13 INSIGHT | Focus On What is the role of stakeholder engagement for Prysmian Group’s sustainability strategy? As a widely-held public company with no controlling shareholder, interacting with stakeholders has always been a key part of Prysmian Group’s business strategy. That means Prysmian was able to respond quickly to an increasing attention to sustainability issues, thereby implementing policies that led to concrete actions. This engagement has created a sort of “snowball effect” that has attracted new ESG investors. In 2021, nearly one in two investors in Prysmian Group is ESG-driven, up from 16% in 2017. Thanks to the stakeholder engagement review, we have been able to launch some extremely relevant initiatives. Can you give us a few examples? The launch of the “Side by Side” diversity program back in 2016; the decision to connect ESG criteria to variable remuneration in 2018, and setting up a dedicated board committee in 2020 to advocate for ESG issues to be translated into concrete action across the company’s operations. And ahead of this year’s board review, Prysmian Group identified ESG competencies as a core skill in the board skill matrix. Prysmian Group made some big strides in its sustainability strategy in 2021. What are the most important developments? Prysmian Group accelerated its sustainability commitment in 2021 with two major new initiatives. It launched its Climate Change Ambition, reflecting a growing concern among investors about global warming. Prysmian Group has now committed to reducing absolute Scope 1 and 2 GHG emissions by 46% by 2030, from the 2019 baseline. It also committed to reducing absolute Scope 3 GHG emissions from purchased goods and services and from the use of sold products by 21% within the same timeframe. The Net Zero emission target has been brought forward to 2035. These targets were approved by Science-Based Targets Initiative (SBTi) in September 2021. To meet these goals, the Group will be investing €100 million in the next 10 years. What role do social issues play in this strategy? There cannot be sustainable growth without people at the center. That’s why in July Prysmian launched its Social Ambition, which sets specific targets on efforts to improve diversity, equality and inclusion (DE&I), digital inclusion, community empowerment, employee engagement and upskilling. The new 2030 targets support the achievement of Prysmian's Social Ambition objectives and further align the Group with the United Nations Sustainable Development Goals. How do you measure your results, in addition to the targets the Group has set? Over the years we have been seeing the growing role of ESG investors, to the extent that today almost one out of two investors are ESG-driven, which is a guarantee of the high level of sensitivity we have on these issues. Prysmian Group’s sustainability journey has also been reflected in its improved index rankings. In 2021, Prysmian Group ranked first with 87 points in the ELQ Electrical Components & Equipment sector on the Dow Jones Sustainability World index, and was the only pure cable maker included in the most recognized sustainability index at global level, covering over 5,300 companies. What role do suppliers play? They are a key partner in Prysmian Group’s ESG strategy. We engage with our suppliers. They are extremely relevant to drive the decarbonization of our supply chain. We integrate our ESG KPIs into the selection process of our suppliers, and a constant engagement with customers and suppliers drives our innovation in our supply chain. How important is governance in implementing the Group’s sustainability strategy? To make sure that Prysmian Group translates these ambitions into actions and behaviors, the company has put governance structures in place at board level and across the company to cascade these goals around the world. In addition to a board-level Sustainability Committee, the Sustainability Steering Committee and Diversity, Equity and Inclusion Steering Committee include executives from the main corporate functions as well as the regional CEOs. The two Committees work hand in hand. The Group appointed a Diversity, Equity and Inclusion Director in 2019. These Committees work with local and business ambassadors. In each region, the Group has a Sustainability Ambassador to make sure our voice reaches the local communities, and that we listen to their voice. The same thing happens with the business: we have sustainability ambassadors for each business to make sure that we are able to tailor sustainability to the specific requirements. -46% reduction of GHG emissions PRYSMIAN GROUP EDITORIAL STAFF
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