The commitment to create long-term value that characterises the company’s responsible management and economic, social and environmental performance, has led to Pirelli being ranked on some of the world’s most prestigious stock market sustainability indices for years. Pirelli is also substantially held in the portfolios of socially responsible investors, both inside and outside Europe. Specific road shows are dedicated to socially responsible investors, as illustrated in more detail in the section on relations with investors and the financial community presented in Chapter 2 of this report.
The major ethical finance indices on which Pirelli appears in 2013 are illustrated as follows.
DOW JONES SUSTAINABILITY
Pirelli has been included in the Dow Jones Sustainability indices since 2002. For the seventh year in a row, Pirelli was confirmed as global sustainability leader in the ATX Auto Components segment in September 2013, as part of the Dow Jones Sustainability World and Europe indices. Pirelli’s overall rating for 2013-2014 was 85 points, compared with an industry average of 51.
The Dow Jones indices are revised every year by RobecoSAM, a Swiss asset manager responsible for assessment, admission or exclusion of companies from the Dow Jones sustainability equity indices.
In January 2014 Pirelli was named World Sustainability Leader in the ATX Auto Components” Sector and Gold Class Company for the seventh year in a row in the prestigious Sustainability Yearbook 2014, published by RobecoSAM. The Yearbook is one of the most complete and authoritative global reference tools for sustainable finance specialists. It includes only the top sustainability scoring companies, ranked as such by RobecoSAM in the Dow Jones Sustainability Assessment, or 15% of firms in 58 business sectors.
Pirelli has been included in the FTSE Global and European STOXX indices since 2002. Pirelli’s 2012 rating in the Automobiles & Parts sector was 100 out of 100, up from 99 in March 2012 and 98 in September 2011. The analysed universe is the one of the FTSE All- Share Index and the FTSE Developed Europe Index..
CARBON DISCLOSURE LEADERSHIP
Also in 2013 Pirelli has been included in the Carbon Disclosure Leadership Index (CDLI), with a rating of 96 (compared with 89 in 2012), which is the top ranking among leading global tyre makers.
Carbon Disclosure Project (CDP) is an independent, non-profit organisation that offers companies and countries a system for measuring, recording, managing and sharing global information on climate and water resource change. Today more than 3,700 organisations present in the most economically developed countries measure their own greenhouse gas emissions and analyse the risks and opportunities related to climate change through the CDP, with the aim of establishing emission reduction objectives and improving results.
The CDP is supported by 655 institutional investors that manage over USD 78 billion and control the largest international database containing information about the climate change management policies implemented by the most important global organisations.
GLOBAL COMPACT 100
Pirelli is the only tyre manufacturer among the 100 companies that comprise the global index.
The Global Compact 100 is composed of 100 companies chosen on the basis of their compliance with the ten guiding principles of the UN Global Compact, which expresses the commitment by management to issues related to sustainability and income level.
These companies, whose stock market performance was monitored by UN Global Compact over the last three years, have outperformed the FTSE® All World stock index over the past two years, generating a 26.4% return over the last 12 months. Inclusion in the Global Compact 100 is one of the most important forms of recognition in the sustainability sector for companies that are committed to aligning their activities and strategies with the ten universal principles in the areas of human rights, work, and environment in view of responsible globalisation.
OEKOM RESEARCH AG RANKING
Pirelli is the global sustainability leader among automotive sector suppliers, according to the Oekom Research AG ranking in 2013.
Oekom Research AG is one of the top rating agencies for responsible investments (i.e. Socially Responsible Investments, or SRI), partner of institutional investors and provider of financial services. Analysts have assessed the sustainability performance of the 40 top suppliers in the global automotive sector.
ETHIBEL EXCELLENCE INVESTMENT REGISTER
Pirelli & C has been included in the Ethibel EXCELLENCE Investment Register since December 19, 2013. Forum ETHIBEL (www.forumethibel.org) only considers shares of firms that receive a high CSR rating on all related issues. The selection of Pirelli by ETHIBEL confirms the superiority of the Company’s CSR performance compared to the industry average.
STOXX GLOBAL ESG LEADERS
For the third year in a row, Pirelli is part of the STOXX ® Global ESG Leaders Indices 2013-2014. The indices were compiled in 2011 by STOXX Limited which, on the basis of sustainability performance, selects 313 companies from among the 1,800 stocks included in an initial basket of international equities, the STOXX Global 1800 Index.
These indices base their own selection criteria on indicators suggested by EFFAS (European Federation of Financial Analysts Societies) and DVFA (Society of Investment Professionals in Germany), awarding scores to the examined firms on the basis of ESG assessment principles given by the rating agency Sustainalytics.
EURONEXT-VIGEO EUROZONE 120
In 2013 Pirelli entered the Euronext-Vigeo Eurozone 120 index, which is comprised by the 120 listed companies with the highest sustainability rating in the eurozone.
Pirelli has been included in ECPI sustainable finance indices since 2008, and in particular:
- in the ECPI Ethical EMU Index, which ranks the 150 largest companies by capitalisation in the EMU (Economic and Monetary Union) market;
- in the FTSE ECPI Italia SRI Benchmark, whose components, selected from the FTSE MIB and FTSE Italia Mid-Cap baskets, are distinguished by their good rating in environmental, social and governance (ESG) terms;
- in the FTSE ECPI Italia SRI Leaders index, whose members, selected from the FTSE MIB and FTSE Italia Mid-Cap baskets, are qualified as excellent in terms of environmental, social and governance (ESG) sustainability.
The ECPI Italia SRI Benchmark and FTSE ECP Italia SRI Leaders indices were launched on September 19, 2010 by ECPI and FTSE Group. They represent the first series of indices on the Italian market for responsible investment.
According to the ECPI assessment, Pirelli is one of the firms that have a transparent long-term strategic outlook, good operating management and make a positive contribution to society and the environment.