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reduction of dangerous emissions like carbon dioxide.Special attention has been given to the re-utilisation ofproduction remnants and used tyres, and the wastehandling protocol calls for the recycling of used F1tyres for either the generation of new primary materialsor for energy production;.produce particulate filters for diesel engine vehicles,both for new cars and trucks and for retro-fitting on existing commercial and industrial vehicles,dramatically cleaning their exhaust emissions. ThePirelli Eco Technology Feelpure filter eliminates morethan 90 per cent of PM10 present in vehicle emissionsand an average of 50 per cent of NO2, with no increasein NOx. Vehicles are, more and more, being required toclean up their emissions due to greater governmentregulation on air quality worldwide, particularly withlow-emission zones in city centres;. will soon open a new "green factory" with state-of-the-art technology and eco-compatible architecture,designed to increase productivity and limitenvironmental impact and destined to become thepioneer example in the tyre sector to be followedwithin the group worldwide;. are renewing all our manufacturing capacityworldwide, so that in 2015 around 60 per cent of ourplants and machinery will be less than 10 years old;. are moving production closer to demand, so thatlocal-for-local production will rise to 89 per cent in2015 for car tyres and to 85 per cent for truck tyres.Pirelli has adopted a sustainability governance systemwhich enables us to best manage the economic, socialand environmental impact linked to our processes,products and services, always with a view toinnovation, as well as across-the-board risk prevention.Our sustainability model takes its inspiration from theUN Global Compact, of which we have been an activemember since 2004.We adopt a multi-stakeholder approach, spanning all areas of corporate responsibility for all stakeholdersby pursuing sustainable and steady growth, as much as possible based on a fair balance between thedifferent expectations of all those who interact with the Company: the environment, investors,employees, clients, suppliers, institutions, outsidecommunities, competitors. Our strict ethical code aswell as our Policy on the environment, health, safetyand workers' rights inspired by SA8000 principles, areapplied to all our suppliers. Recently Pirelli conductedtough audits on 72 suppliers in 10 nations where thecompany has offices or purchases natural rubber, fromenvironmental/social/human rights/corruption riskspoints of view.Pirelli's sustainable performance is also witnessed byits recent confirmation in the Dow Jones SustainabilitySTOXX and Dow Jones Sustainability World indices,where the Company has been declared WorldSustainability Leader in the "Autoparts and Tyres"sector for the fourth consecutive year. nGREEN TRANSPORT101. produce tyres that reduce noise pollution, complyingin advance with a European standard to beapplicable in 2012;. use cleaner processes and materials free of highlyaromatic oils that are a potential health hazard, since2008. We are applying European standards inadvance, and all over the world, even where suchstandards are not mandatory;. actively develop and use a series of new, increasinglyecological materials for compounds. In 2009 Pirelliconducted research on raw materials from renewablesources that will enable it to produce ecological silica;. reduce consumption of water in production plants (by35 per cent in 2015 compared to 2009 levels),energy (by 15 per cent in 2015 compared to 2009levels) and CO2emissions (by 15 per cent in 2015compared to 2009 levels);. produce tyres that are highly retreadable;. introduce innovative manufacturingprocesses,increasing productivitywhile dramatically reducingenergy consumption;. take responsibility,together with ourcompetitors, for improvingrecycling of end of life tyres,materials and energy; . are committed tobringing environmentalsustainability criteria to ourexclusive Formula One tyresupply contract, whichcovers the 2011-2013 racingseasons. As in all Pirellicompetition tyres, the compounds forthe PZero tyre are free of highlyaromatic oils. Further, the processes usedat our motorsport tyre factory in Turkey arebased on energy and waterefficiency and the

he last decade was the most challengingin the financial history of aviation. Despitethat, we have made great progress on ourtop priorities. Safety improved as we cutthe accident rate by over a third. We completely re-vamped security in response to new risks that came tolight after the tragic events of 2001. And we addressednoise - the main environment problem in 2001 - witha global commitment to phasing out the noisiestaircraft and setting global standards for new aircraftentering the fleet. As an industry working in co-operation with governments, aviation has a proven trackrecord of setting targets and delivering results. Today the environmental challenge is climate change.Aviation contributes two per cent of man-made carbonemissions. In 2010 that was about 660 million tonnes ofcarbon. As an environmentally responsible industry, weare determined to reduce this. The solution starts withglobal leadership. Aviation is a global industry. Climatechange is a global problem. The only effective approachmust also be global. IATA stepped up to the plate. Werepresent 230 airlines comprising 93 per cent ofscheduled international traffic. The first step was to builda common position among our members. In June 2007,at our Annual General Meeting, I personally announceda vision for aviation to achieve carbon neutral growth onthe way to a carbon-free future. Many were shocked.Some thought that I was crazy. Fortunately, in thisforward thinking industry, many more understood theneed for a long-term and ambitious agenda.AN INDUSTRY STRATEGY DELIVERINGRESULTSTo achieve this vision we agreed a four pillar strategy of:investments in technology;more efficient infrastructure;more effective operations;a global approach for positive economic measures.Airlines, airports, air navigation service providers andmanufacturers came on board with the strategy andvision. Working together, we are delivering results.Airlines are investing US$1.3 trillion in new aircraft tobe delivered by 2020, and each will be 15-20 per centmore fuel efficient than the aircraft they replace. Since2004, IATA has worked with governments and airnavigation service providers to shorten some 2000routes. We collected industry best practice on fuelmanagement. And then we worked with airlines toimplement the best practices achieving fuel efficiencygains of up to 12 per cent. Combined, these effortshave saved over 76 million tonnes of CO2since 2004.AIR TRAFFIC MANAGEMENTWe could do much more if governments were morecommitted. For decades we have called on Europeangovernments to manage their airspace with a SingleEuropean Sky. This alone would cut aviation'semissions by 16 million tonnes each year. The lack ofpolitical will to move this forward is a costlydisappointment for airlines and for the environment.Moreover, there are similar missed opportunities inmany other parts of the world. These include the long-awaited NextGen air traffic management system in theUS and the need for a more efficient way of handlingair traffic in China's Pearl River Delta.BIOFUELSOne of the most promising possibilities to achieve" "FOR DECADESWE HAVE CALLEDON EUROPEANGOVERNMENTS TOMANAGE THEIRAIRSPACE WITH ASINGLE EUROPEANSKY. THE LACK OF POLITICAL WILL TO MOVE THIS FORWARD IS A COSTLY DISAPPOINTMENTFOR AIRLINES AND FOR THE ENVIRONMENTAVIATION'S CLEAR TARGETSON CLIMATE CHANGE102GREEN TRANSPORTGIOVANNI BISIGNANI, DIRECTOR GENERAL AND CEO, INTERNATIONAL AIR TRANSPORT ASSOCIATION (IATA)T