Materiality Analysis

Materiality analysis

In order to report non-financial information in accordance with the major national and international standards, embed the needs and expectations of stakeholders in the activities of the organization and identify important trends with regard to sustainability, during 2023 Prysmian updated the analysis process for defining material topics considering impacts on the environment, local communities, employees, collaborators and society in general, as well as the economic and financial risks and opportunities that the group may encounter.

This allowed us to anticipate several of the analyses that will become necessary as of 2024 with the implementation of the European Sustainability Reporting Standards (ESRS) and the entry into force of the Corporate Sustainability Reporting Directive (CSRD), which will introduce a "dual materiality" approach.

Impact Materiality

Prysmian reports on the sustainability aspects identified based on "Impact Materiality" in compliance with the GRI Universal Standards 2021. The process of updating the materiality of the Group comprises four phases, as indicated in the guidelines for “GRI 3: Material Topics”

Financial Materiality

The Corporate Sustainability Reporting Directive (CSRD), starting from the 2024 Financial Statements, will amend the current reporting obligations (Non-Financial Reporting Directive transposed into Italian law by Italian Legislative Decree 254/2016). The Directive, among other changes, also requires reporting on the risks encountered and the opportunities from which the company may benefit financially.

As a result, Prysmian, in advance of legal requirements, decided to set up an analytical system for quantifying risks and opportunities, in line with the Risk Assessment process and methodology already adopted by the Group.

According to Financial Materiality, a topic can also be financially material if it triggers, or could trigger, material financial effects on the enterprise. Specifically, this occurs when a material topic generates or can generate risks or opportunities that have a material influence on the enterprise’s development in terms of cash flow and operating profitability (Free Cash Flow and EBITDA, respectively).

Materiality Analysis