Climate Change Data

Environmental Metrics

ESG Focus Areas

• Financial Inclusion
• Support for Production
• Employee Development
• Environmental Sustainability
• Community Engagement

Environmental Achievements

• Reduced CO2 emissions by over 165,000 metric tonnes through renewable energy sourcing and energy efficiency measures.
• Achieved 95% renewable energy share in Italy.
• Reduced overall electricity consumption in Italy by 6.8%.
• 85% of internal paper use in Italy is low environmental impact.
• Loans to customers for investments in renewable energies, agriculture and environmental protection totalled around 3 billion euro.

Social Achievements

• Continued "Household Plan" initiative, suspending mortgage repayments for over 11,400 mortgages.
• Launched new initiatives for financial inclusion of young people and immigrants.
• Implemented professional enhancement initiatives for employees.
• Maintained social cohesion and sought sustainable solutions with Trade Unions.
• Disbursed over 17.7 million euro in donations.

Governance Achievements

• Adopted the dual management and control model (Supervisory Board and Management Board).
• Implemented a robust internal control system.
• Received 187 reports of non-compliance with the Code of Ethics.

Climate Goals & Targets

Environmental Challenges

• Difficult economic environment negatively affecting banking activity.
• High unemployment rates, weak investments and consumption in Italy.
• Climate change impacts such as natural disasters.
• Downgrading of creditworthiness of a significant portion of the production system.

Mitigation Strategies

• Launched numerous initiatives to support households and businesses.
• Developed synergies and new consultancy areas to facilitate credit.
• Improved organisational flexibility to meet customer demands.
• Implemented social and environmental risk assessment in management processes.
• Continued investments in community projects.

Supply Chain Management

Supplier Audits: 850 supplier verifications on social and environmental criteria

Responsible Procurement

• Introduction of environmental and social criteria in supplier selection.
• Verification of supplier statements through sample monitoring.

Climate-Related Risks & Opportunities

Physical Risks

• Natural disasters

Transition Risks

• Downgrading of creditworthiness of businesses

Opportunities

• Investments in renewable energy and energy efficiency.

Reporting Standards

Frameworks Used: GRI 3, Financial Services Sector Supplements

Certifications: UNI CEI EN ISO 50001

Third-party Assurance: KPMG S.p.A.

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Ecological Loan
• Finanziamento Energie Rinnovabili
• Leasenergy 20-200

Awards & Recognition

• Diversity & Inclusion Award - Diversitalavoro
• HR Innovation Award from Milan Polytechnic
• AIFIn “Cerchio d’Oro Award for Financial Innovation”

Environmental Metrics

ESG Focus Areas

• Climate Change
• Social Inclusion
• Governance
• Circular Economy
• Sustainable Investments

Environmental Achievements

• Reduced Scope1 + Scope2 Market-based greenhouse gas emissions by 6% compared to 2021.
• Achieved 91% renewable energy share of total electricity purchased (88% in 2021).
• Reduced waste produced by 21% compared to 2021.
• Reduced paper consumption by 24% compared to 2021.

Social Achievements

• Disbursed approximately €9 billion in social lending, a 30% increase compared to 2021.
• Disbursed €339 million in loans to non-profit organizations.
• Allocated €53 million from the Fund for Impact to support families and individuals.
• Launched the “Giovani e Lavoro” program, training and placing young people in the Italian job market.
• Provided €80 million in extraordinary economic contributions to mitigate inflation's impact on employees.

Governance Achievements

• Renamed the Risks Committee to the Risks and Sustainability Committee, strengthening its responsibilities.
• Included ESG KPI in the incentive system for the CEO and approximately 3,000 managers (15% weighting).
• Obtained renewal of the UNI ISO 37001:2016 Anti-bribery management systems certification.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions and increased emissions due to the Russia-Ukraine conflict and energy price volatility.
• Managing ESG risks in loans and investments.
• Maintaining high service quality and customer satisfaction in a changing market.

Mitigation Strategies

• Developed alternative sourcing strategies.
• Integrated ESG factors into investment and credit processes.
• Implemented initiatives to enhance customer service and address complaints.
• Invested in technology and digital transformation to improve efficiency and customer experience.

Supply Chain Management

Supplier Audits: 60 audits in 2022 (44 in 2021)

Responsible Procurement

• Green Banking Procurement rules

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (floods, landslides, etc.)
• Increase/decrease in average temperatures
• Sea level rise
• Water stress and drought

Transition Risks

• Changes in public policies
• Technological changes
• Changes in customer preferences
• Changes in environmental regulations

Opportunities

• Energy transition support through funding
• Development of energy-efficient products and services
• Investment in renewable energy

Reporting Standards

Frameworks Used: GRI, TCFD, PRB, UNGC, PRI, SASB, WEF Stakeholder Capitalism Metrics

Certifications: UNI ISO 37001:2016, ISO 45001, LEED Platinum

UN Sustainable Development Goals

• Goal 1
• Goal 2
• Goal 3
• Goal 4
• Goal 5
• Goal 7
• Goal 8
• Goal 9
• Goal 10
• Goal 11
• Goal 12
• Goal 13
• Goal 17

Intesa Sanpaolo's initiatives contribute to these goals through various programs and activities detailed in the report.

Sustainable Products & Innovation

• Green Mortgages
• S-Loan (ESG-linked loans for SMEs)
• Sustainable investment products

Awards & Recognition

• Best European bank in terms of relations with financial analysts and institutional investors (Institutional Investor 2022)
• Bank of the Year in Italy (The Banker)
• First among banking groups in the Eurozone in Newsweek and Statista’s World’s Most Socially Responsible Banks 2022
• First in Corporate Knights’ 2023 Sustainable Banking Revenues Ranking
• Second in Europe in As You Sow and Corporate Knights’ 2023 Clean 200TM
• Second place in ESG Reporting Awards 2022
• Sustainable Finance Awards 2022 (Global Finance)
• Innovative Financial Institution for 2022 (AIFIn)
• MF Innovazione Award 2022 (Milano Finanza)
• First among European banks in Lundquist-Comprend Webranking Europe 2022
• Top Employer Italia 2023 (Top Employers Institute)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Financial Inclusion
• Community Support
• Diversity & Inclusion
• Transition to a Sustainable, Green and Circular Economy

Environmental Achievements

• Scope1 + Scope2 Market-based greenhouse gas emissions decreased by 9% compared to 2022.
• Renewable electricity purchases came to around 90% of total electricity purchases, with a goal of achieving 100% by the end of 2030.
• ~1.7 billion euro disbursed in Green Mortgages in 2023.
• ~5.6 billion euro disbursed in 2023 for circular economy projects (4.7 billion euro related to green criteria).

Social Achievements

• 5.5 billion euro disbursed in social lending and urban regeneration in 2023.
• ~252 million euro in loans disbursed in 2023 to support non-profit organizations.
• ~71 million euro provided in 2023 as part of the Fund for Impact to directly support families and individuals.
• Intesa Sanpaolo People satisfaction index reached 84% in 2023.
• Launched Think Forestry project with the goal of planting and preserving 100 million trees.

Governance Achievements

• Updated Group Anti-Corruption Guidelines approved by the Board of Directors.
• Completed the first of two scheduled audits for maintaining the UNI ISO 37001:2016 Anti-bribery management systems certification.
• ESG KPI assigned in 2023 scorecards to the CEO and approximately 3,000 Group managers.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions
• Inflation
• Climate-related risks (transition and physical risks)
• ESG risks in loans and investments
• Reputational risks

Mitigation Strategies

• Developed alternative sourcing strategies
• Implemented cost-cutting measures
• Integrated ESG factors into risk management framework
• Developed ESG-linked loans and investments
• Proactive risk management and stakeholder engagement

Supply Chain Management

Supplier Audits: 115 self-assessment questionnaires and 12 on-site inspections

Responsible Procurement

• Supplier sustainability requirements
• Compliance with data protection policies

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Sea level rise
• Flooding
• Drought
• Fires

Transition Risks

• Changes in environmental regulations
• Increase in energy costs
• Shifting consumer preferences

Opportunities

• Development of energy-efficient products and services
• Growth in green finance

Reporting Standards

Frameworks Used: GRI Standards, TCFD (now Climate Report), Principles for Responsible Banking (PRB), EU Taxonomy

Certifications: UNI ISO 37001:2016, ISO 45001, ISO 14001, ISO 50001, LEED Platinum

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 1
• Goal 2
• Goal 3
• Goal 4
• Goal 5
• Goal 6
• Goal 7
• Goal 8
• Goal 9
• Goal 10
• Goal 11
• Goal 12
• Goal 13
• Goal 17

Intesa Sanpaolo's initiatives contribute to these goals through various programs and activities.

Sustainable Products & Innovation

• Green Mortgages
• ESG-linked loans
• Sustainable investment products

Awards & Recognition

• Corporate Knights 2024 ‘’Global 100 Most Sustainable Corporations in the World’’ index
• CDP’s Leadership level
• Bloomberg Gender-Equality Index
• Refinitiv Global Diversity and Inclusion Index 2023
• Forrester’s “Global Mobile Banking Apps Leader” and “Global Digital Experience Leader”

Environmental Metrics

ESG Focus Areas

• climate change
• social impact
• governance

Environmental Achievements

• Launched "Think Forestry" project for reforestation and preservation of natural capital with 7 initiatives completed in the first half of 2024.
• Disbursed around 1.8 billion euro in Green Mortgages to retail customers (6.7 billion euro in the period 2022-first half of 2024).
• Granted 3.5 billion euro in 88 transactions under the 8 billion euro circular economy credit lines (over 2.1 billion euro related to green criteria).

Social Achievements

• Allocated 1.5 billion euro over five years (2023-2027) to support initiatives addressing social needs, including social lending and social housing.
• Carried out over 41.8 million interventions in 2022 and the first half of 2024 to fight poverty, including meals, shelter, medicine, and clothing.
• Trained over 600 young people through the "Giovani e Lavoro" program in the first half of 2024 (over 4,500 since 2019).

Governance Achievements

• Established the Chief Sustainability Officer Governance Area in April 2024 to steer the Group’s sustainable development strategies.
• Transformed the Risks Committee into the Risks and Sustainability Committee with more ESG responsibilities.
• Received numerous sustainability-related awards, including ESG Industry Top Rated and ESG Regional Top Rated in 2024 by Sustainalytics.

Climate Goals & Targets

Environmental Challenges

• Continued military conflict between Russia and Ukraine impacting operations in those countries and creating geopolitical risks.
• Decreased demand for loans from businesses due to lower investment and higher interest rates.
• Market volatility impacting financial insurance liabilities.

Mitigation Strategies

• Maintained internal controls and close monitoring of credit risk, particularly in energy-intensive industries.
• Close monitoring of sanctions imposed on Russia to ensure regulatory compliance.
• Scenario analyses and stress tests to assess potential impacts on profitability and capital adequacy.
• De-risking initiatives to reduce exposures to Russian and Ukrainian counterparties.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, TCFD, UNGC, World Economic Forum's Stakeholder Capitalism Metrics, EU Taxonomy

Certifications: GEEIS – Diversity Certification, “Prassi di Riferimento (PDR) 125:2022” certification for gender equality

UN Sustainable Development Goals

• Not disclosed

Sustainable Products & Innovation

• Green Mortgages
• S-Loans (ESG, CER, Diversity)
• Green Dedicated S-Loan in VUB

Awards & Recognition

• Dow Jones Sustainability Indices (World and Europe)
• Corporate Knights 2024 “Global 100 Most Sustainable Corporations in the World”
• CDP's Leadership level
• Bloomberg Gender-Equality Index
• Refinitiv Global Diversity and Inclusion Index
• ESG Industry Top Rated and ESG Regional Top Rated in 2024 by Sustainalytics
• S&P Global Sustainability Yearbook
• Institutional Investor ranking as the number-one bank in Europe for ESG aspects in 2023
• Top Employer 2024
• LinkedIn Top Companies 2024
• Global ESG Corporate Award ranking, Best Company for Diversity Equity & Inclusion