Considering environmental and social risk in loan management is required not only for large-scale projects screened using Equator Principles, but also for the transactions of some types of Bank customers, most exposed to these risks.

To identify the most effective procedures to assess social/environmental risks associated with the activities of business customers, the rating assessment model already includes a specific questionnaire on company exposure to these risks.

During 2016, activities already adopted in 2015 to assess environmental risk were completed. In particular, the questionnaire on environmental risks to give to customers was revised and the target group of business customers was analysed, using criteria relating to their relative economic segments and size.

During the test stage, a defined sample of customers will be requested to compile and sign this questionnaire. The data obtained will be used by the Bank, along with the other qualitative and quantitative information, in the overall assessment of the credit worthiness rating of the customer/applicant and included in the loan granting process. Based on test results, procedures for adopting the process on a larger scale will be evaluated.

In September 2016, Intesa Sanpaolo signed an agreement with the Christian Union of Business Executives (UCID), with the aim of promoting the personal commitment of businessmen and women to adopting virtuous behaviour for the common good of all stakeholders. According to the agreement, Intesa Sanpaolo will take into account qualitative information processed by the GRSI® model when assessing the credit rating of companies which are members of the UCID. The GRSI® model measures the degree of social and environmental risk of a business and correlates that risk with the company's competitive strength and ability to create economic value, through safeguarding social and environmental aspects of management, in relation to a reference benchmark.