Alignment with the Net-Zero Banking Framework

Established in 2021 as a United Nations initiative, the Net-Zero Banking Alliance (NZBA) aimed to accelerate the sustainable transition and contribute to climate change mitigation through the involvement of the banking sector. In October 2025, the initiative was officially discontinued and evolved into the Net-Zero Banking Framework.

The Framework provides guidance to banks on aligning their loan and investment portfolios with the objective of achieving net zero emissions by 2050, in line with the Paris Agreement and the European Green Deal, setting science-based intermediate targets for 2030 and reporting on the progress achieved.

Banco BPM decided to join the NZBA in March 2023. Following detailed analyses and assessments, it identified five priority sectors that account for more than two-thirds of the financed emissions considered material to its Net-Zero pathway and which, also on the basis of the most recent data, remain the most relevant sectors for contributing to climate change mitigation:

• Oil & Gas;
• Power generation;
• Cement;
• Automotive;
• Coal.

In August 2024, Banco BPM published its intermediate decarbonisation targets for 2030 for these 5 most emissive sectors, and the related transition plans in May 2025.
In particular, for sectors directly related to coal, Banco BPM completed its run-off strategy as at 31 December 2025, achieving the Strategic Plan objective one year ahead of schedule.

The Transition Plans outline the short-term actions already in place and the medium-long-term actions that may need to be implemented to achieve the targets.
For further information, please see our Net-Zero Transition Plans.