Sustainability report

“Sustainability as a fundamental choice based on vision and growth strategies, as an entrepreneurial and cultural value and as a responsible component of long-term development sums up the Pirelli Group's approach to business, which it continued to refine in 2008. Such an approach helps reduce economic, social and environmental risk. Internal cohesion grows in step with the overall vision needed to balance business activity as much as possible with the interests of different stakeholders, in view of compensating the impact of specific historic conditions through the pursuit of long-term stability, which a business must achieve at least in those areas where it can take the initiative. The current global economic crisis is forcing businesses to change, restructure and sacrifice. It is also forcing profound industrial and social changes, which Pirelli intends to address not only with appropriate short-term measures, but also and especially by continuing to focus on innovation, in the broadest sense of the term. This means focusing on the most advanced technologies but also research, training, the promotion and development of “talents”, especially younger people, growing occupational safety, multicultural experience and sensitivity to social implications in the communities with which it constantly interacts around the world. With these aims in mind, Pirelli launches its “green performance” strategy for environmentally sustainable growth. This strategy translates into new products and new production systems with reduced environmental impact, low energy consumption, quality and safety. This is what sustainability means to us. This is the approach and performance that will enable us to appear once again on the most prestigious rankings of international sustainability as world leader in the Dow Jones Auto Parts & Tyres Sector. We have been accorded this honour for the second year in row and will continue to uphold it with commitment and consistency.”

Marco Tronchetti Provera

A note on methodology

This, the fourth edition of the Pirelli Group Sustainability Report, is a comprehensive 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.

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, while also taking account of data periodically monitored by the leading rating agencies of sustainable finance. The sections on economic and social dimensions have also drawn on the Reporting Standards issued by the Italian Sustainability Report Study Group (GBS - Gruppo di Studio per il Bilancio Sociale).

In this report, 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 made in 2008 in relation to the contents of the 2007 report.

Specific qualitative and/or quantitative objectives have been indicated in the sections dedicated to each one of the Group’s stakeholders.

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

Beginning this year, an outside, independent organisation has audited both this report and the Pirelli & C. Real Estate SpA Sustainability Report, in order to certify the completeness and accuracy of the qualitative and quantitative information reported in it.

For detailed information on the Real Estate Sector, whose sustainability performance is addressed in this report, please consult the Pirelli Real Estate SpA Sustainability Report, which can be found on the website www.pirellire.com.

For further explanations and information on the contents of the report below, please refer to the “Contacts” published in the “Sustainability” section of the website www.pirelli.com. The “Sustainability” section dedicated to the external community also offers up-to-date information on sustainability News and Events directly involving Pirelli.

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