Supply Chain

Supply Chain

Prysmian continuously strengthens relations with core suppliers of key raw materials, promoting sustainability-led partnerships throughout the value chain.

The Group defines and updates environmental and social strategies for the supply chain, systematically integrating ESG factors into its assessment and management processes. The risks related to suppliers and raw materials are carefully assessed, applying ethical policies and standards to issues such as human rights and “Conflict Minerals”, supported by a Code of Business Conduct.

Key performance indicators related to ESG have been introduced into supply chain assessment processes to support achievement of these objectives. A specific Vendor Management Portal has been created to strengthen the monitoring of and alignment with ESG principles throughout the chain.

Sustainable supply chain

7,250

Tier-1 Suppliers

3,260

of base metal and raw material suppliers

2-3%

of world copper production is absorbed by the Group

7%

of the copper used in the electrical and electronics industry

Prysmian’s suppliers

As a leading global manufacturer that directly sources metals and other raw materials, we need to continuously monitor the entire supplier base to ensure that all our business partners apply ethical standards and responsible business practices.

Prysmian has a broad and diversified supplier base, based on mutually advantageous business relationships. Most of the Group’s suppliers are established leaders in their markets, applying best practices in the management of ESG factors.

The Group also works with smaller entities, supporting their growth and business continuity through constructive dialogue, recommendations and the application of shared standards.

Prysmian’s suppliers fall into four categories:

  • Base metals: aluminum, copper and lead, with the first two accounting for the majority of the raw materials purchased by the Group;
  • Raw materials for a broad range of products and applications;
  • Indirect materials: all the goods and services not directly related to end products.
  • HV installation: the supply of goods and services related to the installation of land and marine cables. These services play a key role in the turnkey projects that Prysmian carries out through its Transmission business unit.

The table below shows expenditure on each of the macro-categories presented above:

Macro-categories 2025
Base metal 58%
Raw materials 16%
Indirect Materials and HV Installation 26%

Supply Chain and Vendor Management Strategy

The growing development of supply chain sustainability initiatives has made it necessary to draw up a specific strategy. The "Supply Chain and Vendor Management Strategy" document summarizes the main characteristics of Prysmian’s supply chain strategy and the actions taken to integrate ESG factors.

The document was updated in July 2025 and approved by the Procurement team, represented at senior level by the Chief Procurement Officer.

Suppliers' ESG performance is monitored through a comprehensive process aimed at ensuring the effectiveness of the measures taken, assessing their impact, and identifying possible areas for improvement. This is done via desk and risk analysis of suppliers and sustainability audits, both of which are carried out by third parties in order to ensure maximum objectivity. Prysmian also launched a new, innovative Supplier Engagement Program in 2024. This is designed to categorize suppliers, manage a comprehensive risk assessment questionnaire and formalize interactions through a new supplier engagement framework.

SUPPLY CHAIN AND VENDOR MANAGEMENT STRATEGY DOCUMENT

Supplier assessment and management

As provided for in the strategy, Prysmian carries out the following activities in assessing and managing suppliers:

  1. Supplier Desk & Risk Analysis: developed with the main aim of assessing the sustainability performance of core suppliers. Supplier analysis is formed of two components: the Desk segment, which assesses sustainability aspects based on environmental, social and governance criteria using public information provided by the suppliers themselves; and the Risk segment, which calibrates these results according to their relevance to the business and risk factors identified by Prysmian. Together, these two components make up the Desk & Risk Analysis, which assigns each supplier a potential level of sustainability risk and enables Prysmian to identify risk clusters and to plan targeted actions. Starting in 2022, an additional media analysis was integrated into the desk and risk analysis. This analysis is aimed at identifying actual or potential ESG irregularities documented by the media, regulators, and non-governmental organizations. The Desk& Risk Analysis is performed by a third-party partner of Prysmian, based on recognized standards for each pillar. The assessment of suppliers with potential ESG impacts covered 70% of the Group's expenditure in 2025.
  2. Sustainability audits and management of potential impacts: Based on the score assigned by the Desk & Risk Analysis, priority is given to suppliers exposed to the highest level of risk when planning sustainability audits.
ENTITY-SPECIFIC KPI UNIT OF MEASUREMENT 2025 2024
Annual number of suppliers included in desk and risk analysis Number 500 500
Annual number of sustainability audits in the supply chain Total number since the launch of the initiative (2017) 50 44

This metric refers to the number of total suppliers audited by third-party auditors since 2017. The methodology does not involve the use of significant estimates or assumptions.

Audits are carried out by an independent and accredited third-party entity.

In 2025 Prysmian paid specific attention to the issue of mica, increasing monitoring activities compared with 2024. In this context, an onsite sustainability audit was conducted at the main supplier of mica-based glass tapes (tier 1 in the value chain). The audit yielded a positive outcome.

At the same time, the Group has strengthened the Supplier Engagement Program, set up and launched the previous year. The goal of the Company’s efforts was to make supplier assessment and management processes more effective, with a special focus on various aspects of risk management, including ESG performance.