UniCredit

UniCredit assigns decision-making and oversight responsibility for its sustainability strategy to the highest governance body, while implementation is managed by various functions, teams, or committees. The institution maintains a gender balance of 40-60% at the senior executive level. Moreover, the institution discloses its membership in trade associations. It also identifies key sectors, clients, and investees for engagement on climate issues and monitors its scope 1-2 emissions and provides information on the monetary value of its products, services, and capital linked to high-emitting and fossil fuel sectors. Additionally, there is a publicly available policy statement committing to respect human rights and ILO core labour rights and expects suppliers to do the same.

UniCredit uses a materiality tornado graph to identify and prioritise its sustainability impacts across its value chain, but it lacks clear criteria and evidence for this prioritisation. Recommendations include disclosing third-party assurance for target reporting and linking senior executive remuneration to sustainability targets. Although there is a stakeholder engagement plan, it does not align with the sustainability strategy. The entity prohibits political contributions but does not commit to avoiding adverse impacts from lobbying. The insitution discloses restrictions on financing certain fossil fuel projects but does not address all fossil fuels. A commitment to phase out coal financing by 2028 is noted, along with sector-specific policies for carbon-intensive activities, though no time-bound plan for oil and gas financing is evident. Targets include a EUR 50 billion sustainability bond and EUR 25 billion in environmental lending, but these extend only to 2024. Scope 3 financed emissions are disclosed for specific sectors, yet not all portfolio emissions are reported. Recommendations also include detailing the methodology for emissions calculations, breaking down clients by income group, avoiding divestment from low-income countries, and including risks related to ILO fundamental rights in risk assessments. Additionally, the entity should provide examples of actions taken regarding salient human rights issues from recent assessments.

This scorecard refers to information in English which was publicly available by July 15 2024. AuM and Total assets are stated in USD for comparability and have been calculated based on reported local currency values multiplied by applicable IMF currency converter values.