SfC in Action: Between Active and Critical Shareholding

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engagement pirelli

The SfC Summer Meeting 2025 provided an opportunity for in-person active engagement with Pirelli and to continue the discussion among SfC members of the critical shareholding working group.

The engagement with Pirelli

Pirelli & C. S.p.A. is an Italian multinational based in the city of Milan and one of the largest tyre manufacturers. During the meeting, the company outlined its sustainability strategy, focusing on climate targets, circular materials, and biodiversity. They aim for Net Zero emissions across its value chain by 2040, with interim milestones including 100% renewable electricity and increased use of bio-based and recycled materials. Pirelli also presented its work on tyre eco-performance, supply chain decarbonisation, and biodiversity action plans aligned with international standards. 

The presentation emphasised integration of ESG criteria across operations, product design, and supplier engagement. The engagement was positive and constructive and will continue throughout the year. 

The working group on critical shareholding

During the meeting of the working group on critical shareholding, the discussion explored the boundaries between collaborative engagement  and critical shareholding, raising questions about sector exclusions, member strategies (divestment vs. engagement), and how SfC can collectively use its holdings to exert influence. Challenges in aligning with NGOs and campaigns were also discussed, particularly around differing timelines and shifting priorities, prompting reflection on whether critical shareholding should be a long-term  or one-off strategy.

The discussion highlighted that critical shareholding—holding even a single share—can be effective when backed by strong arguments and a willingness to engage constructively. Impact is often achieved through non-public dialogue rather than public campaigns, minimising reputational risks for participants. Goals of critical engagement may include improving  transparency, influencing company behaviour, or helping firms become “investable” by aligning with ESG standards. However, conflicting priorities can arise between ethical and financial objectives. 

Participants also examined which sectors are open to meaningful change and emphasised the need for a shared framework and clearer roles within the SfC network to guide future critical shareholding efforts.