image hero Responsible Purchasing Practices image hero Responsible Purchasing Practices

Responsible Purchasing Practices

The Stellantis governance model reflects our commitment to a culture of integrity, responsibility and ethical behavior in all areas of our activity and along the entire value chain.

Managing the complexity of multi-tier supply chains presents challenges for all major industries, including the automotive sector.

Technology is driving change as vehicles are becoming more connected, electrified, autonomous and shared. The vehicle design cycle is more stringent, technologies are adopted more quickly, and automakers are collaborating with suppliers more than ever before.

PERFORMANCE

Our global supplier network makes a major contribution to value creation, quality and innovation and has a significant impact on our responsible development and CSR performance.

We encourage the adoption and sharing of sustainable practices among our suppliers and we are committed to responsible practices in our procurement activity.

As described in our Global Responsible Purchasing Guidelines, suppliers are selected based on the competitiveness of their products and services, on their adherence to social, ethical and environmental principles, and maintaining the highest standards of quality and care for the communities in which we do business.

HUMAN RIGHTS AND CLIMATE COMMITMENT

The preservation of human rights requires respect for ethical rules by everyone. Building and maintaining strong, responsible supply chains is an important focus for us. This approach helps develop opportunities within the supplier organizations, while minimizing risk and potential reputational damage to Stellantis. We monitor compliance with our Code of Conduct and respect for human rights by our partners, requiring contractual commitments and ongoing evaluations.

We act in compliance with social, environmental and ethical principles such as those identified in the ILO Conventions, the OECD Guiding Principles, the 2030 UN Sustainable Development Goals (SDGs) and the UN Global Compact, among others.

Stellantis expects suppliers to respect human rights in all countries in which they operate, including in geographical areas where human rights may not yet be sufficiently protected.

We are also committed to contributing to a decarbonized economy in line with the Paris Agreement. On our road to carbon neutrality, we expect suppliers to play a role by improving their own operations to reduce their environmental footprint, while also proposing innovative solutions to reduce the greenhouse gas emissions of the entire vehicle lifecycle.

SUPPLIER LOCALIZATION

Supplier localization is also an important aspect of our strategy. Having suppliers close to Stellantis manufacturing locations supports the local community and reduces the risk of supply disruption. This also has major financial implications as it can reduce inbound logistics costs, limit customs duties and reduce exposure to exchange rate fluctuations that affect production costs, margins and sales volumes.

Reduction of long-distance shipping also benefits the environment by reducing CO2 emissions. In addition, local sourcing enables the Company to better understand the expectations of stakeholders, helping to find technological solutions specific to the context and constraints of the local area. Operational proximity with our partners means helping them make technological, logistical, social and environmental progress and provides greater flexibility in the supply chain.

DUE DILIGENCE

Supplier social and environmental performance is regularly assessed by a third party. We require suppliers to be reassessed each year to ensure continuous improvement in their CSR performance. This assessment is also used for risk identification and selection of sites to be audited. In the event of non-compliance with our principles, we might require implementation of action plans and follow-ups and reserve the right to early termination of the business relationship.

Products or goods bought from our suppliers must respect legislation or regulations applicable in the country where they are produced and in markets where they are sold or used. This includes, for example, laws and regulations that require traceability of substances of concern for protection of health or the environment.

Stellantis’ policy is to establish transparency with suppliers relative to the origin of minerals used, in particular from conflict affected and high-risk areas (CAHRA), including but not limited to tungsten, tantalum, tin and gold (known as “3TG”) as well as cobalt.

We actively conduct due diligence throughout the supply chain to monitor compliance with social standards and, in particular, risks connected with new low-emission mobility (electric and hybrid vehicles). We work with external partners to execute our projects on raw material transparency. We have joined several key global initiatives as we believe deeply that the combined efforts of all members of the ecosystem are required to support the implementation of best responsible purchasing practices in complex supply chains. For example, we have partnered with RCS Global and are an active member of the Responsible Minerals Initiative (RMI). Both organizations are recognized providers that conduct onsite audits throughout the supply chain including Tier 1 suppliers and mining sites.

In the following document, we have mapped and audited the refiners in the supply chain for our high-voltage battery suppliers.

For additional information, refer to the Stellantis CSR Report.