Linking the sustainable future Sustainability Report Consolidated disclosure of non-financial information of the Group pursuant to Legislative Decree 254/2016 Sustainability Report Consolidated disclosure of non-financial information of the Group pursuant to Legislative Decree 254/2016 2 Prysmian Group Consolidated Non-Financial Information Statement 2019 Contents HIGHLIGHTS 4 LETTER TO STAKEHOLDERS 6 SUSTAINABILITY IS IN THE DNA OF THE PRYSMIAN GROUP 8 GLOBAL PRESENCE 10 01_PRYSMIAN GROUP, LINKING THE FUTURE World leader in the supply of power and telecom cables 14 Vision, Mission, Values 15 A business model balanced by segment and geographical area 16 - Business areas 17 Prysmian Group for the energy transition 18 - The largest cable-laying vessel in the world 20 - Cable technology in support of the energy transition 21 - Prysmian roadmap for innovation 21 Significant facts 22 02_SUSTAINABILITY IN OUR DNA Sustainability in Prysmian Group 26 - Sustainability is in our DNA 26 - The ESG strategy of the Group 30 - Our targets for 2022 - Scorecard 32 - Prysmian Group in the ESG indexes 34 - Association memberships 35 - Stakeholder engagement and materiality analysis 36 03_LEADING INNOVATION Sustainable innovation 42 - Innovation eco-system 43 - Partnerships 44 - Speaking platforms 45 - R&D by the Prysmian Group: the Focus 46 Protection of intellectual property 64 04_A PUBLIC COMPANY Prysmian and the financial markets 68 - Share ownership 68 - Annual general meeting 70 - Investor Relations 72 05_GOVERNANCE AND RISK MANAGEMENT Group risk management system 76 - Integrated management of sustainability risks 76 Corporate Governance 86 Governance and sustainability 89 Prysmian Group Consolidated Non-Financial Information Statement 2019 3 06_OUR COMMITMENT Ethics and Integrity 92 - Code of ethics of the Prysmian Group 92 Cyber Security 97 Responsibility towards people 100 - Our human capital 101 - Diversity and equal opportunity 104 - The development of talent 106 - The wellbeing of our employees 111 - Dialogue with social partners and collective bargaining 112 - Occupational health and safety 114 - Commitment to the community 117 Environmental responsibility 122 - Environmental protection 122 - Environmental performance 127 Our customer-centric approach 136 - Understanding the needs of our customers 136 - Rapid, targeted and efficient responses 137 - Innovations for customers 137 - Management of complaints 138 - Service timeliness and efficiency 139 Sustainable supply chain 141 - Our suppliers 142 - Responsible value chain 145 The main industrial investments 148 Logistics and transport 152 Methodology 154 Attachments 158 - Human resources 158 - Health and safety 164 - Environment 166 - Energy consumption 166 - GHG emissions 168 - Waste 169 - Water consumption 172 - Description of material topics 173 - Correlation table Decree 254/2016 GRI aspects 174 - Analysis of the topic boundary of material aspects for the Prysmian Group 175 - GRI content index 176 Independent Auditors’ Report 184 4 Prysmian Group Consolidated Non-Financial Information Statement 2019 Highlights Environmental GHG Innovation Economic dimension Prysmian Group Consolidated Non-Financial Information Statement 2019 People & Communities YES PROGRAMME Over EMPLOYEES under 30 Ethics and Integrity 6 Letter to Stakeholders Signature of the Green Deal by the new European Commission in December 2019 has, for the first time, committed the EU to strive for climate neutrality by 2050, confirming compliance with the intermediate objectives set for 2030 and 2040. This has activated an ambitious action plan to limit the increase in global warming over the next thirty years that, according to the estimates of the UN In- tergovernmental Panel on Climate Change (IPCC), must not exceed 1.5°C in order to avoid irreparable Valerio Battista damage to the planet. A similar approach was con- Chief Executive Officer Prysmian Group firmed by the United Nations at the start of 2020, which launched the “Decade of Action” programme containing accelerated solutions for all the challen- ges set by the 2030 sustainable development goals. So there is no doubt that the single most important goal is to achieve the production of clean electri- city. This means transitioning from the current model based on the combustion of fossil fuels and main culprit of climate change - and, therefore, for about 60% of global greenhouse gas emissions - to the production of energy from renewable sources that preserve eco-systems for future genera- tions and can be made accessible to an increasing number of persons in all regions of the world, in order to support their civil and economic progress. The Prysmian Group is committed to supporting efforts to achieve the objectives set by the global agenda, contributing to the creation and modernisation of infrastructure for the transportation and distribution of energy and telecommunications, which are essential drivers in the transition to the new model for the development of society. For this reason, the Group is committed to constant technological innovation, with about Euro 106 mil- lion invested in R&D during 2019, over 50 partnerships for innovation and about 5,900 patents held. As a public company, we have always maintained open and transparent dialogue with our stakehol- ders: shareholders, employees, customers and suppliers, the institutions and the communities in which we work. We are committed to ensuring high governance standards and practices: 67% of Board members are independent, 42% are women. Over 9,200 Group employees are shareholders in the Company, owning about 1.5% of share capital. Prysmian Group Consolidated Non-Financial Information Statement 2019 7 The incentive scheme for all managers within the Prysmian Group is linked to the achievement of objecti- ves for the improvement of our ESG parameters. The Compensation, Appointments and Sustainability Committee is responsible for assessing the performance of the Group against these criteria. When as- sessing performance in 2019, the Committee will make reference to the positioning of the Group in the Dow Jones Sustainability Index, the CDP Index and the EcoVadis index, to the gender diversity of manage- ment, to the reduction of CO2 emissions and to topics related to occupational health and safety. The ESG criteria are fully integrated into the industrial strategy of the Prysmian Group. Indeed, we have adopted a scorecard that enables us to manage social and environmental matters as a part of our business activities. This scorecard contains 14 clear and measurable objectives with a business impact. Our international presence, in 50 countries around the world, has heavily influenced our di- versity in terms of culture, gender and age. Starting from 2016, we have introduced various suitable initiatives designed to build on this extraordinary characteristic, such as the “Side by Side” project - for the creation of value consistent with our business objectives - and the Women Leadership Pro- gramme, which provides training to our female talents and has helped to raise the percentage of women in executive positions to 12% (10.8% in 2018). Lastly, from September 2019 the Prysmian Group is included - as the only company in the cables sector - in the Dow Jones Sustainability World index. Tracking 2,700 businesses, this is the most important interna- tional index for the assessment of performance in environmental, social and governance (ESG) terms. Impact of the COVID-19 pandemic Our commitment to responding to the effects of the COVID-19 pandemic that broke out in early 2020 was immediate. The Group can count on a broad geographic distribution of its production sites and an extensive diversification of its end markets. Top priority has been given to protecting the health of em- ployees by implementing strict health and safety measures for plants and offices and making extensi- ve use of remote working. Given this situation, the Group’s management has made it a priority to ensure the greatest possible continuity of its supply chain and operations, to protect its business and ability to generate cash-flows, and to adopt all possible cost containment and cash flow protection measures. At its meeting on 30 March 2020 to review the effects of the changed macroeconomic and market scenario caused by the outbreak of the COVID-19 pandemic at the global level, the Board of Directors confirmed the assessments made at its meeting of 5 March 2020 regarding the Group’s ability to gene- rate cash flows and sustain a balanced long-term dividend policy and believes its financial structure, liquidity and available credit lines are entirely adequate to respond to the new economic and financial situation emerging from the ongoing health emergency. However, in light of the spread of the pandemic and its potential duration, and given the uncertainty surrounding the terms and geographical extent of the restrictions to production and logistics around the world, as well as the slowdown that it could cause on the demand and the economic cycle, the Bo- ard of Directors has deemed it prudent to modify the proposed allocation of 2019 profits to be submit- ted in the forthcoming Shareholders’ Meeting called for 28 April 2020. To conclude, I can confirm that the Group remains closely focused on pursuing sustainable growth strategies, even in a macroeconomic and market scenario that as a result of the COVID-19 pandemic is undergoing profound change. 8 Prysmian Group Consolidated Non-Financial Information Statement 2019 Sustainability is