Climate Change Data

Environmental Metrics

ESG Focus Areas

• Human Resources
• Responsible Finance
• Financial Education/Community Support Projects
• Supply Chain
• Shareholders
• Environment

Environmental Achievements

• Reduced paper consumption by 2.2 tons compared to 2018.
• 81% of electricity from renewable sources.

Social Achievements

• Achieved 97% customer satisfaction rating.
• Certified as a Top Employer Italia.
• 60% of new hires in 2019 were under 30.
• Launched Mutui Green (Green Mortgages).

Governance Achievements

• Established a Sustainability Office.
• Created the Corporate Governance, Appointments and Sustainability Committee.
• Adopted a Global Policy for the management of transactions with persons in possible conflict of interest.

Climate Goals & Targets

Environmental Challenges

• Supply chain management handled by Unicredit Group until December 2019.
• Need to revise all Group policies following exit from Unicredit Group.
• Limited data availability due to exit from Unicredit Group (energy consumption, emissions, employee health and safety).
• Potential for unfavorable outcome in procedure initiated by the Guarantor for Competition and the Market Authority (A.G.C.M.) regarding commercial practices.

Mitigation Strategies

• FinecoBank Procurement Office took charge of procurement process from January 2020.
• Ongoing revision of Group policies.
• Information on policies undergoing revision included in the NFS.
• Provided A.G.C.M. with all requested information.

Supply Chain Management

Supplier Audits: 5,091 suppliers; ESG criteria integrated into supplier selection process in 2020.

Responsible Procurement

• Expenditure Regulation (updated August 2019); Code of Ethics; Organisation and Management Model.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Sustainability Reporting Standards (2016), GRI Financial Services Sector Disclosures (2013)

Certifications: FSC (Forest Stewardship Council) for paper

Third-party Assurance: Deloitte & Touche S.p.A. (limited assurance)

Sustainable Products & Innovation

• Mutui Green (Green Mortgages); ESG Private Value Lines; FAM MegaTrends fund.

Awards & Recognition

• Milano Finanza ESG Awards; Women in Finance - 2019 Italy Awards (Lorena Pelliciari, CFO of the Year); Forbes Italia awards Fineco Private Banking in the “Wealth Tech” category; Alessandro Foti as best CEO in Europe (Institutional Investor).

Environmental Metrics

ESG Focus Areas

• Human Resources
• Responsible Finance
• Financial Education/Community Support Projects
• Supply Chain
• Shareholders
• Environment

Environmental Achievements

• Reduced paper consumption by around 20 tons in 2020, with consumption levels amounting to some 7.3 tons of paper, 100% of which was FSC certified and 97% of which bore the Europe-wide stamp of environmental excellence EU Ecolabel.
• Purchased about 55% of its electricity from renewable sources.

Social Achievements

• Launched Engagement & Reputation Survey with 82% Engagement Index.
• Implemented initiatives related to flexible work (greater use), creation of employee areas (such as break areas), preventive health and healthcare.
• Increased supply of products with social and environmental value within the mortgages and loans sector (21% capital disbursed for green mortgages out of total mortgages granted during the year).

Governance Achievements

• Established a special committee exclusively responsible for sustainability matters (Corporate Governance and Environmental and Social Sustainability Committee).
• Adopted a new version of the FinecoBank Group’s Global Policy for the management of transactions with parties in potential conflict of interest.

Climate Goals & Targets

Environmental Challenges

• Covid-19 pandemic and its impact on customer assets under management and operations.
• Supply chain disruptions due to the initial lockdown in China.

Mitigation Strategies

• Successfully tackled extremely complex market conditions due to the pandemic.
• Adapted quickly to remote working, switching the entire recruitment process to digital.
• Made use of what was available on the Italian market for urgent requests (notebooks).
• Implemented a number of initiatives to support colleagues during the pandemic (home working, PPE, etc.).

Supply Chain Management

Supplier Audits: 20% of suppliers assessed based on ESG criteria

Responsible Procurement

• Expenditure Regulation
• Code of Ethics
• Request for mandatory documentation (DURC, CCIAA, social security regulations, ISO 9001 and ISO 14001 certificates, self-declaration on exploitation of labour).

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Standards: Core option and “Financial Services Sector Disclosures”

Certifications: Top Employer 2020

Third-party Assurance: Deloitte & Touche S.p.A. (limited assurance)

UN Sustainable Development Goals

• Goal 5 (Gender equality)
• Goal 8 (Decent work and economic growth)
• Goal 10 (Reduced inequalities)
• Goal 13 (Climate action)
• Goal 12 (Responsible consumption and production)
• Goal 4 (Quality education)
• Goal 7 (Affordable and clean energy)

Fineco aligned its 2020-2023 ESG plan with the most relevant SDGs based on similarities between the 169 targets and the material topics.

Sustainable Products & Innovation

• Green Mortgage
• ESG-rated funds
• ESG Private Value Lines
• Core Pension (with ESG integration)

Awards & Recognition

• Top Employer Italy 2020
• Private Banking Awards (Innovation in customer experience)
• MF Innovazione Awards 2019 (Financing products for private clients)

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance
• Responsible Finance
• Human Resources
• Financial Education and Community Support
• Supply Chain

Environmental Achievements

• 99.6% electricity purchased from renewable sources
• 54 tons of paper saved through dematerialisation initiatives
• 214,560 kWh energy saved through efficiency measures
• Commitment to Net-Zero Emissions by 2050

Social Achievements

• Financial Education: 57,500 participants in 1,673 events
• 82% Engagement Index
• 41.7% women employees
• 17.4% women PFA
• 2,742 complaints received (3,473 in 2020)
• Implementation of initiatives related to flexible work

Governance Achievements

• Integration of ESG Governance into Subsidiaries’ governance structure
• Full ESG regulatory oversight organizational model adoption at Group level
• Adoption of a Global Sustainability Policy
• Subscription of the UN Global Compact
• Involvement in the UN PRI Advance initiative
• Adoption of Modern Slavery and Human Trafficking Statement
• Adoption of Investment Exclusion Policy
• First publication of the ESG product list according to SFDR Regulation

Climate Goals & Targets

Environmental Challenges

• Limited exposure to ESG risks, but credit risk and business risk could be affected by climate and environmental factors.

Mitigation Strategies

• Integration of ESG risks into the Risk Management Framework
• Ad-hoc focus on ESG risks in the 2022 Risk Inventory
• Lending policy focuses on retail customers (no corporate lending) and considers climate and environmental risks in real estate collateral assessment.
• Strategic investments focus on government bonds from countries not significantly exposed to climate and environmental risks.

Supply Chain Management

Supplier Audits: Suppliers who invoice FinecoBank for a total annual amount of €25,000 or more are required to submit an ESG Questionnaire.

Responsible Procurement

• Adoption of green procurement criteria in energy and IT supplies
• ESG Questionnaire for suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events affecting creditworthiness of counterparties or collateral value

Transition Risks

• Changing customer preferences towards a low-emission economy

Reporting Standards

Frameworks Used: GRI Standards: Core option

Certifications: EMAS

Third-party Assurance: Third-party independent auditor

Sustainable Products & Innovation

• Green mortgage offer
• ESG funds

Awards & Recognition

• Sustainability Leader 2022 MF Investment Manager & Advisor Awards
• Top Job 2021-2022
• Top Employer Italy 2022
• Best Practice Leader in the Gender Diversity Index Report 2021

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• EMAS Registration obtained in September 2022, certifying excellence of the Environmental Management System.
• -16% reduction in CO2e emissions (Scope 1 and 2) vs. 2021.
• 100% electricity from renewable sources for buildings where utilities are registered to Fineco.

Social Achievements

• Top Employer Italia award won for the fourth consecutive year.
• Launched Engagement & Reputation Survey to measure employee engagement and Fineco's reputation among employees.
• Expanded range of ESG products and integrated ESG criteria into investment management activities.

Governance Achievements

• Adopted Net Zero Commitment, setting a goal of achieving net zero CO2 emissions by 2050.
• Implemented ESG questionnaire for suppliers with annual invoices of €25,000 or more.
• Improved ESG ratings from leading agencies.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to the Russia-Ukraine conflict.
• Increased reconnaissance activities due to the Russia-Ukraine conflict.
• Suspension of tradability of Russian securities impacting fund Net Asset Values.

Mitigation Strategies

• Reduced all positions/exposures in Russia to nil.
• Implemented a series of initiatives to verify security posture and operational readiness.
• Created side pockets in funds to isolate suspended securities, allowing trading to continue on the rest of the fund.

Supply Chain Management

Supplier Audits: 21.6% of annual supply volumes assessed based on ESG criteria.

Responsible Procurement

• ESG questionnaire for suppliers with annual invoices of €25,000 or more.
• Code of Ethics and Expenditure Regulation.

Climate-Related Risks & Opportunities

Physical Risks

• Reduction in value of real estate collateral for mortgage loans due to extreme weather events.

Transition Risks

• Change in customer preferences towards more sustainable investment products.

Opportunities

• Development of energy-efficient products and services.

Reporting Standards

Frameworks Used: GRI Standards

Certifications: EMAS

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

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Green mortgages
• ESG-rated funds
• Virtual debit and prepaid cards

Awards & Recognition

• MF Best ESG rating Award 2022
• MF Investment Manager & Advisor Award 2022
• Top Employer Italia 2022
• Sustainability Leader 2022
• Best company in ESG (Mid Cap) for the Italian Investors Relations Awards
• S&P’s Sustainability Yearbook Member

Environmental Metrics

ESG Focus Areas

• Environmental Sustainability
• Social Sustainability
• Governance

Social Achievements

• Initiatives and programs aimed at constantly investing in employee and Financial Advisor development, growth, and well-being, supporting them and creating an inclusive and sustainable work environment.
• Collaboration with Valore D, an association of companies committed to ensuring an inclusive culture within organizations, enabling the strengthening of commitments towards diversity and equal opportunity.

Governance Achievements

• Integrated Sustainability principles into its governance system, assigning specific responsibilities to governing bodies and operational functions.

Climate Goals & Targets

Supply Chain Management

Responsible Procurement

• Evaluation of Suppliers of goods and services on the basis of ESG criteria

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: EMAS Regulation No. 1221/2009/EC, Directive 2014/95/EU, Directive (EU) 2022/2464, EU Regulation 2019/2088, UN Global Compact Principles, UN Principles for Responsible Banking, UN Principles for Responsible Investment