In Piazza Affari, good performance for Unicredit which is currently up by more than 7% after presenting record results for the fourth quarter of 2022, a period closed with revenues of 5.719 billion (+29.2% on 2021), largely above analyst consensus.
On the occasion of today’s quarterly results presentation, UniCredit set interim targets for 2030 for the three highest emitting sectors within its credit portfolio: oil & gas, power generation and automotive, based on the achievement of the Net Zero target for financed emissions by 2050.
The 2030 targets for the main carbon-intensive sectors:
The International Energy Agency’s (IEA) Net Zero 2050 pathway was used as a reference scenario to calculate the targets for the three most carbon-intensive sectors:
Oil and gas – starting from a baseline of 21.4 Mt CO2e1 in 2021, UniCredit targets a 29% reduction in Scope 3 financed emissions. This target relates to 7.8 billion euros of the bank’s loan portfolio in the oil and gas sector gas, including performing credit exposure, non-performing loans. Unicredit reminds us that our Oil&Gas policy excludes any support for the activities of this sector in the Arctic region and for all new exploration and expansion of oil reserves. At the same time, the Group’s Coal Policy calls for the phasing out of financing to the coal sector by 2028.
electricity production: UniCredit is committed to achieving a reduction of approximately 47% of the Scope 1 weighted physical intensity to 111 gCO2e/kWh compared to a baseline value of 208 gCO2e/kWh in 2021 through the balancing of its credit portfolio and a significant increase in green lending activities. This target refers to the €8.9 billion electricity generation portfolio and includes only generation companies.
Automotive: UniCredit intends to reduce the Scope 3 “Tank To Wheel” weighted physical intensity by approximately 41% to 95 gCO2/km5 compared to a reference value of 161 gCO2/km. This target refers to the bank’s loan portfolio in the automotive sector, amounting to 1.8 billion euros.
“We are committed to achieving Net Zero of our direct emissions by 2030 and financed emissions by 2050. This fits into a wider range of actions undertaken to advance a just and equitable transition for all, with particular attention financing and all-round green and sustainable consultancy activities”. Comments Fiona Melrose, Head of Group Strategy & ESG at UniCredit.
“We have made significant progress against our ESG business targets, activating €11.4 billion of environmental loans, €28.7 billion of ESG investment products, €12.8 billion of sustainable bonds and 4 8 billion euros of social loans in 2022, for a total of almost 60 billion against the target of a cumulative Group ESG volume of 150 billion euros in the period 2022-2024”.