5.1 Methodology [102-46, 102-48, 102-49, 102-50, 102-51, 102-52, 102-54]

CIE Automotive’s 2017 Integrated Report provides comprehensive information about the CIE Automotive Group’s financial and earnings performance and the automotive business‘s performance along environmental, social and environmental (ESG) dimensions over the course of the year.

The financial information provided encompasses the CIE Automotive Group’s activity in all of the countries in which it operates. However, this year the explanations focus on the automotive business, the Group’s core business, as its Smart Innovation subsidiary, Dominion, is a listed company which publishes its own annual report. As for the social and environmental dimensions (non-financial information), the scope of the report is limited to the automotive business, providing information for the 17 countries in which the Company operates.

The non-financial information, which is independently assured, is based on the GRI Guidelines published in 2016, an updated version of the G4 Guidelines; the ‘in-accordance’ option is ‘Core’.

The drafting of the report also took into consideration compliance with the principles established in AA1000 AccountAbility Principles Standard (2008).

For more information about the Group’s activities throughout the year, a number of other statutory reports are available for download on the corporate website: annual financial statements, Annual Corporate Governance Reports and Annual Reports on Board Remuneration, along with all of the presentations published about different aspects of the Group. Some of this information is included in the tabs targeted at specific stakeholder groups.

Information flows and departments involved

This annual report is the result of the work of the entire firm. Input and oversight was provided by all the heads of the various departments and areas comprising CIE Automotive.

The Compliance Department is ultimately responsible for its preparation and coordination, albeit ably assisted by the Cross-Group CSR Committee and the Management Corporate Control, Finance, Treasury and R&D Departments.

How the report was prepared

Before drawing up this report, CIE Automotive, with the help of an independent expert (Deloitte), conducted a materiality assessment, reaching out to its stakeholders to identify the matters they believe it is imperative the Company address.

Throughout the entire process of collecting and presenting its information, CIE Automotive bears in mind the principles of transparency, materiality, comparability, timeliness, clarity and reliability needed to assure the quality of the information reported. The review was undertaken by the independent consultancy firm PricewaterhouseCoopers, the same entity that audits the Group's financial statements. The Audit and Compliance Committee is the body tasked with ensuring the independence of the external reviewer.

The techniques used to measure and calculate the data provided, along with any estimates made, are explained in the corresponding tables or chapters of the report as necessary to facilitate reader comprehension.

5.2 Contact details [102-1,102-2, 102-3, 102-5, 102-20, 102-53]

Name CIE Automotive S.A.
Registered office Alameda Mazarredo, 69 – 8º, 48009 Bilbao (Bizkaia).
Telephone number Spain: +34 946 054 835
Website www.cieautomotive.com
Share capital €32,250,000
No. of shares 129,000,000
Par value €0.25/share
Business activity
  • Manufacture of automotive components, above all, and smart innovation (through its subsidiary, Dominion)
Markets The CIE Automotive Group is present in 41 countries and its shares are listed on the Bilbao, Madrid and Bombay stock exchanges.

Specific communication channels for each stakeholder group:

5.3 Sustainable Development Goals

As a member of the United Nations Global Compact, not only does CIE Automotive respect the UN’s 10 universal principles covering fundamental human and labour rights, environment conservation and the need to fight corruption and fraud, it has also pledged to contribute to sustainable development by upholding the 17 Sustainable Development Goals (SDGs) at the heart of the 2030 Agenda for Sustainable Development.

In this report, CIE Automotive provides an account of the progress made on seven of these SDGs: 2, 3, 4, 8, 9, 12 & 17

2. ZERO HUNGER
End hunger, achieve food security and improved nutrition, and promote sustainable agriculture.

3.8 Community

3. HEALTH AND WELL-BEING
Ensure healthy lives and promote well-being for all at all ages.

3.3.2 Health and safety

4. QUALITY EDUCATION
Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all.

3.8 Community

8. DECENT WORK AND ECONOMIC GROWTH
Promote sustained, inclusive and sustainable economic growth, full and productive employment, and decent work for all.

3.3 The team

9. INDUSTRIALISATION, INNOVATION AND INFRASTRUCTURE
Build resilient infrastructure, promote inclusive and sustainable industrialisation, and foster innovation.

3.5 Innovation and technology

12. RESPONSIBLE CONSUMPTION AND PRODUCTION
Ensure sustainable consumption and production patterns.

2.1 Identity and commitment
3.1 CSR management
3.7 Environmental management

17. PARTNERSHIPS TO DELIVER GOALS
Strengthen the means of implementation and revitalise the global partnership for sustainable development.

3.1 CSR management
3.5 Innovation and technology
3.8 Community

5.4 GRI Indicators [102-55]

Organizational profile

GRI Disclosure External assurance Section Page
GRI 102: General Disclosure 102-1 Name of the organization NO 5.2 Contact details 130
102-2 Activities, brands, products, and services NO 2.2.3 Multi-technology
3.5 Innovation and technology
5.2 Contact details
29
72
130
102-3 Location of headquarters NO 5.2 Contact details 130
102-4 Location of operations NO 2.2 Business model 24
102-5 Ownership and legal form NO 5.2 Contact details 130
102-6 Markets served NO 2.2 Business model 24
102-7 Scale of the organization NO 1.2.2 Earnings performance
1.2.3 Key non-financial indicators
9
15
102-8 Information on employees and other workers YES 1.2.3 Key non-financial indicators
3.3 The team
15, 16
53, 54
102-9 Supply chain NO 3.6 Supply chain 78
102-10 Significant changes to the organization and its supply chain NO 3.6 Supply chain 78
102-12 Iniciativas externas NO 3.1 CSR management 45
102-12 External initiatives NO 3.8 Community 97

Strategy

GRI Disclosure External assurance Section Page
GRI 102: General Disclosure 102-14 Statement from senior decision-maker NO 1.1 Chairman and CEO’s statement 4
102-15 Key impacts, risks, and opportunities NO 4.4 Risk management 121

Ethics and integrity

GRI Disclosure External assurance Section Page
GRI 102: General Disclosure 102-16 Values, principles, standards, and norms of behavior YES 2.1 Identity and commitment
4.3 Business ethics
21
119
102-17 Mechanisms for advice and concerns about ethics YES 2.4 Stakeholder engagement
4.3 Business ethics
38, 39
119

Governance

GRI Disclosure External assurance Section Page
GRI 102: General Disclosure 102-18 Governance structure YES 3.1 CSR Management
3.1.1 How CSR works at CIE Automotive and who is responsible for it
4.2 Corporate governance bodies
4.2.2 Board of Directors
45
47
106
107
102-19 Delegating authority NO 3.1.1 How CSR works at CIE Automotive and who is responsible for it 47
102-20 Executive-level responsibility for economic, environmental, and social topics NO 3.1.1 How CSR works at CIE Automotive and who is responsible for it
5.2 Contact details
47
130
102-21 Consulting stakeholders on economic, environmental, and social topics NO 2.4.1 Materiality assessment 40
102-22 Composition of the highest governance body and its committees NO 4.2 Corporate governance bodies 106
102-23 Chair of the highest governance body NO 4.2.2 Board of Directors 107
102-24 Nominating and selecting the highest governance body NO It is up to the shareholders to designate the members of the Board of Directors at the Annual General Meeting, although the Board does have the power to appoint directors by co-option in the event of vacancies.
The latter procedure is regulated in article 23 of the Board Regulations.
102-25 Conflicts of interest NO 4.2.2 Board of Directors
4.3 Business ethics
117
119
102-26 Role of highest governance body in setting purpose, values, and strategy NO 4.2.2 Board of Directors 107
102-27 Collective knowledge of highest governance body NO 4.2.2 Board of Directors
3.1.1. How CSR works at CIE Automotive and who is responsible for it
107
47
102-28 Evaluating the highest governance body’s performance NO 4.2.2 Board of Directors 117
102-29 Identifying and managing economic, environmental, and social impacts NO 4.4 Risk management 121
102-30 Effectiveness of risk management processes YES 4.4 Risk management 121
102-31 Review of economic, environmental, and social topics NO 2.4.1 Materiality assessment
3. Our commitments
40
45
102-32 Highest governance body’s role in sustainability reporting NO 3.1.1. How CSR works at CIE Automotive and who is responsible for it 47
102-33 Communicating critical concerns NO 4.3 Business ethics 119
102-34 Naturaleza y número total de preocupaciones éticas NO 4.3 Business ethics 119
102-35 Remuneration policies NO 4.2.2 Management Board 118

Stakeholder engagement

GRI Disclosure External assurance Section Page
GRI 102: General Disclosure 102-40 List of stakeholder groups NO 2.4 Stakeholder engagement 38
102-41 Collective bargaining agreements NO 3.3 The team 53
102-42 Identifying and selecting stakeholders NO 2.4 Stakeholder engagement 38
102-43 Approach to stakeholder engagement NO 2.4 Stakeholder engagement 38
102-44 Key topics and concerns raised NO 2.4.1 Materiality assessment 40

Reporting practice

GRI Disclosure External assurance Section Page
GRI 102: General Disclosure 102-45 Entities included in the consolidated financial statements NO Consolidated Annual Accounts 2017.
102-46 Defining report content and topic Boundaries NO 2.4.1 Materiality assessment
5.1 Methodology
40
129
102-47 List of material topics YES 2.4.1 Materiality assessment 40
102-48 Restatements of information NO 5.1 Methodology 129
102-49 Changes in reporting NO 5.1 Methodology 129
102-50 Reporting period NO 5.1 Methodology 129
102-51 Date of most recent report NO 5.1 Methodology 129
102-52 Reporting cycle NO 5.1 Methodology 129
102-53 Contact point for questions regarding the report NO 5.2 Contact details 130
102-54 Claims of reporting in accordance with the GRI Standards NO 5.1 Methodology 129
102-55 GRI content index NO 5.4 GRI indicators 133
102-56 Verificación externa NO 5.5 External assurance 141

Material Topics

GRI Disclosure External assurance Section Page
GRI 103: Management Approach 103-1 Explanation of the material topic and its Boundary NO 2.4.1 Materiality assessment
3.3 The team
3.3.2 Health and safety
3.6 Supply chain
3.6.2 Supply chain: labour and environmental considerations
3.7 Environmental management
3.8 Community
4. Corporate governance
4.3 Business ethics
40
53
62
78
85
87
97
103
119
103-2 The management approach and its components NO
103-3 Evaluation of the management approach NO

 ECONOMIC PERFORMANCE

GRI Disclosure External assurance Section Page
GRI 201: Economic Performance 201-1 Direct economic value generated and distributed NO 1.2.3 Key non-finantial indicators 15
GRI 202: Market Presence 202-1: Ratios of standard entry level wage by gender compared to local minimum wage YES 3.1 CSR Management
3.3 The team
45
53
GRI 203: Indirect Economic Impacts 203-1: Infrastructure investments and services supported NO 2.2.4 Investment discipline
3.6 Supply chain
29
78
203-2: Significant indirect economic impacts NO 3.8 Community 97
GRI 204: Procurement Practices 204-1: Proportion of spending on local suppliers YES 3.6 Supply chain 78
GRI 205: Anti-corruption 205-2: Communication and training about anti-corruption policies and procedures YES 3.1 CSR management
4.3 Business ethics
45
119
205-3: Confirmed incidents of corruption and actions taken YES 4.3 Business ethics 119

ENVIROMENTAL PERFORMANCE

GRI Disclosure External assurance Section Page
GRI 301: Materials 301-1: Materials used by weight or volume NO 3.7.1 Consumption of water and material resources 90
301-2: Recycled input materials used NO 3.7.1 Consumption of water and material resources 90
GRI 302: Energy 302-1: Energy consumption within the organization YES 3.7.3 Energy efficiency and emissions 92
302-3: Energy intensity NO 3.7.3 Energy efficiency and emissions 92
GRI 303: Water 303-1: Water withdrawal by source NO 3.7.1 Consumption of water and material resources 90
303-3: Water recycled and reused NO 3.7.1 Consumption of water and material resources 90
GRI 305: Emissions 305-1: Direct (Scope 1) GHG emissions NO 3.7.3 Energy efficiency and emissions 92
305-2: Energy indirect (Scope 2) GHG emissions NO 3.7.3 Energy efficiency and emissions 92
305-3: Other indirect (Scope 3) GHG emissions NO 3.7.3 Energy efficiency and emissions 92
305-4: GHG emissions intensity NO 3.7.3 Energy efficiency and emissions 92
305-5: Reduction of GHG emissions NO 3.7.3 Energy efficiency and emissions 92
GRI 306: Effluents and Waste 306-1: Water discharge by quality and destination NO 3.7.2 Waste, discharges and emissions management 92
306-2: Waste by type and disposal method NO 3.7.2 Waste, discharges and emissions management 92
306-3: Significant spills NO 3.7.2 Waste, discharges and emissions management 92
306-4: Transport of hazardous waste NO 3.7.2 Waste, discharges and emissions management 92
GRI 307: Environmental Compliance 307-1: Non-compliance with environmental laws and regulations YES 3.7 Environmental management
4.1 Corporate governance model
87
104
GRI 308: Supplier Environmental Assessment 308-1: New suppliers that were screened using environmental criteria YES 3.6.2 Supply chain: labour and environmental considerations 85

SOCIAL PERFORMANCE

GRI Disclosure External assurance Section Page
GRI 401: Employment 401-1: New employee hires and employee turnover YES 3.3 The team 53, 54
401-2: Benefits provided to full-time employees that are not provided to temporary or part-time employees NO No benefits are provided to full-time employees that are not provided to temporary or part-time employees.
401-3: Parental leave NO 3.3 The team 55
GRI 403: Occupational Health and Safety 403-1: Workers representation in formal joint management–worker health and safety committees NO 3.3 The team 58
403-2: Types of injury and rates of injury, occupational diseases, lost days, and absenteeism, and number of work-related fatalities YES 1.2.3 Key non-financial indicators
3.3 The team
3.3.2 Health and safety
15, 16
55
62, 63
403-4: Health and safety topics covered in formal agreements with trade unions NO 3.3 The team 57
GRI 404: Training and Education 404-1: Average hours of training per year per employee YES 3.3.1 Career development 59, 61
404-2: Programs for upgrading employee skills and transition assistance programs YES 3.3.1 Career development 59, 61
404-3: Workers with high incidence or high risk of diseases related to their occupation NO 3.3.1 Career development 61
GRI 405: Diversity and Equal Opportunity 405-1: Diversity of governance bodies and employees NO 4.2.2 Board of Directors 109
405-2: Ratio of basic salary and remuneration of women to men NO 3.3 The team 55
GRI 406: Non-discrimination 406-1: Incidents of discrimination and corrective actions taken NO 4.3 Business ethics 119
GRI 408: Child Labor 408-1: Operations and suppliers at significant risk for incidents of child labor NO 3.3 The team 57
GRI 409: Forced or Compulsory Labor 409-1: Operations and suppliers at significant risk for incidents of forced or compulsory labor NO 3.3 The team 57
GRI 412: Human Rights Assessment 412-1: Operations that have been subject to human rights reviews or impact assessments YES 3.3 The team 53, 57
412-2: Employee training on human rights policies or procedures YES 3.1 CSR Management
3.3 The team
45
59
GRI 413: Local Communities 413-1: Operations with local community engagement, impact assessments, and development programs NO 3.8 Community 97
GRI 414: Supplier Social Assessment 414-1: New suppliers that were screened using social criteria YES 3.6.2 Supply chain: labour and environmental considerations 85
GRI 415: Public Policy 415-1: Political contributions NO 3.8 Community 101
GRI 419: Socioeconomic Compliance 419-1: Non-compliance with laws and regulations in the social and economic area YES 4.1 Corporate governance model 104

5.5 External assurance of the report [102-56]