CNH Industrial

No leading practices were identified for the company in the governance and strategy measurement area.

No leading practices were identified for the company in the environment measurement area.

No leading practices were identified for the company in the nutrition measurement area.

No leading practices were identified for the company in the social inclusion measurement area.

Sustainable development strategy
CNH’s sustainability strategy includes four priority areas. These cover topics addressed in the benchmark’s environment and social inclusion measurement areas, with targets set for 2024 under each. The company demonstrates that its materiality assessment formed the basis for defining its sustainability priorities. However, there is an opportunity for CNH also to disclose sustainability priorities and targets related to nutrition and food security.

Governance and accountability for sustainable development
CNH demonstrates having teams and committees in place to facilitate an efficient implementation of its sustainability strategy as well as ultimate board-level responsibility and accountability for the sustainability strategy and performance. While the company lists in its annual report various long- and short-term incentives that factor into remuneration for directors, it does not demonstrate that their remuneration is linked to sustainability performance.

Stakeholder engagement
CNH engages with stakeholders on sustainability issues and provides an overview of relevant stakeholder groups and issued raised with them. Moreover, the company discloses its process for identifying and engaging with stakeholders as well as how it integrates outcomes of stakeholder engagement activities into its sustainability strategy. While the company’s engagement activities cover topics related to the environment and social inclusion measurement areas, there is an opportunity for CNH also to demonstrate it is engaging stakeholders on topics related to nutrition.

Scope 1 and 2 greenhouse gas emissions
CNH has set a 2030 target to reduce its scope 1 and 2 GHG emissions by 60% against a 2014 baseline, and it reports on progress annually. However, there is an opportunity for the company to align this target with a 1.5-degree scenario.

Scope 3 greenhouse gas emissions
CNH provides evidence of activities to reduce segments of its scope 3 GHG emissions in its supply chain through supporting suppliers to adopt more environmentally friendly production methods. It also reports on reduced emissions in its supply chain. There is an opportunity for CNH to set a target to reduce its scope 3 GHG emissions, which should also include emissions from sold products.

Soil health and agrobiodiversity & fertiliser and pesticide use
Through the development of precision farming and digital agriculture solutions, CNH reports to contribute to improved soil health and the optimisation of fertiliser use. These include, for example, a real-time soil sensing system that enables uniform tillage and reduced soil disturbance. However, there is an opportunity for CNH to provide quantitative evidence of the (potential) impact of its products on soil health as well as to set sales-based targets for products that positively impact soil health.

Water use
CNH has set a 2022 target to reduce its water withdrawal per production unit by 24% against a 2014 baseline, and it reports on progress annually. Moreover, the company provides evidence of a water risk assessment and sets additional targets for its production locations in water-stressed areas. CNH could further improve by disclosing the proportion of its total water withdrawals that come from water-stressed areas.

Food loss and waste
CNH discloses having educational projects that focus on reducing food loss at the farm level. However, the company provides no further quantitative evidence of its efforts to reduce food loss. Therefore, there is an opportunity for CNH to disclose quantitative evidence on how its activities and products contribute to reducing food loss as well as to set targets on the topic.

Availability, accessibility and affordability of healthy foods
CNH recognises food availability as one of its key priorities and discloses evidence of several projects to improve food security. These projects include providing training and access to agricultural machinery in underprivileged areas to allow for increased production. While the company demonstrates it enables improved yields and productivity with its products, it does not demonstrate how it contributes to an increased availability of healthy and nutritious foods.

Workforce nutrition
CNH demonstrates that it contributes to the nutrition of its workforce by offering healthy food options and nutritionist advice to a portion of its workers. However, the company can strengthen its commitment to workforce nutrition by providing quantitative evidence of the percentage of food offerings that are healthy, or by setting a target to make healthy food the majority of all food offerings in the workplace.

Forced labour
CNH commits to prohibiting forced labour, guaranteeing freedom of association and respecting workers’ right to collective bargaining, and it requires its suppliers to adhere to the same standards. While the company requires its suppliers to refrain from withholding workers’ personal documents, it does not disclose a requirement for suppliers to refrain from restricting workers’ freedom of movement.

Child labour
CNH has a commitment not to use child labour and requires its suppliers to adhere to the same standard. In addition, suppliers must have an age-verification process in place. Through yearly assessments of its operations and auditing of high-risk suppliers, the company monitors for the presence of child labour in its operations and supply chain. However, CNH has an opportunity to disclose its remediation process, should a case of child labour be found, as well as to demonstrate it is engaging with suppliers to eliminate child labour in its supply chain.

Farmer and fisher productivity and resilience
CNH provides examples of activities to support the productivity and resilience of farmers, such as trainings to transfer knowledge on the modernisation of local agricultural mechanisation practices. However, there is an opportunity for the company to demonstrate that it is measuring the impact of its support activities and report accordingly.

Living wage
The company does not disclose that it pays its workers a living wage or requires its suppliers to do the same. Neither has it set targets to do so in the future.

CNH provides grievance mechanisms for workers and third parties and commits to respecting human rights and the ILO core labour rights in its operations and supply chain. However, no evidence of a human rights due diligence process was found in the public domain. Moreover, CNH does not describe how it engages with affected and potentially affected stakeholders.

CNH commits to respecting the health and safety of its workers and places health and safety expectations on its supply chain partners. However, it can strengthen its monitoring and quantitative reporting, such as on high-consequence injuries and the main types of injuries in the workplace. The company reports on collective bargaining agreements in its operations but does not demonstrate that it supports collective bargaining in its supply chain. Moreover, CNH reports on some aspects of workforce diversity and gender equality, but there remains room for increased disclosure on these topics. No commitments on living wages and working hours were found.

In its code of conduct, CNH discloses its approach to lobbying and political engagement and specifies it does not make political contributions. The company’s lobbying expenditures are publicly disclosed. CNH also commits to personal data protection and discloses how this data is collected and shared. Moreover, the company prohibits bribery and corruption in its operations and supply chain and discloses processes used to identify related risks. While CNH has a publicly available global tax strategy, the company does not disclose income tax paid on a country-by-country basis.