European commercial bank UniCredit announced its 2030 targets for its €3.1 billion (USD$3.36 billion) global shipping portfolio.
UniCredit will seek to reduce the physical intensity of its Scope 1 and 3 emissions by 30% compared to a 2022 baseline, in part by providing financing for next-generation vessels and retrofitting existing ships.
Unlike absolute emissions targets, intensity emissions targets measure emissions in relation to a physical or economic metric, allowing businesses to establish emissions reduction objectives while factoring in growth.
The bank, which has a goal to reach a Net Zero lending and investment portfolio by 2050, signed on to the Net-Zero Banking Alliance (NZBA) in October 2021.
Fiona Melrose, Head of Group Strategy & ESG at UniCredit, said:
“Today’s announcement marks another important step as our Group progresses towards Net Zero and continues to contribute to a just and fair transition for all our stakeholders…. Our new target for shipping seeks to contribute to the decarbonisation of international maritime trade and passenger transport. With today’s disclosure, we have now outlined our ambitions for seven of the most carbon-intensive sectors, including an industry-leading phase-out policy for coal, a clear sign of how we are embedding ESG in our financing activities.”
