2. Strategy

Strategy

16

2. Strategy

[GRI 102-14]

The Mediobanca Group continued on its growth path in the twelve months, with strong business and profitability performances despite the worsening market instability. This has been made possible by the effectiveness of its business model, distinctive positioning, and diversified activities. These features together have enabled the Mediobanca Group to significantly outperform the Italian and European banking sector despite the difficulties linked first to the pandemic and now to the Russia/Ukraine conflict.

The Group delivered record results for FY 2021-22 in terms of revenues, which totalled €2.85bn (up 8% YoY), with net profit climbing to €907m (up 12% YoY).

The Group has stepped up its efforts in the sustainability area, which remains one of the pillars of its growth model.

This commitment has led to further recognition, such as the Group’s inclusion in the S&P Europe 350 ESG and Euronext - Borsa Italiana MIB ESG indexes, in additions to those in which it is already featured.

Such commitment is also growing the whole time, not least in order to meet the regulatory objectives to manage the risks deriving from climate change, the consumption of scarce resources, environmental degradation, and social inequality, and at the same time improve transparency and promote sustainable investments.

The Group, which was already a member of the Global Compact, has stepped up its commitment to tackling climate change by becoming a signatory to the Net-Zero Banking Alliance (NZBA), with the objective of meeting the zero emissions objective by 2050 in line with the Paris Agreement, and adhering to the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD), in order to represent disclosures on its own environmental impact transparently, in the form of the TCFD Report, which contains a preliminary quantification of the portfolio’s indirect Scope 3 emissions, plus the first interim targets for indirect emissions.

The decision to adhere to these global protocols is consistent with the roadmap pursued by the Group so far to reduce its own direct CO2 emissions (Scope 1 and 2), which have been neutralized for the second year running.

As Alberto Nagel, Mediobanca CEO has emphasized,

“climate change represents a financial risk for the global economy. The banking system as a whole has a fundamental role to play in the green transition, and markets need clear, exhaustive and high-quality information on the impacts of this change. ”

While the transition towards more sustainable models is a social duty, ESG issues are also important to support the Bank’s performance over the long term, and also those of its clients. By matching their commitment to managing ESG risks, the Group is also investing in the quality of its own loan book.

In line with this approach, the Group’s offering, which is adapting itself to clients’ needs and is being continually reshaped according to their sensitivities, features an extensive catalogue of ESG products, including green mortgages issued by CheBanca!, and funds that promote environmental, social or governance aspects, as defined in the SFDR Regulation.

As well as promoting the transition to a more sustainable economy, Mediobanca has also confirmed its commitment to social issues, with contributions to the community that for the twelve months exceed €7.6m.

Once again it has been our people who have formed the bedrock of our success, showing they were able to respond to the challenges of the period with their talents, hard work and dedication: their development, professional growth and satisfaction are fundamental objectives for the Group, and we will continue to invest in them.

In March 2022, a project known as “toDEI” was launched, to promote Diversity, Equity and Inclusion, issues which are fundamental, among other things, to the Bank’s ability to increase competitiveness and attract talent. To make this commitment more concrete, quantitative DEI objectives have been disclosed for the first time, and will be an integral part of the next long-term strategic plan.

The activities and commitment described above are illustrated in detail in the remainder of this document, the Mediobanca Group’s fifth Consolidated Non-Financial Statement.

The sustainability disclosure framework is completed with the information required for eligibility for the EU Taxonomy, a preliminary self-assessment for the Principles for Responsible Banking, the TCFD Report, and the Pillar III ESG and the Green Bond Report published at the same time as this document.