The Board of Directors (BoD) of Intesa Sanpaolo approves the strategic guidelines and policies on sustainability (Environmental, Social and Governance) and related disclosures, with the support of the Risks and Sustainability Committee, the involvement of the other Board Committees and all the main corporate bodies, including dedicated ESG structures and management levels. [...] Supported by the Risks and Sustainability Committee, the BoD: - approves the Code of Ethics (and its updates), which describes Intesa Sanpaolo's commitment, among others, to social and environmental responsibilities, and the Group's Code of Conduct; - defines and approves strategies and policies on sustainability (ESG), including the social and cultural responsibility model and the actions to be undertaken to fight climate change, taking into account the objectives of solid and sustainable creation and distribution of value for all stakeholders; - defines and approves risk objectives, which incorporates ESG risks and, in particular, climate and environmental risks; - approves the list of ESG sensitive sectors relevant to the lending activities, assessing them based on the analysis of the external environment and in accordance with the Group's strategic and sustainability objectives; - approves the results of the impact and financial materiality analysis, which identifies the aspects related to environmental, social and governance sustainability that are relevant with regard to the considered impacts, risks and opportunities, in compliance with the applicable regulations; - approves the Consolidated Sustainability Statement, ensuring that it is drawn up and published in accordance with the current regulations, after examination by the Management Control Committee, as well as all other reporting of note in this area - including the Climate Report; - approves the Pillar 3 disclosure on environmental, social and governance risks. [...] The Committee supports the Board, inter alia, in: - evaluating and analysing sustainability (ESG) issues associated with the Bank's activities; - reviewing and approving proposals associated with strategic, business and financial plans, also taking into account the sustainability policies (ESG) and the budgets of the Bank and the Group, further to the evaluation of the stress test results; - approving the strategic guidelines and policies on sustainability, including the corporate social and cultural responsibility model and the fight against climate change to also ensure more efficient risk monitoring in this field and taking into account the objectives of solid and sustainable creation and distribution of value for all stakeholders; - assessing and determining matters relating to the materiality analysis, both in terms of impact and financial materiality, also with the purpose of approving the Consolidated Sustainability Statement. This analysis identifies aspects of environmental, social and governance sustainability that may be significant, considering impacts, risks and opportunities, in accordance with applicable regulations and the associated methodology; - verifying that sustainability risks - when defining risk appetite and, where appropriate, risk tolerance - and in particular climate and environmental risks, are included in the framework for determining risk appetite and in reviewing and assessing the risks indicated; [...] The ESG Control Room, among its activities: - supports the Steering Committee in the processes of the Business Plan and Budget, in the examination and evaluation of proposals related to ESG guidelines and initiatives relevant at Group level, assessing priorities, metrics and targets (KPIs); - analyses policies, including the Group's social and cultural responsibility model to combat climate change; - provides evaluations on proposals related to the Group's ESG commitments (e.g., decarbonisation targets) and their main business implications; - offers evaluations and recommendations on proposals to join major voluntary initiatives and the related action plan necessary to achieve the resulting objectives, monitoring the progress of activities and outcomes; - analyses and shares, in alignment with the strategic guidelines and with the support of technical/real estate functions, the Group's Own Emissions Plan proposal for presentation to the competent Bodies, monitors the implementation of the necessary activities to achieve the defined objectives and track the achieved results; - analyses the integration of ESG criteria in equity investments and credit strategies; - review the main ESG reports prepared by the competent structures to monitor initiatives and the main ESG targets/objectives (Business Plan and Budget KPIs), assessing the main determinants and identifying any steering actions with the contribution from the Divisions; - shares the findings of ESG regulatory monitoring activities and their related impacts on the Group's operations and examines potential impacts of ESG trend in the external context, including those related to other players market needs and consumer preferences; - receives updates on relevant ESG-related requests from Regulators or Authorities reported by the reference functions (Divisions and Governance Areas of competence), along with the related responses required for submission to the Bank's Bodies, if applicable. Additionally, with the aim of activating a central coordination for the implementation of sustainability-related activities, the ESG Control Room is supported by the following Tables: the ESG Coordination Table, with the primary purpose of sharing, updating and monitoring the ESG-related activities and objectives, with collegial participation from all Governance Areas and Business Divisions through their respective Sustainability Managers; the Sustainable Investments and Insurance Table, ensuring overall supervision of the ESG initiatives of the Wealth Management and Insurance Divisions. [...] Sustainability Managers are appointed by the Head of each Governance Area/Division and are responsible within their Governance Area/Division for overseeing ESG topics, acting as coordinators on ESG issues and monitoring the implementation of ESG initiatives, ensuring the dissemination of ESG guidelines, best practices and priorities and the preparation of the contributions requested for sustainability reporting. [...] The ESG Risk Assessment Process consists of an in-depth assessment of ESG risks that are associated with the transactions and the counterparties. It involves an expert analysis of these risk profiles and generally consists of an advisory opinion issued by Risk Management that includes an assessment of the main critical issues identified, the related mitigating factors and the class of risk attributed to the transaction; in the presence of risk classes that are not consistent with the Bank's risk appetite, specific escalation mechanisms are activated. Through this process, the risks associated with the environmental impacts of the sector and the operations of the counterparty are assessed (for example polluting emissions and the consequences on biodiversity), together with the adoption by the counterparty of any containment and mitigation measures to improve business sustainability; with particular regard to climate change risk (transition risk), the degree of exposure is assessed, examining the counterparty's commitment to adopt transition plans aimed at reducing GHG emissions and to set, within a defined time-frame, carbon neutrality objectives, to increase the use and/or production of energy from renewable sources and, for the sectors subject to target setting, an assessment of consistency with the commitments taken by Intesa Sanpaolo is provided.