Economic, Environmental and Social Responsibility

 2009 sustainability report

Economic, Environmental and Social Responsibility

2009

cONTENTS

3

Sustainability

Report

Contents

4 Letter to stakeholders

6 Guide to the Report

7

Contents

7

Materiality and stakeholder inclusiveness

10

Scope of reporting

10

Principles for ensuring report quality

10

Calculation methodology

THE GROUP AND SUSTAINABILITY

14 A year of sustainability: facts and figures

16 Group profile

17

Automobiles

20

Agricultural and Construction Equipment

21

Trucks and Commercial Vehicles

22

Components and Production Systems

24 Map of principal international agreements

26 Corporate Governance

27

Code of conduct

30

Enterprise Risk Management model

31

Public policy position

33

Evolution of the compliance program

34 Sustainability Governance

34

Breakdown of economic value generated

37 Sustainability Plan

AN INTEGRATED APPROACH TO

SUSTAINABLE DEVELOPMENT

62 Safe and ecological mobility

64

Sustainable mobility at 360?

74

Recovery recycling reuse

76

Safe, inside and out

82 Sustainable innovation

84

Projects and collaboration in Europe

86

Clean technology

87

Light and modular vehicle architecture

88

Integrated safety

91

Perceived quality

92

Urban mobility solutions

94 Factories and non-manufacturing processes

94

Environmental management system

97

World Class Manufacturing

98

Energy management and fight against climate change

102

Emissions of Volatile Organic Compounds

103

Water usage

104

Waste management

105

Biodiversity

106

Logistics

110

Non-manufacturing processes

112 Our people

112

Employees in numbers

121

Management and development

123

Internal communications

124

Training

127

Occupational health and safety

133

Industrial relations

138

Initiatives in favour of employees

140 Dealer and service network

140

Training for the network

143

Reducing environmental impact

144 Customers: the company's future

144

Customer Services Centre

147 Suppliers as partners

150 Development in harmony with local communities

APPENDIX

158 Further details

158

Economic dimension

160

Environmental dimension

164

Social dimension

167

Glossary

168 Statement of assurance

170 Index of GRI-G3 content

This document has been translated into English for the convenience of international readers. The original Italian document should be considered the authoritative version.

4 2009

Sustainability Report

letter To STAKEHOLDERS

Letter To STAKEHOLDErS

The facts and figures that you will find on the following pages, the images and words that have been used to illustrate what Fiat has done and how it has done it only go part way to showing what sustainability means to our Group. Behind these figures is a serious commitment, an entire corporate culture and a responsible approach to management all based on a conviction that this is the only path which guarantees merit and dignity to the results achieved. The commitment is not an arbitrary one but rather an approach to management which has become increasingly central to the Group, with top management leading the way. In fact, the Group Executive Council - the decision-making body consisting of the CEOs of the operating Sectors and the heads of several key departments - is responsible for establishing the strategic approach to sustainability and, in 2009, the Board of Directors expanded the role of the Nominating and Corporate Governance Committee to also include responsibility for sustainability issues. To further underscore our clear and unwavering adherence to a culture of responsibility, which goes beyond economic considerations, we have aligned the Group's Code of Conduct - an integral part of the employment contract for everyone at Fiat worldwide - to international best practice for sustainability issues. Notwithstanding the challenging market environment we faced in 2009, the Group continued to invest in environmental and social sustainability and successfully achieved the targets published last year in our first Sustainability Plan.

During the year, Fiat received recognition for its commitment with admission to the Dow Jones Sustainability World and Dow Jones Sustainability STOXX Indexes, the two most prestigious equity indexes which only admit companies that are judged best-in-class in the sustainable management of their business. We were also recognised by SAM, the group specialised in sustainability investing, as the automaker which most improved its sustainability performance in 2009, placing us within 5% of the sector leader and earning Fiat both the "Sector Mover" and "Gold Class" distinctions. We were extremely gratified by this recognition, because it demonstrates that our sense of responsibility is part of a mentality that has spread throughout the entire organisation. It is a way of doing business which guides us daily toward the development of sustainable practices.

We exercise this responsibility on several fronts: the environment and sustainable mobility; attention to the needs of individuals, both inside and outside the company; and, conduct guided by ethics and transparency. In 2009, significant results were achieved in all areas of activity. On the environmental front, Fiat was recognised for the third consecutive year as the most eco-performing of the major brands in Europe, with cars that have the lowest CO2 emissions levels. With the MultiAir system for gasoline engines and the MultiJet II for diesel engines, Fiat Powertrain Technologies confirmed its position as a pace-setter in the powertrain field with innovative technologies targeted at reducing CO2 and polluting emissions.

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