Independent audits of vendor sustainability

  • Independent audits on 130 raw materials suppliers of Pirelli Tyre operating in countries of concern where Pirelli operates were carried out between the end of 2010 and early 2011
  • At the central level, a team comprised by the Group Sustainability and Purchasing Departments defines the guidelines for selection of the vendors to be audited
  • Pirelli Turkey has trained dozens of vendors on the sustainable corporate management process

Independent audits of 72 suppliers of Pirelli Tyre operating in countries of concern where Pirelli operates – Brazil, Argentina, Egypt, China, Romania, Turkey, Venezuela, Indonesia, Malaysia, Thailand - (as defined by the EIRIS classification) were carried out between November 2009 and January 2010. These audits reviewed compliance by these vendors with the sustainability clauses.
A number of remedial plans to rectify identified nonconformities were developed after the audit, and all of these were being completed at the end of 2010.
The commitment made by Pirelli Turkey merits special mention: it has trained dozens of vendors on the sustainable corporate management process, in view of shared growth.

Another 58 independent audits were scheduled between the end of 2010 and early 2011 in the United Kingdom, Germany, Italy, China, India, Latin America, Turkey, Egypt and Romania. These 58 audits cover:

  • 25% of the total value of purchases from service vendors in western countries;
  • 25% of the total value of purchases from raw material vendors in the “countries of concern.”

The vendor audits are carried out both at the Pirelli sites, where the suppliers provide services with their own personnel, and at Suppliers’ own facilities. Both workers and supervising managers are interviewed on specific issues as part of these audits.

At the central level, a team comprised by the Group Sustainability and Purchasing Departments defines the guidelines for selection of the vendors to be audited, while supporting the corresponding local departments that will manage the process.

The audits are performed by a leading international service auditor of Quality, Health and Safety, Environment and Social Responsibility (QHSE) compliance. This auditor uses a checklist of sustainability parameters based on the SA8000® standard, the “Social Responsibility for Occupational Health, Safety and Rights, and Environment” Pirelli Policy, and the Pirelli Ethical Code, and thus in compliance with the provisions of the Group’s sustainability clauses signed by the vendors.

The results of the audits conducted between the end of 2010 and the beginning of 2011 will be immediately analysed to identify any criticalities and/or areas for improvement and to prepare corrective measures to be shared and developed with the suppliers themselves, according to a priority plan tied to the criticality of any instances of non-compliance that are found.