Corporate governance at illimity places great emphasis on the tangible adoption of diversity, expertise and transparency, with the Board of Directors having adopted the new code of conduct approved by the Corporate Governance Committee.

The corporate governance system matches best international practices and sets out a Board of Directors with numerous independent members (11 of 13) and people of high standing that have key and complementary expertise and experience.

Since the company was listed, we have adopted the Corporate Governance Code for Listed Companies first approved by Borsa Italiana's Corporate Governance Committee in March 2006 and regularly updated, the last time in July 2018. In December 2020, the Board of Directors resolved to adopt the new Corporate Governance Code approved by the Corporate Governance Committee.

At the Extraordinary General Meeting of 21 February 2022, shareholders gave their majority approval to the new version of the Corporate Bylaws by which the Bank adopts a “one-tier” management and control model. Shareholders also approved the proposal by which the Board of Directors should lead the Company by pursuing sustainable success for the purpose of creating long-term value for shareholders, taking into account the interests of illimity’s significant stakeholders.

Governance of Sustainability

Sustainability issues are monitored in accordance with the best practices by a Board Committee that was specifically formed for this purpose in January 2020 and has four members.

illimity's Sustainability Board Committee is tasked with supporting the Board of Directors and it has the power to advise and formulate proposals in relation to assessments and decisions on sustainability issues. The Committee promotes a responsible and sustainable culture in the Group and makes proposals to the Board for the definition of medium and long-term sustainability goals.

The Board of Directors approves the materiality matrix created through stakeholder engagement and the Consolidated Non-financial Disclosure, which represents and communicates the bank's commitment, results and goals for improvement on sustainability themes.

The Strategy, Sustainability & Investor Relations Department oversees the Group’s sustainability activities and controls the monitoring and reporting process for these matters, in constant collaboration with the Group’s various Divisions and Departments.

Then there are the ESG Ambassadors, staff identified in the various Divisions and Departments who are in charge of developing specific ESG initiatives and fostering a sustainability culture within their teams.

We place great value on talent, expertise and diversity for people both within and outside the company, adopting initiatives designed to unlock people’s potential.

When speaking about human capital, many factors must be considered, including the company culture, the expertise and diversity of employees, the welfare initiatives, and the compensation policies, to mention only some.

At illimity, human resources management is based on three fundamental pillars: talent, engagement and digitalisation.

Across every level of our organisation, we provide people with opportunities to grow based on training and the development of personal and professional skills. Uncovering talent starts right from recruitment and follows employees throughout their career thanks to personalised development plans. Engagement initiatives ensure every illimiter feels part of a shared project. The company's flat structure encourages the sense that every individual can have an impact on the end results and fosters communication between employees and their bosses. Process digitalisation helps simplify certain aspects of the work lives of employees.

Diversity and inclusion are essential, distinctive elements. At illimity, we work hard to go beyond physical, communication and cultural barriers, adopting an approach that places great importance on inclusion. We cultivate diversity in gender, age, culture, skills and experience, forging a heritage on which to build value and trust. On 31 December 2021, the Group had 725 employees from 20 industries, over 300 companies and 25 nationalities. The average age is 36 and the most representative generation is the junior millennials, meaning from 25 to 32 years old.

The company's welfare policy is also cutting edge. The flexible benefits system enables each illimiter to customise his or her welfare according to individual and family needs.

This is truly a system of policies, initiatives and actions that place the individual at the centre.

Achieving business targets must produce, directly and indirectly, positive externalities that can foster sustained and sustainable growth of the business and entrepreneurial fabric in which illimity operates.

Supporting SMEs

Our purpose is to provide SMEs with growth potential with loans when such companies require specialist support or have had problems. We guide SMEs through a process of development, restructuring and relaunching, which brings a positive social impact and knock-on effect, helping to keep jobs and bolster local manufacturing.

Total investments made in 2021 with the specific objective of turning around companies in financial difficulty amounted to 249 million euros. Financing with effects and benefits in the environmental sphere totalled 37 million euros in operations impacting the circular economy and renewable energy sectors.

Distressed credit servicing

Our Distressed Credit Division is committed to helping struggling businesses, engaging in constructive dialogue that will help them resolve their debts and potentially start operating again. The division adopts a very professional approach to such relations, identifying focused actions designed to find mutually agreeable out-of-court settlements that speed up the resolution of such matters.

In 2019, we recognised that the energy industry could become an area of specialisation and so a specific desk was established, with technical and legal professional experience in energy and the environment. The business model is built on a partnership with a party with a solid industrial track record and sets out direct action in managing installations to get them back up to full green production, while helping to avoid emissions of greenhouse gases.

Responsibility in illimity SGR’s investments

Consistent with the Group’s sustainability strategy, illimity SGR directs the investment decisions it takes for its Funds by respecting environmental, social and governance (ESG) matters, with the aim on the one hand of generating sustainable value over time, which also takes into consideration the economic, social and environmental impact that individual businesses can produce at a local level, and on the other of satisfying investors’ interests, mitigating any financial, operating and reputational risks. Further information can be found in the ESG Investment Policy (abstract).

Given the United Nations’ principles on the approach to business and human rights, and consistent with the strategic orientations of the Bank and the guidelines expressed in its credit strategies, illimity has also set out the economic sectors excluded from its investments in greater detail. Further information can be found in the Consolidated Credit Procedure.

Our business sustainability combined with our focus on the environmental, social and economic impact of our activities drives our contribution to social well-being and the environment.

The business model adopted by the illimity Group, with a 100% digital infrastructure that is entirely on the cloud, is designed to reduce our direct environmental impact and use resources more efficiently. Right from our creation, we have been committed to monitoring and reporting our energy consumption, our greenhouse gas emissions and waste generation, partly in response to the rules on environmental protection set out by constantly developing EU regulations and Italian and regional laws.

illimity's business model, with no branch offices and a digital, cloud-based infrastructure, intrinsically aims at combating climate change. Despite this, since 2020 the Group has launched a project approach, aimed at defining a carbon neutrality strategy based on calculating the company's carbon footprint, identifying ways of improving efficiency, reducing emissions and selecting certified carbon credits to offset the company’s non-avoidable emissions (Scope 1 e Scope 2).

During 2021 the Group purchased gradually increasing percentages of electricity supplied with Guarantees of Origin (GOs), electronic certificates issued by the Energy Services Manager (Gestore dei Servizi Energetici - GSE) which guarantee that the energy consumed has been produced from renewable sources, to mitigate the environmental impact arising from its usage. As of today, GOs cover the whole of illimity’s electricity needs and a portion of those of neprix, representing 32% of the consumption of the energy purchased by the Group.

In 2020, with the spread of the Covid-19 outbreak in Italy, the Bank swiftly developed a series of initiatives to help protect the health of everyone who works for or with illimity, and to support our corporate and retail clients.