In 2019 Prysmian purchased metals, plastics and other materials from nearly 5,600 suppliers used to produce energy and telecommunications cables and accessories, as well as buying special types of glass and coatings for optical fibers. Suppliers for recurring and strategic materials/services must subscribe to the Code of Ethics. Prysmian picks its suppliers through a formal process based on economic and financial analysis; it examines information and data on, for example, the risk of dependence on the supplier, or on the supplier’s technical and technological capacity and skills. Over 3,500 of Prysmian’s suppliers are in Europe, and Prysmian tries to work with providers with local presence wherever possible. The Group consumes slightly more than 2-3 % of the world's copper production and about 7% of the copper used in the electrical and electronic sector, making it one of the leading economic players in the sector. Long-term strategies for the purchase of copper and aluminum naturally lead Prysmian to work with the largest and most important companies in the respective sectors. Around 10% of the raw materials Prysmian purchases are renewable. Prysmian seeks to use the most integrated manufacturers who can guarantee long-term supplies and have direct access to raw materials, thus creating real industrial partnerships.
Minerals extracted from conflict zones may result in prolonged fighting, and rules in the US and EU require that companies monitor their supply chains to prevent using these raw materials. Prysmian aims to guarantee a "Conflict Minerals free" product. It therefore identifies materials and semi-finished products containing 3TG (tin, tungsten, tantalum and gold from the Democratic Republic of Congo or neighboring countries).
Prysmian Group has developed a Risk Analysis to asses raw material suppliers. In 2019, Prysmian evaluated 152 suppliers accounting for 61% of spending to assess their current or potential impact in relation to environmental criteria, human rights and working conditions. Prysmian 2020 target (60% of spending to be assessed by 2020) has been already achieved in 2019 reaching 61% of evaluation of sustainability practices.
Prysmian works with Milan start-up Green Router to measure emissions in its supply chain in Italy and in Northern Europe. The Group has joined the SmartWay Transport Partnership US, which provides a framework to assess the environmental and energy efficiency of goods movement supply chains in collaboration with the Environmental Protection Agency.
Prysmian purchased 1,930 tonnes of non-renewable materials in 2019, of which 58% were metals, 21% were compounds, and 18% were ingredients.
The Group definition of "local" is all those suppliers whose operational sites are physically close to the ones of Prysmian. In EMEA, Prysmian purchased 70% of its supplies locally; in APAC, 85%; in North America 94%; and in LATAM 83%.
Upholding its commitment to managing sustainability risks affecting its first-level suppliers, in 2020 Prysmian expects to continue the program of supplier audits at the same level of intensity as in prior years. Following the integration with General Cable, Prysmian is in the process of updating its Sustainability Scorecard, and setting new targets for 2022.
