The main targets of the sustainable development strategy for 2025 and 2030 are summarized below, aligned with the materiality of the company's socio-environmental impacts and in support of the United Nations 2030 Agenda for Sustainable Development Goals. Their definition rests on the mitigation of risks and the taking of opportunities ensuing from the 2025-2030 scenarios, including: technological and digital break-through, circular economy, population growth, scarcity of natural resources. Many of these elements, in the short to medium term, have undergone an acceleration following the effects of the pandemic.

“Eco & Safety” approach and target throughout the product lifecycle:

Pirelli’s Eco & Safety approach aims to maximize environmental performance and at the same time people’s safety, embracing a product’s entire life cycle in a circular economy sense characterized by the reduction of the environmental resources used, above all when non-renewable.

The Pirelli Eco & Safety targets refer to consumer tyres and therefore should be compared, where relevant, exclusively to targets for consumer tyres and not to other tyre categories or consolidation of production segments.

At the raw materials level, for selected product lines Pirelli plans:

- By 2025: renewable materials > 40%; recycled materials > 3%; fossil-derived materials < 40%

- By 2030: renewable materials > 60%; recycled materials > 7%; fossil-derived materials < 30%

The Eco & Safety approach is also fully integrated in the responsible management of chemicals, in a preventive and anticipatory interpretation of the indications from the scientific literature and possible regulatory developments.

There are many environmental efficiency targets related to the production process. With reference to CO2 emissions, the group de-carbonization plan continues in compliance with the targets approved by the Science Based Target initiative in 2020, in line with the Paris Agreement and for maintaining global warming “well below” 2°C.

By 2025 Pirelli aims to:

- reduce absolute CO2 emissions of by 25% compared to 2015;

- Use 100% renewable electricity

On the whole, Pirelli’s environmental approach will enable the group to be carbon neutral in 2030 for both electricity and thermal energy.

Efficiencies in the use of environmental resources by 2025 also envisage:

- a reduction of specific energy consumption by 10% compared to 2019:

- a reduction of specific water withdrawal by 43% compared to 2015;

- 98% of waste sent to recovery (Vision Zero Waste to Landfill).

In line with the Single Use Plastic Free Policy adopted in 2019, by 2021 Pirelli will eliminate single-use plastics in all offices and plants globally.

Pirelli also aims to further improve environmental performance while at the same time increasing product safety in use phase. By 2025, over 70% of new car products, that is the new labelled Ipcode at the group level, standardized according to the European classification values, will have class A or B rolling resistance according to the highest standards of European labelling – and over 90% will be in the “wet grip” A or B highest safety classes.

In support of innovation related to circular economy, Pirelli will work on the development of innovative processes that ensure the high level of quality required for its tyres in the use of secondary raw materials deriving from end-of-life tyres.

To accelerate the transition to the mobility of the future, Pirelli is also targeting tyre sensorization, that, by means of the Cyber Tyre, can permit dialogue and data exchange between tyre, vehicle, driver and infrastructure. The speed of development will also be facilitated by the new digital simulator, which makes use of Pirelli’s experience in F1 and allows product development times reduced by 30%, a marked reduction in production of physical prototypes, and maximum co-development efficiency with Original Equipment customers.

The amount of revenues from “Eco & Safety performance” products will grow by 8 percentage points by 2025, reaching 66% of the Group total car tyre sales, while the amount of Eco-Safety revenues on High value products will be 71%