Financing the transition to a low-carbon future
Tuesday 27 September 2022
UniCredit is proud to present its 2021 TCFD Report detailing our continued commitment to supporting the energy transition and progress across the TCFD framework.
The Financial Stability Board created the Task Force on Climate-related Financial Disclosures (TCFD) to improve and increase reporting of climate-related financial information. UniCredit’s 2021 TCFD Report represents our third disclosure aligned to the TCFD recommendations first published in 2017.
Andrea Orcel, CEO of UniCredit, commented: “We publish our annual TCFD Report in unprecedented circumstances. The unfolding war in Europe, the cost-of living crisis, the after-effects of the pandemic and the continuing climate emergency are impacting individuals across the world and will continue to do so. But in challenge there is possibility. The war has shown us the urgency of resolving the question of energy security. It should give us greater motivation and focus in our work towards a greener future. We recognise that the longer-term global threat of climate change remains unchanged and ever more pressing, and we remain committed to supporting our clients through any challenges they face in this transition.”
Fiona Melrose, Head of Group Strategy and ESG, added: “It is more important than ever that we see the possibilities in this transition. And it will be imperative that we continue to refine our ability to understand our clients’ financed emissions and work closely with them on an orderly and gradual path of decarbonisation. Our ESG Strategy is designed with the purpose to help us see past the immediate bottom line and short-term financial goals. UniCredit’s unparalleled positioning across Europe will enable us to play a critical role in our whole continent’s transition to a more sustainable future. We do not want to merely support the green transition; we want to lead it.”
The TCFD framework consists of four key pillars: Governance, Strategy, Risk Management, Metrics & Targets.
With regards to Governance, UniCredit ensures constant oversight of climate related issues, which are discussed on a regular basis by the Board of Directors and by the ESG Committee of the Board. In addition, our Remuneration Policy and comprehensive scorecards formulated for the CEO and Top Management include financial and ESG targets aligned to our Strategic Plan. Furthermore, we have put in place training initiatives focused on ESG and climate change related risks and opportunities at all levels of the bank to address different needs.
On Strategy, we defined a new UniCredit ESG Strategy as a key component of the Group’s 2022-2024 Strategic Plan, aimed at embedding sustainability at the heart of all we do. We have also released a Sustainability Bond Framework, as an important tool for the implementation of our ESG Strategy and published our inaugural Sustainability Bond Report detailing the allocation and impact of our Green and Social Bonds. Furthermore, we continue to steer our behaviour with clear commitments, including an update to our Oil & Gas sector policies, adherence to the Tobacco-Free Finance Pledge, and membership of the Net-Zero Banking Alliance with a net-zero target for own emissions by 2030 and for financed emissions by 2050.
Our Risk Management approach considers Transition Risk, Physical Risk and Data Retrieval Strategy with constant monitoring and updates on relevant exposures across the business.
Lastly, on Metrics & Targets, we continue to promote business that supports natural capital with a target of 150 billion euros of cumulative ESG volumes by 2024, of which 25 billion euros is for new environmental lending. UniCredit already achieved 36.6 billion euros of cumulative ESG volumes by 1H22 as well as issuing four own Green Bonds aligned with the Group Sustainability Bond Framework.
We also continue to reduce our environmental impact, achieving a 32% reduction in our greenhouse gas emissions in 2021 compared to 2017. Most of the electricity in our buildings comes from renewable sources (100% in Italy and Germany) and we disclose consumption intensity metrics to monitor and manage our environmental footprint.
To discover more, please read the full report here>