Sustainability
Report 2021

Consolidated disclosure of non-financial information
of the Group pursuant to Legislative Decree 254/2016
Sustainability is what we are. In this interactive document we present the foundations of Prysmian Group ESG identity and how its consolidation, via the climate, social and technological ambitions, is now the key factor in our leadership.
We report also some of the results and targets we achieved in 2021, which are particularly significant in testifying to the creation of the value we have shared with our stakeholder system.

Sustainability KPIs 2021

People, Culture, Organization

39%
WHITE-COLLAR WOMEN
hired with permanent contracts
vs 34% in 2020
13.5%
WOMEN EXECUTIVES
vs 13% in 2020
35%
of total WORKFORCE
are SHAREHOLDERS
(YES program)
100%
of PLANTS
subjected to HUMAN RIGHTS
due diligence
3%
around
OF THE SHARE CAPITAL
held by employees as in 2020
60%
EMPLOYEES SATISFIED
vs 65% in 2020
17.7
TOTAL TRAINING HOURS
per head count
1.55
FREQUENCY RATE
internal-external employees
vs 1.25 in 2020

Sustainable Innovation & Lean Manufacturing

around‍678,000 tCO2 eq
GHG EMISSIONS
vs around 736,000 t CO2 eq in 2020
(Scope 1 e Scope 2 Market Based)
89%
product families (cables)
included in CARBON FOOTPRINT
ANALYSIS vs 84% in 2020
69%
WASTE RECYCLED
as in 2020
48 mln €
saved through the DESIGN TO COST (DTC)
programme vs 42 mln € in 2020
81%
operating units with
WATER RECIRCULATION
percentages over 90%
20.9%
OF CABLES
evaluated according
to the criteria ECO CABLE vs 1% in 2020
900
NEW PRODUCT FAMILIES
developed as in 2020
15 mln €
ENVIRONMENTAL INVESTMENTS
for the reduction of GHG emissions
vs 4 mln€ in 2020

Extended Value Chain

13,484 mln €
ECONOMIC VALUE
GENERATED & DISTRIBUTED
vs 10,099 mln€ in 2020
68%
OF SUPPLIERS
subjected to ESG assessments
vs 63% in 2020
50%
RE-USED DRUMS
vs 48% in 2020
6,000
STAKEHOLDERS INVOLVED
in sustainability-related event
vs over 2,000 in 2020
93%
ON TIME DELIVERY
vs 94% in 2020
(Prysmian w/o GC)
20 mln
USERS REACHED
through websites or social
network channels vs 12 mln in 2020
+196%
Company’s stock with
TOTAL SHAREHOLDER RETURN
vs +155,5% in 2020

CEO’s letter

2021 was the year in which the global economic and financial system realized it had to step up its commitment to sustainability.
Prysmian has been proactive in this regard, launching two initiatives that consolidate its present and future leadership on ESG matters: the Climate Change Ambition and the Social Ambition.
These ambitions represent our concrete contribution to the targets that the whole planet has set itself and a way for accelerating the integration of ESG factors into our infrastructure, governance and the whole value chain.

“These three ambitions – climate, social and technological – accelerate the integration of ESG factors into our organization and business model. We have already started assessing the impact of the new Taxonomy and expect that a significant portion of Prysmian’s business will be aligned with the sustainability criteria set out by the EU.
This strategic positioning is reflected in the group’s financial soundness, even in a year as complex as 2021, in which the Group generated strong cash flow and boosted production chain resilience to avoid business disruption”.

Furthermore, Prysmian Group reaffirms its engagement towards the Sustainable Development Goals through its adherence to the United Nations Global Compact.

Valerio Battista
CEO Prysmian Group

A Truly Global Presence

Values, Mission, Vision

Drive - Our objective is to guide the evolution of our sector: we develop our people and our business, following a clear strategy while anticipating customer needs.
Trust - where diversity and collaboration are recognised and people are empowered to make decisions with integrity.
Simplicity - Our challenge is to simplify all that we can, focusing on activities that generate considerable value and timely decisions that enhance the results achieved by the Group.
The Prysmian Group provides its customers worldwide with superior cable solutions based on pioneering technology and consistent excellence in execution, ultimately delivering sustainable growth and profit.
We believe in the efficient, effective and sustainable supply of energy and information as the main driver for the development of community.

Prysmian Group Footprint

+50 countries

108 plants

4 cable-laying ships

26 R&D Centers

about
29,000 employees

Business Areas

Power Grids

HV&Submarine | Transmission | Distribution | Offshore Wind Farms | Power from Shore | Asset Monitoring Systems | Network Components | Installation Capabilities | Overhead

Telecoms

Optical Fibre | Telecom Networks | Submarine Telecom | Multimedia and Enterprise Networks

Electronics

PRY-CAM Asset Monitoring Solutions | Partial Discharge Measurement | Diagnostics

Construction & infrastructure

Power & Control | Multimedia

Tansportation & Mobility

Elevator & Escalator | Aerospace | Automotive | Rolling Stock | Marine | Railway

Industries

Solar & Photovoltaics | Wind Turbines | Oil & Gas | Marine | Mining | Crane | Nuclear Plants | Military & Defence | Other Plants | Other Industries

Our strategy

Prysmian Group’s ambition is to be one of the leading technology players in the transition to the use of renewable energy sources and to a decarbonised and digitalized economy.
To facilitate this journey, Prysmian Group is helping society to meet today’s great challenges:

Enabling the energy transition

The ambition to be a technological enabler of digital and energy transition depends on the ability to promote innovative technologies and products. Prysmian supports the development of greener and smarter energy grids with innovative technologies to cover long distances and deep-sea, ensuring high performance, reliability and sustainability:

Offshore Wind Solutions

transport energy from sea to land

Underwater Cable Systems

reach ever greater depths and distances

Land Interconnections

transport energy to the places where it is most needed

Our Purpose:

“We drive the flow of energy and information everywhere to enable and sustain human achievement”.

The role of cables

Sustainability is in our DNA

Creating Shared Value

For Prysmian Group, the creation of sustainable value for all stakeholders also depends heavily on how the supply chain is managed, with the Group adopting an ever more pro-active role in decarbonisation efforts by including ESG KPIs in the appraisal of suppliers.

Economic value generated - overall wealth created by the Group for all stakeholders : 13,484 million euros.

13,174 million euro, was redistributed in the form of:

In 2021, in addition to ensuring a careful policy aimed at stakeholders, the company has managed to defend its economic and financial security, ensuring the creation of economic value for our shareholders.

Actions and 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.
Every effort is made to avoid biased disclosures and ensure that all current and potential investors receive the same information, so that balanced investment decisions can be made.

Climate Change & Social Ambitions

HEALTH
& SAFETY
GENDER
EQUALITY
RACE/
ETHNICITY
INCLUSION
EMPOWER
LOCAL
COMMUNITIES
DIGITAL
INCLUSION
UPSKILLING
& ENGAGEMENT
Injuries Index towards 0 (employees & contractors)
50/50 in Recruiting of Desk Workers
More than 30%
of Executives
from under-represented nationalities/ ethnicities/ origins
At least a project
per year, with focus
on developing
countries and
vulnerable
communities
Connecting
100%
(over 29,000)
of our employees
through global
platforms,
achieving a
proper level of adoption
40 yearly hours
per capita of experienced learning for all employees
Zero Pay Gap Desk Workers
25% of Women in the Total Workforce
Local projects with donation of optic and electric cables
Local mentoring programs for 500 students coming from minorities-poverty
30% of Women in Senior Leadership roles
50% of employees as stable shareholders through share ownership plans (YES)
+ 500 women in a fully dedicated STEM program
Higher than 80% response rate to Engagement Survey
Leadership Impact Index improved to
70-80%
More than 25% of employees involved in mobility/growth experience every year

ESG Performances and Indices

Sustainability Scorecard

In order to establish a credible approach to sustainability, it is necessary to set objectives and monitor the progress made towards them.
For this reason, in addition to long-term targets, the Group is also committed to achieving short-term goals, which are defined in the “Sustainability Scorecard”, developed taking into account stakeholders’ feedback and sustainability indices.

The Sustainability Scorecard includes 16 challenging targets to be met by 2022, which flank the two new strategic ambitions: Climate Ambition and Social Ambition.
The entire process is monitored by the Sustainability Steering Committee, which is chaired by the Group Chief Sustainability Officer. Results are also shared and monitored by the Sustainability Committee, a Group’s Board committee established in 2020.

SDGs
KPI
Baseline
2019
2020
2021
Target
2022
Percentage of product families covered by
the carbon footprint measurement
70%
84%
89%
85%
Percentage of annual revenues from low
carbon-enabling products
48%
48%
44%
48% to 50%
Percentage reduction in the emissions of greenhouse gases (Scopes 1 and 2 Market Based)
870 ktCO2
-17.4%
-22.1%
-16 % to -21%
Percentage reduction in energy consumption
9,845 TJ
-6%
-2.9%
-3%
Percentage of plants certified ISO 14001
83%
83%
90%
95%
Percentage of waste recycled
63%
69%
69%
65%
Percentage of drums (tonnes) reused during the year
46%
48%
50%
Maintain
Number of sustainability audits carried out based on risks in the supply chain
15
22
27
30
Percentage of cables assessed using Ecolabel criteria developed internally by Prysmian
0%
1%
20.9%
20%
Employee Engagement Index (EI)
65%
65%
60%
67% to 70%
Leadership Impact Index (LI)
57%
57%
54%
59% to 65%
Average hours of training per employee each year
26 hours
18 hours
18 hours
30 hours
Percentage of women executives
12%
13%
13.5%
14% to 18%
Percentage of white-collar women hired permanent contracts
33%
34%
39%
40%
Frequency rate (IF) - Internal employees
Frequency rate (IF) - Internal and external employees
IF: 1.30
IF: 1.31
IF:1.30
IF: 1.25
IF:1.49
IF: 1.55
IF: 1.2
Severity rate (IG)
Internal employees
Severity rate (IG)
Internal and external employees
IG: 41.54
IG: 41.94
IG:46.40
IG: 44.76
IG: 46.98
IG: 47.19
IG: 41

Sustainability Indices

INDEX
DESCRIPTION
2019
2020
2021
The DJSI is based on an analysis of Group economic, environmental and social performance.
Rank: 84/100 (ELQ World) included and ranked as 2nd
Rank: 87/100 (ELQ World) included and ranked as 2nd
Rank: 87/100 (ELQ World) included and ranked as 1st
The MSCI ESG Ratings seek to measure the resilience of a company to long-term and financially significant ESG risks.
Score: A
Score: A
Score: AA
EcoVadis is a platform that allows companies to monitor the sustainability performance of their suppliers through an assessment.
Score: 73/100 (Gold)
Score: 76/100 (Platinum)
Score: 73/100 (Platinum)
The CDP is the most recognised NGO in the world for the assessment of transparency in disclosure by companies of climate change information.
Score Climate Change: B (World)
Score Climate Change: B (World) Score Water Security: C
Score Climate Change: B (World) Score Water Security: B
The ESG Risk Rating provides an overall score for the firm based on an assessment of how much it is exposed to ESG risks and the extent to which they are not managed. The more these risks are not managed, the greater the ESG Risk Rating score.
Risk: 26.1 (Medium)
Risk: 22.8 (Medium)
The FTSE4Good Index Series are equity indexes launched in 2001 by the FUSE Group to measure the performance of companies that demonstrate strong Environmental, Social and Governance (ESG) practices.
Score: 3.9/5
Score: 4.0/5
Score: 3.8/5
Bloomberg collects Environmental, Social and Governance data from corporate public communications. Bloomberg ESG Disclosure Scores evaluates companies on the basis of thei rdisclosure of ESG data, in consideration of the relevant industries.
Score: 40.5/100
Score: 45/100
Score: 55/100
The Stoxx ESG Indices are a new group of indices. Their ratings are based on specific environmental, social and governance performance indicators in addition to overall sustainability performance.
Included (STOXX Italy 45 ESG-X and STOXX Europe 600 ESG-X)
Included (STOXX Italy 45 ESG-X and STOXX Europe 600 ESG-X)
Included (STOXX Italy 45 ESG-X and STOXX Europe 600 ESG-X)
Launched by Euronext, the MIB® ESG index is the first ESG index dedicated to Italian blue chips. The composition of the index is based on an assessment of the ESG performance of issuers by Vigeo Eiris (V.E.), which is part of Moody's ESG Solutions.
Included
Carbon Clean 200 is a report produced by Corporate Knights that classifies 200 leading firms in terms of their clean energy sales.
Rank: 101/200
Rank: 47/200
Rank: 58/200

Prysmian Group Memberships

Prysmian's leadership in the cable industry is also evidenced by the Group's inclusion in the most important and strategic trade associations globally. Below are reported some of Prysmian Group membership.

Stakeholder Engagement Activities

Creating shared value means developing and cultivating an ongoing dialogue with stakeholders to create a relationship based on trust.
The goal is to understand the stakeholders needs, interests and expectations, anticipate changes and emerging trends, enabling the Group to pursue its sustainable development objectives and create shared and constant value in the long term.

RELEVANCE FOR STAKEHOLDER
Prysmian Group Sustainability Day and Thematic Workshops
One-to-one interview with investors
2021 Sustainability External Stakeholder Survey
Speak-up survey
RELEVANCE FOR PRYSMIAN GROUP
One-to-one interview with Top Executives
Senior Leaders survey
Safety Week survey
Sustainability Steering Committee (SSC)

The company organizes specific  conference calls with institutional investors and financial analysts. During 2021, relations with the financial market were intense, with over 500 conference calls and one-to-one or group meetings, a commitment that reflects the increasing attention of ESG investors on Prysmian Group. In 2021, coverage on Prysmian stock remained very high and geographically diversified. There are 19 independent research offices that regularly follow Prysmian stock.

Go To Page - Sustainability Day

Materiality Matrix

As the result of the Stakeholders Engagement activities, Prysmian updated the materiality analysis and identify the most significant sustainability issues for its business.

Priority topics identified by both the Group and Prysmian’s stakeholders:

Occupational health
and safety

The Group intends to strengthen the systems for managing occupational health and safety, in order to reduce the number of injuries and occupational diseases and, via suitable training programs, develop a culture of prevention and management covering these two aspects.

Business ethics
and integrity

The Group is committed to a management model based on the most rigorous standards of business ethics and integrity, especially with regard to the measures adopted to prevent both active and passive corruption and ensure the adoption of fiscally-proper practices.

Respect for human rights
and workers’ rights

The Group implements policies and actions to protect human rights throughout the entire value chain (banning child and forced labour, respect for freedom of association and collective bargaining, fair pay); development of collaborative relations with the trade unions.

Sustainable Innovation

For Prysmian Group, innovation and sustainability are two inextricably intertwined elements.
Innovation efforts reinforce the purpose and long-term ambitions of the Group.
The Group's R&D function is responsible for the global innovation strategy, with the aim of ensuring Prysmian plays a leading role in the value chain in support of energy transition processes, digitization and sustainability.

2021 key figures

107
million euros
invested in R&D
about 5,600
patens covering
the main innovations
26
research centres
298
product families
launched in 2021
50
collaborations with research centres and universities
900
professionals

In 2021, the company has also incorporated sustainability into the creation of customer value, making it tangible and visible, thanks to the Eco Cable green label.

Go To Page - Eco Cable green label

Lean Manufacturing

In 2021, we increased investments in order to support our ambition to be an enabler of energy transition, responding to the acceleration in demand for digitalization and electrification solutions. As proof of the commitment to reach the Net Zero emission target, Prysmian has decided to invest 100 million euros over the next ten years.

Furthermore, in 2021 The targets set by Prysmian for the reduction of greenhouse gas emissions were presented to the Science Based Target Initiative (SBTi). The SBTi assessed these targets against the suitability criteria identified in the Call to Action and, after close examination, confirmed the targets in a validation report and an approval letter.

OUR TARGET AMBITION:

TO ACHIEVING A 46% REDUCTION IN TOTALSCOPE 1 AND 2 GHG EMISSIONS, with respect to 2019 levels, BY 2030.
TO ACHIEVING A 21% REDUCTION IN TOTALSCOPE 3 GHG EMISSIONS deriving from the goods and services purchasedand the use of products sold.
The SBTi target validation team established that this ambition is in line with the commitment to contain the rise in global temperature to less than 1.5°C, which is currently the most ambitious target in the context of its activities.
The Scope 3 target was considered to be especially ambitious, because the objective exceeds the requirements for containing the rise in global temperature to less than 2°C, based on the Absolute Contraction Approach.

Environmental

The Group is actively committed to reduce environmental impact both through production systems and by involving the supply chain.
The targets were approved this year by the Science Based Target Initiative (Sbti) and will drive the group towards Net Zero.

Decarbonization process

Working together with Carbon Trust, Prysmian has commenced an in-depth analysis which has contributed to the preparation of a decarbonization roadmap for the Prysmian Group, with the definition of a program of priority activities and forecasts of the investment needed and the energy savings that may be obtained over the time period considered.

The majority of the GHG emissions generated by Prysmian are classified as Scope 3, representing more than 99% of the total ecological footprint of the Group.

Environmental Performance

energy consumption - obtained as the sum of all energy sources used in manufacturing and service activities.
biodiversity - the impact of operations on the natural habitats in which the Group operates.
water consumption - which is significant due to the large volumes needed for cooling in the various production cycles.
hazardous and non-hazardous waste - significant for its potential impacts on the various environmental matrices, depending on the processes of origin and disposal methods, but for some categories process efficiency is also relevant.
emissions of greenhouse gases - primarily linked to the use of sources of energy and, to a very limited extent, to the use of greenhouse gases at certain stages of production.
recycled waste – hazardous and non-hazardous - increasing the percentage of recycled waste helps reduce the environmental impact associated with waste disposal operations.
Go To Page - Environmental Performance

Energy consumption

Total energy consumption by the Group in 2021 was higher than in 2020 due, in part, to expansion of the reporting perimeter on acquisition of the EHC plants and the increase in production after the Covid-19 pandemic.

Energy Consumed (GJ)
Total 2021
Total 2020
Total 2019
Total
9,736,699
9,448,439
10,034,549
POWER
CABLES
TELECOM
CABLES
ACCESSORIES
OPTICAL
FIBRE
WIRE ROD
Energy Consumption
per Product line
68.67%
8.41%
1.64%
18.42%
2.87%

Water consumption

Water drawn (m3)
Total 2021
Total 2020
Total 2019
Total
8,642,129
8,847,815
9,615,937

Waste

Waste produced by type (kg)
Total 2021
Total 2020
Total 2019
Hazardous
13,466,833
10,957,352
14,184,343
Non-hazardous
199,236,807
180,026,709
155,434,381
Total
212,703,640
190,984,061
169,618,723
Waste produced by product line 2021
Power cables
Telecom cables
Accessories
Optical fibre
Wire rod
% non-hazardous waste
84.66%
11.86%
1.50%
1.79%
0.18%
% hazardous waste
53.59%
8.83%
1.22%
23.77%
12.59%

Greenhouse gas emissions

Greenhouse gas emissions, measured in tons of CO2 equivalent, were calculated considering, for the Scope 1 GHG emissions (direct emissions) and, for the Scope 2 GHG emissions (indirect emissions), which mainly concern the consumption of purchased energy.

Two main methods for accounting for emissions in Scope 2.

Emissions of tCO2
Total 2021
Total 2020
Total 2019
Scope 1
Direct emissions from combustion
195,234
197,113
204,069
Emissions from refrigerant gas leaks
7,047
7,626
9,724
Emissions from SF6 gas leaks
117,186
108,610
116,123
Total Scope 1
319,467
313,349
329,916
Scope 2
Location-based
504,991
519,589
588,983
Market-based
358,395
422,675
540,565
Total
Scope 1 and Scope 2 (Location-based)
824,458
832,938
918,899
Scope 1 and Scope 2 (Market-based)
677,862
736,024
870,481

Sustainable Supply Chain

Prysmian Group proactively interfaces with its suppliers to development an organizational process focused on the sustainability of the entire production chain.
For this reason, Prysmian Group has incorporated ESG KPIs into our supply chain evaluation and have implemented a new supplier portal for better monitoring of ESG principles.

Responsible And Sustainable Value Chain

SUPPLIERS WITH CURRENT OR POTENTIAL NEGATIVE IMPACT IN RELATION TO ENVIRONMENTAL CRITERIA, HUMAN RIGHTS, WORKING CONDITIONS AND AT COMPANY LEVEL
PRYSMIAN GROUP - 2021
PRYSMIAN GROUP - 2021
No.
suppliers
%
of spending
No.
suppliers
%
of spending
Evaluated suppliers
501
68.0%
149
63.0%
Suppliers with a currentor potential negative impact
70
1.0%
36
8.0%
Suppliers with a current or potential negative impact, for which an improvement plan has been implemented
0
0.0%
2
0.1%
Suppliers with a current or potential negative impact, whose supply relationship has been suspended as a result of the assessment
0
0.0%
0
0.0%

Group’s logistics and transport

In 2021 Prysmian Group continued its commitment to optimizing the transport of goods. In a year when there were severe issues and supply stress, the Group benefited from a predominantly local supply chain.

Its international reach also proved advantageous, as it allowed the company to anticipate localized issues.

The main issues monitored include the cost of sea transport and transport costs in general and the difficulty in finding extra volumes of metals.

MONITORING OF CO2 EMISSIONS AND GREEN ROUTER PROJECT

Prysmian opted to continue its existing collaboration with Green Router and to develop a new semi-automated model based on the most detailed transport data available in the Group’s systems, whether SAP or TMS systems. The aim is not only to extend the analysis scope, but also to make the calculation available sooner and more frequently, so that it can be used for improvements.

METHODS OF TRANSPORTATION

TYPES OF TRANSPORT BY PERCENTAGE
FY 2021
FY 2020
FY 2019
Air
2.5%
2.0%
3.0%
Sea
5.0%
8.3%
10.0%
Ground
92.5%
89.7%
87.0%

Social

Combining Social Ambition with environmental objectives is one of the cornerstones of Prysmian Group’s ESG Identity.

Encouraging transition to a fair, more diverse, inclusive and prosperous working environment, and to have a positive impact on development of the communities is one of the Group's key targets.

Salary policies that align and consolidate the long-term interests of employees, management and shareholders, is one of the Group's priorities.

2030 Social Ambition

Prysmian Social Ambition 2030 plan comprises objectives relating to diversity, equality and inclusion (DE&I), digital inclusion, the empowerment of communities, employee engagement and upskilling.

Group's social highlights in 2021:

39%
WHITE-COLLAR WOMEN
hired with permanent contracts
vs 34% in 2020
13.5%
WOMEN EXECUTIVES
vs 13% in 2020
35%
of total WORKFORCE
are SHAREHOLDERS
(YES program)
100%
of PLANTS
subjected to HUMAN RIGHTS
due diligence
3%
around
OF THE SHARE CAPITAL
held by employees as in 2020
60%
EMPLOYEES SATISFIED
vs 65% in 2020
17.7
TOTAL TRAINING HOURS
per head count
1.55
FREQUENCY RATE
internal-external employees
vs 1.25 in 2020

Human Capital

The Prysmian workforce at 31 December 2021 is 29,763 FTEs, comprising 7,800 white-collar (WC) staff including executives and 21,963 blue-collar (BC) workers.

Diversity and equal opportunities

Prysmian has identified the promotion of diversity and equal opportunities, through the development of an increasingly inclusive organization, as a strategic objective for the management of human resources.

In light of this commitment, the Prysmian Group has adopted a global “Diversity & Inclusion Policy” and is developing a number of supporting initiatives.

These initiatives form part of the Prysmian Group’s Side by Side program.

This was launched in 2016 and now focuses on diversity in terms of gender, age and culture, as drivers for the creation of value in line with our business objectives.

PRYSMIAN GROUP OBJECTIVES FOR THE IMPROVEMENT OF THE GENDER BALANCE
KPI
Group
(actual 2021)
Side by Side
Target Group (2022)
Percentage of women in the Total Workforce
18.1%
17% to 19%
Percentage of White Collar women hired
38.7%
40%
Percentage of women in Junior Management positions
24.4%
27% to 29%
Percentage of women in Middle Management positions
23.1%
25% to 27%
Percentage of women in all Executive positions
13.5%
14% to 18%
Percentage of women in Top Management positions
7.0%
10% to 12%
Percentage of women in all Management positions
22.4%
25% to 27%
Percentage of women in Management positions in Revenue-generating Functions
15.7%
17% to 19%

Human rights due diligence

Prysmian strives with passion to respect and safeguard the human rights of all employees and all those affected by our activities to ensure that the Group is not involved in any way, either directly or indirectly, in activities that violate human rights.

With this objective in mind, the Group Human Rights Policy was introduced in 2017.

This policy is based on various international standards (such as the Universal Declaration of Human Rights, the ILO Declaration on Fundamental Principles and Rights at Work, the United Nations Global Compact, etc.) and applied at all locations and in all Prysmian activities.

ASSESS

Assessmentof the current and potential impact on Human Rights, considering the risk of violations at country and plant level, identified using desk analysis and self-assessment tools

ACT

Assessment of the results and performance of audits at high-risk plants; definition of necessary actions to prevent and/or mitigate the potential impact identified

MONITOR

Monitoring of performance via checks and audits over a period of years

RESOLVE

Resolution of violations

COMMUNICATE

Communication of performance in the Sustainability Report

Talent and safety

The focus was placed on establishing targeted paths of development of talent and the related processes in 2021.

Fifteen training sessions for P4 managers on how to manage the “feed-forward meeting P4”.

A new assessment for high-potential middle managers is planned in 2022, for whom a new assessment system functional to any succession plans and targeted development plans will be available.

LOCAL HOURS OF TRAINING (ON AVERAGE HEAD COUNT)
Total HRS Academy + Local Training 2021
Academy Training HRS
Local Training HRS
Total per Head Count
54,391.72
456,183.71
17.7

The Group has a Policy for Health, Safety, the Environment and Energy that guarantees a commitment to compliance with good management procedures to ensure a safe workplace.

2021 key figures:

PRYSMIAN GROUP (2021)
PRYSMIAN
TEMPORARY
AGENCY WORKERS
Severity rate (IG)
47.19
46.98
49.92
Frequency rate (IF)
1.55
1.49
2.44
Hours worked
57,015,618
52,997,509
4,018,110

Most frequent types of injury affected: Hands - 42.49%; Back - 18.94%; Lower limbs - 9.9% and Feet - 9.47%

Commitment to the Communities

One of the drivers of the sustainability strategy consistently adopted by the Prysmian Group over the years is “Community Involvement”, in order to create value for all stakeholders and contribute to the sustainable development of the territories.

The Group has adopted a Corporate Citizenship and Philanthropy policy since 2019, to identify all activities that can contribute to satisfying the needs of the community or communities, in line with the vision, mission, values, Code of Ethics and Policies put in place by the Group.

In 2021, around
Euro 1,705,000 was donated to local communities in contributions in cash, in kind and in the form of time.

Governance

Sustainability Committee

Promoting guidelines for consideration by the Board that integrate sustainability within the various business processes.

Spreading the culture of sustainability among all stakeholders.

Assessing the environmental, economic and social impacts deriving from business activities.

Providing opinions on the annual and long-term sustainability objectives to be achieved.

Monitoring the company’s position in the main sustainability indices.

Expressing opinions on the initiatives and programmes promoted by the company.

Examining the annual sustainability report.

Advising the board on the key initiatives to tackle climate change.

Sustainability Steering Committee

chaired by the Chief Sustainability Officer (CSO)

Promoting a CULTURE OF SUSTAINABILITY within all BUSINESS ACTIVITIES.

Defining projects aimed at IMPROVING THE SUSTAINABILITY AGENDA.

Monitoring the OBJECTIVES OF THE GROUP SUSTAINABILITY POLICY.

Supervising all ongoing initiatives that have an impact, current and potential, on the ESG PERFORMANCES.

Ensuring the EFFECTIVE COMMUNICATION of our commitment and results.

Supporting initiatives to PROTECT  D&I both internally and externally.

Discussing strategic sustainability priorities, the progress of the action plan and its implementation.

Corporate and Business Communications department

Coordinating all activities related to the Group’s sustainability reporting.

Mapping the stakeholders and monitoring their expectations through stakeholder engagement activities.

Guaranteeing transparent and constant communication with all stakeholders.

Group’s Tax strategy

Prysmian Group’s Tax strategy is based on the following principles:

COMPLIANCE: conformity with the tax laws, regulations and circulars issued by the tax authorities.
LEGALITY: satisfaction by all Group companies of their tax and tax payment obligations.
SUSTAINABILITY: efficient, effective and sustainable management of the tax variable, in order to support the Prysmian business and, like all other aspects of our business operations, maximize shareholder value.
TRUST AND TRANSPARENCY: positive and transparent approach to the tax authorities, in order to develop and maintain fair and honest relations.
EQUITY: diligent exercise of professional judgement in order to ensure that all tax decisions are consistent with domestic and international best practices, following proper analysis and with appropriate documentation.

Risk Management and Corporate Governance

The Prysmian Group adopts a system of internal control and risk and opportunity management based on tools and information flows that allow the Board of Directors to take strategic decisions and define the guidelines for the system itself in an informed manner, in light of the context in which it operates and the related risks and opportunities, including those relating to sustainability issues.

RISKS
Environment
RISK IDENTIFIED
MATERIAL TOPIC 2021
Risks related to the availability of water
Efficient use of water resources
Risks linked to the rise in sea level (climate change)
Decarbonisationpathway to net-zero emissions
Risks linked to the increased severity of extreme weather events
Decarbonisationpathway to net-zero emissions
Risk linked to the introduction of taxes on GHG emissions (carbon taxes) or application of the Emission Trading Scheme to the operating activities of the Group
Decarbonisationpathway to net-zero emissions
Environmental risks
Business ethics and integrity
Cybersecurity risks
Cyber security and data protection
Risks of non-compliance with Data Protection legislation (Privacy)
Cyber security and data protection
Social Matters
Personnel-
Related Matters
Risk of not having or losing key personnel
Involvement and upskilling of employees
Health and safety risks
Occupational health and safety
Risks related to changes in the legislative environment governing Health, Safety and the Environment, including energy efficiency and the management of GHG emissions
Occupational health and safety
Anti-Corruption
Failure to comply with the Code of Ethics, Policies and Procedures
Business ethics and integrity
Risks of non-compliance with the anti-bribery legislation
Business ethics and integrity
Risks of non-compliance with Antitrust legislation
Business ethics and integrity
Risk of incurring export sanctions
Business ethics and integrity
Human Rights
Risks related to the social sustainability of the organisational structure and business model
Respectfor human rights and workers’ rights
Other Risks
Risk of inadequacy in the pursuit of technological innovation and, in particular, the emerging, alternative or replacement technologies linked to the climate
Economic performance and value creation
Risks associated with the management of third-party patents due to the increased complexity of solutions driven by the need to meet low-carbon product requirements.
Economic performance and value creation
Risks related to the sustainability of the Group supply chain
Sustainable supply chain
Risk linked to Covid-19, including market contraction and a slowdown in demand
Transversal
Risk of loss of competitiveness or leadership in the energy transition business
Economic performance and value creation
OPPORTUNITIES
OPPORTUNITIES
MATERIAL TOPIC 2021
Development and expansion of low emission solutions, in particular in Energy Cable and Fiber markets
Solutions for sustainable applications /Economic performance and value creation
Intercept the expected global cable market growth and access to emerging markets
Economic performance and value creation
Use of lower-emission sources through installation of renewable energy systems (e.g. photovoltaic) and purchase of renewable energy
Economic performance and value creation. Promoting decarbonization towards net-zero emissions
Greening the supply chain by evaluating options to reduce energy use and waste production and increase the use of recycled material
Sustainable supply chain

European Taxonomy

Makes a substantial contribution to the achievement of one or more of the environmental objectives.
Does no significant harm to any of the environmental objectives.
Is carried out in compliance with the minimum safeguards.
Complies with the technical screening criteria established by the European Commission.

The European Taxonomy, introduced by Regulation (EU) 852/2020 and in force from 1 January 2022 (also Taxonomy), is a system of classification used to identify economic activities that are environmentally sustainable.

Taxonomy strives to guarantee the reliability, consistency and comparability of economic activities considered sustainable, thus protecting investors from greenwashing, helping businesses through the sustainable transition, mitigating market fragmentation and bridging the sustainable investment gap.

From 2022, the reporting requirement envisages verification of how well those aligned activities are Taxonomy aligned in terms of turnover, capex and opex.

For the 2021 financial year Prysmian Group is committed to reporting, for each of the indicators required by the regulation, turnover, capex and opex, the percentage of eligible assets out of the company's total assets.

TAXONOMY ELIGIBLE AND NON-ELIGIBLE ACTIVITIES IN TERMS OF TURNOVER, CAPEX AND OPEX
Total
(in millions of euro)
Taxonomy-eligible activities (%)
Taxonomy non-eligible activities (%))
Turnover
12,736
46.55%
53.46%
CapEx
283
63.69%
36.31%
OpEx
359
50.97%
49.03%
Adjusted EBITDA
976
58.98%
41.02%

The economic activities of the Prysmian Group were identified in the following categories of Taxonomy-eligible economic activities:

3.1. Manufacture of renewable energy technologies

The Group manufactures a wide range of cables and accessories used in the generation of wind and solar energy.

3.6. Manufacture of other low carbon technologies

Manufacture of other low carbon technologies, the definition proposed in the Taxonomy leaves ample scope for interpretation, including all those technologies excluded from other categories of manufacturing activity that are aimed at reducing GHG emissions.
For this reason, the Group decided to compare the codes proposed in the Taxonomy with the economic activities carried out, in order to identify more precisely the economic activities eligible for category 3.6 and select those that might seek to reduce emissions in other sectors of the economy.
This category includes the activities carried out by Prysmian in order to manufacture cables and accessories for the telecom sector (optical fibre and copper), and also included the manufactured cables used in the railway sector.
Lastly, manufacture of the Pry-cam technology has been included as it aims to monitor and enhance the efficiency of energy consumption.

4.9. Transmission and distribution of electricity

Prysmian designs, produces and installs underground and submarine cables and systems for the transmission and distribution of electricity.