POTENTIAL IMPACT OF OPERATIONS ON LOCAL COMMUNITIES
CNH Industrial has 64 plants in 190 countries worldwide (see also page 15), and is fully aware of the potential impact of its operations on the environment and local communities. To integrate with the community in which it operates, the Company adopts social and environmental policies that respect both people and the region. This goes beyond Corporate boundaries, extending to the supply chain. Indeed, where possible, the Company relies on and partners with local suppliers, to whom it transfers its best practices such as the WCM program. Local suppliers are also required to abide by the Company’s principles on human rights and working conditions (i.e., to reject all forms of forced and/or child labor), environmental protection, and business ethics (see also page 153).
Specifically, the aspects that could significantly impact local communities and that CNH Industrial is committed to improve, concern:
- the impact on the health of workers and their families (see also page 90)
- improvements in the welfare of workers and their families (see also page 95)
- the impact of atmospheric emissions (see also page 188) air quality protection (see also page 171)
- water management (see also page 173)
- soil and subsoil protection (see also page 175)
- waste management (see also page 176)
- biodiversity protection (see also page 178)
- removal of hazardous substances (see also page 180)
- adoption of logistics solutions with lower environmental impact (see also page 193).
All of the above are monitored, among other aspects, under the Risk Management system (see also page 64), but for some plants the monitoring of water management and biodiversity protection are particularly relevant. In those cases, targeted projects were launched, directly involving local communities.
INITIATIVES IN EMEA
In EMEA, CNH Industrial puts great emphasis on road safety (see also page 124) and on projects that prioritize education, especially for young people (see also page 121). At the same time, the Company maintains strategic collaborations with selected partners (such as Slow Food and the Telethon Foundation) to strengthen its social role across the areas in which it operates.
Moreover, the participation in Expo Milano 2015 as an official partner demonstrates the Company’s commitment to a sustainable approach to agriculture and, more in general, to business.
CNH Industrial at Expo Milano 2015
CNH Industrial is an official partner of Expo Milano 2015, a universal exhibition to be hosted by Italy for six months, beginning in May 2015. The event is designed to offer visitors and attending countries a global cultural, educational, and commercial experience. This year’s theme, Feeding the Planet - Energy for Life, will offer an opportunity to discover different flavors, traditions, and cultures, but also to open a dialogue on nutrition, food, and sustainable resources across the globe. CNH Industrial shares the spirit and the values of this year’s theme, as reflected by its unceasing commitment to pursuing production efficiency through the rational and sustainable use of resources.
The Company will be represented at Expo Milano 2015 by New Holland Agriculture. In line with its Clean Energy Leader strategy, New Holland will share how it approaches agriculture while protecting the environment, communities, and regions in which it operates. At the event, it will have a dedicated pavilion and exhibition space focusing on agriculture, where it will showcase several of its products. In addition, a series of interactive installations and videos will allow visitors to discover the innovative, crop-specific products and technologies manufactured and marketed by the brand. The exhibition area will be fully accessible to those with reduced mobility.
In the months leading up to Expo Milano 2015, the Seeds of Life Series project was launched via a dedicated website, to share the stories of eight farmers in eight different countries about their lives, experiences, and everyday challenges. The project aimed at highlighting how the instinct and sensitivity of today’s farmers is crucial to grow the crops needed to feed the planet.
THE SUSTAINABLE FARM PAVILION
New Holland Agriculture’s pavilion at Expo Milano 2015 was designed and built with sustainability criteria in mind.
It features photovoltaic panels integrated into the façade’s windows, producing renewable energy to be used inside the pavilion. Furthermore, the use of LED lights enables a significant reduction in energy consumption.
Another important detail is the system for the collection of rainwater, used to supply the sanitary facilities inside the structure and/or to irrigate the soil-covered roof.
At the end of Expo Milano 2015, the pavilion will be disassembled and permanently reassembled elsewhere for other purposes. This is why it was built with dry construction technology, modular façade components, and pre-assembled equipment that does not require further assembly on site. This design approach avoids the need for demolition and the generation of materials to be sent to landfills, leaving premises clear and free of pollutants.
A suggestion wall was created on the Corporate Intranet, where CNH Industrial employees will be able to share ideas and comments about the Company’s participation in Expo Milano 2015. Another initiative, Volontari per un giorno @ Expo 2015 (Volunteers for a day), will give Company employees in Italy the opportunity to volunteer within the scope of the event, while a separate campaign was launched to recruit employee family members to work at the pavilion.
Through Iveco Bus, CNH Industrial will actively contribute to the sustainability of the exhibition’s internal mobility, by supplying seven natural gas-powered buses (also capable of running on biomethane). Furthermore, nine New Daily vans and one Iveco Eurocargo will be provided to handle the logistics and transport of an Iveco dealer, whereas 18 Eurocargo street sweepers and seven Stralis Hi-Way trucks fitted with skip loaders will be used at external exhibition sites.
FPT Industrial, CNH Industrial’s powertrain brand, will display its top level Cursor 16 engine in the New Holland pavilion, to reinforce New Hollands’ clean technology message. FPT Industrial engines will power the transport and logistics vehicles for Expo Milano 2015 supplied by fellow CNH Industrial brands.
In addition, CNH Industrial is a sponsor of the USA Pavilion American Food 2.0, which will also showcase Case IH agricultural machinery and Case Construction Equipment.
Partnership with Slow Food
CNH Industrial’s brands have collaborated with the non-profit Slow Food organization for years, launching several initiatives. Iveco is an environmental partner of Salone Internazionale del Gusto e Terra Madre, the world’s largest fair for quality food and the most important event for connoisseurs and foodies. The fair is acknowledged as a low environmental impact event owing to the eco-friendly management of both consumption and waste. The event, held in Turin (Italy) in October 2014, was attended by 650 delegates from 95 countries, 220 thousand visitors, and over ten thousand students.
Iveco is also a technical partner of the Thousand Gardens in Africa project, in collaboration with the Slow Food Foundation for Biodiversity. The project focuses on bringing together the farming experience, community sharing, and educational/informational initiatives, while respecting different environments, socioeconomic scenarios, and cultures. During the first year of collaboration, a vehicle was donated to the community of Karrayyu shepherds in Ethiopia, which will allow them to carry almost a dozen cans of the camel milk they produce every day.
New Holland Agriculture, on the other hand, is a strategic partner of the Università degli Studi di Scienze Gastronomiche di Pollenzo (Italy), promoting specific projects on sustainable agriculture and on global food production mechanization, in line with the University’s curriculum (see also page 121).
Supporting the Telethon Foundation
CNH Industrial stands with the Telethon Foundation in supporting scientific research on genetic diseases at every year’s television marathon broadcast from Italy, and in December during the charity event called È in gioco la solidarietà (Solidarity at Stake). The latter was held at the Industrial Village in Turin (Italy); attended by approximately four hundred people, the event provided a significant moment of reflection on scientific research and on Telethon’s actual daily commitment in this regard. CNH Industrial, along with its brands Iveco, Iveco Bus, New Holland Agriculture, Case Construction Equipment, and FPT Industrial, sponsored the event and further contributed by donating all of the evening’s proceeds to Telethon’s research. Moreover, Iveco auctioned a New Daily on CharityStars, the first-ever charity fundraising platform that allocates the proceeds of online auctions to solidarity initiatives. All the money raised was devolved to Telethon.
Cooperation with Welthungerhilfe
CNH Industrial’s brand Case IH is the first partner for food of the German food aid organization Welthungerhilfe.
In 2014 Case IH supported the organization’s battle against hunger and poverty with a donation of $60 thousand.
The initiative aims to help provide sufficient and appropriate food to as many people as possible, particularly in regions that do not receive enough public attention. The donation is spent according to the priorities identified by the organization.
Welthungerhilfe’s projects require both agricultural engineering expertise and agricultural equipment, which is where Case IH comes into play. On average, smallholders in Kenya farm about half a hectare each, a surface that is barely sufficient to provide for the needs of the farmers’ families, let alone yield any produce surplus to be sold at regional markets to generate income. Case IH provided them with two tractors and respective implements for tillage and haymaking, delivered and supported via the company’s Kenyan sales and service network.
Collaboration with Global Shapers
As part of CNH Industrial’s commitment to communities, particularly in Africa, the Company supports the Global Shapers Community, an initiative of the World Economic Forum. Global Shapers Community is a network of citybased hubs developed and led by young leaders who want to develop their leadership potential in helping the community. By sponsoring the At Dinner with Africa fundraising campaign organized in 2014 by Venice Hub, CNH Industrial supported the Mothers and Children First project set up by the NGO Doctors with Africa Cuamm.
The donations collected helped over 350 women over three months at hospitals in Angola, Ethiopia, Uganda, and Tanzania: 150 women in labor were able to access an ambulance and hence give birth in well-organized facilities; ten women received grants to become midwives; and two hundred women received professional assistance during birth.
THE OCEAN, A TALKING BLUE VEIL PROJECT
The link between FPT Industrial and the Walkirye yacht remains a meaningful one. Niky Frascisco, now a teenager, has been affected by severe congenital bronchial asthma since childhood. His parents built a yacht in their backyard in 2003, so that he could live a healthy life at sea, without requiring medicines or hospital treatments. In 2006, Niky was appointed UNICEF Junior Ambassador for educational rights. In June of that same year, FPT Industrial gave the Frascisco family a NEF auxiliary engine for the yacht, followed down the line by a Cursor engine to celebrate Niky’s eighth year of sailing. Today, this experience has led to yet another project, called The Ocean, a Talking Blue Veil (Il Mare, un Velo Blu che parla), designed to offer fifty students aged 14-18 a trip to Campania, Basilicata, Calabria, and Sicily (Italy) aboard the Walkirye schooner. The project aims at improving the teenagers’ skills and at teaching them respect for nature, land, and the environment, adopting problem solving skills during group activities on board.
INITIATIVES IN NAFTA
Charitable donations and volunteering are a key part of CNH Industrial’s community involvement in NAFTA.
Requests for funding and/or charitable donations in 2014 were reviewed quarterly by the Company’s Contributions Board, prioritizing causes that benefit education, civic and community improvement, health and human services, and arts and culture in the communities where employees live and work.
During the year, the Company also completed the final regulatory steps required to create its own Corporate foundation. The new CNH Industrial Foundation, effective January 1, 2015, aims at transforming local communities by providing financial support to worthwhile charitable organizations. It will exclusively manage all Company-funded donations to non-profits, accredited schools, and publicly-funded organizations that support the Company’s goal of investing in the health and sustainability of local communities. In addition to causes centered on education, health and human services, and civic and community improvement, the Foundation will also focus its efforts on food security and disaster relief.
CNH Industrial and its brands finance long-term projects in partnership with key charitable organizations, such as Habitat for Humanity, United Way, and the American Cancer Society; they also make high-impact, one-off contributions such as those to the Fisher House Foundation: an organization best known for offering a network of homes where military and veterans’ families can stay at no cost while a loved one receives treatment. Fisher House Foundation homes are located at major military and veterans hospitals nationwide. In support of cultural initiatives, CNH Industrial donated $171 thousand to the Stuhr Museum Foundation in Grand Island (USA). The museum preserves and portrays life in the era of the pioneering town builders who created the first communities in Nebraska. Every year, families of plant employees can enjoy a tour of the museum on Family Day (see also page 89).
Moreover, the Fundación Merced Queretaro AC (Mexico) supports a program for the strengthening and professionalization of civil society organizations, offering training, workshops, and courses that provide tools, knowledge, and skills. The Company also donated over $2 thousand to the Hogares San Francisco IAP rehabilitation center, to support its activities and the refurbishment of its greenhouse; in addition to the economic support, an in-kind donation included an irrigation system.
Since 2007, CNH Industrial has supported Habitat for Humanity by raising funds and building homes for those in need in the US communities where the Company operates. Habitat for Humanity is a non-profit organization that tackles poverty and builds housing for the homeless. First started in 1976, it has since built more than 800 thousand homes worldwide, providing shelter to over four million people.
Employees supporting the initiative step away from their desks during working hours to assist in the various building phases: laying foundations, fitting windows and doors, and carrying out electrical work. In 2014, about 87 CNH Industrial employees helped build homes in Burr Ridge, Lebanon, and Racine (USA), volunteering five hundred work hours (see also page 98). CNH Industrial also donated $32 thousand to local affiliates near its sites in Burr Ridge, Calhoun, Lebanon, and Racine. Since 2007, CNH Industrial has donated more than $462 thousand to Habitat for Humanity.
Aware of the problems that the homeless face, the Company also collaborates with the Homeless Assistance Leadership Organization (HALO), which is committed to preventing homelessness in Racine (USA), and has a user base of a thousand people per year. In 2014, CNH Industrial donated approximately $51 thousand to create shelters, fund services, and support coordination activities. Since 2011, the Company has donated over $200 thousand to HALO.
Support to United Way
In 2014, CNH Industrial carried on its long-standing support for United Way, a non-governmental organization present in 41 countries worldwide helping those in need of access to primary care, with particular emphasis on education and health. To support United Way in its mission, CNH Industrial collected donations through an annual email campaign targeting its North American employees (over 11 thousand workers), and by holding several fundraisers with the involvement of its employees and including outings organized at various Company locations. Together, CNH Industrial and its employees donated more than $1.3 million in 2014.
FIGHTING CANCER TOGETHER
For five years, CNH Industrial and its employees have participated as a team in Relay for Life, a group-based, 24-hour fundraising walk for the American Cancer Society. In 2014, through employee fundraising and social contributions, CNH Industrial’s team was able to raise nearly $85 thousand for the organization. To raise awareness of breast cancer, the plant in Fargo (USA) manufactured a custom pink 621F Case Construction wheel loader for a customer in Winnipeg (Canada), to be used for snow removal. The customer donated 10% of all proceeds from the use of the machine to the Canadian Breast Cancer Foundation.
Case Construction in France launched the Pink October initiative, donating $266 to research for each tractor loader backhoe sold between October 1 and December 31, 2013. Proceeds were donated in 2014 to the Institut Curie in Paris, a leading cancer treatment center and one of the largest research centers in Europe.
In Australia, Iveco made a donation to Melbourne’s Otis Foundation, which provides free accommodation across a network of high-quality retreats to women affected by breast cancer, aiming at reducing the disease’s psychological impact on patients, their families, and communities.
INITIATIVES IN LATAM
In LATAM, social responsibility has become an increasingly important matter in recent years. As a consequence, social initiatives adopt a less purely philanthropic approach in favor of a more strategic one. For this reason, CNH Industrial selects projects and partnerships that have a social and environmental impact on its activities, involving its employees in the process. Education was one of the priority issues identified by an internal survey as requiring action, since it helps to overcome social inequalities, thus changing circumstances and creating better citizens. In this regard, CNH Industrial promotes short and long-term projects to benefit the community, customers, employees, and suppliers. Education is promoted through initiatives focusing on regional development, the dissemination of culture (arts, music, and literature), and the promotion of sports activities among underprivileged children and teenagers.
The Company has launched several programs in LATAM throughout the years to tackle the priority issues identified, and supports them on an ongoing basis. The projects developed within the scope of each program support thousands of people every year.
In 2009, Case Construction Equipment and Case IH set up the Case Multiação program, focusing on the areas surrounding the plants in Piracicaba and Sorocaba (Brazil). The program concentrates on human development, with the aid of non-governmental organizations, supporting the dissemination of culture, sports, and further education.
In 2007, Iveco launched the Proximo Passo project to promote initiatives ranging from the preservation of the environment to the strengthening of citizenship and sustainability in poor communities near the plant in Sete Lagoas (Brazil).
Lastly, in 2009, New Holland Agriculture and New Holland Construction created the Plantar & Construir program in Contagem and Curitiba (Brazil) to improve quality of life by promoting human development and providing social welfare through sports activities in the most vulnerable communities.
As part of such initiatives, one of the main educational and community development organizations that CNH Industrial supports is the Associação de Pais and Amigos dos Excepcionais (APAE) in Sete Lagoas, a non-governmental organization providing assistance to people with disabilities. There are currently 625 children involved. Iveco sponsors some of the association’s projects and development activities, and donated a minibus to assist with transport.
In Sorocaba, CNH Industrial supports the Pastoral do Menor organization, which works to reduce the number of children and teenagers living on the street. In a specially allocated building, they are given the opportunity for extra schooling, as well as a chance to socialize and participate in sports and leisure activities. In 2014, more than five hundred children and teenagers benefited from the organization’s initiatives.
In Contagem, CNH Industrial has worked with the Cooperação para o Desenvolvimento and Morada Humana (CDM) for two years to reduce poverty in highly deprived areas. Initiatives carried out near the plant include recreational workshops for children and teenagers (street dance, judo, and graffiti), social interaction (meeting up with families and parties for the community), and volunteer projects involving employees.
For some years, CNH Industrial has also supported the Madre Gertrude School, the Association São Miguel Arcanjo, and the ADAV Cultural Project, organizations that help children and teenagers who are at risk because of their situations or environment, providing educational and recreational activities.
CNH Industrial sponsors numerous artistic and cultural projects. In Sete Lagoas, CNH Industrial supports Associação Cultural Sempre Um Papo, which organizes regular lectures and discussions with leading writers and intellectuals, to foster a reading culture. In 2014, five events were organized attended by two thousand people. The events were filmed and compiled in a series of DVDs entitled Culture for Education, sent out to all public schools.
In Sorocaba, CNH Industrial supported the Pintura Solidária cultural organization for the Colours of Solidarity project.
The initiative encourages children, adolescents, adults, and the elderly to express their creativity through painting.
Workshops are held at hospitals, daycare centers, and organizations assisting children with psychological problems in the care of social workers, helping to raise self-esteem, strengthen patients’ immune systems, and develop the motor skills of children with physical disabilities. In the first half of 2014, the project was rolled out in ten cities, involving over 1,100 people. The Children’s Game project is a traveling exhibition comprising videos in which teachers talk about childhood. The exhibition toured 15 cities in the state of São Paulo in 2014, with audiences of nearly four thousand people.
In Curitiba, the Fazendo Arte e Promovendo Talentos project promotes art and painting workshops for underprivileged children. A large exhibition of artistic works produced in the workshops was held in one of the city’s art galleries. The historic building that once housed the Santa Casa De Misericordia hospital in Curitiba was also renovated, and now hosts cultural activities.
CNH Industrial promotes the CNH Economic Journalism Award, formerly the Fiatallis Award, created in 1993. The award is presented to members of the press to encourage quality news reporting and spark debate on the Brazilian economy by recognizing the contribution of the press to the country’s development, through its work and relationships with industry. On a related theme, 2014 marked the 10th New Holland Award for Photojournalism. Nearly 4,500 photos were submitted by about 1,100 professional and amateur photographers across Brazil, Uruguay, Paraguay, Argentina, and Chile. Additionally, for three years CNH Industrial has sustained the New Cine Bamaq project, a traveling cinema that sets up in the town squares of the poorer regions in Brazil’s interior. In one month, over 14 thousand people watched a movie screening.
For several years, CNH Industrial has supported a number of sports projects focusing on the social integration of young people from disadvantaged areas. Such initiatives include Esporte da Cidade in Sete Lagoas, involving 150 children and teenagers, and Arremesso do Amanhã in collaboration with the Sorocaba basketball league, involving two hundred children.
For four years, CNH Industrial has also sponsored the Bola da Vez Association. Through football, the organization wants to develop physical education, health, social inclusion, and citizenship for students aged six to 17, of both genders, officially enrolled in public elementary schools and with good grades. In 2014, over one thousand children from Sorocaba and the surrounding region were involved in the project.
In Curitiba, CNH Industrial has supported the Clube Educacional da Bicicleta for two years. The initiative encourages children and teenagers aged seven to 12 to exercise on bicycles and offers education on road safety. The project uses the city’s velodrome.
CNH Industrial also made donations to Pequeno Príncipe Hospital in Curitiba and Barretos Hospital in the state of São Paulo. The Natal Solidário (Christmas Solidarity) campaign encouraged CNH Industrial employees to help the surrounding communities by sending postcards, emails, and posters. The campaign collected 1,800 gifts for children in need. In 2014, the CNH Industrial volunteer program carried out further initiatives such as visits to refuges, and the organization of children’s days.
In Argentina, twenty employees volunteered to help build ten houses for disadvantaged people under the A Roof for my Country program.
INITIATIVES IN APAC
CNH Industrial has a strong presence in the Emerging Markets of the APAC Region, enabling the Company to share expertise and show its solidarity with local communities. Over the past year, this close relationship has taken on greater importance in terms of the initiatives developed. There were major initiatives offering solidarity to people in areas affected by natural disasters, such as the typhoon in the Philippines, and several others supporting education for young people across the Region (see also page 121).
In Australia, Case IH sponsored the Next Gen Step Up! conference, organized by the Australian Cane Farmers Association to foster dialogue on sustainability, innovation, and new agricultural practices, and to encourage knowledge transfer between young and established sugarcane farmers. Again in the farming sector, Case IH sponsored the Southern Precision Agriculture Association, a non-profit independent group formed in 2002 to promote the development and adoption of precision agriculture technologies.
In China, CNH Industrial donated clothes to children at the Wan Chuan Chuang Zhi primary school, in a small village of a thousand inhabitants in Sichuan Province, benefiting about 65 children.
PARTICIPATION IN EMERGENCY RELIEF EFFORTS
CNH Industrial always strives to respond rapidly to the needs of people affected by natural disasters. The Company channels resources (vehicles and financial and technical support) to aid impacted communities, as well as liaise for employees wanting to assist in relief efforts.
A wide range of New Holland equipment, from large excavators to small, compact machines, were put to work across Europe to clean-up and repair towns and cities affected by the storms and floods of spring 2014. For example, a New Holland E385 excavator, supplied to the Environment Agency, was used to repair the shingle sea defenses on Preston beach, on the UK’s south coast. In the northern coastal city of Gijon (Spain), in the region of Asturias, New Holland machines provided support to repair initial damage to the seafront promenade.
In 2014, the fleet of five machines supplied by CNH Industrial and its distributors for relief efforts in the Philippines was further used to help restore areas impacted by Typhoon Haiyan. The machines were first delivered in December 2013 to the United Nations relief operations based in Tacloban, in the province of Leyte, the area hit hardest by the typhoon. In 2014, the dealerships involved in the project supplied equipment and operators, as well as the necessary service support to keep the machines running in peak condition.
In January, a violent storm hit the eastern region of Minas Gerais State (Brazil). In partnership with the State Coordination of Civil Defense, New Holland Construction assisted by loaning a crawler dozer to help reopen streets and roads, transport materials and equipment, and remove debris.