The Index measures success at integrating environmental and social factors in corporate strategy.
Prysmian Group has been recognized as one of Italy’s best companies in terms of successfully integrating its own sustainability goals into its governance model, winning a place on the Integrated Governance Index for the first time since the index began four years ago.
Integrated Governance is a model developed in 2014 by the United Nations Environment Programme Finance Initiative (UNEP FI) that puts sustainability at the heart of a company’s governance and corporate board’s strategic agenda, and gives importance to how company managers integrate these issues in a way that creates long-term value for stakeholders.
The Integrated Governance Index, developed by ETicaNews in collaboration with Top Legal, measures how closely the Environmental, Social and Governance (ESG) criteria are integrated into corporate strategies.
ESG criteria are a set of non-financial standards for a company’s operations that socially conscious investors use to screen potential investments.
The 2019 Integrated Governance Index results were presented at the ESG Business Conference in Milan on June 13.
The growing interest in ESG factors, which is spreading from the board room to corporate functions of Finance, Human Resources and Compliance, makes the Milan conference an important chance to bring together investors interested in sustainability to network with corporate executives.
At the conference, Prysmian Group Corporate and Business Communications Director Lorenzo Caruso explained how the company created a sustainability policy in 2017 with five main goals to be achieved in 2020. After that, it transformed these goals into a set of Key Performance Indicators to measure its actual progress towards achieving these goals. The Group then created a 16-point “Scorecard” to monitor its own progress towards its targets each year. A portion of several hundred managers’ variable remuneration is linked also to sustainability targets.
In 2018, Prysmian was ahead of its own schedule to achieve several environmental and human resources goals.
“In 2019, Prysmian Group will involve both internal and external stakeholders by organizing a stakeholder engagement event on sustainability goals” Caruso said at the conference.
The Sustainability Scorecard is now being updated and revised taking into account the merger with General Cable and to align it with the development of current strategic plans and investments, Caruso said.