SASB Report 2020

Business Model & Innovation dimension ThePrysmianGroupseeks tobe thego-totechnologyplayer, facilitatingtheproductionandtransmission of cleaner, more intelligent, more efficient and more competitive energy. Sustainable Innovation & Lean Manufacturing represent a strategically important pillar in pursuing the creation of sustainable value. The Group’s efforts are directed primarily to the adoption of materials with a reduced environmental impact, as well as to the improvement of the cable design to make them more high-performing and sustainable. Lean Manufacturing also means a commitment to making the production structure more efficient and sustainable, through investment in energy efficiency and process digitalization for a gross amount of €246 million. Group R&D is responsible for the overall innovation strategy, aimed at making Prysmian a key player in the value chain supporting Energy Transition, Digitalization and Sustainability. Globally, Prysmian Group R&D consists of more than 900 professionals, working in 25 R&D centres around the world. Local R&D centres participate actively in newproduct development, the Design to Cost (DTC) programand the rationalisation of product families. The Design to Cost program represents a tangible initial example of this model. Using the best materials, adopting efficient processes and implementing innovative projects, this programhas achieved in 2020 cost savings totalingmore than €42million, withmore than 1,800 projects completed at our manufacturing plants. PRODUCT DESIGN & LIFECYCLE MANAGEMENT Topic SASB Code Accounting metric 2020 2019 Product Lifecycle Management RT-EE-410a.3. Revenue (in million Euros) from renewable energy-related and energy efficiency related products 4,836 5,548 This figure, annual revenues from “low-carbon enabling” products, has been calculated based on the sales of Prysmian Group’s different business areas at 31 December 2020. All business areas, or those among them, that are classifiedas “lowcarbonenabling” havebeen identifiedby applying theTaxonomy defined by the Climate Bond Initiative. As previous year, the revenues attributable to products, using the Climate Bond Initiative Taxonomy, that facilitate the energy transition and achievement of the COP 21 target, as well as the digitalisation of grids, are 48% of total Group revenues. The Group also announced investment totalling €450 million by 2022 in order to improve further the sustainability of its organisation and supply chain, and accelerate the development of advanced cable technologies, assets and services. The new project, supported by Carbon Trust, seeks to establish scientific carbon reduction objectives for the Prysmian Group, taking into consideration the Scope 1 & 2 (own organisation) and Scope 3 (value chain) GHG emissions. Objectives for the reduction of carbon emissions are considered “Science-Based Targets’’ if consistent with those deemed necessary by climate science in order to achieve the Paris accord objectives: limit global warming to less than 2°C above pre- industrial levels and pursue efforts to limit warming to 1.5°C. 14 _ 15 Prysmian Group