Strategies, policies, objectives and results

Driven by the desire to pursue responsible development of our business, we have defined an integrated strategy able to combine business growth and financial solidity with the principles of social and environmental sustainability, creating long-term value.

Sustainable growth, enhancement of human capital, reduction of direct and indirect environmental impacts and attention to social issues are the four areas of responsibility in which we have incorporated targets and projects for the responsible development of the group and our stakeholders.

In order to effectively incorporate the four strategic areas in all our activities, we have employed specific group policies.

The Group Sustainability Policy

The Group Sustainability Policy was created with the objective of governing our direct impacts, by identifying the roles, responsibilities and priority sustainability issues. Based on the 10 principles of the Global Compact, the Policy applies to all group companies, by integrating with all other guidelines, procedures, directives and provisions connected with the areas identified.

The priority themes of the Policy

We are committed to carrying out our activities in compliance with the highest ethical standards and we do not tolerate acts of active or passive corruption

We protect and promote Human Rights in conducting our business activities and in managing relations with stakeholders

Our choices are based on guaranteeing compatibility between economic initiative and environmental requirements.

We believe in the importance of developing the various prospects and experiences through an inclusive culture

Group Policy on Responsible Lending and Investing

The Group Policy on Responsible Lending and Investing was drafted with the objective of effectively managing our indirect socio-environmental impacts, thanks to the integration of environmental, social and governance (ESG) criteria in our financing, investing and advisory model.

Objectives strategic plan 2019-23

As proof of our commitment to integrating sustainability in the group’s business and financial strategies, we have included some quantitative sustainability targets in the strategic plan.

The targets have also been defined with the objective of contributing to the attainment of 6 of the 17 Sustainable Development Goals for the generation of positive change at global level.

	Sustainable growth
	Responsible investing 100% of new investments selected on the basis of both ESG and financial criteria +30% of ESG products in customers’ portfolios Contribution to economic growth Investments of €700 million in small and medium Italian companies Suppliers 40% of expenses relating to suppliers valued according to ESG criteria Customers Customer satisfaction: CheBanca! CSI1 core2 segments; @73, NPS1 @25 Compass: CSI @85, NPS @55

Sustainable growth

Responsible investing
100% of new investments selected on the basis of both ESG and financial criteria
+30% of ESG products in customers’ portfolios
Contribution to economic growth
Investments of €700 million in small and medium Italian companies
Suppliers
40% of expenses relating to suppliers valued according to ESG criteria
Customers
Customer satisfaction: CheBanca! CSI1 core2 segments; @73, NPS1 @25 Compass: CSI @85, NPS @55

	Development of human capital
	Equal opportunities Roughly 50% of candidates for new positions are women All women suited to the role must be considered for internal promotions Training Average hours of training +25% for the enhancement of employee skills

Development of human capital

Equal opportunities
Roughly 50% of candidates for new positions are women
All women suited to the role must be considered for internal promotions
Training
Average hours of training +25% for the enhancement of employee skills

	Attention to social issues
	Support to the local community €4 million earmarked for projects with a positive social/environmental impact Mediobanca Social Impact Fund: increase in AUM ≥ 20%

	Reduction in direct and indirect environmental impacts
	Reduction of direct environmental impact Energy: 94¹% from renewable resources and CO2 emissions down by 27²% Hybrid cars that cover 90% of the Mediobanca fleet Support to the energy transition Issuing of «ESG bonds»: €500 million RAM: issuing of a «carbon neutral» fund CheBanca! «green» mortgages + 50% ^{1. Target adjusted from the original (92%) 2. For Scope 1 + Scope 2 Market-based, named users. Target adjusted from the original (15%)}

Reduction in direct and indirect environmental impacts

Reduction of direct environmental impact
Energy: 94¹% from renewable resources and CO2 emissions down by 27²%
Hybrid cars that cover 90% of the Mediobanca fleet
Support to the energy transition
Issuing of «ESG bonds»: €500 million
RAM: issuing of a «carbon neutral» fund
CheBanca! «green» mortgages + 50%

^{1. Target adjusted from the original (92%)

2. For Scope 1 + Scope 2 Market-based, named users. Target adjusted from the original (15%)}

FY20 non-financial performance

New Corporate Social Responsibility Committee at BoD level in addition to the Group Sustainability Management Committee
CSR objectives included in the LTI scheme as well as in BPlan23
Group Sustainability Policy update
New Group Policy on Responsible Lending and Investing
Materiality Matrix update

	Employee competences enhanced with avg. training hours up 95% YoY (BPTarget23: 25%) in part to deal with Covid-19 emergency
	Procedure adopted to reach targets for equal opportunities, including specification in head-hunter mandates
	AM: procedure started to include ESG criteria in investment evaluation (BPTarget23: 100% of new investments) €100m investments in outstanding Italian SMEs (BPtarget23: €700m) ESG qualified products in clients’ portfolio up 20% (BPtarget23: up 30%)
	€5.4m in FY20 for social/environmental proj. (BPtarget: €4m per year) B Social Impact Fund: AUM up 29% (BPtarget23: up 20%)
	ESG bond issue: green and sustainable framework approved (BPtarget23: €500m) 36% of procurement exp. assessed with CSR criteria (BPtarget23: 40%) Customer satisfaction: CheBanca! CSI¹ in core segment² @74, NPS¹ @28 (BPtarget23: 73 and 25)
	Energy: 93% from renewables (BPTarget23: lifted to 94%), CO2 down 6% (BPTarget23: revised to down 27%); hybrid cars: 13% (BPTarget23 : @90% of MB fleet) RAM Stable Climate Global Equities issued