2019 Consolidated Non-financial Statement in accordance with Legislative Decree No. 254 of 2016 This is an English translation of the original Italian document. In cases of conflict between the English language document and the Italian document, the interpretation of the Italian language document prevails. Boards, Management, Auditors BOARD OF DIRECTORS Chairman Gian Maria GROS-PIETRO Deputy Chairperson Paolo Andrea COLOMBO Managing Director and Chief Executive Officer Carlo MESSINA (a) Directors (*) Franco CERUTI Anna GATTI Rossella LOCATELLI Maria MAZZARELLA Fabrizio MOSCA (**) Milena Teresa MOTTA (**) Luciano NEBBIA Alberto Maria PISANI (**) (***) Bruno PICCA Livia POMODORO Andrea SIRONI (****) Maria Alessandra STEFANELLI Guglielmo WEBER Daniele ZAMBONI Maria Cristina ZOPPO (**) MANAGER RESPONSIBLE FOR PREPARING THE COMPANY’S FINANCIAL REPORTS Fabrizio DABBENE INDEPENDENT AUDITORS KPMG S.p.A. (a) General Manager (*) A member of the Board of Directors and the Management Control Committee self-suspended from 13 December 2019 and stepped down from 2 March 2020 (**) Member of the Management Control Committee (***) Chairman of the Management Control Committee (****) Appointed by co-option on 2 December 2019 following the resignation tendered by Giovanni Gorno Tempini 3 Content Letter to stakeholders 6 Integrity in corporate conduct 51 Methodology 9 Fighting against corruption 52 Combating money laundering 54 IDENTITY AND PROFILE 10 Compliance with tax regulations 55 Group Presentation 11 Protection of free competition 57 Business Model 13 Privacy protection 57 Company value and solidity 14 Compliance with labour laws 58 The 2018-2021 Business Plan 14 Audits 59 Economic and financial performance and Disputes and fines 60 distribution of the value generated 15 Vision and Values 19 SOCIETY 61 Commitment to domestic and international initiatives Quality and innovation in customer relations 65 and the United Nations Sustainable Development Goals 20 Service quality 65 Sustainability indices, rankings and awards 26 Digitalisation, innovation and accessibility 69 Materiality analysis 28 Customer protection and responsible sales 72 Customer health and safety 73 GOVERNANCE AND MANAGEMENT OF RISKS 33 Access to credit and financial inclusion 76 Governance structure 34 Financial inclusion of vulnerable people 76 The Board of Directors 34 Supporting the third sector 79 The internal control and risk management Education and spread of financial culture 80 system 36 Supporting production and innovation 82 Shareholder 37 Responsible asset management and customer Sustainability Governance 39 protection 88 Implementation and governance of the Code of Sustainable investments 88 Ethics 40 Sustainable insurance 93 Management of environmental, social and governance risks 42 Relations with the community 95 Monitoring of ESG and reputational risks 43 Contribution to the community 95 Management of potential risks and impacts related to Promotion of culture for social cohesion 102 climate change 46 Responsibility towards the supply chain 107 4 EMPLOYEES 109 Green culture and initiatives 142 Employment protection 112 HUMAN RIGHTS 145 Job protection 112 STAKEHOLDER ENGAGEMENT ACTIVITIES AND Labour Relations 113 RESULTS 149 Employee growth and development 113 Relations with stakeholders: engagement and People and Digital Transformation 114 listening 150 Assessment and incentive systems 115 Stakeholder map 150 Training 116 Engagement initiatives and issues covered 150 Talent Development 117 Summary of issues emerging from the stakeholder Inclusion and Diversity management 117 engagement process 152 Employee well-being 119 IMPROVEMENT OBJECTIVES 154 Welfare and quality of life in the company 119 Company Climate 122 INDICATORS* 157 Health and safety 123 TCFD RECOMMENDATIONS 195 ENVIRONMENT AND CLIMATE CHANGE 127 PRINCIPLES FOR RESPONSIBLE BANKING 196 Direct environmental impacts 130 Greenhouse gas emissions and energy GRI CONTENT INDEX 198 consumption 131 Responsible management of resources 134 GRI IMPACT BOUNDARIES 215 Green Economy 137 Loans and services for the green and circular AUDITORS’ REPORT 217 economy 137 CONTACTS 221 5 102-14 Letter to stakeholders Also in 2019 Intesa Sanpaolo confirms its ability to position itself among the most solid and profitable European banks, capable of generating benefits for all stakeholders and being the engine of inclusive and sustainable growth; the Group also continues to be the engine of the social economy in Italy. In line with the commitments undertaken with the 2018-2021 Business Plan, the Group continues to act as a point of reference in social, cultural and environmental sustainability, as evidenced by its positioning within the main sustainability indices and rankings. Intesa Sanpaolo is indeed the only Italian bank to feature in the Dow Jones Sustainability Indices, in the CDP Climate A List and in the Corporate Knights ranking of the world’s 100 most sustainable companies. In 2019, the Group's commitment to sustainability was further strengthened by joining three important United Nations initiatives, which are part of the achievement of the UN Sustainable Development Goals: the Principles for Responsible Banking, launched in September 2019 to bring the banking sector closer to the Sustainable Development Goals and those set in the 2015 Paris climate agreement; the Principles for Sustainable Insurance, with the participation of Intesa Sanpaolo Vita, for the inclusion of sustainability and ESG criteria also in the insurance business; and finally the Women's Empowerment Principles, for the promotion of gender equality and women's professional development. With the Principles for Responsible Investments, signed by Eurizon as early as 2015, the Intesa Sanpaolo Group is one of the few European financial groups to have joined all the main United Nations initiatives related to its business in the field of sustainability. Intesa Sanpaolo continues to be a driving force in the growth of Italy’s real economy with approximately 58 billion euro in new medium/long-term loans in 2019, approximately 48 billion euro of which was disbursed in Italy, and around 38 billion of which was granted to households and SMEs. The Group is a point of reference for all companies capable of overcoming conditions of temporary difficulty: in 2019 about 18,500 Italian companies returned from non-performing to performing status, protecting around 93,000 jobs. The ability to act as the engine of sustainable and inclusive development is also substantiated with the Group's disbursements for social and environmental purposes, equal to approximately 6 billion euro in 2019 and accounting for over 10% of the total: approximately 3.8 billion euro is comprised of high-social impact loans and around 2.2 billion euro is directed towards supporting the green economy and the circular economy. The high-social impact loans include microcredit and anti-usury initiatives (75 million), support for social enterprises and the non-profit sector (over 200 million), subsidised loans for communities and people impacted by natural disasters and emergencies (over 135 million) and loans to vulnerable categories or those who find it difficult to access credit (3.4 billion). The commitment to ensuring credit access to excluded individuals or those who are unlikely to fall within the traditional financial channels has also translated into "per Merito", the first initiative activated by Fund for Impact, with 28 million euro being granted to over 3,200 students. Investment in young people, their education and job promotion is also tangible in the Giovani e Lavoro programme, created in collaboration with Generation Italy, a job orientation project involving 1,000 companies and training 700 young people in the classroom. In the context of the loans for the green economy and the circular economy, 2019 saw the launch of the activity envisaged in the 5 billion credit plafond dedicated to the circular economy: out of approximately 250 projects analysed, around 60 were funded for a total amount of 760 million, based on criteria developed in partnership with the Ellen MacArthur Foundation. The first 750 million Sustainability Bond successfully placed by the Bank in November 2019 is dedicated to the circular economy, following the Green Bond issued in 2017 for 500 million euro, entirely allocated for the funding of 77 projects, which allowed an annual saving of more than 353,000 tonnes of CO2 emissions. Furthermore, Intesa Sanpaolo has continued to pursue its strategic commitments in terms of digitisation and multichannel projects, maintaining the centrality of the customer, the care of the relationship and the excellence of the service offered as its primary objective, establishing itself as Italy's leading digital bank and among the top three European banks with around 9.2 million multi-channel customers, equal to over 78% of its customer base. In the belief that the innovation challenge in Italy plays a role of primary importance in the development of the new economy, the Group has continued with its start-up development and enhancement programme, activating 6 acceleration programmes on over 120 start-ups. 6 102-14 The commitment to sustainable investments continued and the Group confirms its position as the leading operator in Italy with 39 funds (ethical and ESG), approximately 8.4 billion worth of assets and a market share of over 27%. Consistently with its commitment to the social environment and the community, the Group disbursed over 86 million euro as contribution, thus