Responsible Purchasing Practices
The Stellantis governance model reflects our commitment to a culture dedicated to 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 particular 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.
Our global supplier network makes a major contribution to value creation, quality and innovation and has a significant impact on our CSR performance and our responsible development.
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 the Global Responsible Purchasing Guidelines, the selection of our suppliers is based on the competitiveness of their products and services, on their adherence to social, ethical and environmental principles, maintaining the highest standards of quality and taking care of 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 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 our Code of Conduct compliance and the 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 relevant role improving their own operations to reduce their environmental footprint while also providing innovative proposals to reduce the greenhouse gas emissions of the entire vehicle lifecycle, for example proposing green materials or other solutions to support our goals.
Supplier localization is also an important strategy. Having suppliers closer to Stellantis manufacturing locations supports the local community and reduces the risk of supply disruption. This strategy has major financial implications as it reduces inbound logistic costs, limits customs duties and reduces exposure to exchange rate fluctuations that affect production costs, margins and sales volumes.
Reduction of long-distance shipping also benefits the environment notably by reducing CO2 emissions. In addition, the local sourcing allows the Company to understand the expectations of stakeholders, helping to find technological solutions related to the context and constraints within the specific area. Taking advantage of operational proximity with our partners means helping them to make technological, logistical, social and environmental progress and benefit from greater flexibility in the supply chain.
The Supplier social and environmental performance is regularly assessed by a third party. We require suppliers to be reassessed each year to continuously improve their CSR performance. This assessment is also used for the risk identification and for the selection of sites to be audited. In the event of non-compliance with our principles, we might require the implementation of action plans, follow-ups and we reserve the right to early terminate the business relationship.
The products or goods bought from our suppliers must respect applicable legislations or regulations in the production countries as well as in the markets where the product is sold or used. For example, they have to respect laws and regulations that require traceability of substances of concern for the protection of health or the environment.
Stellantis’ policy is to establish transparency with suppliers on 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” and cobalt.
At Stellantis we actively practice due diligence to comply with social standards throughout the supply chain and more specifically on risks connected with new low-emission mobility (electric and hybrid vehicles). We choose external partners to execute our projects on raw material transparency. We have joined global initiatives as we deeply believe that 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 of these organizations are recognized providers that conduct onsite audits throughout the supply chain including Tier 1 suppliers as well as mine 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.