ESG Global Update

Italy’s largest bank to cut coal ties by 2028

UniCredit in Italy has set a goal to reduce its exposure to coal to nil by 2028, a policy document shows. UniCredit will not offer banking services to any coal-related projects, including those that are to maintain, improve or cut emissions at coal power plants. All lending for thermal coal projects will be ending in 2023, as per the bank’s statement in 2016.

Those with a credible plan for exiting the coal business by 2028, with no more than a quarter of revenue driven by coal-related activities, will be allowed to stay a client. UniCredit is the first Italian financial institution to put a high-quality coal policy in place, according to research by a non-government organisation, Reclaim Finance.