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Pirelli recognized for projects in Brazil and Indonesia

Turin, July 2015 – CNH Industrial honored two Pirelli sustainability projects during the annual “CNH Industrial Global Supplier Advisory Council Meeting” held in Turin on 16 July.

Pirelli received one award for the “Biomass Boiler House” project in its plant in Campinas, Brazil. This involved the design of a boiler that combusts biomass instead of gas, therefore providing both environmental and financial benefits.

The Biomass Boiler House estimates a reduction in CO₂ emissions of 10,500 tons/year, with an energy savings resulting from fossil fuel of 52,500 MWh/year. As a result, Pirelli is looking to reproduce this technology in another Brazil plant.

The second Pirelli project awarded was for its “Natural Rubber Small Holder Partnership Program” in Indonesia thanks to Pirelli’s partnership with Kirana Megatara, the largest Indonesian producer of natural rubber. The project aims to help farmers improve their production and encourage its sustainability, as well as including a social component addressed at raising the quality of education for the farmers’ children.

Photograph participants from Left-Right: Marco Crola – Business OE and New Technologies of Pirelli – and Roberto Fernando Josè Ruoppolo – OE Latin America of Pirelli – receive the award from Sergio Carpentiere – Chief Purchasing Officer – Richard Tobin – CEO – and Osias Galantine – LATAM Purchasing

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Pirelli and the Egyptian government sign with the Social Fund for Development an agreement to build 35 tyre service centres.

On 13 July, Pirelli Egypt and the Social Fund for Development signed a two million euro agreement to open 35 tyre service centres for commercial and private vehicles in Egypt. With this agreement, we want to give young local entrepreneurs the opportunity to start their own business, supported by the professionalism and educational activities of a large international company such as Pirelli.

Younes Al-Alaoui – Managing Director of Pirelli Egypt – emphasized also the sustainable aspects resulting from this agreement: the cooperation between Pirelli and the Egyptian government to meet an important challenge such as the fight against unemployment by creating new jobs, developing qualified professionals, supporting the social and economic development of the local communities through certain key elements such as training and education is the proof that the operations between institutions and the private sector can yield effective results.

Soha Soliman – Secretary General of the Social Fund for Development – expressed all his appreciation for how Pirelli contributed to the efforts and the plans of the Egyptian government to create new job opportunities for the youngest individuals.

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The sector automotive supplier is led by Pirelli. On a 100 points maximum possible result, the tyre manufacturer received 99.60 points in the category Environmental sustainability, 99.0 points in the category Social and 97.80 points in the category Corporate Governance. No other company in that sector obtained comparable top values.

The ratings are based on the assessment performed by Sustainalytics and on DVFA’s (Deutscher Verband der Finanzanalysten) published standard “KPIs for ESG 3.0“. The analysis is based on approximately 100 ESG indicators, covering the fields of environment (E for environment), social responsibility (S for Social) and governance (G for governance).

In order to assesses the sustainability of company’s activities and determine the key indicators, Sustainalytics uses a wide variety of sources, such as corporate communications, corporate websites, media reports, information from so-called NGO’s – non-government organizations, government agencies and direct dialogue with the company itself. Internal Quality Management contributes to consistency and ensures the quality of the analysis. In the area of environment, companies are examined in terms of their ecological footprint, such as whether environmental factors are integrated in the development of products and services, or whether the procurement is sustainable.

The complex social issues related to the company’s relationship with its customers, sup-pliers, employees and the society in general. The philanthropic and social activities of the company are also considered here.

When it comes to corporate governance, compliance with the own strategies, business ethics and communication transparency are considered.

The Frankfurt Stock Exchange regularly publishes sustainability indicators to provide investors the opportunity to support responsible company management.