Prysmian: the first decade

The tenth anniversary of the founding of the Prysmian Group was celebrated in 2015, representing an ideal occasion to remember the great success achieved over the years. These celebrations, with various initiatives involving Prysmian's people and stakeholders, also offered a chance to think about and analyse the results delivered during the past decade. Multiple marketing and communications activities were organised throughout 2015 to mark this 10-year milestone: all communications carried a golden logo created especially in honour of the tenth anniversary, while the history of Prysmian over the decade was gathered and recounted in a book, produced for the occasion, that was dedicated and distributed to every employee.

Inclusion in the FTSE4Good index

Prysmian is now included in the FTSE4Good, a prestigious global index comprising firms that stand out for both their ethical and transparent management practices, and the implementation of sustainable policies. The majority of the stringent requirements specified by the FTSE Group were met by Prysmian. In particular, Prysmian received excellent ratings from the Index's commission of experts due to the high standards assured for employees, as exemplified by our Diversity and Inclusion policies. The Group's HR management processes are designed to support the development of individuals and a common identity, via multiple programmes for the management of talent within a highly multi-cultural environment. Additional merit points were awarded for the close attention paid by the Group to the entire supply chain, thanks to the introduction of the Code of Business Conduct that was devised in order to disseminate and assure the adoption of responsible practices by all suppliers.

Economic value distributed to stakeholders

With regard to the economic and financial responsibilities of the Group, relations with the financial market were particularly intense during 2015, involving more than 400 meetings with institutional investors, whether in the form of conference calls or one-to-one or group sessions.

In addition, Prysmian has re-opened the international YES (Your Employee Shares) programme, following the broad involvement achieved in the first two years. This plan enables employees to purchase shares on advantageous terms. To date, the YES plan has involved about 40% of employees, with an investment of almost 17 million euro and about 1% of capital. This successful programme seeks to increase the involvement, sense of belonging and business understanding of employees, thus strengthening the internal perception of the Prysmian Group as ‘One Company’.

UNHCR

Consistent with the Corporate Citizenship and Philanthropy Strategy  designed to support access to energy and telecommunications, the Group has collaborated with the UNHCR (United Nations High Commission for Refugees) by contributing to the purchase of solar lights for the Nepalese population that on 25 April 2015 was hit by a 7.8 magnitude earthquake that, among the very serious damage caused, also destroyed the country's electricity grid. The Group invited about 20,000 employees to make a donation, however symbolic, which CEO Valerio Battista then decided would be doubled by the Company.

The Group has also recently supported UNHCR when, on 16 April 2016,  another terrible earthquake struck Ecuador's Pacific Coast. The worst affected localities were Chamanga and Pedernales in Ecuador's northwest Esmeraldas. The earthquake caused thousands of deaths and injured more than 4,000 people. And The Group has decided to support local commutities providing,a lso in this case, solar lamps able to provide some light in the affected area where families have been forced to abandon their home.”

Capturing the value of Sustainability

CSR Review 2015

Commitment to sustainability

The Prysmian Group confirmed its commitment to sustainability during 2015 by renewing investment in the search for sustainable products, strengthening the process for developing its human resources and participating actively in projects and initiatives carried out in the public interest, as well as by reducing where possible the environmental impact of its products and production activities.

As the world leader in the cable industry, Prysmian Group carries the responsibility of making it sustainable.

Key results for the year

As part of the process of continuous improvement, Prysmian has prepared its Report in conformity with the new «G4 Sustainability Reporting Guidelines» issued in 2013 by the GRI – Global Reporting Initiative.

Moreover the Group was included in the FTSE4Good which is composed of the companies that stand out for their ethical, transparent management and implementation of proper sustainability policies in company processes. In addition, Prysmian achieved a 10-point improvement in its Corporate Sustainability Assessment for the Dow Jones Sustainability Index (DJSI), which is one of the main sustainability  assessments at international level.

In terms of Governance, the Board of Directors has appointed the Compensation and Nomination Committee with supervising the sustainability matters associated with the Group's activities and the dynamics of its interactions with all stakeholders.

A sustainable strategy

Prysmian Group is committed to working responsibly via a business model that identifies sustainability as a key element of every decision. The objective is to create value for all stakeholders (€1,580 million of economic value generated in 2015, which means +9.9% compared to  2014) while assuring the sustainable development of the Group and the territories in which we operate.

The sustainable strategy adopted by the Group focuses on sustainable, technological innovation in the solutions offered to customers, on the environmental responsibility of production processes, on environmental protection and the management of relations with the local communities in which the Group operates, as well as on safety at work and the development of personnel.

For the Group, 2015 was a year of great commitment and significant results in each of these areas.

Stakeholder engagement & materiality analysis

Prysmian makes daily efforts to establish relationships of trust with its stakeholders, founded on the principles of transparency, openness and listening.

The approach used by the Group to communicate with stakeholders has evolved steadily over time, involving various initiatives intended to make best use of the multiple channels available to the various business functions for establishing constant dialogue with the Group’s stakeholders.

Since 2014, Prysmian has carried out a materiality analyisis in order to map and prioritise the sustainability matters and expectations that are important for the Group and its stakeholders. Continuing and updating the work commenced in 2014, once again this analysis has identified the matters considered material, being  those with a significant economic, environmental and social impact on the organisation and that significantly influence the assessments and decisions of stakeholders. Understanding the viewpoints of stakeholders is in fact key, if the Group is to continue to generate shared value over the short, medium and long term.

Economic and financial responsibility

With regard to the economic and financial responsibilities of the Group, relations with the financial market were particularly intense during 2015, involving more than 400 meetings with institutional investors, whether in the form of conference calls or one-to-one or group sessions.

In addition,Prysmian has re-opened the international YES (Your Employee Shares) programme, following the broad involvement achieved in the first two years. This plan enables employees to purchase shares on advantageous terms. To date, the YES plan has involved about 40% of employees, with an investment of almost 17 million euro and about 1% of capital. This successful programme seeks to increase the involvement, sense of belonging and business understanding of employees, thus strengthening the internal perception of the Prysmian Group as ‘One Company’.

Values and Code of Ethics

The creation of value for shareholders, investors and other stakeholders is a key priority for Prysmian, being an important aspect of its commitment to accuracy, clarity and transparency in the communication of its business strategy, objectives and results.

The Code of Ethics represent the Group's "Constitution" and "is and important and innovative tool for promoting the fundamental rights of individuals, employment and the territory, and a good policy for fighting corruption" *.

The activities of Prysmian are marked by the following values:

Excellence: "Doing well is never enough. A rigorous approach and entrepreneurial leadership are combined to offer innovative and complete solutions for every kind of business"
Integrity: "When it comes to ethics, no challenge is too great or too small, if the objective is to achieve the best".
Understanding: "We have great respect for different opinions and ideas, and a lively interest in the needs of our customers".

* Source: European Commission

Corporate Governance

As a public company, Prysmian is aware of the important role played a system of corporate governance in guaranteeing the same level of protection for all categories of stakeholders. Precisely for this reason, the Group's system of corporate governance is focused on the creation of sustainable value for stakeholders over the long term, in the belief that pursuit of this objective will activate a virtuous spiral of effectiveness, efficiency and corporate integrity.

Investor Relations

The Group's action and procedures are designed to provide the market with credible information about the business, thus boosting confidence in the Company and encouraging a long-term investment approach to its shares. Every effort is made to avoid biased disclosures and ensure that all investors and potential investors receive the same information so that balanced investment decisions can be made.

In order to guarantee the transparency of information flows, Prysmian organizes conference calls with institutional investors and financial analysts upon publishing its quarterly data, and also invites specialist media representatives to take part. Furthermore, Prysmian promptly informs shareholders and potential shareholders about every action or decision that could have a material impact on their investment.

The increasing attention paid to the activities of the Group by socially responsible investors (SRI) was confirmed by their growing attendance at the road shows and meetings held for them.

Economic value distributed to stakeholders

Economic value represents the wealth produced by the Group that, in various forms, is distributed to stakeholders in the following ways: renumeration of human resources (direct renumeration, comprising wages, salaries and severance indemnities, and indirect renumeration in the form of social security and pension contributions), renumeration of lenders (interest expense), renumeration of Group shareholders (dividends paid) and other investors, renumeration of the Public Administration (total taxes paid), gifts and donations to the community.

The value retained by the Group is presented by the profit reserves carried forward.

Product responsibility

Our product responsibility is considered throughout the entire life cycle of each product, from design to delivery, by constantly monitoring performance against specific standards. For this reason, the Group strives constantly to develop innovative and technologically advanced solutions that strengthen our leadership and meet the requirements of our commercial partners and the end users of our products.

Modern, reliable, eco-sustainable and efficient electricity grids and telecommunications networks are both critical and strategic for growth of the global economy. Our products supply electricity and lighting to cities, enable people to move around and communicate with each other, and contribute to the steady industrial development of the sectors in which we operate. Prysmian products are central to the concept of sustainability.

Operations, innovation & supply chain

Work on the development of innovative products has continued in all segments of the market: Energy Projects, Energy Products and Telecom.

The Group extended the line of Afumex Green cables during the year, with the Afumex Green 1kV now representing the safest and most sustainable cable on the market. In particular, the production of this product no longer uses the traditional petroleum-derived polyethylene for insulation purposes, but rather bio-polyethylene (“green” polyethylene) derived from sugar cane, which is 100% renewable, certified at international level and capable of reducing CO2 emissions.

In order to assess the environmental and social impact of activities of the Group, Prysmian has taken additional steps towards the sustainable management of the entire supply chain. The Group has already adopted a Code of Business Conduct that is intended to spread responsible business practices. In this context, screening initiatives were strengthened during the year by considering sustainability criteria in the process of selecting and qualifying new suppliers. In addition, all suppliers of wire rod, which represents about 80% in volume of all metals purchased, were requested to complete a self-assessment questionnaire. The results were consequently shared with each supplier during the usual negotiation meetings.

Social responsibility

Within the social dimensions of our business, Prysmian recognizes its commitment and responsibility towards the persons who work for the Group, as well as those who form the local communities in the territories in which we are active.

People are the most important resource for creating, within a global company such as Prysmian, the cohesion needed to compete at the highest level in the business sectors addressed, while also pursuing the objective of generating lasting and sustainable value.

Investing in our people

Intellectual capital and talent are strategic assets for the achievement of our profitability and value creation objectives and, as such, must be supported by appropriate actions to develop and enhance their worth.

In 2015 the Group has further supported the activities of the Prysmian Group Academy, an international professional and management education centre, with the involvement of more than 700 employees. A new section of the Academy was created, for Manufacturing professionals. This involved the setting up of a practical training programme at the Mudanya plant in Turkey.

Additionally, consistent with the strategy of acquiring talent, a new  international recruiting programme, known as "Make It", has been launched to attract engineers interested in taking key, highly challenging positions at the main plants within the Group. The first year of this programme gathered about 6,000 applications.

This year “Build the Future, the Graduate Program” - the international programme for the recruitment and induction of new graduates -  saw its fourth intake  and 41 new graduates.

An Engagement Survey was also  launched to evaluate the link between Prysmian and its personnel, the employees' sense of commitment towards the company and the degree of satisfaction in their work. Globally, the survey covered 5,000 white-collar staff, and a pilot survey was carried out on 2,200 blue- collar staff.

Commitment to the community

Prysmian has continued to support the economic, social and cultural development of the territories in which the Group is active, encouraging offices and factories around the world to take a pro- active  approach to the well-being of their local communities. In particular, consistent with the Corporate Citizenship and Philanthropy strategy designed to support access to energy and telecommunications, the Group has collaborated with the UNHCR (United Nations High Commission for Refugees) by contributing to the purchase of solar lights for the Nepalese people hit by a major earthquake that, among the very serious damage caused, also destroyed the country's electricity grid.

Environmental responsibility

The Group’s commitment to safeguarding the environment and conserving natural resources is expressed not only by the intrinsic characteristics of our products, but also by how the production systems are managed. In particular, the prevention and reduction of their environmental impact is achieved, for example, by the efficient use of natural resources, the optimisation of logistics flows and the responsible management of waste.

In terms of energy efficiency, in 2015 the Group has participated once again in the Carbon Disclosure Project (CDP) which seeks to contribute to the pursuit of the objectives agreed in the Kyoto Protocol regarding the global reduction of greenhouse gas emissions.

HSE strategy

Considering the environmental aspects deemed significant at Group level, Prysmian’s Health, Safety & Environment (HSE) function worked with other Corporate functions to establish the Group’s HSE objectives for 2015, which were endorsed by the Board of Directors.

During 2015, the HSE function further consolidated the scope of its activities at various levels within the Group - corporate, country or region, business unit or production unit - centralising activities and coordinating the work of the local HSE functions.

About 160 inspections were carried out at the various factories during the year, including certification audits and certification maintenance audits, about 25% of which were carried out by experienced Prysmian personnel, while the rest was performed by auditors from external certification agencies. On top of this, 17 energy audits were conducted and internal auditors also visited various locations to check on specific matters. Territorial external agencies carried out periodic inspections too.

Certifications

During the year, the Prysmian Group continued work to coordinate the Group's HSE management systems by:

extending OHSAS 18001 certification of the safety management system to an additional 4 locations;

• using the official certification agency at factories previously certified by other agencies. In particular, during 2015, 16 factories changed to the official agency for ISO 14001 certification (regarding Environment Management Systems) and 4 changed in relation to OHSAS 18001 certification. This change has helped to coordinate the management systems, with the periodic checking of the Group's HSE procedures by the external agency and the involvement of HSE in defining and agreeing the corrective actions to be taken at the various Group factories, 91% and 63% of which were, respectively, ISO 14001 and OHSAS 18001 certified at the end of 2015. These percentages take account of the new certifications, following the extension of OHSAS 18001 Safety Management System certification to an additional 4 locations.

KEY EVENTS

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Prysmian:
the first decade

READ MORE

Inclusion in the
FTSE4Good index

READ MORE

Economic value
distributed to stakeholders

READ MORE

UNHCR

READ MORE