Green sourcing policy

In December 2012 Pirelli published and issued the Green Sourcing Policy with the aim of stimulating and encouraging environmental awareness throughout the entire supply chain and promoting strategies capable of reducing the environmental impact of Pirelli goods and services procurement activities.

The Green Sourcing Policy implementation system was defined in 2013, both inside Pirelli and in supplier relationships. It is organised as follows:

  • drafting of the “Pirelli Green Sourcing Manual”, an internal document containing operating Guidelines, intended to guide the activities of the Pirelli functions involved in the Green Sourcing process;
  • drafting of the “Pirelli Green Purchasing Guidelines”,a document targeting Pirelli suppliers, and part of the Supply Agreement, based on the Green Sourcing Manual, which contains the KPI (Key Performance Indicators) for assessing the Green Performance of suppliers,
  • integration of Green Performance in the traditional process of measuring supplier performance (vendor rating).

The Pirelli Green Sourcing Manual defines four areas of Green Sourcing: Materials, Capex, Opex and Logistics.

Interdepartmental working groups, comprised of Purchasing, R&D, Quality, HSE and Sustainability analysed the Green Sourcing process associated with the merchandise categories falling within the four areas mentioned above. Green Engineering Guidelines were defined for the Materials and Capex areas, where the design component (what is conceived in-house) is material to the Pirelli core business. Instead, in the Opex and Logistics areas, which are characterised by merchandise categories where the design component is not as material, Green Operating Guidelines were nonetheless drafted in reference to internationally recognised best practices.

So, the Green Sourcing Manual is a unique document that contains:

  • the general part on Green Sourcing issues;
  • the Green Engineering Guidelines (Materials, Capex);
  • the Green Operating Guidelines (Opex, Logistics).

The Green Sourcing Manual will also be adopted by the Pirelli Training Academies for training of the departments involved in the Green Sourcing process.

On the basis of the Green Sourcing Manual Guidelines, the Pirelli Green Purchasing Guidelines to be provided to Pirelli suppliers will be published in 2014. This document will not only explain the organisation of the Pirelli Green Sourcing system, but will also contain the KPIs used to assess the suppliers’ own green performance.

So, in 2015 the measurement of Pirelli suppier green performance will be integrated in the Vendor Rating to promote continuous improvement in this aera, aside from those that have been traditionally present.