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UniCredito Italiano – Italian Stock Company Registered Office: Genoa, via Dante 1 - General Management: Milan, Piazza Cordusio Registered in the Genoa Trade and Companies Register (Court of Genoa) Tax Code and VAT Reg. No. 00348170101 Entered in the Register of Banks and Parent Company of the UniCredito Italiano Banking Group Banking Group Register No. 3135.1 - Member of the Interbank Deposit Protection Fund Printed on certified recycled Capital stock: e 3,148,070,110 fully paid in chlorine-free paper. Social and Environmental Report 2002 2 INTRODUCTION

Contents

Board of Directors, Board of Auditors 4

Letter of the Chairman 6

Introduction 8

PART ONE CORPORATE IDENTITY History 14 A new identity 16 Mission, values and conduct guidelines 18 History of our new logo 20 Corporate governance 21 Calculation and breakdown of value added 24 The situation in 2002: organisational structure and the distribution model 26 Shared values, service quality and integration with the territory 32

Interview with the Managing Director/CEO 34 SOCIAL AND ENVIRONMENTAL REPORT 2002 3

PART TWO AREAS OF SUSTAINABILITY Quality of labour 40 Market and territory 52 Environment, health and safety 64 Security and privacy 72 Listening and dialogue 76 Corporate citizenship 80

Schedule to the 2002 Social and Environmental Report 90 PricewaterhouseCoopers opinion 108 Glossary 110 Questionnaire 113 4 INTRODUCTION

Board of Directors, Board of Auditors SOCIAL AND ENVIRONMENTAL REPORT 2002 5

Board of Directors as at 31 December 2002

Chairman Carlo Salvatori * Deputy Chairman (with vicarious duties) Eugenio Caponi * Deputy Chairman Franco Bellei * Deputy Chairman Fabrizio Palenzona * Managing Director/CEO Alessandro Profumo **

Directors Roberto Bertazzoni ** Vincenzo Calandra Buonaura Mario Cattaneo Philippe Citerne Ambrogio Dalla Rovere Giovanni Desiderio Guidalberto di Canossa Francesco Giacomin ** Piero Gnudi Mario Greco * Achille Maramotti Gianfranco Negri-Clementi Carlo Pesenti ** Giovanni Vaccarino Anthony Wyand

Secretary Marco Fantazzini

* Member of the Managing Committee and Executive Committee ** Executive Committee Member

Board of Auditors as at 31 December 2002

Chairman Gian Luigi Francardo

Statutory Auditors Giorgio Loli Aldo Milanese Vincenzo Nicastro Roberto Timo

Alternate Auditors Giuseppe Armenise Marcello Ferrari 6 INTRODUCTION

Letter of the Chairman SOCIAL AND ENVIRONMENTAL REPORT 2002 7

The organisational structure evolution of which seem imponderable, takes more Based on this conviction, last year we UniCredit Group, which is tied to the time than designing structures and launched a specific research project transition to a new business model organisational processes. Good things called “Itaca,” during which we sought focused on specialisation by market take time to develop. On the other hand, to speak directly with local market segments, sets the stage for this edition once projects are launched, it is easy to players from the areas where we work of the social and environmental report. delude oneself that everything will to gather information on the meaning of In fact, in 2002 we were engaged in happen automatically and almost the transformations that are affecting creating a new, unique way of banking inevitably. Wisdom tells us that we need local companies and economies. In through the S3 project, which was to make use of the combined past addition, we listened to our aimed at reorganising our seven Italian experience of various cultures: with stakeholders and took other significant banks into three new entities dedicated many good past experiences to steps – the road show to present the to different types of customers: retail, remember, we are able to face the S3 project to our employees, a survey corporate and private. future objectively. on the business climate, meetings with representatives of those involved in In 2002 we were also engaged in civic duties and social work – all of planning the creation of our non-profit which were aimed at reaffirming our foundation called Unidea (established at commitment to be active “citizens” in the beginning of 2003). Its primary aim the community where we live. is to use a share of Group profits to support fund-raising activities in the The ability to innovate with a continuing areas of social services, health and commitment and shared values by education in developing countries and continuing to focus on local central Europe and the Balkans. development means that we feel to be a vital and responsible part of the social All of this has come together to show fabric. Taken as a whole, all of this the timeliness of a new vision of the represents the goal we want to achieve Group’s identity and role. The Group and the key to complete support for our has to ask itself - starting from its base, That is why the creation of the social new way of banking by listening and i.e., the various areas in which it and environmental report this year has understanding the needs and operates and then expanding even more significance for corporate expectations of our customers. nationwide - whether it wishes to governance since we wanted to become a leading company with which conceive this first “unified report” for the people can plan their future, able to Group while remaining faithful to the represent interests, exercise cultural commitment taken in this regard in the influence and talk to institutions. last edition. The report combines key Carlo Salvatori results of UniCredit's corporate social This means that differing roots can be responsibility together with useful productive if intertwined to form a new elements and information that explain tree bearing fruit. In corporate cultures, how we are approaching this important the identity of individual companies crossroads and how we intend to focus takes form, and their distinctive spirit our conduct in the context of full surfaces. Shaping these soft elements, operation of the new segment banks. 8 INTRODUCTION

Lasting economic growth Lasting economic growth that takes into account the social and environmental impact of achieving such target must be the goal of any organisation that operates according to the principles of sustainable growth. In this context, the creation of the social and environmental report takes on the significance of a strategic decision. Introduction

Lasting economic growth that takes prosper in the environment where the resources and social relations play a into account the social and company operates. role that cannot be ignored when trying environmental impact of achieving such Thus, the goal must be to unite these to explain the attainment of certain target must be the goal of any two orientations, which only appear to levels of economic development. organisation that operates according to be separated. The Italian model of local the principles of sustainable growth. In development proves that civic virtues Thus, it is increasingly important for this context, the creation of the social are not separate from economic companies, and for banks that provide and environmental report takes on the growth, or at the very least, their services to the community, to have a significance of a strategic decision. well-defined corporate identity, i.e., a system of values in which all parties Since the aim of this tool is to renew concerned can be recognised clearly our commitment to face up and to and precisely. And it is extremely reflect on issues of social responsibility, important that these values “take root” the company’s commitment in this area at all levels of the corporate should not be seen just as another way organisation. This is essential for those of achieving higher growth rates. who work in businesses, and also, In fact, UniCredit’s goal is to cast aside obviously, for customers and all parties the rooted cultural approach that with which the businesses interact. To separates social issues from It is extremely important that have this ability, it is necessary to everything else involving economic these values “take root” at possess a large set of guiding growth: this divergence, depending on all levels of the corporate principles and conduct, which makes it the players involved, at times leads to organisation. possible to be recognised not only for emphasis on social cohesion and civic generating a good profit, but also for duty, and at times to emphasis on the futures are closely linked. Take for social responsibility and caring for what economy and profitability. The example the network of manufacturing is happening in a broader perspective conviction that what is good for the systems spread throughout Italy, where in order to start and maintain a community is also good for the high levels of entrepreneurial activity sustainable strategy over time focused company is the only way to start a and competitiveness are based on on discussion and partnership with all virtuous cycle able to make everything corporate assumptions in which human parties concerned. SOCIAL AND ENVIRONMENTAL REPORT 2002 9

In a word, social responsibility is an of sustainable growth is devoted to that defines the entire Group’s identity, investment, not a cost: operating in this interpreting the information and data which is presented in the section manner means, also for a bank group, presented in the context of the growth dedicated to corporate identity. coming to grips with the possibility of experienced by the Parent Company in As structured, this document has supporting growth prospects locally particular and its banking structure become a fundamental internal and in the broader area (where, nationwide, which has been organised milestone in the process of expanding however, talk about so-called “ethical since 2002 by market segments social and environmental reporting for districts” has already begun) where (private, corporate and retail), and also the entire group. This goal has been manufacturing and labour intersect with the growing commitment of the Group’s pursued since the first edition, and will respect of guarantees for individuals foreign banks in these areas. This is be completed with the preparation of a and environmental protection. evidence of the corporate desire to take consolidated social report. From the standpoint of UniCredit, this pains to determine the impact that In addition to the criteria established for means that the commitment the credit sector by the Italian to socially responsible Banking Association, the new economic growth affects all edition of Global Reporting entities with which it comes in Initiative guidelines (2002) is contact, and also requires a one of several methodological contribution from those who references which provide intend to share in this growth. further confirmation of the All in all, this means creating harmony of principles and a social report in this specific structure. This edition is a context that is truly leading work in the area of representative, and not reporting sustainable growth merely an annual publication at the international level. that reports the company’s operating results. The need, on the one hand, for a document that meets the In a constantly changing The Group is committed to economic growth requirement of complete external environment, the that is compatible with the well-being of the coverage of the subject principles that guided the community today and in future generations. matter concerned, and on the Group’s transformation over other hand, for a more recent years to its current structure (a these changes have had and are streamlined, readable document for a complex entity made up of about having on the perceptions of wide range of counterparts with 30,000 employees nationwide and a employees, customers and the differing characteristics and similar number abroad) have left their community, and its desire to try expectations, led to the decision to only mark in all sections of this report, which innovative tools to maintain a dialog include the most significant information is now in its third edition. and to communicate with the various and data in the report, and to refer the In particular, in its description of counterparts in the areas where it reader to other quantitative data UniCredit’s customary activities and operates. included in the attached CD-ROM for economic, social and environmental The “guiding light” that directs the further details. activities and the related results, the initiatives and activities described is section of the report dedicated to areas clearly reflected in the profile of values Corporate

HISTORY

A NEW IDENTITY

MISSION, VALUES AND CONDUCT GUIDELINES

HISTORY OF OUR NEW LOGO

CORPORATE GOVERNANCE

CALCULATION AND BREAKDOWN OF VALUE ADDED

THE SITUATION IN 2002: ORGANISATIONAL STRUCTURE AND DISTRIBUTION MODEL

SHARED VALUES, SERVICE QUALITY AND INTEGRATION WITH THE LOCAL AREA Identity 12 CORPORATE IDENTITY

Maintaining consistent conduct

Corporate Identity

Do what you say you will. Acting consistently is not only management’s but everyone’s responsibility, and it guarantees the personal “ sharing of the corporate mission and values. ”

14 CORPORATE IDENTITY History

UniCredito Italiano is the largest banking was acquired in Bank Pekao, the Subsequently, the largest bank in Croatia, group in Italy by market capitalisation. In second largest commercial bank in Zagrebackav Banka, and Demirbank Europe it is one of the top five banking Poland. This was the first step in the Romania (now UniCredit Romania) joined groups by efficiency and profitability, and Group’s strategy to penetrate markets the bank. In Turkey, UniCredito Italiano in the top twenty by total assets. in the New Europe. Between 1999 and reached an agreement with the Koç 2000 the Slovak bank, Pol’nobanca Group (one of the key private groups in It was formed in 1998 from the (now UniBanka); Bulbank, the main the country) for an equal partnership in combination of Credito Italiano and Rolo Bulgarian bank; and the Croatian banking and financial services. Banca 1473 (Credito Italiano Group) with Splitska Banka (sold to Bank Austria in On 17 December 2001 the S3 project Cariverona, Cassa di Risparmio di Torino April 2002) joined the Group. was launched to reorganise the Group’s and Cassamarca (Unicredito). In 2000, Pioneer Global Asset Italian banks. The goal of the project In 1999 Cassa di Risparmio di Trento e Management was created with the was to transform the existing federal Rovereto and Cassa di Risparmio di acquisition of the Global Investment structure into a multi-specialist business Trieste became a part of the Group. Management division by Pioneer in model organised by customer segment: Again in 1999, a controlling interest Boston. retail, corporate and private.

The S3 project: banking by segment to create value over time

In 2002 UniCredit proceeded with the important project of transforming its corporate structure from a federal, geography-based organisational model (adopted in 1998) to a model based on “customer segment.”

The project – named S3 for the three market segments the Private Banking (for working with high net worth new structure will target – is aimed at increasing individuals). specialisation, the bank’s local presence and customer The process took place in the following phases: satisfaction through a structural and functional reorganisation of the Group’s seven Italian banks (Credito Phase One: July – September 2002: creation of Italiano, Rolo Banca 1473, Cariverona, Banca CRT, UniCredit Banca from the unification of the federated Cassamarca, Caritro, CRTrieste) into three new, large banks banks. that target specific market segments and are able to create The following occurred on 1 July 2002: innovative products and services. Effective 1 January 2003 1. The transfer to Credito Italiano (which took the name of they will assume the following names: UniCredit Banca UniCredit Banca) of the banking operations resulting from (the retail bank for households, professionals and small the merger of Rolo Banca 1473, Banca CRT, Cariverona businesses), UniCredit Banca d’Impresa (the corporate Banca, Caritro, Cassamarca, CRTrieste and some of the bank for medium and large businesses) and UniCredit operations of the Parent Company; SOCIAL AND ENVIRONMENTAL REPORT 2002 15

1473

2. The transfer, from the Parent Company to UniCredit phase the structures, resources and contractual Banca, of the Call Centre and retail, corporate and private relationships with customers were carefully identified in banking business areas, which perform marketing order to create the future segment banks, while providing functions and provide service to the Italian branch uninterrupted operations. network. Phase Three: 1 January 2003: creation of the three Phase Two: October – December 2002: internal segment banks reorganisation of UniCredit Banca UniCredit Banca d’Impresa (headquartered in Verona) and As the vehicle for the reorganisation, UniCredit Banca acted UniCredit Private Banking (headquartered in Turin) were as the “single bank” under the new reorganisation into three created from the partial spin-off of UniCredit Banca (which is specialised banks which was realised in January 2003, with the retail bank, headquartered in Bologna). They the goal of organising and structuring operations by market commenced operations and began rationalising and segment (corporate, retail and private banking). During this optimising their respective structures.

January 2002: July 2002: October 2002: January 2003: Project Mergers Create divisions Spin-offs launch and transfer according to segment

Prepare Reorganise Create for the creation UniCredit Banca the three future banks of the “single bank” “by segment” within the “single bank” 16 CORPORATE IDENTITY

A new way of banking and a new identity Creating an identity in an organisational structure that incorporates seven different entities, which are traditionally based on very distinct cultures, is an operation that requires a combination of focus, respect and strong planning skills. A new identity

Every identity has differences and organisational or procedural terms. creates boundaries: feeling a part of or And this is the very task that the outside this identity is not merely a matter UniCredit Group is pursuing through trips of organisational engineering, and the and meetings that bring the different local time it takes to feel a part of the structures together, right where they organisation has a certain “patience work, with the Group’s representatives threshold” that does not always coincide and authors of the change. with the timing dictated by the change. Recognising, dealing with and managing That is why, as a common structure with these differences (“eliminating the shared strategies and skills, at least two remnants”) serve as a self-confirmation levels of processing are significant: that the changes will not be well 1) The first is aimed at giving life to the entrenched until the environment of new new “inclusive” structure as a support values or thoughts that developed over values becomes a space for positive network that ensures compliance, time, and the loss of these values results sharing without prejudices and including symbolically, with the project in suffering, resentment and a degree of reservations. by defining new rights and duties of revenge that preclude fully experiencing However, this identity is never a finished citizenship and providing justification on an “optimistic outlook” tied to the new product. It is fed by disagreements, loves more than a legal and economic basis; organisation created. challenges and embraces conflict. 2) The second level of processing deals It is a known fact that the more ingrained Especially in our case, the milestones with the “remnants” that the the cultures, the greater the resistance to (chapters) of a new story pass almost convergence of diverse cultures in the change as a form of defence of the naturally, and the story is enriched in its new system inevitably leaves behind. individual identities when faced with an diversity by seeking a “model” to propose The second level is more ambiguous and image we perceive as threatening, not and a “passion” to share. capable of compromising the success of only to our work, but our very social life any unification operation. In essence this as well. This results in an often implicit means that at the time the different reluctance to show trust. entities lose their autonomy to become a The newly created common identity must part of the larger entity, there are parts for make a priority of dealing with this Pier Luigi Celli which there is no place in the new “unspoken” emotional issue, which Manager Corporate Identity organisation. These are nearly always cannot be translated into strictly

18 CORPORATE IDENTITY Mission, values and operating guidelines

We currently are, and want to continue growing as one of the largest European financial and business groups with a strong presence in the areas where it operates. We want to do banking in a new way to generate a high value over time for:

The Community Employees We act as a corporate citizen that promotes sustainable growth We take care of their professional growth, seeking out and from an economic and social standpoint wherever the Group promoting the use of growing skills. We aim to be the ideal operates. We make social responsibility a characteristic feature company for capable and motivated people. We want to develop of our operations, and realise that we are an important part of and maintain their skills as a natural result of an overall well- society and the communities in which we act. managed, humane and professional structure capable of offering the same opportunities to everyone and rewarding Customers excellent performance. We want to attract competent individuals Customers are the centre of our focus and our operational with values similar to our own. decisions. We take care of our customers and help them to carry out their projects and optimise their returns. We want Shareholders to guarantee them the best levels of service and products Our commitment to our shareholders is to provide a high and with a high quality/price ratio through dedicated structures growing return on capital and dividend growth, increase our specialising in their needs. We strive for excellence based market value and provide appropriate risk management. We on our ability to stay close to our customers and build also want our shareholders to be satisfied with results and proud long-lasting relationships with them based on quality, of the distinctive style we use to achieve them. We must mutual trust, competence and open dealings. We constantly strive to achieve the best return and growth as a constantly measure their level of satisfaction and make reward for quality, efficiency, business attitude and adherence to them aware of it. a precise, well-defined, widely shared code of ethics.

Our Group’s value profile is based listening and seeks ongoing discussion development of UniCredit. They primarily on obeying rules, ethically inside and outside the company as a embrace not only commitments made appropriate conduct and work with a stimulus for the creation of new ideas to shareholders, customers and good knowledge of our responsibilities. and constant improvement. employees, but also those made to All activities are rooted in innovation Its conduct is distinguished by fairness the community: it constantly strives to and the search for the best solution as a and openness and it is committed to promote sustainable growth in the result of a creative and entrepreneurial avoid all discrimination. It is prepared to economic, social and civil spirit. The Group believes in people as justify its decisions to the market and environment in which the Group’s the “fundamental component” for happy to provide all information banks are located and operate. creating value and encourages the necessary to make its customers development of competence as an knowledgeable. The core of this new corporate identity is to essential condition for common growth, feel that we are, and actually be, “citizens” and it encourages initiative, teamwork Mission and values serve as the ideal by taking responsibility in relationships with and the ability to delegate. It promotes cultural foundation for the strategic all our counterparts in an effort to make our SOCIAL AND ENVIRONMENTAL REPORT 2002 19

We have chosen to follow our mission and proclaim our identity by drawing inspiration from strong common principles that have become our values:

Ethics/Responsibilities individuals and the organisation to develop skills and build on Ethics is our conviction that “doing business” means following experience and develop a specific, distinct knowledge base. the rules: those connected with our duties to shareholders, Thus, growth is the result of enhanced skills and constant those that affect relationships with stakeholders and the striving to achieve important goals. community where we operate, and also those dictated by our conscience. This concept is also reflected in the assumption of Listening/Discussing responsibility as an ethical choice for anyone who deals with the This business will be built by growing together, involving all consequences of his actions, and in loyalty as a minimal individuals and entities that make it up. The collaboration competitive principle. necessary to be effective is possible only when there is a real desire to listen, and open discussion is encouraged including Creativity/Entrepreneurship the discussion of differing ideas, which will lead to the creation By creativity we mean the orientation towards innovation and of better solutions. the constant search for better solutions. The incentive to improve and face new opportunities with a positive attitude Fairness/Openness enhances our spirit of enterprise, which distinguishes our Group For us fairness means giving everyone the same opportunities as an innovative and entrepreneurial player. based on merit, potential and need on the basis of in-depth knowledge and reasonable assumptions of trust. Competence/Growth Open dealings and information lead to long-lasting relationships Competence is seen as the continuing commitment of with people, customers, investments and suppliers.

daily conduct consistent with corporate awareness in external counterparts so employees, and from union values and mission. that they support and contribute to the representatives to those engaged in Social, environmental and safety success of the Group’s initiatives in the social initiatives and institutions. policies are based on these area of environmental protection. An components, and delineate the Group’s important achievement in this area was There are ongoing efforts to ensure the objectives and direction in the area of obtaining ISO 14001 certification in 2002 safety of employees, who are the corporate social responsibility as and EMAS registration by the Parent Group’s most important asset, through summarised below. Company, UniCredito Italiano S.p.A. prevention and protection measures, which are carried out through a careful, All environmental protection measures Ethics, fairness, discussion and up-to-date assessment of actual and are aimed at continually improving openness are the pillars on which potential risks. Discussion and the services, sharing decisions, getting UniCredit bases its relationships with involvement of people are key elements: employees involved, openly various counterparts, from employees training, information and discussion are communicating results and creating to volunteer workers and government the basis for obtaining significant results. 20 CORPORATE IDENTITY History of our new logo

Creating a new bank and a new logo are not separate or even merely parallel processes: they are expressions of the same plan, with one inseparable from the other.

For the banks of the UniCredit Group, Nor was the selection of colours left to community and the bank) were not seen the logo must be a precise reflection of chance, since colours communicate at to be opposing figures, but seemed the new way of banking. The main both the logical and analogical level: close, related, and they appeared to be raison d’etre of the process that led to UniCredito Italiano is red, UniCredit interacting and discussing. the creation of the three banks is the Banca is orange, UniCredit Banca willingness to focus on the customer d’Impresa is dark blue, and UniCredit This means that this logo, which is and more capably meet his true needs. Private Banking is dark green. characterised by interaction, was The new logo of the Parent Company identified and found to be consistent and those of the three banks are meant Research showed that customers liked with a bank with a local presence that to express this very concept. this new logo, finding in it the operates through ethical decisions and traditional values of a solid, conduct with a customer focus and a The decision was to have a single professional, reliable and credible strong culture of commitment and graphic symbol, a common “UniCredit” bank, as well as elements of dynamism social responsibility. base, and to develop it into four and innovation. differently coloured, cohesive designs. It Thus, the logo is like a flag that serves was based on the Parent Company’s What did they “see” in the new logo? to identify and create recognition and previous logo with certain changes. The In the sphere they saw “the world” or to reflect the world that it expresses. circle became a sphere, the “1” was “the community” (in essence, Thus, it is something living that is born, transformed into a sort of arrow pointing themselves); and they saw the bank moves, grows and evolves like the up and to the right, and the single sign represented by the arrow-shaped “1.” company itself. Thus, UniCredit’s logo became two interacting “objects.” However, the two objects (the represents a new way of banking. > SOCIAL AND ENVIRONMENTAL REPORT 2002 21 C orporate governance

Corporate governance is the set of criteria and corporate administration processes aimed at creating sustainable economic value over time for stakeholders.

The openness of governance processes control systems, protection of the another term is set at the time of the appointment. is a basic requirement for a financial shareholders’ interests and the clear It generally meets at least every three months and institution, as highlighted by recent assignment of powers and whenever the chairman deems necessary, or when changes in laws that have forced responsibilities. In this sense, the code the chairman is requested to do so by the businesses to adopt self-regulating of conduct for internal dealing was managing director/CEO or at least three directors. A meeting can also be called at the request of at controls that supplement and reinforce prepared with the goal of monitoring least two internal auditors. legal restrictions. specific financial transactions carried out by individuals in senior positions This year there were 14 meetings, one of which To protect its customers and within the Group. was extraordinary. stakeholders, and in accordance with The following individuals may be invited to attend current laws, the UniCredit Group Board of Directors meetings to report on specific topics, but do not adopted a code of ethics that identifies the have voting rights: deputy general managers, rights, duties and responsibilities of the Composition senior managers and central co-managers, as well company with respect to its counterparts. The Board of Directors can be made up of nine to as other senior managers of general management. It adopted self-regulating controls for twenty members with a term of three years unless At present there are twenty board members.1: brokers that provide Position Place and date of birth Degree investment services. It adheres to the self- Carlo Salvatori (*)(**) Chairman Sora, 7.07.1941 Economics, business and banking governing controls of listed Alessandro Profumo (**) Managing Director/CEO Genoa, 17.02.1957 Business economics companies that are intended Eugenio Caponi (*)(**) Deputy Chairman (Vicarious) Florence, 8.03.1936 Law to ensure due control of Franco Bellei (*)(**) Deputy Chairman Modena, 24.04.1944 Biology and sociology business risks, the absence Fabrizio Palenzona (*)(**) Deputy Chairman Novi Ligure, 1.09.1953 Law Roberto Bertazzoni (**) Director Guastalla, 10.12.1942 Economics and business of conflicts of interest, and Vincenzo Calandra Buonaura Director Reggio Emilia, 21.08.1946 Law openness, and it also Mario Cattaneo Director Genoa, 24.07.1930 Economics and business complies with the code of Philippe Citerne Director Lens Pas de Calais, 14.04.1949 Economics conduct for the banking and Ambrogio Dalla Rovere Director Thiene, 15.01.1940 Dip. acc. financial sector prepared by Giovanni Desiderio Director Bosconero, 4.05.1948 Dip. des. the Italian Banking Guidalberto di Canossa Director Verona, 31.07.1949 Political science Association. Francesco Giacomin (**) Director San Polo di Piave, 2.08.1951 Law Piero Gnudi Director Bologna, 17.05.1938 Economics and business For UniCredit the adoption Mario Greco (*)(**) Director Naples, 16.06.1959 Economics and business of a corporate governance Achille Maramotti Director Reggio Emilia, 7.01.1927 Law model represents both a Gianfranco Negri-Clementi Director Rome, 12.06.1931 Law necessity and a guarantee Carlo Pesenti (**) Director Milan, 30.03.1963 Mechanical engineering of quality corporate Giovanni Vaccarino Director Tronzano, 1.04.1941 Political science information, open internal Anthony Wyand Director Crowborough, 24.11.1943 BA Ist Class Honours, MA King’s College

(*) Managing Committee Member (**) Executive Committee Member

1. The following individuals are independent as defined in Article 3 of the Self Regulating Controls for Listed Companies: Messrs. Salvatori, Bellei, Palenzona, Bertazzoni, Calandra Buonaura, Cattaneo, Citerne, Dalla Rovere, Desiderio, di Canossa, Giacomin, Gnudi, Maramotti, Pesenti, Vaccarino. 22 CORPORATE IDENTITY

Within the board, certain directors with consulting level, with related parties and other bank groups; H) report to shareholders at shareholders’ and advisory functions have been assigned specific A.3) defining guidelines for internal control systems meetings. duties related to certain areas of internal controls, and periodically verifying the adequacy and actual appointments in the Group’s corporate governance operation of such systems ensuring that the main The board may assign, modify and revoke powers of bodies, the compensation of such appointments and corporate risks have been identified and are attorney by setting their limits and the methods for of senior management. In the appointment of these properly managed; analysing periodic reports of exercising them, as well as the frequency with which directors, who meet in committees, a significant role the control systems; assessing mechanisms to the bodies granted powers must report to the board is given to non-executive directors who: control corporate and Group results and the on activities performed in the exercise of the powers accounting of such results; granted. a) do not directly, indirectly or on behalf of third A.4) defining procedures for providing information parties maintain, nor have they recently to outsiders on documents and information Decisions made by the board of directors regarding maintained, economic relationships with the regarding the Parent Company and the Group, and management guidelines and the Group’s main company, its subsidiaries, executive directors, also with regard to price sensitive information and strategic initiatives are clarified by the managing shareholders or groups of shareholders who have information on transactions involving financial director at meetings of management committees a level of control in the company that would affect instruments carried out by individuals who, due to when required, with information and consulting their ability to be objective; their position, have access to relevant information functions in the regulation of the Group. (internal dealing); b) do not directly, indirectly or on behalf of third A.5) identifying criteria for determining Committee parties own an equity interest in an amount that compensation for the Group’s senior management; In order to promote an efficient information and would allow them to exercise control or significant A.6) approving stock option and stock granting consulting system that gives the board of directors a influence over the company, nor do they participate plans for Group personnel. means to perform a better assessment of certain in agreements among shareholders in order to issues under its responsibility, two committees were control the company; B) examine and approve the company’s strategic, established with consulting and/or advisory roles, industrial and financial plans and the Group’s and also investigative duties, on a limited basis, with c) are not close family members of executive corporate structure headed by the company; diversification by area of responsibility. directors of the company or individuals included in Both committees may have independent operating the situations indicated in paragraphs a) and b) C) oversee general operating performance with a rules that specify that dissenters may express and above. specific focus on the status of conflicts of interest, report the reasons for their dissent to the Board. taking into consideration, in particular, information However, all directors must act and vote with full received from the executive committee, managing Audit Committee knowledge of the facts and objectivity and must director and audit committee, and periodically This committee is made up of five non-executive devote time in order to pursue the goal of creating comparing actual to budgeted results; directors, the majority of whom are independent. value for shareholders. By law, the chairman of the board of directors and D) approve the acquisition and sale of equity deputy chairman (vicarious) are members; if no Function investments, companies or divisions in amounts appointment has been made for the latter, a member Operating in accordance with the provisions, duties greater than 1% of shareholders’ equity, and in any of the committee is identified among the members of and authorities set by law and the bylaws as well as event, the acquisition and sale of equity the managing committee. This member will general rules indicated in the self-regulating controls investments that change the Group’s composition; automatically be removed in the event a vice for listed companies that are currently in effect, the chairman (vicarious) is subsequently appointed and board of directors has sole authority to: E) review and approve transactions with a he does not fill this position. The other members must significant operational, balance sheet and financial be selected based on the best skills and their A) determine criteria for coordinating and managing impact, particularly with regard to transactions with willingness to fill the position. Group companies and for implementing instructions related parties, subject to the definition of criteria The committee elects among its members, other of the Bank of Italy, and within the framework of for identifying them; than those who participate by law, a chairman and exercising power granted to the Parent Company by secretary. The latter may also be appointed from legislative and regulatory provisions, to give F) verify the appropriateness of the organisational outside the committee’s membership, and prepares instructions to members of the Group for the and administrative structure of the company and appropriate minutes for each meeting. purposes noted above, and to verify that such Group prepared by the managing director; instructions are actually carried out. Thus, the board The committee has investigatory, consulting and is responsible for: G) after reviewing the proposal of the appropriate advisory duties. In particular, the audit committee: A.1) determining general management guidelines committee and consulting with the board of for the Group’s operating policies in preparation for auditors, determine the compensation of managing A) assists the board of directors in determining the drafting of multi-year plans and budgets, directors and directors filling specific positions, and guidelines for internal control systems and the approving these and verifying that they are duly if not already handled by the shareholders’ periodic verification of their appropriateness and implemented; meeting, determine the breakdown of overall actual operation, and in the activities performed by A.2) approving partnership, joint venture and any compensation due to individual members of the the board of directors to ensure that the main collaboration agreements, including at the industry board and executive committee; corporate risks have been identified and are SOCIAL AND ENVIRONMENTAL REPORT 2002 23

managed appropriately; it also performs analyses of Company’s senior management may be asked to The chairman will not participate in meetings the periodic reports on control systems; participate in meetings of the committee, including regarding the determination of proposals on his own separately, based on the specific issues covered. compensation; similarly, the managing director will B) assesses the work plan prepared by those in These individuals may always submit topics and not participate when meetings are held to set his or charge of risk management controls and audit questions for the committee’s review, for which they the chairman’s compensation. activities, from whom it receives periodic reports; feel an investigation would be useful for subsequent reports to the board. To carry out the above duties, the committee may C) together with the company’s administrative The committee is responsible for establishing avail itself of the Parent Company’s management, managers and auditors, it assesses the appropriate relationships with the board of auditors to and if appropriately substantiated, may propose appropriateness of accounting principles used and perform those activities deemed to be common to the hiring outside consultants. their standardisation for the purposes of preparing two bodies in compliance with their specific powers. consolidated accounts; This committee, convened well in advance of the Compensation and Nominating Committee meeting of the board of directors at which the motion D) assesses criteria proposed by the branches for This committee is made up of six members including, will be discussed and the resolution passed in the selection of the auditing firm (or “the Group’s by law, the chairman of the board of directors, deputy principle, is also in charge of providing an opinion on auditing firms”) and the work performed by it (or “by chairmen and the managing director. If there is no appointments to be indicated for the positions of them”), and reviews the status of relationships with deputy chairman in office, members of the managing directors and internal auditors of Group companies the auditing firm, including in consideration of any committee are members by law, in addition to the designated as “key companies” on the basis of the consulting duties assigned to them by the Parent chairman and managing director; these members will type of activity, operating relevance, existence of Company and Group companies; automatically be removed if one or more deputy partnerships and the presence of appointees at the chairmen are subsequently appointed, and they Group level. E) reviews the process for assembling quarterly and themselves are not appointed to the position. half-year reports and the annual accounts on the Once appropriate advance consulting has taken basis of reports prepared by those in charge of this The other members of the committee are designated place, and taking into account the needs of the local function; by the board of directors from its non-executive branch network of each company, the chairman is members. The secretary, who may be appointed required to indicate the names to be submitted for the F) reviews the processes for assembling accounts, from outside the committee’s membership, prepares review of the committee. including consolidated accounts, prepared by sub- the appropriate minutes for each meeting. The holding companies for the purposes of preparing the committee is presided over by the chairman of the The openness of governance processes is a basic single accounts and the consolidated accounts for board of directors. requirement for a financial institution, as witnessed UniCredito Italiano on the basis of reports prepared by recent changes in laws that have forced by those in charge of this function and meetings with The committee has investigatory, advisory and businesses to adopt self-regulating controls that representatives of sub-holding companies; consulting duties. It is requested to provide an supplement and reinforce legal restrictions. opinion on compensation-related matters in the G) assesses any observations made in audit following areas: To protect its customers and stakeholders, and in reports of the internal audit units of UniCredito and A) the identification of proposals for the accordance with current laws, the UniCredit Group sub-holding companies, which were received compensation of directors with specific positions in adopted a code of ethics that identifies the rights, through UniCredito Italiano's audit department or the company and in Group companies; duties and responsibilities of the company with from boards of auditors or investigations and/or respect to its counterparts. It adopted self-regulating reviews of third parties. B) at the instruction of the Parent Company’s controls for brokers that provide investment services. This committee may be consulted to assess managing director, and after consulting with the It adheres to the self-regulating controls of listed transactions with related parties and transactions chairmen of the subsidiary banks, the identification of companies that are aimed at controlling business in which there may be a direct or indirect conflict proposals to link a portion of the compensation of risks, conflicts of interest and openness, and it also of interest, when directed to do so by the board of managing directors and general managers of complies with the code of conduct for the banking directors. subsidiary banks to achieving targets set in advance and financial sector prepared by the ABI (Italian In addition, the audit committee reports at least by the boards of directors; Banking Association). semi-annually to the board of directors on the occasion of the approval of accounts and the half- C) at the instruction of the Parent Company’s For UniCredit the adoption of a corporate year report, regarding activities performed, the managing director, the identification of criteria and governance model represents both a necessity and a appropriateness of internal controls, and the status parameters for determining the compensation of guarantee of quality corporate information, open of the relationship with the auditing firm. the Group’s senior management and for linking all internal control systems, protection of the The chairman of the board of auditors, or another or a part of such compensation to achieving pre- shareholders’ interests and the clear assignment of internal auditor designated by the chairman of the set targets; powers and responsibilities. In this sense, the code board of auditors, participates in the work of the of conduct for internal dealing was prepared with the audit committee. D) the review of documents for the preparation and goal of monitoring specific financial transactions The managing director, accounting manager, Group audit of stock option and stock granting plans for carried out by individuals in senior positions within audit manager and other members of the Parent Group personnel. the Group. 24 CORPORATE IDENTITY Calculation and breakdown of value added

The creation of value over time for all corporate counterparts, which is based on an ongoing discussion with them, is the ultimate goal of corporate governance, and is a key component of UniCredit’s mission.

The reporting of the redistribution of value formed and distributed by expressing in From a methodological standpoint, of generated by the Group to shareholders, monetary terms the relationships between the various configurations that value employees and the community makes use the company and the socio-economic added could assume, depending on of consolidated calculation methodologies system with which it interacts, with a the degree to which income for the calculation of value added, which is particular focus on several of the main components are combined, it was defined as the accounting link between stakeholders covered in this report: decided to use global value added consolidated accounts and the social and • Shareholders (VAG), which was used in the ABI environmental report. In fact, the calculation • Employees Model for preparing Social Reports for of this measure is done by reclassifying • Government, agencies and institutions the credit industry, and which takes entries of the profit and loss account in • The Community the specific features of banks into order to show how the value added is • The Corporate Structure account.

BREAKDOWN OF TOTAL GROSS VALUE ADDED (E thousands) 2002 2001

Revenues 15.901.152 17.633.789 Consumption (8.827.056) (10.408.405) Net extraordinary items 358.537 231.329 TOTAL GROSS VALUE ADDED 7.432.633 7.456.713 Divided among: THIRD PARTIES – minority interest in consolidated profits 161.208 500.875 SHAREHOLDERS – dividends distributed to shareholders 995.116 723.811 HUMAN RESOURCES 3.174.658 3.053.556 Labour costs: - direct 2.246.909 2.151.868 - indirect 912.749 892.688 Portion of net profit for the period allocated to the reserve connected with the medium-term incentive system for Group staff 15.000 9.000 GOVERNMENT, AGENCIES AND INSTITUTIONS 1.597.158 1.766.982 Indirect and property taxes and duties 280.235 282.420 Income tax for the period 1.316.923 1.484.562 THE COMMUNITY 15.063 15.231 Donations and gifts 15.063 15.231 THE CORPORATE STRUCTURE 1.489.430 1.396.258 Writedowns of fixed assets 704.568 681.900 Reserves and undistributed profits and change in fund for general banking risks 784.862 714.358 TOTAL GROSS VALUE ADDED 7.432.633 7.456.713 SOCIAL AND ENVIRONMENTAL REPORT 2002 25

For the first time in UniCredit’s social and environmental report, the Group’s consolidated accounts were used as a basis for determining the breakdown of value added. The decision to report data for the entire Group represents and synthesises the organisational effort involved in combining the Group’s main Italian banks, which last year each presented their own social and environmental reports (Credito Italiano, CRT and Cariverona) or social reports (Cassamarca, Cassa di Risparmio di Trento e Rovereto, Cassa di Risparmio di Trieste, Rolo Banca 1473). Thus, compared to the breakdown of value added presented in the previous social and environmental report, which was only for the Parent Company, the breakdown resulting from a restatement of the Group’s consolidated position shows a net preponderance of the human resources component (42.71%), and significant amounts allocated to the Government (21.49%) for taxes and Distribution In fact, of this e10 million, e4 million duties owed for 2002 and to provisions to of total gross was set aside in the proposal for the strengthen the Group’s capital base value added 2002 distribution of profits made at the – reported under “corporate structure” – shareholders’ meeting of the Parent 13.39 (20.04%). 2.17 Company, UniCredito Italiano, at the 42.71 The minority interest (2.17%) represents time the accounts for 2002 were 20.04 % the share of profits generated by approved, while e6 million was companies falling under the Group’s scope 0.20 allocated by UniCredit Banca to the fund of consolidation, which is distributed to 21.49 established by statute at the latter bank third party shareholders of Group under the same name. Human Resources companies, while the portion allocated in Government, Agencies In 2002 uses of amounts previously 2002 to the community (over e15 million and Institutions allocated to these funds for donations or 0.20%) includes the allocation of e10 Community totalled e9.513 million, of which e6.637 Corporate Structure million in profits generated by the Group to million was donated by the Parent Minorities e the “donation fund” established within Shareholders Company and 2.876 million was donated Group companies. by, or on behalf of, the federated banks. 26 CORPORATE IDENTITY The situation in 2002: organisational structure and distribution model

In 2002 the UniCredito Italiano Group reviewed its organisational structure, which until then had been divided into three divisions – the Italian Banking Division, Wholesale Banking, Foreign Banks and New Initiatives – and reorganised it into four Divisions that operate primarily to serve a specific customer segment, thereby adopting a structure “by bank segment with nationwide coverage”.

The transformation process – of which has broadened its area of assessing the functionality of internal control the S3 project for the reorganisation of responsibility to include a clearer systems at Group level, the effectiveness and the Italian banks was the main organisation of “intangible” resources efficiency of operating processes, and monitoring component – was based on the need such as identity, image management the uniformity of operating procedures and their to place all business units that and coordination of brands for the compliance with laws, regulations and the Parent primarily service a specific customer Group; it has also strengthened its Company’s plans. segment in the same Division in order oversight of high-profile, inter- to reap the full benefits from enhancing departmental processes relating to risk Corporate identity: corporate Identity is specialist skills in various markets to and operating efficiency. responsible for formulating and disseminating the provide greater customer satisfaction. Group identity through brand coordination, The main responsibilities and functions managing public and institutional relations, As a result, four Divisions were set up: of the departments and structure of the managing internal communications in conjunction retail, corporate, private banking and Group’s divisions are described below. with Human Resources, and public asset management and New Europe. communications, developing environmental Their main objective will be to policy, preparing the Social and Environmental maximise economies of scale and Parent company planning Report, coordinating Local Committees and scope and achieve business and administration liasing with the Unidea Foundation. excellence through a greater ability to Legal and corporate affairs: legal and

propose and carry out strategic moves corporate affairs is responsible for ensuring Credits: the department is responsible for

in specific reference markets, including accurate legal and corporate compliance, strategic planning in the area of credit risk

at an international level. reviewing changes in regulations and ensuring management and control, overseeing the

uniform interpretation at Group level. This assessment of credit ratings of major groups,

Within this structure, the Parent department has the task of identifying the best planning and implementing processes and tools

Company is responsible for corporate method for implementing acquisitions for the loan approval process, loan monitoring

maximising the Group’s overall value and Group restructuring projects, continuously and recovery, and the management of major loan

through the centralised administration reviewing legal changes, preparing legal restructuring.

of the Group, the planning and opinions, drafting intra-group service contracts

strategic direction of the business and providing general legal consulting services. Administration: administration is responsible for units, the management of profit managing the Group’s acquisition processes,

centres under its responsibility, and the Group audit: group audit is responsible for optimising operating expenses, preparing reports

efficient provision of common Group assisting in the protection of corporate assets for regulators, accounting and tax compliance,

services that have not been structured and providing corporate stability through the compliance in the area of the Group’s equity

as dedicated companies. audit of the organisation’s ability to achieve its investments and overseeing operating risks. This

At the same time, the Parent Company goals effectively. The department is charged with department is in charge of the acquisition and SOCIAL AND ENVIRONMENTAL REPORT 2002 27

UNICREDITO ITALIANO SpA ORGANISATION CHART

CHAIRMAN Board of Directors

Executive Committee

Managing Director/CEO

Management Committees Human Resources

Corporate Identity Credits

Group Audit

Administration Upa Legal and Corporate Affairs

IT and Usi Planning Organisation and Finance

Private Banking Corporate New Europe Retail Division and Asset Division 1 Management Division 1 Division 2

Clarima Locat Xelion Bank Pekao

Adalya (3) UGC Pioneer Global Zagrebacka Banka

TradingLab (3) Uni Riscossioni UniCredit Private Bulbank Banking

UniCredit Banca BMC Banque Monegasque UniBanka UniCredit Suisse Banca Umbria UBM Cordusio UniCredit Romania CR Carpi Banca Agricola Commerciale San Marino UniCredit Fondi UniCredit Banca UniCredit Consulting SIM UniCredit Assicura d’impresa FRT Fiduciaria Risp. Torino SIM CreditRas Vita Rolo Pioneer SGR CreditRas Previdenza SIM UniCredit Factoring CreditRas Assicurazioni Broker Credit Commercial Union I. Faber Duerre Vita UniCredit Service Lab Rolo Pioneer Lux Quercia Funding Srl Pioneer Investment Management (Lux) Ventura Finance UniCredit Capital Italia Advisory S+R Investimenti e Gestioni SGR Vivacity UniCredit International Services Sviluppo Nord Ovest SGR

(1) Division headed by Deputy CEO. (2) Division headed by Deputy CEO effective 1 January 2003. (3) Transfer of responsibilities to the Retail Division for the two subsidiaries upon the finalisation of corporate transfers (from UBM to UCI for TradingLab, and from UniCredit Banca to UCI for Adalya). 28 CORPORATE IDENTITY

accounts area and the Group’s centralised Human resources: human resources is responsible Corporate is made up of UniCredit Banca

production company (Unicredit Produzioni for supporting the Group’s strategic and d’Impresa, UniCredit Banca Mobiliare, Locat,

Accentrate or UPA). organisational development, overseeing its Banca Mediocredito, UniCredito Gestione Crediti

management of human capital, recruiting, maintaining and Uniriscossioni. The Division also includes

IT and organisation: this department is and developing high quality human resources and UniCredit Factoring, Broker Credit, I-Faber and

responsible for coordinating the Group’s providing, at the same time, a close and consistent the other equity investments allocated to

reorganisation projects, overseeing Group management of payroll costs. This department UniCredit Banca d’Impresa. The foreign

processes with a high degree of interdepartmental ensures a cohesive organisational structure, defines branches, correspondent banking and custodian

activity, developing Parent Company processes, development and management policies for human services also report to this division.

managing and maintaining property assets and resources, provides optimal management and

managing physical security at Group level. The development of key employees and individuals with The private banking & asset management

Group's information technology company (USI) high potential, and manages national industrial Division is made up of UniCredit Private

reports to this department. relations and all matters relating to employment law. Banking, the sub-holding company Pioneer

Global Asset Management and Xelion. The

Division also includes current Group offices

abroad specialising in private banking, Fiduciaria

Cordusio and other equity investments allocated

to UniCredit Private Banking.

The New Europe Division is in charge of

promoting and managing the Retail and

Corporate banking operations in foreign

markets with the aim of maximising the Group’s

value, adjusted for risk-related costs, in order to

create the leading banking group in the New

Europe.

The Division also assists banks in the

preparation of (strategic and operating) plans; in

management controls; the implementation of

methods, processes and excellent loan

management tools together with Credits, and

Planning and finance: this department oversees Business Divisions the implementation of projects involving

asset and liability management, the management Retail is made up of UniCredit Banca, Clarima, organisational changes and the development of

of Group treasury, the Parent Company’s planning Adalya and Trading Lab. The Division also includes information systems.

and control activities as well as planning and all insurance companies in which UniCredito has a

controlling operating costs. It is also responsible for significant equity interest, and which support the

coordinating planning at the Group level, investor distribution of specific products. It also encompasses

relations, mergers and acquisitions, managing companies dedicated to integrating production and

market risks, the consolidation of overall risks and distribution of mutual funds and other equity

the related process of capital allocation. investments allocated to UniCredit Banca. SOCIAL AND ENVIRONMENTAL REPORT 2002 29

UniCredito Italiano Group

IN ITALY

UniCredit (Suisse) Bank S.A. UniCredit Banca Mobiliare S.p.A.

Cassa di Risparmio di Trieste Banca D.D. Banca Mediocredito S.p.A. Cassa di Risparmio di Carpi S.p.A.

Banca Agricola Commerciale UniCredit Banca S.p.A.

Banca dell’Umbria 1462 S.p.A. Banque Monegasque de Gestion S.A.

Branches Employees

UniCredit Banca S.p.A. 2,842 29,381 Banca dell'Umbria 1462 S.p.A. 89 766 Cassa di Risparmio di Carpi S.p.A. 40 344 Banca Mediocredito S.p.A. 1 241 UniCredit Banca Mobiliare S.p.A. 2 532 Domestic banks 2,974 31,264

Branches Employees

Banca Agricola Commerciale, Republic of San Marino 7 101 Banque Monegasque de Gestion S.A., Montecarlo 1 40 UniCredit (Suisse) Bank S.A., Lugano 1 22 Cassa di Risparmio di Trieste Banca D.D., Zagreb 1 39 Banks operating outside Italy 10 202 30 CORPORATE IDENTITY

NEW EUROPE

Bank Pekao POLAND

SLOVAKIA UniBanka

ROMANIA CROATIA BOSNIA HERZEGOVINA

BULGARIA

TURKEY *

Zagrebackav Group * Koç Finansal Hizmetler (joint venture with the Koç Group)

UniCredit Romania Bulbank

Branches Employees

Pekao Group 832 17.783 Bulbank A.D. 91 2.060 UniBanka 66 1.008 Zagrebackav Banka 180 5.374 UniCredit Romania 15 306 New Europe banks 1.184 26.531 SOCIAL AND ENVIRONMENTAL REPORT 2002 31

INTERNATIONAL NETWORK

LUXEMBOURG Brussels Frankfurt PARIS Prague Koper LONDON Budapest Moscow

NEW YORK Chicago Beijing Shangai

HONG KONG GRAND CAYMAN

Mumbai

SINGAPORE

Saõ Paulo

Buenos Aires

Branches Representative offices

Branches Employees

UniCredito Italiano S.p.A. 7 1,680 Domestic banks 2,974 31,264 Banks operating outside Italy 1,195 26,748 New Europe banks 1,184 26,531 Other foreign banks 10 202 UniCredito Italiano Bank (Ireland) PLC 1 15 Other financial and ancillary companies - 6,863 TOTAL 4,176 66,555 32 CORPORATE IDENTITY Shared values, service quality and integration with the territory

UniCredit’s medium to long-term strategy is aimed at generating sustainable value over time for all stakeholders. This means having the right organisational and corporate governance tools, investing in the quality of internal resources and in customer relations, and maximising the focus on the areas and local branch networks.

As part of the S3 project, there is a focus on satisfying customer needs The essential starting point for this strong emphasis on strengthening the and the organisation’s efficiency in process of building a stable, Group's identity in order to create delivering services, is a distinctive personalised and mutually satisfactory cohesion with respect to certain feature of the Group’s development. relationship over time is to have an shared values and a resulting distinct UniCredit is in the process of a accurate picture of the customer’s market perception. significant reorganisation, which is needs with the awareness that characterised by a strong drive to customer needs are characterised by The relevance of the Group’s improve the quality of service offered. their specific social, cultural and emphasis on values must be combined In the context of relationships this regional environment. with its strong customer focus. means differentiating and focusing Knowing the customer base, for Quality, which is defined as a high products using the segment bank UniCredit, also means having a degree of consistency between the model. thorough understanding of the needs of

Get to know and listen to the customer/stakeholder

Contribute Recruit to regional and develop growth skilled resources

Improve service and increase value added

Develop Plan support innovative structures and personalised solutions SOCIAL AND ENVIRONMENTAL REPORT 2002 33

the environment where it is located. stakeholders. resources of a large diversified This links our customer project with The investment in training courses international group available to the the project of consulting stakeholders that support the development of different local environments, each of in the various areas where we have a professional skills and capabilities – which has its own specific needs. presence, and it is also a feature of an essential condition for the our way of operating outside Italy. continuous improvement of services – This means combining the skills and is a fundamental component of performance, which UniCredit has This challenge is extremely important, UniCredit’s growth project. demonstrated that it possesses, with and requires a full appreciation of the levels of service quality that only the work of the staff that forms the key Another important and distinctive “largest local Italian bank” can interface in the management of feature, which should be utilised to the provide. relationships with customers/ full, is the ability to make the

Identity Integration

See Service quality the big picture

Act in the local Value creation environment

Differentiation Specialisation 34 CORPORATE IDENTITY

Interview with the Managing Director/CEO

UniCredit’s commitment to operate as process that our vision of corporate Building and nurturing a strong identity a “responsible” business has roots social responsibility has strengthened. has always been a priority for us. that are getting stronger and deeper This means knowing how to respond Sharing values, goals and attitudes every year. Based on experience, better to the needs of the market and the among the people in our Group proved what does the term corporate social various environments in which we essential for implementing the S3 responsibility (CSR) mean today for operate while maintaining the same level project and expanding the Group the company and its management? of professionalism. The only way to abroad. effectively accomplish this The merger of the various roots that The period of major transformation that transformation is to reinforce our identity sustain us – each with new ideas, we are undergoing provides a very and our local presence, and at the same experiences and social relations – led useful key to interpreting and time, absorb the experience and skills to a definition of a corporate identity understanding how we define corporate that our counterparts and partners are that is based on gathering and social responsibility. We are a Group that able to share with us. enhancing all their specific features. sets ambitious goals and commits to From this point of view, the greatest achieving them with growth and This may lead one to believe that CSR effort over the last year was focused on development projects, including at an is an opportunity for UniCredit to talking to employees (through travelling international level. This requires redefine its relationship with its road shows to those areas where we courageous decisions and the ability to business partners, customers and all have a presence) with the aim of implement them. Take, for example, the of society, but, more importantly, it encouraging people to find a place for S3 project, which is covered in this social also intends to do so with employees. themselves in the Group’s new mission report: we were the only ones in the In short, this is a sort of new and value profile. A strong and clear set sector to restructure to this extent, and interpretation of the “us and them” of values is the best possible guide to we are now using all our energy to relationship achieved, on the one enable us to do our job well, complete the process by the established hand, by strengthening the identity guaranteeing that the company will deadline, which will allow us to provide a and the sense of belonging to “us”, have a long and prosperous life, while better, more specialised service to and on the other hand by building an identity based on principles of social customers. And it is in the very partnerships and opportunities to responsibility can ensure that both our implementation of this transformation reach out to “them”. partners and us benefit from this. BILANCIO SOCIALE AMBIENTALE 2002 35

Is it possible to combine the value devoted to listening to stakeholders, as the bank and funded with one percent of created for the company with the were the meetings with our various the Group’s profits. Its mission is to assist values of its stakeholders? counterparts (suppliers, institutional in implementing projects, including those investors, organisations, etc.). proposed by employees, in the area of In reality, the objective is to be able to social services in developing countries, create value for the company (and not Central and Eastern Europe and in Italy. necessarily only profit or economic value) Now let’s talk about the environment. and at the same time create value for UniCredit adopted principles long ago stakeholders. This approach is aimed at sustainable growth. The only increasingly characteristic of a company’s way to share these principles was through various areas of operation, and in a strategy of assuming and strengthening particular for a bank. The evolution of the responsibility: for example, we do not concept of corporate governance is a associate with polluting companies. This good example of this. As this report is a conscious commitment to “them” (in shows, we believe that corporate this case, future generations). For this governance should be aimed at reason, we have also decided to comply regulating the various interests within the with the European EMAS regulations, company, discussing them openly and which is the height of excellence for creating value for all stakeholders: from companies wanting to demonstrate their shareholders to customers, and from The process of getting closer to CSR respect for the environment. To achieve employees to local communities. By is clear, at least from a logical this target, which was done in 2002, we demonstrating that appropriate corporate standpoint: shared values lead to a reconsidered a number of activities, appointments have been made, that strong identity, which makes it which, although indirectly, can have a these positions are filled by qualified possible to properly conduct business significant environmental impact: credit people, and that the profit margin that we activities by satisfying customers and policies, loans to companies and the generate is shared among many different remaining competitive, and at the management of mutual funds. In this social and economic entities is a way of same time, makes it possible to listen regard, it is interesting to note that by interacting with our counterparts, and respond to ethical requirements aiming to achieve better control over including at management level. This and public duty, which are becoming environmental risks, the process approach is inspired by transparency, but increasingly important. described led to an improvement in our also by the desire to share and cooperate. Is it idealistic to believe that this methodologies used to assess a party’s To achieve these objectives it is of course process can be translated into an creditworthiness. In this way, we will strive necessary to be able to identify and operating plan? to be “active citizens” of society and understand the expectations of improve our strategies. Together we will stakeholders, and the dissimilarity and It is difficult. We are trying. pursue a goal shared by many specific connotations (public, production Let me give you two specific examples stakeholders of prospering for as long as and regional) of such expectations in that retrace the steps you outlined. possible with the conviction that helping order to be able to effectively “listen” to Our non-profit foundation, Unidea, has others grow will also help us. them. The Itaca project, which is just been launched. It is coordinated by a described in this report, was entirely board of directors primarily from outside Interview by Antonio Calabrò Areas of

QUALITY OF WORK

MARKET AND TERRITORY

ENVIRONMENT, HEALTH AND SAFETY

SECURITY AND PRIVACY

LISTENING AND DIALOGUE

CORPORATE CITIZENSHIP sustainability 38 AREAS OF SUSTAINABILITY Areas of sustainability

The decision to organise the report by “topics”, i.e. specific areas of interaction with stakeholders, is aimed at providing a better representation of the “interrelationship” of the three dimensions of sustainable growth: economic, social and environmental. The initiatives undertaken by UniCredit demonstrate their commitment to achieving results in each particular dimension, ensuring that the goals pursued will benefit everyone involved.

To this end, UniCredit carefully identified its counterparts and key partners and carried out a thorough analysis of the interactions with them in order to demonstrate the interdependence of economic factors and social responsibility in values, strategic decisions and day-to-day operations.

Topics under which our various initiatives Our counterparts are categorised

Quality of work The Community Market and territory Customers Environment, health and safety Employees Security and privacy Shareholders Listening and dialogue Suppliers Corporate citizenship SOCIAL AND ENVIRONMENTAL REPORT 2002 39

Quality of work Means, within our relationships, guaranteeing our employees ever better working conditions, opportunities for personal and professional growth, and compatibility with their quality of life and leisure time

Market and territory Means encouraging sustainable economic growth through a range of products, services and business solutions offered to customers and local communities by undertaking action and initiatives in support of economic expansion in local areas

Environment, health and safety Means protecting the environment and preventing direct and indirect environmental damage, and improving health and safety conditions for our employees

Security and privacy Means being accountable for all actions taken to protect corporate assets, transparency and ensuring the legality of our business activities and the protection of individuals and their privacy

Listening and dialogue Means interacting with corporate counterparts with the aim of developing relationships that encourage discussion and mutual respect in order to identify needs and expectations vis-a-vis our actions in the social context and to encourage new ideas and proposals

Corporate citizenship Means, within our relationships, on the one hand, measures taken to support non-profit organisations, initiatives aimed at promoting greater social cohesion and supporting the arts, culture and sports; and, on the other hand, activities to promote and disseminate the culture of corporate responsibility and citizenship in the economy and the community 40 AREAS OF SUSTAINABILITY

Investing in skills for growth

Quality of work

Helping people in their professional development through ongoing training aimed at improving skills, fostering their aptitude and realising their potential in order to encourage personal growth that will lead to overall growth for the company. Investing in the professionalism of individuals “ makes it possible to meet customer needs in the best way possible, through trust and long- lasting relationships (not just “short-term” results based on customer speculation). This is how value is generated for all concerned.”

42 AREAS OF SUSTAINABILITY

The objective of launching a new phase General background the Italian branch network; of the Group’s development, based not • keeping the 296 employees from the

only on the ability to provide high- The Parent Company has 1,680 six banks, which formed the single quality products and services to meet employees (as at 31 December 2002), bank, at UniCredito Italiano; customers’ expectations, but also, and up by 25 employees over the prior year • an actual decrease of 547 most importantly, to continually (or 1.5%). employees. increase their level of satisfaction, This increase was the cumulative requires professional, skilled and result of: There was also an increase in part- motivated employees. • a decrease of 350 employees that time positions (from 2,690 to 2,944), were transferred on 1 July 2002 to which was partly due to the transfer of The process of business specialisation, UniCredit Banca following the transfer the Call Centre to UniCredit Banca which was launched in 2002, must be of the Call Centre and Retail, (this centre is predominately staffed properly supported by careful Corporate and Private Banking areas by part-time workers and people on management and the development of (which provide marketing and service work training contracts), and partly human resources. support to the Italian branch network). due to synergies linked to the S3 This means defining the professional • keeping some of the staff (296 project that made it possible to meet qualities necessary, striving to make employees) from the six banks, which part-time needs, especially those of certain that employees are excellent formed the single bank, at the Parent female staff. and have the skills needed, and Company; Taking into account the ratio of part- enhancing internal skills. Most of all, • an actual increase of 79 employees. time employees to full-time employees, this means developing a sense of the real overall reduction in personnel

belonging to the Group through In addition, 110 new jobs were created translated into 625 full-time equivalent discussion, motivation, managing the to cover the need for new professionals employees. This figure can be seen as internal working environment and in staff, coordination, planning and a “natural” result of the merger and providing appropriate mechanisms for communication structures resulting reorganisation process. Finally, it rewarding results. from the reorganisation process of the should be noted that despite the overall Group banks. drop in staff, the organisational These are the various paths that the rationalisation process resulted in the

Group has taken to implement the At UniCredit Banca (29,381 employees creation of 429 new commercial jobs, concept of “quality of work”. This in December 2002) staff levels which will strengthen the sales force process involves the growth and decreased by 493 (down by 1.7%) from and front office. development of human resources that the combined staff level in 2001 of the is strongly supported by an efficient seven banks (Credito Italiano, Rolo 65% of the Parent Company’s staff is organisation, which in 2002 achieved Banca 1473, Banca CRT, Cariverona located in the Milan office where the the fundamental objective of Banca, Caritro, Cassamarca and administrative structure and the units reassignment over 29,000 people in CRTrieste) that formed this bank. that provide support services to the Group’s seven historical banks This reduction was due to: UniCredit Banca and the other Group and transferring 6,000 of them • the transfer of 350 employees of the companies are based. without any particular employment Parent Company who perform The remaining 35% is based in the issues. marketing and service functions for foreign branch network (16.30%), on SOCIAL AND ENVIRONMENTAL REPORT 2002 43

assignments UniCredito Italiano UniCredit Banca and 26.5% at throughout the staff located in: Staff located in: UniCredit Banca) country to provide confirms the more effective inclination to hire 6 property and 10 new professionals 13 65 security 12 in line with the management % % 78 Group’s mission. 16 (12.80%), and in This fact is also provincial substantiated by locations of the the percentage of subsidiary Milan Northern Italy employees under International Network Central Italy Uniriscossioni 40 (32.4% at the Secondment within Italy Southern Italy S.p.A. (5.90%). UniRiscossioni Parent Company provincial offices and 42.5% at UniCredit Banca’s UniCredit Banca). staff is spread throughout the country with a managers and executives) at both the Net of transfers and moves between particularly significant presence in Parent Company (54%) and UniCredit Group banks/companies, there were 73 those provinces where the banks, Banca (36%), which is evidence of the new hires at the Parent Company in which became a part of the single bank, Group's focus on the professional 2002 (88% of whom had regular had the greatest presence. qualifications of its employees. contracts), and a decrease of 64 As a result, 78% of staff is in the North, Furthermore, the significant percentage employees, of whom 33 were staff 12% in central Italy, and 10% in the of employees with seniority of less than which had pension rights and South. On the other hand, UniCredit 10 years (29.5% at the Parent Company retirement incentives. Banca has no Net of transfers and presence abroad Staff by grade Staff by seniority moves among since the foreign Group banks/com- branches, which panies, there were previously 168 346 10.2 5.8 782 new hires at 29.5 26.5 reported to the 771 10,178 UniCredit Banca in no no 38.6 % 39.3 % individual banks, 2002 (45% of now report 741 18,857 21.7 28.4 whom had regular directly to the UniCredito UniCredit UniCredito UniCredit contracts), and a Parent Company. Italiano Banca Italiano Banca decrease of 1,386 employees, of under 10 years There is a whom 381 were Senior Managers 11-20 years significant Executives 21-30 years staff which had percentage of Other Staff over 30 years pension rights management and retirement staff (senior incentives. 44 AREAS OF SUSTAINABILITY

More flexible forms of employment were Hires Staff reduction 2 1 also used in the hiring process (interim 9 92 2 64 27 296 357 33 547 staff, temporary contracts and 333 38 68 no no o o temporary job training contracts) to meet 108 n n 296 125 19 350 433 350 extraordinary requirements and to 374 12 strengthen telephone banking UniCredito UniCredit UniCredito UniCredit operations. Italiano Banca Italiano Banca

Resignations Deceased Compensation and Hired on unlimited contract Other terminations career development Intragroup transfers Fixed-term contract terminations schemes Transferred on 1.7.2002 from former Early retirement federated banks (now merged) Intragroup transfers Transferred on 1.7.2002 from Parent Co. Transferred on 1.7.2002 to UniCredit Banca The Group has a merit-based Hired on unlimited contract Transferred on 1.7.2002 to Parent Co. compensation scheme in line with the Trainee Contract Full-term retirement conditions set under national collective labour contracts. In particular, the averages for 2002 for should be seen in the context of Group stock grant and the Parent Company were largely the increasing positions of responsibility stock option plan same as those for 2001 with slight and coordination/planning.

adjustments within certain categories In 2002 the medium-term incentive (up by 3.3% for senior managers, up The mechanism for additional hours plan known as the “Group Value by 2.1% for officers and up by 21% for worked has now been consolidate. Growth Programme – Groupwide remaining staff). It was introduced under the national Action Plan” came to an end. It had collective labour contract of 11 July been launched in May 2000 and was The latter was due to the sharp 1999 and supplied solely to full-time targeted at Parent Company, domestic decrease in the proportion of part-time employees. bank and Group subsidiaries’ staff. employees and the transfer of staff Throughout the year the following stock with low seniority to UniCredit Banca Use of the “hour bank” remained at 21 and options were allocated free of and the recruitment of staff, who on hours per person in the Parent charge: average were more senior. Company (the same as in 2001) and • UniCredito Italiano shares to was 29 hours per person for UniCredit approximately 34,000 Group Career development is a focal point of Banca. employees, as part of the revision of the human resource management as the company bonus, in order to witnessed by the promotions during There was an overall increase of strengthen the sense of belonging the year (5.4% at the Parent Company 5.13% in additional hours worked over and give tangible recognition for and 11.8% at UniCredit Banca). There net workable hours at the Parent success achieved; was significant growth in the senior Company (5.30% for UniCredit • UniCredito Italiano shares to management category at the Parent Banca), of which 4% was remunerated approximately 2,200 of the Group’s Company (up by 10.50%), which as overtime. best performing middle managers, in SOCIAL AND ENVIRONMENTAL REPORT 2002 45

order to stress the correlation employees who are particularly Corporate services between the value of the individual important to the Group remain with The UniCredito Italiano Group meets the and company results. the Company. various needs of its employees by • Stock options to approximately 300 The Groupwide Action Plan takes full providing several services to staff and top managers with the purpose of advantage of the tax and social security their family members. fostering the growth and improvement benefits introduced in this area under The value of these services in 2002, which of results over time, and ensuring that Italian legislation. are grouped by type, is indicated below.

CORPORATE SERVICES UniCredito Italiano UniCredit Banca

Supplemental health scheme e 925,817.61 e 9,058,447.75 Accident insurance/all-inclusive insurance for non-work related losses e 550,090.92 Pension fund e 6,743,760.43 e 62,639,838.06 Scholarships for children of staff e 45,339.81 e 985,251.99 Financial contributions for children of staff e 114,163.80 e 1,345,634.43 Financial contributions for disabled family members e 43,470.00 e 363,213 Payments linked to seniority e 1,147,529.24 e 8,673,820.01 Payments to former employees on their 75th, 80th, etc. birthdays e 536,857.04 Various payments for children of former employees e 180,185.15 Grants paid to employees in service e 96,834.99 Grants to retired personnel e 5,000

Number of loans/mortgages for the purchase of homes 157 1,279 Value of loans/mortgages for the purchase of homes e 17,650 e 109,293 Number of loans for personal use 248 2,583 Value of loans for personal use e 2,484 e 24,856

For the purposes of the Social and Environmental Report, data were restated by including in UniCredit Banca all charges related to the six banks that merged into UniCredito Italiano on 1 July 2002; for the first half of the year, these charges were included in Parent Company charges in the accounts of UniCredito Italiano.

Staff absence 12 days of absence per person UniCredit Banca due to the In 2002 there was a decline in compared to 13 in 2001. percentage of absences related to absences at the Parent Company to The number rose to 17 at maternity leave.

DAYS OF ABSENCE (FULL TIME EQUIVALENT) IN 2002 UniCredito Italiano UniCredit Banca

Illnesses, accidents and doctor visits 10,400 241,000 Maternity leave 3,200 103,700 Family and personal reasons 1,950 37,000 Union leave 1,700 55,500 Blood donation 150 2,800 Marriage leave 400 4,500 Other reasons 2,000 52,300 Total 19,800 496,800 46 AREAS OF SUSTAINABILITY

Industrial relations

Based on a long standing tradition, industrial relations are characterised by open and constructive dialogue, which is essential in the current climate of major structural and organisational change at both the industry and Group level. In light of the implementation of the S3 project, union meetings held in 2002 were particularly intense and took place behind closed doors. After periods of demanding union discussions, several significant agreements were signed, including: • the Protocol regarding the Group’s industrial relations, the management of employees involved in the S3 process and welfare and social security cover; • the “economic agreement” regarding Protection reach more quickly, on the basis of age the standardisation of various of minorities and and seniority, than men. compensation schemes and pre- equal opportunity The number of women among young existing regulations; employees (up to 30) is also significant: • year-end agreements that led to the Women represent 34% of the total work 54% at the Parent Company and 58% at specific launch of the three segment force at the Parent Company and 37.8% UniCredit Banca,; this confirms the banks. of UniCredit Banca. Group’s focus on women in order to offer The percentage of women among appropriate hiring and professional The rate of union membership among management staff (24% for the Parent growth opportunities. staff is approximately 25% at the Company and 20% for UniCredit Banca) The proportion of individuals included in Parent Company; at Group level it is confirms the growing percentage of the protected categories defined in Law substantially in line with the national women holding positions of 68 of 1999 is indicated below (as at 31 average (about 70%). responsibility, which they are able to December 2002).

PROTECTED CATEGORIES UniCredito Italiano UniCredit Banca

Disabled (Art. 1 of Law 68/99) 69 1.496 Orphans, widows and refugees (Art. 18 of Law 68/99) 28 861 TOTAL 97 2.357 SOCIAL AND ENVIRONMENTAL REPORT 2002 47

Giovanna Crivelli scholarship

As reported in the last edition of the Report, UniCredito Giovanna Crivelli’s substantial commitment to “equal Italiano announced a competitive exam for two opportunities” in her work. scholarships to commemorate Giovanna Crivelli, a young colleague who died prematurely. The purpose of the The scholarships awarded in 2002 to a woman and man scholarships is to train researchers in the area of political with degrees in economics and business, require the economics, financial market economics and economic winners to enrol in and attend a university in the European policy. Union or the United States in the first year of a specialisation course in line with their past studies for a Eighty-nine applicants, including 45 women, participated in period of at least 9 months on a renewable basis. the competition, which calls for awarding at least one of the two scholarships to a woman in order to commemorate In 2003 the second year of the competition will be approved.

UniCredit Produzioni Accentrate day care centre

This year, with the opening of the new office premises in Cologno Monzese, an opportunity arose to carry out an initiative that confirms UPA’s focus on its employees, i.e. the allocation of a space in the building for a day care centre.

The high proportion of female staff in the company on the one hand, and the recent hiring of young employees, on the other hand, led to this action, with the objective of supporting the complex mix of professional commitments and family needs.

The day care centre has a capacity of up to 26 children aged 1 to 3 years; part of the available space is set aside for residents of Cologno Monzese.

This initiative, which was approved by the city council, represented an innovation in the work environment and also made it possible to establish an important link with the local community. 48 AREAS OF SUSTAINABILITY

Programmes to • the joint section is aimed at sessions, professional experience develop and enhance developing professional and and on-the-job training. skills and knowledge managerial skills. To this end, a dedicated programme was developed After the joint session of the first series of Key Resources project in collaboration with the School of the project, plans for individual development were created

This project was launched in 2000 with and implemented for the identification of the Group’s key course participants positions and human resources. throughout 2002. These Specific management tools were activities primarily involved developed in order to generate loyalty training in both “technical” among highly valued employees. and managerial areas The objective of the project is to (e.g. finance, strategy, support the Group’s strategic and organisation, leadership, organisational development by negotiation and employee safeguarding highly critical positions. management). As a result of the project, in 2002 the The second series of the Group’s best resources were identified project, which was and the “key positions” in the future launched in September three new specialised banks were 2001, brought to a close secured. the joint training course. Business Management at Bocconi The subsequent phase of indicative Young Talent Project University, based on the content of assessment provided each participant an MBA programme, In 2002 the training courses for the two enabling participants series of the project proceeded. Since to acquire a complete its inception in 2000, this project has strategic perspective involved about 180 young people with of a business and new great potential throughout the Group’s ways of approaching companies. The aim of the project is to problems. quickly identify promising young • individual activities are employees and encourage their planned specifically accelerated professional growth in a for each person based managerial environment. on an indicative This is a significant investment for the assessment, past individuals involved and for the future experience and of the company. personal preferences. The project provides participants with These are tailor-made a number of joint and individual courses and can training activities: include training SOCIAL AND ENVIRONMENTAL REPORT 2002 49

with a greater awareness of his capabilities and was used as the foundation for building individual development programmes. Based on past experience and the Group’s new organisational model, the third series of the project has been planned.

Young Talents Programme

A similar personal growth course, which was created specifically for the Group’s banks in the New Europe and Training special measures were taken in order to called the Young Talents project, was properly train all employees involved in launched in October 2001 with the Training plays an important role within the project with respect to the involvement of 50 young people with the Group as a way of furthering the requirements demanded by new New Europe New high potential. In 2002 the joint training continuous improvement of technical, professional roles and the various course, indicative assessments and professional and managerial skills. procedures introduced. definition of individual development In connection with the implementation of In addition, a remote platform was programmes were brought to a the S3 project, during the first half of the developed, called UCILearning, which conclusion. year it was necessary to standardise the was established in 2001 to meet the The Young Talents project was technical and specialist knowledge base need to provide rapid and flexible designed specifically, and the training of employees working in the Group’s updating of the skills of corporate staff. course is adapted to the specific seven banks. On the basis of a Several new functions were needs of the various countries widespread effort to map and analyse implemented such as the use of a toll- concerned. The dedicated training training requirements, a number of free number to allow all colleagues to sessions enabled participants to enhance their business knowledge and to deal with key issues for the New Europe market. During the joint training course, participants had valuable opportunities to meet managers and to obtain in-depth knowledge of the Group’s strategies. On the basis of the pilot programme experience and the expansion of the scope of the New Europe banks, the planning for the second series of the project has begun. 50 AREAS OF SUSTAINABILITY

connect even after work hours and the English language. With regard to the foreign banks, outside the workplace, thereby making it Thus, approximately 6,000 new, significant investments in training were possible to fully implement the current multi-year licenses were activated at made to provide the necessary support national collective labour contract. three levels (beginner, intermediate to market new products in the areas of At the end of December there were over and advanced) and also available on approaches and processes as well as 21,000 subscriptions to the courses CD-ROM in order to provide staff sales techniques. available on the platform for a total of with effective support to improve Europe New In the area of managerial training, the about 116,000 training hours. their knowledge of the language major programme called “Business including in relation to their specific Academy of Bank Pekao SA” continued In the area of language training, in professional needs. at Bank Pekao. This programme was line with the Group’s international created in collaboration with an outside expansion, there is an increased Training provided to all Group staff consulting company and primarily need for an adequate command of totalled 189,728 days. targets the bank’s managers.

Study and Research Network

This is the new specialised organisational unit established within UniCredit to carry out studies and research aimed at analysing variables in the credit sector and the financial sector in general, as well as individual phenomena and events, with a special emphasis on assessing their implications for the Group overall.

The purpose of this is to build an information platform to assist all Group units, and thus make it possible to expand and subsequently distribute a common knowledge base, which until recently was only available to direct points of reference.

Internal communications

UCI for People: a Web portal for individuals in the Group

To motivate its employees to achieve excellent results and to facilitate the creation of a better working environment, a dedicated web portal has been created. SOCIAL AND ENVIRONMENTAL REPORT 2002 51

This tool, which was initiated in July 2002, is available – on the Intranet, Internet and through wireless connections to all individuals that belong – to the Group’s Italian companies.

Through the portal all users can: • directly manage various aspects of their professional life, such as administrative (inquiries and instructions regarding vacation days, days present/absent, travel expenses, expense accounts and overtime) or developmental (online training, performance assessment, stock option plan conditions); UniNews sections dedicated to traditional press • access the main in-house computer releases, in depth coverage of news of tools in the employee’s professional UniNews, the information newsletter particular interest, investigations, community; dedicated to covering activities at previews of new products and • look up general information on: labour UniCredit, continues to be successful services, analysis and assessment of contracts, rules of conduct, benefits by promoting the exchange of the performance of stocks of selected available to employees, internal information internally and externally on companies, comments on economic regulations, operating procedures in the Internet. and market performance and case of emergencies; The newsletter, which is distributed information on important events • access internal communications tools weekly online, targets external affecting Group activities. such as “UniNews”, “Strettamente journalists, opinion makers, press Personale”, and “Qui UniCredit”, as offices of large companies, institutions, To support the implementation of the well as corporate and professional financial analysts, and anyone who S3 project, specific measures were publications; would like information on the Group; this also taken in 2002 to evaluate the • participate in theme-based forums by is in keeping with the aim of providing reactions and morale of staff through expressing opinions and offering information in a simple and open an in-depth survey in the seven suggestions; manner. organisational units involved; in • use all other general-purpose tools addition, three road shows presented (internal phone directory, information All UniCredit staff have access to the by top managers took place in order to on initiatives in corporate recreation newsletter through a direct link on the get employees involved and inform circulars, information and operating portal UCI for People, while people them of the various steps in the conditions of business offers made to outside the company need to access the reorganisation process (see also the employees by Group companies, links corporate website (www.unicredit.it). section “Listening and dialogue” for a to other sites, etc.). The newsletter is made up of several more detailed description). 52 AREAS OF SUSTAINABILITY

Reporting to the business community and local entities

Market and territory

As evidence of our full acceptance of corporate responsibility, we are prepared to answer to our counterparts and partners for our actions and their impact. Our commitment is to steer our customers and partners towards conscious decisions, making them aware of all risk elements that we know of and “ can reasonably predict. ”

54 AREAS OF SUSTAINABILITY

The goal of the Group’s reorganisation For this reason, Local process is to improve service quality and Committees will be set up increase customer satisfaction while at an inter-provincial level. remaining a key player in the regional Their primary objective is entities that were historically operated by to contribute to carrying the Group’s former federated banks out the S3 project by (Cariverona Banca, Cassamarca, Banca supporting the process of CRT, CRTrieste, Caritro, Credito Italiano, implementing the new Rolo Banca 1473). segment banks (retail, corporate and private This means committing to finding the banking), which commenced key figures from the business world, best balance between business operations on 1 January 2003 in the trade associations and public, non- profitability and the relationship with areas where the seven banks operated. profit and cultural organisations. local areas that has always been a This is an important and delicate Local Committees will carry out the distinctive feature of the Group banks’ crossroads as the disappearance of following functions: “way of banking”. these banks with their strong local • listen to and monitor regional presence makes listening to and communities to gather information on Local Committees understanding the needs and the changes resulting from the expectations of local entities a priority transformation and periodically Attributing the utmost importance to local for UniCredit. The stated objective is to observer significant socio-economic development factors, the trust that maintain vital contact with each local phenomena; at the same time, they businesses and households place in area, the history and values that each will act as the driving force of the banks and the knowledge of the area of the former federated banks UniCredit Group’s “local presence”; and its various entities can only be seen represented, and to incorporate these • analyse new opportunities in the as the challenge of being competitive in in the new Group identity so that all the area that “spring up” from local the international arena. And to a certain different roots and experiences can development; extent, it is also a condition of being contribute productively to the • act as a special intermediary of the competitive. implementation of the S3 project. Group to move development in the The Local Committees will area towards establishing relationships be made up of a variable with operators and entities of other number of members regional systems and countries. divided between “internal” members, be selected from In summary, the role of the Local high profile managers at Committees will be that of a link each of the three future between the Group’s new segment segment banks in the banks and the economic, institutional provinces where the and social system; they will also serve Committees are located, as an important means of and “outside” members, communication and exchange between who will be selected among local entities and UniCredit. SOCIAL AND ENVIRONMENTAL REPORT 2002 55

Local presence

Mission Objectives Manage and develop the value of the Group’s “local presence” • To reduce the risk of a weakening relationship with the area through the creation and management of an organic system of in which the former federated banks operated due to the institutional, socio-economic and cultural relationships at a implementation of the S3 project. local level. • Help the operating structures of the future retail, private and Further reinforce the Group’s role as a positive and corporate banks to understand the economic and social responsible member of the local community, i.e. an active dynamics and to maintain an ongoing discussion with other entity in the production of goods and services and the creation entities of the local community. of “networks” for local development. • Create networks to support and guide local development.

Itaca Project banks and on the presence of the on issues of social responsibility and UniCredit Group in the area) to a sustainable growth as goals that are Last year the Itaca project (Regional systematic framework for representing compatible with achieving better Initiative to Guide Local Entities, the social and economic characteristics economic results which will benefit the conceived by the Aaster consortium in of each local area. entire area and its development. collaboration with In Censis) was launched to help the Group’s Regional forums were organised, during In 2003 the project will be carried management redefine the Group’s which the results of the research were forward in line with its original strategy for establishing and presented to and discussed with the assumptions, and at the same time reorganising its local presence. public, and to get a sense of how the provide credible answers to local changes, which are affecting local problems by: Operationally the project takes the companies and economies in the areas, - defining criteria for managing shape of research conducted into the are viewed locally. relationships with local entities; local UniCredit structures and the - establishing procedures to coordinate regional areas that are representative of In this sense, Itaca turned out to be a between centralised and local particular socio-economic changes and research and action project with a “relationship” functions and operating is carried out by means of interviews wealth of implications for strengthening relationships of the three segment and statistical computations. UniCredit’s ties with its stakeholders at banks, which became operational in the local level. In order to act as their 2003, in order to maximise support for The purpose of this programme is to link intermediary it is necessary to establish local businesses; qualitative information based on the a local presence that inevitably must - giving local structures the perception of internal managers and take a different shape than it had in the responsibility to manage local local entities (on the problems and past. This is achieved, in particular, by relationships based on a specific outlook for regional development, the strengthening and expanding organisational model. relationship between local entities and discussions with individual communities 56 AREAS OF SUSTAINABILITY

Summary of Itaca Project Areas identified: • social and cultural entities: operators in the service sector, volunteer workers and non-profit organisations in general, • Northwest (Turin, Alessandria, Cuneo and Valle d’Aosta); and cultural entities and opinion leaders. • Northeast (Verona, Vicenza, Treviso, Padua, Trento and Trieste); • Modena-Bologna-Forlì-Rimini corridor; Regional forums held • Milan metropolitan area. • 9 May 2002, VERONA, Local entities involved • 14 May 2002, TURIN, • 28 May 2002, BOLOGNA, One hundred local counterparts were interviewed for each • 12 June 2002, TRIESTE, area surveyed: • 12 June 2002, TREVISO, • 13 June 2002, TRENTO, • 18 June 2002, MILAN, • institutional entities: public officials and members of • 29 November 2002, PEDEMONTANA LOMBARDA. ecclesiastical communities;

• business entities: owners and managers of the most significant businesses in the area, especially leading businesses and small and medium-sized consortia;

• corporate entities: managers of industrial delegations, artisans, small businesses and commerce;

• self-governed organisations: managers of agencies that administer the regional infrastructure, chambers of commerce, trade fairs, universities and other entities that provide public services to support local economies;

UniCredito Italiano reconfirmed on DJSGI and FTSE The initiatives taken by UniCredit in the area of sustainable These families of indices will influence the investment growth enabled it to be selected again in 2002 for the Dow decisions of analysts and managers who increasingly select Jones Sustainability Index, a worldwide benchmark promoted companies who take social responsibility seriously in the belief by the American Dow Jones and the Swiss company SAM that this commitment is an important indicator of the ability to (Sustainability Asset Management), which measures the level improve their competitive positions. of social responsibility of a company, and by the FTSE4Good, This recognition rewards decisions made in the area of the European index that accepts only “environmentally and sustainable growth by UniCredit: environmental impact socially correct” businesses, which was launched by the management, business services, and support of nature Financial Times and the London Stock Exchange. protection projects. SOCIAL AND ENVIRONMENTAL REPORT 2002 57

Services and tools Genius Free More specially, in the Free Social section it is possible to follow an educational In full compliance with its market growth Genius Free is a current account course on the principles and rules of targets, the Group is engaged in the search package for young people under 30 ethical and responsible financing, for a new approach for offering products and who want to add Internet banking to a analyse social issues through in-depth services to its customers, who increasingly traditional teller service. coverage, investigations and news and place excellent economic performance In addition to offering Internet access two social campaigns called “To alongside a proven enhancement of the banking services and entertainment, do something special, just click”, and local area and social and environmental the website (www.geniusfree.com) “Young & Free”. aspects in the various target markets where provides sections dedicated to it operates: households, businesses and employment searches, universities, large investors. the economy and social issues.

To do something special, just click There are over 41,000 ways to support the non-profit projects involved: Genius Free adopted all of them and supports them of the programme called “To do something special, just click.” in proportion to web surfers’ choices for a total of e16,000. This is a major success that rewards fund-raising and With this programme, Genius Free continues to remain sensitivity to social issues. close to the world of social issues. It is the ideal follow-up to During the period from 25 October to 20 December 2002, it the campaign entitled “Your account has big plans for the was possible to click on the site to support one of the fund- world” in which account holders supported other non-profit raising projects proposed by the non-profit organisations projects.

Young & Free Imprendo brands will guarantee that the materials of the package are made only of “Young & Free” is an initiative that was Imprendo (www.imprendo.it) is an recycled paper. established by UniCredit Banca in account package created specifically The benefits associated with the collaboration with the municipality of for small businesses. It provides account also include special offers for Collegno to promote initiatives for banking and other benefits for the those interested in health and safety young people that promote active entrepreneur, his family members and issues, from medical services to a free citizenship. employees. check-up of corporate risks by a work It targets people between 18 and 28 The features of Imprendo demonstrate safety consultant. years who have a project they want to a firmly rooted adherence to the carry out. The commitment is sustainability policy that the Group Formula A recognised in a tangible manner through wishes to follow. In fact, in 2002 the economic compensation, training credits product took on an environmentally Formula A, which was created in 2001, is (including university) or through an friendly appearance: starting 1 July, a a package of financial services apprenticeship or on-the-job training. number of environmentally friendly dedicated to small and medium-sized 58 AREAS OF SUSTAINABILITY

businesses that want to introduce an that has a presence in more than 20 the specific benchmark for socially environmental management programme countries. responsible investments. or be compatible with environmental Pioneer’s products include a stock fund requirements. called “Global Environmental & Ethical” UniCredit ServiceLab The product consists of a subsidised with an international focus that selects financing programme to cover expenses companies that operate according to UniCredit ServiceLab (www.servicelab.it) for the EMAS registration process or for principles of socially and environmentally is the vehicle that makes a new range of ISO 14001 certification, in addition to sustainable growth. non-financial services available to consulting services and insurance The selection criteria for the companies customers (small and medium-sized coverage for environmental risks. are established by an Ethics and businesses in all sectors), the purpose of Environmental Committee; it is made up which is improving corporate processes in Vivacity of influential independent addition to traditional banking products. representatives from various The type of services offered covers the The Group’s city-based portal has grown. professional areas and puts together requirements of several functional Vivacity (www.vivacity.it) has expanded its binding guidelines for the operator’s business areas, from human resource mission: it now wishes to become the key activities. These criteria cover two types management services (recruitment and local web portal for Group customers, and of sectors: those to be excluded (spirits, selection; interim staff, training and a simple and effective tool for the firearms, pornography, tobacco and administration) to facility management management of daily needs related to gambling) and those to be included (all services (designing, managing, providing banking, the city, day-to-day life, and, of non-excluded sectors). For a sector to and controlling services related to course, the Internet. be included in the investment pool buildings, people and workspace), and Recently there has been a special certain measures identified by the from the management of energy expenses emphasis on improving the portal: in Committee need to be met. One of the to the management of technological September, Vplus, an online reservation first results achieved by the Committee infrastructures (operating lease of and payment service, was inaugurated; in 2002 was the study of the paper hardware, connectivity). the content was enhanced with new industry and its subsequent acceptance regular features and sections as well as a in the investment pool. Active services include the supply of more detailed coverage of existing In 2002 the fund was down by 28.77% due utilities (electricity and gas) and the sections, which continue to be focused on to declining stock markets, but this drop renovation and operation of equipment city-related issues. was much lower than that reported by that makes it possible to reduce energy major indices, including the FTSE4Good, consumption (energy savings). A consulting and Pioneer Investments assistance service will Global Environmental soon be launched & Ethical Fund covering the environment, hygiene, Pioneer Investments (www.pioneerinvest- safety in the workplace, ments.it), the brand of the Group’s water drainage, asset management companies, is the atmospheric emissions only global operator of Italian origin and certifications. SOCIAL AND ENVIRONMENTAL REPORT 2002 59

need to take preventative measures. effective 1 July 2002 the Call Centre This includes an assessment of the was transferred to UniCredit Banca. The bank adopted a process for risk levels of the operations and In its new corporate location, the Call assessing the risk of providing lines production processes of the applicant Centre has continued to represent a of credit that also incorporate business. Formal documentation key resource for other Group environmental aspects. It was issued by the appropriate authorities companies that need telephone formalised in a manual used in all is required to certify the limited services, thereby providing improved credit processes. At present it is environmental impact of certain economies of scale and scope. New Europe New estimated that only 5% of total activities and their compliance with all exposure has a higher-than-average health and environmental legal Based on growing customer environmental risk. requirements. satisfaction, as evidenced by an Credit policy is focused on limiting In addition, all loan agreements, increase in 2002 of 10.5% in financial exposure to those activities without exception, contain a customers that subscribe to the that are directly or indirectly related to representation made by the loan telephone banking service, the the production of alcoholic applicant stating there are no development of automated telephone beverages, tobacco, weapons or obligations connected with the services was launched. These ammunition. application of current laws to services are based on new voice In addition, Bank Pekao has hazardous waste that has not been recognition technologies that make it structured financial products to assist properly treated and stored as possible to provide much more companies that focus on required by law. complex and detailed information. environmental protection, and therefore have adopted policies to During the year, these systems upgrade production facilities enabling handled 64.6% of total incoming them to use recycled products, Customer relations telephone calls (compared to 56.7% in reduce noise pollution, obtain energy 2001), and in November two new, high- savings and replace coal with gas. Call Centre quality services commenced operation to provide the prices for all mutual As a result of the reorganisation funds managed by Pioneer programme linked to the S3 project, Investments and UniCredit Fondi. The bank has a continued commitment not to provide loans to customers or for activities that violate CALL CENTRE 2001 2002 environmental protection principles, or loans to companies that produce Total employees 182 156 or sell weapons. Telephone calls handled 3,450,000 3,812,000 With regard to credit risk assessment, Calls received 2,100,000 2,152,000 specific risk indices have been Calls made 1,350,000 1,660,000 established that incorporate in the Customers enrolled in the assessment process any actual or telephone banking service 376,326 415,700 potential pollution problems and the Average response time 1.5 seconds 60 AREAS OF SUSTAINABILITY

Customer satisfaction offered to Imprendo subscribers, a new phase was launched through two Call programme was launched called Centres located in Milan and Palermo. In the current highly evolved market, “Progetto Cliente” [Customer Project] The research, during which great care and in light of the specific aimed at increasing the intrinsic value of was taken to ensure that the interview reorganisation process that the Group the retail business by increasing would generate a positive customer is undergoing, it is particularly customer satisfaction and the motivation experience, is unique in terms of its sample size: 90,000 UniCredit customers and 30,000 customers of other banks will be interviewed. The research process has already covered 50,000 individuals with an average of about 2,300 usable interviews per day.

A further goal of the Customer Project is to define a three-year programme for the structural improvement of quality in order to support UniCredit Banca’s strategic repositioning as the “quality brand for providing financial services to households in Italy”.

important from a strategic standpoint to and professionalism of employees. Complaints clearly determine the level of satisfaction of current and potential One of the project’s main goals is to In 2002 the impact of the Group’s customers by determining their needs define a system for the strategic and reorganisation process was felt with a and desires. operational measurement of quality total of 9,510 customer complaints Customer satisfaction represents one that can be used to guide decisions and concerning mainly current accounts of the bank’s guiding principles. corporate activities at the headquarters and investments. In order to create the foundation for a and front line by: quality improvement process that has a • determining current customer This figure also includes those combined impact over the short and satisfaction levels with respect to the complaints covering matters that must medium term, the Group confirmed most significant factors (drivers); be recorded in the “complaint book” programmes aimed at enhancing • conducting a joint assessment of created in accordance with legal customer satisfaction in an analytical quality drivers and related operating requirements and regulations and systematic manner in line with the parameters; governing securities brokerage previous period (survey on customers’ • carrying out a systematic review of activities (commonly known as reasons for leaving the bank, the gap between the level of service “CONSOB complaints”). ABI/Eurisko Survey). expected and the level as perceived In 2003 complaint offices in the three In addition to providing customer care by customers. segment banks will become and monitoring the level of service In this context, an extensive research operational. However, for those SOCIAL AND ENVIRONMENTAL REPORT 2002 61

complaints addressed by customers there was an interesting development in directly to the Parent Company or its financial communications over the senior representatives, the Chairman Internet: this year, under the Investor

Contents Market Analysis p. 2 Financials News p. 6 and Managing Director/CEO will Relations section of the UniCredito Focus: Business Plans p. 11 personally intervene to stress the Italiano website, market consensus data importance of listening, mediating and were included for the profit and loss focusing on the customer. account. In addition, all presentations made by The idea is that even a critical situation, top management were published; those if properly addressed, can serve as an on operating results were broadcast live, opportunity to contact and discuss while video recordings of events are matters with a customer and to available on the website. enhance the service provided. The greater use of the Internet to Network) Annual Conference, which communicate is, on the one hand, a brought international experts on this response to the need to provide topic to Milan last July. In order to Investor relations information on the Group quickly and provide information on our corporate simultaneously to all stakeholders; on governance to all stakeholders, the In 2002 there was a further the other hand, it is a commitment to creation of a dedicated area on our strengthening of the relationship reduce consumption – in this case, website was planned, which will be between Investor Relations and consumption of paper – to protect the developed in early 2003. institutional investors, who are essential environment. partners for the growth of the Group's In 2002 issues related to corporate operations and significant counterparts In 2002 the Investor Relations area was social responsibility became an for promoting corporate social particularly active in corporate increasingly important aspect of Investor responsibility. governance. Aware of the importance Relations; it also participated in a study In addition to the usual communications that this issue is gaining in the economic conducted by CSR Europe on the channels used (presentations, community, Investor Relations promoted relevance of sustainable growth topics Investor’s Day, conferences, individual the sponsorship of the 8th ICGN from the standpoint of investor relations meetings and road shows), in 2002 (International Corporate Governance officers.

Presentations to the financial community 2002

7 institutional presentations, including 6 on Group and Division results and 1 on New Europe 1 Investor Day focused on the Group’s banks in New Europe 18 Industry conferences 17 road shows including 12 in Europe, 3 in the United States, 1 in Canada and 1 in Japan 350 one-on-one meetings with investors and analysts, 18% of which were held at the headquarters of UniCredito Italiano, and 82% abroad 62 AREAS OF SUSTAINABILITY

Shareholder return Ordinary share price: 1994-2002

7 The proposal for distribution of profits for Max. 6 2002 calls for a dividend of e0.158 per Min. 5 Ave. common share and e0.173 per savings 4 Close share representing an increase of 3 e0.017 (12.06%) and e0.017 (10.90%) 2 respectively over the 2001 dividend. 1 After its conversion to euros and 0 following capital increases during the 1994 1995 1996 1997 1998 1999 2000 2001 2002 period, the bank’s capital stock totalled e3,148,070,110.00 made up of 6,296,140,220 shares of e0.50 each, • there were approximately 187,150 remaining 38%; including 6,274,433,668 common shares shareholders; • institutional investors held over 55% and 21,706,552 savings shares. • resident shareholders held of ordinary capital stock. As at 31 December 2002 the composition approximately 62% of the capital As at the same date, the main of the shareholder base was as follows: and foreign shareholders the shareholders were as follows:

MAIN SHAREHOLDERS AS AT 31.12.2002 % owned 1

Fondazione C.R. Verona, Vicenza, Belluno e Ancona 13.239% Fondazione Cassa di Risparmio di Torino 11.235% Carimonte Holding S.p.A. 7.100% Allianz Group 4.928% Fondazione Cassamarca C.R. della Marca Trevigiana 2.154%

1. Of ordinary capital; the bylaws set a limitation on voting rights at 5% of capital. SOCIAL AND ENVIRONMENTAL REPORT 2002 63

The policy of transparent transactions was continued by Bank Pekao in accordance with related Polish financial market standards. In 2002 this bank attempted to build its relationship with investors: in addition to the traditional meetings held on the occasion of quarterly reports, other events were organised, including the Capital Market Day. New Europe New

The bank also announced its intention to adopt corporate governance standards supported by the Warsaw Stock Exchange in order to increase market credibility, and stressing that these standards should be the benchmark for all listed companies.

This decision is in keeping with the bank’s policy of building its credibility in order to attract new investors and increase its market capitalisation.

In appreciation of these initiatives, Investor Relations Magazine gave Bank Pekao awards such as best Corporate Governance Company in Central Eastern Europe, best Investor Relations Company in Poland and best Investment Community Meetings. 64 AREAS OF SUSTAINABILITY

Encouraging innovation and striving for ecological efficiency

Environment, health and safety

Don’t fall into a rut or be limited to “the known”, take the opportunities offered by change to identify new ideas and solutions and provide fast, dynamic responses. Be curious, open and “ ready to embrace new ideas. ”

66 AREAS OF SUSTAINABILITY

Protecting nature, an healthy working for years by UniCredito Italiano, should common foundation for planning environment and the health and safety be extended throughout the Group, measures to improve, consolidate of its employees have been a priority starting with the future retail bank, which and compare environmental data. and serious commitment for the Group has the greatest regional presence. This was not possible in 2002 since for some time. This is in full compliance data was collected on the basis of with standards set internally under In 2003 an important aim will be the different procedures in effect at the social, environmental and safety definition of a common procedure former federated banks. policies. for gathering and analysing data in the areas of environment, health The results of the management of direct The Parent Company follows and and safety for other Group and indirect aspects for 2002 are carries out these standards through the companies; this will provide a described below. application of the environmental and safety management system; in 2002 it was awarded the ISO 14001 EMAS (Eco Management and Audit environmental certification and registration pursuant to EMAS Scheme) Regulation EC 761/01 Regulation No. 761/2001, which is the most important recognition in the This regulation is one of the European Union for environmental voluntary instruments implemented management. by the European Union to carry out the Fifth Action Plan for the This significant result is described in the environment. Environmental Declaration (available on This programme encompasses the attached CD-ROM, on the website statements made in 1992 during the www.unicredit.it and as paper copy), in Rio de Janeiro Conference on the which all environmental aspects Environment and Development. connected with the Group’s activities are reported. For companies to comply with EMAS, there are certain things they must do. The Environmental Declaration is the Some of these are considered a first step towards improving the priority for implementing the I-000124 management of aspects related to the Scheme’s objectives: environment and prevention of • introducing and putting into place pollution; this will require a systematic, environmental policies and and periodic audits of the efficiency ongoing and effective process and programmes through the design and of environmental management efficient decision-making, fact-finding, implementation of environmental policies, programmes and systems; planning and monitoring. management systems that meet • providing information to the public ISO 14001 standards; regarding the company’s efficiency For these reasons, the management • completing systematic, objective in environmental protection. system approach, which has been used SOCIAL AND ENVIRONMENTAL REPORT 2002 67

Direct Environmental Results related to objectives Aspects announced in the Social and Environmental Report for 2001 The most significant direct aspects connected with banking operations are OBJECTIVE RESULT energy and paper consumption. Energy consumption 51% reduction in energy consumption The first aspect was dealt with by using Annual KWh measure/square meter dropped from equipment with low consumption levels 245 to 230 (down by 6.1%) and energy saving features in order to Elimination of Freon 12 Project approval, competitive bidding pending for reduce consumption, and by obtaining awarding contract supplies from renewable energy sources Purchase of recycled paper 100% Completion of supplier list All suppliers that participated in competitive bidding on the open market. in 2002 are qualified based on environmental and Based on current applicable regulations, safety criteria in 2002, 205 users were supplied through Idroeneregia (consortium for the consumption of about 75.5 million KWh Of the Parent Company’s total self-production of electric power from divided among the various Group consumption, 33% comes from renewable sources) for an overall companies. renewable sources.

UniCredito Italiano: Environmental statistics Electricity consumed Heating oil consumed KWh per year/sqm litres per year/sqm 300 12 11.20 262 10.32 250 253 245 10 10.13 230 200 8 7.22 374 374 150 6

100 4

50 2

0 0 1999 2000 2001 2002 1999 2000 2001 2002

Natural gas consumed Water consumed cum per year/sqm cum per year/employee 8 60 59.4 55.8 55.1 7 7.1 6.5 6.4 50 6 40 5 5.1 374 374 4 30 3 20 2 10 1 0 0 1999 2000 2001 2002 2000 2001 2002 68 AREAS OF SUSTAINABILITY

Waste produced Environmental 200 Kg solid refuse/employee training 180 160 Kg packaging/employee 140 Kg glass and metal Using the UCILearning platform, a self- 120 cans/employee study training course on environmental 100 Kg plastic/employee and safety issues in the workplace was 80 Kg toner/employee 60 Kg paper/employee offered. The purpose of the course was 40 to provide all staff with useful information 20 0 to understand the direct and indirect 20002001 2002 environmental impact from banking operations and the reasons why UniCredit chose to adopt a dedicated management system.

Training To disseminate and improve skills on

1,200 environmental issues, an intensive Number of hours training programme specifically geared 1,000 1,009 Number of trainees towards those areas directly involved in 800 374 the Management System. This training 600 623 was provided internally and externally at 400 specialised centres. 239 200 43 0 In addition, two internal environmental Training courses Self-learning auditors were trained who fall under the area that prepares the Social and Environmental Report. They took a In 2003, UniCredit will also expand this incentives for consuming paper CEPAS (Certification of Professionalism method of supply to new users: the produced with recycled materials, and Training) certified course and will supply of about 20 million more KWh has thereby adding real value to the waste conduct internal audits on the already been negotiated with the disposal procedures used at the Group’s effectiveness and efficiency of the Consortium. This will be used to supply various sites and offices. The Parent management system. UniCredit Banca locations with unit Company now uses 100% recycled consumption of between 50,000 and paper. Indirect 100,000 KWh per year. environmental aspects In 2003 sorting and waste disposal With regard to paper consumption, it was procedures will be standardised for all The commitment to protect the decided to introduce recycled paper for Group banks in accordance with current environment goes beyond the all corporate needs with the dual regulations, and based on the management of the direct impact of objective of reducing the consumption of application of the best past practices of activities on the ecosystem. The non-recycled white paper and providing the federated banks. concrete and specific contribution that a SOCIAL AND ENVIRONMENTAL REPORT 2002 69

bank can and wants to offer for to introduce the environmental variable aimed at favouring economic activities sustainable growth can translate into in their customer assessment process; that provide reliable assurances of their processes to promote and share values • the use of qualitative analysis commitment in the environmental area, and environmentally correct conduct by questionnaires for corporate and large and not just protecting themselves from the bank’s counterparts and partners. corporate customers that provide the the impact that the risk of pollution can following variables: have on companies financed using risk Financial products and - impact of environmental standards and hedging instruments. credit policies regulations on the competitiveness of The benchmark is the “environmental business and the market; risk management manual” prepared by The Group is seriously committed to - the environmental factor as a specific the EBRD (European Bank for creating and promoting financial business risk; Reconstruction and Development). By products and services that provide ad - the existence of any legal or tax analysing and classifying various hoc solutions and that encourage its disputes. production activities, it developed customers to promote environmentally guidelines to support the activity of responsible policies and conduct. defining environmental risk in lending These include the Global processes. Environmental & Ethical Fund (mutual fund created by Pioneer Investments), To enhance its knowledge and discuss the Formula A financial package and these issues with entities in the environmental services offered by financial world that have already gone UniCredit Service Lab, which are down this path, in 2002 UniCredit described in greater detail in the area participated in a study promoted by dedicated to the market. ISIS Asset Management that assessed On the other hand, the Green Bond, the potential impact of environmental whose purpose was to provide • monitoring the “interest-bearing asset” risk assessment practices on the subsidised financing to small and loan portfolio of the Group’s Italian bank’s profitability and the creation of medium-sized businesses that want to banks in sectors with high value for shareholders. obtain environmental certification, did environmental risk by establishing an The research, which involved ten of the not enjoy sufficient popularity to justify indicator for the percentage of the largest European banks and whose its launch, and thus was not developed “performing asset” portfolio. results were recently published, was further in 2002. In 2002 the commitment to a greater conducted in collaboration with the focus on environmental issues in the University of Strathclyde (Glasgow, A second important area that UniCredito area of assessing creditworthiness was UK). During 18 months of meetings and Italiano works on is the implementation strengthened. in-depth studies, the methods used in of credit policies linked to an increasing A proposal is being studied to launch a credit assessment by leading banks to consideration of the environmental procedure for the proper assessment of manage potential risk associated with variable as an assessment element. counterparts with respect to environmental factors, were analysed. Measures currently being taken include: environmental risk, emphasising • the issuance of credit policy guidelines excellence in the area of ecology. The aims concentrated on were the for all Italian and foreign banks in order This decision is based on an approach identification of problems, an overall 70 AREAS OF SUSTAINABILITY

improvement in understanding the impact of their activities and the the Group’s future retail, corporate and phenomena, and sharing experiences measures necessary to minimise it. private banks. and skills among participants. Thus, specific requirements were included in contracts with outside plant The process of raising awareness among The ten banks were divided into three maintenance/operation companies suppliers will continue through direct groups based on their degree of regarding the close management of meetings and discussions as a part of the experience and the complexity of environmental issues; audits of their process of consulting with stakeholders. procedures for assessing environmental operations were also stipulated. During these meetings UniCredit’s risk in the credit assessment policies will be presented, and processes. Although the banks in suppliers will be requested to the study only recently focused on share the principles underlying the this issue, based on this rating, Group’s environmental strategies. UniCredit was among the banks In addition, strategies to achieve that demonstrated a strong excellence in this area will be commitment to social proposed, e.g. the certification of responsibility through the management systems and development of specific products supplied or the procedures for environmental innovation of production assessment in the credit processes. assessment process and procedures for the accurate In the long term, the aim is to review of its portfolio in terms of maintain business relationships environmental risk. only with those suppliers who As part of the procedure to assess and make an active commitment to pursue In light of the assessments of the select suppliers based on environmentally conscious and study’s results, the next steps will be environmental and safety criteria, a sustainable growth. planned with a view to expanding the score was developed, based on data analysis to the foreign portfolio and all synthesis, to measure the supplier’s those countries where, as a result of environmental “competitiveness” and

efforts to achieve rapid improvements safety practices. This enabled the Bulbank assigned a member of the in the economy, there is a higher risk company in 2002 to assess all board of directors and a manager to that environmental problems are not suppliers that participated in ensure that environmental policies being handled properly. competitive bidding for the award of are applied to financial activities, to contracts during the year and provide a more systematic structure Suppliers simultaneously create a list of to the management of

environmentally qualified suppliers. Europe New environmental aspects of their The commitment to raise awareness The selection of suppliers, which is operations and to introduce a true among suppliers was stepped up in 2002 performed at the Parent Company level environmental management system by strengthening the approach proposed by Purchasing, will also be carried out in the near future. the prior year to make them aware of the (effective January 2003) on behalf of SOCIAL AND ENVIRONMENTAL REPORT 2002 71

Accident frequency

0.50 0.50 At work 0.45 0.42 0.40 In transit v In 2002 Zagrebacka Banka adopted 0.35 0.30 the Group’s policy on environmental 374 0.25 protection and sustainable growth. 0.23 0.20 0.18 There was a strong incentive to 0.15 0.10 adopt this vision because of general 0.05 international trends, Croatia’s 0

New Europe New process of joining the European UniCredito Italiano UniCredit Banca Union, the bank’s experience in the Accident frequency = Total accidents x 100,000 / number of hours worked. constant promotion of ecologically sound credit policies, its role as a major entity in society and its activities are also regulated by specific influence over several business procedures of the Environmental and customers. Safety Management System, which In addition, the more efficient were implemented by the Prevention Specific measures were taken in management of reporting operations and Protection Department. This order to assure the highest level of through the centralisation of all office department is responsible for safety, protection and healthcare for activities resulted in significant performing the functions required by employees. savings of paper and electricity law and regulations, and is responsible consumption with a resulting for planning work safety for the entire Work safety systems were structured New Europe New economic benefit. Environmental Group. and refined in light of differing protection is a long-term policy, In accordance with the training international experiences, and which can also take the form of paper procedure, in 2002 eighteen individuals especially to prevent work-related recycling and the collection and took part in fire prevention courses held accidents. separation of waste disposal. by the Fire Department (four took courses for high risks, twelve for medium These measures include training risks and two for low risks), while three courses for employees, caring for individuals participated in first aid and focusing on protected categories Managing work safety courses at the Red Cross. The aim of of workers and equipment tests, as these courses was to have staff capable well as the ongoing development of Measures to protect employee health of performing first aid in those buildings accident prevention methods in and safety are in effect, and are that do not have a nursing staff. keeping with current technology. integrated into daily operating procedures in all Group companies. In all Group companies the anti- Employees also have regular Every company prepared a risk smoking campaign continued in both medical check-ups for preventative assessment and takes all steps internal offices (where a ban on purposes and to check their general necessary to minimise risks. smoking is in effect) and those open to health. At the Parent Company, safety-related the public. 72 AREAS OF SUSTAINABILITY

A constant search for the best, rather than the easiest solution

Security and privacy

For customers, employees, shareholders and the community. And, once found, it is always possible to find an even better “ solution. ”

74 AREAS OF SUSTAINABILITY

UniCredit is concerned about protecting Security systems 500 ATM units were purchased with a people, assets and information from high degree of European protection illegal acts that can occur within the In 2002 a new security system was standards. This catalogue is now the organisation or in corporate activities. tested in 46 branches. This system standard reference for all purchases, The main objective is to ensure that uses a biometric device to read the including for the Group’s foreign employees can peacefully carry out fingerprints of individuals who enter the companies. their work activities, customers can branch. It encrypts and stores (for up to have an untroubled relationship with the one week) the fingerprint in a special In addition, the rules dictating the bank, and that corporate assets, “black box”. The black box can only be security standards to be adopted to customer assets in custody and accessed by the police in the event of a protect ATM’s, and indicating employees’ personal assets are crime, using special software. defensive countermeasures against protected. Video surveillance of branches has fraud from tampering with ATM’s, The crime prevention strategy were updated. is based on the application of These standards include a number of internal physical as well as logical regulations and organisational defensive measures to procedures, the gathering and protect user transactions by analysis of data on existing making use of equipment at security measures and on all the Group’s banks. past crimes, and monitoring the actual risk of crime in the Business areas where the Group’s continuity branches are located. A work group has been Risk mapping established to manage any risks resulting from natural In an attempt to develop more precise introduced changes in the traditional disasters or terrorist acts, and to systems to measure the risk of system by creating a link for the real- ensure the continuity of business robberies, a theoretical model for risk time transmission of images of what is operations in emergency situations mapping was created. This model was occurring at the branch to the using appropriate security plans. presented at the Bancasicura 2002 operations centre of the surveillance The Group is responsible for conference, and was considered a company, which, in case of danger, can developing a plan on business major success by the Italian Banking request the immediate involvement of continuity aspects to which all Association, which promoted a special the police. Group companies, which have work group to study it in depth. identified critical processes, will After integrating the results from the in- ATM security contribute. depth study, the model will be applied standards The analysis of processes will be to all branches, and will serve as the completed at the beginning of 2003, foundation for decisions regarding all In 2002 a special security catalogue and the overall security plan will be security measures to be taken. was prepared, on the basis of which prepared. SOCIAL AND ENVIRONMENTAL REPORT 2002 75

Theft and robbery In addition, a special website is services, the need has arisen to statistics being completed, where all Group adhere to high levels of security in entities can assess their security order to make these new channels

In 2002 in Italy there were approximately level in comparison to the as reliable as a bank branch. 2,257 bank robberies, a situation that established minimum, and find The security requirement was has resulted in our country being special tools and/or information, reflected in the guarantee of privacy awarded an unenviable distinction in including in specific data bases, that and the recognition of parties and Europe: in fact, 52% of robberies make it possible to use appropriate the certainty of proper execution of committed in Europe occur in Italy defensive countermeasures against the transactions performed. despite the fact that only 10% of the any computer crimes. UniCredit guarantees secure area’s branches are located there. The transactions for its customers by international overview points out the Remote banking using sophisticated identification gravity of the situation: 2002 ended with security procedures at all levels with access a 6% increase in the overall number of codes that provide a high degree of robberies in Italy. With the creation of remote banking security. In light of this serious situation, it is particularly significant to note that the number of robberies at the Group’s Robberies at domestic branches of Group banks branches was down slightly, but 400 386 significantly, for the fourth year in a row. 350 339 If this data is compared to the number of 300 294 278 256 Group branches in Italy, the downward 250 212 374 trend is confirmed (see graph). 200 196 150 Information privacy 100 50 and security 0 1996 1997 1998 1999 2000 2001 2002 The information and data handled within the Group are considered a resource of strategic value. Hence, in 2002 it was Theft and robbery statistics (percent branches involved) considered a priority to issue general (%) 16 policies for the security of information; 14.86 this constituted a first step in complying 14 13.52 12 11.11 with a common security standard 10.46 10 9.60 throughout the Group in order to provide 374 8 standard means to protect corporate 6 assets, information and automated 4 telecommunications systems from 2 assaults and/or alterations, including 0 1998 1999 2000 2001 2002 computer fraud. 76 AREAS OF SUSTAINABILITY

Promoting dialogue

Listening and dialogue

Many benefits are derived from discussing things at all levels with all counterparts. Internally, both up and down the organisational hierarchy. Externally, with customers and members of society to share success and build long-lasting relationships. The objective for all concerned is that of “ continuous improvement. In order to make this happen, methods and tools must be provided that encourage the flow of information and the exchange of ideas and opinions. Let’s have the courage to express our own ideas, especially when we are sure we have the best interests of the people and company at heart. ”

78 AREAS OF SUSTAINABILITY

“Promoting social responsibility Meanwhile, top management organised In 2002 the company’s senior essentially means voluntarily several road shows to encourage management also carried out three contributing to social progress and involvement and provide information on significant briefings on the S3 project. environmental protection by integrating the implementation of the project. These road shows were aimed at social and ecological concerns in managers and involved a total of about corporate transactions and relationships A survey to ascertain the impact of 9,000 people. with stakeholders.” – From the Green current changes on individuals and their During the first road show, which was Book on corporate social responsibility, future expectations was carried out in held at the beginning of the year, a COM (2001) 366. Thus, a company can July by means of a questionnaire description was given of the strategic consider itself socially responsible when targeting all Group employees involved value of the S3 project, the features of it aims to satisfy the legitimate economic in the S3 project. the new specialised segment banks and and non-economic expectations of all The response rate was 43.60%, which the related implementation strategy, as stakeholders by establishing a was considered high since it took place well as the value of human resources in constructive dialogue and a relationship in the summer. the new UniCredito Italiano. of mutual trust with its internal and The second road show coincided with external counterparts. the completion of the second phase of Given the importance of dialogue with the implementation of the project - the stakeholders and the importance of temporary unification of the seven banks corporate governance, UniCredit has - and provided an exhaustive description planned an innovative strategy aimed of innovative elements in the new at developing relationships with organisational model. greater mutual benefits. It attempts to Before the launch of the three new banks identify the expectations and needs of (UniCredit Banca, UniCredit Banca various counterparts, assess the d’Impresa and UniCredit Private impact and repercussions of pending Banking) scheduled for January 2003, a and future initiatives on sustainability, The most important information that third meeting was held at the time of the and most importantly, foster the came out of the survey regarding the start-up of the “new way of banking” development of new ideas and creation of specialised banks (the S3 based on specialisation, a strong local proposals. project) was a widespread expectation presence and customer satisfaction as of improvement, ranging from the three key elements of the S3 project. Internal listening and professionalism and skills to product discussing quality and variety, service efficiency Stakeholder dialogue and a more significant local presence. In 2002 internal programmes to Most people are aware that the change In 2002 a work programme was encourage listening and dialogue will lead to new opportunities and a launched for Stakeholder Dialogue focused specifically on understanding greater market focus. through dedicated meetings. The first in employees’ opinions and problems in the This information serves as important a series of meetings to encourage various organisational units involved in tool for overcoming the inevitable interactive, shared and open the S3 project, and to clearly and difficulties and concerns that are a part communications with all partners and effectively communicate aspects of the of any restructuring process, and is counterparts was with the Group’s reorganisation. further confirmation of the positive suppliers. In order to ascertain the atmosphere in assimilation and contribution of all the the seven different banking units, an unique cultural and organisational On the basis of UniCredit’s best internal survey was carried out. aspects within the Group. international experience of green SOCIAL AND ENVIRONMENTAL REPORT 2002 79

purchasing and the guidelines of our environmentally sustainable growth on and questionnaires received: environmental and safety management a daily basis. - A high level of approval of the proposed system, we decided to meet suppliers dialogue programme; to share goals and involve them in the In this context, UniCredit has initiated a - A strong interest in and certain curiosity process of improving environmental strategy of listening to and holding about the socially responsible role performance. discussions with local entities in areas demonstrated by financial institutions, This first meeting was mostly an where it has a presence to determine and by the UniCredit Group in this case; occasion to initiate an approach their various opinions of the actions - There was a perception, on average, dialogue based on direct discussion. taken by the Group. that the bank’s social commitment was The meeting made it possible to Based on the mapping of areas where sufficient given that this commitment is present and clarify the “new way of the Group has the most significant often interpreted as an expression of banking” and the Group’s mission and presence, in the second half of 2002 the interest regarding solely economic values, to understand more thoroughly first two meetings were held on the issues; how suppliers view social responsibility - A need to search for new forms of and what measures they have taken in cooperation among different entities this regard. During the meeting, (the market, charitable organisations progress on establishing a “selected and non-profit organisations and local suppliers list” was also discussed. This governments) and a consensus on list was created in 2001 and based on practices to show commitment to a reclassification of suppliers using community development; environmental and safety criteria. - High expectations of UniCredito’s role This programme resulted in in the region. considerable support: nearly all those invited (over thirty of the Group’s main The programme of meetings with local suppliers) attended the meeting, stakeholders will continue throughout demonstrating their interest and focus subject of the social and environmental 2003 and will involve other local areas in on social responsibility and their report in the area of Trento and Treviso. which the Group operates. respect for the environment and work The main participants were non- safety. These are areas where governmental volunteer environmental participants stressed their commitment organisations, associations, social and their intention to create a new institutions, etc. In Poland the bank has created a vast common growth strategy. This dialogue had a dual purpose: on the network for discussions with its one hand, to involve individuals of stakeholders at the regional level in UniCredit’s commitment consists not private non-profit institutions in sharing order to ascertain and respond with only of listening to problems and the growth strategy taken by the Group specific action in an increasingly expectations within its organisation and focusing on a shared social report, precise manner to the many needs

(talking to customers and employees, and on the other hand, to carry out a Europe New and expectations of various local communicating with shareholders and survey on the perception of UniCredit's communities. In 2002 some of the creating awareness among suppliers) social responsibility profile through a programmes carried out by local but also meeting with all those questionnaire. The final results of the structures of the bank included (volunteers, social cooperatives, public questionnaire will be analysed and funding for an orphanage, the support organisations and non-profit discussed at the end of the programme. of widows of police officers who were organisations in general) who work to Several important results were taken killed in the line of duty and the encourage socially responsible and from an initial analysis of meetings held sponsoring of hospitals. 80 AREAS OF SUSTAINABILITY

The importance of taking the initiative, connecting with society and being active citizens

Corporate citizenship

Use rules and procedures as a tool to overcome obstacles and not as an excuse or barrier against problem solving. Do what we are called to do, but also try to do “something more” with the awareness and the will to live our role actively and fully involved. Put something of “ ourselves and our ideas in our work. ”

82 AREAS OF SUSTAINABILITY

The UniCredit Group is taking on a new To act as a socially responsible entity and on the other hand, promoting and ethical and social role in providing means, on the one hand, acting directly sharing the culture of corporate financial services focused on sustainable within the social fabric with a maximum responsibility and citizenship through the growth, social responsibility, and the focus on the weakest social strata and creation of solid, profitable relationships spread and fair distribution of prosperity continual support of organisations with entities that have always had a in the community. dedicated to fund-raising programmes; commitment to these areas.

involved in building and strengthening Europe, with a focus on those where those elements that make it possible to the UniCredito Italiano Group has a independently address the occurrence local presence; The establishment by UniCredito of similar emergencies on site. This c) Areas whose people are at risk due Italiano of its non-profit foundation, means that there will be a growing to natural disasters. Unidea is partly the result of the need to interrelationship among financial aid address the question of redefining the (especially in the areas of health, The broad issues of underdevelopment relationships between ethics and nutrition, hygiene and basic education), and the resulting daily suffering will be business by reflecting on its duties and structural action and the development the foundation’s priority area of roles, and thus, on the expectations that of a culture based on rights and human involvement. society has of it. And partly it is the need dignity. In the current era of rapid to contribute to the solution of serious globalisation, social responsibility must In particular, the foundation supports problems and fill the obvious social and primarily deal with the situations with those projects that: economic gaps brought about by the greatest imbalance and the a) Promote the fight against globalisation. inequality that accompanies them. underdevelopment and extreme A foundation of this sort must have a poverty, and especially programmes The challenge that the foundation wants clear awareness of its duties: the that promote human development, to take on is to make the most selection, direction, control and dietary and economic self- significant contribution possible to the reporting of humanitarian projects. This sufficiency, the treatment of endemic war on poverty and destitution in the means not only selecting the issues to diseases, and provide support to conviction that they can be fought be covered and the geographic areas those with illnesses, children, and in through a process of economic growth; where action will be focused, but also general, all those suffering hardship; however, they cannot be eliminated as selecting partners for the various b) Promote the creation and an automatic outcome of this process. programmes. improvement of basic health and The foundation has identified social services; The decision to take action to alleviate geographic areas where it will c) Promote the development of human social hardship and to deal with concentrate its activities: resources through basic education international emergencies is based on a) Developing countries that lack the and training; the conviction that moderating the main basic services, in particular in d) Strengthen democratic structures imbalance caused by globalisation is social and health areas (African and and the growth of human society; our moral imperative. At present, a non- Latin American countries); e) Call for socio-economic measures to profit foundation must be able to get b) Countries in Central and Eastern assist emigrants and refugees to SOCIAL AND ENVIRONMENTAL REPORT 2002 83

This is the spirit that led UniCredito in subsequently be the focus of the mission strengthen its ties with CSR Europe, 2002 to create a fund of e7.5 million to of the Unidea non-profit foundation that Cittadinanzattiva, Sodalitas, the Forum support fund-raising, cooperation and will be created at the beginning of 2003. for Sustainable Finance, the Kyoto Club, human development programmes in The decision to support the culture of Bocconi Observatory of Environmental southern countries of the world and in corporate responsibility and citizenship Management Systems, Legambiente Central and Eastern Europe, which will has encouraged the Group over time to and QRES - University of Castellanza.

return to and be reintegrated into developed with a unique, innovative capital) and Beira, as were two their country of origin; philosophy and approach: to establish maternity centres, two health care f) Promote and encourage cultural a partnership structure with the local centre and a home healthcare service in activities in the Balkans and in Central government and health workers by Maputo and Beira, with the capacity to Europe where the Group has a initiating a collaboration mechanism to screen 1,500 people. Of these, 350 presence, by assisting in the growth reform the health system so that it is were HIV positive, and all are currently and transition phase with measures able to intervene. receiving treatment at various centres that can be extended beyond social D.R.E.A.M. operates through a network depending on their category. services to provide assistance An important success story was with cleaning up the the fact that the first 15 babies environment; born to HIV-positive mothers g) Support the promotion of the were HIV-negative one month non-profit and voluntary after birth. service culture among Group staff. Each year the Unidea Foundation will identify priority One of the first programmes of areas for intervention and the foundation was the support related projects. collaboration with the Remaining funds will be Community of Sant’Egidio, a reserved for special secular movement to protect programmes linked to human rights and raise funds for the of hospitals, health centres, laboratories promoting the foundation within the poor at an international level with over and research centres in the Group and involving employees by 40,000 members worldwide. Over the Mozambique health system and offers offering them the opportunity to put their last decade, this organisation free treatment based on standards professional skills to use for various distinguished itself in its commitment to comparable to western medicine. programmes and by supporting other peace to such a degree that it won the D.R.E.A.M. has already reported its first outside programmes by matching UNESCO Peace Prize in order to start results as regards treatment and the contributions made by an employee or a major programme known as economic and technical sustainability group of employees. The foundation D.R.E.A.M. (Drug Resources and personnel: two molecular biology may also participate in projects of other Enhancement against AIDS in labs were put into service in the organisations in which employees were Mozambique). The programme is being General Hospitals of Maputo (the already involved. 84 AREAS OF SUSTAINABILITY

Social responsibility The companies promoting the Frascati economy cannot avoid dealing with the marathon Group have accumulated, or are problem of social responsibility. It is no accumulating innovative partnership and longer sufficient for companies to merely

UniCredit participated in and sponsored alliance experiences with civic act within and obey the laws. They must the Italian leg of the European organisations to promote programmes start doing voluntary work with greater campaign, which was promoted by with a high social content. The innovation responsibility to society. They not only Sodalitas (www.sodalitas.it) together stems from the fact that these companies answer to shareholders, but also to new with Isvi and Impronta Etica, on are moving from mere sponsorship or a “investors” who have specific interests in corporate social responsibility to one-time intervention to the assumption companies (customers, employees, local promote sustainable growth among of a committed partnership on issues, communities, suppliers) regarding companies throughout Europe, in programmes and policies related to the regional development, environmental response to the challenge stated during dissemination of innovative practices in conservation and the use of resources, the Lisbon Summit in March 2001 to the service management, youth training, the increase and distribution of wealth, transform Europe into an economic area development and strengthening of public work quality, well-being and the prosperity “capable of sustainable growth”. participation and environmental of the community where they work. It is for protection. this reason that UniCredit’s collaboration Frascati This commitment represents a means for with Cittadinanzattiva also grew by group making corporate citizenship not only a following the work plan aimed at re- moral obligation, but also a growth factor examining the various aspects of the In response to a for the company. bank-customer relationship in terms of proposal made by Because of its overall influence, the global transparency and service quality. Cittadinanzattiva (www.cittadinanzattiva.it), in December UniCredit is a supporter of the “Manifesto management of internal human 1999, a group of private companies of Corporate Citizenship,” the basic resources, respect for the environment operating in Italy decided to launch a principles of which are summarised below: and investments in research; programme to focus the country’s - Adopt a global approach that makes it - Promote medium-term investments in possible to promote social order to encourage an ongoing attention on “corporate citizenship”. The development programmes in the commitment to projects and programmes “Frascati Group for corporate social framework of the company’s general that solve the problems being considered responsibility” was formed, which strategies and mission; or give long-lasting results; arranges annual international - Establish a partnership with civic - Invest not only in financial, but also, conferences in Frascati. In 2002, the organisations, and with the general human, technological and organisational event, which was held 11 and 12 agreement of the counterparts resources in order to create a synergy October, had the following theme: concerned in order to be actively between the company’s potential and the “Corporate Citizenship: strategies and involved in the preparation of projects project to be supported; actions for implementation”. and programmes aimed at providing - Focus on innovation, in the sense of Corporate citizenship means the greater protection of citizen’s rights; favouring projects whose added value ongoing commitment of a company to - Adopt an integrated approach aimed at is the development of new services and place market requirements and new establishing cohesion between decisions new opportunities related to welfare social responsibilities at the centre of its on social investments and corporate reform, education, the protection of strategies and actions. policies regarding issues such as weaker strata of society, the promotion commercial correctness, product quality, of health, etc. SOCIAL AND ENVIRONMENTAL REPORT 2002 85

Programmes for children with learning disabilities through Legambiente fund-raising and a number of concerts in several cities in the protection of Italy. The centrepiece of this event was a There was continued support for the environmental and band made up of the Group’s senior campaign called “Clean up the world”, cultural assets managers, and all proceeds raised (over which was promoted in Italy by e20,000) were donated to charity. Legambiente (www.legambiente.com).

UniCredit has allocated over e3,000,000 In its ninth year, this programme is part in its commitment to the enhancement of Italian Environmental of the worldwide “Clean up the world” programmes for fund-raising and the Fund – FAI campaign promoted by UNEP, and has protection of cultural assets. become one of the largest environmental In 2002, in partnership with the campaigns in the world. UniCredit AIRC Italian Environmental Fund contributed with sponsorship of over (www.fondoambiente.it), a significant e49,000 to prepare the kits given to Once again, this year the close collaboration programme was carried out: the participants. between the Group and AIRC (www.airc.it) restoration of the Bay of Ieranto, a 47- culminated on national cancer research day, hectare area on the Sorrento peninsula, Cartegioco Arti & Mestieri which is now in its fifth year. to its original beauty. This programme, which was held on 10 The restoration (concluded and The goal of the project called November 2002, was dedicated to the inaugurated 1 June 2002 with a solemn “Cartegioco Arti & Mestieri” is to give issue of research in the post-genome era. ceremony, which was attended by, among children a better understanding of work This is a new area that has created a true others, Romano Prodi, chairman of the activities through games. This project revolution in the field of life sciences. The European Commission), required an was promoted by the European Union impact of this monumental change is most investment of over e2 million, a large part and backed by the Ministry of Public important in the health field where new of which was provided by the Region of Education with the participation of selective and individual diagnostic and Campania through financing provided by UniCredit as a sponsor. In 2002, this therapeutic techniques will be introduced. the European Union and UniCredito project, which was created and carried Italiano, which acted as the main sponsor. out by the Catholic University in Milan, Again in 2002, the Group asked its UniCredit has already announced that it involved about 400 teachers and 13,000 customers to support cancer research wishes to renew its support for FAI in children. through fund collections at its network of 2003 for a project to restore the over 2,800 branches in order to sponsor nineteenth century Villa Gregoriana in a fund aimed at providing 60 training Tivoli. This nature reserve, which is scholarships for young researchers. currently closed to the public and in a poor state of conservation, will be UniCredit and Friends for restored to its original splendour. The the Insieme Intelligenti project requires an overall outlay of e2 Association million. UniCredit’s willingness to finance nearly the entire project makes it In 2002 the Group chose to support the possible to start work immediately and Insieme Intelligenti Association for complete work by the end of 2004. 86 AREAS OF SUSTAINABILITY

Programmes Below we provide a selection of the seven of some of the more banks interesting programmes.

During the first half of 2002, Invitation i.e. prior to the creation of the to the palace single bank, traditional support was continued for At the initiative of the Italian the most active social and Banking Association, on 21 cultural organisations and September 2002, the Italian associations in local areas banks simultaneously by the Group’s seven former opened their historical and Italian banks (Credito artistic buildings to the public. Italiano, Rolo Banca 1473, Cariverona, Banca CRT, The invitation was sent to Cassamarca, Caritro, thousands of people, who CRTrieste). These were took the opportunity to take a joined by another significant close look at gems of the Group company, Banca Baroque and Neoclassical Agricola Commerciale of the periods including historical Republic of San Marino, palaces, frescoes, marble which, for the first time, and decorations. published its social report in As a part of this patronage conjunction with its annual programme in the Italian accounts. banking industry, about 5,000

Amani Project In keeping with the Group’s social responsibility policies, community called Koinonia. UniCredit Produzioni Accentrate (UPA) supported a fund- The contribution will provide children with food, educational raising project in Zambia. and health aid throughout 2003. It did so through AMANI, which means “peace” in the Kiswahili. This is a non-government organisation recognised by the Ministry of Foreign Affairs, which focuses primarily on African populations with a number of educational projects promoting long-lasting development, peace and justice. Among the broad range of projects managed by this organisation, UPA supported the remote adoption of 41 street children taken in by the Mthunzi Centre near the capital, Lusaka, which was built and managed by families in a rural SOCIAL AND ENVIRONMENTAL REPORT 2002 87

visitors toured the rooms of several of the Group’s buildings where cultural performances were being staged.

To be specific, the following historical buildings were open to the public: Perrone Palace (Turin, Banca CRT), Firmian Palace (Trento, Caritro), Monte di Pietà (Treviso, Cassamarca), Magnani Palace (Bologna, Rolo Banca 1473), Verospi Palace (Rome, Credito Italiano). International Track and Barcolana Young Credito Italiano Field Event in Rovereto and Touring Club Italiano The under-15 series of the third Barcolana This year, Rovereto was again in the Young competition, which is Trieste’s Among the numerous programmes spotlight of international track and world-renowned regatta, saw the carried out by Credito Italiano, the now field at the Palio of the city of participation of a fleet of over 500 young historic collaboration with Touring Club Quercia, an event sponsored by sailors from all over Europe. Italiano deserves particular mention. The Caritro and held on 28 August. private banking division was involved in The event, which was held on 5 and 6 preparing an event to present the guide The track meet, which is the oldest October on the shores of the Gulf of Trieste, for the Capodimonte Museum in Naples. Italian track and field event and one was organised by the Sailing Society of of the longest running in Europe, Barcola and Grignano and by Promo Sail Oltre le Vette was included for the twelfth thanks to the support of CRTrieste and consecutive time in the Grand Prix Fondazione CRTrieste, which confirmed The sixth annual show called “Oltre le of the European Federation due to their interest in promoting events that Vette: metafore, uomini, luoghi della its technical value and high involve young people and educate them montagna” (Beyond the Peaks: Metaphors, organisational standards. about sports in a festive environment. Men and Places in the Mountains) was held from 11 to 26 October in Belluno thanks to the support of Cariverona.

This programme was a mix of cultural events including conventions, conferences, a film festival, theatrical performances, concerts, meetings with famous mountaineers, presentations of books and CD-ROMs and shows. One of the most prominent events was a retrospective on Dino Buzzati, a writer from Belluno. 88 AREAS OF SUSTAINABILITY

New Europe involvement was also recognised programmes by the United Nations Development Programme, which invited Bulbank to participate in the UN Secretary General Global Compact, a programme that In 2002 the bank sponsored strives to motivate social several cultural and artistic responsibility and active programmes including: the citizenship programmes of International Dance Festival in companies. Lodz, the International Competition for Soloists, the In the cultural area, several Shakespeare Festival, various programmes were funded such as concerts of the Warsaw the Andre Shenie Opera, the Philharmonic Orchestra, the Bulgarka National Civil Forum and Lubiana Theatre Festival and the the National and International EuroDrama 2002 show. Economy University in Sofia, and in the area of sports, the Bulgarian The main museums and art galleries to Challenger 2002 tennis tournament which Pekao contributes funding and two events organised by the include the Royal Castle Museum, the Bulbank funds various charitable Bulgarian Equestrian Foundation: the Warsaw National Museum, the Krakow programmes to provide assistance to Nations’ Cup and the FEI World Cup. National Museum, the Lodz Museum of children in need of specific medical Art and the Zacheta Gallery in Warsaw. treatments. It has also embraced the The continually growing support for the programme promoted by the Swedish Doctor Kanton Foundation, which was Embassy and Ministry of the Interior to In the healthcare area, the bank’s created by the bank to provide provide financial support for orphans of commitment primarily focused on economic assistance to children in police officers killed in the line of duty. funding medical equipment for the difficulty, reached about e336,000 in In 2002, the bank’s significant social hospital of the Ministry of Defence in 2002. Bratislava, and collaboration, for the fifth year in a row, with the The bank is currently the main Anti-Drug Fund, an institution sponsor of the Grand Orchestra mandated by the government to for Festive Aid (WOSP), which in conduct drug prevention and 2002 collected about e100,000 information campaigns on issues for the purchase of medical related to drug addiction. equipment to assist children with The bank carried out a number of deformities and hereditary development programmes in the diseases. Nove Mesto neighbourhood in SOCIAL AND ENVIRONMENTAL REPORT 2002 89

Bratislava where it has its headquarters, and it also supports the organisation of several cultural events for children in the summer. Koç Bank is one of the main financial In collaboration with the Parent sponsors of the Çatalhöyük Company, UniBanka contributed to archaeological campaign in Anatolia. promoting Italian opera in Slovakia by The work, which began in 1993, will sponsoring two events: a concert of the allow anthropologists to enhance their SND Opera in Bratislava and a concert knowledge on the origins of agriculture of the Arena Orchestra of Verona, and farming in Anatolia during the which was held in the concert hall of Humanitarian Demining of Croatia, to Neolithic period, and to explain the the Slovak Philharmonic Orchestra in raise funds for removing mines in the differences in civilisation among Bratislava. southern section of Velebit. various geographic areas. The bank also sponsors the Istanbul Throughout the year, funding support Foundation for Culture and Arts and the continued for Vatroslav Lisinski Concert Istanbul Festival, and is a permanent In 2002 UniCredit Romania funded the Hall, the most majestic theatre in the member of the European Festivals Christmas Charity Bazaar organised by country, for which the bank planned to Association. These institutions promote the International Women’s Association in restore a special organ dating back to the development and awareness of all Bucharest. In addition, the bank worked the foundation of the theatre. forms of national and international with the Romanian stock exchange to artistic discipline. organise celebrations tied to its 120th The most significant events included the anniversary. first concert held in Zagreb by the The Vehbi Koç Foundation, which is the Philharmonic of La Scala on 26 largest private foundation in Turkey, is February 2002. dedicated to funding programmes in the area of education, the In 2002, which was declared the “year of arts, medical treatments the mountain” by the United Nations, the and other basic human bank organised the largest project in its rights. history: “Zagrebackav Banka for Velebit”. The foundation contributed The programme called for the replanting to the construction of of the Velebit Botanical Garden in the schools, dormitories and National Park of the same name, and clinics and provided the creation of a protected area scholarships for the dedicated to the reintroduction of bears. best students with At the same time, the “Croatia without economic difficulties in Mines” project was initiated in order to guarantee equal collaboration with the Foundation for opportunity in education. 90 Schedule to the 2002 Social and Environmental Report

CALCULATION AND DISTRIBUTION OF VALUE ADDED

Reclassified Balance Sheet (amounts in thousands of euro)

ASSETS 31.12.2002 31.12.2001

1. Cash and deposits with central banks and post offices 1,609,848 1,825,629 2 Due from: – customers 113,824,110 117,622,315 – banks 28,098,561 24,980,924 3Trading securities 17,091,514 16,379,697 4 Fixed assets: – investment securities 13,338,324 16,597,632 – equity investments 2,404,125 2,291,552 – intangible and tangible fixed assets 4,782,862 4,809,140 – positive differences arising from consolidation and net equity 1,018,654 792,372 5 Other assets items 31,181,328 23,088,843 Total assets 213,349,326 208,388,104

LIABILITIES AND SHAREHOLDERS’ EQUITY 31.12.2002 31.12.2001

1 Deposit: – Due to customers 93,571,701 91,452,292 – Securities in issue 33,173,457 35,868,149 – Due to banks 31,990,884 34,030,396 2 Specific reserves 4,601,440 4,578,534 3 Other liability items 29,332,778 22,778,804 4 Reserve fund for possible loan losses 93,791 148,246 5 Subordinated debt 7,088,478 7,071,017 6 Negative difference arising on consolidation and in net equity 64,306 56,465 7 Minority portion of shareholders’ equity 1,171,598 2,869,583 8 Shareholders’ equity: – capital, reserves and fund for general bank risks 10,459,751 8,080,899 – net profit for the period 1,801,142 1,453,719 Total liabilities and shareholders’ equity 213,349,326 208,388,104 SOCIAL AND ENVIRONMENTAL REPORT 2002 91

Reclassified income statement (amounts in thousands of euro) 2002 2001

Net interest 4,911,184 4,970,503 Dividends and other income from investments 216,267 78,480 Interest margin 5,127,451 5,048,983 Net commissions 3,189,628 3,290,911 Profits (Losses) from financial operations 1,049,345 933,114 Other operating income 732,621 715,711 Income from brokerage and other services 4,971,594 4,939,736 BROKERAGE MARGIN 10,099,045 9,988,719 Payroll costs (3,159,657) (3,044,556) Other administrative expenses (1,862,912) (1,813,421) Writedowns of intangible and tangible fixed assets (459,994) (404,747) Operating costs (5,482,563) (5,262,724) OPERATING PROFIT 4,616,482 4,725,995 Amortisation of goodwill (244,574) (277,153) Provisions for risks and charges (163,690) (256,545) Net writedowns of loans and provisions for guarantees and commitments (979,270) (795,464) Provision for possible loan losses (9,767) (57,367) Net writedowns of financial investments (294,609) (126,829) Total writedowns and provisions (1,691,910) (1,513,358) PROFIT ON ORDINARY ASSETS 2,924,572 3,212,637 Extraordinary income (charge) - net 358,537 231,329 Changes in fund for general bank risks (3,836) (4,810) PRE-TAX INCOME 3,279,273 3,439,156 Income tax for the period (1,316,923) (1,484,562) NET INCOME BEFORE TAXES 1,962,350 1,954,594 Net income of minority interests (161,208) (500,875) NET INCOME OF THE GROUP 1,801,142 1,453,719 92 SCHEDULE

Analytical statement determining the value added (amounts in thousands of euro)

2002 2001

REVENUES Interest income and similar revenues 9,926,722 11,717,282 Commissions received 3,719,968 3,837,430 Other revenues – dividends and other net operating income 230,604 78,058 – profits (losses) from financing transactions 1,049,345 933,114 – income (losses) from investment valued at net equity (14,336) 422 – other operating income 988,849 1,067,483 1. TOTAL GROSS INCOME 15,901,152 17,633,789 CONSUMPTIONS Interest paid and similar charges (5,015,538) (6,746,779) Commissions paid (530,340) (546,519) Other operating costs (256,228) (351,772) Other administrative costs (1,577,614) (1,527,130) Provisions for risks and charges (163,690) (256,545) Net writedowns of loans and provisions for guarantees and commitments (979,270) (795,464) Provision for possible loan loss (9,767) (57,367) Net writedowns of financial investments (294,609) (126,829) 2. TOTAL CONSUMPTIONS (8,827,056) (10,408,405) 3. GROSS CHARACTERISTIC VALUE ADDED 7,074,096 7,225,384 Extraordinary revenues 603,592 417,315 Extraordinary charges (245,055) (185,986) NET EXTRAORDINARY INCOME (CHARGE) 358,537 231,329 4. GROSS GLOBAL VALUE ADDED 7,432,633 7,456,713 Adjustments/value increases of tangible and intangible assets (704,568) (681,900) 5. NET GLOBAL VALUE ADDED 6,728,065 6,774,813 Cost of work: – direct (2,246,909) (2,151,868) – indirect (912,749) (892,688) Donations and gifts ( 5,063) (3,871) Direct, indirect and capital taxes (280,235) (282,420) 6. PROFIT BEFORE TAXES 3,283,109 3,443,966 Changes in fund for general bank risks ( 3,836) (4,810) Income tax for the year (1,316,923) (1,484,562) Income of minority interests (161,208) (500,875) 7. NET INCOME FOR THE YEAR 1,801,142 1,453,719 SOCIAL AND ENVIRONMENTAL REPORT 2002 93

Schedule of distribution of gross global value added (amounts in thousands of euro)

2002 2001

REVENUES 15,901,152 17,633,789 CONSUMPTIONS (8,827,056) (10,408,405) NET EXTRAORDINARY COMPONENTS 358,537 231,329 GROSS GLOBAL VALUE ADDED 7,432,633 7,456,713 Divided between: THIRD PARTIES – minority interest in consolidated profits 161,208 500,875 SHAREHOLDERS – Dividends distributed to Shareholders 995,116 723,811 HUMAN RESOURCES 3,174,658 3,053,556 Cost of labor: - direct 2,246,909 2,151,868 - indirect 912,749 892,688 Portion of income for the period earmarked for the reserve relating to the medium-term incentive scheme for the Group’s employees 15,000 9,000 STATE, AGENCIES AND INSTITUTIONS 1,597,158 1,766,982 Indirect and property taxes and duties 280,235 282,420 Income tax for period 1,316,923 1,484,562 SOCIETY 15,063 15,231 Donations and gifts 15,063 15,231 CORPORATE STRUCTURE 1,489,430 1,396,258 Adjustments to value of non-current assets 704,568 681,900 Allocation to undistributed profits reserve and changes in fund for general banking risks 784,862 714,358 GROSS GLOBAL VALUE ADDED 7,432,633 7,456,713

Distribution of the gross global Distribution of the gross global value added 2001 value added 2002

9.71 13.39 6.72 2.17 40.95 42.71 18.72 % 20.04 %

0.20 0.20 23.70 21.49

Human resources Human resources State, agencies and institutions State, agencies and institutions Society Society Corporate structure Corporate structure Minority interests Minority interests Shareholders Shareholders 94 SCHEDULE

Chart of the Group as at 31 December 2002

Commercial Banks based in Italy Asset management Italian Banking Division Wholesale Banking Division UNICREDIT BANCA S.p.A. UNICREDIT ROMANIA S.A. PIONEER GLOBAL ASSET (formerly CREDITO ITALIANO S.p.A.) Main office: Bucharest ◆ MANAGEMENT S.p.A. - Main office: Milan ● Foreign Banks and New Growth Division Registered office: Genoa PIONEER INVESTMENT MANAGEMENT Ltd ◆ ZAGREBACKA BANKA D.D. ◆● Registered outside Italy ADALYA BANCA IMMOBILIARE S.p.A. Main office: Zagreb ◆■ Main office: Dublin ★ Pekao Group company Main office: Milan PIONEER INVESTMENT MANAGEMENT ▲ Pioneer USA Group company PRVA STAMBENA STEDIONICA D.D. ◆■ S.G.R. p.A. - Main office: Milan ● ● BANCA DELL'UMBRIA 1462 S.p.A. Main office: Zagreb Pioneer Global Asset Management Main office: Perugia Group company PIONEER ALTERNATIVE INVESTMENT UNIVERSAL BANKA D.D. MANAGEMENT Ltd - Main office: Dublin ◆● ■ Zagrebacka Group company CASSA RISPARMIO DI CARPI S.p.A. Main office: Sarajevo ◆■ Main office: Carpi ❖ Momentum Group company PIONEER ALTERNATIVE INVESTMENT VARAZDINSKA BANKA D.D. MANAGEMENT S.G.R.p.A. - Main office: Milan ● BANCA MEDIOCREDITO S.p.A. Main office: Varazdin ◆■ Main office: Turin PIONEER FONDS MARKETING GMBH ZAGREBACKA BANKA BH D.D. Main office: Munich ◆● UNICREDITO GESTIONE CREDITI S.p.A. Main office: Mostar ◆■ (formerly MEDIOVENEZIE BANCA S.p.A.) PIONEER INVESTMENT MANAGEMENT USA Inc. Main office: Verona Other commercial banks Main office: Delaware ◆● Investment banking BANCA AGRICOLA COMMERCIALE PIONEER PEKAO INVESTMENT MANAGEMENT S. MARINO S.A. - Main office: Borgo S.A. Main office: Warsaw ◆● UNICREDIT BANCA MOBILIARE S.p.A. Maggiore (San Marino) ◆ Main office: Milan PIONEER CZECH FINANCIAL COMPANY Sro BANQUE MONEGASQUE DE GESTION S.A. Main office: Prague ◆● TRADINGLAB BANCA S.p.A. Main office: Monaco (Montecarlo) ◆ Main office: Milan PIONEER CZECH INVESTMENT COMPANY A.S. CASSA DI RISPARMIO Main office: Prague ◆● Banks based outside Italy DI TRIESTE BANCA D.D. ◆ PIONEER INVESTMENT MANAGEMENT Inc. Main office: Zagreb ◆▲ New Europe Banking Main office: Wilmington UNICREDIT (SUISSE) BANK S.A. PIONEER PEKAO TFI S.A. - Main office: Warsaw ◆● BANK PEKAO S.A. - Main office: Warsaw ◆★ Main office: Lugano ◆ PIONEER INVESTMENT MANAGEMENT SHAREHOLDER BANK PEKAO (UKRAINA) Ltd Other banks SERVICES Inc. - Main office: Boston ◆▲ Main office: Luck ◆★ UNICREDITO ITALIANO BANK PIONEER FUNDS DISTRIBUTOR Inc. BANK POLSKA KASA OPIEKI TEL-AVIV Ltd (IRELAND) Plc - Main office: Dublin ◆ Main office: Boston ◆▲ Main office: Tel Aviv ◆★ CLARIMA BANCA S.p.A. PIONEER GLOBAL FUNDS DISTRIBUTOR Ltd BULBANK A.D. - Main office: Sofia ◆ Main office: Milan Main office: Hamilton ◆● UNIBANKA A.S. (formerly POL’NOBANKA A.S.) XELION BANCA S.p.A. PIONEER GLOBAL INVESTMENTS Ltd Main office: Bratislava ◆ Main office: Milan Main office: Dublin ◆● Fully consolidated

CREDIT INSTITUTIONS FINANCIAL AND INSURANCE COMPANIES

Commercial Banks Asset management CREDITRAS ASSICURAZIONI S.p.A. based in Italy Main office: Milan OLD CITY FINANCIAL SERVICES LTD Main office: Raanan ◆❖ CREDITRAS VITA S.p.A. BANCA C.R. SAVIGLIANO S.p.A. Main office: Milan Main office: Savigliano OT FINANCIAL SERVICES NOMINEES LTD Main office: London ◆❖ GRIFO INSURANCE BROKERS S.r.l. CASSA DI RISPARMIO Main office: Perugia PIONEER CONSULTING SERVICES S.A. DI BRA S.p.A. Main office: Warsaw ◆▲ Main office: Bra ON INVESTMENT SERVICES S.r.l. Main office: Milan TRINITY MANAGEMENT Sp.zo.o CASSA DI RISPARMIO Main office: Warsaw ◆★ UNICREDITASSICURA S.r.l. DI FOSSANO S.p.A. Main office: Milan Main office: Fossano Leasing ALLIANZ ZAGREB DIONICKO DRUSTVO CASSA DI RISPARMIO LISEURO S.p.A. - Main office: Udine ZA OSIGURANJE DI SALUZZO S.p.A. Main office: Zagreb ◆■ Main office: Saluzzo DEMIR ROMLEASE S.A.. Main office: Bucharest ◆ Other financial companies LOCAT LEASING d.o.o. Main office: Zagreb ◆ FIDIA S.G.R. S.p.A. - Main office: Milan Tax collection MILANO INNOVAZIONE S.F.E.T. S.p.A. Società Friulana S.G.R. S.p.A. - Main office: Milan Esazione Tributi - Main office: Udine CENTRAL POLAND FUND LLC Insurance companies Main office: Wilmington ◆★ BROKER CREDIT S.p.A. SVILUPPO NORD-OVEST S.G.R.p.A. Main office: Milan Main office: Turin COMMERCIAL UNION VITA S.p.A. VENTURA FINANCE S.p.A. Main office: Milan Main office: Turin Consolidated by net equity method SOCIAL AND ENVIRONMENTAL REPORT 2002 95

Tax collection Ancillary companies

MOMENTUM HOLDINGS LIMITED PIONEER INSTITUTIONAL INVESTMENT UNIRISCOSSIONI S.p.A. - Main office: Turin QUERCIA SOFTWARE S.p.A. Main office: Bermuda ◆❖ MANAGEMENT S.A. Main office: Verona Main office: Luxembourg ◆● Preferred Shares Issuers MOMENTUM ADVISORY LIMITED TRIVIMM S.p.A. Main office: Bermuda ◆❖ UNICREDITO ITALIANO - CAPITAL TRUST I ROLO PIONEER LUXEMBOURG S.A. Main office: Newark ◆ Main office: Verona Main office: Luxembourg ◆ MOMENTUM ASIA LIMITED UNICREDIT PRODUZIONI Main office: Bermuda ◆❖ UNICREDITO ITALIANO - CAPITAL TRUST II ZB INVEST D.O.O. - Main office: Zagreb ◆■ Main office: Newark ◆ ACCENTRATE S.p.A. MOMENTUM MARKETING LIMITED Main office: Milan Main office: Bermuda ◆❖ Financial companies UNICREDITO ITALIANO - FUNDING LLC I Main office: Dover ◆ UNICREDIT SERVIZI MOMENTUM ASSET MANAGEMENT CORDUSIO Società Fiduciaria per Azioni INFORMATIVI S.p.A. LIMITED - Main office: Bermuda ◆❖ Main office: Milan UNICREDITO ITALIANO FUNDING LLC II Main office: Milan Main office: Dover ◆ SPECIAL FUND MARKETING ISRAEL S+R Investimenti e Gestioni S.G.R.p.A. POMINVEST D.D. LIMITED - Main office: Raanan ◆❖ Main office: Milan Other financial companies Main office: Split ◆■ MOMENTUM AUSTRALIA (PTY) LIMITED FIDA SIM S.p.A. - Main office: Turin CREDITRAS PREVIDENZA SIM S.p.A. ◆❖ Main office: Milan ZAGREB NEKRETNINE D.O.O. Main office: Melbourne Main office: Zagreb ◆■ F.R.T. FIDUCIARIA RISPARMIO TORINO QUERCIA FUNDING S.r.l. - Main office: Verona MOMENTUM ASIA (HONG KONG) LIMITED SIM S.p.A. - Main office: Turin Main office: Hong Kong ◆❖ CARIVERONA IRELAND Plc - Main office: Dublin ◆ BAC FIDUCIARIA S.p.A. - Main office: KI7 (7) LIMITED - Main office: London ◆❖ Dogana Repubblica di San Marino ◆ C.R. TRIESTE IRELAND Ltd ◆ MOMENTUM UK LIMITED - Main office: London ◆❖ Main office: Dublin ZB BROKERI D.O.O. - Main office: Zagreb ◆■ EURO CAPITAL STRUCTURES Ltd MOMENTUM NEW YORK LIMITED ◆ Main office: Dover ◆❖ Leasing Main office: Dublin MORIAH S.A. - Main office: Liberia ◆❖ LOCAT S.p.A. - Main office: Bologna DRUKBANK Sp.zo.o. Main office: Zamosc ◆★ ORBIT ASSET MANAGEMENT LTD LEASING FABRYCZNY Sp.zo.o. Main office: Bermuda ◆❖ ✓ ◆★ TYRERESCOM Ltd Main office: Lublin Main office: Dublin ◆ UNICREDIT CAPITAL ITALIA ADVISORY PEKAO LEASING Sp.zo.o. - Main office: Warsaw ◆★ COMPANY S.A. - Main office: Luxembourg ◆ UNICREDIT DELAWARE Inc. Main office: Dover ◆ Asset management distribution Factoring CDM GRUPY PEKAO S.A. ◆★ ROLO PIONEER S.G.R.p.A. Main office: Bologna UNICREDIT FACTORING S.p.A. Main office: Warsaw Main office: Milan PEKAO FUNDUSZ KAPITALOWY Sp.zo.o UNICREDIT FONDI S.G.R.p.A. ◆★ Main office: Milan GRIFOFACTOR S.p.A. - Main office: Perugia Main office: Lodz PEKAO PIONEER PTE S.A. PIONEER INVESTMENT MANAGEMENT S.A. PEKAO FAKTORING Sp.zo.o. ◆★ Main office: Luxembourg ◆ Main office: Lublin ◆★ Main office: Warsaw

✓= CONSOLIDATED USING THE PROPORTIONAL METHOD

SERVICE COMPANIES ANCILLARY COMPANIES

Service companies

UNICREDIT SERVIZI PRIVATE S.p.A. CONSORZIO CA.RI.CE.SE. VIVACITY S.p.A. - Main office: Rome LIPA D.D. Main office: Milan Main office: Bologna Main office: Novi Marof ◆■ AGROCONS CENTRUM A.S. UNICREDIT SERVIZI CORPORATE S.p.A. I-FABER S.p.A. - Main office: Milan Main office: Bratislava ◆ MARKETING ZAGREBACKE Main office: Milan BANKE D.O.O. IMMOBILIARE LOMBARDA S.p.A. PEKAO DEVELOPMENT Sp.zo.o Main office: Zagreb ◆■ ACCESS Sp.zo.o Main office: Milan Main office: Warsaw ◆★ Main office: Warsaw ◆★ ZABA TURIZAM D.O.O. LOCAT RENT S.p.A. - Main office: Milan BDK CONSULTING - Main office: Luck ◆★ Main office: Zagreb ◆■ DEMIR SECURITIES ROMANIA S.A. Main office: Bucharest ◆ SELEZIONE TERZA S.r.l. E2E INFOTECH Ltd. ZANE BH D.O.O. Main office: Milan Main office: London ◆ Main office: Sarajevo ◆■ JUPITER NFI S.A. Main office: Warsaw ◆★ S.T.T. S.p.A. - Main office: Verona PEKAO FINANCIAL SERVICES Sp.zo.o UPI POSLOVNI SISTEM D.O.O. Main office: Warsaw ◆★ Main office: Sarajevo ◆■ TRADINGLAB INC. TLX S.p.A. - Main office: Milan Main office: New York ◆ PEKAO INFORMATYKA Sp.zo.o GRUPA INWESTYCYJNA UNICREDIT AUDIT S.p.A. Main office: Lodz ◆★ NYWING S.A. ALLIANZ ZB D.O.O. DRUSTVO Main office: Milan Main office: Warsaw ◆★ ZA UPRAVLJANJE OBVEZNIM S.S.I.S. SOCIETÀ SERVIZI INFORMATICI MIROVINSKIM FONDOM UNICREDIT CONSULTING S.r.l. SAMMARINESE S.p.A. HOTEL JAN III SOBIESKI Sp.zo.o Main office: Zagreb ◆■ Main office: Milan Main office: Borgo Maggiore Main office: Warsaw ◆★ (S. Marino) ◆ ALLIANZ ZB D.O.O. DRUSTVO UNICREDIT ENERGIA S.c.r.l. KRAJOWA IZBA ROZLI ZA UPRAVLJANJE DOBROVOLJNIM Main office: Milan CENTAR GRADSKI PODRUM D.O.O. CZENIOWA S.A. MIROVINSKIM FONDOM Main office: Zagreb ◆■ Main office: Warsaw ◆★ Main office: Zagreb ◆■ UNICREDIT INTERNATIONAL SERVICES (UNICIIS) S.r.l. CENTAR KAPTOL D.O.O. KOÇ FINANSAL HIZMETLER Main office: Rome Main office: Zagreb ◆■ Main office: Istanbul ◆ UNICREDIT SERVICELAB S.p.A. ISTRATURIST UMAG HOTELIJERSTVO Main office: Milan I TURIZAM D.D. - Main office: Umag ◆■ 96 SCHEDULE

QUALITY OF THE WORK

UniCredito Italiano

General Background

Composition by category, as at 31 December 2002 MEN WOMEN Full time Part time Full time Part time Total

Senior Managers 153 15 168 Managers 540 194 7 741 Other employees 413 4 261 93 771 Total employees of the Parent Company 1,106 4 470 100 1,680 Workers with temporary - - work contract as at 31.12.2002 16 Total as at 31.12.2002 including temporary work 1,696

Composition by seniority grade MEN WOMEN TOTAL Number % Number % Number %

up to 10 years 309 18.4% 187 11.1% 496 29.5% from 11 to 20 years 262 15.6% 102 6.1% 364 21.7% from 21 to 30 years 421 25.1% 227 13.5% 648 38.6% over 30 years 118 7.0% 54 3.2% 172 10.2% Total 1,110 570 1,680

Composition by age bracket MEN WOMEN TOTAL Number % Number % Number %

up to 30 years 51 3.1% 59 3.5% 110 6.6% from 31 to 40 years 262 15.6% 172 10.2% 434 25.8% from 41 to 50 years 463 27.5% 266 15.8% 729 43.3% over 50 years 334 19.9% 73 4.4% 407 24.3% Total 1,110 570 1,680 SOCIAL AND ENVIRONMENTAL REPORT 2002 97

Average seniority of service, and average age by category AVERAGE SENIORITY AVERAGE AGE Men Women Men Women

Senior Managers 17 12 47 44 Managers 17 18 44 42 Other employees 17 14 42 37 General average 17 16 45 41

Hires/entries Senior Other Managers Managers staff Total

Hires with no time limit 19 88 65 172 – including by other companies of the Group 11 66 31 108 Effected 1.07.02 by ex merged banks 8 96 192 296 Fixed-term hires Work training contract 99 Total hires/entries in Parent Company 27 184 266 477 Entries with temporary-work contract 20 Grand total 497

Reductions Senior Other Managers Managers employees Total

Voluntary resignations 12 15 27 Deaths 22 Exceeding of grace limits Dismissals 22 Terminations with pension right (also by means of incentive measures) 881733 Resignations by move to other banks/companies of the Group 3 19 16 38 Effected 1.07.02 at UniCredit Banca 20 130 200 350 Total reductions at Parent Company 31 171 250 452 Departures due to expiry of temporary labor contract 14 Grand total 466 98 SCHEDULE

Remuneration arrangements and career development

Career development Men Women Total

Promotions within professional areas 19 21 40 Staff within professional areas promoted to Management 9 9 18 Promotions within the Manager category 7 6 13 Managers promoted to Senior Managers 19 1 20 Total 54 37 91

Gross average compensation per category Amount E

Senior Managers 122,790 Managers 54,382 Other employees 28,942

Additional services rendered in 2002 by employees belonging to the professional areas Men Women Total

Time sheets of the hours lodged with the bank and then recovered 7,176 6,490 13,666 Hours compensated as overtime 38,055 10,434 48,489 Total additional services 45,231 16,924 62,155

Average composition in 2002 of employees belonging to the professional areas Total Total Net annual Full time Part time f.t. + p.t. f.t. equivalent working hours

Men 364 30 394 384 640,000 Women 267 120 387 346 570,000 Total 631 150 781 730 1,210,000 SOCIAL AND ENVIRONMENTAL REPORT 2002 99

Days of absence (full time equivalent) during 2002

Illnesses, accidents and doctor’s visits 10,400 Maternity leave 3,200 Family and personal reasons 1,950 Union leave 1,700 Blood donation 150 Marriage leave 400 Other reasons 2,000 Total 19,800

Average composition in 2002 of employees of the Parent Group Net annual Total Total working Full time Part time f.t. + p.t. f.t. equivalent days (f.t.e.)

Men 1,046 30 1,076 1,066 237,000 Women 480 128 608 564 125,000 Total 1,526 158 1,684 1,630 362,000

Credentials Senior Managers Managers Other employees Total Overall Men Women Men Women Men Women Men Women total

Degree 94 10 226 83 53 42 373 135 508 Diploma 59 5 295 109 218 237 572 351 923 Average certificate 19 9 129 73 148 82 230 Elementary certificate 17 2 17 2 19 Total 153 15 540 201 417 354 1,110 570 1,680

Type of degree

Number %

Economic and banking disciplines 220 43.31% Law 87 17.13% Political sciences 39 7.68% Engineering 26 5.12% Languages 10 1.97% Mathematics, statistics, economic statistics 10 1.97% Other degrees 116 22.83% 100 SCHEDULE

UniCredit Banca

General Background

Composition by category as at 31 December 2002 MEN WOMEN Full time Part time Full time Part time Total

Senior Managers 332 14 346 Managers 8,088 10 1,978 102 10,178 Other employees 9,646 211 6,379 2,621 18,857 Total employees of UniCredit Banca 18,066 221 8,371 2,723 29,381 Workers with temporary labor contract as at 31.12.2002 6 Total as at 31.12.2002 including temporary workers 29,387

Composition by seniority grade MEN WOMEN TOTAL Number % Number % Number %

up to 10 years 4,190 14.3% 3,607 12.2% 7,797 26.5% from 11 to 20 years 4,975 16.9% 3,383 11.5% 8,358 28.4% from 21 to 30 years 7,742 26.4% 3,795 12.9% 11,537 39.3% over 30 years 1,380 4.7% 309 1.1% 1,689 5. 8% Totale 18,287 11,094 29,381

Composition by age bracket MEN WOMEN TOTAL Number % Number % Number %

up to 30 years 1,408 4.8% 1,958 6.7% 3,366 11.5% from 31 to 40 years 4,967 16.9% 4,167 14.1% 9,134 31.0% from 41 to 50 years 7,505 25.6% 4,103 14.0% 11,608 39.6% over 50 years 4,407 15.0% 866 2.9% 5,273 17.9% Total 18,287 11,094 29,381 SOCIAL AND ENVIRONMENTAL REPORT 2002 101

Average service seniority and average age by category

AVERAGE SENIORITY AVERAGE AGE Men Women Men Women

Senior Managers 22 20 48 46 Managers 19 18 44 42 Other employees 17 14 42 37 General average 18 15 43 38

Hires/entries Senior Other Managers Managers staff Total

Hires with no time limit 10 51 421 482 – including other banks/companies of the Group 5 34 86 125 Effected 1.07.02 by the Parent Company 20 130 200 350 Fixed term hires 333 333 Work training contract 92 92 Total hres/entries at UniCredit Banca 30 181 1,046 1,257 Entries with temporary work contract 40 Grand total 1,297

Reductions Senior Other Managers Managers staff Total

Voluntary resignations 18 207 322 547 Deaths 51419 Exceeding of grace limits 11 Dismissals 3912 Termination of fixed-term contracts 1 373 374 Terminations with pension right (also by means of incentive measures) 16 190 227 433 Resignations by move to other banks/companies of Group 5 44 19 68 Effected 1.07.02 at Parent Group 8 96 192 296 Total reductions at UniCredit Banca 48 545 1,157 1,750 Departures due to expiry of temporary labor contract 117 Grand total 1,867 102 SCHEDULE

Remuneration arrangements and career development

Development of careers Men Women Total

Promotions within the professional areas 879 726 1,605 Staff in the professional areas promoted to Management 499 280 779 Promotions within the category of Manager 742 311 1,053 Managers promoted to Senior Managers 44 20 64 Total 2,164 1,337 3,501

Gross average compensations by category Amount E

Senior Managers 106,246 Managers 47,390 Other employees 29,577

Additional services rendered in 2002 by employees of the professional areas

Men Women Total

Time sheets of the hours lodged with the bank then recovered 283,264 208,768 492,032 Hours compensated as overtime 659,125 466,650 1,125,775 Total additional services 942,389 675,418 1,617,807

Average composition in 2002 of employees belonging to the professional areas Total Total Annual net Full time Part time f.t. + p.t. f.t. equivalent working hours

Men 10,048 188 10,236 10,172 17,000,000 Women 6,531 2,509 9,040 8,187 13,500,000 Total 16,579 2,697 19,276 18,359 30,500,000 SOCIAL AND ENVIRONMENTAL REPORT 2002 103

Days of absence (full time equivalent) during 2002

Illnesses, accidents and doctor’s visits 241,000 Maternity leave 103,700 Family and personal reasons 37,000 Union leave 55,500 Blood donation 2,800 Marriage leave 4,500 Other reasons 52,300 Total 496,800

Average composition in 2002 of the staff of UniCredit Banca Net Annual Total Total Working Full time Part time f.t. + p.t. f.t. equivalent days (f.t.e.)

Men 18,412 195 18,607 18,541 4,130,000 Women 8,431 2,598 11,029 10,146 2,235,000 Total 26,843 2,793 29,636 28,687 6,365,000

Credentials Senior Managers Managers Other employees Totals Grand Men Women Men Women Men Women Men Women total

Degree 132 4 2,229 476 1,893 1,763 4,254 2,243 6,497 Diploma 200 10 5,766 1,543 6,376 6,492 12,342 8,045 20,387 Average certificate 101 61 1,472 740 1,573 801 2,374 Elementary certificate 2 116 5 118 5 123 Total 332 14 8,098 2,080 9,857 9,000 18,287 11,094 29,381

Type of degree Number %

Economic and banking disciplines 3,528 54.30% Law 1,486 22.87% Political sciences 667 10.27% Engineering 45 0.69% Languages 211 3.25% Mathematics, statistics, economic statistics 139 2.14% Other degrees 421 6.48% 104 SCHEDULE

Group’s stock-ownership plan

Free stock allotment to employees generally 2002 2001

Number of recipients 33,976 (a) 26,018 (b) Number of shares allotted 16,020,884 (c) 10,518,062 (d) Percentage of authorized capital 0.25 0.17

NOTE: the data in the table includes shares allotted to the Managing Director, Mr Profumo as an employee. (a) including 1,313 staff of UniCredito Italiano S.p.A and 32,663 staff of the banks and the Group. (b) including 2,427 staff of UniCredito Italiano S.p.A and 23,591 staff of the banks and the Group (c) including 623,634 allotted to staff of UniCredito Italiano S.p.A and 15,397,250 allotted to staff of the banks and the Group. (d) including 979,758 allotted to staff of UniCredito Italiano S.p.A and 9,538,304 allotted to staff of the banks and the Group.

Free stock allotment to middle management 2002 2001

Number of recipients 2,217 (a) 1,970 (b) Number of shares allotted 2,742,638 (c) 1,956,250 (d) Percentage of authorized capital 0.04 0.03

(a) including 106 staff of UniCredito Italiano S.p.A and 2,111 staff of the banks and of Italian companies of the Group. (b) including 84 staff of UniCredito Italiano S.p.A and 1,886 staff of the banks and of Italian companies of the Group. (c) including 191,080 allotted to staff of UniCredito Italiano S.p.A and 2,551,558 allotted to staff of the banks and of Italian companies of the Group. (d) including 98,000 allotted to staff of UniCredito Italiano S.p.A and 1,858,250 allotted to staff of the banks and of Italian companies of the Group. SOCIAL AND ENVIRONMENTAL REPORT 2002 105

MARKET AND TERRITORY Customers relation

Complaints broken down by type of product/service/activity

Semester I 2002 Semester 2002 II absolute Delta Total 2002

C/C and savings deposits 1,614 1,122 - 492 2,736 Purchase and sale of securities 591 502 - 89 1,093 Mutual fund 141 165 24 306 Asset Management 67 80 13 147 Other investment products 32 11 - 21 43 Opening of credit 205 207 2 412 Consumer credit and personal loans 79 78 - 1 157 Loans 376 230 - 146 606 Special receivables 13 25 12 38 Other forms of financing 43 41 - 2 84 Transfers 94 78 - 16 172 Remunerations and pensions 25 49 24 74 Credit cards 386 384 - 2 770 Automated teller machines 351 310 - 41 661 POS 121 93 - 28 214 Checks 217 185 - 32 402 Bills 49 50 1 99 Other collection and payments services 82 71 - 11 153 Insurance policies damage/injury branch 4 12 8 16 Insurance policies life branch 125 160 35 285 Other products and services 342 312 - 30 654 Organization in general 239 149 - 90 388 Total 5,196 4,314 - 882 9,510 106 SCHEDULE

ENVIRONMENT, HEALTH AND SAFETY

Direct environmental aspects

UniCredito Italiano waste 2000 2001 2002

Kg RSU/employee 42.82 31.68 26.68 Kg packaging/employee 20.99 10.92 25.52 Kg glass and tin/employee 3.01 3.016 1.27 Kg plastic/employee 2.89 5.62 5.59 Kg toner/employee 3.09 3.09 4.96 Kg paper/employee 123.77 56.65 88.03

Management of safety at work

Number of accidents Accidents Accidents Società on premises on trips

UCI 611 UniCredit Banca 83 226 Total 89 237 SOCIAL AND ENVIRONMENTAL REPORT 2002 107 108 PricewaterhouseCoopers opinion SOCIAL AND ENVIRONMENTAL REPORT 2002 109 110 GLOSSARY Glossary

ABI Correspondent banking documented, periodic and objective Italian Banking Association. On-going relationship with a bank in assessment of the organisation’s another market where we are not performance, management system and Assessment represented by a branch of our own. processes to protect the environment in An evaluation based on an appraisal. order to facilitate management controls Customer care over conduct that could have an impact Asset management In general, all actions performed for a on the environment, and to assess The activity of managing financial customer of the company in order to compliance with environmental policy investments of third parties. provide advice in the selection and including the organisation’s purchase of goods and services and to environmental goals and targets. Auditors provide after-sales assistance. It also Properly qualified staff that carry out includes making information available Environmental impact auditing activities, and who are through call centres and the repair and Any positive or negative change to the independent of the activities to be replacement of defective products. environment resulting in whole or in part audited. from the activities, products or services Customer satisfaction of an organisation. Benchmark Developing a high-quality relationship Objective reference parameter for with customers. Global reporting initiative financial investments, which may also Institution whose objective is to expand consist of well-known indices (MIB 30, EMAS and spread the application of guidelines Dow Jones, etc.) or other indices EcoManagement and Audit Scheme – for social and environmental reporting. deemed representative of the European Council Regulation 761/2001 investment’s risk/return profile. on the voluntary compliance by industrial Green purchasing companies and services with a Ecological management of purchases. Corporate European Community ecological The customer segment consisting of management and audit system. Home banking medium and large companies. Telephone or Internet connection to Environmental analysis perform transactions on a current Corporate citizenship Exhaustive initial analysis of account and/or check its status. The constant commitment of a company environmental problems, environmental to integrate market requirements and impact and performance connected with Hour bank new social responsibilities into its the operations of an organisation. Contractual mechanism covering strategies and actions. additional service that is recovered Environmental aspect and/or compensated as overtime work. Corporate Governance Element of the activities, products and The set of criteria and processes for services of an organisation that have an Information Technology (IT) administering a company, which are impact on the environment. Abbreviation used to indicate all aspects aimed at creating economic value for of the management and processing of shareholders and benefits for other Environmental audit information using computers in a stakeholders. Management tool including a systematic, business. SOCIAL AND ENVIRONMENTAL REPORT 2002 111

Intangible resources includes individuals, professionals, Value added Intangible assets on which an economic shopkeepers and artisans. Represents the wealth produced by the value can be placed and have a company during the period, which is separate asset value, that are able to Stakeholder calculated as the difference between generate economic benefits (patents, Parties that have an interest in a gross production and the consumption of trademarks, reputation, organisational company, who, for various reasons goods and services. structure). interact with the company’s operations by sharing in profits, influencing its Intranet performance, and assessing its Internet network with access limited to economic, social and environmental the company’s staff. impact.

ISO 14001 Stock options Standard regarding environmental Contracts, which provide the option to management systems enacted by the purchase a company’s shares and are International Standard Organisation. issued with dedicated capital increases, and which grant the right to Management system purchase underlying shares within a A part of the overall corporate pre-established term at a pre-set management system comprising the price. They are used as a form of organisational structure, responsibilities, supplementary compensation to practices, procedures, processes and provide incentives and gain the loyalty resources for developing and of individual employees, specific implementing policy in the areas of the employee categories or all environment and employee health and employees. safety. Sustainable growth Private Banking “Development that satisfies current Customer segment consisting of high net needs without compromising the ability worth individuals. of future generations to satisfy their needs” (Bruntland Report – WCED – Rating World Commission for Economic Assessment of the default risk of a Development, 1987). specific debtor, company or public agency. This assessment is expressed UNEP by means of a classification of the United Nations debtor's standing. Environmental Programme Environmental programme of the United Retail Nations aimed at promoting sustainable Customer segment that primarily growth with companies and citizens. 112

The preparation of the 2002 Social and Environmental Report was made possible due to the passion and priceless contribution of our colleagues, who were actively involved in gathering information and analysing the data provided.

This edition is also available at www.unicredit.it and can be requested from:

UniCredito Italiano – Staff Bilancio Sociale & Ambiente Direzione Corporate Identity Via San Protaso, 1/3 - 20121 Milan Fax +39 02.88623924

E-mail: [email protected]

Prepared by the Social and Environmental Report staff of the Corporate Identity Department Work group: Coordinated by Riccardo Della Valle, Franziska Cuter, Lucio Del Rio, Valentina D’Intino, Sonia Ortalli, Marcello Pellini, Ferruccio Torboli (photographs) With the collaboration of units of UniCredito Italiano, UniCredit Banca, UniCredit Banca d’Impresa, UniCredit Private Banking and the other Group companies.

Support provided by EHS Gestione s.r.l., Milan SOCIAL AND ENVIRONMENTAL REPORT 2002 113 Questionnaire

Dear reader, We ask you to kindly devote a minute or two to completing the following questionnaire, to help us to draft a document more and more responsive to your expectations and requirements. You can print this version and send it by fax or mail it to our contacts. Alternatively, the electronic version is available at the www.unicredit.it website.

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Express one or more opinions on the following subjects: Innovative Interesting Superficial mission, values, conduct guidelines corporate governance calculation and breakdown of value added quality of labour market and territory environment, health and safety security and privacy listening and dialogue corporate citizenship

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