Climate Change Data

Iveco Group N.V.

Climate Impact & Sustainability Data (2022, 2023)

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:101,736 tons/year (Scope 1 and 2)
Scope 1 Emissions:60,712 tons/year
Scope 2 Emissions:41,024 tons/year (market-based)
Scope 3 Emissions:CO2 emissions from the use of sold vehicles per vehicle/km (grammes per vehicle/km)
Renewable Energy Share:98%
Total Energy Consumption:3,052,041 GJ/year
Water Consumption:0.103 m3/hour of production
Waste Generated:2.49 kg/hour of production

ESG Focus Areas

  • Carbon Footprint
  • Workplace and Product Safety
  • Life Cycle Thinking
  • Inclusion and Engagement

Environmental Achievements

  • 98% of total electricity consumption derived from renewable sources
  • Inaugurated new ePowertrain Plant in Turin, Italy – Iveco Group’s first totally carbon-neutral plant
  • IVECO BUS brand won ‘Sustainable Bus of the Year 2023’ for the Crossway Low Entry Hybrid Natural Gas (emits up to 82% less CO2)
  • Reduced CO2 emissions by 8% compared to the mid-year result of 2022, in terms of kilos of CO2 emissions per ton of goods shipped.

Social Achievements

  • Supported three non-profit organizations helping people affected by the war in Ukraine (€570,000)
  • Number of women in management positions increased to 21.7% in 2022
  • Teamed up with ActionAid to support two projects to combat gender stereotypes and help vulnerable women
  • Sponsored Women’s International Networking (WIN)

Governance Achievements

  • Executive compensation linked to achievement of two critical sustainability targets (carbon footprint and inclusion & engagement)
  • No substantiated reports of bribery or corruption reported in 2022
  • Implemented a Group Integrated compliance Program

Climate Goals & Targets

Long-term Goals:
  • 2040: Net Zero Carbon
Medium-term Goals:
  • 2030: -50% vs 2019 in absolute CO2 emissions (Scope 1-2)
  • 2030: 100% of total electricity consumption derived from renewable sources
  • 2030: -38% vs 2022 in Scope 3 CO2 emissions from the use of sold vehicles per vehicle/km
Short-term Goals:
  • 2026: -40% vs 2019 in employee injury frequency rate (manufacturing and non-manufacturing perimeter)
  • 2026: 23% of women in management positions
  • 2026: 100% of new vehicles in Europe equipped with Advanced Driver Assistance Systems and additional advanced functions
  • 2026: partnership with 100% of key customers to improve working conditions and work-life balance for drivers
  • 2026: -7% vs 2022 in kg of CO2 emissions per ton of goods shipped (including spare parts)
  • 2026: 100% of dealership staff involved in safety training on product portfolio
  • 2026: 100% of Tier 1 suppliers involved in sustainability self-evaluations
  • 2026: -20% vs 2022 in key suppliers’ absolute CO2 emissions from purchased goods and services and from capital goods

Environmental Challenges

  • Global supply chain disruptions
  • Increased energy costs and inflation
  • Potential impacts of restrictions on social interactions and business operations to limit the resurgence of the COVID-19 pandemic
  • Russia-Ukraine conflict
  • Competition risk
  • Risks associated with public tenders
  • Risks related to investments and partnerships
  • Risks associated with employment relationships
  • Dealer-related risks
  • Non-compliance with emissions regulations
  • Risks related to compliance with other product, process and supply chain regulations
  • Risks related to legal proceedings
  • Non-compliance with laws and regulations or with compliance policies
  • Exchange rate fluctuations, interest rate changes and other market risks
  • Difficulties in obtaining financing or refinancing existing debt
  • Risks relevant to Group’s leverage and debt service obligations
  • Restrictive covenants in the Group’s debt agreements
  • Risks related to Financial Services Activities
  • Potential for additional tax expense or exposure
Mitigation Strategies
  • Lean and agile operations to react promptly to challenges
  • Close monitoring of political, social, economic, and market developments
  • Continuous investigation of new potential areas of interest for future development
  • Implementation of innovation activities or cost optimization actions
  • Maintaining positive trust and long-term relations with strategic partners
  • Intensive controls over partnership execution
  • Continuous communication with internal stakeholders and unions
  • Strong re-skilling campaign and market-aligned salary packages
  • Monitoring dealers’ aggregation and financial health
  • Structured audit process on dealers’ activities
  • Progressive introduction of electric vehicles to improve product mix
  • Implementation of a CO2 emissions monitoring system
  • Continuous monitoring of regulations and on-site audits
  • Participation in the Open-ES platform
  • Development of Iveco Group’s climate change risk management framework
  • Group Integrated compliance Program
  • Hedging strategies
  • Matching policy to offset interest rate impacts
  • Improvement of working capital management
  • Selection of a new treasury management IT system

Supply Chain Management

Supplier Audits: 75 suppliers representing 11% of direct material purchases

Responsible Procurement
  • Supplier Code of Conduct
  • Commitment Declaration from new suppliers
  • Sustainability scores as a criterion for supplier selection
  • Open-es platform

Climate-Related Risks & Opportunities

Transition Risks
  • Changes in environmental and climate change laws
  • Shifts in consumer preferences and demand towards sustainable transport solutions
Opportunities
  • Increased demand for low-carbon vehicles
  • Development of alternative fuel engines
  • Development of electric and hydrogen propulsion technologies

Reporting Standards

Frameworks Used: GRI Sustainability Reporting Standards, SASB Standards, TCFD

Certifications: ISO 50001, ISO 14001, ISO 45001

Sustainable Products & Innovation

  • IVECO eDaily
  • IVECO BUS E-WAY
  • Nikola Tre BEV and FCEV
  • eDaily FCEV prototype

Awards & Recognition

  • IVECO BUS ‘Sustainable Bus of the Year 2023’

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:98,512 tCO2e/year (Scope 1 & 2)
Scope 1 Emissions:59,673 tCO2e/year
Scope 2 Emissions:38,839 tCO2e/year (market-based)
Scope 3 Emissions:59,381,599 tCO2e/year
Renewable Energy Share:98% of total electricity consumption
Total Energy Consumption:3,033 TJ/year
Water Consumption:3,084,000 m3/year (withdrawal)
Waste Generated:80,279 tons/year
Carbon Intensity:Reductions in CO2 emissions per hour of production reported.

ESG Focus Areas

  • Carbon Footprint
  • Workplace and Product Safety
  • Life Cycle Thinking
  • Inclusion and Engagement

Environmental Achievements

  • Reduced CO2 emissions from manufacturing processes by 19.9% compared to 2019
  • Reduced energy consumption by 16% compared to 2019
  • Achieved an A- score in the CDP Climate Change programme and a B score in the CDP Water Security programme

Social Achievements

  • Announced Diversity, Equity, and Inclusion (DEI) Manifesto and launched multiple initiatives
  • Held first Sustainability and DEI Week and global Volunteering Day, investing €3.72 million in local initiatives
  • Reached strategic target of 23% women in management positions (ahead of schedule), setting a new target of maintaining gender pay equity

Governance Achievements

  • Became a participant of the UN Global Compact
  • Included in the Dow Jones Sustainability Indices (DJSI) World and Europe, and in the S&P Global Sustainability Yearbook 2024
  • Executive compensation linked to CO2 emissions reduction and increase in women in management positions

Climate Goals & Targets

Long-term Goals:
  • Net zero carbon emissions by 2040
Medium-term Goals:
  • Reduce absolute CO2 emissions by 50% by 2030 (compared to 2019)
  • Reduce Scope 3 CO2 emissions from the use of sold products by 38% by 2030
  • Achieve 30% women in office positions by 2028
  • Reduce absolute CO2 emissions generated by major suppliers by 30% by 2030
Short-term Goals:
  • Reduce water consumption by 15% per production unit by 2026
  • Achieve 75% water recycling index by 2026
  • Reduce CO2 emissions per ton of goods shipped by 7% by 2026
  • 100% of new products developed using sustainability/recyclability design criteria by 2026
  • Reduce injury frequency rate by 40% by 2026

Environmental Challenges

  • Climate change poses a global threat, requiring assessment of direct operations, supply chain, and products
  • Supply chain disruptions due to component shortages
  • Evolving expectations of geopolitical developments
Mitigation Strategies
  • Thorough assessment of climate-related risks and opportunities
  • Expanded life cycle approach for end-of-life products
  • Implementation of the Driving Operations Together (DOT) programme for continuous improvement
  • Maintaining relations with local authorities and avoiding operations in sanctioned countries

Supply Chain Management

Supplier Audits: 77 suppliers audited in 2023

Responsible Procurement
  • Supplier Code of Conduct
  • Conflict Minerals Policy
  • Open-es platform for supplier engagement

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events, floods, hailstorms, water stress
Transition Risks
  • Uncertainties regarding energy costs, life cycle of new products, climate-related regulations and disclosures
Opportunities
  • Development of energy-efficient products, alternative powertrains (electric, hydrogen, biofuels)

Reporting Standards

Frameworks Used: GRI Standards, SASB, TCFD, WEF

Certifications: ISO 50001, ISO 14001

Third-party Assurance: SGS Nederland B.V., B4SI

UN Sustainable Development Goals

  • SDG 3
  • SDG 4
  • SDG 5
  • SDG 6
  • SDG 7
  • SDG 8
  • SDG 9
  • SDG 10
  • SDG 12
  • SDG 13

Strategic targets contribute to the achievement of these SDGs.

Sustainable Products & Innovation

  • Electric vehicles (BEV, FCEV), natural gas vehicles, vehicles compatible with biofuels, new XC13 multifuel engine

Awards & Recognition

  • Not disclosed