Pirelli and Sustainable Development

Overview

"Sustainability is a fundamental choice for Pirelli, it is fully integrated into Group's Vision and Strategies for growth, in all business areas and in all management decisions, everywhere in the world. "

An advanced sustainability governance system enables the Group to best manage the economic, social and environmental impact linked to its processes, products and services, always with a view to innovation as well as across-the-board prevention of risks, with awarness of its role as a multinational Group in a global context. This vision permeates the Group sustainability documents: the Ethical Code, the Health, Safety, Environment and Social Responsibility Group Policy" and the "Equal Opportunities Statement".

The sustainability "Model" adopted by the Group takes its inspiration from the Global Compact of the United Nations, of which Pirelli has been an active member since 2004.

The organisational lynchpin of strategic management of the Group's sustainability is the Sustainability Steering Committee,  a high-level organisation designated by the President and assigned guidance and control of sustainability development within the Pirelli Group. The sustainability organisational structure thus consists of a Group HSE&Sustainability Director, a Group Sustainability Manager, sutainability sector referents (one per Group sector) and sutainability company referents (one per Group affiliate).

A Group Equal Opportunities Manager has also been appointed to guarantee the respect for and the value assigned to Diversity diversity in every area of the company, so as to pursue greater organisational balance and monitor progress at all affiliates. The equal opportunities control body also comprises Country Equal Opportunities Managers, in charge of policy, monitoring and implementation at local level.

Pirelli also fully focuses on Corporate Governance, aware of the importance of the same in terms of creation of value. The Group therefore dedicates ongoing efforts to maintaining its corporate governance system in line with best national and international practices, always with the aim of taking on board the innovative ideas that can bring added value to its corporate governance set-up. In July 2009 the corporate governance model of Pirelli & C. was judged by GMI (Governance Metrics International) to be the best in Italy, achieving a score of 10/10. In addition to having ranked top on a national basis, Pirelli also received a rating of 9/10 among the 4,162 companies assessed on a world basis, ranking among the groups which obtained maximum points in the "automobile and components" sector whose average score is 5/10.

The SA8000® international standard is in turn the reference tool identified by Pirelli as the benchmark tool for assessing the consistency of the Group's conduct with the CSR principles specified therein.This entails monitoring of the affiliates via internal and external audits by specialist auditing companies.
ISO14001 (environment), OHSAS18001(Health & Safety), ISO 90001, ISO/TS 16949, ISO/IEC 17025 (Quality) certifications of the operative units of the Group complete a picture with strong focus on all-round sustainable management.

The Pirelli Group adopts a "multi-stakeholder" approach, it in fact pursues sustainable and steady growth, the latter being as much as possible based on a fair balance between the different expectations of all those who interact with the Company: environment, investors, employees, clients, suppliers, institutions, outside communities.

Pirelli's sustainable performance is reported every year via the Sustainability Report, tool of fundamental importance for communicating the objectives achieved and the new challenges to all the stakeholders of the Group. Pirelli's sustainability report is part of the Group Annual Financial Report, it is certified and sent to an extensive network at world level (from rating agencies to government bodies of countries in which Pirelli operates).

The efforts and results achieved by Pirelli in sustainability have enabled the inclusion of the Group in some of the most prestigious sustainability stock-exchange indexes at world level, with which Pirelli maintains a relationship of maximum cooperation and thanks to which a multinational company can observe ideas and models to be adopted and competitive opportunities to be taken up.
For years Pirelli has been included in the Dow Jones Sustainability World and STOXX indexes, in the Financial Times sustainability indexes, i.e. FTSE4GOOD Global and European STOXX in ASPI EUROZONE® (Advanced Sustainable Performance Indices), and in Axia Ethical Index e Axia Csr Index.
The rating of the Group has shown a constant improvement over the years in all the indices mentioned.
Pirelli in 2009 was also declared - for the second year running - World Sustainability Leader" and "Gold Class Company" in the "Auto Parts and Tyres" sector by SAM Group (Dow Jones Rating Agency) and this recognition was published in SAM and PricewaterhouseCoopers prestigious Sustainability Yearbook 2009.

Among the official recognitions received by Pirelli from 2008 to 2009, for which the sustainable performance of the Group and the relative strategic communication played a crucial role, mention should be made of the following:


The description of each one of the above recognitions is published in the Sustainability Channel.

Pirelli has also undertaken many institutional commitments at international level and for which Group sustainability can now be defined as a crucial prerequisite.
The main ones include:


There are many action plans and targets relating to each one of Pirelli's Stakeholders, as reported in Sustainability Report and therefore accessible for monitoring by the outside community.

They include in particular:


Reference should be made to the section dedicated to the individual stakeholders and the text of the Group sustainability Report for the numerous additional objectives set by the Group for 2009.