Stellantis

No leading practices were identified for this company.

Stellantis is one of the few companies in the benchmark to have taken into account a carbon price that is aligned with its low-carbon goals and informs its decision-making process for capital investments. This helps the company to better gauge and manage climate risks and the associated costs.

No leading practices were identified for this company.

No leading practices were identified for this company.

Stellantis discloses its scope 1 and 2 emissions for 2021-2023 and has set a short-term target to reduce its scope 1 and 2 emissions intensity. The company’s scope 1 and 2 emissions intensity reduced by about 7% between 2022 and 2023 and the company is on track to meet its targets. However, though the company is aligned with a 1.5°C pathway, it runs the risk of going off course, as its locked-in emissions from sold products are projected to exceed its carbon budget between 2024 and 2028.

Stellantis has a comprehensive transition plan that covers the company’s targets until 2038 when it aims to achieve carbon neutrality. The company has conducted scenario testing, taking into consideration three or more scenarios, to inform the development of its transition plan, but the results from the analysis are only expressed qualitatively. While Stellantis has not set a target to fully phase out internal combustion engine (ICE) vehicles, it aims to reach full electrification of its passenger cars in the European market by 2030 and at least 50% for both passenger cars and light-duty trucks in the US market. Besides expanding its vehicle-as-a-service offering, there is no evidence of the company undertaking other actions to decarbonise its existing business.

Stellantis’ share of low-carbon vehicles was 6% in 2023 and is expected to decrease to 5% in 2024 and remain the same until 2028. The company’s low-carbon revenue is only about 9%. Additionally, while Stellantis reports its share of capital expenditure (CapEx) on low-carbon technologies at 35% for 2023, it does not report its future investment in these technologies. Stellantis has joint ventures with Samsung SDI and LG Energy Solution to increase its battery production capacity. Its total investments for these two joint ventures amount to over USD 6.3 billion for two gigafactories in Indiana, USA, and USD 3.5 billion, respectively.

Although Stellantis has implemented a supplier engagement strategy, it does not include quantified greenhouse gas (GHG) emissions reduction requirements. The company extensively engages with its suppliers to integrate them into its own emissions reduction ambitions, but it does not require suppliers to publicly report their GHG emissions. Next to strengthening its supplier engagement strategy with quantified GHG reduction requirements, Stellantis can improve its efforts to promote client emissions reductions by creating a client engagement strategy, especially for non-EV owners.

The company commits to engaging in social dialogue with workers and unions. It also discloses the categories of stakeholders it engages with on a just transition, including clients and consumer groups. However, no evidence was found to demonstrate the company’s ongoing social dialogue and meaningful engagement with affected stakeholders. No evidence was found of the company undertaking low-carbon transition planning to mitigate the social impacts of the transition on workers, affected stakeholders and its business relationships. Additionally, no evidence was found to demonstrate the company’s engagement in social dialogue and with stakeholders in its just transition planning.

No public commitment by the company was found stating its intention to create and support access to green and decent jobs as part of the low-carbon transition. Moreover, no evidence was found of the company’s actions to promote these jobs in a way that ensures gender balance and inclusion of vulnerable groups. Additionally, no relevant disclosure was found of the company’s assessment of employment dislocation risks. The company discloses the actions it takes to create jobs, such as training collaborations with Amazon TechXelerate and the National Employability Enhancement Scheme in India. It also discloses the measures it takes to ensure that these jobs embed equality of opportunity for women and vulnerable groups, such as its X-Factor Women’s Executive Development Program in North America. However, no evidence was found of the company having a process for identifying skills gaps for workers and stakeholders affected by the low-carbon transition or a public commitment to help workers displaced by the transition to re- or up-skill.

No relevant disclosure was found to show if the company identifies impacts of the low-carbon transition on social protection for workers and affected stakeholders, nor how it contributes to social protection. Additionally, no evidence was found that the company expects its business relationships to contribute to the social protection of their workers and affected stakeholders. No relevant disclosure was found to show how the company identifies any misalignment of its lobbying activities with policies and regulations that support the just transition, nor of the measures it takes to address misalignment. Furthermore, no evidence was found that the company lobbies for policies and regulations for green and decent job creation; retention, education and reskilling; and social protection for workers.

The company commits to respecting human rights and the ILO fundamental rights at work, and it expects its business relationships to respect the ILO fundamental rights at work. Furthermore, the company discloses a human rights due diligence process that includes the assessment of salient human rights risks. However, it does not assess and disclose the categories of affected stakeholders. The company takes action to mitigate these human rights risks in its own operations and its supply chain, and it engages with affected stakeholders. Additionally, the company has a grievance mechanism available to workers and external stakeholders.

The company commits to respecting worker health and safety and gender equality, and it discloses some information on collective bargaining and workforce diversity fundamentals. However, it can strengthen its disclosure on these subjects, as well as on its living wage and working hours practices.

The company commits to protecting personal data. However, no evidence was found of the company having a privacy statement regarding the collection, sharing and access to personal data. While the company discloses its global tax strategy, no relevant disclosure was found of the corporate income tax it pays in each relevant jurisdiction. The company does have a policy prohibiting bribery and corruption, and it includes corresponding clauses in its contracts with business relationships. Furthermore, the company has a lobbying and political engagement policy, and it specifies that it does not make political contributions. Yet, no relevant disclosure was found of the company’s expenditure on lobbying activities.