Pirelli & C. (PIRC) ESG Update summary

Industry trends and sustainability drivers

• Mobility demand is projected to grow 40% by 2030, driven by demographics and GDP growth, with a shift toward electrification and decarbonization in the automotive sector.

• Regulatory pressure on ESG is increasing globally, with the EU, US, and China advancing new legislation.

• Social and environmental factors are becoming key purchasing drivers, especially among younger consumers.

Sustainability strategy and targets

• The sustainability plan is built on four pillars: climate action, sustainable products, natural resource protection, and social responsibility.

• Ambitious decarbonization targets include carbon neutrality for Scope 1 and 2 by 2030 and net zero (including Scope 3) by 2040.

• New products like P Zero E use over 55% non-fossil materials, with a target of 80% by 2030 for flagship products.

Product innovation and regulatory compliance

• Sustainable tires are designed for low rolling resistance, high safety, and reduced noise and particulate emissions.

• Tire wear reduction targets are set at -22% for 2022 launches and -30% for 2025–2030, anticipating Euro 7 regulations.

• FSC-certified natural rubber is being scaled, with 100% coverage in European plants targeted by 2026.