Our Net Zero targets

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.

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