Pirelli & C.

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Independent audits of vendor sustainability

Independent audits of 72 suppliers of Pirelli Tyre operating in countries of concern (as defined by the EIRIS classification) were carried out between November 2009 and January 2010. These audits satisfy the FY 2009 targets set in the 2008 Annual Report and were aimed at verifying vendors’ compliance with the sustainability clauses they signed.

These 72 vendors, operating in 10 nations where the Group has facilities (Argentina, Brazil, Egypt, China, Romania, Turkey and Venezuela) or purchases natural rubber (Brazil, Indonesia, Malaysia and Thailand) account for the following at Pirelli:

  • 50% of natural rubber purchases in 2009;
  • 50% of billings for purchased services in 2009.

The audits were carried out both at the Pirelli sites, where the suppliers provide services with their own personnel, and at suppliers’ administrative facilities.

Both workers and supervising managers were interviewed as part of these audits.

A special project team was created for this purpose, with its members being comprised of the corporate and local Sustainability and Purchasing Managers. This team selected the vendors and supported the audit activities.

The audits were performed by a leading international service auditor of Quality, Health and Safety, Environment and Social Responsibility (QHSE) compliance. This auditor used a checklist of sustainability parameters based on the SA 8000® standard, the “Social Responsibility for Occupational Health, Safety and Rights, and Environment” Policy, and the Pirelli “Ethical Code,” and thus in compliance with the provisions of the Group's sustainability clauses signed by the vendors.

The results of the audits, which will be made available to the Company at the beginning of 2010, will be immediately analysed to identify any criticalities and/or areas for improvement and to prepare corrective measures to be shared and developed with the suppliers themselves, according to a priority plan tied to the criticality of any instances of non-compliance that are found.

Information about the actions taken on the basis of these results will be provided in the Sustainability section of the Company website or at the latest in the next annual report at December 31, 2010.