Supply chain sustainable management system

The procurement processes and partnership relationships with suppliers are guided by the Purchasing Department of Pirelli and by specialists present at the various subsidiaries around the world.

Responsible management that is integrated in economic, social, environmental and governance terms characterises the relations between Pirelli and its suppliers. The “quality” of firms that provide goods and services is also a fundamental element in realising the Pirelli premium strategy.

The Pirelli supply chain Sustainable Management System was audited by an independent third party in accordance with the AA1000 Assurance Standard (2008), in 2011, 2013, and 2014, as documented in the Assurance Statements accompanying the Sustainability Reports for the years mentioned.

The social and environmental responsibility and business ethics of a Pirelli outsourcer are evaluated together with the economic quality and the quality of the product or service to be provided from time that a potential supplier is assessed. Analysis of its ESG performance then continues with qualification of the future supplier that was pre-analysed during the assessment phase, and is then incorporated in the supply agreement with the Sustainability and Business Ethics Clauses included in all contracts. In the post-contractual phase, the sustainability performance of the supplier is audited by an independent third party.

In September 2014 on the corporate website of Pirelli the "Suppliers' Area" (pirelli.com/ suppliers) was released, a new section dedicated to the world of supply, accessible to current and potential suppliers of Pirelli and to anyone interested in knowing the management model adopted by the Company as part of the purchases of goods and services in the world.

The new communication channel aims for maximum clarity and sharing of the Values, Guidelines and Standards adopted by Pirelli in its relationships with Suppliers, made explicit through the publication of explanatory documentation, such as the Supplier Handbook.