Sustainability Abstract

Sustainability

Abstract

Key corporate social responsibility indicators for Banca Etruria

Banca Etruria has always operated with a socially responsible culture in the communities and markets it serves. For more than a decade, we have published a Corporate Social Responsibility Report that documents the value added created and distributed by the Bank, reporting on the activities that express the nature of the Bank, typical of cooperative banking.

For 2011, Banca Etruria has again decided to present its main sustainability indicators at the Annual General Meeting, underscoring the close complementarity between these figures and the information provided in the financial statements, the result of the daily operations that combine corporate development with sustainable growth: an event that offers insight into the Etruria style of banking.

Banca Etruria, Bank of Values

In 2006, following a multi-stakeholder initiative that directly involved shareholders, customers, suppliers and employees in delineating the founding principles that characterize the identity of the Bank, Banca Etruria drafted a Charter of Values and Code of Ethics, making explicit the values that have always represented it.

The values of Banca Etruria

• Strong local roots • Growth of local economies • Central role of shareholders • Shared business culture • Flexible and effective management systems • Leveraging human resources • First-choice bank for customers • Professionalism

Sustainability Abstract

Mission

Our aim is to drive the growth of the economic and financial system of which we feel we are a part. By combining traditional banking business with innovative financial services, we intend to transform the local roots that characterise our organisation into business opportunities, representing a point of convergence for stakeholder interests and local territorial development.

Banca Etruria and the creation of value added

Value added represents the wealth created by Banca Etruria during the year and the way it is distributed to shareholders, employees, local authorities and the community.

The generation and distribution of value added

In 2010, the increase in the economic value generated made it possible to distribute wealth to local stakeholders and accrue internal company resources in the amount of €12.7 million. In 2009, however, when a loss was posted, the economic value generated contracted and its distribution was supported by internal resources.

Social interaction

The indicators presented summarise the key data and information on the effects that the activities of Banca Etruria have on stakeholders, especially our human resources, shareholders and local communities.

B TOTAL ECONOMIC VALUE DISTRIBUTED C TOTAL ECONOMIC VALUE RETAINED

millions of euros

B TOTALE VALORE ECONOMICO DISTRIBUITO C TOTALE VALORE ECONOMICO TRATTENUTO A TOTAL ECONOMIC VALUE GENERATED Economic value distributed to suppliers Economic value distributed to employees

Economic value distributed to central and local government Economic value distributed to community and the environment

190,3 66,7 1,2 220,0 (29,7) 37,0 115,1 2009 2010 224,1 62,7 1,4 28,6 118,8 211,4 12,7 Employees

56,20

Central and local govt.

13,50

Community and enviroment

0,60

Suppliers

29,70

The statement of the generation and distribution of value added is prepared by reclassifying the income statement data of the Bank on the basis of the parameters and the format recommended by the Italian Banking Association.

Banca Etruria and human resource development

The management and development of human resources is inspired by the belief that people, with their wealth of ideas, knowledge, skills and experience, are decisive factors of competitive advantage and strategic pillars of the development of our business.

As at the end of 2010, Banca Etruria had 1,776 employees, not including 25 people hired on fixed-term contracts to replace absent staff with the right to retain their jobs. The total number of employees at 31 December 2010 was therefore 1801 (an increase of 8 compared with 2009).

Composition of staff

The average age of personnel is about 43 years, essentially unchanged from the previous year. The proportion of female employees expanded to 41.53% of the total in 2010. Female staff have also increased their presence in positions of responsibility, rising from 53 to 59 over the past three years.

Banca Etruria offers constant support for the development of the skills of its employees, seeking to ensure they are always abreast of developments in the market. Accordingly, in 2010 the Human Resources Department was closely involved in the development of new professional positions in implementing the new organisational model.

In addition to facilitated access to healthcare insurance and pension funds, as well as tax return assistance services, the personnel initiatives organised during year also included the fourth edition of the Etruria Family Celebration, where employees were able to share an afternoon at the office with their children.

Female

41,53

58,47

Composition of personnel by gender Male Female TOTAL 1.054 739 1.050 726 988 651 1.793 1.776 2009 2008 1.639 2007 2010 1.053 748 1.801

Banca Etruria and its shareholders

As a listed cooperative bank, Banca Etruria views its shareholders as the most natural

beneficiaries of its business: they are our primary clients whose expectations for a return on their investment we seek to satisfy. This conviction drives our constant attention to the relationship with shareholders.

As the following figures illustrate, the Bank is above all a company of people, whose shareholders are the expression of the local communities in which it operates.

The proportion of people who have been shareholders for more than 3 years is 70.75%, underscoring the high level of loyalty towards our Bank.

Composition of shareholders Men

Women

Companies, agencies, institutions

63,20% 35,37% 63,76% 34,51% 1,43% 1,73% 2009 2008 2010 62,72% 35,95% 1,33% Marche 4,62% Umbria 8,80%

Other regions northern Italy

0,22% Lombardy 1,10% Veneto 0,17% Molise 0,47% Lazio 19,79% Abruzzo 1,62% Tuscany 60,93% Other regions southern Italy 0,41% Emilia Romagna 1,80% International 0,08%

Shareholder for less than 1 to 3 years

20,45% Shareholder for more than_{3 years}

70,75%

Shareholder for less than 1 year

8,80% Composition by Region Shareholder loyalty Total Shareholders 56.837 50.273 2009 2008 2010 62.723

Banca Etruria for society, culture and local communities

Our unwavering commitment to supporting the community is inherent in the very nature of Banca Etruria, the heir of mutual banks with close ties to the local territory and its needs. It is a major role in keeping with its mission, which the Bank performs through social and cultural initiatives designed to help leverage the potential of local communities.

Social, educational and solidarity initiatives

27,1

43,4

Sports

17,8

Foundations and other entities

11,7

Cultural initiatives

Banca Etruria has a long tradition of involvement in supporting our artistic heritage and culture. We have forged collaborative relationships with public agencies and associations at both the local and national levels to support cultural, musical and artistic events, including:

- our annual contribution to the season’s offering of the Teatro Pietro Aretino of Arezzo, the

Festival Cameristico Internazionale at the Casa Museo di Ivan Bruschi and the ArteLibro – Festival del libro d’arte book fair in Bologna;

The world of sports

The Bank continued its commitment to sports and youngsters. In 2010, this took the form of support for teams and associations active in local and national championships, with a special focus on sports education.

Some 4,000 children were involved in the SportGiocando project of the Province of Arezzo, to which Banca Etruria contributed in a variety of ways, including holding lessons on the informed use of money. Other initiatives included meetings incorporated in the financial education project developed with the production of “Etruria Oggi Informa Junior” cartoons transmitted on local television and the Internet.

Society and culture Euros

Total

Social, educational and solidarity initiatives Sports

Foundations and other entities Local cultural activities and heritage

2010 495.967 326.838 213.900 794.732 1.831.437

The Bank and the environment

During the year Banca Etruria continued to implement strategies and projects designed to render effective the principles of respect for the environment and enhancing environmental sustainability. These included:

• the offer, through the Verde Etruria line, of products and support services to enterprises for projects involving the use of renewable energy and eco-friendly technologies;

• participation in the Impatto Zero project, with which Banca Etruria offset its CO₂ emissions with the creation of new forest areas;

• the Green Click “dematerialisation” service, with which customers can reap savings while helping the environment by opting to receive their account statements and other

communications via e-mail.

Continuing along this path, the Annual Report and Corporate Social Responsibility Report are printed using sustainable eco-friendly ink and paper.

Since 2005, Banca Etruria has also powered its daily operations exclusively with “clean” energy, thanks to the agreement signed within the AbiEnergia consortium with Compagnia Valdostana delle Acque for the supply of electricity generated with renewable resources, namely hydroelectric power.

Solidarity

A major part of the Bank’s community initiatives involves support for social assistance projects aimed at improving the quality of life of the less fortunate.

In early 2011 Banca Etruria entered a partnership with the Superintendency of Arezzo for the revival of the promotional campaign for one of the city’s most important artistic and cultural treasures: the Basilica di San Francesco, which contains the “The Legend of the True Cross” frescos by Piero della Francesca.

At the conference devoted to the “Banks and the Territory” competition, organised in Milan by AIFIn (the Italian Association for Financial Innovation), Banca Etruria was awarded first This commitment also involves the Bank’s employees, through special fund-raising

initiatives: in 2010, this effort made it possible to pay for an entire year of studies for a class of 30 children at the Terra Sancta College in Bethlehem, one of the oldest institutions in the Middle East, which in addition to providing students with a sound education also promotes peaceful coexistence.

Banca Etruria and the celebration of 150 years of Italian unity

The Bank, which has always been alert to opportunities for the enhancement of the areas it serves, will be celebrating the anniversary of the unification of Italy. The Italian flag

has been incorporated into the corporate symbol to create a logo specifically dedicated to the anniversary.

That logo is featured in the 2011 calendar illustrated by the painter Andrea Facchini with some of the most beautiful cities in which the Bank is present, offering a symbolic journey through a united Italy. The series Le Città Ritrovate (Rediscovered Cities), published by Banca Etruria for over 20 years, has been enriched with a two-volume boxed set devoted entirely to the Italian

Banca Etruria around the country

Banca Etruria has a network of 186 branches, mainly located in central Italy.

Valle d’Aosta Piemonte Lombardia 3 Emilia Romagna 10 Toscana 91 Marche₁₆ Umbria 21 Abruzzo 3 Molise Lazio 34 Veneto 1 Sardegna Campania Calabria Sicilia Basilicata Puglia Trentino

Alto Adige Friuli Venezia

Giulia

Liguria

7

Our presence is concentrated in those areas in which it has been possible to successfully replicate the local bank model, one in which we forge close relationships with local communities, with a diversified customer base and economies driven by small and medium-sized enterprises.

For the Banca Etruria Group as a whole, the number of branches has increased to 199, with the 8 branches of Banca Federico Del Vecchio in Florence and the 5 branches of Banca Lecchese.

The proximity of Banca Etruria to the areas it serves has been strengthened further thanks to the enhancement of the capacity for action of the regional offices in charge of the geographical areas in which we operate. The eight Territorial Centres have developed relationships with local agencies, trade associations and institutions through their support for numerous development projects for local socio-economic system.