Strategy and objectives

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 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.

Combatting corruption

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

Protection of Human Rights

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

Environment and climate change

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

Diversity and inclusion

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

The Group ESG Policy 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.

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.

	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%)

SDG	AREA	OBJECTIVES TO 2023	30/06/2021
	Quality education	Training hours: up 25%, to enhance employees’ competences	Up 71% vs 30/6/19
	Gender diversity	Approx. 50% of female candidates to be considered for new hirings	Procedures to guarantee equal representation in staff selection and promotion processes (including specifications for head-hunters) now implemented
		All suitable female candidates to be considered for internal promotions
	Responsible investing	AM: 100% of new investments screened using ESG as well as financial criteria	98.8%
		40% of total affluent79 clients’ portfolios now invested in qualified ESG funds (SFDR Article 8/9)80	+33%
	Contributing to growth	€700m to be invested in outstanding Italian SMEs	€140m already invested
	Support to local community	€4m per year in projects with positive social/environmental impact	Approx. €7.3m in FY 2020-21
		MB Social Impact Fund: AUM increase ≥ 20%	AUM up 43% versus 30/6/19
	Sustainable procuremen	40% of procurement expenses screened using ESG criteriat	40% of procurement expenses screened using ESG criteria81
	Clients	Customer satisfaction: CheBanca! CSI for premier segments82 @75, NPS @3083 Compass: CSI @85, NPS @6584	CSI @81, NPS @43 CSI @88.5 NPS @62
	Reducing direct impact on environment	94%85 energy from renewable sources	94% energy from renewable sources
		27%86 reduction in CO2 emissions	CO2 emissions down 15%
		Hybrid cars @90% of the Mediobanca Group’s float in Italy	28% of hybrid cars
	Supporting transition to clean energy	Green bond issued: €500m	First Mediobanca green bond issued (1/9/2020)
		RAM: carbon neutral to be issued	RAM Stable Climate Global Equities carbon neutral fund issued
		CheBanca! green mortgages up 50%	CheBanca! green mortgages >5X vs FY20

<sup>79. Affluent segment: deposits between €50,000 and €500,000
80. Target revised upwards from the original (30% of client portfolios to consist of ESG products) which was comfortably achieved, even following the introduction of the SFDR obligations
81. Suppliers that have completed the CSR section of the form contained in the Group’s List of Suppliers. This involves merely recording information which does not affect the choice of supplier when decisions are made regarding them
82. Premier, i.e. clients in the affluent (with deposits of between €100,000 and €500,000) and the Wealth Management segment (deposits >€500,000)
83. CSI and NPS revised upwards versus original targets: CSI (Customer Satisfaction Index) @73, NPS (Net Promoter Score) @25
84. NPS revised upwards versus original target: NPS @55
85. Target adjusted from the original (92%)
86. For Scope 1 + Scope 2 Market-based, named users. Target adjusted from the original (15%)</sup>