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Responsible business

For Prysmian Group, sustainability is a key principle that guides investment choices, economic activity and relations with stakeholders.

Responsible business activities

Prysmian Group’s industrial investment strategy seeks to improve efficiency by concentrating the production of higher value-added cables in selected plants destined to become centers of excellence with high technological skills and, where possible, the ability to leverage economies of scale. At the same time, we are working to achieve greater manufacturing efficiency in the commodities sector, while maintaining a well-diversified geographical presence in order to minimize distribution costs. In 2021, Prysmian Group invested €283 million in our industrial development, compared with €246 million the year before. This increase was the result of the resuming our normal level of activities after the suspension imposed by the Covid-19 pandemic, but is also absolutely essential to keep pace with the growing demand for digitalisation and electrification solutions, and several of the most important requirements of the energy transition. Investment to increase production capacity and take account of changes in the mix accounted for 66% of overall spending. The most significant investment was linked to completion of the work on our new, state-of-the-art cable-laying ship, the “Leonardo da Vinci”, for which the total planned investment is in excess of €180 million in 3 years. Around 17% of total investments was allocated to achieving efficiency improvements for the reduction of fixed and variable costs (mainly product design and material usage. Around 10% of investment expenditure was dedicated to further development of the Group’s IT systems, Digital Transformation initiatives and R&D.

Innovating in a sustainable way

At Prysmian Group, innovation and sustainability are two sides of the same coin and a fundamental strategic approach to creating sustainable value for all stakeholders. Sustainability is a guiding principle for R&D as we seek to create products that consume less and deliver more, use lighter materials, more efficient design and reducing hazardous materials. Globally, Prysmian Group R&D consists of more than 900 professionals, working in 26 R&D centers around the world, for a budget of €107 million in 2021 on an innovation strategy aimed at making Prysmian a key player in the value chain supporting the energy transition, digitalization and sustainability. New products introduction (NPI) activity showed a significant increase, with 14% vitality (vs 13% in 2020) and almost 300 new product families launched in the year (vs 200 in 2020). In order to work more closely with stakeholders on innovation projects and carry out research, the Prysmian Group has created an eco-system in close contact with customers and suppliers, as well as with the best universities in the world, focusing on innovation areas of greatest interest for their environmental impact and the evolution of the sector.

Distribution of value to stakeholders

The economic value generated, being the overall wealth created by the Group for all stakeholders, totalled €13.484 billion in 2021. Much of this value, €13.174 billion, was redistributed. Of that amount, 81.49% was spent on suppliers, 11.28% was paid to staff, 5.96% went to lenders for interest on financing, 1.26% was paid to the Public Administration, and 0.02% was contributed to the community.

Our relationship with shareholders and investors

As a public company with a 100% free float and no controlling shareholder, our relationships with investors are crucial. Every year we organize over 500 meetings with members of the financial community, guided by the highest standards of accuracy, clarity and transparency. Our disclosure and communications procedures are designed to provide the market with credible information about the business, with a view to boosting confidence in the company and facilitating a long-term approach to investment in our shares. In addition, the ever-increasing attention paid by ESG investors to environmental, social and governance matters was further confirmed by their growing attendance at meetings and conferences held specifically for them. The coverage of Prysmian shares by analysts remains very high, 19 independent analysts who regularly rate the Prysmian stock.

A Customer- centric approach

Prysmian Group places its customers at the centre of everything it does, from design to execution and the creation of new products. Prysmian monitors customer experience levels via specific initiatives and using innovative tools, in order to respond promptly with ever greater efficiency.

One of the most relevant initiative is the Customer Portal / b2b Program, aimed to set up a unique informative platform for the Customers, enhanced with on-line shop features for standard cable, and based on Country go-to market. The Program is coordinated centrally and deployed at Country level.

Customer satisfaction is monitored via web surveys and individual interviews. The Group applies the principles of flexibility throughout the entire supply chain, with a view to accelerating the time to market and adapting to customer requirements in the various sectors.

Thanks to its global footprint, Prysmian is perfectly able to respond to all the different needs of customers. The Group can serve very different segments and markets thanks to its matrix organizational structure: in local markets the company uses domestic business and development structures, but its business units are also able to serve global customers by cooperating at an international level.