UCG Unicredit Spa

By Maitane Sardon

UniCredit SpA (UCG.MI) said Tuesday that it has committed to fully exit thermal coal mining projects by 2023, as it works toward aligning its activities with the Paris Agreement on climate change.

Outlining a new set of sustainability goals, the Milan-based bank said it will stop financing new projects in thermal coal mining and coal power generation and impose strict commitments for coal-reliant customers seeking financing.

The bank also said it is introducing a new oil-and-gas policy that covers the Arctic area and unconventional oil and gas, which consists of resources which cannot be explored, developed and produced by conventional processes. UniCredit will prohibit the financing of new projects in Arctic oil and offshore Arctic gas as well as in shale oil-and-gas and related fracking, tar sands oil and deep sea mining. It will only finance clients if their share of revenues from these activities is less than 25%.

As part of its aim to be more environmentally responsible, UniCredit said it will increase its energy efficiency-related loans to customers and its exposure to the renewable energy sector by 25% to more than 9 billion euros ($9.91 billion) in loans by 2023.

The company aims to reduce its greenhouse gas emissions by 80% by 2030 and said it is introducing a new set of targets to reduce its direct environmental impact. By 2023, UniCredit aims to only use electricity from renewable energy sources in its buildings in Italy, Germany and Austria.

Other projects outlined by the bank include working with associations to launch a diversity and inclusion initiative for the European banking sector.

Write to Maitane Sardon at maitane.sardon@wsj.com

(END) Dow Jones Newswires

November 26, 2019 11:21 ET (16:21 GMT)

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