Suppliers

Pirelli Group policy on Health, Safety, Environment and Social Responsibility expressly states the company's commitment "to establish and actively maintain the procedures to evaluate and select contractors and subcontractors based on their commitment in the field of social and environmental responsibility."

Supply-chain sustainable Management :
Between 2006 and 2007, CSR has been integrated in both the General Conditions for the Purchase of Goods and Services, applied by the Group's Companies to their suppliers, and in the phases of Vendor Scouting and Vendor Rating.

The signing of the New General Conditions commit the suppliers to adopting behaviors at their company that adheres to the content of Pirelli's ethical code and CSR policy.

Pirelli also has the right to carry out audits to verify this adherence. The new conditions are already applied to the Group's Italian suppliers and they will be extended to all foreign suppliers within 2007.

Distribution of Purchases by geographic area

		% on total number of suppliers	% on total purchases value
Geographical Area		Year 2006	Year 2006	Year 2005
OECD Countries	Europe	73%	63%	67%
	North America	4%	6%	9%
	Others 1	0.2%	2%	2%
Non-OECD	Latin America	19.2%	15%	11%
	Asia	1.6%	12%	10%
	Africa	1.8%	2%	1%

¹ Australia, New Zeland, Japan, Korea.  

The table above shows the geographical distribution of purchases, distinguishing between OECD
and non-OECD countries. The table also gives the percentage weight of purchases made in each
area over the total value of all purchases made. Over 80% of all purchases made by the entire Group are made up of goods and services purchased by the tyre sector.