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) for the fourth year running in FY 2022-23.

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>

OUR CLIMATE PROJECTS

Carbon Offset In conjunction with non-profit organization Rete Clima, Mediobanca has achieved carbon neutrality with regard to its Scope 1 and Scope 2 emissions for the fourth year running, by acquiring carbon offset credits used to finance the Ghani Solar Renewable Power Project, certified to VCS-Verra standards, generating a clean form of electricity through the installation of a solar power project in the Indian state of Andhra Pradesh.

Forest protection In 2024 we have confirmed our support for a reforestation project, which this year will involve Parco del Vesuvio, by donating and maintaining a total of 1000 trees in the area to the north of Milan, to be planted by members of the Bank’s staff. 3,750 trees have been donated by Mediobanca in the last fourth years thanks to the various projects implemented with Rete Clima. In addition, Mediobanca has also planted a total of 2,500 trees through other projects implemented since 2021.   For more details go to the map.

 

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.

Mediobanca Innovation Services has entered into a Power Purchase Agreement (PPA), which would mitigate the volatility of the costs of acquiring electricity, contributing to the country’s energy transition by entering into a long-term contract to acquire energy from newly-implemented solar power stations.

Various initiatives to reduce consumption levels have been implemented in FY 2023-24:

• Work on the heating and air-conditioning systems at Mediobanca Rome has ended, resulting in a reduction in consumption of 37 MWh (135 GJ);
• Replacement of light fittings with LED lightbulbs in various Compass which has generated a reduction of 143 MWh (516 GJ) in electricity; in this case the efficiency drive will continue into the next financial year as well, with an estimated further reduction of approx. 16 tons of CO2;
• Completion of mandatory energy diagnosis as required by Italian Legislative Decree 102/14.

Overall, the conversion and retrofitting initiatives have made it possible to avoid the emission of aproximately 74 tonnes of CO2 into the atmosphere.

The various initiatives implemented to improve the efficiency of the data centres and optimize cooling include an assessment of the air conditioning systems and their functioning; the closure of the cold aisles has now also been completed.

Energy consumption

Energy consumption within and outside of the organization102
	Unit	2023/2024	2022/2023	2021/2022
From heating/electricity generators	Gj103	23,324.45	25,219.73	29,415.95
Diesel		5.4	114.87	60.51
Natural Gas104		23,319.05	25,104.86	29,355.44
From unnamed users105		5,923.73	7,842.33	10,291.69
From named users		17,395.31	17,262.53	19,063.75
From company cars106		25,590.36	25,852.88	22,863.93
Diesel		6,688.5	12,906.66	15,748.77
Petrol		18,901.86	12,946.22	7,115.16

Electricity		81,603.12	84,014.55	86,436.12
From non-renewable sources	Gj	562.39	494.34	662.65
From named users		-	-	-
From unnamed users		562.39	494.34	-
From non-renewable sources		81,040.73	83,519.31	85,773.47
From named users		74,494,09	77,567.22	-
From unnamed users		6,546.64	5,843.98	-
Heating		1,381.39	731.94	1,615.65
From non-renewable sources		1,381.39	731.94	399.92
From unnamed users		965.42	731.94	-
From unnamed users		415.97	-	-
From non-renewable sources		0	-	1,215.73
From unnamed users		0	-	-
From unnamed user		0	-	-
TOTAL		131,899.32	135,819.1	140,331.65

<sup>102. For energy consumption, where figures are not available estimates have been used: for natural gas in cases involving shared building expenses of which the
precise share cannot be calculated, consumption has been estimated on the basis of the floor space in the building actually occupied, or thousandths of the
property owned. For bills still to be received, consumption has been estimated based on the previous year’s figures. Data on fuel consumption by company cars
which is not available has also been estimated using a similar method.
103. Gigajoule.
104. Energy consumption of natural gas has been calculated based on the total price of gas per cubic metre published by the Italian authority ARERA (Agenzia di
Regolazione per Energia Reti e Ambiente).
105. Starting from FY 2022-23, the Group has succeeded in obtaining and reporting on the data for named and unnamed users separately. Consumption of natural
gas by unnamed users is attributable to users outside the organization.
106. Data on fuel consumption for CMB is unavailable as fuel consumption is paid directly by the employees with no refund</sup>

     

CO₂ emissions

Our emissions derive from energy consumption (natural gas and diesel for heating and fuel for operating the company fleet) and from our employees' travels, but are mainly limited to electricity consumption.

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;
• the discount arranged with ATM for public transport has been extended to include all Group Legal Entities, Elimination of the majority of the fixed-line telephones for Mediobanca Premier, MBCS, MIS and Mediobanca, which should enable a reduction of approx. 50 tons of CO2.

CO₂ emissions

	Unità	2023/2024	2022/2023	2021/2022
From heating/electricity generators (natural gas,diesel)	TCO2	348.98	465.48	1,706.12
From company cars (petrol and diesel) 1		1,887.32	1,911.40	1,697.06
From losses of gas coolant		309.272	507.86	nd
Direct emissions (scope 1)	TonCO2	2,545.57	2,884.73	3,403.18
From electricity		0	0	39.21
From heating		56.18	42.89	23.53
Indirect emissions (Scope 2) – market based		56.18	42.89	62.74
From electricity		5,415.47	5,491.26	6,479.65
From heating		56.18	42.89	25.53
Indirect emissions (Scope 2) – location based		5,471.65	5,534.15	6,503.18
Indirect emissions deriving from acquisition of goods and services  (category 1)		231.87	443,76	nd
From paper3		231.87	443,76	-
Not recycled		213.69	435,85	-
Recycled		18.17	7,91	-
Indirect emissions deriving from company mobility (category 6)4		2,195.84	1,578.35	774.59
Air travel		2,071.66	1,475.11	703.94
National flights		456.15	305.14	154.94
International flights		1,615.5	1,169.97	549
Train travel		107.08	89.62	63.03
High speed		95.57	78.44	55.88
Other type		11,52	11.19	7.15
Third-party car services		17.10	13.62	7.63
Indirect emissions related to consumption of fuel and energy  (category 13)		1,648.15	1,509.91	nd
From electricity (unnamed accounts)5		600.33	504.19	-
From methane gas (unnamed accounts)		1,023.61	1,005.72
rom thermal energy (unnamed accounts)		24.21	1,005.72	-
Other indirect emissions (Scope 3)		4,075.86	3,532.08	774.59

1 The value of the emissions attributable to paper for FY 2023-24 has been calculated using two different emissions factors: 
2  The following types of gas are included: R-410A; R-407C; and R-134.
3 The value of the emissions attributable to paper for FY 2023-24 has been calculated using two different emissions factors: DEFRA 2023: Greenhouse gas reporting: conversion factors 2023 - GOV.UK, Primary material production (910.48 kg CO2e/t) for the share of virgin paper consumed; and Closed-loop source (730.48 kg CO2e/t) for the share of recycled paper consumed. This methodological approach has also been applied to the data for FY 2022-23 (DEFRA emissions factors 2022), resulting in the information for the same period being restated, in accordance with the provisions of GRI 2-4 (“Restatements of information”)  .
⁴ For indirect emissions (Scope 3), estimates have been used in cases where no data was available for recent months, based on the consumption figures recorded in the months prior to that, or using the consumption figures for the same period in the previous year
⁵ Calculated using the same conversion factors used in the Location-based methodology for Scope 2.

     

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.

The remaining sectoral objectives have been set during FY 2023-24 in completion of the commitment entered into in connection with the NZBA initiative. The two sector-based approaches used are illustrated below: SDA (Sectoral Decarbonization Approach) and GEVA (GHG per Economic Value Added), depending on their applicability.

NZBA sectoral objectives

TARGET VERSUS BASELINE	AUTOMOTIVE (2022)	POWER (2022)	AVIATION (2022)	CEMENT (2022)	IRON & STEEL (2023)	OIL & GAS* (2022)/(2023)	SHIPPING (2023)	CHEMICALS (2023)
SDA Method	gCO2e/vkm	tCO2e/MWH	tCO2e/pkm	tCO2e/ton	n.a.	gCO2e/MJ	n.a.	n.a.
	16% by 2025	24% by 2025	4% by 2025	11% by 2025		5% by 2025
	39% by 2030	53% by 2025	10% by 2030	25% by 2030		18% by 2030
Economic intensity method GEVA	tCO2e/$ (revenue)
	Annual reduction rate updated for all sectors: 7.7%

^{*For the Oil and Gas sector, the baseline has been considered as 2022 for the SDA methodology (aligning it with the other sectors), and as 2023 for the GEVA methodology.}