Occupational health, safety and hygiene

The Pirelli Group safeguards health, safety and industrial hygiene in the workplace, both through management systems that are continually improving and developing and by promoting an approach to health and safety based on prevention and the effective handling of occupational risk.
(The Values and the Ethical Code – Human Resources).

“The Pirelli Group pursues and supports compliance with internationally proclaimed human rights. Pirelli considers protection of the integrity, health and welfare of its employees and the environment as one of the primary needs to be satisfied in organising and developing its activities. […]

The Pirelli Group is committed to:

  • management of its activities by adopting occupational health, safety and rights and environmental policies in compliance with the highest international standards;
  • the dissemination of occupational health, safety and rights and environmental information to its internal and external stakeholders, both by communicating with them and actively co-operating with national and international government and academic bodies;
  • promoting use of the most advanced technologies to achieve excellence in occupational health and safety and environmental protection.”

(Social Responsibility Policy for Occupational Health, Safety and Rights, and Environment)

“The Pirelli Group considers protection of the integrity, health and well-being of its employees as one of the basic and general elements in defining its own strategies and objectives, in view of obtaining ever-more competitiveness on the global market on a long-lasting and sustainable basis.”
(Quality Policy)

The management approach to Occupational Health, Safety and Hygiene is based on the principles and commitments set out in the cited Sustainability documents, which are discussed in the introductory section of this report and whose complete text has been distributed to all Group employees in their local languages as well as having been published in the “Sustainability” section of pirelli.com.

Safety management system

A Safety Management System organised and certified to meet OHSAS 18001:2007 standards has long been in operation at Pirelli Tyre S.p.A. (which also comprises steel cord production plants).

Beginning in 2011 another step was taken to improve the level of transparency in the quality certification system. Consequently, although the current management systems were already in perfect compliance with the OHSAS 18001 standard, since 2011 all certificates have been issued with the SAS international accreditation (SAS is the Swiss Accreditation Service, which assesses and accredits compliance assessment bodies – laboratories, inspection and certification bodies – in accordance with international rules).

All Pirelli Tyre production sites operating at December 31, 2011 are certified pursuant to OHSAS 18001, except for the Guacara plant in Venezuela, which is currently being certified after having passed the first step.
The Rome plant has not been certified yet since the management system applied pursuant to local law is comparable to application of the OHSA18001 standard. This would render certification a parallel activity of only relative importance.

Certification of the Eco Technology plant (anti-particulate filters) operating in Romania was successfully completed in November 2011 and the certificate will be issued shortly.

The programme for certification of the environmental and safety management systems for the new plant that Pirelli Tyre has built in Mexico for the production of tyres will be undertaken by the end of 2012.

The Safety Management System implemented at the Pirelli Tyre production units has been developed on the basis of common procedures and guidelines drafted at corporate headquarters. This has enabled the use of a common language within the Group, in terms of the key elements of occupational safety management and a uniform shared mode of operations.

SAFETY CULTURE

In 2011 the Safety Excellence project (launched in 2009) intended to introduce the Du Pont method (best in class for decades) was concluded at the production units, beginning with the new unit at Settimo Torinese. In essence, the Du Pont method is characterized by its emphasizing the fact that Safety is:

  • a strategic factor that goes beyond the corporate dimension to involve the personal, family and social sphere;
  • a tool for motivation and participation in corporate management that demands effort to maintain the high level of attention necessary to obtain results;
  • a culture that develops tools and involvement to guarantee one’s own safety and other persons’ safety.

During 2011 the Safety Excellence project at POLO consolidated the pillars developed in 2010, reinforcing attention on prevention indicators as compared with reaction indicators. Development and application of this methodology have reduced the production site frequency index by about 60%.

In spring 2012, DuPont will conduct a re-assessment by DuPont to assess the progress of safety culture, which will be measured with the Bradley Curve1.

In 2011 the project continued in collaboration with DuPont at five production sites in South America with the implementation of an action plan defined in 2010 that will go on throughout 2012.

The principles and guidelines for “Safety Excellence” have already been distributed to other operating units and are at the basis of Safety training during the start-up phase of new production sites in Mexico and Russia.

In 2011 initiatives were taken to further develop internal culture, including the monthly newsletter Safety Bulletin and the periodic publication of significant events through traditional internal communication channels.

Pirelli continued acting as official partner of the European Occupational Safety and Health Agency (EU-OSHA) in 2011.

The Agency confronts a different problem every two years. The theme for 2010 and 2011 was Safety Maintenance. The aim was to raise the awareness of Group employees about the importance of workplace maintenance and the risks that it posed if maintenance is not performed properly.

All production sites undertook to engage participation by maintenance staff, organizing specific training days on the topic.

The partnership will continue in 2012- 2013: the campaign will focus on leadership and involvement of all corporate figures in reducing workplace accidents.

The zero injuries target is a precise and strong position taken by the Company that affects everyone. From an industrial point of view, this objective is pursued through a major plan of investments for technical improvement of work conditions, while constantly insisting on the cultural and behavioural aspect of all Company players. Safety culture is of paramount importance, and it is necessary to pursue it in accordance with the rules, while maintaining a very clear idea of the responsibilities that everyone has towards oneself, towards others and towards one’s own family.
In this area as well, involvement and continuous internal dialogue between management and operators has proven winning.

Safety training

In addition to safety training offered locally at every Pirelli location (which has been illustrated in the section of this report dedicated to employee training), special mention has to be made of Group activities and projects, which simultaneously target several countries by allowing an alignment of culture and vision, fully benefiting pursuit of the Company’s own improvement targets.

The fourth edition of the Pirelli Health, Safety and Environment global meeting was held at the Gravataì, Brazil plant, and its aim was to share their best practices as applied to various global sites. Theoretical studies and practical applications were dealt with on that occasion. The HSE targets and vision were also shared for the 2012-2015 period to define operating guidelines and meet corporate sustainability targets.

The first Pirelli Health, Safety and Environment Week (HSE Week) was held September 12-19, 2011 with the simultaneous involvement of all global sites on six fundamental issues for achieving health, safety and environmental targets.

The key theme of the Health focus was ergonomics and proper posture at the workplace. In regard to Safety, the focus was concentrated on use of Individual Protection Devices and Safe Maintenance (as the natural continuation of the partnership with the European Occupational Health and Safety Agency EU-OSHA).

In accordance with sustainability targets, environmental themes addressed the proper management of waste, energy and water savings.

The HSE week, organised with theoretical and practical events aimed at improving behaviour, involved over 20,000 persons worldwide. Employee feedback confirmed the success and relevance of the initiative. Ways of repeating the experience are already under study.

Monitoring of performance and sharing of experience

Together with definition of specific guidelines and procedures for the implementation of management systems, the web-based Health, Safety and Environment Data Management (HSE DM) system, elaborated and managed at corporate headquarters by the Health, Safety and Environment Department, makes it possible to monitor HSE performance at every production site in the Tyre business and prepare numerous types of reports as necessary for management or operating purposes.

In particular, the HSE-DM system collects all information about accidents that occur in factories (accident analysis, adopted corrective measures, etc.). If the dynamics of a particularly significant case are significant, all plants are not only provided with the information but also urged to conduct an internal audit as to whether conditions similar to the ones that caused the injury exist at their plants too and define any corrective measures.

This information system is used to pool the solutions adopted by the various sites and share those that are considered the best.

Performance

The accident frequency index (FI) (the ratio of the number of reported accidents to the number of hours actually worked) in 2011 fell overall by 30% from the previous year. The gravity index (GI) was reduced by 29%.

The information in the following tables is also provided by businesses, i.e. Pirelli Tyre and others (Corporate, Eco Technology, Ambiente and PZero). The trend of the frequency index for Pirelli Tyre industrial was particularly significant, showing a reduction of 28% from 2010 and 42% during the three years 2009-2011. The target set in the Group strategic plan envisages a 60% reduction in the frequency index by 2015 from 2009.

To better understand these data, it should be kept in mind that the Gravity Index (GI) was calculated by considering all calendar days (excluding the date of the accident) between the injured person’s work interruption and the employee’s return to the factory as “lost,” i.e. the actual days necessary for complete rehabilitation.

The aforementioned figures do not include “in itinere” incidents, which are nonetheless reported below in a specific table.

The following tables illustrates the principle indicators of the companies belonging to the Pirelli Group, broken down by business as previously mentioned. The calculation of the indicators refers to the activities performed by both industrial and office employees (group consolidated scope).

 
Frequency Index (FI) 
SCOPE 2011 2010 2009
Tyre (Total: Industrial + Commercial) 1.12 1.60 1.87
Other Businesses
(Corporate + Eco Technology + Ambiente + P Zero)
0.18 0.33 0.45
PIRELLI TOTAL (*) (continuing operations) 1.10 1.57 1.83
Result of discontinued operations (**) 0 0.27 0.10
PIRELLI TOTAL
(continuing operations + discontinued operations)
1.10 1.53 1.76
* The 2011-2010-2009 figures are shown on a comparable basis and thus do not include the business units sold in 2010 and belonging to Pirelli & C. Real Estate S.p.A. (now Prelios S.p.A). and Broadband Solutions S.p.A. ** Here, the 2010 and 2009 impacts are shown, including the business units sold in 2010 and belonging to Pirelli & C. Real Estate S.p.A. (now Prelios S.p.A). and Broadband Solutions S.p.A.
 
Gravity Index (GI)
SCOPE 2011 2010 2009
Tyre (Total: Industrial + Commercial) 0.27 0.38 0.54
Other Businesses
(Corporate + Eco Technology + Ambiente + P Zero)
0.02 0.12 0.13
PIRELLI TOTAL (*) (continuing operations) 0.27 0.37 0.53
Result of discontinued operations (**) 0 0.06 0.02
PIRELLI TOTAL
(continuing operations + discontinued operations)
0.27 0.36 0.51
* The 2011-2010-2009 figures are shown on a comparable basis and thus do not include the business units sold in 2010 and belonging to Pirelli & C. Real Estate S.p.A. (now Prelios S.p.A). and Broadband Solutions S.p.A. ** Here, the 2010 and 2009 impacts are shown, including the business units sold in 2010 and belonging to Pirelli & C. Real Estate S.p.A. (now Prelios S.p.A). and Broadband Solutions S.p.A.
 
Injuries in itinere
SCOPE 2011 2010 2009
Tyre (Total: Industrial + Commercial) 137 110 108
Other Businesses
(Corporate + Eco Technology + Ambiente + P Zero)
5 2 5
PIRELLI TOTAL (*) (continuing operations) 142 112 113
Result of discontinued operations (**) 0 3 6
PIRELLI TOTAL
(continuing operations + discontinued operations)
142 115 119
* The 2011-2010-2009 figures are shown on a comparable basis and thus do not include the business units sold in 2010 and belonging to Pirelli & C. Real Estate S.p.A. (now Prelios S.p.A). and Broadband Solutions S.p.A. ** Here, the 2010 and 2009 impacts are shown, including the business units sold in 2010 and belonging to Pirelli & C. Real Estate S.p.A. (now Prelios S.p.A). and Broadband Solutions S.p.A.

As previously stated at the beginning of this chapter, Pirelli is firmly dedicated to promotion of the principle of equal employment opportunities, by implementing the provisions of the Group Equal Opportunities Statement every day worldwide.

Women, especially in the industrial segment, represent 5% of blue collar workers at the Group, the category in which most Pirelli employees are classified. Considering the substantial predominance of males in the Company workforce, as well as implementation of the same operating and management procedures at all Group factories through exportation of a best practices system based on continuous training and the most severe legislation in favour of workers, regardless of an employee’s gender, reporting the indices required by the LA7 indicator of GRI - G3.1 according to a breakdown by gender is not material.

Fatalities

No Pirelli employee or employee of outside contractors working at the Group’s operating sites suffered a fatal accident in 2011.

Le best practices

Within the scope of Pirelli Tyre, the year-on-year reductions in the frequency index at four production sites are as follows: New Turin Industrial Centre, Bollate, Sumarè and Merzig, with values close to 50% and, in the case of the New Industrial Centre, close to 60%.

These results were obtained thanks to the commitment made by head management and staff to engagement on HSE issues of all factory functions, constant training and awareness at all levels and, finally, research on the final causes in the analysis of Group accidents considered as potential near-misses at its own site.

Occupational Diseases

As can be observed in the following table, the Frequency Index of occupational diseases at the Company fell steeply over the three-year period, to 0.07 in 2011.

 
FI OCCUPATIONAL DISEASES
SCOPE 2011 2010 2009
Tyre (Total: Industrial + Commercial) 0.07 0.26 0.29
Other Businesses
(Corporate + Eco Technology + Ambiente + P Zero)
0.00 0.00 0.00
PIRELLI TOTAL (*) (continuing operations) 0.07 0.25 0.28
Result of discontinued operations (**) 0.00 0.00 0.00
PIRELLI TOTAL
(continuing operations + discontinued operations)
0.07 0.25 0.27
* The 2011-2010-2009 figures are shown on a comparable basis and thus do not include the business units sold in 2010 and belonging to Pirelli & C. Real Estate S.p.A. (now Prelios S.p.A). and Broadband Solutions S.p.A. ** Here, the 2010 and 2009 impacts are shown, including the business units sold in 2010 and belonging to Pirelli & C. Real Estate S.p.A. (now Prelios S.p.A). and Broadband Solutions S.p.A.

Health and Safety Expenditure

In 2010 health and safety expenditure by Pirelli Tyre totalled euro 12 million.

Pirelli Tyre Expenditure (millions of euros)

  • 2009 10.0
  • 2010 14.1
  • 2011 12.2

The expenditure made targeted improvements on machines and plant and, more in general, workplace environment as a whole (e.g. improvement of microclimate and lighting conditions, changes in layout for ergonomic improvement of activities, measures to protect the healthfulness of infrastructure, etc.).

ACHIEVEMENT OF 2011 HEALTH AND SAFETY OBJECTIVES  
Quantitative:  
 
2011 – 2013 FI reduction at Pirelli Tyre industrial as specified in the strategic plan satisfied
2011 Organisation of first Pirelli HSE WEEK at all sites worldwide satisfied
QUALITAVE  
 
2011 Definition of a new Group standard for maintenance activities satisfied
2011 OHSAS18001 certification of the Eco Technology plant in Bumbesti, Romania satisfied
2011 OHSAS18001 certification of Guacara plant in Venezuela underway
2011 “Safety Bulletin” of leading safety indicators satisfied

Health and safety targets

Quantitative - 2012-2015

  • Reduction in Frequency Index of accidents in accordance with Industrial Plan: In 2015 the target is -60% compared with the 2009 figure

Qualitative - 2011-2012

  • Consolidation of new POWRA (point of work risk assessment) tool for maintenance activities
  • Integration of HSE module in Process Kaizen Engineer training process
  • Definition of a Group standard for HSE non-monetary rewarding

Healthcare asistance during working hours

The infirmaries at the production units offered all employees care by health care workers and specialised physicians on duty during working hours. These facilities provide first aid care, advice on health problems unrelated to work and health supervision for workers exposed to specific hazards.

Prevention campaigns

Once again in 2011, Pirelli offered all its employees the opportunity to be inoculated with the seasonal flu vaccine free of charge.

“Health weeks” were also sponsored, especially in South America, where all employees were offered preventive care and health education.

1 The Bradley curve is the tool used to measure the level of operating maturity on safety issues in an organisation. The curve shows whether a firm is reactive (i.e. whether it waits for a negative event to occur before acting) or, through different levels, is pro-active and inter-dependent (i.e. whether it works on prevention and whether individuals care not only about their own safety but also that of others).