Climate Change

• Net Zero Banking Alliance
• Reduction of direct emissions from 2019
• 100% renewable electricity sourced in Italy

Our commitment to reducing our impact is not only reflected in our internal processes and strategies, but in the projects and activities we deliver to customers and the community. To guide these efforts and generate value, we have identified several areas of interest, from supporting the climate transition to reducing direct and indirect environmental impacts. In 2021, we gaining membership to the Net-Zero Banking Alliance and also neutralized our direct emissions (Scope 1 and Scope 2) since 2019.

Protecting the planet means protecting our future. That’s why, in 2021, we joined the Net-Zero Banking Alliance (NZBA) with the goal of zero emissions from our operations by 2050. The UN-convened alliance, led by the banking industry, brings together banks from around the world representing more than 40% of global banking assets which are committed to aligning their lending and investment portfolios with net-zero emissions by 2050.
Our decision to formally join the initiative stems from the realisation that to address the climate urgency, our individual actions can only make a difference in a collective journey that also includes the efforts of other players in the financial system and the expectations of our customers.

As a member of the Alliance, Mediobanca has applied specific obligations that include:

• Setting intermediate targets for 2030 for priority sectors.
• Prioritising sectors that generate the most significant impact in terms of greenhouse gas emissions.
• Publishing annual reports on emissions and intensity.
• Considering scenarios based on the best available scientific knowledge.  
• Setting the first target(s) within 18 months of signing the Agreement by providing updates on an annual basis.
• Disclosing progress within a Board-approved transition strategy.

Joining the Net-Zero Banking Alliance therefore represents a new level of commitment from the Mediobanca Group on issues related to Climate Change. It guides us towards increasingly incisive and rigorous actions. The Alliance forms part of the long-term ESG strategy that Mediobanca is implementing and is consistent with the management of our direct emissions reduction activities: in recent years, the Mediobanca Group has, in fact, embarked on a path aimed at reducing its own emissions and minimising "non-reducible greenhouse gas emissions".

Moreover, in April 2022, Mediobanca voluntarily adhered to the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD), the global benchmark for the identification of guiding principles for climate-related non-financial reporting. The actions and management methods that undertaken by the Group and presented in a dedicated report, consolidate the Group's position alongside leading companies committed to the transition.

As a Group, we are aware of the impacts of our business activities and the role we can play in propagating responsible behaviour and choices. With this in mind, a number of objectives have been identified specific goals that have been included in the 2023-2026 “One Brand - One Culture” strategic plan.

SDG	Targets to 2023-2026
	Carbon neutrality on own emissions	carbon neutrality confirmed
	100% renewable energy at Group level	100% at the group level

^{The table shows the degree of achievement of the objectives of the 2019-2023 Plan}

<sup>90. Target adjusted from the original (92%).
91. For Scope 1 + Scope 2 Market-based, named users. Target adjusted from the original (15%) because of delays in the delivery of hybrid vehicles and the use of fuel
cards being extended to the entire commercial segment and car fleet.
92. Target adjusted from the original figure of 90% due to delays in the delivery of electric and hybrid vehicles as a result of first the pandemic then the war.</sup>

Energy consumption

he Group's energy consumption is mainly related to the use of heating and air conditioning systems, the operation of data centres and server rooms, and charging electric vehicles included in the Group’s fleet of company cars..

Currently, the entire Mediobanca Group uses electricity from renewable sources, in accordance with a framework agreement that provides for the purchase from CVA Energie, of energy certified through a "Guarantee of Origin". The electricity used for the data centre also comes from 100% renewable sources.

During the financial year various initiatives to reduce consumption levels have been implemented, including: improvements to the air conditioning systems and relamping of the electrical systems at the Via Filodrammatici headquarters, achieving savings of 22 and 7 tons of CO2 , respectively, for a total of 29 tons of CO2.

CO₂ emissions

Our direct emissions derive from consumption of energy, i.e. natural gas and diesel for heating, fuel for the company car fleet, and fluorinated gas emissions (Scope 1); whereas indirect emissions relate to the use of purchased energy, steam and heating/cooling consumed from equipment or systems owned or controlled by the Group (Scope 2 market-based and location-based), business travel for Group collaborators travelling by train or air (category 6), consumption of material goods and services purchased (category 1), and investments (category 15)   (Scope 3).

In order to reduce CO₂ emissions,the following initiatives have been promoted:

• Promoting the use of videoconferencing and the provision of training courses that can be delivered in e-learning mode to reduce employee travel and, consequently, CO₂ emissions.
• Reducing the use of individual private transport thanks to the company shuttle service for the Compass headquarters in Milan and the pre-booked shuttle service provided by Mediobanca Innovation Services (Mediobanca MISposto).
• Managing the corporate fleet using criteria that promote respect for the environment. The Group's car fleet consists of vehicles with low CO₂ emission engines. electric and Hybrid plug-in vehicles.

In line with existing best practices in the banking sector, our main objectives to support the climate transition are to increase green mortgages and to issue new products with an environmental purpose.

SDG	Targets to 2023-2026
	Emissioni di ESG bonds di €500mld
	Issue of a carbon neutral fund (RAM)
	+50% 'green' mortgages by CheBanca!

^{The table shows the degree of achievement of the objectives of the 2019-2023 Plan}

We have set specific emissions reduction targets for the main high carbon intensity sectors, using the Sectoral Decarbonization Approach (SDA) methodology from the Science Based Targets Initiative and the Greenhouse Gas Emissions per unit of Value Added (GEVA) approach.