Pirelli

Climate Impact & Sustainability Data (2022, 2023)

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:548,132 tCO2e/year (Scope 1 and 2 market-based)

Scope 1 Emissions:179,399 tCO2e/year

Scope 2 Emissions:368,733 tCO2e/year (market-based)

Scope 3 Emissions:2,422.7 tCO2e/year (Raw Materials)

Renewable Energy Share:37% of total energy use

Total Energy Consumption:10,480,043 GJ/year

Water Consumption:6,253,654 m3/year

Waste Generated:111,483 tons/year

Carbon Intensity:Not disclosed

ESG Focus Areas

Product Quality and Safety
Climate change and GHG emission reduction
Responsible management of Natural Resources
Product Environmental Sustainability
Occupational Health & Safety
Innovation
Business Ethics and Integrity
Future Mobility
Human Rights
Circular economy
Financial Health
Talent acquisition, development and retention
Biodiversity Protection
Diversity, equity and inclusion
Responsible Management of the Supply Chain
Training and Development
Stakeholder Satisfaction
Cybersecurity
Corporate Governance
Corporate Citizenship

Environmental Achievements

Reached 100% renewable electricity sourcing at several plants in North America, Europe, and Turkey.
Reduced absolute CO2 emissions by 41% compared to 2015.
Achieved a 36% reduction in specific water withdrawal compared to 2015.
Sent 97% of waste for recovery.
Reduced specific solvent consumption by 9% compared to 2021.

Social Achievements

Increased total workforce by 611 employees compared to 2021.
Maintained a voluntary turnover rate of 6.5%.
86% of women and 99% of men returned to work after parental leave.
Average pay gap between men and women white collars is 4% in favor of women.

Governance Achievements

Updated materiality analysis considering GRI Universal Standards 2021.
Implemented a Sustainability-Linked Financing Framework.
Achieved global Auto Components Sector Top Score in Dow Jones Sustainability Indices.
Placed on CDP ‘Climate A list’.

Climate Goals & Targets

Long-term Goals:

Achieve Net Zero emissions by 2050.

Medium-term Goals:

Achieve Group carbon neutrality by 2030.
Source 100% of electricity from renewable sources by 2025.

Short-term Goals:

Reduce specific energy consumption by 10% by 2025 (compared to 2019).
Reduce specific water withdrawal by 43% by 2025 (compared to 2015).
Send 98% of waste for recovery by 2025.
Reduce absolute CO2 emissions by 42% by 2025 (compared to 2015).
Reduce absolute CO2 emissions from raw material suppliers by 8.6% by 2025 (compared to 2018).

Environmental Challenges

Uncertainty regarding long-term (>2030-2050) physical and regulatory climate-related risks.
Difficulties in managing negative impacts along the supply chain in some countries due to socio-political conditions.

Mitigation Strategies

Developed a decarbonisation roadmap aligned with the Paris Agreement.
Implemented a Human Rights Risk Assessment (HRRA) to identify and prioritize mitigation actions.
Engaged in capacity building and engagement campaigns with suppliers to reduce emissions.

Supply Chain Management

Supplier Audits: 82 third-party ESG audits in 2022

Responsible Procurement

ISO 20400 compliant Sustainable Procurement Management model.
Pirelli Suppliers’ Code of Conduct.
Sustainability and Business Ethics Clauses in contracts.

Climate-Related Risks & Opportunities

Physical Risks

Extreme weather events impacting plant production continuity.

Transition Risks

Regulatory changes affecting operating costs.

Opportunities

Growth in sales of Eco & Safety Performance products.

Reporting Standards

Frameworks Used: GRI Sustainability Reporting Standards 2021, SASB Auto Parts Sustainability Accounting Standard, AA1000, ISO 26000, UN Global Compact, TCFD

Certifications: ISO 9001, IATF 16949, ISO/IEC 17025, SA8000, ISO 45001, ISO 14001, ISO 37001, ISO 20400

Third-party Assurance: PricewaterhouseCoopers S.p.A. (limited assurance)

UN Sustainable Development Goals

3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17

Targets and initiatives contribute to multiple SDGs, detailed in the Impact Materiality section.

Sustainable Products & Innovation

Tyres with high content of renewable and recycled materials.
Elect technology for electric vehicles.
PNCS™ technology for noise reduction.

Awards & Recognition

Dow Jones Sustainability Indices global Auto Components Sector Top Score
Sustainability Yearbook 2023 ‘Top 1%’ award
CDP ‘Climate A list’
CDP Supplier Engagement Rating Leaderboard ‘A’
FTSE4GOOD top sector rating
‘ESG Top Rated’ recognition by Sustainalytics
Three stars of the FIA Environmental Accreditation Programme

Reporting Period: 2023