Suppliers

The Group is committed "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." (except from the Group Policy on Health, Safety, Environment and Social Responsibility")

Suppliers' sustainability requisites are fully and formally integrated in the processes that rule the business relations with the Group's Suppliers.

Pirelli expects ts Suppliers, as fundamental Partners in developing its businesses, to operate their own businesses respecting Pirelli's the same Principles and Values, in view of jointly sustainable growth.
This means firm respect and support for universally proclaimed Human Rights and Labour Rights, and continuous improvement in the environmental impact of processes and products, doing so in the ambit of activities and relations conducted at the highest standards of transparency and fairness.

Mapping of Group Purchases

Supply-chain sustainable management

Dialogue and Initiatives

Both of dialogue and interaction with suppliers are the object of continuous process improvement, in terms of both quality and tools.

Of particular note is the constructive interaction with Suppliers in relation to the the Vendor Rating results, which are regularly revised and commented on by the Sector Purchasing Department. This process involves meetings organised with the suppliers, aimed at identifying any corrective actions or measures to improve performance.

A great example of Group's initiative aimed at enhancing dialogue and sharing common values with suppliers is the "1st China Suppliers Conference", held at Pirelli Tyre China - Yanzhou - in November 2008. This was occasion to introduce Pirelli Tyre in China and exchange questions, solutions, methods and strategies in view of development. This conference was attended by about 200 production companies of raw materials, spare parts, services and industrial goods, both locally based and large multinational groups, for a total of over 400 participants.
Special emphasis was given to sustainability as a competitive advantage. Following a presentation on Sustainability at Pirelli and in relations between Pirelli and its supplier, the participants received a copy of the Pirelli sustainability clauses (which include the CSR Policy and the Ethical Code) to be signed in both Chinese and English. The initiative was a success and many of the suppliers that attended the event signed it.

Regulations and Procedures that govern purchasing processes, the Vendor List, surveys, Vendor Rating with feedback and the definition of support actions are supported by special websites available online for the Suppliers of the various businesses. These portals provide both an assurance of process uniformity and a guarantee of transparency, in addition to being a communications, ongoing training and knowledge sharing tool.

In addiction, to provide the supplier with a company channel that is always available for any feedback, each purchase contract includes the name of the buyer contact.

More information about Pirelli's Policies and Relations with Suppliers, Activities, Projects and goals, with a particular focus on Pirelli Tyre's Suppliers can be found in Sustainability Report 08 > Economic Dimension > Suppliers