Climate Change Data

Pirelli & C. S.p.A.

Climate Impact & Sustainability Data (2022)

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:Not disclosed
Scope 1 Emissions:Not disclosed
Scope 2 Emissions:Not disclosed
Scope 3 Emissions:Not disclosed
Renewable Energy Share:74%
Total Energy Consumption:Not disclosed
Water Consumption:Not disclosed
Waste Generated:Not disclosed
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Climate Change
  • Diversity & Inclusion
  • Governance
  • Supply Chain Sustainability
  • Human Rights
  • Product Safety and Sustainability
  • Natural Resource Management
  • Circular Economy

Environmental Achievements

  • Reduced absolute group CO2 emissions by 14% compared to 2021 and 41% compared to 2015 (Scopes 1 and 2).
  • Reduced absolute supply chain emissions by 3.1% compared to 2021 and 8.9% compared to 2018 (Scope 3).
  • Increased renewable energy share to 74% of total electricity used (from 62% in 2021).
  • Achieved 100% certified renewable electricity in North America in 2022 (in addition to Europe since 2021).
  • Improved average rolling resistance of Pirelli tyres worldwide by more than 3% compared to 2021 and 13.6% compared to 2015.
  • Improved tyre wear rates up to 33% in new product lines compared to previous generation.
  • Increased use of silica from rice husks (bio-circular material) to 5% of total silica used (from 1% in 2021).

Social Achievements

  • Reduced accident frequency index by 4.5% compared to 2021 (from 0.21 to 0.20).
  • Increased women in management positions to 24.5%.
  • Increased workforce by 611 new employees.
  • Launched Pirelli Care, a new way of purchasing tyres and car care services via app with monthly payment.
  • Implemented new measures concerning employee experience and consolidated programs for employee flexibility and well-being.

Governance Achievements

  • Published Sustainability Linked Financing Framework in May 2022.
  • Placed the first benchmark sustainability-linked bond in the global tyre sector in January 2023.
  • Obtained “Gold Class” recognition in the 2022 Sustainability Yearbook and “Top 1%” ranking in the 2023 Sustainability Yearbook.
  • Placed on the CDP “Climate A List” and obtained maximum score of “A” in the CDP Supplier Engagement Rating Leaderboard.
  • Achieved top sector rating in FTSE4GOOD and “ESG Top Rated” recognition by Sustainalytics.

Climate Goals & Targets

Long-term Goals:
  • Achieve net zero emissions by 2050.
Medium-term Goals:
  • Achieve Group carbon neutrality by 2030.
  • Increase renewable materials use to >60% and recycled materials use to >12% by 2030.
  • Have >70% of new car products classified A or B for rolling resistance and >90% classified A or B for wet grip by 2025.
Short-term Goals:
  • Reduce specific water withdrawals by 43% by 2025 compared to 2015 levels.
  • Reduce specific energy consumption by 10% by 2025 compared to 2019 levels.
  • Achieve 98% waste sent for recovery by 2025.
  • Increase renewable materials use to >40% and recycled materials use to >8% by 2025.
  • Reduce absolute CO2 emissions by 42% by 2025 compared to 2015 levels (Scopes 1 and 2).
  • Reduce absolute CO2 emissions from raw material suppliers by 8.6% by 2025 compared to 2018 levels (Scope 3).

Environmental Challenges

  • Macroeconomic slowdown, high inflation, supply chain difficulties, geopolitical tensions (Russia-Ukraine conflict), energy crisis, semi-conductor shortage, evolution of long-term demand for mobility, volatility of raw material prices, intense competition.
  • Climate change related risks (physical risks from extreme weather events and transition risks from regulatory changes and market shifts).
  • Water stress.
  • ESG risks along the supply chain.
Mitigation Strategies
  • Implemented a proactive risk governance model.
  • Developed mitigation measures and contingency plans to address the Russia-Ukraine crisis (e.g., gearing production towards the domestic market, identifying alternative sourcing strategies, diversifying logistics service providers).
  • Implemented a decarbonisation plan in line with the 2030 carbon neutrality target and Net Zero commitment.
  • Developed alternative sourcing strategies for raw materials.
  • Implemented cost efficiency measures.
  • Developed a Sustainability-Linked Financing Framework and issued a sustainability-linked bond.
  • Implemented an ESG risk mitigation strategy for the supply chain, including third-party audits.

Supply Chain Management

Supplier Audits: 82 third-party ESG audits in 2022

Responsible Procurement
  • Pirelli Suppliers’ Code of Conduct
  • Sustainability and Business Ethics Clauses in contracts
  • Third-party audits
  • Vendor Rating process
  • Green Sourcing Policy
  • Sustainable Natural Rubber Management Policy
  • Conflict Minerals Policy

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events impacting production plant continuity.
Transition Risks
  • Regulatory changes impacting operating costs.
Opportunities
  • Increased sales of Eco & Safety Performance products.

Reporting Standards

Frameworks Used: GRI Sustainability Reporting Standards 2021, SASB Auto Parts Sustainability Accounting Standard, AA1000 APS principles, IIRC integrated reporting principles, ESMA priorities, European Taxonomy Regulation

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

Pirelli's initiatives contribute to these goals through various programs and targets related to environmental sustainability, social responsibility, and good governance.

Sustainable Products & Innovation

  • Eco & Safety Performance tyres
  • Tyres with renewable and recycled materials
  • Elect technology tyres for electric vehicles
  • PNCS™ technology tyres for noise reduction.

Awards & Recognition

  • Gold Class in 2022 Sustainability Yearbook
  • Top 1% in 2023 Sustainability Yearbook
  • CDP Climate A List
  • Top sector rating in FTSE4GOOD
  • ESG Top Rated by Sustainalytics