Pirelli and sustainable development

For Pirelli sustainability is a core choice, an integral part of the group vision and growth strategy, across all it areas of business and all its management choices. Indeed, the Pirelli Group, has long had an advanced sustainability governance system for managing the economic, social, and environmental impact associated with its processes, products, and services. This commitment is evidenced in particular by: - its Ethical Code, a statement of the general principles (transparency, honesty, and fairness) that guide its handling and conduct of operations and which sets out the aims and values of the business as applicable to its main stakeholders - its “Policy for Health, Safety, Environment and Corporate Social Responsibility”, through which Pirelli’s guarantee on the right balance between sustainability and industrial development has become in-house practice and been reinforced - its “Equal Opportunities Statement”, in which Pirelli accepts a whole series of commitments in support of Equal Opportunities in-house and, in particular, of promoting Diversity. The importance Pirelli places on equal opportunities at work is also shown by its backing for the equal opportunities charter (it was one of the first companies to sign up) as recently drawn up by Fondazione Sodalitas, AIAF, AIDDA, Impronta Etica, UCID, and Ufficio Nazionale Consigliera di Parità, with the support of the Ministry for Labour, Health, and Social Policies and the Equal Opportunities Ministry. The sustainability “model” embraced by the Group is based on the United Nations Global Compact, to which Pirelli subscribed back in 2004. Pirelli Group embraces a multi-stakeholder approach with a view to meeting the expectations of all who interact with the undertaking: Environment, Investors, Employees, Customers, Suppliers, Institutions, and the Community at large. Sustainable performance by Pirelli is quantified each year in its Sustainability Report, a key component in communicating aims achieved and new challenges to all Group Stakeholders. In addition, part of the Group’s website that is constantly updated is devoted to sustainability and provides ways for interacting with the community at large. Thanks to the Group’s commitment to sustainability and the results achieved Pirelli, for a number of years, has been included in sustainability indexes, notably FTSE4GOOD Global, European STOXX, ASPI Eurozone®, Axia Ethical Index, the Dow Jones Sustainability World and STOXX, and the ECPI Ethical Index EMU. In particular, for the third year running Pirelli was declared a world ‘Sector Leader’ in sustainability in the "Autoparts and Tyres" industry by Dow Jones, and in the 2010 Sustainability Yearbook, published by Sustainable Asset Management Group (SAM) in cooperation with Pricewaterhouse Coopers, it was recognised as a ‘Gold Class Company’ and ‘Sector Mover’ by SAM. For years Pirelli has been operating certified management systems - OHSAS 18001, ISO 14001, ISO9001, ISO/TS 16949, and ISO/IEC 17025 - with a view to ensuring non-stop Quality improvement and a constant reduction in the impact its products, processes, and services have on its workers’ health and safety and on the external Environment, Among official acknowledgements received by Pirelli in 2008-2009, the following deserve mention: - Pirelli was one of the most best known Italian brands worldwide - Pirelli secured inclusion in the “top ten” for social responsibility, a ranking system based on Accountability Rating’s measurement of response capacity and transparency among the biggest Italian undertakings - Pirelli was awarded full marks for human rights and the environment in VIGEO’s latest CSR analysis - Pirelli was one of the 100 most respected and reliable undertakings worldwide, according to New York’s Reputation Institute (both in 2008 and in 2009) - Pirelli won the innovation award presented by the Italian Confederation of Industry. Undertakings on sustainability given by Pirelli worldwide have been numerous. The main ones include: - subscribing to the EU’s CSR Alliance; - membership by Pirelli Tyre in ETRMA, the European Tyre and Rubber Manufacturers’ Association, which was followed by the drafting of the European Road Safety Charter; - participation in the World Business Council for Sustainable Development (WBCSD) and in the Tyre Industry Project Group, a project that aims to identify the potential impact on health and the environment of materials associated with tyre manufacturing and use ; - partnership signed with the European Agency for Safety and Health at Work (EU-OSHA) - its stance on managing climate change, as stated in the “The Bali communiqué”, drawn up, signed, and submitted by 150 international undertakings, including Pirelli Tyre, concurrent with the United Nations Conference on climate change in Bali last December. Business and sustainability: focus on the environment The environment is one of the central planks of the 2009-2011 industrial plan that the Group presented at the start of 2009. Consistent with its announcements at that time, the Group is continuing to develop leading-edge products and solutions in the “green economy” sector, which offers significant development opportunities in various areas: sustainable mobility, eco-compatible building construction, and renewable energy. It is expected that by the end of this three-year period the “green” contribution to revenues will rise to about 40% of the total as against about 20% at the end of 2008. In the tyre sector, in particular, Pirelli Tyre is achieving ever higher levels of “Green Performance”, as reflected in its adoption of technologies and solutions for the automotive industry that, in addition to assuring customers a high performance and safety, are increasingly ecological. “Green performance” in tyres means a commitment to reducing consumption as well as emissions of harmful substances, greater mileage, use of eco-compatible materials, and improved safety conditions. The thrust of research by Pirelli in this direction focuses on adopting green technological solutions, ranging from compounds that are more ecological to tyre structures, while not compromising vehicle safety requirements, especially during braking and cornering. Its Green performance strategy applies to all new Pirelli tyres, from its Cinturato line, the historic Pirelli brand newly re-launched last year, to its very advanced “Winter” tyre range. Similarly, its Cyber Tyre, the tyre that “reads” the road surface thanks to an integrated chip, monitors the tyre’s state of health and pressure level, so contributing to a reduction in consumption and in environmental impact. In its tyre manufacturing processes Pirelli has succeeded in particular in improving energy efficiency and in securing a reduced consumption of energy (-9.2%) and water (-12.7%) in the last five years. As regards sustainable mobility and reducing atmospheric pollution, Pirelli Eco Technology offers technologies to contain the polluting emissions of diesel vehicles. Its anti-particulate filters can reduce particulate emissions by over 90% and nitrogen dioxide emissions by over 50%, with an appreciative reduction in fine particles. Recently co-operation began on the spread of anti-particulate filters to China with the assistance of the Italian and Chinese environment ministries. Pirelli Ambiente is the group company that specialises in technology and solutions for sustainable development and its areas of operation are renewable energy sources, environmental remediation, and the energy efficiency of buildings. In particular, the company designs and manufactures photovoltaic plants and produces fuel derived from waste that is used as a replacement for carbon in cement works. Added to this are its activities in energy certification and improving the energy efficiency of buildings. Pirelli Broadband Solutions - the group company specializing in products for broad-band access - represents no departure from the group commitment to developing eco-compatible technology. It, too, sees eco-sustainable development as essential to its planned portfolio for the 2009-2011 period and offers the market innovative low-electricity-consumption products that are made with ecological materials. In the real-estate field, Pirelli RE offers solutions to reduce the potential environmental impact of managing buildings and it is initiating the first integrated program of eco-sustainable building construction through a real-estate operator: "Ecobuilding". The program concerns development projects across the entire market, from the residential to the service-sector segment, that are based on four guiding criteria: energy efficiency; use of eco-compatible materials; use of renewable sources; comfortable living. Taken together, the solutions adopted by the program make high quality standards, eco-sustainability, and energy saving achievable. The benefits for the environment are appreciable and include lower CO2 emissions into the air, reduced electrical energy for making buildings function, and an increasing use of renewable sources.