ESG targets in the plan

The targets identified, which serve to integrate Environmental Social & Governance (ESG) topics even more firmly into the corporate strategy, involve the following main topics:

• Environmental
  The Group is committed to achieving carbon neutrality by 2050 as a result of its membership of the Net-Zero Banking Alliance (NZBA) and has set an interim target of a 35% reduction in financed emissions intensity for the CIB loan book by 2030 (down 18% over the Plan time horizon), by which date it also expects completely phase out its involvement in the coal industry.
  In order to take further steps on the path to addressing climate change, the Group also intends to continue its efforts to reduce its own direct impact on the environment, confirming its stance of using electricity 100% from renewable sources and maintaining carbon neutrality on its own emissions.
  In addition to these actions, climate and environmental factors will be increasingly integrated into risk management, lending and investment processes.
• Social
  The Group wants to make a positive contribution to social change by promoting a corporate culture based on diversity and inclusion (with over 30% of women Key Function Holders, over 20% executives, 50% of total hires, and gender parity in the career advancement rate), with over €20m in support for projects with social and environmental impact and suppliers screened using ESG criteria for at least 70% of the Group’s total procurement expenses.
• Governance
  With the aim of aligning Mediobanca Group senior management remuneration to measurement of the long-term performance on which the 2023-26 Plan is based, a new Long-Term Incentive Plan 2023-26 will be introduced. A weighting of 50% of total variable compensation will be introduced for the Group CEO and Group General Manager (vs 20% previously), and this incentivization instrument will be extended to include other selected Group figures considered to be strategic in reaching the objectives set. Payment will be entirely in equity over a long-term time horizon, with 20% of the ESG objectives focused on Climate Change and Diversity & Inclusion indicators.

The Plan will be submitted to the approval of shareholders at the AGM to be held in October 2023.

The desire to invest in people and engage them directly in achieving the 2023-26 Plan objectives will result in the launch of the first Employee Share Ownership and Co-investment Scheme for staff over the Plan time horizon. The purpose of this scheme is to foster engagement and ownership among Group employees who play an active role in the creation of sustainable value.