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Prysmian Group – 2015 Sustainability Report

Supply Chain

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77

LOCAL SUSTAINABILITY INITIATIVES

In Norway, the Group has adopted a local system for the management and rating of suppliers, which are

assessed with reference to the ISO 9001, ISO 14001, OHSAS 18001 certifications of their management

systems, the efficiency of their logistics processes and, in particular, the traceability of their raw materials.

The process includes the implementation of a supplier scorecard and, in the event of an adverse outcome,

critical suppliers are contacted to discuss possible areas for improvement.

Other specific initiatives involving suppliers taken by Prysmian Norway relate to:

the improvement of forecasting & planning processes in order to increase the number of full-load

shipments, thereby minimising the cost of transporting goods;

the improvement of packaging;

the signature of agreements with suppliers governing the system for the recovery of wooden and

plastic drums, in order to avoid unnecessary disposal and facilitate their re-use.

PURCHASING PROFESSIONAL ACADEMY

Prysmian Group Academy is the Group's international professional and management education and training

school. Over the past three years, the Professional School has specifically addressed purchasing by

delivering an annual one-week course for 30 participants that combines contributions from highly

professional internal lecturers (from both Corporate HQ and country management) with those from external

supply chain professionals. Attendance is open to buyers from all Group companies, with a view to reviewing

purchasing fundamentals and the integrated management of global commodities.

A section dedicated to understanding the importance of sustainability matters, entitled “Purchasing &

Sustainability”, was included in the course held in 2015. This lesson focused on sustainability with the

Prysmian Group, as it relates to the supply chain and purchasing, highlighting the activities and topics of

concern to the function and also covering aspects of the Group's Code of Business Conduct. Additionally,

the lesson guided buyers to take full account of sustainability when scouting for and selecting suppliers,

alongside the traditional selection criteria based on technical, economic and financial parameters, risk

management and overall cost effectiveness.

COMMITMENTS FOR THE FUTURE

In confirmation of the commitment to manage the sustainability risks relating to first-level suppliers, Prysmian

expects to carry out audits at 20 suppliers during 2016.