We listen to our stakeholders with selected dialogue tools, to assess what is materially important to them. After identifying critical Environmental, Social and Governance issues (ESG), we rank them in order of importance, to develop our approach and strategies for each one of them. The Materiality Matrix is a graphic model of this process, showing which topics stakeholders say are of material importance.
We review our materiality analysis on a yearly basis. This year, the analysis of the internal relevance of single topics was done directly with senior management, in dedicated interviews. During these one-to-one meetings, managers assessed each material topic from a presidium, investment and managerial focus point of view, defining a unique UniCredit approach. By applying this new process, we underlined the fundamental importance of Materiality Analysis in the strategic definition of UniCredit's targets.
The results of the analysis were discussed with our Corporate Governance, Nomination and Sustainability Committee which examines both the methodology and the results in depth.
As announced last year, there was a particular focus on:
Ethics and Respect: Do the right thing! are the values and guiding principle on which the behaviour and decisions of our bank are founded. Several initiatives were undertaken last year, demonstrating a strong commitment to our values.
One of the most important initiatives was founded on our commitment to protect data: at UniCredit, we use data both inside and outside our organisation to improve how we serve and interact with our clients and to ensure that we always provide banking that matters.
"Ethics & Respect: Do the right thing!" pervades everything we do, including how we handle and use customer data.
More info on our committments on data
The successful Social Impact Banking (SIB) project was extended to 10 additional European markets. In the Team 23 business plan, UniCredit committed to approving €1 billion of total financing by 2023. We will also continue to invest in UniCredit Foundation, which contributes to meeting social needs, including study and research.
Moreover, during 2019, UniCredit launched its first Diversity and Inclusion Week , involving around 13,600 employees. There were around 80 initiatives in 15 markets, including workshops, testimonials and training courses with our colleagues and their families, external experts and non-governmental organisations.
Regarding the environment , UniCredit has implemented several initiatives to 2023 to reduce its impact.
Among others, we reduced direct environmental impact by cutting greenhouse gas emissions. All of the bank's electricity consumption will soon come from renewable energy sources. Furthermore, we are partnering with our customers in the shift to a low carbon economy, confirming a coal exit timeframe and increasing our renewable energy sector exposure.
Serving our customers to the best of our abilities is our number one priority. To achieve this, we rely on highly qualified, committed employees and our ability to work together effectively and create synergies as One Bank, One UniCredit. We remain committed to executing our strategy and will continue to only take appropriate risks.
In order to facilitate our clients in the transition to a more sustainable economy, UniCredit has set up a Sustainable Finance Advisory Team within the Corporate & Investment Banking Division. Combining sustainability expertise with capital markets capabilities, the new team aims to deepen client engagement on ESG related topics and facilitate their access to Europe's sustainable financing market.
Regarding the risks related to climate change, the development of a bank-wide climate risk management framework is becoming a priority for UniCredit. A very first step to achieve this important goal was to set up a dedicated team within the Group Risk Management (GRM) office, responsible for the supervision and management of processes related to climate change risks and UniCredit's approach to sensitive sectors.
The first activity put in place by the team focused on assessing the transition risk of listed companies in our Corporate & Investment Banking portfolio in order to effectively manage their environmental risk profile. Furthermore, a relevant methodology will be deployed for other corporate clusters.
Dialogue tools with stakeholders
Listening to stakeholders has always been fundamental to UniCredit's business: the Group regularly invests in mutual feedback activities that include all types of stakeholders, systematically collecting and evaluating observations, conducting research activities and responding to stakeholders' opinions and concerns.
We believe that understanding who your business impacts and who impacts your business is the key to long-term value creation. We also believe that knowing which issues are important to our stakeholders is crucial for managing risks and opportunities, and is therefore essential when it comes to making decisions and developing strategies.
We have periodically carried out materiality analyses since 2010, listening to our stakeholders. This thorough approach identifies critical economic, environmental and social aspects which could have a significant impact on the company's business performance and, therefore, on long-term value creation.
The matrix below represents the upper-right quadrant of the overall matrix and results from the ranking of a number of topics based on their relevance (medium or high) expressed by our stakeholders during an intense dialogue process, as well as UniCredit's approach to the same topics, measured in terms of managerial focus and investments (advanced or highly advanced).
Innovation for customer: value to customer (advanced); Digitalisation and innovation (advanced)
Lean and solid bank: lean and trasparent organisation (advanced); bank solidity (highly advanced)
People development: Employee' empowerment (advanced); Diversity and inclusion (advanced)
Ethics: Fair business behaviour (highly advanced); Business ethics (highly advanced)
Systemic trends: Cyber security (highly advanced); Demographic change (advanced); climate change (advanced)
Positive impact on society (highly advanced)