Supply Chain

Supply Chain

Forging a Sustainable Supply Chain

Prysmian's business model operates on a global scale, with a presence in over 50 countries and a diverse product portfolio. This model relies on a complex supply chain that necessitates continuous interaction with a wide range of suppliers from various backgrounds and cultures. Prysmian is dedicated to improving its supply chain as part of its sustainability strategy. This involves adhering to specific business ethics, respecting individuals throughout the supply chain, and reducing our environmental impact. 

 

Stakeholder feedback is vital in shaping our sustainability strategy, and they believe that a sustainable supply chain significantly influences Prysmian's business and overall value. By enhancing the supply chain, we aim to improve all key elements of our sustainability efforts. This initiative not only respects ethical standards and prioritizes people but also has the potential to reduce our environmental footprint while enhancing business efficiency. Ultimately, this highlights the tangible benefits of our commitment to sustainability.

Sustainable Supply Chain Strategy

To achieve its sustainability goals, Prysmian recognizes the necessity of a sustainable supply chain. The company has established targets to reduce greenhouse gas emissions by 15% and recycle 40% of waste by 2020, with suppliers playing a crucial role in this effort. 

 

Prysmian's strategy for a sustainable supply chain is guided by several key principles. The first is assessment: the supplier qualification process begins with suppliers completing a questionnaire that addresses various issues, including ESG (Environmental, Social, and Governance) criteria. Another significant principle is Risk Analysis, which Prysmian applies to its most critical suppliers to evaluate them against sustainability criteria. The company is committed to using only those raw materials that pass quality tests considering both environmental and social aspects. 

 

Performance management is essential for reinforcing Prysmian’s commitment to sustainability. The company conducts regular supplier performance reviews. In 2017, Prysmian initiated a vendor mapping effort, requiring 100% of its recurring suppliers of base metals to complete detailed self-assessments on key factors affecting sustainability, which include integrity, workers' rights, and environmental impact. A third party analyzes these responses, and Prysmian further discusses the evaluation results with the suppliers. 

 

Prysmian implements its sustainable supply chain strategy through three main activities. Suppliers of recurring and strategic materials/services are required to adhere to the Code of Ethics. Additionally, the company has developed a Conflict Minerals Policy to ensure a "Conflict Minerals-free" supply chain. The Human Rights policy has been expanded to include specific provisions for monitoring potential breaches in the supply chain, along with remedial actions and, if necessary, the exclusion of suppliers from all commercial and business relationships if they fail to meet the required standards promptly. 

 

The current supply chain for raw materials will be evaluated through sustainability desk analysis, risk analysis, and self-assessments. Progress toward achieving these goals is monitored via the "Sustainability Scorecard."

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