Strategic Plan ESG targets

For some years now we have adopted a business strategy in which social and environmental sustainability play an integral part, identifying a series of cross-divisional actions to help contribute to a more sustainable future in terms of reducing impacts on the environment, raising awareness of inclusion and diversity, and providing support to the community.

The commitments made by the Group have been expressed as a series of qualitative and quantitative targets, measurable over time, including in the Strategic Plan guidelines and the Group staff remuneration and evaluation policies, for the entire corporate population and for senior management in particular.

The targets identified, which serve to ensure that Environmental, Social and Governance (ESG) are firmly integrated into the Group’s strategy, involve all three of the main sustainability areas.

• Environmental
  The Group is committed to achieving carbon neutrality by 2050 as part of its membership of the Net-Zero Banking Alliance (NZBA), and has set an interim target of a 35% reduction in financed emissions intensity for the CIB loan book by 2030 (a reduction of 18% over the time horizon covered by the Strategic Plan). The Group expects to exit the coal industry entirely in 2030.
  As further proof of our commitment to address climate change, we also intend to continue to reduce our direct impact on the environment, confirming our stance of using electricity 100% obtained from renewable sources, and maintaining carbon neutrality versus our own emissions.
  In addition to the above actions, climate and environmental factors will also be integrated increasingly into our risk management, lending and investment processes.
• Social
  We want to make a positive contribution to social change by promoting a corporate culture based on diversity and inclusion. Our targets are to ensure that 30% of our Key Function Holders, 20% of our executives and 50% of our total hires are women, and to guarantee gender parity in our career advance rates. We will provide over €20m in support for projects with social and environmental impacts. Our aim is that at suppliers responsible for at least 70% of the Group’s spending will be screened using ESG criteria.
• Governance
  With the objective of aligning the Mediobanca Group senior management’s remuneration with measurement of the long-term performance on which the 2023-26 Strategic Plan is based, a Long Term Incentive Plan 2023-26 has been introduced, with a 50% weighting of the total variable compensation (vs 20% previously) for the Group CEO and Group General Manager, and the same instrument being extended to include other selected Group figures as well considered to be strategic for the achievement of the objectives set. Payment will be entirely in equity, across a long-term time horizon. Some 20% of the objectives set are ESG-related, focused on Climate Change and Diversity and Inclusion indicators.
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  Our desire to invest in our people and engage them directly in achieving the 2023-26 Strategic Plan objectives has been given concrete form in the launch of the first Employee Share Ownership and Coinvestment scheme for Group staff members.
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The Strategic Plan objectives will also be pursued by offering solutions, products and advisory services to support clients in the transition to a sustainable economy, with a broad ESG product offering differentiated by business line.

We are also running training and awareness-raising activities to promote an increased awareness of ESG issues both within and outside of the Group.