Our Net Zero targets
Thursday 02 February 2023
UniCredit has set its Net Zero targets for carbon intensive sectors. These were disclosed during our recent Full Year 2022 Results, fully in line with our Net Zero commitment and ESG Strategy. We are also developing dedicated initiatives to support the achievement of these goals.
UniCredit has announced its targets for the three most carbon intensive sectors within its portfolio alongside its Full Year 2022 Results. The sector targets include Oil & Gas, Power Generation and Automotive sectors, to reach the bank’s Net Zero ambition by 2030. This is in line with the Net Zero pledge signed in October 2021 and with UniCredit’s continued commitment to a more sustainable global economy.
Fiona Melrose, Head of Group Strategy & ESG at UniCredit, commented: “These targets reinforce our commitment to reach Net Zero on our own emissions by 2030 and on our financed emissions by 2050. This is alongside the action we have taken to drive forward a just and fair transition for all, particularly through green and sustainable financing and advisory activities. We have made significant progress against the ESG business targets we have set, mobilising €11.4 billion of Environmental Lending, €28.7 billion of ESG Investment Products, €12.8 billion of Sustainable Bonds and €4.8 billion of Social Lending in 2022 compared to the Group’s cumulative ESG volume goal of €150 billion over 2022-2024.”
Targets for key carbon intensive sectors by 2030 compared to 2021 baseline:
These targets have been calculated using the International Energy Agency (IEA) Net Zero 2050 pathway as the benchmark scenario.
1. Oil & Gas sector – UniCredit will target a 29% reduction in its Scope 3 financed emissions, starting from a baseline of 21.4Mt CO2e1 in 2021. This target is related to the bank’s Oil & Gas drawn balance of €7.8 billion, focusing on lending on-balance exposure, and including NPEs2 It relates to extraction, refining and distribution of Oil & Gas products.
In addition, UniCredit’s Oil & Gas Policy now prevents all support to Oil & Gas activities in the Artic Region, and all new explorations and expansions of oil reserves. Meanwhile, our Coal Policy anticipates the phase-out of coal financing by 20283.
2. Power Generation – UniCredit will target a c. 47% reduction in Scope 1 weighted physical intensity at 111 gCO2e/kWh4 from a baseline of 208 gCO2e/kWh in 2021, through rebalancing its portfolio and significantly increasing green lending activities.
This target is related to the bank’s Power Generation drawn balance of €8.9 billion and only includes electricity generation companies.
3. Automotive – UniCredit will target a c. 41% reduction in Scope 3 “Tank To Wheel”5 weighted physical intensity at 95 gCO2/vkm6 from a baseline of 161 gCO2/vkm.
This target is related to the bank’s Automotive drawn balance of €1.8 billion, excluding parts’ manufacturers, heavy-duty vehicles’ manufacturers and small retail companies (c. 1% of total drawn balance).
To support the achievement of these goals, dedicated initiatives are being developed focusing on:
- Strengthening of advisory services for corporates in high emitting sectors.
- Significantly boosting our sustainable lending (green loans and sustainability linked loans) to support our clients in their journey to decarbonise their operations and diversify away from carbon intensive sectors.
- Support to clients in the development and scaling up of innovative climate solutions.
- Targeted partnerships with companies specialised in sustainability for specific sectors.
All the above actions are complemented by our sector policies, including for Oil & Gas and Coal. These ensure we constantly reinforce our responsible and sustainable approach to the phase-out from hard-to-abate sectors with a clear focus on accelerating the energy transition through green financing. In addition to internal actions, UniCredit is proud to join the collective efforts of external industry working groups, including the Sustainable STEEL Principles and the European Clean Hydrogen Alliance, to support the necessary transformation of these sectors through cross-company collaboration and engagement.
Find out more about UniCredit’s ESG commitments by visiting our dedicated section
1 MtCO2e: millions of tons of carbon dioxide equivalent
2 NPEs - non-performing exposures
3 Green financing is allowed beyond 2028 only for non coal developers (no increase in coal business since Sep. 2020) and if they have a phase out plan in line with their National Energy & Climate Plan
4 gCO2e/kWh - grams of carbon dioxide equivalent per kilowatt-hour of electricity generated
5 Tank To Wheel - greenhouse gas emissions from internal combustion engine tailpipes
6 gCO2/vkm: grams of carbon dioxide per kilometre driven by a vehicle