Tyres

Pirelli Tyre's founding principles are product innovation as a means of improving end-user quality and safety and an ongoing commitment to reduce environmental impacts. To achieve this goal, Pirelli Tyre has established close links with top car makers from the watchful and demanding Ultra High Performance sector where Pirelli is the leading brand. The most recent developments affecting consumer safety and the environment include:

• New Pirelli Cinturato, the green tyre - , whose innovation incorporates performance, driver safety and reduced environmental impact. The innovative compounds, structures and tread patterns of the new Cinturato, available in tread sizes P4 and P6 and featuring ECOIMPACT symbols on the sidewall, enable a 20% reduction in rolling resistance and up to 4% in energy consumption, increasing average mileage by 30%. Pirelli P4 and P6 guarantee greater safety and improved performance under all weather conditions. In particular, there is improved grip when cornering in the wet and, above all, a reduction in braking distances. On wet surfaces, the stopping distance of a vehicle is reduced by 11%, whilst even in the dry, the braking distance is much lower than that of reference tyres.
  
  
   www.pirellityre.com
  
   www.pirellityre.com/cinturato
  
  
  
  
• K-PRESSURE™ - ,innovative safety device capable of monitoring tyre pressure. When this is too low, it advises the motorist immediately by means of an on-board alarm; Self-supporting or run flat tyres provide improved control over your vehicle in the event of an emergency, allowing you to continue driving safely even if the tyre is severely deflated. State-of-the-art tyres such as the new P Zero introduced in February 2007 whose special tread compound offers the extreme performance of a warm tyre whilst still cold, thus raising safety standards during heavy braking on a straight road or whilst cornering in both wet and dry conditions and at all road and track speeds;
  
  
• SWS™ - the first self-inflating tyre, now available for SUVs;
  
  
• Cyber™Tyre System - actual tyre "memory" connected to the vehicle's on-board computer in order to provide the driver with up-to-the-minute information regarding the tyre's operating status;
  
  
• Cyber™Wheel System - lets you use the rim as a sensor in order to record and transmit physical quantities to the vehicle.

Besides manufacturing low-environmental-impact tyres, Pirelli Tyre is very concerned with sustainable management of production processes and systems (MIRS and CCM) offering improved product quality, lower energy consumption and less waste.

Further recent proof of Pirelli Tyre's commitment to customer safety comes with the signing of the European Road Safety Charter by Francesco Gori, Managing Director of Pirelli Tyre S.p.A. and Chairman of ETRMA (European Tyre & Rubber Manufacturers Association) that sets the goal of halving the number of road accident deaths by 2010.

Real Estate

Beside monitoring and reducing the environmental impacts of its activities:

• offers customers who are properties owners solutions designed to reduce the potential environmental impacts deriving from the running of those properties.
  
  
• develops designs for new building projects, in which particular attention is paid to aspects of social, economic and environmental sustainability, while simultaneously striving to preserve and enhance the territory in terms of attractiveness and competitiveness on a wider scale.

In 2007 Pirelli RE launched "Ecobuilding", the first integrated environmentally-sustainable building programme by a real estate manager aimed at environmentally-friendly building practices. The programme regards new developments in all market sectors ranging from residential to services and will be the cornerstone of all new projects promoted by Pirelli RE. Ecobuilding sets four main objectives: energy efficiency; use of environmentally-friendly materials; use of renewable energy sources; living comfort. The combination of solutions implemented by the programme allows the achievement of exceptional quality, environmental-friendliness and energy-saving standards ahead of impending changes to legislation. The environment enjoys notable benefits including a reduction in CO2 emissions, less electricity needed to run the building and increasing use of renewable energy sources.


www.ecobuilding.pirellire.com

www.pirellire.com

Broadband Solutions

Pirelli Broadband Solutions provides broadband access services. This means innovation managed not only in a sustainable manner, but also, albeit indirectly, with a considerable environmentally-sustainable impact. Indeed, PBS systems make a strong contribution to the increasing popularity of video conferences and video calls that are becoming the alternative to staff travelling between one company branch and another by land, sea or air.

Labs

In its most advanced laboratories carries out forefront developments supporting Group sectors: Cyber tyre, innovative solutions for compound manufacturing and end-of-life management of tyres, second generation photonic components based on nanotechnologies.

Furthermore develops innovative components in the field of renewable energy sources. Cooperates with leading privately owned and universities research centers in US, Russia and Italy.

2007 witnessed the completion of two major lines of research for the development of environmentally-friendly materials, processes and components. Specifically:

• research into practical industrial applications for the by-products of end-of-life tyres (ELTs) pinpointed the development of sound-absorbing/impact-sound insulation for insertion in the walls and floors of residential buildings. The material and the process developed by Pirelli Labs have proved capable of achieving noise reduction levels meeting the most stringent regulations (standard ISO 140/7) and in line with the best market benchmarks. At the same time, field testing, conducted jointly with Pirelli Real Estate and involving over 2000 m² of luxury housing, has confirmed the feasibility of real-life application with good performance and efficiency after installation.
  
  
• type approval testing was also completed of telecommunications poles made from a recycled polypropylene and fibreglass composite in partnership with Telecom Italia. These poles will replace the current timber poles impregnated with Chrome Copper Arsenic compounds now banned by the European Union. The poles in question passed all laboratory approval tests and were successfully installed at a Telecom Italia test site in order to complete field testing.

Pirelli & C. Ambiente S.p.A.

Pirelli & C. Ambiente S.p.A., the Pirelli Group company founded at the beginning of 2005, specialises in sustainable development technology and solutions, renewable energy sources and photovoltaics. By exploiting the synergies created with Pirelli Labs, the group's advanced research centre, Pirelli Ambiente can offer the market a range of low-environmental-impact, high-tech products.

Of several important projects in the renewable energy sources field, Pirelli CDR-Q (High-Quality Refuse-Derived Fuel) promoted by Pirelli Ambiente Renewable Energy is particularly worthy of mention. This is a blend of the dry fraction of municipal solid waste and high-calorific-value fractions such as end-of-life tyres and chlorine-free plastics. Each ton of cofired CDR-Q saves 1.75 tons of CO2. Unlike normal quality RDF and refuse derived fuel, Pirelli CDR-Q provides greater stability and improved quality parameters as regards heating value, lower concentration of pollutants and guarantees as to the content of biodegradable biomass.

In Italy, the integrated system promoted by Pirelli Ambiente Renewable Energy has been running successfully since 2003 in the Province of Cuneo, where a public/private joint venture company called Idea Granda has been set up by Pirelli (49% stake) and ACSR, the local authority refuse collection consortium (51% stake). The introduction of this system has produced a rise in energy recovery from waste in the area to 32%, a figure that is higher than both the Italian average (7%) and, above all, the European average (27%). In 2007, the use of CDR-Q at the cement factory in question led to a reduction in CO2 atmospheric emissions of more than 36,000 tons (+20% compared to 2006). Each ton of cofired CDR-Q saves 1.75 tons of CO2 and more than 20% of NOx emissions (approx. 360 tons), thus helping to achieve national Kyoto Protocol objectives.

www.pirelliambiente.com

Within the sphere of "environmental reclamation", Pirelli & C. Ambiente Site Remediation S.p.A. has been successfully operating in the redevelopment and environmental management system sectors since 1997. The company's extensive experience gained in the Pirelli Group's industrial sectors and in association with PirelliRE has allowed reclamation and redevelopment of derelict industrial areas including brownfield sites.

The company offers a huge range of environmental reclamation solutions for brownfield sites, combining specialist technical skills in the soil remediation sector with the more wide-ranging requirements of a global urban and land redevelopment process.

Management of environmental aspects and their integration with customer requirements is based on four main objectives: energy efficiency, for both winter heating and summer cooling, use of environmentally-friendly materials, use of renewable energy sources and living comfort.

As part of the photovoltaic business and in full accord with the Group's sustainability mission, 2007 witnessed the incorporation of Solar Utility S.p.A., a 50-50 joint-venture between Pirelli Ambiente and Global Cleantech Capital, a leading European and North American clean energy investment fund specialising in solar energy, green building, wind power, bioenergy and innovative materials with the aim of increasing renewable energy production and energy efficiency. Solar Utility is a photovoltaic utility. It supplies 100% green electricity to end users at competitive prices and has an ambitious five-year investment programme in Italy focused on the development, construction and management of its own photovoltaic facilities with a capacity of 50 MW.

Eco Technology

Pirelli Eco Technology is a leading player in the sustainable development technology sector thanks to Cam Tecnologie's long experience in low-environmental-impact fuels with GECAM™ (white diesel) and particulate filter technology with the Feelpure™ filtering system.

Gecam™ is an emulsion of water (10%) and diesel fuel/heating oil offering a 50% reduction in particulate emissions.

Feelpure™ is a retrofit DPF system for buses and goods vehicles comprising a silicon carbide filter capable of reducing particulate emissions by more than 90%.

Pirelli Eco Technology has signed partnership agreements with several major oil companies to manufacture and market Gecam™ throughout Italy. Similar agreements have been reached in other countries including France and the Czech Republic. In France, Pirelli Eco Technology operates through its subsidiary Gecam France.

In the second half of 2008, Pirelli Eco Technology will also begin marketing OEM filters.

Pirelli Eco Technology is a member of the European Emulsion Fuel Manufacturers Association (EEFMA) and the Italian Particulate Filter Manufacturers Association (AIFP).