Prometeon achieves world-class ESG rating

Prometeon Tyre Group reports that its Environmental, Social and Governance (ESG) Risk Rating has been graded as low, strengthening the tyre manufacturer’s commitment to its corporate social responsibility (CSR) and sustainability goals. The achievement is also crucial for managing a 350-million-euro sustainability-linked loan.

Carried out by ESG experts Morningstar Sustainalytics, the assessment yielded positive results with an ESG Risk Rating score of 14.9 out of 100 (the closer the score is to zero, the better a company performs). This figure places Prometeon at the top end of the global rankings among both car component manufacturers and tyre manufacturers.

Morningstar Sustainalytics based its assessment on Prometeon’s 2021 Sustainability Statement and examined the following parameters: governance, social, environmental and economic dimension. Prometeon was found to have the following strengths: its procedures and processes; human capital, regarded as the economic value of a worker’s experience and skills; products – their technology and the Quality certifications; as well as excellent knowledge of the market.

Along with the ‘low’ ESG Risk rating, Prometeon was also judged to have a ‘strong’ management level out of three possible ratings (weak, average, strong).

Nicolas Marchi, Chief Internal Audit & Sustainability Officer of Prometeon Tyre Group, commented: “The ESG rating assesses how a company tackles environmental, social and governance issues, with reference to the management and maximisation of its non-financial risk.

“Companies with an ESG rating are proving that, in many cases, they are better equipped for tackling the challenges lying ahead. Moreover, doing that before the time comes means looking to the future by optimising investments and focusing them on activities regarded as necessary and concrete.”

Sustainability-linked loan

As well as the environmental effect of Prometeon’s ESG rating, the assessment also has a financial impact. The later point particularly relates to a three-year sustainability-linked loan amounting to 350 million euros issued in December 2021 to Prometeon.

The loan’s pricing is connected to the sustainability policies adopted by the group and Prometeon has defined specific targets to be attained by the end of 2025. These include: training imparted to employees on sustainability issues; the reduction of waste (tyres); and control of the supply chain through second-party audits.

The results will be presented in Prometeon’s 2022 Sustainability Statement, after which Morningstar Sustainalytics will conduct a second assessment.

During the first half-year of 2022, the investment for a technological upgrade of Prometeon’s Egypt factory totalling around 30 million euros, was approved. As a result, the production of the new-generation Serie 02 Pirelli-branded tyres will be increased. At the same time, a 25-million-euro package, already partly invested, is further enhancing the research and development activities in the R&D facilities in Turkey, Italy and Egypt.