Policy of Unicaja Banco, S.A. and Grupo Unicaja Banco

The "Sustainability Risk Integration Policy in the Decision-Making Process and when Providing Advice on Grupo Unicaja Banco's Investment or Insurance Products" was approved by the Board of Directors at its meeting held on 25 February 2021.

Link to Sustainability Risk Integration Policy in the Decision-Making Process

Unimediación, S.L. (a Banking-Insurance Operator) endorsed this Policy through a resolution adopted by its Board of Directors on 23 February 2021, while Unigest, S.A. (a Collective Investment Undertaking Management Company) formally approved its endorsement of said policy by means of a resolution adopted by its Board of Directors on 25 February 2021. Unicorp Patrimonio, S.A.U. (a Securities Company) and Unión del Duero, S.A. (a Life Insurance Company) endorsed the Group's policy through resolutions respectively adopted by their Boards of Directors on 24 March 2021 and 26 March 2021.

Unimediación, S.L.; Unigest, S.A.; Unicorp Patrimonio, S.A.U.; and Unión del Duero, S.A. form part of Grupo Unicaja Banco.

Unicorp Vida, Compañía de Seguros y Reaseguros, S.A.

The "Sustainability Risk Integration Policy” was approved by the Board of Directors of Unicorp Vida at its meeting held on 21 Decembre 2022.

Link to Sustainability Risk Integration Policy

Content originally added to the corporate website on 10 March 2021. This section was changed on 26 April 2021 to report Unicorp Patrimonio, S.A.U.'s endorsement of Grupo Unicaja Banco's "Sustainability Risk Integration Policy". This section was changed on 3 June 2021 to report Unión del Duero, S.A.'s endorsement of Grupo Unicaja Banco's "Sustainability Risk Integration Policy". On January 18, 2023, the section was modified to include the new version of the "Sustainability Risk Integration Policy" of Unicorp Vida, Compañía de Seguros y Reaseguros, S.A.

Unicaja Banco, S.A.

Adverse impacts are taken into account in investment decisions and when investment and insurance advice is provided in keeping with the principle of proportionality according to the size of Unicaja Banco, the business model, its internal organisation, the nature and scale of its activity, the products it distributes, the services it offers and the profile of the majority of its customer base.

For such purpose, investments are channelled to companies that minimise sustainability risks after conducting studies that combine an analysis of the company's ESG factors and its economic and financial aspects or of the assets in which it invests according to generally accepted parameters adapted to an internal methodology, which expressly take into consideration the likelihood of adverse impacts taking place in this area.

As set forth by Regulation (EU) 2019/2088 of the European Parliament and of the Council of 27 November 2019 on sustainability-related disclosures in the financial services sector, adverse impacts should be construed to mean any impacts resulting from investment advice and decisions which have negative effects on sustainability factors.

All the related information is disclosed periodically through at least the Consolidated Non-Financial Reporting Statement (NFRS), which may be accessed on the corporate website ("Sustainability and CSR" section > "Social Responsibility Reports" section).

Social Responsibility Reports - Consolidated Non-Financial Reporting Statements

Notwithstanding the above, transparency on adverse sustainability impacts may be materialised through due diligence policies on said adverse impacts in accordance with the development of technical standards by the relevant European Union regulators, which are currently being drawn up and are expected to enter into force on 1 January 2022.

Unicaja Banco, S.A.

Unicaja Banco takes into consideration Regulation (EU) 2019/2088 of the European Parliament and of the Council of 27 November 2019 on sustainability-related disclosures in the financial services sector — along with other regulatory provisions that may have an impact on the inclusion of environmental, social and governance (ESG) factors in the remuneration scheme — in its overall incentives scheme, which is pending further specification and development as regards this point. Variable remuneration criteria that meet said Regulation's requirements will ensure there is an incentives structure in place that is in line with the institution's risk propensity and business objectives concerning sustainability risks, the adoption of measures to prevent conflicts of interests and the fostering of actions having a positive impact on the area of ESG factors. This framework for action will also be included in the "Remuneration Policy Associated to Risk Management".

Unicorp Vida, Compañía de Seguros y Reaseguros, S.A.

The remuneration scheme should be adjusted to all kinds of risks, including sustainability risks. The consideration of risks will include both financial and non-financial risks (coherently including sustainability risks in the "Sustainability Risk Integration Policy"), if any, under the framework of the institution's overall remuneration scheme. Not only should financial results be taken into consideration when assessing individual performance, but also other factors like present and future risks, the risk profile and capital costs.

Unicaja Banco, S.A. (extract)

Taking into account the current process of developing and drawing up regulations on sustainability that affect the European Union's financial system as a whole, Grupo Unicaja Banco has an action plan in place which will allow it to adapt to this regulatory framework progressively as the regulations which comprise it are approved and come into force.

Pursuant to the regulations in force and taking into consideration their constant evolution, Grupo Unicaja Banco finds itself in the process of establishing procedures to ensure sustainability risks and factors (environmental, social and governance [ESG] factors) are properly integrated into the decision-making process and when investment and insurance advice is provided. The specific aim of this is to identify and manage any ESG risks which may have a potential impact on the analyses conducted by investors and other stakeholders and on the decisions taken by them.

Furthermore, the Group is in the processing of setting suitable mechanisms to monitor the integration of sustainability risks and factors into the selection of the products and services it offers, the aim of which is to ensure that it always acts in the customer's best interest.

The Group manages sustainability factors within the scope of the business and its related risks according to a line of action based on proportionality, which is defined on the basis of the nature of the Group's core activity and the relevance that the assets and services assessed may jointly have.

In accordance with this principle of proportionality, Grupo Unicaja Banco takes into account the adverse impacts of investment decisions and the investment product and insurance advice it provides. As expressly set forth in Regulation (EU) 2019/2088, adverse impacts are to be construed as any investment advice or decision incidents that have negative effects on sustainability factors.

All the related information is disclosed periodically as it is generated through the Consolidated Non-Financial Reporting Statement (NFRS), which may be accessed on the corporate website ("Sustainability and CSR" section > "Social Responsibility Reports" section).

Notwithstanding the above, transparency on adverse sustainability impacts may be materialised through due diligence policies on said adverse impacts in accordance with the development of technical standards by the relevant European Union regulators, which are currently being drawn up.

Unigest, S.A. - Pre-Contractual Information (Art. 8, Regulation (EU) 2019/2088) (extract)

Socially Responsible Investment Funds Distributed by Unicaja Banco.

Unifond Sustainable Mixed Variable-Income Fund, FI (hereinafter the "Socially Responsible Investment Fund") promotes environmental or social characteristics, without having a specific sustainability goal. It is characterised by applying socially responsible investment (SRI) criteria, in addition to applying the usual financial criteria when it comes to choosing securities.

The fund's investment policy is characterised by applying socially responsible investment (SRI) criteria by seeking companies that offer opportunities to minimise environmental, social and governance (ESG) risks in order to channel investments.

The aim of this financial product is to earn maximum returns for investors while ensuring that most of the fund's portfolio meets ESG or ethical criteria.

Hence, the choice of individual securities/assets is jointly based on the outcome of a sustainability study on SRI factors and any related ESG risks, as well as on an analysis conducted by Unigest on the economic and financial criteria of the company in which it invests.

The Socially Responsible Investment Fund uses indicators to determine the ESG characteristics' level of development. Unigest also carries out periodic monitoring to ensure that the financial product maintains the aforementioned ESG characteristics, which is additionally reported to the Ethics Committee set up for such purpose at Unigest.

As far as the issuers of government debt are concerned, the Socially Responsible Investment Fund uses the Human Development Index (HDI), an indicator created by the UN Development Programme (UNDP) to determine the level of development reached by the world's countries. In order to do so, the HDI takes into account three variables: namely, life expectancy at birth, educational attainment and per capita GDP.

This financial product is benchmarked to the performance of the Eurostoxx 50 ESG Net Return EUR Index by 70% and the Bloomberg Barclays Euro-Aggregate 1-5 Year TR Index Value Unhedged EUR by 30%. The benchmark index is used for merely comparative purposes.

Unicorp Vida Compañía de Seguros y Reaseguros, S.A. - Pre-Contractual Information (Art. 8, Regulation (EU) 2019/2088) (excerpt)

Pension plans distributed by Unicaja Banco