Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate change
• Sustainable use of resources
• Environmental and social criteria in business
• Employment and work organization
• Health and safety
• Talent management
• Diversity
• Equality
• Work-life balance
• Human rights
• Corruption and bribery
• Transparency of information
• Risk management and compliance
• Policy
• Commitment to sustainable development and SDGs
• Subcontracting and suppliers
• Fiscal responsibility
• Financial education
• Safety and data protection
• Responsible and transparent marketing
• Digitalization and accessibility

Environmental Achievements

• Issued its first two green bonds for a combined amount of 1,000 million euros.
• Developed a methodology for measuring the carbon footprint of investment portfolios.
• Developed a methodology for incorporating climate and environmental risks in investment decision analysis processes.
• Reviewed product portfolios to establish options that favor sustainability.

Social Achievements

• Implemented measures to promote financial inclusion, especially for the elderly and disabled.
• Extended opening hours for cash services.
• Developed specific training plans for employees and customers.
• Improved accessibility and simplicity of the ATM network.
• Launched a Digital Facilitators program to help customers and employees with digital channels.
• Continued financial education programs through Edufinet, reaching over 40,500 people.

Governance Achievements

• Established a Sustainability Committee within the Board of Directors to oversee sustainability practices.
• Approved policies for integrating sustainability factors into credit, market, liquidity, and operational risk management.
• Developed an internal sustainable business classification system.

Climate Goals & Targets

Environmental Challenges

• Post-pandemic economic and commercial instability, accentuated by the conflict in Ukraine and inflationary pressures.
• Energy crisis and rising energy prices.
• Geopolitical tensions and uncertainty in economic forecasts.
• Increased sensitivity to sustainability and climate change from investors, customers, and regulators.

Mitigation Strategies

• Implemented a Sustainable Finance Action Plan to integrate ESG criteria into its business model.
• Developed methodologies for identifying, measuring, and managing climate risks.
• Focused management on low-risk portfolios.
• Accelerated asset transfers and maintained low cost of risk.
• Developed and executed a Sustainable Finance Action Plan aligned with supervisory expectations.

Supply Chain Management

Responsible Procurement

• Promoting responsible behavior of providers from the point of view of CSR.
• Establishing policies, processes and procedures that extend its social commitment to its entire supply chain.
• Maintaining relationships with suppliers that respect current labor legislation and human rights.

Climate-Related Risks & Opportunities

Physical Risks

• Droughts
• River floods
• Fires
• Desertification
• Rising sea levels

Transition Risks

• Regulatory changes
• Technological adaptations

Opportunities

• Development of sustainable financial products and services.
• Accompanying customers in investments for the transition to a more sustainable model.

Reporting Standards

Frameworks Used: GRI Sustainability Reporting Standards (GRI Standards), TCFD, UN Global Compact

Certifications: ISO 9001:2015, ISO 45001:2018, ISO/IEC 27001, ISO/IEC 27701:2019

Third-party Assurance: Independent assurance service provider

UN Sustainable Development Goals

• SDG 1
• SDG 5
• SDG 8
• SDG 10
• SDG 13
• SDG 15

Contributions to SDGs through various initiatives, including financial inclusion, gender equality, decent work, reduced inequalities, climate action, and sustainable use of terrestrial ecosystems.

Sustainable Products & Innovation

• Green mortgages
• Ecosustainable agro-financing
• Energy rehabilitation loans
• Mobility master plans
• Eco green motor loans
• Sustainable investment funds
• Sustainable pension plans

Awards & Recognition

• Special Jury Award in the Financial Education category (CECA Social Work and Financial Education Awards)

Environmental Metrics

ESG Focus Areas

• Climate change
• Sustainable use of resources
• Circular economy
• Good corporate governance and transparency
• Human rights
• Financial inclusion

Environmental Achievements

• Completed the Bank’s Sustainable Finance Action Plan.
• Approved decarbonization targets for the loan portfolio in the fossil fuel, energy, and residential mortgage sectors.
• Approved a policy of excluding certain particularly polluting economic activities from financing.
• Continued dedication to respond to the European Central Bank’s supervisory expectations in environmental and climate matters.
• Issued an additional 300 million euros in green bonds in 2023, bringing the total outstanding to 1 billion euros.

Social Achievements

• Adhered to the “Strategic protocol to strengthen the social and sustainable commitment of the banking sector” and the “Code of best practices for urgent measures for mortgage debtors at risk of vulnerability”.
• Financial and digital education program benefited 18,632 people in 2023.
• Collaboration with Save the Children, UNHCR, and UNICEF to respond to humanitarian crises.
• Partnership with the ADECCO Foundation to promote the social and labor inclusion of women who are victims of gender violence.
• Collaboration with Correos to expand access to financial services in rural Spain.

Governance Achievements

• Several significant changes in Unicaja’s governance model were introduced, including the appointment of a new CEO.
• Restructured all the Committees of the Board of Directors.
• Approved a new Directors’ Remuneration Policy.
• Implemented a policy for the Identification and Management of Conflicts of Interest and Related-Party Transactions.

Climate Goals & Targets

Environmental Challenges

• High uncertainty in the face of various sources of geopolitical instability.
• High interest rates and slower economic growth, which could lead to a higher risk of credit restructuring and payment difficulties for some customers.
• Increased sensitivity to sustainability and climate change by investors, customers, and regulators.

Mitigation Strategies

• Focus on low-risk portfolios, mortgages, and consumer portfolios with existing customers and on pre-approved models.
• Accelerating asset transfers and maintaining a low cost of risk.
• Implementing the Sustainable Finance Action Plan.
• Developing a new sustainability strategy for 2024.

Supply Chain Management

Responsible Procurement

• Definition of a supplier approval procedure that incorporates environmental and social commitment clauses (under development).

Climate-Related Risks & Opportunities

Physical Risks

• Droughts
• River floods
• Fires
• Desertification
• Rising sea levels
• Coastal flooding

Transition Risks

• Regulatory changes
• Technological adaptations

Opportunities

• Development of sustainable financial products and services

Reporting Standards

Frameworks Used: GRI Standards, TCFD

Certifications: ISO 9001:2015, ISO 45001:2018, ISO/IEC 27001:2017, ISO/IEC 27701:2021

Third-party Assurance: Independent assurance service provider (not specified)

UN Sustainable Development Goals

• SDG 1
• SDG 3
• SDG 5
• SDG 8
• SDG 10
• SDG 12
• SDG 13
• SDG 16
• SDG 17

Unicaja's initiatives contribute to these goals through various programs and partnerships.

Sustainable Products & Innovation

• Green mortgages
• Ecomobility loan
• Energy rehabilitation loans
• Home efficiency loan
• EDP photovoltaic installation loan
• ICO Residential Building Rehabilitation Line
• Ecosustainability agricultural loan
• Forestry aid loan
• Loan for the installation of drip irrigation systems
• Sustainable investment funds
• Sustainable pension funds

Environmental Metrics

ESG Focus Areas

• Climate Change Mitigation
• Renewable Energy
• Green Buildings
• Financial Inclusion
• Social Housing

Environmental Achievements

• Implemented measures in the Sustainable Finance Action Plan (2020-2023) to integrate ESG criteria into its business model.
• Developed a methodology for incorporating climate and environmental risks into investment decisions.
• Expanded product offerings to promote sustainable consumption and investment patterns.

Social Achievements

• Continued development of financial education programs since 2005.
• Member of the Social Housing Fund (FSV), contributing 471 homes for vulnerable families as of December 2023.

Governance Achievements

• Updated Green Bond Framework in 2024 to reflect the evolution of its sustainability strategy and market practices.
• Established a process for evaluating and selecting eligible green projects, including quarterly reviews by the ESG working group and approval by the Board of Directors.
• Commissioned DNV.GL for an external review (Second Party Opinion) of the Green Bond Framework.

Climate Goals & Targets

Environmental Challenges

• Managing climate and environmental risks in investment decisions.
• Ensuring alignment with EU Taxonomy and DNSH criteria.

Mitigation Strategies

• Developed a methodology for incorporating climate and environmental risks into investment decisions.
• Aligned eligibility criteria of green categories to the substantial contribution criteria of the corresponding EU Taxonomy activities.
• Performs screenings informed by the ‘Do No Significant Harm’ (“DNSH”) and minimum safeguards criteria where data permits.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: ICMA Green Bond Principles, EU Green Bond Standard, EU Taxonomy

Third-party Assurance: DNV.GL (Second Party Opinion)