Main achievements and targets

SUSTAINABILITY

Main achievements and targets

OVERVIEW

Our Environmental Performance Target

We have set clear, company-wide goals and targets to improve our environmental performance. Our environmental goals focus on two main areas: helping clients gain access to sustainable energy and infrastructure and pursuing responsible consumption of resources. Commencing from the end of 2022, Prysmian has defined a new three-year scorecard (2023-2025, baseline 2022), revising and simplifying the KPIs used (11 impact KPIs) to make the measurement, monitoring and communication of results more effective. These were defined after an analysis of:

  • Prysmian ambitions (Social and Climate Change Ambitions);
  • UN Sustainable Development Goals;
  • GRI Standards;
  • New process for carrying out the Materiality Analysis.

Among the 11 impact KPIs, we highlighted:

  • Enable access to green electricity to households: Estimation of the families connected to green energy through Prysmian products. It includes capacity installed through PV panels, onshore and offshore wind turbines and interconnectors where dedicated to renewable energy.
  • Enable fast digital access to households: Estimation of the families having access to fast digital access (defined as FTTH, FTTB, DOCSIS 3.0) thanks to Prysmian products.
  • Percentage reduction of Scope 1&2 GHG Emissions vs baseline 2019: decrease in the company’s CO2 emission compared to the 2019 year, in accordance with the SBTi methodology. Scope 2 is calculated via market-based approach.
  • Percentage reduction of Scope 3 GHG Emissions vs baseline 2019: decrease in the value chain CO2 emission compared to the 2019 year, in accordance with the SBTi methodology.

Energy Efficiency Projects

New projects in the energy field - launched in 2021 - progressed in 2022, in order to quantify the energy savings obtainable by using specific technical solutions, assess their effectiveness, and extend their implementation to other Group plants. Our Health Safety and Environment (HSE) function is focusing on the following main areas: consumption monitoring systems (smart metering); efficiency of systems for the production and distribution of compressed air; efficiency of heating systems; efficiency of motors.

In 2022, Group investment dedicated to all HSE projects, including work on energy efficiency, the reduction of direct GHG emissions and optimisation of both the management of water-based cooling systems and the management of waste, amounted to about Euro 37 million. Of this, about Euro 16 million was invested in initiatives for the improvement of environmental management.

The environmental projects / investments involved about eighty sites in 30 countries within the Prysmian reporting boundary.

The project to reduce SF6 was approved centrally at the end of 2021, with a view to cutting the CO2e emissions associated with the use of this gas by 90% over 5 years. The Livorno and Montereau plants were involved in 2022 and, due to the improved management and monitoring of consumption while using SF6 (mainly in product testing activities), a 76% reduction in environmental impact was achieved at Livorno and a 10% reduction at Montereau.

Largely as a result of these projects, the Group’s direct emissions associated with the escape of SF6 have fallen by 47%. This project will continue in the coming years with further investment in the minimisation of SF6 releases.

Circularity of resources

Prysmian is committed to implementing circular economies to reduce its own environmental impact, using fewer resources to manufacture its own products and keeping materials in the production cycle as long as possible. The Group’s approach to circularity breaks down into three main aspects:

  • the procurement of recycled materials
  • the minimisation of waste materials
  • the downstream recycling of waste from the plants.

GHG emissions reduction

The Group has decided to make a concrete commitment to reduce the GHG emissions that derive from its activities and value chain, setting targets for the reduction of emissions (Scopes 1, 2 and 3) towards the Net-Zero target, thus helping to decarbonise the economy.

Prysmian impacts on the environment via its manufacturing activities, creating direct emissions (Scope 1) from combustion, releases into the atmosphere of SF6 gas used mainly for testing purposes, and leaks of refrigerant gases used mostly in air-conditioning systems, as well as indirect emissions from energy consumption (Scope 2).

Indirect GHG emissions (Scope 3) account for over 99% of the Group’s total carbon footprint. Over 97% of total emissions generated throughout the value chain are mainly attributable to use of the products sold. The procurement of raw materials represents about 2.4% of the Group total, while the remainder is split between logistics, investment, and other minor categories.

Participation in the Carbon Disclosure Project (CDP)

Since 2013, Prysmian has made its environment management initiatives public by participating in the CDP (Carbon Disclosure Project) global environmental reporting system. In 2022, the Group received an [A-] rating, positioning it within the Leadership band and ahead of the European average of [B].

In order to contribute even more significantly to the reduction of emissions and analyse in even greater depth the business activities at all levels in the value chain, Prysmian has included its Scope 3 emissions in the Non-Financial Statement for the first time and, like in previous years, in both a specific GHG Statement and in the CDP Climate Change questionnaire.

In 2022, Prysmian identified 170 suppliers (approximately 60% of the Prysmian’s total expenditure) deemed significant according to the sustainability criteria defined by the Group and invited them, in collaboration with CDP, to report their emissions, by responding to the CDP Climate Change questionnaire. The number of replies increased slightly compared to 2021 and includes several SME providers who replied to the questionnaire for the first time. Prysmian has noted satisfactorily that a high percentage of suppliers have disclosed their objectives, including involving their supply chain on climate issues.

97% of Group plants hold ISO 14001 certification for their environmental management systems, which guarantee and monitor the sustainable use and protection of water and marine resources. The commitment of the organisation to preventing and managing the potential negative impacts on water resources is reiterated in specific policies for the water management plans and confirmed by completion of the CDP Water Security Questionnaire.

Launch of a new medium-term sustainability-linked loan

In 2022, a new medium-term sustainability-linked loan of €1.2 billion was launched to strengthen the financial structure and the integration of ESG factors into the Group’s strategy. The parameters determining the loan terms also include important environmental and social indicators.

Design 4 Sustainability

Sustainability is increasingly central to the Group’s R&D activities following the 2022 launch of the DESIGN FOR SUSTAINABILITY (D4S) programme, which will change the way of working of the entire R&D community and related network. The development of new products now considers their value in terms of sustainability, applying the Eco Cable criteria at the heart of the D4S programme. In addition, the “Accolade” programme will include sustainability among the key criteria when evaluating project portfolios in various countries/Business Units.

Calculating the Carbon Footprint for Individual Cables

One of the most significant challenges of the ecological and energy transition is the Green Supply Chain, i.e. initiatives to reduce the environmental impact of production activities and the supply chain. Benefits are expected from the improved positioning of the Group, which will reflect new consumer preferences and attract greater interest from financial institutions that favour companies that reduce their carbon footprint, resulting in access to “green” financing that can reduce the cost of capital. Prysmian continues to pursue various initiatives in the field of “eco-friendly” products and in particular the launch of the “Eco Label” (Eco cable) initiative, the purpose of which is to identify products with the best characteristics in terms of carbon footprint, absence of substances hazardous to the environment, recyclability, recycled content, etc., with its extension to a European level, has enabled the “Eco cable” label to be applied to an important part of its product portfolio.

With regard to reducing material consumption in manufacturing, the adopted “Design to Cost” program is the tool used to identify new solutions to be shared with the entire value chain.

With regard to recycling, several initiatives are underway, especially in the European context, with the aim of using recycled materials in particular for the sheathing of medium and low voltage cables, taking advantage of the supply chain of recycled plastics from urban waste and industrial waste.

Also, regarding circularity, Prysmian has the proprietary P-Laser technology, which is fully recyclable at the end of its life and offers superior thermal performance, high inherent reliability and superior environmental performance compared to more traditional technologies.

Regarding toxic substances, several projects are underway with the aim of eliminating lead, lead oxides and other substances such as certain plasticizers from the manufacturing process for the production of PVC-based compounds.

In 2022, the percentage of product families covered by the carbon footprint measurement was 92% (versus 89% in 2021).