Chrysler 2012 Annual Report Download - page 82

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Report on Operations
Sustainability
4
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.
(4) 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.
Sustainability Report on
Operations