2023 Integrated Report

Unlockingtransformation,
together.
For our clients, our people,
and our communities.

Our manifesto

We believe inEurope’s potential.

Uniting behind a vision of abetter bank and a better future.
A transformation for our clients,
our people, and our communities.
Demonstrating what it means
to be the Bank for Europe’s future.

For everyone,
everywhere.

Our manifesto

Leading by example
We are empowering communities to progress
while becoming the Bank for Europe’s future.
Because we believe leading by example
is the right thing to do, we are setting a
new benchmark for banking by embedding
sustainability throughout our operations.
We are partnering with our clients for a justand fair transition, supporting communities
and society with our Social Strategy, steering
our behaviour with clear commitments, andenriching our risk and lending approach.
To read more about our Strategy
see pages 46–79–

For all our stakeholders

and ourcollective
future...

Our manifesto

For our colleagues

who define
our culture…

Creating an engaging,positive working environment
Our Culture is built on the synergy of our
Purpose, our Values of Integrity, Ownershipand Caring, and our Ambition. We are creating
an engaging and positive working environment
to build employee awareness and set the tone
for our Culture. We empower our people toprogress throughout their professional lives bylistening to their needs, valuing and developing
their skills, and promoting diversity, equity,
inclusion and well-being.
To read more about our impact on
Human Capital see pages 86–99–

Our manifesto

Empowering communities
to progress
We have a valuable role to play in improving
the lives of people across the continent. We are
forging close bonds with our local communities,
using their detailed understanding of local
practices, economies and cultures to enable
individuals, groups and countries to realise
their potential. We invest in close relationships
with our main stakeholders, creating
long-term value and supporting individualand collective growth.
To read more about our impact on Social and
Relationship Capital see pages 100–125–

For our customers and communities

and their long-term
prosperity...

Our manifesto

For our retail banking customers

who want
quick, easy,
accessiblebanking…

Meeting the needs andchallenges of rapid change
We want every digital interaction with UniCredit
to be driven by personalisation, automationand data. In line with our four Digital & Datapriorities – pursuing an optimised investment
model, bringing core competencies in-house,designing a new way of working, and focusing
our client approach on value creation – we are
optimising and innovating our systems andprocesses. Our aim is to provide clients withsimple, secure, user-centric solutions that meetthe needs and challenges of rapid change.
To read more about our impact onIntellectual Capital see pages 126–137–

Our manifesto

Making a tangible difference
Our approach to the preservation of plants,
animals, air, water, soils and minerals – ourNatural Capital – is based on tangible actions
that generate direct and indirect impacts.
We are committed to minimising negativeand maximising positive impacts. Our ambition
is to preserve Natural Capital for the benefit
of both the communities in which we operate
and the Group itself – accompanying our clientson their green transition journey while reducing
our own environmental footprint.
To read more about our impact on
Natural Capital see pages 138–149–

For all our stakeholders

and the planet
we call home...

“At UniCredit,

we are transforming
to create value
for everyone, everywhere.”
Andrea Orcel
Chief Executive Officer & Head of Italy UniCredit S.p.A.

Contents

418

4 Chief Executive
Officer’s statement
6 2023 Milestones
Timeline: A year of
powerful transformation
14 Letter from Head ofGroup Strategy & ESG

18 UniCredit at a glance
19 Our business
20 Value creation
22 Our Purpose
24 Our market context
26 Stakeholder Engagement

Overview

Download our UniCredit 2023
Annual Reports and Accounts
See the microsite
See all the milestones thathave helped make this a yearof powerful transformation
for UniCredit
See the microsite

Our Context

Overview
Overview

Our Strategy

86

Human Capital

100

Social and
Relationship Capital

126

Intellectual Capital

138

Natural Capital

UniCredit 2023 Integrated Report

A.1 GRI Content Index
A.11 Making the connection withUN Global Compact Principles
and GRI Standards Disclosures
A.12 SASB indicators index
A.13 Independent Auditor’s Report200

Supplement

Supplement

Financial Capital

Annexes

Annexes80

182

Governance, Risk and Compliance

Our Impact: Leveraging our five
Capitals to shape a sustainable futurefor our clients and communities

152 Governance
160 Risk Management
180 Compliance

Our Impact

80

Governance, Risk
and Compliance

Our Strategy

47
Our ESG Strategy
60 Our transition to Net Zero151

Our Context

46

S.1

Determination anddistribution of Value Added
S.2 EU Taxonomy Regulation
S.38 Information on Tax Management
S.46 Main partnerships and affiliations
S.50 GovernanceS.53 Risk Management
S.60 ComplianceS.67 Stakeholder Engagement
S.69 Human Capital
S.78 Social and Relationship Capital
S.83 Natural Capital1

Report structure
UniCredit Group (hereinafter also “the Group”) has preparedthis document in compliance with the requirements of Art.
3 and 4 of the Legislative Decree 254/2016, which implements
European Directive 2014/95/EU in Italy.
The Integrated Report (the “Report”) has been approved by the
Board of Directors of UniCredit S.p.A. on 24 February 2024 andhas been produced by Group Strategy & ESG, in collaboration
with the all relevant functions. In line with the requirementsof Legislative Decree 254/2016, the process of preparing theConsolidated Non-Financial Statement (“NFS”, included in thisdocument) is regulated by a specific policy, issued in 2017 andupdated in 2023. As foreseen by Art. 5 of the Legislative Decree
254/2016, this document constitutes a separate report marked
with a specific heading, to allow its connection with the NFS
required by the regulation.
The Report should be considered in its entirety, including
its Supplement, which is here enclosed or available on the
Sustainability section of our website (www.unicreditgroup.eu)
and contains a number of essential indicators andquantitative data.
The sustainability information included in the 2023 Integrated
Report, including its Supplement, are reported in accordancewith the GRI Standards for the full year 2023, and the “Financial
Services Sector Disclosures,” both issued by the GRI – Global
Reporting Initiative. The GRI 1 used is GRI 1: Foundation
2021. The performance indicators reported in accordance
to the adopted guidelines are included in the “GRI Content
Index” section. The principles contained in the International
Framework, published by the International Integrated
Reporting Council (IIRC), were also used as the reporting
framework. Figures and information relating to the Scope 1,
Scope 2 and Scope 3 classes of greenhouse gas emissions
have been prepared in accordance with “The Greenhouse Gas
Protocol: A Corporate, Accounting and Reporting Standard(Revised Edition, 2004)” as well as the “GRI Sustainability
Reporting Standards.”
In order to guarantee maximum transparency to the market
and to its stakeholders, this Report contains the main policiesof the Group, the management models and the results achievedin 2023 relating to the issues expressly referred to by Legislative
Decree 254/16 (environmental, social, personnel-related,
respect for human rights, anti-corruption, diversity of themembers of board and other aspects related to sustainability),
as well as the main risks identified connected to theaforementioned issues and the related management methods.

2

The information in the Report addresses the topics that wereidentified as material and their associated indicators, which
represents its most significant impacts, both positive andnegative, on the economy, environment, and people, including
impacts on their human rights, or could have a substantial
influence on the views and decisions of its stakeholders.
The materiality analysis, updated in 2023, was fundamental
to determine the topics to be reported on, in line withstakeholders’ needs. Following the analysis of the relevant
topics indicated in Art. 3 of the Legislative Decree 254/2016,
the use of water, considering the activity carried out and thespecific business sector, was not considered significant for
the representation in this NFS and therefore is not reported.
The content of this Report refers to the year 2023 and, inparticular, to the activities of UniCredit during the year, unlessotherwise stated. Figures relating to previous years are provided
for comparison and refer mainly to 2022.
Concerning the reporting perimeter, in line with previous
years the Legal Entities consolidated on a line-by-line basis
by UniCredit S.p.A. have been analysed in order to identify therelevant companies and ensure the Report would provide aproper understanding of the Group’s activities, development,
performance and relevant impacts. In particular, with reference
to year 2023, the reporting perimeter represents about 99
percent of Group’s FTEs and headcount.
Community contribution and initiatives in support ofcommunities included in the “Social and Relationship Capital”
chapter include data and information related to UniCredit
Foundation – Fondazione di studio in onore del Cavaliere delLavoro Ugo Foscolo (the “UniCredit Foundation”), not includedin the perimeter of the consolidated financial statements.
The data reported in the paragraph of the Supplement“Compliance – Whistleblowing” refers to the Legal Entities
currently monitored and considered relevant by Group
Compliance. For figures related to staffing and calculationsof the Value Added, the perimeter of the Report corresponds
to the 2023 consolidated financial statements, unless otherwise
indicated. In accordance with GRI 207 (Tax: 2019), taxation data
are related to the fiscal year 2022. The information’s source ofthe disclosed data comes from documents reported to the fiscal
bodies as required by law. Any conditions that may limit thescope of the data are clearly disclosed throughout the Report.
In addition, a SASB content Index is included, which contains all
the indicators of the standard covered by this Report.

UniCredit 2023 Integrated ReportOverview
Our Context

Business ethics
Climate and environmental impacts
Digital security

Digitalisation and innovation

Diversity, inclusion and employee
engagement
Lean and solid bank

Political and societal changes

Annexes

Positive impact on society
Responsible tax practices

Supplement

UniCredit signed the UNEP FI Principles for Responsible Banking(PRB) in 2019. The Group set 3-years targets in 2023 related to
the Financial Inclusion and Financial Health Commitment, anddisclosed first results achieved in this year. The full PRB Reportdisclosing the progress made in implementing the principles
will be published in line with this deadline. The disclosurealigned with the Task Force on Climate-related Financial
Disclosures (TCFD) recommendations related to 2022 wasissued in July 2023.

In order to guide and support the reading of ourIntegrated Report, through the icons below you canfind a visual representation of the material topics
that are presented in our materiality analysis.
The same topics are reported in the first pageof each relevant chapter. They can be used as areference while reading the report.

Governance, Risk and ComplianceIn December 2021 UniCredit presented the new strategicplan 2022-2024 (“UniCredit Unlocked”), of which sustainability
represents a fundamental lever. This year, the disclosure on
UniCredit Unlocked Strategy is fully depicted in the Annual
Report, in a dedicated section, while the ESG Strategy is
described in this Report, in “Our Strategy” chapter.

Material topics

Our Impact

The NFS included in this Report has been externally assured
by an independent assurance provider in accordance withthe criteria established in the principle “ISAE 3000 Revised”.
Its conclusions regarding the compliance of the information
provided with Art. 3, paragraph 10, of the Legislative Decree
254/2016 are set out in a separate external assurance report.
The limited assurance did not cover the information required byArt. 8 of the European Regulation 2020/852 and the applicationof the instructions provided by SASB. For the fiscal year 2023
and anticipating what will be required in 2024 under ESRS,
UniCredit has made some considerations regarding financial
materiality. These complement the considerations regarding theimpact materiality based on the GRI standards.

Our Strategy

To ensure reliability, the Report includes directly measurable
quantities and limits the use of estimates as much as possible.
Potential estimates are based on the best available informationor spot checks. Restatements of previously published figuresthat have been provided for comparison are clearly indicatedas such.

Value to clients

The report also includes the disclosure obligations under
Art. 8 of the Disclosures Delegated Act supplementing the EU
Taxonomy Regulation (2020/852), which requires financial
companies to report eligibility and alignment’s key performanceindicators (KPIs), for calendar year 2023.
UniCredit S.p.A.
A joint stock company
Registered Office and Head Office in Milan:
Piazza Gae Aulenti 3 – Tower A – 20154 Milano, Italy
Share capital Euro €21,133,469,082.48 fully paid in, Fiscal Code,
VAT number and Registration number with the Company Registerof Milan-Monza-Brianza-Lodi:00348170101
Registered in the Register of Banking Groups and Parent Companyof the UniCredit Banking Group, with. cod. 02008.1; Cod. ABI 02008.1
Member of the National Interbank Deposit Guarantee Fund and of
the National Compensation Fund
Stamp duty paid virtually, if due – Auth. Agenzia delle Entrate,
Ufficio di Roma 1, no. 143106/07 of 21.12.2007

UniCredit 2023 Integrated Report3Chief Executive Officer’s statement

4

UniCredit 2023 Integrated ReportOverview
Our Context

2023 was a year
defined by transformation

Our Strategy

Dear Stakeholders,With our pan-European footprint and expertise,resources, and reach across 13 countries, we have beenable to make a difference in a way other banks cannot.

We were also the first Italian bank to sign up to
the Finance for Biodiversity Pledge, calling for andcommitting to taking ambitious action on biodiversity
to reverse nature loss in this decade, and joined
the UNEP FI Principles for Responsible Banking
Biodiversity community.
We have also stepped up for our 15 million clients
who are integral to shaping a world that is fairer, greener,
and more sustainable. We have provided clients withthe tools, support, and knowledge they need to transition
fairly and justly, particularly in high-emitting sectors.

That is why we are championing the “S” of ESG
at UniCredit. In 2023 we introduced our new Social
Strategy to embed the social component of ESG into
our overall strategy and reached €8.7bn of social lending.
We invested in new projects with potential for long-term
success, focused on financial inclusion and education
to support vulnerable and disadvantaged people, andempowered our clients to be more socially oriented.

Supplement

In 2023 we have reached €82bn of ESG volumes andcontinued our commitment to Net Zero by disclosing
2030 targets for three of the most carbon-intensive
sectors within our portfolio (Oil & Gas, Power Generation
and Automotive) and the most recent addition of theSteel sector.

We have not succeeded if we have neglected the social
needs of our communities or left anyone behind in pursuitof Net Zero. Over the past year, high inflation and interest
rates have posed a great challenge for individuals, families
and businesses across Europe and they needed our
support more than ever.

AnnexesThis is a responsibility we have taken seriously at
UniCredit. ESG is the lens that we have used to build andtransform our Bank and over the past year, it has guided
our decision-making.

Governance, Risk and Compliance

At UniCredit, true success is measured by the impact
we are having across Europe, for the people, businesses,
and communities we serve.

Our Impact

2023 was a year defined by transformation. The culmination of a three-year
commitment to UniCredit Unlocked that has seen our Bank go from strength
to strength. We are now a bank that is profitable and delivers consistent growth,
but that is not the total measure of our success.

Our transformation has not been solely about unlocking
our Bank’s potential, but the potential for others. I believe
we have done this.
We all know that meaningful and lasting change cannot
be achieved overnight, but ESG will always be a key partof our strategic plan and our business model.
After three years, we are in an even stronger position, with
our scale, reach, and commercial momentum, to makea difference now and in the future.
2024 will be about continuing to embed ESG into our plansfor growth and leveraging our strengthened position topush even further. To shape a better future for our people
and for the planet.
To set a new benchmark and to truly be the Bank forEurope’s future.

Andrea Orcel
Chief Executive Officer UniCredit S.p.A.

UniCredit 2023 Integrated Report52023 Milestones Timeline

A year of powerful transformation
Together, every change we make, every month of the year,
throughout all our businesses across all our geographies, allcontributes to delivering the biggest transformation in our history.
Review all our milestones online

Introducing the
euro as Croatia’s
official currency

Read more on the microsite

Becoming the mainsponsor of the San Carlo
Theatre in Naples

UniCredit named oneof the Top Employers
in Europe

Supporting culture andterritorial social growth

January

UniCredit launchedBank iD service

Making everyday life moreconvenient for our clientsin the Czech Republic

Building new
hospitals in Angola

UniCredit provided loans
for three new hospitals

6

UniCredit underwrites€7 billion acquisition
of GD Towers from
Deutsche Telekom

UniCredit 2023 Integrated ReportOverview

Our Context

Key to icons
ESG

Finance

Digital & Data

Clients

UniCredit Foundation

People & Culture

UniCredit included
as one of the Equileap
Top 100 genderequality companies

Our Strategy

Strategy

Positive recognition for ourefforts across the bank

Our Impact

Eni and UniCredit
partner around
Open-es

100% single-use
plastic-free bankGovernance, Risk and Compliance

An open alliancefor sustainable growthand collaboration

Reducing the use of
millions of plastic bottles
in a single year

Annexes

February

Supplement

March

Project financing for
Enel’s 3SUN photovoltaic
Giga Factory
Net zero targets set for
carbon-intensive sectors

UniCredit 2023 Integrated Report

Supporting the expansionof what will become
Europe’s largest factoryof high-performance bifacial
photovoltaic (PV) modules

Launch of our firstGroup-wide Volunteering
Community
Encouraging our employees
to contribute one working
day each year72023 Milestones Timeline
Supporting
Gerresheimer’s growthplan in Germany

Helping to raise €272 million incapital for High Value Solutions
and Medical Devices

UniCredit Bulbank
opens completely
cashless branches

Supporting the shift to acashless society in Bulgaria

April

May

1Q

Growing our partnershipwith Mastercard

Share buy-backprogramme

A first for a large commercial bankin Europe – putting in place, an at scale
single card multi market strategy€3.343 million share buy-backprogramme receives approval

Relentless transformation

9th consecutive quarter of profitable
growth and best 1Q ever

8

UniCredit 2023 Integrated ReportOverview
Our Context

UniCredit acted as
financial advisor to Dufry
Supporting them with theacquisition of Autogrill SpA

Our Strategy

Aimed to renew thecommercial offer of morethan 20 insurance products

Governance, Risk and Compliance2nd tranche of
UniCredit per l’Italia

Our Impact

Launch of a Global Bank
Insurance platform
with Allianz

Supporting the disposable
income of individuals andhouseholds, and liquidityof Italian businesses

Annexes
Supplement

June

2nd edition of
our Culture Day

Sponsoring Pride paradesin Milan, Vienna, and Munich

Reinforcing our strong commitment
to diversity, equity and inclusion andsupport to the LGBTQIA+ community

UniCredit 2023 Integrated Report

Reflecting on our culturaltransformation results€292 million
IPO for Ferretti

The first ever Hong Kongand Italian dual listing92023 Milestones Timeline

Launch of ‘Re-power your future’
with Junior Achievement Europe

Hidroelectrica
IPO in Romania

A €6.5 million programme to empower
youth and prevent early school leaving

UniCredit acted as Joint
Bookrunner in what was thelargest IPO in Europe in 2023

Launch of €1 billion
Green Bond for theFederal State of Hesse
Supporting this pioneer ingreen financing in Germany

Anotherrecord-breaking
set of results

Best 2Q and 1H ever

2Q

July

UniCredit and Trustpair
announce partnershiparound IBAN check
Tackling fraud in B2B
payments to protect
our clients

10

MSCI upgrade UniCredit’s
ESG rating to ‘AA’
In recognition of the banks
efforts to mitigate social risks
and the robust integrationof ESG practices

UniCredit 2023 Integrated ReportOverview

As both a Global Partner
and the exclusive Global
Banking Partner

Our Context

Sponsorship ofthe Louis Vuitton
37th America’s Cup

Our Strategy

Installation of
an innovative tree
irrigation system

At our HQ in Hungary where
we are now irrigating around200 surrounding trees

Our Impact
Governance, Risk and Compliance
Annexes

AugustSupplement

September

Renewing our main
partnership for Filarmonica
della Scala’s 2024 season

Publication of ourSustainability Bond Report

Helping to foster musical excellence
and culture in Italy and beyond

Setting out how our bonds
have funded renewable energy,
green buildings and social
impact initiatives

UniCredit 2023 Integrated Report112023 Milestones Timeline

UniCredit Foundation
and Teach For All
renewed partnershiponemarkets
Fund celebrates
its first anniversary

Furthering our commitment toboosting education and teaching

A family of eighteen fundswith €3 billion of assets
under management

Continuing to deliver
quality profitable
growth while investingfor the future

3Q

OctoberNovember

The launch of the UniCredit
Art Collection website

UniCredit and Alpha
Services and Holdings,
announce merger

Making art accessible for all
and drawing on our long traditionof supporting arts and culture

Creating a strategic partnershipin Romania and Greece

Opening of our Innovation
Hub in Germany
Creating a place where
employees can actively shape
the future of the bank

12

UniCredit 2023 Integrated ReportOverview

Launch of our first everKids4Kids & Donation Day

Our Context

Supporting children in needacross Europe

Our Strategy

Our inaugural ESG Day

Our Impact

With our mission of Empoweringa Just and Fair Transition we
fostered new dialogues andraised awarenessGovernance, Risk and Compliance

Winner of the Global
EDGE Certification
for gender equity
and inclusion

The first pan-European bankto win this certificate

Annexes
Supplement

December

Our transformation
continues into 2024

4Q
Our transformation
journey: record-breaking
results, sights set on
new heights€100 million+ Equity
Private Placementfor D-Orbit

The largest in Italy in 2023

Bank of the YearIn a first for the bank we were
hailed as Global ‘Bank of the Year’for 2023 by The Banker
UniCredit 2023 Integrated Report13

Letter from Head of Group Strategy & ESG

14

UniCredit 2023 Integrated ReportOverview
Our Context

UniCredit’s ambition

Our Strategy

is to be the Bank forEurope’s future

Our Impact
Governance, Risk and Compliance

One of the key takeaways from our first ESG Day, an
event fostering stakeholder dialogue you can read more
about on page 28, was the need for cathedral thinking:the concept of laying the foundations of our future world,with an acknowledgement that it may be the generations
to come, and not us, who are there to enjoy it. This is thereal definition of sustainability that we want to fosterand support.

Annexes

Our world faces many challenges and organisations likeours need to step up and help shape a fairer, greener future.
We believe that leading by example is the right thing to do.
Our commitment to our communities, our people and ourplanet goes far beyond simply ticking a box – our ESG principles
are embedded in everything we do, and one of the five strategic
imperatives of our long-term UniCredit Unlocked strategy.

Supplement

All banks have an important role to play when it comes to
ESG – and it is one that goes far beyond lending. But we believe
UniCredit is uniquely placed to be a true pioneer in creating
behavioural change, helping clients in higher-emitting sectors
to transition while exploring how we can integrate ESG into
our own day-to-day operations to create a new benchmark in
our industry.
Our unique footprint across Europe, with expertise, resources
and an on-the-ground presence in 13 countries, means we canmake a tangible difference in ways other banks simply cannot
match. We are bigger, with a greater presence, and we havea bigger opportunity to drive change.

UniCredit 2023 Integrated Report15

Letter from Head of Group Strategy & ESG

Our 15 million clients are at the centre of our Bank and ourdecision-making, and we are directly influenced by their needs.
But we also have a responsibility to hold them to the same highstandards we set ourselves. It is our responsibility to bring themwith us and support them in their own transition as we progress
towards our ESG targets.
One of the most powerful ways we can do this is throughthe financing of environmental initiatives. We are empoweringclients and communities alike to progress by supporting
renewable energy projects and energy efficiency efforts.
We also want to have a positive social impact in line with
our responsibilities as a social actor – assisting our clients andcommunities in making meaningful progress towards a moresustainable, inclusive, and equitable society in the long term.
Our swift progress against our ambitions is testament to thestrength of our commitment – and to the whole Group pulling
together in the same direction. We are striving to reduce ourdirect and indirect environmental impacts while supporting
Europe’s green transition.
When we joined the Net Zero Banking Alliance in 2021, we
set Net Zero targets of 2030 for our own emissions and 2050
for our financed emissions portfolio. Since then, alongside
our actions to reduce our own emissions, we have also
set additional interim 2030 targets to reduce our financed
emissions in three of the most carbon-intensive sectors in ourloan portfolio: Oil & Gas, Power Generation, and Automotive.
In January 2024, we added targets for the Steel sector,
in alignment with the Sustainable Steel Principles, of which
UniCredit is a founder. In the coming months we will establish
interim targets for other carbon-intensive sectors, including
Real Estate.

An event fosteringstakeholder
dialogue
One of the key takeaways fromour first ESG Day was the need forcathedral thinking: the concept oflaying the foundations of our futureworld, with an acknowledgement thatit may be the generations to come,and not us, who are there to enjoy
it. This is the real definition ofsustainability that we want to fosterand support.

>12,000

participants (online and in-person)->14,000

visits to our ESG Day landing
page during the event

In addition, we have now published our inaugural transition
plan – as outlined in the Strategy section on page 46. This plan
illustrates how we are turning our commitments into actions,making our targets operational, and ensuring all relevant
functions of the Bank can contribute.

“Our commitment to our communities,
our people and our planet goes far beyond
simply ticking a box – our ESG principles areembedded in everything we do.”Group

Read more on the website
Page 28 Read more

16

UniCredit 2023 Integrated ReportOverview
Our Context

While we are certainly heading in the right direction, challenges
remain that we must rise to meet. We recognise, for example,
that not all the communities we operate in are at the samestage of their journey – and, in some cases, we will needto evaluate the trade-off between environmental impacts
and social repercussions. Both factors are equally important,
but we are realistic about their interaction and where we can
add the most value.

As the traditional scope of ESG broadens, we are also
expanding our focus to embrace nascent topics including
biodiversity and the circular economy. We were the first Italianbank to sign up to the Finance for Biodiversity Pledge and weare a member of the Ellen MacArthur Foundation’s international
charity network to support our approach to accelerating thecircular economy transition across our countries.

Internally, we continue to work hard to embed ESG in everything
we do. This year, UniCredit was the first pan-European bank to
win a Global EDGE Certification for gender equity and inclusion.
Furthermore, in 2023 we provided ESG training for colleagues
at all levels – giving them the knowledge and insights theyneed to make a meaningful impact and drive positive changewith clients and customers.

Also on the horizon are new regulations that will callfor greater transparency and disclosure of ESG-related data.
The EU’s Corporate Sustainability Reporting Directive, forexample, will apply from next year, and it will take considerable
effort for all impacted companies – UniCredit included –to comply. We have already set up a working group to analyse
all applicable requirements and define an adaptation plan tobe implemented during 2024.

Supplement

Our commitment is also in favour of the communities
and vulnerable people for whom we provide a wide rangeof financial education programmes, to increase awarenesson economic topics and reduce social gaps. In 2023 we
continued to support communities through our Social Strategy
focusing on social finance, our own social contribution to ourcommunities, and the support we give our people.

While we remain steadfastly committed to the transition,
it is vital that we also consider the real people who will
be impacted by our policies and help businesses to transition
in a sustainable manner.

Annexes

In 2023, we contributed to the publication of UNEP FI’s PRB“Nature Guidance for Banks” and the Finance for Biodiversity
Foundation’s first paper, “Unlocking the biodiversity-climate
nexus”. Collaborations like these, especially with other financial
institutions, promote the open dialogue needed to truly tackle
the challenges the planet is facing.

Governance, Risk and Compliance

While financing is traditionally where banks can havethe greatest impact, we are also educating our clients andstakeholders on ESG topics and the important role they
can play in protecting the planet and its communities.

Our Impact

We have also taken steps to prevent green and social washing– a serious issue that threatens to undermine ESG initiatives
across industries. To safeguard our reputation and mitigate
the associated risks, we have extended the scope of our activity
to include prevention initiatives including the issuance of ESG
product guidelines.

Our Strategy

In the past two years we have achieved €82bn of ESG volumes
and we will keep supporting our clients in their transition
towards more sustainable business models, committing
to specific ESG penetration targets on Lending, Investment
Products and Sustainable Bonds – which you can read more
about on page 49.

The future of our planet depends on all of us – clients,
colleagues, competitors, governments and many otherinfluential bodies and organisations. We must stand together,be prepared to be counted, and make a concerted effort
to change our behaviour. UniCredit will continue to leadby example.

Fiona Melrose
Head of Group Strategy & ESG€82bn

of ESG volumes
Supporting our clients intheir transition towards moresustainable business models
Page 49 Read more

UniCredit 2023 Integrated Report17

UniCredit at a glance

Who we are
UniCredit is a pan-European
Commercial Bank with a uniqueservice offering in Italy, Germany,
Central and Eastern Europe.
Our Purpose is to empower communities to progress,
delivering the best-in-class for all stakeholders,
unlocking the potential of our clients and our people
across Europe.
Page 22 Read more about our Purpose

Where we operate#3

in Germany#2

customers worldwide

in Central EuropeA#2
in Italy

15m
4
13

#1

in Eastern EuropeB

coverage regions

leading banks

A. Central Europe includes Austria,
Czech Republic, Hungary, Slovakia
and Slovenia.
B. Eastern Europe includes Bosnia
and Herzegovina, Bulgaria, Croatia,
Romania, Russia and Serbia.

18

UniCredit 2023 Integrated ReportOverview
Our Context

Our business
Our integrated and sustainable business model isbased on local excellence, inspired by our Principles
and Values. We are organised across four regionsthat are supported by central structures, with three
product factories and a lean competence centre
embedding Digital & Data.

Our Strategy

While clients access our services through local banks, ourcomprehensive offering to meet their needs is created by ourthree global product factories – Corporate, Individual andPayment Solutions. These factories each deliver best-in-classsolutions, developed internally or through our dynamic
ecosystem of trusted partners.

Our Impact

In 2023, we’ve further reinforced our in-house expertise in
the factories, rebuilding and enhancing the internal solutions
we offer organically, while strengthening our strategic
partnerships with industry leading companies. Our global
solutions leverage local coverage and the benefits of ourGroup-wide scale and scope.

Governance, Risk and Compliance

Our solutions
Corporate Solutions

Individual Solutions

Our inherent strengths are an extensive corporate client basewith unique SME penetration, as well as unique cross-border
positioning that enables us to support clients in their trade,and growth ambitions.

Our inherent strengths are our extensive high-quality products
and services offering, strong partnerships with industry leaders,
as well as our enormous potential to offer clients innovations
that leverage the Group’s scale.

During 2023, we invested further in developing our talent andproduct expertise to covering all corporates’ value added needs
with top-notch comprehensive solutions developed in house.

During 2023, we have reinstalled our internal asset management
factory and issued 18 onemarkets funds in only one year.

Annexes

Combining our in-house capabilities with best-in-class external
expertise (Allianz, Azimut, BlackRock) and products, we areable to offer greater client choice, while our global solutions
and platforms (e.g. our Global Non-life insurance platform)
are available to all clients across our geographies.

Our Corporate portal is a single-entry point for clients to accessour digital product offering, demonstrating the value of ourGroup-wide scale and scope for us and for our clients.

SupplementLife
insurance

Advisory
andFinancingnt

s a t t hece n t r eGroupTrade andCorrespondent
Banking

Cli eProtection

Client risk
management

Funds and
portfolio
management

Brokerage
and assets
undercustody
Payments

Payment Solutions

Our inherent strengths are our unique pan-European
footprint and cross-border positioning, our payments DNA
and advanced technology for data usage.
To unlock our full potential, in 2023, we have set up a Group Payments
solutions factory that has provided a geographical extension of our advanced
International payments offer, almost doubling (vs 2021) the number of corporates
with access to our digital portal. We have also entered into an innovative, multi-market
partnership with Mastercard. Our strategy is delivering on our vision of
being every European client’s first choice for payments.

UniCredit 2023 Integrated Report

19Value creation

How we create value
In 2023 UniCredit completed Unlocked’s first cycle: one thatmoved our Bank from a laggard to a leader, with a uniquely
pan-European footprint, we have delivered overall best-in-classperformance while respecting our ESG framework.

ke t

on

M ar

Financial Capital Page 80 Read more
We have been delivering quality profitable growth across all regions
and offering attractive and sustainable opportunities for our investors,
while preserving capital strength and propelling the future

c

Input

Human Capital Page 86 Read morete x

We are aware of theconstant evolution of
the context in which
we operate and thechanging needs ofour stakeholders.

Page 24

nts at the centreeilCWe support our colleagues throughout their working lives bystrengthening their competencies and promoting diversity,
equity, inclusion and well-being

Social and Relationship Capital Page 100 Read more
We remain committed to generating a positive impact oncommunities and promoting Financial Health and Inclusion,
focusing on the younger generation and education

Intellectual Capital Page 126 Read more
We are intensely engaged in digitalisation to provide services
based on innovative technologies and simpler and safer processest

Our system of corporate
governance promotes
clarity and accountability
while continuing to evolveto ensure long-termsustainable value.

Go

ve

na

Page 152rnceNatural Capital Page 138 Read more
We take care of the environment promoting the shift to a
low-carbon economy and containing our environmental footprint

20

UniCredit 2023 Integrated ReportOverview

Our Context

I
Our Strategy
Our Impact

Risk

----0

Financial Capitalan d

Net Profito€8.6bnGovernance, Risk and Compliance

Outcome 2023
€409bnCustomers Loans

pp

or t

u ni tyHuman Capitalc.35

Page 30c.€17minvested to ensure equal pay
for equal work

Social and Relationship Capital€59.6mSocial contributions

Intellectual Capital+68%

We will maximise thevalue we create throughthe successful executionof our strategy.

te g

y

Page 47

Growth in resources
working in Agile

St

ra

r
Ou

Natural Capitalc.€19bn
Environmental lending
volumes since beginningof 2022

UniCredit 2023 Integrated Report>220,000Financial Education
beneficiaries~15%

Digital Global
Workforce reskilled-28%

Own GHG emissions(scope 1 and 2,
market-based) vs 2021

21

Supplement

Training hours per capita

Annexes

We use our knowledgeof the external
context to manage
risks and capture
opportunities effectively.

Our Purpose

Our Purpose: Empoweringcommunities to progress
Our Purpose should always be front ofmind whenever we make decisions, takeactions, or communicate with colleagues,
clients and people around us.
We believe that working every single day towards
the delivery of our Purpose will give us thefinancial strength to achieve our Ambition
to be the Bank for Europe’s future.
By acting as the engine of social progress,
we are building a Culture that puts our
Values at the heart of our decision-making
and everything we do.
Our Values determine how we act and shapethe decisions that we make every day

Integrity

Ownership

CaringBuilding a new Culture: our progress so far
Our profound journey of Culture Transformation continues atpace and has been marked by many achievements. We havefurther demonstrated our commitment by empowering asignificant number of our employees to reflect on what our
Values mean as an identity – and to explore how that translates
into improving the way we serve our clients and communities.
After having initiated our Culture Transformation in 2022, thisyear we executed our comprehensive plan to bring our Values
to life and shape our behaviour to enable Culture change.

22This year our Culture Sponsors, Culture Champions andNetwork worked intensively to create and execute many
local initiatives in their areas. The outcomes of 50 best-inclass initiatives were presented during the Annual Culture
Progress meeting, demonstrating how our Values are lived
every day, and our Culture progress overall. The meeting is
also an opportunity for collaboration, enabling synergies
and sharing of best practices – which is an area where our
Culture Network really excels.
The first local initiative to be scaled up globally was the“Culture Jour Fixes” initially launched by our team in
Germany. By replicating this format, we involved our frontline branch employees in all the banks where UniCredit
operates. This was done for the first time in 2023, involving
over 23,000 colleagues from almost 3,000 branches.
It was an essential opportunity for them to reflect on
our Values and how they live them in their daily workwith clients.
The second local initiative celebrated another successful
year and recognised the extraordinary contribution of
all our people and more particularly their teamwork byusing Thank you cards to mark the 2023 winter holiday
season Group wide. Launched by UniCredit Hungary, andalready adopted in Germany, this best-practice initiative
acknowledges the roles our people play through theiroutstanding work results, unwavering commitment,
collaborative efforts, and their dedication in embracing andembodying our core Values.
In addition, the year saw us hold 22 Culture Bootcamp
sessions under our Culture learning pillar. Almost 1,100
employees participated, taking a moment to reflect on our
Values and what can be done to bring them to life throughthe actions we all carry out every day.

UniCredit 2023 Integrated ReportOverview
Our Strategy

c.1,100

colleagues participatedacross all UniCredit
countries

colleagues involved in
dedicated workshops
across the Group1

22

bootcamps took
place in Italy, Austria
and Germany1

sf or
eT
ra n

4,000

m a ti o n2023 Main
Initiatives

A pr ofo u

u
nd C

lt u

r

Culture Jour Fixes
in Branchc.23,000 colleagues fromc.3,000 branches took partin a meeting dedicatedto understanding andembedding our Culture

Supplement

Continuing with the Culture
Roadshow to embed our Culture
in all our bank’s geographies

Culture Learning
Through an innovative
training format, ourcolleagues deep dive into
and align themselveswith the cornerstonesof our Culture, Values
and mindset

Annexescolleagues participated(physically and virtually)in Bulgaria, Italy, Czech
Republic, Hungary,
Serbia and Bosnia andHerzegovina Mostar2

Governance, Risk and Compliance

Bringing our V
alfe in 2023
o li
t
s
ue

Our Impact

Culture Roadshow

Our Context

30,000

Second Culture Day – fully
immersive two-day event
spread across numerous
Group and local formats, aswell as unique Metaverse
virtual experience

I

Culture Training

Culture Day

Our Culture Network: The Key Driver Of Culture Change
The foundation of our Culture Network is a crucial milestone
in our Culture Transformation. Its role is to inspire, connect,drive and act as a multiplier of change. In 2023, as ourjourney gathered momentum by tackling key topics andCulture Sponsors
Senior leaders, responsible fordesigning and enabling Culture
activation initiatives

j-processes, and having an impact on Bank departments,
our Culture Network welcomed many new members,
engaging and motivating over 1,500 colleagues to drive our
Culture Transformation.

Culture Champions
Motivated colleagues from
our Group, selected to inspire,
design and roll out Culture
transformation initiatives

Extended Culture Network
DE&I Accountable Executives,
Compliance Business Agents,
Speak-up Ambassadors andEmployee Networks

Annual Culture Progress Meeting
Our Annual Culture Progress meeting took place in Belgrade, Serbia in October 2023. This event offers a key opportunity
for our Culture Sponsors and Champions to share concrete results and achievements with the Group CEO and Top
Management. It is also an opportunity for best practice sharing, cross-fertilisation and collaboration.

1. Numbers referred to 2023 only, cumulative for 2022-2023 – 33 workshops and 1,800 colleagues.
2. Number referred to 2023 only, cumulative for 2022-2023 – 7,000 people.

UniCredit 2023 Integrated Report23Our market context

The key trends and issues
driving our markets
Macroeconomic context– Economic growth has slowed as central banks’ interest
rate hikes gradually filter through to the economy

Euro Area Growth (Real GDP % yoy)3– A tense global geopolitical situation is increasing
uncertainty across global financial markets andexacerbating humanitarian repercussions– At COP28, a historic agreement was reached to transition
away from fossil fuels and reach Net Zero emissions
globally by 2050

2022

3.4

– The Eurozone is witnessing a significant decline ininflation. Prices for basic consumer goods and food have
had the greatest impact on this slowdown

0.5

2023

0.5

2024
2025

1.2

Euro Area Consumer Prices (% yoy)3
2022

8.4

I

2023

5.4

2024

2.2

2025

1.8

Stakeholders
Consumers:

Companies:– Globally, 64% of consumers are highly concerned
about sustainability, and their worries are mounting4– Companies are broadening their commitments tonature beyond carbon, with 34% of European companies
in the Fortune Global 500 having targets for three or moredimensions of nature6– 12% of consumers are willing to pay more forsustainable products4– More than three quarters (77%) of EU citizens regard
climate change as a very serious problem, ranking theseriousness of climate change between 7 and 10 on ascale to 105– Almost 4 in 10 EU citizens say they are personally
exposed to environmental and climate-relatedrisks and threats5– According to the CDP, Clarity AI latest report on first year
EU taxonomy disclosure, of 1,700 NFRD companies thatpublished EU Taxonomy this year, c.600 identified theirrevenues and spending as part of their transition plans,c.300 have validated science based targets, both of whichcorrelate to higher taxonomy alignment overall

EU citizens who regard climate change as a very serious problem (%)
Other

Seriousness ranking
of climate change
between 7 and 10

24
76 Very serious
problem

1

2

3

4

5

6

7

8

9

10

3. Estimates based on UniCredit Research (February 2024).
4. Bain & Company, The Visionary CEO’s Guide to Sustainability, November 2023.
5. European Union, Eurobarometer, Climate Change, July 2023.
6. McKinsey & Company, Companies are broadening their commitments to nature beyond carbon, December 2023.

24

UniCredit 2023 Integrated ReportOverview

Our Context

I

Investors
Investors interested in inside-out reporting (%)
Other

Our Strategy– In addition to their interest in how sustainability affects
financial performance (outside-in reporting), 75% ofinvestors want to know about the impact a company hason the environment or society (inside-out reporting)725

Our Impact– Nature and Biodiversity have started to capture
investors’ attention, as evidenced by their desire to
identify investment opportunities in nature conservation
or ecological-improvement projects. These are becoming
increasingly available to private investors throughmechanisms such as debt-for-nature swaps andcarbon credits8

75 Investors– Power generation is of particular interest to investors,
but all mitigations have strong investor support9. Solar,
smart grid technologies and utility-scale storage areamong the top three areas for investment

Governance, Risk and Complianceinterested in theimpact a company
has on theenvironment orsociety

Regulators
EU framework for sustainable growth

EU Green Deal EU to be
climate neutral by 2050

European Commission
announced theRenewed Sustainable
Finance Strategy inthe framework of theEuropean Green Deal

2022

2023

2024

Disclosure on
environmentally
sustainable activities(eligibility) basedon the Taxonomy
Regulation (Art. 8– Reg. 2020/852)

Disclosure on first set
of KPIs for EBA Pillar 3
regarding climate risks,
mitigation actions andinstitutions’ strategy,
governance and risk
management framework

Disclosure on
environmentally
sustainable activities(Green Asset Ratio)
based on the Taxonomy
Regulation (Art. 8 and
EBA pillar 3)

European Commission
adopted a proposal fora Directive on Corporate
Sustainability
Due Diligence

Additional reporting
requirements foradverse sustainability
impacts at the financial
product level apply
and for Art. 8 or 9 SFDR
products (light anddark green)

Application of new rules
set out by the Corporate
Sustainability
Reporting Directive,
with first reports to be
published in 2025 for2024 data

Supplement

2021

Annexes

2019

Industry trends– Demand for critical minerals for clean energy
technologies is expected to increase rapidly, by threeand-a-half times to 2030 in the IEA Net Zero Emissions
by 2050 Scenario, which shows demand for criticalminerals growing10– Food and agriculture companies urgently need to raise
their ambitions on sustainability and health to build more
future-proof and competitive businesses: food companies
that seize the initiative can benefit from a potential
15% five-year revenue uplift vs a 43% revenue decline
for companies that fall behind, based on a scenario ofincreasingly aggressive regulation4

7. PwC’s Global Investors Survey 2023.
8. MSCI, Sustainability & Climate Trends to Watch 2024.
9. BCG, Rockefeller Foundation, 2023 Climate Finance Market Survey.
10. IEA, Critical Mineral Market Review 2030.

UniCredit 2023 Integrated Report25

Stakeholder Engagement

Strengthening stakeholder
relationships
Listening to the full range of our stakeholders iscentral to how we work. We continually seek their
feedback to strengthen stakeholder relationships
and improve how we meet their needs.

We encourage our stakeholders to share their views andconcerns, and work hard to respond quickly and accurately.
Gathering and analysing stakeholder feedback not only provides
us with valuable insights into their needs – it also helps us
manage the risks and opportunities we face and underpins our
drive to achieve long-term sustainability.
In 2023, we continued to leverage a broad range of stakeholder
engagement tools:

Dialogue tools with stakeholders

Clients
Channels– Client satisfaction assessment– Brand reputation assessment– Mystery shopping– Instant feedback– Focus group, workshops, seminars

Key facts

428,513clients and prospects interviewed
for our client satisfaction survey

Read more in the Social andPage 100 Relationship Capital chapter

Colleagues
Channels– Internal clients’ perceptionsof headquarters’ services– Group Intranet Portal– Departmental online communities
Page 86 Read more in the Human Capital chapter

26

Key facts

30,000colleagues participated in
the Culture Day across all
UniCredit countries

UniCredit 2023 Integrated ReportOverview

Our Context

I
Our Strategy

Investors/shareholders– One-on-one and group meetings, calls– Shareholders’ meeting

Key facts284
meetings

roadshows withinstitutional investors

Governance, Risk and Compliance

Read more in the Social andPage 100 Relationship Capital chapter

25

Our Impact

Channels– Quarterly webcasts and conference
calls to present results

Regulators

Read more in the Social andPage 100 Relationship Capital chapter

Key facts
Annexes

Channels– One-on-one and group meetings, calls

Proactive engagement

Supplement

and contribution to the debate
on the regulatory framework

Communities
Channels– Surveys– Social media

Key facts

c.964,500
followers on social media

UniCredit 2023 Integrated Report27

Stakeholder Engagement>> ESG Day: Setting a
Deep divebenchmark for stakeholder
engagement
Our ESG responsibilities go far beyond how
and what we finance. We also have a valuable
opportunity to guide our stakeholders andbring them with us as we set new benchmarks
for our industry. We want to be pioneers increating behavioural change – helping clientsin high-emitting sectors to transition whilelooking at how we can integrate ESG into ourown day-to-day operations.
Education and engagement will be an importantpart of that journey, so we need to find new ways tostrengthen our relationships with our clients, our people
and our shareholders. We are committed to listening
to and learning from all our stakeholders, to better
understand the challenges they are facing – in turn
giving us the opportunity to show them how UniCredit
can help how they bank.

Hosting our first ESG Day
To make good on our commitment, in 2023 wehosted our inaugural ESG Day. Months in the making,the one-day event saw more than 12,000 participantsjoin either online from all the countries or in-person
at our Gae Aulenti and Lampugnano offices in Milan.
At its core, the event was an opportunity to stimulate
stakeholder dialogue while continuing to raise awarenessof climate change, social inequalities, biodiversity andthe circular economy, as well as our own role in fostering
the necessary change in mindset.
Attendees included colleagues, clients and partners,
alongside a host of renowned experts who dived into
a series of engaging discussions covering the full
spectrum of ESG topics.

In addition to opening addresses from our CEO andHead of Italy, Andrea Orcel, Head of Group Strategy &ESG, Fiona Melrose, and Joanna Carss, Head of Group
Stakeholder Engagement, participants heard keynote
speeches from Telmo Pievani, Full Professor at the
Department of Biology, University of Padua, and Matteo
Ward, sustainable fashion entrepreneur and CEO andco-founder of WRÅD.
One of the key takeaways from Mr. Pievani’s opening
keynote was the need for cathedral thinking – theconcept of laying the foundations of our future moresustainable world.

Wide-ranging sessions
Elsewhere, the opening panel session – “The road ahead:
Safeguarding the climate in troubling times” – framed
an important discussion. Panellists agreed that, amidst
the complexity, there is still work to be done to fostertransparency, ownership and strong governance whenaddressing the intricacies of climate change. The ideasof new ESG-focused start-ups – such as digital and
AI tools for measuring resource consumption or
extracting raw materials with minimal emissions –provided grounds for optimism.
This was followed by a panel called “The social debate:
Putting the ‘S’ centre stage”, where participants
advocated for a clear multi-stakeholder approachand precise impact measurement for social initiatives,
underpinned by education for clients and communities.

12,112

participants (online and in-person)

14,032

visits to our ESG Day landing
page during the event
28

UniCredit 2023 Integrated ReportOverview
Our Context
Our Strategy
Our Impact
Governance, Risk and Compliance

The event continued with a dynamic and interactive
format where participants were fully immersed in ESG
workshops. Topics included materiality – gathering
feedback from clients, NGOs, investors, partners andour colleagues on UniCredit’s materiality analysis
to support our business strategy and long-term value
creation – climate change and transition, circular
economy and biodiversity, youth and education,and green- and social-washing prevention strategies.

UniCredit 2023 Integrated Report

We also held an interview with Professor Marco Giorgino,
Full Professor of Financial Markets & Institutions at
Politecnico of Milano, on the relevance that governancecould have for the sustainability of a company.

Supplement

The event was intersected by two impressive creativeinterludes – the first an immersive journey through thesights and sounds of climate change, “Silence Makes
Noise”, and the second an inspirational performanceby the AllegroModerato orchestra.

Annexes

There was a dedicated session on two nascent topics
at the heart of UniCredit’s future plans: “Bolstering
biodiversity and shifting to the circular economy”.
The discussion focused on the intrinsic link between
climate change and biodiversity – as the climatechanges, habitats get lost, and so does the biodiversitythat relies on those habitats. Ecosystems are tightlyinterconnected and interdependent, and this balancecan be quickly undone.

We are already planning our ESG Day 2024 and lookforward to continuing our rich and invaluable stakeholder
dialogue throughout the year.

“ The purpose of this event was toenrich our ongoing dialogue with key
stakeholders by creating a space for
impactful discussions around someof the most critical challenges we allface today. This dialogue is fundamental
in helping us fine-tune our approach
as we continue our path to be the
Bank for Europe’s future.”
Rossella Iorio
Head of ESG Service Excellence, UniCredit

Read more on the website

29

Stakeholder Engagement

Materiality analysis

The creation of long-term value for the Group depends
on our ability to meet stakeholder needs. We therefore
carry out an annual materiality analysis to make sure wegather and take into account feedback on bank industry
topics from a variety of stakeholder sources. This process
helps us to identify and address the issues that are mostmaterial to stakeholders, including emerging risks.
During 2023, our impact materiality assessment set out
our progress toward implementing the 2021 GRI Standards
Update. This update guides how we report sustainability
information and is helping us modify our analysis topave the way for the introduction of the new Corporate
Sustainability Reporting Directive (CSRD). We haveassessed sustainability impacts, risks, and opportunities(IRO) across the environmental, social, and governancematters deemed to be material from a double materiality
perspective: impact materiality and financial materiality.

This year’s analysis has led us to make some changes tomaterial topics. We have reduced the list of material topics
from 14 to 10, in line with our understanding of what issignificant to our business and our stakeholders. We havealso adjusted the scope of our material inputs to align withexternal trends. The following material topics, which were
presented in our 2022 analysis, have now been merged into
single topics: the “Bank Solidity” and “Lean and Transparent
Organisation” topics have been merged as “Lean and SolidBank”; “Employee Empowerment”, “Diversity and Inclusion”,
and “Future of Work” have become “Diversity, Inclusion
and Employee Engagement”; and “Business Ethics” and“Fair Business Behaviour” have been brought together as“Business Ethics”.
For each material topic, we have identified the related
impacts, risks, and opportunities – based on our activities
and business relationships, the context in which thesetake place, and our understanding of the stakeholders
most affected.
The list of negative and positive impacts for each material
topic informed our impact materiality assessment.
Also known as an inside-out perspective, this details our
impact on people or the environment, which are both key
stakeholders. The list of risks and opportunities informed
our financial materiality assessment. Frequently referred
to as an outside-in perspective, this identifies the effectsof sustainability matters on our cash flow, financial
performance, financial position, access to finance in the
short-, medium- or long-term, or cost of capital.
The groundwork for our double materiality perspective
involved leveraging different internal and external sources.

30

UniCredit 2023 Integrated ReportOverviewI
Our Context>>

Deep diveSupplement

UniCredit 2023 Integrated Report

In order to outline causality links between
outcomes and banking activities, the new
IMM model builds upon the Theory of Change(ToC), which focuses on expected positive
outcomes, with negative outcomes taken into
account through an impact risks analysis andincluded in the model as a detriment of thepositive outcomes. The perimeter of activitiesin scope is very extensive and heterogeneous,considering both financial and non-financial
interventions and providing a framework toconnect impacts at the activity level to thestrategic results of the Bank and its overall
impact on the goals of relevant stakeholders.

Annexes

The outcome of the analysis is depicted in the materiality
tornado chart on page 32, where we have aggregated theresults from the different internal and external sources forboth, impact and financial materiality. Moreover, the IRO
table (page 33) lists the results of the internal assessment
evaluating actual and potential impact as well as theimpact on our long-term value creation – in terms of risks
and opportunities.

In 2023, we developed an Impact
Measurement Model (IMM) to measure anddisclose our impact on the environment andcommunities, integrating both direct andindirect impacts on E (Environmental)
and S (Social) dimensions.

Governance, Risk and Compliance

Regarding financial materiality, Datamaran takes into
account the annual financial reports from industry peers,
the mandatory regulations and voluntary initiatives fromfinancial markets, and SASB standards regarding capital.

Our Impact

External views were sourced via the Datamaran tool,
which allows us to analyse our material topics from adouble materiality perspective. The tool indicates impact
materiality by leveraging the sustainability reports fromindustry peers, the most significant laws and directives,
and the latest news on our sector in online media andsocial networks.

ImpactMeasurement
Model

Our Strategy

Internally, we deployed our new Impact Measurement
Model (see deep dive below) to provide the actual andpotential positive and negative impacts resulting fromthe Bank’s activities. These activities were prioritised byinvolving and listening to the relevant internal functions, aswell as our ESG department. The list of IROs and a dedicatedstudy of the priorities were submitted to our senior
management (GEC members), who were asked to assess thesignificance to stakeholders in terms of actual, potential, andmagnitude of impact as well as the impact on our long-termvalue creation – in terms of risks and opportunities – to thefinancial effects in the short-, medium- and long-term.

We have developed an internal methodology
based on a unique, holistic, and integrated
approach that considers current practices andinternational standards, such as the UN SDGs,
the EU Taxonomy, the Impact Management
Project (IMP) norms, the UNEP FI Principles
for Responsible Banking, the B4SI framework,and the Integrated Reporting framework.
Our ambition is for the IMM to provide ex-post
assessment and measurement of the impacts
achieved by our intervention for the affectedstakeholders. At the same time, we aim for it
to be a managerial tool for ex-ante impact
evaluation which will enable us to direct financial
resources towards initiatives with greater
potential for generating a positive impact.

31

Stakeholder Engagement

Materiality tornado chart
The materiality tornado chart, shown below, is a key resultof this year’s materiality analysis. The chart is a graphic
representation of the process of identifying and prioritisingmaterial issues by assessing the severity of the impacts, risks,and opportunities related to them, thus applying a double
materiality approach: inside-out (actual and potential impacts
on each material topic) and outside-in (the impact of eachmaterial topic on the Bank’s growth, performance, and position).
The different internal and external sources have been ranked
according to a weighted average approach, where the same
weight has been applied to each source. In the chart, eachscore is classified on a scale from low- (very low) to high+(very high), and each side of the tornado graph represents
one of the impact types, the financial impact and impact
materiality have a scoring system from 0-1.

More specifically, from the impact materiality analysis, thetopics that ranked the highest are Climate and environmental
impacts and Positive impacts on society. The several
commitments undertaken by our Group represent the answer
to these results: the Net Zero progress, the Biodiversity pledge,
and the circular economy new initiatives demonstrate our
impact towards a more sustainable UniCredit. Moreover, we
acknowledge that we have a social role that goes far beyond
lending, assisting our clients and communities in making
meaningful progress towards a more sustainable, inclusive,and equitable society in the long term.
Read more in the Natural Capital chapter andPage 138 Social and Relationship Capital chapter
From the financial materiality analysis, the topics that ranked
the highest are Business ethics and Lean and solid bank. In thatregard, our outstanding Group results prove that we keeptransforming and structurally improving our Bank with a clear
vision, strategy, and quality growth underpinned by capital andoperational excellence. We are introducing several initiatives
to simplify and delayer our organisation while streamlining
our processes.

There is a continuity in the prioritisation of material issues
compared to previous years. Indeed, this year’s materiality
analysis results in Digital security being one the mostoutstanding material issues from both perspectives, impact
and financial. This result is indeed answered by our Digital
Security Strategy that ensures a suitable level of oversight andprotection of digital assets, data, and information. Moreover,in 2023 we established a new organisational structure,
integrating Corporate Security into Digital Security.

Page 80 Read more in the Financial Capital chapter

Page 126 Read more in the Intellectual Capital chapter

Assessing the severity of impacts, risks, and opportunities relating to material issues••••

Business ethics
Climate andenvironmental impacts;-i

Digital security•=©

Digitalisation andinnovation
Diversity, inclusion andemployee engagement
Lean and solid bank
Political andsocietal changes
Positive impact
on society

Responsible tax practicest!]Value to clients
High+

32

High

•

MediumFinancial

Low

Low-

Low-

Low

Medium

•

High

High+

ImpactUniCredit 2023 Integrated ReportOverview

The table of impacts, risks and opportunities, so-called
IRO table, is another key result of this year’s materiality
analysis that will inform our focus and priorities.

The table also outlines risks and opportunities that may cause
financial effects – for example, an impact on the Bank’s cash
flow, financial performance, and position in the short, medium
and long term. This can be seen under “Financial materiality”
in the table below, which covers material information aboutrisks and opportunities resulting from sustainability matters.

Our Strategy

The outcome is a list of six impacts (three positives andthree negatives), three risks, and three opportunities foreach material topic.

Our Impact

For each material topic, we identified the actual and thepotential positive and negative impacts directly caused
by UniCredit’s operations and value chain on people or theenvironment. This can be seen under “Impact materiality”
in the table below, which covers material information about
our impacts on sustainability matters.

I
Our Context

Table of impacts, risks and opportunities

1. Digitalisation and innovation

Governance, Risk and ComplianceBeing proactive, acting promptly and promoting innovation; contributing to social and economic progress and innovation
as well as the well-being of countries, developing products and services to support research and innovation-intensive
industries, by leveraging analytics, as they become increasingly significant, with positive and negative implications
Impact materiality
Actual or Potential

Negative impacts

Actual or Potential

Transformation of the distribution
and production model of the Bank,
making it more sustainable throughgreater digitalisation, the adoptionof cloud solutions, and the widespreadand effective use of analytics andartificial intelligence

ActualPotential failure to manage
innovation and digitaltransformation processes

Potential

Creation of new technology solutions
that enhance the product user
experience through personalised
services and innovative solutions

ActualExclusion of groups that may not
be able to adapt to digitalisation(e.g. due to lack of technology, age,sociological context)

Potential

Development of sustainablefinance products and services
for business growth that support
sustainable transition

ActualPotentially, employees could be
impacted if workplaces disappear
due to man-machine replacement

Potential

Risks

Timeframe

Opportunities

Timeframe

Large investments in digital
infrastructure are required,
yet still risk underdeliveringon customer expectations

Medium term

Positioning and recognition bystakeholders, especially customers,
as an innovative and digital company

Medium term

Unexpected shifts in client
expectations and disruptive
technologies

Medium term

Leveraging new technologies andanalytics (e.g. big data, machinelearning) to enhance the risk
management process

Medium term

Loss of market share due to a noncompetitive and non-inclusive
digital and ESG products offering

Medium term

Development of innovative digitaland ESG product offerings whichreflect client needs in order tocreate sustainable long-term value

Medium term

Annexes

Positive impacts

Supplement

Financial materiality

UniCredit 2023 Integrated Report33

Stakeholder Engagement

2. Lean and solid bank
Being a stable and solid reference point for all stakeholders by building a long-term foundation for financial stability while
supporting all stakeholders in an uncertain environment; being a simple and lean organisation by guaranteeing lean andefficient bank procedures and processes, proposing and offering simple and easy to understand products/services, using
effective and clear communications
Impact materiality
Positive impacts

Actual or Potential

Negative impacts

Actual or Potential

Maximum generation of value andits distribution to shareholders/
stakeholders

ActualDissatisfaction of the company’s
shareholders/stakeholders due topotential reduction in the value ofthe organisation as a result of poor
corporate performance

Potential

Full customer satisfaction in termsof the quality of product or service
provided, including adherence totimelines in delivery and transparent
communications

ActualNegative impacts on customers
and end users caused by
misleading communications andmisrepresentation or in terms of
product and service presentation

Potential

Positive contribution to the healthof economies and socioeconomic
well-being

ActualNo contribution or negative
contribution to the health of
economies or socioeconomic
well-being

Potential

Risks

Timeframe

Opportunities

Timeframe

Uncertain and volatile economic,
geopolitical and environmental
scenarios affecting our short- andlong-term planning

Short term

Strong capital position, with a leanand solid structure increase
stakeholder confidence

Short term

Negative market developments canspread from economies, exacerbating
the Bank’s environment

Short term

Leaner processes can increase our
flexibility and speed of response toexternal challenges

Short termBank’s internal structures not readyto respond to a constant expansionof the regulatory framework

Medium term

Anticipating the regulatory framework
updates can help us expand andstrengthen our businessMedium term

Financial materiality

34

UniCredit 2023 Integrated ReportOverview
Our Context

3. Diversity, inclusion and employee engagement

Our Strategy

Fostering and improving a Culture of inclusion, fairness and respect by promoting equal opportunities in the workplaceand valuing employees’ well-being so all can maximise their potential; enhancing employees’ professional skills andaccelerating their professional development through transparent and fair mechanisms; being committed to managing theimpacts that global trends such as digitalisation and demographic change have on jobs, ensuring that employees are able
to perform new and future jobs well
Impact materiality
Actual or Potential

Promotion of employee well-being
through the implementation of
dedicated well-being activities
and benefits within a healthy andstimulating working environment

ActualAdoption of practices in terms ofwell-being that do not meet
employees’ expectations, withconsequent impacts in terms ofsatisfaction and increased turnover

Potential

Respect for diversity and promotion of
an inclusive corporate climate throughanti-discrimination activities andcorporate initiatives

ActualNegative impacts on employee
satisfaction and motivation due
to discrimination (related to gender,
age, ethnicity, etc.) or other noninclusive practices

Potential

Improved workers’ skills through training
and professional development activities,
general and technical programmes,
also linked to personalised growthand evaluation objectives (e.g. careerdevelopment plans)

ActualFailure to meet staff growth andwell-being expectations, with aconsequent negative impact on
staff satisfaction

Potential

Risks

Timeframe

Opportunities

Timeframe

Low attraction and retention of talent
impacts on succession plans andpioneering in new business areas

Medium term

Transform employees into an
innovative and tech-oriented
workforce, anticipating future trends

Medium term

Disruptive technologies and toughcompetition may force a significant
reskilling of employees

Medium term

Investing in training employees
in modern skills can maintainour leadership in evolving market
conditions

Medium term

Decrease in people engagement
due to lack of incentives in termsof development, inclusion andwork–life balance

Medium term

Becoming an employer of choicewith widespread diversity, a cultureof inclusion and concrete work–lifebalance solutions which encompass
a new, flexible approach

Medium term

Annexes

Negative impacts

Governance, Risk and Compliance

Actual or Potential

Our Impact

Positive impacts

Supplement

Financial materiality

UniCredit 2023 Integrated Report

35

Stakeholder Engagement

4. Climate and environmental impacts
Develop a climate change strategy to manage transition risks and physical risks arising from a changing climate; seizing
related opportunities in order to mitigate the impacts on global temperature and to enhance climate resilience as well as
ecosystems other than climate
Impact materiality
Positive impacts

Actual or Potential

Negative impacts

Actual or Potential

Fostering greater awareness and sharedcommitments related to climate andenvironmental issues across companies
and other organisations

ActualExclusion of clients exposed to
relevant climate and environmental
risks, which in turn might mean lossof financing and economic losses

Actual

Acceleration of business transformationand support for the long-term
development of companies

ActualUnintended environmental
consequences given that climatechange mitigation actions might
negatively impact other ecosystems
and social structures (e.g. biodiversity
loss due to large renewable energy
infrastructures; communities’
displacement; land loss)

Potential

Support for projects and activities
that foster positive environmental
outcomes such as renewable energy
and nature-friendly companies, thereby
supporting regulations and efforts
to enable an effective transition toa low-carbon economy

ActualUnintended social consequences
given that the exclusion of sectors
exposed to climate and environmental
risks could affect social structures(e.g. job losses)

Potential

Risks

Timeframe

Opportunities

Timeframe

Reputational risk – the Bank’s
communications and commitments
could potentially be perceived as
greenwashing

Short term

Integrating environmental criteria
in risk assessment and financing
decisions helps mitigate credit andfinancial risks through a proper
evaluation of the climate/environmental
risks and inclusion in existing processes
and procedures

Short term

Regulatory risk – regulations might
quickly change therefore requiringa strong and costly effort for the
Bank to adapt and change strategy

Short term

Creation and promotion of innovative
financial products focused on green
and sustainable investments, thereby
contributing to the protection of natural
capital through the development andfinancing of activities not related to theorganisation’s core business

Short term

Exposure to environmentally-related
activities can result in the loss ofvalue of assets in response toenvironmental crises or changes
in environmental policies

Medium term

Foster collaboration among
environmental organisations andother stakeholders to develop sharedsolutions and enhance the effectivenessof initiatives and products

Medium term

Financial materiality

36

UniCredit 2023 Integrated ReportOverview
Our Context

5. Business ethics

Our Strategy

Basing our business practices on strong ethical fundamentals: respecting and supporting human rights within oursphere of influence and reinforcing a culture of compliance at all levels of our organisation; recognising the importanceof environmental, social and governance issues and embedding them into specific business strategies; maintaining highstandards for fair business behaviour and responsible procurement practices and expecting senior management andemployees to treat all stakeholders with fairness and respect
Impact materiality

Positive contribution to theachievement of ethical, resilientand solvent institutions

ActualFailure to maintain a strong ethicalcorporate culture could lead tointernal challenges, such as increased
employee turnover, reduced morale,
and weakened commitment to fairbusiness practices

Potential

Positive contribution to the health ofthe economy through access to quality
and transparent financial services

ActualImplementing stringent ethicalstandards may disrupt traditional
market practices, for example,
challenging suppliers or competitorsthat may not be as quick to adapt– this could lead to a complex
competitive landscape and introduce
uncertainties in the industry

Potential

Awareness and dissemination of theculture of ethics and human rights by
the management, employees, business
partners and other stakeholders
increases responsibility and fair
practices across value chains

ActualAn ethical stance may inadvertently
contribute to broader economicchanges with localised negative
effects (e.g. job displacement)

Potential

UniCredit 2023 Integrated Report

Supplement

Actual or Potential

Annexes

Negative impacts

Governance, Risk and Compliance

Actual or Potential

Our Impact

Positive impacts

37

Stakeholder Engagement

5. Business ethics continued
Financial materiality

38

Risks

Timeframe

Opportunities

Timeframe

Risks associated with corporate criminal
liability due to unethical businesspractices, which may result in legal
actions or financial penalties

Medium term

Maintain a high reputation andpositioning among stakeholders
with strong business ethics, byavoiding non-compliance sanctions
and contributing to communities’
well-being; and differentiate the
Bank through ethical branding

Short term

Loss of competitiveness/revenue due toinadequate product and service design,
including abusive clauses, wrong target
audience, misallocation of customer risk
level, etc.

Medium term

Increasing awareness of theimportance of human rights andethics in general within the Bankand client base, helps build a safe
workplace for employees

Short term

Reputational risk related to
non-compliance with ethical standards,
leading to loss of trust among clients,
investors, and other stakeholders

Short term

Opportunities to invest in projects
and companies aligned with ethicalstandards and sustainable principles,
attracting socially conscious investors
and contributing to positive social andenvironmental impacts

Medium term

UniCredit 2023 Integrated ReportOverview
Our Context

6. Political and societal changes
Considering the impacts of political and societal changes on all our banking business activities, in terms of supply
and demand for products and services as well as the well-being of clients and colleagues

Our Strategy

Impact materiality
Actual or Potential

Support and promotion of financial
products and initiatives that fostersocial inclusivity, aligning withevolving societal values

ActualChanges in political and social
regulations may disrupt the Bank’s
operations or require adjustments

Potential

Financial support for projects orinvestments that contribute topolitical stability, enhancing economic
development and investor confidence

ActualChanges in political landscapes may
result in the adoption of economic
policies that inadvertently exclude
certain demographics or industries,
potentially leading to economic
disparities and limiting opportunities
for inclusive growth

Potential

Engagement with community
empowerment programmes,
contributing to social development
and fostering positive relationships
with diverse communities

ActualPolitical and social change might
contribute to the erosion ofsocial cohesion (e.g. tension withincommunities), with potentiallynegative implications for theoverall well-being in societies
where the Bank operates

Potential

Risks

Timeframe

Opportunities

Timeframe

Political and regulatory risk, affecting
the Bank’s ability to operate or comply
with new requirements

Short term

Invest in socially responsible
projects or industries aligned withemerging political and social values,
thereby mitigating regulatory andreputational risk

Medium termSocial unrest or dissatisfaction that
could harm the reputation and the trustof stakeholders

Medium term

Opportunities for the Bank to advocate
for positive social changes that alignwith ethical and sustainable principles,
contributing to long-term stability

Medium term

Challenges related to evolving legal andcompliance requirements in response
to political and social changes, requiring
ongoing monitoring and adaptation andintroducing operational risks

Medium termManage potential sociodemographic
shifts that could impact our businessMedium term

Annexes

Negative impacts

Governance, Risk and Compliance

Actual or Potential

Our Impact

Positive impacts

UniCredit 2023 Integrated Report

Supplement

Financial materiality

39

Stakeholder Engagement

7. Positive impact on society
Understanding the priorities of communities to support sectors and enterprises which can create environmental,social, and economic positive impacts for individuals and the community, fostering a just and fair transition
Impact materiality
Positive impacts

Actual or Potential

Negative impacts

Actual or Potential

Inclusive financial products and services
that cater to underrepresented or
marginalised communities, promoting
financial inclusion

Potential

Potential over-indebtedness of clients

Potential

Support for community development
programmes that can drive positivesocioeconomic impacts

ActualOverreliance on philanthropic efforts
may create dependencies withincommunities, thereby affecting theirlong-term sustainability

Potential

Contributions to various social causessuch as education, health, andcommunity development

ActualUneven distribution of resources
could result in the Bank’s efforts
inadvertently leading to certain
communities receiving more support
than others. This could contributeto disparities and reinforce social
inequalities

Potential

Risks

Timeframe

Opportunities

Timeframe

Risks associated with the financial
performance of inclusive products
and services such as unexpected
costs or lower-than-anticipatedrates of adaptation

Medium term

Opportunities to expand financial
access and education to underserved
communities

Medium term

Reputational risk associated withsocial washing, with potential negative
perceptions if the philanthropic efforts
or support initiatives are not effectively
communicated or implemented

Short term

Strategic community partnerships,
collaborations with localorganisations and community
groups to create sustainable
and impactful programmes

Medium term

A heavy reliance on local economies
may lead to vulnerability in the faceof economic downturns or regional
challenges

Medium term

Establish and promote employee
volunteering programmes that
contribute to local communities,
but also create a positive work
environment for employees

Short term

Financial materiality

40

UniCredit 2023 Integrated ReportOverview
Our Context

8. Digital security
Building and maintaining an environment in which the confidentiality, integrity and availabilityof all data and information are protected from relevant cyber threats

Our Strategy

Impact materiality
Negative impacts

Actual or Potential

Increase in digital skills, knowledge
and opportunities of employees

ActualIncreased difficulty in accessing
products and services of vulnerable
customers with low digital skills(e.g. elderly people)

ActualImproved user experience and increased
digital accessibility of clients, attracting
new customers and solidifying
relationships with existing ones

ActualUser resistance to enhanced security
management if they perceive them as
overly complex or time-consuming,
potentially leading to dissatisfaction

Potential

Increase in the Bank’s detection andresponse capabilities and strengthening
the cybersecurity of sensitive data
and IT infrastructures across thefinancial industry

ActualBreach and loss of customer data andpoor cybersecurity management

Potential

Risks

Timeframe

Opportunities

Timeframe

Threat of critical breakdown andcyber attacks to our ICT systems,
potentially exacerbated by theincrease in smart-working

Short term

Strong and safe ICT systems represent
a building block for stakeholder trust

Short term

Increased risk of data breaches(cybersecurity incidents), as the Bank
may attract more attention fromsophisticated cyber attackers seeking
to exploit vulnerabilities

Short term

Opportunities to partner withcybersecurity innovators, fosteringcollaboration to develop andimplement cutting-edge security
solutionsShort term

The rapid evolution of digital security
technologies as well as regulatory
requirements could pose risks in termsof noncompliance and therefore havelegal consequences, due to challenges
in keeping pace with change

Short term

Enhance the Bank’s reputation
for trustworthiness, which can beleveraged to increase the customer
base and enhance relationships withexisting clients

Short term

Governance, Risk and Compliance

Actual or Potential

Our Impact

Positive impacts

Financial materiality

Annexes
Supplement

UniCredit 2023 Integrated Report

41

Stakeholder Engagement

9. Value to clients
Being close to clients, understanding their needs and promptly developing products and services for families and companies
that support their prosperity and growth (e.g. innovation, internationalisation, research and development) and are goodvalue for money
Impact materiality
Positive impacts

Actual or Potential

Negative impacts

Actual or Potential

Greater financial education leading toan increase in knowledge of participants
within the communities

ActualMisleading advertising and marketingstrategies

Potential

Increased customer satisfaction as
the Bank meets their expectations

ActualFailure to satisfy customers andmeet their expectations (expectation
mismatch)

Potential

Improvement of the user experience

ActualOver-reliance on the Bank’s support
for community development
may create dependencies among
local organisations and withsome initiatives

Potential

Risks

Timeframe

Opportunities

Timeframe

Loss of market share due to a
non-competitive products offering

Short term

Develop a product offer andcommercial strategy which reallyreflects client needs in order tocreate sustainable long-term value

Medium term

Loss of market share and business focus
if banking is not driven by client needs

Medium term

Positively differentiate the Bank’s
brand, attracting clients alignedwith these values

Medium termOver-reliance on supporting local
economies may expose the Bank
to economic downturns in specificregions, posing risks if local economies
face challenges

Medium term

Enhance client loyalty and retention

Short term

Financial materiality

42

UniCredit 2023 Integrated ReportOverview
Our Context

10. Responsible tax practices

Our Strategy

Respecting and maintaining fair competition, ensuring transparent management of taxation matters, rigorous andaccountable reporting of non-financial performance in compliance with public policy practices; protecting and consolidating
the corporate reputation against any illegal activities aimed at evading the imposition or payment of a tax
Impact materiality
Actual or Potential

Contribution to the creation of anenvironment of fair competition,encouraging businesses to compete
based on innovation and efficiency
rather than aggressive tax practices

ActualThe implementation phase of
responsible tax practices may initiallylead to increased operational costs
as the Bank adjusts its strategies
and systems, therefore potentially
impacting short-term profitability

Potential

Potential contribution to a reduction innational tax evasion, improving overall
economic stability

Potential

While the long-term impact isbeneficial, in the short term theadoption of ethical tax practices could
make the Bank less competitive if
competitors use more aggressive tax
strategies

Potential

Contribution to the sustainability of
public finances, ensuring that the
government has sufficient resources
to invest in essential public services

ActualComplex ethical dilemmas could
require consideration, such asbalancing tax responsibility with theneed to preserve competitivenessPotential

Risks

Timeframe

Opportunities

Timeframe

Clients who prioritise cost optimisation
over ethical considerations may choosecompetitors with more aggressive tax
strategies, leading to potential loss ofcertain client segments

Medium term

Over the long term, embracing andmaintaining responsible tax practices
can be a source of competitive
advantage, attracting conscientious
customers and investors

Long term

Regulatory risk associated with changes
in tax laws or regulations, leading tocompliance challenges, costs, legal
consequences or operational disruptions

Medium term

An improvement in the Bank’s
corporate reputation would help
build trust among investors,
customers and other stakeholders

Long term

Risks related to public perception of thecompany’s tax practices, if these are
misunderstood or misrepresented bymedia or advocacy groups

Medium term

Responsible tax practices could
facilitate positive engagement withpublic policies, thereby fosteringcollaboration with regulatory
authorities

Long term

Annexes

Negative impacts

Governance, Risk and Compliance

Actual or Potential

Our Impact

Positive impacts

Financial materiality

Supplement

UniCredit 2023 Integrated Report

43

44

UniCredit 2023 Integrated ReportOverview
Our Context
Our Strategy

Our Strategy

Our Impact

47
Our ESG Strategy
60 Our transition to Net Zero

Governance, Risk and Compliance

Our Impacts
Financial Capital86

Human Capital

100

Social and Relationship Capital

126

Intellectual Capital

138

Natural Capital

UniCredit 2023 Integrated Report

Supplement

80

Annexes

Impact on communities: Leveraging our
five Capitals to shape a sustainable futurefor our clients and communities

45

Our Strategy

Our Strategy

Two years into our strategic plan, UniCredit is united
around a clear Purpose and Vision: empoweringcommunities to progress while becoming the Bank
for Europe’s future and setting a new benchmark
for banking. It is a transformed bank, moving at
unprecedented pace, ready to face and takeadvantage of the future.

UniCredit Unlocked Plan
Continuous execution of our winning
strategy that delivers for our stakeholders
Relentless focus on industrial transformation
Balancing three financial levers to steer
our financial plan
Read more in the dedicated Strategy sectionin our 2023 Annual Report
Read more on the microsite

46

UniCredit 2023 Integrated ReportOverview
Our Context

Our ESG Strategy

Our Strategy

Our ESG Strategy is built on strong fundamentals andinterconnected elements to deliver value:
1. ESG principles, representing our important milestones
woven through UniCredit Unlocked
2. leading by example, striving to set high standards
for ourselves and also from those we do business with

Our Impact

Embedding sustainability in all that we do is
one of the five strategic imperatives of UniCredit
Unlocked. This plan builds on our strong foundations
to unlock the potential of our Group, paving theway for the future of our Bank and of all our
stakeholders, while ensuring that we always
lead by example and fulfil our Purpose of
empowering communities to progress.

3. setting ambitious ESG goals to support a just and fairtransition for our clients

Governance, Risk and Compliance

4. equipping ourselves with tools to assist clients andcommunities in navigating the environmental andsocial transition through strategic sustainable actions
5. embracing and investing the resources needed
to deliver and reach our ESG targets and long-term
commitments, through a strong Governance Model,
embracing our Culture and delivering quality Monitoring,
Reporting and Disclosure.

Annexes

1. Our ESG principles

Supplement

2. Leading by example on ESG
3. Our ESG goals
4. Our key strategic actions
Partnering withour clients fora just andfair transition

Supporting
communities
and society

Steering our
behaviour with clear
commitments

Enriching ourrisk and lending
approach

5. Our enablers
Our Governance Model
Our Culture
Monitoring, Reporting and Disclosure
UniCredit’s ESG Strategy is embodied in the Group ESG Roadmap which is our operative tool to work on ESG priorities acrossthe organisation and ensures a common direction, with several workstreams reflecting the key elements described above.

UniCredit 2023 Integrated Report47

Our ESG Strategy

1. Our ESG principles
Rooted in our DNA
Our ESG principles are woven throughout our
strategy and they represent the vision we are building
together with all the stakeholders to drive change andto support a just and fair transition.
We will continue to work to root ESG principles in our
DNA: our Governance Model and our Culture will work
as key enablers on this path.

We will hold ourselves to the highest
possible standards so that we do theright thing by our clients and society
We are totally committed to supporting
our client in a just and fair transition
We will reflect and respect the viewsof our stakeholders in our business anddecision-making process

2. Leading by example on ESG
Environment

Net Zero on portfolio emissions
Net Zero priority sectors in progress(Oil & Gas, Power Generation andAutomotive) and new target on Steelsector just set
Our greenhouse gas emissions

28%

reduction vs 2021,
Scope 1 and 2, market-based

Electricity from renewables

90.4%

use on our premises

SocialGovernance€59.6mDE&I Global Policies and Guidelines1

Corporate citizenship andphilanthropic initiatives (FY23)
contribution to communitiesvs €36.5m in FY22
Education and awareness (FY22+FY23)

442k

Financial education beneficiaries

196k

ESG awareness beneficiaries
UniCredit Foundation (FY23)€20m

contributed to empower youth andeducation opportunitiesof which€12m

Three-year partnership with Junior
Achievement Europe and Teach for
All to enhance education

Strong environmental, socialand reputational risk management
and policies

Solid DE&I framework

Percentage of women

42% in BoD
46% in GEC
35% in Leadership TeamInternational presence

33% in BoD
62% in GEC
40% in Leadership Team
>1,000

Employee Networks active members
on several diversity traits2 acrossGroup countries
Training initiatives
focused on ESG, DE&I and
inclusive culture

1. On inclusive language, recruitment, gender transition and pronouns in e-mail signature (on voluntary basis).
2. LGBTQIA+, Gender, STEM, Disability, Cultural Diversity, Generations, Caregiving.

48

UniCredit 2023 Integrated ReportOverview
Our Strategy

Our ESG goals and targets

Our Context

3. Our ESG goals
In 2024 we have defined a new set of targets focusing
on a more meaningful ESG penetration.

Our Impact

This allows a more transparent view on UniCredit ESG
performance over total business, netting out overallmarket effects not related to ESG.
Our targets are subject to the evolution of ESG regulation,that we expect to further mature in 2024 and beyond.

ental
nm
iro

Govern
an

En
v

ce

ESG Volumes

FY22+FY23 Actual(+c.€26bn in FY23 only)3

13%
15%

ESG Investment
Products548%
50%

Negative market effect,
however improved ESG
penetration rate at
48% (c.€90bn stock) at
EoY23 vs 46% at EoY22

Sustainable Bonds6€25.4bn since beginningof 202218%
15%7

Actual2023

Target2024

Actual2023

Target2024

Actual2023

Target2024

Supplementc.€82bn

Positive performance withc.€19bn environmental
lending and €8.7bn
social lending since
beginning of 2022

FY24 Target ESG Penetration

AnnexesS o ci al

ESG Lending4

Governance, Risk and Compliance

FY23 ESG Actual Penetration

3. Managerial vs 150bn target 2022-2024.
4. KPI calculated as ESG new production Including Environmental, Social and Sustainability linked lending,
divided by MLT loans new production in given year.
5. Based on Art. 8 and 9 SFDR regulation.
6. KPI calculated as ESG all regions’ bonds, including sustainability linked bonds, divided by all regions’ bonds for given year.
7. New KPI for 2024 excludes SSA business from both numerator and denominator.

UniCredit 2023 Integrated Report49Our ESG Strategy

4. Our key strategic actions
Partnering with our clientsfor a just and fair transition

Partnering with our clients means being recognised
as the bank that supports them through their just andfair transition by:– proactively providing the best support in terms ofservices and products to help them define and execute
their transition strategy– raising clients’ awareness and engagement
on ESG topics, also by focusing on ESG advisory set-up
and capabilities

Deep diveOpen-es partnership
In March 2023, we announced the partnership with
ENI around Open-es,- an ecosystem initiative thataims to enhance cross-businesscollaboration andsupport companies in measuring and improving
their ESG performance.
Open-es- is an alliance that brings together
entrepreneurial, financial and associative networks,
supporting all stakeholders on their sustainable
development path through an innovative
digital platform.
Launched by Eni in 2021 and currently involving morethan 16,000 companies and 22 partners, Open-es
is an inclusive and collaborative community that iscommitted to achieving ESG targets.
Our role is to act as a value-chain
leader partnerin this alliance, thereby playing a strategic role inthe sustainable development of the Italian corporate
sector and, more broadly, with initiatives and solutions
aimed at companies of every size.

Our participation in Open-es- has once again underlined
our ambitions to achieve our Net Zero targets by 2050
- providing our corporates clients with a best-in-classtool for mapping and improving their ESG profile, as
well as demonstrating our commitment to supportingclients and communities on the path towards a just andfair transition.
In addition to promoting synergies for companies
in terms of efficient sharing of information, thepartnership created by Open-es- between the financial
and industrial sectors also plays a key role in enabling
investments and encouraging the concrete actions
necessary for the development of sustainability acrossthe entrepreneurial system.

pen esecosystem

sustainability

powered by Eni

50

UniCredit 2023 Integrated ReportOverview
Our Context
Our Strategy

Supporting communities
and society

Our Impact

We are committed to fulfilling a social role which goes
far beyond lending, assisting our clients and communities
to make meaningful progress towards a more sustainable,
inclusive and equitable society in the long term.
We strive to support communities and society, andaim to empower them to make progress through ourSocial Strategy.

Governance, Risk and ComplianceDeep dive

UniCredit’s Social Strategy
Our strategic social goals

Our levers

1.

Socialfinance

Supplement

Support corporates
to become moresocially-oriented

Partnerships to enhance our social footprint– Feelsgood to promote business with positive social impact– Venice World Sustainability Capital Foundation to promotesustainable territorial development3.

Own social
contribution

Support communities through social projects
and donations
UniCredit Foundation to develop dedicated initiatives
with key focus on youth and education
UniCredit Volunteering to involve and empower our colleagues
to do good for the causes they believe in and care about most incharity initiatives

4.

Protect categories athigher risk of being
negatively affectedby the transition

Banking Academy to support communities developmentby providing financial education initiatives for corporates
and individuals

5.

Ensure positive
work conditions
for our people

Dedicated lending products to better target vulnerable categories– Futuro Sociale to support to corporates’ social agenda in Italy– Social impact financing to provide lending with focus
on social housing, education and healthcare

2.

Ensure sustainable
progress of ourcommunities, withfocus on youth andeducation

Offer suitable, accessible, fair, and equitable (SAFE)
financial products and services

Annexes

Foster financial
inclusion and healthof vulnerable people

Key selected initiatives

Support toour people

Grant flexibility, well-being and people caring,
also promoting diversity, equity and inclusion
Culture programme to execute our comprehensive plan tobring our Values to life and shape our behaviour to enable
Culture change
DE&I ambitions to empower Diversity, Equity, Inclusion andwell-being across the organisation

Page 86 Read more in the Human Capital chapter
UniCredit 2023 Integrated Report

Page 100 Read more in the Social and Relationship Capital chapter
51

Our ESG Strategy

4. Our key strategic actions
continued
Steering our behaviour
with clear commitments
In line with our Purpose of empowering communities
to progress, and in the context of an evolving external
environment, we aim at steering our behaviour throughtwo levers:– Enhancing our sector policies framework:
certain sectors and activities require a specialised
approach to ensure that transactional and related risks
are properly addressed. Our policy framework guides
our approach towards controversial sectors. We manage
environmental and social risks through comprehensive
policies, covering sectors such as Coal, Oil & Gas, Human
Rights and others. These policies are regularly reviewed
in order to ensure their continued relevance.

– Undertaking strategic commitments:
to constantly strengthen our commitment to fostera fair and just transition to a more equal and sustainable
society, we have decided over the years to adhere to
key international and institutional initiatives in orderto reach ambitious medium- and long-term sustainability
targets. Our Net Zero pledge represents a key pillar of
our ESG Strategy.
Page 60 Read more in Our transition to Net Zero chapter

Enriching our risk
& lending approach
We are further developing our approach to managing
climate-related and environmental risks by measuring andmonitoring (e.g. at portfolio level) other relevant naturerelated factors in the Group’s overall risk framework,
such as biodiversity, pollution and water usage.

52

We have carried out an assessment in order to understandwhich sectors of our loan portfolio are most exposed
to nature-related risks by considering their impact onnatural capital.
Page 138 Read more in the Natural Capital chapter

UniCredit 2023 Integrated ReportOverview
Our Context
Our Strategy

Deep dive

The paper also presents recommendations on how to deal
with the biodiversity and climate nexus. It is written byfinancial institutions for financial institutions, includingbanks, insurers, asset managers and asset owners.
Within the UNEP FI Biodiversity working group, we
have also contributed – alongside 34 internationalbanks, but the only one from Italy – to the publicationof the Principles for Responsible Banking “Nature
Guidance for Banks”. This aims to help the banking
industry align with the Kunming-Montreal Global
Biodiversity Framework (GBF)8 and address natureand biodiversity loss.

Supplement

Through our membership of the FfBP Foundation, we
contributed to the publication of the paper “Unlocking
the biodiversity-climate nexus”.

This paper outlines the synergies and trade-offs
betweenclimate and nature of a sample of investment/lending
solutions that are key to solving the nature and climate
crises we face.

AnnexesWithin our Natural Capital framework, we are alreadymaking a difference on natural capital-related topics(for example, through our adoption of the Equator
Principles and sensitive sector policies, our commitments
on human rights and rainforests, and our Climate &Environmental questionnaire, as detailed in the Risk
Management chapter). We have signed, as first ItalianBank, the Finance for Biodiversity Pledge (FfBP) and are
members of the permanent working group on Nature in
the United Nations Environment Programme FinanceInitiative (UNEP FI).

Governance, Risk and Compliance

Biodiversity is a topic that is increasingly under
the spotlight, both from a regulatory andstakeholder perspective.

Our Impact

Our commitment
to biodiversity

8. The Kunming-Montreal
Global Biodiversity Framework was adopted by 196 Parties to the Convention on Biological Diversity at COP15
in December 2022. It is a major milestone in the international effort to halt and reverse the loss of biodiversity and contribute tonature-based
solutions.

UniCredit 2023 Integrated Report53Our ESG Strategy

5. Our enablers
Our Governance Model
The integration of ESG factors in our strategy,
business and operations is underpinned throughour strong corporate governance.
We will constantly work on raising awareness on ESG
topics across the organisation and cascading knowledge
to drive change.
Our ESG Product Guidelines are designed to meet thisobjective as they provide rules to all Group countries
for the homogeneous classification and reportingof UniCredit’s ESG financial products and services.
The main goal is the prevention of the related risks
of greenwashing and social washing.

These rules are periodically reviewed to be aligned to themost recent market practices.
For example, in the last revision9, we introduced thedefinition of Transition Financing (in addition to Greenand Social), the new setting for exclusion criteria regarding
Investment Products valid at Group level, and the definitionof criteria and processes for marketing and communication
initiatives and campaigns.
Page 152 Read more in the Governance chapter

9. Please visit the ESG and Sustainability section in our Group website to read more about our ESG Product Guidelines.

Our Culture
ESG topics are of fundamental importanceto businesses and individuals alike, and play
an essential role in our communities andour shared future.

Furthermore, in order to actively enable the success of
our plan, it is crucial that we equip our people with theknowledge and insights necessary to make a meaningful
impact and drive positive change, therefore we offer a wide
programme of training focused on ESG across the Group.

At UniCredit, we are fully committed to providing a fair
service to our customers and put sustainability at the centreof everything we do, as a key driver of our strategic plan.

Page 86 Read more in the Human Capital chapter

With the aim of fostering stakeholder listening
and engagement, in November 2023 we organised
our inaugural ESG Day, “Empowering a Just andFair Transition”, a one-day event dedicated to meetingsand discussions on all ESG issues with our internal andexternal stakeholders.

Page 26

54

Read more in the Stakeholder
Engagement chapter

UniCredit 2023 Integrated ReportOverview
Our Context
Our Strategy

Monitoring, reportingand disclosure– to flag sustainable assets eligible for bondissuance, according to the criteria of our Sustainable
Bond Framework– to monitor commercial volumes for all of our ESG
business targets, and develop ESG advisory solutions
for our clients– to define a baseline for the high GHG-emitting sectors,
and to set targets and action plans to reach Net Zero

Governance, Risk and Compliance

The main driver behind the design of the ESG Global
Architecture was the necessity to automate ESG datacollection to meet different needs:– to integrate ESG data by counterparty in the credit
and risk strategies, and assess the alignment of clients’economic activities with the ESG taxonomy

Our Impact

During 2023, we advanced our commitment
to our strategic ESG priorities by continuing theimplementation of our ESG Global Architecture,
which was already active and in use in Italy,
Germany and Austria.

In addition to the backbone functionalities, we worked
to enrich our infrastructure with features to help the
Network understand a client’s situation regarding key
ESG dimensions. For example, the ESG Cockpit gives
Relationship Managers a unique integrated platformthat shows all the ESG-related information of customers,
enabling us to seize ESG opportunities and advise clientson ESG.
We are currently working to roll out the ESG Global
Architecture to other Group geographies in 2024.

Annexes

Page 160 Read more in the Risk Management chapter

Supplement

UniCredit 2023 Integrated Report55

Our ESG Strategy

ESG ratings and indicesmonitoring the Group sustainability strategy, and improving
our positioning and disclosure. Our sustainability performanceis reflected in the key external ratings.

With the support of the Group ESG team, the Group Investor
Relations team proactively and reactively interacts with the
ESG rating agencies with the aim of communicating and

CCC

B

BB

BBB

AA

A

AAA

Severe

High

Med

Low

Neg

100-40

40-30

30-20

20-10

10-0

C

B

D-

D

C-

Disclosure

Awareness

D- D D+ C-

B-

A-

A

Management Leadership

65

100

– Sustainability score improved to 65 from 64 as ofDecember 2022
– Included in the Dow Jones sustainability
diversified indices– Included in the S&P Global Sustainability Yearbook 2022

0-29

30-49

50-59

60-100Weak

LimitedRobustAdvanced

FF

FFF

E

0

0

56

EE+

EEE

73.3

100

– First bank in the Top 10 ranking, sixth out of 98– Included in the Top performer level and in the Top 3
in the financial sector (second place)5– Score improved to 4.5 from 3.9 as of July 2023.
Ranked in the 93rd percentile of banks– Ratings: 5.0 (Environmental); 3.8 (Social); 4.7(Governance), higher than sector average– Included in the FTSE4Good Index Series and the FTSE
ESG Index Series100– 2022 ESG Score improved to 84 from 80 with ranking at
32/1124 from 32/1109– ESG scores: 87 (Environment); 77 (Social); 94(Governance)– Score >75 indicates excellent ESG performanceand high degree of transparency100– 2022 ESG disclosure scores: 59.65 (Environmental);
40.51 (Social); 96.81 (Governance)

100– 2023 GEI score improved to 85.56%, + 2.61 p.p. Y/Y– Score higher than average score in financials sector(74.11%) and in Italian market (78.27%)

84

0– ESG score improved at 64 from 60 as of October 2023
– Subscores: 64 (Environment); 62 (Social); 67(Governance)– Included in the Euronext MIB ESG index– EE+ top rating in the Italian bank sector.
Example of EU excellence in sustainability– Included in the following Standard Ethics indices:
European Best in Class, European 100, European
Banks, Italian, Italian Banks

4.5

0

0

– Positioned within the Management band with B
score as of December 2022
– Avg. rating for financial services is B-, for Europe
is B and the Global Average is B-

A A+

B B+ A-Prime

F– ESG Risk Rating improved at 14.2 from 18.3
as of December 2023 (the lower the better)– Low exposure to and strong management of material
ESG issues– Ranked among the 10% of companies within the sector
with the highest relative ESG performance– Score at 54.46 (1 decile rank) as of July 2023.
Prime companies are industry sustainability leaders

C C+ B-0– Rating upgraded to AA as of July 2023. UniCredit
included in the Bloomberg MSCI Green Bond Index– Improvements in efforts to manage social risks
and robust integration of ESG practices into lending

65.70

85.56%

UniCredit 2023 Integrated ReportOverview
Our Context

International and institutional initiatives
To strengthen and demonstrate our ESG commitments, we havechosen to adhere to significant international and institutionalsustainability initiatives that have been established overmany years:

European Banking
Authority (EBA)– 2020 We voluntarily joined the European Banking Authority (EBA)
first pilot sensitivity exercise held by banks which aimed at providing
a preliminary estimate of sustainable exposures based on EU green
taxonomy. Results published during 2Q21

European HydrogenForum– 2021 We became a member of the European Clean Hydrogen Alliance.
The Alliance aims at the deployment of hydrogen technologies by 2030

Net Zero Banking
Alliance– 2021 We joined the Net Zero Banking Alliance, the banking elementof the Glasgow Financial Alliance for Net Zero (GFANZ)– 2023 We disclosed first-round targets on Oil & Gas, Power Generation
and Automotive sector within our path towards Net Zero

Women’s Forum– 2021 Our CEO signed the CEO Champion Commitment Towards the
Zero Gender Gap

Sustainable SteelPrinciples– 2021 We are among the six global banks that have formed the SteelClimate-Aligned Finance Working Group facilitated by RMI’s Center for
Climate-Aligned Finance– 2022 We signed the Sustainable STEEL Principles, a climate-aligned
finance agreement for the steel sector

Finance for
Biodiversity Pledge– 2022 We signed up to the Finance for Biodiversity, the onlyinternational pledge fully dedicated to financial institutions andcommitted to call on global leaders and to protect and restore
biodiversity through their finance activities

Ellen MacArthur
Foundation– 2022 We became Member of the Ellen MacArthur Foundation’s
international charity network to support our approach to accelerating
the circular economy transition across our countries

Impact Europe– 2023 We renewed our membership to Impact Europe, the unique
network at the intersection of finance and purpose, driven byknowledge and focused on impact

UniCredit 2023 Integrated Report

Supplement– 2015 The UN Sustainable Development Goals (SDGs) were published.
We have contributed since then by monitoring our progress via
measurable KPIs, resulting from the management of material topics
and related risks and opportunities

Annexes

UN Sustainable
Development Goals(SDGs)

Governance, Risk and Compliance

UNEP FI Principles for
Responsible Banking(PRB)– 2019 We signed the UNEP FI Principles for Responsible Banking (PRB)
aimed at supporting banks in aligning their business strategy withsociety’s goals– 2020 We joined several working groups organised by UNEP FI insupport of PRB implementation. UNEP FI PRB reporting was disclosed– 2021 We signed UNEP-FI commitment to Financial Healthand Inclusion– 2022 We joined the permanent working group on Nature

Our Impact– 2019 Endorsement of Task Force on Climate-related Financial
Disclosures (TCFD)– 2020 First standalone report with disclosure aligned with
TCFD recommendations

Our Strategy

Task Force on Climaterelated Financial
Disclosures (TCFD)

57

Our ESG Strategy

58

Overview
Our Context

Unlocking transformation, together.

Our Strategy

For the planet
and future
generations

Our Impact
Governance, Risk and Compliance

In February 2023, taking another crucial step in our Net Zerojourney, we announced the disclosure of 2030 targets forthree of the most carbon intensive sectors within our loan
portfolio – Oil & Gas, Power Generation and Automotive –to reach our Net Zero ambition by 2050. In January 2024,
we complemented this first set of goals with targets for the
Steel sector, another carbon-intensive
sector in our portfolio.
To support the achievement of these goals, we are now
publishing our inaugural transition plan, explaining how weare turning our commitment into actions. It includes dedicatedinitiatives focusing on:

Annexes– Strengthening advisory services for corporates inhigh-emitting
sectors-

Supplement– Significantly boosting our sustainable lending (green loans
and sustainability-linked
loans) to support our clients intheir journey to decarbonise their operations and diversify
away from carbon-intensive
sectors– Supporting clients in the development and scaling-up
of innovative climate solutions– Targeted partnerships with companies specialisedin sustainability for specific sectors
Our ambition is to announce the disclosure of targets forfurther sectors in 2024.

“ These targets reinforce our commitment
to reach Net Zero on our own emissions by
2030 and on our financed emissions by 2050.
This is alongside the action we have taken todrive forward a just and fair transition for all,particularly through green and sustainablefinancing and advisory activities.”
Fiona Melrose
Head of Group Strategy & ESG
Group

59

Our transition to Net ZeroNet Zero Progress & Our
Inaugural Transition Plan
Our commitment
to Net Zero
Climate change is one of the biggest challenges
that the world faces, impacting every person on
the planet through weather events such as extreme
heat, forest fires, severe rainfall and flooding.
2023 was the warmest year in human history and scientists
expect temperatures to continue rising. Concerted action
between public and private sectors is critical to a successfulenergy transition and to the mitigation of impacts and the
management of the risks of climate change. In this context,
the financial system has an important role in the Net Zerojourney, with more than $80 billion in climate financecommitments agreed in COP28.

At UniCredit, we are committed to playing our part. We are
striving to reduce our direct and indirect environmental impacts
while supporting Europe’s green transition. In this context, we
committed to Net Zero in October 2021 when we joined the
Net Zero Banking Alliance (NZBA), targeting Net Zero on ourown emissions by 2030 and on financed emissions by 2050.

Since then, we put in place concrete actions to achieve Net
Zero on our own emissions. We also set interim 2030 targets
to reduce our financed emissions on three of the most carbonintensive sectors1 (Oil & Gas, Power Generation, Automotive) in
our loan portfolio. We are now complementing this first set oftargets with the addition of the Steel sector, in alignment withthe methodology and timeline outlined in the Sustainable STEEL
Principles, of which UniCredit is a founder.
In the coming months, we will establish Net Zero 2030 interim
targets for other carbon-intensive sectors, such as Real Estate.
In this further round of target setting, the small and lowmateriality sectors will not initially be considered. However, we
will continue to monitor them to ensure our approach remains
open for future adjustments, if necessary.

Our path towards 2050 Net Zero targets
Task force set up: mapping, baselining and target setting

October

April

October

2030

2050

First target deadline
for financed emissions(intermediate targets to be
updated every five years)

Net Zero goal
for lending
and investment
portfolio

2021

2023

2024

UniCreditjoins NZBA

Deadline for sector
targets submission

Deadline forfurther sector
targets submission.

Already achievedin January 2023

Already disclosed
for the Steel sector
in January 2024

Final deadline forown emissions

Client engagement, portfolio steering, policy development, target review

1. Based on Net Zero Banking Alliance sectors.

60

UniCredit 2023 Integrated ReportOverview

Finally, we are not only facing challenges but also opportunities.
If investments in clean energy are still below the expectedlevels to achieve Net Zero, this does nevertheless open up
new business opportunities for financial institutions to help
companies to decarbonise.
In light of the above-mentioned challenges and opportunities
and the dynamic and forward-looking nature of the transition
planning exercise, the UniCredit transition plan will be
updated over time based on the evolution of our overall ESG
Strategy and the speed at which we are accompanying ourclients in their own transition.

Supplement

The landscape is still evolving, with many assumptions still to
be made and regulatory requirements to be set. We therefore
regard this plan as an opportunity to provide transparency
on the progress we have been making in our journey to Net
Zero along with the challenges we have been dealing withto support our clients in their decarbonisation path.

Furthermore, in common with the entire financial sector, we
are working to act on challenges linked to data availability
and reliability. We rely on clients and external providers fordata on real economy transition, such as clients’ transition
plans. However, such plans are still nascent, variable in quality
and with key data points often missing, with consequent risks
of inappropriate transition choices.

Annexes

We recognise that financial institutions will only beeffective enablers of the transition if appropriate policies,
standards and conditions are in place in the real economy.
This is why we are collaborating with external stakeholders
with the aim of clarifying the role of banks and how we caneffectively assist our clients. In setting our plan for the years
ahead, we are also working to take into account different
voluntary frameworks, guidelines and criteria on transition, set
by different market-based initiatives and third-sector entities,
recognising that a common framework would simplify
execution and benefit the entire sector.

Governance, Risk and Compliance

Designing the first version of UniCredit’s transition plan
has been a cross-functional strategic exercise, that also
required a deep understanding of the external context andchallenges on the road to Net Zero, most of which apply
to the whole financial sector.

In addition, we have established a broader ambition to support
our clients on a just and fair transition – which means going
beyond Net Zero to take into account more broadly natural
capital (e.g. biodiversity loss) and social aspects (e.g. impact onworkers in carbon-intensive sectors, impact on vulnerable
categories, etc.). The transition will impact employment,
especially in the energy sector, with workers experiencing
rapid changes and job insecurity. Balancing these aspects
is a relevant challenge for the whole financial sector, and thiswill require adjustments to our strategy in the next years.

Our Impact

Since joining the NZBA, we have established our first
sectoral targets and identified actions needed to achieve
them. In 2023, we dedicated significant effort to designingand setting up the internal engine needed to make our targets
operational, involving all the relevant functions of the Bank
to deploy the actions identified. The first months of 2024 will
focus on turning our commitment into actions, cascading the
Net Zero transition plan to the whole Group.

Our Strategy

In line with NZBA requirements and the
Glasgow Financial Alliance for Net Zero (GFANZ)
recommendations, we are proud to disclose ourinaugural transition plan, a further important stepin our Net Zero journey.

Our Context

Our inauguraltransition plan

The following sections illustrate the key content of ourtransition plan, recalled also in other chapters of the Integrated
Report (see related references). In line with the GFANZ
guidelines for financial institutions, our plan covers:– Our foundation of Net Zero objectives and priorities– Our engagement strategy to foster dialogue with clientsand other key stakeholders on transition– The implementation strategy we are deploying to embed
Net Zero considerations into our daily activities– The Metrics & Targets we set on Net Zero, and the levers
we will use to achieve them, by sector– How our ESG governance supports the transition

UniCredit 2023 Integrated Report61Our transition to Net ZeroFoundation

Engagement strategy

Our ambition and progresson our own emissions

Our engagement strategy outlines how we canmost effectively engage key stakeholders in thetransition path. These stakeholders include ourclients, as well as financial institutions, industryled associations, regulators, governments,
and policymakers.

Even though financed emissions account for most of ourclimate impact, the management of our own environmental
footprint is also key to becoming a Net Zero bank. Our
ambition is to reach Net Zero on own emissions (Scope 1
and 2, market-based) by 2030.
As of 2023, we have reduced our own GHG emissions by
28% versus 2021 including by procuring electricity fromrenewable energy sources, improving the energy efficiencyof our premises and data centres and promoting sustainablemobility solutions.
Read more in the
Page 138 Natural Capital chapter

Our ambition and progresson financed emissions
UniCredit is committed to reducing its financed emissions(Scope 3, Category 15). As mentioned, to prioritise the actions
required on our loan portfolio, we first set interim 2030
targets on Oil & Gas, Power Generation and Automotive,
three of the most carbon-intensive sectors in our portfolio.
We have now defined our 2030 targets for the Steel sector,
and will then set interim targets for other sectors withmaterial impact by October 2024.

Partnering with our clients for a just and fair transition is oneof the pillars of our ESG strategic framework and has been at
the core of our ESG Strategy for the last few years. Our purpose
is to help clients accelerate their transition by providing themwith effective advisory, tools and appropriate financing support.
To further tailor our approach to the needs of different clients,
we have defined specific Net Zero clients’ engagement
strategies. First, we clustered our Net Zero clients basedon their actual impact on our financed emissions and on
their forward-looking transition strategy, thereby identifying
transition leaders, clients aligning to transition, and laggards
vis-a-vis transition. The next stage was to set differentiatedengagement strategies by client cluster and sector, ranging
from retaining/expanding our relationship with leaders, toactive engagement of aligning clients, and gradual reductionof our support to laggards. In all cases, we regard green
and transition finance as a key lever to assist our clients’transition, especially for those who are not yet leaders on thetransition journey, as explained in the Products and Services
section of this chapter.

Net Zero client clusters

Leaders
Credibility of transition strategy

Since setting our first Net Zero targets in 2023, emissions
decreased for the Oil & Gas sector, as well as physicalintensity for the Power Generation sector, in line with theirtransition trajectories. Physical intensity remained quite stablefor Automotive mainly due to a change in the granularity ofdata used for emissions baseline estimation. Further details
on our progress and action plans by sector are provided in the
Metrics & Targets section of this chapter.

Client engagement

Aligning

Laggards

Environmental impact

62

UniCredit 2023 Integrated ReportOverview
Our Context

Likewise, as part of our overall engagement strategy, tostrengthen our commitment to green transition over the years
we have also actively participated in various international andnational initiatives, such as the Task Force on Climate-related
Financial Disclosure (TCFD) in 2019. Among other examples, wehave also published a dedicated standalone TCFD report since2020 and signed up to the UNEP FI Principles for Responsible
Banking (PRB) in 2019.

Supplement

UniCredit 2023 Integrated Report

This is why UniCredit constantly engages with sector
associations to help shape financial institutions’ role insupporting the real economy transition. For example, weare taking part in NZBA working groups where we provide
feedback to set clear guidelines and standards. Furthermore,
we maintain active dialogue with policymakers and regulators
on Net Zero through sector associations such as the Instituteof International Finance (IIF), the Association for Financial
Markets in Europe (AFME) and the European Banking Federation(EBF), which provide input and feedback on the role of financial
institutions in achieving climate goals, on the framework fortransition finance and on transition planning.

Annexes

ESG forms part of the daily dialogue with our clients, bothfrom a strategic and a commercial point of view. We havea dedicated ESG Advisory team that supports our businessnetworks across all geographies in assessing and addressing
clients’ ESG-related needs. Furthermore, at local level
we benefit from dedicated expert roles. For example, wehave set up a team of ESG Experts to support RelationshipManagers in the origination and structuring of ESG deals
for corporate clients across all Italian commercial regions.
Also in Germany we have dedicated supporting roles, suchas the Sustainable Finance Experts.

As mentioned, we are operating in a dynamic environment,with the emergence of new, interconnected topics relevant to
the transition that are not yet clearly regulated. In this context,
we aim for constant dialogue with key external stakeholders
to ensure a shared approach to reach Net Zero.

Governance, Risk and ComplianceThis approach represents a fundamental part of our Net Zeroengagement strategy to facilitate insightful and data-driven
discussions with existing and prospective clients regarding
new opportunities to finance their transition and mitigate
potential risks.

Engaging with other stakeholders

Our Impact

We have already started to test the bespoke approachwith pilot cases, and plan to collect this information for
our Net Zero sectors’ clients based on publicly disclosed
documents, ensuring our business is ready to have specificdialogue on these topics. Furthermore, we also plan to rely
on external experts to further strengthen our understandingof our clients’ transition plans.

Our Strategy

To ensure our approach is based on solid ground, oneof the key challenges we face is to develop an accurate
understanding of our clients’ transition strategy. To tackle
this, we are currently developing a bespoke approach toreading and interpreting our clients’ transition plans,
when available, and to strategically engage with them on theirdecarbonisation strategy. Based on internationally recognised
frameworks and sectoral initiatives on transition planning(e.g. GFANZ, CDP, CA100+), we have selected key qualitativeand quantitative elements for evaluating the level of maturityof our clients’ transition strategies.

As we believe that a true transition can only be achieved
through a systemic industry approach, we maintain constantdialogue with a broader set of stakeholders to understand key
trends in the sectors where we have set targets. For example,
in the energy sector we understand the importance of
resilience and energy security, which is why it is one of the
topics discussed in our European Energy Transition Forum.
This forum brings together senior representatives from leadingenergy companies with international institutional investors.
Thanks to our business industry experts, we are able to gaina deeper understanding of our clients’ situations, enabling us todevelop 360-degree support to clients, not only on financing
but also advising them on which strategic solutions can beadapted to their transition journey. We also act as facilitators
between larger clients, smaller clients and startups
across geographies, enabling connections that help clientsin specific sectors sharing best practices in line with theirtransition strategies.

63

Our transition to Net Zero

Engagement strategy Implementation
strategy
continued
More generally speaking, the participation of financial
institutions in industry-led initiatives is crucial to theprovision of the tools required for clients’ transition,
developing concrete investment projects, and arranging
financing. In turn, this fundamental dialogue also enables
corporates to understand how to make their projects
bankable. Further details on sector-specific initiatives areprovided in the Metrics & Targets section of this chapter,
where we illustrate our sectoral approach to transition.
To support our clients’ transition, we also partnerwith institutional stakeholders to channel additional
financing. In 2023, for example, we signed an agreementwith the European Investment Fund (EIF), part of theEuropean Investment Bank (EIB) Group, to channel €1bn
to small businesses across seven countries in Central andEastern Europe.
We also strive to engage locally with industry sectors andother stakeholders in the countries where we are present.
For example, UniCredit Bank Austria is working together withWWF Austria on consistently anchoring sustainability goals
in its lending portfolio and is also a partner in Klimaaktiv,
alongside 10 other companies in Austria. The Klimaaktiv
pact envisions a reduction in greenhouse gas emissions byparticipating companies of at least 50% by 2030, compared
to 2005. Members of the Klimaaktiv pact are regularly andrigorously audited. Annual inspections and robust criteria
guarantee that the pact partners meet the requirements
for climate-friendly business in a credible manner.
Finally, last November we held our inaugural ESG Day,
“Empowering a Just and Fair Transition”, a one-day event
dedicated to meetings and discussions involving both internaland external stakeholders, including employees, clientsand partners, as well as renowned ESG experts. The opening
panel session was dedicated to climate change and thegreen transition, “The road ahead: Safeguarding the climate
in troubling times”, with the participation of experts fromdifferent disciplines, including representatives from NGOs.

A key pillar of UniCredit’s transition plan is our
implementation strategy, which defines how we
integrate Net Zero considerations into all ourcore business activities and decision-making
processes. There are five main components
to this strategy:

1.

Target setting

2.

Monitoring

3.

Risk management

4.

Products and services

5.

Supporting tools

to ensure we structurally embed
Net Zero into our planning process forthe coming years, constantly adjusting
our Net Zero trajectory based on the mostrecent data and effectively cascading it
through the organisation

to effectively track our progress against ourtargets, and to identify corrective measuresin case of deviations

to ensure we adequately manage thedifferent risks (reputational risk, climate andenvironmental risk and credit risk) linked toour clients’ transition to more sustainablebusiness models

to effectively assist our clients’ journeys
to Net Zeroto ensure the organisation has all the
relevant information to operate in this space

Read more in the Stakeholder
Page 26 Engagement chapter

64

UniCredit 2023 Integrated ReportOverview
Our Context

The Net Zero monitoring process demands strong
collaboration between all Net Zero involved functions(Risk Management, Finance, ESG, Digital and Business)given high interdependencies between targets breakdown,
targets cascading and data strategy. It requires that we not
only track the evolution of our exposure on existing clients
but also periodically refresh climate data for the calculationof climate impact. In this context, data strategy is criticalto improve coverage and ensure quality, also leveraging on
specialised providers.

In 2024, we are further building on this approach by introducing
specific considerations on the three sectors in our portfolio
for which we set interim Net Zero targets, i.e. we:– Updated our Oil & Gas policy by integrating Net Zeroprovisions as a driver for the reputational risk classificationof customers

Supplement

Monitoring our progress against targets is fundamental to theeffective and timely steering of our loan portfolio. To achievethis, we have set up a dedicated process to track our
Net Zero KPIs evolution vis-à-vis our baseline and targets.

We started to integrate climate factors within our Risk Appetite
Framework and our Risk Strategies for managing credit, financial
and non-financial risks. We developed a specific methodology
and process based on a dedicated climate and environmental
questionnaire to determine our clients’ position on thetransition pathway. We introduced sector-specific policies which
commit us to stop financing controversial carbon-intensive
activities, such as energy production from thermal coal and themost impactful Oil & Gas operations (e.g. tar sands, fracking,ultra-deep water drilling, arctic extraction, etc.) and to phaseout similar financing that had been granted in the past, before
the policy came into effect. We continually update our policies
to ensure that the most recent evolution of related risks are
considered and properly managed.

Annexes

2. Monitoring

As a result of our commitment to sustainability, we havebeen embedding climate and environmental risks in ourrisk framework across all the various risk types (credit risk,
financial risks, non-financial risks).

Governance, Risk and Compliance

While this was a one-off effort, it clearly needs to become
part of our normal activities in future years to ensure weconstantly adjust our targets over time based on our financed
emissions’ evolution. This is why in 2023 we already started
working to embed target setting, breakdown, and cascading
activities into our existing planning processes, assigningclear responsibilities within existing governance and setting
up adequate tools to systematically gather and model alldata required.

3. Risk management

Our Impact

In 2023 we disclosed our first 2030 interim targets forthree of the most carbon-intensive sectors in our portfolio.
The process for target definition involved a broad crossfunctional working group with support from our ESG, Risk
Management, Finance and Business functions. It entailed
the development of a dedicated internal methodology
to calculate our emissions baseline and to project its
potential future trajectory, based on Net Zero reference
market practices (SBTi, PCAF, IEA) and on sector guidelines(e.g. by NZBA). It also required gathering new informationfrom external and internal data sources and using tools
to model the future evolution of our financed emissions.
Once targets were set, they were broken down by division andcascaded to the whole organisation.

Our Strategy

1. Target setting– Introduced specific KPIs related to our Net Zero targets into
our Risk Appetite Framework (RAF)– Included more comprehensive qualitative guidelines
to incorporate Net Zero commitments in our Credit
Risk Strategies– Embedded Net Zero client strategies into the credit
process (see Engagement strategy section of this chapter
for more details)
Page 160

Read more in the Risk Management
and Compliance chapter

Thanks to the new monitoring process we have put in place,
we are now able to provide our business functions withdedicated periodic reports on Net Zero impact evolution,
including all underlying drivers needed to steer our Net
Zero portfolio.

UniCredit 2023 Integrated Report65Our transition to Net Zero

Implementation
strategy continued
4. Products and services
In line with UniCredit ESG Strategy, in the last few years wehave been at the forefront of sustainable lending. We aresupporting many of our clients with dedicated products suchas green loans (aligned to market standards such as ICMA
or EU Taxonomy), green financing in partnership with public
entities at local and European level (e.g. Kreditanstalt fürWiederaufbau, European Investment Fund, etc.), Sustainability
linked loans and much more.
Moreover, since starting our Net Zero journey we realisedthat supporting our clients also with dedicated transition
finance is key to reaching our Net Zero ambition.
There are many different definitions of financial productsthat constitute “transition finance”, including those proposedby the International Energy Agency, GFANZ, OECD, and United
Nations. Most definitions generally focus on financial offers
dedicated to reducing real economy emissions by financing
either transitional activities or high emitters transitioning
to Net Zero.
We have established our own internal definitionof transition finance based on EU Commission
recommendations and included it in our ESG Product
Guidelines at the end of 2023. This is a key enabler tosupport Net Zero clients that are aligned with our path.
Our ESG guidelines apply to all Group countries. They aim todefine a comprehensive methodology for the homogeneousclassification and reporting of UniCredit’s ESG products
and services offer, and define the criteria for eligibility.
The objective is to protect the Group against greenwashingand social washing risks. The guidelines also require ourclients to have certified transition plans in place to accesstransition finance, so that we ensure that the required
financing is dedicated to eligible transition initiatives.

Accounting is a key challenge related to financing transition:in fact, a transition finance loan may lead to a temporary
increase in financed emissions and move us further awayfrom our targets in the near term. To address this, we areworking to provide adequate disclosure of our transition financevolumes in our future reporting. Furthermore, we aim to develop
methodologies to quantify medium- to long-term expected
benefits in terms of reduced financed emissions.
Finally, to effectively identify which of our products are mosteffective for our clients, we will continue to leverage ourdedicated ESG functions such as the ESG advisory team, whichhelps business network colleagues analyse clients’ ESG needs
and identify the most appropriate products to support them.

5. Supporting tools
To provide all involved UniCredit functions with relevant
Net Zero information and methodologies needed to effectively
implement our transition strategy, we are also upgrading our
supporting tools and introducing new functionalities, e.g.:– Introducing clients’ transition plans assessment
functionalities into existing tools– Displaying Net Zero relevant data by client (including theirimpact, cluster and recommended strategy) to our businessnetwork leveraging on existing dashboards– Enabling business colleagues to simulate Net Zero impact
at single deal and portfolio level through dedicated tools
The additional functionalities described above were designed
during 2023 with the involvement of cross-functional working
groups from the ESG, Risk Management, Business and Digital
functions, and will be progressively rolled-out and fine-tuned
during 2024.
In addition, in March 2023 we announced the partnershipwith ENI Open-es, an alliance that brings together
entrepreneurial, financial and associated networks. Open-es
supports all stakeholders on their sustainable development
path through a digital and innovative platform which aims
to equip our clients with a best-in-class tool to enable theirdecarbonisation path.
Page 47 Read more in the ESG Strategy chapter

66

UniCredit 2023 Integrated ReportOverviewcarbon-intensive sector, Steel. By the end of 2024,
we will establish Net Zero 2030 interim targets for othermaterial sectors, such as Real Estate. In this second
round of target setting for the NZBA carbon-intensive sectors,
the small and low-material sectors will not be considered.
However, we will continue to monitor them to ensure
our approach remains adaptable for future adjustments,
if necessary.

MetricScenario
Baseline
Benchmark
Value
Year

Oil & Gas

Scope 3Category 11

Upstream,
Midstream,
Downstream

Absolute
Financed
Emissions

IEA NZ
2050(World)

2021

Power
Generation

Scope 1Power
Generation

Emission
Intensity

IEA NZ
2050(Europe)

Automotive

Emission
Automotive
Scope 3
Manufacturers Intensity
Category 11
Tank-to-wheel (Light-duty
Vehicles)

Steel

Fixed
Boundary
System –Scope 1,2 and 3(Category 1
and 10)

Crude steel
makers

UniCredit 2023 Integrated Report

Emission
Intensity
Alignmentscore

2022YE
Progress

2030 Target

21.4
MtCO2e-10% vs.
baseline(19.3
MtC02e)-29% vsbaseline(15.2 MtC02e)

2021

208
gCO2e/
kWh

152 gCO2e/kWh

111 gCO2e/kWh

IEA NZ
2050(World)2021

161 gCO2/vKm

165 gCO2/vKm

95 gCO2/vKm

IEA NZ
2050(World)

2022

1.45
tCO2/
tSteel

-1.11
tCO2/tSteel

2022

-0.69

-

Supplement

Value Chain

Annexes

Scope

Governance, Risk and Compliance

SectorOur Impact

After joining the Net Zero Banking Alliance in 2021, witha Net Zero ambition for our portfolio by 2050, in 2023
we disclosed our first 2030 targets for Oil & Gas, Power
Generation and Automotive, three of the most carbonintensive sectors in our portfolio. We are now monitoring
our decarbonisation progress against these targets,
while also disclosing our first target for an additional

Our Strategy

Financed emissions

Our Context

Metrics & Targets

67

Our transition to Net Zero

Metrics & Targets
continued
Oil & Gas

Key levers for transition

Progress so far
To achieve our target for the sector, we started working on
defining how to reduce the impact of our portfolio of Oil &Gas clients. During the last year, our focus has been on further
engaging clients with transition strategies to actively support
them in their transition path, and on gradually reducing our
exposure to clients with high impact sector Scope 3 emissions
not aligned to the transition. This approach allows to balance
the need to ensure energy security while at the same time
shifting to more sustainable energy sources.
As a result, in 2022 our financed emissions alreadydecreased by 10% vs 2021. The achieved reduction has been
mainly driven by the deleveraging of non-strategic clients,
partially counterbalanced by the decrease of the company
value of Russian counterparties that increased our shareof financed emissions for those clients2 (coherently with thevolatility of the metric).

With regard to the Oil & Gas sector, traditional businessmodels are increasingly under pressure because the effects ofclimate change are worsening, with energy security becoming
even more relevant. A key strategic challenge for Oil & Gas
companies is aligning existing skills and capital with new
requirements of energy transition. As the industry landscapeis diverse and there’s no “one size fits all”, a collaborative
dialogue between companies, shareholders and financial
actors is necessary. As highlighted by the IEA, most Oil &Gas companies are watching the energy transition from thesidelines, with only 1% of total clean energy investment
globally coming from Oil & Gas producers. For this reason, theindustry’s engagement will be key in the upcoming decades.

Oil & Gas Financed emissions % of reduction
IEA NZ 2050 Benchmark3

100
90

Absolute CO2e emissions
normalised to 100 for 2021

80

-10

UniCredit Progress

UniCredit Target

Progress
Target

70

-29

60
50
40
30

Benchmark20
1002021 2022

In scope on balance sheet
lending YE2022€5.7bn2030
Financed emissions
baseline YE20214
21.4 MtCO2e

2040
Financed emissions
YE2022 vs YE20214-10% (to 19.3 MtCO2e)

2050
Financed emissions
2030 Target vs 2021
-29% (to 15.2 MtCO2e)2. i.e., increase of ‘client attribution factor’ given by the lending to the client on the client’s
company value (financed emissions calculation according to PCAF methodology).
3. World scenario, including Oil & Gas only.
4. Computed on portfolio in scope when data available (Scope 3 emissions for midstream
companies not computed in line with current literature).

68

UniCredit 2023 Integrated ReportOverview– Gradually reducing the financing of the mostcarbon-intensive activities– Collaborating in sector-led initiatives and withnew ventures for sector technology innovation,even when solutions are not yet fully mature

One of TES’ key projects in Europe is the importterminal in Wilhemshaven, Germany. In the shortterm, the project will accommodate LNG imports,
before transitioning to importing e-NG (electric
natural gas) in liquefied form.

Supplement

To support the sector’s transition, we are also promoting
sector-based initiatives that facilitate the growth ofalternative clean fuels, such as hydrogen. Since 2021, we havebeen a member of the European Clean Hydrogen Alliance,
established by the European Commission to support thedevelopment of green hydrogen projects to drive the energy
transition. Through this alliance, we successfully contribute to
the deployment of low carbon solutions across Europe, working
closely with key industry players and regulators. The alliancealso enables us to stay abreast with the latest developmentsin the rapidly growing hydrogen sector.

e-NG will be produced in areas of low-cost
renewable energy where green hydrogen
is obtained via water electrolysis. The greenhydrogen is then transformed into electric
natural gas by methanisation, before the gas
is transported using existing infrastructure.
TES has announced two e-NG production
projects in North America, one in Texas and one
in Canada, and has a further pipeline of projects
in North America, Middle East and Australia.
TES plans to distribute e-NG from the production
sites to customers in Europe and Asia by 2028.

Annexes

To sustain our clients’ transition, we are supporting companies
that are planning to rebalance and diversify their activities,
helping them address sector challenges linked to the energy
crisis, such as the need to provide energy security.

Governance, Risk and Compliance– Supporting clients investing in alternative,
more sustainable fuels

To facilitate the transition from fossil-based
to cleaner fuels, UniCredit is investing in new
climate technologies such as those developedby Tree Energy Solutions (TES). TES is an
integrated industrial scale energy transition
company leading the way in the productionof e-NG (electric natural gas derived fromgreen hydrogen).

Our Impact– Rebalancing our loan portfolio:

Our Strategy– Engaging with clients to educate them about transition andmake them aware of the importance of clear transition plans
as a pre-requisite for the financing of transition projects

Our Context

In this scenario, we believe that Oil & Gas players haveseveral opportunities to play a meaningful role in the energy
transition to scale up crucial technologies such as hydrogen,biofuels, and carbon capture, utilisation and storage(CCUS). At UniCredit, we are working to encourage the industry
transition on multiple fronts:

Supporting
sustainable
natural gas

TES plans to build several green hydrogen ande-NG production sites across the world, thereby
substantially supporting the development of new
types of fuel, alternatives to fossil-based ones.
Group

UniCredit 2023 Integrated Report69Our transition to Net Zero

Metrics & Targets
continued

Supporting a traditional
player’s shift from oil
to renewables
For years, UniCredit has been supporting morevirtuous clients operating in Oil & Gas sector
to accompany their transition, helping themreconverting their operations toward activities inthe energy sector that rely more on green sources.

UniCredit is also one of the ERG Group core banks
for project financing, having successfully supported
several ERG projects since the beginning of its
business development in the renewables sector(c.460 MW installed capacity in wind/PV sector).

For instance UniCredit is a core bank for ERG, withwhich we have a solid and long-standing
relationshipwith a proven track record for both mergers
and acquisitions (M&A) and financing solutions.
UniCredit has been at ERG’s side throughout its
transition from being an oil company to a purerenewable player over the last few years.

We also supported ERG with other financing
instruments, acting for instance as Additional
Bookrunner and Mandated Lead Arranger (MLA) of a
€600m sustainability-linked
Revolving Credit Facility(RCF) that ERG entered into in 2022. The deal was
structured around two sustainability KPIs:

We were at the side of ERG since its first Debt CapitalMarket (DCM) activity in 2017, when we acted as Joint
Lead Manager of a €100m privately placed transaction
whose proceeds were classified as “general corporate
purposes” with specific reference to new investments
in renewable energy infrastructure, energy efficiency
and refinancing of investments in hydroelectric
plants. Around two years later, ERG made its debuton the public bond market with a €500m inauguralGreen bond offering, while in the following years
the Company continued to adopt the green format,
successfully placing additional Green Bonds. As ofJanuary 2024, the totality of ERG’s outstanding
bonds (€1.6bn) are labelled as Green, financing/refinancing eligible green projects under ERG’s Green
Bond Framework. In line with its status of purerenewable player, ERG is now recognised as
an established green bond issuer by the DCM
community. Having being involved in all the bondtransactions, UniCredit can be considered as thepartner of choice for ERG.

– a sustainable environmental KPI basedon renewable capacity and– a sustainable social KPI based on workforce’s diversity
In the course of its transition journey, ERG has
completed many M&A transactions in the renewableenergy sector, with UniCredit acting as advisor forthe majority of the deals carried out in the last 15
years. Among the most recent deals, in 2022 we
acted as sole M&A advisor for ERG’s acquisition ofseven wind farms from EDP Renováveis, a transactionthat allowed the company to further consolidate
its position in the Italian wind market. That same
year, UniCredit also supported ERG in the acquisitionof MP solar, a Dutch solar photovoltaic platform
with 18 plants situated across four Italian regions,thus supporting ERG’s growth also in the Italianphotovoltaic market.
Deals of the type performed with ERG allow
us to further support renewables in the Power
Generation sector.
Italy

70

UniCredit 2023 Integrated ReportOverview
Our Strategy

Power Generation

Our Context

Scaling up
renewableenergy capacity

To achieve our target for the sector, we started working on our
portfolio of Power Generation clients to define how to reduce
our impact. Our focus has been on further growing our financing
to clients with credible transition plans and that already have
low levels of physical intensity (leveraging more renewablesin the production of energy) or clear plans to reduce it, topursue a climate transition. At the same time, we have started
to gradually reduce exposure to those clients with high levelsof physical intensity and whose transition strategy is missing
or not credible enough.

Our Impact

Statkraft is a leading company in hydropowerinternationally and Europe’s largest generatorof renewable energy. It is 100% owned by theKingdom of Norway and one of our Nordic Core
Clients. Statkraft has an ambitious growthplan for renewable energy in order to achievea Net Zero future.

Progress so far

In 2022 the physical intensity of our loan portfolio
achieved the value of 152 gCO2e/kWh down by 27% vs 2021.
The result achieved is well below the target trajectory thanks
to the improvement of:– Data quality that helped a better identification of renewablefinancing. More than €5bn in our portfolio are related
to lending to “pure” renewable companies or dedicatedloans to traditional players to support power production
from renewables

Governance, Risk and ComplianceAs part of this strategy, Statkraft has signed
a binding agreement to acquire the Spanishbased renewables business Enerfin from Elecnor
Group. The acquisition of Enerfin adds 1.5 GW of
operational wind power, wind and solar capacity
currently under construction plus a sizeable
pipeline of projects in development to Statkraft’s
portfolio. This reinforces the Norwegiancompany’s position as a major international
renewable energy player, and significantly
strengthens its position in Spain and Brazil.

Supplement– Average physical intensity of our client base that isprogressively changing the technology mix towards moresustainable sources, consistent with their transition plan

Annexes

Following the announcement of the acquisition,
Statkraft successfully issued a €1bn Green Bond,
with UniCredit acting as Active Bookrunner.
The net proceeds from the bond issue will be
used to finance eligible projects as specified in
Statkraft’s Green Finance Framework.

Power Generation Emissions Intensity (gCO2e/kWh)300

IEA NZ 2050 Benchmark5

UniCredit Progress

UniCredit Target

250

200

150

208
152
Progress

Target
111

100

50

0

Benchmark2021 2022

2030

In scope on balance sheet
lending YE2022€10.4bn

Emissions Intensity
Baseline YE20216
208 gCO2e/kWh

2040
Emissions Intensity
YE20226
152 gCO2e/kWh

2050
Emissions Intensity
2030 Target
111 gCO2e/kWh

5. Scenario scaled down to European level (excluding Ammonia and Hydrogen).
6. Computed on portfolio in scope when data available.

UniCredit 2023 Integrated Report71Our transition to Net Zero

Metrics & Targets
continued
Key levers for transition
For the Power Generation sector, energy transition is taking
place in two key ways: on one hand, an increase in generationfrom renewable sources with a reduced contribution fromcoal and other fossil fuel sources; on the other, ensuring
related infrastructures are upgraded and expanded toenable the necessary system resilience and flexibility.
Specifically on Power Generation, our strategy is primarily
focused on supporting our clients to shift from fossil fuelenergy production to more sustainable sources of energy(e.g. pure renewables).
To this extent, our industry experts work with clients thatwant to refocus their business model and also with clientsthat want to further invest in renewable energy projects.
For example, we work with utilities that need to rebalance theirportfolio of activities/assets on more sustainable technologies.
Thanks to our extended network, we are also able to serve
pure renewable players through project financing initiatives,
especially in wind, photovoltaic and advisory activities.
Through sector-specific events, we are also involved in
discussions on how to best approach energy transition.
For example, in Czech Republic and Slovakia, UniCredit isa member of the Solar Association, the largest professional
association of solar energy entrepreneurs to promote technical,
legislative and economic conditions for the operation of therenewable energy sector. We are also a partner of Climate& Sustainable Leaders, a unique platform in Czech Republic
to foster sustainability and climate protection.

Promotingrenewables
In line with EDP’s commitment to achieve
100% renewables generation by 2030 andreach Net Zero by 2040, in July 2023 thecompany raised a €3bn sustainability linked
Revolving Credit Facility (RCF), with UniCredit
acting as Mandated Lead Arranger andBookrunner. The RCF is a sustainability-linked
loan and was structured according to the
Sustainability linked Loan Principles of the
Loan Market Association, in particular with
two ESG KPIs:– reduction of Scope 1 and 2 greenhousegas emissions and– an increase in the percentage of installedcapacity from renewable sources within
EDP Group
In addition to this facility, in September
2023 we acted as a Global Coordinator in theissuance of a dual-tranche green senior bondthrough which EDP managed to raise a totalof €1.35bn. Both instruments allow for greateralignment of EDP’s financial strategy with
its sustainability strategy and reinforce EDP’s
commitment to decarbonisation, including thefight against climate change and the promotionof renewable energy.
Group

72

UniCredit 2023 Integrated ReportOverview
Our Context
Our Strategy
Our Impact
Governance, Risk and Compliance

The project has great significance for all of Europe
because it strongly promotes the global energy
transition, in line with EU green goals, which will
enable the EU to become energy independent andnot reliant on non-EU producers. The 3 GW of panels
that will be produced annually by the gigafactory
can generate up to around 5.5 TWh of renewableelectricity per year, which from a sustainability
perspective has the potential to avoid the equivalentof nearly 25 million tons of CO2 in their first 10 yearsof operation.

UniCredit 2023 Integrated Report

Similarly, the production generated by thegigafactory’s modules have the potential to avoid
the purchase of nearly 1.2 billion cubic metresof gas per year, replaced by internally generated
renewable energy.

Supplement

Acting as Structuring Mandated Lead Arranger,
Global Coordinator and Bookrunner, we signed
the green loan project financing agreement for an
amount of €560m, to finance 3SUN, an Enel GreenPower company. Through this financing, 3SUN has
secured funding for the expansion of its gigafactoryin Sicily (Italy), which is expected to become Europe’s
largest factory producing high-performance bifacial
photovoltaic modules. 3SUN’s financing is thelargest such arrangement in the energy sector in
Italy – and one of the largest in Europe – over thelast year and is the first project financing for a solar
panel factory of this size in Italy/Europe. The seniorterm loan benefits from an 80% financial guarantee
issued by the Italian Export Credit Agency (SACE)
under its Green Guarantee programme, which
promotes, among others, projects aiming to mitigate
climate change as part of Italy’s Green New Deal.

Annexes

Helping to fund Europe’s
largest solar panel factory
At the same time, the gigafactory also plays a
key role from a social perspective. It is expected
to create around 900 direct and 1,000 indirect jobs
by 2024, and to support the “Ray of Hope” European
Commission project aimed at providing Ukraine withenough photovoltaic modules to cover 11,400m2 ofrooftops of several public buildings such as hospitals
and schools.
The project is expected to become a model forthe development of gigawatt-scale photovoltaic
factories in Europe in the coming years.
Group

73

Our transition to Net Zero

Metrics & Targets
continued
Automotive

Key levers for transition

Progress so far
To achieve our target for this sector, our focus has been on
supporting the transition of our clients, the majority of whichhave already started on their transition path by defining anddisclosing credible Net Zero targets and plans to progressively
switch their production from vehicles with internal
combustion engines to hybrid and electric vehicles.
In 2022 the physical intensity of our loan portfolio
remained quite stable vs 2021 at 165 gCO2/vkm, showing
a slight increase (+2.3% vs 2021).
Our 2022 performance can be explained by two trends that
offset each other. On the one hand, we have observed an
improvement of the metric thanks to the strong increase ofsales of hybrid and electric vehicles of the car manufacturers
in our portfolio. On the other hand, this benefit was totallyoffset by the negative effect caused by an improvement ofdata used to calculate the emissions (i.e. more granular dataof sales per car model and brand by geography enablinga better estimation of the emissions).
We expect an improvement of our metric, alreadyin next the monitoring cycle, thanks to the financing of somespecific projects of our clients dedicated to the productionof electric vehicles.

The Automotive sector is a pillar of the global economy andat the same time one of the major contributors to climatechange. Road transport in Europe accounts for around one
fifth of greenhouse gas (GHGs) emissions. Despite an observed
shift towards cleaner road vehicles and fuels, total GHGs frompassenger cars and heavy good vehicles have increasedin Europe due to increasing transport volumes.
Europe, driven by its ambitious Green Deal target, is expected
to electrify rapidly, according to McKinsey Quarterly, Transition
to Net Zero – Road mobility (August 2022) and the European
Environment Agency, Road Transport – Road transport (europa.
eu). This will have a significant impact on the entire automotive
supply chain, include driving greater demand for e-batteries.
Our strategy for the Automotive sector aims to help ourclients seize new market opportunities across their value
chain (including EV battery manufacturing, infrastructure
management etc) as they shift towards low-emission vehicles.
We have started to actively work with a range of our clients– including some of the top car manufacturers in the market –to finance specific projects entirely dedicated to electric vehicle
production, such as finance for a new dedicated factory.
Our holistic industry approach (“In Motion”), combines theexpertise of all our specialists along the total automotive value
chain, from natural resources to recycling. With the supportof the ESG Advisory team, we offer tailor-made sustainablefinancing for investments into new technology to support thesector in its transformation towards zero emission mobility.

Automotive Emissions Intensity TTW (gCO2/vkm)
IEA NZ 2050 Benchmark7

200

UniCredit Progress

UniCredit Target

180
160
140

161

165
Progress

120

1.45

100
80

95
Target60
40

Benchmark20
02021 2022

In scope on balance sheet
lending YE2022
€2bn

2030
Emissions Intensity
Baseline YE20218
161 gCO2/vkm

2040
Emissions Intensity
YE20228
165 gCO2/vkm

2050
Emissions Intensity
2030 Target
95 gCO2/vkm

7. World scenario on whole fleet.
8. Computed on portfolio in scope when data available.

74

UniCredit 2023 Integrated ReportOverview
Our Context

Group

UniCredit is one of the founding members of the
Sustainable STEEL Principles which were launched in 2022.
These principles established a level playing field for green
projects by encouraging transparent reporting and providing
a clear goal setting methodology for the Steel sector. The Fixed
System Boundary coupled with a methodology that addresses
both primary and secondary production provides the mostcomprehensive reporting guide to date.

Governance, Risk and Compliance

UniCredit acted as Bookrunner, TechnicalLead, Billing and Delivery Manager of the deal.

Following the definition of the first set of sectoral targets
for Oil & Gas, Power Generation and Automotive – whichwere published in January 2023 – we have now defined
our interim target for the Steel sector to meet our 2050
Net Zero ambition.

Our Impact

In May 2023, Mercedes-Benz Group broughta dual-tranche €2bn green bond to themarket – the first EUR green bond issued
since April 2021.

Our Strategy

Green bondfor leading auto
manufacturer

New Net Zero target on Steel

Annexes

Following the Sustainable STEEL Principles9 methodology,
the baseline was calculated by identifying all relevant
crude steel producing clients10 and computing the exposure
weighted emission intensity and the alignment score of theBank’s lending portfolio, taking into consideration the split
between primary and secondary steel production. The baseline
was calculated for the on-balance sheet lending exposure asof 31 December 2022, in line with PCAF methodology11, whichis consistent with the approach used for the other sectors.

Supplement

We selected the more ambitious trajectory referenced in the
Sustainable STEEL Principles methodology – International
Energy Agency (IEA) Net Zero 1.5 2050 Scenario – as
the reference benchmark for the definition of the 2030
intermediate target.
GHG emissions data quality was evaluated according to the
PCAF scoring methodology.

9. www.steelprinciples.org
10. Value chain includes steel makers’ activities related to crude steel manufacture and basic steel processing, steel sales andsteel products’ production and other business controlled by steel groups. In-scope counterparties producing less than 250
kt/y of crude steel were also included in the reporting, but with negligible impact (less than 0.1% of total exposure).
11. www.carbonaccountingfinancials.com/standard

UniCredit 2023 Integrated Report75Our transition to Net Zero

Metrics & Targets
continued
Overview of key design choices
Clients in Scope

Crude steel producers12

Activities– Crude steel making13 and basic
steel processing– Steel sales and steel products
production (related to crude steel
making Groups)

Exposure-weighted emission intensity in tons of CO2
emissions per tons of produced steel (tCO2/tSteel) is theselected metric to calculate the baseline and set our 2030
interim target.
The portfolio alignment score is an additional metric that
we consider, and is calculated according to the Sustainable
STEEL Principles’ definition. The score enables us to assess
the alignment of both the client and the Bank’s portfolio to thebenchmark pathway scenarios (i.e. IEA Net Zero and MPP TM16
specific trajectories) that consider the percentage of primary(i.e. iron ore) and secondary (i.e. scrap) steel production.

Emission Scope

Fixed System Boundary (Scope 1, 2
and 3 Category 1 and 10)14

MetricEmission intensity tCO2/tSteel

Financing
Activities

Corporate lending book: on-balance
sheet exposure

Data

Description

PCAF Data
Quality Score

2.32

Input data

– Exposure frominternal source

Scenario

IEA NZ 1.5 2050 (World)15

Baseline estimation– Emissions, production,
scrap charge from anexternal data provider
On balance sheet
lending (drawn
exposure)

EUR 2.2bn

Baseline emission
intensity

1.45 tCO2/ tSteel– Crude steel making and basic steel processing– Steel sales and steel product production (related to crude
steel making Groups)

Baseline alignment
score

-0.69

Scrap Charge %47%

As recommended by the Sustainable STEEL Principles
Association, we defined the baseline and targets for all crude
steel Group producers in the Bank’s lending portfolio (basedon balance sheet exposure). Activities included in scope are:

In line with Sustainable STEEL Principles, the carbon
emissions scope follows a Fixed System Boundary, which
identifies a consistent boundary of activities to be reported
on, regardless of whether they are executed by the steel millitself, a supplier, or off-taker (i.e. regardless of whether they
are Scope 1, 2, or 3 emissions of an individual company).
This approach takes into account the Steel sector’s highdegree of variability in emissions, particularly elementsof Scope 3, depending on the ownership structure and levelof vertical integration.

12. Steel manufacturers that are processing crude steel purchased from third parties (i.e. re-roller) are not considered.
13. Following SSP methodology, also included exposure for Holding, Financial Service and Trading companies, if related to Steel Groups inperimeter, and other supporting business activities controlled by Steel Group.
14. Category 1. Purchased goods and services and Category 10. Processing of sold products. All emissions in the Fixed System Boundary areincluded, as defined by the Sustainable STEEL Principles.
15. IEA Net Zero 1.5 2050 benchmark is adjusted to the Fixed System Boundary according to the Sustainable STEEL Principles methodology andconsidering the trajectory split into primary and secondary production. Benchmark is tailored to the UniCredit portfolio scrap charge.
16. Mission Possible Partnership Technology Moratorium.
17. Category 1 and 10.

76

UniCredit 2023 Integrated ReportOverview
Our Context

Comparing our 2022 emission intensity with 2022 benchmark
values, the 2022 Bank portfolio alignment score is -0.69.

Target setting
We selected the IEA Net Zero 1.5 2050 benchmark 18 as
the reference scenario to set the 2030 intermediate target.
Benchmark is based on the UniCredit portfolio scrap charge
in 2022.

Governance, Risk and Compliance

The 2022 baseline emission intensity of the Steel sector,
as per the Fixed System Boundary (Scope 1, 2 and 317) was
estimated at 1.45 tCO2/ tSteel, which is lower than the valueof the selected IEA Net Zero benchmark, equal to 1.51 tCO2/
tSteel in 2022.

We used the weighted average scrap charge of our portfolio,
equal to 47% in 2022, to tailor the IEA Net Zero and MPP TM
benchmarks, taking into account the input raw material mix
used in the production by our clients, that generates different
emission intensities.

Our Impact

We have used the following inputs to calculate the Groupemission baseline and alignment score for the Steel sector:
production data, emissions data and scrap charge. This data
was sourced from the third-party data provider to the
Sustainable STEEL Principles Association.

Our Strategy

Considering the selected design elements, the on-balance
sheet lending in scope for the sector is €2.2bn, as of
31/12/2022.

We are targeting a 2030 emission intensity of 1.11 tCO2/
tSteel in line with the benchmark and market practices for
the Steel sector, corresponding to an alignment score equal
to 0 in 203019.

Steel Emissions Intensity (tCO2/tSteel)
1.4

MPP TM Benchmark

IEA NZ 2050 Benchmark

UniCredit Baseline

UniCredit Target

Annexes

1.6

1.45
Baseline

1.2

Supplement

1.11
1.0

TargetMPP TM
Benchmark

0.8
0.6
0.4
0.2
0

IEA NZ 2050
Benchmark
2022

2030
On balance sheet
lending YE2022€2.2bn

2050

2040
Emissions Intensity
Baseline YE2022
1.45 tCO2/tSteelEmissions Intensity
2030 Target
1.11 tCO2/tSteel

18. IEA trajectory is an enhancement of IEA NZE providing split trajectory and following a fixed boundary approach.
19. According to benchmark tailored on UCG portfolio with 2022 portfolio weighted average scrap charge.

UniCredit 2023 Integrated Report77Our transition to Net Zero

Metrics & Targets
continued
Key levers for transition
The decarbonisation of the steel industry to Net Zerorequires joint efforts from all stakeholders including regulators,
producers, and final customers – which is why industry-backed
initiatives are key to the adoption of a unified standard.
At UniCredit, we believe this is a key step to help the Steelindustry transition into a greener future, as we continue tosupport our clients in their ambitions and engage in strategic
industry discussions around the development of concrete
investment projects.
In recognition of the importance of collaboration between
the financial word and the steel industry, we are taking part in
the Steel Climate-Aligned Finance Working Group facilitated
by RMI’s Center for Climate-Aligned Finance. This working groupseeks to support decarbonisation in an industry responsible
for over 7% of global CO2 emissions.

Enabling
greener steel
Steel is the world’s most important
engineering and construction material, usedin almost every aspect of our lives – from thecars we drive and the buildings we work in,to the homes in which we live and the kitchen
appliances we use every day.
But steel is also responsible for over 7% of global
CO2 emissions and the industry is considered as
one of the hard-to-abate sectors. The greenest
steel globally will be produced by H2 Green Steelin Sweden, from 2026 onwards. This greenfieldproject will become the first hydrogen-based flat
steel mill and is designed to abate up to 95%
of CO2 emissions in comparison with traditional
blast furnace steel making. UniCredit has
been involved early in the financing process
as a ‘Pathfinder Bank’ to coordinate the lenders’technical and environmental and social due
diligence. As one of the leading lenders, we arealso engaged as Bookrunner and Mandated
Lead Arranger.
Group

78

UniCredit 2023 Integrated ReportOverview

Page 152 Read more in the Governance chapter

Supplement

UniCredit 2023 Integrated Report

Finally, to ensure the right commitment of the organisation,
we also aligned our remuneration policy to Net Zeroobjectives. We introduced Net Zero KPIs in the Sustainability
Section of our Top Management long-term performance
conditions. The Sustainability Section (non-financial sectionof the scorecard) has a 20% weight of the overall longterm scorecard.

Annexes

As a key part of our transition plan, we are working
to increasingly embed Net Zero into our core banking
processes, such as the planning, risk and business processes.
As part of this effort, we embedded Net Zero KPIs into our Risk
Appetite Framework (RAF), as mentioned before in the Risk
Management section.

To support our enhanced ESG governance processes
and maintain our Net Zero momentum, during the year wedelivered dedicated Net Zero training sessions at Group levelfor UniCredit internal functions involved in all our operating
countries. For the year ahead, our training focus will be on
the key skills and knowledge needed for Net Zero decisionmaking. These modules will include: basic training on Net Zerofundamentals; how to assess clients’ transition plans; clients’
Net Zero engagement strategies and their implications for thecredit process; and transition finance and its applicability for
Net Zero clients.

Governance, Risk and Compliance

The Group ESG function works with the relevant bankfunctions across all aspects of Group Strategy and ESG –and is therefore integral to our Net Zero Governance initiatives.

In terms of our clients, we are leveraging the Bank’s existing
ESG functions, further promoting crucial capabilities – such as
our ESG advisory experts – that have pivotal roles in the client
engagement process.

Our Impact

To further highlight its strategic importance, the Net Zero
Project – which is divided into two sub-projects: financed
emissions and own emissions – is also part of the GroupESG Roadmap.

Our Strategy

Over the last years, we have continued to evolve
our organisation to further integrate climate-related
criteria into the Group Strategy. In support of ourcommitment to Net Zero, the most recent updates
to our approach to ESG governance include theestablishment of a dedicated Net Zero projectat Group level, which was initially set up in 2022
and is led by a cross-functional team. This project
brings together ESG, Finance, Risk Management,
Business and Digital to identify and implement
the key actions needed to define and support ourtransition strategy.

Our Context

Governance79Impact on communities

Financial Capital

Material topics:
Lean and solid bankFinancial Capital comprises resources
obtained from external providers andgenerated by our Bank’s activities, thatare used to support clients’ business andbank operations for the medium-long term.

Positive impact on society

2023 Results€8.6bnNet profit

1

16.6%

15.9%

RoTE

CET1 Ratio fully loaded€8.6bnShareholder distribution2

Targets2024

Net profit broadly
in line with 2023

c.16.5%
RoTE (by 2024)c.€10bn

Shareholder distribution
in line with value creation3

1. For FY23: Net profit excludes DTA write-up- from TLCF (€893m).
2. FY23 CET1r is net of the accrual for the total FY23 distribution following the new EBA Q&A 2023_6887,
i.e. including also the share buy-back not authorised yet by shareholders and supervisor.
3. Of which c.€7.2bn FY23 (Total FY23 distributions less part of first tranche SBB executed within 2023(€1.4bn)), c.€3bn Interim FY24. Distribution subject to shareholder and supervisory approvals.

80

UniCredit 2023 Integrated ReportOverview
Our Context
Our Strategy

FY23 Highlights across our 3 levers

Cost

Operational
Excellence

Net Revenue(Gross Revenue +17%)

39.7%

Cost/Income -7.2p.p.
(Absolute costs -1%)

389bpsAnnexes

CapitalEfficiency

Capital+26%

Governance, Risk and Compliance

UniCredit
Sustainable
Excellence
FY/FY

Quality
GrowthOur Impact

Net
Revenue

Supplement

Organic Capital
Generation 12.0bn(Net Revenue/RWA 7.9%)

Customer loans and deposits
Customer loans (€bn)

Customer deposits (€bn)(excl. repos and IC)

2022 432

UniCredit 2023 Integrated Report(excl. repos and IC)

409 2023

2022 492

474 2023

81

Impact on communities
Financial Capital

Solid Liquid Position>140%

2023 Liquidity Coverage Ratio

Funding mix by sources 2023 (%)
OtherSupranational
Funding

Senior Bonds – Green

1

9

20

10

Senior Bonds– Other

19

Covered Bonds& Securitisations

Network
Bonds

41

Funding mix by country 2023 (%)
Eastern Europe
1

Central Europe

The Student
Housingfacilitatedby UniCredit
Our Bank continues to be committed
to empowering the young generation, givinga new chance to promote more affordable
access to accommodations near universities.
The project in collaboration with Camplus
International S.r.l (Fondazione CEUR) enables
the acquisition of locations to rent to students
at a lower price than the rental market.
The loans disbursed in 2023 amounts to €4.8m
for the Ferrara location and the whole projectwill reach €22.8m, to cover also the cities of
L’Aquila and Rome.
The beneficiaries impacted by the first trancheof the project are estimated to be more than 350,
having access to cheaper accommodations
and facilitating the social need of housing.
The new building will be comfortable and offer
comprehensive services, such as a canteen, gym,
rooms for study and tutoring, promoting physicaland psychological wellness.

22

Italy
46 Italy

Germany

82

31

UniCredit 2023 Integrated ReportOverview

ESG Bonds

Germany

2

Green Mortgage Covered Bondfor total of €1.25bn

2 Green Mortgage Covered Bondfor total of €1bn

Italy

2

Green Senior Preferred Bondfor total of €1.75bn

1Social Retail Senior Preferred Bondfor total of €0.2bn

Czech
Republic

for total of €0.5bn

2

Green Mortgage Covered Bondfor total of €0.1bn

Rating 2023
Fitch
Ratings

Moody’s
Investors
ServiceStandard& Poor’s

Short-term debt

F2

P-2

A-2

Medium andLong term

BBB

Baa1

BBB

Standalone Rating

bbb

baa3

bbb+

– Fitch Ratings: on 17 November 2023, Fitch has
affirmed UniCredit S.p.A.’s rating BBB and kept theoutlook ‘stable’.
– Moody’s: on 21 November 2023, Moody’s has improved
UniCredit S.p.A.’s bank deposit rating outlook to ‘stable’and kept the senior unsecured outlook ‘negative’.
– S&P: on 25 October 2023, S&P has upgraded
UniCredit S.p.A.’s standalone rating to bbb+, one notch
above Italian sovereign.

UniCredit 2023 Integrated Report

With the review and confirmation of its
ambitious emission reduction targets by the SBTi
(Science Based Targets initiative), TUI is setting
new standards in the tourism sector.
Targets were defined for each of TUI’s threebusiness lines: airlines, hotel and resorts, andcruises. The conditions of the financing are linked
to the achievement of these emission reduction
targets: by 2030, emissions are to be significantly
reduced in TUI airlines (-24%), in the hotel
segment (at least -46.2%) and in cruises (-27.5%).

Supplement

Hungary

1 Green Mortgage Covered Bond

UniCredit acted among others as sole
Sustainability Coordinator, in a banking groupof 19 international banks working together
on the €1.65bn RCF, while Kreditanstalt
für Wiederaufbau recommitted on the€1.05bn facility.

Annexes

1

Green Senior Non Preferred Bondfor total of €1bn

In May 2023, TUI extended its €2.7bn credit
lines until summer 2026 and introduced
an ESG-link to the financing with ambitious
GHG emissions reduction targets, laying
the foundation for TUI’s profitable growthand sustainable strategy.

Governance, Risk and Compliance

Austriaof total amount

Our Impactc.€5.8bn

Our Strategy

11

Our Context

ESG Bonds

ESG-linked
Revolving
Credit Facility

The GHG emissions reduction targets set by TUI
shows strong improvement compared to historic
performance and provide the sector with a caseof third-party validation on the alignment withthe 1.5° Paris Agreement.
The progressive ESG structure was implemented
for the first time to a complex financing andbanking group, while underlining TUI’s GHG
emissions reduction pathway in a highly
relevant industry.

83Impact on communities
Financial Capital

Unlocking transformation, together.

For our clients
leading the
ECM recovery

Over the last 12 months, we have been involved in seven of
the 10 largest Equity Capital Markets (ECM) transactions in
our core countries, with our growing reputation as a relevant
player in the European ECM arena endorsed by our #2 ECM
ranking in these countries.
We acted as Joint Global Coordinator on 13 transactions – upfrom just five in 2022 – including Eurogroup Lamination’s IPO,
which was the first ever Hong Kong–Milan–
dual listing. In Italy,
we closed a number of high-profiletransactions as Global
Coordinator, ranking #3 in the 2023 ECM league table with
a 8.5% market share. In Germany, we ended the year as themarket #2 – our highest league table position in more thana decade – and boasted a 10% market share with the highest
number of transactions printed.
In line with everything client related, this performance has
been founded on our ability to combine global reach with local
expertise. We are providing competitive, content-led- advisory
services to clients across the spectrum – from global leaders
to mid-cap,
local firms.
Germany84

Overview

Our Context

Our Strategy

Our Impact
Governance, Risk and Compliance

Annexes

Supplement85

Impact on communities

Human Capital

Material topics:
Digitalisation and innovation
Value to clients

We empower our people to progress
throughout their professional lives by:Diversity, inclusion andemployee engagement
Business ethics

listening to their needs
valuing their skills and designingtraining and development planspromoting diversity, equity, inclusion
and well-being.
Page S.69 Read more in the Human Capital supplementc.€17m2023 Results

46%

women inGroup Executive
Committee

35%

women in
Leadership Teamc.35

invested to ensure equalpay for equal work

training hours
per capita

Targets
Ambition to achieve
gender parity across allorganisational levels

86

Ambition to ensure
equal pay for equal work
investing €100m by 2024

UniCredit 2023 Integrated ReportOverview

Page 22 Read more about our Purpose

Listening and involving

91

In 2023, we launched the first UniCredit Group-wide
Volunteering Community, where colleagues can share
new initiatives as well as experiences and ideas. In less thana year since its official launch, this community has grown
impressively, engaging employees from all countries throughalmost 280 initiatives. These efforts have supported, directly
and indirectly, several thousand beneficiaries across our
local communities.
Typical employee activities range from river cleaning andafforestation to financial education and mentorship, as well
as serving in canteens and responding to urgent crises.
Furthermore on 5 December 2023, we marked theInternational Volunteer Day for the first time, celebrating
our people whose dedication and commitment have vividly
demonstrated the power of collective action and theremarkable achievements possible through volunteering.
This is the essence of putting our Value of Caring into action.

Supplement

CEO and GEC connect initiative

Our colleagues are involved and empowered to do goodfor the causes they believe in and care about most: during
the year, they dedicated c.10,000 hours to volunteering, either
alone or with other colleagues, to provide support to non-profit
organisations and local communities.

Annexes

We have successfully carried forward the CEO and GEC
connect initiative for the second year. Through a seriesof small online and in person meetings, mixed groups oftalented colleagues representative of the Bank in terms ofgender, function, role and seniority take part in free-flowing
discussions with CEO/Group Executive Committee (GEC)
members. These active listening sessions aim to enable
a Culture change based on the implementation of new ideas
emanating from each corner of the Bank.

IAt UniCredit, we understand the profound impact we canmake by embracing the ‘S’ in ESG, with volunteering
representing one of the key levers for us to shape and carefor our communities.

Governance, Risk and ComplianceWith this in mind, we are creating an engaging and positive
work environment to build employee awareness and set thetone for our Culture across all our geographies.

Over the past year, we have achieved remarkable results intransforming our Culture, ensuring that our behaviours remain
in line with our Value of Caring.

Our Impact

Each of these are critical – but it is only when they aremutually reinforcing, with a team united behind each equally,that we will achieve success for all our stakeholders.

Our Strategy

Our Culture is designed to ensure that we arefunctioning as we should be, in a way that will
ultimately deliver for all. It is built on the synergyof our Purpose, Values (Integrity, Ownershipand Caring), and Ambition.

Our Context

Foster engagement

meetings (six with CEO,85 with GEC members)

799

colleagues involved(55 with CEO, 744 with
GEC members)

52%c.10,000

hours dedicated to volunteering
by our colleaguesof colleagues involved
were female

UniCredit 2023 Integrated Report87Impact on communities
Human Capital

Building a positive work environment

Our people are our greatest asset, and we are committed
to building a workplace of equal opportunity and apositive environment.
Caring for our people is vital for unlocking our fullest
potential. By providing the right support and resources wenourish our collective well-being to build a truly positive,
inclusive, and collaborative workplace, where everyone
is empowered to succeed.

To pursue our Diversity, Equity & Inclusion (DE&I)
commitment and address our people needs we haveavailable global and local tailored initiatives in every
country where our Group is present, offering support and theright knowledge equipment.

>> We care for our people
Examples of initiatives
Ask for Help
Confidential psychological advice and counsellingsessions with specialists, plus a wide range of webinars,
workshops and tailored programmes available in all
Group countries.
Group

Prevention and healthy lifestyles awarenessPrevention and healthy lifestyles awareness pathway
in many of our Group countries (e.g. medical checkups, nutrition counselling, fertility treatment, sport
recreation activities).
Group‘Talento diffuso’
A pilot project aimed to identify the unique talents ofeach individual and to put them at the service of theorganisation, making everyone feel an active part oftheir own professional development and of the Culture
transformation of our Bank.

0 Italy

Mommies Back initiative
Programme aimed to promote the reintegration ofcolleagues on maternity leave into work under flexible
conditions: the Bank is provided with qualified part-time
staff for a limited period of time, while mothers areallowed to smoothly get back to business while taking
into account individual needs.

0 Hungary

Women’s Wealth events
Virtual events with various speakers to raise awarenessspecifically for women on the topic of finance, aimed atbringing women closer to the independent managementof finances, especially concerning investments
and pensions.
Germany

88

UniCredit 2023 Integrated ReportOverview160

new graduates participated in our Group
Graduate Programme in 2023, coming from
19 nationalities and hired in five countries(Italy, Germany, Austria, UK and US)

participants (both at Group and local level)
benefited from our Group Onboarding
Path in 2023

360° feedback
As part of UniCredit’s Feedback
Culture initiatives, managers receive
upward, lateral and downward
feedback from colleagues on theirsoft and leadership skills.

2,000

participants: Group Executive Committee(GEC) members and managers until thethird reporting line to GEC

Supplement

4,079

I
Annexes

We continued our Group Onboarding Path launched in 2022,
aimed to provide a Group framework that introduces global
onboarding initiatives common to all employees and leverages
existing local onboarding practices. For our Group Executives,
we have shaped a customised approach to guarantee faster
acclimatisation in the role.

Our Performance Management initiative is an annual Groupwide appraisal and development process that ensures aperformance-oriented culture based on fairness, transparency,
and meritocracy. It is applied to all employees in the Group.
In addition, a mid-year review feedback session aims to unlock
our fullest potential by cultivating continuous feedback
at all levels of our organisation. The mid-year review further
underlines the importance of a UniCredit Feedback Culture
based on our Values of Integrity, Ownership, Caring.

Governance, Risk and Compliance

In 2023, we officially launched our Group Graduate
Programme1, offering vast opportunities for young people
to enter the banking world and work in a forward-thinking,international, and supportive environment.

Performance Management

Our Impact

Talent attraction

Our Strategy

Within UniCredit’s wider commitment to empower
our people to succeed, we support our employees’
growth by providing a unique and dynamic
professional journey, boosting their strengths,
know-how and skills.

Our Context

Enhance skills

13,000

respondents: participants (throughself-evaluation); their direct managers;
direct reports (first line); maximum fivepeers randomly selected

1. Since 2023, all graduate programmes within our Group have been unified under the same framework.

UniCredit 2023 Integrated Report89Impact on communities
Human Capital

Deep dive

Developing skills

We also revised the Group Learning and Development
Framework that is part of our UniCredit University.
The wide range of learning and development opportunities
that comprise UniCredit University is designed to meet thecurrent and future skill requirements of our organisation.
All colleagues are offered training and learning opportunities
to develop what they need to master their responsibilities andto explore the things that inspire and motivate them – with
firsthand access to multiple formats designed to deliver highimpact and tangible results.

c.35

Development
opportunities
for all employeeswith UniCredit
University

Training hours per
capita in 2023

90

UniCredit 2023 Integrated ReportOverview
Our Context

Learning offer for all, covering
regulatory aspects, basic skills
and key competencies

Roles withspecificneeds

Training by role, creating
upskilling/reskilling training
paths associated withindividual competencies

High
potential

Dedicated tailor-madeinitiatives
for Group and local high potential
colleagues to sustain our
future pipeline

Executives

Tailor-madesolutions for
Executives, ensuring ourleaders are equipped toperform at their best to achieve
strategic objectives

I
Governance, Risk and ComplianceTraining is delivered via multiple channels: digital,by the UniCredit Global Platform (PLUS) and external
platforms; classroom, both in-person across UniCredit
Training Centres and virtually; peer-to-peer withcolleagues teaching other colleagues, and throughon-the-job learning.

Allemployees

Our Impact

UniCredit University is structured to cover two
dimensions: Locally by geography, as each offer
is created to support the business of the country,
addressing local needs and priorities; and Globallyby function, as each offer is developed with theaim of disseminating knowledge of the various
areas of expertise across all countries of the Group.

UniCredit University provides learning opportunities
to four key groups of employees:

Our Strategy

Since it was first established in 2022,
UniCredit University has continued its evolution
guaranteeing growth and enrichment paths,
enhancing endless learning and development
opportunities for all our employees.

Annexes

Our UniCredit Universities

Italy
Audit

Client Solutions

Compliance

DigitalESG

Germany

Supplement

In 2023, most countries and global functions designed their learningand development offers and have launched their Universities.
CE & EE

I I

Access to both country and function
University offers are based on thejob role and perimeter

Finance

Operations

People & Culture

Risk

UniCredit 2023 Integrated Report91Impact on communities
Human Capital>> ESG training
Deep dive

Increasingly important to all of us, ESG topics
play an essential role in our communities andour shared future.

At UniCredit, we are fully committed to providing a fair
service to our customers, putting sustainability at thecentre of everything we do.

Group
ESG Programme forGroup Executives

Participants151(reached sinceNovember 2022)
ESG Teach inleveraging internaland external expertisein collaboration with
Polimi Graduate Schoolof Management

Specialist Trackfor ESG Experts
in partnership with
SDA Bocconi University

1,300(in person andstreaming in 2023)

93(in person)

To actively contribute to the success of our plan,
it is crucial that we equip ourselves with the knowledge
and insights necessary to make a meaningful impact
and drive positive change.
Our ESG learning offer provides extensive andwide-ranging support for our teams across Europe:

Key Contents
ESG regulatory framework, ESG Risks andimpacts, Social, Governance, Corporate
Purpose and Volunteering

ESG Strategy, Social, Governance, E andS products and initiatives, Strategic
commitments and Impact measurement
model, Net Zero fundamentals

Banking regulation, Sustainable finance,
ESG ratings, Sustainability measurement
framework, Materiality perspective,
Reporting on sustainability

0 Italy

Participants

Key Contents

Sustainable financeonline course

1,304

Sustainable finance, How to define clients’
ESG profiles, ESG products(in Corporate Division)
ESG corporate
advisoring certificationin partnership with
Polimi Graduate Schoolof Management

92

230

(in Corporate Division)

Climate change, Social impact finance,
Energy transition, Circular economy,
Sustainability culture

UniCredit 2023 Integrated ReportOverview
Our Context

Participants

Sustainable
Finance Expert

287

Teach ins

(in Retail/WealthManagement, Corporate andClient Solutions Divisions)

Regulatory requirements, Sustainablefinance and real estate, EU taxonomy,
NetZero, Biodiversity and circular economyI
Our Impact

in partnership with
European Business School

Key Contents

Our Strategy

Germany

Participants

Key Contents

Governance, Risk and Compliance

808

Sustainable finance, Biodiversity,
Energy certificates, Social banking(across all Divisions)

0 Austria

551(in Retail Division)

Sustainability in the
Corporate World48(in Corporate Division)

ESG Programme for
Senior Executives

Bulgaria
Training on ESG for
Corporate and Retail56(in Private Banking and
Wealth Management Division)

UniCredit 2023 Integrated Report

ESG and SDGs, Influence and impact
of sustainability considerations,Ratings and measurability, The new
regulations at EU level

24

Outside-in perspective and best practices,
The Bank’s ESG activities

Participants

Key Contents

420(c.150 in Corporate
Division; c.270 in
Retail Division)
Training on ESG for
Corporate – withexternal provider

Materiality and risk assessment,
Sustainability assessment, Sustainableproduct offering

160

Supplement

ESG Lehrgang –Advice on sustainable
investments

ESG basic, ESG environment, ESG securities

Annexes

The world ofsustainablefinance 2023

What is ESG and implementation of
ESG factors in the Bank, Green finance,
Transaction flagging and reporting

Concrete examples and applicability of ESG
strategies in key industries for the Bank(in Corporate Division)

93

Impact on communities
Human CapitaleValue diversity, equity and inclusion
At UniCredit, Diversity, Equity & Inclusion(DE&I) are a business imperative.
A dedicated DE&I strategy is fully integrated in our ESG
framework and business agenda, and in place in all the 13
countries where we operate. It aims to ensure a more cohesive
approach to developing a positive work environment focusedon productivity, personal and professional well-being, and thecontinuous engagement of our people.
Our solid DE&I governance is empowered by:– Shared workplace policies, principles and best practices2– A passionate DE&I network across the Group to createsynergies and business opportunities, composed of:

14

DE&I Accountable Executives
nominated under each GEC member

Deep dive

Employee
Networks>1,000We currently have more than
1,000 active members in several
Employee Networks across ourGroup countries

c.20

LGBTQIA+ (Unicorns Networks)
Promote a more open, inclusive and mutuallyrespectful workplace by stimulating cultural changes
for LGBTQIA+ (lesbian, gay, bisexual, transgender,
queer, intersex, allies etc.) inclusion.

Employee
Networks

Gender (Women’s Networks: Uwin; F:AST; Women’s
network; Women to women; UnivHers; PINK)
Foster a workplace culture of inclusivity,
empowerment, and equal opportunities. Throughcommunity building, professional development andadvocacy, we strive to advance gender diversity,
creating an environment where every woman can
thrive and contribute to our shared success.

DE&I Local Managers appointed
in our Group countries

Voluntary groups of employees that cometogether based on shared identity or life
experiences, building community engagement
Our Networks actively contribute to numerous initiatives
which celebrate key DE&I moments, such as Pride Month.
In June 2023, for the first time, UniCredit was the official
sponsor of Pride parades in Austria, Germany and Italy, andalso participated in activities in Slovenia, Czech Republic andSlovakia. Around 250 colleagues participated in total.

STEM (STEM@UniCredit Network)
Build an inclusive and diverse space for those female
and male employees who embrace STEM (Science,
Technology, Engineering and Mathematics) disciplines
and mindset to level up their life and career, regardlessof their life-cycle
stage.

2. Such as a dedicated DE&I Global Policy is in place to set clear
guidelines and principles for employees as well as third parties.
It applies to every key moment of the employee journey, fromrecruiting and onboarding, to learning and development,
performance management and compensation, ensuring bias-free,
merit and competency-based decisions as well as pay equality,
regardless of diversity traits.

94

UniCredit 2023 Integrated ReportOverview
Our Context
Our Strategy

Caregiving (UNI Care Giver Network)
Provide support and a sense of understanding to
UniCredit caregivers, offering resources, networking
opportunities, and a community where they can shareexperiences and advice.

Governance, Risk and Compliance

Cultural Diversity (REACH-Race, Ethnicity
and Cultural Heritage Network)
Promotes awareness of ethnicity, race and DE&I topics
as a concrete way to unlock UniCredit’s potential,
developing best practices and greater understanding,and serving our clients better than ever.

Generations (Future Generation Network)
Foster diversity, visibility, innovation and interaction
with each other. We want to make a change and we do
not hesitate to work hands-on to do so.

Our Impact

Disability (Disability Networks)
Create a safe and empathetic workplace where people
with disabilities and their allies can openly discuss
the challenges facing them, raising awareness of theirunique needs.

Annexes
Supplement

UniCredit 2023 Integrated Report95Impact on communities
Human Capital>> DE&I and inclusive

culture programmes

These programmes are designed to stimulatea more encompassing mindset and break down
biases and barriers, for example:

WeFly International Cross-company
Mentoring programme with Valore D
association:

Unconscious Bias-Conscious
Caring Workshop:

2023 saw the third edition of this programme,
which involved 130 international participantsfrom 42 companies, including 50 men and womenfrom UniCredit (25 Mentors and 25 Mentees).
The programme aims to equip talented managers
with additional career support to boost theirstrengths and skills.

around 220 participants took part in two-hourresidential/virtual workshops designed to foster
cultural diversities, starting from a deep awarenessof one’s own biases to develop a mindset
of inclusion.

Training on DE&I Policies
and Unconscious Bias:
assigned to all Group colleagues in local languages
and accessible on PLUS, our global learning
platform, the online course is designed tostrengthen our culture of inclusion. More than
70% of our colleagues have already completed
the training.

96

UniCredit 2023 Integrated ReportOverview
Our Context

AwardsWorking to achieve gender parity across all levels of ourorganisation is a key component of our DE&I approach.
We have already achieved:

Our efforts around DE&I wererecognised by a series of award
schemes during 2023, including:

Our Strategy

Promoting gender parity and inclusivity

Our Impact

Gender balance – Female representation (%)
58

Group overall

Leadership Team335

We are also committed to ensuring equal pay for equal workby implementing transparent and effective action plans.
These include:

Global EDGE Certification for gender equity
and inclusion: first pan-European bank to win a
Global EDGE Certification. Ten countries certified:
Italy, Austria, Germany, Romania, Croatia,
Hungary, Serbia, Cz.Rep., Slovakia, Bulgaria

Governance, Risk and ComplianceGroup Executive
Committee (GEC)46– Allocating c.€100m to gradually close the gender gap in
pay within comparable roles; during 2023, c.17m have been
invested, leading to a significant reduction of Gender Pay
Gap (GPG) on comparable roles4 to 2.0%
– Including specific DE&I KPIs to senior leaders within theannual goal setting process5

International mindset (%)(people originating from countries outside of Italy)
53
62

generations
working together

Included in 2023 Bloomberg GenderEquality, for the fourth year in a row, with an
overall GEI score above the sector and country
Italy benchmark

Leadership Team340

4Group overall(calculation
based on FTEs)
Group
Executive
Committee

Supplement

At UniCredit, we remain committed to creating a barrierfree and inclusive workplace, where no one is ‘left behind’,in order to give our colleagues a voice and a true sense of
belonging. Across the Group, our employees represent true
diversity, including:

Nominated Inclusive Company of the Yearat the Italy Rainbow Awards 2023 for our
Company’s inclusion policies and Best LGBT+
Employee Network (our Unicorns) during
Parks Diversity Index

Annexes– Setting guidelines for our compensation process125

countries of birth

Ranked for the second time in 2023 in Top 100
Globally for Gender Equality by Equileap: #2 inItaly (the only bank)

3. This refers to Group Executive Committee and first line reporting to Group Executive Committee.
4. Non-demographic Gender Pay Gap.
5. DE&I KPIs as standalone goal or as part of a broader Sustainability goal among non-financial measures,
included in the individual scorecards of senior roles, as one of the elements for their performance evaluation.
DE&I KPIs: ensure equal pay for equal work, promote gender parity across all organisational levels, increase culturaland ethnic representation in our staff, boost work life quality, well-being, and flexible working model for our staff.

UniCredit 2023 Integrated Report97Impact on communities
Human Capital

Unlocking transformation, together.

For the volunteers
at the heartof our Group
Volunteering has been at the heart of our social
responsibility for many years. In 2023, to make it simpler
and more rewarding for as many colleagues as possible
to offer their time and skills, we launched our firstGroup-wide Volunteering Community.
This Community will engage colleagues across our countries
to support those that need it the most, either individually or
alongside their teams – putting our Value of Caring into action
and transforming our volunteering efforts.
In less than a year since its official launch, our first Group-wide
Volunteering Community has grown impressively, engaging
employees from all countries in nearly 280 initiatives.

“ Alongside our efforts to protect the environment,
we place great emphasis on the ‘S’ in ESG –and volunteering is one of the most importantways we can make a difference to thecommunities we operate in.”
Siobhán McDonagh
Head of Group People & Culture
Group

98

Overview
Our Context
Our Strategy
Our Impact
Governance, Risk and Compliance
Annexes
Supplement280

Our Volunteering Community
engages employees fromall countries in nearly
280 initiatives

99

Impact on communities

Social and
Relationship
CapitalMaterial topics:
Digitalisation and innovation

Value to clients
Positive impact on society
Lean and solid bankBusiness ethics
Political and societal changes

Close relationships with our mainstakeholders create long-term value andsupport individual and collective growth.

Climate andenvironmental impacts

Digital security

Page S.78 Read more in the Social and Relationship
Capital supplement

2023 Results€8.7bnsocial lending since
beginning of 2022

€59.6mcontribution tocommunities

428,513

feedback comments
provided by stakeholders

Targets

15%

ESG lending
penetration at 20241
1. KPI calculated as ESG new production including environmental, social andsustainability linked lending, divided by MLT loans new production in given year.

100

UniCredit 2023 Integrated ReportOverview
Our Context

Our approach

Our Strategy

At UniCredit, we believe that banks should forge
close bonds with their local communities, using theirdetailed understanding of local practices, economies
and cultures to enable individuals, groups andcountries to realise their potential.

I
Our Impact

Europe continues to be characterised by economic
and social challenges, including inflation, conflict
and a cost of living crisis. Our industry is a key
enabler of change – and we have a valuable roleto play in improving the lives of people acrossthe continent.

Our goal is to work together with our partners andour customers to empower communities to progress.

Governance, Risk and Compliance

Our approach to Social and Relationship Capital

SDG Priorities

s

m

st

lationshipe velo p m ent

ter

Our
approach

In vest in sano cialcomSuppor tingp
to and c etitivenesscom ontrib
mun utingity grow th

Our Investments
We invest in improving
how people live andhow businesses operate

UniCredit 2023 Integrated Report

Our Goals
We aim at generating
a positive impact
on society

de

c

n
g C g an
ult d
ure

on

om

ic d

t in l o ng -Inv e sg with our custom
agin
ers
g
n
E

er re

i
ot n
m
i
Pro port
sup.

Supplement

old

ancialng finteri sion
Fos incluahkeAnnexes

ith stakeholder
gro
ing w
g
a
up
g
s
En

II
II
'

'

Our Commitment to the SDGs
We strongly support the UN 2030 Agenda for Sustainable
Development and the enhancement of well-being andcompetitiveness in the countries in which we work101

Impact on communities
Social and Relationship Capital

Investing in
long-term stakeholder
relationships
Engaging with our stakeholders on a deep andmeaningful level represents a crucial building
block for a relationship based on trust.

Engaging with our customers
While capturing new business opportunities and facilitating
stakeholder engagement, the service we provide is measured
by identifying and prioritising interventions in areas where
improvement is required. Since the beginning of the Covid-19
pandemic, this activity has become even more significant.

Our strategic plan uses the Net Promoter Score (NPS) as a key
performance indicator. NPS is fundamental to understanding
the degree of clients’ recommendation and experience of ourbanking services and this guides our interventions. Starting withkey client journeys and touchpoints, the NPS is regularly
measured, monitored, analysed and discussed and any written
feedback from clients on specific areas is examined.
At Group level in 2023 UniCredit achieved an NPS of 16 among
SME, more than two points ahead of competitors.
Among Individuals the NPS across countries was 13.
Germany and Eastern Europe kept the advantage, while
in Central Europe we are working on catching up with thecompetition in Austria and Czech Republic. Italy was impacted
by a change in methodology.

How we listen to our clients: The net promoter scoreSocial and economic trends
BranchNetwork
LeversBenchmarking interview(Strategic NPS)
Solicited

GlobalTARGET: To measure the strategic NPS in local markets, to compare thelocal UniCredit banks’ scores to those of competitors and to understand themain drivers
HOW: Clients (individual and corporate) are randomly involved in the survey
by the research provider thus ensuring a fair comparison

Light diagnostics
NPS and ad-hoc
Interviews(NPS on Client Journeylevel, Relationship NPS,
Jobs to be done – JTBD)-Solicited 9 Local
Process
andOperation

Voice of the web

HOW: NPS Relationship and instant feedback requested by the local bankfrom clients. Jobs to be done (JTBD) interviews carried out by the local
bank to investigate specific room for improvement on core client needs todefine actions

Unsolicited

TARGET: To monitor publicly available data on social media and public
review platforms

Internal operational dataand client complaints

TARGET: To integrate what clients say – expressed by NPS – with whatclients do

Unsolicited102

TARGET: To measure the NPS at the moment of truth and highlight specificpoints of improvement (JTBD)

HOW: By using the listening tool which applies big data and artificial
intelligence methodologies

HOW: Analysis of operational and behavioural data

UniCredit 2023 Integrated ReportOverview
Our Context
Our Strategy

Our Impact

I
Governance, Risk and Compliance
Annexes

In 2023 we developed several major initiatives
aimed at ensuring we put our clients at the centreof our thinking and processes, based on relevant
feedback received from employees, current clientsand prospects of the Bank:
Gamified Client Experience training
for Retail employees
Gamified training approach in the Code of Talent
platform aimed to create and share knowledge andproper professional habits among employees forbringing better customer satisfaction to our clients
Close-the-loop functionality
for the NPS of the branches
Well-established working process of action, escalationand track in the system, in which branch managers
contact all customers with negative feedback/intention to decrease/intention to leave the Bank

UniCredit 2023 Integrated Report

Supplement

Customer relationshipin Bulgaria
Client Experience Coach– Our Client Experience Coach continued to visit
branches with lower NPS, or branches thatrequested this support– The aim was to support employees’ behaviours andin understanding the power of Client Experience– 15 branches were visited with a positive trend
monitored in eight of them after the visit from the
Client Experience CoachAll initiatives had an immediate impact on reinforcing
the importance of the client experience among branch
employees. Webinars for the close-the-loop wereconducted, explaining the importance of the process.
Both initiatives led to an increase of the level of NPSof the branches.
Bulgaria

103Impact on communities
Social and Relationship Capital

Design thinking and process mapping are important tools
for improving the customer experience. In this way, we analyse
processes from the client’s perspective, for example byidentifying complexities that could be removed and ways inwhich we could enhance the customer experience through allchannels. All the data and feedback collected are analysed tohelp us redesign processes and improve operations to better
meet client needs.
Group-wide, our complaints management system allows us
to identify sources of concern and promptly resolve them tothe satisfaction of our clients.
Our Group remains committed to strengthening consumer
protection and improving awareness. In 2023, for example,
Noi&UniCredit – the longstanding partnership in Italy withnational consumer associations, which aims to strengthen
consumer protection and build customer trust – focused on
three key issues: cybersecurity, ESG and prevention of overindebtedness.
In 2023 we used innovative communication channels suchas social networks, web platforms and videos to launch
initiatives including:– “Recognise the Scam” to prevent IT scams, in partnershipwith Casa del Consumatore– “SURF – Sustainability, social utility and financial
responsibility” to enhance the culture of sustainability, inpartnership with Adiconsum

Regulators
In 2023, we continued our proactive communication andengagement with regulators at national, European andinternational levels in order to enhance the EU sustainablefinance framework, increase its usability and facilitate thetransition to a low-carbon economy.
We have offered our contributions to the discussions held by
EU institutions (EC, EP, EBA and ECB), both on a standalone
basis and jointly with banking trade associations, and also
contributed to the development of a sustainable financial
framework that can meet the needs of all stakeholders.
We have engaged with relevant stakeholders highlighting:the importance of global alignment on the use of prudential
tools to address ESG risks, avoid the risk of fragmentation andmaintain a risk-based approach to the capital framework; theneed for comprehensive and comparable ESG data to support
investors’ decision-making processes and facilitate banks’ risk
assessment and disclosure obligations under different pieces oflegislation; and the need for a framework that facilitates rather
than hinders the financing of the transition to a green andsustainable economy.

2023 Initiatives for regulators
EU Green Bond (EuGB) framework

Engaging with stakeholder groups
UniCredit is committed to managing relations with EU
authorities and performing our advocacy activities following thehighest standards of integrity, transparency, professionalism
and cooperation. At EU level, UniCredit is registered in the
EU Transparency Register of the European Commission, theCouncil of the European Union and the European Parliament.
Political contributions, including donations and other politicalspending, in any tangible or intangible form are forbidden.

Corporate Sustainability Due
Diligence Directive
ESG provisions in the Banking Package
legislative proposals
Transition finance0

European Sustainability ReportingStandards (ESRS)
Disclosure standards for the EU
Taxonomy environmental objectives

104

UniCredit 2023 Integrated ReportOverview
Our Context

284 meetings
25 roadshowsIwith institutional investors

Governance, Risk and Compliance

For this reason, we have strengthened our relationships withexternal stakeholders such as ESG investors and analysts
and ESG rating agencies. We hold dedicated meetings with
ESG investors and ESG rating agencies to increase disclosure,the understanding of our ESG approach and improve thepositioning of the Group. The proactive management of ESG
rating agencies has been achieved through comprehensive andregular disclosure tracking of the progress of ESG strategies.
Tangible results of the Group’s ESG Strategy implementation
are reflected in the key external ratings improvements we
received in 2023.

Our Investor Engagement in 2023

Our Impact

Investors are increasingly considering ESG factors in theirinvestment decisions. ESG ratings and scores are therefore very
relevant, influencing sustainable investor and fund decisions
and strategies. Furthermore, many more investors are using
internal scoring models to assign ESG scores to define theinvestable universe.

Our Strategy

Investors

Page 46 Read more in the Strategy chapter
Annexes
Supplement

UniCredit 2023 Integrated Report105Impact on communities
Social and Relationship Capital

Deep diveEngaging with NGOs
We have strengthened our engagementwith NGOs and civil society at large,
carrying out dedicated initiatives whereappropriate to assess any gaps identified in
our ESG strategic positioning and highlight
the Group’s improvements regarding
sustainability material topics such as justand fair transition, Net Zero, biodiversity,
policy updates (e.g. weapons), STEEL
principles and decarbonisation.

During the year, we continuously engaged with
NGOs in order to:– Receive their feedback to update our
sector policies– Share our targets on official commitments
before disclosure (for example, Net Zero)– Participate in and contribute to banking surveys
and engagement questionnaires– Interact on relevant reports and roundtables– Involve them in our stakeholder engagement
initiatives (in particular the ESG Day)
Group

106

UniCredit 2023 Integrated ReportOverview
Our Context
Our Strategy

Invest in social andeconomic development

Our goal is to grow by offering development
opportunities to communities, clients and the
local area. We do this through our work andby building financial and social inclusion withcorporate citizenship and philanthropic initiatives.

Our Impact

I

Community contributions

Governance, Risk and Compliance

Our contribution to communities 2023

By geography, 2023 (%)€59.6mCE&EE

As measured by theBusiness for Societal Impact(B4SI) reporting framework

18

3Germany

Annexes

79
Italy2

Supplement

By Type, 20233 (%)

By Focus, 20233(%)
Economicdevelopment

In-kind
9

4

Management
costs
9

Time

Arts/Culture

10

17

44
Environment
Cash

78

Other
support4

1

Educationand youngpeople1216Social welfare

2. Includes also UniCredit Foundation.
3. Management costs are attributed proportionally based on contributions by focus.
4. Other support refers to emergency relief, health, and other activities that cannot be classified.

UniCredit 2023 Integrated Report107Impact on communities
Social and Relationship Capital>> The Principles for
Fostering financial inclusion
We offer a broad range of customised solutions toenable individuals and businesses to gain ready accessto financial products and services. At the same time,
we are strongly committed to helping improve personal
financial skills, enabling people and businesses to makeresponsible decisions.

Responsible Banking
Commitment on
Financial Healthand Inclusion
As a signatory bank of the PRB Commitment on
Financial Health and Inclusion, we have also set
new targets for 2025 related to the group of clients
we have identified as the most relevant strategic
target, namely young people (meaning people
aged 17 to 30).
In the first data collection of actual data for theselected indicators in 2023, we reviewed in detailfigures and processes, also implementing specific tools
and reports to collect and consolidate it.
To align figures and ensure consistency acrossall the countries, some adjustment was required,thus resulting in a change of the official targets
previously communicated.
New targets are more challenging for both indicators,
estimating a greater growth compared to the baseline.

Our strategic PRB indicators offinancial inclusion for young people
New customers from young people, per month (2023)

35.5%,- -- -- Target
35.5

36.2

37

37.7

2023

2024

2025

2023 Actual

Young customers with two or more active UniCredit
financial products, from different categories (2023)

12.6%
Target
12.3

12.6

13

2023

2024
2023 Actual

2025

Group

108

UniCredit 2023 Integrated ReportOverview
Our Context
Our Strategy
Our Impact
Governance, Risk and Compliance– Dedicated product for citizens coming from
Ukraine or clients of Ukrainian nationality –an ordinary current account for consumers, witheconomic benefits for refugees/asylum seekers– NEW: ‘MicroCredito di Libertà’ (Italy only): anagreement signed between the Minister for Equal
Opportunities and the Family, ABI, Federcasse,
Ente Nazionale per il Microcredito (ENM) and
Caritas Italiana, to facilitate the granting offinancing, in the form of social microcredit,in favour of women who are victims of genderbased violence.
– The Project aims to emancipate these womenfrom forms of economic subordination throughguaranteed financing – at 100% of the amount
disbursed – by a specially established guarantee
fund with public resources from the Departmentof Equal Opportunities called the Guarantee Fundfor Social Microcredit.

UniCredit 2023 Integrated Report– Social microcredit financing is intended for thepurchase of goods or services necessary to meet one’s
own basic needs or those of household members,
excluding an abusive spouse or partner, and including,but not limited to: medical expenses, rental fees,
expenses for retrofitting one’s main home and energy
upgrading, fees for access to essential public services
such as transportation and energy services, expenses
necessary for access to schooling and training

Supplement

Low income and vulnerable individuals
and families– Discounted accounts with basic functionalities
and debit cards for people with reduced personal
financial management abilities and clients who
have basic banking needs (transactional products
such as BasisKonto, Libretto One, My Genius
Green, My Genius Base)

Annexes

Our customised
solutions offer

Young people– Simplified opening process for single parents, freesavings account and student account with cards andstudent loans, guaranteed first home mortgages
for young people
People with disabilities– Special credit offer for physically and visually impaired
people (ATM accessible without using the standard
touch-screen and via wheel chair, debit card with
Braille, cash delivery home service) and barrier
free branches– Improving digital channels and accessibility,
including for elderly clients
Microcredit– Offer with a tailored-made service model
supporting individuals at risk of financial exclusion,
micro-entrepreneurs and start-ups

109

Impact on communities
Social and Relationship CapitalE)

Our microcredit service model supports micro-entrepreneurs
and strengthens their skills with an end-to-end process,from business plan development to support during the first
period of the business activity, and leveraging local andinternational partnerships.

>9,300<<Microcredit5

Banking academy
initiatives 2023
Impact of Startup Your Life:the financial, entrepreneurial and sustainability
education programme that aims to develop the
employability of Italian high school students

disbursed loans for a total
amount of c.€177m>26,200

76%+34%

of cumulative inclusiveness index6
representing the product level offinancial inclusion (Italy only)c.52%

students involved in 430 schools

average increase in knowledge compared
to when beginning the programme77%

beneficiaries are start-ups (Italy only)of the female students involved declaredthat they had approached economic andfinancial subjects thanks to this programme

Financial education75%

In 2023 we continued to carry out several financial education
and awareness initiatives across our countries, focusing onpriority target beneficiaries such as the young, women andvulnerable individuals, while also using new communication
channels such as social networks and web platforms.

of participants showed greater awarenessof environmental and social sustainability
issues at the end of the courseGroup level results 2023

>202,300

beneficiaries of financial education
initiatives (of which more than 75% areyoung and more than 20% are women)>146,100

beneficiaries of financial and ESG
awareness initiatives (of which morethan 60% are women)

5. Cumulative data, from 2017 to the end of 2023.
6. It represents the microcredit’s beneficiaries who have at least
one of the following vulnerability characteristics: high risk
(Standard & Poor’s vulnerable risk clusters from B to CCC),
NewCos (three years of life or less on the date of disbursementof the loan), young (less than 30 years old), compulsory school
education level, foreigner, unemployed or inactive.

110

UniCredit 2023 Integrated ReportOverview+49%

knowledge level improvement(pre- vs post-intervention assessment) on the
topics of risk-return tradeoff and interest rates+108%>1,800participants representing Profit, Non-Profit
and Institutions, have been involved in the
Impact of Road To Social Change programme+61%

Annexesknowledge level improvement (pre- vs postintervention assessment) on the topics of
insurance policy and supplementary pension

As with previous editions, a new professional profile,certified by the POLIMI Graduate School of Management,
the Social Change Managers, has been developed,
creating a unique community of change enablers withsustainability at their core and a clear focus on ESG issues
such as ecological transition, the generation of positivesocial impact, evolved governance models, measurement
systems, taxonomies, digitalisation, and impact finance.

Governance, Risk and Complianceaverage increase in knowledge compared
to when the programme startedI
Our Impact+64%

Stakeholders’ Capacity Building On Sustainability
Road To Social Change (third edition) is a projectin collaboration with Politecnico di Milano/
Tiresia, POLIMI Graduate School of Management,
AICCON, Fondazione Italiana Accenture ETS and
TechSoup. Its aim is to support SMEs and Non-Profit
Organisations in integrating the three ESG dimensions
in their sustainability journey to generate bothan environmental and social impact, in line withadvanced governance models

Our Strategy

The Conversazioni sul Denaro programme has involved
over 41,000 participants in Italy. The project’s goal
is to improve financial skills and education on money
management, by using different levers such as in-person
and online talks held with relevant stakeholders, andonline financial education courses.

Our Context

Empowering Women: Conversazioni
Sul Denaro (Money Talks)
An innovative financial education project in its third
edition aiming at overcoming gender stereotypes andsupporting the financial empowerment of women

Supplement

knowledge level improvement on
the topic of generating social impact

69%of the Social Change Managers trained
declared an increase in their skills

UniCredit 2023 Integrated Report111Impact on communities
Social and Relationship Capital>>

Deep dive

UniCredit
Foundation:equipping Europe’s
students with theessential tools tobuild a better future
for themselves

112

In line with UniCredit’s overarching social
Strategy, the UniCredit Foundation is fullycommitted to equipping Europe’s students
with the essential tools to build a better
future for themselves and their communities.
This commitment is underscored by the Groupfunding allocation to the Foundation increasingfrom €4m in previous years to €20m for 2023.
This increase has enabled the Foundation to makeimportant progress in turning its strategy into action –making a real difference in more ways than ever before.
As education is a long-term process that requires
sustained commitment and support, alongside greater
responsibility, this enhanced budget has given greater
confidence to plan ahead and target support to theFoundation’s priorities (School, Job and University) via
four distinct channels of action:

UniCredit 2023 Integrated ReportOverview
Our Context
Our Strategy>> Establishing partnerships€20m>> Working at grassroots level+600,000

I

Targeted students being trained
over the period 2023-26

Governance, Risk and Compliance

Supported grassroots initiatives through a dedicatedCall for Education, thanks to an in-depth knowledgeof our teams and networks in individual countries
and regions to address local educational issues.

Total resources committed in 2023

Our Impact

Entered three-year partnerships with global
education network organisations to deliver
sustainable outcomes across our operating countries.

>> Creating opportunities

Offered scholarships, research grants, and awards
to provide young people with opportunities
for high-level specialisation abroad, fosteringa research environment that contributes toadvanced knowledge, impactful initiatives andquality publications.
Encouraged our people to take advantage of a range
of opportunities available to enhance their own lives
and those of others across the world.

Other
Emergencies
Employees' engagement
12
4Youth &
Education
15(University)

Annexes>> Engaging with our people

Investments by intervention area (%)

Supplement

78

Youth &
Education(School & Job)

Expansion in geographical distribution reached in 2023. Focus on School and Job investments (%)

•
•

•

•

Central Europe (Austria, Czech Republic, Slovakia, Hungary, Slovenia)
Germany
Italy
Eastern Europe (Bosnia and Herzegovina, Bulgaria, Croatia, Romania, Serbia)

2023

2022

14

Germany

67

33

EasternEuropeUniCredit 2023 Integrated Report

Italy

26

22

Italy

38

CentralEuropeEasternEurope113

Impact on communities
Social and Relationship Capital>> Main initiativesof the Foundation
School & Job
In 2023 UniCredit Foundation launched two
three-year partnerships with global educational
networks to promote educational equality andtackle early school leaving, and supported
grassroots initiatives through a dedicated Callfor Education.
Junior Achievement (€6.5m)
The partnership covers 10 countries where we operate(Austria, Bulgaria, Czech Republic, Germany, Hungary,
Italy, Serbia, Slovenia, Slovakia and Romania). It aims
to equip the most vulnerable youth with the skillset
and mindset to build thriving communities, withearly interventions in order to reduce school drop-out
and to support their transitions from learning toearning. Adolescents and young adults (age 10-19)
will be inspired, empowered and mobilised to see new
possibilities for themselves and increase their awarenessabout the long-term benefits of education, while being
inspired to find careers they are passionate about.

Teach For All (€5.5m)
The partnership operates in six UniCredit countries(Italy, Germany, Austria, Slovakia, Romania and Bulgaria).
It recruits and trains promising teachers who arecommitted to teaching in marginalised schools for at least
two years. Through ongoing training and development,these teachers become strong classroom leaders anddetermined advocates for their students. Through thiscommitment and boosted support, UniCredit Foundation
and Teach For All will combat educational disparities
experienced by children throughout Europe and prevent
early school drop-out rates among youth, by giving
young people the quality of education they deserve toseek new opportunities and fulfil their career ambitions.
UniCredit Foundation and Teach For All’s partnership builds
upon the strong relationship between the network of
independent partner organisations and the UniCredit Group,
first established in 2022.

Call for Education (€3.2m)
The call is aimed at identifying and supporting programmes
combating educational disadvantage in 10 different
European countries where UniCredit operates (Austria,
Bosnia and Herzegovina, Croatia, Czech Republic, Germany,
Hungary, Italy, Serbia, Slovakia and Slovenia). Out of a totalof 175 candidates, 18 programmes dedicated to secondary
school students (age 11-19) implemented by non-profit
organisations have been awarded almost €3.2m.
The selected projects will focus on the following goals:– tackling early school leaving– encouraging university attainment– acquiring adequate skills to enter the job market

114

UniCredit 2023 Integrated ReportOverview
Our Context
Our Strategy

University
The Foundation strives to support the best talentsin the fields of economics and finance by launchingscholarships, research grants and research awards
in the countries in which the Group operates.

– two Education Research Grants on education and the first
Annual Report on Education (€0.5m)

Employees’ engagement
In line with UniCredit’s values, the Foundation is
also dedicated to involving Group employees insocial initiatives.
Among these:– The 21st edition of the Gift Matching Program (GMP) to
engage employees in charitable initiatives across all Groupcountries. This is an historic initiative for the Foundation,
aimed at promoting the development of a culture ofsolidarity within UniCredit and boosting colleagues’
engagement and a sense of belonging. Groups of UniCredit
employees promote projects of their choice run by nonprofit organisations – and the Foundation doubles their
donations. During the 2023 edition, the GMP continued
to make an additional contribution to initiatives aimed at
fostering educational equality.

Annexes– a Visiting Researcher Programme to bring seven researchers
from locations in the Bank’s extensive European network
to Harvard University in 2024–2025 (€0.5m)

Governance, Risk and Compliance

In 2023 the Foundation established an Educational Lab tocarry out research on education in our operating countries.
Under this framework, we launched:I
Our Impact

Through the scholarships, the Foundation finances the
specialisation abroad of talented students, funding PhD
programmes, masters and summer schools (also for UniCredit
employees) at the top international universities. The research
grants also encourage the best brains to return home,retaining young talents in Europe and supporting researchin the field of economics and finance. In 2023 UniCredit
Foundation invested around €2.0m to support European
students with scholarships and fellowships at the mostprestigious international universities.

Supplement– A framework through which our people candonate funds to help communities affected byhumanitarian emergencies.
– Summer school scholarships that can improve
employees’ skills and knowledge, with the number ofscholarship schemes doubling from 10 to 20 in 2023.

€0.9m

allocated to employees’
engagement activities
for 2023

UniCredit 2023 Integrated Report115Impact on communities
Social and Relationship Capital>> UniCredit
and Cariverona
Foundation:
Tomorrow’s
UniCredit Award
For the 18th ArtVerona modern andcontemporary art fair, UniCredit andCariverona Foundation, with the cooperationof Urbs Picta, launched a prize which
contributes to the achievement of an artistic
residency in Italy or abroad for a creative
space that allows the winning artist and/orcollective of artists the opportunity to comeinto contact with different cultural, artistic
and scientific experiences, to develop a
research project focused on biodiversity andurban regeneration, with the production of awork (or cycle of works) as the final output.

0 Italyc.€9m

invested in cultural initiatives
by UniCredit, in 2023

116

Promoting and supporting culture
UniCredit is proud to support arts and culture as an engine ofsocial, economic and sustainable development, with a focus
on youth and education. Our collaborations are built on ashared commitment to social issues, embodying UniCredit’s
pan-European aim to strengthen bonds with its communities,
helping to improve quality of life and togetherness.
The Group has continued to support its establishedpartnerships, such as with the Teatro San Carlo in Italy, as well
as renewing its support for national examples of excellence
including the Filarmonica della Scala and Arena Foundation in
Italy, Bavarian State Opera and Kunsthalle Munich in Germany.
The partnership with Teach for All is empowering communities
in seven core markets, designing an innovative, global initiative
to reimagine education systems, engaging UniCredit employees
across Europe. This is complemented by continued cooperation
with other bodies, such as our 10-year relationship with
Osservatorio Permanente Giovani-Editori.

Launch of the new UniCredit
Art Collection website
Bring art collection to a wider audiencethrough digital innovationjDevelop educational programmes on art
for children and adults to learn

Increase access to the art collection through an ongoingprogramme of short- and long-term loans across Europe

UniCredit 2023 Integrated ReportOverview
Our Context

Vertical Selection Board to strengthen
the social component of ESG

300

Scouting of high potential start-ups,of which 300 with impactful ambitions
out of the 560 part of the platform

Examples of start-ups
witha social purpose

18

Women-led
Funds
start-ups
involved in 2023

42

1-to-1
Meetings

ESG Tech Day“Il futuro sostenibile” – to strengthen energy
transition projects
Part of a series of ESG Tech Days, to support:with high ESG standards through– start-ups
investors and corporate connections– corporate and investors in scouting business
opportunities on sustainabilityc.80

Investor andcorporateparticipantsFighting unemployment: solutions to fight Italian
youth unemployment with a focus on women andunderdeveloped territories

Italy

5

Start-ups
andscale-ups
involved

Supplement

Digital health: digital health solutions supporting
modern fragilities of people

Annexes

Digital platforms: to strengthen skills anddevelopment of employees, women and younger
generations leveraging on individual caring experiences

20

Governance, Risk and ComplianceImpact innovation vertical

Women leaders
Two days to strengthen the Governance componentof ESG. Support young women founders andmanagers in growing their tech projects throughworkshops and investor meetings

Our Impact

In Italy, since 2009, we supported highly
innovative start-ups
and SMEs through
UniCredit Start Lab, a business platform
operating in Italy, with the aim of identifying
and supporting the business growth of thebest innovative Italian businesses

Our Strategy

UniCredit Start Lab: A strong shift
towards ESG ambitions

Read more on the microsite

Supporting migration: solutions offering support,
training and job matching opportunities to migrants

UniCredit 2023 Integrated Report117Impact on communities
Social and Relationship Capital

E)

Continuous interaction with stakeholders is fundamental
for community growth. Only by remaining close to ourstakeholders can we truly understand their needs and evolve
our efforts to meet them.
For example, as a partner in the Italian Alliance for
Sustainable Development (Alleanza Italiana per lo Sviluppo
Sostenibile (ASviS)), we contributed to organising the
Sustainable Development Festival in Italy to help increaseawareness of ESG topics, in line with issues raised by our
stakeholders. This initiative constitutes a single, widespreadand inclusive campaign comprising hundreds of events
organised online and with hybrid formats throughout
the country.

<<

Supporting competitiveness andcontributing to community growth

UniCredit per
L’Italia: we carefor our clients
UniCredit put in place a new plan for tangible andeffective measures to support Italian families
grappling with inflation and, at the same time,enterprises providing new resources for thedevelopment of specific sectors and territories,
Unicredit remains committed to the country andits communities.

Close to families and individuals
Offering cost control on current accounts, flexibility on
mortgage repayments for Individuals, free instalments on
credit card payments based on ISEE and bonus to families
to cope with a newborn.

Close to enterprises
New plafond to support Italian enterprises on tourism
and ZES areas, a moratorium on loans to enterprises, POS
commissions reduced to zero for one year for merchantson all transactions less than €10.

Families and individuals
1. Mortgage flexibility
The client holder of Mutuo UniCredit and other mortgage
loans with a flexibility module, having exercised theoption, are still granted the possibility to re-determine
the client’s mortgage instalment on an ongoing basis.
These clients can suspend the re-payment of theprincipal for 12 months, postpone payment up to a
maximum of three instalments and reduce the monthly
instalment extending the repayment plan up to a
maximum of 48 months. Our clients can submit theirrequests to our branches to benefit from these measures.
UniCredit branches are always available to find the best
and most suited solution to meet and further needs ofour clients.

118

UniCredit 2023 Integrated ReportOverview
Our Context
Our Strategy

Our Impact

I
Governance, Risk and Compliance

3. A €500 bonus for new borns from 1 January,
2023 until 30 September, 2023
UniCredit offers a €500 bonus to all clients who will
open a new loan of at least €10k, in UniCredit branches
or through UCD, to cope with their daily family expenses.
To obtain the bonus the clients just have to submit the
New Born Certificate when submitting their requests.
4. Current account cost
Since 1 April, with increasing interest rates in the market,
UniCredit has maintained its commitment to reducing
the current account cost to roughly 4.5 million of clients,
restoring previous conditions and allowing clientsan average estimated saving of around €50 per year.

UniCredit 2023 Integrated Report

5. Support tourism and ZES areas
UniCredit will allocate a dedicated €6bn Plafond (upper
limit) of new financing to all enterprises (Retail andCorporate) to support tourism and ZES areas.

Supplement

The ISEE certification will be required in order to grantthe discount starting from the month following theclient’s request.

Enterprises

Annexes

2. Support to incomes less than €25kwith free of expenses installment
In order to cope with their daily expenses, holders ofa Flexia Card with an Equivalent Economic Situation
Indicator (ISEE) of less than €25k – or clients that open
a new card – will be granted the opportunity to ask attheir branch or through UniCredit Direct by 30 September
for a remodelling of their Flexia Credit Card payments
by an instalment charge up to 31 December, 2023 withno commissions and a zero interest rate.

The enterprise will be able to request a loan and repay
only the interest during a pre-depreciation period of
36 months.
6. Moratorium for enterprises
Extension of UniCredit moratorium. Enterprises thathave not benefited from public guarantees, witha MLT loan with UniCredit, will be eligible to benefit
from a moratorium for the principal share up until
31 December.
7. POS commissions zeroing
Due to the steady increase of card payments, weare supporting retailers with a turnover less than €1mby offering zero POS fees for 12 months on paymentsof less than €10 through a POS machine.

0 Italy119Impact on communities
Social and Relationship Capital

Main initiatives:
To Support Companies Through Public Funds

Snapshot:Our Support to Sector-Specific Companies

0 Italy

Start-up

Fondo Garanzia PMI and Garanzia Italia SACE
Beni Strumentali – Nuova Sabatini European
Investment Bank (EIB) programmes – Eventicalamitosi/Sisma, Resto al Sud initiatives€8.1bn0 Italy (Start Lab)

690

participating companies

granted68

supported companies>€21m

27,871

Central and Eastern Europe (CE&EE)

COSME, SME initiative, Easi Umbrella,
Linked risk sharing€73.1mgranted429

supported companies
Invest EU€101m
granted49

supported companies
Cooperation with Austrian Promotion Agency,
European Investment Fund, Austrian Export
Credit Agency (OeKB)

supported companies

contributed by stakeholders>€99msince 2017
Germany464

supported companies€36.2mgranted

CE&EE

328

supported companies€15.36m
granted€1.26bn

Social housing

175

12

grantedsupported companies

CE&EE

supported companies€228m
granted120

UniCredit 2023 Integrated ReportOverview
Our Context

Tourism

0 Italy

0 Italy

projects

supported companies

grantedI€455.4m

Governance, Risk and Compliance€630.3m

3,856

Our Impact

11

Our Strategy

Project FinancegrantedGermany

CE&EE

10

17

€909m

€3m

projects

CE&EE

grantedAgriculture

0 Italy€140m

supported companies

grantedThird sector

0 Italy

1,700
new clients€108.3m
grantedUniCredit 2023 Integrated Report

Supplement2

projects

Annexesgrantedsupported companies

4,816€632.1m
granted

CE&EE

2,656

supported companies€880.3m
granted121

Impact on communities
Social and Relationship Capital

Impact financing
Our support to enterprises and organisations that arecommitted to achieving a positive social impact that
address the main social needs of our community.

c.351

88%

projects for a total amount ofc.€572.1m

of reporting organisations havestrengthened their economic andfinancial sustainability and carried out
their initiatives thanks to our loans

cumulative disbursed loans
Loans disbursed by sector (%)
In Italy 256 projects received loans totalling €373.3m

Conservation and recovery of culturaland artistic heritage and other6
8

Promoting job
integration 11

Health and 13
medicalassistance89%

of reporting organisations which
achieved or exceeded the social
objectives of their projects

Highlights on main outputs

Educationand training

Direct impacts achieved in 20238

43 Welfare
sectors79%

of reporting organisations havestrengthened their skills by
improving their ability to measure
the impact they generated

86%

of reporting organisations would
recommend UniCredit as a lender-19

Social housing

Projects with pay for success7 (PFS)58%

of projects matched with PFS mechanismc.€2.8mof allocated amount for PFS since thelaunch of Impact Financing in 2017

7. The recognition of further economic benefits, in termsof donations or repayment of interest, to clients that
demonstrate they have achieved a clear, shared andmeasurable social impact.

122

UniCredit 2023 Integrated ReportOverview
Our Context

Cumulative achieved results 2020-2023

All financed projects reached or exceeded targetsof their achievements (output):

Beneficiaries reached (m)beds (117% of target)

medical health services(130% of target)

4.9m

meals (243% of target)

100%of beneficiaries reached in
welfare are at risk of poverty

1.5

0.34

1,863

2021
2020

2023: 1,361,445
2022: 2,941,072
2021: 1,547,497
2020: 346,505

Jobs created (000)•Jobs created•of which job inclusion

1,384

Four

4,632 year

total

Four year total: 4,362 (of which 1,384 job inclusion)

92%

experienced some positive change
on one or more social dimensions(vs a target of 80%)

2022

Supplement

beneficiaries reached9

2.9

2023

Annexes

0
1.36m
0

1.4

- I
Four
year
total

Governance, Risk and Compliance- -Four year total: 6,196,519

6.1

Our Impact

0383,141
0
1,858

Our Strategy

Indirect impacts achieved in 20238

134
53

633

1,863

2023

564

1,692

2022

635

172

2021
2020

2023: 1,863 (of which 633 job inclusion)
2022: 1,692 (of which 564 job inclusion)
2021: 635 (of which 134 job inclusion)
2020: 172 (of which 53 job inclusion)jobs created, of which
633 job inclusionsof disadvantaged people

8. Data refers to 106 initiatives that during 2023
provided reporting related to 2022 results.
9. Were reached in the following sectors: 7% health,
88% welfare, 5% education and training.

UniCredit 2023 Integrated Report123Impact on communities
Social and Relationship Capital

216,000+
Total cumulative students
trained over the period
2022–2026–

124

2,000+

Total cumulative teachers
selected and trained overthe period 2022-2026-

Overview
Our Context

Unlocking transformation, together.

Our Strategy

For the teachers
who arechanging futures

Our Impact
Governance, Risk and ComplianceMore than any other single intervention, education has
the power to reduce inequalities and transform lives.
Our three-year €5.5 million partnership with global education
network Teach For All aims to promote fairness in education– nurturing collective leadership in young people and, in thelong term, transforming society. Teach For All is a global networkof 61 independent, locally led and funded partner organisations
whose stated shared mission is to “expand educational opportunity
around the world by increasing and accelerating the impact of social
enterprises that are cultivating the leadership necessary for change”.

Annexes

Active in six of our operating countries – Austria, Bulgaria, Germany,
Italy, Romania and Slovakia – our partnership focuses on training
educators to work in underserved schools in order to alleviate
educational disparities and cut dropout rates.

Supplement

Building on the robust existing relationship established between
Teach For All and the UniCredit Group in 2022 – which has alreadytrained and supported 592 teachers and improved the educational
experiences of over 40,600 students – our new and extended
partnership will train over 2,000 extraordinary teachers, providing
education to over 216,000 students by 2026. In addition, Teach
For All’s network partners will develop the leadership skills of morethan 3,600 alumni and more than 10,870 system-wide teachers.
In 2023, our employees also played their part by volunteering theirtime and expertise to support Teach For All’s efforts, and many
more will be engaged in the years to come.

“ We are proud of this partnership with UniCredit

Foundation. Its support will be instrumental in
helping us to scale our work and develop a pipeline ofteacher-leaders who continue to change educational
outcomes for some of the most marginalised
students in Europe. Together, we are committed toensuring that every child has access to opportunities
to fulfil their potential and shape better futures forthemselves and the world.”
Wendy Kopp
Co-Founder and CEO, Teach For All
Group

125

Impact on communities

Intellectual Capital

Material topics:
Digitalisation and innovation

Value to clients

We are committed to optimising andinnovating our systems and processes
to provide our clients with simple, secureand user-centric solutions that meet theneeds and challenges of rapid change.

Climate andenvironmental impacts

Digital security
Political and societal changes

Lean and solid bank
Diversity, inclusion andemployee engagement
Positive impact on society

2023 Results+68%

Growth in resources
working in Agile~15%

Digital global
workforce reskilled

50%

Data accessibility
achieved

Targets

380

Applications to be
decommissionedby 2024126

5,200

Colleagues participatingin Digital & Data upskillingin 2022-2024
UniCredit 2023 Integrated ReportOverview

We have taken important steps in executing and implementing
our Digital & Data Strategy – achieving our targets andrevitalising our end-to-end digital footprint in accord with thegoals defined in our Group industrial plan, UniCredit Unlocked,
and with our ambition to be the Bank for Europe’s future.

Our progress so far

Our focus has remained on bringing our Group closer together,accelerating our digital transformation, attracting andretaining talents and core competencies, growing our scale andexpanding our scope for the benefit of all our stakeholders.

Our Digital & Data priorities
2023 progress– In 2023 we completed our journey of rationalisation
We are working towards reducingof our investment model to facilitate our digitalcomplexity and implementing a leaner
transformation enabled by the merger of UniCredit
governance, while also pursuingServices. For instance we introduced the Project
the simplification of our digital
Execution Monitoring (PEM) a new milestone inand operational services. These
our pursuit of simplification aiming to foster dataactions will support more efficientdriven decision-making and enhance collaboration
development of new applications andthroughout our organisation
strengthen our customer proximity

The digital transformation processCorecompetencies goes hand in hand with prioritising
an upskilled workforce and bringing
in-housecore competencies in-house throughdedicated training and new hires

34– Further updated our digital role framework,in line with our target operating model– 237 new hires, of which 95% in technical roles
such as Software & Platform Engineer, Architecture& Infrastructure Engineer, Cyber Engineer, Data &Analytics Engineer

New wayof working– 49% of the effort for software development
Our way of working is enabling us
projects delivered in Agile
to increase efficiency in terms ofboth shorter development times and– Enhancement of our Applications and Data Platforms
costs. Furthermore, it facilitates theto maximise the reuse of components, to standardise
maximisation of reusable components,
processes and to accelerate time-to-market, enrichingcreating economies of scale in the
our Ecosystem with new innovative and criticaldevelopment process of digitalfeatures and functionalities and continuing to migrate
services and products
and to build new services on them

Clientapproachfocusedon valuecreation

We are structuring our services around – Considerable investment to strengthen and extend
our UniCredit Customer Experience (UCX) platformproducts and functions which workand services, offering our customers an unparalleled
together to deliver quality at speed
digital journeyand value for our clients

UniCredit 2023 Integrated Report

Supplement

2

Optimised
investment
model

Annexes

1

I
Governance, Risk and ComplianceDuring 2023, driven by our four Digital & Data priorities,
we continued to evolve our operations, leveraging the strong
foundations established over the last two years.

Our Impact

Our aim is that every interaction should be driven by
personalisation, automation and data, rather thanperception. The transformation in our approach is taking
place within a new regulatory environment characterisedby higher expectations around resiliency and cybersecurity,
in line with regulations such as the Digital Operational
Resilience Act (DORA).

Our Strategy

In 2023, Digital Banking services played anincreasingly pivotal role in how we manage the“last mile” of the customer journey.

Our Context

Our approach– Introduction of innovative and advanced Digital
services for Caring and Bankinsurace, for instanceour new Genius extended offer, with special focus on
native green and sensitive to protection customers

127Impact on communities
Intellectual CapitalG

The year also saw us shift gears – preparing for the second
phase of our digital transformation under our new Group
Digital & Information Officer, Ali Khan. The change will see
us focus increasingly on the delivery of new and innovative
digital solutions, based on leading-edge technologies suchas cloud, data and AI, having laid a robust foundation overthe first few years of the UniCredit Unlocked strategic plan.
With this in mind, in 2023, we placed particular emphasis on
Digital Solutions, Digital Education and Cybersecurity.

Furthermore, we continue to promote diversity and inclusion
in our digital organisation, actively advocating for diversity andinclusion and creating more opportunities for all colleagues in
the field. For example, in 2023 we celebrated the “International
Girls in ICT Days” event which included the participation of top
digital woman managers. This event featured a panel discussion
on what it takes to succeed in a digital environment and how
we can support young women in acquiring the right skills to
become both digital users and technology creators.

We structured our actions along three axes:

Digital Solutions

We aim to offer unparalleled digital services
that are more accessible and personalised, alongwith a state-of-the-art user experience acrossall channels and devices. These are designed toelevate what we do to deliver unique solutions,rather than simple products.
Page 129 Read more

Digital Education

We bring our core competencies back in houseto optimise our digital infrastructure, applications
and processes, while developing and growing
our digital culture, skills, and talents.
Page 130 Read more

Cybersecurity

We are committed to improving our approach tosecurity and cyber – reinforcing our capabilities
to prevent, detect and respond to increased cyberthreats, while increasing our security knowledge
and awareness for customers and colleagues.
Page 131 Read more

128

UniCredit 2023 Integrated ReportOverview
Our Context

We have placed greater emphasis on Digital Caring throughour revamped Genius programme, offering a wider set of digital
services in areas including insurance. In addition, we are
increasing our focus on implementing a new way of working
and a new delivery model, particularly in Agile and DevOps, tosupport improved people engagement and collaboration.

I

Governance, Risk and Compliance

A key priority has been the simplification and the rationalisationof the digital user experience for our people and clients, inboth Corporate and Retail segments, proposing new innovativeup/cross digital service catalogues and eliminating redundant
steps or processes.

>>“On our journey towards a fully
digitally native and data-driven
customer experience, we havecreated a solid foundation forstandardised digital products,
which can be reused across ourgeographies and are a central partof our unique customer experience.”

Our Impact

In 2023 our Digital Solutions continued to lay thefoundations for a more sustainable future, retaining the
focus on data-driven digital services that allow us to
optimise our operations and improve the user experience.

Our Strategy

0 Digital Solutions

Luboslava UramHead of Digital Solutions

Annexes

To optimise our operations, we also placed greater emphasis on
the reuse of components and on the extension of our Digital
Application and Data Platforms.

UniCredit 2023 Integrated Report

Supplement

We have continued to enrich our Ecosystem with additionalinnovative and critical features and functionalities, while also
creating new services or migrating existing ones onto them.
This has enabled us to minimise time-to-market, standardise
and automate our processes and, at the same time, to increase
the efficiency and quality of our services.

129

Impact on communities
Intellectual Capital

G

Digital Education
Within the framework of the UniCredit Digital University,
we offer a variety of learning products, leveraging multiple
channels to meet a range of needs and ambitions.
UniCredit Digital University also helps us embed Group
Values in our teams, for example through workshopswith participants from all the Group’s operating countries.
Furthermore, it allows us to develop partnerships with external
communities through initiatives such as “SheTech” and“Meet Up”, encouraging the sharing of best practices throughbootcamps while also inspiring young female colleagues
specialised in STEM.
For our colleagues working in the Digital and Information
context, the university offers reskilling as well as upskilling
programmes. Our reskilling programme facilitates thedigital transformation of the Bank and is designed to support
professional role changes, while our upskilling programme isdesigned for those who want and need to improve, update anddevelop their technical competencies, through paths designed
for each particular job role. We also reviewed job roles during
the year, defining core competencies for each role, together
with SME (Subject Matter Experts). Both the reskilling and theupskilling paths include virtual and physical classrooms withteachers, as well as a self-learning mode, thanks to learning
platforms that offer a great variety of technical courses.

>>

For all UniCredit colleagues, the Digital University provides arange of educational formats for sharing knowledge about
cutting-edge technologies. Our most successful formats include
our Digital Pitches (live web-streaming presentations byexternal or internal experts), and our Talks (live web-streaming
lectures). All these formats have been accessed by a significant
number of UniCredit colleagues.
Moreover, the University leverages a partnership with SDA
Bocconi’s DEVO Lab, thanks to which it shares Academic
Researches and “in person” opportunities (events, bootcamps,
presentations) on forefront digital technologies with colleaguesof the Digital perimeter.
In 2023, close collaboration between colleagues from theDigital and Legal Departments enabled UniCredit Digital
University to develop an internal course dedicated to the
topic of Digital Accessibility. This course was made available
on the Group learning platform in Italian, English and German.
A shorter podcast is also available in these three languages, anda course in Italian Sign Language version is now available.
The course’s objective is to create awareness about disability,
highlighting the importance of planning, designing anddeveloping digital products that are accessible to everyone,
regardless of their (dis-)ability.
The course also highlights how accessibility is not only a legal
requirement, but supports inclusion across the business, which
in turn enhances Group Culture.

“In the rapidly evolving digitaland technology space, continuous
learning and innovation are
essential.
UniCredit Digital University
plays a vital role in unlocking thetalent of our people, empowering
them to reach their full potential
and drive our success.”
Giovanni Damiani
Head of Group Digital Governance

130

UniCredit 2023 Integrated ReportOverview

The bootcamp was an excellent opportunity
to promote education, talent, inclusion, andtechnical expertise.

88% of the participants were inspired by the
women in tech present at the event.
The event was one of the many successful
examples of UniCredit’s commitment in
empowering communities to grow.
Italy

UniCredit 2023 Integrated Report

In 2023 we established a new organisational approach,integrating Corporate Security into Digital Security.
This new approach was identified as the ideal solution to
enable the adoption of an efficient and cohesive security
strategy at Group scale, handling a wider range of threats.
Its main advantages include the simplification and optimisationof overheads, empowering E2E ownership and accountability,
increasing reactiveness in our decision-making processes,
optimising processes, policies and procedures, and increasing
our ability to protect our employees and customers acrossthe Group.
The updated Group Security Strategy was approved in
September by UniCredit’s Board of Directors, assisted by
the Board Committees. The Board also oversees the overall
execution of the Group Security Strategy and the managementof major security issues. Furthermore, it approves reports fromInternal Audit and other functions responsible for assessing
security. We incorporate a selection of dedicated cyber risk
KPIs in the Group’s Risk Appetite Framework (RAF) which is
submitted on a quarterly basis to the Board. Our Group Security
Strategy is also monitored periodically, both internally andthrough a third-party assessment on an annual basis.

Supplement

Feedback from the participants was
overwhelmingly positive, with many praising thequality of the training and the opportunity tolearn and grow in the tech and digital world.

Governance and oversight

Annexes

UniCredit’s mentors Joanna Pamphilis, Barbara
Vecchio, and Esmeralda Faccioli Pintozzi,
together with Chiara Brughera, the Managing
Director of SheTech, shared precious professional
insights and inspirational talks.

To manage cyber threats correctly and appropriately, we focus
on three key areas: strengthening governance and oversight,
increasing employees’ and customers’ risk awareness andenhancing threat identification and management.

Governance, Risk and Compliance

On 30 September 2023, at UniCredit HQ in
Milan, 50 young women under 35, including
10 UniCredit professionals, met to learn about
and boost their knowledge of the Python
programming language.

I

In 2023 cybersecurity continued to be among the mostimportant topics in our materiality matrix, and it was
highlighted in both the Strategic UniCredit approachand Stakeholders’ relevance dimensions.

Our Impact

In 2023, UniCredit partnered with SheTech,a non-profit organisation aiming to bridge thegender gap in the world of technology anddigital, to organise a Python bootcamp foryoung STEM professionals.

e Cybersecurity

Our Strategy

bootcamp
with SheTech

Our Context>> Python131

Impact on communities
Intellectual Capital

G

Security awarenessWith digital playing an ever-increasing role in all our lives, astrong and deep-rooted security culture is more important thanever. As employees are our first line of defence, raising theirawareness of the key issues is a vital step in fostering enhanced
security throughout the Group.
Our main initiatives to support employees focus on:– Training, through the UniCredit University Security, as partof UniCredit Digital University, leveraging an innovative
e-learning catalogue distributed Group-wide and released ina coordinated way in all geographical areas. We delivered atotal of 32 training courses between 2020 and 2023.
– Awareness, through Group phishing simulations,internal communication, and webinars at Group level.
Internal phishing campaigns aim to assess the susceptibilityof our employees to phishing attacks, and to create aproactive and security-conscious culture. We carried out atotal of eight exercises in 2023, and made the challenges
twice as difficult compared to 2022.
We also focus on increasing our customers’ risk awareness,engaging and inspiring them through social media and ourrange of communication channels.
During the year we raised awareness among customers,
stakeholders, and colleagues by developing internal andexternal initiatives to coincide with various relevant events.
For example:– We developed initiatives to reflect World Password Day(May) and then, to an even greater extent, during European
Cybersecurity Month (October). To support this latter event,
we launched our annual video campaign with a video on
phishing and carried out a series of internal communication
activities for the benefit of Group colleagues in collaboration
with UniCredit Digital University.

Threat detection and response
Detection processes and the capabilities of our Security
Operation Centre work continuously to manage cybersecurity
incidents. In 2023, we increased the scope of coverage andinformation managed by the Global SOC and also implemented
the holistic monitoring of intelligence sources for Digital
and Corporate topics. ICT security incident management
activities aim to ensure prompt detection of, and an adequate
response to, ICT security incidents, minimising negative
impacts to business operations and ensuring the best
possible levels of information confidentiality, integrity, andavailability. The process is directly linked to crisis management,
guaranteeing the activation of appropriate levels ofcommunication and support when necessary.
Our ongoing commitment to enhanced monitoring ensures the
security of our operations without disrupting the experience forour employees and customers. Our approach is to implement
security controls and monitoring seamlessly, in a transparent
way for the end user.
A seamless user experience is one of the main goals of ourstrategy – and this was ably demonstrated by two specificprojects in 2023:– Secure Internet Access to manage all the user web traffic ina more scalable and sustainable way.
– Passwordless authentication that enables authenticationon laptops through biometrics (fingerprint or face recognition)
or PIN, avoiding the use of passwords.

– We supported the CERTFin cybersecurity awarenesscampaigns, together with other main Italian financial
institutions and banks.

>>“We remain committed to establish
sustainable security services across theorganisation, continuously looking for
improving resilience and performance.
One of the main priorities is to continue
to secure the UniCredit environment for
the whole Group, while consolidating
our “security by design” approach.”
Gianluca Pometto
Head of Group Security

132

UniCredit 2023 Integrated ReportOverview3

New way of working

2Core competencies in-house

4

Client approach focusedon value creation

Table of main 2023 initiatives
Area

Priority

1

4

UCX Consumer Finance Italy– Time to Yes: 61 minutes cross channel;
15 minutes for branch

An optimised credit origination process developed under our
UniCredit Customer Experience (UCX) programme aimed atproviding a unique and seamless digital experience across all
devices and channels for our retail clients. Deployed on our new
cloud digital platform, the service was developed using an Agile
methodology and its modular components are scalable to othere-banking segments thus optimising investments, while process
automation features ensure efficiencies.

I– Time to Cash: 289 minutes cross channel;
179 minutes for branch– 270 Users Stories created in 2023

Governance, Risk and Compliance3

Output KPIs

Our Impact

DigitalSolutions

Description

Our Strategy

Optimised investment model

Our Context

1

In 2023 a migration has been performed to the new global
state-of-the-art platform based on UCX technology stack andenablement of Third Parties network (UniCredit and Allianz
agents) to the sale of Personal Loans resulting in a relevant
increase of efficiency and effectiveness (Time to Yes reduction).
DigitalSolutions1

4

An online platform facilitating SME and corporate clientsin the end-to-end management of foreign exchange (FX)
risk, alleviating their operational needs. Currently available
in Italy and Germany, the service was developed using an
Agile methodology, while the code was produced entirely
in-house. Deployed on our new cloud digital platform, its
universal, modular components are scalable to any country
and e-banking segment.

– 400+ live demo sessions/virtual classes
performed– 135 Signed Contracts

Supplement2– 500+ Pitched Clients

AnnexesPriority

UC Hedge

Functional enhancements done in 2023 to the platform include:
Platform upgrade to newer release, Flexi forward execution
with Take-Up, Risk analysis enhancements, Smart data import,
Multicurrency landing page, Retrieval of MtM (Mark to Market)
figures from Front Office systems. Expires report and rollout of
the first version in Austria in December 2023.
DigitalSolutions
Priority

3
4

Design Studio
Development of Innovative, Customer-Centric Digital Solutions
which provide clients with a seamless interaction with the Bankand its partners. Qualities such as empathy, vision, creativity,
groundedness and openness are key features of the design
process.

– 23 Team colleagues with Design Studiocompetencies– Three innovative new products designed
in 2023– In 2023, 49 customers tested the solutions
through interviews and 470 through survey

In 2023, Design Studio has focused on consolidation UX/UIcapabilities and embedding design thinking into the productinnovation cycle.

UniCredit 2023 Integrated Report133Impact on communities
Intellectual CapitalG

1

Optimised investment model3

New way of working

2Core competencies in-house

4

Client approach focusedon value creation

Table of main 2023 initiatives
Area

Description

Output KPIs

DigitalSolutionsGenius Care

– 589,000 Customer target baseline (330,000
existing and 259,000 new to Bank), of which
70% sensitive to protection

Priority

1
34

Digital
University
Priority

2

Genius Care is the new unique Italian product for individuals,
which includes current account, debit card (bio/digital), online
banking and “MyCare Famiglia” insurance module. The producthas been developed on the Global UCX platform, to maximise
future synergies and reusability of components.

– Simplification of private account catalogue
from 5 to 2 accounts– Target 7.7% account conversion fromtraditional to Genius Care accounts

The initiative will simplify individuals’ current accountcatalogue from 5 to 2 accounts and will contribute to protection
positioning, simplifying customers’ experience and the accessto insurance, also enabling up/cross selling actions. It will also
boost the switch to bio/digital cards and the digitalisation ofcustomers, reducing paper-based processes.
UniCredit Digital University
A platform to enhance our in-house digital capabilities, offeringon the one hand general courses related to cutting edge
technology for all employees to increase their digital awareness,and on the other, providing professional and technicaldevelopment paths for colleagues working in the Digital & Data
perimeter.

– 29 development paths, one for each
digital role
– 3 proficiency levels (beginner, competentand proficient) for each development path
– 280 reskilled colleagues– 2,400 upskilled colleagues– 10 Digital Pitch events, with 800+
participants on average– 4 Data Talks with 660+ participants
on average– 2 bootcamps with 250+ attendees in person
and remotelyGroup
Security
Priority

2
4

Cybersecurity – Awareness and Training
Development of security proficiency, considering that
security threats, increasing in terms of frequency, scaleand sophistication, require increasingly strong skills andspecific expertise.
The aim is to keep Group Security going in the twofold directionof internalising/hiring external experts and upskilling/reskillinginternal people while creating an environment that reinforced
the development of the principles of culture and identity.

– 32 training courses for our employees
between 2020 and 2023 (4 new in 2023),
320,000 hours of training– Dedicated training and induction for Top
Management (BoD and GEC members)– 2023 European Cybersecurity Month(October): number of impressions forcybersecurity contents on internal social
media: 48,500; number of participants/
connections to dedicated webinars: 1,500

In 2023 the training and awareness programme has been
approved by CEO, the phishing campaign increased incomplexity, moreover higher convergence of training andawareness for Corporate and Digital security topics andawareness sessions with universities have been fulfilled.
In particular, we systematically exploit external occasions
related to security threats to raise awareness among customers,
stakeholders, and colleagues. The most important event was
the European Cybersecurity Month (October). During ECSM welaunched our annual video campaign and carried out a series
of internal communication activities for the benefit of Group
colleagues in collaboration with UniCredit University Digital.

134

UniCredit 2023 Integrated ReportOverview

4

New way of working

2Core competencies in-house

4

Client approach focusedon value creation

Description

Output KPIs

Cybersecurity – Threat Detection & Response– All major Legal Entities covered by
Global Security Operations Centre (SOC)

Governance, Risk and Compliance

Cybersecurity incident management activities aim to ensure
prompt detection of, and an adequate response to, cybersecurity
incidents, minimising negative impacts (i.e. on business
operations, regulatory impacts) and contributing to ensure thebest possible levels of information confidentiality, integrity
and availability.

Our Impact

Priority3

Our Strategy

Group
Security

Optimised investment model

Our Context

Area

1

In 2023 the scope of coverage and information digested by
the Global SOC has been increased and a holistic monitoringof intelligence sources for Digital and Corporate topics has
been implemented.
Group
Security
Priority

4

Priority

1
4

Group
Security
Priority

1

Proxy Cloud aims to manage all the user web traffic in a morescalable a sustainable way, overcoming on-premise proxyarchitecture challenges due to the Company cloud adoption
and Remote Work strategies which are increasing the numberof concurrent connections and quantity of data that are being
processed by the proxies. In 2023, the cloud proxy adoption for
major Legal Entities has been on track: after having completed
the 2022 pilot, all eligible users have been enabled for onpremises and remote use cases. Moreover, in September 2023
the “Proxy Cloud Extension” initiative has been launched,currently on track, aimed to adopt the same technology in
CE&EE Legal Entities.
Cybersecurity – Single Sign-on (SSO) and Authentication
Passwordless authentication introduces strong two-factor
authentication on laptops. It enables authentication throughbiometrics (fingerprint or face recognition) or PIN, avoiding theuse of passwords. In 2023 the integration of applications in SSO
reached 65% of onboarded applications in scope and Biometric
Authentication has been introduced, allowing users to accesslaptop in passwordless mode while improving the level of
security through multiple-factor based authentication.
Cybersecurity – Holistic Security Approach
The convergence of Corporate and Digital Security as an holistic
approach proved to be the best approach enabling the adoptionof an efficient and cohesive security strategy at Group scale,handling a wider range of threats.

Supplement

Group
Security– 100% bank users with secure internet
access in major Legal Entities

Annexes1

Cybersecurity – Security Global Services & Products(“Secure Internet Access”)– 65% applications integrated in SSO,
in line with end of 2023 target– 100% of integrated corporate security
departments

4

UniCredit 2023 Integrated Report135Impact on communities
Intellectual Capital136

Overview
Our Context

Unlocking transformation, together.

We have also reduced the number of fields required to be
filled in to just 10 and reduced the number of clients required
to produce income documentation to under 20%, thanks to theintroduction of income models that determine affordability
based on information already available to the Bank.
Fully online account opening
Our new account opening process makes it easier and moreconvenient for customers to open new accounts entirely online– and even via comparison portals like Germany’s Check24 – injust a few minutes. This process is available 24/7, so customers
can open new accounts wherever and whenever is convenient
for them.

Digital investments
In Germany, we introduced a fully digital and paperlessprocess for customers to manage their investments rightfrom contract creation and advisory through to reporting.
We provide advanced analytics, in-depth scenario analysis,
portfolio optimisation and customised on-demand reports,
ensuring our teams are fully equipped to hold effective
conversations with customers about their investments.

Supplement

Simplifying the loan application process
We introduced new digital features to simplify and speed up
the loan application process for all our clients – whether they
are new or longstanding, and whether they prefer to interact inbranch, online or through our mobile app. For example, thanks
to improvements to our UCX platform, we have reduced theaverage time it takes to get a credit evaluation confirmed
to around 60 minutes on all channels – with times as fast as
16 minutes when using assisted channels, such as in branches.

Change on the cards
We rolled out a series of new innovations around card products
this year. For example, the Genius Pay prepaid card is an
instant digital card built on the Bank’s state-of-the-art UCX
architecture, providing customers with a unified digital journey
across all channels. We also enriched the functionalities ofour regular card services – adding instant virtual card issuance,
digital wallet enrolment, card delivery and PIN setting.

AnnexesThis is being developed on our new customer experience
platform, UCX, which uses the new architectural principles
of composable software development to standardise
customer experience across countries.

Governance, Risk and ComplianceStandardising and improving the customer experience
We are particularly focused on further improving our customer
experience by creating a new digitally native experiencethat is consistent from end to end across different devices
and all channels, to meet the need for simplification,interoperability and automation.

Our Impact

In 2023 we brought a range of game -changing
developments to retail banking customers across mobilebanking, cards, investments and loans – making banking
quicker, easier and more accessible.

Our Strategy

For our retailbanking customers
who want quick, easy,
accessible banking

In Italy, we added new features enabling our team to use
advanced risk metrics and analytics when performing theirpreliminary assessment of clients’ investment portfolios –improving risk assessment and monitoring.
New features and a new look for mobile banking
We rolled out visual improvements to the Homepage,
Product Area, Payment Area, and More sections of the mobile
app. The refreshed design has been configured to simplify
interaction for customers – making it quicker and easier
to address their needs, while providing a more engaging user
experience for customers looking into our insights, features,and products.
Group

137

Impact on communities

Natural Capital

Material topics

Digitalisation and innovation

We all have a role to play in protecting
the Earth’s natural resources and thecountless ways in which they make humanlife possible. It is therefore vital that wemonitor the impacts the Bank’s activities
have on Natural Capital.

Value to clients

Climate andenvironmental impacts

Political and societal changes

Diversity, inclusion andemployee engagement

Positive impact on society

Page S.83 Read more in the Natural Capital supplement

2023 Resultsc.€19bnenvironmental lending
volumes since
beginning of 20221

28%

reduction in own GHG
emissions (scope 1 and 2,
market-based) vs 2021

90.4%

electricity consumption
from renewable energy3

Targets

15%

ESG lending
penetration at 20242

Net Zeroown emissions
by 2030Net Zeroportfolio emissions
by 2050

1. Data includes ESG-linked lending.
2. KPI calculated as ESG new production including environmental, social and sustainability
linked lending, divided by MLT loans new production in given year.
3. Data refers only to buildings where energy consumption invoices are in UniCredit’s name.

138

UniCredit 2023 Integrated ReportOverview
Our Strategy

Plants, animals, air, water, soils, minerals:these six components of Natural Capital areinterconnected. In line with our strategic approach,
we integrate biodiversity considerations into our

Our Context

Embedding Natural Capital
within our strategy
business operations, in addition to climate-related
initiatives, to ensure we are taking tangible
actions to preserve Natural Capital.

Our Impact

Natural Capital Framework

Governance, Risk and Compliance

UniCredit’s approach to Natural Capital preservation is based on tangible actions which
generate direct and indirect impacts. We are committed to limiting negative and generating
positive impacts to preserve Natural Capital to the benefit of the communities in which we
operate and ourselves.
Actions
Plastic
Free

Awareness

Products

Net Zero

Policies
CirculareconomyEU Taxonomy

Animals
ts
an
Pl

Soil
M
i
n
era
ls

ClimateIndirect impacts

Direct impacts

Accompany our clients on theirgreen transition journey

Reduce ourenvironmental footprint

UniCredit 2023 Integrated Report

Supplement

Biodiversity

Communication

r
ate
W

Air

ural Assets
Nat

Annexes

Advisory139

Impact on communities
Natural Capital

Double materiality

Our strategic approach is based on the double materiality
concept which considers both an inside-out and an
outside-in perspective.
Read more in the Stakeholder
Page 26 Engagement chapter

We recognise that our activities can have both positive andnegative impacts on natural resources and the environment.
This understanding enables us to manage and contain potential
negative impacts that can harm the planet and communities
while also influencing the market towards the necessarytransition to more sustainable practices.

Inside-out perspective
Manage the direct and indirect impacts that our operations and lending have on the environment

Indirect impacts

Direct impacts
Reduce our environmental footprint by:Accompany our clients on theirgreen transition journey by:– Assessing and monitoring our portfolio exposure
towards most nature-related sectors– Steering our behaviour towards Net Zero on
own emissions– Procuring electricity from renewable sources– Identifying and evaluating the impacts on nature– Improving energy and space efficiency– Adopting a sector policy framework– Fostering the circular economy and efficientuse of resources– Defining the journey towards Net Zero on
portfolio emissions

Inside-out perspective

Outside-in perspective
Bank

Communities
and Environment

Outside-in perspective
Prepare to measure the business consequences of ecological stress and the associatedsocioeconomic transition and take advantage of emerging opportunities– Executing our Group strategy

140– Correctly managing climate and environmental risks,
in line with the agreed Risk Appetite Framework (RAF)
and the ECB climate stress test requirement

UniCredit 2023 Integrated ReportOverview
Our Context

Our approach

Our Strategy

Indirect impacts
Alongside safeguarding our portfolios and assets fromclimate-related risks, we actively engage and support
corporate clients in transitioning to a lower-carbon
business model, fully exploiting green business
opportunities. We aim to help our clients achieve a justtransition, ensuring fairness throughout the process.
Our ESG Advisory Team is a multi-disciplinary solutions
team focused on enabling clients to create long-term
stakeholder value by integrating sustainability into theirstrategic decisions and assessing the impact of sustainablefinance market principles and practices, as well as
applicable regulations.
Furthermore, our ESG Global IT architecture represents a
key enabler for compliance with regulatory disclosure
requirements as well as gathering environmental
information published by our counterparties. In particular,
our IT architecture helps us integrate data on the eligibility
and alignment with EU Taxonomy objectives, which play a
key role in international frameworks that contribute to theprotection and restoration of nature.

Annexes
Supplement

Within the Bank’s Risk Management function, themanagement of C&E risks has become increasingly
significant and strategically important, undergoing asubstantial transformation in recent years aimed atconsidering factors other than climate, such as biodiversity
and circular economy. This is embedded across the threemain risk management pillars, credit, financial and nonfinancial risks, with the aim of identifying, measuring,monitoring and managing C&E risk impacts, for bothtransition and physical risks.

Advisory and opportunities

Governance, Risk and Compliance

Risk

Our Impact

UniCredit’s strategy incorporates identifying andunderstanding climate and environmental risks(C&E) and opportunities that the Bank may
encounter. C&E factors are related to the quality
and functioning of the natural environment andits systems (Natural Capital) and include factors
such as climate change, biodiversity, energy
consumption, pollution, and waste management.

Policies and Net Zero
UniCredit adopts policies and procedures relating to direct
and indirect engagement with new or existing counterparties
taking into account their strategies to mitigate and reduce
environmental risks.

Page 160 Read more in the Risk Management chapter
Page 60 Read more in Our transition to Net Zero chapter

Over the last few years, we have introduced sector-specificpolicies that commit us to stop financing controversial
carbon-intensive activities, such as energy production fromthermal coal and the most impactful Oil & Gas operations.
In 2023, also in line with our Net Zero commitment, weupdated our Oil & Gas sector policy to enable the prudential
and progressive adoption of the Net Zero provisions.
Moreover, in line with our commitment to the Net Zero
Banking Alliance, we progressed with our path towards
Net Zero on portfolio emissions: i. complementing our first
set of Net Zero targets with the addition of the Steel sector,
ii. monitoring our progress on target achievement for the
Oil & Gas, Power Generation and Automotive sectors, andiii. defining and announcing our inaugural transition plan.

UniCredit 2023 Integrated Report141Impact on communities
Natural Capital

Direct impacts
We hold ourselves to the same standards that
we expect from our partners, and we haveestablished well-defined objectives to containour environmental footprint. This includes
procuring electricity from renewable sources,
improving the energy and water efficiency ofour premises and data centres, adopting circular
economy solutions in resource management,
promoting sustainable mobility solutions, andsourcing responsibly.

Our approach is supported by the implementationof Environmental Management Systems acrossthe Group. While UniCredit S.p.A. is registeredaccording to the EMAS Regulation spanningover 2,300 sites, we hold other environmental
certifications in our countries.4

4. In addition to the EMAS certification in Italy, the Group holds: ISO 14001 Environmental Management System certification for UniCredit Bank
of Austria, UniCredit Bank Czech Republic and Slovakia, a.s., and UniCredit Bank AG Germany; ISO 50001 and ISO 45001 for UniCredit Bank
Czech Republic and Slovakia, a.s.

142

UniCredit 2023 Integrated ReportOverview
Our Context
Our Strategy

We continue to progress with our green energy
procurement approach, with an increase in electricity
procured from renewable sources in 2023. Moreover, weare the first bank in Italy to have closed a corporate PPA(Power Purchase Agreement) to fulfil the energy demandof our data centres. This agreement will strengthen
UniCredit’s Group-wide Green Energy Procurement strategy,
serving as a best practice across our geographies.

We have started to monitor Water Usage Effectiveness(WUE), the ratio between the use of water in data centre
systems (e.g. water loops, adiabatic towers, humidification),and the energy consumption of IT equipment. We have also
launched several projects aimed at reusing and rethinking
our redundant furniture.
In addition, as part of our holistic and integrated procedures,
through our Supplier Qualification Process, which includes
a sustainability questionnaire, we screen centrally selected
new suppliers using socioenvironmental criteria.
Our approach is leading to a more sustainable workplace,where increased awareness of these critical topics plays
a crucial role. Colleagues across the Group are actively
involved in our commitments and engaged in our daily
efforts to achieve a green transition.

Supplement

In addition to renewable sourcing, we are also committed
to improving space and energy efficiency in ourbuildings. In 2023, we introduced a new Smart OfficeWorkplace Policy to improve the quality of the built officeenvironment with a focus on hybrid solutions, health,well-being, and sustainability. Furthermore, in light of
the hybrid way of working in our headquarters and the
reduced office attendance by employees, we optimised
our HQ footprint by releasing selected buildings andcreating newly refurbished spaces. In most of our buildings,
we have consolidated our efforts in applying smart
energy control systems, improved thermal insulation,
adapted temperature settings for heating and cooling,
and improved the algorithms that manage Heating,
Ventilation, and Air Conditioning (HVAC) and lighting
controls, optimising both energy consumption andworkplace comfort.

Moreover, in an effort to prevent and mitigate various
potential negative environmental impacts, alongsideenergy efficiency, we have introduced measures to optimise
the use of limited natural resources and to foster acircular economy.

Annexes

Energy and space efficiency

Resources management
and awarenessGovernance, Risk and Compliance

Renewable energy sourcing is a crucial step on ourpath towards Net Zero on our own emissions alongwith space optimisation, energy efficiency, and heating
systems transformations.

Our Impact

Renewable energy sourcing

In the coming years, we are planning to transform asignificant number of fossil fuel heating systems into
highly efficient electrical heat pumps or district heating.
The Group’s guidelines for dedicated energy management
measures, launched at the end of 2022 in response to theglobal energy crisis, already helped us improve our energy
consumption in 2023.

UniCredit 2023 Integrated Report143Impact on communities
Natural Capital

Our progress so far
Indirect impacts
EU Taxonomy Survey
We introduced an EU Taxonomy Survey, which is
integrated within the digital solutions offered to ourclients. This aims to assess the sustainability of newtransactions, retrieve clients’ EU Taxonomy KPIs, andcreate new business opportunities. By translating
regulatory requirements into a guided path, we can
support clients on their sustainable transition journey

Financing energy efficientand green solutions
Bulgaria
Green Leasing is a specially developed product for thepurchase of electric cars through financial leasing, offered
together with a dedicated insurance: €14m granted in
2023, for a total stock monetary value equal to €20m

Italy
– Continuing bridge funding for clients who use the
110% bonus on energy-efficient refurbishment
promoted by the government: €199.5m granted in
2023, for a total stock monetary value of €0.4bn– Progressing with Mutuo UniCredit Sostenibilità
Energetica, a solution to finance the purchaseof properties with class A or higher rating andrestructuring to achieve better energy efficiency:€89.4m granted in 2023, for a total stock monetary
value of €0.5bn

Promoting sustainablefinancial instruments

10

own Green Bonds
issued since 2021

2

Hungary

Green Mortgage Covered
Bonds: 1 issued in
September 2021 for €0.06bn
and 1 issued in September
2023 for €0.047bn

1

Czech RepublicGreen Mortgage Covered
Bond: Issued in June 2023
for €0.5bn

c.€5.6bn
total amountof Green Bonds

3

Italy

Senior Green Bonds:
2 issued in June 2021
and November 2022 for€1bn each and 1 issued in
November 2023 for €0.75bn

2

Germany

Green Mortgage Covered
Bond: Issued in September
2021 and September 2022
for €0.5bn each2

Austria

Green Mortgage Covered
Bond: 1 issued in May 2022
for €0.5bn and 1 issued in
February 2023 for €0.75bn

Page 80 Read more in the Financial Capital chapter

Our transition to Net ZeroIn 2023, we set 2030 interim targets on Oil & Gas, Power
Generation and Automotive, which are three of the mostcarbon-intensive sectors in our loan portfolio. We have
now defined our 2030 targets for the Steel sector, andwill establish Net Zero 2030 interim targets for othercarbon-intensive sectors by October 2024.
Group

Page 60 Read more in Our transition to Net Zero chapter

144

UniCredit 2023 Integrated ReportOverview
Our Context
Our Strategy
Our Impact
Governance, Risk and Compliance

Natural Capitaland biodiversity

The analysis leverages on several data sources,
including multiple internationally recognised
databases of environmental data, and was
conducted to ascertain the environmental impact
by leveraging 20 granular KPIs for the fiveprincipal environmental factors. The assessment
considered both sector-specific metrics andthose pertaining to our clients’ headquarters
as well as local operating units.
Synthetic and factor-specific scores were produced
for each counterpart and aggregated to produce thesector-level heatmap of the loan portfolio, allowing theassessment of impact and materiality. UniCredit willkeep monitoring the evolution of the materiality of therisks related to natural capital and ensure dedicatedpolicies are in place to mitigate potential impacts.

UniCredit 2023 Integrated Report

Biodiversity loss and ecosystem degradation:
Land use practices are a key driver of biodiversity
loss as agricultural value chains have themost direct (and often largest) impact on
ecosystems and biodiversity through land use
and management. Granular KPIs that have been
analysed covered four of five direct pressures on
biodiversity loss identified by IPBES 13

Supplement

The Bank developed, with the support of an external
provider, a sector-level heatmap of the loan portfolio.
Our aim was to assess which sectors are most exposed
to nature-related risks looking at their impact onnature. The assessment is based on a synthetic scoreassigned to single counterparties, with the perspectiveof inside-out evidence, i.e. a summary of the impactthat a single company can cause to the ecosystem inwhich it is located and carries out its activities.

The environmental factors, evaluated within thesynthetic score attribution through granular KPIs
both at industry level and company-specific, arelisted below.

Annexes

As a preliminary step, the Group is evaluating
sources, methodologies and frameworks toeffectively address the key challenges related
to biodiversity and nature.

Pollution: Air, soil and water pollution and theireffects are closely linked to biodiversity andecosystem services, for example, via acidification,
ecotoxicity, photochemical oxidant formation,
freshwater and marine water eutrophication andozone-depleting emissions
Water usage: Mismanagement or
underdevelopment may mean that accessible
water is polluted or unsanitary for humanconsumption. Economic water scarcity canalso result from unregulated water use for
agriculture or industry, often at the expense of thegeneral population
Waste management: Solid and hazardous waste
and wastewater are all different categories of thetotal quantity of waste produced by a business
Energy efficiency: The efficient use of energy
to produce goods and services, reducing energy
consumption and associated pollution
145Impact on communities
Natural Capital

Direct impacts
Energy management

Space optimisation
Our new agile building layouts enable us to releasespace as we refurbish, reducing our building’s footprint

Headquarter Space Optimisation Projects(sqm saved)

26,00067,000

9,600

1,500

Italy

Austria

Germany

Slovakia– Heating and cooling systems’ working hours
reduction and sustainable temperature set-point– Lighting time frame reduction and signage
turn-off during night hours– Old HVAC system replacement and LED
lighting implementation

Local measures– Photovoltaic panels have been installed in Austria,
Hungary and Slovakia– In Italy, we are progressing with the implementationof a project aimed at groundwater wells to freecooling units of both CED and HVAC systems5
Electricity procurement
90.4

100%

of total electricity consumption was from renewable sources6100%

Thanks to space optimisation and energy
management initiatives, we have alreadyachieved tangible results6-12%

in total energy
consumption vs 2022
natural gas-16% ofconsumption
vs 2022
electricity-10% ofconsumption
vs 2022
district-15.6% ofheatingvs 2022

5. Free cooling is the process of lowering the airtemperature in our data centres by using naturally
cool water instead of mechanical refrigeration.
6. Data refers only to buildings where energy
consumption invoices are in UniCredit’s name.

146

UniCredit 2023 Integrated ReportOverview
Our Context
Our Strategy

Cars:– In Italy, thanks to our mobile app carpooling service for
employees, by the end of 2023, more than 15,000 km oftravel has been shared (over 1,250 km per month)– In Austria, there is a renewed Car Policy focused on hybrid
and electric vehicles, which has led to an approximate
10% reduction in the total number of company cars.
Going forward, all new vehicles will be electric or hybrid

Resources management
and circularity– In Italy, a pilot project aimed at donating redundantfurniture has been developed with Croce Rossa Italiana
and we have already donated more than 900 pieces
of furniture

Governance, Risk and Compliance

Bikes:– We provide bike storage in every main building of theGroup, as well as electric bike charging stations for
employees in Italy, Germany, Russia and Slovakia

Our Impact

Mobility initiatives– In Austria, 700 pieces of furniture were donated to Caritas
thanks to the “My Desk is Doing Good 2.0” initiative,
while over 7,000 pieces of IT and mobile equipment were
donated to AfB Gmbh7– In Germany, around 8,000 items of furniture no longer
needed by our teams due to relocations in Hamburg andMunich have been given a new life

Our suppliers are required to comply with the standardsof the International Labour Organization and ourEnvironmental Policy.

c.100%of centrally purchased
IT equipment holds
environmental labels
either ISO Type 1 or ISO
Type 330

completed audits ofexternal service providers
since 2014

100%of our copy paper supply
holds an environmental label

Raising awarenessSupplement

Responsible sourcing

Annexes– In Germany, a renewed Car Policy means that only electricvehicles can now be ordered as company cars. By 2028,
UniCredit Bank GmbH’s entire vehicle fleet will be electric– For the 16th consecutive year, UniCredit took part in
the WWF Earth Hour call, switching off our lights in
35 buildings across 12 of our operating countries for
60 minutes, to show symbolic support for the planet andto raise awareness of environmental issues– We are actively engaged in the Principles for
Responsible Investment’s (PRI) Real Estate Advisory
Committee to help accelerate the sustainable transitionof the real estate sector– We are part of the Principles for Responsible Banking(PRB) Biodiversity community, a capacity-building
programme aimed at fostering awareness of theimportance of biodiversity and its impact on ecosystemservices, as well as recognising biodiversity loss as a risk
to both businesses and the financial sector– As we have hit our zero plastic targets across each of
our locations in 2022, this year saw us place particularemphasis on spreading plastic-free communication andawareness across our internal and external channels.
We focused on monitoring targets in all our premises,
which confirmed good progress in our canteens, cafeterias,
vending and coffee machines
Page 53

Read more about the two papers we havepublished together with FfBP and UNEP

7. AfB GmbH is Europe’s largest non-profit IT company. As a refurbisher, it creates jobs forpeople with disabilities by refurbishing and remarketing used IT and mobile devices.

UniCredit 2023 Integrated Report147Impact on communities
Natural Capital

Unlocking transformation, together.

For our partners
moving to moresustainable practices
To support its transition to more sustainable practices,
UniCredit provided leading European energy company ČEZGroup with a €320 million credit facility with interest linked
directly to its ESG rating. In recent years ČEZ Group has
moved into the top 15% of companies in the world in ESG
ratings according to the CSR Hub rating aggregate.
Loans with ESG parameters accounted for 20% of thelong-term investment loans provided by our corporate banking
services in the Czech Republic and Slovakia. As a result, in 2023
we were also named Best ESG bank in the Czech Republic by
Euromoney magazine.

“UniCredit is our partner in the field ofsustainability, which is not only beneficial
for the climate, but also a significant
competitive advantage over companies
that do not devote themselves to this area
as intensively as we do.”Martin Novák
Board member and CFO, ČEZ Group

Czech Republic and Slovakia

Read more on the microsite

148

Overview

Our Context

Our Strategy

Our Impact
Governance, Risk and Compliance

Annexes

Supplement

149

150

UniCredit 2023 Integrated ReportOverview
Our Context
Our Strategy

Governance, Risk
and Compliance

Our Impact
Governance, Risk and Compliance

Living and acting sustainably: Our way to lead

152 Governance
160 Risk Management
180 Compliance

Annexes
Supplement

UniCredit 2023 Integrated Report151GovernanceOur system of corporate
governance promotes clarity
and accountability while
continuing to evolve to ensure
long-term sustainable value.

Governance model
UniCredit is an Italian listed company, with a traditional
management and control system, which assigns specificresponsibilities to the Shareholders’ Meeting and allows
for a clear exchange of views between shareholders andmanagement on key decisions relating to governance.
These include appointing and removing Directors,
appointing members to the Board of Statutory Auditors,
granting a mandate for external auditing to an audit firm
and approving all associated fees.
Such decisions also include the approval of financial
statements, the allocation of profits, resolutions on
remuneration and incentive policies and practices inaccordance with current provisions, as well as setting
criteria to determine compensation to be granted in
the event of early termination of employment or early
retirement from office.1

Governancemodel evolution
Evaluation of governance modelEver since its incorporation, UniCredit has adopted
the traditional governance model, which isthe default option envisaged by Italian law for
corporations. Although this set-up has over time
been efficient, the developments in the economic
and regulatory context, the challenges that banks
face today, the demands from market players andRegulators for an effective corporate governanceground the need for reassessing the Company’s
governance model.

Beneficial characteristics of the
one-tier model
As a result of the evaluations performed, the Boardof Directors, in its meeting held on 31 July 2023,
resolved to adopt the one-tier corporate governancesystem, in lieu of the traditional one. This model
further improves the quality of the current
governance, ensuring a greater effectiveness ofcontrols through the integration of the control
body within the Board and fully enhancing therole of the members of the control body throughtheir direct participation in the Board’s decisionmaking processes.

Board resolution in favour of new model
The Board of Directors therefore resolved to submit
to the approval of the UniCredit Shareholders’Meeting the adoption of the one-tier corporate
governance system and the consequent
amendments to the Articles of Association, which
resolved them on 27 October 2023.

1. For more information refer to the annual Report on corporate
governance and ownership structure and the 2024 Group
Remuneration Policy and Report available in the Governance sectionof our website (www.unicreditgroup.eu/en/governance.html).

152

UniCredit 2023 Integrated ReportOverview
Our Context
Our Strategy

Desirable profile and list

One-tier model structure– the Board of Directors list ensuring a balanced
composition of knowledge, skills and experience;
promoting inclusion and diversity across age,gender and geographical areas; adequatelyreflecting the size and operational complexityof UniCredit Group.

Annexes

The aforementioned amendments to the Articles
of Association shall become effective upon the firstrenewal of the corporate bodies to which they apply
following the mentioned Shareholders’ Meeting,
except for Clause 20, concerning the proceduresfor the election of corporate bodies, which shallapply from the date of the notice convening theShareholders’ Meeting called to resolve on theappointment of the new corporate bodies. The firstrenewal of the Board of Directors will be resolved
at the Shareholders’ Meeting called to approve thefinancial statements for the year 2023.

– a theoretical qualitative-quantitative profile
deemed to be optimal with respect to thegoals outlined in the applicable rules, andGovernance, Risk and Compliance

Next steps towards full adoption
and implementation

In line with international best practices, milestones
for the upcoming renewal of UniCredit’s corporate
bodies are the identification of:

Our Impact

Such a governance model is characterised by thepresence of a Board of Directors, which performs thestrategic supervision and management functions,and an Audit Committee – established within the
Board – which performs control functions.

Supplement

Our forthcoming one-tier model
Traditional Model

Board of Directors
strategic steeringand oversightfunction (e.g. votes on
strategic matters)

Board of Statutory
Auditors
controlling functions

One-tier Model

Board of Directors
strategic steeringand oversightfunction (e.g. votes on
strategic matters)
Audit Committee
controlling functions

UniCredit 2023 Integrated Report153Governance

ESG governanceand management

Our sustainability governance has beensignificantly strengthened in recent years
at both steering and execution levels,
underpinning the drive to further integrate
ESG criteria into the Group’s overallbusiness strategy.2

Organisational and governance structure, focus on ESG components(As at the approval date of this report; traditional governance model)

CHAIR
Board of Statutory AuditorsAB

ESG Committee

C

Internal Controls &Risks Committee

D

Corporate Governance &Nomination Committee

BOARD OF DIRECTORSINTERNAL AUDITBOARD COMMITTEES

Related-Parties Committee

CEO
Remuneration Committee
GROUP EXECUTIVECOMMITTEEE

F

Group Non-Financial Risks
and Controls Committee

CEO Office
HGroup Stakeholder
Engagement

Group Risk Management

Group Client Solutions

G
Group Strategy & ESG

2. For more information on functions involved in the governance and management of climate-related issues, see our 2022 TCFD Report, pages
11-16, available at https://www.unicreditgroup.eu/content/dam/unicreditgroup-eu/documents/en/sustainability/sustainabilityreports/2022/UC_TCFD_TOT_2022_ENG.
3. Also includes the Group CEO Staff.
4. This includes the coordination and publication of the Group Integrated Report, UniCredit’s TCFD Report, the implementation of the Principles for
Responsible Banking-UNEP FI and related reporting. Moreover, the function co-coordinates the Group’s conversion project towards
implementation of the Corporate Sustainability Reporting Directive (CSRD) together with the Group Finance function.
5. For more information refer to the Social and Relationship chapter and to the website of the Foundation https://www.unicreditgroup.eu/en/
microsites/unicreditfoundation.html.

154

UniCredit 2023 Integrated ReportOverview
Our Context

Corporate bodies oversight
A UniCredit’s Board of Directors defines the overall strategy

B The ESG Committee (ESGC) supports the Board of

Directors in fulfilling its responsibilities with respect to the
ESG components integral to the Group’s business strategy
and sustainability over time. See Focus for further details.
supports the Board of Directors in risk management andcontrol-related issues. Its work encompasses matters of riskin the ESG sphere such as climate change risk.

(CG&NC) provides support to the Board on topics regarding
the UniCredit corporate governance system, the Board of
Directors composition and top management.
The Board of Statutory Auditors exercises oversightof ESG governance and related topics. On the occasionof the latest renewal of the Board of Statutory Auditors,
the areas of Sustainability (ESG) and Digital technology
were specifically added as desirable competencies of thequalitative profile of its members.

Our Impact

C The Internal Controls & Risks Committee (IC&RC)

D The Corporate Governance & Nomination Committee

Our Strategyof the Bank, which incorporates the Group’s ESG strategy,
overseeing its implementation over time.

Governance, Risk and Compliance

Steering and coordination
E The Group Executive Committee (GEC) is the Group’s

F The Group Non-Financial Risks and Controls Committee

G The Group Strategy & ESG and Group Stakeholder

Engagement functions work together as a CEO Office,3
handling all important initiatives for the CEO. These
initiatives include strategy development, M&A,
the integration of ESG criteria into our business
operations, stakeholder management and dealing withregulatory affairs.
The Group ESG function, part of Group Strategy & ESG,
steers the definition and implementation of the Group’s
ESG Strategy. It ensures the ESG framework is consistent
with the Group’s principles and Purpose and with relevantinternational standards and practices.

H The Group Risk Management function supports the CEO

in defining the Group Risk Appetite proposal, which is
to be shared with the GEC, the IC&RC and submitted forapproval to the Board. This process occurs in coordinationand in alignment with the yearly budget plan. The function
ensures the overall climate risk framework definition atGroup level and supports local implementation. Within thevarious risk areas, dedicated employees and functions havebeen devoted to the integration of climate topics withinrisk management activities and the effective disseminationof the relative knowledge. Such functions include Climate
Risk and Risk Governance which oversees climate-related
and environmental risks, and Climate & Environmental
Credit Analysis which manages the integration of climate
and environmental factors within the credit risk cycle.

Supplement(GNFRC) supports the CEO in steering and monitoring
non-financial risks. For example, it approves governancepolicies and guidelines for the management of reputationalrisk regarding sensitive sectors.

Moreover, the function is tasked with, inter alia, developing
the social agenda and related proposition, monitoring anddisclosing the Group’s ESG impacts and results, and withoverseeing the adoption of relevant policies and standards.4
The function’s activities are divided into three offices – ESG
Strategy and Implementation; ESG Service Excellence;
ESG Metrics, Policies and Disclosure.

Annexesmost senior executive committee and is chaired by the CEO.
Within its mission it defines the overall ESG Strategy. It also
ensures the effective steering, coordination and control of
the Group business as well as the alignment of the parent
company with the different businesses and geographies
regarding strategic topics such as ESG issues. Moreover,in dedicated Risk sessions, the GEC supports the CEO incoordinating and monitoring all categories of risks and insteering ESG-related matters, thus granting a dedicatedfocus on Climate and Environmental risks among others.

Furthermore, the Group Risk Management functions
issue, for related competent topics, credit risk opinions to
support the Group Transactional Committee sessions in thediscussion and approval (based on the delegated powers)of credit transactions.

Implementation and execution
Dedicated ESG teams and experts. ESG matters areembedded across our Group through dedicated teams
and experts in several Group functions which manage
ESG topics in line with their areas of competency.
Examples include the ESG Advisory team, ESG offices
supporting business divisions in the main Groupgeographies, and the ESG Digital and Group Real Estate ESG,
Innovation Projects & Monitoring functions.

UniCredit 2023 Integrated Report

The Compliance and Regulatory Affairs functions also
have resources dedicated to ESG-related issues.
Additionally, an important role is played by UniCredit
Foundation, the corporate foundation of UniCredit Group.
Its Purpose is to unlock the potential of Europe’s next
generation. The Foundation’s mission is to empower young
people across Europe by providing equal opportunities
in education and supporting their personal andprofessional development.5

155Governance

ESG Committee
in focus
The ESG Committee (ESGC) supports the Board of Directors infulfilling its responsibilities with respect to the ESG components
integral to the Group’s business strategy and sustainability.
It also provides opinions and support to the other Board
Committees so as to ensure the alignment of Group policies
with UniCredit’s ESG principles and objectives. In particular,
it cooperates with the Internal Controls & Risks Committee(IC&RC) in addressing ESG risk-related matters, such as climate
and environmental risks.

In order to fulfil its role and to provide guidance and support
to managers, it regularly holds discussions with the Heads ofFunctions in charge of specific ESG-related areas such as Group
Strategy & ESG, Group Risk Management and Group Stakeholder
Engagement. Moreover, the Committee is active in organising
dedicated training on ESG matters, in which relevant managers
may participate.
As part of its information-gathering, consultative andproposition-making actions, in 2023 the Committee supported
the Board of Directors in its appraisal of a broad spectrumof ESG topics from strategy and targets, to reportingand disclosure.

2023 ESGC activities

916

Meetings held

Items reviewed

ESG Digital
1

Regulatory
and Voluntary
ESG Disclosure

Policies oncontroversial
sectors andCommitments

ESG Risk &Compliance

1

Main thematic areas of work

Items include

Number of items reviewed6
Stakeholder
Engagement

6

5
2

1

ESG Risk & Compliance– Risk Appetite Framework: ESG KPIs
– Climate and Environmental Risk roadmap– Greenwashing prevention
ESG Strategy & Targets– Net Zero commitment: priority sector targets
and strategy progress– Overview of Group countries’ maturity on energy
transition and the green finance market– Group Social Strategy
Policies on controversial sectors and Commitments– Update on Policies application

6
ESG Strategy& Targets

Regulatory and Voluntary ESG Disclosure– Task Force on Climate-Related Financial
Disclosure Report– Integrated Report
Stakeholder Engagement– Stakeholder Engagement
ESG Digital– ESG Data Architecture and Digital

Two joint ESGC and IC&RC meetings on:
Climate and Environmental Risk roadmap
Risk Appetite Framework: ESG KPIs

ESGC composition7
Chair

1

Other members

2

6. Some items were discussed in multiple meetings.
7. The Chair of the Board of Directors and the Chair of the Board of Statutory Auditors and, on a rotating basis,
another Statutory Auditor, are invited to attend ESGC meetings including training sessions.

156

UniCredit 2023 Integrated ReportOverview
Our Context

Training on sustainability related topics plays an important rolein ensuring the effectiveness of our ESG Strategy and oversightof related matters. Dedicated sessions were held throughout
the year for the Board of Directors, the ESGC and the IC&RC andincluded the contributions of external experts.

Our Strategy

Dedicated
ESG training forcorporate bodies

Read more on training at other levels of ESG
Page 86 governance, refer to the Human Capital chapter– Focus on climate-related
and environmental risk:
supervisory authorities’
expectations– Circular Economy andValuing Natural Capital:
trends and relevance for thebanking sector

Joint sessions for the
ESGC and IC&RC– Climate and Environmental
risk regulatory context
and market practices– Emerging topics onsustainability: Natural Capitaland Biodiversity

Governance, Risk and Compliance

Sessions for the ESGC

Our Impact

Sessions for the Board– Opportunities andconstraints with ESG data
and the European ESG
regulatory framework– Bancassurance: Outlook,organisation and strategies
on the Italian market

AnnexesCase study

Commitment on
Financial Health andInclusion signed by
UniCredit’s CEOGroup ESG engaged
the 14 Groupgeographies toselect indicators
according to
specific local
contexts, for the
purpose of target
setting based onstarting baselines

Steering and execution

Group ESG finalisedGroup targets,based on thecontributions
received fromthe countries

Corporate bodies oversightAs part of our social strategy, UniCredit has beenan active member of the UNEP FI working group of
signatory banks of the Principles for Responsible
Banking (PRB) Commitment on Financial Health andInclusion, defining a common set of core indicators fortarget setting. UniCredit set two Group-wide targets in
2023 to improve the financial inclusion of our clients,
targeting young people.

Indicator selection
and targets
definition process
shared with theGroup Executive
Committee and the
ESG Committee,
and communicatedexternallyGroup ESG
consolidates
quarterly progressof local andGroup targets,leveraging the ESG
Dashboard datacollection process

Steering and coordination

Supplement

Commitment on
Financial Health andInclusion governance

Progress on targets
to be shared with
the Group Executive
Committee and the
ESG Committee

Implementation and execution

Page 100 Read more in the Social and Relationship chapter

UniCredit 2023 Integrated Report157

Governance

Board composition

The UniCredit Board of Directors meets the suitability
requirements established by the applicable provisions, as wellas qualitatively and quantitatively matching the theoreticalprofile approved by the Board itself. The personal qualitiesof the Directors match the theoretical profile approved by
the Board of Directors.8

Board in numbers (As at the approval date of this report; traditional governance model)
Balance of the Board of Directors

Board Independence (%)

111

CEO executive

Non-executives

as per TUF

75

as per Corporate
Governance Code92

Average Tenure Length

4.7 years

83

as per TUB
TUB: Legislative Decree No. 385 dated 1 September 1993
TUF: Legislative Decree No. 58 dated 24 February 1998

2023 Board Attendance Rate95%

Directors’ Competencies (%)
International Experience100

Renewal Rate (%)

Financial & International Markets

Continuity 58

Renewal42

92Banking Governance

Board Gender Balance (%)
Male 58

58
Female42

67

Legal & Regulatory

Geographical Mix (%)

67
Italy 67

Other countries

33

Other countries: Austria, Germany, Spain, United States of America.

Strategic Planning
83

Risk & Control
58

Age Group (%)<50 8

Banking BusinessAccounting & Audit
50-65 67

>65

25

58

Sustainability (ESG)
8. Refer to the annual Report on corporate governance andownership structure, available in the Governance section of
the Company website (https://www.unicreditgroup.eu/en/
governance/our-governance-system.html), for more information.

158

75

Digital & Technology
33

UniCredit 2023 Integrated ReportOverview

ESG business penetration9:– Percentage of ESG lending10 new production on overall
Medium/Long Term lending new production: Group
2024 target set at 15%;
– Percentage of Sustainable bonds11 on all bonds11: Group
2024 target set at 15%;
– Percentage of ESG Assets under Management stockon Total Assets under Management stock: Group 2024
target set at 50%.

– Progress vs. Net Zero commitments on four of the mostcarbon intensive sectors within the portfolio which include
Oil & Gas, Power Generation, Automotive and Steel,
recently added (see the Strategy chapter for more details).
These ESG commitments, also subject to the evolution of
ESG regulation, have been included in the ‘Sustainability’section of the CEO and Top Management scorecards12 aslong-term additional performance conditions, consistently
with their outlook.

Governance, Risk and Compliance

The current strategy foresees an updated set of Group ESG KPIs
and business targets:

Net Zero:

Our Impact

A core set of our ESG targets are embedded in the CEO’s
performance scorecard to foster the alignment of managementwith the Group’s current and future ESG ambitions.

Our Strategy

Our 2024 Group Remuneration Policy has been developed tosupport the accomplishment of the UniCredit Unlocked plan,of which the ESG strategy of the Group is a key component.

Our Context

2024 Remuneration Policy
sustains our ESG strategy

The entire section on ‘Sustainability’ will have a weight of
20% in the CEO and Top Management long-term scorecard
within the 2024 Group Incentive System rules.
So as to align the Group’s management structure and reinforce
managerial commitment to our ESG strategy, such objectives
will be cascaded to the CEO’s reporting line and below,
coherently with the respective areas of responsibility.

Annexes

DE&I ambitions:

Supplement– Gender parity across our organization and a more diverse,
inclusive and sustainable workplace, in accordance with
Italy G20 Women’s Forum CEO Champion Commitment‘Towards the Zero Gender Gap’;– c.€100 million allocated to ensuring equal pay for equal
work by 2024.

9. As disclosed to the market within the 2023 Fixed Income presentation.
10. Including Environmental, Social and Sustainability linked lending.
11. For corporates and financial institutions, excluding Sovereign, Supranational and Agency Long Term Credit.
12. For further details on the 2024 CEO scorecard refer to the 2024 Group Remuneration Policy and Report.

UniCredit 2023 Integrated Report

159

Risk Management

Risk Management
Risk Management and Compliance are integral
to everything we do and how we do it. Our Risk
Appetite Framework has been designed to mitigate
risks – balancing sustainability objectives with thelong-term growth of our business.
The Risk Appetite Framework is defined by the CEO, withthe support of the Group Risk Management function.
The Framework is shared with the Group Executive Committee
and the Internal Controls & Risk Committee before being
submitted to the Board of Directors for approval. The Directors
consider the Framework in the context of annual andmulti-year budget plans relating to the Group Planning,
Finance, Shareholding and Investor Relations functions.
During 2023, we continued to evolve the Framework in orderto enhance our approach to risk management, placing greater
focus on climate-related risks and cyber threats, further
embedding ESG factors and improving transparency.

1.1. Identifying impacts
The Group commits to managing both the direct andindirect impacts that our operations and lending have on
the environment.
Our outside-in perspective requires us to prepare to measure
the business consequences of ecological stress and theassociated socioeconomic transition and take advantage of
emerging opportunities by:– Executing our Group strategy– Correctly managing climate and environmental risks, in linewith the agreed Risk Appetite Framework (RAF) and the ECB
climate stress test requirement
It is important to note that our climate strategy is founded on
the identification and awareness of all the climate-related risks
and opportunities that the Bank may encounter.
Regarding climate-related risks, including both transition andphysical risks, we identify, analyse and assess these risks withthe aim of incorporating them into our comprehensive risk
management framework.

Climate Risk
Management

For an overview of each identified climate-related risk, its
potential impacts, the corresponding time horizons (short-,
medium- and long-term) and the actions undertaken tomonitor and mitigate these risks, please refer to the table in the
supplement section.

1. Business strategies and processes

To properly assess the potential impacts of climate-relatedrisks for the Group, we run climate scenario analysis andstress testing.

Embedding sustainability in everything we do is
one of the five strategic imperatives of UniCredit
Unlocked, a plan that leverages on our solid
foundations to unlock the potential of our Group.
It is paving the way for the future of our Bankand of all our stakeholders, while ensuringthat we always lead by example and fulfil our
Purpose of empowering communities to progress.
In line with our strategic approach, we integratebiodiversity considerations into our business
operations, in addition to climate-related
initiatives, to ensure we are taking tangible
actions to preserve Natural Capital.
Please see the Natural Capital section for further
information on how our approach is based on the double
materiality concept, which considers both an inside-out
and an outside-in perspective.

160

UniCredit 2023 Integrated ReportOverview
Our Context
Our Strategy

1.2. Identifying opportunities
We have identified several potential opportunities arising from the transition to a low-carbon economy that have an
impact on both on Group business and operations. These opportunities are described in the table below:

Increase our environmental retail product offering in the areas ofrenewable energy and energy efficiency lending, in alignment withthe most recent European regulations

Medium term

Continue to align our investment product strategy with the latest
regulations so that we can best conform with our customers’sustainability appetites

Medium term

Develop adequate tools to identify the ESG profile of corporate clients andprovide them with the best solutions for a just and fair green transition

Short term

Advise clients to take advantage of strategic initiatives and subsidised
finance options to facilitate the achievement of their decarbonisation goals

Short term

Further expand our product and services offering to support our clientsin improving their sustainability profiles

Medium term

Continue to focus on providing advisory and debt arrangement
services in the main energy transition sectors to support our clients’energy transition journey

Medium term

Reduce the environmental impact of our buildings and IT assets(offices, branches, data centres) by leveraging electricity from renewablesources and optimising energy and space efficiency

Short term

Business –Corporate Solutions

Operations

1.3. Investments – enablers for implementation
Our global framework for ESG-related information is supported
by a central IT architecture that acts as a key enabler forcompliance to regulatory disclosure requirements as wellas enhancing Risk Management processes and our businesssteering, monitoring and reporting framework.
All the ESG data collected have been integrated into the
ESG Global infrastructure – a single data framework thatallows ESG data to be integrated with other risk information,
ensuring the uniqueness of the information and its use fordifferent purposes.

Supplement

Business –Individual Solutions

AnnexesTime Horizon

Governance, Risk and Compliance

Opportunity

Our Impact

Segment

To turn this concept into reality, we have created a new
integrated ESG ecosystem that involves the developmentof three main new assets:– Survey /Front-End, which has a dual function. It enables
the submission of customers’ surveys to retrieve ESG
KPIs in the origination phase; and it also makes key ESG
information available to the Network, through the ESG KPIs
cockpit (an important tool in the steering of Business andCredit Strategies)– Calculation Engine, that will identify the green loans– The Sustainability Data Repository, which willcollect information, to manage reporting and data
exploration activities
This architecture will be introduced to all Group countries via
a phased roll-out plan.

UniCredit 2023 Integrated Report161

Risk Management

2. Risk management
We recognise Climate and Environmental risk factors
as crucial elements in safeguarding our clients’portfolios and assets from climate-related risks.
To achieve this goal, we are integrating climate andenvironmental factors into our risk management
processes and procedures. Climate Risk Management
encompasses the identification, measurement,
and monitoring of these risks as well as theimplementation of mitigation measures. We actively
engage and support corporate clients in transitioning
to a lower carbon business model, fully exploiting
green business opportunities. Furthermore, we aim
to assist our clients in achieving a just transition,
ensuring fairness throughout the process.
2.1. Risk identification
Our annual risk identification process is a comprehensive
framework that proactively identifies all potential risks theGroup may encounter. The primary outcome of this activity
is the risk inventory, which comprises a comprehensive list of
the quantitative and qualitative risks to which the Group is or
may be exposed. The risk identification process enables us toassess which risks are, or are likely to be, material considering
their exposures. Material risks are determined annually using
a quantitative approach that involves assessing the risk level
against the materiality threshold.
In line with the European Banking Authority’s (EBA) eight andthe European Central Bank’s (ECB) nine expectations, our risk
identification process covers ESG risk dimensions. These areassessed through the lenses of physical and Transition risk
drivers, considering that these could positively or negatively
affect the risk types already incorporated in our risk
management framework.
ESG risks pertain to any adverse financial consequences that
may arise for the Group due to the existing or prospective
impacts of ESG factors on our counterparties or invested assets:– Climate and Environmental (C&E) factors are related tothe quality and functioning of the natural environment
and its systems and include factors such as climatechange, biodiversity, energy consumption, pollution andwaste management

In line with the Recommendations of the Task Force on
Climate-related Financial Disclosures (2017), climate-relatedrisks can be divided into two major categories: (1) risks related
to the transition to a lower-carbon economy and (2) risks
related to the physical impacts of climate change, described indetail below.

Transition risks
Transition risks refer to the risks arising from the transition toa lower-carbon economy, which may entail extensive policy,
legal, technology, and market changes to address mitigation
and adaptation requirements related to climate change.
Depending on the nature, pace and focus of these changes,
transition risks can pose different levels of financial andreputational risk for organisations.
– Policy and Legal Risks: stemming from continuously
evolving policy actions, attempting to either constrain actions
that contribute to the adverse effects of climate change or
seeking to promote adaptation to climate change, and from
litigation or legal risks– Technology Risk: arising from technological improvements
or innovations that support the transition to a lower-carbon,
energy-efficient economic system and that can have asignificant impact on organisations to the extent that newtechnology replaces old systems and disrupts some parts ofthe existing economic system– Market Risk: relating to the potential shifts in supply anddemand for certain commodities, products and services– Reputational Risks: resulting from changing client orcommunity perceptions of the organisation’s contribution toor detraction from the transition to a lower-carbon economy

Physical risks
Physical risks refer to the risks related to the physical impact ofclimate change. These types of risk can be event-driven (acute)or long-term shifts (chronic) in climate patterns and, as such,their effects can be felt both in the short- and medium-/longterm horizon.
– Acute physical risks are event-driven, including increased
severity of extreme weather events (e.g. droughts,
floods, etc.)– Chronic risks refer to longer-term shifts in climate patterns(e.g. sustained higher temperatures)– Social and Governance factors, to which we have assigned
an impact on reputational risk, revolve around the rights,
well-being and interests of individuals and communities andinclude governance arrangements for the environmental andsocial factors in the policies and procedures of counterparties

162

UniCredit 2023 Integrated ReportOverview
Our Context

2.2. Transmission channels
Understanding these transmission channels is crucial forassessing the impact of climate risk drivers in our risk
management framework. The table below illustrates theclimate-related risk drivers, relevant transmission channels
and risk types that may be affected.

Our Impact

Transmission channels

Risk types potentially impacted

Physical risk drivers– Carbon price/carbon tax– Credit risk

– Acute– New climate-related regulations– Market risk

– Chronic– Stranded assets– Liquidity risk

– Damages to property– Operational risk

– Shifts in prices and asset values– Reputational risk

– Increased volatility of asset prices– Business risk

– Lower asset performance– Real Estate risk

– Operational disruption– Inter-risk diversification– Policy changes– Technological changes– Client or community
perception changes– Productivity changes

Annexes– Behavioural/consumer
preferences changes

Governance, Risk and Compliance

Climate-related risk drivers

Transition to low carbon
Economy risk drivers

Our Strategy

The connections between climate risk drivers and therisks faced by banks are referred to as transmission
channels. The likelihood and magnitude of the impact
of climate risk drivers can be affected by a numberof additional variables. These include: the geographic
location of the bank, the assets or exposures involved,
the interactions and interdependencies between
transmission channels and climate risk drivers that
can amplify impacts and mitigating measures that can
reduce or offset impacts.

– Losses of business opportunity– Dispute, claims– Interest rates level

Supplement– Changes in individuals’ habits– Changes in clients’ expectations– Political decisions– Energy Performance Certificates– Insurance availability/affordability/
pricing

UniCredit 2023 Integrated Report163

Risk Management

2.3. Integration of climate risk into risk framework– short-/medium-/long-term impacts
With particular reference to the identification and monitoringof climate-related risks, an annual materiality analysis aimed
at assessing the relevance of climate-related risk drivers
with respect to the various risk families considered andtheir potential impact for the Group is carried out under thenormative and economic perspectives for both the short-term
and medium-/long-term horizons. This exercise, performed
through scenario analysis, envisages the full coverage of risk
types and the integration of forward-looking elements andis used to identify how the risk types (e.g. Credit risk, Market
risk, etc.) are impacted by transition and physical risks for theconsidered time horizons, as well as an assessment of thecapital adequacy to check the Group resilience for the medium-/long-term horizon. The result of the short-term assessment overthe 12-month time horizon is also adopted in the context of themateriality assessment process prescribed by the internal risk
identification process.
From a methodological perspective, the estimate of the climate
risk impact on each risk is performed considering the existing
Bank’s loans, assuming over the time horizon an exposure
reallocation in terms of industry/sector and EPC according tocredit risk strategies (in line with ECB Climate Stress Test) on
Credit risk side. No profit generation is considered.

The set of climate scenarios considered for the analysis isprovided by a qualified external provider and is meant toassess and quantify potential vulnerabilities through analyses
in stressed conditions for the short- and medium-/long-termhorizons. The main climate assumptions are embedded in the
scenarios in terms of transition policies and level of emissions/temperature are consistent with the NGFS/IEA’s ones to ensure
consistency with scientific climate change pathways to properly
assess the impact of physical and Transition risk drivers.
The scenarios are extended with a more comprehensive set ofvariables (climate and macroeconomic related) disaggregatedat higher level of granularity, which is better fitting our stresstesting models framework.
In particular, a Central Scenario (namely, Baseline),
which considers the current political context, the central
macroeconomic outlook and climate assumptions similar to the
IEA STEPS scenario incorporating policies deemed sufficiently
credible to materialise into action, as well as two polarised
stressed scenarios with very low probability of occurrence,are considered.

The scenarios’ narratives for 2022 climate-risk scenario analysis are described below
Baseline

Delayed transition

No further action

Central scenario

Transition risk stressed scenario

Physical risk stressed scenario

Narrative: Projection of commitment
and measures currently adopted
by different countries. Climate
assumptions aligned with the IEA’s
Stated Policies Scenario

Narrative: Governments are notramping up efforts to limit global
warming by 2030. Therefore, amore stringent policy is required toachieve similar climate outcomes by
2050, resulting in greater economic
impacts. Aggressive and uncertain
carbon taxation policies cause
substantial inflationary pressures,
stranded assets and financial
instability. Government carbon tax
revenues are sufficient to cover the
fiscal costs of the transition

Narrative: Expanding fossil fueldemand and government failure
to meet stated Nationally
Determined Contribution (NDC)
commitments lead to higher
emissions than in the baseline

The polarised stressed scenarios are modelled as deviations from the Baseline scenario’s macroeconomic outlook and,as such, are meant to capture climate risk driven outcomes, with varying mixes of physical (main driver of No Further Action
scenario) and Transition risk (main driver of Delayed Transition scenario).

164

UniCredit 2023 Integrated ReportOverview
Our Context

The following heatmap depicts the results of the 2022 climate-risk scenario analysis for the short- and medium-/long-termhorizons, in terms of the impacts on the components of the capital adequacy ratio under the economic perspective.

2022 climate-related risks materiality assessment (short- and medium-/long-term horizons)No further actions
2040

2050

2030

2040

2050

Credit risk

ML

ML

H

MH

ML

MH

H

Market risk

L

M

M

M

ML

ML

ML

Operational &Reputational risks

L

L

L

L

L

ML

ML

Business risk

L

L

ML

ML

L

L

L

Real Estate risk

L

L

MH

MH

ML

ML

M

Low impact

ML Moderately low impact

M Moderate impact

High impact

The outcomes of the 2022 short-term materiality assessment
performed within the standard Internal Capital Adequacy
Assessment Process (ICAAP) framework, complemented byfurther concentration analyses and stress scenarios, suggest
a limited impact of climate-related risk drivers. Similarly, thefirst outcome of the liquidity impact of climate-related risks
reveals a limited materiality of the exposures to these risks
also in Internal Liquidity Adequacy Assessment Process (ILAAP).
According to the long-term assessment, the capital positionof the Group is adequate considering the potential impact ofclimate-related risks also on a longer time horizon.

Supplement

In terms of expected credit losses, the impacts due to climate
risk are mitigated thanks to:H

Annexes

The short-term (ST) column refers to the impact for each risk
type considering the maximum impact of the two stressedclimate scenarios. The same exercise is carried out in themedium-/long-term horizon (i.e. 2030, 2040 and 2050) to
isolate transition and physical risk drivers. Credit risk is themost affected component and reaches its peak in 2050 in the
scenario with no climate policies (“No further Action scenario”),
which embeds a lower economic growth and rise in thefrequency of extreme natural events with consequent increaseof default rate and depreciation of real estate collateral.
Moderate/moderately high impacts are estimated also for
Credit risk, Real Estate risk and Market risk driven by Transition
risk, reaching their peak in 2040.

MH Moderately high impact

Governance, Risk and Compliance

2030

Our Impact

Short TermL

Our Strategy

Delayed Transition

The ongoing 2023 climate-risk scenario analysis preserves themethodological approach applied in 2022 climate-risk scenario
analysis and considers updated climate scenarios.

– low amount of exposure in vulnerable sectors at Stage 2(at 2022 year-end c.1.8 % of Total Gross Loans)– short average maturity for loans in Stage 2, four years on
average for vulnerable sectors– limited amount of exposures collateralised by properties
located in geographic areas subjected to moderately highphysical risk (e.g. flood, wildfire), 2.1% of the real estate
exposure with an average LTV of 37%

UniCredit 2023 Integrated Report165

Risk Management

2.4. Integration of climate risk into the
Risk Appetite Framework (RAF)
Our Risk Appetite provides an integrated view of business andrisk strategy, ensuring the execution of our strategic plan within
the risk capacity we are willing to assume. It establishes theGroup’s desired risk profile, driving short-term and long-term
strategic objectives, and is supervised by the UniCredit Boardof Directors.
The Risk Appetite Framework (RAF) is composed of three
key elements:– Risk Appetite Statement (RAS) provides a strategic view ofand guidance on the target risk profile and is expressed via
qualitative statements– Risk Appetite Dashboard quantitative KPIs with related
targets and risk tolerance thresholds for managing
proactive risk
– Risk Strategies ensure the cascading of the Risk Appetite
to more granular levels via operational indicators, limits
and controls
Since 2020, dedicated RASs have been drawn up regarding
C&E risks, including the definition of our commitment to assist
our clients in a just and fair transition and the continuous
integration of C&E risks within the Risk Management
framework. Dedicated quantitative C&E risk-related KPIs
have been included in the Risk Appetite Dashboard since2022, addressing both transitional and physical C&E risks andincluding Net Zero. These KPIs are regularly monitored andreported in the RAF reports. After one full year of monitoring,
we added risk tolerance thresholds to these KPIs in 2023.

166

High Transition risk exposure KPI: aimed at measuring theBank’s exposure to the largest counterparties that appear more
vulnerable along the transition path towards a lower-carbon
economy, based on information gained through the Climate andEnvironmental Questionnaire.
– Fossil fuel-related exposure KPI focused on a group
comprising counterparties in certain classes, as set out in our
Oil & Gas and Coal policies– Physical risk KPI designed to measure potential damages
that extreme climate-related acute physical risks events
could cause to the Bank’s collateral portfolio. The KPI ismonitored at Group level and during 2023 was cascaded tocertain major Legal Entities
Being an integral part of the Group Risk Appetite monitoringprocess, C&E KPIs are subject to an escalation process (inthe case of risk tolerance threshold breaches) with related
corrective/mitigation actions to be defined, when needed.
The Group Board of Directors is informed of the breach andremedial actions (if any) on a quarterly basis through theperiodical information sharing process.
For 2024 further enhancement of RAF are foreseen, for example
extending the coverage of portfolio for Transition risk andthe introduction of Net Zero KPIs for the first three priority
industries considered in the Bank Net Zero Journey (Oil & Gas,
Power Generation and Automotive).
No breach in any of the defined thresholds occurred in 2023.

UniCredit 2023 Integrated ReportOverview

We have developed a comprehensive approach to assess andmanage Transition risk; the Risk Management framework is
fully consistent with the RAF and is based on three pillars:– Assessment at single client level, leveraging a dedicated
C&E questionnaire
Credit Risk Strategies, which are reviewed at least once a
year, are a particularly important tool for ensuring inclusionof the relevant C&E factors in the overall credit risk
strategy. Industry steering signals (underweight, neutral,overweight) and related industry limits embed all relevant
C&E factors, leveraging a heatmap based on Transition risk
scores by economic activity (integrating C&E questionnaire
where available).

– C&E exposure: five questions facilitate an analysis of thecurrent level of exposure of the Economic Group underassessment: (i) level of GHG emission (Scope 1, 2 and 3);(ii) Water consumption; (iii) Energy consumption; (iv) Waste
production and recycling; (v) Alignment to EU Taxonomy

Governance, Risk and Compliance– Dedicated industry steering signals, based on relevant
Climate & Environmental factors included in the Credit Risk
Strategies framework

To determine the extent to which the Bank’s Credit
counterparties are exposed to C&E risks, the C&E questionnaire
is based on a set of both cross-industry questions (in total
11 considering the different sections) and industry-specificquestions (an additional two for specific sectors), measuring
qualitative and quantitative current and forward-looking key
indicators across three main dimensions:

Our Impact– Specific Reputation Risk Policies (see dedicated section
within Non-Financial Risks)

Further principles are also integrated within qualitative
guidelines (including Net Zero indication) the business to assess
and mitigate the risks for each specific industry. The cascading
to the Legal Entities of the Group, together with the monitoringand escalation processes at local and holding level, steer
different credit portfolios in alignment with the RAF.

Our Strategy

We have been working to identify, measure, monitor andmitigate Transition risk. The Transition risk of the portfolio
is measured with different metrics, which also include the
distribution of the credit portfolio by industry.

Our Context

2.5. Integration of Transition risk into credit
portfolio – CRS and Counterparty level– C&E vulnerability: four questions enable an analysis of theclimate change management maturity level on a forwardlooking basis, covering: (i) Company’s investment plan
to shift to lower emission level business model; (ii) GHG
emissions reduction target

Annexes– Economic impact: two questions allow us to analyse
the potential impacts on corporate clients’ financial andindustrial performance in terms of cost and revenues

Three steps to determining the questionnaire result
Supplement0•

Questionnaire

Scoring and Weighting

Results and Matrix

11 cross-industry and two
industry-specific C&E related
qualitative-quantitative questions

Questions and answers converted
into homogeneous scores on ascale from 1 to 5 and weighted byrelevance to enable differentiation

The sum of weighted score positions
each counterpart on the Transition
risk Assessment matrix

UniCredit 2023 Integrated Report

167

Risk Management

Transition Risk Matrix in detail
1. Calculation of question-specific indicators based on
the answers provided (a penalty system is in place andapplied when information could not be gathered)a. Sum of question-specific scores (and penalties ifnecessary) for each question in the Exposure cluster;
the result is plotted on the vertical axis of the matrix

2. Conversion of indicators, related to single questions,to standardise the scores of different responses andguarantee comparability of resultsb. Sum of question-specific scores (and penalties ifnecessary) for each question in the Vulnerability cluster;
the result is plotted on the horizontal axis of the matrix
4. Determination of C&E score ratings (1-Low; 2-MediumLow; 3-Medium-High; 4-High Risk), as shown in thematrix below

3. Weighting of question-specific scores according to a predefined table (that takes into account the relevance of thequestions) and calculation of the summary score for thedifferent dimensions:

Matrix scoring methodology
5

•
•
•
•

D
High
Transition
risk

C&E Exposure

43Medium-High
Transition
risk

C
2

1

•

Low
Transition
risk

Financial/
Economic
ImpactA01

c.1,000

2
3
C&E Vulnerability

approximate number of counterparties
mapped by the C&E Questionnaire

168•

Medium-Low
Transition
riskHigh C&E Transition
risk counterpartsA

Low Transition Risk
Clients with no/limited C&E
Transition risk

B

Medium-Low Transition Risk
Clients with a degree of C&E
Transition riskC

Medium-High Transition Risk
Clients with tangible C&E
Transition risk

D

High Transition Risk
Clients with a high level of C&E
Transition risk

B

4

5

40%

approximate corporate
portfolio coverage

UniCredit 2023 Integrated ReportOverview

High
Medium-High

2.7. Transition risk at collateral level
Supplement

Risk of our clients (approximate %)The collection of data acquired from the external provider has
also enabled us to broaden the spectrum of available indicators,
including KPIs relevant to both regulatory disclosure andmanagerial activities (e.g. Transition and Physical counterparty
risk, the ESG score, with its components, GHG emissions, Top 20
polluters information).

Annexes

Following the consolidation of data as of
31 December 2023, the following are the values
relating to Transition risk:

Our consideration of C&E factors for the Corporate portfolio
followed a clear road map. This began in January 2021, withthe submission of the C&E questionnaire to all files discussed
in the Holding Credit Committees, with a coverage, in termsof EAD, of around 35%. The following year, it was extended toinclude the Local Credit Committees. This enabled us to achievea coverage of around 40%. Through the acquisition of datafrom the external provider, coverage rose to more than 90%of the Corporate portfolio, across the different geographies of
the Group.

Governance, Risk and Compliance

In cases where the client is assigned “high” or“very high” Transition risk score, the strategy
requires the client either adopts a majority of or
exclusively ESG products, respectively. Outcomeof physical risk assessment at counterparty levelis meant to complement the strategy with therequest of physical risk mitigation action wheneverdeemed necessary.

The data strategy must be flexible over time and able to take
into account the evolution of regulation and Bank experience.

Our Impact

A specific process, factoring in Transition risk andphysical risk evaluation (together with reputationalrisk and Net Zero whenever relevant) has been
designed and cascaded to the Group Legal Entities inorder to address the inclusion of C&E considerations
into the overall evaluation of the client.
Leveraging on Transition risk score, the processapplication results in specific strategies (in terms ofeligible products) to steer the corporate portfolio’s
exposure fostering the clients’ green transition andreducing at the same time the Bank’s exposure to
C&E risks.

To measure and track Transition risk associated with assets
accepted as collateral to fulfil regulatory obligations (Pillar 3,
EU Taxonomy, Stress Tests) and meeting managerial needs, acollection of Energy Performance Certification (EPC) data has
been conducted in the various Group Legal Entities:– For the Stock, where the data couldn’t be punctually
retrieved, the group leveraged on external specialised
providers, which developed an estimation model

5
10– For the new flows, the following Transition risk KPIs will bemandatorily collected and properly taken in consideration
during organisation phase:– EPC LABEL (WITH FLAG INDICATING ESTIMATED/REPORTED)– PED (KWH/SQM)– CO2 EMISSIONS
85
Low and Medium-Low

UniCredit 2023 Integrated Report

Our Strategy

The results of the C&E assessments are integrated
in the files submitted to credit committees,
allowing them to effectively take climate andenvironmental factors into account during the credit
decision phase.

We have defined a comprehensive data strategy, integratinginternal data with data from external providers. In order toachieve the right balance between the punctual recovery of KPIs
and the impact on business, leveraging both external providers
and internal customer surveys, we have used the different
scores available according to a prioritisation strategy. This will
naturally favour the use of point data, collected throughcustomer surveys, over proxies.

Our Context

2.6. Data strategy

The results– EPC ISSUANCE YEAR
Such information has been integrated into the ESG Global IT
infrastructure and is available on the local mortgage platforms.

169

Risk Management

2.8. Physical risk in the credit portfolio

very high coverage (>90%) and for physical risk about 50%
coverage can be obtained, similarly also for the purpose ofcounterparty credit risk and liquidity risk (CBC).

Physical risk is carefully monitored for both corporate
portfolio and individual collateral assets, involving theassessment of a wide range of hazard events. Corporate risk
monitoring leverages external provider support, and the risk
represents around the 8% of the portfolio.

– C&E KPIs are included within Market Risk Strategy in line withGroup ESG Strategy; a dedicated limits and warning levels areapplied. Specifically:

UniCredit has developed a methodology to estimate thepotential actual annual deterioration of the fair value (FV)of the collateral behind the mortgage portfolio.

– Granular Market Limits (GMLs) for Equities and Credit
exposure vs High Transition and Physical Risk Score in the
Trading Book

The approach envisages:– Granular Market Limits (GMLs) for Non-Sovereign Debt
securities exposure vs high Transition and Physical Risk
Score in the Investment Portfolio, i.e. in the Banking Book

– Identification of key acute physical risks impacting theBank’s geographies at postal code/municipality level– Quantification of the potential damage of the collaterals
located in critical sites (i.e. high physical risk areas)– Evaluation of the percentage of fair value potentiallydamaged by the event
c.0.1% estimate of the impact of the fair value**Data as at 31 December 2023

2.9. Financial risk
With regards to financial risks (Market risk, Liquidity risk
and Counterparty Credit risk), we have implemented several
concrete initiatives to further integrate C&E risk into thefinancial risk management framework. The key pillars of ourapproach include:– An overall methodological approach for incorporating
C&E drivers within the Financial risk framework has
been further refined, leveraging a combination ofassessment methodologies already employed by the Bank.
The methodological framework measures Transition andPhysical risks within the Financial risk relevant perimeter.
For this purpose both internal (transition) risk scores as well
as externally sourced scores are applied. For the purpose of
Transition risk these scores are further complemented byindustry scores to further increase the data coverage. For the
relevant market risk perimeter (Corporates & Financials
single names) in the trading book a coverage of around 80%(generally higher for transition than for physical risk) can beaccomplished while for the investment portfolio relevant
perimeter (Corporates & Financials) for Transition risk a170– Early Warning for Sovereign Debt securities exposure vshigh Transition and Physical Risk Score in the Investment
Portfolio, i.e. in the Banking Book
– Stress Test Warning Levels (STWL) on dedicatedclimate scenarios– The assessment of C&E drivers is incorporated into theprocess for evaluating new financial products within the
Bank. When assessing new products, Legal Entities are
responsible for verifying whether any C&E risk is embeddedin the product’s payoff/structure and for ensuring consistency
with Group’s ESG Strategy by involving the local competentfunction if needed.
– Specific inclusion and exclusion criteria for investment
process and Transaction due diligence in coherence with Coaland Oil & Gas sector polices.

UniCredit 2023 Integrated ReportOverview

To assess the materiality of the liquidity risk arising fromclimate factors related with deposits and committed lines,
UniCredit’s customers are classified according to a climate risk
score defined through an internal questionnaire of acquiredby external information providers. A stressed liquidity outflow
ratio is applied on those customers labelled with high or
medium-high risk. The potential deterioration or the value ofthe counterbalancing capacity or the change in the value ofderivatives (generating margin calls) is estimated by applying
specific climate scenarios to the most relevant market variables.
The above-described effects are applied to the short-termand structural liquidity risk metrics. The resulting impact iscompared with the internal inherent risk severity thresholds.
In general, longer-term effects (on the balance sheet structure)
are minor both for transitional and physical risk, as the liquidity
structure of the Bank balance sheet is sound and ensuresenough time to absorb potential climate-related changes.
As far as the short-term effects (direct impacts on liquidity)
are concerned, the exposure to physical risk is negligible.
On transitional risk, the potential adverse liquidity impacts
for the Group are classified as medium-low according to theinternal scale.

Annexes
Supplement

Climate risk could cause material net cash outflows or depletionof liquidity buffers, mainly stemming from the financial impact
on the held assets of a changing climate (i.e. physical risk)or the institution’s financial loss that can result, directly or
indirectly, from the process of adjustment towards a lowercarbon and more environmentally sustainable economy (i.e.
Transition risk). According to the definition of physical andtransitional risk, the transmission of climate risk to liquidity
comes through the following channels:

Additionally, the Transition risk might appear if UniCredit itself
fails in adapting its practices to the new climate regulations,thus leading to reputational impacts. Such a risk is regularly
monitored through the name crisis scenario of the liquidity
stress test.

As far as social and governance aspects are concerned, they
are addressed for various risk pillars via policies. These policies
also stipulate that all the subjects that establish a relationshipwith UniCredit Group must satisfy at least a set of social/governance minimum requisites as reported in the paragraphdedicated to social and governance risk. These inclusion criteria
aim to effectively ex-ante avoid social/governance related risks
generally and specifically also for liquidity risk.

– Counterbalancing Capacity (CBC): risk premia on securities
of carbon-intensive issuers (transitional risk) or issuersparticularly exposed to extreme climate events (physicalrisk) could increase, deteriorating the market value of theliquidity buffer;– Deposits: withdrawals of deposits mainly due to highliquidity needs and credit losses that could stem from
corporate clients with high CO2 emissions, which could
have to adapt their technologies and production plants tomore carbon-neutral economies (transitional risk) or from
customers hit by severe weather events (physical risk), which
reduce profitability and potentially increase credit risk andliquidity needs;

UniCredit 2023 Integrated Report

Governance, Risk and Compliance

The materiality for financial risk is assessed via the standard
ICAAP framework as described earlier and is complemented
by further concentration analyses and stress scenarios.
Based on these assessments, combined also with qualitative
considerations on UniCredit’s trading business model, there
appears to be no materiality of C&E drivers on market risk
exposures. Similarly, the first outcome of the liquidity impact ofclimate risks reveals a limited materiality of the exposures tothese risks also in ILAAP.

– Market valuation changes on derivatives transactions
climate-related price shocks and increased market volatility
may result in increased derivative exposures and related
margin-calls.

Our Impact

Identifying C&E risks in financial risks– Undrawn credit and liquidity facilities, whose usage might
increase for the same reasons listed for deposits;

Our Strategy

Concerning Monitoring and Reporting, the Financial Risk
department monitors and reports monthly to competent
corporate governing bodies the concentration towards Climate
Risk with reference to equity risk and corporate and financial
bonds in the trading book, corporate and financial bonds inthe investment portfolio, counterparty credit risk exposuresand counterbalancing capacity. The monitoring framework
includes Physical and Transition risks within the Financial Risk
relevant perimeter complemented also by an analysis withrespect to physical risk hazards. Additionally, also a Carbon
Footprinting analysis for the corporates and financial bonds inthe investment portfolio is included. In April 2022, the Market
Risk stress testing programme was enhanced with a dedicatedClimate risk scenario which extends the ECB short-term
disorderly transition scenario. Moreover, since October 2022,
the monthly reporting and monitoring framework has beenenhanced by incorporating transition and physical risks andin December 2022 the Climate risk stress test scenarios were
further increased. In September 2023 scenarios were further
updated. Scenarios mainly focusing on Transition risk as well as
scenarios focusing mainly on physical risk are included.

Our Context

Integration of C&E risks in the monitoring
and reporting of financial risks

171

Risk Management

2.10. Non-financial risk
Non-financial risks can be influenced by environmental factors
in general and by the climate change in particular in two
different ways:
Reputational Risk – Risk for the Group of being perceived andcriticised for supporting activities and projects through its
financial products and services that harm the environment andcontribute to worsening the climate change scenario
Operational Risk – Risk for the Group of facing temporary
disruption or unavailability of key premises (e.g. data centres,
operational centres, headquarters) or for the discontinuity ofservices suffered by some of its third-party service providers
due to adverse extreme climate conditions
The Bank has implemented adequate processes to mitigate theabove-mentioned risks. These are described below:

Reputational Risk
The Group defines Reputational Risk as the current orprospective risk to earnings and capital resulting from thenegative perception of the Financial Institution’s image by
various stakeholders including clients, shareholders/investors,
regulators, employees, debt-holders, market analysts, civilsociety, NGOs, media and other relevant parties.
The management of Reputational Risk relies on:
1. Setting clear general rules and guidelines for:– defining the profile of relationships (with clients as well aswith other relevant counterparties such as suppliers) andoperations (mainly financial support, but also investments
and other financial services offered) that the Group is able
to manage and develop– defining the profile of what the Group does not consider tobe in line with its principles and reputational standards.
These rules and guidelines are designed to ensurealignment with laws, internal and external regulations,best practices within the sector and to reflect thesensitivity of the Group172

2. Setting additional specific rules and guidelines for sectors
considered sensitive (Coal, Oil & Gas, Defence, Nuclear,
Mining, Water Infrastructures)
3. Requiring for each relationship the evaluation of theconformity to the rules and guidelines mentioned above
4. Ensuring respect of the rules mentioned above for each
operation and performing a specific Reputational Risk
Assessment involving Reputational Risk and other competentfunctions in cases of potential deviation
5. Setting conditions, controls or limitation, where deemednecessary, in order to reduce the material residual
Reputational Risk for Group, regardless of the sector
connected to the case
6. Independently from the sector, evaluation of the Liability/
Litigation Risk that can derive from supporting a deal which
could produce a negative environmental or social impact,when the deal is under the Equator Principles (EP)
7. Taking the right decisions at the right level of authorisationin cases of potential reputational risk
In addition, we have signed specific commitments regarding
Tobacco and Deforestation.
The provisions are renewed on a continuous basis, taking into
account the evolution of the market and the sensitivity of theGroup towards these sectors.
For each sensitive sector, the policy covers thefollowing aspects:– The scope of the sector (type of subjects and activities)– The forbidden activities (activities that the Group is notavailable to support with its financial products and services,e.g. controversial weapons, nuclear weapons, coal-related
activities, oil & gas activities in the Arctic region)– The classification of the clients

UniCredit 2023 Integrated ReportOverview
Our Context

The six sensitive sectors identified

Governance, Risk and Compliance

Water InfrastructureGroup Reputational Risk Framework

Sensitive

Environmental

MiningOur Impact

Oil & Gas

Fossil Fuels

Coal

Our Strategy

As of end of 2023, the Group, in its continuous monitoring of the market and stakeholder’s expectations, has identified
six “sensitive sectors” for which it has adopted a dedicated additional set of provisions and rules described in specificinternal regulations. These are listed below:

Nuclear (for energy generation)
Defence (including nuclear weapons)
All the sector/all the relationships

Annexes
Supplement

A Reputational Risk Assessment is requested
We have defined a process for assessing Reputational Risk (RepRisk), identifying cases where a dedicated assessment isnecessary.

On schedule

A. Annual Clearance
e.g. Whenever a customer is subject to the annual credit review

B. Reputational Clearance
Whenever an event, related to a customer, occurs and the event itself could impact
UCG reputation
e.g. The customer is involved in a scandal of public interest and the event is also coveredby the media which give due information

On event

e.g. The customer is accused by the judiciary of having violated the anti-money
laundering law

C. Single Deal Approval
When a customer, belonging to one or more “sensitive sectors” is requesting afinancial support for a project or a general financing
e.g. The customer ask for a letter of credit to export weapons in a foreign country
e.g. The customer operating in the Oil & Gas sector ask for general financing

UniCredit 2023 Integrated Report

173

Risk Management

Classification in the Coal sector

Full Support

Advanced
Banking

Other

Basic
Banking

Other
Activities

Coal-related
Activities

Sustainability
linked RCF

GeneralFinancing

Provisions

Project
Financing
Green Activities
Financing

GeneralFinancing– No coal developer (no increase in coal businesssince September 2020)
AND– Current revenues from coal ≤ 25%
AND

Green Financing– Phase out by 2028
– No coal developer (no increase in coal businesssince September 2020)
AND– Phase out in line with National Energy & Climate Plan

Phase-out– Coal developer (increase in coal business since
September 2020)
OR– Phase out plan missingOR– Phase out plan beyond the National Energy& Climate Plan target date
The classification of clients:
Full Support – Clients completely in line with theprovisions and for which the Group is available to provide
full financial support

AllowedAllowed, to be evaluated and approved
Not allowed

Green Financing – Clients partially in line with positivetransitions and moving in the right direction. We can support
these clients with financial products and services, but will
refrain from providing other types of financial products andservices that do not align with the transition towards moresustainable practices
Phase-out – Clients not aligned with the provisions of the Groupor moving in a different direction and for which the Group in
not able to provide any kind of financial support. In these casesa phase-out of the relationship may be considered

174

UniCredit 2023 Integrated ReportOverview
Our Context

Classification in the Oil & Gas sector

Advanced Banking
Services

Basic Banking
Services

Other Activities
Financing

Oil-related
Activities
Financing

Controversial
Oil & Gas-Rrelated
Activities Financing

Green Activities
Financing

Sustainability
linked RCF

Other

Our Impact

GeneralFinancing

Provisions

Gas-related Activities
Financing

Dedicated Purpose Financing/Transactions Financing

Our Strategy

GeneralFinancing

Governance, Risk and ComplianceFull Support– Current revenues from Unconventional
Oil & Gas activities ≤ 25%
AND– Current revenues from Arctic Oil & Gas
activities ≤ 25%
AND– Current revenues from Unconventional
Oil & Gas activities ≤ 25% AND <50%
AND
– Current revenues from Arctic Oil & Gas
activities ≤ 25% AND <50%

Annexes

Transition Support– Not relevant for Net Zero

OR
– Current revenues from Unconventional
Oil & Gas activities >50%

Supplement

Phase-out– Relevant for Net Zero*

OR
– Current revenues from Arctic Oil & Gas
activities >50%

Annual Clearance Applicability

Allowed– Medium and Large Corporate Segment (turnover > €50 m)
or CIB Division

Allowed, to be evaluated and approved– Upstream and Midstream and owners, operators,
subcontractors or suppliers of Key Components/
Infrastructures/Services (including companies in the juridicalgroup, i.e. >25%)

UniCredit 2023 Integrated Report

Not allowed* With the exception of Current/Cash accounts

175

Risk Management

The decision-making bodies responsible for assessing cases of
Reputational Risk can vary according to the relevance of thecase and alignment with the policy provisions.
Cases where we envisage a potential high relevance in terms of
Reputational Risk are brought to the attention and decision of
the Group Non-Financial Risks Committee (GNFRC) chaired by
the Group CEO.
Similar structures have been established at local level withineach Legal Entity of the Group. At Local Level, RRO andGNFRC are collapsed in the LNFRC (Local Non-Financial Risk
Committee), chaired by the Local CEO.
Cases where reputational risks are deemed to be of significant
relevance within a specific Legal Entity are submitted to theHolding Company for further validation via a Non-Binding
Opinion (NBO).

Exposure towards high GHG emitters
Exposure towards NACE sectors having the highest GHG
Intensity (>1,000tCO2e/m€).
Exposures are well differentiated among industries withrelatively higher concentration in Electricity & Gas supply
and manufacturing of basic metals.

A RepRisk decision taken at local level also requires an NBO by
the Holding Company in two specific situations:– When the case, authorised by the Local NFR Committee,
presents a High RepRisk and has to be submitted to a Group
Credit Committee (GCC or GTCC)– When explicitly requested by the policy. For example, Green
Project Financing in the Oil & Gas or Coal sectors, granted toa B Class client, requires an NBO to double-check that theGreen project is currently aligned with the EU Taxonomy
Whenever further scrutiny of a case is deemed necessary,
Legal Entities can ask the Holding Company for an NBO in cases
outside the two mentioned above.
Any unplanned and unforeseen situations related to a
specific relationship or deal and not aligned with thestandard provisions of the policy are evaluated case by case.
Expert judgement is required for evaluating the alignmentof the case with our general principles on Reputational Risk.
Any decisions must diligently consider the provisions of theapplicable policy and the characteristics and context of thecase under examination.

16%of Corporate portfolio

Our ESG Strategy is to evaluate and support the climatetransition of counterparties with reliable plans.
% on Non-Financial
Corporate FY231% on Non-Financial
Corporate FY22

Agriculture & Livestock

1.53%

1.50%

B05-B09

Mining

0.67%

1.20%

C19

Petroleum

0.61%

0.70%

C20

Chemicals

1.71%

1.90%

C23

Non-metallic minerals

1.19%

1.20%

C24-C25

Metals

4.12%

4.50%

D35

Electricity & Gas

5.51%

5.50%

H50

Water transport

NACE code

NACE description

A01

Total

0.68%

0.80%

16.01%

17.00%

1. Group exposure (GCA) equal to €224 bn as at 31 December 2023. Exposure equal to €241bn as at 31 December 2022.

176

UniCredit 2023 Integrated ReportOverview
Our Context

Decisional bodies on RepRisk (Holding and Legal Entities)

Decision makers/number of cases in 2023:

Types of cases discussed:

Our Strategy

1,880 transactions evaluated in 2023
GNFRC

28 cases

Our Impact

Group CEO withselected GEC members

Cases2 with High
RepRisk or with RepRisk
appetite yet to be set

Governance, Risk and ComplianceGroup RepRisk Office
Head of NFR and Heads ofSpecialist Functions

68 cases

Cases3 with High RepRisk orwith appetite already set
in previous decisions

Annexes

Local RepRisk Office/Local NFRC

514 cases

Supplement

Cases with High RepRisk
with no need of a Group NBO

Local Committees

RepRisk Function and Specialist Functions
Head of RepRisk and Specialist Functions

1,270 cases

Cases with Low or Medium RepRisk or when
explicitly requested by the police(e.g. client classification in A, B, C classes for Coal)

Proponent Business
Cases in line with the provisions andallowed by the policy (no deviations)
2nd level Controls performed by RepRisk Function

Relationship Deals
Specialist Functions: ESG, Financial Crime, Sanctions, Anti-money Laundering, Media and Communication, Legal

2. Including both decisions for UC S.p.A. and NBO for other Legal Entities.
3. Including both decisions for UC S.p.A. and NBO for other Legal Entities.

UniCredit 2023 Integrated Report

177

Risk Management

Operational Risk
For all Legal Entities, the Group carries out an annual
assessment aimed at identifying critical locations where
unavailability could harm business continuity (e.g. data
centres, headquarters, operational centres).

In 2023, 103 buildings were selected. Each location isclassified according to current risks from extreme adverse
climate conditions (such as floods and wildfires) that
could affect it.

Scenario analysis
High

Medium-high

10 buildings
BC Backup building assessment

Medium-low-

Low

93 buildings
Regarding the 10 buildings potentially exposed
to high or medium-high risk, in 2023, the related
business continuity plan was assessed to checkthe effectiveness of protection in cases of adverse
climate conditions.

2.11 Human Rights initiatives in 2023
We strengthened our support for human rights in three
key ways:– Engaging and supporting stakeholders through participation
in international working groups and forums

Wherever the business continuity plan highlighted
the inadequacy of the backup building (e.g. exposedto the same risk as the primary location), a new
backup location was defined. For one building theacknowledgment of the risk has been raised to theManagement Board of the Legal Entity in line with
Business Continuity procedures, considering that
additional mitigants were not identified.
Moreover, in 2023, exposure to the perceived risk in a
scenario of +4°C in 2030 has been considered. In thiscase, eight additional buildings have been identified
currently not exposed to such risks but potentially
exposed to them considering this additional scenario.
Dedicated KPIs have been put in place in collaboration
with Group Real Estate to monitor future climate
events comparing them with the location’s history,
with the aim to put in place immediate actions in caseof climate risk exposure worsening.
To assess the resilience of third-party service providers
with regard to climate change, the Third Party
Assessment (performed during onboarding of new
suppliers, then yearly) has been enhanced by also
considering the business continuity plans adopted to
manage potential adverse climate events.

6,100+ hours

During the year, almost 7,000 people
received training on human rights,
through over 6,100 hours of training– Compliance with section 54 of the UK’s Modern Slavery
Act 2015– Launching a project to enhance our vendor qualification
process, leveraging ESG assessments performed by an
external provider and evaluating labour and human rights
risks among other sustainability risks in our supply chain

178

UniCredit 2023 Integrated ReportOverview
Our Context

Digital Risk
Management

During 2023, we continued to develop a
number of initiatives to reinforce the Group’s
Digital (ICT and Cyber) defences. These included:

Our Strategy

How we managed Digital Risk in 2023

Digital Risk scenario analysis:
Enforcement of the Digital
Risk scenarios to increase theireffectiveness, and coverage,
deepening 2022 analysis andleveraging on both threat
landscape and audit outcomes

Digital Risk dashboard:
Digital Risk dashboards are fed bya variety of 2nd level Controls (Risk
Assessment, Control monitoring) on
Group and Local Digital processes,
monthly discussed with Group
Senior Management and quarterlyshared in the Group Non-Financial
Risk Committee

Governance, Risk and Compliance

Digitaldefenceinitiatives

Our Impact

Digital Risk appetite:
The mission of the Function (DigitalRisk) responsible for ICT and Cyber
Risks evolved to be responsible for thegroup-wide evaluation, monitoringand supervision of digital risks toenable UniCredit as a safe, secure andresilient digital bankAnnexesThird Party Cybersecurity
Risk: Enforcement of the Cyber
Risk control framework on third
parties with the aim to assure its
implementation in all Legal Entities
and identify possible fine tunings

Supplement

Risk and Control
Self-assessment:
In 2023, a process has been
enforced stating the Digital Riskover the tolerance level need to beapproved by the Executive Officer
together with remediations’ actions

UniCredit 2023 Integrated Report179Compliance

Compliance
Our approach
At UniCredit Group, compliance with all
relevant legislation is essential to our
reputation as a business, the confidenceof our customers and our ability to deliveron our commitment to sustainability.
Furthermore, compliance also plays aleading role in promoting a culture whichreflects the Group’s fundamental values
and principles.
We manage compliance through dedicated functions in eachrelevant geography, coordinated at Group level, under the
responsibility of the Group Compliance Officer. The Compliancefunction is embedded in the second-level internal control
system. Its aim is to prevent and manage the risk of regulatory
non-compliance and conflicts of interest.
By competence area, the function monitors alignment to ESG
regulatory requirements, provides advice, carries out controls
through a risk-based approach, and integrates ESG topics into
existing frameworks and processes.

Our compliance teams support their colleagues in otherfunctions regarding regulatory requirements and work alongsidethem to monitor and supervise the risks of non-compliance.
This is especially important for new products, processes,
business initiatives, commercial campaigns, marketing
materials and incentive systems. The Compliance function
also sets rules of conduct, guidelines, standards and the Codeof Conduct.

Managing the risk of non-complianceGroup Compliance monitors the management of noncompliance risk through a risk-based approach. Its activities
and priorities are focused on the areas, standards, processes,
and procedures most at risk of non-compliance, based on theongoing assessment of Group activities and the regulatory
framework and corporate environment.
Consistent with this approach, our monitoring of the risk of
non-compliance covers the most relevant regulations aroundall corporate activities (except for those laws and regulations
falling within the scope of Risk Management).

Our approach to regulations around all corporate activities
Focus on Customers

Rules and Regulations– Transparency to customers

Advisory to Bank Functions
on Regulatory Requirements– Consumer safeguard regulation– New products– Risks concerning banking andfinancial activities– Processes– Set guidelines and standards,
for perimeter of competence– Business initiatives– Commercial campaigns– Set rules of conducts– Conflicts of interests
management– Marketing materials

180

UniCredit 2023 Integrated ReportOverview
Our Context

Our progress so far

Our Strategy

During the year, our compliance focused on four key activities.

>> Internal controls and framework

Updating relevant internal controls and written
framework (Global Policy/Risk Framework on
Benchmark Regulation (BMR) and ProductGovernance)

To support the Social pillar (S) of ESG, we updated ourwhistleblowing policies (Global Policy 511 and IR 741).
The changes enabled us to implement the regulatory changes
introduced by the Directive (EU) 2019/1937, adopted in Italy
by Legislative Decree 24/2023, which extended whistleblower
protections to encourage people to report any violations.

Governance, Risk and ComplianceNew requirements related to sustainability,
including providing support on the business activities
impacted by new regulations, with a focus on
greenwashing risks (monitoring laws and updatinginternal frameworks in relevant areas)

In addition, we made key improvements in the Governance(G) pillar of ESG by implementing a new Global Vendor
Registry (GVR) tool. This has enabled us to create a uniqueanti-corruption registry of third parties engaged by the Groupand allowed us to automate anti-corruption due diligencewithin the decentralised process.

Our Impact>>

Greenwashing risks>> Advising the business

Advising the business on products, manufacturing,and marketing materials

Annexesand training>> CultureWith a focus on ESG

Mandatory training (all Group employees):
we developed new ESG training which provided
an overview of the legislative framework aroundsustainable investment. This included a deep dive on
taxonomy regulation and SFDR (Sustainable Finance
Disclosure Regulation), as well as IDD (Insurance
Distribution Directive) and MiFID II (Markets in
Financial Instruments Directive) Regulations. The
training emphasised the main ESG risks, with a focus
on greenwashing (completion rate 98.6%)*
Training for compliance population: we
implemented MiFID II Investor protection training
for our compliance teams. This covered all relevant
aspects of ESG and how we can support investment
advice, including how investment services impact
the distribution of ESG products*ESG training is not included in the number ofCompliance training hours

UniCredit 2023 Integrated Report

Supplement

Tone from the Top: round table with Top
Management on preventing greenwashing,notably by using a real-life example to help clients
understand potential greenwashing risks. We alsocascaded a specific communication campaign to all
Group employees

28,233hours of training group-wide
in 2023 dedicated to “ESG in
Financial Products Distribution”

30%

Increase in Compliancetraining hours

81%

Increase in Anti-Corruption
training hours

181

Annexes
A.1 GRI Content Index
A.11 Making the connection with UN Global Compact
Principles and GRI Standards Disclosures
A.12 SASB indicators index
A.13 Independent Auditor’s Report

182

UniCredit 2023 Integrated ReportOverview

Disclosure

Location And Notes

Our Strategy

GRI Standard/
Other Source

Our Context

GRI Content Index
Omission

General disclosures
GRI 2: General
2-1 Organizational details
Disclosures 2021

Our Impact

UniCredit SpA
Piazza Gae Aulenti 3 – Tower A – 20154 Milano
2023 Integrated Report: 32023 Annual Reports and Accounts
2023 Report on Corporate Governance and Ownership Structure
2-2 Entities included in the2023 Integrated Report: 2-3A
2023 Annual Reports and Accounts; Notes to the consolidated accounts –organization’s sustainability
Part A – Accounting Policies; A.1 – General, Section 3 –reportingConsolidation scope and methods.
2-3 Reporting period, frequency
2023 Integrated Report: 2-3
and contact point
The frequency of this publication is set as annual, in accordance with theprovisions of Legislative Decree 254/2016. For any information related tothis Report you can write to groupsustainability@unicredit.eu. This document
is also available on the ESG and Sustainability section of UniCredit Groupwebsite (www.unicreditgroup.eu).
2-4 Restatements of information 2023 Integrated Report: 2-3
2-5 External assurance
2023 Integrated Report: A.13-A.16
2-6 Activities, value chain and2023 Integrated Report: 24-25; 46-59;
other business relationships
107-123; 146-147; 152-155; S.69
2023 Annual Reports and Accounts
2-7 Employees
2023 Integrated Report: 35; 51; 54; S.69-S.73
The following types of employees do not apply to the Group: non-guaranteed
hours employees, workers who are not employees and whose work is
controlled by the organization.
____
2-8 Workers who are not
This type of employees does not apply to the Group.
employees
2-9 Governance structure and2023 Integrated Report: 152-159
composition
2023 Report on Corporate Governance and Ownership Structure
2-10 Nomination and selection
2023 Integrated Report: 152-159; S.50-S.52
of the highest governance body2023 Report on Corporate Governance and Ownership Structure
2-11 Chair of the highest
2023 Integrated Report: 152-159
governance body2023 Report on Corporate Governance and Ownership Structure
2-12 Role of the highest
2023 Integrated Report: 26-43; 101-106;
governance body in overseeing
152-159; 176-177; S.50-S.52; S.67-S.68
the management of impacts
2-13 Delegation of responsibility 2023 Integrated Report: 152-159; S.50-S.52
for managing impacts
2023 Report on Corporate Governance and Ownership Structure
2-14 Role of the highest
2023 Integrated Report: 2-3; 152-159;
governance body in sustainability 2023 Report on Corporate Governance and Ownership Structurereporting
2-15 Conflicts of interest
2023 Integrated Report: S.60-S.66
2023 Report on Corporate Governance and Ownership Structure
2-16 Communication of critical2023 Integrated Report: 152-159; S.50-S.52; S.65-S.66
concerns2023 Report on Corporate Governance and Ownership Structure
2-17 Collective knowledge
2023 Integrated Report: 152-159
of the highest governance body
2-18 Evaluation of the2023 Integrated Report: S.52
performance of the highest
2023 Report on Corporate Governance and Ownership Structure
governance body

Governance, Risk and Compliance

Annexes,
Supplement

A. The following legal entities have been included in the reporting perimeter: UniCredit SpA, UniCredit Factoring SpA, UniCredit Leasing SpA,
UniCredit Bank AG, UniCredit Direct Services GmbH, UniCredit Leasing GmbH, Wealthcap Kapitalverwaltungsgesellschaft mbH, UniCredit Bank
Austria AG, Card Complete Service Bank AG, Schoellerbank Aktiengesellschaft, UniCredit Services GmbH, UniCredit Bank DD, UniCredit Bank ad
Banja Luka, UniCredit Bulbank AD, UniCredit Consumer Financing EAD, UniCredit Leasing EAD, Zagrebačka Banka DD, UniCredit Leasing Croatia
doo za Leasing, UniCredit Bank Czech Republic and Slovakia as, UniCredit Leasing CZ as, UniCredit Bank Hungary Zrt, UniCredit Leasing Hungary
Zrt, UniCredit Bank SA, UniCredit Consumer Financing IFN SA, UniCredit Leasing Corporation IFN SA, UniCredit Leasing Fleet Management Srl,
AO UniCredit Bank, Ooo UniCredit Leasing, UniCredit Bank Serbia Jsc, UniCredit Leasing Slovakia as, UniCredit Banka Slovenija DD.

UniCredit 2023 Integrated Report

A.1

183

GRI Content Index

GRI Standard/
Other Source

Disclosure

Location And Notes

2-19 Remuneration policies

2023 Integrated Report: 152-159
2023 Report on Corporate Governance and Ownership Structure2024 Group Remuneration Policy and Report
2023 Integrated Report: S.52
2023 Report on Corporate Governance and Ownership Structure2024 Group Remuneration Policy and Report
The total compensation ratio of the CEO to the average Group employee
is 115x as at December 2023B. The CEO’s total compensation, the highest
within the Group, is represented in accounting/cashflow view as per Consob
tables and includes fixed and variable equity compensation at fair value.

2-20 Process to determine
remuneration
2-21 Annual total compensation
ratio

Omission

The average Group employee total compensation includes fixed and variable
compensation and has been calculated considering annual gross salary for all
employees (also for part-time employees).
In 2023 the total annual compensationC for the organization’s highest-paid
individual (the CEO) increased by c.46% vs. 2022 in accounting/cashflow view
as per Consob tables (the percentage increase is higher than the nominal
compensation increase as it reflects the very substantial share appreciationof the equity fair-value component).

2-22 Statement on sustainable
development strategy
2-23 Policy commitments
2-24 Embedding policy
commitments

2-25 Processes to remediate
negative impacts

2-26 Mechanisms for seeking
advice and raising concerns

The percentage increase in the total annual compensationC of the highestpaid individual (the CEO) was c.9.9 times the percentage increase in the total
annual compensation of the average Group employee (i.e. c.5%).
2023 Integrated Report: 4-5; 14-17
2023 Integrated Report: 22-23; 47-53;
160-177; S.53
2023 Integrated Report: 152-159; 176-177; 180; S.53
The Code of Conduct clarifies that employees are expected to behave withhonesty and integrity and to perform their duties with due skill, care anddiligence; it also ensures that they remain aware of the potential internaland external disciplinary actions, legal actions and sanctions that may
follow misconduct and unacceptable behaviour. In this respect the Internal
Audit determines, within audit engagements included in the annual risk
based audit plan, whether the Company’s risk management, control andgovernance processes, as designed and implemented by Management, areadequate and functioning properly about, among others: employees’ actions
in compliance with policies, standards, procedures and applicable laws
and regulations as well as about behaviors in line with Company’s integrity
policies and values contributing to prevent conduct and/or reputational risks.
2023 Integrated Report: 20-21; 47-55; 138-147; S.53-S.66
UniCredit encourages the stakeholders to share their views and concerns, andwork hard to respond quickly and accurately.
For example clients can submit their complaints through several channels
including email, written letter or in person at one of our branches.
Complaints are then managed locally or centrally depending on the subject
and nature of the complaint.
2023 Integrated Report: 86-97; S.61-S.62;
S.65-S.66

B. The total compensation ratio of the CEO’s to the median Group employee, excluding Austria, calculated as gross salary and variable
compensation, is 148x as at June 2023 (2023 CEO’s total compensation at December 2023, as per Consob tables, equity fair value included).
C. 2023 CEO’s total compensation as per Consob tables, equity fair value included.

184

A.2

UniCredit 2023 Integrated ReportOverview

Location And Notes

2-27 Compliance with laws andregulations

2023 Integrated Report: S.60-S.66
2023 Annual Reports and Accounts
No relevant fines were imposed in 2023 for non-compliance withenvironmental laws or regulations.
2023 Integrated Report: S.46-S.49
2023 Integrated Report: 26-43; 86-88; 102-106;
S.67-S.68
2023 Integrated Report: S.73

2-28 Membership associations
2-29 Approach to stakeholder
engagement
2-30 Collective bargaining
agreements

2023 Integrated Report: 20-21; 26-43; 160-179;
S.67-S.68
2023 Integrated Report: 26-43; S.67-S.68
2023 Integrated Report: 26-43; 89-90; 144-147;
160-179; S.67-S.68
2023 Integrated Report: Determination and distribution of Value Added; S.1

Governance, Risk and Compliance

3-1 Process to determinematerial topics
3-2 List of material topics
Economic performance
GRI 3: Material
3-3 Management of material
Topics 2021
topicsGRI 201: Economic 201-1 Direct economic value
Performance 2016 generated and distributed
201-2 Financial implications andother risks and opportunities due
to climate change
201-3 Defined benefit plan
obligations and other retirement
plans
Indirect economic impacts
GRI 3: Material
3-3 Management of material
Topics 2021
topicsGRI 203: Indirect203-1 Infrastructure investments
Economic Impacts and services supported
2016203-2 Significant indirect
economic impacts
Anti-corruption
GRI 3: Material
3-3 Management of material
Topics 2021
topicsGRI 205: Anti205-1 Operations assessed forcorruption 2016risks related to corruption
205-2 Communication andtraining about anti-corruption
policies and procedures

Our Impact

Material topics
GRI 3: Material
Topics 2021

Omission

Our Strategy

Disclosure

Our Context

GRI Standard/
Other Source

2023 Integrated Report: 67-78; 160-176; S.53-S.59;
UniCredit Group Disclosure (Pillar III) as at 31 December 2023
2023 Integrated Report: S.75
2023 Annual Reports and Accounts---- 12023 Integrated Report: 100-125

Annexes2023 Integrated Report: 100-125

Supplement

UniCredit 2023 Integrated Report

2023 Integrated Report: 19-21; 26-43; 100-125; S.67-S.68

2023 Integrated Report: 26-43; 180-181;
S.53-S.59; S.61
2023 Integrated Report: S.60-S.61
2023 Integrated Report: 181

A.3

185

GRI Content Index

GRI Standard/
Other Source

Disclosure

Anti-competitive behavior
GRI 3: Material
3-3 Management of material
Topics 2021
topicsGRI 206: Anti206-1 Legal actions for anticompetitivecompetitive behavior, anti-trust,
Behavior 2016
and monopoly practices
Tax
GRI 3: Material
3-3 Management of material
Topics 2021
topicsGRI 207: Tax 2019

Materials
GRI 3: Material
Topics 2021
GRI 301: Materials
2016
EnergyGRI 3: Material
Topics 2021
GRI 302: Energy
2016207-1 Approach to tax
207-2 Tax governance, control,
and risk management
207-3 Stakeholder engagement
and management of concerns
related to tax
207-4 Country-by-country
reportingLocation And Notes

Omission

2023 Integrated Report: 26-43; 180-181;
S.67-S.68; S.63
2023 Integrated Report: S.62-S.63
2023 Annual Reports and Accounts

2023 Integrated Report: 32; 43; S.38-S.45
2023 Annual Reports and Accounts
2022 Country by Country Reporting
2023 Integrated Report: S.38-S.45
2023 Integrated Report: S.38-S.45
2023 Integrated Report: S.38-S.45

2023 Integrated Report: S.42-S.43

3-3 Management of material
2023 Integrated Report: 26-43; 138-147; S.67-S.68; S.83-S.85
topics301-1 Materials used by weight or 2023 Integrated Report: S.84
volumeIn 2023, the total copy paper consumption amounted
to 1,739,048 kg, out of which 73% is recycled.
3-3 Management of material
2023 Integrated Report: 26-43; 138-147; S.67-S.68; S.83-S.85
topics302-1 Energy consumption within 2023 Integrated Report: S.84
the organization
In 2023, direct energy consumption amounted to roughly 231,585 GJ. The
main fuels used were natural gas (97%), followed by diesel (about 2%)
and crude oil and petroleum products (1%). Indirect energy consumption
amounted to roughly 1,270,040 GJ of which district heating accounted for
11% and electricity for about 89%. Electricity consumption included selfproduced energy from photovoltaic plants in Austria, Hungary, and Italy.

302-3 Energy intensity
302-4 Reduction of energy
consumption

Figures do not include energy consumption at leased assets
for which we do not have operational control.
2023 Integrated Report: S.84
2023 Integrated Report: 146; S.84
Reduction of energy consumption (direct and indirect, as indicated above for
GRI 302-1) vs. 2022 amounted to roughly 209,463 GJ.
2022 figures restated from those published in the 2022 Integrated Report.
For more information refer to page S.84

Water and effluents
303-3 Water withdrawal

186

A.4

2023 Integrated Report: S.84
In 2023, the total water withdrawal from public water mains or other water
services providers amounted to roughly 1,220,259 m3.

UniCredit 2023 Integrated ReportOverview

Disclosure

Emissions
GRI 3: Material
Topics 2021

2023 Integrated Report: S.83
Gases included in the calculation: CO2, CH4, N2O, HFCs;
Sources for emission factors:– DEFRA, UK Government GHG Conversion Factors
for Company Reporting (2023)D, for stationary combustion, business travel
and refrigerant gas leakages.
2023 Integrated Report: S.83
Gases included in the calculation: CO2, CH4, N2O;
Sources for emission factors:– DEFRA, UK Government GHG Conversion Factors for Company Reporting(2023)D, for district heating– IEA (2023), Emission Factors https://www.iea.org/data-and-statistics/(all rights reserved; as modified by UniCredit SpA), for electricity
consumption – Location Based method– Association of Issuing Bodies (AIB), 2022 European
Residual Mixes, V.1.0 (2023), for electricity consumption – Market Basedmethod. AIB does not report emission factors for gases other than CO2;
Scope 2 Market-based emissions are therefore expressed in tons of CO2;
however, the percentage of methane and nitrous oxide has a negligible
effect on total GHG emissions (CO2 equivalent) as inferred from the relevant
technical literature.
2023 Integrated Report: S.83-S.84
Gases included in the calculation: CO2, CH4, N2O; Sources of emission factors:– CEPI, CEPI statistics (2022), for copy paper use– DEFRA, UK Government GHG Conversion Factors for Company Reporting(2023)D, for business travel and waste disposal;
Sources of emission factors for energy consumption at leased assets notwithin operational control:– DEFRA, UK Government GHG Conversion Factors for Company Reporting(2023)D, for stationary combustion and district heating consumption– Association of Issuing Bodies (AIB), 2023 European Residual Mixes, V.1.0(2023), for electricity consumption – Market-Based method. AIB does notreport emission factors for gases other than CO2; Market-based emissions are
therefore expressed in tons of CO2; however, the percentage of methane andnitrous oxide has a negligible effect on total GHG emissions (CO2 equivalent)
as inferred from the relevant technical literature– IEA (2023), Emission Factors https://www.iea.org/data-and-statistics/ (allrights reserved; as modified by UniCredit S.p.A.) for electricity consumption
where appropriate.

Governance, Risk and Compliance305-3 Other indirect (Scope 3)
GHG emissions

2023 Integrated Report: 26-43; 138-147; S.67-S.68; S.83-S.85

Our Impact

305-2 Energy indirect (Scope 2)
GHG emissions

Omission

Our Strategy

3-3 Management of material
topicsGRI 305: Emissions 305-1 Direct (Scope 1) GHG
2016emissions

Location And Notes

Our Context

GRI Standard/
Other Source

Annexes
Supplement

D. The document contains public sector information licensed under the Open Government Licence v3.0
https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/.

UniCredit 2023 Integrated Report

A.5

187

GRI Content Index

GRI Standard/
Other Source

Disclosure

Location And Notes

Omission

305-4 GHG emissions intensity

2023 Integrated Report: S.83-S.84
In 2023, the Scope 1 emissions intensity amounted to roughly 0.37 tons ofCO2e per FTE; the Scope 2 emissions intensity (location based) amounted
to roughly 1.43 tons of CO2e per FTE; the Scope 2 emissions intensity(market-based) amounted to roughly 0.30 tons of CO2e per FTE; the Scope 3
emissions intensity amounted to roughly 0.42 tons of CO2e per FTE.
305-5 Reduction of GHG emissions 2023 Integrated Report: 138; S.83-S.84
305-6 Emissions of ozoneGHG emissions resulting from refrigerant gas leakages have been calculated
depleting substances (ODS)
and included in Scope 1 emissions.
No other significant air emissions have been identified.
305-7 Nitrogen oxides (NOx),sulfur oxides (SOx), and othersignificant air emissions
Waste
GRI 306: Waste
2020

306-1 Waste generation and2023 Integrated Report: 26-43; 138-147; S.67-S.68; S.83-S.85
significant waste-related impacts
306-2 Management of significant 2023 Integrated Report: 138-147
waste-related impacts
306-3 Waste generated
2023 Integrated Report: S.84-S.85
In 2023, the total amount of waste produced was roughly 8,131,148 kg, outof which:– paper and cardboard: 3,049,730 kg (of which 0 kg of hazardous);– plastic: 115,959 kg (of which 0 kg hazardous);– glass: 18,114 kg (of which 0 kg hazardous);– toner: 37,984 kg (of which 313 kg hazardous);– electrical and electronic appliances:
68,840 kg (of which 34,720 kg hazardous);– batteries: 428 kg (of which 307 kg hazardous);– oils: 22,386 kg (of which 0 kg hazardous);– filter materials: 6,480 kg (of which 390 kg hazardous);– other waste: 4,811,226 kg (of which
100,873 kg hazardous).
306-4 Waste diverted from2023 Integrated Report: S.84-S.85
disposal
The 2023 data on waste management complies with the reporting
requirements of GRI Disclosures 306-4, articles a, b, c.
With regards to article d of the same disclosure, the differentiation between
on-site and off-site waste management is not relevant with regard to theGroup’s activities (almost entirely off-site waste management). It should
be noted that much of the waste is delivered on the basis of specific reuse
agreements (e.g., paper).
Furthermore, municipal waste is managed in accordance with local
provisions.
306-5 Waste directed to disposal 2023 Integrated Report: S.84-S.85
The 2023 data on waste management complies with the reporting
requirements of GRI Disclosures 306-5, articles a, b, c.
With regards to article d of the same disclosure, the differentiation between
on-site and off-site waste management is not relevant with regard to theGroup’s activities (almost entirely off-site waste management).

188

A.6

UniCredit 2023 Integrated ReportOverview

Disclosure

Location And Notes

Our Context

GRI Standard/
Other Source

Omission

Our Impact
Governance, Risk and Compliance
Annexes
Supplement

UniCredit 2023 Integrated Report

Our Strategy

Supplier environmental assessment
GRI 3: Material
3-3 Management of material
2023 Integrated Report: 26-43; 138-147; S.67-S.68
Topics 2021
topicsGRI 308: Supplier308-1 New suppliers that were2023 Integrated Report: 143; 147
Environmental
screened using environmental
In UniCredit, 100% of centrally selected new suppliers are screened using
Assessment 2016 criteriasocio-environmental criteria
Employment
GRI 3: Material
3-3 Management of material
2023 Integrated Report: 26-43; 86-97; S.67-S.69
Topics 2021
topicsGRI 401:
401-1 New employee hires and2023 Integrated Report: 89 ; S.70-S.71
Employment 2016 employee turnover401-2 Benefits provided to2023 Integrated Report: 51; 88
full-time employees that are notprovided to temporary or parttime employees
Labor/management relations
GRI 3: Material
3-3 Management of material
2023 Integrated Report: 26-43; 144-147; S.67-S.69
Topics 2021
topicsGRI 402: Labor/
402-1 Minimum notice periods
2023 Integrated Report: S.74
Management
regarding operational changes
Relations 2016
Occupational health and safety
GRI 3: Material
3-3 Management of material
2023 Integrated Report: 26-43; S.67-S.69
Topics 2021
topicsGRI 403:403-1 Occupational health and2023 Integrated Report: S.76-S.77
Occupationalsafety management system
Health and Safety 403-2 Hazard identification,
2023 Integrated Report: S.76-S.77
2018risk assessment, and incident
investigation
403-3 Occupational health2023 Integrated Report: S.76
services403-4 Worker participation,
2023 Integrated Report: S.76
consultation, and communication
on occupational health and safety403-5 Worker training on
2023 Integrated Report: S.76
occupational health and safety403-6 Promotion of worker health 2023 Integrated Report: S.76
403-7 Prevention and mitigation 2023 Integrated Report: S.76
of occupational health andsafety impacts directly linked bybusiness relationships
403-9 Work-related injuries
2023 Integrated Report: S.77
The following type of employees do not apply to the Group:– workers who are not employees and whose work is controlled by theorganization.

A.7

189

GRI Content Index

GRI Standard/
Other Source

Disclosure

Location And Notes

Omission

Training and education
GRI 3: Material
3-3 Management of material
2023 Integrated Report: 26-43; 86-97; 157; S.67-S.69
Topics 2021
topicsGRI 404: Training
404-1 Average hours of training
2023 Integrated Report: S.73
and Education 2016 per year per employee
404-2 Programs for upgrading
2023 Integrated Report: 89; S.76
employee skills and transition
assistance programs
404-3 Percentage of employees 2023 Integrated Report: 89
receiving regular performance andcareer development reviews
Diversity and equal opportunity
GRI 3: Material
3-3 Management of material
2023 Integrated Report: 26-43; 86-97; S.67-S.69
Topics 2021
topicsGRI 405: Diversity 405-1 Diversity of governance2023 Integrated Report: 158
and Equal
bodies and employees
Opportunity 2016 405-2 Ratio of basic salary and2023 Integrated Report: 97; S.72
remuneration of women to men
Non-discrimination
GRI 3: Material
3-3 Management of material
2023 Integrated Report: 26-43; 86-97; S.67-S.69
Topics 2021
topicsGRI 406: Non406-1 Incidents of discrimination 2023 Integrated Report:
discrimination 2016 and corrective actions taken
Our global policies allow zero tolerance against harassment, sexual
misconduct, bullying and acts of retaliation. Under these policies, in 2023 24
reports were received and investigated throughout the Group for which two
disciplinary sanctions were taken.

190

A.8

UniCredit 2023 Integrated ReportOverview

Disclosure

Local communities
GRI 3: Material
3-3 Management of material
Topics 2021
topics

UniCredit 2023 Integrated Report

2023 Integrated Report: 26-43; 138-147; S.67-S.68
2023 Integrated Report: 143; 147
In UniCredit, 100% of centrally selected new suppliers are screened using
socio-environmental criteria, including compliance with International Labor
Organization (ILO) conventions
2023 Integrated Report:
Stakeholder & Engagement (materiality analysis), 26-43; Business model,
18-19; Social & relationship capital, 102-106; S.67-S.68
2023 Integrated Report:
Social & relationship capital, 102-106; S.60 ‘Political contributions in any
tangible or intangible form are forbidden.’2023 Integrated Report: 26-43; S.60-S.66; S.67-S.68
2023 Integrated Report: S.66
In 2023 UniCredit Italy received six complaints for privacy-related issues
reported by the competent authorities. Nine cyber security incidents withdata exposure were recorded. Out of these, one was caused by cyber-attackon third party and eight by ICT error/malfunctioning or operational exposure.
ICT error/malfunctioning incidents were resolved by fixing
the ICT issues, while cyber-attack on third party incident response wasmanaged with the respective third party and impact on regulations wasmanaged according to relevant policies and laws.

Supplement

GRI 418: Customer
Privacy 2016

3-3 Management of material
topics418-1 Substantiated complaints
concerning breaches of customer
privacy and losses of customerdata

2023 Integrated Report:
Social & relationship capital, 107-108

AnnexesCustomer Privacy
GRI 3: Material
Topics 2021

415-1 Political contributions

2023 Integrated Report: S.82
S.82

Governance, Risk and Compliance

GRI 415: Public
Policy 2016

3-3 Management of material
topics2023 Integrated Report:
Stakeholder & Engagement (materiality analysis) 26-43; Business model,
Social & relationship capital, 100-123
2023 Integrated Report:
Stakeholder & Engagement, 26-27; Social & relationship capital, 100-123

Our Impact

Public policy
GRI 3: Material
Topics 2021

Omission

Our Strategy

GRI 413: Local
413-1 Operations with local
Communities 2016 community engagement, impact
assessments, and development
programs
GRI-G4 Financial
FS13 – Access points in lowServices Sector
populated or economicallyDisclosures: Local disadvantaged areas by typecommunities
FS14 – Initiatives to improveaccess to financial services for
disadvantaged people
Supplier social assessment
GRI 3: Material
3-3 Management of material
Topics 2021
topicsGRI 414: Supplier414-1 New suppliers that wereSocial Assessment screened using social criteria
2016

Location And Notes

Our Context

GRI Standard/
Other Source

A.9

191

GRI Content Index

GRI Standard/
Other Source

Product portfolio
GRI 3: Material
Topics 2021

Disclosure

Location And Notes

Omission

2023 Integrated Report:
Stakeholder & Engagement (materiality analysis), 26-43; S.67-S.68
GRI-G4 Financial
2023 Integrated Report:
Services Sector
S.82 (customer distribution); 2023 Annual Reports and Accounts
Disclosures:
FS7 – Monetary value of products 2023 Integrated Report:
Product portfolio
and/or services designed to deliver Social and relationship capital, 109-111, 122-123
a specific social benefit
FS8 – Monetary value of products 2023 Integrated Report:
and/or services designed to deliver Strategy, 49-51; Natural capital chapter, 138-147
a specific environmental benefit
Political and social changes
GRI 3: Material
3-3 Management of material
2023 Integrated Report: 24-25; 27; 30-32; 39; 101-123; S.67-S.69
Topics 2021
topicsDigitalisation and innovation
GRI 3: Material
3-3 Management of material
2023 Integrated Report: 26-43; 126-135; S.67-S.69
Topics 2021
topicsLean and transparent organisation
GRI 3: Material
3-3 Management of material
2023 Integrated Report: 18-19; 26-43; S.67-S.69
Topics 2021
topicsValue to client
GRI 3: Material
3-3 Management of material
2023 Integrated Report: 26-43; 100-123; S.67-S.69
Topics 2021
topics2023 Annual Reports and Accounts

192

A.10

3-3 Management of material
topicsFS6 – Portfolio for business lines

UniCredit 2023 Integrated ReportOverview
Our Context

Making the connection withUN Global Compact Principles
and GRI Standards Disclosures

Our Strategy
Our Impact

UniCredit submits the Integrated Report as its annual Communication on Progress (COP), publicly disclosing to stakeholders also
on progress made in implementing the Ten Principles promoted by the UN Global Compact in its core business, and in supporting
broader UN development goals.
The table included in this Report provides connections among UN Global Compact Principles and the GRI Standards Disclosures
reported by UniCredit in this Report.
Principles

GRI Standards Disclosures

Human Rights

Principle 1 – Businesses should support and respect the protection ofinternationally proclaimed human rights
Principle 2 – Business should make sure they are not complicit in human rights
abusesPrinciple 3 – Businesses should uphold the freedom of association and theeffective recognition of the right to collective bargaining

413-1; 414-1

Labour

UniCredit 2023 Integrated Report

2-27; 201-2; 301-1; 302-1; 3023; 302-4; 303-3; 305-1; 305-2;
305-3; 305-4; 305-5; 305-6;
305-7; 306-3; 306-4; 306-5;
308-1

Supplement

Anti-corruption

Principle 8 – Businesses should undertake initiatives to promote greater
environmental responsibility
Principle 9 – Businesses should encourage the development and diffusionof environmentally friendly technologies
Principle 10 – Businesses should work against corruption in all its forms,
including extortion and bribery

2-7; 2-30; 401-1; 401-2; 402-1;
404-1; 404-2; 404-3; 405-1;
405-2; 406-1

Annexes

Environment

Principle 4 – Businesses should uphold the elimination of all forms of forced
and compulsory labour
Principle 5 – Businesses should uphold the effective abolition of child labour
Principle 6 – Businesses should uphold the elimination of discriminationin respect of employment and occupation
Principle 7 – Businesses should support a precautionary approach toenvironmental challenges

Governance, Risk and Compliance

Categories

2-23; 2-26; 205-1; 205-2

A.11

193

SASB indicators index –Commercial Banks sectorA
Topic

Code

References

Data Security
FN-CB-230a.1
FN-CB-230a.2
Financial Inclusion & Capacity Building
FN-CB-240a.1
FN-CB-240a.4
FN-CB-410a.1

FN-CB-410a.2

2023 Integrated Report – GRI Content Index page 190
2023 Integrated Report – Risk Management chapter page 195; Intellectual Capital chapter page 131
2023 Integrated Report – Social and Relationship Capital chapter pages 107-123
2023 Integrated Report – Social and Relationship Capital chapter pages 108-109
Annual Reports and Accounts 2023 – Consolidated financial statements – Notes to the consolidated
accounts:(i) Part B – Balance Sheet, Assets:– Section 2 – Financial assets at fair value through profit or loss – Item 20 – Tables 2.2-2.4-2.6;– Section 3 – Financial assets at fair value through other comprehensive income – Item 30 – Table 3.2;
– Section 4 – Financial assets at amortised cost – Item 40 – Table 4.3.
(ii) Part E – Information on risks and related hedging policies:– Section 2 – Risks of the prudential consolidated perimeter – 2.1 Credit risk – Quantitative information– Table B.1
2023 Integrated Report – Our Strategy chapter page 51
2023 Integrated Report – Risk Management chapter pages 160-178

Business Ethics
FN-CB-510a.1

FN-CB-510a.2
Systemic Risk Management
FN-CB-550a.1

FN-CB-550a.2

2023 Integrated Report – Supplement Compliance chapter page S.63
Annual Reports and Accounts 2023 – Consolidated financial statements – Notes to the consolidated
accounts – Part E – Information on risks and related hedging policies – Section 2 – Risks of theprudential consolidated perimeter – 2.5 Operational risks – B. Legal risks
2023 Integrated Report – Supplement Compliance chapter pages S.65-S.66
UniCredit Group website link
https://www.unicreditgroup.eu/en/investors/financial-reporting/financial-reports.html – (G-SIBs
Disclosure)
Latest available score in bp at www.bis.org/bcbs/gsib/
Annual Reports and Accounts 2023 – Consolidated financial statements – Notes to the consolidated
accounts – Part E – Information on risks and related hedging policies – Section 2 – Risks of theprudential consolidated perimeter – 2.2 Market risk – Stress test, 2.4 Liquidity risk and 2.6 Other risks
Pillar III – Credit Risk – Counterparty risk exposure – Stress testing – https://www.unicreditgroup.eu/
en/investors/financial-reporting/pillar-3-disclosures.html
Description of new methodologies of climate risk management in TCFD report (https://www.
unicreditgroup.eu/content/dam/unicreditgroup-eu/documents/en/sustainability/sustainabilityreports/2022/UC_TCFD_TOT_2022_ENG.pdf)

A. These indicators were taken into account where applicable. The limited audit did not cover the application of the instructions provided
by the Sustainability Accounting Standards Board (SASB).

194

A.12

UniCredit 2023 Integrated ReportOverview
Our Context
Our Strategy

KPMG S.p.A.
Revisione e organizzazione contabile
Via Vittor Pisani, 25
20124 MILANO MI
Telefono +39 02 6763.1
Email it-fmauditaly@kpmg.it
PEC kpmgspa@pec.kpmg.it

Our Impact(This independent auditors’ report has been translated into English solely for the convenience ofinternational readers. Accordingly, only the original Italian version is authoritative.)

Governance, Risk and ComplianceIndependent auditors’ report on the consolidated non-financial
statement pursuant to article 3.10 of Legislative decree no. 254 of
30 December 2016 and article 5 of the Consob Regulation adopted
with Resolution no. 20267 of 18 January 2018
To the board of directors of
UniCredit S.p.A.

AnnexesPursuant to article 3.10 of Legislative decree no. 254 of 30 December 2016 (the “Decree”) and article
5.1.g) of the Consob (the Italian Commission for listed companies and the stock exchange) Regulation
adopted with Resolution no. 20267 of 18 January 2018, we have been engaged to perform a limited
assurance engagement on the 2023 consolidated non-financial statement of the UniCredit Group (the“Group”), which is included in the integrated report drawn up, also to comply with the requirements ofarticles 3 and 4 of the Decree (the “Integrated Report”), prepared in accordance with article 4 of theDecree and approved by the board of directors on 29 February 2024 (the “NFS”).

Supplement

Our procedures did not cover the information set out in the “EU taxonomy regulation” section of the
Supplement to the Integrated Report required by article 8 of Regulation (EU) 852 of 18 June 2020.

Responsibilities of the directors and board of statutory auditors (“Collegio Sindacale”)
of UniCredit S.p.A. (the “Parent”) for the NFS
The directors are responsible for the preparation of an NFS in accordance with articles 3 and 4 of theDecree and the “Global Reporting Initiative Sustainability Reporting Standards” issued by GRI - Global
Reporting Initiative (the “GRI Standards”), which they have identified as the reporting standards.
The directors are also responsible, within the terms established by the Italian law, for such internal
control as they determine is necessary to enable the preparation of an NFS that is free from material
misstatement, whether due to fraud or error.
Moreover, the directors are responsible for the identification of the content of the NFS, considering the
aspects indicated in article 3.1 of the Decree and the Group’s business and characteristics, to the extent
necessary to enable an understanding of the Group’s business, performance, results and the impacts it
generates.

KPMG S.p.A. è una società per azioni di diritto italiano e fa parte delnetwork KPMG di entità indipendenti affiliate a KPMG International
Limited, società di diritto inglese.

Ancona Bari Bergamo
Bologna Bolzano Brescia
Catania Como Firenze Genova
Lecce Milano Napoli Novara
Padova Palermo Parma Perugia
Pescara Roma Torino Treviso
Trieste Varese Verona

Società per azioni
Capitale sociale
Euro 10.415.500,00 i.v.
Registro Imprese Milano Monza Brianza Lodi
e Codice Fiscale N. 00709600159
R.E.A. Milano N. 512867
Partita IVA 00709600159
VAT number IT00709600159
Sede legale: Via Vittor Pisani, 25
20124 Milano MI ITALIA

A.13

195

Independent Auditor’s Report

UniCredit Group
Independent auditors’ report
31 December 2023

The directors’ responsibility also includes the design of an internal model for the management andorganisation of the Group’s activities, as well as, with reference to the aspects identified and disclosed in
the NFS, the Group’s policies and the identification and management of the risks generated or borne.
The Collegio Sindacale is responsible for overseeing, within the terms established by the Italian law,compliance with the Decree’s provisions.

Auditors’ independence and quality control
We are independent in compliance with the independence and all other ethical requirements of theInternational Code of Ethics for Professional Accountants (including International IndependenceStandards, the IESBA Code) issued by the International Ethics Standards Board for Accountants, which
is founded on fundamental principles of integrity, objectivity, professional competence and due care,confidentiality and professional behaviour. During the year covered by this report, our company applied
International Standard on Quality Control 1 (ISQC Italia 1) and, accordingly, maintained a system of
quality control including documented policies and procedures regarding compliance with ethicalrequirements, professional standards and applicable legal and regulatory requirements.

Auditors’ responsibility
Our responsibility is to express a conclusion, based on the procedures performed, about the complianceof the NFS with the requirements of the Decree and the GRI Standards. We carried out our work inaccordance with the criteria established by “International Standard on Assurance Engagements 3000
(revised) - Assurance Engagements other than Audits or Reviews of Historical Financial Information”(“ISAE 3000 revised”), issued by the International Auditing and Assurance Standards Board applicable tolimited assurance engagements. This standard requires that we plan and perform the engagement toobtain limited assurance about whether the NFS is free from material misstatement. A limited assurance
engagement is less in scope than a reasonable assurance engagement carried out in accordance with
ISAE 3000 revised, and consequently does not enable us to obtain assurance that we would becomeaware of all significant matters and events that might be identified in a reasonable assurance
engagement.
The procedures we performed on the NFS are based on our professional judgement and include
inquiries, primarily of the bank’s personnel responsible for the preparation of the information presented in
the NFS, documental analyses, recalculations and other evidence gathering procedures, as appropriate.
Specifically, we performed the following procedures:
1. Analysing the material aspects based on the Group’s business and characteristics disclosed in the
NFS, in order to assess the reasonableness of the identification process adopted on the basis of theprovisions of article 3 of the Decree and taking into account the reporting standards applied.
2. Analysing and assessing the identification criteria for the reporting scope, in order to check theircompliance with the Decree.
3. Comparing the financial disclosures presented in the NFS with those included in the Group’s
consolidated financial statements.

2

196

A.14

UniCredit 2023 Integrated ReportOverview
Our Context
Our Strategy

UniCredit Group
Independent auditors’ report
31 December 2023

4. Gaining an understanding of the following:-

the entity’s policies in connection with the aspects set out in article 3 of the Decree, the achieved
results and the related key performance indicators;-

the main risks generated or borne in connection with the aspects set out in article 3 of theDecree.

Governance, Risk and Compliance

the Group’s business management and organisational model, with reference to the managementof the aspects set out in article 3 of the Decree;

Our Impact-

Moreover, we checked the above against the disclosures presented in the NFS and carried out theprocedures described in point 5.a).
5. Understanding the processes underlying the generation, recording and management of thesignificant qualitative and quantitative information disclosed in the NFS.

AnnexesSpecifically, we held interviews and discussions with the management personnel of the Parent,
UniCredit S.p.A., and personnel of UniCredit Factoring S.p.A., UniCredit Leasing S.p.A., UniCredit
Bank AG, UniCredit Bank Austria AG, UniCredit Bank Czech Republic and Slovakia, A.S.,
Zagrebacka Banka D.D., UniCredit Bulbank AD, UniCredit Bank Hungary Zrt and UniCredit Bank
S.A.. We also performed selected procedures on documentation to gather information on theprocesses and procedures used to gather, combine, process and transmit non-financial data andinformation to the office that prepares the NFS.
Furthermore, with respect to significant information, considering the Group’s business andcharacteristics:
at Group and subsidiaries level:

Supplement-a) we held interviews and obtained supporting documentation to check the qualitative
information presented in the NFS and, specifically, the business model, the policies appliedand main risks for consistency with available evidence,b) we carried out analytical and limited procedures to check, on a sample basis, the correct
aggregation of data in the quantitative information;-

we held videoconferences with the management of UniCredit S.p.A., UniCredit Factoring S.p.A.,
UniCredit Leasing S.p.A., UniCredit Bank AG, UniCredit Bank Austria AG, UniCredit Bank Czech
Republic and Slovakia, A.S., Zagrebacka Banka D.D., UniCredit Bulbank AD, UniCredit Bank
Hungary Zrt and UniCredit Bank S.A., which we have selected on the basis of their business,
contribution to the key performance indicators at consolidated level and location, to obtain
documentary evidence supporting the correct application of the procedures and methods used to
calculate the indicators.

Conclusion
Based on the procedures performed, nothing has come to our attention that causes us to believe that the2023 consolidated non-financial statement of the UniCredit Group has not been prepared, in all material
respects, in accordance with the requirements of articles 3 and 4 of the Decree and the GRI Standards.

3

UniCredit 2023 Integrated Report

A.15

197

Independent Auditor’s Report

UniCredit Group
Independent auditors’ report
31 December 2023

Our conclusion does not extend to the information set out in the “EU taxonomy regulation” section of the
Supplement to the Integrated Report required by article 8 of Regulation (EU) 852 of 18 June 2020.
Milan, 11 March 2024
KPMG S.p.A.
(signed on the original)
Domenico Donato
Director of Audit

4

198

A.16

UniCredit 2023 Integrated ReportOverview

Our Context

Our Strategy

Our Impact

Governance, Risk and Compliance

Annexes
Supplement

199

A.17

UniCredit 2023 Integrated ReportSupplement
S.1 Determination and distribution of Value Added
S.2 EU Taxonomy Regulation
S.38 Information on Tax Management
S.46 Main partnerships and affiliations
S.50 GovernanceS.53 Risk Management
S.60 ComplianceS.67 Stakeholder Engagement
S.69 Human Capital
S.78 Social and Relationship Capital
S.83 Natural Capital

200

UniCredit 2023 Integrated ReportOverview

130

16,339-5,7158,105-1,375
437
859
367
457
133
133
191
563
1,139
-576
-2,061-2,031
-30
-3
0
0
601
202
33
3
18,812-2,492-2,492-6,251-6,251
-15
-15
0
0
-596
-1,005-1,079-2,518-10-1-12,000-11,571-2,680-1
0-1-11,439-7,373Annexes

140
160
170
230
250
280
320

33,919-19,571
8,247-1,595
305
2,264
-201
410
199
145
66
-502
-735
233
-663
-661
-2
-13
0
0
972
-12
11
0
23,571-2,529-2,529-6,925-6,925
-27
0
0
-666
-666
-829
-1,023Governance, Risk and Compliance

110Interest income and similar revenues
Interest expense and similar charges
Fees and commissions income
Fees and commissions expense (excluded external networks' expense)
Dividend income and similar revenues
Net gains (losses) on trading
Net gains (losses) on hedge accounting
Gains (Losses) on disposal and repurchase of:a) financial assets at amortised costb) financial assets at fair value through other comprehensive incomec) financial liabilities
Net gains (losses) on other financial assets/liabilities at fair value through profit or loss:a) financial assets/liabilities designated at fair valueb) other financial assets mandatorily at fair value
Net losses/recoveries on credit impairment relating to:a) financial assets at amortised costb) financial assets at fair value through other comprehensive income
Gains/Losses from contractual charges with no cancellations
Net premiums
Other net insurance income/expenses
Other operating expenses/income
Gains (Losses) of equity investments (gains or losses on disposal)
Gains (Losses) on disposal of investments
Profit (Loss) after tax from discontinued operations
A. TOTAL ECONOMIC VALUE GENERATEDb) other administrative expense (excluded indirect taxes and duties and donations)
ECONOMIC VALUE DISTRIBUTED TO SUPPLIERSa) staff expense (included external networks' expense)
ECONOMIC VALUE DISTRIBUTED TO EMPLOYEES AND SUPERVISED WORKERSA
Minority interests
ECONOMIC VALUE ATTRIBUTABLE TO MINORITY SHAREHOLDERS
Net profit attributable to shareholdersB
ECONOMIC VALUE DISTRIBUTED TO SHAREHOLDERSb) other administrative expense: indirect taxes and dutiesb) other administrative expense: contributions to resolution funds and deposit guarantee
Tax expense (income) related to profit or loss from continuing operations: current tax, adjustment
to current tax of prior years, reduction of current tax for the year
ECONOMIC VALUE DISTRIBUTED TO PUBLIC BODIES & INSTITUTIONSb) other administrative expense: donations
Net profit allocated to the charitable funds
ECONOMIC VALUE DISTRIBUTED TO COMMUNITY
B. TOTAL ECONOMIC VALUE DISTRIBUTED
C. TOTAL ECONOMIC VALUE RETAINED

2022
€/m

Our Impact

10
20
40
50
70
80
90
100

2023
€/m

Our Strategy

Items

Our Context

Determination anddistribution of Value Added

190

340

190
190
300

190

A. The economic value distributed to employees and supervised workers excluded expenses for financial advisors.
B. For the proposals to the Shareholders' Meeting on the distribution to shareholders please refer to the specific Board of Directors' reports
in relation.

UniCredit 2023 Integrated Report

S.1

201

Supplement

----1
190

EU Taxonomy Regulation
The following tables display the disclosure obligations under
Article 8 of the Disclosures Delegated Act supplementing the
EU Taxonomy Regulation (2020/852), which requires financial
companies to report eligibility and alignment’s key performanceindicators (KPIs), for calendar year 2023.

– For counterparties that did not report the CCM and CCA
breakdown in their mandatory non-financial disclosure, it
has been not possible to report values under the respective
columns (CCM and/or CCA). In that case, we have included
the KPIs in the sum column (‘TOTAL CCM + CCA’)

In particular, actual data provided by counterparties isnecessary to assess our Taxonomy-related KPIs, such as
eligibility and alignment, for financial and non-financial
undertakings. The collection of non-financial disclosures(NFDs) was done with the support of an external provider.
The resulting green asset ratio (GAR) – turnover based is
1.16% of total GAR assets (€551 billion) and is mainly
explained by exposures contributing to the climate change
mitigation objective. However, limited data availability has
been a constraint in this year’s disclosure, which reduced thepercentage of alignment and did not make it representativeof the overall effort toward the green transition.

– Households and local governments: for eligibility KPIs, weconsidered the entire portfolio of mortgage loans, with assets
subject to energy efficiency rules. For alignment KPIs on
the households’ portfolio, we focused on the “Acquisition”
perimeter under Delegated Regulation 2021/2139 (excluding
the “Renovation” perimeter under Delegated Regulation
2021/2139, and “Motor vehicles” due to a lack of specificinformation related to the identification of “green loans”).
For this portfolio, we identified the share of “green loans”,
applying the criteria of the aforementioned Regulation

Our calculation approach:– We have provided no disclosure related to four environmental
objectives (water and marine resources, circular economy,
pollution, and biodiversity and ecosystems), considering thatno actual information directly published by counterparties
is available– For financial corporations, alignment is not reported,
considering that financial corporations are only required toreport on eligibility– Off-balance sheet exposures: we have only included NFRD
undertakings, excluding exposures to central governments,
central banks, and supranational issuers. We have reported
on a restricted perimeter since, especially for Asset Under
Management, data availability is still low. Indeed, the Asset
Under Management perimeter only includes segregatedaccounts, collective investment funds, insurance products,
and assets under advisory. Furthermore, reporting of flow
for Assets Under Management is not available.

EU Taxonomy Regulation Tables
In the following tables representation, the columns havebeen spilt to improve legibility and improve alignment
against our accessibility criteria. To address this needs,
the header columns and rows have been repeated foreasier comprehension.

202

S.2

UniCredit 2023 Integrated ReportOverview
Our Context
Our Strategy

Annex VI – Template for the KPIs of credit institutions
Template 0. Summary of KPIs to be disclosed by credit institutions under Article 8 Taxonomy Regulation
Main KPI

Coverageover total
assets% of assets
excluded fromthe numeratorof the GAR(Article 7 (2)and (3) andSection 1.1.2.
of Annex V)% of assets
excluded
from thedenominatorof the GAR(Article 7 (1))
and Section
1.2.4 ofAnnex V)

5,862

1.16%

1.78%

69.27%

43.77%

30.73%

Total
environmentally
sustainable
activities
(€m)

KPI
Turnover
Based

KPI
Capex
Based

Coverageover total
assets% of assets
excluded fromthe numeratorof the GAR(Article 7 (2)and (3) andSection 1.1.2.
of Annex V)% of assets
excluded
from thedenominatorof the GAR(Article 7 (1))
and Section
1.2.4 ofAnnex V)

1,168

1.00%

1.81%

5.09%

NA

NA

93
342

5.59%
3.54%

14.86%
8.03%

Annexes

Summary of KPI - GAR Flow*
Summary of KPI - Trading book
Summary of KPI - Financial Guarantees
Summary of KPI - Assets Under Management
Summary of KPI - Fees and commissions income

KPI
Capex
Based

Governance, Risk and Compliance

Additional KPI

KPI
TurnoverBased

Our Impact

Green Assets Ratio (GAR) stock

Total
environmentally
sustainableassets(€m)* The KPIs are calculated based on the total gross carrying amount of new business.

Supplement

I

UniCredit 2023 Integrated Report

S.3

203

EU Taxonomy Regulation

Template 1 Assets for the calculation of GAR - Turnover based (€m)
31/12/2023
Total grosscarrying
amount(€m)

Climate Change Mitigation (CCM)
Of which towards taxonomy relevant sectors(Taxonomy-eligible)
Of which environmentally sustainable(Taxonomy-aligned)
Of which
Use ofProceeds

GAR - Covered assets in both numerator and denominator
Loans and advances, debt securities and equity
instruments not HfT eligible for GAR calculation
2 Financial undertaking
3 Credit institutions
4
Loans and advances
5
Debt securities, including UoP
6Equity instruments
7 Other Financial corporation
8 Of which investment firms
9Loans and advances
10
Debt securities, including UoP
11Equity instruments
12 Of which management companies
13
Loans and advances
14
Debt securities, including UoP
15
Equity instruments
16 Of which insurance undertakings
17
Loans and advances
18
Debt securities, including UoP
19
Equity instruments
20 Non-Financial undertakings
21
Loans and advances
22
Debt securities, including UoP
23
Equity instruments
24 Households
25
Of which loans collateralised by residential
immovable property
26
Of which building renovation loans
27
Of which motor vehicle loans
28 Local governments financing
29
Housing financing
30
Other local government financing
1

204

S.4

171,208

Of whichtransitional

Of whichenabling

99,377

5,811

3,617

1,358

417
591
170
56
364
33,52330,851
2,538
134
91,851
90,971

8,674
8,279
389
6
90,60989,728

2,491
2,332
158
2
3,317
3,317

297
290
8
0
3,317
3,317

1,358
1,300
57
0

231
649
7,999
14
7,985

231
649
94
3
91

3

3

3

3

37,83521,09813,175
7,462
462
16,737
201
0
201
422
5

UniCredit 2023 Integrated ReportOverview
Our Context

Template 1 Assets for the calculation of GAR - Turnover based (€m) (continued)
31/12/2023
Climate Change Adaptation (CCA)TOTAL (CCM + CCA)

Of which towards taxonomy relevant sectors(Taxonomy-eligible)

Of which towards taxonomy relevant sectors(Taxonomy-eligible)

Of which
Use ofProceeds

32

105,499

Of which
Of which
Use of transitional
Proceeds

Of whichenabling

6,377

3,617

1,358

3,058
2,794
262
2
3,317
3,317

297
290
8
0
3,317
3,317

1,358
1,300
57
0

3

3

3

3

4,868
4,662
3,030
1,529
103
207
0
0

1
1

32
32

Supplement

231
649
94
3
91

Annexes

0

32
32

0
94
18
11
66
9,928
9,400
522
6
90,60989,728Governance, Risk and Compliance

UniCredit 2023 Integrated Report

32

Of whichenabling

Our Impact

GAR - Covered assets in both numerator and denominator
Loans and advances, debt securities and equity
instruments not HfT eligible for GAR calculation
2 Financial undertaking
3 Credit institutions
4
Loans and advances
5
Debt securities, including UoP
6Equity instruments
7 Other Financial corporation
8 Of which investment firms
9Loans and advances
10
Debt securities, including UoP
11Equity instruments
12 Of which management companies
13
Loans and advances
14
Debt securities, including UoP
15
Equity instruments
16 Of which insurance undertakings
17
Loans and advances
18
Debt securities, including UoP
19
Equity instruments
20 Non-Financial undertakings
21
Loans and advances
22
Debt securities, including UoP
23
Equity instruments
24 Households
25
Of which loans collateralised by residential
immovable property
26
Of which building renovation loans
27
Of which motor vehicle loans
28 Local governments financing
29
Housing financing
30
Other local government financing
1

Of which environmentally sustainable(Taxonomy-aligned)

Our Strategy

Of which environmentally
sustainable (Taxonomy-aligned)

S.5

205

EU Taxonomy Regulation

Template 1 Assets for the calculation of GAR - Turnover based (€m) (continued)
31/12/2023
Total grosscarrying
amount(€m)

Climate Change Mitigation (CCM)
Of which towards taxonomy relevant sectors(Taxonomy-eligible)
Of which environmentally sustainable(Taxonomy-aligned)
Of which
Use ofProceeds

31

Collateral obtained by taking possession: residential
and commercial immovable properties
32 Assets excluded from the numerator for GAR calculation(covered in the denominator)
33 Financial and Non-Financial undertaking
34 SMEs and NFCs (other than SMEs) not subject
to NFRD disclosure obligations
35 Loans and advances36
of which loans collateralised by commercial immovable
property37
of which building renovation loans
38
Debt securities
39
Equity instruments
40 Non-EU country counterparties not subject
to NFRD disclosure obligations
41
Loans and advances
42
Debt securities
43
Equity instruments
44 Derivatives
45 On demand interbank loans
46 Cash and cash-related assets
47 Other categories of assets (e.g. Goodwill,commodities etc.)
48 TOTAL GAR ASSETS
49 Assets not covered for GAR calculation
50 Central governments and supranational issuers
51 Central banks exposure
52 Trading book53 Total assets
Off-balance sheet exposures - Undertakings subject
to NFRD disclosure obligations
54 Financial guarantees
55 Assets under management56
Of which debt securities
57
Of which equity instruments

206

S.6

384

Of whichtransitional

Of whichenabling

363

19

19

551,328
244,641
119,861
67,50657,274795,969

99,740

5,830

3,636

1,358

1,658
9,650
272
9,377

199
1,036
39
997

92
342
7
335

2
2
0
2

51
249
4
245

291,099
191,765
190,119
50,235

1,395
251
5,201
5,198
2
1
1,925
6,996
3,477
76,240UniCredit 2023 Integrated ReportOverview
Our Context

Template 1 Assets for the calculation of GAR - Turnover based (€m) (continued)
31/12/2023
Climate Change Adaptation (CCA)TOTAL (CCM + CCA)

Of which towards taxonomy relevant sectors(Taxonomy-eligible)

Of which towards taxonomy relevant sectors(Taxonomy-eligible)

Of which
Use ofProceeds

31

Of which
Of which
Use of transitional
Proceeds

363

19

19

Of whichenabling

Governance, Risk and Compliance32

32

105,862

6,396

3,636

1,358

1
0

1
0

0

0

221
1,389
40
1,348

95
342
7
335

3
2
0
2

57
249
4
245

Annexes

S.7

207

Supplement

UniCredit 2023 Integrated Report

Of whichenabling

Our Impact

Collateral obtained by taking possession: residential
and commercial immovable properties
32 Assets excluded from the numerator for GAR calculation(covered in the denominator)
33 Financial and Non-Financial undertaking
34 SMEs and NFCs (other than SMEs) not subject
to NFRD disclosure obligations
35 Loans and advances36
of which loans collateralised by commercial immovable
property37
of which building renovation loans
38
Debt securities
39
Equity instruments
40 Non-EU country counterparties not subject
to NFRD disclosure obligations
41
Loans and advances
42
Debt securities
43
Equity instruments
44 Derivatives
45 On demand interbank loans
46 Cash and cash-related assets
47 Other categories of assets (e.g. Goodwill,commodities etc.)
48 TOTAL GAR ASSETS
49 Assets not covered for GAR calculation
50 Central governments and supranational issuers
51 Central banks exposure
52 Trading book53 Total assets
Off-balance sheet exposures - Undertakings subject
to NFRD disclosure obligations
54 Financial guarantees
55 Assets under management56
Of which debt securities
57
Of which equity instruments

Of which environmentally sustainable(Taxonomy-aligned)

Our Strategy

Of which environmentally
sustainable (Taxonomy-aligned)

EU Taxonomy Regulation

Template 1 Assets for the calculation of GAR – Capex based (€m)
31/12/2023
Total grosscarrying
amount(€m)

Climate Change Mitigation (CCM)
Of which towards taxonomy relevant sectors (Taxonomy-eligible)
Of which environmentally sustainable (Taxonomy-aligned)
Of which
Use ofProceeds

GAR - Covered assets in both numerator and denominator
Loans and advances, debt securities and equity
instruments not HfT eligible for GAR calculation
2 Financial undertaking
3 Credit institutions
4
Loans and advances
5
Debt securities, including UoP
6Equity instruments
7 Other Financial corporation
8 Of which investment firms
9Loans and advances
10
Debt securities, including UoP
11Equity instruments
12 Of which management companies
13
Loans and advances
14
Debt securities, including UoP
15
Equity instruments
16 Of which insurance undertakings
17
Loans and advances
18
Debt securities, including UoP
19
Equity instruments
20 Non-Financial undertakings
21
Loans and advances
22
Debt securities, including UoP
23
Equity instruments
24 Households
25
Of which loans collateralised by residential
immovable property
26
Of which building renovation loans
27
Of which motor vehicle loans
28 Local governments financing
29
Housing financing
30
Other local government financing
1

208

S.8

171,208

Of whichtransitional

Of whichenabling

102,895

8,819

3,532

2,601

417
591
170
56
364
33,52330,851
2,538
134
91,851
90,971

12,192
11,341779
73
90,60989,728

5,499
4,956
490
53
3,317
3,317

212
203
9
0
3,317
3,317

2,601
2,486
116
0

231
649
7,999
14
7,985

231
649
94
3
91

3

3

3

3

37,83521,09813,175
7,462
462
16,737
201
0
201
422
5

UniCredit 2023 Integrated ReportOverview
Our Context

Template 1 Assets for the calculation of GAR – Capex based (€m) (continued)
31/12/2023
Climate Change Adaptation (CCA)TOTAL (CCM + CCA)

Of which towards taxonomy relevant
sectors (Taxonomy-eligible)

Of which towards taxonomy relevant sectors(Taxonomy-eligible)

Of which
Use ofProceeds

880

108,084

Of which
Of which
Use of transitional
Proceeds

Of whichenabling

9,806

3,532

2,601

6,486
5,770
661
55
3,317
3,317

212
203
9
0
3,317
3,317

2,601
2,486
116
0

3

3

3

3

2,994
2,814
2,016
746
52
180

1
1

88
86

2

2

0
0

Supplement

231
649
94
3
91

Annexes

120
118

0
93
18
10
65
14,387
13,242
1,069
75
90,60989,728Governance, Risk and Compliance

UniCredit 2023 Integrated Report120

Of whichenabling

Our Impact

GAR - Covered assets in both numerator and denominator
Loans and advances, debt securities and equity
instruments not HfT eligible for GAR calculation
2 Financial undertaking
3 Credit institutions
4
Loans and advances
5
Debt securities, including UoP
6Equity instruments
7 Other Financial corporation
8 Of which investment firms
9Loans and advances
10
Debt securities, including UoP
11Equity instruments
12 Of which management companies
13
Loans and advances
14
Debt securities, including UoP
15
Equity instruments
16 Of which insurance undertakings
17
Loans and advances
18
Debt securities, including UoP
19
Equity instruments
20 Non-Financial undertakings
21
Loans and advances
22
Debt securities, including UoP
23
Equity instruments
24 Households
25
Of which loans collateralised by residential
immovable property
26
Of which building renovation loans
27
Of which motor vehicle loans
28 Local governments financing
29
Housing financing
30
Other local government financing
1

Of which environmentally sustainable(Taxonomy-aligned)

Our Strategy

Of which environmentally
sustainable (Taxonomy-aligned)

S.9

209

EU Taxonomy Regulation

Template 1 Assets for the calculation of GAR – Capex based (€m) (continued)
31/12/2023
Total grosscarrying
amount(€m)

Climate Change Mitigation (CCM)
Of which towards taxonomy relevant sectors (Taxonomy-eligible)
Of which environmentally sustainable (Taxonomy-aligned)
Of which
Use ofProceeds

31

Collateral obtained by taking possession: residential and commercial
immovable properties
32 Assets excluded from the numerator for GAR calculation(covered in the denominator)
33 Financial and Non-Financial undertaking
34 SMEs and NFCs (other than SMEs) not subject
to NFRD disclosure obligations
35 Loans and advances36
of which loans collateralised by commercial
immovable property
37
of which building renovation loans
38
Debt securities
39
Equity instruments
40 Non-EU country counterparties not subject
to NFRD disclosure obligations
41
Loans and advances
42
Debt securities
43
Equity instruments
44 Derivatives
45 On demand interbank loans
46 Cash and cash-related assets
47 Other categories of assets (e.g. Goodwill,commodities etc.)
48 TOTAL GAR ASSETS
49 Assets not covered for GAR calculation
50 Central governments and supranational issuers
51 Central banks exposure
52 Trading book53 Total assets
Off-balance sheet exposures - Undertakings
subject to NFRD disclosure obligations
54 Financial guarantees
55 Assets under management56
Of which debt securities
57
Of which equity instruments

210

S.10

384

Of whichtransitional

Of whichenabling

363

19

19

551,328
244,641
119,861
67,50657,274795,969

103,258

8,837

3,551

2,601

1,658
9,650
272
9,377

414
1,498
47
1,450

246
759
18
740

2
7
0
7

97
410
13
397

291,099
191,765
190,119
50,235

1,395
251
5,201
5,198
2
1
1,925
6,996
3,477
76,240UniCredit 2023 Integrated ReportOverview
Our Context

Template 1 Assets for the calculation of GAR – Capex based (€m) (continued)
31/12/2023
Climate Change Adaptation (CCA)TOTAL (CCM + CCA)

Of which towards taxonomy relevant
sectors (Taxonomy-eligible)

Of which towards taxonomy relevant sectors(Taxonomy-eligible)

Of which
Use ofProceeds

Of whichenabling

31

Of whichenabling

363

19

19

108,447

9,825

3,551

2,601

445
1,932
54
1,878

248
775
22
753

4
7
0
7

101
410
13
397

Governance, Risk and Compliance

120

88

1
16
3
13

1
16
3
13

0

Annexes

0
0

S.11

211

Supplement

UniCredit 2023 Integrated Report

Of which
Of which
Use of transitional
Proceeds

Our Impact

Collateral obtained by taking possession: residential
and commercial immovable properties
32 Assets excluded from the numerator for GAR calculation(covered in the denominator)
33 Financial and Non-Financial undertaking
34 SMEs and NFCs (other than SMEs) not subject
to NFRD disclosure obligations
35 Loans and advances36
of which loans collateralised by commercial
immovable property
37
of which building renovation loans
38
Debt securities
39
Equity instruments
40 Non-EU country counterparties not subject
to NFRD disclosure obligations
41
Loans and advances
42
Debt securities
43
Equity instruments
44 Derivatives
45 On demand interbank loans
46 Cash and cash-related assets
47 Other categories of assets (e.g. Goodwill,commodities etc.)
48 TOTAL GAR ASSETS
49 Assets not covered for GAR calculation
50 Central governments and supranational issuers
51 Central banks exposure
52 Trading book53 Total assets
Off-balance sheet exposures - Undertakings
subject to NFRD disclosure obligations
54 Financial guarantees
55 Assets under management56
Of which debt securities
57
Of which equity instruments

Of which environmentally sustainable(Taxonomy-aligned)

Our Strategy

Of which environmentally
sustainable (Taxonomy-aligned)

EU Taxonomy Regulation

Template 2 GAR sector information – Turnover based (€m)
31/12/2023
Breakdown by sector – NACE
4 digits level (code and label)

Climate Change Mitigation (CCM)

Climate Change Adaptation (CCA)TOTAL (CCM + CCA)*

Non-Financial corporates(Subject to NFRD)

Non-Financial corporates(Subject to NFRD)

Non-Financial corporates(Subject to NFRD)

Gross carrying amount (€m)

Gross carrying amount (€m)

Gross carrying amount (€m)

Of whichenvironmentally
sustainable (CCM)

A2.10

Silviculture and other forestry activities

00

Of whichenvironmentally
sustainable (CCA)00

Of whichenvironmentally
sustainable(CCM + CCA)

00

C16.10 Sawmilling and planing of wood

0

0

0

0

0

0

C20.11 Manufacture of industrial gases

0

0

0

0

0

0

C20.14 Manufacture of other organic
basic chemicals

8

0

0

0

8

0

C20.15 Manufacture of fertilisers andnitrogen compounds

0

0

0

0

0

0

C20.16 Manufacture of plastics inprimary forms

3

0

0

0

3

0

C22.11 Manufacture of rubber tyres
and tubes; retreading andrebuilding of rubber tyres

1

0

0

0

1

0

C22.19 Manufacture of other rubber products

0

0

0

0

0

0

C22.21 Manufacture of plastic plates,
sheets, tubes and profiles

0

0

0

0

0

0

C22.23 Manufacture of builders wareof plastic

0

0

0

0

0

0

C22.29 Manufacture of other plastic products

6

5

7

7

7

7

C23.20 Manufacture of refractory products

0

0

0

0

0

0

C23.31 Manufacture of ceramic tiles
and flags

0

0

0

0

0

0

C23.32 Manufacture of bricks, tiles andconstruction products, in baked clay

0

0

0

0

0

0

C23.51 Manufacture of cement

94

6

0

0

94

6

C23.61 Manufacture of concrete products
for construction purposes

0

0

0

0

0

0

C23.63 Manufacture of ready-mixed concrete

0

0

0

0

0

0

C23.69 Manufacture of other articles
of concrete, plaster and cement

0

0

0

0

0

0

C23.70 Cutting, shaping and finishingof stone

0

0

0

0

0

0

C23.99 Manufacture of other non-metallic
mineral products n.e.c.

4

1

0

0

4

1

C24.10 Manufacture of basic ironand steel and of ferro-alloys

64

29

0

0

64

29

C24.20 Manufacture of tubes, pipes, hollow
profiles and related fittings, of steel

5

1

0

0

5

1

C24.42 Aluminium production

29

0

0

0

29

0

* The sum of the values in this column is not comparable with the total of the NFC disclosed in Template 1 Assets for the calculationof GAR. This is because the latter includes not only the sum of CCM and CCA, but also the KPIs for the counterparties that have notprovided a distinction between CCM and CCA in their disclosure.

212

S.12

UniCredit 2023 Integrated ReportOverview
Our Context

Template 2 GAR sector information – Turnover based (€m) (continued)
31/12/2023
Breakdown by sector – NACE
4 digits level (code and label)

Climate Change Adaptation (CCA)TOTAL (CCM + CCA)*

Non-Financial corporates(Subject to NFRD)

Non-Financial corporates(Subject to NFRD)

Non-Financial corporates(Subject to NFRD)

Gross carrying amount (€m)

Gross carrying amount (€m)

Gross carrying amount (€m)

Of whichenvironmentally
sustainable (CCM)

Of whichenvironmentally
sustainable (CCA)

Our Strategy

Climate Change Mitigation (CCM)

Of whichenvironmentally
sustainable(CCM + CCA)

0

0

0

3

0

C25.12 Manufacture of doors andwindows of metal

12

0

0

0

12

0

C25.50 Forging, pressing, stamping and rollforming of metal; powder metallurgy

7

3

0

0

7

3

C25.61 Treatment and coating of metals

0

0

0

0

0

0

C25.62 Machining

1

0

0

0

1

0

C25.71 Manufacture of cutlery

0

0

0

0

0

0

C25.93 Manufacture of wire products,
chain and springs

0

0

0

0

0

0

C25.99 Manufacture of other fabricatedmetal products n.e.c.

0

0

0

0

0

0

C26.11 Manufacture of electronic components

59

25

0

0

59

25

0

0

0

1

0

3

0

0

0

3

0

C26.40 Manufacture of consumer electronics

0

0

0

0

0

0

C26.51 Manufacture of instruments andappliances for measuring, testingand navigation

6

0

0

0

6

0

C27.11 Manufacture of electric motors,
generators and transformers

11

8

0

0

11

8

C27.12 Manufacture of electricity
distribution and control apparatus

0

0

0

0

0

0

C27.20 Manufacture of batteries andaccumulators

3

3

4

4

4

4

C27.32 Manufacture of other electronicand electric wires and cables

4

1

0

0

4

1

C27.40 Manufacture of electric lighting
equipment

0

0

0

0

0

0

C27.51 Manufacture of electric domestic
appliances

8

1

0

0

8

1

C27.90 Manufacture of other electricalequipment

40

24

0

0

40

24

C28.11 Manufacture of engines andturbines, except aircraft, vehicle
and cycle engines

48

7

0

0

48

7

C28.12 Manufacture of fluid power equipment

0

0

0

0

0

0

Supplement1

C26.30 Manufacture of communicationequipment

Annexes

C26.12 Manufacture of loaded electronic boards

Governance, Risk and Compliance3

Our Impact

C25.11 Manufacture of metal structuresand parts of structures* The sum of the values in this column is not comparable with the total of the NFC disclosed in Template 1 Assets for the calculationof GAR. This is because the latter includes not only the sum of CCM and CCA, but also the KPIs for the counterparties that have notprovided a distinction between CCM and CCA in their disclosure.

UniCredit 2023 Integrated Report

S.13

213

EU Taxonomy Regulation

Template 2 GAR sector information – Turnover based (€m) (continued)
31/12/2023
Breakdown by sector – NACE
4 digits level (code and label)

Climate Change Mitigation (CCM)

Climate Change Adaptation (CCA)TOTAL (CCM + CCA)*

Non-Financial corporates(Subject to NFRD)

Non-Financial corporates(Subject to NFRD)

Non-Financial corporates(Subject to NFRD)

Gross carrying amount (€m)

Gross carrying amount (€m)

Gross carrying amount (€m)

Of whichenvironmentally
sustainable (CCM)

Of whichenvironmentally
sustainable (CCA)

Of whichenvironmentally
sustainable(CCM + CCA)

C28.13 Manufacture of other pumps
and compressors

2

0

0

0

2

0

C28.14 Manufacture of other taps
and valves

5

1

0

0

5

1

C28.15 Manufacture of bearings, gears,
gearing and driving elements

2

1

0

0

2

1

C28.22 Manufacture of lifting andhandling equipment

2

2

0

0

2

2

C28.24 Manufacture of power-driven
hand tools

4

0

0

0

4

0

C28.25 Manufacture of non-domestic
cooling and ventilation equipment

21

0

0

0

21

0

C28.29 Manufacture of other general-purpose
machinery n.e.c.

0

0

0

0

0

0

C28.30 Manufacture of agriculturaland forestry machinery

0

0

0

0

0

0

C28.49 Manufacture of other machine tools

0

0

0

0

0

0

C28.92 Manufacture of machinery formining, quarrying and construction

1

0

0

0

1

0

C28.93 Manufacture of machinery for food,beverage and tobacco processing

19

3

0

0

19

3

C28.96 Manufacture of plastics andrubber machinery

0

0

0

0

0

0

C28.99 Manufacture of other special-purpose
machinery n.e.c.

49

7

0

0

49

7

C29.10 Manufacture of motor vehicles

824

85

0

0

824

85

C30.11 Building of ships and floating structures

202

26

0

0

202

26

C30.12 Building of pleasure and sporting boats

24

0

0

0

24

0

C30.20 Manufacture of railway
locomotives and rolling stock

10

8

0

0

10

8

C30.91 Manufacture of motorcycles

41

4

0

0

41

4

C33.12 Repair of machinery

0

0

0

0

0

0

C33.15 Repair and maintenance of ships
and boats

0

0

0

0

0

0

C33.17 Repair and maintenance ofother transport equipment

144

85

0

0

144

85

D35.11 Production of electricity

661

473

0

0

661

473

D35.12 Transmission of electricity

144

141

0

0

144

141

D35.13 Distribution of electricity

149

118

0

0

149

118

* The sum of the values in this column is not comparable with the total of the NFC disclosed in Template 1 Assets for the calculationof GAR. This is because the latter includes not only the sum of CCM and CCA, but also the KPIs for the counterparties that have notprovided a distinction between CCM and CCA in their disclosure.

214

S.14

UniCredit 2023 Integrated ReportOverview
Our Context

Template 2 GAR sector information – Turnover based (€m) (continued)
31/12/2023
Breakdown by sector – NACE
4 digits level (code and label)

Climate Change Adaptation (CCA)TOTAL (CCM + CCA)*

Non-Financial corporates(Subject to NFRD)

Non-Financial corporates(Subject to NFRD)

Non-Financial corporates(Subject to NFRD)

Gross carrying amount (€m)

Gross carrying amount (€m)

Gross carrying amount (€m)

Of whichenvironmentally
sustainable (CCM)

Of whichenvironmentally
sustainable (CCA)

Of whichenvironmentally
sustainable(CCM + CCA)

10

1

0

0

10

1

D35.22 Distribution of gaseous fuels
through mains

77

64

0

0

77

64

D35.30 Steam and air conditioning supply

1

1

0

0

1

1

E36.00 Water collection, treatment
and supply

48

28

0

0

48

28

0

0

0

0

0

0

E38.11 Collection of non-hazardous waste

34

1

0

0

34

1

E38.21 Treatment and disposal of
non-hazardous waste

14

6

0

0

14

6

E38.32 Recovery of sorted materials

1

1

0

0

1

1

E39.00 Remediation activities and otherwaste management services

0

0

0

0

0

0

13

0

0

23

13

1

0

0

174

1

F42.11 Construction of roads and motorways

68

29

0

0

68

29

F42.12 Construction of railways andunderground railways

37

11

0

0

37

11

F42.13 Construction of bridges and tunnels

0

0

0

0

0

0

F42.21 Construction of utility projects
for fluids

2

0

0

0

2

0

186

25

0

0

186

25

F42.91 Construction of water projects

0

0

0

0

0

0

F42.99 Construction of other civilengineering projects n.e.c.

0

0

0

0

0

0

F43.13 Test drilling and boring

1

0

0

0

1

0

F43.21 Electrical installation

1

1

0

0

1

1

F43.22 Plumbing, heat andair-conditioning installation

0

0

0

0

0

0

F43.29 Other construction installation

2

0

0

0

2

0

F43.91 Roofing activities

0

0

0

0

0

0

F43.99 Other specialised construction
activities n.e.c.

2

0

0

0

2

0

H49.10 Passenger rail transport, interurban

14

0

0

0

14

0

H49.20 Freight rail transport

190

140

0

0

190

140

Supplement

23
174

Annexes

F41.10 Development of building projects
F41.20 Construction of residential
and non-residential buildings

Governance, Risk and Compliance

E37.00 Sewerage

Our Impact

D35.21 Manufacture of gas

F42.22 Construction of utility projects forelectricity and telecommunications

Our Strategy

Climate Change Mitigation (CCM)* The sum of the values in this column is not comparable with the total of the NFC disclosed in Template 1 Assets for the calculationof GAR. This is because the latter includes not only the sum of CCM and CCA, but also the KPIs for the counterparties that have notprovided a distinction between CCM and CCA in their disclosure.

UniCredit 2023 Integrated Report

S.15

215

EU Taxonomy Regulation

Template 2 GAR sector information – Turnover based (€m) (continued)
31/12/2023
Breakdown by sector – NACE
4 digits level (code and label)

Climate Change Mitigation (CCM)

Climate Change Adaptation (CCA)TOTAL (CCM + CCA)*

Non-Financial corporates(Subject to NFRD)

Non-Financial corporates(Subject to NFRD)

Non-Financial corporates(Subject to NFRD)

Gross carrying amount (€m)

Gross carrying amount (€m)

Gross carrying amount (€m)

Of whichenvironmentally
sustainable (CCM)

Of whichenvironmentally
sustainable (CCA)

Of whichenvironmentally
sustainable(CCM + CCA)

H49.31 Urban and suburban passenger
land transport

71

57

0

0

71

57

H49.41 Freight transport by road

1

0

0

0

1

0

H49.50 Transport via pipeline

0

0

0

0

0

0

H50.10 Sea and coastal passenger
water transport

7

1

0

0

7

1

H50.20 Sea and coastal freight water transport

51

0

0

0

51

0

H52.21 Service activities incidental
to land transportation

105

57

0

0

105

57

H52.22 Service activities incidental
to water transportation

0

0

0

0

0

0

H53.10 Postal activities under
universal service obligation

33

0

0

0

33

0

H53.20 Other postal and courier activities

30

0

0

0

30

0

J61.10

31

1

0

0

31

1

J61.20 Wireless telecommunications activities

4

1

0

0

4

1

Wired telecommunications activities

J61.90

Other telecommunications activities

33

2

0

0

33

2

J62.01

Computer programming activities

2

0

0

0

2

0

J62.02Computer consultancy activities

12

6

0

0

12

6

Computer facilities management
activities

0

0

0

0

0

0

J62.09 Other information technology
and computer service activities

1

0

0

0

1

0

J63.11

Data processing, hosting
and related activities

1

0

0

0

1

0

L68.10 Buying and selling of own
real estate

181

8

0

0

181

8

J62.03* The sum of the values in this column is not comparable with the total of the NFC disclosed in Template 1 Assets for the calculationof GAR. This is because the latter includes not only the sum of CCM and CCA, but also the KPIs for the counterparties that have notprovided a distinction between CCM and CCA in their disclosure.

216

S.16

UniCredit 2023 Integrated ReportOverview
Our Context

Template 2 GAR sector information – Turnover based (€m) (continued)
31/12/2023
Breakdown by sector – NACE
4 digits level (code and label)

Climate Change Adaptation (CCA)TOTAL (CCM + CCA)*

Non-Financial corporates(Subject to NFRD)

Non-Financial corporates(Subject to NFRD)

Non-Financial corporates(Subject to NFRD)

Gross carrying amount (€m)

Gross carrying amount (€m)

Gross carrying amount (€m)

Of whichenvironmentally
sustainable (CCM)

Of whichenvironmentally
sustainable (CCA)

Our Strategy

Climate Change Mitigation (CCM)

Of whichenvironmentally
sustainable(CCM + CCA)

1,729

212

14

14

1,729

212

L68.32 Management of real estate
on a fee or contract basis

103

16

0

0

103

16

0

0

0

0

0

0

M71.12 Engineering activities andrelated technical consultancy

1

0

0

0

1

0

M71.20 Technical testing and analysis

0

0

0

0

0

0

M72.11 Research and experimental
development on biotechnology

0

0

0

0

0

0

M72.19 Other research and experimental
development on natural sciencesand engineering

5

4

0

0

5

4

N77.11 Rental and leasing of cars
and light motor vehicles

52

2

0

0

52

2

N77.39 Rental and leasing of other machinery,equipment and tangible goods n.e.c.

272

28

0

0

272

28

0

0

0

1

0

Q87.20 Residential care activities formental retardation, mental healthand substance abuse

0

0

0

0

0

Q87.30 Residential care activities
for the elderly and disabled

0

0

0

0

0

0

R90.02 Support activities to performing arts

0

0

0

0

0

0

R91.02 Museums activities

0

0

0

0

0

0

Supplement

10Annexes

Q87.10 Residential nursing care activities

Governance, Risk and ComplianceM71.11 Architectural activities

Our Impact

L68.20 Rental and operating of own
or leased real estate* The sum of the values in this column is not comparable with the total of the NFC disclosed in Template 1 Assets for the calculationof GAR. This is because the latter includes not only the sum of CCM and CCA, but also the KPIs for the counterparties that have notprovided a distinction between CCM and CCA in their disclosure.

UniCredit 2023 Integrated Report

S.17

217

EU Taxonomy Regulation

Template 3 GAR KPI stock – Turnover based% (compared to total covered assets in the denominator)
31/12/2023
Proportionof total assets
coveredClimate Change Mitigation (CCM)

Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy relevant sectors(Taxonomy-aligned)
Of which
Use ofProceeds

Of whichtransitional

Of whichenabling

GAR - Covered assets in both numerator
and denominator
Loans and advances, debt securities and equity
instruments not HfT eligible for GAR calculation

21.509Financial undertakings

4.753

Credit institutions

2.651

Loans and advances

1.655

Debt securities, including UoP

0.937

Equity instruments

0.058

Other Financial corporation

2.103

Of which investment firms

0.025

Loans and advances

0.000

Debt securities, including UoP

0.025

18.025

1.054

0.656

0.246

Equity instruments
Of which management companies
Loans and advances

0.053
0.001

Debt securities, including UoP
Equity instruments
Of which insurance undertakings

0.052
0.074

Loans and advances

0.021

Debt securities, including UoP

0.007

Equity instruments

0.046

Non-Financial undertakings

4.212

1.573

0.452

0.054

0.246

Loans and advances

3.876

1.502

0.423

0.053

0.236

Debt securities, including UoP

0.319

0.071

0.029

0.001

0.010

Equity instruments

0.017

0.001

0.000

11.54016.435

0.602

0.602

Of which loans collateralised by residential
immovable property

11.42916.275

0.602

0.602

Of which building renovation loans

0.029

0.042

Of which motor vehicle loans

0.082

0.118

1.005

0.017

0.001

0.001

House financing

0.002

0.001

Other local government financing

Households

Local governments financing

0.000

1.003

0.017

0.001

0.001

Collateral obtained by taking possession:residential and commercial immovable properties

0.048

0.066

0.003

0.003

Total GAR assets

69.26518.091

1.057

0.659

218

S.18

0.246

UniCredit 2023 Integrated ReportOverview
Our Context

Template 3 GAR KPI stock – Turnover based (continued)% (compared to total covered assets in the denominator)
31/12/2023
TOTAL (CCM + CCA)

Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-eligible)

Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-eligible)

Proportion of total covered assets
funding taxonomy relevant sectors(Taxonomy-aligned)

Proportion of total covered assets
funding taxonomy relevant sectors(Taxonomy-aligned)

Of whichenabling

Of which
Of which
Use of transitional
Proceeds

Of whichenabling

0.656

0.246

Our Impact

Of which
Use ofProceeds

Our Strategy

Climate Change Adaptation (CCA)GAR - Covered assets in both numerator
and denominator
Loans and advances, debt securities and equity
instruments not HfT eligible for GAR calculation

0.006

0.006

19.135
0.883

Credit institutions

0.846

Loans and advances

0.550

Debt securities, including UoP

0.277

Equity instruments

0.019

Other Financial corporation

0.037

Governance, Risk and Compliance

Financial undertakings

1.157

Of which investment firms
Loans and advances
Debt securities, including UoP
Equity instruments
0.000

Of which management companies

0.000

Loans and advances
Debt securities, including UoPAnnexes

0.000

Equity instruments

0.017

Of which insurance undertakings
Loans and advances

0.003

Debt securities, including UoP

0.002

Non-Financial undertakings

0.006

0.006

1.801

0.555

0.054

0.246

Loans and advances

0.006

0.006

1.705

0.507

0.053

0.236

0.095

0.047

0.001

0.010

0.001

0.000

16.435

0.602

0.602

Of which loans collateralised by residential
immovable property

16.275

0.602

0.602

Of which building renovation loans

0.042

Of which motor vehicle loans

0.118
0.001

0.001

Debt securities, including UoP
Equity instruments

0.000

Households

0.017

Local governments financing

0.000

House financing

0.001

Other local government financing

0.017

0.001

0.001

0.066

0.003

0.003

19.201

1.160

0.659

Collateral obtained by taking possession:residential and commercial immovable properties
Total GAR assets

UniCredit 2023 Integrated Report

0.006

0.006

Supplement

0.012

Equity instruments

0.246

S.19

219

EU Taxonomy Regulation

Template 3 GAR KPI stock – Capex based% (compared to total covered assets in the denominator)
31/12/2023
Proportionof total assets
coveredClimate Change Mitigation (CCM)

Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy relevant sectors(Taxonomy-aligned)
Of which
Use ofProceeds

Of whichtransitional

Of whichenabling

GAR - Covered assets in both numerator
and denominator

21.56

18.73

1.60

0.64

0.47

Loans and advances, debt securities and equity
instruments not HfT eligible for GAR calculation

21.50918.663

1.600

0.641

0.472

Financial undertakings

4.753

Credit institutions

2.651

Loans and advances

1.655

Debt securities, including UoP

0.937

Equity instruments

0.058

Other Financial corporation

2.103

Of which investment firms

0.025

Loans and advances

0.000

Debt securities, including UoP

0.025

Equity instruments
Of which management companies
Loans and advances

0.053
0.001

Debt securities, including UoP
Equity instruments
Of which insurance undertakings

0.052
0.074

Loans and advances

0.021

Debt securities, including UoP

0.007

Equity instruments

0.046

Non-Financial undertakings

4.212

2.211

0.997

0.038

0.472

Loans and advances

3.876

2.057

0.899

0.037

0.451

Debt securities, including UoP

0.319

0.141

0.089

0.002

0.021

Equity instruments

0.017

0.013

0.010

11.54016.435

0.602

0.602

Of which loans collateralised by residential
immovable property

11.42916.275

0.602

0.602

Of which building renovation loans

0.029

0.042

Of which motor vehicle loans

0.082

0.118

1.005

0.017

0.001

0.001

House financing

0.002

0.001

Other local government financing

Households

Local governments financing

0.000

1.003

0.017

0.001

0.001

Collateral obtained by taking possession:residential and commercial immovable properties

0.048

0.066

0.003

0.003

Total GAR assets

69.26518.729

1.603

0.644

220

S.20

0.472

UniCredit 2023 Integrated ReportOverview
Our Context

Template 3 GAR KPI stock – Capex based (continued)% (compared to total covered assets in the denominator)
31/12/2023
TOTAL (CCM + CCA)

Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-eligible)

Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-eligible)

Proportion of total covered assets
funding taxonomy relevant sectors(Taxonomy-aligned)

Proportion of total covered assets
funding taxonomy relevant sectors(Taxonomy-aligned)

Of whichenabling

Of which
Of which
Use of transitional
Proceeds

Of whichenabling

GAR - Covered assets in both numerator
and denominator

0.02

0.02

0.00

19.67

1.78

0.64

0.47

Loans and advances, debt securities and equity
instruments not HfT eligible for GAR calculation

0.022

0.016

0.000

19.604

1.779

0.641

0.472

0.543

Credit institutions

0.510

Loans and advances

0.366

Debt securities, including UoP

0.135

Equity instruments

0.010

Other Financial corporation

0.033

Governance, Risk and Compliance

Financial undertakings

Our Impact

Of which
Use ofProceeds

Our Strategy

Climate Change Adaptation (CCA)

Of which investment firms
Loans and advances
Debt securities, including UoP
Equity instruments
0.000

Of which management companies

0.000

Loans and advances
Debt securities, including UoPAnnexes

0.000

Equity instruments

0.017

Of which insurance undertakings
Loans and advances

0.003

Debt securities, including UoP

0.002

Non-Financial undertakings

0.022

0.016

0.000

2.609

1.176

0.038

0.472

Loans and advances

0.021

0.016

0.000

2.402

1.047

0.037

0.451

0.194

0.120

0.002

0.021

0.014

0.010

16.435

0.602

0.602

Of which loans collateralised by residential
immovable property

16.275

0.602

0.602

Of which building renovation loans

0.042

Of which motor vehicle loans

0.118
0.001

0.001

Debt securities, including UoP
Equity instruments

0.000

0.000

Households

0.017

Local governments financing

0.000

House financing

0.001

Other local government financing

0.017

0.001

0.001

0.066

0.003

0.003

19.670

1.782

0.644

Collateral obtained by taking possession:residential and commercial immovable properties
Total GAR assets

UniCredit 2023 Integrated Report

0.022

0.016

0.000

Supplement

0.012

Equity instruments

0.472

S.21

221

EU Taxonomy Regulation

Template 4 GAR KPI flow* – Turnover based% (compared to total covered assets in the denominator)
31/12/2023
Proportionof total assets
coveredClimate Change Mitigation (CCM)

Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy relevant sectors(Taxonomy-aligned)
Of which
Use ofProceeds

Of whichtransitional

Of whichenabling

0.00

0.30

0.33

GAR - Covered assets in both numerator
and denominator

5.09

5.93

0.82

Loans and advances, debt securities and equity
instruments not HfT eligible for GAR calculation

5.900

5.925

0.819

0.298

0.329

Financial undertakings

2.884

Credit institutions

1.894

Loans and advances

1.424

Debt securities, including UoP

0.412

Equity instruments

0.564

Other Financial corporation

0.995

Of which investment firms

0.133

Loans and advances
Debt securities, including UoP
Equity instruments
Of which management companies
Loans and advances

0.186
0.170

Debt securities, including UoP
Equity instruments
Of which insurance undertakings
Loans and advances

0.184
0.487
0.487

Debt securities, including UoP
Equity instruments
Non-Financial undertakings

1.389

2.326

0.539

0.177

0.329

Loans and advances

1.338

1.958

0.498

0.177

0.315

Debt securities, including UoP

0.523

0.742

0.413

0.200

0.134

Equity instruments
0.726

3.882

0.278

0.278

Of which loans collateralised by residential
immovable property

0.798

3.789

0.278

0.278

Of which building renovation loans

0.237

0.114

Of which motor vehicle loans

0.145

0.818

0.900

0.168

0.219

0.219

0.219

0.219

0.819

0.298

Households

Local governments financing
House financing

0.900

0.168

Collateral obtained by taking possession:residential and commercial immovable properties

0.576

0.244

Total GAR assets

5.897

5.927

Other local government financing

0.329* The flow calculation has been interpreted as a delta stock approach at a transaction level, between T (31/12/2023) and T-1 (31/12/2022),
identifying only new transactions originated during this period.

222

S.22

UniCredit 2023 Integrated ReportOverview
Our Context

Template 4 GAR KPI flow* – Turnover based (continued)% (compared to total covered assets in the denominator)
31/12/2023
TOTAL (CCM + CCA)

Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-eligible)

Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-eligible)

Proportion of total covered assets
funding taxonomy relevant sectors(Taxonomy-aligned)

Proportion of total covered assets
funding taxonomy relevant sectors(Taxonomy-aligned)

0.01

0.01

Loans and advances, debt securities and equity
instruments not HfT eligible for GAR calculation

0.665

0.593

Of whichenabling

0.00

0.00

Of which
Of which
Use of transitional
Proceeds

1.00
0.999

0.00

Of whichenabling

0.30

0.33

5.09

0.298

0.329

5.900

Our Impact

GAR - Covered assets in both numerator
and denominator

Of which
Use ofProceeds

Our Strategy

Climate Change Adaptation (CCA)

Governance, Risk and Compliance

2.884

Financial undertakings

1.894

Credit institutions
Loans and advances

1.424

Debt securities, including UoP

0.412

Equity instruments

0.564

Other Financial corporation

0.995

Of which investment firms

0.133

Loans and advances
Debt securities, including UoP
Equity instruments
0.186

Of which management companies

0.170

Loans and advances
Debt securities, including UoPAnnexes

0.184

Equity instruments

0.487

Of which insurance undertakings

0.487

Loans and advances
Debt securities, including UoP
0.665

0.593

0.719

0.177

0.329

1.389

Loans and advances

0.665

0.593

0.671

0.177

0.315

1.338

0.487

0.200

0.134

0.523

Debt securities, including UoP

Supplement

Equity instruments
Non-Financial undertakings

Equity instruments
Households
Of which loans collateralised by residential
immovable property

0.278

0.278

0.726

0.278

0.278

0.798
0.237

Of which building renovation loans

0.145

Of which motor vehicle loans
Local governments financing

0.219

0.219

0.900

0.219

0.219

0.900

House financing
Other local government financing

0.576

Collateral obtained by taking possession:residential and commercial immovable properties
Total GAR assets

0.665

0.593

0.999

0.298

0.329

5.897

* The flow calculation has been interpreted as a delta stock approach at a transaction level, between T (31/12/2023) and T-1 (31/12/2022),
identifying only new transactions originated during this period.

UniCredit 2023 Integrated Report

S.23

223

EU Taxonomy Regulation

Template 4 GAR KPI flow* – Capex based% (compared to total covered assets in the denominator)
31/12/2023
Proportionof total assets
coveredClimate Change Mitigation (CCM)

Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy relevant sectors(Taxonomy-aligned)
Of which
Use ofProceeds

Of whichtransitional

Of whichenabling

0.00

0.30

0.66

GAR - Covered assets in both numerator
and denominator

5.09

6.84

1.54

Loans and advances, debt securities and equity
instruments not HfT eligible for GAR calculation

5.089

6.839

1.538

0.302

0.658

Financial undertakings

2.884

Credit institutions

1.893

Loans and advances

1.424

Debt securities, including UoP

0.412

Equity instruments

0.056

Other Financial corporation

0.990

Of which investment firms

0.013

Loans and advances
Debt securities, including UoP
Equity instruments
Of which management companies
Loans and advances

0.000
0.000

Debt securities, including UoP
Equity instruments
Of which insurance undertakings
Loans and advances

0.000
0.004
0.004

Debt securities, including UoP
Equity instruments
Non-Financial undertakings

1.389

2.946

1.258

0.021

0.658

Loans and advances

1.337

2.822

1.152

0.021

0.635

Debt securities, including UoP

0.052

0.124

0.106

0.000

0.022

Equity instruments
0.726

3.882

0.278

0.278

Of which loans collateralised by residential
immovable property

0.710

3.789

0.278

0.278

Of which building renovation loans

0.002

0.011

Of which motor vehicle loans

0.015

0.082

0.090

0.011

0.002

0.002

0.002

0.002

1.538

0.302

Households

Local governments financing
House financing

0.090

0.011

Collateral obtained by taking possession:residential and commercial immovable properties

0.001

0.002

Total GAR assets

5.090

6.841

Other local government financing

0.658* The flow calculation has been interpreted as a delta stock approach at a transaction level, between T (31/12/2023) and T-1 (31/12/2022),
identifying only new transactions originated during this period.

224

S.24

UniCredit 2023 Integrated ReportOverview
Our Context

Template 4 GAR KPI flow* – Capex based (continued)% (compared to total covered assets in the denominator)
31/12/2023
TOTAL (CCM + CCA)

Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-eligible)

Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-eligible)

Proportion of total covered assets
funding taxonomy relevant sectors(Taxonomy-aligned)

Proportion of total covered assets
funding taxonomy relevant sectors(Taxonomy-aligned)

0.04

0.02

Loans and advances, debt securities and equity
instruments not HfT eligible for GAR calculation

0.037

0.017

Of whichenabling

0.00

0.00

8.94

1.81

0.000

8.936

Of which
Of which
Use of transitional
Proceeds

1.497

Credit institutions

1.466

Loans and advances

1.163

Debt securities, including UoP

0.266

Equity instruments

0.037

Other Financial corporation

0.031

0.30

0.66

1.812

0.302

0.658

Governance, Risk and Compliance

Financial undertakings

0.00

Of whichenabling

Our Impact

GAR - Covered assets in both numerator
and denominator

Of which
Use ofProceeds

Our Strategy

Climate Change Adaptation (CCA)

Of which investment firms
Loans and advances
Debt securities, including UoP
Equity instruments
0.000

Of which management companies

0.000

Loans and advances
Debt securities, including UoPAnnexes

Equity instruments
0.004

Of which insurance undertakings

0.004

Loans and advances
Debt securities, including UoP
0.037

0.017

0.000

3.547

1.532

0.021

0.658

Loans and advances

0.037

0.017

0.000

3.410

1.416

0.021

0.635

0.136

0.116

0.000

0.022

Debt securities, including UoP

Supplement

Equity instruments
Non-Financial undertakings

Equity instruments
3.882

0.278

0.278

Of which loans collateralised by residential
immovable property

3.789

0.278

0.278

Of which building renovation loans

0.011

Of which motor vehicle loans

0.082
0.011

0.002

0.002

0.011

0.002

0.002

1.812

0.302

Households

Local governments financing
House financing
Other local government financing

0.002

Collateral obtained by taking possession:residential and commercial immovable properties
Total GAR assets

0.037

0.017

0.000

8.938

0.658

* The flow calculation has been interpreted as a delta stock approach at a transaction level, between T (31/12/2023) and T-1 (31/12/2022),
identifying only new transactions originated during this period.

UniCredit 2023 Integrated Report

S.25

225

EU Taxonomy Regulation

Template 5 KPI off-balance sheet exposures stock – Turnover based% (compared to total eligible Off-Balance-Sheet assets)
31/12/2023
Climate Change Mitigation (CCM)
Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy relevant sectors(Taxonomy-aligned)
Of which
Use ofProceeds

Of whichtransitional

Of whichenabling

Financial guarantees (FinGuar KPI)

11.985

5.560

0.116

3.045

Assets under management (AuM KPI)

10.741

3.544

0.022

2.575

Climate Change Adaption (CCA)
Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy relevant sectors(Taxonomy-aligned)
Of which
Use ofProceeds

Financial guarantees (FinGuar KPI)

0.031

0.030

Assets under management (AuM KPI)

0.000

0.000

Of whichenabling

TOTAL (CCM + CCA)
Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy relevant sectors(Taxonomy-aligned)
Of which
Use ofProceeds

Of whichtransitional

Of whichenabling

Financial guarantees (FinGuar KPI)

12.016

5.590

0.116

3.045

Assets under management (AuM KPI)

10.741

3.544

0.022

2.575

226

S.26

UniCredit 2023 Integrated ReportOverview
Our Context

Template 5 KPI off-balance sheet exposures stock – Capex based% (compared to total eligible Off-Balance-Sheet assets)
31/12/2023
Climate Change Mitigation (CCM)

Our Strategy

Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy relevant sectors(Taxonomy-aligned)
Of which
Use ofProceeds

Of whichtransitional

Of whichenabling

24.96

14.82

0.13

5.84

Assets under management (AuM KPI)

15.52

7.86

0.08

4.25

Our Impact

Financial guarantees (FinGuar KPI)

Climate Change Adaption (CCA)
Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible)

Of which
Use ofProceeds

Financial guarantees (FinGuar KPI)

0.03

0.03

Assets under management (AuM KPI)

0.17

0.17

Governance, Risk and Compliance

Proportion of total covered assets funding taxonomy relevant sectors(Taxonomy-aligned)
Of whichenabling

0.00

TOTAL (CCM + CCA)
Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy relevant sectors(Taxonomy-aligned)
Of which
Use ofProceeds

Of whichtransitional/
adaptation

Of whichenabling

25.00

14.86

0.13

5.84

Assets under management (AuM KPI)

15.69

8.03

0.08

4.25

Annexes

Financial guarantees (FinGuar KPI)

Supplement

UniCredit 2023 Integrated Report

S.27

227

EU Taxonomy Regulation

Template 5 KPI off-balance sheet exposures flow – Turnover based% (compared to total eligible Off-Balance-Sheet assets)
31/12/2023
Climate Change Mitigation (CCM)
Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy relevant sectors(Taxonomy-aligned)
Of which
Use ofProceeds

Financial guarantees (FinGuar KPI)

13.652

7.663

Of whichtransitional

Of whichenabling

0.153

4.842

Assets under management (AuM KPI)

Climate Change Adaption (CCA)
Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy relevant sectors(Taxonomy-aligned)
Of which
Use ofProceeds

Financial guarantees (FinGuar KPI)

0.054

Of whichenabling

0.054

Assets under management (AuM KPI)TOTAL (CCM + CCA)
Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy relevant sectors(Taxonomy-aligned)
Of which
Use ofProceeds

Financial guarantees (FinGuar KPI)

15.2387.900%Of whichtransitional

Of whichenabling

0.360

5.748

Assets under management (AuM KPI)

228

S.28

UniCredit 2023 Integrated ReportOverview
Our Context

Template 5 KPI off-balance sheet exposures flow – Capex based% (compared to total eligible Off-Balance-Sheet assets)
31/12/2023
Climate Change Mitigation (CCM)

Our Strategy

Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy relevant sectors(Taxonomy-aligned)

Financial guarantees (FinGuar KPI)

28.38022.130Of which
Use ofProceeds

Of whichtransitional

Of whichenabling

0.000

0.161

6.308

Our Impact

Assets under management (AuM KPI)

Climate Change Adaption (CCA)
Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible)

Of which
Use ofProceeds

Financial guarantees (FinGuar KPI)

0.054

Governance, Risk and Compliance

Proportion of total covered assets funding taxonomy relevant sectors(Taxonomy-aligned)
Of whichenabling

0.054

Assets under management (AuM KPI)TOTAL (CCM + CCA)
Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy relevant sectors(Taxonomy-aligned)
Of which
Use ofProceeds

30.19822.439Of whichenabling

0.385

6.899

Annexes

Financial guarantees (FinGuar KPI)Of whichtransitional/
adaptation

Assets under management (AuM KPI)

Supplement

UniCredit 2023 Integrated Report

S.29

229

EU Taxonomy Regulation

Additional disclosure on Nuclear and Gas related activities
The following tables disclose the eligibility, non-eligibility, and alignment of nuclear energy and fossil gas related activities in accordance with
Article 8(6), (7) and (8) of the amended Disclosures Delegated Act as of 1 January 2023. The nuclear energy and fossil gas-related activities’
KPIs have been computed by using the most recently available data and key performance indicators of our counterparties. Data availability for thisyear’s disclosure resulted to be very low. Moreover, data only refers to NFRD undertakings with mandatory disclosure. Considering limited data
availability as well as qualitative and quantitative gaps affecting Nuclear and Gas templates, this year’s disclosure might not provide a complete
and precise representation.

Template 1 Nuclear and fossil gas related activities
Nuclear energy related activities

1 4.262 4.273 4.28

YES/NO

Funds or has exposures to research, development, demonstration and deployment of innovative electricity generation
facilities that produce energy from nuclear processes with minimal waste from the fuel cycle
Funds or has exposures to construction and safe operation of new nuclear installations to produce electricity or process
heat, including for the purposes of district heating or industrial processes such as hydrogen production, as well as theirsafety upgrades, using best available technologies
Funds or has exposures to safe operation of existing nuclear installations that produce electricity or process heat,including for the purposes of district heating or industrial processes such as hydrogen production from nuclear energy, as
well as their safety upgrades
Fossil gas related activities

4 4.295 4.306 4.31

230

S.30

NO
NO

YES

YES/NO

Funds or has exposures to construction or operation of electricity generation facilities that produce electricity using fossil
gaseous fuels
Funds or has exposures to construction, refurbishment, and operation of combined heat/cool and power generation
facilities using fossil gaseous fuels
Funds or has exposures to construction, refurbishment and operation of heat generation facilities that produce heat/coolusing fossil gaseous fuels

YES
YES
YES

UniCredit 2023 Integrated ReportOverview
Our Context

Template 2 Taxonomy-aligned economic activities (denominator) – Turnover based (€/000)
Economic activities

5

7

8

3,619

3,619

Climate Change Adaptation (CCA)
Amount(€/000)Percentage(%)

TOTAL (CCM + CCA)
Amount(€/000)Percentage
(%)

0.001

3,619

0.001

0.001

3,619

0.001

Governance, Risk and Compliance

6Percentage(%)

Our Impact

4

Amount and proportion of taxonomy-aligned
economic activity referred to in Section 4.28
of Annexes I and II to Delegated Regulation
2021/2139 in the denominator of theapplicable KPIAmount and proportion of taxonomy-aligned
economic activity referred to in Section 4.29
of Annexes I and II to Delegated Regulation
2021/2139 in the denominator of theapplicable KPIAmount and proportion of taxonomy-aligned
economic activity referred to in Section 4.30
of Annexes I and II to Delegated Regulation
2021/2139 in the denominator of theapplicable KPIAmount and proportion of taxonomy-aligned
economic activity referred to in Section 4.31
of Annexes I and II to Delegated Regulation
2021/2139 in the denominator of theapplicable KPIAmount and proportion of other taxonomyaligned economic activities not referred to inrows 1 to 6 above in the denominator of theapplicable KPI
Total applicable KPI*

Amount(€/000)Our Strategy

3

Climate Change Mitigation (CCM)

Annexes* The total applicable KPI considered for the denominator is the Total GAR Assets.

Supplement

UniCredit 2023 Integrated Report

S.31

231

EU Taxonomy Regulation

Template 2 Taxonomy-aligned economic activities (denominator) – Capex based (€/000)
Economic activities

3

4

5

6

7

8

Amount and proportion of taxonomy-aligned
economic activity referred to in Section 4.28
of Annexes I and II to Delegated Regulation
2021/2139 in the denominator of theapplicable KPIAmount and proportion of taxonomy-aligned
economic activity referred to in Section 4.29
of Annexes I and II to Delegated Regulation
2021/2139 in the denominator of theapplicable KPIAmount and proportion of taxonomy-aligned
economic activity referred to in Section 4.30
of Annexes I and II to Delegated Regulation
2021/2139 in the denominator of theapplicable KPIAmount and proportion of taxonomy-aligned
economic activity referred to in Section 4.31
of Annexes I and II to Delegated Regulation
2021/2139 in the denominator of theapplicable KPIAmount and proportion of othertaxonomy-aligned economic activities
not referred to in rows 1 to 6 abovein the denominator of the applicable KPI
Total applicable KPI*

Climate Change Mitigation (CCM)
Amount(€/000)Percentage
(%)

851

851

Climate Change Adaptation (CCA)
Amount(€/000)Percentage(%)

TOTAL (CCM + CCA)
Amount(€/000)Percentage(%)

0.0002851

0.00020.0002851

0.0002* The total applicable KPI considered for the denominator is the Total GAR Assets.

232

S.32

UniCredit 2023 Integrated ReportOverview
Our Context

Template 3 Taxonomy-aligned economic activities (numerator) – Turnover based (€/000)
Economic activities

5

7

8

3,619

3,619

Amount(€/000)Percentage(%)

TOTAL (CCM + CCA)
Amount(€/000)Percentage
(%)

100

3,619

100

100

3,619

100

Governance, Risk and Compliance

6Percentage(%)

Our Impact

4

AnnexesAmount and proportion of taxonomy-aligned
economic activity referred to in Section 4.28
of Annexes I and II to Delegated Regulation
2021/2139 in the numerator of theapplicable KPIAmount and proportion of taxonomy-aligned
economic activity referred to in Section 4.29
of Annexes I and II to Delegated Regulation
2021/2139 in the numerator of theapplicable KPIAmount and proportion of taxonomy-aligned
economic activity referred to in Section 4.30
of Annexes I and II to Delegated Regulation
2021/2139 in the numerator of theapplicable KPIAmount and proportion of taxonomy-aligned
economic activity referred to in Section 4.31
of Annexes I and II to Delegated Regulation
2021/2139 in the numerator of theapplicable KPIAmount and proportion of othertaxonomy-aligned economic activities
not referred to in rows 1 to 6 abovein the numerator of the applicable KPI
Total amount and proportion oftaxonomy-aligned economic activities
in the numerator of the applicable KPI

Climate Change Adaptation (CCA)

Amount(€/000)Our Strategy

3

Climate Change Mitigation (CCM)

Supplement

UniCredit 2023 Integrated Report

S.33

233

EU Taxonomy Regulation

Template 3 Taxonomy-aligned economic activities (numerator) – Capex based (€/000)
Economic activities

3

4

5

6

7

8

234

Amount and proportion of taxonomy-aligned
economic activity referred to in Section 4.28
of Annexes I and II to Delegated Regulation
2021/2139 in the numerator of theapplicable KPIAmount and proportion of taxonomy-aligned
economic activity referred to in Section 4.29
of Annexes I and II to Delegated Regulation
2021/2139 in the numerator of theapplicable KPIAmount and proportion of taxonomy-aligned
economic activity referred to in Section 4.30
of Annexes I and II to Delegated Regulation
2021/2139 in the numerator of theapplicable KPIAmount and proportion of taxonomy-aligned
economic activity referred to in Section 4.31
of Annexes I and II to Delegated Regulation
2021/2139 in the numerator of theapplicable KPIAmount and proportion of othertaxonomy-aligned economic activities
not referred to in rows 1 to 6 abovein the numerator of the applicable KPI
Total amount and proportion oftaxonomy-aligned economic activities
in the numerator of the applicable KPI

S.34

Climate Change Mitigation (CCM)

Climate Change Adaptation (CCA)

Amount(€/000)Percentage
(%)

851

851

Amount(€/000)Percentage(%)

TOTAL (CCM + CCA)
Amount(€/000)Percentage
(%)

100

851

100

100

851

100

UniCredit 2023 Integrated ReportOverview
Our Context

Template 4 Taxonomy-eligible but not taxonomy-aligned economic activities – Turnover based (€/000)
Economic activities

5

7

Amount(€/000)Percentage(%)

TOTAL (CCM + CCA)*
Amount(€/000)Percentage
(%)

0.006

8,744

0.002

3,290

0.001

3,290

0.001

147

0.000

147

0.000

19,1570.003

14,7290.003

55,6980.010

26,9100.005

Annexes

8

33,104

Climate Change Adaptation (CCA)

Governance, Risk and Compliance

6Percentage(%)

Our Impact

4

Amount and proportion of taxonomy-eligible
but not taxonomy-aligned economic activity
referred to in Section 4.28 of Annexes I and
II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPIAmount and proportion of taxonomy-eligible
but not taxonomy-aligned economic activity
referred to in Section 4.29 of Annexes I and
II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPIAmount and proportion of taxonomy-eligible
but not taxonomy-aligned economic activity
referred to in Section 4.30 of Annexes I and
II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPIAmount and proportion of taxonomy-eligible
but not taxonomy-aligned economic activity
referred to in Section 4.31 of Annexes I and
II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPIAmount and proportion of othertaxonomy-eligible but not taxonomy-aligned
economic activities not referred to inrows 1 to 6 above in the denominatorof the applicable KPI
Total amount and proportion of taxonomy
eligible but not taxonomy-aligned
economic activities in the denominatorof the applicable KPIAmount(€/000)Our Strategy

3

Climate Change Mitigation (CCM)

UniCredit 2023 Integrated Report

Supplement* The Nuclear and Gas templates from non-financial corporations and the related data distribution across CCM, CCA,
and/or the sum did not facilitate our disclosure.

S.35

235

EU Taxonomy Regulation

Template 4 Taxonomy-eligible but not taxonomy-aligned economic activities – Capex based (€/000)
Economic activities

3

4

5

6

7

8

Amount and proportion of taxonomy-eligible
but not taxonomy-aligned economic activity
referred to in Section 4.28 of Annexes I and
II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPIAmount and proportion of taxonomy-eligible
but not taxonomy-aligned economic activity
referred to in Section 4.29 of Annexes I and
II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPIAmount and proportion of taxonomy-eligible
but not taxonomy-aligned economic activity
referred to in Section 4.30 of Annexes I and
II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPIAmount and proportion of taxonomy-eligible
but not taxonomy-aligned economic activity
referred to in Section 4.31 of Annexes I and
II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPIAmount and proportion of othertaxonomy-eligible but not taxonomy-aligned
economic activities not referred to inrows 1 to 6 above in the denominatorof the applicable KPI
Total amount and proportion of taxonomy
eligible but not taxonomy-aligned economic
activities in the denominator of theapplicable KPI

Climate Change Mitigation (CCM)
Amount(€/000)Percentage(%)

14,603

Climate Change Adaptation (CCA)
Amount(€/000)Percentage(%)

TOTAL (CCM + CCA)*
Amount(€/000)Percentage
(%)

0.003

5,007

0.001

2,835

0.001

2,835

0.001

173

0.000

173

0.000

44,1050.008

30,4490.006

61,7160.011

38,464

0.007* The Nuclear and Gas templates from non-financial corporations and the related data distribution across CCM, CCA,
and/or the sum did not facilitate our disclosure.

236

S.36

UniCredit 2023 Integrated ReportOverview
Our Context

Template 5 Taxonomy non-eligible economic activities (€/000)
Economic activities

Turnover

Capex
Amount(€/000)

4

6

8

801

0.0001

6,032

0.00119,385

0.00176,032

0.0011

10,1860.0018Governance, Risk and Compliance

7

Percentage(%)

Our Impact

5

Amount and proportion of economic activity referred to in row 3 of Template 1that is taxonomy-non-eligible in accordance with Section 4.28 of Annexes I and
II to Delegated Regulation 2021/2139 in the denominator of the applicable KPIAmount and proportion of economic activity referred to in row 4 of Template 1that is taxonomy-non-eligible in accordance with Section 4.29 of Annexes I and
II to Delegated Regulation 2021/2139 in the denominator of the applicable KPIAmount and proportion of economic activity referred to in row 5 of Template 1that is taxonomy-non-eligible in accordance with Section 4.30 of Annexes I and
II to Delegated Regulation 2021/2139 in the denominator of the applicable KPIAmount and proportion of economic activity referred to in row 6 of Template 1that is taxonomy-non-eligible in accordance with Section 4.31 of Annexes I and
II to Delegated Regulation 2021/2139 in the denominator of the applicable KPIAmount and proportion of other taxonomy-non-eligible economic
activities not referred to in rows 1 to 6 above in the denominator of theapplicable KPI
Total amount and proportion of taxonomy-non-eligible economic activities
in the denominator of the applicable KPIAmount(€/000)Our Strategy

3

Percentage(%)

Annexes
Supplement

UniCredit 2023 Integrated Report

S.37

237

Information on Tax Management
The UniCredit Group’s approach to taxation is
described in the Global Policies adopted internallyand made available to employees; chief among
them are the Code of Conduct and the Tax Strategy
document of the UniCredit Group (available also at
the following link: https://www.unicreditgroup.eu/en/
governance/our-governance-system.html) which
defines the guidelines and principles of UniCredit
Group for the management of tax matters andassociated risks (both financial and reputational).
Specifically, this latter document was prepared in line with
the Group’s Values, stated in the Code of Conduct, which also
reflect international best practices; it shall be read and appliedin the context of the other policies and procedures issued by
UniCredit and by the Group Companies.
The UniCredit Group is guided by the following principles inrelation to the tax management of its business activities:
i. foster a Culture of tax compliance and awareness of
relevant tax laws throughout the Group, also includingorganisational units not directly working within the tax
departments of the Group;ii. compliance with form and substance of all relevant
tax laws, regulations and practices applicable in every
jurisdiction where the Group carries out its business;iii. establishment of relations of mutual trust, cooperationand transparency with tax authorities in the various
jurisdictions where the Group operates, including throughparticipation in projects of cooperative compliance;iv. prohibition from using aggressive tax planning and fromusing tax avoidance schemes grounded on the so-called
Base Erosion and Profits Shifting (provided for by the OECD)
as well as on all regulations aimed at countering suchphenomena (e.g. regulations pertaining to so-called hybrid
entities or structures and, more generally, all the regulations
aimed at implementing EU Directives);
v. application of a tax strategy that is consistent with thegeneral rules of the Group in its approach to risk and theValues on which it is based;vi. use of professional risk management standards for all
risks associated with tax and ensuring that the procedures
applied each time to that end are appropriate.

238

S.38

Since the Group is highly sensitive to tax issues and takes anapproach intended to mitigate tax risk as much as possible,
it has long been encouraging participation in enhanced
cooperation initiatives with tax authorities where provided forby the legislation of the countries in which the Group operates.
In accordance with such principles:– in the United Kingdom, since 2010 the Group has adopted
the Code of Practice on Taxation for Banks issued by UK Tax
Authorities (HMRC) and is unconditionally committed to fullcompliance with it– in Italy, since 2016, UniCredit S.p.A. has been
voluntarily participating in the Italian Tax Co-operative
Compliance Scheme, as per articles 3-7 of Italian Legislative
Decree No.128/2015, with the Italian Tax Agency. The Bank istherefore included in the list of entities admitted to thescheme which is publishedand freely available on the Italian Tax Agency’s website(https://www.agenziaentrate.gov.it/portale/web/guest/schede/agevolazioni/regime-di-adempimento-collaborativo/
elenco-societa-ammesse-al-regime-imprese)– in Austria, the potential participation in the local “Horizontal
Monitoring” regime is under analysis– in Germany, UniCredit Bank AG obtained the certification of
its Tax Compliance Management System, in accordance with
the IDW PS 980 Standard. Said certification, issued by anindependent auditor, is not related to a cooperative tax
compliance legal regime.

Tax Governance, Risk Control
and Management
The Board of Directors of the parent entity defines UniCredit’s
tax strategy by vesting tax management powers in the Group
Chief Financial Officer and the Head of Group Tax. Each Group
company makes sure it has a specific internal tax function
or, in the case of small-sized entities, an internal manager
vested with tax management powers. During 2023, for various
Italian subsidiaries, a process of centralisation of tax services
was implemented in the parent company aimed at optimisingand ensuring full governance of tax management processes(harmonising processes of best practice levels and improving
synergies among resources).

UniCredit 2023 Integrated ReportOverview

With a view to spreading knowledge and Culture for the correct
management and mitigation of any tax risks, the tax functionof the parent company provides or organises tax training
courses for the benefit of the other functions of the Bank orGroup. In 2023, several trainings have been delivered internallyto correctly guide the internal functions of UniCredit S.p.A.
affected by regulatory changes.

Specifically, the TCF of the parent entity, UniCredit S.p.A.,
provides for:i. a clear division of roles and responsibilities between
corporate bodies and functions, with appropriate skills
and experience;ii. adequate processes to detect, measure, manage and control
tax risk, ensuring compliance with the relevant procedures at
all levels of the company;iii. specific procedures to correct any shortcomings detected
and activate the necessary corrective actions.

UniCredit 2023 Integrated Report– the Board of Directors, as well as the Internal Controls
and Risks Committee (IC&RC), the Board of Statutory
Auditors and the Supervisory Auditors for Legislative
Decree No.231/2001, are informed of and receive a reporton the status of the control system, the tax controls carriedout and relevant findings, the measures taken to correct any
shortcomings and the scheduled activities. The findings andassessments made by the governing body are then sharedwith the Italian Tax Agency– Compliance establishes the method of conducting andmonitors the second level controls performed by Tax
Compliance, in its capacity as specialist of the compliancefunction as per CL No.285/2013 of the Bank of Italy; Tax
Compliance, set up in 2014 to monitor the risk of noncompliance with tax laws applicable to the Bank, performs
second level controls which are formalised and planned aspart of a specific framework outlining the risks, operations to
be audited, outcomes of controls, level of risk, etc.

Supplement

Considering the complexity of tax legislation, to ensure theachievement of the objectives described above, various
Group companies, primarily UniCredit S.p.A., have adopted
an effective internal tax risk control system (Tax Control
Framework – TCF), included in the context of the corporate
governance system, which guarantees constant monitoring of
any tax risks that could potentially concern them.

– Internal Audit

AnnexesCommittees involving the tax functions of the main Italian andforeign subsidiaries of the Group are also periodically convened
to discuss and share information and issues relevant to theGroup and establish guidelines.

The system for assessing the effectiveness of tax compliance,
as well as the analysis of the outcomes of such assessmentand further to the analysis performed by the Revenue Agency,
is also implemented through a system of internal controls andassessments by bodies such as:

Governance, Risk and Compliance

The tax function in the various Group companies undertakes toensure that its employees receive continuous training (basic,
advanced and specialist).

In addition to this, transparency towards the Revenue Agency isreflected in formal discussions, numerous also in 2023, sharing
positions in which the Bank has intercepted risks of a tax nature
in its operations.

Our Impact

Governance is also exercised through intense reporting by
the various Legal Entities to the parent company on the most
relevant aspects of tax compliance.

An integral part of the TCF is firstly the mapping of tax risks
inherent to all company processes and which is necessarily
updated on a continuous basis by virtue of the changes both in
the Bank organisation and tax legislation. In total transparency,
this document was also shared with the Revenue Agency
to which, as usual, it was formally sent most recently inMarch 2023.

Our Strategy

Specifically, the Group exercises its tax governance by issuing
Global Policies that are directly applicable to UniCredit S.p.A.
and issued to all Group companies which transpose andimplement them in accordance with applicable local legal andregulatory requirements.

Our Context

The tax function is responsible for defining domestic,
international and supranational tax scenarios and implementing
appropriate and effective procedures to properly fulfil tax
obligations and ensure the Group is taxed correctly.

– the structure of the controls set out in the above framework,
approved by the Italian Tax Agency at the time of theadmission to the Co-operative Compliance Scheme, isconstantly reviewed and shared with the Italian Tax Agency.
Every year, the latter presents the outcomes of the audits ofthe control system and the rulings held in a final report andcompliance letter, both of which contain the Agency’s reporton the in-depth investigations conducted either at the Bank’srequest or of the Agency’s own initiative.

S.39

239

Information on Tax Management

With respect to whistleblowing on tax matters, please
note that:– as some tax crimes have been included in UniCredit S.p.A.’s
Organisational and Management Model as per Italian
Legislative Decree No.231/2001, any conduct that constitutes
such crimes is to be reported to the supervisory body– the whistleblowing system guarantees a specific andconfidential channel, as well as the whistleblower’s
anonymity, for reporting violations of internal regulations,mainly those outlined in the Code of Conduct, including any
conduct that could constitute tax fraud or attempted tax
fraud or is intended to facilitate tax fraud by third parties– participating in the Co-operative Compliance regime, theBank is obliged to report any crimes that could result in tax
non-compliance to the Italian Tax Agency as soon as it isformally informed about them.
Through its tax function, the Bank actively participates inmeetings hosted by trade and other associations of which it isa member and that promote initiatives intended to develop bestpractices for tax management. In 2023, the parent company
took part in a forum set up – together with the Revenue Agency– by all the Italian companies in the Co-operative Complianceregime and which meet periodically to address issues ofcommon interest and find operational solutions aimed at
improving the regime.
During the year, the Group further strengthened its compliancewith various international regulations, aiming at a timely
application of regulatory provisions and risk governance,
supported by continuous regulatory monitoring of future
developments (e.g. Pillar 2). The Bank defines an analytical andmethodological approach aimed at intercepting the relevantcases, according to the organisational complexity of the Group.
These methodological guidelines are generally transposed
into the Global Policies and Local Process Regulations to givea common direction within the Group and, in some cases, they
are also accompanied by training courses for employees toincrease awareness of these issues.

Regulations related to the automatic
exchange of information
The Group has adopted the Foreign Account Tax Compliance Act(FATCA) and the Common Reporting Standard (CRS) globally.
With specific reference to the FATCA regulations, UniCredit hascomplied with the requirements specified by Notice 2023-11
issued by the Internal Revenue Services – IRS. In particular,
the Notice required financial institutions to report reportableaccount holder by using alternative reporting codes instead of
US Tax Identification Numbers (TIN) in case the latter were noton file. The Notice also required financial institutions to attempt
to collect US TINs from account holders that had not previously
provided it to UniCredit.
Similarly, for the purposes of the CRS regulations, UniCredit hasbrought forward an annual remediation of TINs from accountholders who previously didn’t report them to the Bank.
With reference to DAC 6 (European Directive 2018/822)
regulations in force since 25 June 2018, UniCredit maintains
specific analytical activities and control systems designed todetect reportable arrangement.

Hybrid mismatch – ATAD II
With reference to the ATAD II regulation (European Directive
2017/952), the Bank is required to intercept specifictransnational transactions that have determined, startingfrom 1 January 2020, an undue double tax advantage linked tothe so-called hybrid mismatches, to cancel any identified tax
advantages, even unintentionally obtained, in the context of the
tax return.
For this purpose, the Bank defined an operating methodology
suitable for identifying and analysing the transactions
potentially capable of generating the so-called hybrid
mismatches. The results of this analysis were reported in the
UniCredit S.p.A. income tax return.

Transfer Pricing – TP
According to transfer pricing legislation, flows deriving fromintercompany transactions must be carried out at market value
in compliance with the arm’s-length principle.
In this regard, the UniCredit Group adopted a policy frameworkon transfer pricing aimed at regulating intragroup cross-bordertransactions in line with both national legislation and with theOECD Guidelines.

240

S.40

UniCredit 2023 Integrated ReportOverview

This legislation aims at ensuring that the worldwide profits ofmultinational groups are subject to tax at a rate not lower than
15% in every jurisdiction in which the groups operate.
The rules have been firstly designed by the Inclusive Frameworkof the OECD and then implemented in the European Union
through the EU Council Directive 2022/2523 of 14 December
2022. The Pillar 2 rules provide that, if in certain jurisdictions
where the UniCredit Group operates the effective tax rate
(given by the ratio between adjusted accounting results andadjusted corporate income taxes paid in that jurisdiction) falls
below 15%, then the UniCredit Group will be required to pay
an additional tax (so-called top-up tax) to reach the 15% tax
rate threshold.
For the first three years a simplified regime (Transitional Safe
Harbor – TSH) was introduced; in this way the multinationalgroups involved may avoid undergoing the complex effective
tax rate calculation as determined by the Global Anti-Base
Erosion (GloBE) rules if certain requirements are met atjurisdictional level.

Supplement– the acquisition of assets in tax haven jurisdictions

As of fiscal year 2024, the UniCredit Group will comply with theregulatory framework resulting from the adoption of the socalled Global Minimum Tax (Pillar 2).

Annexes

In order to manage the tax risk associated with operations
with the aforementioned jurisdictions, the UniCredit Group has
adopted a policy that defines rules and principles aimed atmaintaining a high assessment and knowledge of the tax risk inthe management of critical cases highlighted in the policy itself,that is:Pillar 2 – Global Minimum Tax

Governance, Risk and Compliance

The UniCredit Group attributes a major importance to theinternational measures adopted to fight the illegal tax practices
deriving from the utilisation of low-taxed jurisdictions. In thiscontext, UniCredit is committed to monitoring and mitigating
the risks deriving from the activities/transactions that are
carried out with the involvement of entities/individuals resident
in certain non-cooperative jurisdictions.

Finally, UniCredit S.p.A. monitors the evolution of international
tax legislation with the aim of countering the erosion of the tax
base and the shifting of profits from high-tax countries to lowtax countries (with an effective tax rate below 15%) with thecontinuous commitment to adhere to those principles.

Our Impact

Non-cooperative andlow-tax jurisdictions

When the aforementioned conditions materialise, thetransaction at risk is submitted to the scrutiny of the competenttax structures for their appropriate assessment through a nonbinding opinion process.

Our Strategy

In relation to transfer pricing matters, in 2022 UniCredit
S.p.A. signed an Advance Pricing Agreement with the
Italian tax authorities regarding the pricing methodologies
for intercompany financial transactions (i.e. senior loans andfinancial guarantees).

Our Context

The purpose of these policies is to ensure that UniCredit Group
Entities comply with the arm’s-length principle and are able
to properly recognise income attributable to cross-bordertransactions between associated enterprises. In this respect, theTP policies are based on the separate entity approach principle
according to which, in defining the contractual terms, the Group
Legal Entities must be considered as independent entities
operating on the market without any restrictions deriving frombelonging to the same Group. Such is also applied to foreign
branches, and therefore the term intercompany is applicable
also to transactions involving foreign branches. In light of theabove, a specific TP policy is in place in the UniCredit Group,
regulating the intercompany transactions to be carried out
according to the same conditions and terms as if the sametransactions had been carried out between unrelated parties
under comparable circumstances.

For further details, refer to the paragraph 11.8 Other
information, Notes to the consolidated accounts, Part B –Consolidated balance sheet – Assets, Section 11 – Tax assets
and tax liabilities – Item 110 (Assets) and Item 60 (Liabilities).

– the offer to the client of business solutions with the
involvement of tax haven jurisdictions (so-called active role)

UniCredit 2023 Integrated Report

S.41

241

Information on Tax Management

Controlled Foreign Companies – CFC

Country by Country Report (CbCR)

Legislative Decree 142/2018 implemented in Italy thecontent of Directive 2016/1164/EU (known as ATAD Directive)
and the related amendments regarding Controlled Foreign
Companies (CFC).

In the current economic and social environment, tax
transparency towards stakeholders regarding the company’scontribution to economic growth at national and global level isbecoming increasingly more important.

The CFC regime restated the current domestic law with
Art. 167 of the Italian Income Tax Consolidated Act (known as
TUIR) with the aim of taxing the profits made by controlledforeign companies with a privileged tax regime in the stateof residence and, at the same time, holders of certain
categories of income, without carrying out an actual effective
economic activity.

Starting from Fiscal Year (FY) 2016, the UniCredit Groupsubmits the CbCR to the Italian Revenue Agency (Agenziadelle Entrate) pursuant to Law 208/2015. The Italian Revenue
Agency, in turn, exchanges the data with other jurisdictions
with which an agreement for exchange of information is inforce. The CbCR is based on Action 13 of the BEPS project and is
aimed at reacting to aggressive tax planning and profit shifting
to low tax jurisdictions.

Consequently, an Italian company that controls, directly or
indirectly, these companies is required to consolidate theresulting taxable income, in proportion to the percentageof shareholding held, regardless of whether the profits havebeen distributed or not. In particular, the CFC rules apply to
subsidiaries that jointly meet the following conditions:a. effective taxation lower than 50% of the effective tax ratethat such companies would apply if they were resident in
Italy (effective tax rate)b. more than a third of the revenues derive from “passive
income” (e.g. dividends, royalties, interest and provisionof services and the sale and purchase of goods with low
added value)
Exception from CFC rules can be obtained in advance bysubmitting a specific ruling to the Italian tax authorities, inwhich it is demonstrated that the subsidiary (or permanentestablishment) carries out in its state of residence an effective
economic activity through the use of personnel, equipment,
assets and premises.1
For the year 2022 (last corporate tax return submitted),
UniCredit S.p.A. has taxed nine subsidiaries for transparency.
No tax was due.

The CbCR includes a set of accounting (e.g. revenues, profit/loss
before tax) and tax information (e.g. income tax paid on a cash
basis) aggregated on a jurisdictional basis. It is worth notingthat the last available CbCR data relates to all Group entities/
branches for FY 2022 as the official deadline to submit thereport is 31 December of the following FY (31 December 2023
for FY 2022).
Due to the different methodologies, the information reported in
the OECD Action 13 CbCR (tax CbCR) is different from the CRD
IV CbCR.
TTC and CbCR have a different perimeter: TTC is a limited
perimeter of Legal Entities and relates to FY 2023, while CbCR
refers to 2022 and includes all consolidated and controlledGroup Legal Entities. TTC also provides an overview of all taxes(not only corporate income taxes) paid on a cash basis by theGroup both as taxes borne and collected as tax agent.
This model is aligned with GRI 207 1-4 standard.
Below are the main rules according to which the tax CbCR
is prepared:– the figures do not consider the consolidation adjustments forthe intercompany transactions– the foreign branches data are reported in the jurisdiction inwhich the branch is located and not in the jurisdiction of thehead office– stateless entities are treated separately. In particular, they
are Legal Entities that are not considered resident in any tax
jurisdiction (e.g. partnerships) and are taxed at the level ofthe shareholder and not as a separate entity. Therefore, theamount included in the related line is also distributed in the
country in which shareholders have tax residence.

1. Pursuant to Art. 167, paragraph 5 of the TUIR. This is in line with the ATAD Directive which, in its Art. 7(2), allows for the exclusionof transparency taxation if the controlled foreign company carries out a substantial economic activity supported by personnel, equipment,
assets and premises, as evidenced by the surrounding and pertinent facts.

242

S.42

UniCredit 2023 Integrated ReportOverview
Our Context

Country-by-Country Reporting 2022
(Values in € thousands)
Tax jurisdiction

Revenues

Stated Accumulated
capitalearnings

Number of
Tangible
employees assets otherthan cash
and cashequivalents-59,587-20,198

1,790,612

2,761,753

4,366

591,918

0

-194

-222

0

0

11

69,93900

Bosnia andHerzegovina

186,163505

186,668

78,477-8,653-8,315

110,635

356,716

1,613

51,345British Virgin
Islands

0

0

0

0

0

0

0

0

0

0

Bulgaria

438,446

131,021569,466

262,588-11,303-7,495

148,945

1,341,961

4,623

181,247

Canada

0

0

0

0

0

0

0

0

0

0

Cayman Islands

13

0

14

-59

0

0

40

-128,667

00Bermuda2,848,625 -1,269,052

China

13,877

2,035

15,912-7,938764

0169,879

0

40

170

Croatia

424,734

185,293

610,028

236,576-1,608-66,151

862,116

897,8193,584

291,363

Czech Republic

613,278

371,360

984,638

380,164-31,006-78,211413,185

2,985,475

2,534

176,680

13

45,82345,83625,225-4,984-5,425

40

31

46

63

8,653,222 -3,573,258

5,079,964

885,053

101,669-535,940

3,462,044

3,509,976

9,577

2,585,414

FranceGermany
GreeceHong Kong
Hungary

163

612

774

-3,139

0

811

0

0

0

0

8,928

3,228

12,155

1,047

0

0

0

0

33

87

1,005,732

65,401

1,071,133

248,966-11,377-34,822

68,307

798,482

1,959

105,188

68,065110,055

631

-5

0

1,032

28,882001,057,406 11,127,548

3,756,443-79,052-10,769 23,267,126 24,066,611

33,5204,598,264

31

0

0

0

41,990Italy

10,070,142

Japan

1,059

Luxembourg

1,155

-95

0

0

0

0

0

-21

0

0

4,266

-2,9570

0111,120

118,468

229,587

53,100-954-9,474

153,280

0

93

124,995

0

0

0

0

0

0

0

0

0

0

Poland1,342

39,11540,457782-1,014

23

1,602

-932

7

1,021

Romania

762,407107,216

869,623

264,308-40,899-42,876

277,369

889,951

5,416

146,183

RussianFederation

1,641,470

760,2282,401,698

481,893-158,636-178,245

540,033

2,105,157

3,821

151,915

Netherlands

219,839

34,588254,42780,057

5,557-8,476

243,812418,779

1,390

34,479Singapore

4,614

16,29520,909

1,131

0

0

0

0

48

0

Slovakia

394,978

30,970425,947

70,567-16,232-18,406

26,84534,275

1,107

93,961

Slovenia-6,588105,866

99,27945,819-3,279-6,451

20,392

141,500

548

10,816

Spain

0

7,504

7,504

640

-324

-192

0

0

17

511

Switzerland

21

3,188

3,209

193

-58

-107

0

0

7

30

United ArabEmirates

0

-40

-40

-4,158

0

0

0

0

0

0

United Kingdom

98,981

253,195

352,176

211,223-89,317-77,072

163

-140

220

2,801

United Statesof America
Stateless

165,799

129,482

295,281

11,551-5,128-13,809

66,350-57,848

139

1,090

22,084

10,29932,383-541,655-4,497-2,222

841,997-737,461

52,196,697

SerbiaUniCredit 2023 Integrated Report

S.43

243

Supplement

Latvia97

Annexes

IrelandGovernance, Risk and Compliance

1,354,233-194

Our Impact

1,494,391

Our Strategy

Income Income tax
tax paid
accrued –(on cash current year
basis)

Relatedparty

Austria

Total

Profit(loss)
beforeincometax

Unrelatedparty

Information on Tax Management

Total Tax Contribution (TTC)
In this section, for the first time we provide an overview
of our TTC related to FY 2023. UniCredit believes that the
information concerning its contribution to public finances is a
step in the right direction towards conveying the company’s
tangible transparency.
We use the cash basis criterion, that is the sum of actual
payments made in the year, as opposed to the accrual principle
usually followed in ordinary financial statements, net of refunds
obtained. In the case of compensation with tax credits due toan overpayment in previous years, the net amount of taxes
actually paid has been considered, while tax credits grantedby specific tax rules2 do not offset the amount of taxes paid.
Social contributions are out of scope for the time being.
The information covers a limited perimeter of 33 Legal Entities/
branches including main Italian and foreign controlled Legal
Entities of UniCredit S.p.A. (representing over 99% of total
revenues based on CbCR). Compared to the scope of the year
2022, a further four Group companies were analysed. TTC in
2023 is equal to €5.8bn. The increase of the taxes paid of€1 bn compared to 2022 (€4.8 bn) is mainly due to a mix ofphenomena linked to the trend of interest rates and dividends
and to the Group’s results. Below is the breakdown between thefollowing two categories:– taxes borne that constitute a cost for the Group and are paid
to the tax authorities among the various jurisdictions on its
income or property– taxes collected that the Group collects from other parties onbehalf of governments

The taxes borne by UniCredit Group in 2023 are equal to€1.7bn (2022: €1.1bn). As can be seen in the charts below,
Corporate Income Taxes and the direct regime of contribution
accounts for 57% of the taxes paid by UniCredit Group,
withholding included (e.g. on dividends, interests). It should
be pointed out that, for example, income tax of the Italian Tax
Group regime is mainly reduced by tax losses of previous years.
During 2023 some countries such as Hungary, Croatia andRussia have introduced the Windfall tax. Starting from 2024,
other countries will introduce such tax, the regulation in Italyin particular states the possibility to pay or to allocate nondistributable reserves. The overall amount of this new type oftax is 5% of the taxes borne.
The taxes collected by the UniCredit Group during 2023 areequal to €4.1bn (2022: €3.7bn). Withholding taxes on financial
income have been the most significant category of taxes
collected (60%) which is consistent with the core business of
the Group (provider of financial services).
On behalf of national governments, UniCredit has the importantrole of acting as tax agent in different jurisdictions in thecollection of personal income tax on the earnings of employees(30% of the total amount of taxes collected), an amount that
also encompasses the withholding on professional income paid
to our professional providers.
The indirect tax contribution includes VAT and property taxes
that are characterised by varying tax rates in the different
jurisdictions and are considered either in taxes borne or in taxes
collected according to their nature. In particular, VAT may be:– a tax borne in the case of non-recoverable/partially
recoverable input VAT on purchases, a cost for companies in
the financial industry– a tax collected as net VAT position of output VAT charged
on the sale to customers minus the recoverable input VAT
suffered on purchases

2. For example, tax credits deriving from conversion of tax loss generated
from reversal of convertible DTAs according to Law n. 214/2011.

244

S.44

UniCredit 2023 Integrated ReportOverview€5.8bn€1.7bnOur Strategy

Taxes borne (%)

Our Context

Total tax contribution (%)

Total taxes borne

Total tax contributions

Other Tax

Property Tax
Windfall Tax
Taxes borne

3

57

Taxes collected

Corporate
Income Tax

Governance, Risk and Compliance

Value
Added Tax

32

Our Impact

29

5

3

71

Taxes collected (%)

Annexes€4.1bnTotal taxes collected
Value Added Tax

Withholding 30
Tax onPersonal
IncomeUniCredit 2023 Integrated Report

Supplement

10

60 Withholding
Tax onFinancial
IncomeS.45

245

Main partnerships and affiliations
Legal Entities

Organisation

Description

UniCredit S.p.A.

ACAMS

ACAMS is the largest international membership organisation for anti-financial
crime professionals. It supports individuals and organisations who are dedicatedto preventing financial crime through thought leadership, ongoing professional
education and our best-in-class peer network.
Assonime is an association of companies that studies issues related to Italy’s
economy and works to improve its industrial, commercial, administrative, tax
and currency legislation.
Bruegel’s distinctive nature is drawn from a balanced partnership between
private and public stakeholders. Its member base is composed of EU member
states, international corporations and self-standing institutions.
The B4SI Framework is a robust measurement standard that any company
can apply to understand the difference their contributions make to businessand society. The companies using B4SI are from some of the world’s leadingorganisations and are part of a global B4SI Network.
The CDP promotes understanding of the potential impacts of climate change onshareholder value.

Assonime
Bruegel
B4SI Social Impact Framework& Benchmark (B4SI Framework)
CDP (formerly Carbon
Disclosure Project)
CEPS-Centre For European
Policy Studies
CSR Manager Network Italia
Ellen MacArthur Foundation
EUROFI

European Financial Services
Round Table (EFR)

European Microfinance Network(EMN)
European Venture Philanthropy
Association (EVPA)
Finance for Biodiversity
Foundation
FinTech Innovation – ABILabIFRS Foundation
Istituto Affari Internazionali (IAI)

246

S.46

CEPS is a leading think tank and forum for debate on EU affairs, with an
exceptionally strong in-house research capacity and an extensive network ofpartner institutes throughout the world.
CSR Manager Network is the Italian national association for corporate social
responsibility professionals.
The Foundation works to accelerate the transition to a circular economy,
developing and promoting it, and works with business, academia, policymakers
and institutions to mobilise systems solutions at scale, globally.
A non-profit organisation for exchanges between the financial services industry
and public authorities, addressing issues related to the financial regulationand supervision and the economic and monetary context impacting the EU
financial sector.
The EFR brings together Chairmen and Chief Executives of leading European
banks and insurance companies. Its purpose is to contribute to the European
public policy debate on issues relating to financial services and to the financial
stability with the completion of the single market in financial services. The EFR
is also engaged in the lessons to be drawn from the financial crisis to render thefinancial system more resilient.
The EMN is a member-based non-profit organisation based in Brussels which
promotes microfinance as a tool to fight social and financial exclusion in Europe
through self-employment and the creation of microenterprises.
EVPA is a lively network of organisations sharing the same vision and a common
goal: creating positive societal impact through venture philanthropy. Its mission
is to enable venture philanthropists and social investors to maximise societal
impact through increased resources, collaboration and expertise.
The aim of the Foundation is to support a call to action and collaboration
between financial institutions to reverse nature loss this decade.
This observatory is dedicated to all main Italian and international fintech
innovations.
The IFRS Foundation is a global coalition of regulators, investors, companies,
standard setters, NGOs and accounting professionals that works to establish
integrated reporting and thinking in mainstream business practices.
IAI is an independent, private and non-profit think tank. It promotes knowledgeof international politics and contributes towards the advancement of European
integration and multilateral cooperation.

UniCredit 2023 Integrated ReportOverview

Description

Nemetria

Nemetria is a non-profit association founded by companies, banks, organisations
and universities. Its activities include seminars, workshops and conferences on
the topics of economics, finance, ethics, corporate culture and culture in general.
Parks – Liberi e Uguali, a non-profit organisation whose members are
exclusively employers, was created with the aim of helping partner companies
to understand and attain maximum business opportunities deriving from thedevelopment of strategies and good practices that respect diversity.
The CeTIF has been carrying out studies and promoting research on the dynamics
of strategic and organisational change in the financial, banking and insurance
sectors since 1990.

Parks – Liberi e Uguali

Sustainable STEEL Principles
Association

Transparency International
ItaliaValore D
UniCredit Bank AG Bundesinitiative Impact
Investing
Joblinge
Verein für Umweltmanagement
und Nachhaltigkeit in
Finanzinstituten e.V. (VfU)

UniCredit 2023 Integrated Report

Supplement

United Nations Environment
Programme Finance Initiative(UNEP FI)
Utenti Pubblicità Associati (UPA)

Annexes

UN Global Compact – Global
Compact Network Italy

The mission of Social Impact Agenda per l’Italia is to monitor and contributeto the implementation of the recommendations contained in the financereport. These include the aim to strengthen the ecosystem for social impact
investments in Italy and to promote social entrepreneurship.
SCCE is a member-based association for compliance and ethics professionals
worldwide and across all industries. The vision of SCCE is to be the pre-eminent
compliance and ethics association promoting the lasting success and integrity oforganisations worldwide.
This is an independent, unincorporated association. It comprises signatories
as its members, and its administrative functions are managed by RMI’s Centerfor Climate-Aligned Finance. The Sustainable STEEL Principles represent aframework for banks to effectively assess and disclose the climate alignment ofsteel finance portfolios.
Transparency International is the largest global organisation that deals withpreventing and combating corruption by collaborating with governments,
companies and citizens to expose systems and networks enabling the abuse of
power. Its mission is to encourage and support victims and witnesses to safely
report corruption.
The United Nations Global Compact is a strategic policy initiative promoted atnational level via local networks and aimed at businesses committed to aligning
their operations and strategies with 10 universally accepted principles related tohuman rights, labour, anti-corruption practices and the environment.
UNEP FI is an initiative promoted by the United Nations that addresses pressing,current issues in sustainable finance.

Governance, Risk and ComplianceSociety of Corporate
Compliance and Ethics (SCCE)

Our Impact

Research Centre on
Technologies, Innovation and
Financial Services (CeTIF) –Università Cattolica del Sacro
Cuore
Social Impact Agenda
per l’Italia

Our Strategy

Organisation

Our Context

Legal Entities

UPA is owned and operated by companies with a common interest in
resolving concerns related to advertising. UPA is aligned with the Istitutodell’Autodisciplina Pubblicitaria (IAP) in its efforts to defend and promoteresponsible advertising as a vehicle for consumer information, market
competition and social welfare.
Valore D is an Italian association of more than 150 national and multinational
companies. Its mission is to increase and support female representation in top
positions at major Italian companies.
Bundesinitiative Impact Investing wants to create a better awareness of thepotential of impact investing, thereby generating more knowledge and capitalfor overcoming the social and ecological challenges modern societies are facing.
Joblinge is a collaboration of the private, public and volunteer sectors to better
prepare disadvantaged young people in Germany for the job market.
VfU is an industry-specific body for environmental management at financial
institutions

S.47

247

Main partnerships and affiliations

Legal Entities

Organisation

Description

UniCredit
Bank Austria

Austrian Society for
Environment and Technology(ÖGUT)
klima:atkiv Pakt 2020ÖGUT is a non-profit organisation that works to stimulate discussion andinnovation on environmental issues through the involvement of NGOs,
businesses and the government.

Ostasiatischer Verein e.V. (OAV)

Pride Biz
RespACT Austrian BusinessCouncil for Sustainable
Development
UniCredit
Bulbank AD

Atanas Burov Foundation

Bulgarian Business Leaders
Forum (BBLF)
Council of Women in
Business in Bulgaria

Green Finance & Energy Centre

Hellenic Business Council
in Bulgaria

UN Global Compact – Global
Compact Network Bulgaria

248

S.48

The climate protection initiative of the Federal Ministry for Sustainability andTourism (BMNT) is klima:atkiv. Thanks both to the development and provision ofquality standards, the training and further education of professionals and to theadvice, information and large partner network, klima:aktiv supplements climate
protection funding and regulations.
OAV is the German Asia-Pacific Business Association offering a platform forexchanging knowledge and experience across different industries, offering
members practical and comprehensive services, regardless of whether or not themember has experience operating in – or cooperating with – Asia.
Pride Biz Austria is committed to lesbian, gay, bisexual, transgender and intersex
people in business and the world of work and acts as Austria’s first point ofcontact for companies that wish to develop in the area.
RespACT Austrian Business Council for Sustainable Development is Austria’s
leading corporate platform on corporate social responsibility and sustainable
development. The association supports its member companies in achieving
ecological and social goals economically and independently.
The Foundation wants to preserve the ideas and work of Atanas Burov to build
a democratic Bulgarian state and a prosperous economy, based on a modern
financial system and free movement of capital, and pass them on to young
Bulgarian generations.
The BBLF is the country’s top business community comprising successful local
and international companies across sectors.
Council of Women in Business in Bulgaria is an organisation, working in publicbenefit, whose main goals are recognition and popularisation of best practices
and programmes for encouraging the professional development of women insmall and middle-sized businesses and their professional growth to managerial
positions, support of young specialists to realise their potential in Bulgaria anddeveloping projects that aim at endorsing the talent in business activities.
Green Centre for Sustainable Finance and Energy is establishing itself as a thinktank for policies in the fields of sustainable finance and energy, conducting publicdebate on these topics in the country and addressing issues that lead to concretedecisions. The mission is to create and transfer to stakeholders leading goodpractices in both fields.
The Hellenic Business Council in Bulgaria is a private, non-government, nonprofit organisation founded in 2005 which offers its own network of contacts,
mutual assistance and information exchange. It represents the interests of its
members and assumes the role of accelerating trade and investment between
Bulgaria and Greece.
The United Nations Global Compact is a strategic policy initiative promoted atnational level via local networks and aimed at businesses committed to aligning
their operations and strategies with 10 universally accepted principles related tohuman rights, labour, anti-corruption practices and the environment.

UniCredit 2023 Integrated ReportOverview

Organisation

Description

Zagrebačka
Banka DD

Croatia Green Building Council(GBC)
Croatian Business Council for
Sustainable Development(BCSD)
Bizniscool

The GBC is a non-profit organisation and countrywide platform for the promotionof sustainable construction practices.

Budapest Business School

Association of Business Service
Leaders in Romania (ABSL)
Romanian Banking Employers
Board (CPBR)
Romanian Banking Institute (RBI)

National Alliance for Local
Economic Development (NALED)

Smart Kolektiv
UniCredit Banka
Slovenija dd

Network for Social Responsibilityof Slovenia

UniCredit 2023 Integrated Report

S.49

Supplement

Responsible Business Forum

Annexes

UniCredit
Bank Serbia

JVSZ assimilates the views of its members and supports them in facing
challenges related to business conduct and organisational decision-making.
The ABSL is a leading organisation representing the business services sector,
gathering high-profile companies which conduct business in the areas of
Shared Services Centres, Business Process Outsourcing, Information Technology
Outsourcing, and Research and Development.
CPBR promotes communication, cooperation and social dialogue with Romanianauthorities and contributes to the initiation, preparation and promotion of newlaws or other legislative or regulatory initiatives.
The RBI’s primary objective is to improve the professional training andspecialisation of staff from the financial/banking sector in line with the strategy
determined by the National Bank of Romania, in cooperation with the RomanianBanking Association and programmes approved by the Board of Directors.
NALED is an association of businesses, local governments and civil society
organisations working together on creating better conditions for living andworking in Serbia. Members are committed to advocating an efficient state,eliminating bureaucracy and reducing the para-fiscal burden for businesses andfair competition.
Responsible Business Forum is Serbia’s network of socially responsible
companies that inspires, supports and encourages companies to continually
improve their impact on society, carrying out a series of activities which aim topromote the concept of corporate social responsibility in the business sector andthe wider general public.
Smart Kolektiv is an independent, non-profit organisation founded in Belgrade in
2003. The organisation is a pioneer in promoting the concept of corporate social
responsibility and the development of social entrepreneurship in Serbia.
The Network for Social Responsibility of Slovenia is the meeting point ofcompanies and other organisations whose common purpose is to promotesocial responsibility, both within their companies and organisations andin society in general.

Governance, Risk and Compliance

UniCredit
Bank SA

Bridge Budapest, the organisation which aims to link the educational andentrepreneurial sectors in Hungary, says it has reached a landmark this year withan expanded team of seven – all women.
The aim of the Budapest Business School is to widen practical financial andbanking knowledge for university students through a dedicated classroom course
held by UniCredit executives.
The BCSDH is a coalition of forward-thinking CEOs of more than 130 leading
companies, working together to accelerate the system transformations
necessary for a climate-neutral, nature-positive and fairer future.

Our Impact

Business Council for
Sustainable Developmentin Hungary (BCSDH)
Joint Venture Association (JVSZ)HR BCSD was founded in 1997 by leading Croatian businesses to promotesustainable development in the private sector and represent business on theissue of sustainable development.

Our Strategy

UniCredit Bank
Hungary Zrt

Our Context

Legal Entities

249

Governance
UniCredit S.p.A. is an Italian company with shares listed on the
Milan, Frankfurt and Warsaw regulated markets adopting the
traditional management and control system and, as a bank,parent company of the UniCredit banking Group, it carriesout, pursuant to the provisions of Section 61 of the Italian
Consolidated Banking Act, in addition to banking activities,
governance and coordination ones, as well as control functions
vis-à-vis the subsidiary banking, financial and instrumental
companies within the banking Group itself.
The overall corporate governance framework of UniCredit1 has
been defined in compliance with current Italian and European
provisions, as well as the recommendations of the ItalianCorporate Governance Code for listed companies2.
UniCredit is also subject to the provisions contained in the
Supervisory Regulations issued by the Bank of Italy and, in
detail, to the regulations on banks’ corporate governance.
As an issuer of shares also listed on the Frankfurt and Warsaw
regulated markets, it fulfils the legal and regulatory obligations
related to listings on said markets as well as to provisions
on corporate governance contained in the Polish Corporate
Governance Code issued by the Warsaw Stock Exchange.

Governance framework
UniCredit’s corporate governance adheres to current rules andregulations as well as to the recommendations laid out in the
Italian Corporate Governance Code. The governance system isregularly verified and updated to ensure that UniCredit complies
both with the evolving regulatory framework and with therelevant operating and market practices which are constantly
monitored in order to verify their implementation.
UniCredit governance components include:– the Articles of Association which set forth corporate
governance provisions aimed at ensuring the correct
execution of corporate activities– the Regulations for the Shareholders’ Meeting, governing the
conduct of ordinary and extraordinary meetings– the Corporate Bodies and Committees Regulation, governing
the function and competencies of the corporate bodies
and Board Committees, in compliance with relevant legal
and regulatory provisions, and the UniCredit Articles of
Association, also incorporating the principles and criteria set
out in the Italian Corporate Governance Code– the Group Remuneration Policy, ensuring that – throughout
the Group – compensation is aligned to businessobjectives, market conditions and stakeholders’ long-term
interests while also being fully compliant with all relevant
regulatory provisions– the Group Managerial Golden Rules (GMGR), a set of
guidelines defining the Group managerial coordination
mechanisms, assigning to the Heads of the Holding Company
functions, specific responsibilities and powers vis-à-vis thecorresponding functions within the controlled Legal Entities.
Based on such system, ad-hoc structures/functions work
across UniCredit and the Group Legal Entities to ensure
the coordination of the activities and the control of risks
across the Group as a whole by interacting with the relatedcompetent structures within the Legal Entities in order toensure the steering, coordination and control activities in theinterest of the Group stability.
In accordance with the GMGR guidelines, UniCredit issues Global
Rules to regulate, inter alia, relevant activities for compliancewith law and/or risk management purposes and to ensure one
single approach to corporate planning and overall efficiency.
In particular:– the Global Rules issued by the Holding Company areclassified into three different document types:– Global Policies (GP) which contain behavioural andmethodological principles, guidelines and rules, as wellas the general framework of responsibilities between
the Holding Company and the recipient legal entities(when needed)

1. Refer to the annual Report on corporate governance and ownership structure and the 2024 Group Remuneration Policy and Report available in the
Governance section of the Company’s website (www.unicreditgroup.eu/en/governance.html) for more information.
2. Since 2001, UniCredit has adopted the Italian corporate governance code for listed companies. In line with the experience of major international
markets, the code identifies the corporate standards and best practices for companies listed in Italy recommended by the Italian Corporate
Governance Committee - inspired by transparency, accountability and a long-term perspective - to be applied according to the comply or explain
principle that requires the explanation in the report on corporate governance of the reasons for failure to comply with one or more of the bestpractices recommended. In January 2020, a new version of the corporate governance code was approved. The key areas of improvement
deemed to be functional to better implementing the new code are, inter alia, focused on the integration of sustainability into the definition ofstrategies, the internal control system and remunerations.

250

S.50

UniCredit 2023 Integrated ReportOverview

Governance structures

Prior to the appointment of its members, each corporatebody informs shareholders on the composition deemed to
be optimal in order that the expertise required may be taken
into consideration in the choice of candidates. However,shareholders may carry out their own assessment on thebest composition of the above-mentioned bodies and file– the time commitment recommended for an effective
attendance of meetings– the limits regarding the maximum number of offices
established by the current provisions– the gender composition criteria for corporate bodies,reference can be found in the documents ruling the qualitativeand quantitative composition of the Board of Directors andthe Board of Statutory Auditors of UniCredit published on the
Company’s website, Governance section.
The composition resulting from the appointing process of boththe Board of Directors and the Board of Statutory Auditors
qualitatively and quantitatively corresponds to the relevant
theoretical profiles and meets the suitable requirements
established by current provisions.

Supplement

In compliance with the applicable provisions, both the Boardof Directors and the Board of Statutory Auditors establish
their qualitative and quantitative composition deemed to be
optimal for the effective fulfilment of the duties entrusted tothem by law, by the Supervisory Provisions and by the UniCredit
Articles of Association. The Board of Directors and the Board of
Statutory Auditors also establish the requirements that theirmembers shall meet, in addition to those envisaged undercurrent provisions.

– the qualitative and quantitative composition of the Boardof Directors and the Board of Statutory Auditors as wellas the profile of candidates for the position of Director or
Statutory Auditor

Annexes

The appointing process of the above-mentioned corporate
bodies guarantees that they are gender-balanced in compliancewith current regulations and provisions.

With regard to the following:

Governance, Risk and Compliance

Members of the Board of Directors and Board of Statutory
Auditors are appointed by the Shareholders’ Meeting on thebasis of a proportional representation mechanism (voto di lista).
This voting system features lists of competing candidates toensure the election of minority shareholders’ representatives.

Our Impact

UniCredit has adopted the so-called Italian traditional
management and control system based on the existence of
two corporate bodies whose members are appointed by the
Shareholders’ Meeting: the Board of Directors, in charge of thestrategic supervision and management of the Company, andthe Board of Statutory Auditors, responsible for supervising
the management. Legal accounting supervision is entrusted
by the Shareholders’ Meeting to an external audit firm, upon
proposal of the Board of Statutory Auditors, in compliance withapplicable provisions.

candidacies consistent with that assessment, providing reasonsfor any difference vis-à-vis the analyses carried out by the
corporate bodies. The outcomes of the check on the matching
between the qualitative and quantitative composition deemed
to be optimal and the one resulting from the appointment
process done by each corporate body as per current regulatory
provisions are disclosed to Shareholders in due time before
the first Shareholders’ Meeting called for the approvalof the financial statements following the renewal of thecorporate bodies.

Our Strategy– Global Operational Regulation (GOR) which
provides detailed technical, operational or
methodological instructions.

Our Context– Global Process Regulation (GPR) which describes the
key elements for the discipline of processes classified by
the parent company as global due to relations between
activities, responsibilities and supporting tools

The Directors’ and Statutory Auditors’ personal qualities andgender diversity comply with the principles of the theoreticalprofiles. In particular, also in light of the information given by
the persons concerned, the requirements regarding, inter alia,
experience, integrity and independence3, as well as the timecommitment and the limits regarding the maximum number
of offices that Directors and Statutory Auditors may hold, were
accounted for.
Furthermore, with reference to professional expertise gainedin the areas of competence envisaged by the relevant profiles,
all core areas of competence are represented in the corporate
bodies and the experience possessed by all the Directors andStatutory Auditors are in line with the requirements of therelevant profiles.

3. At the approval date of this Integrated Report, the number of independent Directors in office is above the minimum required by current
regulatory and statutory provisions (9 out of 12 under the Italian Corporate Governance Code; 10 out of 12 under Legislative Decree no.
385/1993 (“TUB”), 11 out of 12 under Legislative Decree No. 58/1998 (“TUF”), 11 are non-executive).
4. Refer to the annual Report on corporate governance and ownership structure and the 2024 Group Remuneration Policy and Report,
available in the Governance section of the Company website (www.unicreditgroup.eu/en/governance.html), for more information.

UniCredit 2023 Integrated Report

S.51

251

GovernanceIn order to support the Board of Directors, also pursuant to
the provisions of the Italian Corporate Governance Code,there are five established Committees4, vested with research,advisory and proposal-making powers and diversified by sector
of competence:

The induction programme and recurrent training, put in placewith the support of an external consultant, respectively include
sessions aimed at fostering the integration of new Directors
and training to preserve over time the expertise needed for theproper fulfilment of their duties.

– the Internal Controls & Risks Committee

In addition, individual training plans will be activated, should
they be deemed necessary, to strengthen specific individuals’
technical knowledge and expertise and to increase the level ofdiversity and the collective experience of the Board of Directors.

– the Corporate Governance & Nomination Committee– the ESG Committee– the Remuneration Committee– the Related Parties Committee.
The first four Committees were set up in compliance with theprovisions of the Bank of Italy Supervisory Regulations on banks’corporate governance. The Related Parties Committee wasestablished for overseeing issues concerning transactions withrelated and associated parties, in compliance with the relevant
Italian Companies andExchange Commission (CONSOB) regulatory provisions andthe Bank of Italy Supervisory Regulations, carrying out the
specific role attributed to independent Directors in the aforementioned provisions. The Committees’ duties are undertakenin accordance with the terms of reference and procedures set
forth by the Board.

Board Self-Evaluation5
In compliance with the provisions of the Bank of Italy
Supervisory Regulations on banks’ corporate governance, andin line with the recommendations of the Italian Corporate
Governance Code for companies listed in Italy, the Board of
Directors undertakes a regular self-evaluation process at least
once a year. It is focused on the adequacy of the Board itself and
Board Committees in terms of composition and functioning,tangibly measured in specific theme-based areas, particularly
those relevant to sound and prudent management.
The self-assessment process is undertaken with the assistanceof an external consultant chosen on the basis of competence
and expertise in the field of corporate governance and the needfor neutral, objective and independent judgement which are thehallmarks of the self-assessment process.

Induction Initiatives and Recurrent Training5
At UniCredit a permanent induction programme is active for the
Board members, also for the benefit of the Board of Statutory
Auditors members, based on three-year cycles connected to theBoard’s mandate, with the aim of ensuring ad hoc training on
a continuous basis by taking into account both individual andcollective needs.

Board and Senior Management
Compensation
The CEO is the only Executive Director who sits on the Boardof Directors. With reference to 2023 and in line with the 2023
Group Remuneration Policy provisions, the CEO received avariable remuneration, determined by the Board of Directors on
the basis of % targets achievement of the KPIs embedded in the
CEO’s 2023 scorecard, composed by a financial section (80%overall weight where all KPIs were equally weighted) and a nonfinancial section (20% overall weight).6
All other Board members are non-executive Directors andare not beneficiaries of incentive plans utilizing stock options
or, more generally, of any incentive plan that makes use offinancial instruments.
The remuneration for members of the administrative andauditing bodies of UniCredit is represented only by a fixedcomponent, determined on the basis of the importance of theposition held and the time required for the performance of theassigned tasks.
This policy applies to non-executive Directors, as well as to
Statutory Auditors.
The approach to compensation for UniCredit’s top managers,
as detailed in the Group Remuneration Policy, is connected toperformance, market awareness and is aligned with UniCredit’sbusiness strategy and shareholders’ interests. More details
on the compensation for top management leaders and formembers of the administrative and auditing bodies of UniCredit
are reported in the Group Remuneration Policy.
To ensure competitiveness and effectiveness of remuneration,
as well as transparency and internal equity, the principles ofsustainable conduct and performance define the key pillarsof the Group Remuneration Policy. The Remuneration Policy
framework is designed to ensure the consistency of the
remuneration elements and systems while also conforming
to our Group’s long-term strategies and principles of soundrisk management.
The Group Remuneration Policy, as proposed by the
Remuneration Committee, is submitted for approval to theBoard of Directors and, subsequently, to shareholders at theAnnual General Meeting.

5. Refer to the annual Report on corporate governance and ownership structure, available in the Governance section of the Company website(www.unicreditgroup.eu/en/governance/our-governance-system.html), for more information.
6. For further details on the CEO’s 2023 variable remuneration, refer to the 2024 Group Remuneration Policy and Report.

252

S.52

UniCredit 2023 Integrated ReportOverviewEnvironmental and social risk assessments are guided by ourenvironmental, social, operational and reputational risk sector
policies as well as by our human rights commitment and, whenapplicable, by the Equator Principles (EP).

Our Impact

Sound risk management requires a deep understanding of many
types of risk, including environmental and social risks, and theirsubsequent impacts on financial results and statements.

Our Strategy

Managing environmental
and social risks

Our Context

Risk Management

How we mitigate environmental, social and reputational risks
Scope & Objectives

2023 Highlights

Equator Principles– Framework of standards fordetermining, assessing andmanaging environmental and social
risk for large projects

56

Governance, Risk and Compliance

Policies

project transactions evaluated12

projects financed– Framework of sector-specificstandards/guidelines to identify,
assess and mitigate environmental,social and reputational risks/
impacts on an ongoing basis withour clients

Other Environmental
and Social Impacts

transactions screened forenvironmental, social andreputational risk issues(vs >1,480 in 2022)

40

Supplement

Commitments
Human rights
Rainforests~1,274

Annexes

Sector Policies
Coal, Oil & Gas, Mining(update), Defence/Armaments (update),
Nuclear energy, Water
Infrastructure

RepRisk colleagues trainedon policies and exception– Specific high risk cases/transactions
analysis not covered under thedefined policies, including local
regulations, sensitive sectors not yet
regulated or other RepRisk issues~606

transactions screened forenvironmental, social/human rights
and reputational risk issues– Ad hoc analysis leveraging the data
analytics and key internal functionsof external ESG providers
Environmental, Social
and Reputational Risk
– Prevention Process– Dedicated Committee (GNFRCC)
to assess business initiatives,transaction banking, projects,
customers, etc.
– Awareness and knowledge ofpotential reputational risks acrossthe Group

UniCredit 2023 Integrated Report43

meetings Group
Reputational Committee

96

transactions analysedby GNFRCC

S.53

253

Risk Management

Climate risk identification (reference to 1.1 – impacts identification)
Table 1: Risk Hazard events at counterparty level
Potential
Climate-Related Risks

Time Horizon

Main Potential Impacts

Transition risks
Changes in or introductionof public policies and/or
environmental regulations

Short andmedium/long term– Reduction of businessfor corporate clients withpotential drawbacks on
creditworthiness/solvency

Transition risks
Technological changes

Short andmedium/long term

Transition risks
Changes in customer/
consumer preferences

Short andmedium/long term

Transition risks

Short andmedium/long term

Changes in customer orcommunity perceptions

254

S.54

Specific Actions

Overarching Actions– Inclusion of ESG risks– Definition of data governanceconsidering both counterparty processes and related IT
scoring (including the use
investments to integrate ESGof an internally developed
risk into the risk management
questionnaire) and energy
framework– Financial implications arising
performance certificatesfrom environmental/ESG– Participation in international(EPC) and when assessing
regulations and GHG emission
working groups andcredit applications
limits and/or taxes applied tocommitments related toclients operating in specific– Enhancement of Market andclimate, such as the Net Zeroeconomic sectors
Liquidity risk framework to
Banking Alliance, stakeholder
incorporate the assessment,
engagement initiatives and– Reduction of Group profits
monitoring and control ofactive collaboration with
deriving from concentration
ESG riskspolicy makers
on sectors more sensitive toclimate-related risks– Integration of industry– Risk identification process
steering signals within
and materiality assessment,– Increase in costs for
the Credit Risk Strategies
including stress tests, tocorporate clients withframework, based on relevant evaluate the significance ofpotential drawbacks on
Climate & Environmental
climate-related risks in thecreditworthiness/solvency(C&E)
factors
short-, medium- and long– Reduction of businessterm horizons
for corporate clients withpotential drawbacks on– Inclusion of specific KPIs
creditworthiness/solvency
related to transition andphysical risks within the Risk
– Potential changes to theAppetite Framework. The risk
offering of products andappetite is then cascaded toservices to clients
more granular levels via risk
strategies and policies– Reputational impacts or– Environmental sector– Promoting a sustainablenegative perceptions from the policies and their subsequent culture within thecommunity or Stakeholders
implementation
organisation by developing
due to inadequate
ESG training courses and– A Reputational Risk
management of climateworkshops
assessment to evaluate therelated risks
positioning of clients andspecific projects in relation toclimate-related topics

UniCredit 2023 Integrated ReportOverview
Our Context

Time Horizon

Main Potential Impacts

Specific Actions

Overarching Actions

Physical risks

Short andmedium/longterm– Financial implications
resulting from corporate/
retail clients being damagedby extreme weather events,
potentially impacting their
creditworthiness/solvency– Inclusion of ESG risks
considering counterparty
scoring– Definition of data governanceprocesses and related IT
investments to integrate ESG
risk into the risk management
framework– Potential damage to the
Bank’s infrastructure andthe potential disruption ofactivities– Increase in energy supply
costs due to higher heat/electricity demand– Potential fires, driven by risingtemperatures, affecting areas
in proximity to the Bank’sbuildings– Potential impact of sea level
rise on buildings located near
the sea– Reduced productivity due tohigher temperatures

Governance, Risk and Compliance

Chronic
Chronic weather events
such as variations inaverage temperatures andsea level rise

– Monitoring of physical risksboth on counterparties within– Participation in international
our portfolio and individual
working groups andcollaterals
commitments related toclimate, such as the Net Zero
Banking Alliance, stakeholder
engagement initiatives andactive collaboration with
policy makers

Our Impact

Acute
Extreme weather events
such as floods, droughts,
heavy rainfalls, heatwaves,
fires and hail)

Our Strategy

Potential
Climate-Related Risks– Risk identification process
and materiality assessment,
including stress tests, toevaluate the significance ofclimate-related risks in the
short-, medium- and longterm horizons

Annexes– Inclusion of specific KPIs
related to transition andphysical risks within the Risk
Appetite Framework. The risk
appetite is then cascaded tomore granular levels via risk
strategies and policies

Supplement– Promoting a sustainableculture within theorganisation by developing
ESG training courses andworkshops– Signing (2022) of the Financefor Biodiversity Pledge (FfB)
and participation as member
to the working table on
Biodiversity of the UNEP FI

UniCredit 2023 Integrated Report

S.55

255

Risk Management

List of hazards (reference to 2.8 – physical risk in the credit portfolio)
Table 1: Risk Hazard events at counterparty level
Type Of PhysicalMaterial Risk
(Acute/PhysicalRisk Chronic)
Hazard Event

Description Of The
Metric/Approach
Physical Risk Hazard Event

Spatial Resolution

SourceAcuteLandslides

Risk of landslide events,
long historical data

grid 200 metres/census
cell

Acute

FloodsThird party Data &Bundesanstalt für
Geowissenschaften undRohstoffe & Istituto di
Ricerca per la Protezione
Idrogeologica
Third party Data & ISPRA(Italy)

Acute

Acute

Acute

Acute

Acute

Acute

Acute

Chronic

Chronic

Chronic

256

S.56

Annual probability ofevent with high severity

Risk of flood events,
Annual probability ofgrid 100 metres/census
related to waterways
event with high severity, celland heavy rain events,
return period 50y
predictive modelWind (extreme
Probability of extreme
Annual probability ofgrid H3
wind-related
wind events based
extreme events (11-12
events)on storm footprint,
Beaufort scale)measured on Beaufort
scale, return period 50y
Wildfire
Risk classes depending
Average days/year withgrid 4 kilometreson days with high firehigh fire risk, subject torisk subject to the type of type of environment
environment in which thecompany is located, RCP
4.5 scenario
Extreme waves
Probability of having
Wave height in RCP 8.5
grid 25 kilometres(extreme waves, storm surges and highwith a return period ofstorm surges)
energy waves
50y
Frost occurrence Probability of cold events Average number ofgrid 10 kilometres(frost, even of short
events by years
duration), predictivemodel
Heat occurrence Probability of hot events Average number ofgrid 10 kilometres(even of short duration), events by years
predictive model
Heat waves
Probability of heat waves Number of events (> 3grid 10 kilometres(extreme hot event > 3days) observed in a 60ydays), historical data
periodAridity
Probability of
Mean annual
grid 500 metres
aridity phenomenaprecipitation (P)/mean(ratio precipitation/
annual evapotranspiration
evaporation), predictive (ETP)
model
Rainfall soil
Severity of soil erosion
R factor: Mj mm/ha h yr grid H3
erosiondue to rainfall, scenario
RCP 4.5
Shoreline erosion Score representing theMeter of erosion, scenario grid 200 metres
erosion compared to the RCP4.5 a y2050
present, RCP 4.5
Sea level rise
Estimates the sea
Max wave height at 2050, grid 25 kilometreslevel with various
return period in 50y
meteorological models

Third party Data

Third party Data & ESA
Data & Copernicus Data

Third party Data

Third party Data

Third party Data

Third party Data

Third party Data

Third party Data

Third party Data

Third party Data

UniCredit 2023 Integrated ReportOverview
Our Context

Table 2: Risk Hazard Events at Collateral Level
Description Of The
Metric/Approach
Physical Risk Hazard Event

Chronic

Sea level rise

Estimates the sea
level with various
meteorological models

Acute

Flood:– River Floods– Flash Floods

UniCredit 2023 Integrated Report– Storm surges: Multiple
wave heights are
simulated for eachcoast and the maximum
expansion calculated.
Wind speeds andbathymetry data werealso taken into account– Risk classes depending – Fire Weather Index– Approximately
on days with high fire
(FWI) combining the
1 kilometrerisk subject to the typeprobability of ignition,of environment in which the speed and likelihood
the company is located, of fire spread and the
RCP 4.5 scenario
availability of fuel.

Third party data:– River floods: Geoweb
natural hazard maps
– Flash floods: soilsealing maps (detectedby looking at impervious
surfaces), curvature(from global multiresolution terrain
elevation data), slope
and flow accumulation(from conditioned
terrain data) as
modifiers to generate
the final flash flood map

Supplement

WildFire– Storms (including
blizzards, dust
and sandstorms):
extratropical storms
and storm surges– Flash floods: The flash
flood map is based on
meteorological data,
as well as soil, terrain
and hydrographic
data (slope and flow
accumulation). The
meteorological data
includes the amount,variability, and extreme
behaviour of rainfall– Extratropical storms:– Extratropical storms:
The main variables ofapproximately
the exposure analysis are 5 kilometresforward wind, maximum– Storm surges:
wind speed, minimum
approximately
central pressure, radius
30 metresof maximum windspeeds, track of thecentre (eye) in 3 to 6
hourly intervals

Third party data: Sea level
rise zones were modelled
based on high-resolution
elevation data fromelevation model and sea
level rise projections fromclimate models

Annexes

Acute

StormsSea level rise hazard
30 metres resolution forzones defined onflooding hazard by sea
Elevation Index (driven
level rise globallyby coastal topography)
and sea level rise Index(driven by sea level rise).
The sea level rise hazard
information is available
for different scenarios– River floods: Risk of river – River floods: Global– River floods: 30 metres
flood events, related toclimate model and– Flash floods:
waterways and heavy
global land surface
approximately 250
rain events, predictivemodels estimate
metresmodel
changes in peak waterrunoff at hydrological– Flash floods are shortbasin resolution. Theseterm events which canchanges in peak runoff
be produced by multiple
are then used to scale
thunderstorms withcurrent river flood
heavy rain over one area
maps. The projections
are available in different
scenarios

SourceGovernance, Risk and ComplianceAcute

Spatial Resolution

Our Impact

Material PhysicalRisk Hazard Event

Our Strategy

Type Of PhysicalRisk (Acute/
Chronic)

Third party data

Third party data:
modelled according
to daily informationon temperature,
precipitation, humidity
and wind

S.57

257

Risk Management

Implementation of theEquator Principles

From the outset, our Group has actively contributed to theframework’s development. In 2023, we continued to beengaged in the work of the EP and to strengthen our internaland external commitment. In particular we participated inreviewing the optimal legal and management structure of the
EP Association as well as its Governance Rules.

Since 2003, UniCredit adopted the EP, a financial industry
benchmark for determining, assessing and managing
environmental and social risk in projects. The EP provide aminimum standard for due diligence to support responsible riskrelated decisions and are based on the International FinanceCorporation (IFC) Performance Standards on Environmental andSocial Sustainability and the World Bank Group Environmental,
Health and Safety (EHS) Guidelines.

Equator Principles – Projects evaluated and financed, 2023
Projects evaluatedProjects financedA

56

12

A. Includes eight Project Finance transactions and four Project-Related Corporate Loans.
Risk categoryA

2023B

2022B

2021B

Category A
Category B
Category C
Total

3
4
5
12

4
13
7
24

1
8
6
15

A. Category A: projects with potential significant adverse social or environmental risks and/or impacts that are diverse, irreversibleor unprecedented.
Category B: projects with potential limited adverse social or environmental risks and/or impacts that are few in number, generally site-specific,
largely reversible and readily addressed through mitigation measures.
Category C: projects with minimal or no social or environmental risks and/or impacts.
B. Projects financed by UniCredit Bank AG, UniCredit S.p.A, and UniCredit Bank Austria AG.

Equator Principles – Number of projects financed by risk category and sector, 2023
SectorResourcesA
EnergyInfrastructure
Total

Category A

Category B

Category C

1
1
1
3

1
3
0
4

0
5
0
5

A. Including Oil & Gas, Mining and Metals.

Equator Principles – Number of projects financed by risk category and region, 2023
RegionEurope: EU
Extra EU
North America and Mexico
AfricaAsia and Australia
Total

Category A

Category B

Category C

0
0
0
2
1
3

3
1
0
0
0
4

5
0
0
0
0
5

Equator Principles – Number of projects financed subjected to independent reviewsA , 2023
Independent Review

Category A

Category B

Category C

3

4

5

A. An Independent Review is a review of the Assessment Documentation, including the ESMPs, ESMS and Stakeholder Engagement process
documentation carried out by an Independent Environmental and Social Consultant.

258

S.58

UniCredit 2023 Integrated ReportOverview

Green Line – railway project, Egypt

Green Line is environmentally and socially beneficial as it
will reduce carbon emissions resulting in annual benefits ofpollution reduction, and will enhance reliability through reduced
travel and waiting times compared to highways or the former
railway system. Furthermore, the state-of-the-art security andIT system of the trains is expected to improve passenger safety
and reduce train accidents.

Given the environmental and social benefits of the project,
the financing achieved Green Loan Certification backed witha Second Party Opinion considering Green Loan Principles,
administered by the Loan Market Association and the EU
Taxonomy Climate Delegated Acts. The nominated project
category is aligned with the Climate Change Mitigation Criteria,with the Minimum Safeguards requirements and with the Do No
Significant Harm Criteria.

Governance, Risk and Compliance

The project is listed as a green loan in support of Egypt’s 2030
Vision, a national project aimed at boosting the country’s
progress in meeting the UN Sustainable Development Goals.

A reputable Independent Environmental and Social Consultant
supported the lenders with comprehensive Due Diligence.

Our Impact

Green Line is the first of three railway lines in Egypt, connecting
the Mediterranean Sea with the Red Sea with high-speed trains
for passengers and cargo. At around 660 km long, the railway
will serve to reduce congestion and improve transport between
major cities.

The main international Environmental and Social Standards
applicable to this project are International Finance Corporation
Performance Standards, OECD Common Approaches andEquator Principles 4.

Our Strategy

UniCredit acted as MLA in a consortium of several financial
institutions for the Green Line railway project in Egypt.
The National Authority for Tunnels has completed a transaction
with support from the Ministry of Finance. Euler Hermes,
the German Export Credit Agency, provides 95% cover forcommercial and political risk.

Our Context

EP in facts

To ensure the compliance of the project with international
environmental and social standards, e.g. the Equator Principles
and the IFC Performance Standards, various actions included
in an Environmental and Social Action Plan (ESAP) are agreed
between the project developer, operator and parties involvedin the financing. A regular monitoring, to be performed by areputable international consultancy, is taking place accordingly
to confirm adequate compliance with the applicable standards
and the ESAP.

Annexes
Supplement

UniCredit 2023 Integrated Report

S.59

259

Compliance
How compliance ismanaged at UniCredit

Key compliance policies
updated in 2023

The mission of the Compliance function in UniCredit Group,
under the responsibility of the Group Compliance Officer, is tomonitor the management of the non-compliance risk.

The Compliance function is responsible for areas withthe greatest impact on external clients and a high risk ofreputational damage (e.g. anti-money laundering, transparency,
privacy, market abuse, financial instruments and products
issued by banks).

The Compliance function is embedded in the second-levelinternal control system, pursuing the objective of preventing
and managing the risk of regulatory non-compliance andconflict of interest, with a view to preserve the Bank’s
reputation, its customers’ confidence and to contribute to Group
ESG sustainability (corporate value creation/consolidation).
This is done by monitoring, for the competence area, thealignment to ESG regulatory requirements, by providing
advice and performing controls on a risk-based approach andintegrating ESG topics into existing frameworks and processes.
Compliance provides support to the Bank functions on
regulatory requirements and interacts with them monitoringand supervising the risks of non-compliance. Inherent in its
mission is also the goal of being a valuable partner to thebusiness, firstly by ensuring the necessary advice to deal
promptly both with any new regulations and emerging risks thathave an impact on the Bank’s strategic interests, secondly byenhancing awareness on conducting business in an ethical way.
In order to accomplish such goals, the Compliance function
defines, develops and monitors both the implementation ofand adherence to compliance rules, procedures, methodologies,
training and, in particular, the minimum compliance standards
within the Group.
Compliance indeed plays a leading role in promoting a culture
which reflects the Group’s fundamental values and principles.

During 2023 the following Global Policies have been updated
according to new external requirements and/or internal
processes changes:– Whistleblowing– Sustainability-related disclosures in the financial
services sector– MiFID II – Product Governance Rules– Market abuse– Privacy

Anti-Money Laundering
UniCredit is firmly committed to the fight against financial
crime. It aims to actively manage the Money Laundering andTerrorism Financing (ML/TF) risk by continuing to enhance the
AML programme comprised of robust policies, a strong control
environment and careful client selection.
The programme is supported by Compliance initiatives in placeon training and culture and is shaping the risk management
culture. The strategy includes Risk Appetite Statement andFramework, regular review and test of policies/procedures,training and culture programme, client acceptance criteria,
a dedicated control environment, regulatory strategy, andcollaboration with the authorities.
The Global Policy on anti-money laundering and counteringof terrorist financing (AML/CTF) (hereinafter the AML Policy)
sets out the framework by which the Group manages its
money laundering and terrorist financing risk and establishes
minimum standards for the Legal Entities’ anti-money
laundering programmes.
Official documents related to the Global AML/CTF Policy thatfurther build on the AML/CTF framework provide more details
on areas such as: i) AML due diligence requirements for clients,ii) AML standards for correspondent banking, iii) AML/CTF
transaction monitoring etc.

260

S.60

UniCredit 2023 Integrated ReportOverview– The design of the new Target Operating Model

Key priorities 2024

UniCredit has a zero-tolerance approach towards actsof corruption.
The Bank’s approach to anti-bribery and corruption is laid out
in the dedicated Global Rules which set minimum standards ofanti-corruption compliance throughout the Group. Each Legal
Entity is responsible for the development and implementationof an effective Local Anti-Corruption Programme.

Key achievements 2023
– Development of a common and standardisedGroup ABC third-party registry

Key priorities 2024
– Review of the ABC framework and training

UniCredit 2023 Integrated Report

Furthermore, the Bank has formalised the Special Section
containing specific decision protocols listing all at-risk activities
and relative potential offences, as well as the principles
of conduct and control rules aimed at preventing theseoffences. As an integrated part of the model, UniCredit S.p.A.
has established additional rules of conduct in the Code of Ethics
pursuant to the decree.
The Organisation and Management Model 231/2001 of
UniCredit S.p.A. was last updated in November 2023 mainly
as follows:

Supplement

The Code of Conduct (CoC), reviewed in 2022, contains a
specific section dedicated to bribery and corruption risks,and provides behaviour rules and tips on how to manage andprevent such risks.

In order to plan and implement business decisions and carry out
relevant checks, the Bank has specifically defined the rules ofCorporate Governance, the Internal Controls System, the system
of authorities and delegation, and the Code of Conduct.

AnnexesMoreover, Italian Group Legal Entities have also implemented an
Organisational and Management Model (hereinafter the Model)
pursuant to Italian Legislative Decree 231/01 (Administrative
liability of Legal Entities, companies, and associations hereby
L.D. 231/01) that foresees, inter alia, specific Protocols aimed at
avoiding bribery and corruption issues.

The Bank’s organisational framework consists of a set of rules,
structures and procedures that ensure the proper functioningof the Model; it is a structured, comprehensive system withthe aim of guaranteeing the prevention of unlawful conduct,
including conduct regulated by specific legislation on theadministrative liability of entities.

Governance, Risk and Compliance

Anti-bribery and corruption

UniCredit S.p.A. has adopted a Model, pursuant to L.D. 231/01,
which is integrated within the rules, procedures and control
systems already in place and applied in the Bank. In drawing up
the Model, the Bank especially considered the Italian Banking
Association (ABI) guidelines.

Our Impact– Update of framework in light of legislative
developments; review of Know Your Customer(KYC) requirements for specific clients; progressive
implementation of new AML tool

Organisation and Management
Model pursuant to Italian Legislative
Decree 231/2001

Our Strategy– The testing of the transaction monitoring tool;
the implementation of additional transaction
monitoring controls as well as of the first level
controls catalogue

Our Context

Key achievements 2023

i. General Section: as required by new L.D. 24/2023(implementing the Directive on Whistleblowing), somechanges were made (i) to highlight the strict confidentiality
regime that must be applied to reports received via
whistleblowing channels (already in place), and (ii) to makeexplicit the extension of the protection measures to all
the involved subjects and the strengthening of disciplinary
sanctions against the authors of retaliation and defamation.
ii. General and Special Section: in compliance with the new
L.D. 19/2023 (implementing the Directive on cross-borderconversions, mergers and divisions) a new offence “False
or omitted declarations for the issuance of the preliminary
certificate” was introduced (the preliminary certificate mustbe issued by the Notary who must certify the correctness ofcross-border transactions).

S.61

261

Compliance(ii) CAP Simplified, executed through:Key achievements 2023
– The update of the Model following the insourcingof UniCredit Services S.C.p.A. and the further
introduction of new crimes in Legislative Decree
231/2001

Key priorities 2024
– Alignment of the Model following the change inthe corporate governance and the introductionof new crimes in L.D. 231/2001. Checks oncompliance with the Decision Protocols

Antitrust
Since 2016, UniCredit defined the Compliance-Antitrust
Programme at Group level (hereinafter CAP) aimed at:– increasing the governance of antitrust matters at both Legal
Entity and Group level– strengthening compliance culture and enhancing the Group’s
reputation on the markets– managing the risk of both antitrust breaches and penalties
more effectively– the local implementation of the GP Single Antitrust Rulebook(unless already in force)– commitment of senior management on antitrust rules– tailor-made training sessions designed for employees
In 2023 the Compliance Antitrust Programme Standard wasrefreshed in 11 Group Companies (in Austria, Bulgaria, Croatia,
Czech Republic, Hungary, Italy, Romania and Slovakia) andlaunched to one additional Company in Austria.

Key achievements 2023
– Compliance Antitrust Programme Standard wasrefreshed in 11 Group Companies (in Austria,
Bulgaria, Croatia, Czech Republic, Hungary, Italy,
Romania and Slovakia) and launched to one
additional Company in Austria

Key priorities 2024
– Update of the Group Policy Single
Antitrust Rulebook in light of the recent
regulatory developments

The CAP is subject to monitoring and periodic review to ensure
its continued effectivenessBased on the antitrust sensitivity of the relevant Group
Companies, the following two alternative forms of CAP are
carried out:(i) CAP Standard, performed through:– a dedicated mapping of any sensitive company functions (i.e.
those exposed to potential antitrust risks, including but notlimited to business ones)– targeted interviews of key people of the impacted functions
to identify specific antitrust risks– a dedicated assessment of the antitrust risks and subsequentroll-out of internal processes and controls (where needed)– tailor-made training sessions assigned to selected employees
within the Functions affected by antitrust risks

262

S.62

UniCredit 2023 Integrated ReportOverview
Our Context

Main legal actions regarding anti-competitive behaviour,
antitrust and monopoly practices

Table 2: Risk Hazard Events at Collateral Level
Italy

In April 2016, the Italian Competition Authority, Autorita’ Garante della Concorrenza e del Mercato (AGCM) notified UniCredit
and 10 other banks of the extension of proceedings I/794 ABI/SEDA opened in January vis-à-vis the Italian Banking Association(ABI). The proceedings are aimed at ascertaining the existence of alleged concerted practices with reference to the Sepa
Compliant Electronic Database Alignment system (SEDA). On 29 October 2021, the AGCM appealed the decision of the
Tribunale Amministrativo Regionale (TAR) before the Consiglio di Stato.

Governance, Risk and Compliance

Description

Our Impact

Country

Update: In February 2023, the Consiglio di Stato rejected the AGCM appeal, confirming the above-mentioned TAR decision.
Italy andGermany

On 31 January 2019, UniCredit S.p.A. and UniCredit Bank GmbH (HVB) received a Statement of Objections from the European
Commission referring to the investigation by the European Commission of a suspected violation of antitrust rules in relation
to European government bonds. The subject matter of the investigation extended to certain periods from 2007 to 2011 andincluded activities by UCB GmbH (HVB) between September and November 2011. The European Commission concluded its
investigation by issuance of its decision on 20 May 2021. The decision provides for the imposition of a fine of €69.4 million on
the parent company UniCredit S.p.A. and UCB GmbH (HVB). The parent company UniCredit S.p.A. and UniCredit Bank GmbH
(HVB) contested the European Commission’s findings and brought an action for the annulment of its decision before theGeneral Court of the European Union on 30 July 2021.
Update: The appeal is still pending.
On 27 November 2017, the Competition Council carried out dawn raids on the headquarters of several banks (including
UniCredit Bank SA), financial non-banking institutions, leasing companies (including UniCredit Leasing Corporation IFN SA and
UniCredit Leasing Fleet Management), professional associations and employer associations working in the financial services
market. No further action was taken vis-à-vis the Bank following the raids, but two separate antitrust proceedings started
vis-à-vis UniCredit Leasing Corporation IFN SA and Leasing Fleet Management respectively.

AnnexesRomania

Supplement

Regarding Leasing Fleet Management, on 28 July 2021, the Competition Council issued its decision in which the commitments
submitted by the parties were accepted. The proceeding was closed and no sanction applied.
Regarding Leasing Corporation IFN SA (UCLC), on 8 April 2021, UCLC was served with a fully motivated decision of theCompetition Council to close its investigation and sanction UCLC for an alleged exchange of sensitive commercial information
which took place for a limited period during 2014 within the local industry professional association. The sanction applied
to UCLC amounted to approximately €1.8 million and was paid in April 2021 within the deadline. UCLC appealed the
Authority’s decision before Bucharest Court of Appeal (first instance court) to seek its annulment, on both procedural andsubstantive grounds.
Update: In October 2023 the Court rejected the appeal that UCLC submitted. After the publication of the full Court’s decision(that is still pending and could take 12 months) UCLC will formulate a second appeal before the Supreme Court.

UniCredit 2023 Integrated ReportS.63

Our Strategy012

Number of new legal actions/disputes commenced in 2023 and concluded in 2023
Number of legal actions/disputes already existing and concluded in 2023
Number of legal actions already existing but not yet concluded263

Compliance

Conflicts of interest
As the Bank provides a wide range of products and services toa diversified client base, the different kinds of relations andstakeholders consequently expose it to a number of potential
conflicts of interest (COI).

At Group and/or Legal Entity level, the process for a proper
management of COI consists of:– definition and maintenance of the COI management model– identification of events that can result in COI

The types of conflict of interest identified are the following:– identification of both the organisational measures andbehaviours suitable to mitigate the relevant COI– conflicts in the provision of investment services and activities– record-keeping of COI– conflicts in the provision of insurance productdistribution services– first and second level controls, in accordance with
Global Policy– conflicts related to the issuance of financial instruments– conflicts arising from the administration and/or contribution
to financial benchmarks– conflicts arising from the provision of
investment recommendations– conflicts in the provision of banking services and activities– conflicts arising from employees’ personal interests

Key achievements 2023
– Review of the Global Conflict of Interest Policy
embedding the new Operative process inplace on COI disclosure supported also by new
IT functionalities– organisational conflicts

Key priorities 2024

– conflicts arising from the assignment of services and/or
activities to external providers– Complete the roll-out of the OBI IT tool in the
Legal Entities

The Global Policy on COI defines principles and circumstancesthat could generate an actual or a potentially relevant COI on
the basis of current regulatory framework and market bestpractice.
The updated version of the Global Policy on COI simplifies andbetter clarifies some terms of disclosure provided to customers
in relation to MiFID II requirements with a consequent updateof the COI Matrix (the list of potential cases of COI identified on
the basis of the activities and services provided by Group Legal
Entities).
In addition, during 2023 the Global Operational Regulation(GOR) related to the COI arising from employees’ personal
business interests (Outside Business Interest – OBI) has beenreviewed. Leveraging on the adoption of the new Group OBI
Tool (DET: Declaration and Evaluation Tool), a new Risk BasedApproach (RBA) has been implemented. The process is more
focused on specific Target Population (sensitive positions
and managerial roles). New GOR on OBI has been reviewed inalignment with RBA and issued in UniCredit S.p.A. in December
2023. Implementation in all Legal Entities in perimeter isongoing and will be finalised in the first part of 2024.

264

S.64

UniCredit 2023 Integrated ReportOverview

UniCredit ensures the compliance with data protection rules
set forth both in the GDPR (EU Regulation 670/2016) and in
Italian Legislative Decree 196/2003 updated by the Italian
Legislative Decree 101/2018. UniCredit’s approach is describedin the Global Rules on Privacy (latest update December 2023)
with reference to the management of the appointment of
Data Processors (GOR), Right to Be Forgotten (GOR) and Data
Protection Guidelines on cookies and tracking tools.

The Group’s approach to whistleblowing is set out in a specific
Global policy. In order to promote a corporate culture based on
ethical behaviour and good corporate governance, the policy
governs reports of unacceptable conduct by employees within
the Group.

– Further enhancement of Right to Be Forgotten
mechanism with review of deletion rules andextension to further IT applications (e.g. AML)
– Support to the business in relevant Group
Digital projects, consistently with the Privacy
by Design principle

Key priorities 2024

– Preliminary impact assessment of the newEuropean Data Protection Board guidelines
on “Right of Access” and issuing of relevantGroup guidelines

Management of this process is designed to ensure the greatest
possible protection and confidentiality of the identity of thewhistleblower and of the accused individual and to prevent any
possible retaliatory or discriminatory behaviour in response to
the report.
At the local level, UniCredit has identified a reference
person in Compliance as the person responsible for internal
whistleblowing systems and for ensuring that the procedure isfollowed correctly.
UniCredit provides the following channels (some of which areavailable 24 hours a day) for employees and third parties tomake whistleblowing reports, anonymously if desired:– by phone – the UniCredit SpeakUp line allows avoice message report to be left, with the option ofremaining anonymous– on the website, where the UniCredit SpeakUp web service
allows a written report to be submitted, with the option ofremaining anonymous

Supplement– Fine-tuning of Right to Be Forgotten mechanism;
Record of Processing Activities (RoPA) data quality
enhancement and certification campaign– define adequate communication channels for the receipt,
analysis and use of the reports

Annexes– Definition of data protection organisationalmodel to cover GDPR risks in former UCS foreign
branches (in particular in CEE area)– grant a corporate environment where employees feel free toreport any unacceptable conduct

Governance, Risk and Compliance

Key achievements 2023

The policy is intended to:

Our Impact

At Group level, the Data Protection Officer (DPO) Community
ensures that the DPOs/Privacy Referents of the various
Legal Entities and Foreign Branches share their opinions
on different issues, experiences, lessons learnt andlocal/European regulatory evolutions.

Our Strategy

Whistleblowing

Our Context

Privacy management– by email to the UniCredit Italy Whistleblowing email address– by letter to the dedicated UniCredit Italy whistleblowing
postal address– by physical meeting– Data Protection awareness initiatives on Privacy
requirements (training, tone from the top)

UniCredit 2023 Integrated Report

S.65

265

Compliance

At Group level, the Whistleblower’s Champion of every Legal
Entity annually makes a report on the internal whistleblowing
system, with aggregated information on the actions taken andresults achieved, on the observance of confidentiality and nonretaliation principles.
With the purpose of assessing any possible offence against
regulations, the UniCredit S.p.A. Supervisory Body, in accordancewith L.D. 231/01, requested a monthly report session to theCompliance structure in charge of receiving whistleblowing
reports and also regularly provides the Board of Statutory
Auditors with an update on any whistleblowing cases notconsidered relevant under L.D. 231/01.
The Group undertakes to provide all employees with mandatory,
up-to-date training on whistleblowing, outlining the relevant
procedures to follow and potential consequences should
misconduct occur and is committed to promoting the regularglobal communication, implementation and enforcement of thisrule across the Group worldwide and including third parties.

Information about internal channels, process description
and external channels provided by the National Competent
Authority are available for third parties on the Group
Institutional website and on the UniCredit commercial website
and employees also in the section dedicated to whistleblowing
on the Group’s intranet.
In 2023, a new version of the Global Policy has been issued.
Main changes are related to:– expansion of people who can make a report– extension to other persons of the protection measuresreserved for the whistleblower– expansion of the concept of retaliation

Key achievements 2023
– Update of the Whistleblowing Global Ruleaccording to the European Directive– Launch of a communication campaign on
new requirements

Key priorities 2024
– Full implementation of the 2023 improvements

Number of cases by category, 2023
Reports received resulting in real policy or requirement breaches

159

Closed reported cases as at 31 December 2023

185

Categories of closed cases

266

Anti-Bribery and Corruption

4

Financial Sanctions

0Anti-money Laundering

10

Fraud

22

MiFID

3

Conflict of Interest

5

Banking Transparency & Consumer Protection

5

Privacy & Banking Secrecy

4Anti-trust

0

Failure to comply with HR regulations

62

Failure to comply with internal regulations (and other inappropriate behaviour)

45

Other

25

Pending reported cases as at 31 December 2023

33

Total reported cases

218

S.66

UniCredit 2023 Integrated ReportOverview
Our Context

Stakeholder Engagement
Main stakeholder
involvedA

Definition

Type ofinvolvement

Main reference chapterof the Integrated Report

Digitalisationand innovation

Clients Communities
Colleagues Investors

Being proactive, acting promptly andpromoting innovation: contributing to socialand economic progress and innovation as wellas the well-being of countries, developing
products and services to support researchand innovation intensive industries, byleveraging analytics, as they increasingly
becoming significant, with positive andnegative implications.
Being close to clients, understanding theirneeds and promptly developing products
and services for families and companies that
support their prosperity and growth (e.g.
innovation, internationalisation, research anddevelopment) and are good value for money.
Building and maintaining an environment inwhich all data and information confidentiality,
integrity and availability are protectedfrom relevant cyber threats and digitaltrends as well as implementing security
mechanisms that aim to ensure the highest
standards and ethical principles related toresponsible artificial intelligence systems andinformation management.
Developing a strategy that incorporates
transition and physical risks arising from achanging climate and environmental issues,
while at the same time seizing opportunities
in order to mitigate the impacts on global
temperatures, enhance climate resilience,protect and restore nature.
Bearing in mind the impacts of political andsocietal changes on all our banking businessactivities both in terms of demand and supplyof products and services and well-being forclients and colleagues.

Contributed– Our Strategy

All– Our Strategy– Social and Relationship
CapitalContributed– Intellectual Capital– Risk Management andCompliance

Caused by theGroup anddirectly linked
to its business
relationships– Our Strategy

Contributed– Our Context– Our Context– Natural Capital

Supplement

Political andsocietal change

All

CausedAnnexes

Climate andenvironmental
impacts

AllB– Social and Relationship
CapitalGovernance, Risk and Compliance

Digital security

Clients– Intellectual Capital

Our Impact

Value to clients

Our Strategy

Material topic– Risk Management andCompliance– Social and Relationship
CapitalA. Main stakeholder groups that raised and/or is affected by the material topic.
B. Includes Colleagues, Clients, Communities, Investors/Shareholders and Regulators.

UniCredit 2023 Integrated Report

S.67

267

Material Topics

Material topic

Main stakeholder
involvedA

Definition

Type ofinvolvement

Main reference chapterof the Integrated Report

Lean andsolid bank

All

Being a stable and solid reference point for
all stakeholders basing all our interactions
on transparency and using effective andclear communications. A commitment tobuild a long-term foundation for financial
stability while supporting all stakeholders in
an uncertain environment, provide tangible
support for regulatory discussions, propose
and offer simple and easy to understandproducts/services, disclose relevant
information to understand our competitive
positioning and business trends
Fostering and improving a Culture of inclusion,
fairness and respect by promoting equal
opportunities in the workplace and valuing
employees’ well-being so all colleagues canmaximise their potential. A commitment toenhancing colleagues’ professional skills andaccelerating their professional development
while managing the impacts that global trends
such as digitisation, demographic changes,
and pandemics have on the jobs to ensure that
employees are able to perform new and futurejobs well.
Basing our business practices on strong
ethics fundamentals and high standards
for fair business behaviour: recognising theimportance of environmental, social andgovernance issues and embedding them into
specific business strategies; respecting andsupporting human rights within our sphere of
influence; respecting and maintaining a faircompetition and responsible procurement
practices; reinforcing a Culture of complianceand attention to colleagues’ health and safety
at all levels of our organisation.
Respecting and maintaining a fair competition,
ensuring transparent management of taxation
matters, rigorous and accountable reportingon non-financial performance in compliancewith public policy practices, protecting andconsolidating the corporate reputation against
any illegal activities aimed at evading theimposition or payment of a tax.
Understanding the priorities of communities,
supporting sectors and enterprises which cancreate environmental, social, and economic
positive impacts for individuals and thecommunity, fostering a just and fair transition.

Caused– GovernanceDiversity,
inclusion andemployeeengagement

Colleagues, investors,
communities

Business ethics

All

Responsible
tax practices

Regulators
Communities

Positive impact
on society

Communities
Investors– Our Strategy– Financial Capital– Risk Management andCompliance– Social and Relationship
Capital

Caused– Human Capital

Caused by theGroup anddirectly linked
to its business
relationships– Risk Management andCompliance

Caused– Financial Capital

Caused– Social and Relationship
Capital– Natural Capital– Social and Relationship
Capital– Natural Capital

A. Main stakeholder groups that raised and/or is affected by the material topic.

268

S.68

UniCredit 2023 Integrated ReportOverview
Our Context

Human Capital

Our Strategy

Portrait in numbersA
The data in this part of the Supplement applies to UniCredit employees (headcount) as at 31 December 2023,
excluding external staff (e.g. interns or consultants). Numbers reflect all employees of fully consolidated entities
and represent 100% of the population unless otherwise noted.

Men
2023

Head count2023

Head count
2022

Italy
Germany
Austria
Bosnia and Herzegovina
Bulgaria
Croatia
Czech RepublicHungary
Romania
RussiaSerbiaSlovenia
OtherB
Total

49.09%
52.78%
56.36%
76.74%
77.20%
74.55%
63.58%
66.92%
73.60%
64.31%
67.59%
66.79%
64.02%
57.58%

50.91%
47.22%
43.64%
23.26%
22.80%
25.45%
36.42%
33.08%
26.40%
35.69%
32.41%
33.21%
35.98%
42.42%

32,864
11,751
5,499
1,539
4,049
3,430
3,451
2,095
5,268
3,595
1,370
521
1,148
76,58034,42813,332
5,860
1,598
4,369
3,549
3,581
2,131
5,425
3,937
1,387
550
1,201
81,348

A. Numbers may not add up due to rounding.
B. Other includes: Luxembourg, Poland, Slovakia, UK and USA.

Employment tierSenior leader
Executive
Middle management
Staff
Total

2023

2022

0.14%
0.44%
12.27%
87.15%
100.00%

0.15%
0.46%
12.04%
87.35%
100.00%

2023

2022

32.11%
67.89%

31.40%
68.60%

22.99%
77.01%

23.99%
76.01%

35.43%
64.57%

34.49%
65.51%

60.91%
39.09%

60.60%
39.40%

Percentage of employees by employment tier and gender 2023-2022
Employment tier and gender

Senior leader– Female– MaleExecutive– Female– MaleMiddle management– Female– MaleStaff– Female– MaleUniCredit 2023 Integrated Report

S.69

269

Supplement

Percentage of employees by employment tier 2023-2022

Annexes

Women
2023

Governance, Risk and ComplianceCountry

Our Impact

Percentage and number of employees by country and gender 2023-2022

Human Capital

Percentage of employees by gender and contract type 2023-2022
Gender2023

Female
Male
Total

2022

Fixed term

Permanent

Fixed term

Permanent

1.62%
1.01%
2.62%

55.96%
41.42%
97.38%

1.80%
1.02%
2.82%

55.44%
41.74%
97.18%

Fixed term

Permanent

Fixed term

Permanent

0.00%
2.40%
5.51%
7.41%
5.29%
0.47%
8.32%
0.10%
4.20%
2.81%
6.28%
17.47%
25.44%
2.62%

100.00%97.60%
94.49%
92.59%
94.71%
99.53%
91.68%
99.90%
95.80%
97.19%
93.72%
82.53%
74.56%
97.38%

0.00%
2.21%
4.32%
6.57%
5.70%
1.27%
10.11%
0.09%
6.19%
3.99%
7.43%
17.82%
23.98%
2.82%

100.00%97.79%
95.68%
93.43%
94.30%
98.73%
89.89%
99.91%
93.81%
96.01%
92.57%
82.18%
76.02%
97.18%

Percentage of employees by contract type and country 2023-2022
Country

2023

Italy
Germany
Austria
Bosnia and Herzegovina
Bulgaria
Croatia
Czech RepublicHungary
Romania
RussiaSerbiaSlovenia
OtherA
Total

2022

A. Other includes: Luxembourg, Poland, Slovakia, UK and USA.

Percentage of employees by employment tier 2023-2022
Employment tierSenior leader
Executive
Middle management
Staff
Total

2023

2022

under 30

age 31-50

over 50

under 30

age 31-50

over 50

0.00%
0.00%
0.95%
99.05%
100.00%

0.11%
0.41%
13.02%
86.46%
100.00%

0.24%
0.61%
14.64%
84.51%
100.00%

0.00%
0.00%
1.06%
98.94%
100.00%

0.12%
0.50%
12.93%
86.45%
100.00%

0.24%
0.53%
14.14%
85.09%
100.00%Turnover for incoming employees by country 2023-2022A
Country

Italy
Germany
Austria
Bosnia and Herzegovina
Bulgaria
Croatia
Czech RepublicHungary
Romania
RussiaSerbiaSlovenia
OtherB
Total

2023

2022

Number

Percentage

Number

Percentage

788
373
271
141
325
305
272
200
654
418
194
57
81
4,079

2.29%
2.80%
4.62%
8.82%
7.44%
8.59%
7.60%
9.39%
12.06%
10.62%
13.99%
10.36%
6.74%
5.01%

1.458
406
236
132
480
362
446
306
973
520
262
78
169
5,828

4.12%
2.81%
3.42%
8.14%
10.65%
9.75%
12.28%
14.35%
17.27%
11.43%
19.15%
13.81%
13.82%
6.80%

A. Turnover rates are calculated as follows: for incoming employees (employees hired)/(total employees at the end of the year) × 100.
B. Other includes: Luxembourg, Poland, Slovakia, UK and USA.

270

S.70

UniCredit 2023 Integrated ReportOverviewCountry

2022
Percentage

2,375
1,982
682
199
644
425
396
235
803
760
215
85
133
8,934

6.90%
14.87%
11.64%
12.45%
14.74%
11.98%
11.06%
11.03%
14.80%
19.30%
15.50%
15.45%
11.07%
10.98%

2,394
1,571
1,319
155
617
538
502
307
1,166
1,134
243
92
142
10,1806.77%
10.87%
19.10%
9.56%
13.69%
14.50%
13.83%
14.40%
20.70%
24.92%
17.76%
16.28%
11.61%
11.88%

A. Turnover rates are calculated as follows: for outgoing employees (employees who left the Group)/(employees at the end of the year) × 100.
B. Other includes: Luxembourg, Poland, Slovakia, UK and USA.

Turnover for incoming employees by genderA and ageB 2023-2022
GenderFemaleMale

2023

Percentage

2,294
1,785

4.93%
5.13%

3,327
2,501

6.83%
6.76%

Number

Percentage

Number

Percentage

2,203
1,529
347

24.61%
3.46%
1.23%

3,081
2,389
358

32.75%
5.06%
1.23%

2023

2022

A. Turnover rates are calculated as follows: incoming employees (employees hired) by gender/(employees by gender at the end of the year) × 100.
B. Turnover rates are calculated as follows: for incoming employees (employees hired) by age/(employees by age at the end of the year) × 100.

Turnover for outgoing employees by genderA and ageB 2023-2022
GenderFemaleMale
Age

Under 30
Age 31-50
Over 50

2023

2022

Number

Percentage

Number

Percentage

4,821
4,113

10.35%
11.83%

5,452
4,728

11.20%
12.78%

Number

Percentage

Number

Percentage

1,527
3,393
4,014

17.06%
7.68%
14.22%

1,974
4,029
4,177

20.98%
8.53%
14.40%

2023

2022

A. Turnover rates are calculated as follows: for outgoing employees (employees who left the Group) by gender/(employees by gender at theend of the year) × 100.
B. Turnover rates are calculated as follows: for outgoing employees (employees who left the Group) by age/(employees by age at the end of
the year) × 100.

UniCredit 2023 Integrated Report

S.71

271

Supplement

NumberAnnexes

Percentage

Age

Under 30
Age 31-50
Over 50

2022

NumberGovernance, Risk and Compliance

NumberOur Impact

Percentage

Our Strategy

Italy
Germany
Austria
Bosnia and Herzegovina
Bulgaria
Croatia
Czech RepublicHungary
Romania
RussiaSerbiaSlovenia
OtherB
Total

2023
NumberOur Context

Turnover for outgoing employees by country 2023-2022A

Human Capital

Percentage of employees by gender and employment status 2023-2022
Gender2023

Female
Male
Total

2022

Part-time

Full-timePart-time

Full-time

12.37%
1.59%
13.95%

45.21%
40.84%
86.05%

12.53%
1.60%
14.13%

44.71%
41.16%
85.87%

Differential A between female and male employee gross salariesB
by country and employment tier 2023-2022C
The percentage represents the weighted averages of women’s average gross salary compared to men’s.
Country

Italy
Germany
Austria
Bosnia and Herzegovina
Bulgaria
Croatia
Czech RepublicHungary
Romania
RussiaSerbiaSlovenia

2023

2022

Executive

Middlemanagement

Staff

Executive

Middlemanagement

Staff

99.21%
85.91%
Not applicable
126.42%
Not applicable
97.00%
Not applicable
104.76%132.50%85.64%
Not applicableNot applicable

92.15%
87.51%
95.55%
93.49%
87.48%
89.94%
86.70%
88.32%
101.09%99.33%
96.69%
89.49%

93.66%
92.71%
85.35%
87.29%
74.55%
91.28%
81.25%
80.54%
81.01%
68.03%
73.40%
89.60%

99.80%
85.87%
0.00%
126.42%
Not applicable
103.02%103.17%97.83%
105.44%78.45%
Not applicableNot applicable

91.07%
87.45%
94.13%
95.00%
87.59%
92.76%
100.00%90.59%
91.41%
92.37%
99.84%
97.86%

92.16%
90.87%
82.54%
88.26%
75.21%
89.39%
72.30%
83.98%
77.77%
68.37%
72.61%
90.41%

A. The ratios were calculated as follows: (total gross salary of female employees/total females)/(total gross salary of male
employees/total males).
B. Gross salary: the full year fixed amount paid to an employee for performing his/her duties. It includes allowances provided according
to specific positions.
C. Data represents 90.3% of the population.

Differential A between female and male employee total remunerationBby country and employment tier 2023-2022C
The percentage represents the weighted averages of women’s average remuneration compared to men’s.
Country

Italy
Germany
Austria
Bosnia and Herzegovina
Bulgaria
Croatia
Czech RepublicHungary
Romania
RussiaSerbiaSlovenia

2023

2022

Executive

Middlemanagement

Staff

Executive

Middlemanagement

Staff

95.29%
89.12%
Not applicable
112.95%
Not applicable
88.33%
Not applicable
115.28%140.65%59.38%
Not applicableNot applicable

88.66%
81.04%
91.82%
95.14%
86.12%
86.49%
80.74%
85.89%
101.19%96.76%
97.56%
93.14%

93.11%
91.22%
84.02%
86.07%
74.68%
90.16%
79.47%
80.04%
80.10%
69.01%
73.80%
90.31%

94.98%
78.66%
0.00%
82.91%
Not applicable
98.84%
84.01%
108.30%108.24%69.40%
Not applicableNot applicable

87.99%
80.91%
91.07%
94.99%
87.07%
89.30%
91.40%
90.48%
91.03%
89.08%
97.50%
98.49%

91.85%
89.05%
81.33%
87.24%
75.30%
89.71%
71.01%
84.38%
77.64%
69.99%
72.70%
90.94%

A. The ratios were calculated as follows: (total remuneration of female employees/total females)/(total remuneration of male
employees/total males).
B. Total remuneration: gross salary plus additional amounts such as bonuses including cash and/or available equity shares to reward
individual performance and company’s results and any other amounts which are not one-off payments.
C. Data represents 90.3% of the population.

272

S.72

UniCredit 2023 Integrated ReportOverview

Female

Male

Total

Female

Male

Total

Our Context

14.58
20.88
25.22
35.67
34.84

12.04
21.80
23.61
37.06
34.36

12.86
21.59
24.18
36.21
34.64

15.23
13.59
21.18
31.47
30.67

8.49
15.49
19.08
31.82
29.27

10.61
15.04
19.81
31.61
30.07

Our Strategy

of association and collective bargaining. We continuallymonitor our engagement processes and outcomes Group-wide,
sharing best practices to strengthen social dialogue across all
Group countries.

Our Impact

Training hours per capita by employment tier and gender 2023-2022
Employment tierSenior leadership
Senior executive
Middle management
Staff
Total

2023

Industrial Relations

At the heart of our drive to maintain effective and mutually
beneficial industrial relations is our unwavering commitment torespecting local laws and the terms and conditions of collective
agreements, including employees’ rights to exercise freedom

Nationally, employees’ interests can be represented by trades
unions, works councils or other representatives in line with theapplicable labour laws and local industrial relations systems.
At an international level, employees are represented by theEuropean Works Council (EWC). Since it was first established in
2007, the EWC has ensured that our workforce has the right toinformation and consultation on transnational Group topics that
could significantly affect employees’ interests.

Governance, Risk and Compliance

Maintaining proactive and regular dialogue with our workforce
strengthens UniCredit’s spirit of collaboration and helps
us unlock value creation. We have a proud track record ofconsistent engagement with our people at both national andinternational levels across the Group – and this has enabled
us to manage the many market challenges we have faced over
the years.

2022

Percentage of employees covered by collective bargaining agreements 2023-2022A
2022

100%

100%

38.29%
Not applicable

38.59%
Not applicable100%
Not applicable100%
Not applicable57%
Not applicable59%
Not applicable100%
Not applicable100%
Not applicable95%
Not applicableNot applicable95%
Not applicableNot applicable100%
Not applicable100%
Not applicable

100%
100%

100%
Not applicable
100%

97%
Not applicable96%
Not applicable

A. The collective bargaining agreement refers to national, sector and company level.

UniCredit 2023 Integrated Report

S.73

273

Supplement

2023

Italy
Germany
UniCredit Bank AG
Wealthcap Kapitalverwaltungsgesellschaft GmbH
UniCredit Leasing GmbH
UniCredit Direct Services GmbH
Austria
Bosnia and Herzegovina
Bulgaria
UniCredit Bulbank AD
UniCredit Consumer Financing AD
UniCredit Leasing AD
Croatia
Zagrebačka Banka DD
UniCredit Leasing Croatia doo za Leasing
Czech Republic
UniCredit Bank Czech Republic and Slovakia as
UniCredit Leasing CZ as
Hungary
Romania
UniCredit Bank SA
UniCredit Consumer Financing IFN SA
UniCredit Leasing Corporation IFN SA
UniCredit Leasing Fleet Management Srl
RussiaSerbiaSlovenia
Slovakia
UniCredit Bank Czech Republic and Slovakia as
UniCredit Leasing Slovakia as

Annexes

CountryHuman Capital

Notice period typically provided to employees and their elected representatives prior to
implementing significant operational changes that could substantially affect them, 2023
Country

Italy
Germany
Austria
Bosnia and Herzegovina
UniCredit Bank DD
UniCredit Bank and Banja Luka
Bulgaria
UniCredit Bulbank AD
UniCredit Consumer Financing AD
UniCredit Leasing AD
Croatia
Zagrebačka Banka DD
UniCredit Leasing Croatia doo za Leasing
Czech Republic
UniCredit Bank Czech Republic and Slovakia as
UniCredit Leasing CZ as
Hungary
Romania
RussiaSerbiaSlovenia
Slovakia
UniCredit Bank Czech Republic and Slovakia as
UniCredit Leasing Slovakia as

274

S.74

Notice period

Legal number ofdays notice

Notice period
specified incollective
bargaining
agreements

Yes
No
No

25
Not applicableNot applicable

Yes
No
No

Yes

No

Yes

30 (15 days if less than
five years of service)
Minimum 30 days
(eventually more depending
on length of service)

Yes
Yes

45
45

Yes
No

Yes

14

Yes

Yes

60

Yes

Yes
Yes
Yes
No
Yes

30
20
60
Not applicable
8

No
Yes
No
No
Yes

Yes

28

No

No

UniCredit 2023 Integrated ReportOverview

Contribution from employees

2% or 3%B

Minimum 0.5%

Defined contribution plan

Before 2003: 1.75% of grossincome up to a gross yearly
income of €63,084
After 2003: 2.5% of grossincome up to a gross yearly
income of €63,084
4.36% of the agreed
annual income
1 gross monthly salary

Before 2003: 1.75% of grossincome up to a gross yearly
income of €63,084
After 2003: 2.5% of grossincome up to a gross yearly
income of €63,084
2.14% of the agreed
annual income
2.5% of gross income up
to gross yearly income of€63,084

2.9% or more
Depending on length of Service

Arrangement between
the pension fund andemployees are made on an
individual basis

Wealthcap Kapitalverwaltungsgesellschaft
GmbH

UniCredit Leasing GmbH
UniCredit Direct Services GmbHFirst and senior vice presidents

Defined contribution plan

No plans
Not applicableNot applicable
No plans
Not applicableNot applicable
No plans
Not applicableNot applicable
No plans
Not applicableNot applicable
No plans
Not applicableNot applicable
No plans
Not applicableNot applicable
Defined contribution plan 7% of the monthly base salary 7% of the monthly base salary
No plans
Not applicableNot applicable
Defined contribution plan
45%
55%

UniCredit 2023 Integrated Report

S.75

Supplement

A. The reported contribution percentages refer to the Defined contribution section of the Fondo Pensione per il Personale delle Aziende del Gruppo
UniCredit. This Pension Fund is the unique fund open to new participants.
B. For newly hired employees with apprenticeship contracts (pursuant to Art. 33 – National Collective Bargaining Agreement of ABI, 3 March 2015)as amended by the Renewal Agreement of 19 December 2019, the Group in the Team 23 Agreement of 2 April 2020 in Art 14 (Supplementary
pension), has provided for a total contribution of 4% for the first three years following recruitment.

Annexes

Austria
UniCredit Bank Austria AG
Schoellerbank Aktiengesellschaf
Card Complete Service Bank AG
UniCredit Leasing (Austria) GmbH
Bosnia and Herzegovina
Bulgaria
Croatia
Czeck RepublicHungary
Romania
RussiaSerbiaSlovenia

Defined contribution plan

Governance, Risk and ComplianceContribution from employer

Defined contribution plan

Our Impact

Principal retirement plans

ItalyA
Germany
UniCredit Bank AG

Our Strategy

Country

Our Context

Retirement plans offered to employees 2023

275

Human Capital

Transition assistance programmes to support
employees1 2023
Across the Group, we have a number of transition assistanceprogrammes in place to facilitate employees’ continued
employability and/or manage the end of their careers due toretirement or termination. For example, in Italy and Germany
we provide pre-retirement planning for retirees and specificreskilling programmes in order to help employees continue towork in the Group.
In CE&EE countries such as Russia, we provide an outplacement
programme that aims to help employees leaving the Bank todevelop professional CVs and prepare for job interviews.

Health and safety management
We are totally committed to the health and safety of ourpeople. Our aim is to provide optimal conditions for employees’
health, safety and well-being in the workplace – avoiding or
reducing to the minimum their possible exposure to the risks,
accidents and occupational diseases associated with work.
To reach and maintain this goal, we have adopted policies,
procedures and controls in compliance with EU directives, local
laws, regulations and signed agreements, which ensure anadequate working environment and respect for the individual
dignity of all employees.
Our organisational and management framework ensures
the protection of personnel in all workplaces. It includes
an effective company-wide system for the identification,assessment, prevention, protection from and prompt
elimination of risks and dangers, which are monitored andanalysed as follows:– compliance with the technical and structural regulations
relating to equipment, workplaces, chemical, physical andbiological agents– health surveillance activities, carried out by UniCredit’s
occupational physicians, and the drafting of therelated protocols– information and training activities for all employees throughspecific training and updated modules on health and safety,
emergency management, first aid and work-related stress– supervision of employees’ compliance with procedures andinstructions for working safely– periodic checks on the application and effectiveness of theprocedures adopted
Employees are able to report any dangers or malfunctions
via a range of channels including by e-mail and a dedicated“ticket remedy” tool. Reports are then managed by thecompetent function.
In addition, during 2023 we continued to support measures toensure the health and safety of our employees and customers
in relation to Covid-19, including:– support for all colleagues from competent physicians,
through the appropriate channel– availability of personal protective equipment
where appropriate
In compliance with local regulations and with the support ofspecialised consultants, we have continued to update specificprotocols regarding the necessary prevention and protection
measures for the containment of Covid-19 infection.
In addition to the adoption of appropriate behaviours andpersonal protective equipment, we continued to provide flexible
arrangements to encourage remote working where possible,
until the end of the emergency was declared. Our support was
extended beyond that point for those in the most vulnerable
categories (fragile people and pregnant women).

– risk assessment activities and preparation of any necessary
prevention and protection measures– organisational activities regarding the management ofemergencies, first aid, procurement contracts, periodic
meetings on safety, consultations with the workers’
safety representatives (RLS) and the Group’s formal joint
management-worker committees

1. Some programmes are provided only in the case of company restructuring/reorganisation.

276

S.76

UniCredit 2023 Integrated ReportOverview
Our Context

Formal joint management-worker health and safety committees 2023
Country

Formal joint management-worker health and safety committee

Our Strategy

Yes
Yes
Yes
No
Yes
Yes
Yes
No
Yes
No
No
No

Our Impact

Italy
Germany
Austria
Bosnia and Herzegovina
Bulgaria
Croatia
Czech Republic A
Hungary
Romania
RussiaSerbiaSlovenia

Number of injuries

2023

2022

Number of fatalities as a result of work-related injuriesB
The number of high-consequence work-related injuries (excluding fatalities)C
The number of recordable work-related injuriesD
Rates
Rate of fatalities as a result of work-related injuriesE
Rate of high-consequence work-related injuries (excluding fatalities)FRate of recordable work-related injuriesG
Hours workedH

0
5
148

0
2
146

0
0.04
1.21
122,413,209

0
0.02
1.18
123,629,487

S.77

Supplement

UniCredit 2023 Integrated Report

Annexes

A. This data was drawn from a population that represented 100% of the reporting perimeter. Injuries are recorded as per applicable local law.
The data reported in the above table refers to the injuries of employees included in the reporting perimeter.
B. A death resulting from a work-related injury.
C. A work-related injury from which the worker cannot, does not or is not expected to fully recover to pre-injury health status within six months.
D. A work-related injury or ill health resulting in any of the following:– death, days off work, restricted work or transfer to another job, medical treatment beyond first aid, loss of consciousness;– significant injury or ill health diagnosed by a physician or other licensed healthcare professional, even if not resulting in death, days awayfrom work, restricted work or job transfer, medical treatment beyond first aid or loss of consciousness. This includes injuries resulting from
commuting accidents only when transport is organised by UniCredit Group.
E. Calculated as follows: (total no. of fatalities as a result of work-related injuries/total hours worked) × 1,000,000.
F. Calculated as follows: (total no. of high-consequence work-related injuries (excluding fatalities)/total hours worked) × 1,000,000.
G. Calculated as follows: (total no. of recordable work-related injuries/total hours worked) × 1,000,000.
H. The reported hours worked are the result of an estimation method based on the hours prescribed by local agreements.

Governance, Risk and Compliance

Rates of injury 2023–2022A

277

Social and Relationship Capital
Customer distribution
Number of customers by division and country as at 31 December 2023
Italy
RetailCorporate
Germany
RetailCorporate
Central Europe – Retail
Austria
Czech Republic and Slovakia
Hungary
Slovenia
Eastern Europe – Retail
Bosnia and Herzegovina
Bulgaria
Croatia
Romania
RussiaSerbiaCentral Europe – Corporate
Austria
Czech Republic and Slovakia
Hungary
Slovenia
Eastern Europe – Corporate
Bosnia and Herzegovina
Bulgaria
Croatia
Romania
RussiaSerbia278

S.78

6,963,688
182,806
1,426,044
61,468
1,108,476
661,578
279,008
63,217605,251
1,041,912
995,282
771,148
313,344
325,478
12,927
21,96910,0732,671
3,585
14,328
7,774
12,63910,851
4,379

UniCredit 2023 Integrated ReportOverview
Governance, Risk and Compliance– a unique and comparable cross-country and segment viewof how the Bank is perceived

The tables below show the results of the NPS for UniCredit
and its competitors. At Group level in 2023 UniCredit
achieved an NPS of 16 among SME, +2 ahead of competitors.
Among individuals the NPS cross-country was 13. Germany andEastern Europe kept the advantage, while in Central Europe
we are working on catching up with the competition inAustria and Czech Republic. Italy was impacted by a change
in methodology.

Our Impact– a fair comparison between UniCredit and its competitors
thanks to a random selection of customers by the research
provider (no customer lists provided by the Bank) and no
mention of UniCredit as survey commissioner (doubleblind approach); mixed interviews of main and secondary
Bank customers

Our Strategy

After years of experience and knowledge acquired throughgathering insights from customers and prospects, in 2017
UniCredit defined an integrated approach with a benchmarking
study which provides us with a view of customers’ andprospects’ perception of customer experience, brand reputation
and business indicators in local markets. It allows:

The main KPI is the Net Promoter Score (NPS), a metric used
across industries to measure customer experience. It is based on
the sole question – How likely are you to recommend our Bank
to …, on a scale of 0 to 10? In the numeric scale, 0 corresponds
to not at all likely and 10 to extremely likely. The score is
calculated as the difference in percentage between promoters(customers who gave a 9 to 10 score) and detractors (customers
who gave a 0 to 6 score). Within the Benchmarking Study, the
KPI is more specifically referred to as the Strategic Net Promoter
Score to clarify the goal in assessing the overall positioning on
high-level topics/areas.

Our Context

Customer experience

Annexes
Supplement

UniCredit 2023 Integrated Report

S.79

279

Social and Relationship Capital

Strategic net promoter score results – retail (individual
customers including only mass and affluent) 2023-2022
Country

2023

2022

Competitors
2023

6
42
-2

31
36
-9

13
26
12

65
61
40
23
29
26
52
0
50
29

60
61
32
15
36
24
57
0
58
11

57
54
25
32
32
22
44
0
42
20

Country

2023

2022

Competitors
2023

Italy
Germany
Austria
Bosnia and Herzegovina
UniCredit Bank a.d. Banja Luka
UniCredit Bank DD Bosnia
Bulgaria
Croatia
Czech RepublicHungary
Romania
RussiaSerbiaSlovenia

15
17
-15

8
19
-17

9
13
11

63
64
31
28
10
48
54
0
33
18

54
60
31
31
17
36
58
0
64
11

62
56
14
28
20
31
33
0
54
6

Italy
Germany
Austria
Bosnia and Herzegovina
UniCredit Bank a.d. Banja Luka
UniCredit Bank DD Bosnia
Bulgaria
Croatia
Czech Republic and Slovakia
Hungary
Romania
RussiaSerbiaSlovenia

Strategic net promoter score results – corporate 2023-2022

280

S.80

UniCredit 2023 Integrated ReportOverview

Clients can submit their complaints through several channels
including email, written letter or in person at one of ourbranches. Complaints are then managed locally or centrally
depending on the subject and nature of the complaint.

In line with our Global Compliance Guidelines – Complaint
Management, a complaint is any form of dissatisfaction
expressed in written form by current, potential or former
clients, which can be clearly identified regarding the way theGroup has managed a banking, finance or insurance transaction
or service. Each UniCredit Legal Entity develops and regulates
its own complaint management processes and defines themethods and timing applied to settling complaints according to
the type of complaint, the means of communication chosen by
the client and to any external legislation provisions in force.

Our Impact

Retail division: number of recorded complaintsA 2023-2022
Region2022
Recorded(written andverbal)Written

195,224
25,41230,7461,797
2,684
43,176
19,2205,848
12,043
14,5391,861
1,959

37,788
6,372
5,151
1,522
2,678
16,557
8,404
2,929
9,613
9,376
1,861
1,242

209,440
41,16433,4081,921
2,425
46,16918,611
8,301
12,082
19,0101,490
1,641

42,36016,536
5,326
1,511
2,415
15,947
14,793
4,692
9,786
13,3911,490
1,000

A. In Italy, Germany and Austria the complaints refer to Individual clients and small businesses. In the remaining CE and EE countries thecomplaints refer to the Retail division. Totals are not provided because definitions and recording methods have not been completely aligned
across all countries.
B. From 2016 all complaints are considered as written in accordance with local law.

UniCredit 2023 Integrated Report

S.81

281

Supplement

WrittenAnnexes

Italy
Germany
Austria
Bosnia and Herzegovina
Bulgaria
Croatia
Czech RepublicHungary
Romania
RussiaSerbiaSlovenia

2023
Recorded(written andverbal)Governance, Risk and Compliance

It is also possible to forward a verbal complaint at thebranch. We aim to improve the efficiency of our responses tooperational events (errors, delays, malfunctions, and churn rate)
as we believe that rapid resolutions increase client satisfaction
and strengthen confidence in the Bank.

The adequate management of complaints is fundamental to
improve operational effectiveness and to reduce operationalrisks. Complaints may highlight areas where service quality(also perceived) can be improved, with positive effects on risk
mitigation and client experience. In addition, effectively andefficiently managing complaints represents an opportunity tore-establish a satisfactory relationship with clients.

Our Strategy

UniCredit’s approach to complaint management is driven by
the belief that continuous dialogue and rapid responses arefundamental to address and improve the quality of our service
and client satisfaction.

Our Context

Handling complaints

Social and Relationship Capital

Financial inclusion
Percentage of total branches in sparsely settled or economically disadvantaged areas
as at 31 December 2023A
CountryB

Percentage

Italy
Bosnia and Herzegovina
Bulgaria
Croatia
Czech RepublicHungary
Romania

23.1%
100%
100%
25.0%
39.4%
100%
100%

RussiaSerbiaSlovakia
Slovenia

100%
100%
100%
75.0%

A. The NUTS classification (Nomenclature of Territorial Units for Statistics: a hierarchical system for dividing up the economic territory of the EU)
was used to identify disadvantaged areas in EU countries. In particular, regions with a GDP (Gross Domestic Product) per inhabitant of lessthan 75% of the community average were considered at level 2 of the NUTS classification (https://ec.europa.eu/eurostat/statistics-explained/
index.php/GDP_at_regional_level). Based on this classification, there are no sparsely settled or economically disadvantaged areas in Austria
and Germany.
B. The entire territories of Bosnia and Herzegovina, Bulgaria, Hungary, Romania, Russia and Serbia were considered to be disadvantaged areasin accordance with an IMF study published in October 2023 which considered these countries emerging markets and developing economies
https://www.imf.org/-/media/Files/Publications/WEO/2023/October/English/text.ashx.

Adherence to legal standards and voluntary
codes relating to marketing and communications
UniCredit follows the Code of Marketing Communication
Self-Regulation (www.iap.it) disseminated by the Istitutodell’Autodisciplina Pubblicitaria (IAP), which ensures subscribers
follow transparent and honest advertising practices.
UniCredit is also a member of the Utenti Pubblicità Associati(UPA) which supports the IAP. All UniCredit entities follow theregulations disseminated by these bodies, particularly whenlocal codes do not provide guidance on topics covered by
the UPA.

All advertising and communication activities at UniCredit areinternally ruled by our Group Marketing & Communication
department which is responsible for assuring the effective
application of the IAP code as well as coordinating with theGroup Legal and Group Compliance departments in their own
areas of competence. With regard to advertising of investment
products, all texts are submitted to the Commissione Nazionale
per le Società e la Borsa (CONSOB) in Italy so they can beevaluated for regulatory compliance and consistency with theprinciples of truth and transparency.

Main legal standards and voluntary codes relating to marketing and communications
adopted by the group legal entities
Country

Description

Austria
Bulgaria
Croatia
Hungary

Advertising Industry Ethics Code of the Austrian Society for Self-Regulation in Advertising (Werberat)
Code of Ethics of the Association of Banks in Bulgaria
Code of Advertising issued by the Croatian Association of Advertising Agencies
Banking Association’s Code of Conduct

282

S.82

UniCredit 2023 Integrated ReportOverview
Our Context

Natural Capital

Our Strategy

Environmental performance indicators1, 2
Scope 1: Direct GHG emissionsA (tons CO2e) 2023-2022B
Country

2023

2022

11,342
6,849
3,351
4,530
26,072

12,827
8,227
3,887
5,163
30,104

Scope 2: Indirect GHG emissionsA , market and location-based (tons CO2e) 2023-2022B
Country

Location-based

2023

2022

2023

2022

363
4,195
741
16,124
21,422

442
4,794
945
23,94530,126

48,532
29,454
4,316
18,253
100,555

53,17035,602
4,955
19,319113,046

Scope 3: Other indirect GHG emissionsA (tons CO2e) 2023-2022B
Country

Italy
Germany
Central Europe
Eastern Europe
Total

2023

2022

8,847
4,857
5,782
10,196
29,683

9,335
5,195
5,194
10,05829,782

A. GHG emissions from air and rail business travel; from copy paper consumption; from glass, paper and plastic disposal; and from energy
consumption at leased assets for which we do not have operational control calculated considering the market-based method.
B. 2022 figures restated from those published in the 2022 Integrated Report as a consequence of the periodical updates of GHG emission factors
and corrected data. 2021 figures restated from those published in the 2022 Integrated Report as a consequence of corrected data: Scope 3
emissions are 27,247 tCO2e.

1. Data includes the full set of Legal Entities considered respectively in the 2023 Integrated Report perimeter (corresponding to a full-time
equivalent of more than 70,200) and 2022 Integrated Report perimeter (corresponding to a full-time equivalent of more than 74,000),unless otherwise stated. Country-to-country comparisons may be misleading as different tracking systems should be taken into account.
The business division Central Europe also includes Poland.
2. The sum of Country figures may not coincide with corresponding total figures due to rounding.

UniCredit 2023 Integrated Report

S.83

283

Supplement

A. GHG emissions from purchased electricity, steam and heating/cooling consumed by equipment or systems owned or controlled by our Group.
B. 2022 figures restated from those published in the 2022 Integrated Report as a consequence of the periodical updates of GHG emission factors
and corrected data. 2021 figures restated from those published in the 2022 Integrated Report as a consequence of corrected data: total 2021
Scope 2 market-based emissions are 33,035 tCO2e and total 2021 Scope 2 location-based emissions are 110,888 tCO2e.

Annexes

Italy
Germany
Central Europe
Eastern Europe
Total

Market-based

Governance, Risk and Compliance

A. GHG emissions from sources owned or controlled by our Group, which includes direct energy consumption, road business travel and refrigerant
gas leakages.
B. 2022 figures restated from those published in the 2022 Integrated Report as a consequence of the periodical updates of GHG emission factors
and corrected data. 2021 figures restated from those published in the 2022 Integrated Report as a consequence of corrected data: total 2021
Scope 1 emissions are 33,158 tCO2e.

Our Impact

Italy
Germany
Central Europe
Eastern Europe
TotalNatural Capital

Scope 3: Total other indirect GHG emissions, by category (tons CO2e) 2023-2022
Category

Description

1. Purchased goods and services
5. Waste generated in operations
6. Business travel
8. Upstream leased assets

Copy paper consumption
Glass, paper and plastic disposal
Air and rail
Energy consumption at leased assets not within
operational control

Total

2023

2022

626
221
2,904
25,932

723
248
2,071
26,74029,68329,782

2023

2022

27
45
18
20
26

28
49
22
21
29

Energy consumption per employeeA (GJ/capita) 2023-2022
Country

Italy
Germany
Central Europe
Eastern EuropeGroup

A. Figures include energy consumption at premises for which we have operational control and at leased assets for which we do not haveoperational control.

Copy paper consumption per employee (kg/capita) 2023-2022
Country

Italy
Germany
Central Europe
Eastern Europe
Group

2023

2022

28
7
17
33
25

30
8
23
37
27

Approximately 100% of copy paper used Groupwide holds an environmental label, such as Forest Stewardship Council (FSC)or Programme for the Endorsement of Forest Certification (PEFC). Approximately 73% of copy paper used Groupwide derives
from recycled sources.

Water usage per employee (m3/capita) 2023-2022
Country

2023

2022

23
26
7
8
17

31
24
8
9
21

Country

2023

2022

Italy
Germany
Central Europe
Eastern EuropeGroupof which hazardousA

66
247
66
159
116
0

65
199
88
153
111
0

Italy
Germany
Central Europe
Eastern Europe
Group

Waste production per employee (kg/capita) 2023-2022

A. The values are a consequence of rounding (the real values are 0.4 for 2023 and 0.4 for 2022).

284

S.84

UniCredit 2023 Integrated ReportOverview
Our Context

Waste by disposal method 2023-2022
Country

Incineration

Disposal in landfill

Other treatment

2023

2022

2023

2022

2023

2022

2023

2022

97.70%
66.76%
57.72%
17.62%
56.93%
75.34%

97.78%
60.40%
59.53%
20.00%
56.34%
66.74%

0.00%
33.17%
18.54%
0.71%
12.28%
1.48%

0.00%
39.53%
24.44%
0.71%
14.24%
1.02%

0.00%
0.00%
19.38%
79.27%
28.97%
0.00%

2.22%
0.00%
14.15%
77.25%
28.48%
0.00%

2.30%
0.07%
4.36%
2.39%
1.81%
23.18%

0.00%
0.06%
1.88%
2.04%
0.93%
32.23%

Our Strategy
Our Impact

Italy
Germany
Central Europe
Eastern Europe
Group
Total hazardous bydisposal method

Separation and recycling ofvaluable materials

Governance, Risk and Compliance
Annexes
Supplement

UniCredit 2023 Integrated Report

S.85

285

UniCredit has chosen not to print official copiesof this report, leading by example to safeguard
the environment. You are therefore advised not
to print any copy of the report but to refer to thedigital version.
To explore the full content of the Integrated Report 2023 pdf
document or our Integrated Report 2023 dedicated website,
you can follow the links below:
https://www.unicreditgroup.eu/en/investors/financial-reporting.html
March 2024
The Integrated Report and Supplement have been madeavailable at www.unicreditgroup.eu

UniCredit SpA.
A joint stock company
Registered Office and Head Office in Milan:
Piazza Gae Aulenti 3 – Tower A – 20154 Milano
Share capital Euro € 21,133,469,082.48 fully paid in,
Fiscal Code, VAT number and Registration number
with the Company Register of Milan-Monza-BrianzaLodi:00348170101
Registered in the Register of Banking Groups and Parent
Company of the UniCredit Banking Group, with. cod.
02008.1; Cod. ABI 02008.1
Member of the National Interbank Deposit Guarantee Fundand of the National Compensation Fund Stamp duty paid
virtually, if due – Auth. Agenzia delle Entrate, Ufficio diRoma 1, no. 143106/07 of 21.12.2007

286

S.86

UniCredit 2023 Integrated Reportunicreditgroup.eu

Empowering
Communities to Progress.