Sustainability Report

“Our commitment to corporate social responsibility has grown and strengthened over the years, and continues to be demonstrated by our presence in the most prestigious international sustainability indexes,
such as the Dow Jones and Ftse4Good Indexes.
It is a fundamental choice, underpinning our Group’s vision and strategies for growth, in all our business areas and management decisions, throughout the world. It is based on a “multi-stakeholder” approach, with careful attention given to all those who have an interest in the company for whatever reason. In short, we are committed to doing our utmost to ensure that not only innovation, research, quality of products and services, attention to the needs of our employees and the demands of our customers, but also respect for the environment become an ever increasing part of a virtuous circle for a company that combines competitiveness with social responsibility. A new dimension of a business culture deeply rooted in our history, fully attuned
to the contemporaneity of sustainable development.”

Marco Tronchetti Provera

Chairman, Pirelli Group

A note on methodology

This, the third edition of the Pirelli Group Sustainability Report, is a full and complete expression of the Pirelli corporate culture. It does this by reporting the Group’s economic choices together with its environmental and social choices, in line with the ‘triple bottom line’ approach. For this reason, the details of our sustainable performance are included in the Annual Report, instead of being published separately.

The perimeter of this annual report is the same as the Group’s consolidated report. For any numeric/qualitative performance of one or more affiliates in relation to specific published data that has not been included, a note has been provided.

The report has been drawn up according to the Sustainability Reporting Guidelines issued by the Global Reporting Initiative (GRI). The analysis of sustainable performance is based on a set of “Key Performance Indicators” (KPI), developed in accordance with the GRI indicators (updated to the G3 standard) and the principles of the Global Compact, also taking account of data periodically monitored by the major rating agencies. The sections on economic and social dimensions have also drawn on the Reporting principles issued by the Italian Sustainability Report Study Group (GBS - Gruppo di Studio per il Bilancio Sociale).

In this section we have concentrated on what we believe will be of most interest to the Group’s wide variety of stakeholders, highlighting and explaining the progress in 2007 in relation to the contents of the 2006 report.

As regards Corporate Identity and Group organization, please see the Directors’ Report that precedes this section.

For detailed information on the Real Estate Sector, whose sustainability performance is in any case consolidated within this report, please consult the Sustainability Report for Pirelli Real Estate SpA, available on the web site www.pirellire.com.

For further explanations and information on the contents of the report below, please refer to the “Contacts” published in the areas of the website www.pirelli.com, including the Sustainability Area.