Responsible business

SUSTAINABILITY

Responsible Business

For Prysmian, sustainability is a key principle that guides investment choices, economic activity and relations with stakeholders.

Responsible business activities

Prysmian Group’s industrial investment strategy seeks to improve efficiency by concentrating the production of higher value-added cables in selected plants destined to become centers of excellence with high technological skills and, where possible, the ability to leverage economies of scale. At the same time, we are working to achieve greater manufacturing efficiency in the commodities sector, while maintaining a well-diversified geographical presence in order to minimize distribution costs. In 2022, the gross value of investments increased to €454 million, up from the previous year (€283 million), by increasing its investments in production capacity and facilities, which are critical to meeting the accelerating demand for digitalisation and electrification systems that account for some of the key requirements in the so-called transition to alternative sources of energy. The rate of investment for operations intended to increase production capacity and variations in product mix amounted to 67% of total investments. The most substantial investment was for the order for a new cable-laying ship, on the cutting edge, for nearly €200 million, plus a supplement of nearly €40 million for the cable-laying equipment. The design follows that of the Leonardo da Vinci, recently completed and in operation since 2021.

The new ship, which will become part of the existing fleet starting in 2025, will be tasked with conducting all offshore operations for pipeline project cable laying, among which are DoIWin4 and BorWin4, which call for the design, production and installation of an interconnection of nearly 1,000 km of submarine and land 320 kV HVDC cables, using single-pole cables with XLPE insulation.

The total investments destined to provide efficiency for the reduction of variable costs (mainly in product design and the materials used), and of fixed costs, has amounted to nearly 10% of overall investments. Moreover, even in 2022, the Group has continued to implement a major operation to minimise costs in the entire Telecom business sector production chain.

8% of investment expenditure was dedicated to further development of the Group’s IT systems, Digital Transformation initiatives and R&D.

Innovating in a sustainable way

At Prysmian Group, innovation and sustainability are two sides of the same coin and a fundamental strategic approach to creating sustainable value for all stakeholders. Sustainability is a guiding principle for R&D as we seek to create products that consume less and deliver more, use lighter materials, more efficient design and reducing hazardous materials. Globally, Prysmian Group R&D consists of more than 1000 professionals, working in 26 R&D centers around the world, for a budget of €117 million in 2022 on an innovation strategy aimed at making Prysmian a key player in the value chain supporting the energy transition, digitalization and sustainability. New products introduction (NPI) activity showed a significant increase, with 17% vitality (vs 14% in 2021) and 250 new product families launched in the year. In order to work more closely with stakeholders on innovation projects and carry out research, the Prysmian Group has created an eco-system in close contact with customers and suppliers, as well as with the best universities in the world, focusing on innovation areas of greatest interest for their environmental impact and the evolution of the sector.

Distribution of value to stakeholders

The economic value generated, being the overall wealth created by the Group for all stakeholders, totalled €16,719 billion in 2022. Much of this value, €16,211 billion, was redistributed. Of that amount, 80.89% was spent on suppliers, 10.85% was paid to staff, 6.83% went to lenders for interest on financing, 1.42% was paid to the Public Administration, and 0.01% was contributed to the community.

Our relationship with shareholders and investors

As a public company with a 100% free float and no controlling shareholder, our relationships with investors are crucial. Every year we organize over 500 meetings with members of the financial community, guided by the highest standards of accuracy, clarity and transparency. Our disclosure and communications 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. In addition, the ever-increasing attention paid by ESG investors to environmental, social and governance matters was further confirmed by their growing attendance at meetings and conferences held specifically for them. In fact, the weighting of ESG investors has increased substantially in recent years, rising from about 13% in 2019 to over 48% at present. This latter percentage is well above the average for both the industrial sector and the Italian market.

The coverage of Prysmian shares by analysts remains very high, 19 independent analysts who regularly rate the Prysmian stock.

A Customer- centric approach

Prysmian Group places its customers at the centre of everything it does, from design to execution and the creation of new products. Prysmian monitors customer experience levels via specific initiatives and using innovative tools, in order to respond promptly with ever greater efficiency.

One of the most relevant initiative is the Customer Portal / b2b Program, aimed to set up a unique informative platform for the Customers, enhanced with on-line shop features for standard cable, and based on Country go-to market. The Program is coordinated centrally and deployed at Country level.

Customer satisfaction is monitored via web surveys and individual interviews. The Group applies the principles of flexibility throughout the entire supply chain, with a view to accelerating the time to market and adapting to customer requirements in the various sectors.

Thanks to its global footprint, Prysmian is perfectly able to respond to all the different needs of customers. The Group can serve very different segments and markets thanks to its matrix organizational structure: in local markets the company uses domestic business and development structures, but its business units are also able to serve global customers by cooperating at an international level.

Supply Chain

Supply Chain

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Customer centricity

Customer centricity

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