Stock market indices and ethical finance

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.

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 in the second chapter of this report.

The following ethical finance indices on which Pirelli appears and changes in 2011 are illustrated as follows.

Dow Jones sustainability indices

indici di sostenibilità Dow Jones

Pirelli has been included in the Dow Jones Sustainability indices since 2002.

For the fifth year in a row, Pirelli was confirmed as global sustainability leader in the Auto parts & Tyres segment in September 2011, as part of the Dow Jones Sustainability World and Europe indices.

Pirelli’s overall rating for 2011 was 91% (+1% from 2010), compared with an industry average of 53% (-2% from 2010).

The Dow Jones indices are revised every year by SAM Group, a Swiss asset manager responsible for assessment, admission or exclusion of companies from the Dow Jones sustainability equity indices.

In January 2012 Pirelli was named world sustainability leader in the “Auto parts and Tyres” Sector and Gold Class Company for the fifth year in a row in the prestigious Sustainability Yearbook 2012, published by SAM Group in collaboration with KPMG.

The Yearbook is one of the most complete and authoritative global benchmarking tools for sustainable finance specialists. It includes only the top sustainability scoring companies, ranked as such by SAM Group in the Dow Jones Sustainability Assessment, or 15% of firms in 58 business sectors.

FTSE4GOOD indices

indici FTSE4GoodPirelli has been included in the FTSE Global and European STOXX indices since 2002.

Pirelli ’s March 2012 rating in the Automobiles & Parts sector was 99 on a scale from 1 to 100, up from September 2011 rating of 98/100.

The benchmark is comprised of the FTSE All-share Index and FTSE Developed Europe Index, excluding tobacco and weapons makers, owners or operators of nuclear power plants, and uranium mining or production companies.

ECPI indices

Indice ECPIPirelli has been included in the ECPI ethical finance indices since 2008.

In particular, Pirelli is included:

  • 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 ECPI 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 longterm strategic outlook, good operating management and make a positive contribution to society and the environment.

AXIA indices

Indice Axia Pirelli has been included in the Axia indices since 2004 (the year they were created), being listed in the Axia ASI (Axia Sustainable Index).
Pirelli has been awarded an A+++ rating for five consecutive years (i.e. the top score possible in terms of “ethical class”), with a 2011- 2012 score of 88.9.

 

ASPI Eurozone® index

Indice ASPI EUROZONE®Pirelli has been included since the beginning of 2005 in the ASPI EUROZONE® (Advanced Sustainable Performance Indices) index, which includes the 120 best-performing companies in terms of sustainability on the basis of ratings issued by Vigeo, a social and environmental rating agency. The ASPI survey pool is comprised by the companies included in the DJ EURO STOXX index. The 120 companies with the best sustainability performance are ranked on the ASPI EUROZONE ® index.

Kempen indices

Indici KEMPENPirelli has held “Pass Status” since 2003 in the entire Kempen Capital Management “KEMPEN SNS Socially Responsible Investing Universe,” with continually improving ratings. Its rating reflects the screening based on strict criteria of ethical, social and environmental performance, and considering its continuous presence in the Kempen / SNS SRI Universe.

According to Kempen, “Pirelli demonstrates that it has clear corporate social responsibility strategies”.

The investing universe includes companies listed in Europe that prove they have adopted the highest standards in terms of ethical, environmental, and human resource standards and reporting.