Pirelli & C

Sustainability strategy and accountability
As part of its sustainability strategy, Pirelli & C discusses how it identifies and prioritizes its most relevant sustainability impacts, as well as the outcome of this process. For the most material parts of its value chain, the company has set group-wide sustainability targets.

Ecosystem conversion and restoration
As part of its commitment to ensure zero conversion, Pirelli & C discloses its Sustainable Natural Rubber Policy and demonstrates its willingness to abide by certification standards (FSC certified) for its high risk commodity, rubber.

Solid and air pollution
Pirelli & C discloses the percentage of hazardous waste treated to reduce pollution, the percent of hazardous waste diverted from disposal, as well as the amount of hazardous waste that is directed to disposal. Additionally, the company reports some steps it has taken to reduce plastic use and waste.

GHG emissions
As part of its scope 1 and 2 emissions reduction targets, Pirelli & C is reducing its scope 1 and 2 greenhouse gas emissions. Its scope 1 and 2 emissions targets are aligned with a 1.5-degree trajectory.

Indigenous peoples’ and land rights
Pirelli & C is committed to respecting Indigenous Peoples’ rights and requires its business relationships to identify and recognise affected Indigenous Peoples and to obtain their free, prior and informed consent regarding whether and how to carry out projects. It requires its business relationships to identify legitimate tenure rightholders, pay particular attention to vulnerable or marginalised rightsholders, and negotiate adequate compensation with them.

Sustainability strategy and accountability
A consistent reporting system is not available for the company’s targets. There is no evidence that senior executives’ remuneration policies are linked to nature, including biodiversity, and social issues targets and objectives. In terms of nature-related issues, the company does not disclose whether its highest governance body is experienced.

Stakeholder engagement
Pirelli & C has an opportunity to disclose how it engages with stakeholders, and the issues it raises during such activities.

Lobbying
Pirelli & C does not report on its lobbying and advocacy practices on nature-related issues, nor whether these activities align with its sustainability strategy.

Impact and dependencies assessment
A holistic assessment of Pirelli & C’s impacts and its reliance on the environment, including biodiversity, has not been completed. The company has an opportunity to begin such an assessment across its value chains, focusing on quantification of its impacts and reliance on the environment.

Key areas and species
Pirelli & C discloses the locations that are close to or in zones of biodiversity importance within its own operations, but not those of its suppliers. The company does not disclose species populations occurring at its own locations or at the locations of its suppliers. As for species that are identified in its own locations, Pirelli & C does not disclose their status according to conservation lists at the national and international levels.

Ecosystem conversion and restoration
Pirelli & C has an opportunity to establish time-bound targets to achieve conversion-free supply chains. The company does not commit to restoring ecosystems, nor does it disclose the details of its own or its supplier’s ecosystem restoration initiatives.

Resource exploitation and circularity
Pirelli & C does not disclose its inputs, including its material footprint, nor does it report quantitatively on its group-wide circularity performance. While the company’s Sustainable Natural Rubber Policy expects suppliers to protect soil quality, preventing erosion, nutrient degradation, subsidence and contamination, no evidence that the company has taken actions to improve soil health in its production or sourcing practices.

Water
By 2025, Pirelli & C targets reducing specific water withdrawal by 43% compared to 2015. However, it lacks consistency in reporting on this goal. Water withdrawals by the company are reported in water-stressed areas, but it does not engage with suppliers to reduce withdrawals. Regarding water quality, Pirelli & C does not report a decrease in water pollution nor water pollution targets. It has an opportunity to disclose how it manages and monitors discharge water quality. There is no disclosure by the company of a commitment to respecting the right to water, nor of its procedures for implementing preventative and corrective action plans in response to identified risks to the right to water.

Solid and air pollution
Pirelli & C is not reducing the production of hazardous waste. Plastic use and waste are not being reduced within the company, which does not report its plastic waste generation and disposal percentages. Despite reporting on air quality parameters (such as SOx and NOx emissions), it has not yet established time-bound targets to reduce air pollutants across the majority of its value chain.

GHG emissions
Pirelli & C has a target for scope 3 GHG emissions reduction, but it is not aligned with a 1.5-degree trajectory. Progress against its target is also not reported.

Invasive species
Pirelli & C has not yet identified any activities that might lead to the introduction of invasive alien species in its own operations, but it is encouraged to expand its identification process to include suppliers as well.

Safe, healthy, clean environment
Neither Pirelli & C nor its subsidiaries demonstrate commitment to respecting local communities’ rights to a safe, clean, healthy and sustainable environment and to zero tolerance for violence, threats, intimidation, or harassment against environmental and land rights defenders.

Indigenous peoples’ and land rights
Pirelli & C does not explain how it obtains Indigenous Peoples’ free, prior and informed consent when activities in its own operations may impact their rights. There is no disclosure of the company’s commitment to respecting land and natural resources and legitimate tenure rights as set forth in the relevant VGGTs or IFC Performance Standards.

Pirelli & C describes its method for identifying human rights risks and impacts in its own operations, as well as in its business relationships. Despite the company’s description of its processes for assessing its human rights risks, it has the opportunity to disclose what it considers to be its most pressing human rights concerns. The results of Pirelli & C’s assessments, which may be aggregated across the company’s operations and locations, are not published publicly. No evidence was found that the company has a global system to address all its salient human rights concerns, although it conducts routine human rights risk assessments and remediates in locations with the highest risk. As a result of assessment processes, Pirelli & C does not provide an example of what conclusions it reached or actions it took or will take on at least one of its salient human rights issues. It is unclear whether the company engages with human rights affected stakeholders, despite identifying the types of stakeholders it engages with generally on sustainability issues. While Pirelli & C provides general examples of engagement with stakeholders, it has an opportunity to clarify if these stakeholders are those whose human rights have been or may be affected by its activities.

Publicly available policy statements show Pirelli & C is committed to ensuring the health and safety of its workers, and state that the company expects its suppliers to do the same. As well as describing how it determines a living wage for the regions where it operates, the company has an opportunity to disclose time-bound targets for paying all workers a living wage. According to Pirelli & C, a proportion of its direct operations workforce is covered by collective bargaining agreements, and suppliers are encouraged to respect employees’ rights to freedom of association. In relation to those, it can describe how it supports suppliers’ practices.

Pirelli & C discloses a global tax strategy, and is taking steps to identify and address bribery and corruption. The company also includes anti-bribery and anti-corruption clauses in its contracts with direct business relationships. A public policy statement discloses the company’s approach to lobbying and political engagement.