Consolidated Sustainability Report 2024

Highlight

The Consolidated Sustainability Report is the document where the activities carried out by Sella Group in the field of Sustainability are reported. It is drawn up in accordance with Legislative Decree 125/2024, which transposes Directive (EU) 2022/2464/EU, as well as in compliance with the European Sustainability Reporting Standards (ESRS) defined by EFRAG (European Financial Reporting Advisory Group).
Starting from fiscal year 2017 through 2023, the Group's non-financial reporting has been drawn up in compliance with Legislative Decree 254/2016 in accordance with the Global Reporting Initiative Sustainability Reporting Standards defined by the Global Reporting Initiative (GRI).
The Consolidated Sustainability Reporting is subject to limited assurance by the company from time to time entrusted with the statutory audit.The reporting contents, which refer to fiscal year 2024 (January 1 - December 31), have been identified through a thorough dual materiality analysis aimed at identifying the most important ESG issues for our business and our stakeholders.

The Sella Group is guided by the awareness that economic results cannot be separated from the positive impact on the environment and the community. For this reason it has always paid special attention to issues related to sustainability and is committed to a path aimed at constantly improving its positive impact towards the various stakeholders. To monitor its commitment, the Group has a number of indicators, among which we highlight:

SCORE B impact Assessment
For several years now, the Group has been constantly measuring the impact of its environmental, social and governance performance through the B Impact Assessment (BIA) methodology, which analyzes 5 areas: environment, employees, customers, community and governance by assigning a final score between 0 and 200. When this result is higher than 80, one is a “regenerative” entity, that is, one that contributes positively towards the Planet. The result of this self-assessment, which the Group underwent with the support of Nativa Srl Società Benefit, a leading company in the sustainable evolution of businesses, also thanks to a series of activities included in a specific multi-year plan of interventions, has grown over time and today the Group is stably positioned above the threshold of 80, with a score at the end of 2024 of 93.73, in the range therefore of realities defined as “regenerative.” 

SUSTAINABLE INTERMEDIATE
In order to measure its path of improvement in supporting truly sustainable initiatives, projects, and realities, starting in 2021 the Group has equipped itself with an internal measure called “sustainable intermediate,” which in a single view shows the % of total loans, Client investments, and securities owned by the Group that meet ESG criteria identified on the basis of management assessments. During 2024, in view of the evolving regulatory framework, the Group decided to give itself more stringent rules about Client investments and the product pool of Client investments included in “sustainable ”* assets was updated.
Based on the new criteria, the sustainable intermediate value in 2024 was 36.6 percent, up 10.3 p.p. from the 2023 figure of 26.3 percent, recalculated to ensure comparability over time. 

ECONOMIC VALUE GENERATED
A quantitative view of what the effect generated by the Group's activities may be is the economic value generated, which provides a basic indication of wealth creation by an enterprise. Starting from this result, the distributed economic value, represented by the part that remunerate the different stakeholders, is defined.  To determine the economic value generated and distributed, reference was made to the ABI Guidelines, which propose a reclassified income statement format prepared according to Italian standards for the banking sector.
Using this reclassification methodology, the economic value generated in 2024 by the Group was 1,296,135,843 euros, an increase of 116.651.566 euros compared to 2023.
This value was distributed 80% to the different stakeholders for a total of euro 1.042.254.645, up by euro 95.810.891 compared to 2023, thus exceeding euro 1 billion for the first time.

*May 2024 saw a change in the sustainable funding criteria from an approach based on the quality and sustainability risk of the issuer assessed through ESG ratings provided by external infoproviders to a funding defined with more stringent internal rules that also considers the level of sustainability of managed instruments and products and GSS Bonds (Green, Social and Sustainability). In December 2024 there was a change in the criteria of sustainable credits whereby loans whose purposes are aimed at a sustainable investment regardless of the use of a specific credit product (e.g., level of the Energy Performance Certificate, destination of the amounts declared in the Electronic Credit Practice, presence of ESG covenants) were added to specifically sustainable products."

The Sella Group is aware that safeguarding the environment is a priority and implementing behaviors that reduce global warming and counter climate change, preserving the future of the planet, is a necessary prerequisite for healthy and sustainable development in the long term and a duty of everyone, businesses and citizens alike. 
Thus, environmental sustainability refers to the concept of a party's responsibility to other parties and in particular to future generations: a moral responsibility, even before a legal one. 
The Group's approach is to be a promoter of a sustainable economy both through the constant improvement of its environmental performance and through its financial intermediation activities.

The strategy to contrast climate change, is therefore twofold:
- to reduce its own CO2 emissions (so-called own emission) and related effects starting from the good results already achieved, the Group's objective is to continue with environmental impact mitigation initiatives based on a decarbonization path defined on a scientific basis more challenging than the 1.5°C of the Paris Agreement;
- to support Clients and all stakeholders in the transition path with the decarbonization goal the Group's portfolio through consulting activities flanked by a wide range of dedicated products and services and the support of initiatives and activities that contribute to the achievement of this goal.
Consistent with the strategy to contrast climate change, approved by the Board of Directors of the Parent Company Banca Sella Holding, the Group's greenhouse gas emission decarbonization targets differentiated by type of emission source as well as the actions necessary to achieve them have been defined. The targets have been identified consistently with the current regulatory and geopolitical framework whose possible significant evolutions may require their future revision.

In the area of own emissions, starting from the analysis of the climate scenarios identified by the IPCC to contain global warming within 1.5° as envisaged by the Paris Agreement, targets to 2030 have been identified that are more ambitious than the path outlined on scientific grounds. Therefore, emission reduction targets to 2030, with base year 2022, were set in absolute value of emissions for Scope 1 and 2.
With reference to so-called financed emissions, the Group's goal is to reach the point of defining a portfolio decarbonization plan consistent with international agreements and European commitments. The definition of quantitative targets, however, is made particularly complex by the significant exposure of the loan portfolio to small and medium-sized companies that have not always already developed an adequate level of awareness that could be the basis for building a common decarbonization path. Therefore, to date only qualitative targets have been defined:
•    maintain and evolve disbursement and investment policies that enable them to support customers on their decarbonization journey and contain climate risk-taking;
•     further increase the range of products and services as well as consulting activities to support the transition;
•    evolve in the measurement of carbon emissions from credits and investments, with priority on lending.

For actions to support customers' transition, please refer to the section on Customers.
 

In order to achieve these goals, the Group has defined and started a transition plan that, consistent with the guidelines in the environmental sphere declined in the Sustainability Policy, consists of the following decarbonization levers:

• conversion of fossil fuel boilers through the installation of electric heat pumps serving the Head Offices and branches,
• modernization of the heat distribution network in the Head Offices,
• replacement of the type of refrigerant gas used in air conditioning systems in Headquarters and branches with one with a lower environmental impact,
• containment of energy consumption and energy efficiency,
• production of electricity from renewable sources through owned plants,
• reduction of the environmental impact of corporate mobility.

In continuity with what had already been achieved in previous years, activities associated with the various decarbonization levers continued in 2024. With reference to the buildings used by the Group during the year, the main actions and initiatives carried out were:

• replacement of the use of fossil sources with those from renewable energy, thanks to the migration to electric power of a series of gas-fired thermal power plants that involved both Head Offices and branches,
• replacement of windows and doors at the building complex in Biella Via Italia No. 2, one of the Group's main offices,
• replacement of lighting with LED transition in several branches,
• optimization of work spaces (space management) in the Branches,
• constant attention to energy consumption in order to avoid waste.

The Group has also chosen to adopt the internationally recognized LEED® (Leadership in Energy and Environmental Design) protocols developed by the U.S. Green Building Council (USGBC). The buildings to date certified are: 

• the Group Headquarters in Biella - Piazza Gaudenzio Sella 1 certified “Gold” since 2024; 
• the Group Headquarters in Milan - S32 certified “Platinum” since 2018.

Further lever of decarbonization of the Group is the choice of renewable sources for power generation. To date, all (100%) of the electricity purchased and used by the Sella Group in Italy and Romania is “green energy” certified with “Guarantee of Origin” from renewable sources. Worldwide, the percentage of “green energy” certified with “Guarantee of Origin” from renewable sources is 98.9%

In addition, the Group, consistent with its strategic guidelines, has also chosen to make significant investments in the production of electricity from renewable sources through its own plants. To date, there are 25 photovoltaic plants at the Group's buildings and branches, and during 2024 they produced 819.571 kWh (+72% vs 2023). This number increases to 1.032.931 kWh considering also the contribution of the hydroelectric plant built at the Biella Via Milano 1 headquarters in Biella and started up since March 2024. Overall, 78% of the renewable energy produced (PV and hydro) was self-consumed, resulting in 427.677 kg of CO2 avoided (+70% vs 2023). The plants mentioned are equipped with timely monitoring systems that record kWh production and also “avoided” CO2 emissions. 

Attention to the environment and sustainability issues also applies to suppliers; in fact, the aim is to give preference to those who adopt sustainable management practices and technologies and who provide products and services with a lower environmental impact, where the nature of the supply makes this possible and appropriate, along with an assessment of the other requirements of quality, reliability, reputation and price competitiveness.

Since the end of 2023, the Group has had a new Procurement & Cost Management procedure that, as part of the broader project to reengineer and digitize the purchasing process, requires relevant suppliers from the Group's Italian companies to accept the Sella Group's Code of Ethics and be assigned an ESG score. This score is the result of a questionnaire that takes into consideration the seven themes of the UNI ISO26000:2010 guidelines for the Social Responsibility of Organizations: organizational governance, environment, sound management practices, labor relations and conditions, human rights, community involvement and development, and consumer aspects.

With reference to office products, the Group has long chosen to contain the use of paper and toner, reconfiguring its internal processes from a digital perspective and offering green solutions to its customers such as the Sella box service or the collection of graphometric signatures at branches. In cases where printing is necessary, paper for office use in A3 and A4 sizes is selected according to the presence of specific certifications such as FSC, Ecolabel and ECF. While the paper used for sending communications to customers, if still remaining paper, is totally recycled.

The Group considers it fundamental to invest in the people it considers as its distinctive element through the following strategies: 

• growth and development: enable the growth of Team Sella by fostering development paths capable of elevating the professional contribution of people and facilitating attraction and retention of talent; 
  knowledge and training: ensure the growth, dissemination, transmission and updating of Team Sella's skills necessary for the success of the business plan and for the future of the Group; 
  attraction and workplace: attracting the talent the Group is aiming for by offering the best experience of working in the Group, preserving strengths and transforming the work environment to continue to be competitive; 
  diversity & inclusion: making Sella a more inclusive and diverse environment at every level of it, oriented to embrace diversity thus ensuring greater value generation and cultural richness;
  Makers: is the Sella Group's program that puts people at the center, transforming each employee into an engine of innovation and entrepreneurship.

In 2024, the relevant positive impacts identified were determined by some particularly significant projects:

• development of Lynfa, the Sella Group's academy: a training environment that promotes networking among its/their participants, internal/and external to the Group, as the main driver for personal and professional development,
• implementation of a new information system for Human Resources management,
• measurement of the Trust Index in all countries where the Group operates: the index collects and measures the opinions and feedback of Team Sella people (in an anonymous and protected manner) with respect to the work environment and corporate culture. The Sella Group Trust Index measurement in 2024 was 71 points, up 2 points from 2023 and up 7 points from 2022. This result, together with the analysis done by Great Place to Work of the Culture Brief, enabled the Group to achieve Great Place to Work certification in all countries. 

​
 

Sella has always considered diversity a winning factor for its success: diversity and inclusion are part of the Group's everyday life. In 2024 the Group has had several initiatives in this area: a multi-year research project with the Università Cattolica del Sacro Cuore to study the phenomenon of economic violence in interpersonal relationships, participation in the work of ValoreD, adherence to the proposal launched by the M&M association aimed at making a public commitment in favor of gender equality in the events in which the Group is called upon to participate, the creation of a dashboard for monitoring diversity and inclusion with more than 20 specific parameters, and the organization of a focus group entitled "Inclusiveness in the Sella group: visions, experiences and challenges to build our future" for the purpose of actively listening to the people of the Group. In 2024, training hours dedicated to diversity and inclusion issues amounted to over 2.600. The Group believes that offering its services accessible to all, is an essential aspect, therefore all Sella group companies have already embarked on a path to make their websites accessible - making their accessibility statement available to users - applications and documentation, breaking down "virtual" barriers.During 2024, a structured and in-depth approach was adopted for structuring development paths and sharing development actions for the Group's people.  
With a view to supporting the well-being of people in the organization and maintaining a high level of motivation and engagement, in continuity with previous years, the corporate welfare system available to all Italian employees and employees was enriched and promoted.

The Sella group, in accordance with its own values and role:

• supports entrepreneurship, the value of work, innovation, talent and creates networking opportunities through an ecosystem aimed at supporting growth, transition and digital transformation;
• supports, promotes and implements initiatives for the benefit of the territory both through its own initiatives and in collaboration with the various entities operating in it (public institutions, schools, trade associations, etc. );
• participates in the realization of cultural initiatives linked to the territory and its development also through liberal donations and sponsorships;
• supports and promotes social and solidarity initiatives in favor of the community and in particular in the territories in which it operates, both through economic support and through volunteer activity;
• does not make direct or indirect contributions to political parties, movements, committees and political organizations, nor to their representatives or candidates.

The Group maintains constant interaction with affected communities through various ways and initiatives. Here are some by way of example relating to key issues for the Group:

• stakeholder engagement process for the assessment of relevant impacts: the Group annually invites communities and the territory, including through the provision of a dedicated questionnaire, available online on the Group website, to express their opinion about the extent of the impacts identified by the Sella Group in carrying out its activities ;
  dissemination of entrepreneurial culture in particular through Sellalab, the Group's impact Open Innovation platform: Sellalab's education activity in the territories is a way to create widespread knowledge and to get in touch with the territorial community by understanding its needs and requirements that can find a solution among the services offered by the Group; 
  financial education: the dissemination of financial culture is a fundamental pillar of the Group's commitment in the field of education and is aimed at students, professionals, businesses. In order to contribute to the education of students and young people, the Group also carries out various activities with the support of leading organizations in the sector; 
  organization of volunteer initiatives: the Group and directly the individual companies, organize volunteer initiatives throughout the year in the territory.

If you want to find out more about the Group's initiatives to support the community and territory, visit Community and Territory 2024.

The Customer has always been the central element of the Sella Group's business and is the pillar of its organizational model. In 2024, the Group continued to be an active part of change to support economic, social and environmental development. Consistent with the goal of the sustainability plan to be a promoter of a sustainable economy also through its financial intermediation business, supporting its Customers in the process of transition to an economy with positive ESG impact. 

The constant expansion of the range of products and services dedicated to sustainable transition, both in the area of lending and financing, flanked by quality consulting are the essential elements to support Customers in a path of improvement of their sustainability profile, providing them with solutions capable of responding to different needs.  

Being sustainable for Sella means concretely helping Customers in meeting their needs, generating a positive impact on their future, that of their family and the environment around them. A conscious economic model makes it possible to safeguard resources and foster widespread well-being. The Group's commitment is therefore towards responsible choices, capable of generating value for Customers and all its stakeholders.

Sustainable investments
The Group has long been committed to increasing customer awareness of the impact that investments can have on environmental and social sustainability. In this regard, it confirms its ambition in terms of "sustainability" through:

• the expansion, in the area of ​​managed savings, of the range of products that are legally recognized as suitable for promoting sustainability or that aim to make sustainable investments;
• the monitoring of the "ESG quality" of the portfolios of Customers to whom investment and portfolio management consultancy services are provided. In consideration of the continuous evolution of both business and regulation, at least annually, Banca Sella and Banca Patrimoni Sella & C. will find a goal on the quality of Customer portfolios. 

During 2024, the Group was engaged in the activity of evolving the product range in order to increase its sustainable offering. In particular, the activities concerned:

• the consolidation of agreements with Asset Managers able to offer sustainable investment products, which made it possible to make available to customers more than 2,600 funds ex art. 8 and ex art. 9 in accordance with the SFDR regulation;
• the expansion of the captive OICR range; 
• the conversion of a large part of the Portfolio Management range towards “sustainable” lines which made it possible to make available 63 lines ex art. 8 and a new line ex art. 9 in accordance with the SFDR regulation.

Sustainable proprietary securities
The Group has defined the principles and guidelines that inspire the investment activity in its proprietary securities from the point of view of sustainability, which are integrated with the essential financial assessments.
In integrating the sustainability factor into its investment strategies in proprietary securities, the Group is mainly inspired by the sustainable development objectives of the UN Agenda 2030, seeking to promote those that are most likely to be enhanced through the investment choices of managers.
On the basis of these principles, the Sella Group undertakes the following concrete commitments in the management of its proprietary securities portfolio:

• promote sustainable investments by formulating specific objectives in reference to the holding of amounts of ESG financial instruments (for example, green bonds, social bonds, sustainability bonds);
• integrate the ESG factor into investment choices and reporting systems by monitoring the composition of the portfolio with specific monthly reporting that also includes the ESG ratings and the “E” score of the proprietary securities;
• reduce unsustainable investments by excluding issuers from controversial sectors.

At Group level, sustainable investments (excluding government bonds) for the proprietary portfolio for 2024 amounted to 529.4 million euros compared to a target for the year of 459.0 million euros, with an impact of 27.1% on the overall component of corporate bonds and mutual funds and with an increase of +162.2 million euros compared to the value at the end of 2023.

Sustainable credit
The Sella Group is strongly committed to implementing virtuous behaviors and offering solutions that help customers effectively manage the transition to a sustainable economy and contribute to the fight against climate change. During 2024, the offer of credit products to support investments in the energy transition was further consolidated with green loans and mortgages aimed at meeting the specific needs of individuals and companies. For all credit requests aimed at financing sustainable investments, a rigorous evaluation process has been introduced to verify the achievement of one or more objectives established by the 2030 Agenda, in order to fully map the so-called "sustainable disbursement". The Group has also identified the evaluation of the ESG profile of corporate customers among its priority activities, with the aim of measuring the needs of companies with respect to the transition, in order to direct services and products aimed precisely at satisfying those needs. In this regard, the “ESG Platform” was created to collect a dynamic questionnaire on ESG issues, delivered to companies to progressively detect information on CO2 emissions, preparatory to determining the carbon footprint of the Group's loan portfolio and measuring the impacts of transition risk. The outcome of the questionnaire, composed of questions that probe the positioning of the Companies on the main issues of the three areas of interest: Environmental-Social-Governance is summarized in the ESG Score, which returns the greater or lesser alignment of the counterpart with respect to sustainability issues. The stock of Group-level credits assessed as sustainable, therefore attributable to Asset Based Green Loans, tax credits for purchased Ecobonuses, Sustainability Linked Loans, Financing for sustainable investments (whose purposes are therefore aimed at a sustainable investment regardless of the use of a specific credit product), loans sustainable from a Social point of view and loans sustainable from a Government point of view, compared to total loans, including purchased tax credits, was equal to 15.17% in 2024.