Pirelli Broadband Solutions S.p.A.

Pirelli Broadband Solutions (PBS) was established in 2004 to focus resources in the sector of cutting-edge telecommunication with an extremely high technological content.

Since demerger of the Photonics business unit on 1 April 20081, after it had been set up in the Pirelli Group company PGT Photonics, Pirelli Broadband Solutions has concentrated its activity on solutions for residential and small office broadband access.

The company’s products enable residential and small business users to connect to the internet and telecommunication operator service networks via broadband, thereby exploiting a potentially unlimited variety of services. Telephony, video communication, internet TV, e-commerce, e-health, e-government, social networking and telecommuting are some of the principal examples of applications that increasingly allow users to receive utility, business, entertainment, communication, social interaction and learning services without having to move physically, consequently generating environmental benefits due to less travel.

After consolidating management of end-of-life products in Italy and certain European countries (Directive 2002/96/EC - WEEE), the reduction of hazardous substances in products (Directive 2002/95/EC - RoHS) and improvement of the environmental impact of packaging (Directive 2005/20/EC - Packaging), in 2008 Pirelli Broadband Solutions dedicated itself to energy issues and the reduction of pollutants in product batteries (pursuant to Directive 2006/66/EC and the relevant implementing decree, Legislative Decree 188 of 20 November 2008). In the energy area, it continued to work on introduction of the provisions imposed by Directive 2005/32/CE - EuP (Energy using Products) for development of the products that use energy in order to operate.

PBS took the actions required pursuant to European Regulation 1907/2006 - REACH (Registration, Evaluation, Authorization of Chemicals) for registration of the chemical substances used in products, in order to achieve full control. Consistently with the Pirelli Group’s commitment to eco-compatible technological development, Pirelli Broadband Solutions ranks eco-sustainable development as one of the “musts” on its own portfolio roadmap for the three-year period 2009-2011. More specifically, the roadmaps of the Customer Premises Equipment (CPE) products made by PBS have embarked on two paths of action according to a sequential plan:

  • Reduction of CPE electricity consumption: to this end, PBS refers to the European Union guidelines that impose limits on the consumption of broadband network equipment (Code of Conduct on Energy Consumption of Broadband Equipment), applying design criteria where possible to reduce consumption by the core device and accessories, such as power adapter units. The electric power consumption reduction policy has a major impact on the reduction of the carbon footprint of ICT technologies and consumer electronics;
  • Use of eco-compatible materials: beginning in the second half of 2009, PBS will give its own customers the option, for at least three product lines (operators and service providers) of CPE with housings made of 100% biodegradable plastic, i.e. plastic that can be fully recycled. This will make it possible to reuse the same material in a new life cycle without substantial deterioration in its performance.

In line with the Pirelli Group Sustainability Policy and to assist and improve the management of its own environmental performance, the management of Pirelli Broadband Solutions has decided to govern its activities by adopting a Health, Safety and Environmental Management System in accordance with the UNI EN ISO 14001 and OHSAS 18001 standards. Due to company reorganisation, the certification date, originally scheduled for 2008, has been moved back to 2009-2010. However, the project has made it possible to set out and disseminate a PBS Health, Safety and Environmental Policy, which is fully in line with the analogous Group Policy and the framework of the essential components of the Health, Safety and Environmental Management System.

In 2008 the programme to expand waste recycling was completed and targeted work was carried out on the plants at the Milan location, resulting in a significant reduction in water consumption. In 2009 additional measures to save energy are being studied, by upgrading the air filtering systems in the clean rooms located at the Milan site. It is estimated that electricity consumption will be reduced by about 5% once this work is completed.

Following the environmental communication programmes carried out in 2008 with a section devoted to sustainability on the website, resources will be dedicated once again in 2009 to promote adequate communication and environmental awareness activities targeting employees, suppliers, customers and external businesses.

PIRELLI GROUP ENVIRONMENTAL TARGET FOR 2009-2011

Pirelli will continue to develop cutting-edge products and solutions in the “green economy”, specifically targeting sustainable mobility, environmentally compatible building construction and renewable energy sources.

The Group has set itself the following goal for the three-year period 2009-2011: raise the “green” component on Group revenues from about 20% at the end of 2008 to about 40% by the end of 2011.

(1) In July 2008, an agreement was signed to incorporate PGT Photonics S.p.A. into CyOptics, a private American company, leader in the field of optical components based on indium phosphide.

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