Measurement of Health & Safety Performance

Pirelli Tyre S.p.A.

The number of injuries fell significantly once again in 2008, with consequent improvement in the parameters that measure this phenomenon. When compared with 2007, the Frequency Index (FI), i.e. the number of injuries, fell by 15.5% in 2008, and the Gravity Index (GI) fell by 12%.

To better understand these data, it should be kept in mind that the GI was calculated by considering all calendar days between the injured person’s work interruption and his or her return to the factory as “lost,” i.e. the actual days necessary for complete rehabilitation.

The calculation of the aforementioned indices did not included “in itinere” injuries, which are discussed later in this report.

The following graph provides details on this phenomenon:

injuries graph

Specifically in regard to employee health, the 2008 frequency index of new cases of occupational disease was 0.21, down 58% from the previous year. Consequently, the 2008 parameter returned to the Company’s historic levels, in line with the 2006 frequency index of 0.19.

The anomalous increase in the frequency index for occupational diseases in 2007 from 2006 (+0.51) was mainly due to updating of documentation at the Guacara factory in Venezuela. Among other things, this update entailed reporting new cases of disease. Net of the effect of updating records, the 2008 parameter thus returned to the historic trend.

injuries graph

Shifting the focus to injuries occurring at the Tyre Sector’s non-production units (commercial offices), it was decided to refine the procedure used to collect data. This measure has been included among the targets for operating improvement in 2009.

2009 Targets

The quantitative target assigned for 2009 in regard to the frequency of injuries is a 10% reduction compared with consolidated 2008 figures.

The principal focus of qualitative targets continues to be a reduction in workplace injuries through the implementation of specific initiatives extended to all countries worldwide.

In particular:

  • technical improvement programmes,
  • organisational improvement programmes
  • programmes for improvement of safe behaviour
  • participatory and communication programmes

All operating units will consequently be committed to thoroughly revising their approach to safety, whose cornerstone is based on the involvement of the entire organisation (white-collar workers, blue-collar workers and contractors) in order to privilege focus on organisational and individual behaviour. This approach also aims to complement prevention in all business processes by prompting participation and awareness.

The Pirelli HSE Campus (as illustrated later in this report) was set up to support this programme for cultural change.

Pirelli Real Estate S.p.A.

Over the last several years, Pirelli RE has taken numerous measures to reduce accidents.

In particular:

  • raising the awareness of Facility management personnel (prevention campaign targeting operating employees);
  • issuance of a “safe driving” manual, conceived to prevent motor vehicle accidents (in itinere and not);
  • semi-annual analysis of injuries, classification and analysis of individual cases;
  • on-site inspection (in all cases) by the Prevention and Protection Service of the place where an accident occurred.

The number of accidents decreased markedly in 2007 and 2008, particularly in comparison with 2006.

Observing the injury indices for 2008 at the companies belonging to Pirelli Real Estate S.p.A. (and thus Italy plus the foreign locations), the frequency index was FI = 0.16 and the gravity index was GI = 0.02.

The following graph provides more details:

injuries graph

If the analysis is limited instead to the Italian locations only (in order to read the trend in comparison with previous years), the 2008 frequency index was FI = 0.31 and the gravity index was GI = 0.03.

The following graph provides more details:

injuries graph

In 2008 there were nine in itinere injuries, compared with eleven such injuries in 2007.

The decrease in the number of injuries confirmed that the measures taken by Pirelli Real Estate to realise improvements were appropriate.

Other Group Sectors / Companies

  • Pirelli Broadband Solution - no injuries at work and none in itinere;
  • Pirelli Labs - no injuries at work and non in itinere;
  • Pirelli Eco Technology - one injury at work causing less then three days of absence from work, and one in itinere injury;
  • Pirelli & C. (aggregated with Pirelli Ambiente) - two injuries at work causing eight days of missed work.

In itinere injuries at the Group

Information on in itinere injuries (i.e. occurring during work trips or while travelling to reach the workplace): at the Group level, the total number of these injuries was 143, corresponding to 4.6 accidents every one thousand workers (3.8 in 2007 and 4.5 in 2006).

Fatal accidents at the Group

No Pirelli employee or employee of outside contractors working at the Group’s operating sites suffered a fatal accident in 2008.