Climate and environment
We are sensitive to the need to protect the environment and the issue of climate change, which is why we have set ourselves decarbonization objectives, and adopted a series of initiatives to reduce our consumption levels.
- Net Zero Banking Alliance
- 100% renewable electricity sources in Italy
- Reduction of direct emissions from 2019
In 2023 we published our second climate reporting based on the recommendations of the Task Force on Climate-Related Financial Disclosures (“TCFD”), based on four pillars – Governance, Strategy, Risk Management, and Metrics and Targets – to provide a full overview of the Group’s approach to the risks and opportunities deriving from climate-related issues. The report also contains the Group’s decarbonization objectives per sector (to 2030), in line with the requirements of the Net-Zero Banking Alliance, to which Mediobanca became a signatory in 2021.
By joining the Net Zero Banking Alliance (NZBA), we acknowledge our responsibility and bolster our willingness to contribute to the climate transition of the international banking sector.
The NZBA brings together banks that are committed to aligning their lending and investment portfolios with goals of achieving net zero emissions by 2050, in line with those set by the Paris Climate Agreement.
As a financial group, our commitment to environmental protection is focused on direct and indirect impacts. For both impact areas, specific objectives have been identified into the 2023-2026 “One Brand – One Culture”.
| ENVIRONMENT |
| OBJECTIVES TO 2026 | 30/06/24 | |
|---|---|---|
|
|
-35% financed emissions intensity (tCO2/M€) by 2030 (-18% by 2026)1 | -9.8% |
| All interim sector targets for NZBA | All NZBA sector targets set | |
| Carbon neutrality on own emissions2 | Carbon neutrality confirmed | |
| 100% renewable energy at Group level | 100% at Group level | |
| Phase-out from coal by 20303 | New ESG Policy broadening the perimeter to all lending portfolios | |
| Incorporating more "Climate & Environment" metrics into risk management processes such as RAF, ICAAP and Stress testing | Ongoing |
1. In the CIB loan book, excluding Specialty Finance, vs 01/01/2023 emissions intensity (tCO2/M€). Because of the possible volatility that could derive from the gradual inclusion of Scope 3 category 11 “Use of sold products” in counterparties’ disclosures, it has been decided to exclude this impact from the calculation of emissions financed for the scope being analysed. This decision has been made only for those sectors defined as “enabling” the energy transition by Regulation (EU) no. 2020/852 (the “Taxonomy Regulation”), so as not to penalize those counterparties that contribute to the climate change objectives. However, the exclusion has not been applied to the sectors covered by the Net-Zero Banking Alliance objective.
2. Includes Scope 1 and Scope 2 market-based emissions.
3. In CIB lending (excluding Specialty Finance) and proprietary investment portfolio in all markets.
NZBA 2030 and 2050 targets
As a member of the Net-Zero Banking Alliance, we have complied with all the requirements set, which include:
- issuing a set of scenario-based interim portfolio decarbonization targets for 2030 and 2050, for the most impacting economic sectors identified by the NZBA;
- integration of the progress made in this area into the Group’s strategy, by drawing up a Transition Plan for the first time;
- emissions and emissions intensity reporting on an annual basis, as confirmed by the Task Force on Climate-related Financial Disclosure Report (TCFD) which is published annually.
NZBA sectoral objectives
| TARGET VERSUS BASELINE | AUTOMOTIVE (2022) | POWER (2022) | AVIATION (2022) | CEMENT (2022) | IRON & STEEL (2023) | OIL & GAS* (2022)/(2023) | SHIPPING (2023) | CHEMICALS (2023) |
|---|---|---|---|---|---|---|---|---|
| SDA Method | gCO2e/vkm | tCO2e/MWH | tCO2e/pkm | tCO2e/ton | n.a. | gCO2e/MJ | n.a. | n.a. |
| 16% by 2025 | 24% by 2025 | 4% by 2025 | 11% by 2025 | 5% by 2025 | ||||
| 39% by 2030 | 53% by 2025 | 10% by 2030 | 25% by 2030 | 18% by 2030 | ||||
| Economic intensity method GEVA | tCO2e/$ (revenue) | |||||||
| Annual reduction rate updated for all sectors: 7.7% | ||||||||
*For the Oil and Gas sector, the baseline has been considered as 2022 for the SDA methodology (aligning it with the other sectors), and as 2023 for the GEVA methodology.
Although we do not have the same reach as some large commercial banks, we do have a significant national presence that requires us to seriously address the reduction of our consumption (water and paper) and the proper management and treatment of waste.