covered by collective bargaining agreements, while in Central and South
America the figure is 95%. The situation differs in the United States, where out of approximately 10,300 employees,
collective bargaining agreements cover just over two thousand personnel, in sites and/or plants with trade-union
representation. However, formal policies relating to certain collective aspects of the employment relationship (e.g.
working hours, internal policies and procedures, benefits, etc.) apply to almost all employees of Group companies
where there is no trade-union representation. Collective bargaining takes place at different levels and using procedures
that vary according to local laws and practices.
In 2012, Fiat Industrial Group signed a total of two hundred(1) agreements worldwide at either company or plant level,
fifteen of which include agreed provisions on health and safety matters(2).
The main wage agreements signed in 2012 at company/plant level include:
n agreements reached through the annual negotiations in France, which resulted in average salary increases of around

2.5%; Iveco and CNH have also negotiated criteria for the 2012 profit sharing agreement
n in Iveco Czech Republic, a collective agreement between the company and the trade-unions covering wages and

regulations
n agreements in Brazil for pay increases linked to growth in the domestic economy and in line with salary increases within

the country’s industrial sector, and further agreements on one-off bonuses.

In Germany the agreement was reached for renewal of the metalworkers’ contract, applied by most Group companies in
the country, setting salary increases at 4.3% and effective from May 2012 for a period of 13 months.

Main issues covered under the agreements

Fiat Industrial Group worldwide

Restructuring
4%

Operating issues Health and safety

40% 4%
Stress management
1%

Equal opportunities
6%

Training
Pay issues 9%
27%
Other
9%

(1)
Includes eleven collective bargaining agreements with trade union organizations in Italy at Group level, which qualify as company agreements but are signed by Fiat
Industrial S.p.A. in the name, and on behalf, of several Group companies.
198 There is no correlation between the number of agreements and the number of issues covered, as each agreement may deal with several issues.
(2)
Management of production levels
In 2012, plant stoppages continued to be necessary due to fluctuations in production volumes in several countries. In
Italy, FPT Industrial made more temporary layoffs during the year, whilst CNH and Iveco made less use of this mechanism
compared to 2011. At the Iveco plant in Brescia, the agreement allowing for a reduction in hours worked per week for
all the plant workers – in accordance with the Solidarity Contract legislation – was extended for a further year until 21
August 2013, through an agreement with the signatory unions of the CLA.
Production stoppages through temporary layoff benefit schemes increased in France versus 2011, mainly for FPT Industrial,
and in Germany for the Iveco plant in Ulm. In Spain, the utilization of temporary layoffs was also quite extensive in 2012,
although, due to the transfer of production from Ulm, stoppages ceased in the later part of the year at the Madrid plant.
In Latin America, the number of temporary workers was reduced at Iveco, while extensive use of overtime was employed
by FPT Industrial in Brazil, mainly linked to the transfer of the Cursor and NEF engines to Cordoba.
Meanwhile, flexible work-time agreements were applied to meet fluctuations in production requirements at several
Iveco plants (in Australia, Argentina, China, Czech Republic and Venezuela), at the FPT Industrial plant in China and at
the CNH plant in Poland. In North America, the overall favorable market conditions for the agricultural segment and the
CE industry’s recovery, despite being modest, led to increased demand for overtime and also had a favorable impact on
employment levels.

Restructuring and reorganization

In Italy, a series of meetings took place at the Ministry for Economic Development during which the working group, set
up in 2011, sought to set out feasible and effective investment plans for potential investors for the reindustrialization of
the Irisbus plant at Valle Ufita (also known as Flumeri plant) in Italy, with a view to minimizing any social impact resulting
from its closure. On 5 December 2012, during question time in the Camera dei Deputati (the lower house of the Italian
Parliament), the Minister for Economic Development confirmed that: “The commitment to finding reindustrialization
solutions was also supported during a meeting at the Ministry on 16 January [2012]. At the same meeting, Fiat Industrial
Group undertook to set up an internal task force to evaluate any expressions of interest received. The company also
stated its readiness to take any measures which might facilitate the establishment of new industry at the site, including

dimension
Social
working with potential competitors from within the automotive industry”. Regarding possible investors, the Minister
stated: “Since January, some expressions of interest have been received but most of these, following an initial but careful
examination, have proved unfeasible. An expression of interest from an Italian company is currently under examination.
It would however be premature to express an opinion on the feasibility of this project given that further assessment is
still ongoing, both from an industrial and financial point of view. In the meantime, therefore, the search continues for
investors interested in the site, with priority given to those proposals intending to retain Flumeri as an industrial plant. In
any case, we will also give due consideration to proposals from companies operating in other sectors and equally able to
guarantee full job security. As part of a serious investment plan, the Ministry will make available all qualifying incentives to
any interested investors to facilitate the establishment of new industry at the Irisbus site. Finally, I wish to confirm that we GRI-G3.1
SO9, SO10
will reopen dialogue at the beginning of 2013 without delay”.
In 2012, workers benefited from the extraordinary temporary layoff benefit scheme due to crisis situations resulting from
the closure of a business, under the agreement signed at the Ministry of Labor on 14 December 2011. During the year,
the Group activated the plan to manage redundancies as set out in the agreement: specifically, as of 31 December 2012,
19.6% of those employed at 31 December of the previous year would become eligible for retirement during the period

199
 Social our people
Dimension

covered by “mobilità” (a government benefit scheme applicable for a duration of four years to employees affected by
collective redundancies), while 20.5% were permanently transferred or temporarily seconded to other plants/sites within
Fiat Industrial Group.
With regards to the CNH Imola Plant (Italy), the working group set up in 2009 in collaboration with the Emilia Romagna
Region continued its activities at the Ministry of Economic Development during 2012. On 21 April 2011, an agreement
was reached with the Ministry of Labor for the application of extraordinary temporary layoff benefits for a period of
24 months, for crisis situations resulting in the closure of a business, to take effect from 1 May 2011. For the second
12 month period (i.e. from 1 May 2012 up to 30 April 2013), benefits were awarded following the Group’s activation of the
plan to manage redundancies for the first year, as set out in the agreement. From the announcement of the rationalization
plan for the CNH Construction Equipment business in Italy until 31 December 2012, approximately 370 employees
from the Imola plant (Italy) were relocated to other Group plants, or otherwise found solutions outside the Group.
During 2012, 42 workers benefited from solutions provided under the plan to manage redundancies covered by the April 21st
agreement. As of 31 December 2012, 80 personnel were still employed by CNH, a figure which will continue to fall during
January 2013 following the agreed transfer of nine workers to other CNH plants in Italy.

200
In May 2012 Iveco announced a restructuring plan for its
manufacturing footprint in Europe, focused on improving
efficiency and competitiveness by creating a fire-fighting
center of excellence in Ulm (Germany), and in order to
address the structural underutilization and fragmentation
of Iveco resources in this business segment. Production
capacity at other Iveco fire-fighting equipment plants would
be progressively relocated to Ulm. Within this framework,
Iveco has announced the closure of its plants at Graz
(Austria), Chambéry (France) and Goerlitz and Weisweil
(Germany). Because of the enduring difficult market
conditions in the European truck market, the capacity of
the Ulm Heavy Commercial Vehicles (HCV) plant was
underutilized. As a result of this unsustainable situation,
Iveco reorganized HCV production in Europe, with Ulm
plant capacity being transferred to the Iveco Madrid plant
as of September.
In order to minimize the social impact, agreements have
been signed with trade-unions/employee representatives on
social and restructuring plans for those locations affected by
closure/downsizing, following the applicable regulations and
procedures for each Country and in compliance with the law.
On 31 July the management and the works council of
Iveco Magirus AG reached an agreement on the future
of the entire Ulm site. This agreement includes a socially
compatible solution for all employees who will be affected by

dimension
the reorganization of the HCV plant in Ulm (approximately

Social
500), with retirement and pre-retirement measures
combined with voluntary exits supported by severance
packages defined in the agreement. The research and
development department and testing areas will remain in
Ulm and retain the know-how recognized as crucial to the
technological development of commercial and firefighting
vehicles at Iveco. Furthermore, Iveco will establish a center
of excellence equipped with modern production facilities for
the company’s firefighting business in Ulm. The agreement
signed safeguards the company’s remaining activities in Ulm
for the next five years, until the end of 2017 (493 jobs for
Commercial Vehicles and 941 jobs for Fire Fighting).
Also on 31 July, a social plan was signed with the Works
Council for the employees who will be affected by the

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 Social our people
Dimension

reorganization of production at Iveco Magirus Brandschutztechnik GmbH in Graz (Austria). The agreement sets out
support for employees relocating to Ulm, and redundancy packages for those terminating their contracts with the company
by mutual consent. Standard production will be gradually relocated to the Iveco Magirus plant in Ulm, but to satisfy
Austria’s highly sophisticated customer-base, a range of activities will remain in the country, including final customization
of the best-in-class customer-oriented interior parts and design, as well as sales, after-sales and customer service.
At the Iveco Magirus Camiva plant in Chambéry negotiations have been completed with the signature of a method
agreement on 29 October 2012. About 130 employees will be affected by the plant closure, whilst 42 employees will
form part of the commercial and services center of excellence retained at the site. Social Plan provisions foresee the
possibility for the redundant employees to transfer to other locations in France where Group companies operate. More
than 260 positions have been made available of which 45 at the Venissieux – Saint Priest site (around 100 kilometers
from Chambéry) and 110 at the Annonay site (around 160 kilometers from Chambéry). For those not transferring,
the plan envisages voluntary exits and, as a last resort, the unilateral termination of employment contracts. Specific
measures, such as support to relocation, outplacement, training, redundancy packages etc., have been defined and will be
applied in accordance with the plan’s provisions. Additionally, on 20 November 2012 Iveco Magirus Brandschutztechnik

202
GmbH and the Works Council signed an agreement on reconciliation of interest and a social plan for the closure of the
Weisweil plant, effectively concluding negotiations. The plan agreed for this site includes the option for all employees to
be transferred to the Ulm plant. In addition, for those choosing not to transfer, it encompasses severance payments and
the installment of an interim employment agency which will help them to find new jobs.
For the Göerlitz plant, a management buy-out solution was sought and the agreement signed at the end of November,
with change in ownership effective from 1 January 2013; as a result, all the employees (approximately 80) will continue
working at the Görlitz plant. No significant restructuring or reorganization initiatives were implemented in other countries
during the year.

Labor unrest
Labor unrest in Italy was low (about 15% of that registered in 2011, in terms of hours of work lost). The overall levels of labor
unrest during the year in countries outside Italy were negligible. Specific actions have been taken in Germany and France
at the sites affected by the Iveco restructuring plan, before reaching agreements on management restructuring. National
general strikes have also taken place in various countries (mainly Spain, France and Belgium) in protest against Government
social, economic and fiscal policies, with high levels of participation from Fiat Industrial workers in some countries.

Freedom of association and representative bodies

Under the Fiat Industrial Group code of conduct, Group employees are entitled to join a trade-union in compliance with
local law and the regulations of the various trade-union organizations.
Fiat Industrial Group recognizes and respects the right of its employees to be represented by trade unions or other
representatives established in accordance with local applicable legislation and practice.
In 2012 a survey on unionization was carried out in thirteen countries which comprised, at the time the data was
collected, around 67% of the total Group workforce. Freedom of association is regulated by country-specific legislation. In
certain countries (such as France and Germany) surveys cannot be conducted on the level of trade-union representation
because union membership is considered an employee’s personal and private choice and, as such, is not communicated
to the employer.

dimension
Social
Union membership
Fiat Industrial Group worldwide at 31 October 2012 (%)
Union Non-union Mapping
membership membership by country
Argentina 74.18 25.82 85
Australia 12.64 87.36 100
Austria 66.39 33.61 80
Belgium 81.51 18.49 100
Canada 3.08 96.92 100
Czech Republic 41.89 58.11 100
Italy(1) 45.10 54.90 100
Mexico 81.48 18.52 100
Poland 75.22 24.78 100
Spain 63.34 36.66 100
United Kingdom 62.65 37.35 99
United States 20.25 79.75 100
Venezuela 67.99 32.01 100

(1)
-Data at 31 December 2012. 203
 Social our people
Dimension

Representative bodies, normally elected by workers at the plant concerned, have the right to be informed and/or consulted
and/or enter into negotiation on issues which, as defined in law or by applicable collective agreements, may include health
and safety in the workplace, wages and benefits, organizational issues (working hours, shifts, collective vacation, etc.),
training, equal opportunities, company restructuring, collective redundancy and transfer of undertakings.
In the countries of the European Union, the establishment of employee representative bodies is envisaged for companies
and/or sites where employee numbers exceed the minimum limits specified by national laws or procedures. In North
America, these organizations are only present at sites where a trade union is already established. A survey performed on
31 October 2012, on a cross-section of 15 countries outside the two regions mentioned above, showed that in eleven
of these countries (Australia, Argentina, Brazil, China, Ethiopia, India, Mexico, Norway, South Africa, Switzerland and
Venezuela) employee representative bodies are present. No employee representative bodies were present at Group
companies in the four remaining countries, representing 1% of the Group’s global workforce at the time of the survey.

Joint committees
In October 2012, a survey conducted on 97.2% of Group employees outside Italy showed that more than 71.3% are
represented by occupational health and safety committees (some of which also cover stress management) made up of
company and worker representatives. Other joint committees with responsibility for equal opportunities, training and
pay were found to represent, respectively, 21%, 10.7% and 15.9% of employees covered by the survey. At some sites, joint
committees have also been set up to cover various issues such as management of apprenticeships, social issues relating to
single workers, cafeterias, transportation, etc., representing 20.1% of the employees covered by the survey.

Distribution of joint committees by type (excluding Italy)

Fiat Industrial Group(1)

Equal opportunities
12%

Training
9%
Occupational health and safety
Pay 48%
11%

Other
20%

GRI-G3.1
LA6, LA9
Health and safety
Improving the health and safety of workers is one of the areas in which the Group continually works with dedicated
employee representative bodies (e.g., occupational health and safety committees, worker safety representatives and
works councils), which are constituted according to applicable legislation and collective agreements that apply in each
country where Fiat Industrial Group is present. In Italy specifically, the new collective labor agreement in force from

204 (1)
Data refers to the countries covered by the survey.
1 January 2012 ensures greater access for worker safety representatives than is required by law. It also provides for
the establishment of occupational health and safety committees at each plant, consisting of company representatives
and worker safety representatives. The committee is the natural counterpart at the company and plant levels of the
Organismo Paritetico Health and Safety (OPHS), with which it collaborates on common goals for the implementation
of an ongoing system of education on occupational health and safety. The OPHS is a joint, bilateral body covering both
Fiat Group and Fiat Industrial Group, responsible for occupational health and safety matters, including mandatory and
non-mandatory training on such issues (see also pages 176-177). The new collective labor agreement also establishes
Production Systems and Organization Committees at the plant and/or production unit level, with the aim of facilitating
the implementation of initiatives to achieve shared goals in fields such as optimizing work station ergonomics.

Equal opportunities
In Italy, the joint committees envisaged by the new collective labor agreement in force from 1 January 2012 include the
Equal Opportunities Commission for each Group company, made up of company and employee representatives.

dimension
Social
205
 Dealer and
service network
Fiat Industrial Group is committed to ongoing investment in the dealer and service
network, with a view to offering customers an expert service. With this in mind, the
Group believes that training employees to understand and respond appropriately
to customer needs is essential.

206
 Dealer SOCIAL
and service DIMENSION
network

Building the skills and know-how of all dealership personnel is of fundamental importance. Every year, the Group designs
and runs special training programs for technicians, sales people and after-sales personnel, tailored to Group strategies and
requirements. These training courses focus on developing managerial skills and technical expertise, as well as promoting
a corporate identity built on excellence.

Training for the network

Each Group company has a dedicated unit for developing courses tailored to meet the training needs of the dealer
and service network. CNH, for example, has created Unetversity, a professional training organization which aims to
enhance the knowledge and competence of its dealers. It is made up of 160 professionals and 32 training centers across
the world, and offers a catalogue of around three thousand courses, available in various languages, and customized
according to the specific needs of dealership personnel. In 2012, CNH Unetversity delivered 1,134,047 training hours,
including online and instructor-led courses. Investment in dealer network training totaled €19.5 million in 2012.
Unetversity’s training approach contributes to dealer network business growth, providing customized solutions that reflect
the current market environment and offering a wide range of training activities, based on both traditional classroom-based
approaches and online. In 2012, Unetversity further developed and extended training opportunities, making significant
improvements in two areas:
n extension of the training program with the addition of new materials

n increase in training coverage through online training worldwide, with strengthened training organization presence in

growing regions.
Iveco’s Commercial & Technical Training with its own Unetversity offers a wide range of courses both for sales forces
and technical personnel, and promotes respect for the environment, disseminating education material on emission-reducing

dimension
Social
207
 Social Dealer
Dimension and service
network

technology. Training is provided at 22 Training Centers, spread across all continents, with a base of more than eighty
staff. All of the courses held by Commercial & Technical Training are available in the main European languages. Evolution
of products and technology necessitates ongoing training of service and dealer network personnel. For salespeople, in-
depth knowledge of products along with expertise in commercial techniques increases professional skill and translates into
transparency in terms of client offering. It also helps personnel to gain an awareness of the way the success of the product
can affect their business.
In 2012, Iveco provided more than 46 thousand hours of training to dealership personnel and 107 thousand to service
network personnel. During training courses, which covered almost 154 thousand hours, a range of themes were addressed,
including those relating to sustainability.
For FPT Industrial too, dealership and service network training is a key factor in strengthening the technical and commercial
skills of retailers and updating salespeople on product innovations. The Iveco Unetversity training initiatives rolled out
for the FPT Industrial network have followed technological advances over the years, keeping dealers and workshops
informed on the installation, maintenance and repair processes for various products, from mechanical and electric engines
to after-treatment systems. The dealer training sessions are planned centrally and can be provided either at the main
FPT Industrial headquarters, at the dealership or at the end customer premises, when engines need a specific type of
installation. Technical training is delivered in five languages (Italian, English, French, Spanish, and German) and is supported
by training books that are constantly updated and available online for distance learning.
With a view to promoting ongoing improvements in customer satisfaction and as part of the quality certification
process, when sales management takes place through a dealer, the customer is provided with a feedback questionnaire.
Analysis of the results and extraction of statistics from these contribute to the improvement of the sales process and the
understanding of the needs of end users.

Sustainability Plan
Our commitments on pages 42-43

208
 Highlights
Customer & Commercial Excellence School
Within the FPT Industrial strategic training plan for 2011-2013, the Customer & Commercial Excellence School project is of particular
note: this is a training pathway aimed at sales representatives, Key Account managers and Marketing managers, carried out in
collaboration with SDA Bocconi, Italian university in Milan. This pathway was created with the intention of strengthening the client-
focused culture within the company, increasing commercial skills within the FPT Industrial network and developing comparison
and benchmarking strategies. Following an evaluation of the skills of several Sales & Marketing employees, a training pathway was
established, composed of eight classroom-based modules on essential know-how, two study tours (to CNH and Bosch sites) and
three project workshops on cases with particular relevance to the company.

On-Site training
In 2012, Unetversity at both CNH and Iveco took further steps to decentralize its training footprint, extending the
effective use of structures located in various countries and increasing online training delivery. In North America, the CNH
training footprint of six CNH-owned training centers was completed, with nine partner colleges at additional training
locations in proximity to the dealer network. These efforts have saved seven million kilometres of travel for participants in
North America, in addition to 5.5 million kilometres worldwide saved through use of online training solutions. In Europe,
two partnership schools in the Netherlands and in Denmark have saved 1.5 million kilometres of travel, adding to the
CNH training center network present in all major European countries.
Iveco training is decentralizing further by completing two new Training Centers in China and the Middle East.
The training organization was expanded in order to meet growing training needs in some developing regions, including
Latin America. The training team reinforced its structure in this region and included courses in additional languages in the
training offer. Moreover, following a preliminary study in 2011 regarding the implementation of a new, enhanced Learning

dimension
Social
Management System (LMS), Fiat Industrial Group is now finalizing plans for the roll out of the new LMS in 2013.
The new project is focused on improving system functionality in terms of user experience and learning process management,
as well as on extending global reach. With the introduction of the new Learning Management System, Fiat Industrial
Group hopes to optimize training participation, further reduce training-related travel and expand its training offering in
developing regions. In 2012, 196 thousand hours of online training were delivered for CNH salespeople and aftersales
personnel and 11 thousand hours for Iveco sales and service network. In addition to the implementation of learning
pathways and classroom-based training, Iveco also continued to provide distance learning courses, supported by leading-
edge Learning Management System technology. Furthermore, since 2012, content is also available on tablet computers,
GRI-G3.1
thanks to the development of new product training apps dedicated to network personnel. The contents of the new 2.10
products, new technologies and the approach to the customer within the scope of the Total Cost of Ownership (TCO) Sustainability Plan
Our commitments on pages 42-43
summarizes the philosophy through which Iveco promotes and distributes information to technicians and salespeople on
Glossary
themes including commitment to safety, reduction of emissions and individual wellbeing. TCO
Finally, each Group sector constantly monitors the quantitative outcomes of the training it provides to the network, using
a dedicated system to assess course satisfaction levels and measure learning levels.

209
 Social Dealer
Dimension and service
network

Training on safety and the environment

Significant attention is given in training to the enhancement of dealer and customer awareness of environmental and safety-
related features in CNH and Iveco products. CNH and Iveco training programs include an overview of brand environmental
strategy in line with the recent Tier 4 and Euro VI regulations, along with related technical solutions applied to the products,
field demonstrations and training on proper machine use to increase efficiency, reduce fuel consumption and optimize safety.
The CNH training organization is also dedicated to improving customer driving skills, with respect to both safety and
environment. In 2012, ten thousand hours of training were delivered to construction equipment operators and 19 thousand
hours to agricultural equipment operations in Latin America. During courses for operators of sugar cane harvesters in
Sustainability Plan Brazil, 4,154 participants were trained on topics related to safety and sustainable driving techniques. Particular focus was
Our commitments on page 43
Glossary placed on avoiding machine fluid leaks and soil contamination during operation, and on maximizing equipment efficiency
Euro VI, Tier while minimizing fuel consumption. Training programs are designed to facilitate the introduction of new technicians
into the dealer network. In collaboration with local governments, CNH organizes training for young technicians, giving
them the skills necessary to find work at company dealerships. Dealers are also involved in these initiatives, making a
commitment to hire the technicians trained by CNH.

210
In 2012, Iveco dedicated significant efforts to marketing products with a low environmental impact. Network
salespeople were given the opportunity to examine recent studies regarding the use of natural gas in vehicles and More than 6,800
fueling systems. They were able to consider certain issues in-depth, such as the reduction of emissions, noise pollution
and waste and the maximization of vehicle payload, with a view both to satisfying customers and addressing the needs
hours of Driver Training
of the community.
Iveco Driver Training was also implemented in major European markets; these are courses on driving economically, with a
particular focus on drivers of heavy vehicles. Driver Training courses were run in all major markets by a team of specialist
demo drivers, with a total of 6,824 hours of assisted driving. In 2012, the Stralis Hi-Way was launched into the market.
This vehicle was the overall winner of the prestigious Truck of the Year 2013, and provides drivers with innovative devices that
constantly control all vehicle functions, from driving stability to fuel consumption, while directing and monitoring driver behavior.
At the same time, a specific course was rolled out to give users a comprehensive introduction to the devices on board and
their use. More than 1,500 technicians took part in this.

Service quality standards

CNH’s dealer networks comply with the customer service and quality standards that are implemented through specific
dealer development programs. The main objective of these is to drive best-in-class dealer support for customers and
to aid in building a stronger and more competitive dealer network, thus contributing to dealers’ business growth.
Competitiveness, organizational structure, financial sustainability, as well as customer support and satisfaction are
examined across the following key areas of business:
n visual Identity

n facilities and operations

n administration and marketing

n sales

n parts

dimension
n service.

Social
The tracking of dealer quality standard programs is managed by CNH via AssessNet-NAT, a dedicated system.
This system has thus far been used in Europe and in North America, with extension further afield planned for 2013
and the following years. The AssessNet-NAT software is used to manage CNH brands’ dealer standard information,
and allows each CNH brand to continually monitor the actual compliance of its dealers with the required qualitative
standards, while managing the measures planned to meet these standards.
Case IH Pinnacle Excellence, New Holland Agriculture President’s Club, Blue Ribbon and Red Excellence are some of the
programs developed based on global market strategies, customized to respond to precise local and regional requirements.
Case IH’s Pinnacle Excellence Program strives to improve the quality and competitiveness of Case IH dealers’ brand
representation, performance, service and product support to customers. For Pinnacle Excellence, Case IH performed
an overall assessment of the strengths of its own customer support services, those of its dealers, and those of dealers in
comparable industries, with a view to identifying industry best practices. The results of this comprehensive survey were
then used to design the Pinnacle Excellence Program, with the goal of driving best-in-class dealer brand representation
and product support for customers. Better dealer brand representation and customer service can greatly improve both
competitiveness and customer experience. This provides the growth mechanism for both the dealers’ business profitability

211
 Social Dealer
Dimension and service
network

and the brand’s performance. In February 2011, in North America, Case IH introduced the Pinnacle Excellence Program
to 700 dealers, employing 25 best practice with measurable guidelines, assessing sales, marketing, operations and parts
and service functions, and taking capabilities snapshots of dealerships. Several critical dealer training programs have been
developed and implemented to support Pinnacle Excellence:
n the Sales Excellence Program, a comprehensive training scheme which helps dealers to define a professional and

organized sales process and to grow business

n Parts and Service Profitability Program, an advanced training workshop focused on increasing dealership fixed level of

operations profitability
n Financial Leadership For Growth Program, a training workshop for dealer financial stakeholders and principals to help

them to examine and plan their dealer performance and growth objectives
n Business Management Services, a web-based program that collects and analyzes dealers’ monthly key financial data

directly from their dealer management systems

n Customer Satisfaction Measurement Program, a turn-key service that measures customer experiences and satisfaction

with dealership purchases, new machine operation and warranty-based service repairs.
The New Holland Dealer Standards program was re-established in 2010, and is designed to set out guidelines and
measures that increase the dealer’s customer base and their satisfaction with New Holland products and services.
The standards selected reflect directly the brand’s priorities. The individual standards themselves are not intended
to be seen as the sole criteria for excellence, but should be considered instead as the cornerstones that set the
framework within which dealers should seek to further progress. Within the Dealer Standards program, there are
two levels of achievement: the President’s Club and the Blue Ribbon. While the Blue Ribbon level sets the
minimum expectation for dealer standards, the President’s Club level is designed to recognize dealers who reach a
higher Service Excellence level, as well achieving a certain overall goods target. The New Holland Dealer Standards
program will continue in 2013 with improved guidelines and increased targets to drive dealers to strive for excellence
in the market and the community.
In Europe, New Holland Agriculture’s business activities are focused on the customer. The New Holland brand and its
dealers are committed to sustaining a lasting relationship based on trust and confidence, and the brand considers their
dealers as business partners. The Top Partner Program promotes the continuous development of all involved parties
and helps to measure dealer competencies, as well as identifying areas for improvement, giving guidance on how this
can be achieved. This is based on three main principles: Leadership and Management, customer acquisition, support,
retention and personnel management. These principles are applied through two areas of the business: Sales & Marketing
and Service. In each of these areas, New Holland has defined a series of best practice goals to provide dealers with
a competitive advantage in the market. A series of specific standards form the core of the Top Partner Program, and
three levels of related compliance have been set: certified, advanced and premium. Reaching the first level demonstrates
dealer ability to deliver a unique and consistent New Holland Agriculture experience, whereas the premium level reflects
Glossary systematic implementation of the recommended best retailing practices.
ISO 9001, Stakeholders
Case IH Europe focuses on building the most professional dealer network in the industry, and Red Excellence Program
is the brand’s tool for achieving this. The Red Excellence is designed to train dealers to a very high professional level,
in order to meet the increasing requirements of existing and future customers. The scheme was launched in five key
markets in 2009 and has since been extended to all European branch markets. The focus of the Red Excellence Program
is to foster a successful and sustainable partnership with dealers and to continuously raise customer service quality. Red

212
Excellence supports each dealer, helping to identify business areas that need attention and to drive best practice actions
for continuous business improvement. The following are considered to be key dealership areas: 80% of Iveco
n HR and Training

n Sales, Service and Marketing Management

dealership network
n Facility & Signage
in Europe ISO 9001
n Tooling & Equipment
certified
n Harvesting and Advanced Farming System.

Case IH dealers can achieve three levels of Red Excellence compliance: Certified Dealer status recognizes the fulfillment of
minimum Case IH quality requirements for a consistent brand experience, Professional Dealer status demonstrates above-
average quality standards which ensure excellent customer experience and Master Dealer status recognizes best-in-industry
standards, excellent performance and outstanding customer service through best practices implementation.
The quality assurance standards adopted by Fiat Industrial Group companies are also acknowledged across the dealer
network. In Iveco, for example, customer service quality standards are regularly verified by external audits based on
ISO 9001; 80% of the Iveco dealer network in major European countries is ISO 9001 certified. In addition, most FPT
Industrial dealerships use quality assurance systems certified according to ISO 9001 and RINA standards, in the case of
the sale and service of marine engines.

dimension
Social
213
 customers
Fiat Industrial Group centers all operations on customers and their needs, from
product design to the dealership purchasing experience and sales and post-sales
assistance. With this in mind, the Group has implemented a series of tools, procedures
and programs which aim to engage customers right from the product development
stage and in all subsequent phases.

214
 CUSTOMERS SOCIAL
DIMENSION

Customer Interaction
As established in the Code of Conduct, Fiat Industrial Group strives to satisfy customer expectations, accepting their
suggestions regarding product and service quality improvement and focusing on clearly communicating relevant information
whenever required. For the Group, maintaining an ongoing dialogue is the best way to meet any needs customers
may have, and is an extremely valuable interaction. This interaction is particularly important when it is considered that
customers use Group products for business; for customers, a broken down vehicle could lead to loss of earnings. The
Group pays particular attention to protecting the personal data of customers and all other individuals it comes into
contact with. All relationships are conducted in full respect of data confidentiality, in line with the Fiat Industrial Group
Privacy Guidelines and the regulations in force in all countries in which the Group operates.

Highlights
Customer-Driven Product Definition
In order to actively engage customers in the product definition process, CNH has developed its Customer-Driven Product Definition (CDPD). As part of this, CNH as well
as competitive customers provide the best possible understanding of their requirements, and play an active role in developing and testing new models.
The CDPD process consists of the following: customer visits and surveys, analysis of client suggestions, workshops with product development teams, testing stages (during
which customers try out prototypes of new models and compare their features) and, finally, the integration of customer feedback into final product designs. This process
results in the design of products, which not only ensure optimal performance and efficiency, but which also satisfy the requirements of those who will be using the
equipment for their daily work. CNH has applied the CDPD process to the development of important products such as the Case IH AFX Combines and Magnum tractors,
New Holland FR Forage Harvesters, New Holland T8 and T9 tractors, Case N Series backhoe loaders and Alpha series skid steers and compact track loaders. Customer
input has helped to improve, among other things, serviceability, visibility, stability, power output, ease of transportation, intervals between refueling, noise emissions and
cold starting for a range of vehicles.

dimension
Social
GRI-G3.1
PR5
Sustainability Plan
Our commitments on pages 43-44

215
 Social CUSTOMERS
Dimension

customer care
From the initial contact onwards, Fiat Industrial Group interacts with and assists its customers in order to provide them
with an experience that meets their expectations. Every Group sector has a Customer Care department dedicated to
developing, managing and promoting solutions to improve service. This helps to foster enduring relationships and respond
to customer needs and expectations.
Customers can contact the company via the web or by phone, which are the main channels of communication. The
dealerships are an important interlocutor in handling any request from customers. Located in each of the Group’s main
regions of operation, they offer a variety of services, from information to complaints management and assistance to
customers in case of breakdown.
In CNH, for example, the Customer Care center works in close collaboration with brands, dealers, technical services and
other functions and resolves to:
n give clients easy access to CNH and its brands through various channels of communication

n manage relationships with customers and provide

them with the necessary support

n monitor and measure customer satisfaction and

collect customer feedback.

In particular, CNH Customer Care operates through
three Customer Service Centers located in the main
geographical areas where CNH operates: Europe
(Arese, Italy), North America (Oshawa, Canada) and
Latin America (Curitiba, Brazil). Offering services
in nine languages, these centers employ around 80
personnel and cover 25 markets. Customer Service
Centers offer services tailored to each brand via a toll-
free helpline. The major services provided are:
n Breakdown Assistance: in case of vehicle break-

down, ensuring that all necessary steps are taken so

that the client can resume work as soon as possible
n Information and Complaint Management:

providing a direct and effective communication chan-

nel through which customers receive assistance and
an accurate and timely response
n Customer Experience: the main objective is

to effectively manage and facilitate a customer’s

cross-channel exposure, interaction and transaction
GRI-G3.1 with a company, product, brand or service through
PR5
Sustainability Plan studied methods and processes throughout their full
Our commitments on pages 43-44 life cycle in order to deliver a pleasant experience
with a sense of being respected, served and cared,
according to their expectations when looking to
purchase new machinery.

216
In 2012 new communication channels were opened, including an app for the iPhone and tablets. In addition, each brand
has set up a profile on social media sites like Facebook, Twitter, YouTube, etc. In 2012, the three Customer Service 180 thousand
Centers managed more than 120 thousand customer queries spanning all services offered. contacts through
Customer Centers
Customer Service Centers – Highlight
CNH (no.)
2012 Europe Latin America North America
Personnel(1) 32 17 22
Hours of personnel training 1,870 90 880
Contacts managed 51,724 16,708 55,302

2011
Personnel(1) up to 31 12 up to 30
Hours of personnel training 2,500 2,550 4,800
Contacts managed 47,358 13,308 72,197

The Iveco Customer Center for Europe employs around 100 staff members who receive continual training (over seven
thousand training hours in 2012). It offers a continuous assistance program called Assistance Non-Stop (see also page
218) and also manages the Contact Us service. To request information or to report a complaint from anywhere in the
world, customers can simply access the Iveco website and communicate directly with the company. The entire process
is controlled by specially-trained individuals, from the first contact with the customer to the response from the company,
ensuring the speedy resolution of any issues. This service is available to both existing and potential customers, and is
primarily used to request information about vehicles and parts, prices, technical documentation, type-approvals, as well as
brochures, gadgets etc. Contact is made through an easily-accessible form on the Iveco website. Every query is carefully
analyzed and referred to the appropriate body, depending on the issue and country from which it originates; in this way,
customers can receive personalized information or be directly contacted by specialized Iveco personnel. In 2012, the
Customer Center managed approximately 11 thousand inquiries.

Customer Center – Highlights

dimension
Iveco Europe (no.)

Social
2012 2011
Personnel 100 101
Hours of personnel training 7,840 7,270
Contacts managed 60,571 56,300

Highlights
CREDIT WITH PUBLIC ADMINISTRATIONS TURNED INTO VEHICLES
Starting in July 2012, Iveco launched a project for customers through its finance company, by which a business can use debts
owed to it by an Italian public body, whether present or future, for the purchase of industrial and commercial vehicles. This project
demonstrates Iveco’s belief in offering integrated services to customers that meet their specific needs (including financial ones) in
the current difficult economic climate. Iveco Holdings provides a team of specialists and a toll-free telephone number for customers
who need assistance or financial advice at any stage in the process.

(1)
Personnel count varies during the year due to seasonality. 217
 Social CUSTOMERS
Dimension

Ongoing Assistance
Fiat Industrial Group believes that customer satisfaction and, consequently, customer loyalty are closely linked to the
quality and efficiency of the services they provide. In light of this, CNH offers the Breakdown Assistance (BDA)
service to customers in the event of vehicle failure. Indeed, when this occurs, the entire organization is alerted and tasked
with helping the dealer to resolve the issue as quickly as possible in order to minimize any loss of productivity for the
customer. Customer Care coordinates all resources necessary to achieve this throughout the entire incident-handling
process. A dedicated parts shipment and delivery team oversees the process of locating and delivering parts, including
overseas shipments. The service follows customers until any issues are resolved, allowing them to get back to work as
soon as possible. The process is carefully monitored, and following resolution, dealer and customer satisfaction surveys
GRI-G3.1 are conducted to evaluate the service/process performance.
PR5
Sustainability Plan The BDA service covers the United States, Canada, Brazil and 19 other countries, including Argentina (as of 2012).
Our commitments on pages 43-44 For the year, a weighted average of 40% of vehicles were repaired within 48 hours.
Iveco is also committed to providing roadside assistance, and with Assistance Non-Stop (ANS) ensures round-
the-clock service to its customers 365 days a year. Set up to provide instant technical support for vehicle problems,
the service is operational across 31 European countries, and is available in ten languages. The ANS service can be

218
contacted on a universal toll-free number, or through the Iveconnect system. All employees working in this service
receive specific training, with regular refreshers.
Every assistance request is managed by an operator who, once identified and located customer and vehicle, carries
out a pre-diagnosis of the problem. Once the fault has been verified, the operator contacts the nearest mechanic in
order to direct them to the breakdown site. The operator continues to follow the process until the repair is complete,
remaining at the disposal of the mechanic and keeping the customer updated until the vehicle is released. The Customer
Center shares a database with relevant departments containing faults by number and type, and matches those with
the model and duration of breakdown. Through the Iveconnect system, present across the new Stralis range, access
to the Assistance Non-Stop service is even simpler and quicker. Indeed, in the case of a vehicle breakdown, the driver
can contact the Customer Center directly from the vehicle, automatically sending a breakdown assistance request. The
Customer Center then sends updates on the open order number and the estimated time of arrival of assistance at the
customer vehicle directly to the on-board telematics system. The Assistance Non-Stop service is also available through
ANS Mobile, an app available on Android and Blackberry devices, which can locate the nearest mobile repair vans and
their movements using GPS positioning. The project, which was launched in September 2012, aims to further reduce
assistance times, giving the Customer Center the possibility of calling the nearest service van to the breakdown site.
Furthermore, the software interface allows the ANS technician to visualize all the relevant data for the order directly
on the device, along with GPS maps, and permits real-time interaction with the Customer Center, directly supplying
information relating to the status of the repair.
The ANS system, which managed more than 60 thousand cases of assistance in 2012, has achieved excellent results:
72% of vehicles are repaired at the roadside forming part of the total of 77% of vehicles which are repaired within eight
hours. Furthermore, 97% of customers declared themselves satisfied or very satisfied with the service offered by the
Customer Center (1).

The voice of our stakeholders

dimension
Social
A New Holland Agriculture customer experienced a vehicle breakdown while working.
Thanks to the Breakdown Assistance, the authorized service center immediately supplied a
replacement vehicle to be used while waiting for the necessary spare parts.

Andrea Lai, New Holland Agriculture customer:

“Since I have a fair amount of experience, I realized at once that the problem was serious.
I was close to the road, where everyone could see me, and I had only one more row to
do to finish the field, but I still stopped and called the authorized service center at once.
When they got there, just one turn ‘empty’ (with the grubber unhitched) confirmed my
fears: the tractor would have to go in for repair. [… ]. I never felt that the organization did
not care about me: all the people involved worked hard to solve my problem and 48 hours
later I was back at work in the field, with an impeccable replacement tractor actually more
powerful than my own, which was being repaired in the meantime”.

(1)
Survey carried out to objectively evaluate and measure the satisfaction of customers using the Assistance Non-Stop service when in a broken down vehicle, by contacting
the Customer Center to request roadside assistance. As of January 2012, evaluation criteria were changed, in order to measure the percentage of customers who declare
themselves to be satisfied or very satisfied with the service. 219
 Social CUSTOMERS
Dimension

CUSTOMER INSIGHT AND CUSTOMER SATISFACTION

Through an extensive planning, execution and measurement of activity effectiveness, Customer Experience management
aims to coordinate, design and operate multiple interaction touch-points to deliver a real brand experience to the
customer and to define guidelines on how to listen to the customers input through monitoring of customer satisfaction
levels in order to improve quality of services offered.
The Group regularly monitors results and customer satisfaction levels in order to improve the quality of services offered. For
example, CNH constantly monitors certain factors at their Customer Service Centers to ensure the ongoing improvement
of its services. These factors include response time, time taken to resolve a problem and time taken to achieve customer
satisfaction. In North America, the Five Stars program is managed directly by Customer Care, and is made up of three
different surveys which are carried out in the first months of product ownership, to measure customer satisfaction with
GRI-G3.1
PR5
regard to both the product and the buying experience. Clients responses are passed on to the relevant departments
Sustainability Plan so that they can improve products and services. In 2012, levels of customer satisfaction remained constant, and were
Our commitments on pages 43-44
particularly high in North America and Latin America, with an average score of nearly eight (on a scale of 1-10) for the
Breakdown Assistance service. Globally, in 2012, all CNH customer assistance processes were mapped and evaluated
to streamline and improve the management and monitoring of the existing process, and to implement a new Customer
Relationship Management (CRM) system.

220
Customer Service Centers – Key indicators
CNH
2012 Europe Latin America North America
Average call center response time (seconds) 13.0 12.0 31.0
Customers participating in satisfaction surveys(1) (%) 16.0 17.0 11.0
Satisfaction index (scale 1-10)
information 7.9 9.0 6.8
complaint 5.9 7.0 6.0
Breakdown Assistance 7.7 8.0 8.4
Vehicle downtime (% of vehicles repaired within 48 hours) 39.0 16.0 48.0

2011
Average call center response time (seconds) 12.0 12.0 23.2
Customers participating in satisfaction surveys(1) (%) 17.0 18.0 9.5
Satisfaction index (scale 1-10)
information 8.0 8.5 9.0
complaint 6.0 7.1 8.0
Breakdown Assistance 7.8 8.3 8.2
Vehicle downtime (% of vehicles repaired within 48 hours) 46.0 17.0 49.0

Customer Center – Key indicators

Iveco Europe
2012 2011
Average call center response time (seconds) 17.7 20.9
Customers participating in satisfaction surveys (%) 21.0 16.0
“Satisfied” or “very satisfied” customers(2)(%) 97.0 -
Satisfaction index(2) (scale 1-10) - 9.1
Vehicle downtime (% of vehicles repaired within 8 hours) 77.0 78.0

Recall campaigns

dimension
Social
For recall campaigns which call for vehicle repair, the Group has developed a series of initiatives to provide support
to customers by notifying them – through various channels – of the work to be carried out on their vehicle, and to
handle the process in such a way as to inconvenience the customer as little as possible by reducing vehicle downtime.
Within CNH, the Best Service program is a tool created to maintain customer loyalty during recall campaigns.
Prolonged vehicle downtime can be economically damaging for customers, above all for farmers during the most
productive periods in the year. To deal with these operational requirements and to reduce vehicle downtime in the
garage, the Customer Care service coordinates the different bodies centrally, in order to keep both customers and
dealers informed and to supply any necessary spare parts as promptly as possible. In 2012, the Best Service program
organized 25 recall campaigns for a total of more than 15,500 vehicles, an increase of 5,500 units with respect to 2011.
Also Iveco has established a system for monitoring the impact of recall campaigns in order to launch relevant awareness
initiatives aimed at both the service network and customers, so that the maximum number of vehicles can be updated
in the shortest possible time. In the event of recall campaigns requiring repair operations, Iveco launches a client
support initiative to mitigate the inconvenience caused and minimize vehicle downtime. Over the year, Iveco launched
15 recall campaigns, involving 64 thousand vehicles.

Data refers to information and complaint survey data.

(1)

Survey carried out to objectively evaluate and measure the satisfaction of customers using the Assistance Non-Stop service when in a broken down vehicle, by contacting
(2)

the Customer Center to request roadside assistance. As of January 2012, evaluation criteria were changed, in order to measure the percentage of customers who declare
themselves to be satisfied or very satisfied with the service. 221
 Social CUSTOMERS
Dimension

Transparency in communication
Fiat Industrial Group also places major emphasis on the sales process, a crucial element in building a relationship of trust with
the customer. Iveco Capital offers clients a range of financial products combined with auxiliary services (Insurance, Iveco
Maintenance and Repair contract management, etc.), to aid them in making purchases through installment loans or finance
leases on industrial and commercial vehicles and buses, both new and used, as sold through the authorized dealer network.
Iveco Capital operates in accordance with regulations on transparency, anti-money laundering and credit sustainability,
and is committed to high levels of quality, focusing fully on customer needs and product and financial service innovation.
This has led to the launch of various initiatives at Group level, including customer satisfaction reporting for certain
European markets, ongoing training and awareness campaigns for sales representatives and internal employees, and
the assessment and continued monitoring of the performance of customer loans. This is carried out with a view to
continuously improving the performance and quality of the products and services offered to the end customer.

GRI-G3.1
PR3, PR6
Sustainability Plan
Our commitments on page 44

222
Charter for Ethical Advertising
Iveco recognizes the social role played by advertising and
advocates positive and responsible values and conduct across
all forms of communication. In 2012, Iveco released the new
Charter for Ethical Advertising to promote a policy of responsible
marketing and advertising in every market where it is present.
Based on the applicable legal and advertising standards in these
markets, the Charter sets the fundamental principles to be
applied to communications activities involving all those who work
in or with Iveco, such as advertising agencies. It is centered on
three core values: respect for the customer on both a personal
and a professional level, fairness/integrity, to be interpreted
as accuracy, honesty and precision with regard to the transfer
and communication of information relating to products, and
determination to offer customers useful solutions through the
provision of goods and services. The central role of the customer
guides Iveco’s business ideology. With a view to creating an
operational tool, the Charter was summarized using clear, concise
language, in order to facilitate its application across the company.
Iveco is also an active member of the Utenti Pubblicità Associati
(UPA), the association of advertisers in Italy, which supports
the Istituto di Autodisciplina Pubblicitaria, an advertising standards
organization, and is also a member of the European Advertising
Standards Alliance.

Information on products and services

dimension
Social
Due to the nature of its activities, Fiat Industrial Group is subject
to numerous national and international laws and regulations that
govern product information. With regard to fuel economy and
CO2 emissions, the Group provides consumers with specific
information through various channels: call centers, posters in
sales outlets, internet sites, advertising material, etc. Other
information, including safety information, whether stipulated by
regulation or provided voluntarily, is communicated by the Group with maximum clarity through manuals (e.g., user
and maintenance handbooks), advertising, dealer and service networks, call centers, etc. Furthermore, through the
GRI-G3.1
provision of driving courses and computerized tools, such as the Driving Style Evaluation (see also page 101), Fiat PR3, PR5, PR6
Industrial Group promotes the use of low environmental impact technologies and encourages customers to drive Sustainability Plan
Our commitments on page 44
safely and with respect for the environment.

223
 Social PRODUCT SAFETY
Dimension

PRODUCT SAFETY
At Fiat Industrial Group, product responsibility means more than simply minimizing the environmental footprint of
products over their life cycle, it is also a commitment to delivering high safety standards. This commitment is embodied
in the design and development of vehicles, which ensure high levels of preventive safety, both active and passive, to
guarantee maximum protection for both the vehicle passengers and other road users.

Safety in agricultural and construction equipment

GRI-G3.1 Ongoing research at CNH is aimed at enhancing the safety of its equipment, focusing on mechanical improvements, cabin
PR1
Sustainability Plan comfort and advanced electronic controls and instruments. The New Holland Agriculture Intelligent Trailer Braking
Our commitments on page 32 System automatically manages and equalizes the braking force exerted on the trailer when the tractor decelerates, for
Glossary
Jack-knifing, KPI best-in-class on-road safety and stability under all conditions. The system improves safety when downshifting and/or
when the exhaust brake or service brakes are applied to slow the vehicle down: the trailer brakes are regulated so that
deceleration of trailer and tractor are perfectly matched, eliminating the risk of jack-knifing.

224
Enhanced visibility means improved operational safety, and so, to this end, the roof of the new Case IH tractor, Farmall
U Pro, has been completely redesigned. A new, high-visibility glass panel is directly integrated into the roof, while the
rear window has been enlarged to improve visibility for the rear operational part of the vehicle. As part of the process
of customer-driven product definition (see also page 215), a new high intensity lighting package has been introduced on
the Case N series loader, which increases saturation by 28%, providing superior visibility and seamless light coverage.
The easy flex sidelights can be rotated by up to 45° to provide additional illumination where it is needed most.
The N series features lighting of all sides of the vehicle, so that the functional side of the loader is fully illuminated. This
not only gives the operator a better sense of control, but also improves safety at any time of the day or night.
Using Case IH’s Advanced Farming System and New Holland’s Precision Land Management and Telematics system
(see also page 103), New Holland and Case IH have collaborated with Semeato to develop integrated control of
SOL TT planting equipment. Using the tractor’s CAN Bus and the ISO11783 protocol, this system enables users
to directly control the planter through the tractor’s touchscreen display. This system was awarded first prize for
innovation at Expointer, the leading agricultural trade-fair in southern Brazil.

Highlights
Training and information for responsible use
Case IH and the Great Plains Technology Center (GPTC) were honored with a citation from the state of Oklahoma for continuous
commitment to the safety of wheat harvest workers. Case IH hosts an annual safety training program for custom harvesting crews
called the Case IH ProHarvest Kickoff where it reviews combine safety procedures and shows safety videos and photos. The term
ProHarvest refers to the Case IH ProHarvest support program that has been supporting the wheat harvest for over 25 years.
This effort currently includes two, company trained four-man teams equipped with support trailers loaded up with Case IH parts,
test equipment and service tooling that follow the custom harvesters on their months-long run every year, from the starting point
at the Texas/Oklahoma border in the United States north to the Canadian border. The Case IH ProHarvest teams support local

dimension
dealerships, make sure combine parts are stocked and keep the custom cutters rolling.

Social
safety IN TRUCK AND Commercial vehicleS
Iveco endeavors to design products equipped with excellent passive safety features to minimize damage when collision is
unavoidable, and ensure a high level of protection for driver, passengers and other road users.
For Iveco, product safety is an absolute priority and is clearly set out in the quality policy, Quality Manual and in the
relevant internal processes. Right from the design phase, safety components are indicated with an S, marking them out for
a series of assessment procedures (e.g., dynamic computation, structural analysis, laboratory testing, static and dynamic
vehicle testing and type approval testing). During production, work stations where safety features are being developed
are labeled with an S (often in red), and the personnel responsible for working on or monitoring these features receive
appropriate training; safety features are also identified to ensure effective monitoring.
Since 2010, Iveco has developed and implemented the Improvement Process System based on the PDCA management
method (Plan, Do, Check, Act), with the aim of improving product safety and performance. The process defines, as a Key
Performance Indicator (KPI), the number of interventions or recall campaigns relating to safety issues.

225
 Social PRODUCT SAFETY
Dimension

Safety Problems
Iveco European commercial vehicles and bus (no.)
2012 2011
Product safety problems leading to product recalls or other corrective measures 14 17

At Iveco, research and development on safety systems is mainly focused on Advanced Driver Assistance Systems (ADAS).
In addition to airbags that are designed to protect passengers in a collision (passive safety), the main ADAS features
available on new heavy vehicles target preventive safety (designed to help the driver to avoid dangerous scenarios) and
active safety (designed to help avoid collisions, or to reduce the severity of impact). These features include:

Preventive safety
n Daytime Running Lights (DRL): low-power position
lights that remain on during transit and ensure maximum
vehicle visibility, along with xenon headlights to increase
driver visibility
n Hill Holder: a system that provides assistance when
starting a vehicle on an incline, inhibiting it from rolling
backwards for a few seconds after the foot brake is
released. It makes hill-starts safe, avoids the need to ride
the clutch and reduces brake wear
n Driver Attention Support: a system that continuously
monitors the driver’s attention levels. It monitors steering
wheel movements and, should any drowsiness be detected,
alerts the driver with an acoustic or visual warning
n Lane Departure Warning System (LDWS): a system
that alerts the driver in the event the vehicle strays from
its lane, provided that directional indicators have not
first been activated. Extremely effective at preventing
accidents caused by tiredness or distraction at the wheel
n Tire Pressure Monitoring System (TPMS): a system
that measures internal tire pressure, to reduce fuel
consumption and wear, contributing to vehicle safety.
Active safety
n Adaptive Cruise Control (ACC): intelligent system that allows the driver to maintain the cruising speed selected, helping
GRI-G3.1 to maintain the safety distance from the vehicle ahead. In the event that the safety distance is not maintained, the system
PR1
Sustainability Plan automatically activates engine braking, intarder/retarder and service brakes
Our commitments on page 32 n Electronic Braking System (EBS): also incorporates Anti-lock Braking System (ABS), Acceleration Slip Regulation
Glossary
ACC, ADAS, EBS, (ASR) and Electronic Brake Limiter (EBL); combines engine braking and the intarder, activating both automatically
Euro VI, Hill Holder, for more effective braking and to minimize use of service brakes, delivering reduced braking distances and the even
Intarder, Ldws
wear of brake pads

226
n Advanced Emergency Braking System (AEBS): available on Euro VI vehicles and higher, this system alerts the driver to
a potential collision and automatically applies brakes to avoid, or reduce speed of, any impact
n Electronic Stability Program (ESP): system activated in the event of swerving, adjusting engine power and selectively
braking each wheel individually until the vehicle regains stability. Effective during unexpected changes in trajectory, and
for correcting understeer or oversteer as a result of incorrectly negotiating a bend.

Passive safety
n Airbags: the front and side airbags (window-bags) for both driver and passengers guarantee maximum security for all

those travelling in the vehicle.

Development of safety systems

Iveco

Today Short/medium term Long term

Preventive Safety (driving support)

>
BENDING LIGHTS ADAPTATIVE LIGHTS > INTELLIGENT LIGHTS >
VEHICLE-TO-VEHICLE COMMUNICATION > VEHICLE-TO-INFRASTRUCTURE COMMUNICATION >
REAR VISION > >
REVERSE DRIVING ASSISTANT
DRIVER MONITORING > DRIVER ATTENTION SUPPORT>
HILL HOLDER > ASSISTED REVERSING > INTEGRATED DRIVER ASSIST >
TIRE PRESSURE MONITORING >
Active Safety (collision avoidance)

ADAPTIVE CRUISE CONTROL > FRONT COLLISION WARNING >

LANE DEPARTURE WARNING > ACTIVE LANE ASSISTANT/BLIND-SPOT DISPLAY > LANE KEEPING >

dimension
Social
BLIND SPOT MONITORING > LANE CHANGE ASSISTANT >
>
START INHIBIT TURNING ASSISTANT >
ELECTRONIC STABILITY CONTROL > CURVE WARNING > PREDICTIVE STABILITY SUPPORT >
ELECTRONIC BRAKING SYSTEM (ABS+ASR+EBL) > START INHIBIT >
Passive Safety (damage mitigation)
AIR BAGS >
AUTOMATIC EMERGENCY BRAKING >
REVERSIBLE PASSIVE SAFETY SYSTEMS >
PASSIVE PROTECTION SYSTEMS FOR VULNERABLE ROAD USERS >
AUTOMATIC COLLISION PREPARATION SYSTEMS >
EMERGENCY CALL >

227
 SUPPLIERS
Fiat Industrial Group adopts a responsible approach to the management of its
supply chain, from small local companies to large multinational organizations.
Establishing relationships that go beyond commercial transactions is essential to
forging long-lasting and mutually satisfying alliances with highly-qualified partners
that share Group principles.

Purchases (1)
Fiat Group Purchasing worldwide (€ billion)

NORTH AMERICA EUROPE

2.42 7.14
by product destination by product destination

2.58 6.32
by product origin by product origin

LATIN AMERICA ASIA

0.60 0.03
by product destination by product destination

0.27 0.73
by product origin by product origin

(1)
Refers to value of purchases managed by FGP. An additional 3% of purchases originate from suppliers in other countries.

228
 SUPPLIERS SOCIAL
DIMENSION

Supply chain management

Advocating socially and environmentally responsible behavior along the entire supply chain is one of the Group’s primary
commitments, along with championing a culture of sustainability among company employees who work with suppliers
every day. These commitments are translated into goals and tangible actions in the Sustainability Plan and their progress
is monitored periodically. This approach goes hand in hand with the other priorities of the supply chain management:
quality, price and lead times.
The Group has created Sustainability Guidelines for Suppliers in order to share this approach. The guidelines are extended
to subcontractors and call for compliance with local legislation and observance of:
n human rights and working conditions

rejection of forced or child labor in any form

recognition of the right to freedom of association as per applicable laws
safeguard of employee health and safety
equal oppor tunities, fair working conditions, and the right to training for all employees
n respect for the environment

optimized use of resources

responsible waste management
elimination of potentially hazardous substances from the manufacturing process
development of products with low environmental impact
use of an environmentally sustainable logistics system
n business ethics

high standards of integrity, honesty and fairness

ban on corruption and money laundering upholding high standards of integrity, honesty and fairness.

dimension
Social
GRI-G3.1
EC6
Sustainability Plan
Our commitments on pages 45-46

(1)
Refers to value of direct materials purchases managed by FGP. 229
 Social SUPPLIERS
Dimension

Fiat Industrial Group is a company with a global presence, both directly and through its partners. To reach the goals it has
set, the Group collaborates with Fiat Group Purchasing S.r.l.(1) (FGP), to create synergies and at the same time provide
suppliers with business opportunities.
The information related to the model for sustainable management of the supply chain was assessed by SGS with a high
level audit, in accordance with the AA1000 Assurance Standard principles.

Supplier Profile
Fiat Group Purchasing manages procurement with a value of around €12 billion on behalf of Fiat Industrial Group, and has
a direct material supplier base of 6,382. Moreover, a formal process is being adopted in order to classify suppliers on the
6,382 basis of their importance within the supply chain. Fiat Industrial Group considers the top 150 companies, which produce
direct material around 60% of the total value of purchases, to be strategic suppliers, also in light of the long-standing collaboration.

suppliers
managed by FGP Highlights
Fiat Group Purchasing worldwide
2012 2011
Direct and indirect material purchases managed by FGP(2) (percentage of total Group purchases) 90% 90%
Direct material suppliers managed by FGP (no.) 6,382 4,800
Value of purchases from direct material suppliers(3) managed by FGP (€ billion) 10.2 10.2
Value of purchases from indirect material suppliers(4) managed by FGP (€ billion) 1.8 1.5

Purchases(5) by product type

Fiat Group Purchasing worldwide

Mechanical parts Others

32% 11%

Electrical components
14%

Metals Chemicals
27% 16%

GRI-G3.1
EC6, EN1
Sustainability Plan
Our commitments on pages 45-46
Glossary
AA1000, Audit
Plants in Europe account for 70% of direct material purchases by value (39% in Italy), with 24% in North America and
the remaining 6% mainly in Latin America. The location of direct materials suppliers is consistent with this breakdown,

(1)
A Fiat S.p.A. company which also conducts purchasing activities for Fiat Industrial Group.
(2)
Refers to value of purchases managed by FGP.
(3)
Direct materials are preassembled components and systems used in assembly. The value of raw material purchases is considered marginal.
(4)
Indirect materials are services, machinery, equipment, etc.
230 (5)
Refers to value of direct material purchases managed by FGP.
confirming Fiat Industrial Group’s commitment to using local suppliers wherever possible: approximately 62% are located
in Europe, 25% in North America, 3% in Latin America, 7% in Asia and the remaining 3% in other countries.
Although Fiat Industrial Group does not purchase raw materials directly (with the exception of steel used for direct
processing), overall consumption and price trends are constantly monitored.
The principal raw materials used in semi-finished goods purchased by the Group are steel and cast iron (approx. 2.3 million
tons including scrap), plastics and resins (approx. 168 thousand tons) and other materials (approx. 70 thousand tons).

Highlights
SUPPLIER DIVERSITY
CNH aims to promote, encourage and increase the participation of diversity-owned enterprises (such as small business, small disadvantaged business, veteran-owned small
business, service-disabled veteran-owned small business, Hubzone and women-owned small business) in the procurement of its products and services.
CNH actively seeks, identifies and assists these companies to qualify as competitive suppliers, affording them the opportunity to increase their sales and expand their markets.
Adequate information is provided to these potential suppliers in the bidding process and establish reasonable delivery lead times to aid them, where possible, in achieving
increased participation in the Company’s procurement activity. The Company offers reasonable technical assistance to diversity-owned enterprises to support them in
becoming more competitive and knowledgeable in today’s market place. The Company provides on-site audits to assist diversity-owned enterprises to identify potential
problem areas and help them in implementing an appropriate corrective action. Purchasing personnel in CNH conduct regular review of materials requirements and identify
areas of potential participation by diversity-owned enterprises. Methods and procedures for administering these activities are part of buyer training seminars, which are
conducted periodically. In 2012 CNH increased its expenditure with diversity-owned businesses by 2%.

Supply chain standards

Environmental and social sustainability standards have been fully integrated into the Group’s supplier management system.
The selection of suppliers is based not only on the quality and competitiveness of their products and services, but also

dimension
Social
on their compliance with the Group’s social, ethical and environmental principles. This is assessed using criteria aimed at
ensuring fair treatment and equal opportunities for all parties involved.
The sustainability of suppliers is evaluated using the indicators featured in the self-assessment questionnaire and
subsequently confirmed by a verification audit (see also page 232).
Through clauses that will be phased into new contracts, FGP requires companies to respect the Fiat Industrial Code of Conduct
and the Sustainability Guidelines for Suppliers. In particular, the contractual clauses require that suppliers are able to provide
references and prove their ability to: fight corruption, protect and care for the environment, promote safe and healthy working
conditions, advocate freedom and eliminate discrimination, ban forced and child labor, and ensure freedom of association.
All contracts drawn up for projects on a case by case basis contain a clause by which the supplier undertakes to comply GRI-G3.1
EC6, HR1
with Legislative Decree No. 231 of 8 June 2001, which concerns the administrative liability of legal persons, the Code of Sustainability Plan
Conduct and the Sustainability Guidelines for Suppliers (hereinafter referred to as the Clause). Our commitments on page 45
Glossary
With regard to orders issued, it should be noted that the latter (for the purchase of both direct and indirect materials) are Audit
subject to the General Purchasing Conditions (hereafter referred to as GPC), which contain the aforementioned Clause.
In 2012, for example, Iveco GPC (for direct materials) containing the Clause were signed by 50 suppliers. These are Iveco

231
 Social SUPPLIERS
Dimension

suppliers which represent 80% of total revenues (calculated on supplies in the January-September 2012 period). The CNH
GPC (again for direct materials) are currently under revision to include the Clause, while those of FPT Industrial are in
the process of publication: in both cases, the conditions are based on the Iveco GPC and adapted to each company’s
requirements.
If a supplier fails to adhere to these principles, Fiat Industrial Group reserves the right to terminate the commercial
relationship or instruct the supplier to implement a corrective action plan, which is then verified through audits.
The Potential Suppliers Assessment (PSA), which was revised in 2011, also stipulates that potential suppliers must
adopt a code of conduct. Furthermore, they must also have a certified system for occupational health and safety and
environmental management.
Another important step towards the complete integration of social and environmental aspects into supplier management
was achieved in 2012: supplier sustainability performance ratings proved to be one of the main factors in the final decision
when awarding supply contracts (evaluated using both self-assessment questionnaires and on-site checks).

Monitoring conformity
In order to assess whether suppliers meet the sustainability standards set by Fiat Industrial Group and, where
necessary, take steps towards improvement and realignment, Fiat Group Purchasing (FGP) has designed and
GRI-G3.1 initiated a monitoring process based on two main tools: self-assessment questionnaires on sustainability standards
EC6, HR1, HR2, HR5, HR6, HR7, SO2 and follow-up audits on-site.
Sustainability Plan
Our commitments on page 45 These questionnaires request information from suppliers on the following issues: human rights, environment, health
Glossary and safety, ethics and anti-corruption, and personnel training and development. They also serve as a gap analysis tool
Audit
for suppliers, highlighting areas in need of improvement. In 2012, self-assessment questionnaires were sent out to
78 suppliers. The 38% of involved suppliers completed this questionnaire, attaining an average score of 63.2 over 100,

232
in addition to the five completed in 2011. An analysis of the results essentially confirmed the previous year’s findings:
widespread implementation of social and environmental practices, with a significant number of suppliers establishing their
own environmental and social management systems and also setting targets in these areas and preparing periodic reports.
Following the self-assessment process, audits were carried out on a select group of major suppliers. Building on last
year’s activities, in 2012 a further 61 audits were performed in China, India and Europe (of which 45 were conducted
by Supplier Quality Engineers and 16 by a third party auditor). Taking into account the audits carried out in 2011, 61 audits
123 suppliers were assessed over the two year period. The audits in China, India and Europe covered around 11% of total performed in China,
purchases by value managed by FGP. These audits did not reveal any critical situations; no contracts were suspended or canceled. India and Europe
However, corrective action plans for certain areas in need of improvement were formulated in collaboration with
suppliers. In 2012, following the audits carried out, approx. 130 joint action plans were implemented, involving
44 suppliers. In 2011, around 80 action plans were launched for 55 suppliers.
The Supplier Sustainability Committee, set up within FGP, was also involved in the formulation of these plans. This group
included the Compliance Officer, General Counsel and the head of Supplier Quality Engineering.
The plans primarily addressed the need to set and implement standards in the areas of occupational health and safety,
corporate governance and human rights.
A follow-up between supplier and auditor takes place periodically, in order to monitor these plans. If any non-compliance
on the part of the supplier is encountered, the case is brought to the attention of the Committee, which identifies the
actions that need to be taken with regard to the supplier in question.
Levels of supplier compliance and the respective action plans are entered into the Supplier Quality Performance (SQP)
system and the results can be consulted by all employees engaged in supplier management.
Every month, the SQP system develops the supplier Bid List. It contains a range of qualitative information, including
the score from the sustainability assessment. This information, along with financial, technical and logistics data for each
supplier, make up the summary by plan, the document used for assigning new business.

dimension
Highlights

Social
CONFLICT MINERALS
The Fiat Industrial Group recognizes the value in working with peers to address global challenges across its supply chain. In
particular, the Group is evaluating and implementing measures designed to address disclosure obligations under the Dodd-Frank
Act and regulations adopted by the US Securities & Exchange Commission regarding the source of certain materials that may
originate from the Democratic Republic of Congo and surrounding countries (conflict minerals). Such measures are anticipated
to include: widespread communication with the supply chain regarding their role in ensuring that the Group satisfies conflict
GRI-G3.1
minerals disclosure obligations; deployment of a web-based data management tool through which suppliers will provide necessary HR2, HR5, HR6, HR7, SO2
data related to supply sources and potential conflict minerals; necessary due diligence and further communication with suppliers Sustainability Plan
Our commitments on page 45
regarding information provided; conflict minerals training for employees and supply chain partners; and consideration of corporate
Glossary
policies related to conflict minerals. In evaluating and implementing these measures, Fiat Industrial Group is coordinating with the AIAG, Audit, Conflict minerals
Chrysler Group and the Automotive Industry Action Group (AIAG).

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 Social SUPPLIERS
Dimension

Risk assessment
Fiat Industrial Group deems it essential to
monitor the obstacles that could potentially
hinder the upholding of high product standards,
both within the company and along the supply
chain. Furthermore, social and environmental
risks are constantly increasing for corporations
like Fiat Industrial Group, operating on a global
scale. In recognition of this, since 2011, Fiat
Industrial Group has introduced a risk map to
identify critical suppliers whose compliance with
sustainability criteria requires evaluation. The four
risk drivers used to create the risk map were:
supplier turnover, country risk of supplier location
(with a particular focus both on countries with
a poor human rights record and those in which
water is scarce), supplier financial risk and the
result of the assessment of supplier adherence
to sustainability principles (based on the results
of self-assessment questionnaires, on-site audits
and the level of implementation of action plans).
The risk map classifies suppliers according to three
levels of risk (high, medium and low), based on
a weighted average of the four factors. The risk
map has covered 100% of strategic suppliers over
three years.
In addition, to improve supply performance and
maximize operational efficiency, a detailed spend
analysis is carried out. Using a data instrument,
known as the Financial Suppliers Sensitivity
System (FS3), supply chain managers have access
to the supplier financial assessment. This tool
is continually updated based on confidential
information provided by the suppliers themselves and on that contained in any financial reports. The assessment,
automatically calculated and checked by an analyst, allows suppliers to be identified according to categories of
financial risk. Suppliers in particular difficulty are monitored weekly to prevent any interruption to the supply chain.
The continuous monitoring of economic aspects is essential to good supply chain management.
The engagement of suppliers is essential to the commitment of Fiat Industrial Group to reduce the environmental impact
of its business activities and to tackle climate change. To minimize the impact of manufacturing process and products on
the environment, suppliers are required to optimize resource use, reduce polluting emissions and greenhouse gases to

234
a minimum, correctly manage the treatment and disposal of waste, and apply approved logistics management processes
to reduce environmental impact as far as possible. The use of an environmental management system that is certified
according to international standards is strongly recommended.
In this context, Fiat Industrial Group is dedicated to monitoring progress and spreading awareness among suppliers.
In 2012, a mapping system was launched for suppliers who have implemented an environmental management system
certified by a third-party organization. Furthermore, an information campaign was launched on the importance of adopting
a certified environmental management system, aimed at all Group suppliers (see also page 114).
On the same theme, two important initiatives designed to promote good practice will be implemented by the company
from 2013. A study will be undertaken in collaboration with several suppliers to monitor water management, with a
particular focus on plants in areas of water scarcity, with a view to developing measures to minimize risks relating to
water usage. In addition, selected suppliers will be asked to respond to the Carbon Disclosure Project questionnaire
to assess the strategies adopted to fight climate change and the initiatives already in place or to be implemented to
reduce CO2 emissions.
Respect for human rights and working conditions along the entire supply chain is another major issue that the Group
is focused on. In 2012, an online training course was provided, developed in partnership with the Automotive Industry
Action Group (AIAG), to educate suppliers on responsible working conditions in various countries, tackling themes
such as child labor, forced labor, freedom of association, discrimination, health and safety, wages and working hours.
In 2012, 1,686 participants registered for the course; training will continue throughout 2013 with the involvement of
some suppliers that do not have a direct contractual relationship with the Group (tier-2 supplier).
Fiat Industrial Group is fully aware of its responsibility over the entire supply chain and monitors, through self-assessment
questionnaires designed to verify standards how suppliers (tier 1) manage their own supply chain in terms of sustainability.

Highlights

dimension
AN ENVIRONMENTAL MANAGEMENT TOOL

Social
To provide support in managing the various environmental aspects linked to vehicles and components manufactured, Iveco has
extended the International Material Data System (IMDS) to cover its entire production. This system has been in operation for
light vehicles since 2002; it is an online platform that enables the input of detailed information on the materials and substances
used in purchased components. The system also allows for the input of information regarding the use of recycled materials.
This platform, which was adopted by FPT Industrial in 2011, has also been launched for other companies: indeed, in 2012, after a
major standardization effort, CNH and Astra also joined the IMDS system. This standardization mainly concerned specific software
for the automatic control and management of information, into which all relevant supplier data was entered. This allows conformity
with the REACH regulation to be monitored, along with various other aspects which, for industrial vehicles are not compulsory
(such as Directive 2000/53/EC on heavy metal restrictions or Directive 2005/64/EC on vehicle reuse, recycling and recovery), GRI-G3.1
HR2, HR5, HR6, HR7, SO2
following requests from customers relating to green procurement, as is currently underway for various Astra vehicles. Sustainability Plan
In 2012, Iveco and FPT Industrial suppliers completed around eight thousand data sheets. By extending the IMDS across all Our commitments on pages 44-45
its companies, Fiat Industrial Group aims to further improve its knowledge of vehicle composition and the management of Glossary
AIAG, Audit, IMDS, ISO 14001,
environmental aspects of related products. REACH, Tier-2 supplier

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 Social SUPPLIERS
Dimension

Ongoing dialogue with suppliers

Fiat Industrial Group believes that suppliers are key partners for growth, and as such, is committed to constant
engagement and communication with them. In 2012, the company continued to strengthen relationships with suppliers,
as demonstrated by the many long-standing and mutually beneficial alliances in place and the minimal number of disputes.
Numerous events and activities are aimed at encouraging ongoing dialogue with suppliers.
The dedicated internet portal is the primary instrument used by the Group to share information with its suppliers.
It contains information on technical requirements, supply scheduling and quality and the results of compliance tests carried
out on new components. Suppliers, in turn, can use the portal to communicate with the Group, enter details of supply
contract bids, specify the origin of components, update their contact details, and so on.
In keeping with previous years, initiatives continued to facilitate the exchange of ideas and information, including the
Technology Days (in 2012 ten events were organized), which saw the participation of around 1,600 people. During these
Total of 10 meetings, industry-leading suppliers in innovation, technology and quality discussed specific issues and shared information
Technology on recent technological developments.
Continuous improvement is also seen in World Class Manufacturing Purchasing, which, in collaboration with the World
Days Class Manufacturing (WCM) team, has continued providing its advice to suppliers intending to implement the WCM
system (see also pages 107-111). During the year, WCM was implemented at additional supplier plants, reaching a total of 68
supplier sites. This means they now apply what is considered to be one of the world’s leading set of manufacturing standards.
A total of three executive conventions have been held to examine the current status of application of the program and
the commitment of the senior management that fuels it.

Sustainability Plan
Our commitments on page 46
Glossary
WCM

236
 The voice of our stakeholders 68 supplier
Technology Day is an experience that sees the active engagement of some of the Group’s main
plants
suppliers and provides an opportunity for a constructive exchange of know-how and ideas.
implementing the
WCM
Ludwig Hoferer, Vice President Sales Original Equipment Fiat S.p.A. & Fiat Industrial S.p.A.,
Robert Bosch GmbH Branch in Italy:
“Bosch regards commitment to customer as a core business value. The Technology Day
organized by Fiat Industrial offers two of the world’s biggest names in industrial transport
an ideal venue to strengthen their relationship, discuss requirements, and share ideas on new
technologies. It is also an excellent starting point for exploring new business opportunities and
maintaining high product standards. The Technology Day engages experts and managers from
both Fiat Industrial and various Bosch departments, and fosters the creation of new synergies
and solutions to meet the demands of the industrial vehicles, agricultural, and construction
equipment sectors. This event is also an opportunity for Fiat Industrial to experience our
technical presentations and latest innovations, and to visit our product exhibition first-hand.
During 2012’s Technology Day held at Turin’s Fiat Industrial Village, the participants interested in safe, clean, economical and
comfortable driving were given the opportunity to take test drives to try some of our new systems in place.
Technology Day 2012 allowed identifying new areas of collaboration, which will be assessed by the representatives of the relevant
departments. Moreover, the Group managers at the event were able to discuss and agree on new future strategic orientations for
various projects”.

Such sharing of expertise translates into on-site training provided to each of the supplier plants involved, with the support
of Fiat Industrial Group WCM specialists, and benchmarking through visits to Fiat Industrial Group facilities arranged to
share best practice. In the supplier plants where the implementation of WCM is farther along, significant results have

dimension
Social
been achieved mainly in the model areas. For example, in terms of safety improvement, there were no injuries (results
from the best chemical supplier plant); for people involvement, 67% of people in the plant were involved at least in one
WCM project (results coming from the best electrical supplier plant), a 43% reduction of non-value added activities
(results coming from the best mechanical supplier plant). These results mean a better use of resources and, in the long
run, increased business competitiveness.
Furthermore, the Group continues to promote numerous initiatives to encourage innovation among suppliers.
One highlight is the Supplier Performance (Su.Per) program, which advocates a proactive attitude to business, sharing
the economic benefits, which stem from the introduction of the innovative methods and technologies suggested. In 2012,
more than 50 suppliers benefited from this program (in line with 2011), while more than 200 proposals were put into
practice, with economic benefits achieved with a value of over €10 million.
One of the projects developed together with Iveco and suppliers saw the introduction of a new plastic component
to improve the aerodynamics of the Iveco Stralis. This solution also allows for a reduction in fuel consumption, and
consequently, a decrease in CO2 emissions. The new aerodynamic kit cuts costs by €244 per unit.
Finally, a specific email address was set up as a further channel of communication for information requests or to draw
attention to cases or situations in which requirements are not met along the supply chain.

237
 Social SUPPLIERS
Dimension

Brazil
LOCAL SUPPLIERS
Developing local skills, transferring technical and management expertise and supporting local enterprise are all Fiat Industrial Group objectives. Creating an ongoing relationship
with local suppliers leads to positive results, both in the reduction of risks associated with operational activities and in cost optimization.
Fiat Industrial Group promotes the World Class Manufacturing program among local supplier plants, with a view to sharing best practices and methodologies. In Brazil,
13 supplier plants have just started in adopting the WCM framework.
In Latin America, local supplier spend is considerable; in 2012 Fiat Industrial Group contracted around 78% of spending in procurement to local suppliers.

A culture of sustainability
Initiatives targeting employees who manage supplier relationships have been consolidated over previous years, and
directed to ensure sufficient awareness of sustainability and good governance issues through an ongoing dialogue with
the suppliers in question.
Buyers and Supplier Quality Engineers (SQE) have taken part in online training programs to reinforce their knowledge of the
Code of Conduct, and to deepen their understanding of various key themes relating to sustainability.

GRI-G3.1
EC6, HR3
Sustainability Plan
Our commitments on page 45
Glossary
WCM

238
Up to 2012, the training course had seen the participation of
446 people, and was attended over the last year by buyers and
SQEs in Poland, Turkey, Brazil, China and India.
Also in 2012, the variable compensation system for SQE
Managers and their team members continued to include
sustainability criteria, for assessing their performance.

Support for suppliers in difficulty

The global financial meltdown and the continued economic
crisis in Europe demanded close monitoring and management
of the critical situations arising along the supply chain.
Fiat Industrial Group has bolstered the structures and
mechanisms in place to manage suppliers in financial
difficulty, focusing on promptly identifying high-risk
situations and stabilizing these through the adoption
of appropriate measures to ensure supply continuity.
These actions are carried out in partnership with other
manufacturers, offering support to restructuring projects
and temporary financial aid with a view to saving jobs
where possible.

Highlights

dimension
Social
Creating New Horizons Together
To further strengthen the relationship between suppliers,
in September 2012, New Holland Fiat India organized a
conference for over five hundred people, including New
Holland and Case Construction suppliers and various
company officials. The event was an opportunity for Group
managers to talk to participants about current and future
company plans, market dynamics and rising client expectations.
Sharing the Group’s ambitious goals helps to build a sense
of belonging and to promote operational excellence among
suppliers, making them feel like an active part of a process
which aims, as expressed by the event’s motto, to create new
horizons together.

239
 LOCAL
COMMUNITIES
The Group is committed to promoting activities that encourage the economic,
social and cultural advancement of communities, above all in developing
countries, both directly and through collaboration with local authorities and social
organizations

Community contributions by geographic area

Fiat Industrial Group worldwide (€ thousand)

NORTH AMERICA EUROPE

1,120 1,145

LATIN AMERICA rest of the world

1,316 272

240
 LOCAL SOCIAL
COMMUNITIES DIMENSION

COMMUNITY INITIATIVES
The Community Investment Guidelines are adopted across all Group companies to ensure uniformity of management
activities for local community benefit. These Guidelines outline the management approach to these initiatives and
define the corresponding areas of application. Initiatives are usually managed at plant, company and brand level, with
a view to maintaining close relationships with local communities. Where a major financial commitment is anticipated,
these initiatives are subject to approval and supervision at corporate level. Each company has adapted the main
contents of the Guidelines to their individual business needs, developing dedicated policies and directives.
Specific indicators are used to measure the effectiveness of initiatives and their response to the needs of local
communities. These indicators allow potential opportunities to be evaluated systematically, both those linked to the
further development or extension of projects and those relating to the transformation of new initiatives into long-term
commitments.
Demonstrating its consideration for local communities, the Group gives priority to local suppliers wherever possible, making
them partners (see also pages 236-237). The Group is set on continued promotion of the World Class Manufacturing €3.8 million
program, promoting excellence in manufacturing processes and all areas of work. This bears witness to its ambition to for local
extend best practice to suppliers, supporting them in enhancing their technical and management skills. In 2012, resources
allocated by Fiat Industrial Group to communities were valued at around €3.8 million(1). In certain instances, the Group
communities
supports the community by allowing its employees to undertake voluntary activities during working hours (around
€488 thousand), in addition to directly distributing economic contributions or donations in kind.

dimension
Social
GRI-G3.1
EC1, EC8, EC9, SO1, SO9, SO10
Sustainability Plan
Our commitments on pages 46-47
Glossary
WCM

(1)
Based on non-accounting data and calculation methods. Also includes estimates. Amounts in currencies other than euros were converted at the average annual exchange
rate as at 30 November 2012. The reported figure also takes into account the cost of time spent by employees to manage and organize humanitarian initiatives promoted
by the Group. The reported figure does not include initiatives with brand promotion as their only goal. Amounts relate to all Fiat Industrial Group companies worldwide. 241
 Social LOCAL
Dimension COMMUNITIES

In 2012, Fiat Industrial Group prioritized investments designed to promote the development of communities surrounding
Group plants (approx. €1.9 million). This is proof of the Group’s desire to foster positive long-term relationships with
the communities in which it operates. The geographic area to which most resources were allocated was Latin America,
with around 34% of the total, followed by Europe with 30%. The remaining 36% went to communities in North
America and the rest of the world.
Of the community initiatives supported, 39% were social projects within the region; 18% were focused on the education
of young people, and 5% on emergency relief. The remaining 38% was allocated to various other initiatives, particularly
in the field of culture and art.

Contribution by type Contribution by category

Fiat Industrial Group worldwide Fiat Industrial Group worldwide

Time(1)
13%
Commercial initiative
28%

In-kind Cash Community investment

19% 68% 48%

Charitable donation
24%

Contribution by subject Contribution by destination

Fiat Industrial Group worldwide Fiat Industrial Group worldwide

Emergency relief
Latin America
5% Rest of the world
34%
Social welfare
7%
39%
Arts and culture
11%

Other(2)
Europe
27% North America
Young people 29% 30%
18%

(1)
Represents the monetary value of hours for volunteer work carried out by employees during working hours (also includes initiatives where companies are fully or partially
reimbursed through public funds).
242 (2)
Other includes investments in favor of Economic development and Environment.
 Highlights
FIAT INDUSTRIAL FOR CULTURE
In October 2012, Fiat Industrial sponsored the exhibition Degas, capolavori dal Musée d’Orsay (Degas, Masterpiece from the Musée
d’Orsay).The collection, on loan from the Musée d’Orsay in Paris, showcased around a hundred works by the artist, one of the most
prominent figures in French painting in the second half of the eighteenth century. In Buenos Aires (Argentina) Case IH, New Holland,
Iveco Argentina and Fiat Auto Argentina sponsored the exhibition Caravaggio y sus seguidores (Caravaggio and his followers).This free
exhibition was held at the Museo Nacional de Bellas Artes and featured a collection of around twenty of Caravaggio’s major works,
along with those of some artists influenced by his technique. For the third year running, Iveco sponsored Literata, the biggest literary
festival in the state of Minas Gerais held in Sete Lagoas (Brazil). Its principle theme was the role of literature in human development.
Over four days, the event saw widespread turnout. More than 50 schools and 19 thousand students attended.

ENGAGING IN SOCIAL WELFARE INITIATIVES

The Group attaches great importance to making a contribution to the wellbeing of the communities in which it operates.
This is achieved both through implementing independent projects and participating in those supporting social organizations
to promote a culture of sustainability, address homelessness, assist young people and the elderly and support people
with disabilities. For the sixth year running, CNH’s collaboration with Habitat for Humanity has been a major initiative.
Founded in 1976, Habitat for Humanity is a nonprofit organization based in the United States, which provides housing for
disadvantaged families and the homeless. Since it was established, it has built more than 600 thousand homes and shelters
for more than three million people worldwide. Every year CNH and its employees directly participate in these activities,

dimension
Social
GRI-G3.1
EC1, EC8, EC9, SO1, SO9, SO10
Sustainability Plan
Our commitments on pages 41, 46
Web
www. habitat.org

243
 Social LOCAL
Dimension COMMUNITIES

building a house in some of the communities in which it operates. For a week, during working hours, employees can leave
their desks for the construction site to assist in the various stages of house building (from the outer walls to the inner walls).
Over the course of the year, CNH constructed the sixth structure in Racine (USA), where a two-story home was built for
the first time. In Burr Ridge (USA), a build was held for the second consecutive year. In 2012, approximately three hundred
hours of work were dedicated to the two projects by a total of 75 employees. Fund-raising was carried out simultaneously,
to support the association’s work, and raised more than €27,400 in 2012 (through employee, company and brand donations).
Since 2007, CNH and employees have raised nearly €312 thousand in total.
In 2012, CNH renewed its support of United Way, continuing a long tradition. Present in 45 countries across the world,
this nonprofit organization works to improve living conditions in local communities, focusing in particular on education,
financial stability and healthy lifestyle. In September, Sergio Marchionne, nominated as president of fund-raising for 2012,
took part in the new campaign launch in Detroit (USA), along with hundreds of supporters. To support United Way in
its mission, CNH has brought in donations through an email campaign targeted at North American employees as well
as through other fund-raising initiatives at various company locations, from charity auctions to sporting competitions for
employees. In 2012, CNH and its employees donated more than €1.2 million to United Way.
In Italy, New Holland Agriculture and New Holland Construction, Iveco and FPT Industrial organized Al Mercato del Villaggio
(At the Village Market). The initiative saw the square at Turin’s Fiat Industrial Village (FIV) transformed into a market of
locally-sourced produce. In partnership with the Coldiretti Piemonte association and with the support of the municipality of
Turin, five open days for citizens were planned, during which farmers and local producers could sell their goods. Origin and
labeling transparency was guaranteed for every product, all in the name of sustainable shopping. The June event saw the sale
of Parmigiano Reggiano wheels which had suffered light damage in the Emilia Romagna earthquake in May 2012. Members of
GRI-G3.1 the community could purchase pieces of around a kilo at fair-trade prices not subject to markups: the entire proceeds from
EC1, EC8, EC9, SO1, SO9, SO10
Sustainability Plan the sale of four hundred kilos went to the Emilian producers. Fiat Industrial Village was also involved in the third edition of
Our commitments on page 46 Un Babbo Natale in Forma (Santa Claus in Shape), a charitable initiative supporting the Regina Margherita pediatric hospital
Web
www.transaid.org in Turin. The Santa Claus su due ruote (Santa Claus on two wheels) parade was made up of Harley Davidsons, motorbikes,
www.unitedway.org scooters and bicycles, and escorted by Iveco vehicles. It left from FIV, heading for the hospital. This initiative, organized by the
Glossary
Biodiversity Forma Onlus foundation at the Regina Margherita hospital in partnership with Iveco and FIV, had two major aims: to gather

244
citizens dressed as Santas to bring a smile to the faces of the hospital’s young patients, and to raise funds through the sale
of traditional red costumes. The money was used to buy a new portable CAT scanner for the hospital. The FPT Industrial
plant at Foggia organized another initiative in the festive period, called Natale Bimbi (Children’s Christmas). This involved not
only the children and families of employees, but also gave differently-abled children and children from nearby orphanages
the chance to spend a carefree day at the Lidia Togni circus. New Holland Agriculture and the Confederazione Italiana
Agricoltori (CIA - Italian Farming Confederation) donated a tractor to Libera, an organization dedicated to engaging civil
society in the fight against criminal groups and promoting justice and respect for the law. The New Holland tractor will be used
by the new cooperative Rosario Livatino di Naro (Agrigento) which in late June began work on land seized from the Mafia.
The Cooperative is named in memory of the boy judge murdered by the Mafia on 21 September 1990. This tractor is the
second donated to Libera by New Holland and the CIA; the first of these was given in 2010.
Iveco Czech Republic was awarded a prize by the Vysoké Mýto municipality in the Czech Republic for the support it
provided to social initiatives. This prize recognizes Iveco’s dedication to regional nursery schools, care homes and rest homes
(providing equipment for handicapped children, supporting the construction of nursing homes), along with the Group’s
commitment to regional educational initiatives at the University of Pardubice, the Secondary Automotive School at Holice
and Vysoké Mýto.
The Group’s commitment to African communities was demonstrated in the Limpopo Province in South Africa, where New
Holland Agriculture supported a biodiversity conservation project. The CNH brand donated a TT55 tractor to the Ntlo ya
Lerato Rhino Orphanage nature reserve. The reserve specializes in taking rhinoceros calves that have been orphaned by poaching,
rearing them to adulthood, and reintroducing them into the wild; the tractor will be used for the general maintenance of the
huge expanse of land. The New Holland South Africa supplier and the dealership network have joined forces in support of
the project, agreeing to supply assistance and scheduled maintenance for the tractor free of charge, including implements and
supply of spare parts. Iveco’s collaboration with the UK organization Transaid , which began in 2005, continued. This association
is devoted to improving transport systems to decrease poverty and improve the quality of life of African populations.
New Holland sponsored Rio+20, the United Nations Conference on Sustainable Development, which was held in June
2012 in Rio de Janeiro. Organized jointly by the United Nations Convention to Combat Desertification (UNCCD), the

dimension
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245
 Social LOCAL
Dimension COMMUNITIES

United Nations Framework Convention on Climate Change (UNFCCC) and the Convention on Biological Diversity (CBD),
it celebrated the progress made since the first Rio summit in 1992. The themes of the summit were among the pillars of the
Clean Energy Leader strategy established by New Holland, at the forefront of sustainable agriculture since 2006.
In December 2012, New Holland Agriculture sponsored and participated as a panelist in the Sustainable Innovation
Forum, hosted in partnership with the United Nations Environment Programme (UNEP), and held alongside the Doha
2012 UN Climate Change Conference (COP18) in Qatar. The Forum brought together senior figures from business,
governments and NGOs to discuss how to mobilize public-private partnerships, the challenges of sustainable urbanization,
and the latest advances in technology and innovation.

Brazil
PLANTAR & CONSTRUIR
New Holland Agriculture and New Holland Construction are taking part in the Plantar & Construir program, which aims to contribute to the sustainable development
of the regions in which they are present. As part of this program, in 2012, New Holland supported the Pequeno Príncipe pediatric hospital in Curitiba, as they had done
in 2007 and 2008, with a donation of almost €245 thousand to purchase new equipment and supplies. The Pequeno Príncipe hospital provides medical treatments,
along with workshops where children can dance, listen to stories and play. This year, New Holland also supported the Magia da Dança (The Magic of Dance) project,
which gave more than a thousand children and their families the chance to make new friends and dance to popular and classical music. The outcome of this project
and others has been overwhelmingly positive: cases of depression in children have been eliminated, and the hospital maintains that the average length of stay has
been reduced by 50%, with a 20% drop in infection rates. This program also includes numerous initiatives focused on young people: both through training programs
(Graffiti: Invenções no Muro - Graffiti: Invention on Walls) and associations dedicated to volunteer work (São Miguel Arcanjo).

New Holland Agriculture was also Associate Sponsor and speaker at the World Sustainable Agriculture Congress, held in
Singapore in July. The conference gathered all food value chain stakeholders, including leaders from agricultural, farming
and food industries, non-governmental organizations (NGOs), academics and politicians, to discuss the challenges and the
solutions needed to build future food security through sustainable farming practices. New Holland’s participation in these
conferences is further testament of the brand’s commitment in supporting local farming communities through a smooth
transition to sustainable development.
In this respect, New Holland Agriculture has been recognized with the 2012 Agriculture Leadership Award during
the 5th Agriculture Leadership Summit on the Environment and Agriculture in India. The award, given annually to
individuals and organizations that have made outstanding contributions in agriculture, was assigned to New Holland
Fiat India for “having defined a new framework for a sustainable approach to agriculture through the mechanization of
sugar cane harvesting and biomass collection” in the country.
GRI-G3.1
EC1, EC8, EC9, SO1, SO9, SO10
Sustainability Plan
UPLIFTING PEOPLE
Our commitments on page 47 Fiat Industrial Group is dedicated to helping the communities in which it operates, with a special focus on providing
Web
www.unscd2012.org support and training to young people. In addition to awarding prizes and study grants to the children of employees
www.ffa.org (see also page 193), all Group companies endorse initiatives in partnership with private institutions, local government
Glossary
Stakeholders organizations and other stakeholders.

246
In the United States, Case IH, CNH Capital and New Holland Agriculture are silver sponsors of Future Farmers of
America (FFA), which has been providing agricultural training since 1928. To assist the educational organization in raising
money, in 2012 Case IH and Case Construction Equipment donated a special Red Power skid steer to be sold at auction.
This machine is a collector’s model, a Case Construction Equipment SV250 skid steer loader with 82 HP and 134 kilos
of nominal operating capacity. This unique piece was valued at more than €58 thousand.
In Italy, Iveco’s commitment to the TechPro2 Iveco project continued throughout 2012. Consisting of a targeted three-year

dimension
€1.5 million

Social
professional training program, the project was launched in 2011 in collaboration with the National Center for Salesian
Works - Professional and Vocational Training (CNOS-FAP). Around a hundred technical experts from the industrial vehicle
supporting
sector are trained to respond to the growing demand for skilled labor from Iveco dealerships and the authorized service
network. The three-year training process is provided in part at the Centro di Formazione Professionale (CFP - Professional Multiação
Training Center) Salesiano di Fossano (Cuneo) with a technical phase completed directly at one of several Iveco workshops. initiative since 2007
The TechPro2 Iveco project was also rolled out in Brazil in 2012. The Salesian school in Belèm will be hosting professional
training courses in the next few months, with a view to training twenty young people in motor vehicle repairs in order
to facilitate their entry into the working world. ISVOR trainers were involved in the initiative, providing students with the
best technical training available. Iveco has also been operating with the Salesian Works for a number of years on boosting
mechanical and technical skills in countries lacking in specialized expertise. Under this partnership, Iveco provides technical
equipment and trains local instructors at the Don Bosco School in Cairo (Egypt).
Case Construction Equipment and Case IH have been supporting the Multiação initiative in Brazil since 2007. This
program invests in the development of communities surrounding the Sorocaba industrial plant, and includes a range
of activities from sponsored sporting events to partnerships with major non-governmental organizations dedicated to

247
 Social LOCAL
Dimension COMMUNITIES

promoting education and culture, as well as construction equipment loans and donations to the Sorocaba municipality
for local community projects. Since the end of 2008, Case Construction Equipment and Case IH and the Multiação
program have invested nearly €1.5 million in Sorocaba public institutions and in the city’s basketball team. As part of
the Plantar & Construir program in 2012, the Graffiti: Invenções no Muro was backed by the Associazione Volontari per il
Servizio Internazionale (AVSI – Voluntary International Service Association), New Holland Agriculture and New Holland
Construction, and local authorities. This initiative aimed to offer pathways to social inclusion for disadvantaged young
people through culture. The program lasted eight months and engaged 17 young people aged 12 to 24 years from the
Belo Horizonte urban region. These young people received lessons in graffiti, drawing, and painting techniques, history

Brazil
PROJETO SEMENTINHA
In 2012, a new initiative was launched at the FPT Industrial plant at Sete Lagoas, with the goal of engaging children from the
local area and introducing them to the concept of responsibility with regard to environmental themes, often overlooked in
times of social fragility. Through educational activities in close contact with nature, positive relationships can flourish between the
company, the local community and a region suffering unrest. FPT Industrial launched Projeto Sementinha (Small Seed Project) to
defend a culture of respect for the environment starting in childhood, while offsetting the Sete Lagoas plant emissions through
reforestation activities. First started in May 2012, and already in its third edition, this educational project focuses on transmitting
a sense of environmental responsibility to future generations, inviting even the youngest children to plant trees and care for their
surroundings. The students involved in the project, aged from six to ten years, visit the plant and take part in an interactive lesson
GRI-G3.1
EC1, EC8, EC9, SO1, SO9, SO10 on environmental themes, before planting seeds and plants. The final goal of the scheme is to pass on knowledge and educational
Sustainability Plan material on the environment, recycling, conservation of indigenous species and non-renewable natural resources. The intention is to
Our commitments on page 47 provide the young participants with an awareness that they can share with friends and family. The project is enjoying great success
Web
www.casemultiacao.com
among the students with increasing numbers of schools joining the initiative. In 2012, 150 children from three schools in Sete Lagoas
Glossary were involved in the project; for 2013, the goal is to engage more than three hundred children.
Biodiversity

248
of art and civics. At the end of the course, their knowledge
was put into practice on the walls of the Contagem CNH
logistics center, where the entire community was engaged
in painting a mural. Furthermore, as part of the Plantar &
Construir project in Barbacena, support is provided to the
São Miguel Arcanjo association which encourages a renewed
sense of citizenship and defends the rights of more than
four hundred children and teenagers. The association offers
training and education courses, as well as provides a friendly
space for children and young people whose rights have been
compromised. The association owns buildings that serve as
accommodation as well as housing dental practices, along
with a library, laundry room and cafeteria (which prepares
1,500 meals a day) as well as an industrial bakery, joinery,
workshop, theater, sports field and various other classrooms
and lodgings. Farmland is also available for the cultivation of
forage crops, which yield ninety tons of produce annually,
sold throughout the south central Minas Gerais region.
Iveco supports the Formare program in Sete Lagos (Brazil)
which aims to promote the social inclusion of disadvantaged
young people through training. In partnership with the
Fundação Iochpe, twenty young apprentices were selected to
participate in the program. Run by ninety Iveco volunteers,
the course focuses on developing skills in communication,
teamwork, problem solving and manufacturing processes.
Launched in the third quarter of 2012, the training scheme

dimension
Social
lasts around a year. At the end of this period, students receive
a technical specialist diploma in finishing and final assembly
processes along with a diploma recognized by the Ministry of
Public Education. The Espaço Ciência project, in collaboration
with the Inhotim Institute of Contemporary Art, involves
schools in Sete Lagos, with a view to introducing students to
the following issues: botany, sustainability, responsible use of
natural resources, preservation of biodiversity, quality of life
and climate change. The project took place in the first half
of 2012, with the participation of 1,600 students from four
different public schools in Sete Lagos.
In October 2012, New Holland Fiat India inaugurated the first
Agri Training Center in Bhubaneswar -India-, in partnership
with the Odisha Government, Department of Agriculture.
The training center aims to provide unemployed rural youth

249
 Social LOCAL
Dimension COMMUNITIES

populace with the specific skills necessary to find suitable employment in mechanized agricultural farming, under the
Odisha Government program. The training classes will include maintenance of tractors and overhauling of major tractor
sub-assemblies as well as repair and maintenance of other mechanized agricultural equipment. The Agri Training Center
will be equipped with special tools for the in-depth training provided by New Holland Agriculture. Spread over more
than two thousand square feet of land, provided by the Department of Agriculture’s Odisha Farm Machinery Research
& Development Center, it will train around five hundred unemployed rural youths in the first year, and a thousand from
the second year on.

PARTICIPATING IN EMERGENCY RELIEF EFFORTS

Fiat Industrial Group always aims to respond rapidly to the needs of populations affected by natural disasters. When a
disaster strikes, the Group and its companies channel resources (vehicles, funds and technical support) and employee
efforts to aid the communities hit.

In the United States, Case Construction Equipment sent more than three thousand models of construction machinery to
the Toys for Tots foundation following the destruction of one of their toy warehouses by Hurricane Sandy. These models
of Case Construction Equipment, including wheel loaders and skid steers, were among the toys distributed during the
holiday season to the children of families in need.
Following the severe earthquake that hit Emilia Romagna in May 2012, Group companies provided various forms of
assistance. CNH, which has a plant in Modena and a Research and Development and logistics center at San Matteo (Modena),
GRI-G3.1 sent an emergency team to help the Civil Protection Service, providing construction equipment, mobile units and crews.
EC1, EC8, EC9, SO1, SO9, SO10
Sustainability Plan The team worked independently within the operational remit of the Civil Protection Service. Specifically, CNH deployed
Our commitments on page 47 twelve machineries, both for light loads (telescopic lifting equipment, mini excavators, skid steers, backhoe loaders) and heavy
(excavators, wheel loaders) from New Holland, five mobile units and Iveco trucks for the transportation of debris. Twenty
operators and mechanics assisted with rescue operations, including CNH and dealership personnel. This team, organized
into four groups, operated in some of the worst hit municipalities in the Modena province - Cavezzo, Finale Emilia and

250
 The voice of our stakeholders
After the earthquake that hit Emilia Romagna in May 2012, Fiat Industrial Group
worked alongside the Red Cross Italy, always first in line to distribute materials,
vehicles and above all personnel on a large scale, to assist those most in need.

Ignazio Schintu, Emergency Manager, Red Cross Italy:

“On arrival in a disaster-stricken place, time is often short, while needs are
overwhelming. In these situations, it is essential that after the “media boom”,
attention remains focused on those in difficulty to accompany them and help them
overcome a critical period. We stayed in Emilia Romagna for five months, side by
side with many volunteers from all over Italy ready to offer their help to their Emilian
brothers and sisters who had been affected by the tragedy. But good intentions
alone are not enough: for this reason, when someone lends you a hand, it should
only ever be met with enthusiasm. This was the case when Fiat Industrial offered
its very generous assistance. With the utmost transparency, but above all with the
greatest concern for those affected by the earthquake, the Group developed a
project dedicated to the most vulnerable individuals, so that they would not feel
alone, despite the great losses they had suffered. The funds donated were used to
meet the needs of the shelters prepared in the municipalities of Concordia sulla
Secchia and Rovereto sulla Secchia. These donations allowed for the management
of activities dedicated to the elderly, children and everything involving healthcare in
and around the camps, supporting more than a thousand individuals”.

Medolla - in order to construct a drainage system and prepare the shelters for evacuees, as well as cleaning the streets in the
town center, demolishing dangerous buildings and clearing out ruins. In addition, because of unsafe conditions of numerous

dimension
industrial warehouses in the areas hit by the earthquake, the company provided the industrial complex at Cento (Ferrara)

Social
to local businesses in need of a space to quickly recommence manufacturing activities. FPT Industrial gave a generator to the
National Alpine Association’s Civil Protection Unit, which was used to power the kitchens and air-conditioning system in the
camps in Cento. To support the emergency vehicles provided by the Fire Department, Iveco immediately sent a mobile unit
and a team of technicians to the San Prospero camp to ensure the correct functioning of vehicles and provide any necessary
spare parts sent out by the support network. Initially the squad consisted of four technicians on call 24 hours a day, and once
the critical period had passed, two of these four people remained.
Fiat Industrial Group also donated €125 thousand to deliver immediate relief to the population, doubling the amount
collected from employees. The money went to various organizations, among which the Red Cross, and the Nazareno
Social Cooperative in Carpi (Modena). This center, which suffered extensive damage during the earthquake, provides
shelter, education and professional training to children and adults with disabilities. All employee donations were channeled
into funding the temporary accommodation, food and recommencement of work for those staying at the center.
With regard to customer support, the CNH assistance network arranged visits to farms and land contractors who suffered
damage to equipment to help them get back to work as soon as possible. Furthermore, CNH offered psychological
support to employees from the Modena and San Matteo locations, through both group and individual counseling.

251
APPENDIX

254 Report Parameters

258 Additional information
276 Statements of assurance
278 Index of GRI-G3.1 content
284 Glossary
290 Contacts
 Appendix Report
Parameters

Report Parameters
Through the Sustainability Report, Fiat Industrial Group aims to provide its stakeholders a comprehensive picture of the
activities carried out, results achieved and commitments made in the economic, environmental and social spheres.
Starting from 2012, a summary of the most important sustainability issues, identified through a materiality analysis
conducted internally, is also included within the Annual Report, where their main economic impact is also brought to light.
Having come into being on 1 January 2011, this is Fiat Industrial Group’s second Sustainability Report. The Sustainability Report
has been prepared in conformity with the guidelines of the Global Reporting Initiative, GRI-G3.1(1), and has been externally
audited by an independent organization to satisfy the criteria of Application Level A+, the highest level possible(2).

Objectives, scope and methodology

The subjects addressed in the Fiat Industrial Group Sustainability Report have been chosen on the basis of an analysis that
takes account of the information needs of stakeholders concerning the Group’s commitments and performance in the area
of sustainability (see also pages 26-47), and the requirements of the principal international reporting standards and the
specific, economic, environmental and social characteristics of the capital goods industry. Significant attention is given to the
information requirements of Socially Responsible Investors (SRIs) and financial and non-financial analysts who periodically
review the Group’s sustainability performance (see also pages 78-80). There then follows an analysis of the common practice
and best practice of key competitors and of companies recognized for their excellence in sustainability reporting.
This analysis is supported by a process of sharing and comparison which cuts across the Group’s internal structure,
through a network of competent professionals in the various organizational areas which oversee the implementation of
sustainability initiatives and performance reporting.
The areas discussed (governance, products, manufacturing processes, human resources management and relationships
with local communities, the dealer network, customers and suppliers) are organized into five main sections. The first
illustrates the Group’s organizational structure; the second gives an overview of its strategic approach to sustainability; the
third and fourth sections report on environmental and social initiatives implemented in 2012; and the last section provides
information on additional economic, environmental and social indicators.
The strategic approach is laid out in the Sustainability Plan, where the Group identifies action priorities and sets out
commitments and targets for improvement consistent with and integrated into its business strategy.
Based on the feedback obtained during meetings and interviews with the principal stakeholders, the report examines
GRI-G3.1
certain areas in depth, specifically:
2.9, 3.1, 3.2, 3.3, 3.5, 3.6, n the integration, where possible, of indicators which quantify environmental and social issues in economic terms, as a
3.7, 3.8, 3.9, 3.10, 3.11, 4.15
Web
first step towards an integrated report
www.globalrepor ting.org n the updating of the Sustainability Plan and the addition of new improvement targets
Glossary
Audit, SRI, Staheholders

(1)
The Global Reporting Initiative (GRI) is a multi-stakeholder association for the development and disclosure of guidelines for non-financial reporting. The GRI-G3.1
guidelines set out principles and indicators for reporting on the economic, environmental and social dimensions and represent a standard for content to assist the
organization in the preparation of the Sustainability Report, enabling comparability over time and between similar organizations.
(2)
Level A is the maximum level, on a scale from A to C, and identifies the coverage of the indicators suggested by the GRI. The plus sign (+) indicates that data content has
254 been verified by a third party certifying body.
n the description of the process of product design and definition, during
the entire product life cycle, and strategies adopted to reduce its
environmental footprint
n the exploration of certain environmental issues of particular significance,

such as the hazards associated with water scarcity and biodiversity

n the highlighting of projects and initiatives carried out in plants in

Brazil, as proof of the spread of the culture of sustainability and of the

implementation of best practice in all countries in which the Group
operates and, particularly, in emerging markets
n the explanation of measures the Group is carrying out in order to fulfill

its disclosure obligations in accordance with the regulations on conflict

minerals.
Unless otherwise indicated, the information and data contained in this
Sustainability Report relates to the 2012 financial year (which coincides with
the calendar year) and to all Fiat Industrial Group companies worldwide
falling within the scope of consolidation at 31 December 2012. Unless
otherwise indicated, Group refers to Fiat Industrial Group, and Group
sector or company refers to CNH, Iveco and FPT Industrial. The exclusion
of any geographic area, company or specific site from the scope of reporting
is attributable to the inability to obtain data of a satisfactory quality or to
its immateriality in relation to the Group as a whole, as is often the case for
newly-acquired entities, joint ventures and production activities that are not
yet fully operational. In some cases, entities that are not consolidated in the
financial statements have been included in the scope of the report because
they have significant environmental and social impact. Any significant
variations in the scope of the report or in the calculation of specific data
are expressly indicated in the text and tables in the appendix. Specifically,
regarding the scope of the report:
n World Class Manufacturing data relate to 64 plants consolidated in the

Annual Report as at 31 December 2012

n occupational health and safety data relate to 62,564 employees, repre-

senting approximately 92.1% of the total Group workforce

n the Group’s environmental and energy performance relates to 59 fully consolidated plants, representing over 97% of

the Group’s industrial revenues(1). The CNH plant in Berlin (Germany), running at reduced productive capacity, is not

Appendix
included in the scope of consolidation for ISO 14001 certification.
Due to closure, the scope of the 2012 report on environmental performance does not include the Iveco plants in GRI-G3.1
2.9, 3.1, 3.2, 3.3, 3.5, 3.6,
Barcelona (Spain) and Valle Ufita (Italy), while the scope of the report on energy performance does not include also the 3.7, 3.8, 3.9, 3.10, 3.11, 4.15
CNH plants in Dublin (Ireland) and Imola (Italy). The FPT Industrial reporting scope remains unaffected. Glossary
Biodiversity, Conflict minerals,
It should be noted that the definition of plant used in the Sustainability Report coincides with that used in the Annual Report. GRI, ISO 14001

(1)
Revenues attributable to the operations of plants directly controlled by the Group. 255
 Appendix Report
Parameters

The production of the Sustainability Report has been supported by a systematic process for the retrieval of data and
information, fundamental for the correct reporting of the Group’s sustainability performance. Approximately 200 Key
Performance Indicators (KPI) have been reported, and, where available, existing management control and information
systems have been used, in order to ensure reliability of information flows and data accuracy. For certain indicators,
a specific reporting process has been established using electronic databases (e.g., Standard Aggregation Data for
environmental, health and safety data, and the SAP HR platform for human resources data) or spreadsheets that are
populated directly by the individual or entity responsible for each aspect worldwide and verified by the person in charge.
To enable comparison over time, the data presented covers the three year period from 2010 to 2012, restated, where
possible, to cover the activities of all three Group companies prior to the demerger from Fiat S.p.A. Indeed, the current
Sustainability Report is the second produced by Fiat Industrial as an autonomous group; an aggregate report on the companies
which today make up the Group was contained in the 2010 Fiat S.p.A. Sustainability Report prior to the demerger.
To highlight trends in environmental and energy performance for each company in the medium-long term, some
normalized indices per unit of production have been defined. The aim is to highlight improvements in performance arising
from evolutions in processes, and not simply tied to variations in production volumes. The units of production chosen are
specific to the nature of each company: hours of production for CNH and Iveco, and units produced for FPT Industrial.
Based on these normalized indices, improvement targets have been set for each company.
In the report, details on calculation methods and interpretations of trends are provided alongside the corresponding graphs and

GRI-G3.1
2.9, 3.1, 3.2, 3.3, 3.5, 3.6,
3.7, 3.8, 3.9, 3.10, 3.11, 4.15
Glossary
KPI, SAD

256
tables. The value added through the activities of the Group is calculated, using an internal method, as the difference between
production value and the associated intermediate costs, net of depreciation and amortization. Net value added worldwide
is then divided among the various beneficiaries as follows: employees (direct remuneration comprising salaries, wages and
severance pay, and indirect remuneration made up of welfare benefits); Governments and Public Institutions (income tax);
finance providers (interest paid on borrowed capital); shareholders (dividends payable); company (share of reinvested profits);
and local communities.
Economic data directly collected and not taken from the Annual Report was converted into euros using the average
exchange rate as at 30 November 2012.
Finally, data on relative pay for men and women have not been published for reasons of confidentiality.

ENSURING quality of information

The process of defining the contents of the report is based on principles of materiality, stakeholder inclusiveness,
sustainability context and completeness. Indeed, this complex and systematic process carried out during the planning
phase of the report is focused on defining its scope and themes which, due to their economic, environmental and social
impact, are considered important for stakeholders. In addition, criteria are established to represent material information
as fully as possible and to prioritize action plans regarding environmental and social issues.
The process for ensuring the quality of information, on the other hand, concerns the principles of balance, comparability,
accuracy, timeliness, clarity and reliability laid down by the GRI. Indeed, the Sustainability Report, produced annually,
reports positive trends as well as points of weakness and areas for improvement, with the aim of presenting the Group’s
sustainability performance to its stakeholders in a clear and balanced way. Furthermore, the information and quantitative
data collection process has been organized in such a way as to ensure that data may be compared over several years and
between similar organizations, with the aim of enabling an accurate reading of the information supplied.
In order to reinforce its reliability and the Group’s commitment regarding its contents, the Sustainability Report is subject
to verification, analysis and approval by several parties. Specifically, the document is:
n prepared by the Sustainability Unit, which reports to the Chief Financial Officer and centrally coordinates and engages

the relevant sectors and Group functions

n approved by the Group Executive Council, the highest decision-making body, which is headed by the Group Chairman

and made up of the Regional Chief Operating Officers, which are in turn headed by the Group COO, Brand Leaders,
Industrial Process Leaders and by central functions such as the Chief Financial Officer and the Head of Human Resources
n examined by the Nominating, Corporate Governance and Sustainability Committee, a sub-committee of the Board of

Directors of Fiat Industrial

n subject to an assurance audit by SGS Italia S.p.A.(1), an independent certification body, in accordance with the

Sustainability Reporting Assurance procedure (SRA), in compliance with the GRI-G3.1 guidelines and the AA1000 APS
(2008) standard. SGS is an AA1000 Licensed Assurance Provider. In addition, the Group’s sustainability management

Appendix
system is aligned with ISO 26000 Guidelines on social responsibility. The statement of assurance, which describes the
activities carried out and the opinions expressed, is provided on page 276 GRI-G3.1
2.9, 3.1, 3.2, 3.3, 3.5, 3.6,
n presented together with the Annual Report, at the Annual General Meeting of Fiat Industrial Group to provide a 3.7, 3.8, 3.9, 3.10, 3.11, 4.15
complete, up-to-date overview of the Group’s financial, environmental and social performance Glossary
AA1000, Audit, GRI,
n published and freely available for download from the sustainability section of the Group website. ISO 26000, Stakeholders

(1)
Sergio Marchionne and John Elkann, Chairman and Director of the Fiat Industrial Board, are also, respectively, Chairman and non-executive director of the Board of
Directors of SGS S.A. 257
 Appendix ADDITIONAL
INFORMATION

ADDITIONAL INFORMATION
This section contains additional figures and information to that provided in other parts of the Sustainability Report. These
are based on the recommendations of the GRI-G3.1 guidelines, in addition to responding to the specific requirements of
SRI analysts and investors.

ECONOMIC DIMENSION
Compliance
A summary is provided below of the final court judgments, final arbitration awards and other final orders deemed
material because of their value and for which a final ruling was handed down in 2012 against Fiat Industrial Group
companies (final judgments).
There were no significant final judgments concerning violations of law governing environmental protection, anti-
competitive behavior, antitrust, intellectual property, advertising and marketing, product and service information, data
protection, liability for defective products, or violations of the rights of local communities.
Final judgments were, however, handed down against Fiat Industrial Group companies in relation to the following:
n contractual liability for defective products, totaling €50 thousand

n contractual liability breach totaling €500 thousand.

Following ordinary inspection activities, Bank of Italy levied a fine totaling €60 thousand against the directors of Iveco
Finanziaria S.p.A., which at the time was controlled by the Barclays Group.
GRI-G3.1 Lastly, final judgments handed down against Fiat Industrial Group companies in 2012 for labor and social security disputes
EN28, HR9, SO7, SO8, SO10,
PR2, PR4, PR7, PR8, PR9 involved a total payment corresponding to 0.1% of labor costs for the year. The level of litigation was proportionately higher
Glossary in Brazil where final judgments, mainly relating to the interpretation of particularly controversial legislation, accounted for
SRI
64% of total final judgments, corresponding to approx. 69% of the total payout made by the Group. However, within the
specific context of Brazil, these final judgments were not exceptional in nature or in number.

258
ENVIRONMENTAL dimension

ATMOSPHERIC EMISSIONS
Volatile Organic Compounds (VOC) Nitrogen Oxides (NOx)
Fiat Industrial Group worldwide (kg) Fiat Industrial Group worldwide (tons)
2012 2011 2010 2012 2011 2010
CNH 1,504,194 1,483,138 1,239,197 CNH 283.9 286.5 273.0
Iveco 1,009,659 1,244,516 1,226,090 Iveco 107.8 125.2 131.0
FPT Industrial 38,156 39,595 40,693 FPT Industrial 28.7 27.8 17.5
Total 2,552,009 2,767,249 2,505,980 Total 420.4 439.5 421.5

Sulfur Oxides (SOx) Dust

Fiat Industrial Group worldwide (tons) Fiat Industrial Group worldwide (tons)
2012 2011(1) 2010 2012 2011(1) 2010
CNH 7.9 10.9 12.7 CNH 0.7 0.9 1.1
Iveco 41.6 53.1 55.0 Iveco 4.5 5.4 5.7
FPT Industrial 1.1 0.9 0.7 FPT Industrial 0.1 0.1 0.1
Total 50.6 64.9 68.4 Total 5.3 6.4 6.9

Presence of Ozone Depleting Substances (ODS)(2)

Fiat Industrial Group worldwide (kg)
2012 Fiat Industrial Group CNH Iveco FPT Industrial
Plants 59 29 21 9
CFCs 26.01 3.31 22.50 0.20
HCFCs 6,193.72 3,437.96 2,234.82 520.94
Halons - - - -
Methyl bromide - - - -
Other CFCs fully halogentated - - - -
Total 6,219.73 3,441.27 2,257.32 521.14

2011
Plants 61 29 23 9
CFCs 38.28 15.00 23.08 0.20
HCFCs 7,755.47 4,958.66 2,275.87 520.94
Halons - - - -
Methyl bromide - - - -
Other CFCs fully halogentated - - - -
Total 7,793.75 4,973.66 2,298.95 521.14

Appendix
WATER MANAGEMENT

Water withdrawal per production unit

Fiat Industrial Group worldwide (m3/hour of production)
2012 2011 2010
Fiat Industrial Group 0.19 0.20 0.24

(1)
The data for 2011 have been adjusted compared with those in 2011 Sustainability Report.
(2)
Data include quantities of ozone-depleting substances found in office air conditioning equipment, equal to approximately 3,600 kilos in 2011 and 4,309 kilos in 2012. 259
 Appendix ADDITIONAL
INFORMATION

Water withdrawal and discharge

Fiat Industrial Group worldwide (thousands of m3)
2012 Fiat Industrial Group CNH Iveco FPT Industrial
Plants 59 29 21 9
Withdrawal
Groundwater 4,724 1,061 1,706 1,957
Municipal water supply 2,436 1,381 654 401
Surface water 23 - 23 -
of which salt water - - - -
Other 1 1 - -
Total water withdrawal 7,184 2,443 2,383 2,358
Discharge
Surface water 1,195 429 548 218
of which salt water - - - -
Public sewer systems 3,439 1,336 618 1,485
Other destinations 40 30 10 -
Total water discharge 4,674 1,795 1,176 1,703

2011
Plants 61 29 23 9
Withdrawal
Groundwater 5,278 969 2,094 2,215
Municipal water supply 2,357 1,168 766 423
Surface water 30 - 30 -
of which salt water - - - -
Other 9 2 - 7
Total water withdrawal 7,674 2,139 2,890 2,645
Discharge
Surface water 1,338 410 772 156
of which salt water - - - -
Public sewer systems 3,901 1,153 858 1,890
Other destinations 47 34 13 -
Total water discharge 5,286 1,597 1,643 2,046

2010
Plants 63 31 23 9
Withdrawal
Groundwater 5,090 952 2,344 1,794
Municipal water supply 2,091 1,034 683 374
Surface water 42 4 38 -
Other 13 1 - 12
Total water withdrawal 7,236 1,991 3,065 2,180
Discharge
Surface water 1,503 297 1,005 201
Public sewer systems 4,311 1,957 804 1,550
Other destinations 399 50 349 -
Total water discharge 6,213 2,304 2,158 1,751

260
Water recycling index
Fiat Industrial Group worldwide (thousands of m3)
2012 Fiat Industrial Group CNH Iveco FPT Industrial
Plants 59 29 21 9
Total water requirement 8,860 2,670 2,472 3,718
of which covered by recycling 1,676 227 89 1,360
of which water withdrawal 7,184 2,443 2,383 2,358
Recycling Index 18.9% 8.5% 3.6% 36.6%

2011
Plants 61 29 23 9
Total water requirement 9,410 2,391 3,003 4,016
of which covered by recycling 1,736 252 113 1,371
of which water withdrawal 7,674 2,139 2,890 2,645
Recycling Index 18.4% 10.6% 3.8% 34.1%

2010
Plants 63 31 23 9
Total water requirement 8,737 2,133 3,173 3,431
of which covered by recycling 1,501 142 108 1,251
of which water withdrawal 7,236 1,991 3,065 2,180
Recycling Index 17.2% 6.7% 3.4% 36.4%

Biochemical Oxygen Demand (BOD)(1) Biochemical Oxygen Demand (BOD)(1)

Fiat Industrial Group worldwide (maximum level under applicable regulation = 100) Fiat Industrial Group worldwide (milligram/liter)
Target 2014 2012 2011 2010 2012 2011 2010
CNH 90.0 15.5 n.a. n.a. CNH 36.4 n.a. n.a.
Iveco 50.0 23.2 33.9 20.0 Iveco 73.5 100.8 50.7
FPT Industrial 60.0 23.6 28.0 n.a. FPT Industrial 52.1 64.8 n.a.

Chemical Oxygen Demand (COD)(1) Chemical Oxygen Demand (COD)(1)

Fiat Industrial Group worldwide (maximum level under applicable regulation = 100) Fiat Industrial Group worldwide (milligram/liter)
Target 2014 2012 2011 2010 2012 2011 2010
CNH 90.0 25.9 n.a. n.a. CNH 126.8 n.a. n.a.
Iveco 50.0 32.4 37.9 32.0 Iveco 196.6 218.1 161.0
FPT Industrial 60.0 17.9 40.0 n.a. FPT Industrial 80.9 189.1 n.a.

Total Suspended Solids (TSS)(1) Total Suspended Solids (TSS)(1)

Fiat Industrial Group worldwide (maximum level under applicable regulation = 100) Fiat Industrial Group worldwide (milligram/liter)

Appendix
Target 2014 2012 2011 2010 2012 2011 2010
CNH 90.0 11.2 n.a. n.a. CNH 22.1 n.a. n.a.
Iveco 50.0 18.2 18.4 6.0 Iveco 85.3 73.7 98.8
FPT Industrial 60.0 19.5 38.0 n.a. FPT Industrial 37.7 74.4 n.a.

(1)
Figures take into account worst level registered for all plants in each sector. Data refer to plants situated in regions where binding legislation defines limits for the three
parameters monitored. 261
 Appendix ADDITIONAL
INFORMATION

Main plants located in water stressed areas(1)

Fiat Industrial Group worldwide

2012 Discarge 2009

water water fresh water Reduction
Sector intensity (2) quality consumption target
and plants (m3 /€) (mg/l) (m3 /h) (2014 vs 2009) Measures taken

CNH 0.00071 BOD: 22.9 0.27 -20% n setting-up of a task force to monitor consumption
New Delhi (India) COD: 50.4 n installation of new water meters
TSS: 38.5 n monitoring of overflows
n reduction of water pressure at times of low demand
n reuse of treated wastewater from purification plants for the irrigation
of green areas
n installation of water flow limiters and timers in lavatories

CNH 0.00049 BOD: 795.4 0.16 -30% n modification of the metal pre-treatment system in two of the three
Plock (Poland) COD: 280.8 paint production lines
TSS: 124.5 n reuse of washing water in the degreasing process
n production of demineralized water from paint cycle wastewater and
reuse in processes

Iveco 0.00041 BOD: 114 0.07 -41% n creation of a new system for monitoring water withdrawal
Vysoke Myto COD: 394 n reduction of water consumption in lavatories
(Czech Republic) TSS: 180 n personnel awareness
n installation of new flow meters in high water consumption areas
n creation of a database for analyzing trends and identifying measures
for making improvements
n optimization of water use in the pre-wash stage for cleaning vehicles

Water sources significantly affected by water withdrawal and/or discharge at plants

Fiat Industrial Group worldwide

Water withdrawals Water discharges

accounting for more accounting for more
Size of water Protected High biodiversity than 5% of annual than 5% of annual
Sector and plant Water source source Use water body value water body average volume average volume

FPT Industrial Withdrawal of industrial Loire average flow

Bourbon Lancy water from ground water (last 10 years) = Industrial
(France) and discharge to river (Loire) 136 m3/sec water yes yes no no

(1)
Water-stressed area: area with water disposal < 1,700 m3/person per year (source FAO).
262 (2)
Water-intensity: fresh water consumption in m3/Cost of Goods Sold (COGS) in €.
WASTE MANAGEMENT
Waste generation and management
Fiat Industrial Group worldwide (tons)
2012 Fiat Industrial Group CNH Iveco FPT Industrial
Plants 59 29 21 9
Waste generated
Non-hazardous waste 252,002 169,381 44,021 38,600
Hazardous waste 30,247 14,298 6,499 9,450
Total waste generated 282,249 183,679 50,520 48,050
of which packaging 77,035 47,456 23,046 6,533
Waste disposed
Waste-to-energy conversion 10,081 7,989 1,179 913
of which hazardous 2,600 843 874 883
Treatment 32,500 18,872 5,200 8,428
Sent to landfill 15,964 11,132 4,606 226
Total waste disposed 58,545 37,993 10,985 9,567
Waste recovered
Total waste recovered 223,704 145,686 39,535 38,483
of which hazardous 4,749 2,599 1,931 219
Waste recovered 79.3% 79.3% 78.3% 80.1%
Waste sent to landfill 5.7% 6.1% 9.1% 0.5%
2011
Plants 61 29 23 9
Waste generated
Non-hazardous waste 257,487 159,744 51,552 46,191
Hazardous waste 36,381 16,566 7,365 12,450
Total waste generated 293,868 176,310 58,917 58,641
of which packaging 79,220 39,806 31,625 7,789
Waste disposed
Waste-to-energy conversion 10,843 7,667 2,136 1,040
Treatment 33,816 17,545 5,335 10,936
Sent to landfill 15,977 9,445 6,302 230
Total waste disposed 60,636 34,657 13,773 12,206
Waste recovered
Total waste recovered 233,232 141,653 45,144 46,435
Waste recovered 79.4% 80.3% 76.6% 79.2%
Waste sent to landfill 5.4% 5.4% 10.7% 0.4%
2010
Plants 63 31 23 9
Waste generated
Non-hazardous waste 221,388 127,975 49,539 43,874

Appendix
Hazardous waste 31,254 11,432 6,086 13,736
Total waste generated 252,642 139,407 55,625 57,610
of which packaging 62,419 23,924 29,530 8,965
Waste disposed
Waste-to-energy conversion 7,529 4,636 2,128 765
Treatment 34,597 16,172 5,690 12,735
Sent to landfill 14,451 7,801 6,407 243
Total waste disposed 56,577 28,609 14,225 13,743
Waste recovered
Total waste recovered 196,065 110,798 41,400 43,867
Waste recovered 77.6% 79.5% 74.4% 76.2%
Waste sent to landfill 5.7% 5.6% 11.5% 0.4%
263
 Appendix ADDITIONAL
INFORMATION

Waste generated per production unit Hazardous waste per production unit
Fiat Industrial Group worldwide (kg/hour of production) Fiat Industrial Group worldwide (kg/hour of production)
2012 2011 2010 2012 2011 2010
Fiat Industrial Group 7.65 7.82 8.39 Fiat Industrial Group 0.82 0.97 1.04

Hazardous waste management

Fiat Industrial Group worldwide (tons)
2012 Fiat Industrial Group CNH Iveco FPT Industrial
Plants 59 29 21 9
Waste transported outside to suppliers of waste management service, in the same country 30,039 14,090 6,499 9,450
Waste transported outside to suppliers of waste management service, abroad 208 208 - -
Total hazardous waste transported 30,247 14,298 6,499 9,450
Total treated hazardous waste - - - -
Total hazardous waste produced 30,247 14,298 6,499 9,450

2011
Plants 61 29 23 9
Waste transported outside to suppliers of waste management service, in the same country 36,381 16,566 7,365 12,450
Waste transported outside to suppliers of waste management service, abroad - - - -
Total hazardous waste transported 36,381 16,566 7,365 12,450
Total treated hazardous waste - - - -
Total hazardous waste produced 36,381 16,566 7,365 12,450

Waste recovered(1)
Fiat Industrial Group worldwide (%)
Target (2)
2012 2014 vs 2009 2012 2011 2010
CNH 80 79.3 80.3 79.5
Iveco 80 78.3 76.6 74.4
FPT Industrial 83 80.1 79.2 76.2
Fiat Industrial Group up to 83 79.3 79.4 77.6

Percentage of waste recovered over waste generated.

(1)

The target has been updated due to several reasons, such as: change in production activities (processes and volumes), relocation of some production activities and
(2)

264 conversion of some plants, change in reporting scope and interruptions in production.
ENERGY CONSUMPTION
Direct energy consumption by source
Fiat Industrial Group worldwide (GJ)
2012 Fiat Industrial Group CNH Iveco FPT Industrial
Plants 59 29 21 9
Non-renewable sources
Natural gas 3,483,047 2,411,575 836,595 234,877
Coal 195,905 - 195,905 -
Diesel 65,242 55,245 2,055 7,942
LPG 85,083 83,592 1,491 -
Other (HS and LS fuel oil) 7,135 - 7,135 -
Total non-renewable sources 3,836,412 2,550,412 1,043,181 242,819
Renewable sources
Biomass 62,020 62,020 - -
Photovoltaic - - - -
Solar-thermal 100 - 100 -
Total renewable sources 62,120 62,020 100 -
Total direct energy consumption 3,898,532 2,612,432 1,043,281 242,819
from renewable sources 1.6% 2.4% 0.01% -

2011(1)
Plants 63 31 23 9
Non-renewable sources
Natural gas 3,623,116 2,426,206 968,241 228,669
Coal 229,407 - 229,407 -
Diesel 91,670 82,576 2,829 6,265
LPG 81,061 79,689 1,372 -
Other (HS and LS fuel oil) 10,613 - 10,613 -
Total non-renewable sources 4,035,867 2,588,471 1,212,462 234,934
Renewable sources
Biomass 63,979 63,979 - -
Photovoltaic - - - -
Solar-thermal - - - -
Total renewable sources 63,979 63,979 - -
Total direct energy consumption 4,099,846 2,652,450 1,212,462 234,934
from renewable sources 1.6% 2.4% - -

2010
Plants 63 31 23 9
Non-renewable sources
Natural gas 3,561,322 2,330,196 1,003,714 227,412
Coal 241,505 - 241,505 -

Appendix
Diesel 102,858 87,145 10,478 5,235
LPG 45,556 43,963 1,593 -
Other (HS and LS fuel oil) 10,914 804 10,110 -
Total non-renewable sources 3,962,155 2,462,108 1,267,400 232,647
Renewable sources
Biomass 62,905 62,905 - -
Photovoltaic - - - -
Solar-thermal - - - -
Total renewable sources 62,905 62,905 - -
Total direct energy consumption 4,025,060 2,525,013 1,267,400 232,647
from renewable sources 1.6% 2.5% - -
(1)
The data for 2011 have been adjusted compared with those in 2011 Sustainability Report. 265
 Appendix ADDITIONAL
INFORMATION

Indirect energy consumption by source

Fiat Industrial Group worldwide (GJ)
2012 Fiat Industrial Group CNH Iveco FPT Industrial
Plants 59 29 21 9
Electricity
Non-renewable sources 1,929,395 948,156 460,751 520,488
Renewable sources 985,694 620,589 260,809 104,296
Total electricity 2,915,089 1,568,745 721,560 624,784
Thermal energy
Non-renewable sources 860,121 52,194 418,615 389,312
Renewable sources 73,547 37,178 36,369 -
Total thermal energy 933,668 89,372 454,984 389,312
Other energy sources
Non-renewable sources 104,991 - 40,946 64,045
Renewable sources - - - -
Total other energy sources 104,991 - 40,946 64,045
Total indirect energy consumption 3,953,748 1,658,117 1,217,490 1,078,141
from renewable sources 26.8% 39.7% 24.4% 9.7%

2011(1)
Plants 63 31 23 9
Electricity
Non-renewable sources 2,194,242 1,014,337 552,424 627,481
Renewable sources 895,885 542,017 285,770 68,098
Total electricity 3,090,127 1,556,354 838,194 695,579
Thermal energy
Non-renewable sources 981,879 59,394 546,328 376,157
Renewable sources 81,034 39,631 41,403 -
Total thermal energy 1,062,913 99,025 587,731 376,157
Other energy sources
Non-renewable sources 134,073 - 40,970 93,103
Renewable sources - - - -
Total other energy sources 134,073 - 40,970 93,103
Total indirect energy consumption 4,287,113 1,655,379 1,466,895 1,164,839
from renewable sources 22.8% 35.1% 22.3% 5.8%

2010
Plants 63 31 23 9
Electricity
Non-renewable sources 2,257,593 1,028,466 666,666 562,461
Renewable sources 546,540 379,025 158,719 8,796
Total electricity 2,804,133 1,407,491 825,385 571,257
Thermal energy
Non-renewable sources 933,111 57,323 591,743 284,045
Renewable sources 88,683 41,494 47,189 -
Total thermal energy 1,021,794 98,817 638,932 284,045
Other energy sources
Non-renewable sources 110,229 358 22,502 87,369
Renewable sources - - - -
Total other energy sources 110,229 358 22,502 87,369
Total indirect energy consumption 3,936,156 1,506,666 1,486,819 942,671
from renewable sources 16.1% 27.9% 13.8% 0.9%

266 (1)
The data for 2011 have been adjusted compared with those in 2011 Sustainability Report.
Direct and indirect energy consumption by source
Fiat Industrial Group worldwide (GJ)
2012 Fiat Industrial Group CNH Iveco FPT Industrial
Plants 59 29 21 9
Electricity 2,915,089 1,568,745 721,559 624,785
Natural gas 3,483,048 2,411,576 836,595 234,877
Other fuels 415,385 200,857 206,586 7,942
Other energy sources 1,038,759 89,372 496,030 453,357
Total energy consumption 7,852,281 4,270,550 2,260,770 1,320,961

2011(1)
Plants 63 31 23 9
Electricity 3,090,128 1,556,355 838,193 695,580
Natural gas 3,623,116 2,426,206 968,241 228,669
Other fuels 476,730 226,245 244,220 6,265
Other energy sources 1,196,985 99,025 628,701 469,259
Total energy consumption 8,386,959 4,307,831 2,679,355 1,399,773

2010
Plants 63 31 23 9
Electricity 2,804,134 1,407,491 825,386 571,257
Natural gas 3,561,322 2,330,196 1,003,714 227,412
Other fuels 463,738 194,817 263,686 5,235
Other energy sources 1,132,023 99,175 661,434 371,414
Total energy consumption 7,961,217 4,031,679 2,754,220 1,175,318

Energy consumption from renewable sources

Fiat Industrial Group worldwide (%)

Target 2013 2012 2011 2010

CNH 17.0 16.9 15.0 12.0
Iveco 14.0 13.1 12.2 7.5
FPT Industrial 8.0 7.9 4.9 0.7

Appendix
(1)
The data for 2011 have been adjusted compared with those in 2011 Sustainability Report. 267
 Appendix ADDITIONAL
INFORMATION

CO2 EMISSIONS

Direct and indirect CO2 emissions

Fiat Industrial Group worldwide (tons)
2012 Fiat Industrial Group CNH Iveco FPT Industrial
Plants 59 29 21 9
Direct emissions (scope 1) 217,269 137,240 66,264 13,765
Indirect emissions (scope 2) 317,667 167,297 75,823 74,547
Total CO2 emissions 534,936 304,537 142,087 88,312

2011(1)
Plants 63 31 23 9
Direct emissions (scope 1) 229,360 138,929 77,138 13,293
Indirect emissions (scope 2) 370,402 176,177 95,944 98,281
Total CO2 emissions 599,762 315,106 173,082 111,574

2010
Plants 63 31 23 9
Direct emissions (scope 1) 223,292 129,332 80,814 13,146
Indirect emissions (scope 2) 378,502 181,946 114,136 82,420
Total CO2 emissions 601,794 311,278 194,950 95,566

SOCIAL DIMENSION

MINIMUM NOTICE PERIOD FOR OPERATIONAL CHANGES

In the European Union (EU), the Council Directive 01/23/EC stipulates that in the event of the transfer of businesses, plants,
or parts of businesses or plants, following a contractual sale or merger, an information and consultation procedure must
be conducted with employee representatives. The procedure must be initiated a reasonable period of time in advance of
the transfer. Moreover, the Council Directive 98/59/EC on the approximation of the laws of the Member States relating
to collective redundancies requires consultations with workers’ representatives whenever an employer is contemplating
collective redundancies. These “shall begin in good time with a view to reaching an agreement and should, as a minimum
requirement, cover ways and means of avoiding collective redundancies or reducing the number of workers affected, and
of mitigating the consequences by recourse to accompanying social measures aimed, inter alia, at aid for redeploying or
retraining workers made redundant”. Accordingly, Fiat Industrial Group companies comply with the regulatory provisions
resulting from the adoption of the above directives in each individual EU Member State. Outside the European Union, local
laws and practices apply. In the United States, the federal Worker Adjustment and Retraining Notification Act (WARN),
which applies to both unionized and non-unionized sites, requires an employer to give a minimum of 60 days’ notice of any
action that will cause at least fifty employees or 33% of the workforce to lose their jobs. At unionized sites and/or plants, the
level of union involvement is normally defined by the collective bargaining agreement signed between the company and the
union and applicable at site level, which usually also sets out the information and consultation procedures to be activated in
such circumstances. At non-unionized sites, it is common practice to make a company-wide announcement to all employees
of organizational changes relating to outsourcing, with appropriate notice prior to the operation.

268 (1)
The data for 2011 have been adjusted compared with those in 2011 Sustainability Report.
Employees in numbers
Employees by region and category(1)
Fiat Industrial Group worldwide (no.)
2012 Total Hourly Salaried Professional Manager
Europe 42,152 27,517 6,706 7,307 622
of which Italy 18,574 11,878 2,286 3,973 437
North America 11,500 6,661 1,541 3,091 207
Latin America 9,897 7,051 1,571 1,224 51
Asia 3,732 2,009 1,124 583 16
Rest of the world 976 464 279 225 8
World 68,257 43,702 11,221 12,430 904

2011
Europe 41,520 27,461 6,663 6,786 610
of which Italy 18,645 12,275 2,161 3,778 431
North America 10,976 6,465 1,416 2,888 207
Latin America 9,927 7,412 1,430 1,028 57
Asia 3,536 2,026 1,002 494 14
Rest of the world 1,039 513 304 215 7
World 66,998 43,877 10,815 11,411 895

2010
Europe 40,603 27,659 6,334 6,098 512
of which Italy 18,139 12,625 1,940 3,242 332
North America 9,733 5,570 1,267 2,689 207
Latin America 8,197 6,124 1,174 847 52
Asia 2,613 1,577 626 397 13
Rest of the world 977 474 280 217 6
World 62,123 41,404 9,681 10,248 790

Employees by region
Fiat Industrial Group worldwide (%)
2012 2011 2010
Europe 61.7 62.0 65.4
North America 16.9 16.4 15.6
Latin America 14.5 14.8 13.2
Asia 5.5 5.3 4.2
Rest of the world 1.4 1.5 1.6

Appendix
(1)
Employees are divided into four main categories: hourly, salaried, professional and manager. Professional encompasses all individuals that perform specialized and
managerial roles (including “professional” and “professional expert” under the Fiat Industrial S.p.A. classification system). Manager refers to individuals in senior
management roles (including those identified as “professional masters”, “professional seniors” and “executives” under the Fiat Industrial S.p.A. classification system). 269
 Appendix ADDITIONAL
INFORMATION

Workforce gender distribution by region Workforce gender distribution by category(1)

Fiat Industrial Group worldwide Fiat Industrial Group worldwide
2012 2011 2010 2012 2011 2010
Total of which Total of which Total of which Total of which Total of which Total of which
(no.) women (%) (no.) women (%) (no.) women (%) (no.) women (%) (no.) women (%) (no.) women (%)
Europe 42,152 13.2 41,520 12.7 40,603 12.1 Hourly 43,702 8.6 43,877 8.0 41,404 8.1
North America 11,500 18.5 10,976 18.8 9,733 20.2 Salaried 11,221 29.3 10,815 29.6 9,681 29.2
Latin America 9,897 10.1 9,927 8.0 8,197 5.8 Professional 12,430 16.9 11,411 16.8 10,248 15.8
Asia 3,732 10.5 3,536 10.7 2,613 13.5 Manager 904 11.0 895 9.6 790 7.2
Rest of the world 976 18.6 1,039 17.4 977 17.8
World 68,257 13.6 66,998 13.0 62,123 12.7

Workforce gender distribution by sector Workforce gender distribution by age

Fiat Industrial Group worldwide Fiat Industrial Group worldwide
2012 2011 2010 2012 2011 2010(3)
Total of which Total of which Total of which Total of which Total of which Total of which
(no.) women (%) (no.) women (%) (no.) women (%) (no.) women (%) (no.) women (%) (no.) women (%)
CNH 33,826 13.8 32,693 13.5 28,831 14.2 Up to 30 years 14,533 12.6 14,648 11.5 11,364 12.6
Iveco 26,307 15.1 26,202 14.2 25,583 13.3 31 to 40 years 21,189 15.7 20,333 15.2 17,443 15.3
FPT Industrial 8,029 7.0 8,008 6.5 7,707 4.9 41 to 50 years 17,828 13.1 17,409 13.0 14,983 13.2
Other businesses(2) 95 52.6 95 45.3 2 50.0 Over 50 years 14,707 12.0 14,608 11.4 14,726 11.0

Workforce gender distribution by length of service Workforce gender distribution by level of education
Fiat Industrial Group worldwide Fiat Industrial Group worldwide
2012 2011 2010(3) 2012(4) 2011(5)
Total of which Total of which Total of which Total of which Total of which
(no.) women (%) (no.) women (%) (no.) women (%) (no.) women (%) (no.) women (%)
Up to 5 years 29,368 15.7 28,778 14.7 22,178 16.2 University degree or equivalent 11,271 21.4 9,711 21.0
6 to 10 years 10,216 15.4 9,592 16.2 9,254 15.3 High school 22,928 11.3 22,772 11.1
11 to 20 years 14,191 12.0 13,394 11.2 12,503 11.5 Elementary/middle school 20,542 8.9 21,105 8.0
21 to 30 years 8,749 8.8 8,560 9.0 7,811 8.8
Over 30 years 5,733 10.2 6,674 9.5 6,752 9.9

(1)
Employees are divided into four main categories: hourly, salaried, professional and manager. Professional encompasses all individuals that perform specialized and
managerial roles (including “professional” and “professional expert” under the Fiat Industrial S.p.A. classification system). Manager refers to individuals in senior
management roles (including those identified as “professional masters”, “professional seniors” and “executives” under the Fiat Industrial S.p.A. classification system).
(2)
Other businesses include holding and other companies.
(3)
FPT Industrial employees outside of Italy (about 2,800) and a portion of Iveco employees outside of Italy (about 800) not mapped for 2010.
(4)
About 13,516 employees not mapped for 2012.
270 (5)
About 13,410 employees not mapped for 2011.
Employees by country Nationality of managers
Fiat Industrial Group worldwide (%) Fiat Industrial Group worldwide (%)
2012 2011 2010 2012 2011
Italy 27.2 27.8 29.2 Italian 49.8 49.7
USA 15.1 14.7 13.9 American 20.8 21.0
Brazil 11.8 12.1 10.7 Brazilian 4.8 4.8
France 8.8 8.9 9.6 French 4.5 4.5
Germany 5.0 5.3 5.7 British 4.0 4.1
Belgium 5.5 5.3 5.1 Belgian 3.8 3.5
Spain 5.7 5.3 6.2 German 2.9 3.0
Czech Republic 2.8 2.8 3.1 Spanish 1.1 1.2
India 2.8 2.6 1.5 Other nationalities 8.3 8.2
China 2.1 2.0 2.0
Poland 1.8 2.0 2.0
Argentina 1.8 1.7 1.6
Canada 1.7 1.7 1.8
UK 1.7 1.6 1.6
Australia 1.2 1.3 1.3
Austria 1.1 1.1 1.1
Switzerland 0.9 0.8 0.8
Venezuela 0.6 0.6 0.6
Uzbekistan 0.5 0.5 0.5
Mexico 0.3 0.4 0.4
Russia 0.4 0.3 0.1
Other countries 1.2 1.2 1.2

Employee turnover by region

Fiat Industrial Group worldwide (no.)

Europe 2012 2011 North America 2012 2011 Latin America 2012 2011
Employees at 31/12/2011 41,520 40,603 Employees at 31/12/2011 10,976 9,733 Employees at 31/12/2011 9,927 8,197
New Hires 3,142 3,041 New Hires 1,807 2,731 New Hires 2,196 2,989
Departures (2,698) (2,953) Departures (1,284) (1,488) Departures (2,355) (1,358)
∆ scope of operations 188 829 ∆ scope of operations 1 - ∆ scope of operations 129 99
Employees at 31/12/2012 42,152 41,520 Employees at 31/12/2012 11,500 10,976 Employees at 31/12/2012 9,897 9,927

Asia 2012 2011 Rest of the world 2012 2011 Total worldwide
Employees at 31/12/2011 3,536 2,613 Employees at 31/12/2011 1,039 977 Employees at 31/12/2011 66,998 62,123
New Hires 764 896 New Hires 191 156 New Hires 8,100 9,813

Appendix
Departures (568) (499) Departures (254) (206) Departures (7,159) (6,504)
∆ scope of operations - 526 ∆ scope of operations - 112 ∆ scope of operations 318 1,566
Employees at 31/12/2012 3,732 3,536 Employees at 31/12/2012 976 1,039 Employees at 31/12/2012 68,257 66,998

271
 Appendix ADDITIONAL
INFORMATION

Employee turnover by category

Fiat Industrial Group worldwide (no.)

Hourly 2012 2011 Salaried 2012 2011

Employees at 31/12/2011 43,877 41,404 Employees at 31/12/2011 10,815 9,681
New Hires 4,956 6,495 New Hires 1,726 1,901
Departures (5,021) (4,248) Departures (1,017) (1,120)
∆ change in category (217) (311) ∆ change in category (467) (206)
∆ scope of operations 107 537 ∆ scope of operations 164 559
Hourly at 31/12/2012 43,702 43,877 Salaried at 31/12/2012 11,221 10,815

Professional 2012 2011 Manager 2012 2011

Employees at 31/12/2011 11,411 10,248 Employees at 31/12/2011 895 790
New Hires 1,354 1,317 New Hires 64 100
Departures (1,016) (1,034) Departures (105) (102)
∆ change in category 633 454 ∆ change in category 51 63
∆ scope of operations 48 426 ∆ scope of operations (1) 44
Professional at 31/12/2012 12,430 11,411 Manager at 31/12/2012 904 895

Employee turnover by age

CNH worldwide (no.)

Up to 30 years 2012 2011 31 to 40 years 2012 2011

Employees at 31/12/2011 8,058 6,261 Employees at 31/12/2011 9,224 8,202
New Hires 2,916 3,799 New Hires 1,493 1,872
Departures (1,955) (1,508) Departures (1,078) (1,063)
∆ age range (882) (748) ∆ age range 37 (44)
∆ scope of operations 21 254 ∆ scope of operations 13 257
Employees at 31/12/2012 8,158 8,058 Employees at 31/12/2012 9,689 9,224

41 to 50 years 2012 2011 Over 50 years 2012 2011

Employees at 31/12/2011 8,076 7,490 Employees at 31/12/2011 7,335 6,878
New Hires 653 919 New Hires 300 404
Departures (529) (577) Departures (702) (701)
∆ age range 143 95 ∆ age range 702 697
∆ scope of operations 3 149 ∆ scope of operations (2) 57
Employees at 31/12/2012 8,346 8,076 Employees at 31/12/2012 7,633 7,335

272
Employee turnover by gender
CNH worldwide (no.)

Men 2012 2011 Women 2012 2011

Employees at 31/12/2011 28,288 24,738 Employees at 31/12/2011 4,405 4,093
New Hires 4,692 6,199 New Hires 670 795
Departures (3,839) (3,314) Departures (425) (535)
∆ scope of operations 20 665 ∆ scope of operations 15 52
Men at 31/12/2012 29,161 28,288 Women at 31/12/2012 4,665 4,405

Workforce gender distribution by contract

Fiat Industrial Group worldwide (%)

83 83.0

2011
2012

12.7 13.1
0.3 0.5 4.0 3.2

Fixed-term women Fixed-term men Unlimited-term Unlimited-term

women men

Workforce gender distribution by contract and employment type

Fiat Industrial Group worldwide
Unlimited-term Fixed-term
Full-time Part-time Full-time Part-time
Total of which Total of which Total of which Total of which
(no.) women (%) (no.) women (%) (no.) women (%) (no.) women (%)
Europe 40,148 12.4 420 77.9 1,584 16.7 - -
North America 11,440 18.6 4 25.0 56 10.7 - -
Latin America 9,018 10.4 2 0.0 877 7.1 - -
Asia 3,731 10.5 0 - 1 100.0 - -

Appendix
Rest of the world 967 18.5 0 - 9 33.3 - -
World 65,304 13,2 426 77.0 2,527 13.3 - -

273
 Appendix ADDITIONAL
INFORMATION

Occupational Health and Safety

Number of injuries by region Days of absence(1) by region

Fiat Industrial Group (no. of persons) Fiat Industrial worldwide Group (no.)
2012 2011 2010 2012 2011 2010
Europe 232 441 n.a. Europe 8,710 15,150 n.a.
of which Italy 93 151 n.a. of which Italy 3,371 5,610 n.a.
North America 68 50 n.a. North America 2,016 1,572 n.a.
Latin America 80 79 n.a. Latin America 1,312 1,148 n.a.
Asia - - n.a. Asia - - n.a.
Rest of the world 10 6 n.a. Rest of the world 105 63 n.a.
Total 390 576 616 Total 12,143 17,933 17,331

Severity rate by region Frequency rate by region

Fiat Industrial Group worldwide (days of absence per 1,000 hours worked) Fiat Industrial Group
2012 2011 2010 2012 2011 2010
Europe 0.15 0.25 n.a. Europe 0.39 0.72 n.a.
of which Italy 0.13 0.20 n.a. of which Italy 0.35 0.54 n.a.
North America 0.09 0.07 n.a. North America 0.30 0.23 n.a.
Latin America 0.08 0.07 n.a. Latin America 0.47 0.48 n.a.
Asia - - n.a. Asia - - n.a.
Rest of the world 0.02 0.01 n.a. Rest of the world 0.18 0.13 n.a.
Total 0.12 0.17 0.20 Total 0.37 0.55 0.70

Medical treatments Occupational Illness Frequency Rate (OIFR) by region

Fiat Industrial Group (no.) Fiat Industrial Group worldwide (cases of occupational Illness per 100,000 hours worked)
2012 2011 2010 2012 2011 2010
Total visits (thousand) 83.59 85.58 107.58 Europe 0.09 0.05 n.a.
Visits per employee 1.3 1.4 n.a. of which Italy 0.03 - n.a.
North America 0.31 0.31 n.a.
Latin America 0.10 0.04 n.a.
Asia - - n.a.
Rest of the world - - n.a.
Total 0.13 0.10 0.12

274 (1)
Days lost due to accidents – more than 3 days.
275
Appendix
 Appendix Statements
of assurance

STATEMENTS OF ASSURANCE
This Sustainability Report has been audited by SGS Italia S.p.A., an independent company that provides verification, testing, analysis
and certification of goods, services and systems. The scope of the audit is reported in the following letter.

276
The Report has also been submitted to GRI which conducted an
Application Level Check (A+) of the GRI-G3.1 Guidelines.

Appendix
277
 Appendix INDEX OF GRI-G3.1
CONTENT

INDEX OF GRI-G3.1 CONTENT

The following table has been provided to help the reader in locating content within the document that relates to specific GRI-G3.1 indicators. Each indicator is
followed by reference to the appropriate pages in the 2012 Sustainability Report or other publicly available sources. Additional information is also available in
the GRI-G3.1 index published on the Sustainability section of the Group website.

Key
SR = 2012 Sustainability Report Fully disclosed
AR = Annual Report at 31 December 2012 Partially disclosed
ARCG = Annual Report on Corporate Governance, February 2013 Not disclosed

GRI-G3.1 indicators
Coverage Publication Pages

1. Strategy and analysis

1.1 Statement from the Chairman and the CEO SR 1, 4-5
1.2 Key impacts, risks, and opportunities SR 61-62, 85-86
AR 52-65, 166-167, 222-226
ARCG 26-28

2. Profile of the organization

2.1 Name of the organization ARCG 209
2.2 Primary brands, products, and/or services SR 10-11, 14-15, 16-17, 18, 89, 93, 95,
96, 97, 99, 100-103
AR 17-18, 19-20, 21, 219-221
2.3 Operational structure SR 10-11, 14-15, 16-17, 18
AR 15, 237-249
2.4 Location of organization’s headquarters SR 290
ARCG 209
2.5 Countries where the organization operates SR 10, 12-13, 14, 16, 18, 154-156, 271
AR 22-23, 36, 222
2.6 Nature of ownership and legal form AR 37-39
ARCG 11-13
2.7 Markets served SR 10-11, 14-15, 16-17, 18
AR 22-23, 36, 222
2.8 Scale of the reporting organization SR 10-11
AR 12-13, 36
2.9 Significant changes SR 19-20, 255
AR 37, 43, 48, 80, 105
2.10 Awards received SR 8-9, 93, 102, 103, 138, 162, 167,
189, 209, 225
AR 32, 40, 41, 42, 46, 47, 48, 49

3. Report parameters
Profile
3.1 Reporting period SR 255

278
 Coverage Publication Pages

3.2 Date of the last report SR 254

3.3 Reporting cycle SR 257
3.4 Contact point for questions regarding the report SR 290
Report scope and boundary
3.5 Process for defining report content SR 24-25, 254-256
3.6 Boundary of the report SR 10, 12-13, 256
3.7 Limitations on the scope or boundary of the report SR 255, 257
3.8 Reporting on joint ventures, subsidiaries, leased facilities, outsourced operations and other entities SR 255
AR 237-249
3.9 Data measurement techniques and the bases of calculations SR 255-257
3.10 Re-statements of information provided in earlier reports SR 255
3.11 Significant changes from previous reporting periods SR 255
GRI-G3.1 content index
3.12 Table identifying the location of the Standard Disclosures in the report SR 278-283
Assurance of the report
3.13 External assurance SR 276

4. Governance, commitments and engagement

Governance
4.1 Governance structure SR 51-53, 69-71
ARCG 5-11, 14-20, 36
4.2 Executive powers of the Chairman ARCG 17-19, 36
4.3 Independent and non-executive Directors ARCG 17-19, 36
4.4 Mechanisms for shareholders and employees to provide recommendations ARCG 9, 31, 57-58, 72-75, 219-222
4.5 Linkage between compensation for Directors, senior managers, and executives, and the organization’s performance SR 28, 70, 162-163
ARCG 24-25, 58-62
4.6 Processes to avoid conflicts of interest ARCG 17-18, 40-41, 86
4.7 Qualifications and expertise of Directors ARCG 17-19, 195-196
4.8 Mission, values, codes of conduct and principles ARCG 83-85
4.9 Procedures for overseeing the organization’s identification and management of economic, environmental SR 68-70
and social performance
4.10 Process for evaluating the Board of Directors’ performance SR 28
ARCG 195
Commitments to external initiatives
4.11 Explanation of whether and how the precautionary approach or principle is addressed SR 4-5, 61-62, 69-71, 73-74, 85-86

Appendix
4.12 Externally developed economic, environmental, and social charters or principles ARCG 84-85, 86-88
4.13 Memberships in industry associations SR 76-77
Stakeholder engagement
4.14 List of stakeholder groups SR 23-25
4.15 Basis for identification and selection of stakeholders SR 23-25
4.16 Approaches to stakeholder engagement SR 23-25
4.17 Key topics and concerns that have been raised through stakeholder engagement, and how the organization SR 24-25, 26-27
has responded to those key topics

279
 Appendix INDEX OF GRI-G3.1
CONTENT

Coverage Publication Pages

5. Performance indicators
Economic
Management approach SR 10-11, 12-13, 25, 240-241
AR 12-13, 22-23, 36, 80-94
Economic performance
EC1 Direct economic value generated and distributed SR 25, 241-242
AR 134-142
EC2 Financial implications and other risks and opportunities due to climate change SR 29, 66-67, 85-86, 106
AR 24
EC3 Coverage of the organization’s defined benefit plan obligations SR 164
AR 205-211
EC4 Significant financial assistance received from government SR 11, 74
Market presence
EC5 Range of ratios of standard entry-level wage by gender compared to local minimum wage SR 163
at significant locations of operation
EC6 Policy, practices, and proportion of spending on locally-based suppliers SR 228-231, 238
EC7 Procedures for local hiring SR 157
Indirect economic impacts
EC8 Development and impact of infrastructure investments and services provided for public benefit SR 25, 241-242, 243, 246, 248
EC9 Understanding and describing significant indirect economic impacts SR 241, 247-249

Environmental
Management approach SR 4-5, 56-57, 84-86, 104-105, 106,
116, 118, 122-123, 126-128, 129,
130, 139-140, 258
AR 26, 30-31
ARCG 92
Materials
EN1 Materials used SR 104-105, 230
EN2 Percentage of materials used that are recycled input materials SR 104-105
Energy
EN3 Direct energy consumption by source SR 135-136, 265, 267
EN4 Indirect energy consumption by source SR 135-136, 266-267
EN5 Energy saved SR 131-134
EN6 Initiatives to provide energy-efficient or renewable energy-based products and services SR 76-77, 90-92, 94-96, 97, 99
EN7 Initiatives to reduce indirect energy consumption and reductions achieved SR 30-31, 134, 149-151
Water
EN8 Total water withdrawal by source SR 118-119, 260
EN9 Water sources significantly affected by withdrawal of water SR 262
EN10 Percentage and total volume of water recycled and reused SR 261

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 Coverage Publication Pages

Biodiversity
EN11 Location and size of land owned, leased, managed in protected areas and areas of high biodiversity value SR 128
EN12 Description of significant impacts on biodiversity SR 120-121, 126-128, 262
EN13 Habitats protected or restored SR 126-128
EN14 Strategies for managing impacts on biodiversity SR 33-34, 126-128
EN15 Number of IUCN Red List species and national conservation list species SR 128
Emissions, effluents, and waste
EN16 Greenhouse gas emissions SR 137-138, 268
EN17 Other indirect greenhouse gas emissions SR 141
EN18 Initiatives to reduce greenhouse gas emissions SR 134, 138, 142-143, 145, 147-148,
149-150
EN19 Emissions of Ozone Depleting Substances SR 117, 259
EN20 Other air emissions SR 259
EN21 Water discharge SR 118, 260
EN22 Total waste by type and disposal method SR 123
EN23 Total number and volume of significant spills SR 120, 122
EN24 Hazardous waste SR 264
EN25 Biodiversity and habitats affected by the organization's discharges SR 128
Products and services
EN26 Initiatives to mitigate environmental impacts of products and services and extent of impact mitigation SR 76-77, 85-86, 258
EN27 Percentage of products sold and their packaging materials that are reclaimed by category SR 104-105, 143-145
Compliance
EN28 Monetary value of fines and total non-monetary sanctions for non-compliance with environmental laws and regulations SR 258
EN29 Environmental impacts of transport SR 140-142, 143, 145, 147-149
EN30 Environmental protection expenditures and investments SR 112

Social
Labor practices
Management approach SR 154, 165-166, 168-169,
171-173, 174-175, 176-177, 195
AR 29-30
ARCG 89, 92
LA1 Total workforce by employment type, contract, and region, broken down by gender SR 156-158, 269-271, 273
LA2 Total number and rate of new employee hires and employee turnover by age, gender and region SR 158-159, 271-273

Appendix
LA3 Benefits provided to full-time employees that are not provided to temporary or part-time employees SR 164
LA4 Percentage of employees covered by collective bargaining agreements SR 197-198
LA5 Minimum notice period for operational changes SR 268
LA6 Percentage of workforce represented in health and safety committees SR 204
LA7 Rates of injuries, occupational diseases/illnesses, lost days, and absenteeism, and total number of work-related fatalities SR 180-182, 274
AR 29-30
LA8 Education, training and risk-control programs in place to assist employees and their families regardingserious diseases/illnesses SR 176-177, 177-179, 188-190
AR 29-30
LA9 Health and safety topics covered in agreements with trade unions SR 198, 204-205

281
 Appendix INDEX OF GRI-G3.1
CONTENT

Coverage Publication Pages

LA10 Employee training by gender and by category SR 166
LA11 Programs for skills management and lifelong learning that support the continued employability of employees SR 165-166
LA12 Percentage of employees receiving performance and career development reviews by gender SR 160-163
LA13 Composition of governance bodies and breakdown of employees by gender, age group, SR 28, 53, 156-158, 171-173,
minority group membership, and other indicators of diversity 270, 272-273
AR 97-100
ARCG 19
LA14 Ratio of basic salary and remuneration of women to men by employee category, by significant locations of operation SR 171, 257
LA15 Return to work and retention rates after parental leave, by gender SR 187
Human rights
Management approach SR 55-57, 57-58, 160-161, 166,
168-169, 171-173, 196-198,
228-230, 231-233
ARCG 89
HR1 Agreements that include human rights clauses SR 59, 231-232
HR2 Suppliers and contractors screened on human rights SR 232-233
HR3 Total hours of employee training on human rights SR 166, 238-239
HR4 Incidents of discrimination and actions taken SR 57-58, 168-169
HR5 Risks to the right to exercise freedom of association and collective bargaining SR 57-58, 196-198, 232-233
HR6 Operations identified as having risk for incidents of child labor SR 57-58, 232-233
HR7 Operations identified as having risk for incidents of forced or compulsory labor SR 57-58, 232-233
HR8 Security personnel trained on human rights SR 166
HR9 Violations of the rights of indigenous people SR 258
HR10 Operations subject to human rights reviews and/or impact assessments SR 57-58
HR11 Grievances related to human rights filed, addressed and resolved through grievance mechanisms SR 57-59
Society
Management approach SR 55-57, 59-60, 231-233, 240-241, 258
ARCG 82-83, 93, 94
SO1 Percentage of operations with implemented local community engagement, impact assessments, and development programs SR 57-58, 240-242
SO2 Monitoring of the risk of corruption SR 57-58, 232-233
SO3 Employees trained in anti-corruption policies and procedures SR 55-57, 166
SO4 Actions taken in response to incidents of corruption SR 57-59
SO5 Positions and participation in public policy development and lobbying SR 59-60, 76-77
ARCG 93
SO6 Contributions to political parties SR 59-60
ARCG 94
SO7 Legal actions for anti-competitive behavior, anti-trust SR 258
SO8 Significant fines and sanctions for non-compliance with laws and regulations SR 258
SO9 Operations with potential or actual negative impacts on local communities SR 57-58, 61-62, 69-70, 118, 120-121,
126-128, 199-203, 241, 258
SO10 Prevention and mitigation measures in operations with potential or actual negative impacts on local communities SR 57-58, 61-62, 69-70, 118, 120-121,
126-128, 199-203, 241, 258

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 Coverage Publication Pages

Product responsibility
Management approach SR 215, 222-223, 224-227, 258
ARCG 84, 92
PR1 Health and Safety impacts of products and services SR 32, 224-227
PR2 Incidents of non-compliance with regulations on health and safety of products and services SR 258
PR3 Product and service information SR 222-223
PR4 Incidents of non-compliance with regulations and voluntary codes on product and service information SR 258
PR5 Practices related to customer satisfaction SR 220-221
PR6 Programs for adherence to laws, standards and voluntary codes related to marketing and advertising SR 223
PR7 Non-compliance with regulations and voluntary codes concerning marketing communications SR 258
PR8 Substantiated complaints on breaches of customer privacy SR 258
PR9 Fines for non-compliance with laws and regulations SR 258

Appendix
283
 Appendix GLOSSARY

GLOSSARY
A B
AA1000: Biodiesel:
framework published by AccountAbility providing companies instruments alternative fuel extracted from renewable, freely-available resources, such
for managing sustainability. as vegetable oils. Biodiesel does not contain petroleum, but can be mixed
in various proportions with diesel. It can be used in place of gasoline in
ACC: suitably adapted engines.
(Adaptive Cruise Control): system which allows the driver to maintain
the cruising speed selected, helping to maintain the safety distance Biodiversity:
from the vehicle ahead. Indeed, in the event that the safety distance is all life forms present on Earth. Comprises the full biological variety of
not maintained, the system automatically activates, in sequence: engine genetic inheritance (breeds or varieties of species, both wild and
braking, Intarder/Retarder and service brakes. cultivated), species (animals, plants, fungi, microorganisms) and ecosystems
(natural environments such as aquatic, forest or alpine environments).
ACEA (European Automobile Manufacturers’ Association):
association founded in 1991 whose main aim is to promote, publicize and Biomethane:
protect the interests of supporting manufacturers, for all issues affecting gas produced by the biological decomposition of organic material
the car industry and transportation in general. in the absence of oxygen, which is then refined to achieve a methane
concentration of 95%. Used as a biofuel for motor vehicles in the same
ADAS: way as natural gas (or fossil methane).
Advanced Driver Assistance Systems.
BOD (Biochemical Oxygen Demand):
AIAG (Automotive Industry Action Group): the total mass of oxygen used by microorganisms, over a specific time
not- for-profit association of companies operating in the automotive industry. period at 20°C, to decompose (oxidize) the organic material present in a
liter of water (normally expressed in mg/l). When a single value is given, it
ANFIA (Italian Association of the Automotive Industry):
is usually BOD5 (5-day BOD).
trade association that represents Italian manufacturers and fitters of
vehicles for the transport of people and goods. BTL (Biomass To Liquid):
next generation biodiesel derived from biomass.
Audit:
systematic, documented and independent check, the purpose of which is
to verify compliance to the explicit requirements of applicable regulations.

284
C E
CAN (Control Area Network): EBS (Electronic Braking System):
standard communication network between vehicle control units. electronic system that controls the braking functions of both tractor unit and
semi-trailer, and integrates the functions Anti-lock Braking System (ABS),
Car pooling: Acceleration Slip Regulation (ASR) and Electronic Brake Limiter (EBL).
means of transport coming under sustainable mobility by which private
vehicles are shared by a group of people taking the same route. EEV (Enhanced Environmental-Friendly Vehicles):
the most rigorous of the European regulations on emissions.
Carbon footprint:
term expressing, in CO2 equivalent, the total greenhouse gas (GHG) EGR (Exhaust Gas Recirculation):
emissions of a product, service or organization. system which recirculates part of exhaust gas back to the engine’s intake
to reduce NOX emissions.
CNG (Compressed Natural Gas):
natural gas, composed mainly of methane, compressed and stored in Emission trading:
special containers at high pressure. Used as a fuel for vehicles powered mechanism for exchanging emissions quotas available to countries of the
by natural gas. Organization for Economic Co-operation and Development (OECD) and
Economies in Transition (EIT) to meet their commitments on reducing
CO2 eq (Carbon dioxide equivalent): greenhouse gas emissions. This is a system introduced by EC Directive
parameter used to compare various greenhouse gas emissions according 2003/87/EC which defines a maximum level of acceptable emissions
to their Global Warming Potential (GWP). The CO2 equivalent of a gas is for each member state. According to the level set, emissions permits,
calculated by multiplying the total weight of gas by its corresponding GWP. expressed in tons of CO2, are assigned to, and may be exchanged among,
COD (Chemical Oxygen Demand): participating members.
expressed in milligrams per liter (mg/l), this is the quantity of oxygen EPA (Environmental Protection Agency):
required for the complete chemical oxidation of organic and inorganic agency of the United States Government charged with the protection of
compounds present in a sample of water. the environment and public health.
Common rail: ESG factors (Environmental, Social and Governance):
fuel injection system for diesel engines. financial term indicating sustainability factors used by investors to evaluate
Conflict minerals: a company’s conduct.
minerals mined in conditions of armed conflict and human rights abuses, Euro VI:
notably in the Democratic Republic of Congo and neighboring States. series of European standards on polluting emissions which will apply to
Their use in the USA is regulated by the Dodd-Frank Act. newly registered road vehicles sold in the EU from 1 September 2014.

Appendix
D F
Direct emissions (scope 1): Frequency rate:
atmospheric emissions of polluting substances originating from combustion the ratio of the number of injuries reported (resulting in more than three
processes in which the equipment is under the control and ownership of days of absence) to the number of hours worked, multiplied by 100,000.
the organization.

285
 Appendix GLOSSARY

G Intarder:
device that makes use of hydraulic or magnetic systems to slow the vehicle
Gas blow-by: down without recourse to the service brakes.
flow of gas between the piston ring and the barrel of an engine’s cylinder.
Inverter:
GHG Protocol (Greenhouse Gas Protocol): static electronic device that converts direct current into alternating
international standards and guidance regarding corporate greenhouse gas current.
accounting and reporting.
ISO 9001:
GRI (Global Reporting Initiative): series of voluntary regulations and guidelines, developed by the International
multi-stakeholder association for the development and disclosure of Organization for Standardization (ISO), which define the requirements for
guidelines (GRI-G3) for non-financial reporting. setting up a quality management system within an organization.

GWP (Global Warming Potential): ISO 14001:

measures the greenhouse effect of various gas emissions (CO2, etc.). voluntary regulations published by the International Organization for
Standardization (ISO), which define the requirements for an environmental
management system.
H ISO 14064:
Hill Holder: a voluntary standard published by the International Organization for
system that provides assistance when starting a vehicle on an incline, Standardization (ISO), which specifies international best practice in the
preventing it from rolling backwards for a few seconds after the foot brake management, reporting and verification of data and information on
is released. Inhibits rolling backwards during hill-starts, avoiding the need greenhouse gases (GHG).
to ride the clutch.
ISO 26000:
HVO (Hydrotreated Vegetable Oil): guide lines published by the International Organization for Standardization
next generation biodiesel derived from vegetable oils. (ISO), which define socially responsible behavior and possible actions. This
is not a certification.

I ISO 50001:
voluntary regulations published by the International Organization
ILO (International Labour Organization):
for Standardization (ISO), which define the requirements for energy
international organization responsible for drawing up and overseeing
management.
international labor standards.
IUNC Red List:
IMDS (International Material Data System):
the most comprehensive information source on the global conservation
online platform that enables the input of detailed information on the
status of plant and animal species, managed by the International Union for
materials and substances used in purchased components.
Conservation of Nature (IUNC).
Indirect emissions (scope 2):
atmospheric emissions of polluting substances originating from combustion
processes external to the organization and over which it has no control.

286
J Lobby:
a body which is organized in a formal, identifiable and recognizable way, and
Jack-knifing: which acts on behalf of the specific interests which it represents so as to
folding of an articulated vehicle, normally following braking. influence decision makers, whether representatives of legislative powers,
of executives, of authorities and control bodies or of the implementing
functions set up by governments.
K LNG (Liquefied Natural Gas):
Kaizen: gas obtained by subjecting natural gas (CNG), after suitable purification
project of continuous improvement identified within World Class and dehydration, to successive phases of cooling and condensation. The
Manufacturing. technology of liquefaction allows the specific volume of the gas to be
reduced by 600 times in standard conditions, and enables an increase in
KPI (Key Performance Indicator):
fuel range.
measurement of the performance of a process.

L M
Magnetocaloric Effect:
Last mile:
an intrinsic property of all magnetic materials that involves the variation
final stage in the transport of goods, up to the point of sale or consumer’s
in the magnetic properties of the entropy of the solid following the
home.
interaction of the magnetic sub-lattices with the applied field.
LCA (Life Cycle Assessment):
analytical method which evaluates all the interactions which a product/
component has with the environment, determining direct or indirect N
impact over its entire life cycle: from production to recycling and final Near miss:
disposal. event that did not result in injury, illness, or damage but had the potential
to do so.
LDWS (Lane Departure Warning System):
system which alerts the driver when the vehicle is about to drift out of its lane NOX (Nitrogen Oxide):
without the driver having indicated their intention to do so. Extremely efficient range of oxides which can be produced during the combustion of nitrogen-
in preventing accidents caused by tiredness or distraction at the wheel. containing compounds.
LED (Light-Emitting Diode): No-till seeding:
semiconductor (diode) that emits light when an electric current is passed conservative, agronomic soil management technique that avoids disturbing
through a suitably treated silicon junction. the soil through tillage, so preserving its natural fertility.

Appendix
287
 Appendix GLOSSARY

O R
ODS (Ozone Depleting Substances): Range extender:
potentially harmful substances in the ozone layer which, as such, contribute optimized combustion engine connected to an electric generator which
to the depletion of stratospheric ozone. The most important and harmful produces energy for recharging batteries.
are the Chlorofluorocarbons (CFCs), generally used as refrigerants,
solvents and propellants, and the Hydrochlorofluorocarbons (HCFCs), REACH (Registration, Evaluation, Authorisation and Restriction of
used to replace CFCs. Chemical substances):
European Community Regulation on chemicals and their safe use.
OHSAS 18001:
voluntary standard published by the British Standards Institution
which defines the requirements for the occupational health and safety S
management system. SAD (Standard Aggregation Data):
OIFR (Occupational Illness Frequency Rate): IT platform used to monitor and report indicator performance.
cases of occupational Illness per 100,000 hours worked. SCR (Selective Catalytic Reduction):
chemical process for reducing NOX levels in exhaust gas.

P Severity rate:
PCB (Polychlorinated Biphenyls): ratio of the number of days of absence to the number of hours worked,
group of extremely stable chemical compounds with excellent dielectric multiplied by 1,000.
and heat transfer properties, widely used in the past in both the industrial SOX (Sulfur Oxides):
and commercial sectors, e.g. in capacitors and transformers. Because term referring to the sulfur oxides in the atmosphere; usually sulfur dioxide
of their toxicity to humans and to the environment, today PCBs are (SO2) and sulfur trioxide (SO3).
considered to be some of the most dangerous pollutants.
SRI (Socially Responsible Investing):
PM (Particulate Matter): socially responsible investors are financial operators who, in their
category of particles, solids and liquids with a diameter ranging from a few investment decisions, take account of environmental, social and governance
nanometers (nm) to a few tens or hundreds of micrometers (μm). Their factors as well as traditional considerations.
physical and chemical properties allow them to remain suspended in the
atmosphere for long periods (hours, days or years) and to retain their Stakeholders:
properties long enough to allow their physical and/or chemical reaction as all those that have a legitimate interest in the activities of an organization
distinct entities. and that both influence and are influenced by its decisions.

PTO (Power Take Off): Stock Grant Program:

mechanism enabling power out from engines or transmissions, to be used a program which envisages the awarding to individuals, subject to specific
by accessories not directly connected to the wheels of the vehicle. conditions and with no outlay required, of the entitlement to receive a number
of company shares corresponding to the number of entitlements assigned.

Stop&Start:
automatic switching off and on of the heat engine when the vehicle is at
rest, e.g. at a traffic light.

288
T W
TCO (Total Cost of Ownership): WCM (World Class Manufacturing):
approach used to calculate all costs in the life cycle of a device (purchasing, integrated production model which aims at achieving excellence in the
management, maintenance and disassembly). entire logistical and productivity cycle, striving to eliminate accidents,
waste and breakdowns via continuous performance improvements with
Tier-2 supplier: the engagement of all levels and functions within the company.
a business that supplies direct suppliers.
Well-to-wheel:
Tier: analysis concerning the energy life cycle.
standard issued by EPA that regulates polluting emissions.
WHTC (World Harmonized Test Cycle):
TSS (Total Suspended Solids): certification test for heavy engine emissions. It consists of two test cycles,
parameter used in the management of water quality and in purification a cold start and a hot start.
which indicates the quantity of solids present in suspension that can be
separated by vigorous mechanical means such as vacuum filtration or
centrifugation of a sample of liquid.

V
VOC (Volatile Organic Compounds):
compounds classified as VOCs include both hydrocarbons containing
carbon and hydrogen as the only elements, as well as compounds
containing oxygen, chlorine or other elements together with carbon
and hydrogen. Volatile Organic Compounds are defined as any organic
compound that has a vapor pressure of 0.01 KPa or more, at 293.15 K
(20 °C) as defined in art.268 of Legislative Decree 152/2006.

Appendix
289
 Appendix Contacts

Contacts

Head Office
Via Nizza, 250 - 10126 Turin (Italy)
Tel. +39 011 00 61 111
website: www.fiatindustrial.com

Investor Relations
Tel. +39 011 00 62 186
Fax +39 011 00 61 346
e-mail: [email protected]

Sustainability
Tel. +39 011 00 62 627
e-mail: [email protected]

Press Office
Tel. +39 011 00 62 464
Fax +39 011 00 62 094
e-mail: [email protected]

290
This document is printed on eco-responsible Arjowiggins Graphic Polyedra
Revive Pure Silk paper (150 gsm for internal pages and 300 gsm for cover):
an extra-white coated paper made from 100% recycled pulp with EU Flower
certification FR/011/003

By using Polyedra Revive Pure Silk from Arjowiggins Graphic, rather than a non-
recycled paper, the environmental impact was reduced by:

1,196 130 1,296

kg of landfill kg of co2 km travel in the average
European car

31,234 2,941 1,944

liters of water kWh of energy kg of wood

Fiat Industrial offsets the GHG emissions from paper used to print its Annual
Report, Sustainability Report and Annual Report on Corporate Governance.
The total of 32 tons in CO2 emissions will be offset by a forestry project in Italy.

291
 Illustrations and creative design
Atelier Roger Pfund, Communication visuelle S.A.
Geneva, Switzerland

Graphic design
Sunday
Turin, Italy

Editorial coordination
Sunday
Turin, Italy

Printing
Graf Art
Venaria Reale (TO), Italy

Printed in Italy
March 2013

292
SIL
Wish me well on my journey!

I started on my way a long time ago.

I wanted to set course on my life.

40
Silk Road With the feeling that it was neither a narrow passage nor a main road.
(Asia)
Yet conscious that there were indications, a direction.

My tracks became the route to follow.

My convictions my road map.

ICE
Route 40
(South America) I was searching, knowing that my destination depended
on the road I chose.
At times, I thought I had taken the wrong road, but I
simply had not gone far enough.
Today I believe that, whatever the chosen path might be,

66
Iceland Route 1
(Northern Europe) it will always lead to an inhabited place.
Inhabited with meaning, life, purpose, success.

“Every truth is a path traced through reality.”

HAR
Route 66 Highway Henri Bergson
(North America)

Trans-Sahara Highway
(Africa)
Fiat Industrial S.p.A.
Registered Office: 250 Via Nizza, Turin, ITALY

Share Capital: €1,919,433,144.74

Turin Companies Register/
Tax Code: 10352520018