BUSINESS & HUMAN RIGHTS

UniCredit on its sustainability path: understanding and managing the financial sector’s responsibilities in terms of human rights”

Bucharest, May, 15th 2012Bucharest, May, 15th 2012

Sebastian Marcusanu – UniCredit Group Corporate SustainabilitySebastian Marcusanu – UniCredit Group Corporate Sustainability

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UNICREDIT, SUSTAINABILITY AND HUMAN RIGHTS

UNICREDIT APPROACH TO HUMAN RIGHTS

CONCLUSIONS

AGENDA

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Employees: over 160,0001

Branches: nearly 9,5002

Banking operations in 22 countries

International network spanning : ~ 50 countries

Market leader in Central and Eastern Europe leveraging on the region’s structural strengths

UNICREDIT AT A GLANCE

1 Data as at December 31, 2011. FTE “Full Time Equivalent”= number of employees counted for the rate of presence. Figures include all employees of subsidiaries consolidatedproportionately, such as Koç Financial Service Group employees.2 Data as at December 31, 2011. These figures include all branches of subsidiaries consolidated proportionately, such as Koç Financial Services Group branches.

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The capability to find valuable ways to do with our customers, selecting investments

that create value on an (both in the short term and long term)

and contribute to sustainable development in a manner that meets the

of

UNICREDIT HAS DEFINED A CLEAR SUSTAINABILITY PATH TO TRANSLATE ITS MISSION INTO PRACTICAL BEHAVIORS AND ACTIONS

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ENSURING BUSINESS RESPECT FOR HUMAN RIGHTS MUST BE ADDRESSED WHILE MEETING DIFFERENT STAKEHOLDER EXPECTATIONS…

Column Head: 14-pt. Bold

Corporate Sustainability,

as expression of companies’ responsibilities not only from a purely economic perspective but also for

consequences of their actions in terms of social/environmental impact,

requires to address human rights

Corporate Sustainability,

as expression of companies’ responsibilities not only from a purely economic perspective but also for

consequences of their actions in terms of social/environmental impact,

requires to address human rights

WHY HUMAN RIGHTS FOR FINANCIAL SECTOR ARE BECOMING RELEVANT

ENLARGMENT AND DIVERSIFICATION OF THE TYPE OF BANK OPERATIONS

INCREASING NUMBER OF PERCEIVED HUMAN RIGHTS’ ABUSES INVOLVING BANKS

INCREASING SCRUTINY OF WATCHDOGS AFFECTING PUBLIC OPINION

FOCUS OF SUSTAINABILITY RATING AGENCIES AS EXPRESSION OF INVESTORS

PERFORMANCE OF STAFF AND MANAGEMENT

THE REGULATORS’ AND INTERNATIONAL INSTITUTIONS’ RECENT EVOLUTIONS

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… SUCH AS THE MAIN RECENT EVOLUTIONS OF REGULATORS AND OTHER INTERNATIONAL RECOGNIZED ORGANIZATIONS, REQUIRING MORE BUSINESS RESPONSABILITY FOR RESPECTING HUMAN RIGHTS

Dec 2010

March 2011

International Finance Corporation (IFC) a member of the World Bank Group approved an update of the IFC’s Sustainability Framework; for the first time, IFC specifically references the business responsibility to respect Human Rights

Ministers from 42 countries that adhere to the OECD Guidelines for Multinational Enterprises adopted an update that for the first time includes a Human Rights chapter

May 2011

June 2011

The Global Reporting Initiative (GRI) launched the latest version of the Guidelines for the Sustainability Reporting (G3.1) focusing on Human Rights, Local Community, and Gender

The International Organization for Standardization (ISO) adopted a new social responsibility standard (ISO 26000) which includes a Human Rights chapter

UN Human Rights Council approved the Guiding Principles for Business and Human Rights: implementing the United Nations “Protect, Respect and Remedy” Framework developed by Professor John Ruggie (UN Secretary-General’s Special Representative for Business and Human Rights).

EU Commission renewed the EU strategy (2011-2014) for Corporate Responsibility by emphasizing the coherence of EU policies relevant to business and human rights

Oct 2011

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WITH OUR INTEGRITY CHARTER WE AIM AT CREATING A CORPORATE CULTURE BASED ON A STRONG AND SHARED SET OF VALUES

Stakeholders

UNICREDIT APPROACH TO HUMAN RIGHTS STARTED WITH THE ADOPTION OF ITS INTEGRITY CHARTER

UniCredit Integrity Charter defines the values that should lead behavior of the UniCredit group's employees with respect to each of our stakeholders

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IN ADDITION SEVERAL SPECIAL INTERNAL RULES* HAVE BEEN DEVELOPED THAT ADDRESS ALSO ASPECTS OF HUMAN RIGHTS…

SUCH POLICIES AND GUIDELINES AIM TO AVOID ALSO POTENTIAL VIOLATIONS OF HUMAN RIGHTS ACROSS GROUP ACTIVITIES

*List not exhaustive*List not exhaustive

2007 2012

Defence/Weapons PolicyDefence/Weapons Policy

Nuclear EnergyPolicyNuclear EnergyPolicy

Green & socialProcurement PolicyGreen & socialProcurement Policy Code of ConductCode of Conduct

Privacy Global Compliance GuidelinesPrivacy Global Compliance Guidelines

Mining PolicyMining Policy

Water InfrastructurePolicyWater InfrastructurePolicy

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… WHILE ADHERING TO SOME OF THE MAIN INTERNATIONAL GUIDELINES AND STANDARDS IN THE FIELD

UniCredit was pioneer in adhering to several international standards and guidelines that have been developed in the last years

THE GUIDELINES AND STANDARDS WE ARE ADHERING TO, ARE VOLUNTARY BASIS INITIATIVES THAT DO NOT ALWAYS INCLUDE REGULATORY INSTRUMENTS NOR

ENFORCEMENT PROVISIONS

UNICREDIT KEY INTERNATIONAL STANDARD MEMBERSHIPS

2003 2004 2009

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Identify or anticipate human rights “rules” relevant for business and banks, thus ensuring compliance

Improve the reputation risks management by integrating Human Rights risks and reduce potential violations

A SPECIFIC PROJECT WAS LAUNCHED IN 2011 TO BETTER UNDERSTAND THE ISSUE AND IMPROVE UNICREDIT CAPABILITY TO ADDRESS HUMAN RIGHTS WITHIN OUR SPHERE OF INFLUENCE

“As is” analysis“As is”

analysis Human Rights

approach development

Human Rights approach

development

Human Rights approach

implementation

Human Rights approach

implementation

Benchmark & gap analysis

Benchmark & gap analysis

4 STEPS PROJECT TO ADDRESS HUMAN RIGHTS

We are here

CHALLENGES AND GOALS

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UNICREDIT HUMAN RIGHTS COMMITMENT

Why the Human Rights Commitment ?

Why the Human Rights Commitment ?

What is the human rights

Commitment ?

What is the human rights

Commitment ?

The Human Rights Commitment aims to define a reliable and inclusive approach that allows UniCredit to identify and manage human rights risks and reduce potential human rights violations

The Human Rights Commitment includes the principles and systems adopted by UniCredit for its operations pertaining to human rights

How it is implemented ?How it is implemented ?

What is the scope of

application ?

What is the scope of

application ?

Employees, Customers and SuppliersWith regards to Community, UniCredit strives to provide an example

of good practice through our own business conduct

Communication and training for the employees Leveraging on the existing monitoring processes that are linked to

the systems adopted pertaining to human rights A set of KPYs included in the annual Sustainability Report (GRI

requirements)Stakeholder feedback and expectations

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CONCLUSIONS

Banks are increasingly placed at the center of a global responsibility network

Ensuring compliance to relevant human rights “rules” is key to manage our day by day business

Corporate sustainable culture increasingly counts

Banks are increasingly placed at the center of a global responsibility network

Ensuring compliance to relevant human rights “rules” is key to manage our day by day business

Corporate sustainable culture increasingly counts