Banca Popolare di Sondrio S p A : Allegato I – TCFD Report_1

Anchored in our values,

projected towards a sustainable future

NFS 2023 - HIGHLIGHTS

OUR JOURNEY

The implementation of the ESG Plan - part of the Group's Business Plan - strengthens our increasing commitment to integrating Sustainability into our business.

Update of the Sustainability section of our corporate website

Publication of the first TCFD Report

Identification of the preliminary CO2 reduction targets in the credit portfolio

Creation of

the Board

Sustainability

Committee

ESG training with a focus on D&I

Start of collaboration with Feduf

Participation in Valore D and signing of

Integration of a C&E Score in the Bank's processes

ESG ratings and questionnaires

• Standard Ethics has upgraded BPS's corporate rating to "EE+", from the previous "EE"
• CDP Score - Climate: A-, Leadership Level

ABI's "Women

in Banking"

Charter

Second Green	Increase in the presence
Bond issue	of women
	(7/15) and of independent
	members (9/15) in the BoD

2023 activities 2024 activities

Approval

of ESG

Investment

Policy

ESG assessment of counterparties

Adhering to the PRBs and joining the Net-Zero Banking Alliance

ESG Data Lake project

Drafting of new

Home-Work

Travel Plans

Analysis of the environmental performance of the Group's real estate assets

Launch of the

Sustainable

Mobility Plan

ESG assessment of suppliers

CSRD assessment

Collaboration with Feduf

Financial education projects in schools

C&E risks	Publication of the
New Strategic and	NFS, the Summary
Operational Plan for C&E	Report and the
Risks, New materiality analysis	Highlights video

The fight against climate change and the support to our customers' green transition are one of the primary challenges of our Sustainability Plan, in which we strongly believe. We are aware that maximising utility at a micro level can contribute, in a logic of positive contamination, to the achievement of global results.

Mario Alberto Pedranzini

CEO AND GENERAL DIRECTOR

(Letter to stakeholders - 2023 Non-Financial Statement)

Our achievements

Signatory to the Net-Zero Banking Alliance

CDP Score: A -

(Leadership)

2,380 loans in the Green Bond portfolio avoided the production of

63,000 tCO2e

11 lines

of "next" green loans

80% of the non-financial corporate portfolio with

ESG Score

98% renewable eletric energy for BPS buildings

30% access points in low-populatedareas (municipalities with less than 5,000 inhabitants)

In 20% of the municipalities where BPS operates, it is the only bank

349 new hires

77% of whom <29 years old

99% employees with open-endedcontract

More than 1,600 treasury services including 438 educational institutions and universities

Commitment to Principles for Responsible Banking

>1.5 bln € funds ESG

screened in the Banking Book (11% of total debt securities)

Establishment of a

Sustainability Committee

in the BoD

+4,000 stakeholders involved in ESG-related topics

6 ESG indicators related to remuneration policies of Top Managers

Our commitment

Close to the areas we serve, we consider it essential to interact with our stakeholders, participate in working groups, and collaborate with national and international organisations, which are a central point of reference to ensure constant updating on ESG-related topics.

We have been part of the UN Global Compact network since 2004 and, since 2018, we have been a founding member of the UN Global Compact Network Italy, to ensure constant updating on ESG-related issues.

The most relevant SDGs for our activities:	Moreover, we
	strongly support:

At the end of 2023 we joined the UNEP FI international financial initiative promoted by the United Nations, thus becoming one of the signatory banks of the

Principles for Responsible

Banking and Net-Zero

Banking Alliance.

The Principles for Responsible Banking, issued by UNEP FI in 2019, are six voluntary principles designed to bring purpose, vision and ambition to Sustainable Finance.

The signatory banks are committed to embracing the Principles in all their business areas.

The Net-ZeroBanking Alliance (NZBA) was launched in 2021 and includes more than 140 banks from around the world among its members. By joining this initiative they confirm their commitment to defining decarbonisation strategies and targets in line with the Paris Agreement.

Through the identification of sector-specific targets, NZBA's members commit to doing business in a manner consistent with the purpose of limiting global heating to 1.5°C.

In 2023, we updated the list of the most relevant Sustainability topics, asking over 4,000 stakeholders to evaluate the importance attributed to the impacts deriving from the Bank's activities or its business relationships.

MATERIAL TOPICS

ENVIRONMENT		GOVERNANCE		SOCIAL

1 Environment, climate change and C&E* risks management

2 Financial solidity and economic performance

3 Enhancement of human resources

4 Sustainable finance and responsible credit

5 Diversity and equal opportunity

6 Support to the community and ties with the local area

7 Innovation and digital transformation

8 Human rights

9 Privacy and IT security

10 Integrity and fight against corruption

* Climate-related and environmental

FINANCED EMISSIONS

7.9

mln tCO2e

596

tCO2e/€mln

turnover

(emission intensity)

Environment: the commitment to the climate

As a Group, we consider environmental protection and the fight against climate change as key priorities, viewing the role of the financial sector as fundamental in supporting a transition economy towards the objective of net zero emissions by 2050.

Calculation of CO2 emissions deriving from our portfolios (credit, asset management, and proprietary)

We have refined the calculation methodology that leads to the definition of our carbon footprint and extended the calculation scope:

Manufacturing	Energy, gas	Mining and quarrying
(high energy intensity)	and steam supply

13.0%	5.5%	0.5%
62.2%	1.8%	0.4%
Exposure, % of the total credit portfolio	Financed emissions, % of the total credit portfolio

11 lines

of green loans that support investments protecting the environment

INDIVIDUALS

• green housing
• green energy
• sustainable mobility

BUSINESSES

• wind power • solar power
• hydroelectric power
• bioenergy • energy efficiency
• circular economy • sustainable mobility • green buildings

New Green Bond issue

In September 2023, the Bank successfully placed a new Senior Preferred Green Bond issue, for an amount of €500 million and reserved for institutional investors. The transaction was part of the EMTN (Euro Medium Term Notes) programme and follows the first issue for the same amount, which took place in July 2021.

ESG TRAINING IN FIGURES

OVER

50 HOURS

provided

AT LEAST

6 HOURS for each ESG contact person

4.5 HOURS

provided to Directors and Statutory Auditors

38 HOURS

dedicated to D&I topics, with

3 HOURS

of ESG training for all permanent employees available on the online platform