Principal international commitments for sustainability

The focus by Pirelli on sustainability is also manifested through its membership in numerous projects and programmes promoted by international bodies and institutions in the field of social responsibility. Here are some of the main commitments made by the Group worldwide (not including the numerous activities and agreements existing at local level with subsidiaries).

UN GLOBAL COMPACT LEAD

As already mentioned in other sections of the report, in addition to being an active member of the Global Compact since 2004, Pirelli belongs to the Global Compact Lead Companies, and since 2013 it has been a member of the Steering Committee of the Global Compact Lead. This initiative was officially launched in 2011 at the World Economic Forum in Davos by United Nations Secretary General Ban Ki-moon. Pirelli adheres to the “Blueprint for Corporate Sustainability Leadership”, which offers leadership guidelines envisaged in the Global Compact that has been designed to inspire advanced sustainable and, above all, innovative performance in terms of management capacity for the creation of sustainable value. In 2014 Pirelli actively participated in the following activities of the LEAD:

  • Post-2015 Development Agenda, in which the LEAD Companies work on the alignment between development of the Business and Sustainable Development Goals;
  • Realizing Long-term Value for Companies and Investors, a joint effort by the UN Global Compact and the United Nations Principles for Responsible Investment (UNPRI) – in which Pirelli acts as co-chair – aimed at improving communication between companies, market and investors on environmental, social and governance issues.

In 2015 the commitment of Pirelli at Lead labs will further intensify thanks to the participation of the Company in the Roadmap laboratory for Integrated Sustainability, which aims to create tools for full integration of sustainability in the activities of individual company functions.

From 2014 Pirelli is also Funding Participant in the SSE Corporate Working Group, a group of companies that provides its own assessments and directions as part of the Sustainable Stock Exchanges (SSE) promoted by UNPRI, United Nations Conference on Trade and Development, United Nations Environment Programme Finance Initiative and the UN Global Compact. The initiative is based on a platform for exchange of ideas and assessments that lead the world stock markets, together with investors, regulators and companies, to increase transparency on ESG business performance.   

ETRMA – EUROPEAN TYRE AND RUBBER MANUFACTURERS ASSOCIATION

ETRMA is the main partner of the EU institutions in the sustainable development of new European policies for the sector and for their proper implementation. With the institutional support of the Pirelli Group, in 2014 the association continued to work on incentives and monitoring of the implementation of the regulations of the European Commission on the general safety of vehicles and tyres, and on energy efficiency, as well as the labelling of tyres in European countries, including through the strengthening of the partnership with the national associations in the sector in which Pirelli is an active member.

In parallel, ETRMA is actively involved in defining the market surveillance regulations of the European Commission. Rounding out its vehicle safety regulatory objectives, ETRMA has contributed to revision of the European policy governing periodic technical inspections, approved in early 2014, in which tyre compliance plays a key role in road safety.

During 2014 ETRMA participated, together with the European Commission and car manufacturers, in the implementation of the new CARS 2020 (Competitive Automotive Regulatory System) strategy, whose challenges include access to raw materials, the need for new skills and greater work flexibility, sustainability of production processes and the need to ensure compliance with new and sophisticated product regulations focused on safety and environmental impact. The CARS 2020 strategy is part of the Europe 2020 strategy, in which ETRMA is heavily involved. It aims at defining the economic and social action of the Community over the next decade. It is continuing with its programme of activities to raise awareness of road safety and sustainable mobility.

ETRMA is also heavily involved in the implementation of the Emission Trading Scheme. This aims to reduce the economic impact of European energy policies, and just as in the European Innovation Partnership on Raw Materials, it has the goal of guaranteeing fair and unrestricted access to key raw materials for the sector.

Finally, the association is successfully promoting sustainable manufacturer responsibility practices for the management of end- of-life tyres. This has led Europe to achieve a recovery rate of over 95%, through close collaboration with the various operating partnerships existing in European countries. ETRMA and European best practices constitute an international benchmark.    

IRSG – INTERNATIONAL RUBBER STUDY GROUP

Pirelli is a member of the Industry Advisory Panel of the International Rubber Study Group (IRSG), an intergovernmental organisation that brings together rubber producers and consumers, acting as a valuable platform for discussion on issues regarding the supply and demand for natural and synthetic rubber. It is the principal source for information and analyses on all aspects related to the rubber industry. Under IRSG, from 2012 Pirelli is among others engaged in the Rubber Sustainability Project, which aims to create a world standard of Sustainable Management for the rubber industry. In May 2014, during the World Rubber Summit, the initiative Sustainable Natural Rubber was officially launched which is based on the recommendations of the Heads of Delegation and the Industry Advisory Panel, whose pilot operational phase is planned for 2015. The objective of the initiative is to apply a voluntary standard on sustainable natural rubber, valid for all stakeholders as well as complementary to economic, social and environmental programs promoted in manufacturing countries. It should be mentioned that about 85% of natural rubber is produced by small farmers owners of less than 3 hectares of land; the decision to plant trees and produce natural rubber therefore depends on cost opportunity and therefore an adequate long-term plan to ensure stable growth that must be based on sustainability.    

WBCSD – World Business Council for Sustainable Development

Pirelli actively participated in the WBCSD – World Business Council for Sustainable Development again in 2014. This is an association based in Geneva-of about 200 multinational companies operating in over 30 countries that have made a voluntary commitment to link economic growth to sustainable development. Pirelli adheres in particular to two projects: Tire Industry Project and Sustainable Mobility Project 2.0.

The Tire Industry Project (TIP), whose members account for about 70% of global production capacity of tires, was launched in 2005 with the objective to seize, but especially anticipate the challenges of sustainable development through the assessment of the potential impact on health and environment of tires along the life cycle. The project extends its activity to the development of raw materials, tyre debris and to nanomaterials. Regarding the latter issue, in 2014, in collaboration with the Organization for Economic Co-Operation and Development (OECD), a specific guide was developed for the sectors containing best practices for research, development and industrialisation of new nano-materials, so as to ensure that the use of any nano-material is safe for people and the environment.

The TIP group members also continued promotion in emerging countries, particularly China, India and Russia, of best practices on the management of end-of-life tires, on enhancing the recovery and reuse of the same as a resource (secondary raw material), with the aim of reducing the exploitation of raw materials and the environmental impact that it involves.

The main objective of the Sustainable Mobility Project 2.0 (SMP 2.0), in which Pirelli has participated since 2013, is to provide a tangible contribution to the realisation of the vision (2050) linked to an idea of urban mobility that is universally accessible and has a low environmental impact, both in terms of passenger transport and the road haulage industry. This three-year project (2013-2015), which draws its origins from two previous works of the WBCSD (Sustainable Mobility Project and Mobility For Development), sees as the main player a diverse group of international companies from the automotive, auto & parts, transportation, oil & gas and information and communication technology sectors. SMP 2.0 recognises the need for city governments, private companies and non-governmental organisations to work together to achieve these ambitious, but now essential, objectives for a world in which 70% of the population will be living in urban areas by 2050. The companies participating in the project, taking into account the different geographical, economic and infrastructural contexts, have selected six pilot cities (Hamburg, Bangkok, Campinas, Chengdu, Indore and Lisbon) in which a roadmap is being developed that will involve a detailed action plan to improve each city’s performance in terms of sustainable mobility. Among the six cities identified, Campinas (Brazil), the site of a major Group plant, sees Pirelli in the role of task force leader of the project.   

EU-OSHA – EUROPEAN AGENCY  FOR SAFETY AND HEALTH AT WORK

In 2014, for the sixth consecutive year, Pirelli continued its activity as official partner of the European Agency for Safety and Health at Work (EU-OSHA). Every two years the Agency tackles a different issue. The new 2014-2015campaign “Healthy Workplaces Manage Stress” is focused on the issue of stress and psycho-social risks in the workplace and is designed to encourage employers, executives, and workers and their representatives to collaborate together towards the management of these risks. 

In adhering to the Campaign, Pirelli confirmed its commitment to promoting a healthy work environment, where employees feel valued and psychosocial risks are effectively prevented and countered.    

CSR EUROPE

Since 2010, Pirelli has been a member of the Board of CSR Europe, represented by the Sustainability and Risk Governance Director. CSR Europe is a network of leading companies in Europe in the field of corporate social responsibility, and counts among its members more than 60 multinational corporations and 40 national partner organisations established in 29 European countries, allowing them to collaborate and exchange experiences to become global leaders in sustainable competitiveness and social well-being.

In addition to several collaborative projects between companies to improve the performance of company management, CSR Europe has placed the priority on the European campaigns Skills for Jobs and Sustainable Living in Cities, as well as on the "Enterprise 2020" initiative, recognized by the European Commission as a Business Leadership example of particular importance to support the achievement of the policy objectives of Europe.

Through the Enterprise 2020 initiative, in fact, CSR Europe promotes collaboration, innovation and practical action in order to shape the contribution of companies to the Europe 2020 strategy for intelligent, sustainable and inclusive growth.

The strategy outlined by CSR Europe to achieve the 2020 objectives of the European Union will be reiterated in the "Milan Enterprise 2020 Manifesto," a document that will be presented in Milan at the conference "Last Call to Europe in 2020" to be held in June 2015 in conjunction with Expo.

On the same days the annual General Assembly of CSR Europe will be held at Pirelli, as well as the meeting of the National Partners Organisations.   

CORPORATE LEADERS’ GROUP ON CLIMATE CHANGE COMMUNIQUÈ

For years Pirelli has renewed its commitment to the fight against climate change, promoting the adoption of adequate energy policies for the reduction of CO2 emissions.

In 2014 Pirelli signed the Trillion Tonne Communiqué, an initiative coordinated by the Prince of Wales' Corporate Leaders Group and managed by the University of Cambridge. The document requires that global emissions over the next 30 years should remain below the trillion tonnes of greenhouse gases in order to avoid a rise in average global temperatures above 2°C and thus avoid the disruptive climate impacts that would be inevitably associated with such a rise. In 2012 Pirelli signed the Carbon Pricing Communiqué, in 2011 it signed the 2nd Challenge Communiqué, while in 2010 it signed the Cancún Communiqué, in 2009 the Copenhagen Communiqué and in 2007 the Bali Communiqué, which was the first document on the development of concrete strategies through joint work by governments on a comprehensive global climate agreement.

In 2014 Pirelli declared its adherence to the "Road to Paris 2015" initiative in preparation for the next UNFCCC World Summit to be held in Paris in late 2015.

In this context, Pirelli has officially signed three initiatives that are consistent and connected with its strategy of sustainable development:

  • Responsible Corporate Engagement in Climate Policy;
  • Put a Price on Carbon;
  • Climate Change Information in Mainstream Filings of Companies Communication.