The California Transparency in Supply Chains Act of 2010

Pirelli Tire LLC Disclosure- The California Transparency in Supply Chains Act of 2010

Effective January 1, 2012, the California Transparency in Supply Chains Act of 2010 (Senate Bill 657) requires retailers and manufacturers doing business in California to disclose efforts to eradicate slavery and human trafficking from its direct supply chain.  Pirelli supports the goals of the California Transparency in Supply Chains Act of 2010, thereby allowing consumers to make informed choices regarding the products they purchase and the companies they chose to patron. 

Pirelli enjoys a long history of being committed to the highest standards of honesty, integrity and trust in all aspects of business and to meet all responsibilities to our customers, employees, shareholders and to all members within our global communities including our Suppliers.  Consistent with this policy, Pirelli unequivocally supports the elimination of human trafficking and slavery by conducting all forms of business in an ethical manner that provides protection and advancement of human rights. 

See our (“Human Rights Policy”)
See our policy regarding (“Conflict Minerals”)
See our (Pirelli “Social Responsibility Policy for Occupational Health, Safety and Rights, and Environment”)
Pirelli has been included in the (Dow Jones Sustainability Indices) since 2002
See (Pirelli Sustainability Channel)

Our Suppliers and External Workers
Pirelli builds sustainable relationships with all its partners including suppliers by employing suppliers that comply with its human rights, commercialization and corporate governance, quality, health & safety and environmental standards and pledge to continuous improvements.  Responsible management is integrated in economic, social, environmental and governance terms characterize the relations between Pirelli and its suppliers. These relationships are based on strong values and ethics that are detailed in our Values and Ethical Code- Suppliers and Outside Workers


The procurement processes and partnership relationships with suppliers are managed by the Pirelli Purchasing Department in Milano, Italy.

Pirelli Supplier Risk-Based Assessment, Selection, Certification, Qualification and Audit Phases
Social and environmental responsibility and business ethics of all Pirelli suppliers and outsourcer are evaluated and assessed with the economic quality and the quality of the product or service to be provided.  Analysis of its ESG performance then continues with qualification of the future supplier that was pre-analyzed during assessment, and is then incorporated in the supply agreement with the Sustainability and Business Ethics Clauses included in all contracts. These clauses contains specific language regarding human rights and other workplace issues, as well as the right for us to perform human trafficking and slavery audits at any time.   After the supply agreement has been made, the sustainability performance of the supplier is audited by an independent third party.

We perform an assessment of the materials and countries of origin in our United States raw material supply chain. The baseline for the assessment for raw materials destined to the United States is the U.S. Department of Labor's (DoL's) 2010 report listing "goods from countries" that the Bureau of International Labor Affairs has reason to believe are produced by forced labor, child labor or both, in violation of international standards.

 Also see (Pirelli Suppliers Risk-Based Assessment, Selection, Qualification and Audit Phase) requirements

Pirelli’s suppliers are provided with the Whistleblowing Procedure (ethics@pirelli.com), expressly indicated in the clauses and available for reporting, absolutely confidentially, any violation or suspected violation they become aware of in relations with Pirelli and with reference to the contents of the “Values and Ethical Code”, “Code of Conduct” and the “Social Responsibility Policy for Occupational Health, Safety and Rights, and Environment” of the Group.

Pirelli Vendor Rating covers all the goods and geographical purchasing areas and utilized as an integral part of commercial negotiations.

Pirelli Sustainability and Purchasing employees and Supplier Training
Pirelli employees directly responsible for suppliers and sustainability managers are provided awareness training on human trafficking, such as forced labor and child labor, and are expected to report any known or suspected violations. 
Pirelli also developed a training tool for supplier training that is a e-learning platform and format with specific training elements that covered labor law, human rights, respect for the environment and business ethics.

Pirelli Sustainability and Purchasing employees and Supplier Accountability
In addition to the items described above, Pirelli expects all of its suppliers to take a proactive role to ensure that they comply with the California Transparency in Supply Chain Act of 2010 (Senate Bill 657) and maintains a robust, broad-based ethics and compliance program that stresses values, leadership, training, audits, inspections, certifications and accountability. This broad-based program is intended to ensure compliance with all applicable laws and maintains a culture committed to ethics and integrity.  Suppliers who fail to meet Pirelli standards and the California Transparency in Supply Chain Act of 2010 are subject to involuntary discontinuation of business with Pirelli.
All employees are subject to disciplinary procedures for any violation of the Pirelli standards including the California Transparency in Supply Chain Act of 2010.