Pirelli sees biodiversity as much more than just a postscript to the concept and practice of sustainability. Biodiversity loss is a grave potential risk to the environment worldwide. But it could also become a risk for the company. Mitigating this risk is an opportunity for Pirelli to increase the resilience of both the business and the ecosystems where the company operates. Pirelli has completed a biodiversity impact assessment for all its sites across the globe, and for its supply-chain network. As the company's group sustainability officer Eleonora Pessina explains, the work of gathering and analysing data has led to a series of real-world biodiversity protection initiatives that are bringing about tangible change. In doing so, Pirelli seeks to “give back to nature” by contributing to the protection and restoration of ecosystems and natural capital that underpin the resilience of both communities and economic activities.
Can you tell us how biodiversity fits into the company's sustainability strategy?
For our company, biodiversity thinking is about developing an understanding of the extent to which we depend on nature. This is not something different from or additional to the business strategy. If you invest in nature, you diminish the risks to your business. For example, understanding biodiversity is critical to protect the natural rubber supply chain. Protecting nature and biodiversity is essential to ensuring the long-term availability of natural rubber, a material that remains irreplaceable in many tyre applications. By supporting responsible rubber production, we help preserve a key natural resource while strengthening the company's ability to grow, innovate and create lasting value over time.
Businesses and whole economies are dependent on biodiversity, and today with climate change and its impact, this is becoming much more evident.
In 2025, you finished a two-year project to map the biodiversity impact of all your industrial sites. What did you find?
Well, first, we discovered a world of scientific tools to support us during the risk and opportunity assessment, and that was important because we needed to identify and understand all the main biodiversity loss drivers including land use, invasive species and resource consumption. We discovered that probably, at least as far as our production process and our plants are concerned, the main dependency we have is water – even though we are not a water-intensive company. So, protecting a nearby river or river basin, for example, is fundamental to securing that you will have water in the future – and that the local people will do, too. Invasive tree species can be a biodiversity loss driver because they tend to supplant the original local trees that are best-adapted to protecting soil, so if you have invasive tree species then you become more vulnerable to floods and you risk more business interruption. So, in Romania we are supporting the protection of rivers, while in Italy we are supporting the eradication of invasive species by planting with local ones. It's always a matter of choosing actions that create shared value. It's not possible or desirable to think solely in terms of the direct impact on and of your company. Integrating biodiversity considerations into our strategy helps strengthen the long-term resilience of both our business and the communities surrounding our operations. Healthy ecosystems provide benefits that support economic activities, local development and the well-being of the territories in which we operate.
All your sites now have Biodiversity Action Plans – what do these recommend?
These plans form the core of our strategy. You must have clear governance, clear plans with clear targets, clear deadlines and responsible people. So, for example, Biodiversity Action Plans (BAPs) have clear targets in terms of water saving and quality, energy-efficiency and carbon-emissions reductions, and waste reduction and recovery. The targets always relate to specific local ecosystems needs – such as the Cuenca de la Esperanza near our plant in Mexico – and they always have a series of specific key performance indicators tied to specific dates. We must recognise that meeting these targets is not only a matter of our own actions; the BAPs are in most cases dependent on agreements with local representatives because they are the ones with the capabilities to both identify the needs and drive these projects. What is important from our side is to have a structured biodiversity management plan with clear reporting lines, so we have a group biodiversity manager and a value-chain biodiversity manager, and they work with sustainability managers at the local level. It's not easy to report the outcomes of these projects. Their success relies not only on selecting and supporting the right initiatives, but also on building robust governance structures. Defining clear objectives, reporting criteria and accountability mechanisms helps ensure a consistent and disciplined approach over time.
Who do you collaborate with to execute the Plans – are national, state and local authorities as interested in biodiversity as you are?
They are interested and aware. This is an evolution that is also being driven thanks to incoming legislation around the world; it's not something that has been discovered by companies. In all the countries and locations where we have decided to explore biodiversity projects, we have found initiatives that were already active and where we could start a conversation with local institutions about how to support those projects, and how to add elements that were not already there. As a Company we trust that local stakeholders know their own needs and we are keen to support projects that already focus on impacts that locally can make the difference. We have learned that local stakeholder engagement is fundamental – you have to start from their needs if you want to accelerate value creation on local biodiversity issues.
Last year Pirelli adopted the guidelines of the Taskforce on Nature-related Financial Disclosure (TNFD). What does this involve?
The TNFD is a reporting standard and governance model that sets out the proper way for a company to manage nature and biodiversity risks and opportunities: making a risk assessment, creating plans, engaging stakeholders, reporting. When we released our reporting on TNFD we had already started years before to secure the strength of our management model and performances. This is typical of Pirelli; only once we feel we are solid do we start communicating and reporting.
What is your strategy for implementing biodiversity policies across your extended supply chain?
It is again a matter of engagement and collaboration because the most meaningful results can only be achieved when the entire value chain is involved. If you take the case of natural rubber, we were very active years ago as founding members of the Global Platform for Sustainable Natural Rubber. This involved opening up to major stakeholders, such as original equipment clients, suppliers, and local and international NGOs, to create a multi-stakeholder platform that could act globally for all. As this is a value-chain multi-actor responsibility, the only way to secure progress that can be sustainable – and attainable – is through the effort of all value-chain actors.
Then, as Pirelli, we have our own strategies and in partnership with the Forest Stewardship Council™ (FSC™) introduced FSC™1 certification for natural rubber contained in tyres. This was completely new and it took us around five years of work to be able to certify just one supply chain. This is because supplier certification covers a lot – biodiversity, human rights, fair wages, legal compliance with local legislation and zero deforestation – and it impacts each level of the supply chain. In natural rubber, there are many levels.
What steps need to be taken to comply with the European Union Deforestation Regulation, which will come into effect starting 30 December 2026?
We have already taken all necessary steps. Remember, the deadline for the Regulation has been postponed twice, so we had already invested in all the traceability systems and administrative capacity before the first deadline. We were and we are more than ready.
Why is it good for Pirelli as a company to engage in biodiversity protection? What is the cost-benefit calculation?
Certainly, everything must have a business case. If you are working with suppliers on something like FSC™ certification, you are helping them to establish legal compliance and credibility. Similarly our expertise can help local biodiversity projects become recognised and obtain third-party certification. Our biodiversity efforts have the effect of reducing the risks of value-chain business interruption and help inform our investors' strategy.
Ultimately, it is about creating long-term value in a way that is consistent with the company's objectives and responsibilities. Strong business performance and positive contributions to society and the environment can reinforce one another.
1FSC™ N003618 www.fsc.org
