In 2023, CDP Group experienced substantial growth in the proportion of total resources pledged to address the four challenges outlined in the Strategic Plan, aligning with the UN's 2030 Agenda for sustainable development (20.1 billion euro): specifically, 83% of the resources were allocated to these objectives, compared to 68% in 2022.
This is one of the key findings to emerge from the fourth Integrated Annual Report of Cassa Depositi e Prestiti, a document outlining the significant impact of Cassa Depositi e Prestiti's activities on the community, businesses and infrastructure which has been released to coincide with Earth Day - World Earth Day.
Against this backdrop, the Group also made significant progress with the objectives of the ESG Plan, including the goal of having at least 10 ESG policies as part of the Strategic Plan 2022-2024: a milestone, impressively accomplished one year ahead of schedule. Furthermore, the carbon footprint of the financing portfolio decreased by 7% compared to 2022, meeting the targets set by the Board of Directors in June 2023.
In accordance with EU Regulation 2020/852, which introduced the taxonomy of eco-friendly economic activities, the Group released its inaugural Green Asset Ratio (“GAR”) which assesses the degree of alignment of the Group's portfolio with the climate and environmental objectives outlined in the European Taxonomy. Specifically, the assets of the Group (including CDP SpA and companies subject to management and coordination) are categorised as 6.3% green based on capital expenditure and 3.5% green based on turnove.
Resources are categorised based on the four challenges outlined in the Strategic Plan 2022-2024: inclusive and sustainable growth, climate change and ecosystem protection, digitisation and innovation and rethinking the value chain.
Inclusive and sustainable growth
The first challenge is associated with enhancing social infrastructure, with an allocation of 2.4 billion euro, primarily supporting the construction, modernisation or adaptation of almost 400 schools and 38 healthcare facilities as well as supporting land redevelopment and reconstruction projects, resulting in over 1.2 million square metres of redevelopment alongside the construction of new social housing. In particular, through CDP Real Asset, 276 highly energy-efficient social housing units (rated higher than class A) were constructed, benefiting approximately 700 individuals; additionally an urban regeneration project was undertaken in the former Olympic Village in Turin resulting in the creation of accommodation, providing 384 beds for off-campus students, temporary workers and city residents.
Furthermore, leveraging CDP SpA's dual function as both a lender and manager of public funds, resources were allocated to the construction of 481 beds in social housing and 15,248 beds in student housing.
Climate change and ecosystem protection
The second challenge is geared towards supporting the country in the energy transition, land preservation and the circular economy, areas for which an additional 2.4 billion euro has been earmarked in 2023, mainly addressed to local governments and businesses. They were realised for land protection interventions, financing of multi-utilities and municipal projects for the management of integrated water services and the waste cycle, as well as for energy distribution and generation.
For example, a funding of 50 million euro was granted to Be Charge for the construction of one of the largest high-speed charging networks in Europe to promote electric mobility.
Digitisation and innovation
Regarding the third challenge, the Group pledged approximately 2.4 billion euro by collaborating with public administrations in digital transformation initiatives and investing in high-tech enterprises. Efforts were made to promote the development of connectivity infrastructure and enhance digital security measures.
In 2023, for instance, 60 million euro was granted to Stevanato Group to be allocated to new investments in technological innovation. This transaction qualifies as "ESG linked" because, upon reaching certain targets aimed at reducing environmental impact, the company will receive a benefit in the form of reduced financing costs.
Rethinking the value chain
The fourth challenge encompasses three distinct focus areas: strategic supply chains, transportation and logistics hubs and International Cooperation & Development Finance, The majority of resources, totaling 9.4 billion euro, are directed towards this sector.
Significant strategic importance was attributed to the transport and logistics nodes sector, marked by upgrades to over 940 kilometers of road network and investments exceeding 130 million euro in ports and airports. One of the most noteworthy transactions is the 375 million euro loan designated for the modernisation of the Autostrade Alto Adriatico network.
Our driving forces: people, stakeholders and financial assets
The achievements outlined in the Integrated Annual Report are the result of the ongoing contributions of the Group's approximately 2,000 employees, effective management of financial resources and enhanced communication with stakeholders.
This commitment has resulted to an increased emphasis on training, totaling 90,000 hours (a 41% rise compared to 2022), marked by the first edition of the ESG Master and on fostering Diversity, Fairness and Inclusion, resulting in 47% of new executives being women.
Additionally, in 2023, there was a strengthening of the dialogue with stakeholders - including ESG rating agencies and civil society - resulting in the adoption of the first dedicated Policy. This initiative involved approximately 200 civil society representatives in sustainability policy consultations, the establishment of the ESG Community and the organisation of the European multi-stakeholder event Eyes on a Sustainable Future.
Moreover, as a testament to the Group's commitment to local communities, over 350 employees volunteered more than 3,000 hours of their time.
Learn more about our approach to sustainability in the CDP Group's Integrated Annual Report 2023 and visit the dedicated section of the website.