Initiatives for ofsetting and monitoring CO2 emisions

Sustainability Day 2012

The Pirelli Sustainability Day was held on January 23, 2011. This was an international conference on sustainability and road safety, entitled “A safe road to the future”. During the event, Pirelli initialled a voluntary agreement with the Environment Ministry in order to reduce the climate impact of activities involved in the production and use of its tyres. In accordance with the sustainable approach adopted by Pirelli in all its activities, the “Sustainability Day” was subject to certification according to the BS8901 standard, with it being classified as “Advanced”. The BS8901 standard regulates the sustainable management of events. Consequently, independent assessment for issuance of the certificate concerned management of all social, health and safety aspects throughout the entire supply chain involved in planning and realising the event. In this context, the CO2 emissions generated during “Sustainability Day” were fully offset by reforestation activities.

In fact, Pirelli decided to finance about 4,000 square metres of forest for one year as part of the project to restore degraded areas and reforestation in the provinces of Cáceres and Cravo Norte in Colombia, where Pirelli operates a commercial affiliate. The reforestation project, also known as “Asorpar”, identified through collaboration with South Pole Carbon, began in 2002 and is located in an area of Colombia where forest resources have been heavily damaged by illegal gold mining, the cultivation of coca and unsustainable agricultural practices. In light of normal reforestation practices, this project aims to recreate the native forest. Biodiversity is being restored through the planting of land with over 20 different plant species. This has led to a rapid repopulation of the area by other wild plant species and a multitude of local animals, such as turtles, parrots and monkeys. Thus far, the project has created more than 11,000 hectares of protected and monitored forest, and it has received validation and certification by the Climate, Community and Biodiversity Alliance with the CCBS Standard, the certificate that covers the most virtuous reforestation projects in terms of their environmental and social benefits, while certification for reduction in CO2 emissions has been issued by the independent auditor Environmental Services, Inc. in compliance with the VCS (Verified Carbon Standard).

Vizzola Ticino test track

Pirelli Tyre has financed 5,657 square metres of forest growing inside the Parco Rio Vallone and 5,829 square metres of forest growing in Costa Rica, thereby offsetting the CO2 emissions generated by the cars used for tests at the Pirelli Vizzola Ticino Test Track. This activity is part of the Lifegate Impatto Zero project.

Company car fleet policy

A new internal policy was drafted at the end of 2011 that is applicable to the management of the company car fleet in Italy.

It will involve all cars assigned to executives and the sales force. This policy envisages that the CO2 emissions of every vehicle be offset by means of reforestation of areas inside and outside Italy, which are duly and officially certified.

Aside from being an incentive to choose more sustainable cars, the new Policy has the merit of spreading the culture of environmental responsibility in a simple, tangible way, through the direct participation of employees.

Monitoring CO2 for transport

During 2011 monitoring of CO2 emissions from train, air and car travel by Italian employees continued. This contribution has been estimated to account for about 0.7% of all Group emissions. In view of reducing this impact, internal policies have been implemented to reduce travel whenever they can be substituted for by conference or video calls.

The providers of logistic services had a marginal impact. An analysis was conducted in 2011 to measure both the degree of environmental sensitivity and climate impact resulting from their activity for Pirelli. The analysis revealed significant opportunities for improvement, which will be mentioned by the company in communications with suppliers and during future training sessions.

In view of properly measuring the environmental impact of logistics, it must be pointed out that in the life cycle of a tyre, the impact stemming from distribution accounts for less than 1% of the total impact stemming from the other phases of the life cycle (first and foremost the usage phase).