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In October 2021, UniCredit joined the Net-Zero Banking Alliance, the industry-led, UN-convened group of banks, which are committed to align their lending and investment portfolios with net-zero emissions by 2050.
NET ZERO BANKING ALLIANCE
The industry-led, UN-convened Net-Zero Banking Alliance brings together a global group of banks, currently representing over 40% of global banking assets, which are committed to align their lending and investment portfolios with net-zero emissions by 2050.
OUR OWN EMISSIONS
UniCredit has been making tangible and consistent progress to cut its own greenhouse gas emissions over the last years, for example by procuring our electricity from renewable sources and improving the energy efficiency of our premises and data centres.
In particular, in 2022 we reduced the combined Scope 1 and 2 market-based emissions by 14% vs. 2021. The bank is committed to accelerate this progression, with the ambition to reach Net Zero on own emissions by 2030. Some examples of UniCredit's progress so far include deriving 87% of the electricity across the Group from renewable sources in 2022 (100% in Italy, Germany, Austria, Hungary, Czech Republic and Slovenia).
OUR PATH TOWARDS NET ZERO
Own Emissions
- October 2021: UniCredit joins NZBA
- 2030: Net Zero target for own emissions by 2030
Financed Emissions
- October 2021: UniCredit joins NZBA
- January 2023: Disclosing first set of sectoral targets
- October 2024: Deadline for further sector targets submission
- 2030: First targets deadline; intermediate targets to be updated every five years
- 2050: Net Zero goal for lending and investment portfolio
In line with Net Zero commitment, UniCredit Group disclosed in January 2023 the first set of sectoral targets on selected sectors: Oil&Gas, Power Generation and Automotive. On coal, UniCredit Group already defined a phase out policy by 2028.
| Sector | Scope | Value Chain |
Metric | 2021 Baseline | 2030 Target | Scenario Benchmark |
|---|---|---|---|---|---|---|
| PDF | OIL AND GAS (140.42kb) | Scope 3, Category 11 | Upstream, Midstream, Downstream | Financed Emissions |
21.4MtCO2e | -29% reduction (15.2MtCO2e) | IEA NZ 2050 (World) |
| PDF | POWER GENERATION (118.08kb) | Scope 1 | Power Generation | Emission Intensity |
208 gCO2e/kWh | 111 gCO2e/kWh | IEA NZ 2050 (Europe) |
| PDF | AUTOMOTIVE (119.54kb) | Scope 3, Category 11, Tank-to-wheel | Automotive manufacturers (Light-duty Vehicles) | Emission Intensity |
161 gCO2/vkm | 95 gCO2/vkm | IEA NZ 2050 (World) |
HOW DO WE SET OUR TARGETS?
As recommended by the NZBA, PCAF, and other relevant industry guidance, the baseline was estimated, and targets were set based on the emissions profile of the bank's lending portfolio (drawn amount), focusing on SME and Large Corporates. The baseline was calculated on the on balance sheet lending drawn exposure at 31/12/2021 for all three sectors. For each sector we selected the value chain segments where emissions are most material and where data is available. Clients have been segmented based on the Nomenclature of Economic Activities (NACE). For each sector client's direct emissions (scope 1) and indirect emissions (scope 2 and 3) have been analysed.
The decision to ultimately include them in the final metric was based on the materiality of emissions, data, methodology and scenario benchmark availability. As advised by PCAF, the company value was measured using the EVIC (Enterprise Value including Cash) with the dynamic approach. If unavailable (e.g., in the case of an unlisted company) we used the Book Value of Debt and Equity or Total Assets as a last resort. We selected the International Energy Agency (IEA) Net Zero 2050 Scenario as reference scenario for all three priority sectors and 2030 has been selected as the reference year for intermediate targets.
REDUCING OUR DIRECT ENVIRONMENTAL IMPACTS ACROSS EUROPE
Our Net Zero Journey requires a greater engagement of real estate and fleet management staff. We are designing a roadmap, shared at Group level, to achieve our target on own emissions by 2030. In 2022 we held two dedicated workshops on Net-Zero, involving Group Real Estate and Group Strategy & ESG, where activities plan and common practices were shared.
A bottom-up data collection process with all our countries has been organized to build an operative baseline and estimate energy consumption forecasts, leveraging on space optimization, energy efficiency, electricity from renewable sources and heating systems transformation.
UniCredit has signed a partnership with CVA for the supply of electricity produced from renewable sources. The collaboration with CVA, a green power company based in the Aosta Valley, will result in the construction of three new solar plants in Piedmont, Lombardy and Sicily.
The new solar plants with a total capacity of 25MW will be operational in 2023, providing 35GWh per year to supply the energy demand of UniCredit data centres in Verona, covering around 20% of the bank's total electricity consumption in Italy. CVA will sell green energy to UniCredit at a set price, optimising the risk profile of the investment in its assets. This is the first time that a financial institution has committed to a corporate PPA (Power Purchase Agreement) in Italy. Discover more about our Press Release here.
UniCredit is the first bank in Europe to obtain the Global Real Estate Sustainability Benchmark (GRESB) scoring on its corporate real estate portfolio. The total portfolio analysed based on GRESB's sustainability criteria included properties owned by the Group, with an approximate value of €5bn, located across Italy, Germany and Central and Eastern Europe.
The initiative also showcases UniCredit as a frontrunner on ESG reporting for property management. The GRESB scores will be consolidated over time through continued monitoring of the ESG performance of the Group's properties and the related management processes, along with a constant comparison of these against the highest market standards.
In Germany, we have recently adopted a new car policy with the aim of achieving the Net Zero goal on our own emissions by 2030.
We expect a further reduction in company cars, from over 3,000 in 2017 to slightly over 1,000 by 2023, with a fleet comprising only battery electric vehicles.
Charging on bank premises will be favoured by the implementation of car electricity infrastructure which we expect to be complete by 2025.
The Climate and environmental impacts topic maintains its high position and the several commitments undertaken by our Group towards the just and fair transition are our answers to this trend. Net Zero, Biodiversity and Circular economy pledges demonstrate our journey towards a more sustainable UniCredit.
Discover more about our Integrated Report