Press Release

Siena, 4 August 2023 – Banca Monte dei Paschi di Siena (Banca MPS) has set ambitious targets to reduce financed emissions by 2030 in three of the most GHG-intensive sectors¹ of its lending portfolio. This is in line with the commitments undertaken by joining the Net Zero Banking Alliance (NZBA), the initiative promoted by the United Nations to accelerate the sustainable transition of the global economy towards the goal of net zero emissions by 2050.

The definition of the "Net Zero" targets confirms Banca MPS's strong commitment, set out in its 2022-2026 Business Plan, to support the decarbonisation of the real economy.

From the 2022 baseline, Banca MPS aims to achieve the following goals, defined on the basis of the Net Zero 2050 scenario released by the Network for Greening the Financial System (NGFS):

• for the Power Generation and Distribution sector, a 77% reduction in financed emissions (Scopes 1 and 2) starting from a baseline of 196 thousand tons of CO2-equivalent;
• for the Oil & Gas sector, a 40% reduction in financed emissions (Scopes 1, 2 and 3) starting from a baseline of 656 thousand tons of CO2-equivalent;
• for the Iron & Steel sector, a 29% reduction in financed emissions (Scopes 1 and 2) starting from a baseline of 1067 thousand tons of CO2-equivalent.

Achieving the financed emission reduction targets will require further developments in our credit strategies and processes and an increase in green lending towards clients operating in these sectors, supporting their transition strategies towards decarbonisation.

¹ NZBA identifies nine macro priority GHG-intensive and GHG-emitting sectors: Oil & Gas, Power Generation & Distribution, Iron & Steel, Aluminium, Cement, Coal, Real Estate, Agriculture and Transport