Page 94 - Consolidated Non Financial Statement

Banca Ifis

| 2020 Consolidated Non-Financial Statement
6.2 Sustainable finance

[FS2]
Policies and other reference documentation
• Group Policy for managing the Most Significant Transactions (MSTs)
• NO 112 – Leasing BU - Leasing preparation process (Banca Ifis)
• Code of Ethics
• Group Lending Policy

Banca Ifis pursues the sustainable finance model through measures aimed at mitigating potential negative
impacts on the environment and society (including aspects linked to human rights ) and the development of products
30
in support of sustainable lifestyles and consumption models by customers.

The Group is sensitive to the indirect social and environmental impacts that may be generated by the business.
Therefore, it addresses the topic by regulating the sectors in which it operates with reference to the type of products and
services it offers through its Business Areas, considering also the potential reputational repercussions of any negative
events on the Group.

As for leases, which involve providing assets to several industrial sectors, different criteria are envisaged, according
to counterparty and type of asset, governing operations as part of the creditworthiness assessment process,
such as:

• counterparty criteria: sectors in which the Group has decided not to operate or to carefully examine each
individual case, according to processes involving the competent structures within Banca Ifis (e.g. transportation
of hazardous materials and asbestos, nuclear waste disposal, gambling, etc.);
• asset type criteria: specific assets that the Group has decided to exclude from its operations because they
negatively impact the environment (e.g. Production machinery and equipment such as treatment plants).

The Banca Ifis Group applies mechanisms for managing social and environmental impacts including what are
termed the Most Significant Transactions (MSTs), i.e. transactions whose intrinsic characteristics may modify the
structure or risk profile of the Group companies.

This is why it has chosen to define a list of sectors applicable to all transactions carried out by the Group's entities with
potential environmental or social impacts that qualify as most significant transactions. The financing arrangements with
counterparties that operate in such sectors are subject to a more stringent assessment process that involves an
assessment of their creditworthiness by the competent bodies as well as an analysis by Risk Management, which
expresses its opinion.

In 2020, Risk Management was submitted a transaction that came under the scope of Most Significant Transactions
insofar as the counterparty operated in an economic segment to be assessed in terms of its social and environmental
impact. The analyses performed were favourable and an opinion in favour was given.

Starting 2019, the Bank has launched a series of products/services in favour of lifestyles that can improve the quality of
life of customers and stakeholders. The project, which has become the #hashtag “Ifis Green”, takes the form of an
innovative financial offer ranging from lease contracts for the purchase of electric/hybrid plug-in vehicles to the lease/hire
of air purifiers and innovative solutions like the rental of new generators of water from the atmosphere to save water.

30 For example, in respect of risks relating to segments at high reputational risk, such as those linked to the manufacture, processing and
marketing of weapons.

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