Principal international commitments for sustainability

A number of the principal commitments made by Pirelli worldwide are illustrated as follows. The list does not include the numerous activities and agreements existing at the local level with Group affiliates.

ETRMA – European Tyre and Rubber Manufacturers Association

ETRMA, the principal partner of EU institutions for the sustainable development of new European policies for the sector and their proper implementation with the institutional support of the Pirelli Group, worked very intensely again in 2013 on the preparation of provisions to implement regulations issued by the European Commission covering the general vehicle and tyre safety and energy efficiency, as well as tyre labelling, which represents an absolute first for the sector in Europe.

In conjunction with these activities, ETRMA is actively involved in defining the European Commission market supervision regulation. It continues to urge EU Member States to develop policies for monitoring the compliance sold on the market with EU laws.

Partly for this reason, it has reinforced its partnership with national tyre industry associations. Rounding out its vehicle safety regulatory objectives, ETRMA has contributed to revision of the European policy governing periodic technical inspections, where tyre compliance plays a key role in road safety.

ETRMA actively participates in the implementation of the new CARS 2020 (Competitive Automotive Regulatory System) system. Pirelli has participated in the working groups supporting the high level CARS 21 group, and its challenges concern access to raw materials, the need for new skills and greater worker flexibility, the sustainability of production processes and the need to guarantee compliance with the new and sophisticated product regulations that focus 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.

Another strategic activity in which ETRMA is heavily involved is 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 endof- life tyres. This has led Europe to achieve a more than 95% recovery rate, through close collaboration with the various operating partnerships existing in European countries. Special mention must be made of the fact that the good ETRMA and European 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 the auspices of the IRSG, since 2012 Pirelli has been involved in the Sustainability Rubber Project, among other initiatives. The aim is to create a Global Standard for Sustainable Management in the rubber industry. The initial focus is on natural rubber and, at a later time, the project may also be extended to synthetic rubber.

The Sustainable Natural Rubber Action Plan was announced at the World Rubber Summit in May 2013.

This Plan is based on the recommendations of the Heads of Delegation and the Industry Advisory Panel to which Pirelli belongs. It aims to promote the use of a voluntary standard for sustainable natural rubber that is valid for all stakeholders.

About 85% of natural rubber is produced by smallscale farmers who own less than three hectares of land. The decision to plant trees and produce natural rubber thus depends on the cost/benefit relationship, and consequently on an adequate long-term plan to guarantee stable growth, which must be based on sustainability.

The announced plan is complementary to national economic, social and environmental programmes promoted in the producer nations.

wbcsd - world business council for sustainable development

Pirelli actively participated in the WBCSD – World Business Council for Sustainable Development again in 2013. This is a Geneva-based association of about 200 multinational companies based in over 30 countries that have made a voluntary commitment to link economic growth to sustainable development.

In particular, Pirelli Tyre belongs to the Tyre Industry Project Group, whose members represent about 75% of global production capacity. The goal of the project, which was launched in 2005, is to seize and even anticipate the challenges of sustainable development through assessment of the potential impact of tyres on health and the environment throughout their life cycle. The project, which initially focussed solely on raw materials and tyre debris, with the aim of developing new knowledge and formulating a new approach in the industry, has extended its scope to nanomaterials. Its goal is to develop a specific guide for the sector in collaboration with the Organization for Economic Cooperation and Development (OECD). This guide would set out the best practices for research, development and production of new nanomaterials, ensuring that the use of any nanomaterial is safe for both people and the environment.

The members of the group have also continued promoting best practices for end-of-life tyre management in emerging countries, to encourage their recovery and reuse as a resource (secondary raw material). This will make it possible to reduce the use of raw materials and environmental impact that this involves.

In view of contributing to guidance for technological choices, management systems and sustainable mobility policy, since 2013 Pirelli Tyre has actively participated in the Sustainable Mobility 2.0 (SMP 2.0) project. Its principal aim is to make a tangible contribution to realisation of the Vision (2050) linked to a notion of universally accessible urban mobility having a low environmental impact, both for human transport and freight transport in motor vehicles. In this three-year project (2013-2015), which originates from two previous works by the WBCSD (Mobility 2020 and Mobility For Development), the key player is a heterogeneous group of international companies that are largely involved in the automotive and auto&parts sector. Sustainable Mobility 2.0 will raise awareness of the need to promote sustainable mobility, both in an environmental perspective (low impact in terms of energy consumption) and social perspective (with special focus on less affluent segments of the population, fewer road accidents). Through this comprehensive approach to urban mobility, SMP 2.0 will contribute to a more prosperous society, not only in terms of new mobility solutions, but especially by altering the existing paradigms of urban travel.

SMP 2.0 recognises the need for city governments, private business and non-governmental organisations to work together to achieve these ambitious, but now essential goals for a world in which 70% of the population will live in urban areas by 2050. Precisely for this reason, the companies participating in the Sustainability Mobility 2.0 project, assisted by WBCSD, have selected six pilot cities (which are highly representative of the different geographic, economic and infrastructure contexts) for which to develop a roadmap that offers a detailed action plan to improve urban performance in terms of sustainable mobility.

EU-OSHA – european occupational safety and health agency

For the fifth consecutive year, Pirelli continued to be an official partner of the European Occupational Safety and Health Agency (EU-OSHA) in 2013. Every two years the Agency tackles a different issue. The new campaign for 2012-2013 is entitled “Working together for Risk Prevention”, and focuses on fostering leadership in the context of health and safety at work, fundamental when it comes to involving all members of personnel in reducing the number of accidents in the workplace.

Pirelli is counting a lot on the strategic role of leaders in risk prevention, considering it fundamental that leaders have a clear and visible commitment together with engaging in exemplary conduct for all workers.

CSR Europe

Pirelli has been a member of the Board of CSR Europe since 2010. It is represented by the Sustainability and Risk Governance Manager, who holds the position of Deputy Chairman of the Board with delegated authority over Governance and Finance.

CSR Europe is a network of companies in Europe that are leaders in the area of corporate social responsibility.

Its members include more than 60 multinational companies and 38 national partner organisations from 29 European countries.

The network was founded in 1995 by European business leaders, in response to an appeal by European Commission President Jacques Delors.

CSR Europe functions as the European platform for the more than 5,000 businesses and interested parties, enabling them to cooperate and exchange experiences to become global leaders with Europe in the areas of sustainable competitiveness and social well-being.

The European Commission Statement on the CSR sets out a new European strategy for the CSR and recognises the “Enterprise 2020” initiative of CSR Europe as an example of particularly important business leadership in support of attaining the political objectives of Europe.

Jose Manuel Barroso, President of the European Commission, has said: “Europe 2020 aims at building a stronger European Union, based on a competitive economy, with the skills and flexibility necessary to confront a rapidly changing world, but also characterised by social inclusion according to the European Model. This is a task for all of us – the European Commission and all European institutions, the Member States, businesses and social partners – and for this reason the European Commission fully supports the Enterprise 2020 initiative”

Herman Van Rompuy, President of the European Council:

“Together, your network and the Union share a common interest: restoration of employment and economic growth. This is not only a common objective that we share, but we must also co-operate to achieve it. European Institutions and governments may jointly decide on the agreements and contexts, but then it is business alone that will have to take action in the field”. Through the Enterprise 2020 initiative that is part of the Europe 2020 strategy adopted by the European Council, CSR Europe promotes collaboration, innovation and practical action to shape the contribution of companies to the Europe 2020 strategy for intelligent, sustainable and inclusive growth.

With Enterprise 2020, CSR Europe is committed to:

  • supporting businesses in the creation of sustainable competitiveness, by offering a platform for innovation and the exchange of experiences;
  • encouraging close collaboration between businesses and stakeholders, by exploring new forms of cooperation to create a sustainable future;
  • reinforcing the global leadership of Europe in CSR, by engaging European institutions and a wider range of international players.

CSR Europe has prioritised two European business campaigns – Skills for Jobs and Sustainable Living in Cities – as well as a number of collaboration projects and sector initiatives that aim to improve corporate management performance.

Pirelli has participated in the European Alliance for CSR since 2007, fully sharing the approach to sustainability as a strategic and competitive business management technique. Until now, the participation of Pirelli – promoted by the European Commission in Brussels to encourage the dissemination and exchange of best practices for sustainability amongst companies – of active involvement in the European Laboratories of the initiative, coordinated in Italy by the Sodalitas Foundation and by CSR Europe throughout Europe.

SHARED VALUE CREATION

SHARED VALUE CREATION

Source: CSR Europe

endorsement of the communiqué of the corporate leaders' group on climate change

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

It is expected that the next Communiqué of the Corporate Leaders’ Group on Climate Change will be issued in 2014. The last one was issued 2012, when Pirelli signed The Carbon Pricing Communiqué, a planning document that originated at Cambridge University on the initiative of the Prince of Wales. Since its origin, it has aimed to bring together the biggest British, European and international corporate groups, motivated by the conviction that new, long-term policies are essential for coping with climate change. In 2011 Pirelli signed the 2nd Challenge Communiqué, while in 2010 it signed the Cancún Communiqué, in 2009 signed the Copenhagen Communiqué and in 2007 it signed the Bali Communiqué. That was the first document for development of concrete strategies through joint work by governments on a comprehensive global climate agreement.