World class manufacturing processes

The World Class Manufacturing (WCM) program was first adopted about 10 years ago and has been implemented at nearly all FCA plants worldwide. WCM represents the concrete application of our model of environmental sustainability and, in particular, our efforts to reduce the impacts of our production processes. WCM is a rigorous manufacturing methodology that involves the entire organization and encompasses all phases of production and distribution. In 2014, approximately 48,000 WCM-related projects were implemented, including several specifically targeted at reducing environmental impacts. Through the Environment Pillar, in particular, specific tools and methodologies are developed to reduce waste and optimize the use of natural resources. Approximately 3,700 projects based on this pillar led to reductions in natural resources consumption.

The Group has also developed an Environmental Management System (EMS), aligned with ISO 14001 standards, which has been implemented worldwide. The EMS consists of a system of methodologies and processes designed to prevent or reduce the environmental impact of the Group’s manufacturing activities through, for example, reductions in emissions, water consumption and waste generation and conservation of energy and raw materials. At year-end 2014, 100% of FCA plants included in the 2012 scope of reporting were ISO 14001 certified.

Energy Consumption and Emissions

In response to increasingly stringent environmental regulations, the Group is continuously researching solutions that will enable further reductions in greenhouse gas emissions and the use of fossil fuels. Over time, this has also generated significant savings in energy-related costs.

In 2014, approximately 2,700 energy-related projects developed under WCM contributed to a reduction of approximately 3,300 terajoules in energy used, with a corresponding reduction of around 290,000 tons in CO2 emissions.

As a result of the success of these energy-related initiatives, energy consumption remained in line with the prior year - despite a year-over-year increase in production volumes - and was well below the 2010 level in both absolute terms and on a per vehicle produced basis.

Direct and indirect energy consumption (terajoules)201420132012
Total energy consumption 48,645 48,322 45,692

Total CO2 emissions from manufacturing processes also remained stable compared with 2013, but well below the 2010 level also on both a total and per vehicle produced basis.

FCA uses CO2 emissions per vehicle produced as the primary indicator of its energy performance and, for 2020, is targeting a 32% reduction compared with 2010.

Total CO2 emissions (thousands of tons of CO2)201420132012
Total CO2 emissions 4,283 4,178 3,965

In 2014, 20.4% of electricity used at FCA plants was from renewable sources.

Water Management

In many parts of the world, water scarcity is one of the greatest challenges faced by governments, businesses and individuals.

To protect this essential natural resource, the Group has adopted Water Management Guidelines that establish criteria for sustainable management of the entire water cycle, including technologies and procedures to maximize recycling and reuse of water and minimize the level of pollutants in discharged water.

In 2014, the level of water reuse in the manufacturing cycle at FCA plants worldwide was 99.3%, representing a total of about 3.3 billion m3 in water savings.

As a result, total water consumption (withdrawal) was reduced by 1.1% versus 2013 (generating savings of approximately €2.4 million) and 27.9% versus 2010. For 2020, FCA is targeting a 40% reduction in water consumed per vehicle produced compared with 2010.

Water withdrawal (thousands of m3)201420132012
Total water withdrawal 24,653 24,936 25,874