Responsible Purchasing Practices

Stellantis’s governance model reflects our commitment to a culture dedicated to integrity, responsibility, and ethical behavior in all areas of our business and throughout the value chain.
Managing the complexity of multi-tier supply chains presents particular challenges for all major industries, including the automotive sector. Technology is the driver of change as vehicles become increasingly connected, electrified, autonomous, and shared.
Vehicle design cycles are more rigorous, technologies are adopted more rapidly, and automakers are collaborating with suppliers more than ever.

Our global supplier network contributes significantly to value creation, quality, and innovation. It has a significant impact on our responsible development and CSR performance.
We encourage the adoption and sharing of sustainable practices by our suppliers and are committed to implementing responsible practices in our purchasing activities.
In line with what is described in our “Global Responsible Purchasing Guidelines,” our supplier selection is based on the competitiveness of their products and services, but also on their adherence to social, ethical, and environmental principles, while maintaining the highest quality standards and caring for the communities in which we operate.

Preserving human rights requires everyone to respect ethical rules. Building strong and responsible supply chains is a key objective for us. This approach helps develop opportunities within supplier organizations while minimizing risks and potential damage to Stellantis’s reputation. We monitor our partners’ compliance with our Code of Conduct and human rights, which requires contractual commitments and continuous assessments.
We act in accordance with social, environmental, and ethical principles, such as those identified in the ILO Conventions, the OECD Guidelines, the United Nations Sustainable Development Goals (SDGs) for 2030, and the United Nations Global Compact, among others.
Stellantis expects its suppliers to respect human rights in all countries where they operate, including geographical areas where human rights may not yet be sufficiently protected.
We are also committed to contributing to a decarbonized economy, in line with the Paris Agreement. On our path to carbon neutrality, we expect suppliers to play a relevant role by improving their own operations to reduce their environmental footprint, while providing innovative proposals to reduce greenhouse gas emissions throughout the entire vehicle lifecycle.

Supplier localization is also an important strategic element. Bringing suppliers closer to Stellantis’s manufacturing sites supports the economic development of local communities and reduces the risk of supply disruption. This strategy has major financial impacts: it reduces inbound logistics costs, limits customs duties, and reduces exposure to exchange rate fluctuations that affect production costs, margins, and sales volumes.
Reducing long-distance maritime transport also benefits the environment, particularly by reducing CO2 emissions. Furthermore, local sourcing allows Stellantis to understand stakeholder expectations and find technological solutions related to the context and constraints of the relevant field. Operational proximity with our partners helps them make technological, logistical, social, and environmental progress. It also allows for greater flexibility in the supply chain.

Our suppliers’ social and environmental performance is regularly assessed by a third party. We require suppliers to be reassessed annually to consolidate the continuous improvement of their CSR performance. This assessment is also used for risk identification and selecting sites to audit. In case of non-compliance with our principles, we may require the implementation of action plans and their monitoring, and we reserve the right to terminate our business relationships prematurely.
Products or goods purchased from our suppliers must comply with applicable laws or regulations in the countries of production, as well as in the markets where the product will be sold or used. For example, they must comply with laws and regulations requiring the traceability of substances of concern for the protection of health or the environment.
Fully committed to developing safe and sustainable activities, Stellantis asks its suppliers to consider regulatory projects related to substance restriction and also the requirements for substituting substances with appropriate alternative solutions. Stellantis has already implemented specific action plans concerning the REACH universal restriction project on PFAS and the European Taxonomy Regulation on a targeted list of new vehicle projects.