Sustainability clauses of contract

Since 2008, sustainability clauses have been systematically included in contracts and purchase orders for goods and/or services and/ or works, both with private suppliers and with the Public Administration (or entities/ companies controlled by them) or NGOs worldwide.

These clauses were revised in 2011, in view of summary simplification, while maintaining the key elements of social and environmental responsibility and business ethics that are currently included, and providing for audits by Pirelli . In particular, the clauses:

  • require awareness by our suppliers of the principles, commitments and values set out in the Pirelli sustainability documents, i.e. “Values and Ethical Code,” “Code of Conduct,” and “Health, Occupational Safety, Environment and Social Responsibility” Policy published and accessible on the web. These set out the principles followed by Pirelli in management of its activities and relations with third parties, whether or not contractual relationships exist with them;
  • require that Suppliers confirm their own commitment to:
    • not using or supporting the use of child labour and forced labour;
    • ensuring equal opportunity, freedom of association and promotion of the development of each individual;
    • opposing the use of corporal punishment, mental or physical coercion or verbal abuse;
    • compliance with applicable laws and industry standards on working hours and ensuring that wages shall be sufficient to meet the basic needs of personnel;
    • establishing and maintaining appropriate procedures to evaluate and select suppliers and subcontractors based on their commitments to social and environmental accountability;
    • not tolerating corruption in any way, shape or form in any jurisdiction, even if such activities are allowed, tolerated or non-prosecutable;
    • assessing and reducing the environmental impact of its own products and services throughout their entire life cycle;
    • responsible use of material resources, in view of achieving sustainable growth that respects the environment and the rights of future generations;
    • imposing these principles, values and policies on their own subcontractors and sub-suppliers, regularly monitoring that the actually comply with this obligation.

On the basis of these sustainability clauses, Pirelli is granted the right to conduct audits at any time, either directly or through third parties that the supplier has effectively satisfied its assumed obligations. In view of assuring maximum guarantees of compliance, the clauses impose the obligation on suppliers to report to a specific e-mail address (the same envisaged in the Group Whistleblowing Procedure) any violation or suspected violation that they find in regard to the “Values and Ethical Code,” Code of Conduct and “Health, Occupational Safety, Environment and Social Responsibility” Policy of the Pirelli Group.

The sustainability clauses have been translated into 24 foreign languages. This guarantees the maximum clarity and transparency towards the supplier in terms of his sustainability obligations under contract, which he assumes not only in his relations with Pirelli itself but also at his own facility and in relations with his own suppliers.