Sustainability Governance and Stakeholders

Sustainability Governance

All areas of the Group have an active role in addressing the goals and challenges of sustainability. In fact, the sustainability management process is based on a model of shared responsibility that, beginning with top management, involves every area and function within the organization. In each of the approximately 40 countries where the Group operates, all employees are expected to conduct their activities responsibly.

Several organizational entities are responsible for directing and coordinating the sustainable management of the Group’s businesses.

The Sustainability Unit (SU) plays a key role in promoting a culture of sustainability within the Group, facilitating a process of continuous improvement and contributing to risk management, cost optimization, stakeholder engagement and enhancement of the Group’s reputation. It interacts with individuals within each Region/Sector or central function that have operational responsibility for key areas (e.g., environment, energy, innovation, human resources, etc.), supporting them in identifying principal areas for action. The SU also manages the relationship with rating agencies, international sustainability organizations and investment analysts with the support and coordination of the Investor Relations team.

The SU is supported by top management through various bodies.

The Cross-functional Sustainability Committee (CSC) – consisting of the heads of the principal central functions, regions and sectors, who are also consulted individually – evaluates and facilitates operational decisions, as well as serving in an advisory capacity for proposals submitted by the SU to the Group Executive Council (GEC).

The Group Executive Council (GEC) – the decision-making body headed by the Group CEO and composed of the COOs of the regions and sectors and heads of various functions – defines the strategic approach, approves the guidelines and evaluates the alignment of the Sustainability Plan with business objectives. The GEC is periodically updated on the status of individual initiatives and the Group’s sustainability performance.

In addition, the Nominating, Corporate Governance and Sustainability Committee (a sub-committee of the Board of Directors) evaluates proposals relating to strategic guidelines for sustainability-related issues, formulating proposals to the Board of Directors as appropriate. The Committee also reviews the annual Sustainability Report.

Stakeholder Engagement

Fiat Group regularly engages with a broad range of stakeholders, both as part of its normal business activities and through specific initiatives to further enhance mutual understanding and trust. The interaction with internal and external stakeholders – including employees, customers, dealers, suppliers, trade unions, investors, public authorities, the environment, local communities and NGOs – is essential to understanding their expectations, needs and concerns and ensuring continued improvement in the Group’s sustainability performance. Multiple instruments and channels are used to maintain that open dialogue, including meetings with specific groups, town halls, social media, surveys and other targeted initiatives.

During 2012 the Group conducted a materiality analysis to determine the relative importance of the individual issues covered in the Sustainability Report. The analysis looked at economic, environmental and social aspects and identified the issues of greatest importance from the point of view of both internal and external stakeholders.

*All information in the Sustainability section has been audited by the independent certification organization SGS Italia S.p.A. The scope, methodology, limitations and conclusions of the audit are provided in the Assurance Statement issued by SGS and published in the Fiat Group 2012 Sustainability Report.

Fiat SpA | Site Map | Legal Notes | Privacy | Contacts | Accessibility | FAQs | Glossary | General Archive   ©2011 FIAT S.p.A. - P.IVA 00469580013