Climate Change Data

Environmental Metrics

ESG Focus Areas

• Corruption
• Human Rights
• Diversity and Inclusion
• Climate Change and the Environment
• Responsible Business
• Sustainable Products
• Financial Inclusion

Environmental Achievements

• Achieved carbon neutrality (Scope 1 and 2) for the second consecutive year by offsetting CO2 emissions.
• Increased use of renewable energy sources in Italian and international offices.
• Disbursed €120m in financing for environmental sustainability purposes (Compass).

Social Achievements

• Launched "toDEI" project to promote Diversity, Equity, and Inclusion.
• Increased staff training hours to 157,425.
• Contributions to the community exceeded €7.6m.

Governance Achievements

• Established a Corporate Social Responsibility (CSR) Committee.
• Implemented a structured reporting process for non-financial information.
• Adhered to the Principles for Responsible Banking (PRB).

Climate Goals & Targets

Environmental Challenges

• Managing risks related to climate change (physical and transition risks).
• Maintaining effective communication with financial stakeholders on sustainability.
• Ensuring effectiveness of Diversity & Inclusion programs.
• Addressing inadequate trade union relations.
• Managing risks associated with the supply chain, particularly regarding ESG criteria.

Mitigation Strategies

• Integrated climate risk into risk management processes.
• Included ESG objectives in management incentive plans.
• Launched "toDEI" project with quantitative objectives.
• Implemented a structured process for qualifying and monitoring suppliers.
• Launched an ESG assessment of suppliers with Cerved Rating Agency.

Supply Chain Management

Supplier Audits: 18% of 200 suppliers ESG-rated (Cerved)

Responsible Procurement

• Supplier qualification guidelines
• ESG self-assessment questionnaire

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Changes in public policies and regulations

Opportunities

• Development of energy-efficient products and services

Reporting Standards

Frameworks Used: GRI Standards, SASB, TCFD, EU Taxonomy, UNEP FI – Principles for Responsible Banking

Certifications: EGEO (CMB Monaco)

Third-party Assurance: EY S.p.A. (limited review)

UN Sustainable Development Goals

• SDG 4
• SDG 5
• SDG 8
• SDG 11
• SDG 12
• SDG 13

Targets set within the 2019-23 Strategic Plan to contribute to these goals.

Sustainable Products & Innovation

• Green mortgages
• ESG funds
• Loans for hybrid/electric vehicles
• Loans for energy-efficient products

Awards & Recognition

• Bloomberg Gender-Equality Index
• Financecommunity Awards
• Private Banking Awards
• Best Private Bank for HNWI in Monaco
• Ecovadis Gold Rating

Environmental Metrics

ESG Focus Areas

• Corruption
• Human Rights
• Diversity and Inclusion
• Climate Change and the Environment
• Sustainable Finance

Environmental Achievements

• Achieved carbon neutrality (Scope 1 and 2) by offsetting CO2 emissions.
• Reduced electricity consumption by 68 MWh through LED lighting.
• 100% of electricity from renewable sources for named users.

Social Achievements

• Launched the "toDEI" project to promote diversity, equity, and inclusion.
• Adopted the Mediobanca Group Diversity, Equity and Inclusion Code.
• Donated over €6.5m to community projects.

Governance Achievements

• Implemented a Tax Control Framework.
• Updated the Organizational Model pursuant to Italian Legislative Decree 231/01.
• Updated Code of Ethics and Code of Conduct.

Climate Goals & Targets

Environmental Challenges

• Inadequate management of energy resources, raw materials, and waste.
• Lack of, or inadequate, policies for attracting talent.
• Ineffective communication to financial stakeholders on sustainability.
• Non-compliance by business partners and suppliers with ESG standards.

Mitigation Strategies

• Implemented initiatives to minimize energy consumption and improve waste management.
• Launched talent programs and employer branding campaigns.
• Improved ESG data tracking and ownership system.
• Included an ESG self-assessment questionnaire in the supplier selection process.

Supply Chain Management

Supplier Audits: 60 suppliers assessed (28% of total, 4% of turnover)

Responsible Procurement

• Supplier qualification guidelines
• ESG self-assessment questionnaire
• Compliance with labor standards and Code of Ethics

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Gradual climate changes

Transition Risks

• Changes in public policies
• Environmental regulations
• Technology shifts
• Consumer preferences

Opportunities

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

Reporting Standards

Frameworks Used: GRI Standards, SASB, TCFD, UN Global Compact, Principles for Responsible Banking (PRB), EU Taxonomy

Certifications: UNI CEI EN ISO 50001:2018, UNI EN ISO 14064:2019, UNI EN ISO 14001:2015, UNI/PdR 125:2022 (MBCredit Solutions)

Third-party Assurance: EY S.p.A. (limited review)

UN Sustainable Development Goals

• Goal 4 (Quality Education)
• Goal 5 (Gender Equality)
• Goal 8 (Decent Work and Economic Growth)
• Goal 13 (Climate Action)

Initiatives contributing to these goals are described throughout the report.

Sustainable Products & Innovation

• Green loans
• Green mortgages
• ESG-labeled bonds
• SFDR Article 8/9 funds

Awards & Recognition

• MF Banking Awards 2023 (Best Investment Bank, MF Innovation Award)
• Private Banking Awards (Excellence in Private Markets, Club Deal)
• Bloomberg Gender-Equality Index
• Diversity Equity & Inclusion Award
• Bollino Rosa (Fondazione Onda)

Environmental Metrics

ESG Focus Areas

• Ethics and integrity in business
• Capital solidity and profitability
• Diversity, equity and inclusion
• Staff health, safety and well-being
• Client satisfaction and quality of service
• Environmental protection and focus on climate change
• Responsible supply chain management
• Sustainable finance

Environmental Achievements

• Achieved carbon neutrality (Scope 1 and 2 market-based) by offsetting remaining CO2 emissions.
• 100% renewable energy use for named utilities and data center.
• Reduced energy consumption by 3% compared to the previous year through various initiatives (e.g., HVAC system improvements, LED lighting).

Social Achievements

• Obtained gender parity certification (UNI/PdR 125:2022).
• Launched toDEI program to promote diversity, equity, and inclusion.
• Contributed over €7m to numerous social initiatives.
• Increased staff training hours by 26%.

Governance Achievements

• Admitted to the cooperative compliance regime instituted by the Italian revenue authority.
• Implemented a Tax Control Framework.
• ESG criteria integrated into senior management's long-term remuneration (20% weighting).

Climate Goals & Targets

Environmental Challenges

• Uncertainty in the operating scenario due to geopolitical events and macroeconomic trends.
• Climate-related and social emergencies.
• Lack of and/or inadequate business continuity models.
• Ineffectiveness of internal control and ESG/climate change risk management systems.
• Ineffective communication on ESG issues to stakeholders.
• Delays in responding to clients’ needs in responsible investing and lending and sustainable products.
• Absence of instruments and methodologies to analyze impact in ESG and climate change areas.
• Inadequate response to changes in customer preferences.
• IT attacks and/or external fraud.
• Breach of personal data privacy and protection regulations.
• Inadequate training and awareness-raising initiatives for Group staff.
• Dissatisfaction and reduced engagement levels by staff.
• Increase in gender pay-gap.
• Inadequate trade union relations.
• Lack of, or inadequate, policies for attracting talent.
• Lack of effectiveness of programmes focused on Diversity & Inclusion.
• Inadequate management of energy resources, raw materials and waste.
• Physical risk from extreme climate events and gradual climate changes.
• Transition risk from changes in public policies, environmental regulations, technology, and consumer preferences.
• Improper commercial practices, inadequate and/or non-transparent disclosures, and greenwashing.
• Lack of structured governance framework in the reputational risk area.
• Inadequate/wrong planning and management of project initiatives to support communities.
• Non-compliance by business partners and suppliers with laws, regulations, and/or ethical standards.
• Inadequate internal control system with regard to the supply chain.

Mitigation Strategies

• Renewed membership of international protocols (UN Global Compact, Principles for Responsible Banking, Net-Zero Banking Alliance).
• Integrated ESG criteria into all areas of business.
• Defined specific stress testing methodologies for climate change risks.
• Annual materiality analysis and stakeholder engagement.
• Regular meetings with industry associations.
• Updated Business Continuity Plans.
• ESG Programme implementation across all divisions and Group Legal Entities.
• Ongoing alignment between Group Investor Relations and Group Sustainability.
• ESG objectives included in MBO scorecards.
• Development of gap analysis and action plan for CSRD compliance.
• Consolidation of ESG Architecture and ESG data governance.
• Training courses on climate and environmental risk management.
• Formalized a team to govern the risk of greenwashing.
• Adopted a Group Sustainability Policy and Group ESG Policy.
• Included new ESG objectives in the 2023-26 Strategic Plan.
• Adherence to Principles for Responsible Banking (PRB) and recommendations of the TCFD.
• Defined and implemented ESG Risk Assessment and reporting process.
• Updated ESG and Climate Change Risks catalogue.
• Revised ESG Risk Assessment and reporting process.
• Risk management integrated into the remuneration process.
• Implemented a Group ESG Policy defining guidelines for integrating ESG criteria into lending, proprietary investment, and investment advisory activities.
• Implemented a Mediobanca Group Diversity, Equity and Inclusion Code.
• Launched a cultural change programme called “toDEI”.
• Developed partnerships with universities to identify talent.
• Launched talent programmes and graduate programmes.
• Implemented employer branding strategies.
• Offered job rotation and internal mobility opportunities.
• Implemented company welfare systems.
• Provided mandatory, management and technical/specialist training (including mandatory training on Diversity, Equity & Inclusion issues and ESG topics).
• Defined a competence and performance tracking system.
• Implemented an IT platform (“Skillato”) to manage and monitor training initiatives.
• Implemented a Group Policy for Managing Conflicts of Interest.
• Implemented an Organizational Model pursuant to Italian Legislative Decree 231/2001.
• Implemented a Code of Ethics and a Code of Conduct.
• Implemented a whistle-blowing policy.
• Implemented regulations governing transactions with related parties.
• Implemented a directive on external personal interests.
• Implemented an annual assessment of the risk of non-compliance with regulations.
• Implemented a Tax Control Framework.
• Implemented a Group anti-corruption directive.
• Implemented a Gift directive.
• Implemented a Directive on relations with the public administration.
• Implemented a policy for managing conflicts of interest.
• Implemented a non-compliance risk management policy.
• Implemented a Group Personal Data Protection Policy.
• Implemented secure access and authentication systems for staff working remotely.
• Implemented technology and IT measures (e.g., antivirus/malware, firewall).
• Implemented a procedure to manage the transfer of personal data outside of the European Economic Area.
• Implemented a data loss prevention solution.
• Implemented an active directory cyber threat protection and recovery system.
• Implemented a Group Directive on Purchasing Process Management.
• Implemented an ESG self-assessment questionnaire in the supplier selection process.
• Implemented a due diligence procedure by Group AML unit.
• Implemented a Board Investor and Proxy Advisor Engagement Policy.
• Implemented a safety management system.
• Implemented a process to manage the procedure of staff returning to work after long absences.
• Implemented a system for annual monitoring of risk indicators of internal violence.
• Implemented a Group ESG Policy based on negative and positive screening criteria.
• Implemented a Transition Plan.
• Implemented various initiatives to reduce energy consumption and CO2 emissions.
• Implemented a mobility management plan.
• Implemented waste management initiatives (e.g., recycling, reduction of plastic use).
• Implemented a process for collecting ESG scores for suppliers.

Supply Chain Management

Supplier Audits: 155 suppliers assessed (68% of suppliers handled by Group Procurement)

Responsible Procurement

• Competitive and negotiation processes for supplier selection.
• Supplier qualification guidelines.
• ESG self-assessment questionnaire.
• Compliance with worker rights, social security, accident prevention, and health and safety regulations.
• Compliance with the Group’s Code of Ethics.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme climate events (floods, landslides, tornadoes)
• Gradual climate changes (increased temperatures, rising sea levels, loss of biodiversity)

Transition Risks

• Changes in public policies, environmental regulations, technology, and consumer preferences

Opportunities

• Development of energy-efficient products and services
• Growth in ESG lending and investments

Reporting Standards

Frameworks Used: GRI Standards, SASB, TCFD, EU Taxonomy, SFDR, CSRD, UN Global Compact, Principles for Responsible Banking, Net-Zero Banking Alliance

Certifications: Gender parity certification (UNI/PdR 125:2022), UNI CEI EN ISO 50001:2018, UNI EN ISO 14064:2019, UNI EN ISO 14001:2015

Third-party Assurance: EY S.p.A. (limited review)

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 8 (Decent work and economic growth)
• Goal 10 (Reduced inequalities)
• Goal 13 (Climate action)
• Goal 17 (Partnerships for the goals)

Initiatives contributing to these goals are detailed in the report.

Sustainable Products & Innovation

• Green loans
• Sustainable investments
• ESG qualified funds
• Green mortgages
• BNPL product (PagoLight)
• Instant loan products

Awards & Recognition

• Sustainability Leaders 2024 (Statista and Il Sole 24 Ore)
• MF Banking Awards 2024 (Innovation)
• Private Banking Awards (Wealth Management Innovation)
• Italy’s Best Employers 2024 (Statista and Il Corriere della Sera)
• Bollino Rosa (Fondazione Onda)