New, more environmentally sustainable materials, a strong focus on people and reduced environmental impacts. These are the three fundamental pillars of Pirelli's commitment to Sustainability,
the objectives of which are an integral part of the Group's 2013-2017 business plan
Under the Plan, sustainability objectives are defined by guidelines for growth, productivity, governance and risk management, with ambitious targets stretching forward to 2020. The Sustainability Plan covers all areas of the Group's activity: business, human resources and those related to environmental impact and social responsibility, and reflects Pirelli's multi-stakeholder approach, whereby those who interact with the company (customers, employees, the financial community, local communities, government, NGOs and suppliers) pursue sustainable, lasting growth together.
The interaction between financial, manufacturing, intellectual, human, natural, social and relational forms of capital takes the form of a business model aimed at value creation
In product terms, the Plan provides for an increase in revenues from Green Performance products in 2017 equal to 48% of Tyre revenues while - by 2020 - rolling resistance in the Car segment (the parameter on which the tyre’s energy efficiency is based) - will be reduced by 40% compared to 2007. Moreover, for many years Pirelli has been designing, developing and manufacturing innovative materials that reduce environmental impact, while at the same time maintaining the high standards of quality and performance that have always distinguished the company. In fact, one of the Business Plan’s objectives is the delivery of results from research into alternative sources of natural rubber from hevea, with the possible use of guayule rubber (a project with Versalis, ENI Group).
The Sustainability Plan also provides for further expansion of Pirelli technology to produce silica from rice husks and the widespread use of innovative, functionalised polymers, which will ensure reduced environmental impact and increased safety
As for the group's commitment to the safety of workers, the Plan aims for a 90% reduction in the frequency of accidents by 2020 compared to 2009. A goal that will be made possibile by investments in increasingly safe machinery and employee training programs focused on reinforcing safety culture. On the training side, the target for investment in employees is an average of 7 days per person (a target already exceeded in 2014, with an actual figure as high as 8.2 days) and more than 7 in subsequent years.
As for environmental factors, the Plan provides for a 15% reduction in specific emissions of CO2 and an 18% reduction in specific energy consumption by 2020 compared to 2009, with expected savings of about 20 million euro and 350,000 tons of CO2 in the 2015-2017 period. Moreover, thanks to the upgrading of the Settimo plant, a reduction of 58% in specific water withdrawal by 2020 is forecast, with expected an saving of over 3,000,000 cubic meters in the 2015-2017 period. The rate of waste recovery is expected to grow by 95%, again by 2020, with a saving of about 60 million euro by 2017 through reuse of industrial waste.
Another key growth factor envisaged in the Plan relies on strengthening the integration of social and environmental considerations within the supply chain. Indeed, the Pirelli management model provides for full integration of Sustainability in the contractual and performance selection phases for suppliers, supported by training and dialogue, right up to the rewarding of the most innovative and sustainable supplier companies. The "all-round quality" of supplier companies is, moreover, a fundamental factor in the Company's ability to pursue its Premium strategy.