pirelli tyre - 2009-2011 management plan
TRANSCRIPT
ADVANCING SUSTAINABILITY
FILIPPO BETTINI
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VALUE CHAIN INTEGRATION AND MANAGEMENT MODEL
2011 MAJOR ACHIEVEMENTS AND ACKNOWLEDGEMENTS
2012-2014 SUSTAINABILITY PLAN AND VISION TO 2015
AGENDA
PIRELLI 2015: A SUSTAINABLE COMPANY
PIRELLI 2015: A SUSTAINABLE COMPANY
Smart, efficient, profitable, innovation-driven.
Accountable and engaged to its stakeholders.
A premium company.
A sustainable company.
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VALUE CHAIN INTEGRATION AND MANAGEMENT MODEL
2011 MAJOR ACHIEVEMENTS AND ACKNOWLEDGEMENTS
2012-2014 SUSTAINABILITY PLAN AND VISION TO 2015
AGENDA
PIRELLI 2015: A SUSTAINABLE COMPANY
TOTAL INTEGRATION OF SUSTAINABLE
MANAGEMENT IN THE VALUE CHAIN
Creating sustainable growth over time,
benefiting from tangible and intangible value return.
Economic
dimension
Environmental
Dimension
Social
Dimension
INTEGRATED MANAGEMENT
Finance, Administration & Control
Human Resources Management
Research & Development
Purchasing
Inbound/
outbound
logistics
Operation Marketing
& Sales
Post-sale
services
VALUE RETURN
From responsible
management of all
Stakeholders‟
expectations
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CHAIRMAN & CEO
SUSTAINABILITY
STEERING COMMITTEE
SUSTAINABILITY EQUAL OPPORTUNITIES
COUNTRY SUSTAINABILITY & EQUAL OPPORTUNITIES MANAGERS
STRONG COMPANY COMMITMENT
Co
ntin
uo
us im
prove
me
nt
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VALUE CHAIN INTEGRATION AND MANAGEMENT MODEL
2011 MAJOR ACHIEVEMENTS AND ACKNOWLEDGEMENTS
2012-2014 SUSTAINABILITY PLAN AND VISION TO 2015
AGENDA
PIRELLI 2015: A SUSTAINABLE COMPANY
R&D investmens: steady 3% of sales
Green Performance revenues on total revenues 36,7%
2011 Group accident frequency rate -37% vs 2009
Third party SA8000 audits (LatAm, China, Egypt, Turkey, Romania + 58 suppliers)
Leadership model – Training for approx. 500 middle managers
Group-wide Campaign Week on Health, Safety and Environment
Average man days training per employee: 6,2
Process eco-efficiencies:
2011 energy specific consumption -8% vs 2009
2011 water specific withdrawal -28% vs 2009
2011 CO2 specific emissions -8% vs 2009
Issuance of all ISO 14001** certificates with additional SAS*** accreditation
Green Performance new products: Cinturato P1 (Car segment), W01 and G01
(Truck segment)
Environmental
Economic
& Governance
2011 MAJOR ACHIEVEMENTS*
Social
* Performance based on latest estimates
** ISO Standard for Environmental Management System
*** Swiss Accreditation Service
**** Occupational Health & Safety Management System
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2011 World Finance Award for the Italian Company with the best Corporate Governance
Best Supplier Latin America (Toyota)
Top brand in Brazil for the ninth consecutive year
Pzero wins Auto Zeitung test
31st place at 2011 Global RepTrakTM100
DJ Sustainability Index global leadership in the Auto
Parts and Tyre Industry for the 5th consecutive year:
Pirelli rating 2011-12: 91 vs. sector average 53
FTSE4Good rating 2012: 99/100
Presence in major financial sustainability indices
2011 MAJOR ACKNOWLEDGEMENTS
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VALUE CHAIN INTEGRATION AND MANAGEMENT MODEL
2011 MAJOR ACHIEVEMENTS AND ACKNOWLEDGEMENTS
2012-2014 SUSTAINABILITY PLAN AND VISION TO 2015
AGENDA
PIRELLI 2015: A SUSTAINABLE COMPANY
Focus on premium products
Product and raw material innovation
Process innovation
Quality management and customer
service new metrics
HR management: Group-wide high quality workplaces
Strengthen Pirelli‟s role as global sustainability player
Russia: a sustainable integration
Push innovation in Green Performance
Rationalize Green-driven costs
Optimize resources, reduce emissions, push recycling/conversion
End-user engagement and public awareness
International growth:
Leadership consolidation in LatAm
Development in China and NAFTA
Entry into CIS – Russian markets
Integrating, supporting and protecting
Group targets and values
2012-2014 SUSTAINABILITY PLAN AND VISION TO 2015
SUSTAINABILITY PLAN
2012-14 – Vision 2015 INDUSTRIAL PLAN
2012-14 - Vision 2015
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2012-2014 KEY PROJECTS
We advance sustainability by further...
Developing our Green Performance tyres
Investing in responsible processes
for our people
Investing in responsible processes
for the planet
Taking our Sustainability Model
beyond our boundaries
Exporting Responsibility
through the value chain
Engaging end-users
and investing in communities
Valuing our people
“Safe for people” & “Safe for the planet”
Occupational Health and Safety
“Carbon management” & “Water management”
New industrial realities
New Suppliers management web portal
Making road safety culture mainstream
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Merit & Ethics, Diversity, leadership development,
Dialogue, Rules, Training & Education
Investing in communities development
The already outstanding wet, dry and noise performance will be further increased
Excellence in wet and dry grip: more safety
SAFE FOR PEOPLE
DEVELOPING GREEN PERFORMANCE TYRES
Seal Inside (S.I.) a new technology covering almost 85% of the
possible accidental causes of air pressure losses**.
Cutting edge technology already on original equipment market
Self-sealing Cinturato P7: less accident
Green Performance safety features will be extended to Consumer markets in China, LatAm, USA,
Mexico and to Industrial markets in China and LatAm: spreading safety benefits
* Previous generation product (before Cinturato line)
** The Seal Inside is effective for the majority of the punctures apart from the ones that are compromising the integrity of the tyre
* *
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SAFE FOR THE PLANET
Challenging environmental performance by referencing European Regulations Groupwide
DEVELOPING GREEN PERFORMANCE TYRES
Eliminating highly aromatic oils from the entire range of Tyre products Groupwide
In the EU, A-B-C class low rolling resistance related revenues will increase by 35%/year from 2011 to 2015
* Average Pirelli portfolio feature to date
Strong committment in the
development of the environmental-
friendly features of our products
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A wide and comprehensive Green Performance roadmap fully compliant with EU Tyre Labelling regulation
Actual
Generation*
2011
Previous
generation*
2007
Next step
2015
CAR TRUCK
Traction
Handling
Weight
Rolling Resistance Noise
Mileage
Retreadibility
Tear
Resistance
Braking
Rolling
Resistance
Mileage
Noise Dry grip
Wet grip
Weight
Less rolling resistance – less CO2 emissions
Less weight – less raw materials used / less impact on natural resources
Increased mileage – increased tyre life
Less noise – better living environment
Increased retreadibility – less waste
Accident frequency rate continuous
and marked reduction
INVESTING IN RESPONSIBLE PROCESSES FOR OUR PEOPLE
Updating and streamlining Pirelli
plants to have less than 10-year-
old equipment produce 60% of
the total output by 2015.
More than rules approach:
continuous focus on spreading
the culture of safety, engaging
and involving employees in day
by day risk evaluation and
prevention
Plant-to-plant sharing and
dissemination of best practices
OCCUPATIONAL HEALTH & SAFETY
Group target: -60% in 2015 vs. 2009*
2009 2011 2015 2010
1.76
-60% -13% -26%
1.53 1.3
0.7
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* Subject to JVs integration effects
CARBON MANAGEMENT
More than 100,000 tons of CO2
saved in the last two years
Group CO2 emission target: -15% in 2015 vs. 2009**
INVESTING IN RESPONSIBLE PROCESSES FOR THE PLANET
Increasing energy efficiency in our plants
Integrating renewable energy in our industrial process
The climate change challenge also requires proactive cooperation from non-carbon intensive companies*.
Pirelli is actively working on reducing its carbon impact.
in ton/ton of finished product
* Our industry is not included in the Emission Trade Scheme list of carbon intensive industries
Group Carbon Footprint calculated by 2013 (scope 1+2+3 emissions)
1.05 1.00 0.96 0.89
-4,7% -8,3% -15%
2009 2011 2015 2010
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** Subject to JVs integration effects
WATER MANAGEMENT
More than 2,000,000 m3 of water saved every year
SECURING RESOURCES ESSENTIAL FOR LIFE
Water is a social responsibility also for non-water intensive companies.
Pirelli is actively working on reducing its water withdrawal.
Streamlining Pirelli water management processes
Extending best Pirelli technology group-wide
Group water withdrawal target: - 70% in 2015 vs. 2009*
Group Water Footprint calculated by 2013
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2009 2011 2015 2010 in m3/ton of finished product
-11,5% -28.9%
16.2 13 5.5
-70%
18.3
* Subject to JVs integration effects
TAKING OUR SUSTAINABILITY MODEL
BEYOND OUR BOUNDARIES
NEW INDUSTRIAL REALITIES
Respecting cultural differences, Pirelli responsibly strives to unite its affiliates
on the basis of values, policies and rules applied worldwide
Russia
Joint Venture
Indonesia
Joint Venture Mexico
Greenfield
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Governance & Compliance
Environment
Social Committment
Definition and deployment
of local plans to harmonize
Group policies worldwide
NEW SUPPLIERS MANAGEMENT WEB PORTAL*
All industrial sites covered by the web portal
by 2012
4 areas of analysis
1 totally dedicated to Sustainability: social committment (labour and H&S)
environment
business integrity
EXPORTING RESPONSIBILITY
THROUGH THE VALUE CHAIN
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Weight of Sustainability score
is 33% on final selection rate
On-line training on
sustainable management for
key suppliers
*Tool developed on SAP SRM
ENGAGING END USERS
AND INVESTING IN COMMUNITIES
Pirelli Sustainability Day 2012
“Driving sustainability: a safe road to the future” (Milan, January 23, 2012)
End-user engagement through Social Media and On-Line Surveys
Road Safety Education Program
Making road safety culture mainstream
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Youth integration projects through vocational training and sports
Leverage on Formula 1 to gain public support
Investing in communities development
VALUING OUR PEOPLE
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EMPOWERMENT
BE AN
EMPLOYER
OF CHOICE
Enhance non-financial targets in Executives evaluation
system
Maintain alignment with shareholders„ interests
through Long-Term Incentive plans
Launch of a new 3-year international recruiting program for graduates
Focus on middle management worldwide
Regular consultation of our Employees through opinion surveys
Applying welfare guidelines for Employees worldwide
Focus on competence development in all main
Functions
Further increase the very high level of T&E investment:
from 6.3 man/days on average in 2010 and 2011 to 7
man/days on average for the forthcoming years.
MERIT & ETHICS
DIVERSITY
LEADERSHIP DEVELOPMENT
DIALOGUE
RULES
TRAINING & EDUCATION