Sustainability Report 2021
Fit for the FutureTable of Contents
Letter From the CEO

3–4

Company Overview

5

About Marelli

6–7

Sustainability Performance Overview

8–9

Materiality Assessment

10

Stakeholder Engagement

11

Advanced Mobility and Our Innovation

12–17

Technology Vision of Mobility Megatrends........................................................................................................................................................................13
Innovation Strategy..........................................................................................................................................................................................................14–15
Open Innovation...............................................................................................................................................................................................................16–17

Sustainability of Our Operations

18–27

Climate Action....................................................................................................................................................................................................................19–20
Effective Use and Reuse of Materials..................................................................................................................................................................................21
Preventing Pollution ...............................................................................................................................................................................................................22
Water Conservation ................................................................................................................................................................................................................23
ESG Risk Management and Opportunities.........................................................................................................................................................................23
COVID-19 Responses..............................................................................................................................................................................................................24
Occupational Health and Safety...........................................................................................................................................................................................25
Monozukuri: A Heritage From Our Culture in Japan.........................................................................................................................................................26
Commitment to Quality..........................................................................................................................................................................................................27

Responsible Corporate Citizen

28–33

Corporate Governance...........................................................................................................................................................................................................29
Sustainability Governance......................................................................................................................................................................................................29
Responsible Business Management....................................................................................................................................................................................30
Risk Management....................................................................................................................................................................................................................31
Information Security and Data Privacy................................................................................................................................................................................32
Sustainable Supply Chain.......................................................................................................................................................................................................33

Marelli People

34–47

Great Place to Work..........................................................................................................................................................................................................35–36
Employee Training and Development.................................................................................................................................................................................37
Diversity and Inclusion.....................................................................................................................................................................................................38–39
Employee Well-Being...............................................................................................................................................................................................................40
Human Rights...........................................................................................................................................................................................................................41
Fair Labor Conditions..............................................................................................................................................................................................................42
Social Contributions.........................................................................................................................................................................................................43–47

2

Sustainability Data

48–54

About This Report

55

Marelli

Sustainability Report 2021

Letter From the CEO
My journey at Marelli began in January 2022 as COVID-19 vaccines had thankfully
started to provide much relief to global communities. Yet today, the virus continues
to have a critical impact on people’s lives. The health and well-being of ouremployees and their families are key priorities for me, not just physical health but
also mental health, both of which have been affected over the past two years.
Marelli COVID-19 Committees, at both the central and country level, continue toupdate health and safety guidelines according to local regulations to ensure smart
working is balanced with a safe return to the office.
When I joined Marelli, I was very pleased to see that our commitment tocarbon neutral operations by 2030 was already in place. In addition, we
are focused on reducing energy consumption and developing
innovative products to enhance vehicle efficiency. And we aremaking progress: in 2021, we achieved a 3.1% reduction in carbon
emissions from our operations and a 7% decline in energy used perhour of production compared to the previous year, while the ratio ofrenewable energy usage in operations is 10.7%.
Another key focus area is the growth and well-being ofour people. I envision a Marelli where our global and multicultural
talents can thrive and grow as a direct result of our diversity andinclusion initiatives. I am pleased to share that our most recent Great
Place to Work survey showed that 88% of respondents agree they aretreated fairly in the workplace. The survey results also helped
define the actions we are taking in 2022 to improve
employee engagement.
That said, I acknowledge we are still early in our progressand our journey toward becoming a climate-neutral
organization. The same applies to diversity and inclusion.
I’m happy to report that we are making progress in thisarea, beginning with the creation of a dedicated Diversity &Inclusion Committee in 2021. Sustainability, Social
Responsibility, and Diversity and Inclusion are topics
that we are prioritizing in 2022.

Accelerating efforts to
respond to mobility trends
and harnessing opportunities
for the vehicles of tomorrow.
We have a wide range of proven technologies that enable
us to provide integrated systems for the future of mobility.
Our expertise in electric powertrain and thermal systems
offers a unique integrated approach for electric vehicles(EVs) that caters to industry demands. Marelli offers
lightweight materials that greatly reduce weight and fuelconsumption across segments. Our continued efforts toextend the lifespan of existing vehicles is enabled byretrofitting efficient components to improve fuel economy
and reduce emissions for today’s internal combustion
engine systems.

Fit for the Future

Marelli3

Further differentiating ourselves through innovation is a priority
for us. We are analyzing next-generation technology
battlefields and emerging new business models to makestrategic decisions on market segments we want to playin. Sustainability and the circular economy will play a
critical role in developing our long-term technology
roadmaps.

To make a difference for ourcustomers, we are engaging
with all stakeholders, including
our suppliers, employees, andcommunities at large, to create
long-term value for all.
Our corporate policies and procedures provide a clear
governance framework to uphold our values and principles,and support responsible corporate citizenship. We arefocused on human rights and the health and safety of all
those working and partnering with us.
We are building a sustainable supply chain for our business.
This will be based on fostering long-lasting and mutually
beneficial partnerships. Due to increased uncertainty
around resource availability, material cost, and carbon
emissions from long-distance transportation, we aim tolocalize our supply base where possible.

Making Marelli fit for the futureof mobility is my key priority.
We are building a corporate culture of resilience that has theagility to respond quickly to market changes. Growing thecompany will not take precedence over improving ourenvironmental performance or the communities in which we
operate. Improving our sustainability DNA is a must in order
to serve our customers better and attract top talent.

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Marelli

Ultimately it is about the One Marelli culture we are building.
This culture is based on recognizing our people for theirunique perspectives and contributions. For example, in our
search for lighter weight, animal-friendly, or more sustainable
materials, I see how eager our people are to explore
alternatives, using their full potential to deliver better
solutions. The locally-driven initiatives implemented tosupport communities during the COVID-19 crisis are good
examples of how we can enhance our performance-driven
culture: no matter if it’s a customer requirement, asustainability quest, or a community demand—our teams areready to find an agile and innovative solution.

“I am proud of the sustainability
achievements the Marelli teammade in 2021. Our commitment tocarbon neutrality within operations
by 2030 marked a significant
milestone last year.”In the coming year, there is a lot to do to ensure Marelli is
Fit for the Future. I look forward to updating you further
on Marelli’s plans to leverage sustainability in every
sense: financially, environmentally, and structurally. Until
then, we will keep working to grow our business with products
and services that help realize a more sustainable form ofmobility for the world.

David Slump, President and CEO

Sustainability Report 2021

Company Overview
OUR FOOTPRINT

FinancialIntellectual

Natural• JPY 495 billion direct 		
procurement budget 		spent on suppliers• R
 &D centers in Asia, North
America, South America,
and Europe• 4,979,327 GJ total energy 		
consumption (2021)• 2,506,384 m3 water withdrawal(2021)

Manufacturing

People and Culture• 131 manufacturing sites (2021)• 103 years of experience inmanufacturing (until 2021)• The Company’s successis built on manufacturing
excellence (Monozukuri)
and innovation• 54,058 employees (2021)• 444,199 hours of training
provided to employees (2021)

Social• 20 social programs

OUR PRODUCTS & SERVICESElectronic Systems

Green Technology Systems

Interior Experience

Ride Dynamics

Vehicle Electrification
Powertrain
Motorsport
After Market
Automotive Lighting &Sensing Technologies

OUR PERFORMANCE

FinancialIntellectual

Natural• Total revenue:
JPY 1,380 billion• The first supplier to develop andcommercialize a high pressure
fuel injector (PACE Award)• Indoor Air Quality (IAQ) 		
Purification System (CES® 2022
Innovation Award Honoree)• 3
 .1% carbon reduction in ouremissions from operations• 7% decline in energy used perhour of production• 33% increase in the usage of
renewable energy in operations(2021 results compared to 2020)

Manufacturing• 100% of our plants are IATF
16949 certified (except for
new plants)• 41% of our plants achieved
Zero Defects* (2021)• 13 quality awards from 8 		customers (2021)*Less than 1 ppm (parts per million) defectratio for delivered parts to customers’ plants

Fit for the Future

People and Culture• A PAC 27%, EMEA 39%, North
America 25%, LATAM 9%• Women 29%, Men 71%• 88% of Marelli employees** feelthey are being treated fairly (2021)

Social• 4
 2,170 people benefited
through our social programs• 10,000 trees planted**Respondents to the Great Place
to Work 2021 survey

Marelli5About Marelli
Marelli (hereafter referred to as “Marelli”, “we”, or the“Company”) is one of the world’s leading global independent
suppliers in the automotive sector. On May 10, 2019, twoleading automotive suppliers Calsonic Kansei and Magneti
Marelli joined under one global brand, Marelli, to compete
more effectively on a global scale. With a strong andestablished track record in innovation and manufacturing
excellence, our mission is to transform the future of mobility
through working with customers and partners to create asafer, greener, and better-connected world. Marelli supplies
all major automotive manufacturers in Asia, Europe, North

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Marelli

America, and South America. Our business fields areautomotive lighting, vehicle electrification including
e-powertrain and thermal solutions, electronics, green
technology system, interior experience, powertrain, ride
dynamics, motorsport, and aftermarket business.
With around 54,000 employees worldwide, the Marelli
footprint includes 170 facilities and Research andDevelopment (R&D) centers across Asia, the Americas,
Europe, and Africa, generating revenues of JPY 1,380
billion (EUR 10.6 billion) in 2021.

Sustainability Report 2021

Illustrated by Valentina from Brazil

Building One Marelli
As part of our ongoing integration and transformation journey, in 2021 wecontinued to focus on building a One Marelli culture through activities that
increase awareness and understanding among our employees.
The activities were developed based on employee feedback
from the previous year, some of which were organized withactive involvement of Marelli Ambassadors from 15 countries,
who played an integral role in expanding the reach of initiatives.
Our shared values, defined as Innovation, Diversity,
Collaboration, Sustainability, and Excellence (Monozukuri), are thefoundation of Marelli’s strong culture. They came to life in 2021
through the Marelli Values Weeks: a series of weekly events
dedicated to Marelli Values where employees share thoughts,
opinions, and ideas with executive sponsors. In addition, otherinitiatives were held in 2021 to strengthen One Marelli:Innovation Week: Through a Q&A panel session with four
Executive Vice Presidents, our employees were reminded of
the importance of embracing a cross-functional approach,exploring new ideas, and working with customers to create
new products. We also conducted a two-day interactive
session to instill innovative thinking among our employees,with three teams selected as the top three innovators for theirentrepreneurial spirit.
Sustainability Week: In five focus group events held globally,
nearly 100 employees gathered to share and propose ideas
on how Marelli can enhance employee engagement throughlocal social contribution initiatives. Over 2,700 employees also
shared ideas and thoughts on Marelli’s social engagement via
an online survey. The results are used to shape our social andcommunity strategies.

Fit for the Future

Excellence (Monozukuri) Week: To encourage Monozokuri
culture in our operations, the week held two contests called“Excellence in Zero Defects Contest” and “Excellence in Best
Practice Contest”, where employees at all plants present theirideas for improvement. Out of 48 best practice submissions,eight were awarded as an “Excellent Example”.

Living the Values• During the first half of 2021, 20 global engagement
sessions and 119 local sessions were organized andattended by 17,000 employees. These sessions intended toprovide employees with opportunities to understand ourstrategy, its rationale, and the plan’s progress, through a
direct dialogue with the leaders who hosted the sessions.
The post-event surveys showed that more than 90% of
respondents were interested in joining similar events in the
future, highlighting the level of engagement created by theinteractive sessions.
• #MarelliPeople on social media: Continuing the work
started in 2020, when employees participated in the “What’s
your value” video competition, selected videos from 223
teams were shared via social media to promote our Values
in 2021.
• To further nurture the One Marelli culture, our sharedapproach was integrated into several corporate employee
materials, like an onboarding kit, recruiting kit, and training kit.

Marelli7

Sustainability
Performance Overview
People444,199

Planet10.7%

RATIO OF RENEWABLE ENERGY USAGE IN 2021
(AMONG THE TOTAL CONSUMPTION OF ENERGY)HOURS OF TRAINING PROVIDED TO 54,058
EMPLOYEES IN 2021, 10,382 HOURS OF WHICH
INCLUDED HUMAN RIGHTS TRAINING

3.1% 92.3%

42,170GHG EMISSION
REDUCTION
ACHIEVED IN 2021

OF OUR WATER NEEDSWERE COVEREDBY RECYCLING/
REUSING WATER

BENEFICIARIES IMPACTED THROUGH 20
SOCIAL PROGRAMSProfitJPY 1,380 billion
TOTAL REVENUE

Carbon Neutrality
In the wake of the 2021 United Nations Climate Change
Conference (COP26), the global shift toward carbon neutrality
continues to accelerate, as more countries announce pledges
to go carbon neutral, and our main markets are embracing thisdirection. For example, the European Union published a regulationin 2021 that enshrines the objective to make Europe climateneutral by 2050. Likewise, the Government of Japan declared its
ambition to be carbon neutral by 2050 and reduce greenhousegas (GHG) emissions by 46% in 2030 from its 2013 levels.
As Marelli, we acknowledge our role in supporting the
global advancement toward cleaner mobility. In
November 2021, we announced our commitment tobecome carbon neutral within our operations (Scope 1
and Scope 2) by 2030. This goal is the first step in our
broader sustainability journey. We aim to achieve it byminimizing energy consumption, ensuring the use ofrenewable energy, and neutralizing any remaining
unavoidable emissions.

Continuous Implementation of“Energy Efficiency Monozukuri”“Energy Efficiency Monozukuri” is a series of strategies andactivities directly aimed at reducing energy usage andconsequently GHG emissions at plants. This includes
introducing high-efficiency and energy-saving equipment,machinery, and improvement activities, suchas streamlining operation lines at production sites.

Renewable Electricity Use in Operations
We are committed to ensuring that electricity used inoperations will come from renewable sources. Renewableelectricity will be either self-generated through the installationof on-site systems or purchased through specific certified
contracts, such as power purchasing agreements and green
supply contracts.

Certified Carbon Projects
for Unavoidable Emissions
Where our primary efforts do not suffice, the emissions will
be neutralized through acquiring certified carbon credits
generated from projects worldwide. The Company will also
continue to monitor new technologies and solutions for
decarbonization that could support Marelli in achieving its goals.

Illustrated by Katarina from Slovakia

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Marelli

Sustainability Report 2021

Achievement Highlights
Innovation Awards
Marelli is the first supplier to develop and commercialize a fuel injector capable of reaching a 1,000-bar pressure level that won
the PACE* Award in September 2021. Our very high-pressure gasoline direct injector can enable high efficiency and clean
combustion by allowing precise and accurate metering of fuel into the cylinder over the full range of the engine’s operation.
Marelli was a CES® 2022 Innovation Award Honoree in November 2021 for our Indoor Air Quality (IAQ) Purification System.
The system kills bacteria and viruses in vehicles and indoor environments.

Human Resources Awards and Recognitions

Sustainability Standards
In line with our commitment to embedding
a sustainable and resilient business model,
we engage in internationally recognizedassessments and continue improving ourranking in different standards.

The awards and recognitions Marelli received testify to our commitment to being
an employer of choice for our people.
BrazilLinkedIn Top 25 Companies for
Career Development in Brazil (2021)
India
Platinum Award for Grow Care
India in the category Occupational
Health & Safety (2021)

In 2021, we achieved a score of B
for CDP Climate Change, which ishigher than the Asian regional
average of B-.

Japan

We also received A- for Water
Security, an improvement from theprevious year. This is higher thanthe Asian regional average of B.

“Platinum Kurumin” certification(top 500 companies in childcare)from the Ministry of Health, Labourand Welfare (2021)
Recognized as a Health and Productivity
Company by the Ministry of Economy,
Trade and Industry (2019-2021)

We achieved a silver medal from
EcoVadis in 2021, which positions
us in the top 25th percentile.

PolandTop Employers certification fromthe Top Employers Institute for threeconsecutive years (2019–2021)
One of the 300 companies listed
in Forbes Best Employers (2021)
ThailandThailand Labour Management
Excellence Award 2021 (company
with an excellent labor management
system) from the Department of LabourProtection and Welfare (2012-2021)
TurkeySafety at Work Award from the Ministryof Labor and Social Security (2021)

Awards From Customers
In 2021, we received 13 quality awards from eight customers around the world.
CUSTOMER (Alphabetical order)

AWARD

REGIONPLANT

GAC Group

Excellent Cooperation Award

China

Guangzhou

General Motors

Supplier Quality Excellence Award

BrazilMauá

General Motors

Supplier Quality Excellence Award

BrazilAmparoGeneral Motors

Supplier Quality Excellence Award

Malaysia

Penang

Honda

Supplier Award

BrazilAmparoIsuzu

Quality Achievement Award

Japan

-

Isuzu

Outstanding Quality and Delivery Score

Thailand

Bangplee

NIO

Quality Premium Partner

China

Wuhu

NissanContinuous Improvement Leader

RussiaSt. Petersburg

NissanRegional Supplier Quality Award Finalist

ThailandAmata

NissanOutstanding Quality Performance on Model Year 21
Nissan Rogue Launch

United States-

Piaggio

Excellent Supplier

China

-

Stellantis

Torneio Kaizen Supplier Integration Management 2021 Brazil

Goiana*	PACE Awards: Automotive News and Automotive Parts Manufacturers’ Association (APMA) awards for original equipment manufacturers (OEMs) that provide products, processes,
materials, and services leading to outstanding innovation and technological advancements in the automotive industry. Fourteen companies, including Marelli, received the award
in the 27th edition in 2021. We won the award two years in a row, having also received the award in 2020 for our ultra-high resolution lighting module.

Fit for the Future

Marelli9Materiality Assessment
Through our materiality assessment conducted in 2019, we have identified 17 sustainability topics that are of significant
concern for our Company. The assessment considered some of our stakeholders’ various views, and our financial andnon-financial priorities related to the current sustainability challenges.

Materiality Assessment Process Conducted in 2019
Step 1

Step 2

Step 3

Identification of
Sustainability Topics

Prioritization Based on
Stakeholder Engagement

Validation and Approval

We have conducted a comprehensive
review of sustainability issues andidentified 17 material topics adopted
from the issues.

We have engaged with 6,500
employees and 19 major customers togain insight into stakeholders’ priorities
among the identified material topics.

Our materiality diagram was validated
and approved by both the Board
Member in charge of sustainability
and the CEO.

Materiality Topics
Our 17 material topics are presented as an interrelated diagram that shows their priority level, our three strategic sustainability
areas, and their relations to the Sustainable Development Goals (SDGs).
We plan to review the material topics in the second half of 2022 to reflect both the changes posed by the COVID-19 crisis in
our industry and the increased participation of other relevant stakeholders. The assessment will allow the prioritization of
topics to sharpen our actions, flesh out our short-term goals, and establish more robust long-term goals and action plans.

Advanced Mobility and Innovation

Top Priority
High Priority
Medium Priority

Investment in New Technology
Powering Progress Together (Partnership)

Climate Change
Water Conservation

Effective Use and Reuse of Resources
Excellence in Monozukuri

Sustainability of Our Operations

Responsible Corporate Citizen

Prevention of Pollution and Biodiversity

Responsible Business Management

Occupational Health and Safety

Diversity and Inclusion

Social Contribution

Fair Labor Condition

Risk Management

Respecting Human Rights

Sustainable Supply ChainI nformation Security andProtection of Data Privacy
Employer of Choice10

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Sustainability Report 2021

Stakeholder Engagement
We are engaging with our stakeholders to clarify the key
priorities and issues in our operations. We aim to further
strengthen our dialogues with stakeholders, to ensure we are
actively responding to society’s changing challenges andexpectations. Moving forward, we will engage our leadersfrom top and middle management.

• Society of Automotive Engineers of Japan (JSAE)

Stakeholders Engaged During
the Materiality Assessment

Europe• Functions heads: All the functions related to materiality
topics via consultation• Automobile Business Association of Japan• Keidanren (Japan Business Federation)• Saitama Association of Corporate Executives• Japan Institute of Industrial Engineering (JIIE)• European Association of Automotive Suppliers (CLEPA)• Italian Association of the Automobile Industry (ANFIA)• German Association of the Automotive Industry (VDA)• Employees: 6,500 employees via an online survey in
7 languages

North America• Customers: 19 customers via a survey sent by e-mail• Autotech Council• Original Equipment Supplier Association (OESA)• Carnegie Mellon Next Manufacturing Consortium

Key Membership Associations
Japan• Japan Auto Parts Industries Association (JAPIA)

Fit for the Future

Brazil• Manufacture Auto Parts Association (Sindipeças)• Automotive Engineering Association (AEA)• National Association of Auto Parts Distributors (Andap)
Marelli11

Advanced Mobility
and Our Innovation
As the automotive sector adds the sustainability paradigm to the
traditional mantra of “cost, quality, and delivery”, the need for innovation
has become essential. As a result, we put innovation at the heart of our
product strategies, and sustainability is a key factor monitored from theearliest stages of concept design.

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Sustainability Report 2021

Technology Vision of
Mobility Megatrends
A New Framework for the Futureof Mobility and Global Initiatives
The worldwide impact of climate change on weather
conditions is becoming increasingly apparent. In theautomotive sector, some countries and regions have alreadyannounced bans on selling new gasoline and diesel-powered
vehicles. Given this trend, traditional automakers have begun
the transition from developing cars with internal combustion
engines (ICEs) to next-generation cars powered by electricity
and hydrogen, while building alliances with new entrants,
such as electronics manufacturers and start-ups.
In addition to the increasing number of electric vehicles,
the automotive sector is undergoing a profound digitaltransformation of in-car systems to deliver vehicle automation,connectivity, and shared mobility. With support from
improving electronic technologies, automotive control units
benefit from multifunctional abilities and the ability to handle
complex processes within a short time. Since the automotive
control units are responsible for many critical safety functions,
their safety and reliability are the highest priority during
product development.

Today, cars contain up to 150 electronic control units
and about 100 million lines of software code, which isestimated to increase to 300 million lines of code by2030.* Furthermore, with increased connectivity, theautomotive sector will need a robust cybersecurity risk
management system to ensure vehicle safety andconsumer privacy.

In response to these drastic changes, new UN Regulations
on Cybersecurity and Software Updates—the first-everinternationally harmonized and binding norms in thisarea—were adopted in June 2020 by UNECE’s (United Nations
Economic Commission for Europe) World Forum for
Harmonization of Vehicle Regulations (WP.29), which enteredinto force in January 2021. The norms require car
manufacturers to manage and assess cyber risks, design
vehicles that are secure against cyberattacks, mitigate risks
along the value chain, detect security incidents, and provide
software updates on a legal basis using Over-the-Air (OTA)
updates for passenger cars, vans, trucks, and buses.
Marelli’s products and technologies continue to evolve andaddress the combined pressures to:• Decarbonize: via fuel efficiency, weight reduction, andemissions limitations.
• Digitalize: with high computational power control units
and flexible yet robust software architectures.
• Automate: with sensors and software for remoteobject detection.
• Enhance vehicle personality: developing the on- andoff-board experience (lighting and interiors, new materials,
new technology with less energy, and better performance).

* Source: Deichmann, J. et al. (2019), The Race for Cybersecurity: Protecting theconnected car in the era of new regulation, McKinsey & Company.

Illustrated by Andrei from Romania

Fit for the Future

Marelli13

Innovation Strategy
Shift to Electrification
Electrification is the cornerstone of the global effort toachieve a zero-carbon economy, and efficiency is the factor
that drives progress in this area. Marelli offers a wide rangeof electric powertrain components and systems suitablefor passenger vehicles, thanks to our expertise in electricmachines and power electronics. Combining our expertisewith our capabilities in thermal management allows us toprovide efficient solutions.
Thermal management plays an essential role in maximizing
the efficiency of electric vehicles (EVs). Most of the losses in
an EV powertrain are in the form of heat. This heat becomesa limiting factor on the powertrain’s ability to perform at maximum
efficiency. The combination of our expertise in electric powertrains
and thermal systems offers a unique integrated system for
EVs that will meet the demands of the industry.

Marelli’s lightweight materials andcapability can make a differencein various car segments for weight
reduction and fuel consumption,
which are essential for EVs.
Partnering to Strengthen
Product Development
We continue to collaborate with Transphorm on industryleading gallium nitride (GaN) devices and will work together
to support a multi-year EV system product roadmap. Together
we continue to innovate Transphorm’s SuperGaN® FET (field
effect transistor) technology, which offers the world’s lowest
on-resistance in a standard TO-247-3 package in the current
market. This technology will target EVs and other higherpower conversion vehicles, as higher-power density translates
into lower energy consumption and weight saving.

Joining Forces for Vehicle Electrification
Marelli and RWTH Aachen University, one of the leading
German technical universities, have signed a frameworkagreement for collaboration in e-mobility. The partnership
between Marelli and the university’s chair on “Production
Engineering of E-Mobility Components” (PEM) collaborates
on specific research projects, like increasing the permanent
performance of electric motors and developing a new electricmotor along with its production in a scaled-up factory.

“We are continuously listening to the voice of our customers tomake parts that are more aligned with the principles of thecircular economy. In 2021, our teams made good progress inaddressing expectations around recycled content and reducing
pressure on raw materials. From 2022, we will focus on designs thatconsider the whole product life cycle and will intensify our search for even more
eco-friendly materials with superior performance. In parallel, we continue todevelop best-in-class solutions to aid the transition to zero-emission vehicles
that preserve both the driver experience and the planet.”
Joachim Fetzer, Executive Vice President, Chief Technology and Innovation Officer

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Sustainability Report 2021

Safety and Security
The architecture of automobiles is expected to change towardhigher-performance control units with high computing
power. In future vehicle platforms, these devices will also
be responsible for safety and cybersecurity, as they will beable to process various functions in a centralized manner,
update software, and add apps. The security of wirelesscommunication with the vehicle must be maintained.
With the commitment to providing the highest quality
product to our clients, Marelli also focuses on compliancewith the cybersecurity standards for applicable products.
The cybersecurity standard compliance covered by Marelli
development includes ISO 21434, UNECE WP.29 R155,
and others such as Trusted Information Security Assessment
Exchange (TISAX). With this wide coverage of international
standards, the products from Marelli satisfy the stringent
requirements for the safety of future generation vehicles andalso apply to the many variations of vehicles from different
original equipment manufacturers (OEMs) in the world.
Additionally, computer vision devices are required to improvetheir function while enhancing reliability, as the level of driving
automation continues to increase in next-generation vehicles.
Marelli provides a developed Light Detection and Ranging(LiDAR) sensor to meet the needs of highly autonomousvehicles. Following international standards, including ISO
26262, ISO/PAS 21448 Safety of the Intended Function(SOTIF), and IEC 60825, the LiDAR sensor is a reliable partof the autonomous driving system that guarantees thecustomers’ safety.

Internal Combustion
Engines (ICEs) Efficiency
in the Transition toGreener Mobility
During COP26, held in November 2021, over 100 national
governments, cities, states, and major businesses signed the
Glasgow Declaration on Zero-Emission Cars to end the saleof ICEs in leading markets by 2035 and worldwide by 2040.
The process of vehicle electrification must run parallel to theapplication of available technology for ICE powertrains toeffectively reduce emissions with technology that is either
already available or at an advanced stage of development.
Marelli is actively developing innovative technology andcomponents that support low-emission mobility, which may
support a variety of solutions, such as battery EV (BEV), fuel cellvehicle (FCV), e-fuels, and hydrogen-ICE. Our innovations
highlight opportunities with control unit hardware and software
design applied to new biofuels and new devices, such as
solutions for faster catalyst activation, heat recovery systems
that harvest energy, and strategies and solutions for end-of-life
treatment for hydrogen-fueled engines, starting withcommercial vehicles.
With a focus on technological areas, such as high compression
ratio and unconventional combustion systems, automotive
manufacturers seek new solutions to achieve higher efficiencies
and lower emissions from ICEs. Marelli is working to develop
technology for products that reduce emissions.

Other Examples of Our Technology

Digital Lighting Systems

Road to Euro 7 – Catalyst Light-Off

Marelli Automotive Lighting equips the new Mercedes-Benz
EQS with digital LED headlights bringing the high-definition
light once again into series. Digital light opens fully new
possibilities of optimizing road illumination by shaping thelight and extending assisting functions. The special design ofthe luxury electric vehicle is additionally highlighted by thelong, but very narrow light strip that is located between theheadlights as an additional eye-catcher.

For the expected future emission regulations and Euro 7
requirements, a device that enables a faster warm-up of thecatalyst will be crucial, especially for high power engines,
hybrid vehicles, architectures with cylinder deactivation, andplug-in hybrids, to achieve catalyst efficiency in all operating
conditions. Our system can assure a faster warm-up of thecatalyst converter, guaranteeing reduced emissions throughlow fuel consumption while ensuring a fast response and thesame engine power output.

Read more about our recognitions on the Achievement Highlights page (p.9).

Fit for the Future

Marelli

15

Open Innovation
Marelli has adopted an agile development approach,reformulating its traditional product development process
to incorporate fast-evolving technologies. In 2020, we relocatedthe Advanced Innovation Team within the new central
Engineering R&D function, to promote product development
through open innovation with partner companies. In addition
to strengthening our existing core technologies, we aim to
explore and create markets for new value-added technologies.
We appointed an innovation promoter in each divisionand organized a Marelli Innovation Network Delegates
Team (MIND Team) that holds regular meetings to share
information, changing trends, and technological needs
among the divisions. In addition, we established the
Research and Technology Scouting Team to strengthen
our competitiveness, develop technological strategies, andpromote partnerships between divisions and numerous
research institutions, including national and international
universities. We evaluate our global research channels tosystematically integrate strong business networks that
we have built, both internally and externally, into our
R&D process and to provide ongoing support for eachdivision’s projects.

Fewer Environmental Impacts
From Our Products
Marelli focuses on the 3R (Reduce, Reuse, Recycle) approachto minimize our environmental impact. Our efforts include
implementing sustainable processes that use fewer resources,
for example:
1. Sustainable processes such as injection skin and painting
fewer products. By adopting the injection skin process fromthe powder slash process and eliminating painting, wereduce CO2 emissions by 56%.
2. Sustainable materials and systems such as recycling
plastic and low volatile organic compounds (VOC) and lightweight solutions. The adoption of low VOC and light weight
urethane has resulted in a weight reduction of 35%. Using across car beam made from aluminum instead of a steel for a
30% weight reduction.
3. Vegan interior using bioplastic or organic based materials.
Fabric wrapping, thermoplastic elastomer (TPE) andpolyvinyl chloride (PVC) skin has been adopted.
Furthermore, our product development teams are working
to make our products lighter by reducing the amount of
raw materials used.

Case Study

CHINA

Marelli Automotive Lighting Xiaogan Established
Joint Innovation Center With Chang’an
In December 2021, Marelli AL Xiaogan signed an agreement with Chang’an to set up a joint innovation center
that develops advanced technologies for new automotive lighting and sensing, targeting customers in Middle andSouthwest China including Chang’an, such as headlamps, rear lamps, and fog lamps.

“The establishment of the joint innovation center not only implements
the spirit of deepening collaborative innovation of the group, butalso introduces advanced joint ventures into transformation by
responding to the current changes in the automotive industry.”
Mr. Wei Li, Vice President of Chang’an Auto

16

Marelli

Sustainability Report 2021

Case Study

SOUTH AMERICA

INVENTOR – Ideas andInnovation Program

1,450

PEOPLE INVOLVED IN IDEAS

The main goal of this program is to create an
open channel between operators, employees,
and company leaders.

9,000
3,300

Through INVENTOR, the Company can promote:

IDEAS WITH

• Engagement of their people• Continuous improvement culture

IMPLEMENTED• Sustainability of manufacturing standards(improvement starts with a standard)• Meeting customer requirements andother certifications
Everyone can access this program’s online platformfrom a mobile or PC and share ideas.

Fit for the Future

714

PEOPLE INVOLVEDIN IMPLEMENTATION

Marelli17

Sustainability of
Our Operations
In 2021, we worked to enhance the sustainability of our operations inline with our customers’ and stakeholders’ expectations. Marelli is firmly
committed to reducing its carbon emissions and have set the ambitious
target to achieve carbon neutrality within operations by 2030, while
playing an active role in the transition to zero-emission vehicles. At thesame time, we will continue pursuing efficiency in the use of resources
and reducing our environmental footprint, while ensuring the health andsafety of our employees and contractors by complying with the applicableregulatory requirements and Environment, Health, and Safety (EHS)international standards, in line with our policy.

18

Marelli

Sustainability Report 2021

“Monozukuri (Excellence), meaning the constant pursuit ofperfection, is a value for everyone within the company. We also
have an important role to play in contributing toward a greener
future. We are on the right track to pursue our excellence and be
responsible for achieving our sustainability and efficiency goals. In
2021, Marelli took a significant step to commit to carbon neutrality within ouroperations by 2030. We all, as Marelli people, can make a difference bycontinuously striving to create environmentally-friendly technologies and to
run our business in a more effective and greener way.”
Hiroyuki Ishikawa, Executive Vice President, Head of Manufacturing and Quality

Climate Action
Emission Reduction Initiatives
In 2021, despite the overall increase in energy consumption compared to 2020, the amount of greenhouse gas (GHG) emissions
decreased. In line with our recent efforts, in 2021 we implemented further energy and GHG emission reduction strategies withshort- and medium-term initiatives. The main ones were focused on energy efficiency, transitioning to renewable energy, processoptimization, renovation and upgrading of facilities, and water and energy consumption reduction. For example, in 2021, 10.7% of
total energy consumption was sourced from renewable energy and Marelli’s plants in Spain were powered by 100% green electricity.
In 2021, our GHG emissions were 464,650 tCO2e, 13% from Scope 1 and 87% from Scope 2 (market-based).* Scope 1 emissions in
2021 were 8.7% higher than 2020, as 2020 data was affected by a production stop due to the COVID-19 pandemic.
By 2021, we increased the consumption of renewable energy by 33%, which mainly contributed to achieving the 3.1% reduction
in CO2 emissions.

3.1%

GHG EMISSIONS REDUCTION
ACHIEVED IN 2021

51%

OF OUR ENERGY CONSUMPTION OCCURSAT SITES COMPLIANT WITH ISO 50001

GHG Emissions
KPI

2019

2020

2021

Total GHG emissions (market-based) (tCO2e)563,058

479,568

464,650

GHG Scope 1 emissions (tCO2e)63,92857,231

62,195

GHG Scope 2 emissions (market-based) (tCO2e)499,130

422,337

402,455* A location-based method reflects the average emission intensity of grids on which energy consumption occurs (using mostly grid-average emission factor data). A market-based
method reflects emissions from electricity that companies bought.

Fit for the Future

Marelli19

Illustrated by Christian from Italy

Energy Efficiency Initiatives
We are continuously improving the performance of our operations
by identifying areas for further reducing energy consumption andadopting the best energy-saving practices. Examples of projects
implemented in 2021 in our production processes are:At the Yoshimi plant, Japan (Interior Experience Division),
we installed an ultrasonography camera to identify air leaks in thecompressed air system. This allowed us to detect, locate, andestimate air leakages to develop a maintenance action plan andultimately save energy associated with compressed air production.

In 2021, Chatellerault (France) implemented an energy efficiency
project that replaced old boilers and chillers with new high-efficientequipment, along with modifying and upgrading the control system
to monitor the humidity and temperature conditions that are key forelectronic production. Thanks to this project it has been possible toreduce energy consumption with a CO2 equivalent reduction of
about 88 metric tons (equivalent to 351,535 kilometers driven by anaverage gasoline-powered passenger vehicle*). This project has also
obtained local incentives for its implementation, confirming it was agood proposal identified by the plant.

In Amparo, Brazil (Green Technologies Division), we installed
an automatic shutdown of metallic smoke exhausts to stop
unnecessary consumption during shift exchanges. The plant also
implemented a technology update that replaced engines withmore efficient ones. As a result, the plant saved 158,528
kilowatt-hours (kWh) per year, which is enough to power thewhole plant for 15 days.

In 2021, our total energy consumption was 4,979,327 gigajoules(GJ), of which 78% resulted from indirect energy consumption,
mainly electricity and district heating, and 22% from directenergy consumption (mainly natural gas and liquefied petroleumgas [LPG] consumption). During the reporting year, 10.7% of theoverall energy consumed, i.e., 534,095 GJ, was derived fromrenewable sources. The energy intensity was about 0.14 GJ perhour of production.
To engage employees in our efforts, Marelli ran a one-month
Energy Challenge campaign to coincide with World Environment
Day 2021 on June 5. Production sites located in 21 countries
joined the challenge. By adhering to the challenge, plants
around the world consolidated their ongoing energy efficiency
activities, which included:• Provide training and awareness sessions with team leaders andworkers related to energy consumption of the plant andefficiency of machines.
• Improve communication related to energy efficiency within
the plant through boards, screens, and emailcommunications.
• Focus on meticulous control of facilities and utilities at theplants, such as calibration of heating and cooling systems
according to weather conditions and deactivation ofmachines and equipment during break-time.
• Focus on the controlled use of lighting, air conditioning, andheating during non-production and break-time periods.
* This estimation is based on the United States Environmental Protection Agency’s
Greenhouse Gas Equivalencies Calculator.

Renewable Energy Consumption
KPI
Overall total electricity consumption from renewable sources (GJ)
Total self-generated electricity (GJ)
Total certified purchased electricity (GJ)
20

Marelli

2019

2020

2021

434,565

402,179

534,095

3,527

4,447

4,773

431,038

397,732

529,322

Sustainability Report 2021

Effective Use andReuse of Materials
By 2021, we maintained our commitment to safeguarding
natural resources by implementing eco-friendly and innovative
initiatives. We engaged the entire Company, from plants andcorporate offices to individual employees, in the reductionof environmental impacts from the use of resources.
Marelli’s strategy for this mainly encompasses the:• Eco-design of products; and• Design of products and packaging for easy disassembly
and recycling.

Innovation Compatible With
the Limits of Our Planet
We are eager to make parts for our automotive industry while
minimizing their environmental impact throughout their life
cycle. One of the top requests we receive from many original
equipment manufacturers (OEMs) is to understand the fullscope of our emissions, as well as the emissions related to theparts we produce for each carmaker. In 2021, we started ourjourney assessing our supply chain to build our Scope 3 GHG
inventory and establish our future goals.

As we carry out this exercise, we are learning about
opportunities to be more efficient in our energy consumption
and manufacturing processes that would benefit all ourcustomers. Moreover, the effort is being carried out with ourinnovation process—where all functions are involved—to
allow for long-term impact consideration when a new
product is developed.

Life Cycle Assessment (LCA)
In 2021, Marelli conducted a pilot LCA for one of our bestselling products, intending to develop solutions to decrease
the impact from raw materials and parts. Given the nature ofour business, the products are tailored for each OEM. As aresult, we now have clear guidelines for all businesses thatneed to perform an LCA, either for a customer’s request or tosteer innovation. In addition, we started engaging with the
R&D Engineering and Purchasing teams to adapt our
processes and procedures into a long-term approach called
Life-Cycle-Thinking (LCT), which goes beyond the traditional
focus of a production site and manufacturing processes toinclude environmental, social, and economic impacts of a
product over its entire life cycle. In 2022, other tools andinstruments will be created to ensure environmental,social, and governmental (ESG) criteria will be fully
embedded in our innovation process.

In line with a circular economy approach, during 2021 we increased the reuse of materials (both internallyand externally) to avoid waste generation. In particular:

Fit for the Future

Metal: more than 7,400 metric tons
reused (in particular from the Ryde
Dynamics Division and GreenTechnology Systems Division)

Wood: more than 1,700 metrictons reused (in particular from
Ryde Dynamics Division)

Plastic: more than 2,200 metrictons reused (in particular from theAutomotive Lighting Division andElectronics Systems Division)

Paper and Cardboard: 800 metrictons reused (in particular from
Electronics Systems Division andGreen Technology Systems Division)

Marelli21

Preventing Pollution
At Marelli, we want to minimize our environmental impacts.
Each Marelli site, based on its specific context andenvironmental aspects, defines local procedures to manage
each environmental aspect properly and prevent any
accidental pollution. Each site reports environmental incidents
within our corporate tool for EHS data collection.
In addition, each Marelli site (in line with the corporate
procedure) defines a specific local emergency plan to protect
the environment in case of any accidental releases.

Hazardous and Non-Hazardous
Waste Management
Marelli is committed to the reduction of waste production
and increased recycling of materials (as indicated in the
Marelli EHS Corporate Policy available on Marelli’s website
www.marelli.com/responsible-business).

In 2021, we produced a total of 88,128 metric tons of
non-hazardous and hazardous waste. In absolute terms, theamount of waste generated in 2021 is higher than theprevious year, since production activity in 2020 decreased dueto the COVID-19 pandemic. However, the quantity of waste inweight generated per hour of production decreased by 1.6%
in 2021, as compared to 2020.
As a Company, we also encourage our suppliers to align with
our highest quality standards. In this sense, our waste
management suppliers are carefully selected and shall comply
with all applicable laws in the countries and regions in which
they operate. In addition, Marelli requires all suppliers toaccept our Code of Conduct. Moreover, we carry out several
audits as part of our ISO 14001 certification to ensurecompliance of the waste management treatments.
15%
12,970 metric tons

Our strategy includes a target of a 7% decrease in waste
generated per hour of production by 2024, compared to the2020 baseline. We are also committed to reducing our waste
footprint toward zero waste sent to landfill. In 2021, 85%of our waste was recovered. Only 3% of our waste was sent
to landfills in 2021, 18% less than the previous year. The
remaining waste was disposed of by other methods, such astreatment, incineration, and energy recovery.
A specific example of achieving objectives is at the Automotive
Lighting Bursa (Turkey) site, which reduced the amount ofwaste sent to landfills from 11% in 2020 to 2% in 2021. This
was achieved through a partnership with a supplier that uses
domestic waste to produce bio-methane. Almost 400 metric tonsof waste were diverted from landfills through this partnership.

88,128metric tons

Waste diverted from disposal byrecovery operation

Total hazardous andWaste directed to disposal

non-hazardous waste
generated in 2021

85%
75,158 metric tons
2%

3%

3%

85%
Waste recycled

7%
Total hazardous andnon-hazardous waste
by disposal method
in 2021

Waste disposed of by incineration(with energy recovery)
Waste disposed of by incineration(without energy recovery)
Waste disposed of by landfilling
Waste disposed of by other methods

Case Study
Waste Reduction
Many waste reduction projects have been introduced
since 2020. Some relevant examples are:
1. In 2021, the Italian site at Crevalcore (Powertrain)developed a project to avoid the generation ofaluminum waste. After obtaining all necessary permits(according to local laws and national technicalstandards), aluminum scraps from the melting furnace
were classified as a by-product and were sent to afoundry. This project reduced waste generated byabout 100 metric tons per year.

22

Marelli

2. At the Brazilian site of Contagem (Automotive
Lighting), plastic scraps are ground and sent to acompany for extrusion, after mixing with a specificadditive. The product can then be returned to the
production process. This project, started in December
2021, is expected to reduce plastic waste by about 13
metric tons per year.
3. The Brazilian site at Amparo (Green Technology
Systems) worked to optimize the size of metal
bars/pipes to reduce the metal chips generated
during the cutting process; with about 60 metric tonsof waste avoided per year.

Sustainability Report 2021

Water Conservation
We aim to preserve water resources and reduce the overallwater consumption of our operations. We set specific targets
for a water withdrawal reduction during the reporting period,
aiming to reduce it by 3.5% by 2024, compared to the 2020
baseline. We constantly seek new solutions to reduce ourwater consumption and we actively monitor the quantity ofwater withdrawn and recycled/reused.

In 2021, about 92.3% of our waterneeds were covered by recycling/
reusing water.
In 2021, we implemented several actions at the Company level toimprove water efficiency by reducing the use of water, such as:• Implementing technology and new practices to recycle andreduce water consumption, including adopting more
efficient cooling systems.
• Developing a rainwater harvesting system.
The total amount of water withdrawn in 2021 was 2,506,384 m3,
mainly provided by third-party water utilities (about 76%).
While the total amount of water recycled and reused was
30,067,723 m3. Nevertheless, in 2021, we have experienced anincrease in the total amount of water withdrawal from theprevious year, which is mainly due to increased production
after the pandemic period.

Risks and Opportunities
Related to Water Consumption
As water is key for the Company’s operations, it is fundamental toensure a sufficient quantity and quality of water. In the next 10
years, regulations and physical risks for the use of water are likely
to increase and we intend to be prepared and anticipate thoserisks by taking action.
A water-related risk assessment is performed annually, for all
manufacturing sites included in the environmental sustainability
perimeter and under Marelli’s operational control. Our risk
assessment considers the availability of water. Among different
physical risks to water availability, the increase in water stress has
been considered the most relevant. Therefore, our main
mitigation action is focused on reducing water withdrawal.

Case Study
Water Withdrawal Reduction
In 2021, different projects were implemented to reducewater withdrawal. Project results are continuously monitored,
and best practices are shared among Marelli sites.
A relevant project example in 2021 is the “Water Loop”
project deployed at the Corbetta Electronics’ site in Italy,
which transformed the water circuit from a previously open
circuit to a closed one. This change reduced water
withdrawal by 20,000 m3 in 2021. Thanks to this project, we
expect to save more than 40,000 m3 of water in a full year.

ESG Risk Management
and Opportunities
At Marelli, we integrate risk management processes andmethodologies across the organization to thoroughly assess
and identify ESG risks and opportunities. We implemented an
Enterprise Risk Management (ERM) methodology thatconsiders ESG and climate change-related risks, based on the
ISO 31000 standard, setting up a common approach for risk
assessment and mitigation throughout the organization.
Marelli also engaged with interested internal and external
stakeholders to collect their views on sustainability challenges
that society faces today and identify the priorities that Marelli
should focus on.
We reviewed our risk management plan, considering thepotential financial impacts of climate change on procurement,
manufacturing, and the supply chain.
Fit for the Future

The main climate change-related risks that were identified areboth physical and transitional. Physical threats are mainly
linked to potential changes in rainfall patterns and water
shortages that can affect our plant operations. Transitionalrisks refer to possible upcoming regulatory restrictions on thesale of internal combustion engine (ICE) vehicles.
Intending to improve our Business Continuity resiliency,
Marelli has ongoing assessments in preventing andresponding to potentially disruptive events. In line with thetransition from ICE vehicles to more climate-friendly solutions,
we are developing products dedicated to the e-mobility
market. In addition, we work on integrated mobility systems
within the electric powertrain technology market segment.

Marelli

23

COVID-19 Responses
Marelli operations continued to be affected by the COVID-19 crisis during 2021, similar to the rest of the automotive industry sector.
Our primary concern was to protect and support our employees and the communities in which
we operate.
Weekly reports to Top Management were used to highlight critical situations in different geographies. Our smart working system
continued to be applied whenever possible, to avoid spreading the virus in workplaces.
Since 2020, Marelli established COVID-19 Committees at corporate and regional/country levels to monitor and report on the situation,
as well as act fast when implementing guidelines according to fast-changing local regulations. Furthermore, vaccinations were widely
promoted.

Highlights

JAPAN

INDIA

In Japan, all employees were allowed to take leave to get a
vaccination and to support a family member’s vaccination.
In addition, a monetary support of JPY 3,000 was offered tocover the transportation expenses for employee’s vaccination.

During the outbreak in India (March-April 2021), ourglobal teams worked to provide in-kind support, such as
equipment donations and on-field long-term equipment
installation. As a result, 21 oxygen concentrators were
provided to treat COVID-19 infected colleagues at home. In
addition, working with our partner in Japan, Marelli shipped
24 ventilators and some breathing circuits to hospitals
located near our employees and operations. Some oxygen
concentrators and ventilators were distributed through ourpartner non-governmental organizations (NGOs), the Society
for All Round Development (SARD) and the Basic Research
Education And Development (BREAD) Society. In April, in
collaboration with SARD and the Ernst & Young Foundation,
Marelli donated a mild COVID care center to the Mount
Caramel School in New Delhi. The donation comprised
medical equipment, such as oxygen concentrators andoximeters, and fees for nurses, volunteers, and meals
for patients.

Marelli partnered with the Saitama Association of Corporate
Executives (SACE) to use the headquarters in Saitama City
as a COVID-19 vaccination venue. As a result, approximately
6,000 people from SACE member companies were vaccinated,
including around 800 employees from Marelli.

POLANDIn Poland, Automotive Lighting Sosnowiec provided a localorganization the use of a parking lot to set up a vaccination
hub for Marelli employees and the local community.

In July 2021, a month-long global fundraising campaign
supported the International Committee of the Red Cross(ICRC) COVID-19 recovery fund. This was the first charity
initiative promoted under “One Marelli” as an opportunity for
all employees to support the COVID-19 global response. A
total of EUR 75,000 was collected, EUR 50,000 as a direct
donation by Marelli and EUR 25,000 from more than 1,100
donations by our colleagues worldwide. The donation
contributed to the global pandemic response and virus
spread prevention actions.

24

Marelli

Sustainability Report 2021

Occupational
Health and Safety
Marelli pursues “Zero Injuries” as the top priority in our
Occupational Health and Safety (OH&S) management. Therefore,
it is of utmost importance for us to provide and ensure a healthyand safe working environment for all our employees andworkers who are not employees (such as agency workers andexternal contractors) worldwide.
A corporate-level procedure for hazard identification and ahealth and safety risk assessment was established in 2021.
It defines the methods to identify hazards and assess OH&S
risks. The OH&S risk assessment is immediately updated if
there are changes in the production process or workorganization. This is significant for the health and safety of ourworkers, or in relation to the degree of technological evolution,
prevention, or protection. This is also updated as a result ofsignificant accidents, or when the needs of our healthsurveillance survey are identified. In addition, the Marelli
Manufacturing System (MMS) Health & Safety Book for
manufacturing sites was issued in 2020.

The commitment to consistent
prevention by the Company resulted
in a decreased Lost Time Injuries (LTI)
and first aid injury rate by 17% for
employees and by 50% for agency
workers and external contractors,
compared to 2020.
Marelli’s progress toward “Zero Injuries” is monitored by two
main key performance indicators (KPIs): Lost Time Injuries (LTI)
and Lost Time Injury Frequency Rate (LTIFR). The LTI is thenumber of injuries, which results in lost working time, and the
LTIFR refers to the number of lost time injuries occurred relative
to the total number of hours worked in the reporting year.
In 2021, 81 employee injuries were recorded, of which the
majority (68%) were non-high-consequence LTI. The total
number of injuries recorded for agency workers and external
contractors was 14, of which 57% were high-consequence LTI.
No fatal injuries were recorded in the reporting period.
To pursue the ambitious Zero Injuries vision, a corporate-levelspecific procedure for incident investigation was developed
and adopted in 2021, which applies to all manufacturing andnon-manufacturing sites.

Fit for the Future

To prevent injuries the following additional measures havebeen conducted:• Local management of every site worldwide carried out an
extraordinarily thorough check for unsafe conditions attheir sites, which adds to the routine risk assessment andmitigation processes.
• Business Divisions have intensified the actions to ensurealignment with machinery safety best available techniques
and the most stringent international standards atmanufacturing sites. With the support of externallyapproved consultant experts in machinery safety, allBusiness Divisions started multi-year plans that focus on
upgrading safe conditions of the existing machinery
portfolio, based on priorities defined by the risk assessment.
Furthermore, according to ISO 45001 requirements for the
OH&S management system, standard corporate procedures
have been introduced in 2021. All Marelli sites that werealready ISO 45001-certified were required to align their local
management systems with the corporate procedures by thesecond quarter of 2023. To accelerate the journey to ISO
45001 certification, Marelli launched the MMS Health & Safety
Diagnosis during 2021, a self-diagnosis checklist that allows
sites to monitor their alignment with key requirements. It also
provides a benchmarking tool to compare health and safety
performance with the other sites and identify the winner(s) for
the internal MMS Award.
In 2020, the process for identification and reporting of serious
LTI was not fully and effectively extended to all sites within the
Marelli perimeter. A full extension took place in 2021, withhelp and support from both a procedure to communicate
about serious LTIs and a dedicated Appian-based tool, used not
only for sharing serious LTIs worldwide but also for collecting
evidence of actions implemented at all other Marelli sites toavoid an accident’s recurrence. The consistency of corrective
actions is monitored by the Corporate EHS Team throughfortnightly meetings with the Division and Regional EHS Teams.

Target100%
ISO 45001
OF FACILITIES* CERTIFIEDBY Q2, 2023

*Facilities within the sustainability perimeter

Marelli25

Monozukuri: A Heritage
From Our Culture in Japan
Improving Performance for
Excellence in Monozukuri

The literal translation of Monozukuri is the “making of things”. A
broader meaning encompasses the technological, know-how,and “spirit” of Japan’s manufacturing practices. The “spirit”
includes pride, skill, dedication, and a sincere attitude toward
improving production by pursuing innovation and perfection.

As part of the MMS, we have clear criteria that are reported by
all plants monthly to monitor the manufacturing productivity
and ensure consistent product quality worldwide. Under theoverarching corporate indicator of cost per hour, we monitor
a total of 49 indicators at a global level. We select the most
relevant indicators (12 processes and 8 indicators) to monitor
each plant based on the characteristics and competitivenessof its product and process category. Scrap rate is one of themost important indicators to realize Zero Defects. For thisindicator, we improved an average of 4.9% since 2020 and themost improved ratio recorded for one plant was 63% in 2021.
This monthly monitoring also allows us to share best practices
among plants and business divisions. To encouragecontinuous improvement, every year we present an award to
the highest-ranking plant for each of the 49 indicators. In
2021, we created a new award for the most improved plant, as
compared to the previous year, for each division as anincentive for all plants to improve.

Marelli pursues excellence in Monozukuri through rigorous
management of the quality of our products andmanufacturing process.

Marelli Manufacturing System(MMS): The Integration of Our
Operations All Over the WorldMMS is an essential part of integrating the two companies as“One Marelli”. The system outlines a standard set of processes,
practices, and approaches to foster exceptional performance.
During 2021, we continued integrating our manufacturingsystems, while developing internal quality standards anddiagnosis systems, to achieve our goals of “Zero Defects” andthe “Highest Efficiency”.

Zero Defect and Highest Efficiency
GlobalStandardization

Continually Improving

Global Standardized Manufacturing System• Process definition through standards

1

Engineering
Chain• Application in all global plants

2• Division Process Design Standards• Division Operation Design Standards• Manufacturing KPI definition• Integrated Governance With
Process Launch Management

Standard Improvementand Loss Reduction• Loss & Waste Definition• Supply Chain Management Book
including Diagnosis• Stratification and Prioritization• Maintenance Management Book
including Diagnosis• Genba Kanri (shop floor management)
Book including Diagnosis

4

Marelli

Continuous
Improvement• Global Manufacturing Standards• Planning and Control Standardization

26

3Standard Application

Standard Setting• Division Supply Chain Management
Design Standards

Operation
Chain• Continuous improvement• Standardized Kaizen (continuous
improvement) Methodology• Standard Tools and Training• Feedback Loop
• Best Practice

PeopleDevelopment

Sustainability Report 2021

Commitment to Quality
Marelli’s Quality Policy:
Integrating Our
Goals as One Marelli

Virtual Quality Forum Exhibition

Marelli’s Quality Policy was established in January 2020 torealize “Zero Defects” and provide the highest quality
performance throughout our operations. The policy consistsof three elements:
1. Quality Vision: “Realize Zero Defects to satisfy customers”
2. Quality Mission: Ensure a clear guideline for achieving our
mission to “Provide the world top level quality performancethrough the most effective and efficient processes”
3. Quality Mindset: Principles of behavior to achieve Marelli
quality, available in 24 languages and distributed to all
employees
In 2021, to reinforce awareness of the Quality Policy, we
launched a dedicated e-learning training in eight languages.

Fostering a Quality Mindset
Among Employees
Delivering high-quality products and services to ourcustomers cannot be achieved without our employees, who
aspire to perfection and embrace the spirit of continuous
improvement. Therefore, we actively raise awareness among
employees about our quality excellence and provide various
opportunities to recognize our employees’ work.

Zero
Defects

Fit for the Future

Quality Contests
We maintain and improve employee quality mindset throughquality contests. We held an “Excellence, Best PracticeContest” for employees in manufacturing, where 48 bestpractices were submitted from functions and divisions
worldwide, of which eight received the “Excellent Example”
award. One of the “Excellent Example” best practices was across-functional effort to identify potential warranty issues
during a new model launch, in which the Corporate Quality
Team works closely with plants and suppliers to share
information, identify potential defects early, and take action. In
2021, Marelli expanded its quality contest efforts to include all
office employees by organizing an “Excellence for Zero
Defects Contest”, where all office employees globally wereencouraged to present their ideas for improvement. The bestpractices submitted to the contests are shared with all
employees to provide opportunities to learn from each otherand help get insights.
Each year we receive numerous quality awards from
customers worldwide. In 2021, we received 13 quality awards
from eight customers (See the Achievement Highlights pageto learn more, p.9).

IATF 16949
Certification

41%

100%

* Zero Defects: less than
1 ppm (parts per million)
defect ratio for delivered
parts to customers’ plants* Excluding the new plant (tobe certified in August 2022)

of our plants
achieved in 2021
(8% improvementfrom 2020)

In 2021, the annual “Q (Quality) Forum” was held for the firsttime as a fully virtual exhibition. All employees could
participate, both at any time and from anywhere, while theevent was broadcast live from Japan. The event was sponsoredby Quality, Purchasing, and Business executives, and allowed
each participant to gain insights from best practices forpreventing quality defects.

of Marelli’s plants
are certified to theautomotive industry’s
international quality
management systemstandard

Marelli27

Responsible
Corporate Citizen
We strive to ensure that all interactions with stakeholders and ourrelationships with customers, employees, and the communities weserve, occur in a just and positive way. Therefore, in 2021, we reinforced
policies and processes to comply with and respect local laws in the
countries where we operate, uphold human rights standards, ensure
the environment’s protection, and adhere to our Code of Conduct.
We established the Marelli Code of Conduct, Marelli Ethics and Compliance
Program Charter, and other corporate policies and procedures to ensure
our business operations are transparent and honest. Our Company’s
leaders are accountable for creating a culture of compliance. Regardlessof position or level, the everyday actions of all employees contribute to
the safe and ethical operations of our business.

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Sustainability Report 2021

Corporate Governance
The Board of Marelli Holdings Co., Ltd. is positioned as the Company’s highest decision-making body. The Board delegates the day to
day management to the Group Executive Committee (GEC), via Delegation of Authority (DOA), a document that outlines responsibilities
for key organizational areas of work and provides clear authority for the CEO and the GEC to make decisions on behalf of the Board.
The GEC, chaired by the CEO, acts to make top-level operational decisions.
In 2021, corporate auditors worked together to audit all business related to the Company’s management. In addition, external
auditors conducted accounting audits to verify the appropriateness and legal compliance of accounts and internal controls from an
independent standpoint.

Sustainability Governance
In February 2021, we established theSustainability Governance Structure
Sustainability Committee to accelerate
Marelli Holdings Board
the adoption of sustainability initiatives.
This Committee is an interdisciplinary andSustainability Council
Group Executive Committee
multifunctional group composed of the
Sustainability Committee
Sustainability Team
functions that own our materiality topics.
Category Owners
The Committee implements initiatives totackle sustainability challenges, including
Sustainability Agents
those on carbon neutrality, life cycle
Subcategory Owners
Project Managers
Project Contributors
assessments, diversity and inclusion, andInitiative Owners
Contributors
corporate responsibility.
Additionally, a Sustainability Council was established in April 2021 to act as executive sponsor of the sustainability agenda, and to which the
Sustainability Committee reports. The Board is responsible for decision-making related to the implementation of our sustainability strategy inthe key areas of product, manufacturing, engineering, customer, people, and suppliers. The Council also provides guidance and support for
integrating sustainability into our business and oversees the critical gaps in our sustainability planning. The Council reports on its progress andasks for a final management decision at the GEC, if higher-level operational decision-making is required.

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Marelli29

Responsible Business
Management
Marelli aims to conduct itself as an accountable andresponsible business across our full value chain, as well as
within our own operations. To create long-term value for our
stakeholders, we demand that our partners and suppliers
comply with a set of requirements for conducting businesswith our Company. We also make sure our entire workforce
upholds the Code of Conduct that defines our global
corporate values and culture.

Code of Conduct
The Marelli Code of Conduct specifies the Company’s corevalues of Innovation, Diversity, Collaboration, Sustainability,
and Excellence (Monozukuri), which should be incorporated
into our day-to-day business. The Code, available to ouremployees in 19 languages, reflects who we are as a Company
and ensures consistency with the Universal Declaration of
Human Rights and the International Labour Organization(ILO) Declaration on Fundamental Principles and Rights at
Work. In addition, the Code provides a clear framework for
how we work with all our stakeholders, including customers,
suppliers, communities, governments, and employees.
Supplementing the Code, Marelli also introduced a range ofglobal policies and procedures, including the Marelli Ethics
and Compliance Charter; Conflicts of Interest Policy; Export,
Import and Anti-Boycott Laws Compliance Policy; Anti-Trustand Insider Trading Policies; and Anti-Bribery and AntiCorruption Policy, among others.
As pledged in our Ethics and Compliance Charter, we train our
workforce using accessible education programs so that ourCode and policies are clearly understood and complied withby all. The programs are designed to prevent employees frombeing involved in child labor, slavery, human trafficking,corruption, bribery, and anti-competitive practices. To
supplement the global training rolled out in 2020, we

30

Marellilaunched the competition law training. By the end of 2021, 91%of our office-based employees have already completed thetraining. We also provide awareness training on our AntiCorruption and Anti-Bribery Policy in both video and written
formats, and on audits to control anti-competitive practices.
Meanwhile, our suppliers are also asked to follow the Marelli
Purchase Agreement for all products and services sourced byMarelli. The purchase agreement mandates compliance with
the United Nations principles for international human rights
protection and environmental stewardship.

Whistleblowing Process
At Marelli, how you feel matters. As part of our Code of Conductand other company policies and procedures, our Integrity
Hotline is made available to employees and third parties 24/7
in 19 local languages (marelli.ethicspoint.com). This
anonymous and confidential whistleblowing system empowers
our people to report possible violations of the Code, company
policies, and local laws and regulations. We also encourage
our stakeholders to report suspected violations, such as
discrimination, harassment, or child and forced labor, toensure that Marelli continues to serve as a trusted supplierand member of our community. Any violation of the Code,policies, or procedures may be subject to disciplinary actions.
In 2021, all concerns raised were addressed. For thesubstantiated cases, disciplinary actions were taken (including
termination). We also implemented remediation plans likefeedback interviews, training, and guidance.

Sustainability Report 2021

Risk Management
As part of Corporate Governance, Marelli revised its integrated
Risk Management System, through an Enterprise Risk
Management (ERM) process, including environmental, socialand governance (ESG) risks, based on the ISO 31000 standard.
The goal of this updated system is to create and improve
performance, encourage innovation, and support theachievement of business and ESG objectives.
The assessment methodology relies upon improved assessment
criteria consisting of a revised enterprise-wide Risk Modelorganized in two main areas: (i) strategy setting and execution
risks, and (ii) operational risks. It also introduces enhanced metrics(earnings before interest and taxes [EBIT], free cash flow [FCF],
reputational, operational, ESG) and likelihood, to support ourbusiness operations with a more effective methodology for risk
assessment and opportunities to achieve our sustainable goals.
Climate change is among the ESG risks considered during
Marelli’s risk assessment. In addition to the above mentioned
process, our risk management has a loss prevention
assessment in place at the site level, which evaluates risks
related to hazards, such as flood, wind, and tornados, using
international maps provided by insurance markets (Swiss Re,
Munich Re, FM Global). Each site is then assessed for hazard
exposure risks and the current level of protection. Based on thelevel of risk, a combination of the hazard exposure and level ofprotection, we provide management with mitigating actions.

The primary ESG risk exposure for our business lies in our
supply chain. In 2021, a new function focused on risk
management was included in the Marelli supply chain
structure, providing efficient monitoring and mitigation of risks
through all company levels, and ensuring business continuity.
To mitigate the risk in our supply chain, all global suppliers
should follow the Marelli Purchase Agreement for all products
issued by Marelli, unless otherwise stated in a writtenagreement signed by the Company.
The Internal Control and Risk Management Committee
oversees and supports the risk governance system and internal
controls, ensuring risks are properly addressed and promoting
a risk management culture and integration across theorganization to achieve our organization’s goals and objectives.
We are currently developing artificial intelligence (AI)software to perform risk assessments in line with theAnti-Competition Law, which can potentially identify
contracts that could pose a risk to our business. The
software also monitors corruption, bribery, andinformation security breaches.

Illustrated by Paulinka from Slovakia

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Marelli

31

Information Security
and Data Privacy
According to the Global Risks Report 2022 compiled by theWorld Economic Forum (WEF), 95% of cybersecurity issues arecaused by human error. Therefore, in April 2021, the new
Marelli Information Security Policy was approved by the GEC
and communicated to employees via our internal channels.
This policy defines the integrated information security
management system and security rules for the Company.
Marelli also conducted an extensive security awareness andtraining program in 2021 to help employees recognize
phishing emails, to reduce the exposure to these attacks.
Although the COVID-19 pandemic prevented audit planning,
Marelli accomplished 12 external audits on information security
during 2021, some of which were conducted remotely. The
audits included Trusted Information Security Assessment
Exchange (TISAX*) certification and an ISO 27001 audit.

Cybersecurity of Products
Our goal is to make sure that our products secure ourcustomers’ data and do not expose vulnerabilities that can be
exploited by a cyber-attack. We have developed a robust
framework that ensures the product’s cybersecurity throughout
its entire life cycle. The framework includes clear processes fordesigning, developing, manufacturing, and maintaining our
products, facilities, and control systems.

We ensure that our products are developed and manufactured
in a secure information technology (IT) and operational
technology (OT) environment, and are protected from cyberattacks by our Cybersecurity Management System (CSMS) thataligns with ISO 21434 standards. Our CSMS includes threat
analysis, vulnerability management, incident response, andpenetration test activities. Marelli is working to comply with
United Nations Economic Commission for Europe (UNECE)
regulation R155, by developing a global policy covering the
cybersecurity of products. This policy will be released by June
2022 and will define the CSMS based on the automotive
cybersecurity standards and regulations for vehicle
homologation and cybersecurity requirements. A significant
achievement in 2021 was the positive customer audit of the
CSMS at the Chonburi plant in Thailand, which is the first one tocomply with the new UNECE cybersecurity regulation.

Protection of Data Privacy
We established an Information Security Policy and arecommitted to managing personal information and ensuring
privacy by following all relevant laws and regulations where we
operate. During 2021, we received no complaints about breachesof customer privacy. From 2022 onwards, we will operate
an on-demand whistleblowing system to deal with
network safety, and regulatory and cybersecurity issues.
* TISAX is a requirement by automobile companies for their suppliers and service
providers to ensure information security of their critical information assets,
including necessary data.

Based on our security measures, in 2021, Marelli operations had 17 information
security certifications globally.

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Marelli

Sustainability Report 2021

Sustainable Supply Chain
We build meaningful and strategic relationships with our
suppliers­—from local companies to large multinational
enterprises—always considering our customers’ voices. We
actively partner with environmentally and socially responsible
suppliers who promote the efficient use of natural resources
throughout the lifecycle of products and services, and respect
their workforce and local communities.

Managing Our Supply Chain
Our global suppliers are requested to sign the Marelli Purchase
Agreement, which regulates the business relationship’s frameworkand contains environmental and social clauses that coverconflict minerals, ethics and compliance. We proactively engage
our suppliers in sustainability initiatives through our Supplier
Sustainability Program. On-site audits are conducted atselected suppliers to identify any non-conformance to the
mandatory corporate social responsibility (CSR) requirements.
Based on the latest customer requests, we have beenworking to develop a new integrated suppliers’ questionnaire
to assess ESG impacts, which is scheduled to be sent to
suppliers in 2022. This will help us to develop a carbonneutral roadmap including Scope 3 GHG emissions andevaluating our suppliers’ maturity on this topic.

Supplier Sustainability Program1•

2

Sustainability Assessment
at supplier plant•

Follow-up until concluding

Supplier Sustainability

all critical questions

Self-Assessment Questionnaire:4•

Questionnaire analysis andcontract with the supplier•Maintenance of the Supplier•

Ethics and Compliance•

Environment•

Human Rights•

Energy and CO2•

Health and Safety

Sustainability KPI in the

Marelli Conflict Minerals Policy
Conflict minerals are natural resources of tin, tungsten,tantalum, and gold (3TG) extracted in conflict zones, which
may be linked to human rights abuses and armed groups.
Our suppliers are required to respect the Organisation for
Economic Co-operation and Development (OECD)/Responsible
Minerals Initiative (RMI) guidelines.
Our commitment is reflected in our Code of Conduct and incoherence with it, we implemented the following activities to
identify, assess, and mitigate conflict mineral risks in our
supply chain:• Make the use of conflict minerals key performance indicator(KPI) a criteria for the supplier selection process.
• Require selected suppliers to fill out the Conflict Minerals
Reporting Template (CMRT) or formally state their non-use
of any conflict minerals.
• Track and be attentive to the suppliers’ answers.
• Inform suppliers about conflict mineral issues throughwritten communication and request a corrective action plan.
Annually, we require our suppliers to disclose the source(s) of
any conflict minerals used in their products and comply withapplicable laws and regulations including the European
Regulation on Registration, Evaluation, Authorisation andRestriction of Chemicals (REACH). Furthermore, we request theavailability of related International Material Data System (IMDS)
documentation for each component.
Dedicated email accounts have been created to track ourcommunication with suppliers and customers.
Marelli will continue to engage with suppliers to monitor
their performance, raise awareness to minimize potential
negative impacts, and promote positive initiatives
throughout our supply chain operations.

Supplier Panel database forsupplier selection•3

Identification of suppliers

Automatic submission

to further investigate with

via the Supplier Riska dedicated Sustainability

Management Program

Case Study

Assessment

Replacing Disposal Containers

Procurement Budget Spenton Suppliers by Regions
NAM
21.2%
LATAM
5.3%

Region %

APAC
31.0%

Between Japan and Thailand, Marelli started
replacing disposable wood-derived containers
with returnable and durable containers that canbe stacked higher than disposable ones tomaximize the use of cargo container space. This
enabled us to reduce the use of 20-foot sized
containers by an average of one per month. By
2030, we aim to stop using disposable containers.

EMEA
42.5%
Fit for the Future

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33

Marelli People
In 2021, the journey toward the consolidation and integration of two
companies and cultures continued to be paramount for Marelli. Each
employee is critical to the success of One Marelli and ensuring the rightroles and structures at all levels is critical to building a sustainable Marelli.
In every region and country, employee welfare initiatives are promoted
and monitored by the Human Resources (HR) department, following the
local legislation and the Company’s vision.
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Sustainability Report 2021

Great Place to Work
“Our work to integrate and build One Marelli has been our priority
in 2021. We have a unique opportunity to form a truly global
company by combining the best of two different cultures,and we are making good progress. In 2021, we launched areorganization of our company to become more agile and efficient.
We are empowering people to make decisions at all levels to be flexible forchanging market conditions. We’ve also started to drive diversity and inclusion
by mapping our population to define and implement positive actions in thenear future. We recognize the value of diverse voices and see inclusivity andemployee well-being as key facets of success. While addressing the challenges
posed by integrating processes and systems, we have opened our channels
to communicate with our employees widely and ensured the capacity of ourteams to keep learning. We have significantly increased our hours of training
compared to 2020.
I strongly believe that by fully embracing our values we will make Marelli fit
for the future.”
Sherry Vasa, Executive Vice President, Chief Human Resources Officer

Awards and Recognitions
The awards and recognitions Marelli received testify to ourcommitment of being an employer of choice for our people(Please see list on the Achievement Highlights page, p.9).

Employee Survey
In 2021, we conducted the Great Place to Work global
company-wide survey to gain feedback and measureemployee engagement, satisfaction, and morale.
The survey received responses from 87% of Marelli’s
population, and the results suggest that:• Marelli is a physically safe place to work, and when people
join the organization, they feel welcomed.
• They all understand and embrace Marelli’s Vision, Mission,
Values, and Personality

Fit for the Future• They feel like they are treated fairly, regardless of sexual
orientation, gender, race, or ethnic background.
• Our management supports the goals and objectives of ourCode of Conduct and people feel confident in reporting
compliance concerns without fear of retaliation.
• They can take time off from work when they think it isnecessary, and when they look at what they haveaccomplished, they can feel a sense of pride.
Marelli recognizes that people satisfaction and engagement
surveys are useful for identifying improvement opportunities
to meet the needs and expectations of the entire
organization: this is why we launched the Great Place to Worksurvey in 2021 to drive our actions and future strategy. In
fact, following the survey launch in May, we leveraged theinsights provided by the data to create working groups
within each division and function to address the priorities
raised by the employees in each area. Each working groupthen proposed an action plan to implement in 2022.

Marelli

35

Marelli strives to be an employer of choice as we continue thejourney of consolidation and integration of the companies
and cultures. An ongoing reorganization and rightsizing
program has been underway to make the organization more
fit for the future. Our aim has been to execute the program in
the most socially responsible way possible, ensuring full
support and engagement of our unions and employee
representatives. Our goals for this reorganization are to:• Create an agile environment that embraces change andfosters innovation.
• Ensure a high performing organization where teammembers with diverse backgrounds can turn their fullpotential into an outstanding performance.

Career Initiatives
Marelli has a transparent recruitment process andcommunicates its details to all candidates. We have
implemented various initiatives, from the recruitment process
to employee management, to attract global talents andinspire our employees to strive for more, such as:• Comprehensive recruiting kit: the recruiting kit provides
individual talents and universities with a clear understandingof Marelli’s history, core values, mission, business activities,
and sustainable approach to our stakeholders.
• A global mentorship program in Automotive Lighting &Sensing Technologies Division: through the Performance
Evaluation Process (PEP), the program targets talents of allages who plan to take important steps in their career.

• Cultivate an inclusive culture that values teamwork,
collaboration, and transparency.
• Foster a world-class customer experience and a sense ofsocial responsibility to build sustainable success within our
teams and business.

• Internal job posting program: the program started in the
Italian offices, allowing our employees to explore career
opportunities within the Company.
• Annual CEO Excellence Award: an award targeting groupsof employees involved in important projects or activities
that made outstanding contributions to the Company. The
award aims to cultivate Marelli Values and a performancebased culture throughout the Company.

Great Place to Work 2021 Survey Results

87%

84%

RESPONSE RATE

77%

OF THE RESPONDENTS BELIEVE THEY
ARE TREATED FAIRLY REGARDLESS OF
THEIR SEXUAL ORIENTATIONOF RESPONDENTS FEEL
WELCOME WHEN THEY
JOIN THE ORGANIZATION

Trust Index© the model and the 5 dimensions
Overall results

62%
61%

36

Marelli“Taking everything
into account. I
would say thisis a great place
to work.”

Trust Index©

Results per dimension

60%

62%

60%

Two-Way Communication

EquityIntimacyManagerial Competence

Impartiality

Hospitality

Integrity

JusticeCommunity

59%

63%

Professional Support

Personal Job

Credibility

Respect

Fairness

Camaraderie

Pride

Collaboration

Team

Caring

Corporate Image

Sustainability Report 2021

Employee Training
and Development
Since June 2020, Marelli has been implementing a new common framework to further integrate capacity building activities. In 2021, we
provided 444,199 hours of training to our employees based on the new framework, an increase of 11% compared to 2020.
Marelli started working on talent management and reviews to evaluate the potential of our employees. Individual development goals,
along with qualitative and quantitative targets aligned with company objectives, are set each year, and employees are assessed upon
their performance. We are reviewing our career and succession plans, and the onboarding program for new employees. In 2021,
100% of employees received feedback and concluded the performance evaluation on time.

9,857

444,199

HOURS OF TRAINING
ON MANUFACTURING
MANAGEMENT SYSTEMHOURS OF TRAINING

83,397

11%

HOURS OF HEALTH& SAFETY TRAINING

INCREASE IN HOURS OF TRAININGPER EMPLOYEE (VS. 2020)

Marelli’s Training Pillars
Management Development

Talent Development

Behavioral and Soft Skills

To support managers in gaining
and training the right skills toimprove performance and achieve
excellence

To boost the growth of talented
employees who are the mostsuitable to feed our succession
pipeline

To enhance our people’s ability toalign with our behaviors and toreach their goals, improving theiroverall performance

Functional andTechnical Specialties

Business Skills andCross Cultural Training

Diversity and Inclusion

To develop a specific skill or
knowledge related to a job family
or function

To help our employees perform
well in their role and communicate
effectively with international
audiences

Fit for the Future

To create a working environmentand culture where all our
employees can thrive and perform
at their best

Marelli

37

Diversity and Inclusion
Embracing diversity is a cornerstone of any successfulorganization—especially for global companies like Marelli.
That is why Marelli has embraced diversity as a core value fromthe very beginning. We want everyone in our Company to feel
respected, treated fairly, and comfortable being themselvesat work. We recognize the value of diverse voices and see
inclusivity and employee well-being as key facets of success.
In June 2021, a group of colleagues passionate about
diversity formed a Diversity and Inclusion (D&I) Team.
Throughout 2021, this team focused on assessing ourCompany’s data to understand how Marelli stands in termsof D&I, and to define the next steps and direction we shouldtake in the coming years. The team also worked to define
what D&I means to our Company and how to engage all our
people when driving changes.
As a result, a medium to long-term plan has been defined.
The plan will be implemented in 2022 which focuses on
actions to develop diverse talents within Marelli, throughsponsorships and mentorship programs carried out by
our executive leaders.

The D&I Team has planned a Diversity Month in 2022 to markthe starting point for dedicated actions. Its agenda includes
awareness campaigns, training courses, local roundtables,
webinars, and much more, intending to bring everyone on
board for this necessary process.
Marelli employees have many different social and cultural
backgrounds as a global company. As stated in our Code of
Conduct, we do not tolerate any activity that creates anintimidating, discriminatory, demeaning, or offensive work
environment. The Marelli Integrity Hotline is available for all
internal and external stakeholders to report anonymously any
case of discrimination and/or harassment.
Marelli also aims to attract and retain a diverse workforce
through our recruitment process. For any vacant job positionin our Company, it is always recommended to include diverse
candidates in both the internal and external selection process.
Our proactive measures to prevent discrimination include
conducting unconscious bias and recruiting skills training forour staff. The final objective is to create a community
committed to driving diversity both locally and actively
involving top management.

Illustrated by Huanxin from China

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Marelli

Sustainability Report 2021

Fit for the Future

Marelli39

Employee Well-Being
Employee Benefits and Retention Initiatives
Benefits provide employees with value beyond their salary incentives and can make up a meaningful part of the total remuneration
package. Marelli offers a competitive range of benefits, normally available to all full-time employees and, in many countries, also topart-time or temporary employees. Benefits differ according to an individual’s level, country of employment, and local policies. Marelli
supports equitable choices for maternity, paternity, and adoption benefits, which help employees balance parental responsibilities andtheir careers.

Marelli Employees Worldwide Eligible for Benefits
65%

63%

65%

60%
45%

40%

40%
30%

Supplementary
retirement plans

Company-provided
health plans

Life insurance

Financial support
for disability

Employee cafeteria
or lunch vouchers

Childcare services

Wellness andnutrition programs

Gym/fitness
services

While labor law requirements may vary from country to country, parental leave is provided to all employees to the extent requiredby local regulations. In addition, Marelli is committed to supporting employees around the world to work and perform in a safe andhealthy environment. Here are some examples:Japan
The Company helps employees throughout various life stages.
For employees with children, Marelli provides Child Care
Leave, Shorter Working Hours to Care for Children, andNursing Care Leave Schemes. The Company offers a Child
Education Loan that covers the costs of enrolling a child inhigh school or higher education. A property accumulation
savings system was established to help employees save forhousing or other purposes. Employees who need to take careof family members can use the Family Care Leave Scheme.
South America
In February 2021, Marelli South America launched the VIVA+
Program to help employees find physical and mental stability
by informing, raising awareness, and motivating them on
health and well-being through monthly communications. The
topics covered health issues of importance in the region, suchas hypertension, obesity, diabetes, and hepatitis.
Czech Republic
Retired employees receive a reward to commemorate theircontribution to the Company. Accident and death insurance
is provided to some employees, including executives andprofessionals. Once a year, the Company holds a healthweek, when employees can go to seminars, massages, or
medical checkups.

40

MarelliUK
All employees are entitled to private medical care. The
Company provides medical screening for identified employees
and has a well-being calendar focused on several areas ofphysical and mental well-being. On certain days throughout
the calendar year, the company offers well-being clinics that
employees can attend with the Company’s provider.
PolandThe Company provides life insurance, combined withhealthcare, to all employees. It also provides a cash reward
after five years of service and for each fifth anniversary after
that. Service awards are given to all employees for recognitionof service on their employment anniversary date. The Company
holds a contract with a fitness club and employees can pay fora sports subscription to the club and receive a discount.
Summer camps and holiday gifts are offered to employees,
and the Company co-finances green school activities.
RussiaAn online health risk assessment is provided regularly, and theCompany has gym facilities available for employee use. The
Company also gives Service or Jubilee Awards for employees
who work with them for more than 10, 15, or 20 years.

Sustainability Report 2021

Human Rights
In July 2021, Marelli’s Human Rights Policy was establishedto promote our respect of human rights—a non-negotiable
and fundamental value of our Company. The Policy was
implemented in 2021 with the aim to manage and reduce
potential risks of human rights violations in our operations andour supply chain, and was communicated to 54,058 employees
across our international and socially diverse locations. The
Code of Conduct, which is aligned with internationalguidelines, including human rights, is shared with all the
stakeholders. Its acceptance from suppliers is also tracked.

We have provided 10,382 hours of
training on human rights during2021, as part of the Code of
Conduct training.

Human Rights Policy
The Human Rights Policy constitutes our commitment torespect internationally recognized human rights standards.
We incorporated the standards relevant to our operations,which includes, but are not limited to, the UN International
Bill of Human Rights (the Universal Declaration of Human
Rights, International Covenants on Human Rights), theInternational Labour Organization (ILO) Declaration on
Fundamental Principles and Rights of Labour, the UN Guiding
Principles on Business and Human Rights, the UN Global
Compact, and Children’s Rights and Business Principles.
Where national laws and international human rights
standards differ, we will adhere to the national law, while
seeking ways to respect fundamental human rights
to the greatest extent possible.

This was an increase of 274% compared with the previous
year (details in the box below). A new, global online training
will be launched in 2022 to ensure that our employees
acknowledge, understand, and use the Policy in our
day-to-day operations.

The Human Rights Policy consistsof the following principles:

We continue to engage with suppliers to respect humanrights by including human rights clauses in the purchaseagreement or undergoing a human rights screening.

• Freedom of association• No discrimination• No harassment• No child labor• Opposition to forced labor, humantrafficking, and any form of slavery• No retaliation

Hours of Training on Human Rights as
Part of the Code of Conduct Training
2019

3,378
2020

2,779
2021

10,382

Fit for the Future• Compliance with all applicable working laws
on working hours, benefits, and wages• Minimize or eliminate possible negative
impacts on the environment, andoccupational health and safety• Use the principles outlined in this Policy andthe Marelli Code of Conduct as criteria for
selecting suppliers, other business partners,
and all third parties• Commitment to respecting the rights oflocal committees; protecting their culturaland natural heritage, local traditions, andcustoms, and contributing to theirrealization• Respect the right to privacy of all
stakeholders and ensure adequate security
for interested parties concerned with thepersonal data processing operations

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41

Fair Labor Conditions
Our commitment to human rights covers our actions that
ensure all our employees are working under fair labor
conditions. We strive to be transparent with employees,
providing them with details on the remuneration system. We
also share the bonus scheme related to our annual company
performance. In our 2021 Great Place to Work survey, 88% of
the surveyed employees affirmed that they are being treatedfairly in their workplace, regardless of their race, ethnic origin,or other aspects. Of our employees, 80% of them agreed thatthey can take time off from work when necessary. Both
percentages are 15% and 10% higher, respectively, than thebenchmark in the manufacturing industry.

Collective Bargaining
Agreements
Under its Human Rights Policy, Marelli recognizes the right of
our employees to freely form or take part in trade unions orother organizations aimed at defending and promoting theirinterests, aligning with local laws. Collective agreements cover
topics such as employees’ health and safety (the provision ofprotective clothing, compensation in case of injury, etc.),
working conditions (wages, working time, flexibility schemes,
vacation days, etc.), and training (training opportunities, theavailability of funds for training, etc.), as well as discriminationand harassment. As of December 31, 2021, collective
bargaining agreements covered 77.4% of Marelli’s surveyed

42

Marelliemployees, who made up 96.7% of the global headcount. Of
the employees not covered by such agreements, more than
98% benefit from better conditions than the minimum
requirements by law.
Marelli qualifies as a European community-scale group ofundertakings and is therefore subject to regulations designed toensure employees’ right to information and consultation throughthe establishment of a European Works Council (EWC). To thisend, in 2021 we continued the activities for establishing theSpecial Negotiating Body (SNB) in compliance with the Italian law
transposing EU Directive 2009/38/EC. The SNB will have the taskof determining, with the central management, by writtenagreement, the scope, composition, functions, and term of officeof the EWC. The preliminary meeting with the representatives of
the trade unions involved in the process is expected in 2022.

Minimum Notice Period
for Operational Changes
Marelli companies comply with EU Directive 2001/23/EC that
stipulates mandatory information and consultation procedureswith employee representatives in advance of a transfer of anundertaking or business, or if part of an undertaking or
business affected by a legal transfer or merger.

Sustainability Report 2021

JapanIn June 2021, 23 employees at the Fukushima plant participated in a gutter cleanup activity to prevent the outflow of garbage to the Sugita
River and to protect the environment for small animals living in the plant area.

Social Contributions
Marelli commits to active involvement in developing local communities where our employees live and work. Our social responsibility
programs continue to engage with and support our key communities both directly and indirectly through the various organizations
that we support.
Marelli not only works to support the society around its facilities but also through a larger geographical spread across the countries it
operates in. Its corporate social responsibility (CSR) projects are focused in areas of education, skill development, and disaster
response. Through its non-governmental organization (NGO) implementation partners, Marelli helps improve the quality of life byproviding primary and secondary education, employability, and infrastructure support. While strategizing the implementation of these
activities, we constantly try to leverage our capabilities and expertise for the development of both the community and automotive
industry. It also considers location-specific and business-specific concerns and requirements while implementing community
development initiatives.

Fit for the Future

Marelli

43

COVID-19 Response
In response to the COVID-19
pandemic, Marelli organized aninternal fundraising campaign tosupport the International Committeeof the Red Cross (ICRC). (See p.24 formore details).

China
Marelli Electronics Systems
employees at Guangzhou plantparticipated in “Give Hope GiveLove” blood donation activity andreceived the recognition for being“Warm-blooded Anti-epidemic
Pioneer” by Guangzhou Huadu
government.

In July 2021, in cooperation with Guangzhou
local government which supports poverty
alleviation activities in Yangshan County,
Qingyuan City, the company’s labor union
purchased 900 boxes of local Jingbao pears.

44

Marelli

In November 2021, Marelli participated in the “Qinghai Mutual Consumption
to Help Farmers” project led by the Wuxi National Hi-tech Industry Development
Zone. Our colleagues at the Wuxi plant sold more than 135 kilograms of potatoes
on behalf of farmers.

Sustainability Report 2021

MexicoMarelli joined a local COVID-19
vaccination campaign withother automotive companies
and the local government inAguascalientes City. Eachcompany lent its facilities forthe employees’ vaccination.

Marelli collected plastic
caps and donated them to achildren’s cancer institution.
The income generated fromselling the caps is used tobuy anti-cancer medicine.

50 team members at Marelli’s San
Francisco and Aguascalientes
plants sponsored a total of 70
children at the Dulce Refugio andMaria Auxiliadora Children’s
Homes, providing them withholiday gifts. Others donated gifts
for 35 children at the Margarita
Gomez Palacio Kindergarten in
the community of El Llano,
Aguascalientes.

Fit for the Future

Marelli

45

IndiaIn partnership with the
Bosco Technical Training
Society, Marelli supports skill
development programs,
including a technical training
for trainees working on
machines.

Scholarships to over 1,100
students for primary andsecondary education, andfor pursuing vocational
professional courses.

Installation of a 500 liters per minute(30 m³/hour) oxygen gas plant at the Indian
Spinal Injuries Centre (ISIC) Hospital – partof our supplier sustainability requests from
Maruti Suzuki and COVID-19 response
preparation.

Donation for
construction andfurnishing of the
New Martin
Haward Block at
Gairatpur Baas
Panchayat School
run by our NGO
partner Baas
Educational Trust.
Joint CSR project with HP India, a technologically-equippedschool bus to enhance learning, implemented in 10
schools by the Society for All Round Development (SARD).

46

Marelli

Sustainability Report 2021

United States
In Sanford, North Carolina, the team collectedclothing during May 2021 and donated it totheir local Salvation Army. They packaged allitems in reusable Marelli-branded tote bags fortheir donation.

The Interiors Team in Southfield, Michigan,“adopted” a family from the local branch of acharity that supports low-income families bybuilding affordable homes. They gathered gifts
for the family based on their wish list anddropped them off in time to be opened for theholiday season.

In July 2021, members of the Automotive Lighting
Team in Pulaski, Tennessee, sponsored a pizza party
for the Boys and Girls Club of Giles County, anorganization that provides resources and childcare forlow-income families.

United Kingdom
Apprentices recruited from Sunderland
College are undertaking a five-year programat Marelli to develop their skills in various
technical fields.

Fit for the Future

Marelli partners with Sunderland Area Parent Support (SAPS), a local city charity
which helps families affected by social exclusion. Marelli employees granted over
300 wishes to families who would otherwise have gone without over the Christmas
holiday period. Employees made cash donations, bought gifts and collected fooditems to support the cause.

Marelli47

Sustainability Data
Environmental Data[1]
GRI
302-1

KPI

UNIT

2019

2020

2021

Total energy consumption

GJ-

4,711,855

4,979,327

Direct energy consumption

GJ-

1,002,278

1,087,520

of which natural gas

GJ-

859,941

916,992of which LPG (liquefied petroleum gas)

GJ-

116,210

143,359of which gasoil

GJ

-

3,734

4,621

of other fuel (heavy oil, kerosene, light diesel oil)GJ-

17,946

17,774of which total electricity consumption self-generated
from renewable sources

GJ

-

4,447

4,773

Indirect energy consumption

GJ-

3,709,577

3,891,807

of which electricity from non-renewable sources

GJ-

3,263,316

3,319,569

of which total purchased electricity from certified
renewable sources

GJ-

397,732

529,322of which heat (district heating)

GJ-

45,03140,362of which cold water

GJ

-

272

261

of which compressed air

GJ

-

3,226

2,293

Energy intensity

GJ / kEuro

-

0.45

0.47

Total greenhouse gas (GHG) emissions(location-based)

metric tonsof CO2 eq

546,348472,651

463,392

Total greenhouse gas (GHG) emissions(market-based)

metric tonsof CO2 eq

563,058

479,568

464,650305-1

GHG emissions: Scope 1[2]metric tonsof CO2 eq

63,92857,231

62,195305-2

GHG emissions: Scope 2 (location-based)[3]metric tonsof CO2 eq

482,420

415,420

401,197

GHG emissions: Scope 2 (market-based)[4]metric tonsof CO2 eq499,130

422,337

402,455

tCO2eq / kEuro

-

0.05

0.04

metric tons-

129.93138.05of which NOX

metric tons-

120.98130.01of which SOX

metric tons

-

8.96

8.03

302-3

305-4

Emission intensity

305-7

Other significant air emissions

1 The baseline of GHG emissions is 2019, while the baseline for all the other environmental data is 2020.
2 The Scope 1 GHG emissions reported use the emissions factors from in Table 2.2 of the IPCC Guidelines for National Greenhouse Gas Inventories, 2006. The coefficients for theother indirect energy consumption (e.g., cooling, heating, compressed air) are calculated considering the “generation mix” or “recipe” used by the supplier to generate thesupplied energy vector. If the supplier cannot disclose the “generation mix” of a specific energy vector, historical data is used.
3 Scope 2 GHG emissions related to the consumption of electricity are calculated according to the location-based approach, using the emission factors reported by theInternational Energy Agency (IEA), Emissions from Fuel Combustion.
4 Scope 2 GHG emissions related to the consumption of electricity are calculated according to the market-based approach, using the emission factors reported by the IEA,
Emissions from Fuel Combustion for extra-EU countries, while and AIB Residual Mixes 2019 and 2020 emission factors for countries included in the EU zone.

48

Marelli

Sustainability Report 2021

GRI

KPI

UNIT

2019

2020

2021

303-3

Water withdrawal[1]m3-2,454,032

2,506,384

m3-

66,713

104,647

%

-

0.07

0.08

3

m

-

653,685499,263

%

-

0

0

m

-

1,733,634

1,902,475

of which surface waterof which from water stressed areaof which groundwaterof which from water stressed areaof which third party waterof which from water stressed area
303-4

%

-

34

35

Water discharges[2]m3-

1,575,911

1,492,573

to surface waterm3-

232,693240,021

%

-

0

0

3

m

-

1,343,218

1,252,552

%

-

21

27

Total waste

metric tons-

78,564

88,128

Total hazardous waste

metric tons

-

5,338

6,049

Total non-hazardous waste

metric tons-

73,227

82,079Waste diverted from disposal

metric tons-

67,26475,159Total hazardous wasteof which to water stressed area
to third party waterof which to water stressed area
306-3

306-4

306-5

3

metric tons

-

1,699

1,660

of which sent to recycling

metric tons

-

1,699

1,660

of which sent to other recovery operations

metric tons

-

0

0

Total non-hazardous waste

metric tons-

65,56573,499of which sent to recycling

metric tons-

65,56573,499of which sent to other recovery operations

metric tons

-

0

0

Waste directed to disposal

metric tons-

11,30012,970Total hazardous waste

metric tons

-

3,638

4,389

of which sent to incineration(with energy recovery)

metric tons

-

1,562

2,103

of which sent to incineration(without energy recovery)

metric tons

-

345

745

Landfilling

metric tons

-

14

19

Other disposal options

metric tons

-

1,718

1,522

Total non-hazardous waste

metric tons

-

7,662

8,581

of which sent to incineration(with energy recovery)

metric tons

-

2,811

3,888

of which sent to incineration(without energy recovery)

metric tons

-

493

646

Landfilling

metric tons

-

2,834

2,615

Other disposal options

metric tons

-

1,524

1,431

1 In general, water stressed areas (using Aqueduct tool) are within China, India, Italy, Mexico, Morocco, Romania, and Thailand.
Restatement of environmental, and occupational health and safety data has been done for 2019 (GHG emissions only) and 2020 data because:· Data of the sites that were closed or are no longer under control of Marelli have been removed from the perimeter.
· 2021 data of new sites entered in the perimeter from 2021 have been added to 2020 data.
2 Marelli does not discharge any waste water to groundwater and seawater.

Fit for the Future

Marelli49

Occupational Health & Safety Data[1]
GRI

KPI

403-9

Employees
Number of injuries

UNIT

2019

2020

2021

number-95

81

of which fatal injuries

number-1

0

of which high consequences loss time
injuries (LTI)

number-11

26

of which LTI

number-83

55

Number of first aid (FA) received

number

-

476

410

Number of commuting injuries

number

-

116

135

Rate of total LTI(including high consequences LTI)

(Total LTI/
Worked hours)
x 1,000,000

-

1.052

0.87

Rate of fatalities as a result of work-related
injury(Fatal injuries /Worked hours)
x 1,000,000

-

0.011

0

Rate of high-consequence work-related
injuries (excluding fatalities)(High
consequences
LTI / Worked
hours)
x 1,000,000

-

0.12

0.28

Rate of recordable work-related injuries(Total LTI[2]+FA)/Worked hours
x 1,000,000

-

6.31

5.27

hours

-

90,285,804

93,161,872

number-10

14

of which fatal injuries

number-00

of which high consequences LTI

number-1

8

of which LTI

number-9

6

number-59

29(Total LTI/

-

0.76

0.84

Total worked hours
Workers who are not employees[3]

Number of injuries

Number of FA received
Rate of total LTI(including high consequences LTI)

Worked hours)
x 1,000,000

Rate of fatalities as a result ofwork-related injury(Fatal injuries /Worked hours)
x 1,000,000

-

0

0

Rate of high-consequence work-related
injuries (excluding fatalities)(High
consequences
LTI / Worked
hours)
x 1,000,000

-

0.08

0.48

Rate of recordable work-related injuries(Total LTI[2]+FA)

-

5.22

2.59

/Worked hours
x 1,000,000
403-10(partial)

Total worked hours

hours

-

13,216,374

16,631,771

Number of recordable work-related illhealth cases

number-2

6

Employees who had medical check-up

number

-31,75139,3591 The baseline for Occupational Health & Safety data is 2020.
2 This includes high consequences loss time injuries.
3 Workers who are not employees include both agency workers and external contractors.

50

Marelli

Sustainability Report 2021

Training Data[1]
GRI

KPI

UNIT

2019

2020

2021

404-1

Training
hours

605,813429,122444,199

hours

130,343

101,490

83,397

Hours of training per employee

hours /
employee

10.05

7.39

8.22

Hours of training per woman

hours /
employee

8.35

7.57

5.99

Hours of training per man

hours /
employee

6.37

8.24

9.13

Hours of training per “other” employee

hours /
employee

not available

1.33[2]0

Hours of training per white collar employee

hours /
employee

15.66

8.74

11.63

Hours of training per blue collar employee

hours /
employee

6.84

5.41

4.88

Total training hours related to humanrights policies or procedures concerning
human rights aspects

hours

3,378

2,779

10,382

Number of employees trained in humanrights policies, etc.

number

6,533

6,234

9,818

Percentage of employees trained in humanrights policies, etc.

%

11

11

18

Percentage of employees receiving
regular performance and careerdevelopment reviews

%

45

60

63

of which managers

%

91

88

100

of which white collar employees

%

85

89

96

Total training hours provided to employeesof which health and safety training

412-2

404-3

of which blue collar employees

%

20

42

45

of which women

%

44

70

64

of which men

%

51

65

63

1 Statistics on training carried out in Korea and Malaysia are unavailable.
2 Employees working in Mexico and the United States for whom gender information is unavailable for 2020.

Fit for the Future

Marelli51

Human Resources Data
GRI

KPI

102-8

Total number of employees

UNIT

2019

2020

2021

number

60,28758,07754,058of which women

number15,128

14,522

15,702of which men

number39,26937,83738,356of which “other”[1]number

5,890

5,718

0

number

4,842

5,512

4,202

Number of permanent contracts

number

57,87555,75551,832

Number of temporary contracts

number

2,412

2,322

2,226

of which women

permanent

14,26013,73814,908

temporary

868

784

794

of which men

permanent

37,73836,37636,294

temporary

1,531

1,461

1,432

permanent

5,877

5,641

0

Number of workers(interns, work agencies workers)of which “other”[1]of which from EMEA
of which from APAC
of which from NAM
of which from LATAM
Number of full-time contracts

temporary

13

77

0

permanent

21,757

20,993

20,299temporary

800

753

804

permanent

18,40916,943

13,946

temporary

1,483

1,232

669

permanent

12,95013,17912,936

temporary

17

80

463

permanent

4,759

4,640

4,651

temporary

112

257

290

number

47,29457,60853,621of which women

number12,321

14,181

15,363of which men

number33,10537,71838,258of which “other”[1]number

1,868

5,709

0

number12,993469

437

Number of part-time contractsof which women

number

2,807

341

339

of which men

number

6,164

119

98

number

4,022

9

0

%

64.7

70.0

77.4

number

7,155

7,349

11,493

%

12

13

21

of which < 30 years oldnumber

4,035

3,011

5,785

%

30

27

49

of which 30 ≤ age ≤ 50 years oldnumber

2,886

3,662

4,808

%

8

10

15

number

234

676

900

%

2

6

9

of which “other”[1]

102-41

Percentage of total employees coveredby collective bargaining agreements

401-1[2]New hires
Hiring rate (total)[3]of which > 50 years old

1 Employees working in Mexico and the United States for whom gender information is unavailable for 2019 and 2020.
2 Data regarding only permanent employees.
3 Hiring rate is calculated as the number of new employees with a permanent contract hired during the year compared to the total number of Company employees with apermanent contract on December 31 of the reporting period.

52

Marelli

Sustainability Report 2021

GRI

KPI

401-1

of which womenof which menof which “other”[1]

Leavers

2019

2020

2021

2,385

2,019

4,247

%

17

15

28

number

4,664

4,706

7,237

%

12

13

20

number

106

624

9[3]

%

2

11

Not available

number

10,87910,096

15,512

%

18

17

29

of which < 30 years oldnumber

4,136

2,845

5,150

%

31

25

43

of which 30 ≤ age ≤ 50 years oldnumber

5,192

5,568

8,091

%

15

16

25

of which > 50 years oldnumber

1,551

1,683

2,271

%

13

15

23

of which women

number

3,533

2,665

4,803

%

25

19

32

number

7,216

6,393

9,903

%

19

18

27

number130

1,038

806[2]%

218

Not available

Turnover rate (total)[2]of which menof which “other”
405-1

UNIT
number[1]

Total number of managers

number

554

598

650

of which women

number47

47

70

of which men

number

461

513

580

of which “other”

number46

38

0

of which < 30 years oldnumber1

1

1

of which 30 ≤ age ≤ 50 years oldnumber

252

211

266

of which > 50 years oldnumber

301

386

383

[1]

Total number of white collar employees

number

21,996

21,60918,607of which women

number

4,999

4,559

4,648

of which men

number

16,071

15,10913,959of which “other”

number

926

1,941

0

of which < 30 years oldnumber

4,126

3,353

3,205

of which 30 ≤ age ≤ 50 years oldnumber13,24313,804

11,675of which > 50 years oldnumber

4,627

4,452

3,727

[1]

Total number of blue collar employees

number

37,73735,87034,801of which women

number

12,005

9,916

10,984of which men

number

23,76622,21523,817of which “other”

number

1,966

3,739

0

of which < 30 years oldnumber

9,275

7,886

8,676

of which 30 ≤ age ≤ 50 years oldnumber

21,61321,656

20,307of which > 50 years oldnumber

6,849

6,328

5,818

[1]

1 Employees working in Mexico and the United States for whom gender information is unavailable for 2019 and 2020.
2 Turnover rate is calculated as the number of employees with a permanent contract who left the Company during the year compared to the number of Company employees witha permanent contract on December 31 of the reporting period.
3 In December 2021, the gender of each employee has been recorded worldwide, therefore the gender of employees who left the company before December 2021 is unavailable
and defined as “other”.

Fit for the Future

Marelli53

Supply Chain Data
GRI

KPI

UNIT

2019

2020

2021

308-2 /
414-2

Suppliers assessed for social andenvironmental impacts[1]number823

827

827[2]

Suppliers identified as having significant
actual and potential negative social andenvironmental impacts

number

448

448

425

of which improvements were agreed
upon as a result of assessment

number

383

383

389

%

85

85

92

of which relationships were terminated asa result of assessment

number

1

0

0

%

0.22

0

0

%

100

100

100[3]

412-3

Percentage of significant investment
agreements and contracts that include
human rights clauses or that underwent
human rights screening

204-1

Local procurement
EMEA

%

40.8

32.5

42.5

APAC

%

30.1

42.9

31

NAM

%

24.7

20.8

21.2

LATAM

%

4.5

3.8

5.3

UNIT

2019

2020

2021

hours /
employee

5.5

4.5

11.5

Information Security Data
GRI

KPI

Non GRI

Hours of training provided to employees
on information security

1 The social aspects assessed include ethics and compliance.
2 No new assessments have been performed on suppliers.
3 100% of suppliers received the request to accept the Marelli Code of Conduct. In 2021, among the 2,607 active suppliers identified for direct materials, 1,247 have accepted andthe rest are under discussion.

The front cover and next page illustration was drawn by Siwannara from Thailand.
Marelli Thailand organized an internal children drawing competition for this report. The drawing on the front page was a winner of thecompetition.
The winner commented “Our world is constantly evolving but we must live in harmony with nature sustainably. “Save Earth, Save Life” isthe concept of the drawing. By cooperating to save the world in every way of our life and not to destroy the environment, we canrealize a better future for us all and the environment.
We thank to all the children who illustrated this report. Thank you to all our employees for the contribution.

54

Marelli

Sustainability Report 2021

About This Report
Reporting Period and Scope

Fit for the FutureThis document is the third edition of the Marelli Sustainability
Report (“this Report”). This Report covers the period fromJanuary 1, 2021 to December 31, 2021 (the “reporting period”)
and captures Marelli’s sustainability achievements in thereporting period. The reporting scope for social and humanresources data includes all Marelli operations and consolidated
companies, whereas the environmental data covers Marelli’s
sustainability perimeter, where we have the control, meaning
ownership, direct or indirect, of more than 50% of the voting
rights in a legal entity or the power to appoint or elect amajority of the directors of a legal entity, or the power to direct
the management of a legal entity.

This year’s report theme is Fit for the Future. It shows how
Marelli takes action and makes commitments now that will
positively impact our future. The illustrations are all made bychildren connected to our employees around the world. Theyshow their perspective of Marelli and how we should be fit for
their future.

This Report has been prepared considering the GRI Standards.
We are committed to quality reporting and have started
integrating the 2021 version of the Standards (which has aneffective date of January 1, 2023). Although the automotive
industry standard is not yet published under the GRI Standards,
we are anticipating and preparing for its development.

Publication Date: June 2022

Forward-Looking Statements
This Report contains forward-looking statements. Please beaware that actual results may differ due to various factors.

For further information, contact us at
sustainability@marelli.com© Marelli 2022
Image credits: p.24 & p.44 top two images: © ICRC

Fit for the Future

Marelli55

marelli.com