SDGs related with this chapter
12. RESPONSIBLE CONSUMPTION AND PRODUCTION
Ensure sustainable consumption and production patterns
17. PARTNERSHIPS TO DELIVER GOALS
Strengthen the means of implementation and revitalise the global partnership for sustainable development.
CIE Automotive builds CSR principles into its business model and strategy with the aim of creating value for all its stakeholders and for society at large, as set down in its CSR Policy, approved in December 2015, which applies to all of the entities comprising CIE Automotive.
CIE Automotive has been a member of the United Nations Global Compact since October 2015, thus publicly pledging to respect its 10 universal principles in the areas of human and labour rights, environmental conservation and the effort to combat corruption and fraud. Its membership of the Global Compact is also a commitment to act as an agent of development, generating positive impacts on society as a whole based on compliance with the 17 Sustainable Development Goals (SDGs) (refer to section 5.3).
The continued pursuit of other lines of initiative in the process of implementation related to integrating ESG criteria into the Group's growth, employee training, risk identification and management efficiency processes, among others.
To demonstrate the importance the Group assigns to CSR, in October 2017 it held its first Corporate Social Responsibility Day, providing updates on the progress being made in this arena and what its stakeholders are looking for. The event, which was inaugurated by the Company’s CEO, Jesús Mª Herrera, was attended by division heads and the European factory managers, as well as the members of the CSR Cross-Group Committee.
In addition to analysing and sharing the improvements and action plans to be tackled, the event was used to underline the importance of three imperatives:
CSR is held in the highest regard at CIE Automotive. It is supervised by the Corporate Social Responsibility Committee, which delegates oversight of execution of the key lines of initiative in the Cross-Group CSR Committee.
CSR is included within what CIE deems its second line of defence (refer to section 4.4.2 Internal control systems).
The latter committee is made up of eight professionals from a range of areas.
“CIE Automotive’s commitment to responsible management has been reinforced by a host of internal CSR rules and policies.”
|Javier Álvarez||Human Resources|
|Lorea Aristizabal||Business Development|
|Gonzalo Ceberio||Quality & Environmental Management|
|Iker Hernández||Internal Control and Risk Management|
|Angel Zalduegui||Internal Audit|
|Susana Molinuevo||CSR & Compliance|
|Irache Pardo||Supply chain|
CIE Automotive’s commitment to responsible management has been reinforced by a host of internal CSR rules and policies, all of which are the responsibility of the Board of Directors. Those policies are publicly available on the corporate website.
Effective application of the CSR policy and the potential risks associated with it are framed by the Risk Management and Control Policy, which uses the ISO 31000 methodology.
CIE Automotive has established Group-wide CSR indicators to measure its performance in various ESG areas: supply chain, HR, environmental management and community work. All of this information is compiled using interactive surveys enabled by the SAP Process Control tool.
CIE Automotive’s strategy is focused on satisfying its customers: vehicle OEMs and Tier 1 parts makers. To meet their needs, it comes up with highly value-added and innovative solutions which it adds to and upgrades every year thanks to investments in its manufacturing facilities, continual adaptation for the most stringent quality standards and close collaboration with its customers.
At CIE Automotive customer satisfaction means not only meeting its customers’ needs but also exceeding them. This concept is embedded into everything it does, from when it designs a product until that product is delivered to the end customer. It is represented in the process map, which puts the customer at the beginning and end of all of its activities. This pledge is also embodied in the Health, Safety, Environmental and Quality (HSEQ) Policy, which stipulates that the Group locate its operations where its customers need it, provide its customers with what they need when they need it and create added value for them in everything it does. Should it deviate in any way, CIE Automotive reacts swiftly to minimise any potential fallout.
The concept of Total Quality Management (TQM) as an organisational management approach has been fully embraced by the automotive industry in general and by CIE Automotive in particular. Since first adopted, the TQM model has been fine-tuned by means of definition of its mission, vision and values, stakeholders, process map and scorecard. The core tenets of prevention, training, automatic revision and continuous improvement are put into practice in all of the Group’s activities.
CIE Automotive’s TQM model was revised for the seventh time in 2017. This last revision focused on integrating ESG criteria, a process that far from contradicting the definition of total quality enhances it by engaging key stakeholders.
In addition, over the course of the year CIE Automotive continued to work towards its goal of achieving triple certification (quality management: ISO/TS 16949; environmental management: ISO 14001; and health and safety: OHSAS 18001) at all its factories. For those factories not yet certified there is a plan for obtaining certification during the next three years.
Whereas 2017 was the year of model rollout (refer to chapter 2.1), in 2018 CIE Automotive is faced by two new and more demanding standards:
There is also a third challenge on the horizon in 2018: the new ISO 45000, which will replace the current OHSAS 18001.
Tackling these challenges will generate important feedback from different countries, cultures and approaches that will help the Company to do better.
As a result of all of these initiatives, the automotive business sustained revenue growth of 27.1% to €2.88 billion and received a host of prizes and accolades from its customers.
One of the qualities CIE Automotive articulates its credibility around is its respect for confidentiality. To this end, it fosters the responsible use of sensitive information to ensure customer confidentiality at both the corporate and individual division levels.
SDGs related with this chapter
8. DECENT WORK AND ECONOMIC GROWTH
Promote sustained, inclusive and sustainable economic growth, full and productive employment, and decent work for all.
3. HEALTH AND WELL-BEING
Ensure healthy lives and promote well-being for all at all ages.
The more than 23,000 employees comprising the automotive business’s global multicultural team are a strategic asset. Their dedication and talent contribute to the Group’s growth and profitability.
Management of its human resources is therefore a Group priority as is set down in the Global Resources Plan and the commitments assumed in CIE Automotive’s human rights policy: the provision of decent work; the prevention of discrimination; zero tolerance of compulsory and child labour; the facilitation of collective bargaining and the freedom of association; promotion of a culture of respect; and protection of individual health.
These commitments are aligned with the universal labour principles acknowledged in the United Nations Global Compact which CIE Automotive endorsed in 2015.
|No. of employees
|Fixed/indefinite contracts %||80%||78%|
|Female employees %||14%||16%|
|Female hires %||18%||18%|
|Employees with some form of disability %||1.5%||1.5%|
|Employees covered by collective bargaining agreements %||63%||63%|
(*) CIE Maroc (Morocco) included.
SDGS RELATED WITH THIS CHAPTER
8. DECENT WORK AND ECONOMIC GROWTH
Promote sustained, inclusive and sustainable economic growth,full and productive employment, and decent work for all.
CIE’s automotive business employed 22,899 people across all five continents at year-end 2017, 1,973 more than at the end of 2016.
The growth in employment is attributable to the acquisition of Newcor (29%, or 571 employees) but, above all, to organic growth (71%, or 1,402 employees), which was particularly significant in Mexico and Brazil: these markets added 1,143 employees, 82% of organic headcount growth.
The general characteristics of the jobs provided by CIE Automotive in the automotive parts business at year-end 2017:
Some 8,875 people joined CIE Automotive in 2017 and 4,846 left the company of their own free will. The new hires were concentrated in the Americas (4,827) and Asia (3,126), while Europe was home to 922 new hires. Elsewhere, the voluntary departures took place mainly in Asia (2,684 people) and the Americas (1,764), while 398 people left CIE Automotive in Europe.
Of total new hires, 1,590 (18%) were women and of all voluntary departures, 610 (13%) were women. The profile of women in respect of the Group’s new hires and turnover improved in quantitative terms compared to 2016, evidencing CIE Automotive’s commitment to gradually increasing the percentage of women in its headcount. Indeed this percentage increased by 2pp in 2016.
All employees earn a fixed salary, in keeping the nature of the work they do as well as their performance; performance at the factory level and by CIE Automotive as a whole is also taken into consideration.
52% of the employees, 11,972 people, were party to formal annual performance evaluations in 2017 and 32%, or 7,234 employees, also received a bonus for meeting their targets, doing their jobs excellently or lifting their performances.
78% of the headcount (around 18,000 people) enjoyed indefinite job contracts at 31 December 2017. Europe tops the ranking with 86% of its staff on indefinite contracts, while the other regions average 76%.
Absenteeism amounted to 5% in 2017. In addition, 278 men and 131 women availed of paternity/maternity leaves, included in the absenteeism. CIE Automotive uses the most prudent version of this concept, considering absenteeism any absence from work, such as those derived from work or common accidents, long-term sick leave or maternity and paternity leave, with the exception of holidays. CIE Automotive upholds the minimum legal requirements in all of its factories and in several of its facilities it offers its employees more time off than is stipulated in applicable local legislation.
CIE Automotive prioritises the quality of the jobs it provides. To that end, it goes beyond providing good working conditions, decent wages and job stability and attempts to help make sure that the everyday lives of its employees and their families is as simple as possible and that membership of CIE Automotive constitutes a source of pride for them.
CIE Automotive analyses the circumstances of the people working at the factories it acquires, improving them as necessary, in terms of both gender wage equality and compliance with the minimum wage requirements applicable to each factory, industry or country. Accordingly, it analysed the situation at Newcor, acquired in 2017. At that company at the end of 2017, the ratio of pay of women to men was 1 in the lowest wage brackets (this means that the lowest-earning man earns the same as the lowest-earning woman) and 1.4 in the higher wage brackets, although the levels of responsibility compared are different. Note also that the lowest salary at Newcor is significantly above the minimum wage: 1.32 at Rochester Gear Inc. and 1.34 at Machine Tool & Gear.
CIE Automotive’s decentralised management model is a plus as the factories are 90% run by local managers, who are free to take their own decisions, facilitating adaptation for the specific needs of each region.
“In 2017, CIE Automotive invested more than €20 million in professional support measures.”
These measures can be classified into four major groups:
€11 million was earmarked to medical and accident insurance, in-house medical and/or nursing services and other activities related with the health of the Group’s employees and their families, notable among which:
€5.5 million earmarked to services such as:
€3.5 million. For example:
€1 million earmarked to services related with the education of employee relatives and other services. By way of example:
CIE Automotive offers its employees a work environment free of bias on the grounds of gender, race, religion, age, sexual orientation, nationality, civil status or socio-economic background.
Its labour relations are governed by the legislation prevailing in each of the countries it operates in, so that it attempts to adapt to each region’s practices and customs. This commitment to diversity and equal opportunities is evident in the fact that 90% of the Group’s factories are run by local managers.
Although the fact that automotive factories have traditionally been male denominated and the difficulty in hiring women in some markets means that 84% of its workforce is male, CIE Automotive is working actively to address this situation, increasing the percentage of female hires. In 2017, female representation increased by two percentage points, from 14% to 16%.
CIE Autmotive takes a zero-tolerance stance on child and forced labour. Against this backdrop, it has pledged to uphold labour legislation in its operating markets and to take corrective action to ensure it is enforced.
Every year, CIE Automotive conducts an in-house survey to identify factories at risk of being affected by these scourges and take opportune measures as required. 90% of its factories have already responded satisfactorily. As for the rest of the factories from which the completed survey had yet to be received at the reporting date, CIE Automotive is certain that none of its plants is involved in these practices, as all of the factory managers and HR managers in the automotive business worldwide have endorsed CIE Automotive’s Human Rights Policy, thereby undertaking to respect and enforce it.
Regardless of the country it operates in, and in keeping with the commitments assumed under the scope of the United Nations Global Compact, CIE Automotive stringently respects its employees’ right to unionise and to bargain collectively. It engages openly with its employees’ representatives not only in its European plants but also in less unionised countries such as China and India.
At year-end 2017, 63% (14,344 employees) of its workforce was directly covered by a collective bargaining agreement either at the plant, sector or regional level and the number of employee representatives in the automotive business totalled 383. All collective bargaining agreements include specific references to occupational health and safety matters; indeed they constitute one of their most important areas.
In 2017, company and/or sector agreements were executed at 36 workplaces in the following countries: France, Spain, Romania, Brazil, Mexico, the Czech Republic, India, Germany and China. The collective agreements signed in 2017 directly cover 7,789 employees.
It is important to note that if CIE Automotive is inescapably obliged to restructure its workforce, it complies scrupulously with the law and in many instances provides better terms than those imposed under local legislation.
|Employees covered by collective bargaining agreements||Total headcount||Coverage, %||Worker representatives by country|
Employee relations are based on transparency and respect for individuals, to which end CIE Automotive has created specific channels for engaging with its employees, most importantly its scorecards and intranet, where employees can find all sorts of corporate information.
CIE Automotive also conducts a workplace climate survey at every factory every two years. In 2017, the Company updated the survey used to simplify it and make it a better tool for taking decisions on the basis of its employees’ responses and for preventing potential instances of harassment or disrespect. The survey now consists of 56 questions divided into five blocks: assessment of the Company; feedback about the organisational model; opinion about relations with the Company; opinion about the work performed; and a general assessment of satisfaction as an employee.
In 2017, CIE Automotive conducted the survey at 32 Group factories, scoring 7.05 out of 10 on average, with all the factories where the survey was carried out delivering a score of over 5. However, at all centres the results of the survey point to areas in which the Company needs to improve on its path towards excellence and action plans have been designed as a result.
Among the initiatives carried out to improve the workplace climate in 2017, the contributions made to various employee sports competitions and the numerous events organised to mark certain special dates (Father’s Day, Mother’s Day, Christmas, etc.) stand out.
CIE Automotive believes it is crucial to attract and retain the most talented individuals by offering them an environment in which to develop their professional skills, without neglecting work-life balance. To create such an environment, it has an HR management model under which it establishes employee skill profiles, evaluates executive, middle management and skilled workers’ job performance, identifies areas for improvement and designs career development and training programmes, the latter by means of a dedicated Professional Development Programme.
In 2017, 11,972 employees (52% of the headcount) were evaluated in respect of seven skill-sets: results orientation, customer relations, proactive attitude, innovation, teamwork, decision-making, flexibility and leadership.
Employees undergo an annual assessment with their immediate superiors to analyse theirs and the Group’s performance during the prior 12 months and to get feedback regarding their expectations for the near and longer term. Whenever skill gaps are detected, the employee in question is included in a specific training programme.
The ability to attract top talent is critical to putting the Company’s innovation and continuous improvement policies into practice. As demonstrated by the materiality assessment conducted recently, CIE Automotive views talent management as one of the areas of greatest importance to guaranteeing the Group’s excellence and sustainability. To this end, it ran a series of recruitment programmes throughout the year designed to attract young graduates keen to work in a multinational environment, collaborating specifically with Deusto University (Spain) and the Polytechnic University of Guanajuato (Mexico), on the one hand, and with the Technology Centres of Tlanepantla, Celaya and Saltillo (Mexico), on the other.
In 2017, the first graduates of the Company’s career development programme known as Reversed Ulysses began to work in its Spanish factories, specifically in its metal, machining and plastics technologies. This programme is populated by new graduates from CIE Automotive’s business markets: these graduates are trained in its legacy Spanish factories for one year and are then offered a job in their home markets with four objectives in mind:
During the year, in light of the CIE Automotive’s growth expectations, the Reversed Ulysses programme was structured for 2018, when it will seek to attract young graduates from the state of Guanajuato to the various divisions’ factories in Spain’s Basque region.
CIE Automotive is also one of the companies collaborating on the first edition of the Bizkaia BBK scholarship programme being championed by the regional authorities and the BBK Foundation. What’s novel about this programme is the fact that the scholarships combine training in excellence at foreign universities with a job contract at a cutting-edge company.
This scholarship programme evidences the regional authority’s commitment to youth, training in excellence and quality work. It is aimed at supporting sectors considered strategic to the economy.
In this manner, CIE Automotive guarantees itself an annual intake of young engineers who, in addition to the degrees obtained in their home markets, receive training in excellence at one of the world’s most prestigious universities (CIE Automotive is twinned with RTWH Aachen), learning they will then put into practice at the Group, thus creating an important source of competitive advantage.
The Group’s training effort is articulated around developing the skills needed for effective on-the-job delivery of CIE Automotive’s strategic objectives. With this goal in mind, some 610,658 training hours were provided to 19,513 employees (85% of the workforce) in 2017, which is equivalent to 31.3 training hours per employee.
These figures evidence CIE Automotive’s commitment to training, as does the 20% increase in the number of training hours imparted and the 3,000 additional individuals receiving training (so that the total number of employees receiving training increased by 5%).
The decentralised management approach is good for the training effort as decisions are taken with a focus on operational needs so that training courses are oriented towards improving job efficiency and performance.
In 2017, CIE Automotive provided over 6,000 hours of human rights training and education at 27 factories worldwide (38% of the total employees), in line with CIE Automotive’s 2015-2018 CSR Plan and its Human Rights Policy.
In addition, at the corporate level a non-binding proposal is presented to the CIE Automotive factories itemising all of the training initiatives to be undertaken in the year ahead, including sessions aimed at providing advanced management and interpersonal skills for individuals with certain abilities and/or potential:
SDGS RELATED WITH THIS CHAPTER
3. HEALTH AND WELL-BEING
Ensure healthy lives and promote well-being for all at all ages.
CIE Automotive is committed to the health, safety and well-being of its employees, its zero accident objective being a top priority. To this end it observes more stringent standards than are required under local legislation, provides safety training to employees in keeping with the work conducted at their places of work, establishes preventative measures and controls the effectiveness of the improvements introduced by means of internal audits.
In 2017, the Company rolled out its 2020 Health & Safety Strategic Plan, articulated around the following lines of initiative.
Continuous improvement in the indicators that track workplace accidents (volume, frequency and severity rates).
Implementation of a self-assessment questionnaire at all factories. The target score is 85% and the results will trigger the mandatory implementation of specific measures in their annual safety plans in order to improve their scores going forward.
The target – an ambitious one – is to have all of CIE Automotive’s factories OHSAS certified by 2020 (+5% in 2017).
The workplace safety management system is based on the OHSAS 18001 standard, which is audited regularly by Bureau Veritas. At 31 December 2017, 47 CIE Automotive factories were OHSAS 18001-certified.
Over the course of 2017, CIE Automotive focused strategically on reducing its accident rates and improving its indicators with encouraging results. Looking to 2018-2020, CIE Automotive will focus more decisively on the staggered obtention of OHSAS 18001/2007 certification, albeit without neglecting the need to continuously improve on the other points.
Organisationally, CIE Automotive has an outside safety service that covers the four legally-stipulated areas of accident prevention expertise and a safety officer at each of its facilities.
This effort is shored up by a corporate safety department which regularly audits the factories, maintains the corporate intranet and serves as contact point for issues related with occupational health and safety.
At the factory level, the safety staff inspect the adequacy of the Company’s facilities, conduct emergency evacuation drills, provide training, assist with incident investigations and carry out awareness drives.
Each plant has its own health and safety plan, which is put together on the basis of a framework system that is subjected to continual audit as part of the Group’s workplace safety management systems. This structure enables the Company to adapt safety measures for each plant and evaluate the measures taken by it on this front as a whole. Individual action plans are formulated every year to deliver the targeted level of improvement defined on the basis of the prior year’s performance. All of the Group’s facilities have a health and safety officer.
Also as part of its safety effort, all employees are offered an annual medical check-up to detect any potential problems and take action in good time if required.
|Injury frequency rate||14.4||15.1||11.2|
|Injury severity rate||0.6||0.4||0.2|
The number of lost-time injuries (more than one work day lost) for every million man-hours worked during a defined period of time (year).
In 2017, there were 588 accidents. Although any and all accidents are regrettable, these numbers are low in proportion to the total number of employees.
One of the key lines of initiative set down in the 2020 Healthy & Safety Strategic Plan is delivery of continuous improvement in accident indicators and rates. The data corresponding to 2017 show that this improvement is already materialising: the number of accidents fell by 6% last year despite the fact that the headcount in the automotive platform increased by 10%. The injury frequency rate declined from 15.1 to 11.2 (down 26% year-on-year) and the injury severity rate dropped from 0.4 to 0.2 (a 50% reduction). Although CIE Automotive is on the right track to reducing its accident rates, it is undeniable that any accident is evidence of shortcomings.
None of the outsourced workers employed by subcontractors was seriously injured at any workplace in 2017.
The Group applies a corporate policy at all its automotive plants, which requires subcontractors to adhere to minimum quality and productivity standards and to comply with their health and safety obligations. Before they are contracted, the tasks they are going to perform are identified, as are the associated risks, preventative measures and safety resources, along with other complementary measures designed to mitigate residual risk. This procedure is subject to internal and external auditing.
CIE Automotive’s employees receive safety training tailored to the risks posed by their jobs. The Group makes sure that any employee starting a new job receives appropriate training. In 2017 CIE Automotive provided 115.443 hours in health and safety training.
The courses provided in 2017 notably included programmes dealing with working at a height, in confined spaces, with forklifts and cranes, emergencies, ergonomics and electric risks, as well as job-specific training developed as a result of risk evaluation processes.
CIE Automotive is a member of the Alava round-table forum for workplace safety, SEA, and the Guipuzcoa workplace safety forum. It is also a member of the AEC’s occupational health and safety committee. AEC is Spain’s Quality Association.
CIE Automotive is focused on creating value for its investors and shareholders by means of managerial effectiveness that translates into share price gains and profits such that it can pay out one-third in the form of dividends.
CIE Automotive anticipates potential mismatches or conflicts of interests between its core shareholders, who control 62.9% of its shares, and its minority shareholders thanks to its effective corporate governance system and a transparent Shareholder and Market Information and Communication Policy.
CIE Automotive paid out €52.8 million of dividends from 2016 profits, up 24% year-on-year, and in 2017 its share price gained 30.7%.
Consistent delivery of its guidance year after year has driven the share price 203% higher since the end of 2013 (refer to chapter 1.3 CIE Automotive’s share price performance).
CIE Automotive had 129 million shares outstanding and a market valuation of €3.12 billion at year-end 2017, up 30.7% from year-end 2016. Its core shareholders owned 62.9% of its shares at year-end, with the remaining 36.9% freely floated. CIE Automotive held 0.2% of its shares as treasury stock.
Its shares are traded on the Madrid and Bilbao stock exchanges through the continuous market (SIBE for its initials in Spanish).
In December 2017, CIE Automotive welcomed a new investor to its shareholder ranks: Corporación Financiera Alba, a company quoted on the continuous stock market which has been devoted to making direct investments in listed and unlisted companies and real estate assets for lease to third parties since 1986. It is part of Grupo March, one of Spain’s most important private business and finance groups.
CIE Automotive has evolved significantly since it was set up in 1996, guided at all times by the important industrial shareholders that have been its legacy companions.
Indeed, this very development and maturing of the business platform is now translating into an improved shareholder structure, one marked by greater diversity, as the majority shareholders with industrial backgrounds make room for more financially-minded investors, albeit still with long-term investment horizons. The addition of Alba to CIE Automotive’s shareholder roster as a new core shareholder is evidence of that process; it strengthens the Company’s position as a listed company and enables it nurture a stable core of long-term investors with impressive track records, support that is necessary in order to tackle new challenges.
CIE Automotive estimates that at year-end 2017 some 700 investment advisors were managing the investments of the retail shareholders comprising its free float. Over half of these investment advisors are located in Spain but there is also a significant number of them in the US, UK, France, Ireland, Canada and other European markets such as Germany, Belgium, Portugal, Norway and Denmark. Notably, the Company also boasts investors from Australia, Mexico and Taiwan.
The Investor Relations Department is working hard to become familiar with the composition of its free float by means of active, two-way and transparent communication with its investors; it is trying to strengthen its relationship with them by means of marketing activities, attendance at conferences tailored for their needs and the organisation of roadshows. The sharply increased investor marketing presence observed in 2016 continued in 2017, with new cities added to the map. In 2018, CIE Automotive is planning to step up its presence in major financial cities such as London, Paris, New York and Singapore.
At 31 December 2017
Own shares held as treasury stock
|ACEK / Corporación Gestamp, S.L.||22.9%||20.9%||15.9%|
|Antonio María Pradera Jáuregui||12.0%||10.0%||10.0%|
|Corporación Financiera Alba||-||-||10.0%|
|Elidoza Promoción de Empresas, S.L.||9.6%||9.6%||9.6%|
|Mahindra & Mahindra, Ltd.||12.4%||12.4%||7.4%|
|Addvalia Capital, S.A.||5.0%||5.0%||5.0%|
|Alantra Asset Management, SGIIC, S.A.||5.0%||5.6%||5.0%|
|Total core shareholders||69.9%||63.5%||62.9%|
|Own shares held as treasury stock||-||-||0.2%|
€0.25 per share
|RISTEEL CORPORATION, B.V.(i)||13,417,021||–||13,417,021||10.401%||3,354,255.25|
|ACEK DESARROLLO Y GESTIÓN INDUSTRIAL, S.L.||7,105,182||13,417,021||20,522,203||15.909%||5,130,550.75|
|INVERSIONES, ESTRATEGIA Y CONOCIMIENTO GLOBAL CYP, S.L.(iii)||6,450,000||–||6,450,000||5.000%||1,612,500.00|
|ANTONIO MARÍA PRADERA JÁUREGUI||6,450,009||6,450,000||12,900,009||10.000%||3,225,002.25|
|CORPORACIÓN FINANCIERA ALBA, S.A.||12,900,000||–||12,900,000||10.000%||3,225,000.00|
|ELIDOZA PROMOCIÓN DE EMPRESAS, S.L.||12,386,138||–||12,386,138||9.602%||3,096,534.50|
|MAHINDRA OVERSEAS INVESTMENT COMPANY (MAURITIUS), LTD.(ii)||9,590,706||–||9,590,706||7.435%||2,397,676.50|
|MAHINDRA & MAHINDRA, LTD.||–||9,590,706||9,590,706||7.435%||2,397,676.50|
|ADDVALIA CAPITAL, S.A.||6,450,208||–||6,450,208||5.000%||1,612,552.00|
|ALANTRA ASSET MANAGEMENT, SGIIC, S.A.||–||6,438,682||6,438,682||4.991%||1,609,670.50|
(I) RISTEEL CORPORATION, B.V. is controlled by ACEK DESARROLLO Y GESTIÓN INDUSTRIAL, S.L. (formerly CORPORACIÓN GESTAMP, S.L.)
(II) MAHINDRA OVERSEAS INVESTMENT COMPANY (MAURITIUS), LTD is controlled by MAHINDRA & MAHINDRA, LTD.
(III) INVERSIONES, ESTRATEGIA Y CONOCIMIENTO GLOBAL CYP, S.L. is controlled by ANTONIO MARÍA PRADERA JÁUREGUI
The information above is based on notifications made by the Company’s shareholders to the securities market regulator, the CNMV, and to the Company (data updated as of 31/12/2017).
CIE Automotive provides the analyst and investor communities with continuous and accurate information so that they can analyse its financial, social and environmental performance, forecast its progress and take informed decisions. In keeping with its aim of injecting transparency into its reporting effort and dealings with investors and the broader market, in 2017, CIE Automotive intensified communication with the investor community by means of a number of channels.
At year-end 2017, 14 equity research firms were covering the stock (compared to 15 at the end of 2016). The changes in coverage are attributable to the following developments:
The consensus analyst target price stood at €25.30 in December 2017 (up from €18.78 a year earlier). Looking solely at the reports updated during the second half of the year, the consensus target price rises to €26.10.
|Ahorro Corporación||Álvaro Arístegui||Buy||31.91€||12/2017|
|Alantra Equities||Team Coverage||Hold||25.50€||09/2017|
|Bankinter||Esther Gutierrez de la Torre Coll||Buy||22.64€||05/2017|
|BBVA||David Díaz Rico||Outperform||30.50€||11/2017|
|Exane BNP Paribas||Javier Pinedo||Hold||22.40€||10/2017|
|Intermoney Valores||Virginia Pérez||Hold||24.40€||12/2017|
|JB Capital Markets||Ignacio Ortiz Mendivil||Buy||24.80€||09/2017|
|Link Securities||Iñigo Isardo||Buy||28.41€||11/2017|
|Mirabaud Securities||Gonzalo Sanz Martín||Buy||23.80€||09/2017|
|Nau Securities||Pedro Baptista||Buy||22.00€||03/2017|
|Santander||Robert Jackson Pina||Buy||26.23€||10/2017|
|Société Générale||Erwann Dagorne||Hold||22.50€||07/2017|
|CONSENSUS LATEST 6 MONTHS||26.07€|
For more information about the analysts covering CIE Automotive, their recommendations and target prices, refer to the website section titled ‘INVESTOR NEWS’
The start of 2017 was marked by uncertainty and concern in the NAFTA market regarding what policies US President Donald Trump would pursue and what effects they would have on vehicle production in Mexico. Given the scale of CIE Automotive’s investments in the country, the Investor Relations Department organised an Analyst Day at which, over the course of three days, various analysts, in the company of members of CIE Automotive’s top management team, toured the country, visiting as many as eight factories that manufacture using different technologies.
The positive feedback received afterwards confirmed the success of this initiative, which helped these stakeholders become better acquainted with both CIE Automotive and the reality of a country destined to become a major manufacturing and export hub.
CIE Automotive carried out its first Analyst Satisfaction Survey. The purpose was to garner feedback from the analysts regarding how they rate the information and services provided by CIE Automotive’s IR Department and get their thoughts on the Company’s performance compared to prior years. The goal was to pinpoint external, measurable feedback to enable identification of the key areas for improvement. To this end, the survey asked participants to provide their opinion about the following topics:
In short, the results of the survey were very encouraging and generated a number of suggestions worth considering and implementing in 2018. In total, 12 of the 14 analysts covering CIE Automotive took part in the survey. The analysts who did not respond could not for reasons unrelated to their relationship with CIE Automotive.
There is a dedicated “INVESTORS & SHAREHOLDERS” microsite within the corporate website www.cieautomotive.com where the Company publishes information of relevance to this stakeholder group. It provides information about attendance at conferences and roadshows, analyst coverage and the scheduled quarterly earnings calls.
E-mail inbox: firstname.lastname@example.org
Telephone number: +34 94 605 62 00
Fax number: +34 946 656 49 57
Events organised to engage with the financial community
In 2017, CIE Automotive organised 26 events (8 more than in 2016), including conferences, roadshows and the Analyst Day Mexico, visited 19 international cities and received over 45 investors who were given the chance to tour its facilities. Investor meetings reached 380 in 2017.
|Fecha||Date||Conferences and/or Roadshows||Broker|
|01/2017||Madrid||7th Spain Investors Days||Exane BNP Paribas|
|02/2017||Madrid||XXIII Iberian Conference||Santander|
|03/2017||Estocolmo / Copenhague / Oslo / Stavanger||Roadshow||JB Capital Markets|
|03/2017||Londres / Edimburgo||Roadshow||Santander|
|04/2017||Ginebra / Zurich||V Spanish Equities Day||Mirabaud Securities|
|05/2017||Madrid||Foro MEDCAP 2017||BME|
|06/2017||París||Automotive Conference||Société Générale|
|06/2017||Nueva York / Chicago||7th Spanish Small & Mid Cap Conference||BME / JB Capital Markets|
|07/2017||Milán / Lugano||Roadshow||JB Capital Markets|
|09/2017||Casçais||XIV Iberian Conference||BPI|
|09/2017||Londres||London Small/Mid Cap Conference||J.P. Morgan Cazenove|
|10/2017||Dublín||VI Spanish Equities Dublin Conference||Mirabaud Securities|
|10/2017||Bilbao||Foro Ahorro Corporación||Ahorro Corporación|
|11/2017||Londres||14th Mid Cap Forum||Exane BNP Paribas|
|Conferences and roadshows||15||18||26|
|Investor briefing sessions||207||369||380|
|Facility visits by investors||20||9||45|
SDGS RELATED WITH THIS CHAPTER
17. PARTNERSHIPS TO DELIVER GOALS
Strengthen the means of implementation and revitalise the global partnership for sustainable development.
The global trend of growing mobility, the depletion of fossil fuels and climate change are having a direct impact on the sustainability of the transportation sector. The decarbonisation of transportation, electrification, connectivity and autonomous driving are some of the key challenges that were embraced by the players active in the automotive sector in 2017.
The need to strive for the system’s sustainability has brought the sector to the current state of technological coexistence. Vehicles are adding new sources of fuel, new generation and energy storage systems and complex propulsion systems (the prospects for continually enhancing internal combustion engines are increasingly limited, the associated technological leaps increasingly small and the marginal cost, increasingly steep). The OEMs are producing more personalised cars and continue to work tirelessly to reduce their weight so as to cut fuel consumption and emissions.
All of this will be compounded by the challenge of the years ahead: finding the best possible trade-off between the need for mobility, the vehicle concept and the fuel source within an overall appraisal of mobility applications and driving cycles, as well as the factors that shape emissions in the transportation sector.
Lines of initiative undertaken in 2017
CIE Automotive is investing heavily in analysing the key market trends (in collaboration with clusters such as ACICAE, national sector associations such as SERNAUTO and their international counterparts, CLEPA and EGVIA) and in designing and developing innovative products associated with these shifts and the new challenges facing the automotive sector, from both the product and process perspectives.
In 2017, CIE Automotive earmarked about 2% of its revenue to the work undertaken by its R&D centres, taking a multi-technology and multi-material approach. These projects are mainly related with:
Many of these projects are carried out in collaboration with other companies, with the participation of technology centres such as IK4, in alliance with agents from science and technology networks such as Tecnalia and with local, national and international universities such as UPV-EHU. Some of these projects (>20 in 2017) are financed from public funds as they are presented for European research programmes and cross-country collaborations.
Vehicles with electric engines, equipped with batteries fuelled by electricity in turn generated from renewable sources and energy recovery systems present important advantages compared to conventional vehicles with internal combustion engines.
CIE Automotive sees huge potential for the manufacture of parts associated with the gradual but constant electrification of cars on the steady path towards a purely electric, efficient, profitable and sustainable vehicle.
In the years to come multiple technologies will coexist: different propulsion systems (series hybrid, parallel hybrid, hybrid plug-in, purely electric, with fuel batteries) and, importantly, different energy recovery, recharging and storage systems.
As well as working on the products associated with the sector trends, CIE Automotive continues to make progress in the world of materials and processes and develop manufacturing strategies that allow it to make large quantities of parts embodying greater value-added and more know-how; it continues to advance, in short, towards smarter manufacturing.
Certain trends are having a direct impact on production: digitalisation, new materials, increasing product personalisation and system sustainability. As a result, CIE Automotive needs to develop and/or implement technologies that increase the flexibility of its productive processes and work with short cycles right along the value chain. Moreover, it can and must use all the capabilities afforded by industry 4.0 to control and reduce costs in areas as broad as design, materials, energy, manufacturing and logistics.
CIE Automotive is tackling these challenges by means of the following key initiatives:
Its innovation model is designed to select and prioritise projects with potential for future application, specifically the scope for generating business embodying the know-how, products and technology developed.
The cornerstones of this model are:
As a result, the model allows:
CIE Automotive has a global and diversified supply chain populated by over 24,000 suppliers which held the Company create its value-added proposition. In 2017, the Group purchased €1.70 billions’ worth of goods and services.
Aware of the impact its suppliers have on the community and environment, in 2017, the Supply Chain Area centred its strategy on integrating ESG criteria into its supply chain management in an attempt to make these a hallmark that sets CIE Automotive apart. In parallel, it continued to fine-tune its model, streamlining costs and carrying out controls to ensure the quality and reliability of its supplies, as laid down in its new Global Supply Chain Manual, published in December 2017.
by value (euros), were procured from local suppliers.
of all the suppliers with which CIE Automotive worked.
46% went to upgrading existing facilities and 54% to building new factories and expanding capacity at existing ones.
CIE Automotive’s sharp growth posed a fresh challenge for supply chain management in 2017.
On the one hand, the acquisition of Newcor implied the need to deploy the procurement policy and procedures at this entity, which required whittling down suppliers and identifying supplier synergies. In parallel, the Company consolidated management of the supply chains of the companies acquired in 2016 – Grupo Amaya Tellería and Bill Forge – achieving full integration.
Elsewhere, the organic growth at the existing factories also implied a major effort due to the need to manage new projects, certify new suppliers and adjudicate contracts and purchases to existing suppliers all over the world.
SUPPLY CHAIN MILESTONES BY GEOGRAPHY
Each time the Group integrates a new company or expands an existing facility it demonstrates its commitment to the industrial landscape in the regions in which it operates, as is evident in the percentage of local suppliers, which once again increased in 2017. The identification of suppliers located close to the Group’s factories is a crucial component of its purchasing strategy because it helps create wealth in these regions, while reducing logistics costs and import duties and naturally hedging exchange rate risk.
Each manufacturing facility makes sure that their supply chain professionals are familiar with and understand CIE Automotive’s Internal Code of Professional Conduct, which expressly stipulates the purchasing function’s fundamental guidelines, such as the provision of equal opportunities and the prevention of corruption. Once they have endorsed CIE Automotive’s principles, these professionals are in a position to explain the CSR criteria to their suppliers and ask them to in turn endorse them.
New supplier manual
One of the most important milestones for CIE Automotive’s supply chain in 2017 was the publication of the Global Supply Chain Manual. This document includes comprehensive information about the Group, how it works and what it expects of its suppliers. In short, it sets down the Group’s aspirations and how it plans to achieve them with the help of its suppliers.
The Global Supply Chain Manual details graphically and in plain language the Mission, Purchasing Policy, the various product and service purchasing categories, the purchasing flowchart and the associated internal procedures and the requirements suppliers must meet in order to work with CIE Automotive.
The new document is available to anyone interested on the Suppliers tab of the corporate website. The Group hopes that it will satisfy the interest of numerous companies seeking information about the purchasing process.
The Manual was drawn up in keeping with the requirements of the new global automotive quality management standard, IATF 16949, which for the first time contemplates CSR criteria. CIE Automotive has adapted its procedures for the new standard, introducing the new requirements as warranted.
Supplier communication channels
To facilitate interaction with prospective suppliers, the Suppliers tab on the corporate website also provides the general purchasing terms and conditions by country and a dedicated e-mail address for enquiries: email@example.com
In addition, the Group engages with its supplier community at the corporate and local levels by meeting directly with them, attending trade fairs and through phone and e-mail contact.
In some markets, such as Mexico, it holds an annual Suppliers Day. Until 2016, prizes were awarded at this event to suppliers of productive material. In 2017, these prizes were expanded in scope to include suppliers of non-productive material with the aim of acknowledging the small and medium-sized enterprises, mainly local, that contribute to the Company’s business development and growth. In 2018, the plan is to additionally reward the supplier deemed most exemplary in terms of their integration of CSR criteria, whether due to their commitment to the environment, employees or other stakeholders.
Designing a Suppliers Portal
In 2017, CIE Automotive worked on designing a new Suppliers Portal, which is due to go live in the second quarter of 2018, in order to address growing interest in the Company on the part of suppliers all over the world and to ensure equal opportunities.
The portal will make it easier for suppliers to approach the Group. Following a prior registration process in which they can view and accept CIE Automotive’s policies and requirements, portal access requests will be analysed and accepted or denied; once authorised, suppliers will be asked to upload their certifications, read and fill out questionnaires addressing CSR issues, environmental management, conflict minerals, etc., based upon which they will be given a final score depending on the purchase category and quality and veracity of the information provided.
Anti-fraud and anti-corruption measures
CIE Automotive has a whistle-blowing channel for reporting irregular conduct or activities. firstname.lastname@example.org
In 2017, one potential incidence of fraud or corruption on the part of purchasing staff was reported through this channel; the case was subsequently investigated following the stipulated internal procedure, the corresponding measures were taken and the case closed.
In keeping with the Quality Management System for the Automotive Sector (UNE-ISO/TS 16949), the CIE Automotive Group’s purchasing procedures require the periodic assessment of the firms supplying it with raw materials, components, subcontractors, logistics services and tools. For more information, refer to the Global Supply Chain Manual.
The requirements demanded of suppliers are aligned with their classification as a function of the product or service they supply. Over 93% of CIE Automotive suppliers of the product families deemed subject to assessment are UNE-ISO/TS 16949 or ISO 9001 certified; environmental certification under UNE-EN ISO 14001 and OHSAS 18001 certification is also positively rated.
For the suppliers that have yet to obtain any of these certifications, a schedule has been devised for either getting certification or having a third party certify that their work standards meet those of CIE Automotive.
Suppliers are evaluated by means of audits which assess and score them on the following parameters: planning, reception, training and skills, process, maintenance, inspection, packaging, storage, continuous improvement and environmental performance, customer satisfaction, documentation and corporate social responsibility. These audits are highly rated by the suppliers themselves as they generate benefits for their own organisations that they leverage with the rest of their customers.
|GEOGRAPHIES||No. of AUDITS, 2017||%|
In 2017, CIE Automotive’s main suppliers were sent a mandatory social responsibility declaration which they were asked to endorse and sign in conjunction with their initial contracts or maiden orders. One of the goals for 2018 is to leverage the new Suppliers Portal to raise the profile of this document and make it globally enforceable.
By signing this document, the Company’s suppliers pledge to respect the International Labour Organisation’s (ILO) conventions. On the environmental front, they have to uphold the principle of precaution, take initiatives to promote greater environmental responsibility and encourage the development and dissemination of environmentally-friendly technologies.
These labour and environmental commitments are similarly reflected in the new Global Supply Chain Manual
Defining environmental requirements
In 2017, the main suppliers to each factory were sent a questionnaire in order to assess their level of environmental awareness. The results of this survey revealed that only the large multinational enterprises, mainly steel mills and plastics manufacturers, hold environmental certifications and/or report to the Carbon Disclosure Project (CDP). In most of the remaining cases, the firms reported they do not track any environmental aspects other than the odd intervention to reduce their power consumption and/or improve their waste management.
Definition of the environmental management criteria to be required of suppliers, a process to be launched in 2018, development and implementation of which will take several years, will be vital to helping small- and medium-sized suppliers to develop in this field.
ENVIRONMENTAL CERTIFICATION SURVEY
Total no. of surveys sent to suppliers: 300. These suppliers represent over 50% of total purchasing volumes.
Total no. of responses received: 150
% of total responses affirming certification: 10%
% of total that report to the CDP: 5%
In 2017, information was also requested regarding the use of certain materials deemed ‘conflict minerals’ under section 1502 of the US Ley Dodd-Frank Act: cassiterite (for tin), wolframite (for tungsten), coltan (for tantalum), and gold ore. This law obliges listed US companies to disclose their use of the above minerals and indicate their origin and document such use following the stipulated procedure.
Total no. of letters sent out: 400
Total no. of responses received: 200
% reporting that they do not use these minerals: 95%
% of suppliers reporting that they do use these minerals: 5%
% of suppliers demonstrating that the source of these minerals is not a conflict source: 100% (of the 5% who reported to using these minerals).
All of these measures are designed to encourage suppliers to become more responsible, thus contributing to social development and environmental protection.
SDGs related with this chapter
12. RESPONSIBLE CONSUMPTION AND PRODUCTION
Ensure sustainable consumption and production patterns.
17. PARTNERSHIPS TO DELIVER GOALS
The manufacture and distribution of parts for the automotive industry on a global scale is an activity that has an inexorable impact on the environment. In order to minimise that impact, the Group strives to strike a balance between its business activities and environmental protection right from the product design stage, in keeping with the United Nations Global Compact principles.
Its environmental commitment – explicitly laid down in the Group’s Mission, Vision and Values and in its Health, Safety, Environmental and Quality (HSEQ) Policy – translates into the production of more environmentally-friendly products, the introduction of energy efficiency processes into its processes and installations, the rationale use of water and the correct management of waste.
In 2017, CIE Automotive continued to make progress on its efforts to combat climate change by executing a series of initiatives contemplated in its Environmental Strategy Plan, including the formulation of an Eco-efficiency Plan for each productive facility. It also added a new indicator to its scorecard: environmental costs over revenue.
Note that the Group did not incur any material sanctions for non-compliance with environmental laws and regulations in 2017.
Formulation of factory-specific Eco-Efficiency Plans, including a monitoring regime with specific reduction targets for each factory and a reporting system so that environmental performance can be duly monitored.
In 2017, CIE Automotive added a new indicator to the process map, specifically environmental costs over revenue; the numerator factors in the cost of all things related with environmental management of the productive process, from the intake of the energy and water consumed to the exit of the waste generated and its ultimate management. The next step is to include the cost of emissions in this equation, even though CIE Automotive is not active in the emissions market.
Thanks to these indicators, CIE Automotive is now able to manage its impacts more precisely and take more adequate measures to reduce them.
Given the difficulty in properly comparing the indicators year-on-year on account of the constant growth in the size of the Group and the variety of technologies used in its factories, CIE Automotive uses the euro as its common denominator; note that this approximation is not entirely accurate either due to the impact of exchange rates on the various markets in which it operates.
SDGS RELATED WITH THIS CHAPTER
17. PARTNERSHIPS TO DELIVER GOALS
Strengthen the means of implementation and revitalise the global partnership for sustainable development.
CIE Automotive defends the European Union’s stance with respect to the Paris Climate Agreement and the UN’s Sustainable Development Goal #13 regarding the efforts to halt global warming and curb greenhouse gas emissions.
In January 2017, CIE Automotive joined Forética’s Climate Change Cluster, a top-flight business group made up of 50 Spanish companies, whose mandate is to transpose into the Spanish landscape the main global climate change trends and debates from a business perspective and become an authority on corporate environmental matters.
As part of its stated objective of investigating and encouraging the adoption of the main international trends, the Climate Change Cluster addressed the following matters in 2017:
CIE Automotive uses water and raw materials intensively. Permanent revision of all processes is vital to ensuring responsible use of these resources.
Adequate management of water is a priority for the CIE Automotive as it needs water to cool materials shaped at high temperatures. In order to minimise water discharges, the CIE Automotive has proprietary water treatment systems that enable its recovery.
|Europe||GRI 301-1||Raw material used||Kg||225,071,461.0||235,002,550.4|
|GRI 301-2||Raw material re used||Kg||64,124,067.0||76.126.684,6|
|Mahindra Europe||GRI 301-1||Raw material used||Kg||251,055,410.2||277,143,063.0|
|GRI 301-2||Raw material re used||Kg||24,471,050.9||26,718,312.0|
|NAFTA||GRI 301-1||Raw material used||Kg||236,962,234.0||292,588,679.9|
|GRI 301-2||Raw material re used||Kg||44,106,529.8||61,719,614.7|
|Brazil||GRI 301-1||Raw material used||Kg||62,664,350.4||102,588,358.3|
|GRI 301-2||Raw material re used||Kg||23,006,269.4||34,090,451.9|
|Asia (India/China)||GRI 301-1||Raw material used||Kg||242,586,834.7||276,947,728.7|
|GRI 301-2||Raw material re used||Kg||62,715,188.7||74,553,499.6|
|Total||GRI 301-1||Raw material used||Kg||1,018,340,290.4||1,184,270,380.3|
|GRI 301-2||Raw material re used||Kg||218,423,105.8||273,208,562.8|
|Europe||GRI 301-1||Raw material used||Kg/ K€||292.8||257.6|
|GRI 301-2||Raw material re used||Kg/ K€||83.4||83.4|
|Mahindra Europe||GRI 301-1||Raw material used||Kg/ K€||544.2||543.8|
|GRI 301-2||Raw material re used||Kg/ K€||53.0||52.4|
|NAFTA||GRI 301-1||Raw material used||Kg/ K€||440.1||404.7|
|GRI 301-2||Raw material re used||Kg/ K€||81.9||85.4|
|Brazil||GRI 301-1||Raw material used||Kg/ K€||284.4||312.5|
|GRI 301-2||Raw material re used||Kg/ K€||104.4||103.8|
|Asia (India/China)||GRI 301-1||Raw material used||Kg/ K€||554.0||573.6|
|GRI 301-2||Raw material re used||Kg/ K€||143.2||154.4|
|Total||GRI 301-1||Raw material used||Kg/ K€||419.6||400.6|
|GRI 301-2||Raw material re used||Kg/ K€||90.0||92.4|
CIE Automotive deploys a recycling system that enables the internal recovery of thousands of tonnes of remains deriving from its various productive processes.
In aluminium, for example, shaped using injection moulding and machining processes, CIE Automotive generates sizeable amounts of remains such as sprue, risers, starting pieces, etc. from the injection moulding process and shavings from the machining process. In both instances, the Company reuses these remnants in the melting process. It is worth highlighting a new process set in motion by CIE Celaya (Mexico) in order to reuse in-house the aluminium shavings generated in its machining processes; this waste used to have to be sent out for management.
The plastics division recycles sprue and other remains returned by its injection moulding process. The biggest amount of waste generated by CIE Automotive is steel from its stamping, forging and machining processes. Given that this steel cannot be recycled in full within the Group’s factories, it is delivered to a number of different local suppliers for end-to-end reuse.
Aluminium recycling (MT)
|Europe||GRI 306-1||Water discharge||M3/year||159,796.0||148,967.3|
|Mahindra Europe||GRI 306-1||Water discharge||M3/year||300,427.3||413,632.2|
|NAFTA||GRI 306-1||Water discharge||M3/year||89,218.2||95,743.8|
|Brazil||GRI 306-1||Water discharge||M3/year||31,190.4||16,689.8|
|Asia (India/China)||GRI 306-1||Water discharge||M3/year||121,108.7||148,773.7|
|Total||GRI 306-1||Water discharge||M3/year||701,740.7||823,806.7|
|Europe||GRI 306-2||Industrial waste treated||Ton||83,885.8||67,095.7|
|Mahindra Europe||GRI 306-2||Industrial waste treated||Ton||42,194.0||48,558.0|
|NAFTA||GRI 306-2||Industrial waste treated||Ton||32,630.6||42,868.8|
|Brazil||GRI 306-2||Industrial waste treated||Ton||15,952.3||19,122.6|
|Asia (India/China)||GRI 306-2||Industrial waste treated||Ton||83,577.4||84,307.2|
|Total||GRI 306-2||Industrial waste treated||Ton||258,240.1||261,952.3|
In recent years, CIE Automotive has made significant progress in terms of its energy efficiency, an area of priority importance because it helps reduce its environmental footprint and can translate into significant competitiveness gains.
The technologies that use energy most heavily and generate the most emissions – aluminium injection moulding and steel forging – are the key areas of focus for a range of initiatives that includes the reuse of the heat generated by the air compressors, the correct management of the distribution network, electric engines, furnaces, etc., as well as smaller details such as efficient lighting.
ENERGY CONSUMPTION AND SAVINGS
|Europe||GRI 302-1 (D)||Energy, direct consumption||Gj||461,030.80||441,377.71|
|GRI 302-1 (I)||Energy, indirect consumption||Gj||657,641.02||694,749.92|
|Mahindra Europe||GRI 302-1 (D)||Energy, direct consumption||Gj||345,219.09||318,799.31|
|GRI 302-1 (I)||Energy, indirect consumption||Gj||715,128.36||748,554.40|
|NAFTA||GRI 302-1 (D)||Energy, direct consumption||Gj||346,130.86||388,682.37|
|GRI 302-1 (I)||Energy, indirect consumption||Gj||363,315.48||540,943.09|
|Brazil||GRI 302-1 (D)||Energy, direct consumption||Gj||101,636.69||122,190.94|
|GRI 302-1 (I)||Energy, indirect consumption||Gj||379,636.33||512,872.70|
|Asia (India/China)||GRI 302-1 (D)||Energy, direct consumption||Gj||136,807.60||111,087.86|
|GRI 302-1 (I)||Energy, indirect consumption||Gj||907,273.61||985,850.49|
|Total||GRI 302-1 (D)||Energy, direct consumption||Gj||1,390,825.05||1,382,138.19|
|GRI 302-1 (I)||Energy, indirect consumption||Gj||3,022,994.80||3,482,970.60|
|Europe||GRI 305-1||Direct emissions||CO2 ™||29,646.05||28,353.39|
|GRI 305-2||Indirect emissions||CO2 ™||54,760.42||58,486.67|
|Mahindra Europe||GRI 305-1||Direct emissions||CO2 ™||22,247.36||20,543.46|
|GRI 305-2||Indirect emissions||CO2 ™||74,098.54||75,998.27|
|NAFTA||GRI 305-1||Direct emissions||CO2 ™||22,189.48||24,856.42|
|GRI 305-2||Indirect emissions||CO2 ™||46,145.92||70,596.58|
|Brazil||GRI 305-1||Direct emissions||CO2 ™||6,519.22||7,962.10|
|GRI 305-2||Indirect emissions||CO2 ™||9,174.54||12,693.03|
|Asia (India/China)||GRI 305-1||Direct emissions||CO2 ™||9,435.39||7,436.08|
|GRI 305-2||Indirect emissions||CO2 ™||222,618.14||241,360.28|
|Total||GRI 305-1||Direct emissions||CO2 ™||90,037.49||89,151.45|
|GRI 305-2||Indirect emissions||CO2 ™||406,797.56||459,134.83|
Emissions are calculated using the factors recommended by the IPCC (Intergovernmental Panel on Climate Change, set up by the United Nations and International Energy Agency).
|Europe||GRI 302-3 (D)||Energy, direct consumption||Gj /K€||0.60||0.48|
|GRI 302-3 (I)||Energy, indirect consumption||Gj /K€||0.86||0.76|
|GRI 302-3||Energy, total consumption||Gj /K€||1.46||1.25|
|GRI 305-4||Total emissions CO2||CO2 ™/ k€||0.11||0.10|
|Mahindra Europe||GRI 302-3 (D)||Energy, direct consumption||Gj /K€||0.75||0.64|
|GRI 302-3 (I)||Energy, indirect consumption||Gj /K€||1.55||1.47|
|GRI 302-3||Energy, total consumption||Gj /K€||2.30||2.11|
|GRI 305-4||Total emissions CO2||CO2 ™/ k€||0.21||0.19|
|NAFTA||GRI 302-3 (D)||Energy, direct consumption||Gj /K€||0.64||0.54|
|GRI 302-3 (I)||Energy, indirect consumption||Gj /K€||0.67||0.75|
|GRI 302-3||Energy, total consumption||Gj /K€||1.32||1.29|
|GRI 305-4||Total emissions CO2||CO2 ™/ k€||0.13||0.13|
|Brazil||GRI 302-3 (D)||Energy, direct consumption||Gj /K€||0.46||0.37|
|GRI 302-3 (I)||Energy, indirect consumption||Gj /K€||1.72||1.56|
|GRI 302-3||Energy, total consumption||Gj /K€||2.19||1.94|
|GRI 305-4||Total emissions CO2||CO2 ™/ k€||0.07||0.06|
|Asia (India/China)||GRI 302-3 (D)||Energy, direct consumption||Gj /K€||0.31||0.23|
|GRI 302-3 (I)||Energy, indirect consumption||Gj /K€||2.07||2.04|
|GRI 302-3||Energy, total consumption||Gj /K€||2.39||2.27|
|GRI 305-4||Total emissions CO2||CO2 ™/ k€||0.53||0.52|
|Total||GRI 302-3 (D)||Energy, direct consumption||Gj /K€||0.57||0.47|
|GRI 302-3 (I)||Energy, indirect consumption||Gj /K€||1.25||1.18|
|GRI 302-3||Energy, total consumption||Gj /K€||1.82||1.65|
|GRI 305-4||Total emissions CO2||CO2 ™/ k€||0.20||0.19|
SDGs related with this chapter
2. ZERO HUNGER
End hunger, achieve food security and improved nutrition, and promote sustainable agriculture.
4. QUALITY EDUCATION
Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all.
As a result of its work as a manufacturer of parts and subassemblies for the automotive market, CIE Automotive plays an important role in the economic and social development of the areas in which it operates by creating jobs, injecting life into the local business landscape and paying taxes. It also collaborates with the public authorities and other organisations in each region and invests in community development by means of its sponsorship and philanthropic activities. In addition, CIE Automotive strives to minimise the negative impacts generated by its manufacturing facilities and focuses its community programmes on local development needs and expectations, at all times framed by the principles laid down in its Social Action Policy: collaboration, transparency, the creation of value-added, long-term commitment, joint company-employee commitment, and a focus on disadvantaged places.
|To shareholders (dividends)*||25.8||42.6||52.8|
|To employees (employee benefits expense)||600.4||631.7||776.1|
|To suppliers (consumption of raw materials and auxiliary materials)||1,470.4||1,619.0||2,155.1|
|To society (income tax paid)||31.9||43.3||55.9|
(*) Dividend paid during the year
CIE Automotive’s decentralised model, coupled with the fact that 90% of its factories are run by local managers, facilitates nimble decision-making in the community work arena. Specifically, it enables a quick response to sudden crises (the most noteworthy example being the earthquake in Mexico in September) to ensure that each country takes the decisions that create the most value.
CIE Automotive earmarked nearly €400,000 to community work programmes in 2017, mainly to a number of different NGOs, associations of various kinds and the student community. These donations reached over 58,000 beneficiaries. The joint company-employee commitment materialised in the participation by 2,400 employees in community work to which they devoted over 3,500 hours.
In addition, CIE Automotive plays a role in local development by creating jobs, purchasing from local suppliers, providing training and paying taxes in all its operating markets.
CIE Automotive sponsors activities at the corporate and local levels, in keeping with the United Nations Sustainable Development Goals. It focuses its efforts on combating social injustice and climate change, eradicating poverty, providing clean and safe water, women’s empowerment, job creation and economic growth, environmental protection and engaging in educational improvements, among other lines of action.
Some of the Group’s community programmes, framed by the community work policies in place in each region, are itemised below by way of illustration:
The Mahindra CIE and Bill Forge factories are known for encouraging their employees to participate in voluntary community work, with a priority focus on the areas of education, environmental protection, personal and road safety and health.
CIE Automotive is politically neutral and does not finance, either directly or indirectly, political parties or their representatives or candidates, either in Spain or abroad.
Its dealings with the local authorities are based on collaboration and stringent compliance with prevailing legislation, while engaging openly and continuously with them with the aim of minimising potentially adverse impacts on local communities. One of its goals is to advise the authorities on technical matters related to the automotive industry.
As a significant player in the automotive parts industry, CIE Automotive is a member of a number of business associations, whose remit is to defend the automotive industry’s interests vis-a-vis government.