CNH Industrial, a global leader in sustainability, presents its 2015 Sustainability Report - Seite 3

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