2018 Sustainability Report
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Consolidated disclosure of non-financial information of the Group pursuant to Legislative Decree 254/2016 2018 Sustainability Report Consolidated disclosure of non-financial information of the Group pursuant to Legislative Decree 254/2016 2018 Sustainability Report 2018 NFD CONTENTS METHODOLOGY .............................................................................................................................................. 4 LETTER TO STAKEHOLDERS ............................................................................................................................. 7 HIGHLIGHTS .................................................................................................................................................. 8 PRYSMIAN GROUP .......................................................................................................................................... 9 OVERVIEW ................................................................................................................................................. 9 HISTORY ................................................................................................................................................... 15 BRAND, VISION, MISSION AND VALUES ....................................................................................................... 15 GOVERNANCE ............................................................................................................................................... 17 CORPORATE GOVERNANCE ......................................................................................................................... 17 PRYSMIAN AND THE FINANCIAL MARKETS .................................................................................................... 19 GOVERNANCE AND SUSTAINABILITY ............................................................................................................ 22 SUSTAINABILITY WITHIN PRYSMIAN ................................................................................................................ 24 AN INTEGRATED STRATEGY ........................................................................................................................ 24 SUSTAINABILITY SCORECARD ..................................................................................................................... 26 SUSTAINABILITY INDEX ............................................................................................................................. 28 VALUE FOR THE COMMUNITY ...................................................................................................................... 29 STAKEHOLDER ENGAGEMENT AND MATERIALITY ANALYSIS ............................................................................ 32 GROUP RISK MANAGEMENT SYSTEM ................................................................................................................ 36 INTEGRATED MANAGEMENT OF SUSTAINABILITY RISKS ................................................................................. 36 BUSINESS ETHICS AND INTEGRITY IN THE PRYSMIAN GROUP ............................................................................ 44 RESPONSIBILITY TOWARDS PEOPLE ................................................................................................................ 48 OUR HUMAN CAPITAL ................................................................................................................................. 49 DIVERSITY AND EQUAL OPPORTUNITY ......................................................................................................... 52 THE DEVELOPMENT OF TALENT ................................................................................................................... 53 WELFARE OF EMPLOYEES ............................................................................................................................ 57 HEALTH AND SAFETY AT WORK ................................................................................................................... 60 DESIGNING THE FUTURE RESPONSIBLY ........................................................................................................... 63 PRODUCT INNOVATIONS ............................................................................................................................ 64 THE ECODESIGN PROCESS IN PRYSMIAN GROUP........................................................................................... 69 THE PROTECTION OF OUR INTELLECTUAL PROPERTY ..................................................................................... 73 RESEARCH AND DEVELOPMENT: PARTNERSHIPS ........................................................................................... 77 ENVIRONMENTAL RESPONSIBILITY .................................................................................................................. 78 ENVIRONMENTAL PROTECTION.................................................................................................................... 78 ENVIRONMENTAL PERFORMANCE ................................................................................................................. 81 CUSTOMER CENTRICITY ................................................................................................................................. 90 CUSTOMER SATISFACTION ......................................................................................................................... 90 SERVICE TIMELINESS AND EFFICIENCY ........................................................................................................ 92 A SUSTAINABLE SUPPLY CHAIN ....................................................................................................................... 94 OUR SUPPLIERS ......................................................................................................................................... 94 A CHAIN OF RESPONSIBLE VALUE ................................................................................................................ 96 LOGISTICS AND TRANSPORT....................................................................................................................... 98 2 2018 NFD ATTACHMENTS ............................................................................................................................................ 100 Human resources ..................................................................................................................................... 100 Health and safety ..................................................................................................................................... 103 Environment............................................................................................................................................ 104 Energy consumption ............................................................................................................................... 104 GHG emissions....................................................................................................................................... 105 Waste ................................................................................................................................................... 106 Water consumption ................................................................................................................................ 108 Complaints .............................................................................................................................................. 109 CORRELATION TABLE LEG. DECREE 254/2016 AND GRI ASPECTS ...................................................................... 110 ANALYSIS OF THE TOPIC BOUNDARY OF MATERIAL ASPECTS FOR THE PRYSMIAN GROUP .................................... 110 GRI CONTENT INDEX ................................................................................................................................... 111 INDEPENDENT AUDITORS' REPORT ................................................................................................................ 117 3 2018 NFD METHODOLOGY This document represents the Consolidated Disclosure of Non-Financial Information (hereinafter also the "NFD", "Statement” or "Sustainability Report") prepared pursuant to Articles 3 and 4 of Legislative Decree no. 254/16 (hereinafter also the "Decree") and subsequent amendments, by Prysmian S.p.A. and companies consolidated line-by- line (hereinafter also "Prysmian" or the "Prysmian Group" or the "Group") and its objective is to ensure the understanding of the business model, the activities, the main risks and performance indicators of the Group with regard to environmental, social, employee matters, respect for human rights and anti-corruption and bribery matters that are relevant taking into account the activities and characteristics of the company during the 2018 financial year (from 1 January to 31 December). The NFD covers - to the extent necessary to ensure the understanding of the business activity, its performance, its results and the impact produced by it - environmental, social, employee matters, respect for human rights and anti- corruption and bribery matters that are relevant taking into account the Group's activities and characteristics, as illustrated in the materiality matrix contained in this document in the chapter "Stakeholder engagement and materiality analysis". On 6 June 2018, the Prysmian Group, with registered offices