Pirelli & C.

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A note on methodology

This, the fifth edition of the Pirelli Group Sustainability Report, is a comprehensive expression of the Pirelli corporate culture based on the integration of economic, environmental and social choices, in line with the “Triple Bottom Line” approach. For this reason, the present description of our sustainable performance (Book Two) is included in the Annual Report (Book One), instead of being published separately.

The perimeter of this annual report is the same as the Group’s consolidated report.

The report has been drawn up according to the Sustainability Reporting Guidelines issued by the Global Reporting Initiative (GRI).The analysis of sustainable performance is based on a set of “Key Performance Indicators” (KPI), developed in accordance with the GRI indicators (updated to the G3 standard) and the principles of the Global Compact, while also taking account of data periodically monitored by the leading rating agencies of sustainable finance. The sections on economic and social dimensions have also drawn on the Reporting Standards issued by the Italian Sustainability Report Study Group (GBS – Gruppo di Studio per il Bilancio Sociale).

In this report, we have concentrated on what we believe will be of most interest to the Group’s wide variety of stakeholders, highlighting and explaining the progress made in 2009 in relation to the contents of the 2008 report.

Specific qualitative and/or quantitative objectives have been indicated in the sections dedicated to each one of the Group’s stakeholders.

As regards Corporate Identity and Group organisation, please see Book One, Directors’ Report.

This report includes the Assurance Statement.

For detailed information on the Real Estate Sector, whose sustainability performance is consolidated in this report, please consult the Pirelli Real Estate S.p.A. Sustainability Report, which can be found on the website www.pirellire.com.

The present report is published in Italian and English in the Sustainability section of the website www.pirellire.com. For further explanations and information on the contents of the report below, please refer to the “Contacts” published in the above-mentioned section. Dedicated to the External Community, the Sustainability section also includes the “Sustainability Channel”. This is a new channel of interactive communication between Pirelli and the web community interested in sustainability news and events regarding the Group. Interested users may also comment on the news.