arrow-right angle-down-sx angle-down-dx menu-hamburger search YouTube Facebook Twitter Instagram LinkedIn Flickr Scribd Info Tooltip

Materiality Analysis of the Group


Materiality Analysis

In order to report non-financial information in line with the requirements of the main international and national Standards, integrate the expectations and needs of stakeholders into the organization’s activities, and identify relevant trends in sustainability, Prysmian in 2022, started a process of analysis to define material issues, through the identification of the most significant impacts generated by the company for its business.



This approach incorporated the new reporting guidelines, anticipating the relevant regulatory changes, so as to contribute more effectively to sustainable development. In particular, the changes included:

  • to adopt the guidelines for the new GRI Universal Standards 2021, which envisage an analysis of the impacts generated by the business on the economy, the environment, people and human rights using an “inside-out” approach (“Impact Materiality”);


  • to anticipate future developments in sustainability reporting expected when the Corporate Sustainability Reporting Directive (CSRD) comes into force, with application of the “double materiality” approach. In addition to the requirements documented in the GRI Standards, this approach also takes into consideration - from an “outside-in” standpoint - the financial impacts on the business of addressing ESG matters ( “Financial Materiality”).


  • This analysis drew, in part, on the risk assessments already carried out by the Prysmian Group’s Risk Management function, as well as on work performed as part of enterprise risk management (source: TCFD 2021).

Impact materiality approach

The updated list of topics assessed in 2022 and shown by their significance is presented below:


  • Approach to double materiality via financial materiality (outside-in): Financial impacts on the business of addressing ESG matters, in accordance with the corporate sustainability reporting directive (CSRD)


  • The new CSRD (Corporate Sustainability Reporting Directive) introduces the concept of double materiality that, in addition to the external impacts generated by the business (inside-out approach), requires the financial impacts felt by the business to be reported as well (outside-in approach).
    Prysmian implemented for the first time an analytical system for the quantification of impacts felt, consistent with the risk assessment process and methodology already adopted by the Group.

The following financial parameters were used to quantify the impacts felt: Free Cash Flow and Adjusted EBITDA, in line with the Enterprise Risk Management (ERM) model of the Group. Two time horizons were identified for their assessment: short term (within three years) and long term (2030).



How Artificial Intelligence can help define materiality

The role of artificial Intelligence in the Materiality definition

The concept of “dynamic materiality” is based on the idea that environmental, social, or economic matters, that are less relevant to date, may become material over time. Prysmian, with the use of an Artificial intelligence tool, has conducted an analysis to anticipate the evolution of investors’ perception over material topics.