Letter to the stakeholders
Once again, in 2023 the Cassa Centrale Group saw a tangible development in the principles of mutual credit cooperation. The ambition to be a Group that cares about its Customers, the Communities where it operates, its People, and the environment that surrounds it continues to be driving force behind our daily actions; we are constantly inspired by the values of ethics, social and environmental responsibility, and attention to the development and support of our Communities.
Chairman
Chief Executive Officer
Summary data
The results achieved in 2023 confirm that the path towards sustainable growth we have undertaken is more pertinent than ever and well-equipped to address future challenges.
Principles and Values
The values of Cooperative Credit are the foundation of our daily work, reflected in our constant engagement with the local community and committed efforts to build a sustainable development model.
Our business model's pillars
Value creation
Since our beginnings, we have been committed to creating sustainable economic value over time for the communities we represent and all stakeholders.
Our impact
Our choice to reside within the communities we serve reflects our commitment to proximity and genuine relationships, as well as our dedication to generating positive impacts on people, communities, and the environment.
The sustainability strategy
We have established our strategic priorities in sustainability through ongoing dialogue with all stakeholders. The identification and prioritization of material topics have considered the impacts we can have on the external environment and how these, in turn, influence our business.
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Letter to the stakeholders
Once again, in 2023 the Cassa Centrale Group saw a tangible development in the principles of mutual credit cooperation.
The ambition to be a Group that cares about its Customers, the Communities where it operates, its People, and the environment that surrounds it continues to be the driving force behind our daily actions; we are constantly inspired by the values of ethics, social and environmental responsibility, and attention to the development and support of our Communities.
This Statement bears witness to this journey.
When defining our sustainability strategy, we opted to develop an approach that aligns with our nature as a Cooperative Banking Group and with the Sustainable Development Goals established by the United Nations 2030 Agenda. Our formal adoption of the UN Global Compact in 2023 represents yet another commitment to progress in this direction.
In the face of excellent financial results and increased industrial capacity, our presence in the territory has only grown larger: unlike the banking industry (which has almost halved the number of branches since 2008), the number of branches of the Group’s Banks has remained substantially constant. The choice to inhabit the territories corresponds to a desire for proximity and genuine relationships, a distinctive trait that we seek to maintain: in 307 of the 1,069 1 municipalities where we operate, we are the only banking presence. 293 branches are located in municipalities with less than 3 thousand inhabitants.
On the social side, regional grants awarded by the Affiliated Banks in 2023 grew yet again in number and value, with over 21 thousand separate grants awarded for a total value of EUR 42.5 million. These grants funded a series of highly effective projects in terms of the direct impact achieved as well as for the positive personal relationships they generated, especially in small communities.
In the 2019-2023 five-year period, i.e. since its establishment, the Group has supported more than 94 thousand sponsorships and charities totalling EUR 156 million.
Last year was particularly important for the fundraising promoted by the Cassa Centrale Group to aid the populations and companies badly affected by flooding in Emilia-Romagna: the solidarity initiative, thanks to contributions from all Affiliated Banks, the companies Allitude, Assicura Agenzia and Broker, Claris Leasing and Rent, NEAM and Prestipay, the cooperative Members and the customers of the Group, made it possible to achieve a considerable result of over EUR 1.4 million, allocated to support tangible initiatives that promoted recovery in the territories affected and assisted people and micro-enterprises in their recovery after the emergency phase.
Considering the actual needs of the Communities involved, a structured plan of specific interventions has been defined and will be implemented through Caritas Italiana and the Affiliated Banks established in the affected areas. These will continue to be a point of reference for households and businesses by truly working together with institutions and third sector bodies that combat difficult situations.
Our pathway towards sustainable growth also continues with regard to our focus on the more than 12 thousand People who work at the Group every day, a number that has grown for the fifth consecutive year.
In 2023, the number of training hours taken up by our People exceeded 700 thousand, up 15% and with more than 58 average hours per capita (+12%).
The motivation and energy of every single one of our employees are fundamental assets for the Group and represent the true key to our success.
With reference to Governance, the process of reinforcing and consolidating the various actions already characterising the Group continued.
In addition to the growing attention to ESG issues that we are also seeing from our customers, there has been a strong regulatory push at European level that has led to an even more significant commitment on the part of the Group in integrating climate and environmental ESG risk issues into the way it does banking, communicates its results, and works to ensure compliance with the many evolving regulations in these areas. Indeed, the banking sector is an enabler of the green transition, which is also highly requested and promoted through the commitments made by national legislators, standard setters and industry associations.
The Group ensures the centrality of climate and environmental risks by integrating them in a structured manner within the Group’s broader risk management framework, through a progressive process of self-assessment and alignment with Supervisory Expectations.
During 2023, the Board of Directors of Cassa Centrale Banca gave full recognition to ESG profiles by including specific ESG-related strategic guidelines in the 2023-2026 three-year Strategic Plan.
Consistently, an update of the Sustainability Plan was approved in November 2023, which, compared to the previous one, is characterised by:
- the identification of the following ESG Areas: Environment, Communities & Shareholders, ESG Governance, People and Customers;
- the definition of the Strategic Objectives into 20 Projects divided into each ESG Area;
- the identification of 40 positioning targets to monitor the achievement of the specific objectives; optimising or reformulating previously identified projects and actions.
First and foremost, the Group intends to do its part with regard to energy consumption, continuing to favour the purchase of electricity from renewable sources, which in 2023 exceeded 96% of the total purchased. while our reduction in direct and indirect CO2 emissions has again been equally significant in 2023.
Among the concrete objectives for the benefit of the environment and sustainability, which concern members and customers, is the desire to offer credit solutions to assist businesses – especially micro and small enterprises that operate in traditional sectors and form the Group’s economic fabric of reference - in the ecological and digital transition required to remain competitive on the market.
In the provision of mortgage loans to households we encourage the transition to more sustainable homes that are equipped to deal with climate change and we feel a strong responsibility in guiding savers towards investments in projects and companies with a sustainable business model.
In order to respond to Customers’ growing awareness around sustainability, our Product Companies are strongly committed to expanding their ESG offering.
Total volumes invested in the Ethical funds of the NEF range of the asset management company NEAM came close to EUR 2.1 billion (out of a total of EUR 6.9 billion) and this component is even larger if it is considered that a good deal of the management strategies applied to other segments of the NEF investment fund integrate selection processes with ESG criteria. And this is despite the financial markets in 2023: due to rising yields on Italian government bonds, we rewarded assets under administration at the expense of assets under management.
Throughout 2023, the process of implementing sustainable finance strategies on three other segments of the range (NEF Euro Bond, NEF Euro Short Term Bond and NEF Euro Corporate) began, which is expected to be completed during the first part of 2024, expanding NEF’s Ethical offering. All of our Asset Management lines were also classified as “light green”.
Claris Leasing has updated its catalogue by introducing the financing of photovoltaic plants to upgrade buildings in need of energy efficiency improvements.
Prestipay, a consumer credit company, has included the Prestipay Green product in its catalogue. The product is structured into two categories: Prestipay Green House and Prestipay Green Mobility.
Over the course of 2024, many challenges still await us, first and foremost that of complying with the provisions introduced by the Corporate Sustainability Reporting Directive (CSRD) and the related European Sustainability Reporting Standards (ESRS); we will continue to work to meet the expectations of the regulator, the expectations of our Customers and our People, without forgetting our distinctive values, our history, our roots, and the principles of mutuality and sustainability further strengthened by the generative boost imposed by ESG regulation.
Aware of the many advances made since the Group was formed and conscious of our responsibility, we wish to continue our virtuous path towards sustainable growth, now more than ever strong in the conviction that Cooperative Credit, sustainable by its very nature, can effectively meet the challenges of the future, as proven by the information presented in this Statement.
1 Data as at 31.12.2023.
| The Chairman Giorgio Fracalossi |
Chief Executive Officer Sandro Bolognesi |
Summary Data
The Group
People
Cooperative Members and Customers
Community
Environment
Values
The Cassa Centrale Group bases its actions on the values of Cooperative Credit and operates in compliance with the Principles and Rules of Conduct set out in the “Charter of Values of Cooperative Credit” and the “Founding Principles and Objectives of the Group”, as set out in Article 4 of the Cohesion Contract.
The Group’s Code of Ethics, aimed at inspiring the conduct of the recipients, recalls these cooperative values and also specifies that the Cassa Centrale Group must align its conduct with the values of professionalism, substantial and formal respect for the law, transparency, loyalty, fairness, integrity, equity and professional ethics.
Mission
Art. 2 ARTICLES OF ASSOCIATION OF THE AFFILIATED BANKS
“The purpose of the Company is to provide support to cooperative PARTNERS and members of the local COMMUNITIES in banking transactions and services, pursuing the improvement of their moral, cultural and financial conditions and promoting the development of cooperation and education in savings and pension planning, as well as social cohesion and responsible, sustainable growth in the local areas in which it operates.”
Art. 4.2 ARTICLES OF ASSOCIATION OF CASSA CENTRALE BANCA
“In exercising its activity, the Company is inspired by the cooperative principles of mutuality without purposes of private speculation. It has the aim of favouring its Partners and those of other companies belonging to the Cooperative Banking Group, by pursuing the development of local areas, the improvement of their moral, cultural and financial conditions and promoting the development of cooperation and education in savings and pension planning as well as social cohesion and the responsible and sustainable growth of the local areas in which the Banking Group operates.”
Art. 4.3 ARTICLES OF ASSOCIATION OF CASSA CENTRALE BANCA
“The Company undertakes to recognise, safeguard and enhance the linguistic and cultural peculiarities of the local areas of the Affiliated Banks and, in particular, those referring to the German, Slovenian and French communities.”
As its founding principles, the Cassa Centrale Group recognises the three values that guide and distinguish the operations of the Cooperative Credit Banks - Rural Banks - Raiffeisenkassen: cooperation, mutuality and local presence.
These principles translate as:
- the interest, on the part of Cassa Centrale Banca and its Subsidiaries, in dedicating particular attention to the Affiliated Banks, taking into account their specific characteristics, the substantial difference of which with respect to other corporate forms lies in the per capita vote (the principle of “one person, one vote”), with a view to benefits and not dividends and the allocation of at least 70% of the profits to indivisible reserves, which translate into solidarity, participation and associationism initiatives;
- the orientation towards sustainability, given that Cassa Centrale and the Subsidiaries support the Affiliated Banks that pursue a logic of mutual benefit, largely in favour of their own Partners, and not the maximisation of dividends and return on capital (non-profit);
- the constant commitment to the optimisation of processes, to guarantee characteristics of efficiency and competitiveness in the services provided to the Affiliated Banks, other Customer Banks and end customers.
For the above reasons, Cassa Centrale Banca, along with the Subsidiaries, is committed to ensuring the soundness and efficiency of the Affiliated Banks, controlling and addressing their risks, guaranteeing them a competitive offering of products and services, supporting the real participation of each through the promotion of high quality relationships, and thus fostering the growth of the Territories, while creating trust in Communities.
Business Model
Independence and Honesty
The Cassa Centrale Group guarantees active participation of the Participant Banks in defining strategies and objectives, as well as a high degree of operating independence, modelled with respect to the individual entities based on their level of risk.
Growth and Innovation
The Cassa Centrale Group promotes the enhancement of investments in innovation and technology, expansion of the awareness of Customers and optimisation of the efficiency of information processes.
Efficiency and Agility
Balanced governance is a founding element of the Group’s business. Alongside this, Cassa Centrale Banca and the Subsidiaries make tools available to the Affiliated Banks for continuous digitalisation of products and processes, as well as the creation of partnerships to enhance centres of excellence and local best practices.
Capital Strength
The Cassa Centrale Group has a high level of capital strength, based on extensive available intercompany assets and sets the objective of maintaining a CET1 ratio that is among the best in the national banking system.
Relationship with the Community
The strong relations with local Communities, and likewise the investments to improve the economic, social and cultural context are the tools used by the Cassa Centrale Group to meet the needs of Partners and Customers.
ECONOMIC VALUE GENERATED AND DISTRIBUTED
The Cassa Centrale Group generated economic value of EUR 2.95 billion. The economic value distributed was EUR 1.92 billion (65.2% of the economic value generated). Of the total economic value generated by the Group, 34.8% was assigned to the People who worked there, 16.5% was distributed to suppliers, 13.4% to the State, Authorities and Institutions, and 0.5% to Cooperative Members/Shareholders and third parties. Of the economic value generated 34.8% was retained, thereby offering financial strength to create sustainable value in the medium-long term.
Economic value generated
| (in millions of EUR) | 2023 | 2022 | 2021 |
|---|---|---|---|
| 10. INTEREST INCOME AND SIMILAR REVENUES | 3,287 | 2,157 | 1,534 |
| 20. INTEREST EXPENSES AND SIMILAR CHARGES | ‑891 | ‑ 312 | ‑ 149 |
| 40. FEES AND COMMISSIONS INCOME | 933 | 871 | 818 |
| 50. FEES AND COMMISSIONS EXPENSES | ‑138 | ‑ 116 | ‑ 101 |
| 70. DIVIDEND AND SIMILAR INCOME | 4 | 4 | 3 |
| 80. NET RESULT FROM TRADING | 6 | 9 | 10 |
| 90. NET PROFIT (LOSS) FROM HEDGE ACCOUNTING | ‑ | 1 | 1 |
| 100. PROFIT (LOSS) FROM DISPOSAL/REPURCHASE OF: | ‑374 | ‑ 63 | 202 |
| a) Financial assets measured at amortised cost | ‑254 | ‑ 1 | 162 |
| b) Financial assets designated at fair value through other comprehensive income | ‑120 | ‑ 62 | 40 |
| c) Financial liabilities | ‑ | ‑ | ‑ |
| 110. NET RESULT OF OTHER FINANCIAL ASSETS AND LIABILITIES MEASURED AT FAIR VALUE THROUGH PROFIT OR LOSS (IFRS 7 PAR. 20 LETTER A) I)) | 7 | ‑ 36 | 17 |
| 130. NET VALUE ADJUSTMENTS/WRITE‑BACKS DUE TO CREDIT RISK RELATIVE TO: | ‑80 | ‑ 272 | ‑ 525 |
| a) Financial assets measured at amortised cost | ‑ 79 | ‑ 270 | ‑ 525 |
| b) Financial assets designated at fair value through other comprehensive income | ‑ 1 | ‑ 2 | ‑ |
| 140. Profit/loss from contractual changes without derecognitions | ‑ 1 | ‑ 1 | ‑ 1 |
| 230. OTHER OPERATING EXPENSES/INCOME | 195 | 199 | 226 |
| 250. (partial) PROFITS (LOSSES) ON EQUITY INVESTMENTS (% profit/loss) | ‑ | ‑ | ‑ |
| 280. PROFIT (LOSS) FROM DISPOSAL OF INVESTMENTS | 2 | ‑ 1 | ‑ |
| A) TOTAL ECONOMIC VALUE GENERATED | 2,950 | 2,440 | 2,035 |
Economic value distributed
| (in millions of EUR) | 2023 | 2022 | 2021 |
|---|---|---|---|
| 190. b) (partial) Other administrative expenses (net of indirect taxes, donations and expenses relating to resolution funds and deposit guarantee) | 486 | 446 | 391 |
| ECONOMIC VALUE DISTRIBUTED TO SUPPLIERS | 486 | 446 | 391 |
| 190.a) Staff expenses | 1,028 | 945 | 901 |
| ECONOMIC VALUE DISTRIBUTED TO EMPLOYEES | 1,028 | 945 | 901 |
| 40. PROFIT (LOSS) FOR THE YEAR OF MINORITY INTERESTS | ‑ | 2 | ‑2 |
| Refunds to the cooperative members of the Group's BCCs | 6 | 3 | ‑ |
| Dividends to the cooperative members of the Group's BCCs | 8 | 5 | 6 |
| Dividends to partners/shareholders (non‑Group) of the Group’s joint stock companies | 2 | 3 | 23 |
| ECONOMIC VALUE DISTRIBUTED TO PARTNERS/SHAREHOLDERS and THIRD PARTIES | 16 | 13 | 27 |
| 190. b) (partial) Other administrative expenses: indirect taxes | 157 | 148 | 150 |
| 190. b) (partial) Other administrative expenses: expense relating to resolution funds and deposit guarantee | 74 | 73 | 54 |
| 300. (partial) Income taxes for the year (current taxes) | 63 | 13 | ‑ 21 |
| ECONOMIC VALUE DISTRIBUTED TO THE STATE, AUTHORITIES AND INSTITUTIONS | 294 | 234 | 183 |
| 190. b) (partial) Other administrative expenses: donations | 17 | 15 | 11 |
| 350. (partial) PROFIT (LOSS) PERTAINING TO THE PARENT COMPANY ‑ Portion allocated to the charity provision and to mutual funds (3%) | 84 | 53 | 33 |
| ECONOMIC VALUE DISTRIBUTED TO THE COMMUNITY | 101 | 68 | 44 |
| B) TOTAL ECONOMIC VALUE DISTRIBUTED | 1,925 | 1,706 | 1,546 |
Economic value retained
| (in millions of EUR) | 2023 | 2022 | 2021 |
|---|---|---|---|
| 200. NET ALLOCATIONS TO PROVISIONS FOR RISKS AND CHARGES | 13 | 12 | 34 |
| 210. NET VALUE ADJUSTMENTS/WRITE‑BACKS TO TANGIBLE ASSETS | 113 | 112 | 104 |
| 220. NET VALUE ADJUSTMENTS/WRITE‑BACKS TO INTANGIBLE ASSETS | 30 | 21 | 17 |
| 250. (partial) PROFITS (LOSSES) ON EQUITY INVESTMENTS (for the portion of the valuation component: “write‑downs/revaluations”, “value adjustments for impairment/write‑ backs”, “other expenses/income”) | 5 | 11 | 5 |
| 260. Net result of fair value measurement of tangible and intangible assets | ‑ | ‑ | 1 |
| 270. Value adjustments to goodwill | ‑ | 1 | ‑ |
| 300. (partial) Income taxes for the year (deferred tax assets and liabilities) | 93 | 81 | 57 |
| Result allocated to reserves and undistributed profits | 771 | 496 | 271 |
| C) TOTAL ECONOMIC VALUE RETAINED BY THE BUSINESS SYSTEM | 1,025 | 734 | 489 |
Distribution of economic value generated
In 2023, purchase order transactions were made with 17,800 suppliers (60% of active Suppliers listed in the Supplier Register). Of these:
- 9,909 suppliers (56%) received orders below the threshold of EUR 3,000 in the fiscal year at Group level (so-called Occasional Suppliers);
- 7,014 suppliers (39%) received orders of more than EUR 3,000 and less than EUR 250,000 in the fiscal year at Group level, with a single order of less than EUR 50,000 (so-called Ordinary Suppliers);
- 938 suppliers (5%) received total orders exceeding EUR 250,000 in the fiscal year at Group level or for a single order exceeding EUR 50,000, or provided services that were outsourced (so-called Strategic Suppliers).
OUR IMPACT
The Enhancement of Resources
We know how to give importance and value to every element that becomes part of us.
People
SDG
Material topics
Cooperative Members and Customers
SDG
Material topics
Environment
SDG
Material topics
Community
SDG
Material topics
STAKEHOLDER ENGAGEMENT AND THE SUSTAINABILITY STRATEGY
Listening to stakeholders is crucial to developing the Group's sustainability strategy and to launching concrete initiatives that enable the Cassa Centrale Group to strengthen its relationship of mutual exchange and trust.
The Cassa Centrale Group pays particular attention to the quality of relations with internal and external stakeholders, understanding their different points of view, their expectations and their needs and the related adaptation of its service model. The Group has therefore adopted a proactive approach to the many stakeholders with which it interacts through different channels and tools, as illustrated in the following table.
Stakeholders
Stakeholder engagement and
materiality analysis
Through the stakeholder engagement process, the Cassa Centrale Group aims to exchange information, listen to and learn from Stakeholders so as to have ever
increasing awareness and build a relationship of trust with respect to topics of shared interest.
During 2023, the Group involved a number of stakeholders in the process of updating the Materiality Analysis, through web-based questionnaires, administered
alongside a methodological note, with the aim of supporting stakeholders in their assessments
Nearly 6,000 questionnaires were received (2,189 from Employees, 1,966 from Cooperative Members of the BCCs, 1,659 from BCC Customers, 79 from the ESG and NFS Representatives, 34 from other non-customers, 26 from the Third Sector/Entities/Institutions, 9 from the ESG Steering Committee of the Parent Company and 7 COP 28), testifying to an extremely significant turnout in the time window in which these evaluations were requested. The comments provided in support of the evaluations enabled the Parent Company to understand how stakeholders participate with great enthusiasm in determining material topics – among other guidelines, the design of the sustainability strategy is based on their definition.
In the second half of 2023, the Group began the process to update its Materiality Analysis, which led to the definition of the material topics included in this chapter.
The analysis was coordinated by the External Relations and Sustainability Service with support from an external specialist company, through a structured assessment process.
The Phases of Materiality Analysis
Reconciliation Table between the Material Topics of the Cassa Centrale Group, the Areas of Italian Legislative Decree 254/2016, and the GRI Standards.
| Material Topics identified by the Cassa Centrale Group | Areas of Italian Legislative Decree 254/2016 | GRI Standards of reference | Impact perimeter | |
|---|---|---|---|---|
| Internal | External | |||
| Support for the communities and the Third Sector | Company | Indirect economic impacts (GRI 203), Local communities (GRI 413) | Entire Group | Third Sector, Authorities and Institutions |
| Operations rooted in the regional area | Company | Local communities (G4-FS13) | Entire Group | End customers/Bank Users, Partners and shareholders of the Parent Company, Cooperative partners of the individual Affiliated Banks, Employees, Third Sector, Authorities and Institutions, Suppliers of goods and services |
| Support for the business system and households | Company | Economic performance (GRI 201) | Entire Group | End customers/Bank Users, Third Sector, Authorities and Institutions |
| Value creation and business sustainability | Company, Personnel, Environment, Human Rights, Anti-corruption | Economic performance (GRI 201), Tax (GRI 207) | Entire Group | End customers/Bank Users, Group Banks, Partners and shareholders of the Parent Company, Cooperative partners of the individual Affiliated Banks, Employees, Trade unions, Third Sector, Authorities and Institutions, Suppliers of goods and services |
| Training and skills development | Personnel | Training and education (GRI 404) | Entire Group | End customers/Bank Users, Group Banks, Partners and shareholders of the Parent Company, Cooperative partners of the individual Affiliated Banks |
| External relations and management of relations with partners | Company | Material Topic not directly attributable to a specific GRI Standard and therefore the report illustrates the management approach adopted and the related indicators | Entire Group | Partners and shareholders of the Parent Company, Cooperative partners of the individual Affiliated Banks, Third Sector, Authorities and Institutions, Means of communication |
| Well-being, work-life balance and corporate welfare | Personnel | Employment (GRI 401) | Entire Group | Employees, Trade Unions |
| Corporate governance and decision making | Company | Governance (GRI 2), Diversity and equal opportunities (GRI 405) | Entire Group | Partners and shareholders of the Parent Company, Cooperative partners of the individual Affiliated Banks |
| Talent attraction, development and retention | Personnel | Employment (GRI 401), Training and education (GRI 404) | Entire Group | Employees |
| Financial education and inclusion initiatives | Company | Material Topic not directly attributable to a specific GRI Standard and therefore the report illustrates the management approach adopted | Entire Group | End customers/Bank Users, Cooperative partners of the individual Affiliated Banks, Third Sector, Authorities and Institutions |
| Responsible credit policy and offer of products/services for social and environmental purposes | Company, Environment | Product portfolio (G4-FS1, G4-FS7, G4-FS8) | Entire Group | End customers/Bank Users, Group Banks, Partners and shareholders of the Parent Company, Cooperative partners of the individual Affiliated Banks |
| Quality of service, listening and customer satisfaction | Company | Processes to remediate negative impacts (GRI 2-25) | Entire Group | End customers/Bank Users, Group Banks, Partners and shareholders of the Parent Company, Cooperative partners of the individual Affiliated Banks |
| Management and reduction of environmental impact | Environment | Materials (GRI 301), Energy (GRI 302), Water and Effluents (GRI 303), Emissions (GRI 305) | Entire Group | All stakeholders |
| Privacy & data protection | Company | Customer Privacy (GRI 418) | Entire Group | End customers/Bank Users |
| Transparency in communications to Customers | Company | Marketing and Labeling (GRI 417) | Entire Group | End customers/Bank Users |
| Ethics and integrity in business management | Company, Personnel, Environment, Human Rights, Anti-corruption | Compliance with Laws and Regulations (GRI 2-27), Anti-corruption (GRI 205), Anti-competitive Behavior (GRI 206) | Entire Group | All stakeholders |
| Diversity, equal opportunities and inclusion | Personnel, Human Rights | Diversity and Equal Opportunities (GRI 405), Non-discrimination (GRI 406) | Entire Group | Employees |
The evolution of the materiality analysis - first approach to dual materiality
In light of the changes to the external regulatory environment, in 2022 the Cassa Centrale Group launched a process aimed at the progressive alignment with the framework defined for non-financial reporting at European Level by the Corporate Sustainability Reporting Direction (CSRD 14) and the relative reporting standards produced by the European Financial Reporting Advisory Group (EFRAG).
The most significant changes introduced by the European Sustainability Reporting Standards (ESRS - known as the “EFRAG Standard”), include the concept of Dual materiality, according to which the materiality analysis must be performed by including the Impact Materiality (or inside out) perspective, which provides information about the impact of an organisation's activity on sustainable development, and the Financial Materiality (or outside in) perspective, which represents how environmental, social and governance issues influence an organisation's development, performance, future cash flows and positioning.
In this context, the Group decided to continue on the path of progressive approximation to the CSRD and related Standards developed by EFRAG, carrying out a second “Double Materiality” exercise based on the publications of the main international standard setters, available at the time the analysis was conducted but not yet in force 15. This exercise enabled the Cassa Centrale Group to understand which of the most significant impacts could lead to risks and opportunities that could contribute positively or negatively to the creation and/or preservation of corporate value in the short, medium or long term.
The positive and negative impacts mentioned above were integrated by specific financial risks and opportunities for each topic assessed as potentially material.
The risks and opportunities were identified, as for the impacts, considering what was formalised in documents that are part of the Group’s document framework and publicly available reports, as well as other guidelines/methodological documents in the ESG sphere promoted and published by recognised international bodies.
The stakeholders involved in each of the identified impacts also provided an assessment of the financial significance and the probability of occurrence, based on a qualitative assessment on a scale of one to four.
The evolution of the traditional matrix could lead to the following representation, according to the two lines of materiality analysis.
According to the Double Materiality approach, a topic is considered material if it is significant in one or both perspectives; therefore, all topics assessed as material in the materiality analysis conducted according to GRI Reporting Standard 3 “Material Topics” (Impact Materiality) were also identified as material in the double materiality exercise.
As can be seen from the matrix, the financial materiality highlights some issues as crucial, which from an impact point of view were still relevant but to a lesser extent. These include “Talent attraction, development and retention”, “Corporate governance and decision making”, “Operations rooted in the regional area” and “Financial education initiatives”.
14 Directive (EU) 2022/2464. The provisions of this Directive apply, for the Cassa Centrale Group, as of 1 January 2024, as opposed to the Integrated Report which will be published during 2025.
15 The current regulatory context is represented by the ESRS standards (European Sustainability Reporting Standards – limited only to the “cross-cutting standards” and “topical standards”), definitively approved by the European Commission and published in the Official Journal of the European Union on 22/12/2023 (see Commission Delegated Regulation (EU) 2023/2772). At the time of writing, the final version of the “Implementation Guidance – Materiality Assessment” was not yet available, which will be a relevant methodological reference for conducting the next Double Materiality Analysis.
The evolution of the Sustainability Plan
By defining tangible and measurable goals, the Group aims to contribute to the transition towards a more sustainable, social and environmental economy in all of the Communities and Regions in which it operates.
By reconciling the Sustainability objectives with the material topics and contributing to the integration of the SDGs in the Group’s operations and strategy, the Plan also makes it possible to lay the bases for a further improvement in non-financial reporting.
During 2023, the Sustainability Plan was updated with the aim of:
- establishing the Group’s ESG ambitions, consistent with the Mission, Strategic Plan 23-26 and best practices;
- integrating the initiatives defined in response to the European Central Bank’s (ECB) Supervisory Expectations on Climate and Environmental Risks;
- strengthening the strategic/communicative nature of the Sustainability Plan (both internally and externally) and making the monitoring of operational activities more efficient;
- identifying robust and strategic indicators and targets.
The 2023–2026 Sustainability Plan is characterised by:
- the classification of 20 projects into 5 areas: Environment, Communities & Shareholders, ESG Governance, People, and Customers;
- the integration of content on the basis of the main regulatory and strategic drivers and on the basis of new market trends;
- the link between the individual initiatives of the Plan with the Sustainable Development Goals (SDGs) of reference and with ESG aspects (Environmental, Social, Governance). In particular, the topics covered by the Sustainability Plan align with SDGs 1, 2, 3, 4, 5, 8, 9, 10, 11, 12, 13, 15, 16 and 17.
The Sustainability Plan 2023-2026, in addition to being structured in the 5 areas mentioned above, provides for specific Actions to which specific Targets are associated (on an annual basis and for the three-year period of reference), the monitoring of which is an aspect of particular attention for all parties that make up the Group’s ESG organisational framework. The distinction into Actions and Targets is also a relevant aspect in relation to the future, and upcoming, evolution of the Sustainability Plan in order to comply with the Corporate Sustainability Reporting Directive (CSRD).
Inherent in our business, financial capital characterises the operations of each bank.
The financial capital we generate through our activities is used to guarantee our customers’ investments and support their businesses. What’s more, we reinvest the financial capital generated in the local areas and communities we operate in, sustaining a virtuous circle for growth and progress.
Innovation and knowledge of new trends and technologies guarantee products and services in line with what the market has to offer and meet needs that are changing over time.
We use clear, direct and effective communication, since we consider transparency the cornerstone of any ethical bank. We invest in our name and our brand, so they can be recognised and create value for the entire Group and all of our members. We want to remain a bank to be proud of.
We have offices and branches located across Italy. Widespread and far-reaching, our banks represent the Group and our closeness to each member and customer.
We are committed to making every branch a pleasant, refined and harmonious place, where aesthetics meet ethics, contributing to the development of towns and the architectural and cultural heritage characteristic of Italy.
The heart of our model and most distinctive feature. We work alongside local communities, accompanying and investing in the same because we consider their cohesive and harmonious growth a source of progress.
All of our relationships are based on mutual trust, inclusion and sharing. We appreciate long-term relationships that span multiple generations, remaining true to our commitments. We are cooperative by nature.
We are aware that our business has an impact on the natural environment we live in. This is why we aim to give back to our surroundings, through our initiatives that protect and safeguard environmental resources.
We promote a sustainable, responsible and respectful economy, which focuses today on the management of the earth’s ecosystem in the medium and long term.
We would not exist without our people. Far from being a slogan, this fact is a reality: our Group relies on its people, who bring to the system the skills, motivation, passion and attention that distinguish our every relationship.
We strongly believe in the importance of both professional and personal growth, as individuals and member of the community, and we contribute to the economic, moral and social development of all employees.