Environment and climate change

We want to contribute to the protection of the environment and the fight against climate change by decreasing the impact of our activities and promoting the green transition of our customers.

We are conscious of the need to protect the environment as a primary asset. To this end, we focus our decisions, including during the procurement process, on ensuring compatibility between financial initiatives and environmental protection in accordance with current legislation

We have adopted guidelines on the management of environmental, energy and climate change issues which represent an important tool for guiding all the Group’s activities to contain our environmental impact and formalize our commitment to stakeholders.

KEY FIGURES

as at December 2021

100%

energy from renewable sources (over 30,000 tons of CO2 equivalent avoided)

+ 93%

Green Bonds in the proprietary portfolio than in 2020

€ 900 million

funds disbursed from the Sustainable Investments Plafond

STRATEGY

The growing awareness of the role of the banking system in the climate and environmental challenge has profoundly influenced our actions and strategic vision.

In fact, we believe that a commitment to environmental protection and combating climate change is a fundamental element in creating long-term sustainable wealth for our stakeholders and for the areas where we operate.

With reference to direct environmental impact, we have long been committed to monitoring and managing consumption and reducing emissions to progressively reduce our environmental footprint and reach the goal of zero direct emissions by 2024.

In relation to the impacts that we indirectly produce in carrying out our financial intermediation activity, we intend to ensure more favourable access to capital for green activities or those that intend to undertake a transition process, and conversely, to adopt exclusionary policies and a selective approach towards sectors with a high environmental risk.

The Carbon Disclosure Project (CDP) gave us the rating A- (leadership) in December 2021, confirming that our strategy is guiding us on the right path.

LENDING POLICIES AND RISK MANAGEMENT

We are working towards a progressive integration of climate and environmental risks and opportunities within lending policies and the overall risk management framework.

Regarding risk management, the process of fully integrating climate factors into the Risk Appetite Framework (RAF) continued in 2021 to support corporate bodies in considering the impacts of ESG factors.

Regarding lending policies, the lending policy guidelines were greatly revised to further integrate ESG assessment parameters.

GREEN PRODUCTS AND SERVICES

We have developed a range of products and services to support our customers’ environmental initiatives.

The ‘2020-2023 Sustainable Investments’ ceiling of €5 billion is intended to support companies that want to embark on a path to sustainability.

Environmental sustainability is an increasingly important issue in housing choices. During 2021, in line with the principles of the EeMAP20 project, we developed a green mortgage offer aimed at raising awareness and providing incentives for energy saving and efficiency.

The real estate offer also includes products and services associated with the so-called 110% Superbonus.

During 2021, we have granted loans to support energy and structural improvement.

The offer is completed with other financing products, such as the Prestito Versatilo by Agos, aimed at those who allocate the financing to the purchase of eco-friendly goods or services.

DIRECT ENVIRONMENTAL MITIGATION

We want to grow by reducing the environmental impact of our activities. Every day, we are committed to developing solutions and processes that enable us to continually improve our environmental performance, involving employees and suppliers in the challenge.

We further consolidated our energy management activities by strengthening our Environmental and Energy Management Systems and we have confirmed our intention to continue to use only electricity entirely produced from certified renewable sources.

We take particular care in the choice of materials, especially the most frequently used ones such as paper and toner, and we are committed to reducing their consumption and avoiding waste.

OUR PROJECTS

The reduction of our environmental footprint is implemented daily through actions that affect both our direct and our indirect impacts.

TRAINING FOR EMPLOYEES

We believe that training on environmental issues is key enabler for effectively integrating sustainability into operations.

CARBON NEUTRALITY

With the 2021-2024 Strategic Plan, we have set ourselves the goal of achieving Carbon Neutrality by 2023, for direct CO2 emissions and indirect (scopes 1 and 2).

ENERGY MANAGEMENT AND CORPORATE MOBILITY

Implementing energy reduction and efficiency initiatives, Promotion of specific activities and definition of sustai¬nable mobility policies for staff travel.