CNH Industrial, a global leader in sustainability, presents its 2015 Sustainability Report

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Main environmental results:

• -2% of energy consumption per hour of production in comparison to 2014;
• 48% of the total energy consumption at manufacturing facilities is from renewable sources;
• 18,000 tons of CO₂ emissions avoided due to the adoption of energy saving projects (equaling 59 flights between London and Chicago);
• 27% of water recycled (equal to the amount of water contained in 812 Olympic-size swimming pools);
• -9% waste produced per hour of production in comparison to 2014 (equal to the weight of 869 Statues of Liberty);
• 7 monitored plants near protected or highly bio diverse areas.

Main social results:

• 94% of supply entrusted to local suppliers;
• 100% of new suppliers evaluated according to sustainability criteria;
• 150 suppliers involved in the CDP supply chain questionnaire;
• $3.7 million invested in local community projects;
• $84 million spent on Occupational Health and Safety projects;
• -9% in the occupational accident frequency rate in comparison to 2014;
• $4.5 million invested in employee training;
• $450,000 in grants and scholarships awarded to the sons and daughters of employees.

The report is divided into three sections:

• Our Sustainable Company – contains a description of how CNH Industrial operates in a global context, outlining the aspects that are material to the Company and its stakeholders and the process through which they are identified. It also contains the results achieved during the year and the Company's objectives for the future;
• How We Get Things Done – illustrates how the company takes care of its employees and how it interacts with local communities as well as public and private organizations;
• Our Value Chain – describes the CNH Industrial value chain: from the concept of a new product to its design, from production to sale, from the relationship with the commercial network to customer support until the end of the product life cycle.

The 2015 Sustainability Report presents:

• More than 100 targets that CNH Industrial has taken on for the future;
• Approximately 200 qualitative and quantitative indicators in the areas of economics, environment and society;
• Over 180 environmental or social projects and initiatives, of which more than 50 are specifically targeted towards the well-being of the communities in proximity of CNH Industrial locations.

Leader in sustainability

In 2015, CNH Industrial reconfirmed its prominent position in sustainability in the Dow Jones Sustainability Indices World and Europe. In addition to being named as Industry Leader in its sector (Machinery and Electrical Equipment), the Company was also named as Capital Goods Industry Group Leader, a classification which only includes the 24 companies evaluated as being the most sustainable in the world. CNH Industrial further received 100A, the maximum score in the CDP Climate Change program, which demonstrates its commitment towards climate change mitigation. The Company was also included in other sustainability indices, such as: ECPI Global Agriculture Equity, ECPI Global Developed ESG Best in Class Equity, Euronext Vigeo Europe 120, Euronext Vigeo Eurozone120, FTSE4Good, FTSE ECPI Italia SRI Benchmark, FTSE ECPI Italia SRI Leaders, MSCI Global Sustainability Indexes, STOXX Global ESG Environmental Leaders Index, STOXX Global ESG Social Leaders Index, STOXX Global ESG Leaders Index, STOXX Europe Sustainability Index and EURO STOXX Sustainability Index.

To reinforce the link between its business strategy and upcoming trends, the Company has undertaken a series of new projects. Alongside stakeholder engagement, activities, through which stakeholders are involved in examining the relevancy of certain priority aspects for CNH Industrial, a mega trend study was started to evaluate which of these aspects the company will have to consult in the future. In view of this, CNH Industrial also analyzed the UN Sustainable Development Goals (SDGs) in order to evaluate its own positioning with respect to the targets defined by the United Nations and, in parallel, it joined the Commit to Action campaign promoted by CDP, during the UN Climate Change Conference (COP21), taking on two commitments.

Innovation

Innovation is one of the company's strategic levers for maintaining a high competitive advantage.

2015 in numbers:

• $877 million invested in research & development;
• 50 research centers;
• More than 7,700 active patents;
• 66 scientific collaborations and 85 collaborative research projects;
• 6,000 employees (of its overall workforce of more than 64,000) working in Research & Development.

Manufacturing activities that respect the environment

Thanks to the World Class Manufacturing (WCM) program currently implemented at 54 CNH Industrial manufacturing sites worldwide, the company was able to save over $174.46 million in 2015. WCM is a structured system of methodologies that focuses on continuous improvement with the objective of eliminating all waste and losses in manufacturing plants. At the end of 2015, a total of ten plants achieved the silver level status and 21 achieved the bronze level. Within the scope of the program, employees actively contributed towards optimizing factory activities during the year by providing 422,000 suggestions for improvement on a global level.

Climate change mitigation is one of the most urgent challenges facing the international community, and CNH Industrial assumes its responsibilities by investing in the optimization of energy consumption and decreasing the use of fossil fuels in order to reduce CO₂ emissions. In 2015, $11 million were invested to improve the energy performance of its plants. With regards to environmental protection, CNH Industrial invested $37 million in 2015.

2015 results:

• 2% reduction in energy consumption per hour of production in comparison to 2014;
• 48% of the total energy consumption at manufacturing facilities from renewable sources;
• more than 81,000 tons of CO₂ emissions avoided due to the increased use of energy from renewable sources;
• 89% of waste recovered;
• 7 monitored plants near protected or highly bio diverse areas.

Development of eco-friendly products

Products from CNH Industrial brands are designed and manufactured to demonstrate ever-greater efficiency and ever-lower CO₂ emissions. To reach this objective, the company focuses its strategy on the following:

• Improved consumption and energy efficiency: increase product performance and reduce fuel consumption and Total Cost of Ownership;
• Use of alternative fuels: offer a wide range of products powered by fuels with low emission levels, such as: natural gas, biomethane and biodiesel. In 2015, CNH Industrial sold 3,255 compressed natural gas (CNG) powered engines produced by its brand FPT Industrial, and more than 900 natural gas vehicles through its brand Iveco.
• Development of non-conventional propulsion systems: the commercial vehicle segment offers buses, light-duty and medium range vehicles with non-conventional electric or hybrid (electric and diesel) drive systems. In comparison to diesel engines, a medium range truck can reduce its fuel consumption by up to 30% in the city. For buses, average reductions in fuel consumption and CO₂ emissions of up to 35% can be achieved.
• Development of telematics systems that improve productivity: precision farming management provides intelligent solutions for Agricultural Equipment and collects data for enhancing the entire agricultural cycle: plowing, sowing, fertilizing and harvesting. The Construction Equipment segment offers an innovative telematics system that uses a GPS satellite localizer for the remote monitoring of a number of operations and factors to maximize fleet distribution across construction sites, increase efficiency and optimize consumption and emissions. The Commercial Vehicles sector features a system for on-road vehicles for simplifying and integrating infotainment, navigation and driving assistance devices and providing fleet management services.
• Supporting responsible use: assist customers with understanding the optimal use of their products in order to enhance efficiency and reduce emissions. This goal is achieved through a number of approaches such as: electronic systems, computer tools and targeted training activities.

A responsible supply chain

CNH Industrial takes a responsible approach towards managing its supply chain, maintaining transparent relationships and long-lasting, mutually satisfactory partnerships. In addition, one of CNH Industrial's commitments is to promote environmentally and socially responsible behaviors along its own supply chain.

2015 in numbers:

• 5,380 suppliers of direct materials;
• 94% of supply entrusted to local suppliers;
• 100% of new suppliers are evaluated according to sustainability criteria;
• 1,254 suppliers requested to complete a self-assessment questionnaire;
• 65 sustainability audits performed at supplier plants worldwide;
• 150 suppliers involved in the CDP supply chain questionnaire.

In the community: creating shared value

The Company promotes an open dialogue to ensure that the legitimate expectations of local communities are duly taken into consideration, and voluntarily endorses projects and activities that encourage their economic, social, and cultural development. In 2015, CNH Industrial invested $3.7 million in local communities through projects, donations and employee volunteer efforts. These investments spanned the areas of social welfare, emergency relief, education, youth development and arts and culture.

2015 results:

• 273 young people received training through the TechPro² initiative in Brazil, China, Ethiopia, Italy and South Africa;
• 3 macro programs supporting communities, particularly for educational and recreational activities for children and teenagers in difficult situations in Brazil;
• 350 volunteer working hours logged by employees to build houses for the homeless in the United States;
• 1,500 young farmers and unemployed young people trained through three Agri Training Centers in India.

Some of the organizations with which the Company has established community partnerships and collaborations in 2015 include: The American Cancer Society, Expo Milano 2015, Food and Agriculture Organization of the United Nations (FAO), Cooperação para o Desenvolvimento and Morada Humana, FIA Action for Road Safety, Future Farmers of America, Habitat for Humanity, Hogares San Francisco (IAP), Homeless Assistance Leadership Organization (HALO), Pastoral do Menor, Safe Schools, Slow Food, Telethon Foundation, Trans-Help, United Way.

Our people

CNH Industrial considers its people an essential asset. Operating in dynamic and highly competitive industries, success is achieved first and foremost through the talent and passion of skilled individuals. CNH Industrial strongly believes that business growth goes hand in hand with personal growth. Therefore, its investments are focused on programs for increasing skills as well as training and projects regarding health and safety.

2015 in numbers:

• 64,391 employees worldwide;
• $84 million spent on Occupational Health and Safety projects;
• 55 OHSAS 18001 certified plants;
• -9% in the occupational accident frequency rate in comparison to 2014;
• $4.5 million invested in employee training;
• $450,000 in grants and scholarships awarded to the sons and daughters of employees.

The interactive version of CNH Industrial's 2015 Sustainability Report is available online at:
http://bit.ly/CNH_Industrial_2015-Sustainability-Report

CNH Industrial N.V. (NYSE: CNHI /MIB: CNHI), a world leader in the capital goods sector backed by solid industrial expertise, an extensive range of products and a worldwide presence. Each of the individual brands belonging to the Company is a major international force in its specific industrial sector: Case IH, New Holland Agriculture and Steyr for tractors and agricultural machinery; Case and New Holland Construction for earth moving equipment; Iveco for commercial vehicles; Iveco Bus and Heuliez Bus for buses and coaches; Iveco Astra for quarry and construction vehicles; Magirus for firefighting vehicles; Iveco Defence Vehicles for defence and civil protection; and FPT Industrial for engines and transmissions. For more information on CNH Industrial: www.cnhindustrial.com

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SOURCE CNH Industrial N.V.

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