BANCA MEDIOLANUM 2020 SUSTAINABILITY
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BANCA MEDIOLANUM 2020 SUSTAINABILITY
“Our bank is different from others
because its main focus is the human touch.
We have always been a bank of people,
for people”.
Ennio Doris
Chair of Banca Mediolanum S.p.A.
2020 SUSTAINABILITY 1
Table of Contents
5 CEO’s Letter to Stakeholders 64 Responsibility
10 Vision, Mission and Values
14 Group Structure
to our people
18 Sustainability governance
22 Sustainability at Mediolanum 66 Growth of human capital
30 Materiality analysis 70 Protection of human capital
33 Dialogue with Stakeholders
36 Stakeholders and communication
tools
38 Economic 78 Responsibility
responsibility to the environment
and the community
40 Financial performance and solidity at large
45 Responsible business
46 Procurement and supplier rating 80 Financial inclusion
policies 85 Focus on the environment
96 Community support
48 Responsibility
to customers
50 Centrality of the customer
55 Responsible Finance
60 Innovation
61 Cybersecurity and responsible
data usage
2 MEDIOLANUM GROUP 2020 SUSTAINABILITY 3
Foreword CEO’s Letter to Stakeholders
This document describes the Mediolanum Group’s sustainability efforts,
which essentially refer to responsibility – economic responsibility, creating
enterprise value by operating ethically and sustainably; responsibility to
customers, by offering them a relationship based on freedom and the
human touch, while constantly innovating in order to offer even better
services; responsibility to our people, by providing a positive, rewarding and
well-organised working environment in which they can express their talent for
customer service and teamwork; responsibility to the environment and the
community at large, by working to create a better life for the community,
with a focus on people and on the planet.
The efforts, projects and policies set out over the course of 2020 are laid
out below and fall under four pillars, each of which represents the types of
responsibility described above.
2020 will be remembered as the year of the COVID-19 pandemic,
which has profoundly changed the way we work, for both individuals
and companies alike. In this emergency situation, Banca Mediolanum
Economic Responsibility gave concrete answers to its stakeholders, thanks to a strong
responsibility to customers awareness of its role and its underlying values. During 2020, we all
saw first hand the extent to which digitalisation has changed
our organisation and working methods. At Mediolanum, we
have laid strong foundations, so that we are ready to face the
challenges of the future. I am of course referring to Flowe – which
in just 7 months has been well-received by more than 660,000 new
customers – and to the other new initiatives we launched in the early
part of 2021, such as Selfy. During the major process of stakeholder
engagement we undertook in 2019, what emerged was the intention to
Responsibility
Responsibility strengthen the concept of the centrality of the individual. This process
to the environment
to has led Mediolanum to develop its own value strategy, to include a
and the community
our people new vision, a new mission and a more evolved version of the Group's
at large
guiding values, while maintaining the focus on sustainability that has
always been an integral part of the ethos of Banca Mediolanum.
For us, sustainability essentially means responsibility: economic
4 MEDIOLANUM GROUP 2020 SUSTAINABILITY 5
responsibility, creating enterprise value by operating ethically which unite the search for value on the equity markets over the long
and sustainably; responsibility to customers, by offering them a term with a vision that is economically sustainable and responsible from
relationship based on freedom and the human touch, while constantly a social and environmental standpoint. 2020 saw the birth of Flowe, a
innovating in order to offer even better services; responsibility to better-being corporate platform dedicated to the constant improvement
our people, by providing a positive, rewarding and well-organised of innovative, full-digital banking services for everyone who cares
working environment in which they can express their talent for about sustainability, individual wellbeing and social and environmental
customer service and teamwork; responsibility to the environment progress. Flowe, essentially, is a commitment made today for a better
and the community at large, by working to create a better life for tomorrow. The company's bylaws cover not only its responsibility for its
the community, with a focus on people and on the planet. income statement, but also its social and environmental impact, which
is defined by the achievement of specific objectives for the common
Banca Mediolanum demonstrates its economic responsibility through good: promoting an awareness of wellbeing and educating the new
its solid business model, thanks to which the Group has posted one of the generations about "innovability" (innovation and sustainability).
best net profits in its history: EUR 434 million, notwithstanding the serious
repercussions of the COVID-19 pandemic, also on the financial markets. Responsibility to our people takes the form of full protection of their
The investments we have made over the years in digitalising our rights and health, which are priorities in a context such as the one
processes wherever possible meant that we could keep working even generated by the pandemic. The Group has made considerable efforts
during the months of the strictest lockdowns, without reducing our to implement and extend various internal activities and processes
level of customer service, and while keeping our employees, Family which were necessary for the swift, successful implementation of
Bankers and contractors safe thanks to remote working. All the changes to working methods, while also guaranteeing operativity
business lines made a significant contribution. Thanks to the excellent and keeping the working environment safe. A number of initiatives
commercial results, the impact on the 2020 balance sheet was positive have been designed and introduced in order to provide financial,
and this has enabled the Group to achieve record net assets, with psychological and organisational support to families. The priority has
assets under administration and assets under management totalling been to guarantee safety across all our offices and working areas,
EUR 93.3 billion. Our lending operations were never interrupted, with by implementing safety rules and guidelines for more than 2,800
a total of over EUR 3 billion of loans and mortgages granted during employees in the 4 different countries in which the Group operates.
the year, taking the total for customer loans to EUR 12.1 billion with the Equally important is the work we have done to upgrade the tools we
cost of risk at 16 basis points, a truly exceptional level for the banking use to manage staff performance and development, by expanding
industry. In terms of the Group's solidity, the Common Equity Tier 1 the provision of training to employees and our Family Bankers.
ratio was 20.4% on 31 December, which is the maximum level.
Our responsibility to the environment and the community at
Our responsibility to our customers drove the Group to support large takes the form of concrete actions and projects designed
a number of initiatives during the COVID-19 pandemic, in the to support the community and protect the environment in
awareness of our responsibilities during this long, drawn-out which the Group operates. In the current economic climate, in
emergency, about which there is much still to be discovered. We which the areas of vulnerability are increasing all the time,
have provided support packages such as loans and guarantee the Group’s fundraising and donation programme has contributed
funds to help our sole-trader and small business customers. to scientific research, and has helped to buy equipment needed
The Group has also launched responsible banking products, in line with by Italian hospitals working on the frontline of the public health
the ESG principles (Environmental, affecting the environment and land; emergency. Meanwhile, in relation to finance with a high social
Social, an area that includes projects with a social impact; Governance, impact, the Group has continued its commitment to microcredit and
which pertains to the company’s inner workings and administration), anti-usury projects with the objective of facilitating financial inclusion,
6 MEDIOLANUM GROUP 2020 SUSTAINABILITY 7
and has also made a concrete commitment to its rescue The actions taken and the results achieved in 2020, as described
lending activity. As of 31 December 2020, the revolving fund in our Consolidated Non-Financial Statement, give an account
made available by Banca Mediolanum amounted to EUR of the extent of the Group's commitment to sustainability. This
2,150,000, with loans disbursed totalling EUR 1,438,840.31. factor is now increasingly at the heart of the decisions and
evaluations made by our stakeholders, and is an incentive
In 2020, the non-profit Mediolanum foundation NPO, for us to proceed in this direction, to offer a better future.
whose objective is to support disadvantaged children through
projects related to basic education, career prospects and the
meeting of primary needs such as food, accommodation, Massimo Doris
CEO
vaccines and medical care, delivered a total of EUR 3,667,534,
Banca Mediolanum S.p.A.
which is an increase of 18% on the previous year.
Environmental protection is a fundamental part of corporate
responsibility, as it favours the use of innovative solutions within
business processes in order to minimise consumption or utilise
resources with a lower environmental impact, while maintaining
high standards of efficiency and safety. All the Group companies
have invested in adopting and applying measures, policies and
behaviours directed towards protecting the environment, and
have introduced plans and activities designed to reduce impact
through projects that target the responsible use of resources. In
general, the concrete actions taken by Banca Mediolanum over
time in connection with environmental sustainability require the
adoption of behaviours aimed at safeguarding the environment,
also by people outside the company. This involves the selection
of our suppliers, as we favour those whose activities are
geared towards environmental and social sustainability.
8 MEDIOLANUM GROUP 2020 SUSTAINABILITY 9
Vision, Mission and Values Vision
Our vision, mission and values have been updated to strengthen the
concept of the centrality of the individual and the related responsibilities, We believe in building a better world day
and have also been brought into line with the present and future context for
Mediolanum.
by day, for humanity and for the planet.
We believe in human relations, and in
The new vision of Banca Mediolanum is pushing the company towards
an awareness of wanting to make a contribution towards improving
a deep-rooted relationship based on
conditions for humanity and the planet, in the awareness that this objective freedom.
can be reached by having a clear vision of market events, with a constant
focus on the centrality of the individual in a mutually beneficial relationship.
We believe that our informed, positive
vision of the world and of life is what
As described in the mission, we need to build a deep relationship, founded
on loyalty, reliability and transparency. The answer can be found in the really makes a difference.
advice offered by Mediolanum, which provides solutions that cover a person's
entire lifetime. Mediolanum’s people need to act innovatively and sustainably,
for the wellbeing of all our stakeholders. Mission
This is “Banking for Freedom”.
In this context, our values are evolving in terms of their content and definition. Building well-informed, long-lasting
We are moving from four values to five, which underpin all our behaviours and
activities:
relationships with people, founded on
› Freedom loyalty, integrity and transparency.
› Relationship
› Responsibility (previously “Commitment”)
Providing unique, customised advice
› Sustainable innovation (previously “Innovation”) and effective solutions that cover the
› Positivity (our new value)
entire lifetime of our customers. Acting
All this speaks to Mediolanum’s intention to strengthen its corporate and innovatively and sustainably for the
social responsibility in order to improve its own situation, as well as that of its
stakeholders and of the community at large. wellbeing of the individual, families
and the community at large.
Banking for Freedom.
10 MEDIOLANUM GROUP 2020 SUSTAINABILITY 11
Values We believe in constant improvement.
We anticipate and respond to people's
challenges, backed by our history and
roots. We develop innovative solutions
Positivity means making that encourage sustainable behaviours
the impossible possible. in the interest of the community at
Underneath our life and business large. Sustainable innovation is our
philosophy is the knowledge we have SUSTAINABLE commitment.
gained, our experience, and the certainty
of what we are doing. It is about keeping INNOVATION
true to this value and transferring this spirit
to others. It is about seizing opportunities
where nobody else sees them.
POSITIVITY
It’s all about the individual.
Human rapport is the fundamental
principle for everyone who works at
Mediolanum. Building relationships
helps us to understand people's
FREEDOM plans, help them manage their
RAPPORT savings, and achieve wellbeing.
Becoming a point of contact for
a customer means we can grow
together.
RESPONSIBILITY
There is no greater value than freedom.
This is the value which Mediolanum has We are people, for people.
used to change the very idea of banking. We are fully aware of the social role we play. We
The freedom of a sincere, genuine know how to act ethically and transparently, even
relationship with people. Truly feeling free if that means making decisions that go against the
to reach goals and fulfil dreams. trend. We are committed to solidarity, education
and development projects that leave a tangible
legacy and have a high social impact.
12 MEDIOLANUM GROUP 2020 SUSTAINABILITY 13
Mediolanum Financial Conglomerate
Group
Flow chart Structure
as at 31/12/2020
Parent company
of banking group
C
Banca Mediolanum S.p.A.
Parent company
of insurance group
C 100% 100% 100%
Mediolanum Mediolanum Mediolanum
Vita S.p.A. Comunicazione Fiduciaria S.p.A.
S.p.A.
100% 100% 100%
Mediolanum Mediolanum EuroCQS
Assicurazioni S.p.A. Gestione Fondi S.p.A.
SGR p.A.
100% 95.5% 100%
Mediolanum International Mediolanum International Bankhaus August
Life Designated Activity Funds Ltd Lenz & Co.
Company (Ireland) (Ireland) (Germany)
4.5% 100%
Flowe
S.p.A., S.B.
100%
Banco Mediolanum S.A.
(Spain)
100%
PI Servizi
S.p.A.
100%
Fibanc S.A.
(Spain)
99.999%
Mediolanum Pensiones
S.A., S.G.F.P.
(Spain)
99.999%
Mediolanum Gestión
S.G.I.I.C., S.A.
(Spain)
* During the reporting period Bankhaus A. Lenz & Co. AG will complete the divestment of its retail operations
on the German market.
14 MEDIOLANUM GROUP 2020 SUSTAINABILITY 15
“Banca Mediolanum’s activities are supported by a solid system of ethics. This system is a dynamic set of rules which always implements the best international practices. Everyone working with the Group is required to respect and apply these rules in their day-to-day activities”. 16 MEDIOLANUM GROUP 2020 SUSTAINABILITY 17
Sustainability governance Policy for the preparation of the Consolidated
Non-Financial Statement (NFS)
Banca Mediolanum has adopted a Code of Ethics in order to disseminate
the values underpinned by professional integrity and compliance with laws
and regulations. The code sets out the behaviours to be followed, and it has The policy describes the principles of the NFS as defined in Directive 2014/95/EU,
been distributed to the subsidiaries so that they may adopt it. The Code of which was enacted in Italy by legislative decree 254 of 30 December 2016.
Ethics serves as a supplement to the Code of Conduct, which is addressed to The document was adopted by the parent company and by the fully consolidated
the administrative bodies, employees, financial consultants and partners. entities in the financial conglomerate.
Along the way to strengthening its stance on sustainability, the Mediolanum The aim of this policy is to:
Group is committed to becoming a sustainability, social and cultural role › Highlight the role of the players involved in the process, whether they are
model. The strategic ESG (Environmental, Social, Governance) guidelines internal or external to the bank;
and policies approved by the Board of Directors take into consideration the › Define the management activities and the interactions between the
creation and distribution of value for all stakeholders. many players involved, as well as the timing of the various phases of the
The main ESG responsibilities are: process and the related checking and approval steps;
› develop company sustainability projects; › Identify the tools used to support the process of logging, compiling,
› define sustainability policies; managing and archiving information.
› coordinate all sustainability activities and guarantee that the strategy
is applied in collaboration with all of the Group’s Departments;
› serve as the main point of contact for non-financial ESG risk control Environmental policy
(for topics defined as material and described in the materiality
matrix); The Group has an environmental sustainability policy, which was approved by
› manage Banca Mediolanum’s social and humanitarian initiatives; the Board of Directors in 2019. It is an operational document that relates to
› prepare the Non-Financial Statement. Mediolanum's responsibility for:
› the purchase and consumption of sustainable products;
Some of the policies enacted at a Group level in 2020 are described below. › energy and climate change;
› waste management and the development of an internal culture of
environmental sustainability.
Sustainability policy
Our sustainability policy encompasses the Group’s strategy and goals in how Human rights policy
it operates, shares its sustainability culture, and defines all the phases of the
Non-Financial Statement reporting process, and it also serves as a compass On 2020 July 2011, the Board of Directors approved the Policy on Human
in managing risks with an environmental, social or governance-related (“ESG Rights, which defines the commitment of Banca Mediolanum and its Financial
risks”) impact, or topics related to such risks. Conglomerate towards protecting human rights according to the highest
international standards, in particular the “2011 United Nations Guiding Principles on
Business and Human Rights”.
18 MEDIOLANUM GROUP 2020 SUSTAINABILITY 19Policy on donations Operating policy on sustainable events
management
2018 saw the issue of the first edition of the Donations Policy (for more on
the concept of donation, see Book II of the Italian Civil Code) and is intended
to highlight the principles underlying the provision of donations by Banca The policy which was approved in 2020 sets out the environmental, social
Mediolanum, by identifying the roles, responsibilities and areas in which such and economic sustainability criteria that need to be considered at every stage
donations are made. of an event, by providing a description of the principles adopted by Banca
Donations can be made: Mediolanum S.p.A. with regard to sustainable events management according
› to individuals, including customers, who find themselves in to the ISO 20121 international standard.
particularly difficult circumstances (for example, in situations created Environmental, social and economic sustainability criteria need to be
as a result of natural disasters or catastrophes); considered at every stage of an event.
› in support of solidarity projects covered by the scope of this policy;
to non-profit organisations or other charitable entities.
Scoring of internal ESG projects using indicators
Policy on responsible products In 2019, Banca Mediolanum developed a tool that was able to use a scoring
indicator to define the sustainability of its projects by effectively measuring
In 2020 the Operating Policy on Responsible Products was issued. It defines the related risks and benefits, using ANASF methodology. In so doing it has
the basic principles and guidelines on sustainability and is designed to pursue increased the internal awareness of environmental ESG impacts, by
the integration of ESG (environment, social, governance criteria in investment integrating them into the process of evaluating an individual project.
decisions. During 2020 the bank extended its commitment in this regard by introducing
an ESG scoring measurement for its functional and tech projects as well.
Mediolanum International Funds Responsible
Investment Policy
In 2020 Mediolanum International Funds confirmed its commitment towards
responsible investment by implementing its Responsible Investment Policy.
The main goal of this new policy is to integrate the ESG criteria into the
process, with particular attention towards active shareholder practices.
Climate change is a global risk that requires immediate action, and this
knowledge underpins our commitment towards listed companies to
encourage the acceptance of the EU's legislative framework, responsible
production and consumption, and to align with goals 7, 12 and 13 of the United
Nations SDGs.
20 MEDIOLANUM GROUP 2020 SUSTAINABILITY 21Sustainability at Mediolanum
Sustainability is an integral part of the values and culture of Mediolanum, with
the aim of developing a solid business which is sustainable in the long term.
This commitment is demonstrated by the intention to generate added
value for all stakeholders. The success of our stakeholders guarantees the
sustainability of the Group's business. This approach to responsible business
management materialises in our way of operating, in our focus on the
centrality of the customer, and the way in which Mediolanum supports its
employees, respects the environment and contributes to the development of
local communities.
In 2019 a multi-year sustainability programme was launched with the aim
of involving the company in supporting the evolution of Banca Mediolanum
towards an increasingly sustainable approach.
This programme, which involves projects with a strategic, tactical and
operational impact, is built on material topics which are defined by means
of the materiality analysis.
The projects that fall under this programme pertain to topics such as:
› Responsible business and centrality of the individual, for example
with regard to the project that led to the evolution of the value
strategy with a definition of the Group vision, mission and values;
› Responsible finance, with projects relating to the offer of products
and services available to customers with a focus on the positive and
negative impacts on the community and on the environment;
› Community support with the creation of the “Mediolanum Insieme”
project to support non-profit organisations locally, but also a
project to develop the company volunteer programme;
› Diversity and Inclusion, with further progress in projects devoted to
the promotion of female talent such as “DonneMediolanum” for
employees, and the “Women in Med” project for our Family Bankers;
› Direct environmental impacts, with the planning of projects for the
measurement of environmental impacts;
› Procurement and supplier rating policies, with a project to increase
the level of knowledge of Mediolanum's partners, also with regard
to their ESG performance.
22 MEDIOLANUM GROUP 2020 SUSTAINABILITY 23This programme was supported by external communication activities so Banca Mediolanum’s commitments on the UN
that stakeholders could be informed of developments on new products Sustainable Development Goals (SDGs)
and services; it was also supported by internal communications to increase
awareness among the internal community (employees and Family Bankers)
of the pathway undertaken by Banca Mediolanum and knowledge of the On 25 September 2015 the United Nations approved the Global Agenda for
sustainable development goals (SDGs). sustainable development and the corresponding 17 Sustainable Development
Goals (SDGs), which are divided into 169 Targets to be achieved by 2030.
The implementation of Agenda 2030 requires a high level of engagement by
Voluntary participation in national and international all members of society, from businesses to the public sector, civil society and
initiatives, partnerships and strategies concerning charities. It also requires concrete actions that will guarantee a stable future
for new generations.
the United Nations SDGs.
For this reason, Banca Mediolanum has also chosen to adopt more
At the beginning of 2021, the Mediolanum Group sustainable behaviours and to contribute to the implementation of
joined the UN’s Global Compact . the SDGs. Our mission, which is in line with our ethics and responsibilities,
is based on values that are aligned to those promoted by the United
Nations. Our approach to banking reflects the respect and commitment that
Mediolanum has demonstrated through its actions and initiatives which are
increasingly carving out the path towards a sustainable future.
Flowe and its partners also actively support the 17 Sustainable Development
Goals. For example, it is involved in reforestation projects (SDGs 13 and 15)
The Compact is an initiative that promotes social responsibility among and water procurement (SDG 6) in Asia and Central America; these goals
companies by endorsing ten founding principles on human rights, labour, contribute to economic support (SDG 1) and the provision of food (SDG 2)
environment and anti-corruption. for families in these countries. For more details, see the 2020 Flowe Impact
Report at www.flowe.com.
24 MEDIOLANUM GROUP 2020 SUSTAINABILITY 25SDG Material Banca Mediolanum SDG Material Banca Mediolanum
Topics initiatives Topics initiatives
Community Rescue loan: by entering into agreements with foundations Diversity and Projects dedicated to the promotion of female talent such as
support and local charitable associations, we act to provide assistance inclusion “DonneMediolanum” for employees, and the “Women in Med”
— and charitable contributions in order to support anyone project for our Family Bankers.
Financial suffering from debt, in order to prevent usury. The purpose of
inclusion the agreement is to identify and provide credit to low income
families and/or those on the poverty line, to allow them to cope
Achieving gender
in an emergency.
Ending world equality and
poverty in all its empowerment for all
forms Basic account: for financially vulnerable sectors; the result of a women and girls
collaboration between MEF, Bank of Italy, ABI and Poste Italiane,
as well as PSP associations.
Direct Trigeneration plants allow the self-generation of electricity
environmental and energy used in heating and cooling. In 2020, these plants
Hardship initiatives for customers and contractors. impacts covered more than 43% of the electricity requirement,
and further reduced CO2 emissions.
Joint projects with foundations and associations, in particular
with the Mediolanum foundation NPO, which supports projects
for disadvantaged children; provide support of and participate Assuring access Global Impact funds, to generate a positive impact
in joint projects with NGOs, such as Mediolanum Aproxima. to energy which is for the environment and the need for resources.
affordable, reliable,
Protection of Inclusive company welfare policies designed to encourage a sustainable and
human capital positive work–life balance and guarantee individual wellbeing. modern for all
— Services and projects have been set up for all personnel, such as
Community the company creche and a range of extra-curricular cultural and Financial Personal savings plans (PIR) to contribute to the recovery
support sporting activities. performance of Italy’s economy.
and solidity
Guaranteeing a —
Collaboration with the Irish Coolmine Therapeutic Community,
healthy lifestyle and which is a centre for drug and alcohol rehabilitation for mothers Responsible SRI investments such as Best Brand Socially Responsible
promoting wellbeing and children. Finance and Mediolanum Innovative Thematic Opportunities.
for everyone of all Promoting durable,
ages inclusive, sustainable
economic growth,
full and productive
employment, and
Supporting Our work with Centodieci places human capital at the forefront.
dignified work for all
communities It takes the form of events held across Italy, specific training
— and educational opportunities featuring guest speakers who
Growth reflect the values of Banca Mediolanum. There is also an online
of human magazine which explains all the projects and events run by
capital Centodieci, and which offers an outlet for cultural discussion
Guaranteeing with a blog covering issues such as innovation, technology
inclusive, equal and common values.
education and
promoting
Employee training programmes.
lifelong learning
opportunities for all
26 MEDIOLANUM GROUP 2020 SUSTAINABILITY 27SDG Material Banca Mediolanum SDG Material Banca Mediolanum
Topics initiatives Topics initiatives
Cybersecurity Privacy policies to safeguard the protection and management Responsible Banca Mediolanum is committed to fighting all forms of corruption
and responsible of customer data. Business in the public and private sector as defined in national legislation,
data usage certain provisions of which have implemented the UN Convention
— Development of innovative products that bring significant Against Corruption, the Strasbourg Criminal Law Convention on
Innovation benefits for customers and influence the efficiency and efficacy Corruption and the OECD Guidelines.
of our internal processes.
Building strong Banca Mediolanum has its own 231/01 Model.
infrastructure, Promoting peaceful,
One of the most important documents in the body of internal
promoting inclusive, inclusive societies regulations is the Policy on the Fight Against Money Laundering
sustainable for sustainable and the Financing of Terrorism.
industrialisation, development,
and promoting providing access to
innovation justice for all, and
building efficient,
responsible, fully
Procurement Responsible selection of suppliers,
inclusive regulatory
and supplier using an assessment that also includes social criteria.
and legal authorities
rating policies
Global Impact funds: investing in companies that can
Guaranteeing generate a positive socio-environmental impact.
sustainable models
of consumption and
production
Direct In 2016, in order to disseminate an environmentally friendly culture
environmental within the company, the Group launched a project whereby a tree is
impacts planted whenever a Mediolanum employee has a baby. What are the SDGs?
On 25 September 2015 the United Nations
The list of company cars in the Policy and Operating Procedure approved the Global Agenda for sustainable
on the Allocation, Use and Management of Company Cars comes
with a set of maximum limits on CO2 emissions and mileage. development and the corresponding 17
Adopting urgent
measures to combat The fleet includes cars powered by alternative fuels and with hybrid, Sustainable Development Goals (SDGs), which
the effects of climate electric or green engines, and these models are preferred when are divided into 169 Targets to be achieved by
the company fleet is upgraded.
change 2030. Implementing the Agenda requires a high
Global Impact funds: guaranteeing a focus on the environment level of engagement by all members of society,
and the need for resources. from businesses, the public sector, civil society
and charities to universities, research institutions
and media and cultural outlets.
28 MEDIOLANUM GROUP 2020 SUSTAINABILITY 29Materiality analysis Materiality matrix
The Mediolanum Group, in line with its mission, has always placed its The materiality matrix, combined with the Group’s business model,
stakeholders at the forefront, with a service model based on its relationship serves as the basis for identifying the strategies the company bases its
with customers, Family Bankers and employees as catalysts in creating value. sustainable business on. To this end, the CEO shared it with all of the
For this reason, opportunities for debate and feedback on sustainability have company’s Management; it was then evaluated by the Risks Committee, and
been organised in order to cover the issues which are considered to be most subsequently approved by the Board of Directors.
important and aligned with the Group’s objectives.
The preparation of the 2019 materiality analysis highlighted the cross-
2020 was a year characterised by instability in the socio-economic context cutting nature of certain material topics, which led to the regrouping of
triggered by the COVID-19 pandemic, the short-term impact of which may the previous 6 pillars (Governance and Compliance; Responsibility to the
have influenced the company's performance, also in relation to non-financial customer; Social responsibility; Environmental responsibility; Responsibility to
indicators. staff; and Economic Responsibility), into four pillars:
› Economic responsibility, which in relation to the topic of responsible
business, includes topics relative to Governance and Compliance;
The materiality matrix as a strategic lever in › Responsibility to customers;
creating value › Responsibility to our people, which relates to Mediolanum's
commitment to its employees and to the Family Bankers;
› Responsibility to the environment and the community at large,
Materiality is the first step in the preparation of a non-financial statement which groups together social responsibility and environmental
(NFS) in line with the GRI Standards used in reporting, in accordance with responsibility.
Italian legislative decree 254/16.
It can be seen as a key lever for the creation of value for the Group’s strategic
sustainability plan and for the description of the main material topics to be
reported on in the NFS.
The launch of the stakeholder management programme in 2020, the year
following the last update of the materiality analysis, has given the Group the
chance to put into practice initial steps which will be useful in implementing
a proactive, programmatic approach for the next update of the materiality
matrix and of the medium-term strategic plan.
30 MEDIOLANUM GROUP 2020 SUSTAINABILITY 31Dialogue with Stakeholders
EXPLORATION MANAGEMENT PRIORITY FUNDAMENTALS
The Mediolanum Group, in line with its mission, has always placed its
5,0
stakeholders at the forefront, with a service model based on the relationship
4,9
with customers, Family Bankers and employees, which serves as a catalyst
in creating value. For this reason, their opinions on the most important
3,8 sustainability-related issues are taken into consideration, in line with the
Group’s objectives. In 2019 the Mediolanum Group launched a stakeholder
4,7 Performance
and asset
engagement project with the collaboration of the internal company
4,6
stability
departments, who interacted directly with all stakeholder categories
on a daily basis.
4,5 Responsible
business
Relevancy for Stakeholders
4,4 Cybersecurity
and responsible Central
use of data role of the
individual
4,3 Growth
of human
Responsible
capital
Finance
4,2 Financial
inclusion Innovation
Protection
4,1 of human
capital
Community
4,0 support
Diversity
3,9 and inclusion
3,8 Direct
environmental
Model based
impacts
Procurement
3,7 and supplier
rating policies
on relationship
3,6
3,5
3,5 3,6 3,7 3,8 3,9 4,0 4,1 4,2 4,3 4,4 4,5 4,6 4,7 4,8 4,9 5,0
Relevancy for the Company
Responsibility to Customers Responsibility to our people
Responsibility to the environment Economic Responsibility
and the community and large
32 MEDIOLANUM GROUP 2020 SUSTAINABILITY 33In 2020, our stakeholder engagement efforts evolved into stakeholder
management, in order to manage on a continuous basis our relationship
with them by using various engagement methods and continuous feedback
mechanisms. This approach has led to the transition from a reactive
model (stakeholder engagement) to a proactive, programmatic approach
(stakeholder management) to dealing with stakeholders' interests.
The project was integrated into the strategic plan, in order to:
› anticipate various risks, including those pertaining to reputation
and operations;
› understand the needs and expectations of stakeholders over
the medium to long term, to support strategic planning;
› monitor customer satisfaction and reputation, and see if,
and to what extent, our stakeholders have a positive perception
of their relationship with our organisation;
› transform threats into opportunities, by jointly identifying
solutions which create shared value for the organisation
and for its stakeholders.
4. Monitoring 1. Stakeholder
and follow-up mapping and
prioritisation
3. Implementation 2. Definition
of the of the
stakeholder engagement
engagement plan
plan
34 MEDIOLANUM GROUP 2020 SUSTAINABILITY 35Stakeholders and communication tools Stakeholder Communication Areas of the company
category tools involved
Below are the communication tools periodically used to interact with the individual
stakeholder categories. Media - Press conferences - Communication and Business
- Press releases Marketing Department
- Regular meetings
- Opening of corporate events to the media
- Editorial features
- Publishing products
Stakeholder Communication Areas of the company - Telephone contact
category tools involved - Social networks
Customers - Assessment of customer satisfaction - S ales Department
- Quarterly customer experience survey - Investment Banking Industry - Institutional meetings - Institutional Relations Division
- Customer experience surveys on specific issues - P rivate Asset & Wealth Management associations - Group representatives in membership bodies
- Brand reputation survey Department
- Local events -C ommunication and Business
- Social networks Marketing
- MPM/Direct mail - Innovation, Sustainability and Value
Strategy Department
- Chairman
-V ice Chairman
- CEO
Institutions - Regular meetings - Legal and Compliance Division
Employees - Intranet -H R Department
and regulators - Institutional Relations Division
- Periodic meetings -C ommunication and Business
- Good News Marketing Department
- Internal social network - Innovation, Sustainability
- House Organ and Value Strategy Department
- Non-work activities
- Informative events
- Quick survey
- Engagement survey
- Welfare survey
Suppliers - Regular meetings - Chief Financial Officer
- Telephone contact - Purchasing and Corporate Services
Shareholders and the - Activities of the Investor Relations Office -C hief Financial Officer - Portal Division
Financial Community - Regular meetings - CEO - Questionnaires
- Telephone contact -C orporate Affairs Division
- Roadshows - Chairman
- Broker conference
Community - Media Relations - Communication and Business
- Public Relations Marketing Department
- Periodic customer satisfaction surveys - Innovation, Sustainability
Family Banker - Regular meetings - S ales Department - Brand reputation survey and Value Strategy Department
network - Company portal (B.medNet) -C ommunication and Business - Brand equity survey - Sales Department
- Text and email campaigns Marketing Department - Survey on the efficacy of advertising communications
- Network assistance and support - Innovation, Sustainability - Meetings and events locally and at head office
(SAS and SARC) and Value Strategy Department - Activities of the Mediolanum foundation NPO
- Periodic customer satisfaction and specific brand - Investment Banking - Social networks
reputation surveys for Family Bankers - Banking Operations Department
- Experience surveys on relationship channels, for - Chairman
Family Bankers -V ice Chairman
- Events
36 MEDIOLANUM GROUP 2020 SUSTAINABILITY 37Economic
responsibility
Economic
responsibility
Mediolanum seeks to build value by CET1
20.4
operating in an ethical, sustainable
manner while pursuing positive outcomes
and shared wellbeing.
Net profit
of EUR
434
million
38 MEDIOLANUM GROUP 2020 SUSTAINABILITY 39Financial performance
responsibility
Economic
During the year, the Insurance Policies business collected EUR 137 million in
premiums, which is an increase of 29% over 2019.
and solidity
Strong efficiency-improving measures were applied to our current projects
At the core of its business, Banca Mediolanum has a solid system of during the year; this allowed us to launch new projects without major
ethics consisting of a set of rules which are constantly adjusted in order to cost acceleration. One of these new projects is Flowe, a new e-money
implement the best international practices. Everyone working with the Group bank targeting younger customers, and which is based on the concept of
is required to respect and apply these rules in their day-to-day activities to Innovability (Innovation and Sustainability).
ensure that the company acts in a way that guarantees that ethics form
the cornerstone of its business and everything it does. In terms of the Group's solidity, the Common Equity Tier 1 ratio was 20.4%
As part of good business management, the Group is committed to on 31 December.
guaranteeing performance and solidity by monitoring the quality of its On several occasions during 2020 the Italian regulatory authorities advised
assets and by controlling costs. Italian banks that they should not distribute dividends, in order to preserve
their capital stocks and better absorb any shock impact on their financial
During a year overshadowed by the COVID-19 pandemic, which had serious statements, due to the pandemic. These restrictions will remain in place
repercussions on the financial markets, the solidity of the bank's business until 30 September 2021. The CET 1 ratio of Banca Mediolanum, which is at
model resulted in one of the best levels of net profit in the history of the maximum level, has already taken into account the proposal made to
the Group: EUR 434 million. The investments we have made over the the shareholders meeting to pay out dividends of EUR 573 million between
years in digitalising our processes wherever possible meant that we could May and October 2021, provided that there are no new measures and/or
keep working even during the months of the strictest lockdowns, without recommendations to the contrary issued by the regulatory authorities.
reducing the level of customer service, and while keeping our employees and
contractors safe thanks to remote working.
All the business lines made a significant contribution. Thanks to the excellent
business results, they had a positive impact on the 2020 financial statements.
Highlights include the results in terms of Total Net Cash Flow of EUR 7.7
billion; this, together with the full recovery of the financial markets in the
second half of 2020 allowed the Group to achieve a record level of total
capital, with Administered and Managed Assets of EUR 93.3 billion.
Lending activity continued uninterrupted during the year, totalling over EUR
3 billion including loans and mortgages granted and taking the Customer
Loans total to EUR 12.1 billion. The cost of risk remained at a score of 16 base
points, which, looking at the banking industry as a whole, is an outstanding
level.
40 MEDIOLANUM GROUP 2020 SUSTAINABILITY 41responsibility
Economic
Liquidity coverage ratio
382%
NPL Ratio
0.56%
Administered
assets EUR
93.3
million
42 MEDIOLANUM GROUP 2020 SUSTAINABILITY 43Responsible business
responsibility
Economic
Banca Mediolanum is committed to
fighting all forms of corruption in the The fight against corruption is necessary to assure the socio-economic
public and private sector, as defined in growth of an organised community of people.
national legislation, certain provisions Banca Mediolanum has a corruption prevention model as per
of which have implemented the UN Italian Legislative Decree 231/01, which dictates that Italian
companies must develop a management liability structure for a
Convention Against Corruption, the number of specific crimes or offences committed in their interest or
Strasbourg Criminal Law Convention on by their representatives and/or contractors.
Corruption and the OECD Guidelines. Banca Mediolanum has a corruption prevention model whose
purpose is to prevent any attempt at corruption, any inducement to
give promised benefits, or the acceptance of any benefit if the aim
is the omission of the duties of the relevant role, or the breaching
of obligations of loyalty. Banco Mediolanum performs an annual
criminal risk compliance assessment in accordance with the Spanish
Criminal Code. The results of this assessment are presented to the
Ethics Committee, the Risk and Control Committee and the Board of
Directors.
Lastly, the Group’s taxation strategy is defined in accordance with its
sustainability objectives, in the awareness that the adoption of proper rules
for the management of tax variables is essential for shareholders and for all
stakeholders interested in its activities.
44 MEDIOLANUM GROUP 2020 SUSTAINABILITY 45Procurement and supplier rating
responsibility
Economic
The various stages of the purchasing process are depicted below.
policies
Definition Selection of Negotiation of Formalisation Monitoring of
of requirements supplier financial terms of purchase purchases
Banca Mediolanum has implemented supplier rating criteria that include > Assistance with > Market analysis > Requesting > Formalization > Monitoring of
> Screening of contract deadlines
a social and environmental impact analysis of the services and products identification of
requirements of suppliers
tenders and
analysing (management and contracts
that they provide. Currently, the process used by the Group to source its > Definition of offers received of contracting > Monitoring of
contracting strategy (assessment of procedure) suppliers’ register
suppliers covers an assessment of governance and ethics, as well as aspects (direct negotiations, bids) > Formation of order > Independent
> Archiving of monitoring of
connected to human rights, worker health and safety and environmental or tender) > Negotiation of
financial terms contract/order purchases
performance. With a view to a continuous, responsible, and sustainable
improvement of its procurement process, several years ago the bank
partnered with Bureau Veritas, a body which is recognised and accredited by Role of the Purchasing office
the leading Italian and international inspection, compliance and certification
organisations.
This collaboration addresses the topics covered by ISO20400:2017, which
is the first international standard on responsible procurement. It allows Banca Mediolanum favours innovative solutions that minimise the
companies to take better-informed decisions by introducing criteria and consumption of energy resources, or which require the use of low-
processes for rating suppliers, products and services on the basis of their environmental impact resources while maintaining high standards of
sustainability performance. efficiency and safety. Procurement helps with selecting projects that can
In 2020, the initial results from this collaboration came in, and the innovate our business processes in order to reduce the use of these
supplier rating system was added to the Register of Suppliers. It includes resources, bringing particular benefits to the company and to our
information on the social and environmental impacts of suppliers’ customers.
products and services, including notes on their supply chain as regards the
respect towards and protection of human rights.
The screening model used for sustainability criteria is also applied during
the tendering phase, so that the tender specifications can be extended to
include the socio-environmental impact of suppliers’ products and services.
46 MEDIOLANUM GROUP 2020 SUSTAINABILITY 47Responsibility
to customers
to customers
Responsibility
48 MEDIOLANUM GROUP 2020 SUSTAINABILITY 49Responsibility to customers The Italian bank
In line with its vision, Mediolanum has always offered its customers a most
relationship based on freedom and the human factor, and places people
at the heart of its business model through its resources, tools and services. recommended
Mediolanum’s offer includes sustainable products and services, in order to
by its customers Customer
provide a comprehensive overview of our customer services. satisfaction 97%
2020
Our commitment to the service offer is based on the importance of high
Customer
customer satisfaction, by providing increasingly flexible, state-of-the-art
services such as digital platforms, which for remote customer operations – a satisfaction*
factor that has been of primary importance in the context of 2020. Through
the innovation of products, services and tools, our customers have had
to customers
Responsibility
instant access to their bank and to the Family Bankers, who are always on
hand to provide guidance in their investment decisions.
One of the factors that was considered was customer satisfaction with
services such as mobile banking, and the propensity to recommend their
Centrality of the customer bank.
The result of the study placed Banco Mediolanum in the top 3 spots across
Mediolanum was born as “the bank built around the customer” and has all 15 indicators analysed, specifically: 8 in top place, 4 in second and 3 in
always placed the customer at the heart of its business model. third place.
This strong focus on understanding our customers’ needs is based on the
relationship between the customer and the Family Banker, which is
the role that helps our customers to make the most of their finances and Customer support during times of hardship
achieve their goals. While maintaining the centrality of the individual as its
primary objective, along with customer care and outstanding service, the In addition to the action taken in response to the COVID-19 emergency, Banca
Group’s strategy is designed to guarantee the transparency and clarity of Mediolanum also assisted sections of the population who were hit by natural
information, and a service based on a multi-channel digital concept. disasters, totalling EUR 62,000.
According to the 2020 Customer Satisfaction survey conducted by BVA
Doxa, Banca Mediolanum is rated first for overall customer satisfaction
by customers who work with Mediolanum for their main services, with a
satisfaction rate of 97% (score from 6–10). Beyond this, the bank was
recognised for other significant achievements, such as its top satisfaction
rankings for its Family Bankers and skills, and its top marks received for the
quality of its Banking Center.
In Spain, since 2012 the independent consulting firm Stiga has been
performing a Customer Satisfaction Benchmarking study in order to rank
the financial institutions operating on the Spanish market in terms of customer
satisfaction and involvement. The study looked at various parameters and
gathered opinions from a customer base of seventeen banks. * Customers who voted for a score of 6–10.
50 MEDIOLANUM GROUP 2020 SUSTAINABILITY 51Events
For the Group and the network of Family Bankers, events are an opportunity In 2020
and channel for transmitting the value of the customer relationship, and for involving
disseminating our financial culture. In the first two months of 2020 more than 9
300 in-person events were organised, with the involvement of approximately national 570,000
15,000 participants. The unexpected public health emergency which began events people
in March inevitably halted all in-person events and led to the introduction of were held,
a new way of meeting customers: Digital Events. Nine national broadcasts
were held. They were transmitted on all the Bank’s social channels with
the involvement of over 570,000 participants. Four hundred events were
organised directly by the Family Bankers across the country. Once again this
to customers
Responsibility
year, the sponsorship of the Giro d’Italia was an opportunity to maintain our
relationship with our customers, despite the unusual circumstances. We were PERSONALISATION, SECURITY AND INNOVATION IN FINANCIAL
present at various locations across the country and all events were held in SERVICES
strict accordance with safety protocols to assure the protection of everyone
involved. 2020 was a year marked by the terrible coronavirus pandemic. Although the
In Spain, with a series of professional, cultural or sporting events, Banco pandemic has been extremely dramatic, it has also highlighted the founding
Mediolanum has been gaining visibility and strengthening its relations with values and principles that underpin the existence and validity of the Banca
existing and potential customers, helping to disseminate the values of our Mediolanum model. The central role of the customer relationship and
company. the acceptance of responsibility, from Top Management down to every single
person working within the banking system, has allowed us to mitigate the
dramatic impact of COVID-19 wherever possible. The events have acted as a
ISO20121 sustainable events catalyst for the values, which, in this emergency situation, have won approval
for the Group among customers and prospects.
From September 2020, in view of the objectives received after the review of
sustainable events management, 92 events underwent a quality assessment This has allowed the value of our Family Bankers to become tangible
in collaboration with the Sustainability Office. The analysis was conducted and concrete.
online by the Events Organisation office over Microsoft Teams. The analysis The Family Bankers have been able to maintain continuity for customers in
assessed the ISO 20121 categories of interest, namely environmental, social total safety, thanks to the technology made available by our company.
and economic impacts. Specific aspects were allocated to each category, All this has translated, year-on-year, into a vertical increase in the main
and when added together they provided an overall picture of the events’ indicators of Banca Mediolanum’s business: gross revenues, assets under
sustainability levels. The assessment sheets were completed after the events custody, assets under administration, loans disbursed and the use of e-money
were held in order to obtain reliable data. instruments.
52 MEDIOLANUM GROUP 2020 SUSTAINABILITY 53MULTI-CHANNEL APPROACH - DIGITAL SERVICES REDUCE Responsible Finance
INEQUALITIES
Some time ago, Banca Mediolanum S.p.A. (the parent company of the
The tools used to access services were designed to meet customers’ various Financial Conglomerate and Banking Group) and its subsidiaries launched a
needs. Digitalisation allows customers to access remote baking services, programme of awareness on the role of conducting responsible business
bringing their bank to them through telephone access, mobile apps or the through a commitment to doing business in a way that respects people
Internet. Furthermore, a Family Banker is always available to help make and the environment; by placing the customer in a central position; and by
investment decisions. Mediolanum’s model is based on a multi-channel pursuing the growth of the communities in which it operates.
approach which proved to be particularly effective during the acute phase The issue of sustainability, as an integral part of the values of the
of the pandemic. Through digital services, we have been able to close Mediolanum Group, translates into the development of products and
gaps, overcome barriers and build a more sustainable world. With the services such as the Eco loans and mortgages, responsible investment
Mediolanum app, which is compatible with Apple’s VoiceOver, the goal services, and the creation of a new "green" debit card, which will contribute to
to customers
Responsibility
was to promote ways to interact with banking services, thereby favouring reducing the consumption of plastic by 84%.
inclusivity to the benefit of all, not only those with disabilities such as visual
impairment or blindness. Customer-facing communications are thus directed towards promoting our
offer by unleashing a targeted creative approach which, on the one hand,
In 2020, the mobile app gained ground, with a growth of almost 400,000 favours the recognition of the sustainability value of our projects and
logins per day during lockdown. on the other hand, highlights the large number of actions taken by the
bank, including its consolidated green commitments through the partnership
Similarly, our over-the-phone banking line worked with renewed with zeroCO2.
commitment to support and assist our customers on a continuous basis.
The link between sustainability and innovation also translates into
In terms of execution of transactions, the website is still the preferential new solutions designed to encourage sustainable behaviours among
choice for customers, with 8.4 million transactions during the period, an the community at large. This premise has given rise to Flowe, the new
increase of more than 870,000 compared to 2019. Mediolanum Group company which was formed in order to establish a
significant, concrete presence in a new market segment – sustainability
and individual wellbeing – by offering an innovative, fully digital banking
service.
54 MEDIOLANUM GROUP 2020 SUSTAINABILITY 55You can also read
