MATERIALITY ANALYSIS
Materiality mapping is a key element in the definition of the Group’s sustainable development strategies and as such is considered in the definition of the Company’s multi-year strategic sustainability objectives in line with Sustainable Development Goals.
The Materiality Matrix is submitted in turn to Sustainability Strategic Committee, to the Board of Directors Committee and to the Board of Statutory Auditors, and then to the Board of Directors for approval and publication as integral part of the Annual Report.
At the beginning of 2022 Pirelli’s materiality matrix was updated, replacing the previous 2019 matrix.
THE MATERIALITY MATRIX
The Matrix results from the match between Stakeholders’ priorities (vertical axes) and priorities attributed by Management (horizontal axes). The matrix includes evidence of the specific SDGs connected to the different material topics, on which Pirelli impacts though its sustainability strategies and plans.
THE PROCESS
A thorough Stakeholder Engagement process allowed the observation of the priorities assigned by the key Stakeholders relating to a panel of sustainability topics critical for the Auto parts sector, and therefore to compare these expectations with the importance of the same issues for the success of the business according to the experience and expectations of the Top Management. Given the complexity and the international extent of corporate Stakeholders and the variety of their expectations, the panel of Stakeholders of the Company from which feedback was requested included:
- the major Original Equipment Customers;
- more than 650 End Customers belonging to the most representative markets;
- the most important Dealers;
- numerous employees in the various countries where the Group is present;
- several Pirelli Suppliers;
- the leading Financial Analysts;
- national and supranational institutions and public administrations;
- Media specialists;
- international and local NGOs present in the various Countries in which Pirelli has production activities;
- Universities that have collaborations with the Group.
Stakeholders have been involved through a request for prioritization of action on a selection of ESG issues (Environmental, Social, Governance) relevant for the development of the Company.
The topics considered relevant were pre-selected considering their relevance to the automotive components sector according to leading research and sustainable finance bodies, their presence in the materiality mapping of car manufacturers and car parts, the risks and opportunities arising from regulatory developments with reference to the UN Sustainable Development Goals to 2030 (SDGs).
The topics submitted for evaluation by Stakeholders are the following:
- Climate Change and Greenhouse Gas Emissions Reduction;
- Responsible Management of Natural Resources;
- Biodiversity Protection;
- Circular Economy;
- Future Mobility;
- Product Quality and Safety;
- Product Environmental Sustainability;
- Corporate Citizenship;
- Human Rights;
- Diversity, Equity and Inclusion;
- Training and Development;
- Occupational Health and Safety;
- Stakeholder Satisfaction;
- Talent Acquisition, Development and Retention;
- Responsible Management of the Supply Chain;
- Innovation;
- Cybersecurity;
- Business Ethics and Integrity;
- Corporate Governance;
- Financial Health.
The result of such consolidation was submitted to the Sustainability Strategic Committee, the Board of Directors Committee and the Board of Statutory Auditors and then to the Board of Directors for publication in 2021 Annual Report.
Finally, it should be noted that the consolidation of the materiality matrix at Group level tends, by its very nature, to deviate significantly from the materiality matrix consolidated by the Group’s Subsidiaries at country level. Elements of sustainability located in an area of minor materiality in the matrix at a Group level may be found to have major materiality for a number of Countries and specific Stakeholders who are more directly involved.