Pirelli & C.

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Environmental performances

The environmental data presented here cover the entire perimeter of the Group, and thus include both offices and production centres. The 2009 figure for production facilities also includes the performance of the Pirelli Eco Technology plant located in Romania, which started full operation on January 1, 2009.

It should be emphasised that in comparison with 2007 and previous years, the figures shown were impacted by the under-utilisation of production capacity caused by the global recession. The capacity utilisation factor renders process eco-sustainability extremely rigid.

This type of “inefficiency” is clearly highlighted in the following graphs, which show both the absolute quantities of the principal environmental parameters (energy, water, etc.) and specific values (as measured according to units of finished product).

The scope of analysis of total consumption at Group production sites during the three-year period 2007-2009 is illustrated as follows:

  • FY 2007: all tyre and steel cord production plants;
  • FY 2008: all tyre and steel cord production plants, plus – for the second half of the year only – the Eco Technology factory in Italy;
  • FY 2009: all tyre and steel cord production centres, with the addition of the contributions of the Eco Technology factories.

In regard to environmental performance, the specific consumption during the last three years reported in the following graphs were calculated by standardising the data with tyre production (about 800,000 tonnes in 2009).

Energy consumption

Specific measures are being implemented at all of the Group's production units in order to:

  • improve energy management systems, through daily focus on key indicators;
  • improve the thermal insulation of machines and devices;
  • increase maintenance activities on energy distribution systems, in order to reduce “energy losses”.

In regard to the energy consumption associated only with office activity, the total value for 2009 was about 1.3% of total Group consumption.

Energy consumption

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Production sites - distribution of energy consumption - 2009

Eco technology - 0,44%; Steel cord -  12,56% and Tyres - 87,31%

The following graph illustrates the percentage distribution of the energy sources used, which shows that 65% of consumption comes from “indirect” sources (purchased electric power and steam).

Group – distribution of energy sources - 2009

Electric power - 42%; Purchased steam - 23%; Natural gas – 30%; Fuel oil – 4% and other fuels 1%

In summary, the following table illustrates the percentage change in total and specific consumption at the Group level and at production sites.

ENERGY 2009 vs 2008 2009 vs 2007
Group Total - 8.4% - 5.7%
Production Sites - 5.2% - 4.2%
Production Sites – Specific Consumption 7.9% 10.3%

Activities in 2009 concentrated on energy efficiency and reduction of the base-load, both during plant shutdown periods and during reduced output operation.

This was particularly challenging in light of the simultaneous inefficiency that necessarily occurred due to underutilisation of production capacity. For this reason, the results were even more satisfying.

For example, at the tyre production sites along, energy efficiency measures implemented in 2009 reduced specific consumption by about 2.5% (see the following graph).

Tyre production sites

Tyre production sites

Energy efficiency targets

Partly in view of returning to normal production conditions, specific objectives were defined to reduce energy consumption at tyre and steel cord production plants by a total of 6% during the three-year period 2010-2012, using 2008 as the benchmark, or 11% as compared with 2009.

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CO2 emissions

The following graphs illustrate CO2 emissions (both in absolute terms and by unit of production). Their trends, which are strictly related to energy consumption, reflect the condition stated in the previous paragraph.

CO2 emissions – total and specific

CO2 emissions – total and specific

Group – direct and indirect emissions of CO2 - 2009

Indirect CO2 emissions – 76% and Direct CO2 emissions – 24%

CO2 EMISSIONS 2009 vs 2008 2009 vs 2007
Group Total - 5.9% - 4.9%
Production sites - 4.9% - 4.1%
Production sites – Specific Emissions 8.2% 10.4%

In 2009 a preliminary analysis was carried out to assess the CO2 emissions impact of Italian employees using trains and aircraft. This travel was estimated to contribute about 0.5% to all Group emissions, and was reduced by 15% from 2008 as a result of the implementation of policies encouraging steady reduction of travel by using conference calls or video conferences. A pilot project is starting in 2010 to assess the carbon dioxide emissions generated by all means of transport used by Italian employees for work transfers, including automobiles.

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NOx emissions

Analogously to the foregoing, NOx emissions (both in absolute terms and according to unit of output) were directly impacted by the energy consumption trends illustrated above.

NOx emissions – total and specific

NOx emissions – total and specific

Group – direct and indirect emissions of NOx - 2009

Indirect NOx emissions - 82% and Direct NOx emissions 18%

NOx EMISSIONS 2009 vs 2008 2009 vs 2007
Group Total - 4.3% - 3.9%
Production sites - 4.0% - 3,8 %
Production sites – Specific Emissions 9,3% 10.8%

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Water Consumption

Targeted measures continued in 2009 to streamline the water consumption of production units, which substantially confirmed specific consumption, while water consumption for the entire Group fell by 12% from 2008.

Water - consumption

Water Consumption

Water – distribution of consumption – production sites 2009

Tyres - 91,6%; Steel cord - 8,2% and Eco technology 0,2%

Water – water sources – Group 2009

Water from on-site wells - 75%; Water from other sources - 14% and Water from public system - 11%

WATER 2009 vs 2008 2009 vs 2007
Group Total - 12.3% - 14.0 %
Production sites - 12.8 % - 15.1 %
Production sites – Specific Consumption -0.7 % - 2.2 %

As far as water discharges are concerned:

  • the volume of discharged industrial water could be estimated in the amount of 10 million cubic metres, of which about 80% was channelled to surface catch basins;
  • the remainder was discharged in the sewage system, to which non-industrial waste water was channelled;
  • before being discharged in the final catch basin, industrial waste water was subjected to periodic analysis, which did not reveal any violation of maximum concentrations allowed by local standards.

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Waste production and recycling

The total amount of waste generated by the Group fell sharply in 2009, not only in absolute terms (-13.9%) but also in specific terms (- 2.1%), associated with an increase in the percentage of recovered waste (+ 2.2%, see following graphs).

Waste – total and specific production

Waste – Total and specific production

Recycled waste [%]

Recycled waste [%]

Group – distribution of hazardous and non-hazardous waste – 2009

Non-hazardous waste – 87% and Hazardous waste – 13%

Wastes are classified according to their hazardousness pursuant to specific European Union regulations, specifically EC Decision no. 532 of May 3, 2000 (as amended) and EC Directive 98 of November 19, 2008.

All waste generated by Group sites are managed in the country where it is generated.

TOTAL WASTES 2009 vs 2008 2009 vs 2007
Group Total - 13.9 % - 11.7 %
Production Sites - 14.0 % - 11.6 %
Production Sites – Specific Production - 2.1 % - 3.3 %

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Handling of Packaging

Different procedures for handling packaging materials, if any, exist for different types of products. While tyres are sold without packaging materials, steel cord and particulate filters are sold in specific containers. It should be pointed out that tyre sales accounted for 89% of all Group sales in 2009.

Amongst the various programmes implemented to reduce the packaging materials used for making product sales, the Steel Cord Business Unit undertook a series of steps to manage and streamline the use of packaging materials, in collaboration with its own customers. The purpose of these actions was to increase the quantities of reusable packaging materials, both through their being returned to production sites and through replacement of certain types of packaging with more resistant models that are less subject to wear and tear and thus having a longer useful life.

Solvent Consumption

The following graph illustrates the net positive trend in solvent consumption, which reflects continued replacement by Group companies worldwide of organic base products with other water base products. During the three-year period 2007-2009, this reduced the specific consumption of organic solvents by over 19%, which fell from over 3,100 tons consumed in 2008 to about 2,600 tons in 2009.

Following the installation and activation of catalytic abatement plants at certain production sites, the estimated quantity of volatile organic substances released in the atmosphere in 2009 was significantly lower than the aforementioned consumption of 2,600 tons.

Solvents – consumption and specific consumption

Solvents – consumption and specific consumption

SOLVENTS 2009 vs 2008 2009 vs 2007
Group Total - 16.7 % - 26.7 %
Production Sites - 16.8 % - 26.8 %
Production Sites – Specific Consumption - 5.3 % - 19.9 %

Other environmental aspects

Substances harmful to the ozone layer

The presence of substances harmful to the ozone layer is entirely attributable to liquid refrigerants used by air conditioners, which are equipped with closed circuits.

Except for unforeseeable leaks of these substances, there are no free releases in the atmosphere that could be correlated with production activities.

SO2 Emissions

Direct emissions of SO2 stemming from the combustion of diesel and fuel oil was estimated to be about 200 tons in 2009.