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PRYSMIAN GROUP | DIRECTORS’ REPORT
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have been developed that, by predetermining loss scenarios, allow all the appropriate countermeasures to
be activated as soon as possible in order to minimise the impact of a catastrophic event.
Lastly, specific insurance cover for damage to assets and loss of associated contribution margin helps
minimise the risk's financial impact on cash flow.
Environmental risks
The Group's production activities in Italy and abroad are subject to specific environmental regulations, of
which particularly important are those concerning soil and subsoil and the presence/use of hazardous
materials and substances, including for human health. Such regulations are imposing increasingly strict
standards on companies, which are therefore forced to incur significant compliance costs.
Considering the number of the Group's plants, there is a theoretically high probability of an accident with
consequences for the environment, as well as for the continuity of production. The resulting economic and
reputational impact would be critical.
The Group's policy of acquisition-led growth could augment its exposure to environmental risks, as a result of
acquiring manufacturing facilities that fall short of its standards.
The management of environmental issues is centralised with the Health Safety & Environment (HSE)
function that, by coordinating the local HSE functions, is responsible for organising specific training activities,
for adopting systems to ensure strict adherence to regulations in accordance with best practices, as well as
for monitoring risk exposures using specific indicators and internal and external auditing activities.
Lastly, it is reported that 94% of the Group's sites are certified under ISO 14001 (for environmental
management systems) and 65% for OHSAS 18001 (for safety management).
LEGAL AND COMPLIANCE RISKS
Compliance risks associated with laws, regulations, Code of Ethics, Policies and Procedures
Compliance risk represents the possibility of incurring legal or administrative sanctions, material financial
losses or reputational damage as a result of violations of laws, regulations, procedures, codes of conduct
and best practices. Right at its inception, the Prysmian Group approved a Code of Ethics, a document which
contains ethical standards and guidelines for conduct to be observed by all those engaged in activities on
behalf of Prysmian or its subsidiaries, including managers, officers, employees, agents, representatives,
contractors, suppliers and consultants. In particular, the Code of Ethics requires full compliance with current
regulations and the avoidance of any kind of misconduct or illegal behaviour. The Group adopts
organisational procedures designed to prevent violation of the principles of legality, transparency, fairness
and honesty and is committed to ensuring their observance and practical application. Although the Group is
committed to ongoing compliance with applicable regulations and to close supervision to identify any
misconduct, it is not possible to rule out episodes in the future of non-compliance or violations of laws,
regulations, procedures or codes of conduct by those engaged in performing activities on Prysmian's behalf,
which could result in legal sanctions, fines or reputational damage, even on a material scale.