Suppliers

Pirelli Group policy on Health, Safety, Environment and Social Responsibility expressly states the company's commitment "to establish and actively maintain the procedures to evaluate and select contractors and subcontractors based on their commitment in the field of social and environmental responsibility."

Supply-chain sustainable Management:
Between 2006 and 2007, CSR has been integrated in both the General Conditions for the Purchase of Goods and Services, applied by the Group's Companies to their suppliers, and in the phases of Vendor Scouting and Vendor Rating.

The signing of the New General Conditions commit the suppliers to adopting behaviors at their company that adheres to the content of Pirelli's ethical code and CSR policy.

Pirelli also has the right to carry out audits to verify this adherence. The new conditions are already applied to the Group's Italian suppliers and they will be extended to all foreign suppliers within 2007.

Distribution of Purchases by geographic area

The table below provides shows the geographical distribution of purchases, distinguishing between OECD and non-OECD countries, with the "weight" of the various areas on the totals.

		% on total number of suppliers		% on total purchases value
Geographical Area		Year 2007	Year 2006	Year 2007	Year 2006
OECD Countries	Europe	69.9%	73.1%	67%	63%
	North America	2.1%	4.0%	3%	6%
	Others  1	0.2%	0.2%	1%	2%
Non-OECD	Latin America	19.0%	19.3%	13%	15%
	Asia	7.3%	1.6%	15%	12%
	Africa	1.5%	1.8%	1%	2%

¹ Australia, New Zealand, Japan, Korea.

Distribution by type of goods and services purchased by Tyre Sector

	% of number of suppliers	% of total value of purchases
Raw materials	6%	48%
Consumables	7%	5%
Services	80%	39%
Plant and equipment	7%	8%

Goods and services purchased in the Tyre Sector account for more than 80% of all purchases made by the entire Group.