Responsible Purchasing Practices

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.

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 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.

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.

As a Company fully committed to development of safe and sustainable activity, Stellantis asks its suppliers to also consider substances subject to restriction by draft regulations as well as any requirements to address their substitution with viable alternatives. Stellantis has already set up dedicated action plans to address European Universal REACH PFAS restriction proposals and European Taxonomy regulation on targeted new vehicle programs.

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.

Stellantis uses a risk assessment process to help identify suppliers that require on-site audits, supporting more focused oversight within our supply chain.

In alignment with our commitment to due diligence, we collaborate with SLR Consulting – an established independent third-party auditor – to carry out on-site audits throughout the EV battery supply chain, from Tier 1 suppliers to mining operations. These audits address ESG risks and verification of material traceability. When appropriate, corrective action plans are developed by the supplier, with the support of SLR Consulting, and implementation is monitored by Stellantis.

In addition, Stellantis participates in two leading industry initiatives: the Responsible Minerals Initiative (RMI) and the Initiative for Responsible Mining Assurance (IRMA). This enables us to support responsible sourcing and ethical practices across the supply chain, from battery suppliers to mining operations, and to promote the adoption of these industry standards at smelters, refiners, and mining sites.