Unipol Gruppo S p A : and climate change - 2021 Reporting climate-related information

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Unipol and climate change2021

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CONTENTS

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Letter from the Chairman

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Introduction 4

Governance around climate-related risks and opportunities 6

Climate strategy and identification, assessment and management of climate-related risks and opportunities 8

The Unipol Group's strategic action areas on climate-related risks and opportunities 8

Identification, assessment and oversight of climate- and nature-related risks and opportunities 12

Assessment of the impacts of climate-related risks on the company strategy and the business 15

Risks linked to biodiversity loss 22

Products and services to tackle climate change 23

Offer of insurance products and services to support customers in mitigating and adapting to climate change 23

Activation of public-private partnerships to increase resilience to climate change 24

Integration of the Mobility Ecosystem with services contributing to reducing environmental impacts 25

Investments 25

Targets and Indicators 28

The Group's climate-related objectives 28

Climate change and the insurance business 28

Oversight of the direct and indirect environmental impacts of the Unipol Group 30

Direct impacts 30

Indirect impacts 34

Protection and restoration of biodiversity 40

Advocacy activities on matters linked to climate change 41

Appendix 1 - Commitments and exposure of the Unipol Group to the coal industry and the oil & gas industry 43

Investments 43

Underwriting activities 44

Appendix 2 - Disclosure on the European Taxonomy of environmentally sustainable economic activities 45

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Letter from the Chairman

The year 2021 marked new calls from the scientific community and international organisations regarding the fundamental importance for this decade to undertake and consolidate the necessary actions to guarantee that our economic models transition towards the goal of eliminating net emissions by 2050, the only possible path for limiting the increase in the global average temperature to 1.5°C in the long term, as set forth in the Paris Agreement. The sixth IPCC (Intergovernmental Panel on Climate Change) report rang new alarm bells for political decision-makers and the world of business on the need to take swift and decisive action. Time is running out, and the impacts of climate change will be devastating for many parts of the planet. The scientific knowledge we have available to outline trajectories for reducing climate altering gas emissions to reach net-zero by 2050 is increasingly more robust, to orient the strategic policies of companies and help them contribute to reaching the common, global goal established by the Paris Agreement objectives.

The financial world and insurance companies in particular play a fundamental role in supporting this transition towards a low-carbon emission economy. This was reaffirmed during COP26, when financial sector players launched initiatives aiming to support the transition towards net zero objectives. The implementation of the European Taxonomy on environmentally sustainable economic activities and the publication of the European Commission's Strategy for financing the transition to a sustainable economy in July 2021 are two extremely important signals concerning the expected role of the financial sector.

At the same time, biodiversity is garnering increasing attention. The effects of the climate crisis and the biodiversity crisis are intrinsically linked and fuel each other. Also in this case, the Kunning Declaration of October 2021 recalls the role of the financial sector, particularly for reorienting financial resources towards the protection and restoration of biodiversity.

Strategies aimed at reducing climate-altering gas emissions in the medium and long term within the organisation's various spheres of influence and actively promoting the prevention of climate risks and adaptation, while supporting those most vulnerable and reorienting investments towards sectors that contribute to the mitigation of and adaptation to climate change, in addition to the protection of biodiversity, are fundamental to lay the solid foundation of a resilient society. The Unipol Group has made commitments in this regard and, in its various business areas, intends to play a significant role in the ongoing transition.

Pierluigi Stefanini

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