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 2019-2023 strategic plan first and than into 2023-2026 strategic plan.

ESG OBJECTIVES - ENVIRONMENT

  • Net Zero financed emissions by 2050
    • 35% financed emissions intensity by 2030 (-18% by 2026))
    • Interim sector targets for Net Zero Banking Alliance released by 20241
  • Phase-out from coal by 20302
  • Carbon neutrality on own emissions3
  • 100% renewable electricity at Group leve
  • Incorporating more “Climate & Environment” metrics into risk management processes such as RAF, ICAAP and Stress testing
  • At least 2 Sustainability bond issues

1) No exposure to coal mining and agriculture. Four sector targets published by September 2023 (Automotive and Power already published; Cement and Aviation will be added). The remaining NZBA sectors will be disclosed by September 2024
2) In CIB lending (excluding Specialty Finance) and proprietary investment portfolio in all markets
3 Includes Scope 1 and Scope 2 emissions, market-based.

Reducing indirect impacts 

Targets to 2023

  • Issue of a €500bn green bond;
  • Issue of a carbon neutral fund (RAM);
  • +50% of 'green' mortgages by CheBanca!

Initiatives
Joining the Net Zero Bank Alliance, projects supporting energy transition and issuing new financial instruments in the ESG area.

 

NZBA targets for 2030 and 2050

Sector Target metric Baseline
2022		 Intermediate
target 2030		 Net zero
target		 Net zero
target year
Power tCO2 /MWH 0.34 0.16 0 2040
Automotive gCO2/KM 139 85 0 2050
Cement tCO2 /tonn cenment 0.66 0.50 0 2050
Aviation tCO2 /pkm 94 84 0 2050

As a member of the Net-Zero Banking Alliance, Mediobanca has set Sectoral Decarbonization Approach (SDA) targets for the Cement, Aviation, Automotive and Power industries with reference to its loan books and proprietary investment portfolios for the entire Group.

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.

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