Pirelli on sustainability index

MILAN, Italy (Sept. 29, 2014) — Pirelli & C. S.p.A. has earned a spot for the second straight year in the “Global Compact 100” sustainability index, a stock index of companies committed to aligning their operations and strategies with 10 “universally accepted principles in the areas of human rights, labour, environment and anti-corruption.”

Pirelli is the only tire company in the index, which is compiled by the United Nations' Global Compact in collaboration with Sustainalytics an Amsterdam, Netherlands-based financial research and analysis firm.

The firms in this year's 100 recorded a composite increase in return on investment that was 21.8-percent higher than Standard & Poor's global mid- and large-cap index, Pirelli said.

The “Global Compact 100” index is composed of 100 companies chosen on the basis of their alignment with the 10 principles that guide the UN Global Compact, their management's commitment to sustainability issues and their level of profitability, Pirelli said.

Endorsed by chief executives, the Global Compact is a practical framework for the development, implementation, and disclosure of sustainability policies and practices, offering participants a wide spectrum of workstreams, management tools and resources  — all designed to help advance sustainable business models and markets.

The 10 principles — derived from the Universal Declaration of Human Rights, the International Labour Organization's Declaration on Fundamental Principles and Rights at Work; the Rio Declaration on Environment and Development; and the United Nations Convention Against Corruption — are:

• Human Rights — Businesses should support and respect the protection of internationally proclaimed human rights; and make sure that they are not complicit in human rights abuses.
• Labor — Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining; the elimination of all forms of forced and compulsory labor; the effective abolition of child labor; and the elimination of discrimination in respect of employment and occupation.
• Environment — Businesses should support a precautionary approach to environmental challenges; undertake initiatives to promote greater environmental responsibility; and encourage the development and diffusion of environmentally friendly technologies.
• Anti-Corruption — Businesses should work against corruption in all its forms, including extortion and bribery.