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Fiat Chrysler Automobiles: A Sustainability Leader

Fiat Chrysler Automobiles: A Sustainability Leader

Sustainability is based on the simple principle that everything humans depend on for our survival and well-being depends in some way upon the natural environment. Sustainable development, in general terms, refers to development that meets the needs of the present, without compromising the ability of future generations to meet their own needs. When considering this concept, the automotive industry is not usually the first thing that comes to mind. We don’t like to admit it, but the automotive industry has a poor track record when it comes to environmental performance. Thankfully that has begun to change. Many companies in the automobile industry have begun to make movements towards sustainability, most notably Fiat Chrysler.
 
Fiat Chrysler has been included in the prestigious Dow Jones Sustainability Index (DSJI) World Index. The DSJI World Index comprises a range of indices that evaluate the sustainability performance of some of the world’s largest companies. The Index is based on an analysis of corporate economic, environmental and social performance. It address various issues including corporate governance, environmental risk management, climate change mitigation, supply chain standards and labor practices. Companies that are part of the Index are evaluated based on their long term economic, social and environmental management plans. Companies must continually improve their plans and processes in order to remain on the Index, which is updated on a yearly basis.
 
While most companies in the automotive industry average a score of 60/100, FCA received a score of 88/100. This means that Chrysler is among the world’s leading companies in economic, environmental, and social performance – no small feat! The company was awarded the highest score in the automotive sector for innovation management, climate change strategy, occupational health and safety, labor practices, human rights and stakeholder engagement. Chrysler’s 2014 efforts demonstrated the company’s competency as a global automaker that not only competes with the very best, but that also does it in a responsible manner that puts people, communities, and the environment at the core of is business endeavors.
 
Chrysler has undertaken (and continues to undertake) many steps in order to ensure environmental, social, and economic sustainability for years to come, which can be understood in more detail by taking a look at the company’s 2014 Sustainability Plan. Some highlights of the Sustainability Plan include a commitment to a robust and ethical corporate culture, a multifaceted engagement strategy that takes all stakeholders’ interests into account, and a deep commitment to continually improving products and processes to ensure minimal environmental impact.
 
The corporate culture that guides the company consists of a strong corporate governance system that monitors and measures the environmental, economic and social aspects of the company’s performance. Chrysler’s corporate governance processes allow it to manage its business ethically, transparently and responsibility to create value for all its stakeholders. The company is strongly committed to integrity and ethics, delivering a robust code of conduct that governs business operations with a strong focus on employee behaviors. Chrysler’s Enterprise Risk Management model mandates transparency and disclosure of business ricks, with a wide-ranging risk management system that monitors and manages conditions that could negative impact the company, the environment, and the communities in which it operates. Without its employees, this could not happen and so Chrysler is committed to fostering a respectful and inclusive environment for its employees that allows them to develop both their individual and the company’s potential.
 
Chrysler is dedicated to engaging stakeholders from all levels in its business operations. Sustainability-focused Dialogues encourage stakeholders to share their perspectives on Chrysler’s economic, environmental and social impacts. Chrysler’s development of mutually beneficial supplier relationships ensures that sustainability criteria is incorporated in supplier selection, management, training and engagement. The company works closely with its dealer and service network to provide training opportunities, and increase their awareness of sustainability issues. Last but not least, Chrysler is committed to improving the communities in which it operates and works with by promoting local growth opportunities.
 
When it comes to the environment, Chrysler displays a strong dedication to innovation, a commitment to measuring the environmental performance of its operations, and a commitment to minimize the emissions associated with its logistics flows. The company is dedicated to environmentally responsible vehicle development, with a strong focus on building efficient powertrains, improving vehicle aerodynamics, reducing vehicular weight, using more renewable materials, and promoting eco-friendly driving to consumers. Chrysler strives to reduce the environmental impacts associated with its manufacturing processes by lowering CO2 emissions, reducing water consumption and minimizing waste generation. The logistical processes employed by the company include the use of low-emissions vehicles to transport supplies and vehicles, optimizing logistics flows to minimize unnecessary emissions, as well as using expendable packaging.
 
The initiatives described above have solidified Chrysler’s position as one of the world’s most sustainable automotive manufacturers. By continuing to undertake such initiatives, Chrysler will be a key player in the realm of sustainable development, thereby ensuring strong environmental and social systems for years to come. We at Bustard Chrysler are proud to be a part of that journey.
 
References
http://media.fcanorthamerica.com/newsrelease.do;jsessionid=F0567613398248E4BCA081CEB9A84BF4?&id=16987&mid
http://www.sustainability-indices.com
http://2014sustainabilityreport.fcagroup.com

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