Case study: How Prysmian creates economic value for its stakeholders
With a direct presence in more than 50 countries around the world, 108 plants, 26 R&D centres and over 30,000 employees, Prysmian is a global leader in the energy and telecommunications cable systems industry. Creating long-term value for all its stakeholders, is an essential element of Prysmian’s Sustainability Strategy. Tweet This!
This case study is based on the 2022 Sustainability Report by Prysmian, prepared in accordance with the GRI Standards, that can be found at this link. Through all case studies we aim to demonstrate what CSR/ ESG/ sustainability reporting done responsibly means. Essentially, it means: a) identifying a company’s most important impacts on the environment, economy and society, and b) measuring, managing and changing.
Abstract
In 2022, the total economic value generated, namely the overall wealth created by Prysmian for its stakeholders, reached €16,719 million. In order to create economic value for its stakeholders Prysmian took action to:
- create economic value for employees
- create economic value for suppliers
- create economic value for lenders
- create economic value for the public administration
- create economic value for the community
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With this case study you will see:
- Which are the most important impacts (material issues) Prysmian has identified;
- How Prysmian proceeded with stakeholder engagement, and
- What actions were taken by Prysmian to create economic value for its stakeholders
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What are the material issues the company has identified?
In its 2022 Sustainability Report Prysmian identified a range of material issues, such as governance, ethics and integrity, efficient, sustainable and circular operations, enabling the decarbonisation to Net-Zero and digitalization, human capital’s well-being, engagement & upskilling. Among these, creating economic value for its stakeholders stands out as a key material issue for Prysmian.
Stakeholder engagement in accordance with the GRI Standards
The Global Reporting Initiative (GRI) defines the Principle of Stakeholder Inclusiveness when identifying material issues (or a company’s most important impacts) as follows:
Stakeholders must be consulted in the process of identifying a company’s most important impacts and their reasonable expectations and interests must be taken into account. This is an important cornerstone for CSR / sustainability reporting done responsibly.
Key stakeholder groups Prysmian engages with:
| Stakeholder Group | Method of engagement |
| Customers
| · Customer satisfaction survey · Cable App & Customer Portal |
| Shareholders
| · Long-term and sustainable value creation · Shareholders’ meetings and participation |
| Suppliers
| · ESG evaluation of suppliers base · Sustainability audits · CDP partnership (Carbon Disclosure Project) |
| Schools, Universities & Research Centres | · PG’s Academy · Local mentoring programmes for 500 students |
| People
| · Internal projects of upskilling mobility and workforce development · Health & Safety focus |
| Media
| · Press conferences, press releases and media interviews · Results announcements, annual and interim reports, corporate website and social media · Media enquiries |
| Local Communities
| · Construction of nursery/school projects · Donation of cables to improve local development |
How stakeholder engagement was made to identify material issues
To identify and prioritise material topics Prysmian engaged with its stakeholders through surveys and interviews.
What actions were taken by Prysmian to create economic value for its stakeholders?
In its 2022 Sustainability Report Prysmian reports that it took the following actions for creating economic value for its stakeholders:
- Creating economic value for employees
- In 2022, 10.85% of Euro 16,211 million generated by Prysmian was payment to staff.
- Creating economic value for suppliers
- In 2022, 80.89% of Euro 16,211 million generated by Prysmian was paid to suppliers.
- Creating economic value for lenders
- In 2022, 6.83% of Euro 16,211 million generated by Prysmian was paid to lenders.
- Creating economic value for the public administration
- In 2022, 1.42% of Euro 16,211 million generated by Prysmian was paid to the public administration.
- Creating economic value for the community
- In 2022, 0.01% of Euro 16,211 million generated by Prysmian was contributions to the community.
Which GRI Standards and corresponding Sustainable Development Goals (SDGs) have been addressed?
The GRI Standard addressed in this case is: Disclosure 201-1 Direct economic value generated and distributed
Disclosure 201-1 Direct economic value generated and distributed corresponds to:
- Sustainable Development Goal (SDG) 8: Decent Work and Economic Growth
- Targets: 8.1, 8.2
- Sustainable Development Goal (SDG) 9: Industry, Innovation and Infrastructure
- Targets: 9.1, 9.4, 9.5
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References:
This case study is based on published information by Prysmian, located at the link below. For the sake of readability, we did not use brackets or ellipses. However, we made sure that the extra or missing words did not change the report’s meaning. If you would like to quote these written sources from the original please revert to the following link:
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