Sustainable Governance

Sustainable governance at Pirelli means full integration of sustainability with the various aspects and ambits of business management. So, sustainability represents the management system adopted by the Company and translates in the mapping, control and sustainable management of the economic, social and environmental impact and opportunities connected with its own processes, products and services, in view of innovation and the awareness of its role as a multinational group in a global context.

The principles underlying our sustainability model

The Global CompactThe Pirelli sustainability model is inspired by the United Nations Global Compact and the ISO 26000 Guidelines, embracing the entire value chain to preserve and develop group assets. In October 2004, in a letter addressed to the Secretary General, Kofi Annan, Pirelli Group formally declared its adherence to the United Nations Global Compact and its commitment to observe and support its Ten Principles in the areas of human rights, labour standards, the environment and the fight against corruption. This letter is published in the Sustainability section at www.pirelli.com.

The compliance of the Pirelli Sustainability System with the ISO26000 Guidelines was audited by third party, as specified in the letter of assurance at the end of this report.

The Values and Ethical Code of the Pirelli Group

The document outlines Pirelli ’s sustainable approach to business, by imposing strict, uniform guidelines for professional practices that everyone working in, for and with the Company must obey. Approved by the Board of Directors of Pirelli & C. S.p.A. in 2003, the Ethical Code was amended in 2009 to bring it in line with the evolution of the Group’s sustainability strategy and to satisfy new market and corporate governance requirements. The amended version was then approved by the Board of Directors of Pirelli & C. S.p.A. Within the ambit of their own functions and responsibilities, the directors, statutory auditors, executives and employees of the Pirelli Group, as well as everyone else who works on behalf or in favour of the Pirelli Group inside and outside Italy, or who have business relationships with it (the “Addressees of the Code”) must comply with the principles and obligations set out in the Code.

More specifically, the Code:

  • illustrates the values on which Pirelli ’s own business activities are based, i.e. fidelity, fairness, transparency, sustainable growth, customer focus, responsibility and results-oriented effort, professional excellence, innovation, quality and performance, integration and promptness;
  • indicates the principles of conduct on which Pirelli bases its own business activity in internal and external relations;
  • identifies the stakeholders with which Pirelli interacts, describing the sustainable approach that characterises their relationship with each one of them;
  • provides appropriate penalties for violation of the Code.

Sustainability Competitiveness and GrowthThe Group’s Whistleblowing procedure is a key tool for enforcing compliance with the Code, and is the subject of a special section elsewhere in this chapter.
The Values and Ethical Code and the Whistleblowing Procedure have been distributed to all Pirelli employees in local language versions.
Suppliers too are formally required to comply with the values and business approach set out in the Code. This is why the document has been published in the sustainability section of the Pirelli institutional website not only in the languages spoken by its employees but also in those that are most representative of the panel of suppliers.

Code of Conduct

The Pirelli Group Code of Conduct was approved in its amended version in 2010 by the Board of Directors of Pirelli & C. S.p.A. and represent a guide to good practice in corporate conduct, compliance with the applicable law and regulations in the countries where Pirelli operates, to avoid creating environmental situations that are favourable to the commission of criminal offences. The Code of Conduct sets out the operating application of the Group Ethical Code, specifically in regard to three ambits:

  • in relations with the public administration;
  • in corporate and market disclosures;
  • in relations with internal parties and parties outside the Group.

The Code of Conduct outlines – extensively but not exhaustively – conduct in regard to what should and what should not be done, where what should be done imposes mandatory compliance with the laws and regulations in force in all countries where the Group operates, and the rules of conduct to be followed. The rules regarding what should not be done identify prohibited conduct.
The principles and undertakings described by the Code of Conduct also apply to relations with suppliers. For this reason, they are provided in the languages spoken by Pirelli Group employees and in those languages that most represent the panel of suppliers.

Policy on social responsability for occupational health, safety and rights, environment

The Policy affirms Pirelli’s formal acceptance of the Universal Declaration of Human Rights, the International Labour Organisation Declaration on Fundamental Principles and Rights at Work, the Rio Declaration on Environment and Development and the United Nations Convention against Corruption, from which the principles of the Global Compact are derived.
The commitments affirmed in the Policy are inspired by the cited documents, and thus the United Nations Global Compact – of which Pirelli has been an active member since 2004 – and the contents of the SA8000® international standard. The Company officially adopted this standard in 2004 as the benchmark tool for management of social responsibility.
Suppliers are also formally required to comply with the principles and commitments stated in the Policy, just as they must comply with the Code of Conduct and the Ethical Code.
The Policy, which was issued in 2004 and officially revised by the Chairman in 2009, has been distributed to all employees in their local language. It has also been published in the Sustainability section of the Pirelli institutional website, not only in the languages spoken by employees but also in those that are most representative of the panel of suppliers.

Equal Opportunities Statement

The Equal Opportunities Statement sets out the proactive approach taken by Pirelli to equal opportunities in the workplace and career development, while also clearly illustrating the Group’s approach to personal development in the management of diversity. It lists the commitments made by Pirelli in this area, as also set out in The Values and Ethical Code, in the Pirelli Group Occupational Health, Safety, Environment and Social Responsibility Policy and – a priori – the United Nations Global Compact and the SA8000® Standard.
The Statement, which was issued by the Chairman in 2006, has been distributed to all employees in their local language and published in the Sustainability section of the Pirelli institutional website, available to the External Community.
For more details on the management of diversity and equal opportunities at the Company, please see the section dedicated to these topics in the Social Dimension chapter of this report.

Quality policy

The Quality Policy reflects the full integration of sustainability in the Group’s management strategy. Quality is a core value in Pirel - li operations, pervading all of its functions and processes. Its scope of application ranges from continuous innovation of products, services, processes and systems to protection of the integrity, health and wellness of Group employees, environmental protection throughout the entire product life cycle, and strategic collaboration with suppliers.
“Corporate quality” essentially corresponds to a focus on the demands and interests of stakeholders, ethics, innovation, excellence and safety for sustainable competitiveness. Specific emphasis is given to personal involvement and the key role that individuals play in promoting the cultivation of a sustainable quality culture.
The Policy, which was officially revised by the Chairman in 2009, has been distributed to all employees in their local language. It has also been published in the Sustainability section of the Pirelli institutional website, not only in the languages spoken by employees but also in those that are most representative of the panel of suppliers.