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02 Report Responsible M 58 Report on responsible management of the value chain Consolidated non-financial disclosure pursuant to legislative decree of December 30, 2016, n. 254 Pirelli Annual Report 2019 59 reporting of non-financial information are defined; → an internal control system aimed at providing an assurance METHODOLOGICAL about the correct collection and reporting of non-financial information, to which an additional assurance is added for that NOTE information considered to be of particular relevance since, for example, it falls within the Group Sustainability Plan targets; This section of the Annual Report 2019, entitled “Report on → a verification, following a circuling activity, of all the non- Responsible Management of the Value Chain” (hereinafter financial data reported in the Report on Responsible “the Report”), constitutes the “Consolidated Non-Financial Management of the Value Chain; Statement” of the Company pursuant to Legislative Decree → the signing of a letter of certification by the Top Management no. 254/2016 and explores the Sustainable Management concerning the data that are collected through the CSR- Model adopted by Pirelli, the governance tools to support DM information system and the paragraphs of the financial maintenance and creation of values, relationships with statements of competence. Stakeholders and related connection with the development of financial, productive, intellectual, human, natural, social and relational capital, which was mentioned in the “Presentation of As regards external audits, the sustainability performance 2019 Pirelli Integrated Annual Report”. accounted in the Report is subject to limited audit by an independent firm (PricewaterhouseCoopers S.p.A.) in The Report reflects the integrated Business model adopted by accordance with the criteria indicated in the International the Group, inspired by the United Nations Global Compact, the Standard on Assurance Engagements 3000 - Assurance principles of Stakeholder Engagement set forth by the AA1000, Engagements other than Audits or Reviews of Historical and the Guidelines of ISO 26000. Reported information is Financial Information (ISAE 3000), issued by the International prepared in accordance with the Global Reporting Initiative Auditing and Assurance Standards Board. For further (GRI) Sustainability Reporting Standards, published in 2016, information, reference is made to the related Auditor’s Report Comprehensive option, following the process suggested by provided at the end of the Annual Report. As part of this the APS1000 APS principles (materiality, inclusivity and limited audit activity, the data relating to GHG emissions were responsiveness), and considering the integrated reporting also specifically analysed, including for the purposes of the principles contained in the International Integrated Reporting disclosure process to the Carbon Disclosure Project (CDP). Council (IIRC). The Report is structured into four main areas: The set of indicators covered by the Report covers is wider than the list of specific material issues indicated in the materiality → an introductory section related to the sustainable matrix, and this in order to provide a more complete and management model adopted by the Company, Governance transversal view on the Company’s performance, for the and Compliance policies and activities, Stakeholder benefit of all Stakeholders. Engagement, long-term planning; → an “Economic Dimension”, in which the distribution of The report shows the sustainability performance of the Group added value is detailed along with the management and in 2019 compared to 2018 and 2017, with respect to the performance relating to investors, customers and suppliers; targets set for 2019 from the 2017-2020 Industrial Plan. In → an “Environmental Dimension”, which describes the this regard, please note that in February 2020 the Company management of environmental aspects and impacts will be presenting the new Industrial Plan and the related long- throughout the entire product cycle; term strategic sustainability targets. The Plan will be published → a “Social Dimension”, which brings together the paragraphs at the same time on the institutional website www.pirelli.com. dedicated to: governance of human rights, the internal community and the external community. The Report is published annually (the previous Pirelli Annual Report was published in April 2019 with reference to the year At the end of the Annual Report 2019, before the Independent 2018), is approved by the Group’s Board of Directors and Auditor’s Report mentioned above, the following summary covers the same scope of consolidation of the Group. Tables are available: The main information systems that contribute to collect the → the GRI Content Index, which shows the full list of indicators data accounted in the Report are: CSR-DM (Corporate Social accounted based on the GRI Standards, indicating the Responsibility Data Management), HSE-DM (Health, Safety relative page in the Annual Report 2019; and Environment Data Management), SAP HR (SAP Human → a table of correlation between indicators accounted based Resources) and HFM (Hyperion Financial Management). on the GRI Standards and the United Nations Global Compact Principles; In terms of internal control of the contents of the Report, the → a table of correlation between the performance/targets of Company, through the Group Compliance function, has set up the Group and the Sustainable Development Goals of the a structured system that includes: United Nations on which the aforementioned performance and targets have an impact; → a dedicated Operating Procedure, in which the roles, → a correlation table between the information contained in responsibilities and procedures to be followed by the Group the Annual Report and the topics indicated by Legislative companies in order to ensure adequate management and Decree no. 254/2016. 60 Pirelli Annual Report 2019 For any clarifications and further information on the content Affairs and Sustainability Department reporting directly to the of the Report, reference is made to the “Contacts” page of the CEO of the company, which has oversight of the management at “Sustainability” section of the website www.pirelli.com. a Group level and proposes plans for sustainable development to the Sustainability Steering Committee. The Institutional Affairs and Sustainability Department receives support from MANAGEMENT MODEL the Country Sustainability Managers for overseeing activities covering all subsidiaries of the Group. The role of the Country The Pirelli Sustainability Model is inspired by the United Nations Sustainability Manager is currently held by Country CEOs, who Global Compact, the principles of Stakeholder Engagement set are supported by their direct subordinates in the operational forth by the AA1000 and the Guidelines of ISO 26000. management of Country plans. Responsible management by Pirelli runs through the entire value chain. Every operating unit integrates economic, social SUSTAINABILITY PLANNING AND THE UNITED and environmental responsibility in its own activity, while NATIONS SUSTAINABLE DEVELOPMENT GOALS cooperating constantly with the other units, implementing the Group strategic guidelines. Pirelli’s sustainable development planning aims to make a tangible contribution to the global effort to achieve the 2030 The main management systems adopted by Pirelli include Sustainable Development Goals (SDGs) presented by the ISO 9001, IATF 16949, ISO/IEC 17025 in the area of Quality United Nations in September 2015. Management, SA8000® for the management of Social Responsibility at its subsidiaries and along the supply chain, The process of sustainable planning is characterised by ISO 45001/OHSAS 18001 for the management of Health specific operational steps aimed at continuous improvement and Safety in the workplace, ISO 14001 for environmental in performance: evaluation of the context through benchmarks, management. The company is also inspired by the ISO 14064 for dialogue with Stakeholders, needs raised by internal functions, the quantification and reporting of greenhouse gas emissions identification of risks and opportunities for growth, definition of (GHG), the ISO 14040 family rules for the methodology for projects and targets, implementation, monitoring and reporting. calculating the environmental footprint of the product and the Organisation and, specifically, ISO-TS 14067 and ISO 14046 for In February 2020, the Company will present the new Industrial the determination of the Carbon Footprint and Water Footprint. Plan and the related long-term strategic sustainability targets. In February 2018, the Company also obtained independent The Plan will be published at the same time on the institutional certification (from SGS Italia S.p.A.) regarding the compliance website www.pirelli.com. of its Sustainable Purchasing Management model based on the ISO 20400 Standard, as well as the independent certification During 2019 Pirelli continued to implement the Sustainability (by RINA Services S.p.A.) of its system of rules and controls Plan 2017-2020 with selected target for 2025, published in aimed at preventing corruption according to ISO 37001. 2017, fully complementary with the Company’s “High Value” development strategy. The Plan has been developed in Details on the coverage of these certifications and accordance with the “Value Driver” model drawn up by the UN methodological reference tools have been given in the PRI (United Nations Principles for Responsible Investment) paragraphs “231 Compliance,
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