Climate Change Data

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Challenging operating environment in Venezuela due to economic uncertainty and limitations in converting Bolivars to US dollars; restrictions on managing operations and paying obligations in US dollars.
• Currency crisis in Venezuela causing difficulties importing key components and materials, leading to suspension of manufacturing operations.

Mitigation Strategies

• Changed the Bolivian Fuerte rate used to re-measure Venezuelan Commercial Vehicles business operations financial statements in US dollars, using the exchange rate determined by US dollar auctions conducted under Venezuela’s Complementary System of Foreign Currency Administration (SICAD I).
• Commercial Vehicles (previously, Iveco) suspended manufacturing operations in Venezuela and will consider resuming if market conditions improve.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: IFRS, US GAAP

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Sustainability

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Costs of ongoing compliance with, or failure to comply with, increasingly stringent environmental, health and safety laws
• Reduced demand for equipment
• Supply chain disruptions
• Increased prices for raw materials
• Competitive activity
• Decrease in government incentives
• Unfavorable weather conditions, climate change or other calamities
• Changes in demand for food and alternate energy sources
• International trade policies
• Difficulty in obtaining financing or refinancing existing debt
• Exchange rate fluctuations, interest rate changes and other market risks
• Currency devaluations
• Potential Impact of the Dodd-Frank Act and other regulations
• Shortfalls in pension plans
• Significant outstanding indebtedness
• Restrictive covenants in debt agreements
• Cybersecurity breach
• Changes in privacy laws
• Risks associated with employment relationships
• Loss of members of senior management

Mitigation Strategies

• Significant investments in research and development and capital expenditures
• Adjusting production schedules or purchases from suppliers to reflect changes in customer demand and market fluctuations
• Managing information technology security risks through security measures, business continuity plans and employee training
• Incurring significant costs to comply with privacy and data security laws
• Developing succession plans
• Maintaining insurance coverage

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• extreme weather, flooding

Transition Risks

• regulatory changes, market shifts

Opportunities

• development of energy-efficient products

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• New Holland Agriculture methane powered concept tractor
• IVECO Daily Blue Power range

Awards & Recognition

• CASE CX7500 excavator won awards for the best total cost of ownership
• IVECO Daily Blue Power range, winning the International Van of the Year 2018
• IVECO BUS Crossway LE won the 2017 International Bus and Coach competition
• IVECO Tourys won the 2017 International Minibus of the year

Environmental Metrics

ESG Focus Areas

• Carbon footprint
• Occupational safety
• Life-cycle thinking
• People engagement

Environmental Achievements

• Reduced CO2 emissions per hour of production by 55% compared to 2014 (exceeding the 50% target three years early)
• Achieved 74.9% renewable energy in electricity consumption, nearing the 80% target for 2024
• Increased recovered waste at plants to 95.1%, achieving the 2024 target ahead of schedule
• Achieved a 51% water recycling index

Social Achievements

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

Governance Achievements

• Established a Chief Diversity & Inclusion, Sustainability, and Transformation Officer role
• Improved Board diversity with two new female directors, bringing female representation to 33.3%

Climate Goals & Targets

Environmental Challenges

• Global supply chain crisis increased raw material and transportation costs and reduced subcomponent availability, hindering efforts to curb CO2 emissions

Mitigation Strategies

• Relied on expedited logistics processes (acknowledged as hindering emission reduction efforts)
• Continuous monitoring and communication with key suppliers to anticipate production requirements and potential supply gaps

Supply Chain Management

Supplier Audits: 95 audits in 2021

Responsible Procurement

• Supplier Code of Conduct
• Sustainability self-assessments
• Sustainability audits
• CO2 emissions monitoring

Climate-Related Risks & Opportunities

Physical Risks

• Flooding
• Severe storms

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

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

Initiatives aligned with these SDGs to combat climate change, improve food security, reduce inequalities, promote sustainable production, and ensure good health and wellbeing

Sustainable Products & Innovation

• Remanufactured spare parts
• Natural gas-powered vehicles
• Electric/hybrid drivelines

Awards & Recognition

• Dow Jones Sustainability Indices (DJSI) World and Europe (11th consecutive year)
• CDP Climate Change and Water Security A-Lists
• MSCI ESG Rating of AAA (8th consecutive year)
• EcoVadis Platinum Level medal
• S&P Global Gold Class Sustainability Award 2022
• ISS ESG Prime status
• Great Place to Work® certification in India, Brazil, Argentina, China, and Australia

Environmental Metrics

ESG Focus Areas

• Climate change
• Sustainability
• Safety
• Diversity and Inclusion

Environmental Achievements

• Reduced CO2 emissions by 30.6% compared to 2018 (Accident Frequency Rate improved to 0.146 from a target of 0.153)
• Developed a Methane Powered Tractor that runs on methane produced on the farm from animal and food waste.
• Invested in Bennamann, a technology start-up developing an on-site kit for small-medium size livestock farms to capture and repurpose fugitive methane.

Social Achievements

• Launched initiatives around the globe, such as D&I training, employee resource groups (ERGs), online forum panel series "Let's Talk", and partnerships with the Society of Women ENgineers.
• Implemented a program to promote compliance with anti-corruption laws (e.g., the U.S. Foreign Corrupt Practices Act and the U.K. Bribery Act).

Governance Achievements

• Established an Environmental, Social, and Governance Committee.
• Implemented a Code of Conduct applicable to all employees, officers, and directors.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to the COVID-19 pandemic, geopolitical instability, and the war in Ukraine.
• Increased costs of raw materials and freight due to inflation.
• Meeting increasingly stringent environmental regulations.

Mitigation Strategies

• Multi-year supply chain transformation under a new strategic sourcing program.
• Implementing new technology to meet engine emission reduction standards.
• Passing on increased raw material costs to customers through price increases (with a time lag).

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Focus on quality, reliability, and cost reduction from suppliers.
• Closer ties with a reduced number of suppliers.

Climate-Related Risks & Opportunities

Physical Risks

• Droughts, floods, and other unfavorable weather conditions.

Transition Risks

• Changes in government policies regulating biofuel utilization.
• Increased disclosure requirements related to climate change.

Opportunities

• Development of energy-efficient products and alternative propulsion systems.

Reporting Standards

Frameworks Used: Null

Certifications: ISO 45001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Methane Powered Tractor

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Sustainability
• Diversity and Inclusion
• Climate Change

Environmental Achievements

• Developed two New Holland brand methane-powered tractors (T6 and T7)
• Controlling stake in Bennamann Ltd, developing a solution to capture fugitive methane emissions from livestock farm waste and repurpose it into biofuel.
• Produced and distributed battery-powered compact construction equipment, including electric mini excavators and small articulated loaders.

Social Achievements

• Adopted a Policy on Diversity and Inclusion in 2023.
• Defined 5 key cultural behaviors (Customer First, One Team, Grow Together, Make it Simple, Be the Best) and implemented tools to support them.
• Offers well-being initiatives in addition to traditional benefits.

Governance Achievements

• Implemented a program to promote compliance with anti-corruption laws (e.g., U.S. Foreign Corrupt Practices Act, U.K. Bribery Act).

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions
• Inflationary pressures
• Global economic conditions
• Geopolitical risks (war in Ukraine, Israel-Hamas war)
• Climate change impacts
• Cybersecurity threats
• Material weakness in internal control over financial reporting

Mitigation Strategies

• Multi-year supply chain transformation under a strategic sourcing program
• Price realization to offset increased costs
• Investing in innovation (precision technology, alternative propulsion)
• Cybersecurity Program overseen by the Audit Committee
• Implementing measures to remediate material weakness in internal control

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Droughts, floods, unfavorable weather conditions

Transition Risks

• Regulatory changes, market shifts (alternative energy demands)

Opportunities

• Development of energy-efficient products

Sustainable Products & Innovation

• Methane-powered tractors
• Battery-powered construction equipment