Unicredit S.p.a. · MIL:UCG
Unicredit — ESG Presentation (July 2016)
30 slides from Unicredit's sustainability presentation, Jul 5, 2016
Slide 1: UniCredit Group: Our value creation over time
UniCredit Group Our value creation over time Economic, Social, Environmental approach Group Sustainability UniCredit SpA - Public London, July 5th, 2016
Slide 2: We exist to bring prosperity to individuals, enterprises and communities
We exist to bring prosperity to individuals, enterprises and communities. Mindful of our potential to make a difference, our Group applies a sustainable strategy to creating value in a way that supports the advancement of local communities, the competitiveness of enterprises and the well-being of in
Slide 3: Agenda
AGENDA UNICREDIT IN A NUTSHELL OUR VALUE CREATION PROCESS AND OUR LONG-TERM STRATEGY OUR SOCIAL AND ENVIRONMENTAL APPROACH KEY ENABLERS OF SUSTAINABILITY: GOVERNANCE, RISK MANAGEMENT AND PERVASIVE COMPLIANCE CULTURE OUR CONTRIBUTION TO SUSTAINABLE DEVELOPMENT GOALS AND TODAY'S RECOGNITIONS
Slide 4: UniCredit is a leading European commercial bank
UNICREDIT IS A LEADING EUROPEAN COMMERCIAL BANK FINANCIAL HIGHLIGHTS (€ m) Banking operations in 17 countries, international network Operating income spanning: ~50 countries 22,405 Over 144,000 employees (FTEs) Net profit 1,694 Over 7,900 branches Total assets 32 million clients 860,433 Comm
Slide 5: Agenda
AGENDA UNICREDIT IN A NUTSHELL OUR VALUE CREATION PROCESS AND OUR LONG-TERM STRATEGY OUR SOCIAL AND ENVIRONMENTAL APPROACH KEY ENABLERS OF SUSTAINABILITY: GOVERNANCE, RISK MANAGEMENT AND PERVASIVE COMPLIANCE CULTURE OUR CONTRIBUTION TO SUSTAINABLE DEVELOPMENT GOALS AND TODAY'S RECOGNITIONS
Slide 6: Part of a complex value chain, generating revenues as well as social and environmental impacts
PART OF A COMPLEX VALUE CHAIN, GENERATING OUTPUTS SUCH AS REVENUES AS WELL AS SOCIAL AND ENVIRONMENTAL IMPACTS VALUE CREATION PROCESS ECONOMIC VALUE SOCIAL VALUE ENVIRONMENTAL VALUE 6 WORK IN PROGRESS
Slide 7: Our focused business model delivers long-term value
OUR FOCUSED BUSINESS MODEL DELIVERS LONG-TERM VALUE REVENUES 2015 (% ) 78% A 4% 16% 2% + 1 million new customers in 2015 AIncludes also CEE and Poland CIB revenues 7 WORK IN PROGRESS
Slide 8: We target long-term sustainable profitability, investing in digitalization, simplification and efficiency
WE TARGET LONG-TERM SUSTAINABLE PROFITABILITY, INVESTING IN DIGITALIZATION, SIMPLIFICATION AND EFFICIENCY BUILD A FUTURE DIGITAL BUSINESS MODEL INTEGRATION OF STRATEGIC PILLARS # of online banking users, m # of mobile banking active users, m AND CAPITALS 16,1 11,4 STRATEGIC PLAN 2013-2018 8,9 10,5 2
Slide 9: Investment aimed at seizing opportunities and anticipating risks from a hyperconnected environment
INVESTMENT AIMED AT SEIZING OPPORTUNITIES AND ANTICIPATING RISKS DERIVING FROM A HYPERCONNECTED ENVIRONMENT MAKING USE OF BIG DATA Group big data My Business View dedicated to Italian SME architecture has been customers managing sales through POS developed, enabling the realization of new effect
Slide 10: Agenda
AGENDA UNICREDIT IN A NUTSHELL OUR VALUE CREATION PROCESS AND OUR LONG-TERM STRATEGY OUR SOCIAL AND ENVIRONMENTAL APPROACH KEY ENABLERS OF SUSTAINABILITY: GOVERNANCE, RISK MANAGEMENT AND PERVASIVE COMPLIANCE CULTURE OUR CONTRIBUTION TO SUSTAINABLE DEVELOPMENT GOALS AND TODAY'S RECOGNITIONS
Slide 11: Dialogue with stakeholders ensures identification of material topics
DIALOGUE WITH STAKEHOLDERS ENSURES THE IDENTIFICATION OF MATERIAL TOPICS TO FORGE BUSINESS STRATEGY AND VIABILITY DIALOGUE WITH STAKEHOLDERS MATERIALITY MATRIX 2015: Stakeholders providing feedback more than 700,000 An ongoing, integrated dialogue with stakeholders via multiple channels Stakeholder
Slide 12: We invest to hone Group competence, capability and experience, and foster a culture of inclusion
WE INVEST TO HONE GROUP COMPETENCE, CAPABILITY AND EXPERIENCE, AND FOSTER A CULTURE OF INCLUSION…. Social value creation INVEST IN LEARNING AND DEVELOPMENT FOSTER A CULTURE OF INCLUSION We invest in a culture of inclusion to make full use DEVELOPING FUTURE LEADERS of the talent, skills and experienc
Slide 13: …and promote well-being, while maintaining a persistent high level of engagement
…AND PROMOTE WELL-BEING, WHILE MAINTAINING A PERSISTENT HIGH LEVEL OF ENGAGEMENT OVER TIME Social value creation SUPPORT WORK LIFE BALANCE We invest in welfare services and initiatives that take into account socio- demographic needs, changes and trends (e.g. singles, new families..): tailor-made w
Slide 14: Our approach to communities is focused on country competitiveness and well-being
OUR APPROACH TO COMMUNITIES IS FOCUSED ON COUNTRY COMPETITIVENESS AND WELL-BEING … Social value creation OUR APPROACH TO UNDERSTAND COUNTRY PROGRESS AND WELL-BEING UNICREDIT WAY TO GENERATE IMPACTS AND SHARED VALUE (illustrative) Poland: Company spending on R&D 9,4 Italy: Patent propensity 10 We fin
Slide 15: …that stimulate our capability to contribute to business growth and employment
… THAT STIMULATE OUR CAPABILITY TO CONTRIBUTE TO BUSINESS GROWTH AND EMPLOYMENT Social value creation SECTOR COUNTRY ILLUSTRATIVE INITIATIVE 2015 ACHIEVED RESULTS START UP IT, DE, AT, PL, BA, UniCredit Start Lab ( Italy) 900 applications - 45 selected BG, HR, HU, RO 66% of young entrepreneurs (u
Slide 16: …and takes care of individual well-being
… AND TAKES CARE OF INDIVIDUAL WELL-BEING Social value creation FINANCIAL INCLUSION SOCIAL INCLUSION PRODUCT & SERVICES FOR EVERY STAGE OF LIFE PROMOTE FUNDRAISING ACTIVITIES YOUNG MIGRANTS Engaging 13° UNICREDIT FOUNDATION GIFT MATCHING PROGRAM HR -9,500 AU –325 people Over 10,000 500 nonprofit Ove
Slide 17: Our approach to environmental protection focuses on reducing our operational impact
OUR APPROACH TO ENVIRONMENTAL PROTECTION FOCUSES ON REDUCING OUR OPERATIONAL IMPACT … Environmental value creation GHG EMISSIONS REDUCTION 2009 TARGET ACHIEVED 5 YRS AHEAD OF DEADLINE 2015 NEW SHORT-MEDIUM TERM TARGETS 1 - 60% - 80% Target Target 2020 2030 Baseline AOur Scope 1 and Scope 2 GHG emiss
Slide 18: …and embracing green business opportunities
…AND EMBRACING GREEN BUSINESS OPPORTUNITIES Environmental value creation RENEWABLE ENERGY ENERGY EFFICIENCY GREEN BOND MODEL ENGINEERING At the end of 2015 our ~ €3bln in 2015, including: Member of the Portfolio of loans for Advisory Committee renewable energy AU- Energieeffizienz-Paket Sign
Slide 19: Agenda
AGENDA UNICREDIT IN A NUTSHELL OUR VALUE CREATION PROCESS AND OUR LONG-TERM STRATEGY OUR SOCIAL AND ENVIRONMENTAL APPROACH KEY ENABLERS OF SUSTAINABILITY: GOVERNANCE, RISK MANAGEMENT AND PERVASIVE COMPLIANCE CULTURE OUR CONTRIBUTION TO SUSTAINABLE DEVELOPMENT GOALS AND TODAY'S RECOGNITIONS
Slide 20: Governance: sustainability in the driving seat
GOVERNANCE: SUSTAINABILITY IN THE DRIVING SEAT Chairman Board of Director CORP INTERNAL GOVERNANCE, CONTROLS & HR & RISK NOMINATION COMMITTEE COMMITTEE 1 BoD RELATED PARTIES AND REMUNERATION EQUITY COMMITTEE INVESTMENTS COMMITTEE CEO Executive Management Committee Group Environmental and Social Coun
Slide 21: Our bonus system guarantees sustainable pay for sustainable performance
OUR BONUS SYSTEM GUARANTEES SUSTAINABLE PAY FOR SUSTAINABLE PERFORMANCE YEARLY BONUS COMPOSITION (2016) CEO SCORECARD (2016) 1 2 3 BONUS POOL RISK/SUSTAINABILITY ENTRY CONDITIONS GOAL FUNDING ADJUSTMENT Pool for each Access to each Bonus pool revised RISK Division/Country bonus pool linked up/
Slide 22: A sound risk management is fundamental to the implementation of our strategy
A SOUND RISK MANAGEMENT IS FOUNDAMENTAL TO THE IMPLEMENTATION OF OUR STRATEGY 1 2 3 4 Balanced Risk Appetite Prospective risk and risk Comprehensive Risk Academy - a multi-tier Framework (RAF) approved by outcome metrics communication approach risk learning framework to the BoD incorporated
Slide 23: Our environmental, social and reputational risk approach
OUR ENVIRONMENTAL, SOCIAL AND REPUTATIONAL RISK APPROACH ALLOWS TO IDENTIFY, PREVENT AND MANAGE IMPACTS AND RISKS… STRATEGY/POSITIONING POLICIES FRAMEWORK 2015 HIGHLIGHTS EQUATOR PRINCIPLES (EP) EQUATOR 106 project transactions evaluated PRINCIPLES 27 projects financed (vs 17 in 2014) ~140 peo
Slide 24: …while our compliance approach ensures a strong internal attitude about proper conduct
….WHILE OUR COMPLIANCE APPROACH ENSURES A STRONG INTERNAL ATTITUDE ABOUT A PROPER CONDUCT COHERENT WITH GROUP CORE VALUES 1 … APPROACH GOVERNANCE INDEPENDENCE Group Compliance key Compliance independence is CEO guaranteed by periodical activities: reporting to Corporate Group Compliance 110 FTEs Bod
Slide 25: …through proactive management of risks deriving from non-compliance
… THROUGH PROACTIVE MANAGEMENT OF RISKS DERIVING FROM NON- COMPLIANCE MAIN AREAS ADDRESSED BY POLICIES APPROACH TRAINING 2013-15 OUR CODE OF CONDUCT adherence to laws and regulations Zero tolerance toward acts of corruption, prohibits facilitation 145,000 training hours zero tolerance to giving
Slide 26: Agenda
AGENDA UNICREDIT IN A NUTSHELL OUR VALUE CREATION PROCESS AND OUR LONG-TERM STRATEGY OUR SOCIAL AND ENVIRONMENTAL APPROACH KEY ENABLERS OF SUSTAINABILITY: GOVERNANCE, RISK MANAGEMENT AND PERVASIVE COMPLIANCE CULTURE OUR CONTRIBUTION TO SUSTAINABLE DEVELOPMENT GOALS AND TODAY'S RECOGNITIONS
Slide 27: Our activities contribute to UN Global Goals for Sustainable Development
OUR ECONOMIC, SOCIAL AND ENVIRONMENTAL ACTIVITIES CONTRIBUTE TO UNITED NATIONS GLOBAL GOALS FOR SUSTAINABLE DEVELOPMENT SDGs OUR COMMITMENT EXAMPLE OF ACTIVITIES 1 Fostering financial inclusion Current account for financially challenged people – more than 103,000 low-income customers served with
Slide 28: We are included in the most significant sustainability indexes
WE ARE INCLUDED IN THE MOST SIGNIFICANT SUSTAINABILITY INDEXES UNICREDIT SUSTAINABILITY RATINGS 2015 SELECTION 1 OF OVER 60 AWARDS RECEIVED IN 2015 100 79 - total sustainability score Top Employers in 6 Countries and CEE 0 79 - percentile Best Bank Best Bank in Bosnia and Herzegovina, Bulgaria,
Slide 29: Annex
ANNEX 29 WORK IN PROGRESS
Slide 30: Our Group compensation system ensures competitiveness and effectiveness of remuneration
OUR GROUP COMPENSATION SYSTEM ENSURES THE COMPETITIVENESS AND EFFECTIVENESS OF REMUNERATION AS WELL AS TRANSPARENCY AND INTERNAL EQUITY GROUP COMPENSATION PILLARS - 2016 Clear and transparent Compliance with regulatory Continuous monitoring of Governance requirements and principles of market trends