Andrea Orcel, CEO of Unicredit
How Unicredit spent the money raised with social bonds
After having issued the first in June 2021 Senior Preferred Green Bond for a value of one billion and the first 155 million Retail Social Bond, Unicredit wanted to reveal how he used the money raised through the publication of the Sustainability Bond Report. The entire proceeds of the Green Bond was used to finance investments in renewable energy throughout Italy, specifically: 408 million euros in photovoltaics, 293 million euros in wind and 44 million euros in biomass. Also in Italy, 228 million euros were invested in green buildings, through mortgages belonging to the Top 15% Mortgages (classified according to energy class) and 27 million euros in Real Estate.
The proceeds of the Social Bonds have funded projects that have a positive social impactwith a focus on social and care services (75.1% of allocations)but also education and training, health and medical assistance. The indirect impacts generated by the proceeds of the bonds include a total of 1.52 million beneficiaries (149% of the 2021 target); the provision of 2.62 million hours of training, 482 training courses, 193 professional internships, 108 social integration activities and the provision of 1,322 beds in retirement homes, 1.21 million medical services and 555 subsidized housing.
Among the initiatives funds financed by UniCredit, for example, Anffas Sibillini Onlus of Maceratawhich thanks to the support of UniCredit, was built “The House of the Heart “, a place where you can carry out your own initiatives and provide independent housing for people with severe disability. The association carries out activities to protect the rights of people with intellectual and / or relational disabilities and to support their families.
“In UniCredit – explained the CEO Andrea Orcel – we are committed not only to the transition to a greener economy, but also to ensuring that it is fair and just for all of society. Sustainability is at the heart of ours way of doing business: is the foundation of our corporate culture and ensures that we always do our best in the interests of all of ours stakeholders. We will continue to enhance what we have done with our first courses Green and Social Bond and to work to create a more sustainable and equitable future for both businesses and people. In as a bank, it is our responsibility to achieve our purposethat is to provide communities with the levers for progress and in doing so, have a social impact and environmental positive“.
The uses in detail
75% of the proceeds from the Green Bond went to renewable energy while 25% to green construction. The most of portfolio (44%) is allocated in Central-Southern Italy, the remainder being distributed between the North-West (21%), North-East (4%) and the rest of the country (31%). Furthermore, 77% of the portfolio was assigned to the Corporate segment, which includes renewable energy and commercial construction projects, while the remainder 23% was allocated to the TOP 15% Mortgages (classified according to the energy class). The total annual CO2 savings so far amounted to 718,009 tonnesreducing the intensity of the carbon impact of 718 tons of CO2 saved per year for every million allocated. Among the exemplary assets is the Galileo portfolio of photovoltaic plantswhich covers the needs of around 70,000 households in Italy with a significant CO2 saving of around 83,750 tons per year.
Among the loans disbursed is that relating to the restructuring of theHotel Britannique in Naples, which has improved the building’s energy efficiency class from “F” to “A1” with CO2 savings of 68 tons per year. The Retail Social Bond has financed 51 social impact initiatives in Italy to date, with 98% of the beneficiary organizations who have achieved or exceeded their social goals. Of these, 100% have strengthened their skills and improved their capacity to measure their social impact, while 96% have increased their economic sustainability e financial.
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