SASB Report 2020

MATERIALS SOURCING Topic SASB Code Accounting metric Materials Sourcing RT-EE-440a.1. Description of the management of risks associated with the use of critical materials The Group’s business model, with a global presence in over 50 countries and a high diversification of product applications, is based on a complex supply chain that requires a continuous interface with numerous suppliers of different sizes and cultural background. Without prior investigation and control, themanagement of a complex supply chainmight result in the Group procuring goods and services from suppliers that do comply with the guidelines embodied in the Group’s Code of business conduct, with the risk of supporting suppliers that do not operate in line with international standards. In addition, the Group recognises a responsibility that goes beyond its organisational boundaries and, accordingly, is able to limit any reputational risks by managing the sustainability of its supply chain. In addition to a commitment to the evaluation of counterparties, the Group has adopted guidelines and policies that suppliers are required to comply with and accept (for example, the Code of Ethics and the Code of Business Conduct). There will be an immediate reaction should it emerge that third parties involved in the supply chain have implemented actions not conforming to the principles of environmental and social sustainability, which would expose the Group to potentially significant image and reputational risks. If the issues flagged are not promptly corrected and eliminated, the Group reserves the right to activate a procedure for the termination of existing business activities and temporary, or in serious cases, definitive exclusion from the Group’s supplier list. With respect to critical materials that the Group sources specifically, Prysmian Group enforces a Conflict Minerals Policy, with the aim of guaranteeing a “Conflict-free” supply chain that doesn’t contribute to the on-going armed clashes in conflict-affected and high-risk areas. This is done through the following activities: y Identification of purchased materials/semi-finished products containing 3TG (tin, tungsten, tantalum and gold); y Requesting all incumbent and new recurring suppliers of products containing said materials to provide the Conflict Minerals Reporting Template (CMRT), as per the latest version developed by the Responsible Minerals Initiative (RMI)(through formats and international standards); y Analysis of information received for red-flags and inconsistencies and implementation of corrective actions. In2020, considering the4minerals coveredby theConflictMaterials Policy, theGrouppurchased limited quantities of tin. Analysis of 48 suppliers of tin to the Group identified their original sources, comprising 68 different smelters; of these, 65 are certified “DRC Conflict- free” by the RMI. The remaining 3 were subject of an analysis in accordance with instructions issued by the RMI (“Reasonable Country of Origin Inquiry”). Overall, the investigation did not identify any risk in this area. In France has been implemented in previous years a system based on the specially developed SAP transaction aimed to report the presence of hazardous substances in every single cable item, extended in 2020 to Italy, Spain andGermany, as planned. The systemtracks thepresence of hazardous substances based on Reach / Rohs regulations but is applicable also for monitoring other type of substances requested by specific industry regulation (automotive, OEMs …) and allows the identification of the cable items for which the hazardous substance exceeds themaximumallowed limit. Based on the above SASB Report 2020