Climate Change Data

CNH Industrial N.V.

Climate Impact & Sustainability Data (2021, 2022, 2023, 2024-04-01 to 2024-06-30)

Reporting Period: 2021

Environmental Metrics

Renewable Energy Share:74.9%

ESG Focus Areas

  • carbon footprint
  • occupational safety
  • life-cycle thinking
  • people engagement

Environmental Achievements

  • cut CO2 emissions per hour of production by 55% compared to 2014 (exceeding the 50% reduction target three years earlier than planned)
  • almost 75% of electricity consumption came from renewable sources
  • increased percentage of recovered waste to 95.1% at a global level (achieving the 2024 target ahead of schedule)
  • overall Water Recycling Index reached 51%

Social Achievements

  • 31% reduction in employee injury frequency rate compared to 2014
  • 13% increase in the number of women managers compared to 2019
  • $8.74 million invested in community projects (a 25% increase compared to 2020)

Governance Achievements

  • successful year-end demerger between CNH Industrial N.V. and Iveco Group N.V.
  • CNH Industrial included in the Dow Jones Sustainability Indices (DJSI) World and Europe for the 11th consecutive year with the top score in its industry
  • CNH Industrial included in the A List of both the CDP Climate Change and CDP Water Security programs
  • MSCI ESG Rating of AAA for the 8th consecutive year
  • EcoVadis awarded CNH Industrial its Platinum Level medal for the first time

Climate Goals & Targets

Long-term Goals:
  • Carbon neutral
  • Zero serious injuries
  • Fully recoverable
  • Fully engaged
Short-term Goals:
  • 100% of employees involved in engagement surveys
  • +50% vs. 2019 in number of women managers
  • 95% of waste recovered at Company plants worldwide
  • 80% of total electricity consumption derived from renewable sources
  • -50% vs. 2014 in CO2 emissions per production unit at Company plants worldwide
  • -20% vs. 2014 in kg of CO2 emissions per ton of goods transported (including spare parts)
  • 25% of product portfolio available with natural gas powertrains
  • -50% vs. 2014 in employee injury frequency rate
  • 100% of new products developed using sustainability/recyclability design criteria
  • 100% of Tier 1 suppliers involved in sustainability self-evaluations
  • +100% vs. 2017 in number of people who benefit from CNH Industrial’s local community initiatives

Environmental Challenges

  • global supply chain crisis increased raw material and transportation costs and reduced subcomponent availability, particularly for semiconductors
  • expedited logistics processes hindered efforts to curb overall CO2 emissions
Mitigation Strategies
  • continuous monitoring and communication with key suppliers to anticipate production requirements, potential supply gaps, and other concerns, so as to limit the impact of supply shortages

Supply Chain Management

Supplier Audits: 95

Responsible Procurement
  • Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks
  • flooding
  • severe storms

Reporting Standards

Frameworks Used: GRI Standards: Core option, SASB Standards

Certifications: ISO 45001, ISO 14001, ISO 50001, ISO 9001

Third-party Assurance: SGS

UN Sustainable Development Goals

  • Goal 2
  • Goal 3
  • Goal 8
  • Goal 10
  • Goal 12
  • Goal 13

Awards & Recognition

  • Dow Jones Sustainability Indices (DJSI) World and Europe
  • CDP Climate Change A List
  • CDP Water Security A List
  • MSCI ESG Rating of AAA
  • EcoVadis Platinum Level medal
  • S&P Global Gold Class Sustainability Award 2022
  • ISS ESG Prime status

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:232 Mtons/000 (Scope 1 and 2 market-based)
Scope 1 Emissions:127 Mtons/000 (2022)
Scope 2 Emissions:105 Mtons/000 (2022, market-based)
Renewable Energy Share:59.5% (2022)
Total Energy Consumption:2,370 GJ/000 (total direct)
Water Consumption:0.041 m3 per hour of production (2022)
Waste Generated:96.6% recovered (2022)

ESG Focus Areas

  • Climate change
  • Occupational Health and Safety
  • Circular Economy
  • Human Rights
  • Diversity & Inclusion
  • Community Investment

Environmental Achievements

  • 30 plants were ISO 14001 certified, while ISO 50001 energy management systems were implemented in 30 plants, representing about 99% of energy consumption.
  • 50% reduction vs. 2018 in CO2/h of production by 2030 (target)
  • 90% of total electricity consumption derived from renewable sources by 2030 (target)
  • 96.6% waste recovered in 2022

Social Achievements

  • Continued recognition from leading financial, institutional and industry bodies, including 12th consecutive year in the Dow Jones Sustainability Indices (DJSI) World and Europe, achieving the highest score (87/100) within the Machinery and Electrical Equipment Industry.
  • Inclusion in the A List of the CDP Climate Change program.
  • MSCI ESG Rating of AAA in 2022.
  • Great Place to Work® certifications in seven major markets.
  • Donated $500,000 to support humanitarian relief in Ukraine and matched employee donations for the Red Cross and UNICEF.

Governance Achievements

  • Upgraded ratings from Fitch Ratings and Moody's Investors Service.
  • ISS ESG Prime Status in 2022.
  • Responder to the 2022 Workforce Disclosure Initiative (WDI).

Climate Goals & Targets

Long-term Goals:
  • Net zero emissions by 2050 (implied)
Medium-term Goals:
  • Reduce CO2 emissions by 50% vs. 2018 by 2030
  • 90% of total electricity consumption derived from renewable sources by 2030
  • Reduce water withdrawals by 50% vs. 2018 by 2030
Short-term Goals:
  • Reduce CO2 emissions by 35% vs. 2018 by 2024
  • Reduce VOC emissions by 18% vs. 2018 by 2024
  • Reduce water withdrawals by 33% vs. 2018 by 2024
  • Increase waste recovered to 95% by 2024
  • Women holding 20% of leadership roles by year-end 2024

Environmental Challenges

  • Supply chain disruptions due to the COVID-19 pandemic, geopolitical instability (including the war in Ukraine), and inflation.
  • Rising interest rates impacting housing markets.
  • Competition in the agricultural and construction equipment markets.
  • Climate change impacts on agricultural production and operations.
  • Evolving laws and regulations imposing significant compliance costs.
  • Cybersecurity threats.
Mitigation Strategies
  • Purchasing, Logistics and Manufacturing teams worked to mitigate supply chain pressures.
  • Multi-year Strategic Sourcing Program (SSP) to build better supplier relationships.
  • CNH Industrial Business System (CBS) to drive improvements in quality, delivery, and innovation.
  • Investments in technology (digital, precision farming, alternative propulsion).
  • Decarbonization strategy.
  • Risk management processes aligned with the Group’s Sustainability Program.
  • Active management of information technology security risks.

Supply Chain Management

Supplier Audits: 65 audits performed remotely in 2022; 1,347 suppliers completed questionnaires.

Responsible Procurement
  • Supplier Code of Conduct covering human rights, working conditions, environment, and business ethics.
  • Conflict Minerals Policy to promote responsible sourcing of 3TG.

Climate-Related Risks & Opportunities

Physical Risks
  • Droughts, floods, and other unfavorable climatic conditions affecting agricultural production.
Transition Risks
  • Changes in government policies regulating bio-fuel utilization.
  • Changes in environmental and climate change laws.
Opportunities
  • Development of energy-efficient products and alternative fuel solutions (electric and hydrogen propulsion technologies).

Reporting Standards

Frameworks Used: GRI Standards, SASB Standards, TCFD

Certifications: ISO 14001, ISO 50001, ISO 45001

UN Sustainable Development Goals

  • SDG 2
  • SDG 3
  • SDG 8
  • SDG 10
  • SDG 12
  • SDG 13

Targets and initiatives are aligned with these SDGs.

Sustainable Products & Innovation

  • New Holland T7 Methane Power LNG tractor
  • Electrified construction equipment models
  • New Holland T4 Electric Power tractor

Awards & Recognition

  • Dow Jones Sustainability Indices (DJSI) World and Europe (12th consecutive year)
  • CDP Climate Change A List
  • MSCI ESG Rating of AAA
  • ISS ESG Prime Status

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:206,181 tCO2e (Scope 1 and 2)
Scope 1 Emissions:117,890 tCO2e
Scope 2 Emissions:87,720 tCO2e (market-based)
Scope 3 Emissions:48.8 million metric tons of CO2 equivalent
Renewable Energy Share:63.4%
Total Energy Consumption:3,532 TJ
Water Consumption:226,000 m3
Waste Generated:146,038 tons
Carbon Intensity:8.3% lower CO2 emissions per total manufacturing hours compared to the previous year

ESG Focus Areas

  • Carbon Footprint
  • Circularity and Eco-Efficiency
  • Inclusion, Equity and Engagement

Environmental Achievements

  • Reduced operational emissions by 35.5% compared to 2018
  • Recovered 95% of total waste (target was 97% by 2030)
  • Achieved 63.4% renewable electricity across operations (target is 90% by 2030)
  • Reduced greenhouse gas emissions by 900 tons annually at Lecce, Italy site through solar panel installation

Social Achievements

  • Provided more than 550,000 hours of professional training in 2023
  • Achieved 50% reduction in accident frequency rate (2030 target)
  • Reached 18% women in leadership roles (target is 20% by 2024)
  • Invested $12.8 million in local communities

Governance Achievements

  • Admitted to the top 5% of the S&P Global Corporate Sustainability Assessment
  • Ranked second in the machinery and electric component category of the Dow Jones World and North America Sustainability Indices
  • Leadership variable compensation linked to CO2 reduction and employee injury frequency targets

Climate Goals & Targets

Long-term Goals:
  • Net zero emissions by 2050 (implied)
Medium-term Goals:
  • 50% reduction vs 2018 in CO2 emissions per hour of production at manufacturing plants by 2030
  • 90% of total electricity consumption derived from renewable sources by 2030
  • 97% of waste recovered at Company manufacturing plants worldwide by 2030
  • 50% reduction vs 2018 of water withdrawal per hour of production at manufacturing plants worldwide by 2030
  • 15% of net sales of spare parts from remanufactured components by 2030
  • 90% recyclability for products by 2030
Short-term Goals:
  • 100% of new products developed using sustainability design criteria by 2024
  • 100% of employees worldwide involved in engagement surveys by 2024
  • 100% of Tier 1 suppliers involved in sustainability evaluations by 2024
  • 20% of women in leadership roles by 2024

Environmental Challenges

  • Softening commodity prices, rising costs, and environmental uncertainties impacting customers
  • Labor shortages
  • High inflation in Argentina and decreased inflation in Brazil affecting wage negotiations
Mitigation Strategies
  • Delivering more productive and sustainable equipment to help customers contend with environmental and financial pressures
  • Investing in technologies and innovative solutions (automation, AI, alternative power)
  • Implementing the CNH Business System for continuous improvement
  • Negotiating wage adjustments to compensate for inflation

Supply Chain Management

Supplier Audits: 70 supplier plants audited in 2023

Responsible Procurement
  • Supplier Code of Conduct
  • Sustainability self-assessments
  • Strategic Sourcing Program

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather
  • Flooding
Transition Risks
  • Regulatory changes
  • Market shifts
Opportunities
  • Development of energy-efficient products
  • Increased demand for sustainable solutions

Reporting Standards

Frameworks Used: GRI, SASB

Certifications: ISO 14001, ISO 45001, ISO 50001, ISO 9001

Third-party Assurance: SGS Nederland B.V.

UN Sustainable Development Goals

  • Goal 7 (Affordable and Clean Energy)
  • Goal 13 (Climate Action)
  • Goal 2 (Zero Hunger)
  • Goal 3 (Good Health and Well-being)
  • Goal 8 (Decent Work and Economic Growth)
  • Goal 10 (Reduced Inequalities)

Initiatives contribute to these goals through various programs and projects detailed in the report.

Sustainable Products & Innovation

  • Methane-powered tractors
  • Electric tractors and implements
  • Electric mini excavator
  • Electric backhoe loader

Awards & Recognition

  • Agritechnica Gold Medal for Innovation (CR11 combine harvester)
  • Best Contribution to Thailand’s Education Award 2023

Reporting Period: 2024-04-01 to 2024-06-30

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

  • Lower industry demand resulting in decreased shipments and reduced dealer inventory requirements.
  • Weaker market conditions in both agriculture and construction equipment markets.
Mitigation Strategies
  • Continued execution of cost savings initiatives focused on product costs and SG&A expenses.
  • Restructuring program aiming for a 10-15% run rate reduction in total labor and non-labor SG&A expenses.

Supply Chain Management

Climate-Related Risks & Opportunities