RICCARDO BALZARETTI and NICCOLÒ CALANDRI 3BEE An electronic engineer, a biologist and a food technologist teamed up to create Hive- Tech, a technological beehive in which the entire production cycle can be monitored remotely by means of sensors. STAYING IN ITALY TO CARE FOR BEES WITH AN APP aving originally embarked on academic careers, Niccolò Calandri (engineer) and Riccardo Balzaretti (biologist), have resisted the allure of the “brain drain” to take a risk, focusing their efforts on developing an idea entirely their own and applying it in the place they love most: the Italian countryside. In so doing they’ve invented a unique new profession: a cross between an IT specialist and Ha vet with a mission to prevent diseases in beehives. It seems that the two of them were struck by the famous warning attributed to Einstein: «If the bee disappeared from the surface of the earth, man would have no more than four years to live». The beehive has been exalted as a model of the perfect society since the times of the ancient Romans, and Pliny the Elder praised the perfect organisation of that humming factory. Only in the seventeenth century, however, was the discovery made that the boss of the beehive is the queen bee, and this mythologised bees still further as the symbol not only of hard work but also of a matriarchal society. The post-industrial world has somewhat lost this fascination for bees and everything they represent. As a result the work of the beekeeper has been undervalued , and the fact that honey is seen as a luxury product has also not helped. In the past twenty years the health of bees has also declined as a result of diseases linked to intensive pesticide use, and the dramatic condition of the species is now leading them to take on a new symbolic role: not so much as hard-working citizens of an ideal community but as the guardians of the world, whose work is channelled not just into productivity but above all into protecting the environment. For many years beekeepers limited the problem using antibiotics, but fortunately these are now illegal in Europe. Without antibiotics the only way to save the bees is through preventative measures. And this is where 3Bee enters the scene. The electronic IoT device produced by the startup is a system for optimising the welfare of bees: it's like having somebody watching over your beehives day and night, monitoring pa- rameters like the temperature, the humidity and the vibration of the hive, which is rather like a human cough: if the bees are not well the beat of their wings changes. Through the Hive-Tech platform the be- ekeeper is constantly kept up-to-date on any abnormalities that might disturb the peace within the hive. 3Bee began to distribute its technology on an experimental basis a few months before its official market launch in March 2018. As many as 500 devices have already been sold in Italy in the first days since the launch, coinciding with the start of the beekeeping season. The startup now forecasts a distribution rate of around 100 to 200 devices a month until October, when a new peak in demand will occur. Italy is the main theatre of activity for the two young partners who, having abandoned their scientific careers, have also made the emotional decision to remain in their country of origin. But they are also already exporting to Moldova, Romania, Russia, Germany and South America, and all with a staff of only four. The words of the poet Franco Marcoaldi, dedicated to a child beekeeper, spontaneously come to mind: every beehive / is clear proof / of the supremacy of insects. The information systems that contribute to collect the data For any clarifications and further information on the content supervision of the Board of Statutory Auditors within the terms METHODOLOGICAL NOTE accounted in the Report are: CSR-DM (Corporate Social of the Report, reference is made to the “Contacts” page of the established by legislative decree December 30, 2016, no. 254. Responsibility Data Management), HSE-DM (Health, Safety section “Sustainability” of the website www.pirelli.com. This section of the Annual Report 2017, entitled “Report on and Environment Data Management), SAP HR (SAP Human The strategic evolution of Group Sustainability is entrusted Responsible Management of the Value Chain” (hereinafter Resources) and HFM (Hyperion Financial Management). to the Sustainability Steering Committee, a body appointed “the Report”), constitutes the “Non Financial Statement” MANAGEMENT MODEL in 2004, chaired by the CEO and composed of the Company’s of the Company pursuant Legislative Decree of December The sustainability performance and GHG Emissions data Top Management representing all the organizational and 30, 2016, no. 254 and explores the Sustainable Management accounted in the Report are subject to limited assurance by an The Sustainability Model adopted by Pirelli is inspired by the functional responsibilities. The Committee meets ordinarily at Model adopted by Pirelli, the governance tools to support independent firm (PWC S.p.A.) in accordance with the criteria United Nations’ Global Compact, the principles of Stakeholder least once a year. maintenance and creation of values, relationships with indicated in the principle International Standard on Assurance Engagement set forth by the AA1000 and the Guidelines of Stakeholders and related connection with the development of Engagements 3000 - Assurance Engagements other than Audits or ISO 26000. The organisational structure is thus made up of Group financial, productive, intellectual, human, natural, social and Reviews of Historical Financial Information (ISAE 3000), issued Sustainability and Risk Governance Department that has relational capitals, which was mentioned in the “Presentation by the International Auditing and Assurance Standards Board. Responsible management by Pirelli runs through the entire oversight of the management at a Group level and proposes of 2017 Pirelli Integrated Report”. For further information, reference is made to the related value chain. Every operating unit integrates economic, social plans for sustainable development to the Sustainability Indipendent Auditor's Report provided at the end of the Annual and environmental responsibility in its own activity, while Steering Committee. Sustainability Department receives ANNUAL REPORT 2017 The Report reflects the integrated Business model adopted Report. Data on GHG emissions have also been subjected to cooperating constantly with the other units, implementing support from the Country Sustainability Managers for by the Group, inspired by the United Nations’ Global Compact, a specific limited assurance as part of the communication the Group strategic guidelines. overseeing activities covering all affiliates of the Group. The the principles of Stakeholder Engagement set forth by the process to the Carbon Disclosure Project (CDP). role of the Country Sustainability Manager is currently held by AA1000, and the Guidelines of ISO 26000. The content of The main management systems adopted by Pirelli include country CEOs, who are supported by their direct subordinates the report is prepared in accordance with the Guidelines The Report is structured into four main areas: ISO 9001, IATF 16949, ISO/IEC 17025 in terms of Quality in operational management of country plans. of the Global Reporting Initiative (GRI) in the Standards > an introductory section related to the sustainable Management, SA8000® for the management of Social version, Comprehensive option, following the process management Model adopted by the Company, related Responsibility at its subsidiaries and along the supply chain, Report management of the value chain on responsible 102 suggested by AA1000 APS principles (materiality, inclusivity and Policies and activities of Governance and Compliance, OHSAS 18001 for the management of Occupational Health SUSTAINABILITY PLANNING responsiveness), and considering the principles of integrated Stakeholder Engagement, long-term planning; and Safety, ISO 14001 for environmental management, ISO 103 Report management of the value chain on responsible reporting contained in the Framework of the International > an “Economic Dimension”, in which the distribution of 14064 for the quantification and reporting of greenhouse Specific operational steps aimed at continuous improvement in Integrated Reporting Council (IIRC). added value is detailed along with the management and gas emissions (GHG), the ISO 14040 family rules for the performance characterise the process of sustainable planning: performance relating to customers and suppliers; methodology for calculating the environmental footprint of evaluation of the context by benchmarks, dialogue with The set of indicators covered by the Report is wider than the list > an “Environmental Dimension”, which describes the the product and the Organization and specifically, ISO-TS 14067 stakeholders, needs raised by internal functions, identification of specific material issues indicated in the materiality matrix, management of environmental aspects and impacts and ISO 14046 for the determination of the carbon footprint of risks and opportunities for growth, definition of projects this in order to provide a more complete and transversal throughout the entire product cycle; and water resources (Carbon Footprint and Water Footprint). and targets, implementation, monitoring and reporting. ANNUAL REPORT 2017 view on the Company’s performance, for the benefit of all > a “Social Dimension”, which brings together the paragraphs In