2. Climate Change (ESRS E1)

2.1 Disclosures according to EU Taxonomy

EU Taxonomy disclosures are governed by Regulation (EU) 2020/852 of the European Parliament and of the Council of 18 June 2020 on the establishment of a framework to facilitate sustainable investment, supplemented by Commission Delegated  Regulations (EU) 2021/2139, (EU) 2021/2178 and (EU) 2023/2486, as well as by Commission Notice (C/2024/6691) on the interpretation and implementation of certain legal provisions of the Disclosures Delegated Act under Article 8 of the EU Taxonomy Regulation on the reporting of Taxonomy-eligible and Taxonomy-aligned economic activities and assets (third European Commission Notice).

The EU Taxonomy disclosures from the previous financial year 2023 can be found in the templates of the 2023 Non-Financial Report.

UNIQA currently has no strategic objectives with respect to the material performance indicators of the EU taxonomy. However, elements such as climate-risk-based benefits for customers in accordance with the substantial contribution criteria will be taken into account in product development in the area of non-life insurance.

2.1.1 Premiums in non-life insurance and taxonomy-eligible activities

2.1.1.1 Discretionary judgements and interpretation requirements

In the financial year, we report taxonomy-aligned for the second time in a row. The third Notice of the European Commission, issued in November 2024, was taken into account. In the financial year, there is still no uniform understanding in market practice regarding the determination of taxonomy alignment, for example when calculating premium shares that relate to climate change adaptation allowances. This was done in the financial year, based on long-term loss histories resulting from recognised climate-related risks.

2.1.1.2 Reporting principles

Under the EU Taxonomy Regulation, insurance companies are required to disclose an indicator in relation to their non-life insurance business (economic activities 10.1 and 10.2 in accordance with the EU Taxonomy). European legislators have therefore defined certain business lines of non-life insurance that are considered environmentally sustainable in relation to the environmental objective of climate change adaptation. The business lines specified in the EU Taxonomy are:

• Medical expense insurance
• Occupational disability insurance
• Casualty insurance
• Motor TPL insurance
• Other motor insurance
• Marine, aviation and transport insurance
• Fire and other damage to property insurance
• Assistance

The business lines classified by UNIQA as taxonomy-aligned are:

• Motor TPL insurance
• Other motor insurance
• Marine, aviation and transport insurance
• Fire and other damage to property insurance

In terms of non-life insurance, detailed research was conducted on taxonomy-eligible property and casualty insurance by using the templates set out in Annex X to the Delegated Regulation (2021/2178), with respect to all premium elements, based on the premiums written, separated by direct and indirect business and before and after any reinsurance. Underwriting specialists analysed the content of insured benefits and scope of cover to establish whether they were adapted to the impacts of climate change. As a result of the different cover being issued in places, retail and corporate business were analysed separately and classified in relation to the insurance activity’s taxonomy eligibility and alignment. The share of taxonomy-eligible economic activities in the total charged non-life insurance premiums (before reinsurance) was also determined. The premiums were divided into premium shares in accordance with the provisions of the draft version of the third Notice of the European Commission, which relate to climate change adaptation coverage. Technical screening criteria (TSC), compliance with “minimum social safeguards” (MSS) and “do no significant harm” (DNSH) criteria laid down in the Delegated Regulation were also checked.

2.1.1.3 Limited data availability or documentation

The above-mentioned evidence could not be documented for retail business, standardised SME business, or incoming co-insurance and reinsurance, and therefore could not be included in the taxonomy-aligned premiums, because no climate risk-based benefits are currently provided for retail business, and because compliance with the minimum social safeguards could not be demonstrated for standardised SME business and the acquired corporate business.

As part of its corporate business in a customised contract form, and the share of premiums calculated there for insurance coverage for natural disasters that are also related to climate change, it was possible to demonstrate compliance with the “substantial contribution” criteria, “do no significant harm” criteria, and with the “minimum social safeguards” for the financial year.

To comply with the “do no significant harm” criteria, premiums from activities related to the extraction, storage, transportation, or manufacturing of fossil fuels, and premiums from insurance of vehicles, property, plant and equipment, or other installations used for these purposes were excluded from the taxonomy-eligible premiums.

“Substantial contribution criteria” were also verified for corporate business, but not for retail business. The criteria of “leadership in modelling and pricing climate risks”, “product design”, “innovative insurance coverage solutions”, “transfer of data” and “high performance levels after a catastrophe” were appropriately substantiated for the corporate business. However, it was not possible to demonstrate that the criteria relating to product design for the retail business had been met.

Compared with the previous year, UNIQA provided evidence of compliance for the financial year with the minimum social safeguards (MSS) for corporate customers. A multi-stage, risk-based analysis of corporate customers with regard to the international standards and frameworks specified in Art. 18 of the EU Taxonomy Regulation did not identify any violations. Processes for ensuring compliance with the minimum protection criteria for human and labour rights, preventing corruption and bribery, taxation and fair competition were also established for its own operations (including its relations with suppliers).

The percentage of the taxonomy-eligible premium for the previous year was recalculated due to changes and standardisation of methodology and adjusted to 6.1 per cent. In the financial year, the share of the taxonomy-eligible premium was 7.0 per cent, of which 5.9 per cent was taxonomy-eligible and not aligned, and 1.1 per cent was taxonomy-eligible and aligned (€ 51.2 million). In the previous year, the share of the taxonomy-eligible and aligned premium was 0 per cent, because the aforementioned evidence could not be provided. In the financial year, these were demonstrated for corporate business. Due to the complex contractual structures in the different types of reinsurance, it is not possible to show the exact reinsurance share of taxonomy-aligned premiums. If the reinsurance premium had been set in proportion to the gross premiums written using an approximation method, the reinsurance share would be 20.5 per cent (€10.5 million).

2.1.2 Investments and taxonomy-eligible activities

2.1.2.1 Discretionary judgements and interpretation requirements

Delegated Regulation (EU) 2021/2178 specifies that insurance companies must make disclosures in relation to investments. Any undertaking that falls under the obligation to report under Articles 19a and 29a of Directive 2013/34/EU is required to make disclosures under Article 8 of the EU Taxonomy Regulation. This scope is also applied for counter-positions of UNIQA investments. The taxonomy classification is carried out with the support of the external data provider ISS STOXX.

UNIQA’s metrics on taxonomy alignment and eligibility with respect to both revenue and operating expenses are based on data from financial and non-financial companies.

The published assessment criteria for the environmental targets of the climate change mitigation and climate change adaptation were taken into account when calculating taxonomy alignment. The assessment criteria for all six environmental targets (including additions to environmental targets for climate mitigation and climate change adaptation) were taken into account when calculating taxonomy eligibility:

• Climate change mitigation
• Climate change adaptation
• Sustainable use and protection of water and marine resources
• Transition to a circular economy
• Pollution prevention and control
• Protection and restoration of biodiversity and ecosystems

The final version of the Commission Notice on the interpretation and implementation of certain legal provisions of the Disclosures Delegated Act under Article 8 of the EU Taxonomy Regulation on the reporting of Taxonomy-eligible and Taxonomy-aligned economic activities and assets enacted in November 2024 was also taken into consideration when implementing the requirements.

Coverage comprises the following assets (excluding assets of countries, central banks and supranational issuers):

• Property, plant and equipment
• Investments
• Unit-linked and index-linked investments
• Life insurance

The scope of coverage underlying the calculation in accordance with the templates contained in Annex X of the 2021/2178 Delegated Regulation is € 18,226.4 million, representing 100 per cent of the coverage. Compared with the previous year, the financial year also includes third-party funds.

2.1.2.2 Reporting principles

The calculation of the company-related KPIs in accordance with Art. 8 of the EU Taxonomy Regulation refers to the investments of UNIQA Insurance Group AG published for the financial year in the consolidated Group report.

Direct investments and internally managed funds

Data on internally managed non-listed funds is provided by the external data provider SOF and the asset manager Stepstone.

All other internally managed funds are evaluated at item level for taxonomy alignment based on data provided by ISS STOXX. The same approach is taken for direct investments. Where an internally managed fund contains a third-party fund, the third-party fund is evaluated as follows.

Third-party funds

In line with the third announcement by the EU Commission, investments in third-party funds are evaluated on the basis of Art. 6, 8, and 9 of Regulation (EU) 2019/2088 on sustainability‐related disclosures in the financial services sector (Disclosure Regulation). Investments in third-party funds – as referred to in the aforementioned articles of the Disclosure Regulation – fall under the scope of the calculation of UNIQA’s taxonomy alignment metric. Taxonomy alignment data for third-party funds is obtained from Morningstar. The percentage of the total fund volume that is taxonomy-aligned is included in the calculation of UNIQA’s taxonomy alignment. UNIQA does not examine the taxonomy alignment of the companies within the third-party funds at the individual position level.

Land and buildings

Compliance with the “substantial contribution criteria” and the “do no significant harm criteria” was demonstrated for investment property (economic activities 7.1 New construction and 7.7 Acquisition and ownership of buildings in accordance with the EU taxonomy). For this purpose, a climate risk analysis was carried out for properties with an energy performance certificate of energy efficiency class C or better. The analysis concerned roughly 74.4 per cent of investment properties with a combined fair value of approximately € 3.0 billion. (For more information see the chapter on Climate change in the area of real estate and own operations.) For a new building, the relevant assessment criteria for constructing new buildings were provided. UNIQA’s Green Investment Ratio (GIR) is primarily derived from the properties held and leased as investments. Due to the rental income, the revenue-based GIR is significantly higher than the CapEx-based GIR.

2.1.2.3 Limited data availability or documentation

As an exception to the carrying amounts and various IFRS measurement methods applied when preparing the consolidated financial statements, the taxonomy metrics were calculated across the board on the basis of fair values.

The resulting differences to the carrying amounts reported in the consolidated financial statements are mainly from the investment properties partially measured at acquisition costs in the Consolidated Statement of Financial Position and from the associated interests accounted for using the equity method.

2.1.2.4 Additional disclosures pursuant to Annex X of the EU Taxonomy Regulation – KPI pursuant to Art. 8

All government bonds and bonds from supranational emitters were eliminated from the calculation in accordance with the Delegated Acts to the EU Taxonomy Regulation.

The share of exposure to central governments, central banks and supranational emitters amounts to 32 per cent with regard to all investments.

2.1.2.5 Additional disclosures related to Annex XII EU Taxonomy Regulation

The following additional disclosures are published on the basis of Delegated Regulation (EU) 2022/1214 amending Commission Delegated Regulation (EU) 2021/2139 as regards economic activities in certain energy sectors and Commission Delegated Regulation (EU) 2021/2178 as regards specific public notices for these economic activities:

Article 1 lists the amendments to Delegated Regulation (EU) 2021/2139 and Article 2 the amendments to Delegated Regulation (EU) 2021/2178.

Investments in companies with relevant engagement that fall under the scope of the economic activities below are to be reported in the corresponding templates 1-5 provided in Annex XII.

UNIQA publishes the templates for nuclear energy and fossil gases in accordance with Regulation 2022/1214 Annex XII. In so doing, UNIQA has no dedicated financing in the aforementioned areas and does not make targeted investments in companies in the aforementioned activities. The exposure arises from the counterparties’ disclosure of the templates.

Based on the financial year’s key performance indicators (KPI), the share of taxonomy-aligned activities in the nuclear energy and fossil gases sectors has increased to 0.25 per cent (2023: 0.01 per cent) (Template 2 – denominator perspective). Based on operating expenses, the share rose to 0.24 per cent in the financial year (2023: 0.01 per cent).

This increase is largely due to the fact that financial companies published compliance data last year for the first time, which UNIQA was able to take into account for the first time this year.

2.1.2.6 Comparison with previous year

In 2023, the weighted average value of all investments geared towards or associated with the financing of taxonomy-aligned economic activities (based on the environmental objectives of climate change mitigation and climate change adaptation) relative to the value of total assets recognised for the purpose of calculating the KPI came to 10.88 per cent on a revenue basis, which corresponds to an absolute value of € 1,855.8 million. The corresponding figure for the financial year was 13.00 per cent (€ 2,369.0 million). In terms of CapEx, the figure for 2023 was 0.77 per cent (€ 131.4 million) compared with 1.07 per cent (€ 195.4 million) in the financial year. This positive development is partly due to the fact that financial companies published compliance data last year for the first time, which UNIQA was able to take into account for the first time this year. In addition, the proportion of taxonomy-aligned properties has increased, which has also had a positive impact on GIR.

The taxonomy-aligned activities consist of 93 per cent from the real estate and housing sector (2023: 95 per cent), 3 per cent from the construction sector (2023: 2 per cent), 2 per cent from the energy supply (2023: 3 per cent), and 2 per cent from the remaining sectors (2023: 0 per cent).

2.2 Climate Change (E1)

2.2.1 Transition plan for climate change mitigation (E1-1)

2.2.1.1 UNIQA on the journey to climate transition

In light of the need to rapidly implement targeted, streamlined actions to address climate transition and reduce CO₂ emissions, the climate strategy represents the centrepiece of the UNIQA sustainability strategy. As an insurance company, UNIQA assumes responsibility for both direct and indirect emissions resulting from financing, investments and property insurance policies. The aim is to limit global warming to a maximum of 1.5°C, as agreed in the 2015 Paris Agreement.

UNIQA recognises that the transition to a net-zero economy requires time, commitment and innovation. For this reason, UNIQA is committed to regularly reviewing progress and to working on plans and measures to reach the goal of achieving net-zero emissions in the insurance business and in its own operations by 2040 in Austria and by 2050 Group-wide across all business segments (investment, insurance, own operations).

Net-zero emissions are defined as the reduction of GHG emissions from operations (Scopes 1, 2 and 3) to zero at best or to a residual level that is compatible with achieving net-zero emissions at global or sectoral level in corresponding scenarios or sector paths within the framework of the 1.5 C target; and as the neutralisation of all residual emissions by the net-zero target year and all GHG emissions subsequently released into the atmosphere. At the moment, UNIQA’s net-zero target does not meet ESRS definitions, because no target has yet been set for emissions reductions in 2040 or 2050, only interim targets. At present, there is no sector-specific net-zero definition for financial undertakings, but UNIQA plans to follow developments on this topic.

In order to achieve the stated goal, UNIQA has developed decarbonisation measures, strategies, standards and guidelines specific to the core business and developed a Group-wide transition plan. The adoption of the UNIQA decarbonisation policy in 2019 was the first major step towards the climate transition. The policy entailed the phase-out of coal in both the investment and insurance business, and led to the development of a comprehensive sustainability strategy. This strategy was rolled out at the end of 2020 and reinforced in 2021 by the accession of UNIQA to the Net-Zero Asset Owner Alliance (NZAOA) and the Austrian Green Finance Alliance (GFA). In addition, the interim climate targets were validated by the Science Based Targets Initiative (SBTi) in 2023. Group-wide interim climate targets for four areas of the investment portfolio were validated along with the Group’s own operations. This represents a significant step for UNIQA towards optimising the alignment of the portfolio and the GHG emissions of the Group’s own operations with a 1.5°C climate target pathway.

“UNIQA on the Journey to Climate Transition” marks one of the first steps towards a transition plan and outlines the approach and future actions for achieving a comprehensive climate transition. As sustainability is a core aspect of the new strategy programme, UNIQA 3.0 – Growing Impact, which enters into force in 2025, and owing to the fact that the UNIQA sustainability strategy pursues a holistic approach that unites economic ambition with a clear commitment to the environment and society, corresponding targets and actions have also been defined. Specific to the core business, the targets and actions of these strategies are aligned with established international and national frameworks and, like the transition plan, are continually reviewed and refined. Integration of these targets and actions into financial planning is currently in progress. “UNIQA on the Journey to Climate Transition” was developed in consultation with the various company divisions, adopted by the Management Board in October 2024 and published in December 2024. As part of the new strategy programme, UNIQA aims to define specific action plans by 2028 for achieving the set interim targets and thereby complete the transition plan. Current progress on the topic of climate transition is presented in the sub-sections on ESRS E1 “Climate change”.

Although the neutralisation of residual emissions will be necessary in the future to achieve net-zero emissions, at present UNIQA is focusing on reducing and mitigating GHG emissions with respect to all actions and targets. Accordingly, the primary focus is on avoiding the consumption of (fossil fuel) energy and the associated emissions from greenhouse gases to the greatest possible extent as well as reducing the fossil fuel share and replacing energy sources with sustainable alternatives. Comprehensive decarbonisation plans and strategies are already in place in this regard. As a result, no compensation measures are being introduced for the time being. UNIQA does not currently use an internal carbon price.

As a company focused on insurance, UNIQA does not invest directly in assets related to the production or processing of coal, crude oil or natural gas. Long-term investments in these sectors are therefore not reported. Investments in investment products from companies that operate in the coal, oil or natural gas sectors and insurance coverage for corresponding companies are indirectly linked to the production or processing of fossil fuels. According to the decarbonisation strategy, an exit plan has been established in relation to fossil fuels, which is described in the sub-section on climate matters under Investments. UNIQA is not exempt from the EU benchmark values set forth in the Paris Agreement in accordance with the EU Benchmark Regulation.

2.2.1.2 Investment transition plan

UNIQA’s investment strategy follows the principles of sustainability, the Paris Agreement and the overarching goal of achieving net-zero emissions across the Group by 2050. An analysis of the portfolio based on CO₂ emissions is used to identify climate risks and opportunities at an early stage and to assess the willingness of emitters to embrace the transformation in line with the 1.5°C target. Sustainable investments contribute to financing the transformation, reducing our exposure to ESG risks and increasing sustainability-related opportunities.

The weighted average carbon intensity (WACI) trajectory entails a 60 per cent reduction by 2030 compared to the 2021 base year, in line with recommendations from the Intergovernmental Panel on Climate Change (IPCC). UNIQA’s validated SBTi targets confirm efforts to limit global warming to 1.5°C.

Several decarbonisation levers for reaching net zero have been identified:

• Decarbonisation strategy: Phase-out of fossil fuels and nuclear energy by 2035. New investments in coal, oil, and natural gas will be gradually curtailed and eventually discontinued altogether.
• Reducing emissions intensity: Managing portfolio efficiency gradually reduces the emissions intensity of investments.
• Promoting SBTi targets: UNIQA helps emitters set their own science-based climate targets.

Emitters that contribute to reducing emissions or social projects are financed through sustainable investments. These investments are broken down into the following categories: green, social and sustainability bonds, SFDR Article 9 funds, and sustainable infrastructure projects and technologies. Engagement activities are designed to promote decarbonisation efforts among companies and prevent divestments wherever possible.

To minimise the risk of residual emissions from individual companies in which UNIQA invests by 2050, the emissions in question should ideally be neutralised by the companies themselves. The net-zero by 2050 investment target requires any remaining emissions to be offset through carbon credits. In order to reduce the financial risk, work is underway on a gradual phase-out of investments in fossil fuels and nuclear energy. Targeted engagement activities have also been undertaken with the companies since 2022. The focus is on companies that together account for 65 per cent of UNIQA’s financed emissions. In addition to the engagement activities, a limit system has been established for direct investments in GHG-intensive emitters. Investments are only permitted if at least one of the following criteria is met:

• The investment takes the form of a green, social or sustainability bond.
• The emitter has committed to a plan to reduce GHG emissions.
• The emitter has obtained an above-average ESG status from ISS.
• The investment has been approved by the Asset Liability Management Committee.

At this point in time, UNIQA has not yet developed specific targets or plans for the development of taxonomy-eligible and taxonomy-aligned revenues, CapEx or OpEx. Further developments on this topic will be monitored on an ongoing basis and taken into account as necessary in future strategy adjustments.

The transition plan with regard to investments is set out in the UNIQA Group Responsible Investment Standard approved by the Management Board. Progress on the implementation of the transition plan for investment and the actions taken are described in detail in the sub-sections on climate issues under Investments.

2.2.1.3 Transition plan in corporate business

UNIQA’s investment strategy in the corporate business follows the principles of climate change mitigation, the Paris Agreement and the overarching goal of achieving net-zero emissions in Austria by 2040 and across the Group by 2050. The main strategic goals include reducing GHG emissions, strengthening customer resilience to climate-related risks and producing sustainable product solutions. A comprehensive sustainability risk assessment is used to uncover climate-relevant risks and opportunities and foster customer willingness to transform their businesses in order to limit global warning to the 1.5°C target.

UNIQA has identified several decarbonisation levers for reaching net zero in the corporate business:

• Fossil fuel phase-out: UNIQA is pursuing a gradual exit strategy from fossil fuel transactions. As of 2024, no new contracts will be concluded with companies active in the crude oil sector, and as of 2025 this will also apply to companies in the natural gas sector. Exceptions are granted for companies that pursue science-based climate targets in line with the Paris Agreement.
• Expansion of the renewable energy business: UNIQA actively supports the expansion of renewable energy and offers dedicated insurance solutions for companies in the wind, solar and hydropower sector. The aim behind this is to contribute to the transition to zero-carbon energy and increase customer resilience.
• Engagement with carbon-intensive customers: In the financial year, UNIQA conducted an analysis of the top ten emitters in each market to subsequently initiate targeted measures to reduce emissions. This approach to reducing emissions requires closer engagement with customers in carbon-intensive sectors to help them in their climate transformation and ensure that they remain on track to the 1.5°C limit pathway.

In order to meet growing market demand, the development of innovative sustainability products is encouraged in the corporate business.

As part of the decarbonisation strategy, interim targets were set in order to reduce insurance-associated Scope 3 emissions by 2040 for Austria and by 2050 for the other countries in which UNIQA operates. These five-year interim targets support the implementation of the climate strategy. Due to a lack of methodological guidelines and standards, it is currently not possible to assess the climate targets in the corporate business in terms of alignment with the 1.5°C limit pathway.

The transition plan is integrated into the UNIQA Group ESG Underwriting Standard and was approved by the Management Board. Responsibility for compliance and implementation of the transition plan rests with the management functions responsible for the Corporate Business & Affinity business segment at both UNIQA Austria and UNIQA International.

Any need to adapt the strategy is monitored on an ongoing basis and integrated into future implementation measures, as necessary. Progress on the implementation of the transition plan and the actions taken are reviewed on an ongoing basis and described in detail in the sub-sections on climate issues under corporate business.

2.2.1.4 Transition plan in the retail business

Climate change adaptation and mitigation are two of the key elements of UNIQA’s sustainability strategy for the retail business (ESG Retail Strategy). The aim in this regard is to address risks and opportunities arising from the Group-wide climate transition with sustainably designed retail products, and to achieve net-zero emissions in the insurance business by 2040 in Austria and by 2050 across the Group. In addition to climate change adaptation, energy and CO₂ emissions also play an important role.

CO₂ emissions caused by customers were identified as decarbonisation levers. Decarbonisation in the retail business is being driven, among other things, by incentivising sustainable mobility. This includes, for example, e-coverage, namely insurance coverage developed especially for electric vehicles, and the carbon pricing model for the new motor vehicle sales product. Launched in Austria, this product offers price reductions for low-consumption vehicles. The establishment of framework conditions for sustainable product development marks an important step in the transition of the retail business toward net-zero emissions. Climate change adaptation, promoting renewable energy and reducing emissions as well as focusing on diversity and inclusion are enshrined in the product development process in Austria through an additional internal guideline. ESG features will be integrated into future products to promote preventive measures by customers and increase their resilience against climate-related damage and extreme weather events. An ESG retail strategy is currently being developed for other countries in which UNIQA operates.

Within all those aspects, UNIQA attaches great importance to continually raising awareness of sustainability among its sales employees. Targeted training courses and awareness programmes in sales give sales employees access to information to ensure they are optimally prepared for consultations. In addition, the enhanced consulting approach is also designed to ensure customers are always offered suitable sustainable products. UNIQA relies on extensive market research to support this, in order to respond to market changes, identify trends early on and optimally meet the sustainability demands of customers.

In this context, UNIQA is working on establishing a quantitative assessment and target setting for the pillars of the sustainability strategy in the retail business. The first step involves creating a database that will serve as a basis for future target setting.

Various measures related to the defined decarbonisation levers are already being implemented across the Group. Please consult the chapter “Climate matters in the retail business” for more information.

Progress on the implementation of the transition plan in the retail business and the actions taken are reviewed on an ongoing basis and described in detail in the sub-sections on climate issues under Retail business.

2.2.1.5 Transition plan for UNIQA’s real estate and vehicle fleet

The goal in this regard is to achieve net-zero emissions for owner-occupied properties held by UNIQA, for investment properties and for the vehicle fleet in Austria by 2040 and in the other countries in which UNIQA operates by 2050. The Paris Agreement and the 1.5°C limit pathway based thereon form the basis for the sustainable management of the real estate portfolio. As part of the Science Based Targets Initiative (SBTi), UNIQA has therefore committed to an interim target that has been successfully validated. This reduction pathway aligns with the 1.5°C global warming limit target.

UNIQA’s primary decarbonisation levers in relation to owner-occupied properties and investment properties are its use of renewable energy, transitioning to sustainable heating systems such as heat pumps, district heating or biomass heating, expanding the use of certified green electricity and increasing energy efficiency. Electrification of the vehicle fleet constitutes another lever in terms of operational ecology.

For several years now, the decarbonisation of real estate has been actively promoted through thermal and structural renovation, energy monitoring, optimising heating, air-conditioning and ventilation systems, and transitioning to sustainable lighting and cooling. UNIQA invested € 3.0 million in decarbonisation measures in the financial year, with a further € 6.6 million investment planned for 2025. The experience gained and lessons learned from measures implemented to date will provide the basis for the future implementation of ESG-relevant measures.

The real estate portfolio consists of various asset classes within the real estate sector and ranges from traditional Viennese apartment blocks to premium office properties. The types of heating systems used in these buildings also vary. The relevant share of sustainable heating systems such as district heating and heat pumps is to be continuously increased, while the share of oil and gas heating is to be reduced. Properties with individual gas boilers in the individual residential units in the 2023 financial year account for around 39 per cent on the basis of fair values. A consistent reduction in this share would be desirable. However, this is difficult to implement in Austria; the consent of tenants is required by law to replace individual gas boilers.

Progress on the implementation of the transition plan properties and vehicles as well as the measures taken are described in detail in the sub-sections on climate issues for properties and operational ecology.

2.2.2 Gross Scopes 1, 2, 3 and Total GHG emissions (E1-6)

The following table provides an overview of the GHG emissions directly or indirectly attributable to UNIQA’s economic activities. It covers emissions from various sources and activities within the company. The emissions are broken down into Scope 1, Scope 2 and Scope 3 categories and are based on specific sources and calculation methodologies.

Scope 1 and 2 emissions: Includes emissions from owner-occupied and downstream leased properties and the vehicle fleet. Scope 2 emissions are reported using a market-based and location-based method. UNIQA is not covered by regulated emissions trading schemes. An SBTi-validated interim climate target has been set for Scope 1 and Scope 2 emissions from owner-occupied properties and the vehicle fleet. It calls for a 42 per cent reduction in emissions by 2030 compared with 2021.

Scope 3 emissions: Includes financed emissions from investments in corporations and government bonds (Category 15) in accordance with Part A of the PCAF Standard. UNIQA has not defined any interim targets for financed emissions. However, comprehensive targets including SBTi-validated targets for investments are presented in the Investment sub-section on climate issues. Other Scope 3 categories according to the GHG protocol were analysed and classified as not material on the basis of their extent. UNIQA continually monitors the materiality of additional Scope 3 categories. In addition to the emissions in Scope 3.15, UNIQA also reports on insurance-associated emissions from the corporate business and vehicle-related emissions for the retail business in accordance with Part C of the PCAF Standard. These emissions are not presented in the table but instead reported in the sub-sections on climate issues concerning Corporate business and Retail business.

The pro rata emissions arising from UNIQA’s holding in STRABAG SE accounted for in accordance with the equity method are reported within the scope of the financed emissions (Scope 3.15) and within the corresponding targets.

The share of Scope 3 GHG emissions calculated on the basis of primary data is 44 per cent.

Biogenic CO₂ emissions from the combustion or biological degradation of biomass not included in Scope 1 GHG emissions are as follows: 110 tonnes of CO₂. Those not included in Scope 2 GHG emissions (market-based) are as follows: 17,725 tonnes of CO₂; those not included in Scope 2 GHG emissions (location-based) are as follows: 17,725 tonnes of CO₂; and those not included in Scope 3 GHG emissions are as follows: 0 tonnes of CO₂. Owing to the limited availability of data, reported Scope 2 GHG emissions of biogenic CO₂ accounted for using the location-based method are the same as the emissions accounted for using the market-based method.

The detailed calculation methodologies and assumptions, scope and specific sources of emission factors are discussed in the relevant sub-sections.

The premiums written were used as a benchmark for the net revenue when calculating the GHG intensity for net revenue. The premiums written are specified in the Performance section of the “UNIQA Group KPIs” table in the “Business Performance within the Group” section.

2.3 Investments

2.3.1 Material impacts, risks and opportunities and their interaction with strategy and business model (ESRS 2 SBM-3)

UNIQA has identified several material impacts and risks associated with investments with regard to climate change adaptation, mitigation and energy consumption. Material negative impacts arise from UNIQA failing to sufficiently leverage its position as a provider of capital to support the achievement of sustainability targets and the implementation of sustainable strategies. This may result in companies having little incentive to take effective action with regard to climate change adaptation, GHG emissions and energy consumption. The transition to a more sustainable economy could also reduce investor willingness to invest in certain companies, potentially undermining their corporate value. UNIQA’s assets, liabilities, financial position and profit or loss could be adversely affected as a result, with the worst-case scenario potentially leading to stranded assets. Companies that operate in carbon-intensive and energy-intensive sectors are most likely to be affected by these negative impacts. Likewise, companies with business models closely intertwined with the production or processing of fossil fuels face significant challenges. UNIQA addresses these climate-related transition risks with a number of different policies and actions designed to both significantly reduce the impacts of GHG emissions and minimise the financial risk for UNIQA. The company has therefore adopted a proactive and sustainable approach to addressing both environmental and economic challenges.

2.3.2 Policies related to climate change mitigation and adaptation (E1-2)

The UNIQA Group Responsible Investment Guideline governs the requirements applicable to sustainable investments. Ultimate responsibility for implementing the strategies described below lies with the Head of Asset Management.

Decarbonisation strategy and nuclear energy with regard to investments

According to the decarbonisation strategy, UNIQA aims to phase out coal and crude oil by 2030 at the latest, and natural gas and nuclear energy by 2035 at the latest, and to continually reduce the weighted average carbon emission intensity (WACI) of investments. The WACI decarbonisation target adheres to the NZAOA mitigation path recommendations based on the assessment of the 1.5°C no/limited overshoot scenario set forth by the Intergovernmental Panel on Climate Change (IPCC) and accordingly also aligns with the Paris Agreement. By adopting this strategy, UNIQA aims to significantly reduce emissions intensity and exposure to fossil fuels and nuclear energy. The regulated phase-out of fossil fuels will reduce the risk of stranded assets and thereby help to preserve the value of investments.

The decarbonisation strategy comprises the following milestones:

Coal

• Roll out of coal exclusion criteria since 2019
• Since April 2022, no investments have been made in funds including companies that generate more than 10 per cent of their revenue from thermal coal transactions
• Since 2024, no direct investments have been made in thermal coal producers or energy suppliers that produce electricity from coal if they generate more than 5 per cent of their revenue from coal

Oil

• No new direct investments in the expansion of projects from 2025 onwards
• As of 2025, no new direct investments will be made in oil producers or companies that produce heat from oil if they generate more than 30 per cent of their revenue from oil
• Termination of existing direct investments in oil producers or enterprises that produce heat from oil that generate more than 5 per cent of their revenue from oil by 2030
• Exceptions are granted for companies with SBTi certified targets in place

Natural gas

• No new direct investments in the expansion of projects from 2026 onwards
• No new direct investments in companies that generate more than 30 per cent of their revenue from the natural gas sector as of 2026
• Termination of existing direct investments in companies that generate more than 5 per cent of their revenue from the coal business by 2035
• Exceptions have been granted for companies with SBTi certified targets in place and companies that conduct EU Taxonomy-aligned activities (revenue, CapEx, OpEx)

Nuclear energy

• No new direct investments in the expansion of nuclear infrastructure projects from 2025 onwards
• Termination of existing direct investments in companies that generate more than 5 per cent of their revenue from nuclear energy by 2035
• Exceptions have been granted for companies with SBTi certified targets in place and companies that conduct EU Taxonomy-aligned activities (revenue, CapEx, OpEx)

Engagement strategy

As stipulated in the UNIQA Group Responsible Investment Guideline, the engagement strategy at UNIQA incorporates both proactive and reactive engagement.

Proactive engagement involves direct bilateral engagement with individual investee companies. Bilateral discussions are held with ESG managers at the respective companies to achieve progress on their specific targets.

The aim behind bilateral engagement is to support and assist these companies in significantly reducing their emissions, exercising more sustainable business practices and increasing their transparency through disclosures. This strategy is based on the conviction that targeted measures will have the greatest positive impact on UNIQA’s climate targets among companies with the highest GHG emissions.

As part of this engagement, the company is focusing on the following areas to promote climate change mitigation:

• Implementation of a governance framework that defines climate risk responsibilities and supervisory duties
• Taking action to reduce GHG emissions across the entire value chain in line with the climate target of 1.5 degrees Celsius and to set SBTi-validated targets, if not already in place
• Transparent disclosures to demonstrate the resilience of the corporate strategy in various climate scenarios.

Reactive engagement refers to the collaborative engagement that UNIQA pursues as part of its membership in the Climate Action 100+ (CA 100+) investor initiative. As part of the initiative, a group of international investors reach out to the world’s 170 largest corporate greenhouse gas emitters to align their climate strategy and reporting with science-based climate targets.

ISS enables investors to engage with companies that commit serious and structural violations of normative criteria in the fields of corporate governance, human and labour rights, the environment, or bribery and corruption, or fail to take measures to adequately respond to these violations and to take countermeasures with engagement based on standards. Corresponding violations include, in particular, violations of the principles of the UN Global Compact (UNGC) and of the Organisation for Economic Co-operation and Development (OECD) Guidelines for Multinational Enterprises.

Strategy for sustainable investments

UNIQA finances companies that make a contribution to reducing emissions or to social projects. The sustainability classifications of green, social and sustainability bonds according to International Capital Market Association (ICMA) principles are applied in this regard. Funds classified as Article 9 dark green funds under the EU Sustainable Finance Disclosure Regulation (SFDR) are also included in the list of sustainable investments. Article 9 dark green funds constitute investments that pursue a sustainability objective as defined by SFDR. Investments are also made in infrastructure projects that positively contribute to at least one Sustainable Development Goal (SDG) without adversely affecting other goals. The Sustainable Investment Strategy is set out in the UNIQA Group Responsible Investment Standard. Investments made are reviewed by the Risk Management team on a regular basis. Sustainable investments contribute to climate change adaptation, in particular by supporting infrastructure projects in the renewable energy segment. Sustainable investments are not assessed based on their emissions, but rather according to their transformation potential.

Monitoring processes

The Group Responsible Investment Steering Committee reviews the Group Responsible Investment Standard at least once a year. Chaired by the Head of Asset Management, the Committee is made up of the heads of Group Asset Management, representatives from the Asset Management and Portfolio Management ESG teams and representatives from the Group ESG Office. The committee is informed about the status of ESG activities in annual reports. Information on recent development and progress is also shared at in-house meetings with the Head of Asset Management. The Asset Management ESG team maintains an ongoing dialogue with the Group ESG Office, which coordinates the overarching sustainability strategy.

2.3.3 Actions and resources in relation to climate change policies (E1-3)

Targeted decarbonisation, commitments, risk assessments and sustainable investments help to promote a climate-friendly transformation and strengthen the portfolio’s ESG performance. The following section explores the specific measures taken by UNIQA to actively contribute to reducing emissions in relation to investments.

Decarbonisation

In the reporting period, ISS enhanced its range of data with regard to various activities related to fossil fuels. As a result, more detailed information can be provided on production, processing, electricity generation, heat generation and exploration activities from 2025 onwards.

Current direct investment volumes in the following activities in the coal and oil sector that exceed the respective revenue thresholds are summarised in the list below:

• € 8.1 million in companies that generate >5 per cent of their revenue from activities in the coal sector (production, processing, electricity generation)
• € 0 in companies that generate >5 per cent of their revenue from heat generation in the coal sector
• € 80.4 million in companies that generate >30 per cent of their revenue from activities in the oil sector (production, processing, electricity generation)
• € 0 in companies that generate >30 per cent of their revenue from heat generation in the oil sector
• € 0 in companies that generate >30 per cent of their revenue from exploration for all fossil energy sources (coal, oil, natural gas)

By contrast, the following limits were applied for direct investments in the following activities in the coal sector that exceed the respective revenue thresholds for the financial year:

• € 0 in companies that generate >5 per cent of their revenue from activities in the coal sector (only production)
• € 0 in companies that generate >5 per cent of their revenue from electricity generation in the coal sector

Engagement activities

As part of this commitment, decarbonisation efforts are promoted through an active dialogue maintained with the companies. Aspirations to work together with companies complement efforts to manage impacts on climate change mitigation, climate change adaptation and energy efficiency.

All bilateral engagement to date has been positive, not resulting in the need for any escalation measures in line with the engagement strategy due to a lack of willingness to cooperate on the part of the companies.

In line with the proactive bilateral engagement strategy, UNIQA reached out to two companies selected on the basis of their high share of UNIQA’s financed emissions to obtain an initial overview of climate-relevant targets, measures and strategies pursued by engagement partners in the financial year. Together, these two companies represent 39 per cent of UNIQA’s financed emissions. Bilateral engagements involve processes that span one to three years. In the first few years, the focus was on the commitment to setting climate targets.

As a member of CA 100+, UNIQA participated in a collaborative engagement with an energy producer in the financial year under view. With a focus on improving the affected company’s decarbonisation measures, the engagement will continue into the following year.

Together with ISS, UNIQA was involved in ten standards-based engagements in the financial year. The engagements in question involved eight incidents of social violations and two incidents of environmental violations. In eight out of ten cases, actions or commitments have already been taken by the companies concerned to remedy the violation.

As a member of the Net-Zero Asset Owner Alliance, UNIQA took part in collaborative engagements with three of the world’s largest asset managers, with a focus on climate-specific topics in the financial year.

Planned decarbonisation strategy actions

SBTi targets: In the pursuit of achieving SBTi targets, UNIQA plans to invest in companies validated by the SBTi and engage with companies in its portfolio to encourage them to establish their own SBTi targets. Continuation of the fossil fuel phase-out strategy and the limiting companies with high emissions will further help to achieve the targets.

Portfolio decarbonisation: Further aligning the portfolio with the commitments arising from UNIQA’s memberships will ensure that the ESG quality of the Group’s investments improves on a continuous basis. Decarbonisation and engagement measures are to be continued in the subsequent years in line with the SBTi. In accord with the decarbonisation strategy, emissions remain the main focus of the sustainability analysis.

Measures stated in the decarbonisation strategy include both direct and indirect investments in companies that operate in the coal, oil, natural gas and nuclear energy sectors.

• Direct business investments: These investments relate to companies that operate in the coal, oil and natural gas, and nuclear energy sectors.
• Investments in funds: These investments relate to investments in funds that contain assets linked to coal.

Planned actions for the engagement strategy: Existing engagements will be continued into 2025 and the number of engagements will be increased.

Planned actions for sustainable investments: The initial target of building up a sustainable investment volume of € 2 billion by 2025 was first achieved in 2023. A volume of € 2 billion is to be maintained in 2025 and the years that follow.

2.3.4 Targets related to climate change mitigation and adaptation (E1-4)

Targets related to the decarbonisation strategy

SBTi targets for the investment portfolio

With regard to the decarbonisation strategy, the SBTi targets focus on reducing emissions intensity, promoting renewable energy and investing in companies validated by the SBTi.

UNIQA has set interim targets in four asset classes for investments validated by the SBTi and that comply with the 1.5°C limit climate pathway.

In the base year of 2021, SBTi interim targets covered 23 per cent of investments. These relate to the activities required according to SBTi guidance. The remaining portion of the investments comprised 19 per cent of optional activities and 58 per cent of activities outside the scope of the SBTi guidance. Investments allocated to the unit-linked and index-linked life insurance business were excluded from the target setting process, as UNIQA has limited influence on the selection of investments.

The metric applied for the SBTi target for the asset class “Project financing for electricity generation” is the emissions intensity stemming from electricity generation for the funded projects (tonnes of CO₂e per megawatt hour generated). The emission factor applied to calculate the financed emissions is based on average figures for the respective energy sources. The figures for emissions and energy produced are based in part on projected figures.

The data is obtained from ISS and directly from the companies in question. The assets covered by each target category are reviewed on a regular basis. In line with the SBTi framework, the targets are renewed at five-year intervals.

Targets for weighted average carbon intensity

Portfolio decarbonisation is focused on emissions stemming from investments in companies. The GHG emissions arising from these investments are calculated on the basis of the weighted average carbon emission intensity (WACI). The WACI is used to manage the portfolio according to the companies’ emissions efficiency. If the WACI contribution of a certain investment would result in the portfolio WACI limit being exceeded, the investment in question is not pursued.

Development of the WACI metric is monitored by Risk Management using a limit system.

Current targets for the WACI metric were set on the basis of the requirements of the Net-Zero Asset Owner Alliance.

For companies, this metric is calculated as the sum of Scope 1 and Scope 2 emissions relative to the company’s revenue, weighted by the investment volume. A breakdown according to Scope 1 and Scope 2 emissions is not carried out. The data is sourced from ISS and is largely based on data reported by the respective emitters.

The companies’ Scope 3 emissions are tracked but not included in the metric. At present, Scope 3 emissions are considered to be only of limited informative value owing to the fact that the data is not always plausible and fully disclosed. This was likewise affirmed by the Net-Zero Asset Owner Alliance, which will include corresponding disclosures in its requirements once the base data is considered reliable. From then on, disclosures will be reported on Scope 3 emissions.

As both the WACI target pathway and the SBTi targets are subject to regular updates, any further changes to the Net-Zero Asset Owner Alliance and SBTi methodologies are applied when the targets are updated. Regulatory changes are likewise taken into account when the targets are updated.

Targets related to the engagement strategy

As things currently stand, no specific targets have been established for the engagement metrics. In keeping with its membership in the Net-Zero Asset Owner Alliance, UNIQA’s bilateral engagements will focus on the companies that together account for 65 per cent of Scope 1 and Scope 2 financed emissions up to 2027.

Targets for sustainable investments

UNIQA finances companies that make a contribution to reducing emissions or to social projects through its sustainable investments. As a member of the Net-Zero Asset Owner Alliance, UNIQA has set itself the target of allocating € 2 billion to sustainable investments by 2025. This target was already exceeded in the 2023 financial year and further increased to € 2.4 billion in the year under view. As a result, the share of sustainable investments in the overall portfolio amounts to 11 per cent. The volume and composition of sustainable investments are reviewed on a monthly basis by Risk Management.

Sustainable investments comprise:

• 78 per cent green bonds
• 7 per cent social bonds
• 5 per cent sustainability bonds
• 5 per cent Article 9 Funds according to the EU Disclosure Regulation (SFDR)
• 5 per cent sustainable infrastructure projects and technologies (wind power projects, social facilities)

2.3.5 Gross Scopes 1, 2, 3 and Total GHG emissions (E1-6)

Category 3.15 financed emissions provide an indication of the GHG emissions financed through investments in companies and governments. These metrics give UNIQA the ability to manage the impacts of climate change and to control climate change adaptation.

The coverage of total financed emissions by investments in listed companies, corporate bonds (excluding collateralised debt), corporate loans and government bonds came to 52 per cent in the financial year.

Absolute financed emissions from investments in companies (Scope 3.15)

Absolute financed emissions for companies are calculated by multiplying the holding in a company by the Scope 1, Scope 2 and Scope 3 emissions it produces. Financed emissions include Scope 1, Scope 2 and Scope 3 emissions produced by the investee companies. The coverage of total financed emissions by investments in listed companies, corporate bonds (excluding collateralised debt) and corporate loans came to 82 per cent in the financial year. The absolute financed emissions are subject to the Group-wide target of achieving net-zero emissions by 2050. In the financial year, financed emissions from investments in companies resulted in 4,520,772 tonnes of CO₂e. The volume invested amounted to € 5,929.3 million.

The following table provides a breakdown of financed emissions (Scope 1 and 2) according to the NACE code (statistical classification of economic activities in the European Community) for the 2024 financial year. The weighted average PCAF data quality factor for the entire portfolio is 1.4. The PCAF data quality factor is a measurement framework used to assess the quality of data used to measure and report GHG emissions in financial portfolios. The data quality factor ranges from 1 (the highest quality level) to 5 (the lowest quality level). The factor is based on the availability and accuracy of the data used to calculate emissions, with lower data quality factors assigned to direct, verifiable data and higher-value data quality factors assigned to estimates or inaccurate data. The data quality factor is provided by ISS, weighted according to the financed volume and aggregated at the NACE code level.

The PCAF data quality factor covers 100 per cent of company-financed emissions.

Absolute financed emissions from government bonds (Scope 3.15)

Financed emissions from investments in government bonds cover the Scope 1, Scope 2, and Scope 3 emissions produced by the countries in question. The data for Scope 1 emissions from countries that report corresponding figures on an annual basis is sourced from ISS under the United Nations Framework Convention on Climate Change (UNFCCC). Emissions data from countries that do not disclose corresponding figures on an annual basis are estimated by ISS on the basis of climate-relevant data published by research institutes, state authorities and international organisations.

ISS obtains Scope 2 and Scope 3 emissions data from OECD data on GHG emissions related to international trade. Sixty-four countries have reported emissions data on this basis. The OECD allocates 137 countries to the “Rest of the World” category. ISS allocates the GHG emissions from this category to individual countries on the basis of macroeconomic metrics.

The data covers 99 per cent of direct investments in government bonds. UNIQA’s financed emissions are calculated on the basis of the value of the respective government bond, divided by GDP adjusted for inflation, multiplied by the sum of Scope 1, Scope 2 and Scope 3 emissions produced by the country in question according to the PCAF methodology.

During the financial year, financed emissions from investment in government bonds amounted to 1,924,006 tonnes CO₂e. The volume invested amounted to € 7,105.6 million.

Emissions data for investments in corporate shares and bonds is sourced from ISS. Raw data reported to ISS on a monthly basis is imported into a data management system to monitor and assess data relevant for integration into the investment process. ISS uses internal models to model data where corporate emissions data is unavailable.

2.4 Climate change in corporate business

2.4.1 Material impacts, risks and opportunities and their interaction with strategy and business model (ESRS 2 SBM-3)

The materiality assessment identified several material impacts and risks linked to climate change related to corporate business. By offering sustainable products and product components as well as advisory services that enable customers to reduce the level of risk to which they are exposed due to the impacts of climate change, insurance customers benefit from positive impacts while UNIQA secures a financial opportunity. Conversely, a lack of control metrics, strategies, policies and action plans together with an associated lack of engagement on the part of UNIQA can reduce the willingness of corporate customers to address negative impacts with regard to climate change adaptation and mitigation. Climate change also constitutes a core physical risk for UNIQA itself, as it increases the frequency and intensity of natural disasters such as floods, hail, storms or extreme temperatures. If they were to occur, these events could result in losses to insurance customers that are yet to be covered under current insurance premiums.

2.4.2 Policies related to climate change mitigation and adaptation (E1-2)

Requirements related to sustainability in the corporate insurance business are centrally governed by the UNIQA Corporate Business Strategy. The Chief Corporate & Affinity Officer is responsible for implementing the corresponding requirements.

The sustainability strategy comprises three key pillars:

• Strengthening customer resilience to climate-related risks
• Decarbonisation of the insurance portfolio
• Development of new sustainability products and product components

2.4.2.1 Strengthening customer resilience to climate-related risks

UNIQA is committed to taking on an active role in helping customers strengthen their financial resilience and managing the impacts of climate change adaptation.

Advice and prevention: UNIQA advises companies on how to strengthen their resilience to the risks arising from climate change. First aid measures are provided to this end, whereby policyholders are given access to advisory services to mitigate losses in the event of severe weather events. Preventive actions to avert climate-related risks are also prepared and offered.

Improving competency and quality: UNIQA aims to improve the ability of its customers to address climate risks, to improve the quality of standard risk resilience measures and to offer comprehensive advice to meet growing demand for coverage of emerging climate risks among companies.

2.4.2.2 Decarbonisation strategy and nuclear energy for the insurance business

In 2023, decarbonisation targets were published and the following actions defined with the goal of achieving net-zero emissions:

Fossil fuel phase-out

The first steps towards decarbonisation were taken back in 2019 with UNIQA’s commitment not to enter into new business with customers that engage in coal-related activities. As a member of the Green Finance Alliance (GFA), UNIQA has published a schedule for the phase-out of its activities in the coal, oil and gas sectors. Since then, premiums from the fossil fuel business and the decarbonisation status of the affected customers have been reported on an annual basis. The phase-out of fossil fuels in the insurance business involves the following key elements:

Coal

• Since 2019, no new insurance contracts have been concluded with companies that generate more than 30 per cent of their revenue from activities in the coal sector (production, processing, power generation)
• Since 2023, no new business has been entered into with companies that generate more than 5 per cent of their revenue from activities in the coal sector
• By 2030, all portfolio items with companies that generate more than 5 per cent of their revenue from activities in the coal sector will expire

Oil

• Since 2024, no new insurance contracts have been concluded with companies that generate more than 30 per cent of their revenue from activities in the oil sector (production, processing, power generation)
• By 2030, all portfolio items with companies that generate more than 5 per cent of their revenue from activities in the natural gas sector will expire

Natural gas

• From 2025 onwards, no new insurance contracts will be concluded with companies that generate more than 30 per cent of their revenue from activities in the natural gas sector (production, processing, power generation)
• By 2035, all portfolio items with companies that generate more than 5 per cent of their revenue from activities in the natural gas sector will expire
• In deviation from the gas phase-out stipulated in the decarbonisation strategy, in 2025 UNIQA will make a temporary exception for the territory of Ukraine and offer new insurance coverage for small-scale gas-fired power plants in light of the ongoing war and the energy infrastructure that has been severely affected as a result

Companies that have made a public commitment to the decarbonisation of their core business in accordance with the Paris Agreement are exempt from the phase-out of fossil fuels.

Nuclear energy

UNIQA does not insure nuclear energy risks either directly or through reinsurance.

Expansion of the renewable energy business

Decarbonising energy supplies plays a crucial role in limiting global warming to 1.5°C in line with the targets set forth in the Paris Agreement. UNIQA is therefore working on renewable energy insurance solutions to support this growing sector.

The premium volume in the renewable energy segment is growing year after year. Renewable energy premiums are categorised as follows:

• Premiums from companies whose main economic activity is generating power from renewable energy sources (solar energy, wind, biomass, hydropower, geothermal energy)
• Premiums for insured renewable energy installations owned by companies that primarily engage in other economic activities (photovoltaic installations, hydropower plants, biomass power plants)

Engagement with companies with the highest share of emissions in the portfolio

A portfolio analysis of insurance-associated emissions revealed that CO₂ emissions are broadly spread across the entire portfolio. However, the largest emitters were found to be large industrial companies. In response, a new objective was formulated, according to which the top 10 emitters in each market would be required to undergo an in-depth analysis. As of 2024, in each country where UNIQA operates and where insurance-associated emissions are calculated, the top 10 CO₂ emitters in the portfolio are evaluated with regard to whether they have a climate strategy in place and pursue targets in line with the 1.5°C trajectory set forth in the Paris Agreement. This metric supports UNIQA’s net-zero emissions target and provides greater insight into how the specific customer structure in each market – especially in the high-emission sectors – can be used to work toward the decarbonisation goal for the portfolio. Examples of carbon-intensive sectors include the heavy industrial sector, the energy sector and the transport sector.

Specific definitions and timetables have been published in the decarbonisation statement. The declining absolute premiums for fossil fuel companies and their declining share in insurance premiums underscore the achievement of the targets set and confirm the steady trend toward portfolio decarbonisation.

2.4.2.3 Development of new sustainability products and components

UNIQA is pushing ahead with the development of innovative sustainability products and components in response to increasing market requirements and growing demand for environmentally friendly solutions. This strategy also encompasses the development of new business lines through which customers are supported in reducing negative impacts related to climate change mitigation, climate change adaptation and energy consumption.

UNIQA also promotes a sustainable recovery from loss events through specific new solutions and product components. In the financial year, for example, the new Green Clause product component was launched on the basis of which the additional costs for the ecological restoration of damaged properties will also be borne in loss events.

2.4.3 Actions and resources in relation to climate change policies (E1-3)

In 2024, the launch of consulting in relation to sustainable business solutions marked a key step in the measures taken in the corporate business. A comprehensive calculation of insurance-associated emissions in the portfolio was also carried out for the entire group, supplemented by a detailed portfolio analysis. Metrics and specific targets for the decarbonisation of the insurance portfolio were established on this basis. Both the sustainability strategy and the sustainability targets were published as part of improving transparency and the focus on targets. Another main priority involved the establishment of a framework and continuing with the strategic phase-out of fossil fuels. At the same time, UNIQA is increasingly focused on solutions and partnerships for renewable energy insurance.

Progress on the decarbonisation of the insurance portfolio

In its climate strategy, UNIQA sets out its aim to decarbonise its corporate customer portfolio in line with the climate objectives of the Paris Agreement. As part of these efforts, companies that operate in the coal, oil and natural gas sectors are analysed on a continuous basis. The focus here is on assessing the commitment of the corresponding customers to climate-related targets and decarbonisation strategies.

2022 is used as the base year for measuring the premiums for fossil fuels.

Since 2023, all remaining coal, oil and natural gas customers in the portfolio have been monitored based on available data with regard to their commitment to climate-related targets and relevant climate strategies. The results of the first step (analysis of publicly available data) provide a clear overview of which customers may require further analysis. In this case, direct written contact would be made. This does not include companies that have set science-based climate targets (time horizon: 2050, including five-year interim targets) and are decarbonising their core business in line with the Paris Agreement, or projects that are in line with the Paris targets. According to the analysis of the published data, customers that already publish climate and decarbonisation targets accounted for 16 per cent of customers in the financial year. UNIQA plans to work with coal and oil customers who have yet to define their own decarbonisation pathway in order to obtain confirmation of their climate plans by the end of 2026. Contracts with coal and oil customers that do not commit to emissions reduction plans in line with the Paris Agreement will not be renewed. The same procedure is planned to be applied to natural gas customers from 2031 onwards.

The status presented in the table is to be understood as follows:

Status A: The company has set climate targets in accordance with the climate pathway under the Paris Agreement. Information available from public sources.

Status B: No public decarbonisation plan but measures are being taken to develop a separate sustainability agenda.

Status C: No relevant climate strategy information available.

Share of customers with climate targets in place

As a member of the Green Finance Alliance (GFA), UNIQA wants to ensure that all insured companies within the European Union that are required to report under the Non-Financial Reporting Directive (NFRD) and/or the Corporate Sustainability Reporting Directive (CSRD) since 2024 have set climate targets compatible with the 1.5°C limit pathway defined in the Paris Agreement (net-zero targets or SBTi targets) for their respective core business by 2040. As a first step, the current status in the financial year was determined based on the following metrics for Austrian corporate customers:

Results of the sustainability risk assessment

UNIQA created the UNIQA Corporate Business Environmental, Social and Governance Standard in 2023 to enable its business processes to adapt to emerging sustainability risks. This standard supplements the UNIQA Corporate Business Standard. It outlines the critical impacts of ESG factors on business decisions and describes how to approach customers in sectors exposed to greater sustainability risks. The standard also covers the cooperation with customers required before and after a claim is submitted to increase their resilience to climate risks.

The following sustainability risks are assessed:

As the data used for the Swiss Re ESG risk rating is industry-specific, additional analyses were carried out for customers found to have a potentially high sustainability risk. Country factors were used to obtain an overview of the portfolio’s ESG risk exposure. In the next step, during the financial year, an analysis was conducted to determine the number of enquiries that were rejected due to sustainability risks. The analysis starts with the fossil fuel business. Information on how many enquiries were passed on for an ESG assessment and how many were rejected is reported. This also makes it possible to quantify the financial impacts of the transition risks.

In early 2025, UNIQA will publish its official framework, which sets out the procedure for forwarding enquiries that may involve sustainability risks, the assessment process and reporting requirements. Internal processes will then be improved on this basis through updates to guidelines and detailed guidelines for ESG advisors on the ESG assessment procedure. The ESG Advisor Policy is reviewed every six months to ensure that it is up to date.

Results of the analysis of the companies with the highest emissions in the portfolio

In its Corporate Business Sustainability Strategy, UNIQA outlines its commitment to analysing the top ten issuers as one of the actions taken to decarbonise its portfolio. The results show that the top 10 emitters combined account for half of the total emissions. Several metrics were defined for the analysis, including the company’s net-zero commitment, SBTi commitments and the availability of reliable information on the company’s sustainability agenda. The analysis revealed that 35 per cent of the companies have set net-zero targets; 44 per cent of the companies disclose specific information on their sustainability agenda, even though they have not explicitly committed to net-zero; and 21 per cent of companies do not publish sustainability information.

Renewable energy business

In the financial year, the renewable energy segment achieved a premium volume of € 23.3 million.

The UNIQA corporate customer business consistently supports business growth through renewable energy in all countries in which UNIQA operates. Examples include strategic partnerships with banks as well as photovoltaic and wind power companies. In addition, UNIQA offers special products for photovoltaic power plants and small-scale photovoltaic installations. Advice is also provided during the planning phase of renewable energy projects to enhance the safety and resilience of installations.

2.4.4 Targets related to climate change mitigation and adaptation (E1-4)

In its sustainability strategy, UNIQA states its public commitment to achieving net-zero emissions in Austria by 2040 and across the Group by 2050 for its insurance portfolio. Five-year interim targets have also been set for reducing insurance-associated Scope 3 emissions on the path towards the net-zero target. 2022 is used as a base year.

Owing to the improved data quality, the insurance-associated Scope 1 & 2 emissions for the Austrian portfolio were retroactively recalculated for the 2022 base year, changing from 20,164 to 34,336 tonnes of CO₂e as a result.

The following aspects were taken into account when setting the interim decarbonisation targets:

• Local decarbonisation ambitions for the most important countries in terms of premium volumes in which UNIQA operates (Austria, Poland, Czechia, Slovakia, Hungary, Romania, Croatia, Bulgaria)
• Current sector distribution of the portfolio
• Major decarbonisation initiatives (e.g. such as the phasing out of fossil fuels, growth of the renewable energy business)
• The countries’ nationally determined emission reduction plans for the industries represented (in particular energy, heavy industry, transport, and waste); however, these are not currently validated in terms of whether they align with the Paris Agreement’s target of limiting global warming to 1.5°C
• The level of ambition for the interim targets is in line with the decarbonisation commitments of the states represented and is reinforced by the comprehensive decarbonisation agenda
• At present, UNIQA has no specific targets in place for premiums from renewable energy sources or sustainability products

2.4.5 Gross Scopes 1, 2, 3 and Total GHG emissions (E1-6)

As a member of the Green Finance Alliance (GFA), UNIQA aims to report on its insurance-associated GHG emissions and to set targets to reduce its emissions to net zero in Austria by 2040 and across the Group by 2050. In 2023, the PCAF method for measuring insurance-associated emissions was applied for the first time to analyse the Austrian corporate business portfolio. In the 2024 financial year, insurance-associated issues were calculated for the entire UNIQA Group.

In the financial year, insurance-associated emissions from the corporate business amounted to 172,888 tonnes of CO₂e. The breakdown by the respective Scope is shown in the table.

The calculations take into account insurance-associated emissions produced by the corporate business in the property and technology insurance and liability insurance business lines in Bulgaria, Croatia, Poland, Romania, Serbia, Slovakia, Czechia, Austria, Ukraine and Hungary. These business lines cover 96 per cent of the premiums for the entire industrial insurance portfolio. Calculations were not made for the remaining markets of Albania, Bosnia and Herzegovina, Kosovo, Montenegro and North Macedonia due to incomplete data. For these countries, figures were extrapolated based on the respective premium share. Due to the low data availability, small and medium-sized companies that source standardised products were not included in the calculation.

Insurance-associated emissions were calculated for the insurance sector in accordance with Part C of the PCAF Standard:

• Option 1a: (insurance premium/revenue) × total emissions of the insured entity. This method corresponds to PCAF quality score 1.

Data on emissions is taken from the annual non-financial reports published by the respective companies. Accordingly, the figures are always subject to a time delay as insurance-associated emissions are calculated in January of each year on the basis of emissions data for the previous year. The emissions data for customers from 2023 was used for the portfolio calculation in the financial year.

Data on company revenue was sourced either from the underwriting platform linked to the Bureau van Dijk database or from publicly available financial reports published by customers.

Where public information on revenue was not available, other public sources containing the companies’ financial data were used. The PCAF formula was used without the inclusion of revenue (PCAF Option 3) for public institutions, companies with negative revenue and non-commercial companies.

Option 3 of the PCAF standard was used for corporate customers who do not report their own emissions:

• Option 3: Insurance premium × emissions intensity of revenue (based on the NACE code). This calculation corresponds to PCAF quality score 5.

The emission factors applied are the average emissions intensities of the revenue (Scope 1, 2 and 3) generated in the respective sector (NACE code) of Swiss Re (tonnes of CO₂e per € million of revenue).

In accordance with Part C of the PCAF Standard, construction all-risk products and assembly all risks insurance products as well as public administration activities (defined by UNIQA as NACE 84) are not included in the calculation of insurance-associated emissions.

The PCAF data quality score for the entire portfolio in UNIQA’s corporate business is 4.7.

2.5 Climate change in the retail business

2.5.1 Material impacts, risks and opportunities and their interaction with strategy and business model (ESRS 2 SBM-3)

UNIQA has identified several material impacts, opportunities and risks in relation to the retail business. Sustainable elements in retail business products can help customers manage climate change adaptation while reducing their risk exposure to climate-related impacts. UNIQA can provide incentives for decarbonisation and increased energy efficiency among customers through corresponding products. In the medium to long term, the rise in the number of natural disasters constitutes a material physical risk for UNIQA. Among other things, this trend is leading to considerable insurance claims in the agriculture, motor vehicle and household business lines.

2.5.2 Policies related to climate change mitigation and adaptation (E1-2)

The aim of the Group’s strategic ambitions in the retail business is to help customers reduce their emissions. UNIQA Austria developed an ESG strategy for the retail business in 2024. The scope of the ESG retail strategy is limited to the Austrian market and focuses on the product development process in the property insurance, liability, accidents and motor vehicle business lines. With regard to the environment, the ESG retail strategy relates to climate change adaptation and climate change mitigation.

With a Group-wide product development process policy, UNIQA has set itself the goal of developing products and services with a sustainable mindset and of pursuing an environmentally and socially sustainable approach to value creation. Integrating sustainability matters into product development aligns with the Group-wide sustainability strategy. In the product development process, a target market is defined for each product, taking into account the characteristics, risk profile, complexity and properties of the product in question. Product testing assesses whether the product meets the defined needs, objectives and characteristics of the target market, including sustainability objectives. UNIQA conducts ongoing post-launch monitoring and regularly reviews products to identify any necessary improvements and ensure that the product continues to meet the needs, characteristics and (sustainability) objectives of the identified target market. In Austria, a comprehensive ESG Check was also implemented in the financial year as part of the product development process. This check is based on a guideline for ESG in the product development process, which provides a structured tool for internally reviewing a product’s sustainability. It defines material environmental characteristics, including climate change adaptation along with reducing energy consumption and emissions, and social characteristics. The United Nations’ Sustainable Development Goals (SDG) likewise provide important guidance in this regard. In order to ensure that the screening criteria are relevant and up-to-date, the guideline will be reviewed on an annual basis from 2025 and updated as necessary. While the evaluation process is conducted by a cross-functional team, operational responsibility for the ESG Check rests with the respective product managers. An equally comprehensive ESG Check is yet to be rolled out in other markets. Customer preferences with respect to ESG criteria are also consistently taken into account in product development on the basis of trend and market observations as well as market research. In Austria, responsibility for implementing these measures lies with the Head of Performance Management, and for the insurance companies and their service providers outside of Austria with the Head of Business Development International. Together with the Management Board members responsible for the Customers & Markets Austria and Customer & Markets International departments, they are responsible for ensuring that the processes are implemented with all the necessary steps.

Another key factor for the ESG-related product assessment is raising awareness among product managers that sustainability issues need to be integrated into the design of new and revised insurance products. In December 2024, for example, the content of the ESG Check was communicated to product managers as part of a Product Owner Governance training course.

In addition to taking sustainability matters into account in the product landscape, great importance is attached to integrating this topic into the advisory process. To help advisors improve their sustainability expertise, UNIQA Austria has developed a comprehensive training strategy that has been implemented since 2024. The strategy includes newly developed seminars, workshops and e-learning courses, as well as the integration of sustainability topics into existing training formats. In other markets in which UNIQA operates, attention will also be paid to ensuring that advisors are highly qualified through workshops, training courses, educational courses, e-learning courses and similar formats from 2025 onwards.

2.5.3 Actions and resources in relation to climate change policies (E1-3)

In order to achieve the objectives of the Sustainability Strategy and the Product Development Process Policy and to implement the identified decarbonisation measures, UNIQA was once again able to roll out numerous initiatives in the retail business in the financial year and to further integrate sustainability matters into products and consulting. It is not currently possible to estimate the GHG savings achieved and expected in connection with the climate change mitigation actions undertaken to date.

Actions in Austria

New ESG components were launched on the market in the Austrian product landscape through product innovations and updates. The “renewable energy technology” component of property insurance now gives customers the ability to insure energy generation and recycling facilities such as solar technology and heat pumps independently of other coverage. In the mobility sector, a new car tariff has been introduced, including dedicated services for electric vehicles and their batteries as well as a carbon pricing model. This model offers price reductions for low-consumption vehicles.

In addition, between April and December 2024, a university course on sustainability among financial service providers was trialled in Austria to offer comprehensive training for managers.

Actions in international markets

Other companies in the UNIQA Group are also increasingly focusing on sustainability matters in their products. For example, a carbon pricing model for vehicles that offers advantages for vehicles that produce lower CO₂ emissions has been on the market in Czechia and Slovakia since 2023 and in Croatia since 2024.

2.5.4 Targets related to climate change mitigation and adaptation (E1-4)

Quantitative targets and corresponding action plans for the strategic focus areas in the retail business in accordance with the target of 1.5°C defined in the Paris Agreement are still being prepared and will be published within the next two years. Until then, the focus will be on integrating ESG criteria into product development, as well as on updating and providing appropriate customer advisory. There is currently no mandatory guideline in place for measuring the effectiveness of ESG criteria in product development. The ESG guideline and/or the associated ESG Check in the product development process merely ensure the consistent internal evaluation of ESG features and their transparency. A quantitative data model is currently being developed to supplement this and will provide the basis for further monitoring of the ESG Retail Strategy in the future.

2.5.5 Gross Scopes 1, 2, 3 and Total GHG emissions (E1-6)

Regarding the retail business, UNIQA quantifies insurance-associated Scope 3 emissions from the motor portfolio of private individuals based on a calculation model and estimates in line with the PCAF Standard. This produces figures on GHG emissions that can be allocated to the insured vehicles. Emissions produced by a vehicle are attributed to the insurance company on a pro rata basis. The resulting findings make it possible to map the impacts of vehicles insured by UNIQA on the climate.

In order to calculate the corresponding emissions, the annual distance travelled by the respective vehicle is multiplied by a country-specific attribution factor. The allocation factor applied for the pro rata allocation of insurance-associated emissions produced by the UNIQA motor portfolio is derived from an additional document published by PCAF. The countries listed in the document are taken into account on the basis of the factors specified therein. The share of insured emissions in Austria is 7.71 per cent. A country-specific average of 4.48 per cent is applied for countries that are not listed.

Due to the lack of sufficient local databases to extrapolate the average distances travelled in certain countries, UNIQA applies the figures released by the German Federal Motor Transport Authority as the source. When calculating emission figures for vehicles powered by combustion engines and hybrid engines, the respective average emission figures for each listed vehicle specific to the brand and year of registration published in the European Environment Agency (EEA) database are taken into account. When calculating emissions produced by electric vehicles, the country-specific electricity mix is taken into account through the grid emission factor, which reflects the emissions intensity of the respective country’s electricity generation.

In general, the quality of the data used is evaluated in line with the PCAF Standard on a scale of 1 to 5. The lower the score, the higher the quality. The PCAF Standard provides three different options for calculating insurance-associated emissions. The first option is based on actual vehicle-specific emissions derived from actual consumption or performance data. The second option is based on estimated vehicle-specific emissions derived from statistical data. The third option is based on estimated non-vehicle-specific emissions derived from general statistical averages. Due to the limited availability of data, UNIQA uses all three options.

In light of the uncertainty with regard to primary data in certain countries and the limited availability of country-specific secondary data for kilometres driven, a PCAF score of 5 was calculated for the financial year. In particular, the dependence on secondary sources makes it difficult to provide a more precise account of emissions. In certain instances, the current data quality aligns with the definition of better (lower) scores, such as emission intensity, based on the specific make and model of the vehicle. At present, it is not always possible to calculate emissions separately for individual vehicle groups for the Austrian market. In this scenario, figures are extrapolated on the basis of the parts of the insurance portfolio for which emissions information is available. In the financial year, insurance-associated emissions from the motor portfolio amounted to 393,405 tonnes of CO₂e.

UNIQA plans to improve the accuracy and transparency of its motor portfolio calculations. One of the primary objectives is to refine the data sources used to calculate the kilometres travelled in the respective countries. This can be achieved through external partnerships or by using meaningful internal data sources, which would require collecting more detailed information on consumption behaviour, for example with regard to charging cycles and kilometres driven.

2.6 Climate change in relation to real estate and OWN OPERATIONS

2.6.1 Material impacts, risks and opportunities and their interaction with strategy and business model (ESRS 2 SBM-3)

UNIQA has identified several material impacts, risks and opportunities associated with real estate and its vehicle fleet with regard to climate change adaptation, mitigation and energy consumption. The failure to adequately reduce GHG emissions (Scope 1 and 2) in relation to both real estate and the vehicle fleet represents one material impact, which has the potential to further increase the GHG intensity in the atmosphere. Another material impact stems from energy consumption, which could put significant strain on the power grid in the event of energy crises or greater dependence on volatile renewable energy. To counteract this, actions to increase the energy efficiency of buildings and investments in renewable energy are planned in order to reduce the load on the grid and to cover a share of UNIQA’s energy requirements. In addition, there is a physical climate risk that extreme weather events may cause damage to both owner-occupied properties and properties held as financial investments. Further transition risks result from increasing regulatory requirements governing emissions and energy efficiency, which may ultimately result in stranded assets in the event of non-compliance. Particularly in times characterised by limited energy availability and high energy costs, dependence on external energy suppliers could pose a financial risk for the ongoing operation of UNIQA sites.

To assess the risks of environmental events to investment properties, a climate risk analysis was carried out in the financial year for 74 per cent of the properties with a fair value of around € 3.0 billion (see also the “Investments and taxonomy-eligible activities” chapter of the Principles for reporting on the EU taxonomy). A high climate risk was identified for two of the properties analysed. In the future, climate risk analyses will be carried out on investment properties as well as owner-occupied properties to ensure that the entire owned property portfolio has been assessed with regard to risk. The climate scenario RCP 8.5 (global temperature rise of 4.3°C by 2100) for the period 2020 to 2100 was applied for climate risk analyses. The climate risks assessed, including floods, storms, and heat stress, are based on the specifications of the EU Taxonomy. Based on the analysis, a financial risk of € 7.6 million was determined for the EU taxonomy-eligible investment properties. The risks identified will be examined in detail and shortcomings remedied with appropriate measures.

2.6.2 Policies related to climate change mitigation and adaptation (E1-2)

The climate strategy pursued by UNIQA aims to mitigate the risks of climate change while simultaneously leveraging opportunities to drive the transformation to a climate-neutral economy. The strategy is closely linked to the goals of the Paris Agreement and follows the 1.5°C trajectory. This applies to both owner-occupied properties held by UNIQA and investment properties. Responsibility for the operational implementation of the strategy lies with the member of Management Board for Operations with respect to the vehicle fleet and the member of the Management Board for Asset Management with respect to the properties. The strategy encompasses climate change adaptation, climate change mitigation, energy efficiency and renewable energy, and is based on the following priorities:

Decarbonisation of real estate and increase in energy efficiency

UNIQA has set itself the SBTi-validated target of reducing the GHG emissions (Scope 1 and 2) of owner-occupied properties by 42 per cent by 2030 compared with the base year of 2021. Under the long-term climate strategy, owner-occupied properties held by UNIQA as well as investment properties in Austria will reach net-zero emissions by 2040 and in all other countries in which UNIQA operates by 2050. To this end, measures such as thermal renovations, transitioning to sustainable heating systems, greater use of certified electricity from renewable sources and improving energy efficiency are planned with actions such as optimising heating, air-conditioning and ventilation systems along with expanding energy monitoring.

Electrification of the vehicle fleet

Electrification of the vehicle fleet is another lever for decarbonisation. The goal is to achieve a complete transition to electric vehicles by 2030 in Austria and by 2040 across the Group. Plans include accompanying the transition with an expansion of the charging infrastructure for electric vehicles and additional training on saving fuel.

Use of renewable energy

For several years now, UNIQA sites in Austria have exclusively purchased energy from renewable sources for owner-occupied properties, and since 2024, only electricity certified according to Eco-label Guideline UZ 46 has been purchased. In addition, photovoltaic installations are continually being expanded in order to reduce both energy consumption and the company’s environmental footprint. A transition to renewable energy is also planned for heating systems. By 2035, all oil and gas heating systems and direct heating systems at the Austrian sales offices will be replaced by more environmentally friendly alternatives such as district heating, heat pumps and biomass heating systems.

Management systems

As a further component of the sustainability strategy, UNIQA integrated its existing in-house energy management system into an EMAS and ISO 14001 certified environmental management system in the reporting year at both the Austrian sales offices and PremiQaMed Group company sites. The objective behind this move is to continuously improve environmental performance based on a systematic approach and to minimise negative environmental impacts.

2.6.3 Actions and resources in relation to climate change policies (E1-3)

In 2024, UNIQA invested € 3.0 million in order to reduce the GHG emissions of properties and to adapt to climate change. A further € 6.6 million investment volume is planned for 2025. These investments are aimed at achieving the Paris climate targets and interim targets in line with limiting global warming to 1.5°C and improving the physical resilience of the properties owned by UNIQA. They make a significant contribution to achieving UNIQA’s SBTi targets and net-zero emissions by 2040 in Austria, and by 2050 in all other countries in which UNIQA operates.

In terms of buildings, the transition to sustainable heating systems such as heat pumps, biomass heating and district heating plays a major role. A further € 0.5 million was invested in 2024, with an additional € 1.5 million investment planned for 2025. In the financial year, 4 fossil fuel heating systems were replaced by greener alternatives, resulting in an estimated 25 tonnes of Scope 1 GHG emissions saved each year. By 2035, all oil and gas heating systems at the Austrian sales offices will be replaced by more environmentally friendly alternatives such as district heating, heat pumps and biomass heating systems.

UNIQA is also investing in reducing energy consumption. Several properties have been thermally renovated to date, particularly through the insulation of facades and basement ceilings and by replacing windows. In 2024, € 2.5 million was allocated to thermal renovations, with a further € 5.2 million earmarked for 2025. The measures taken to date have been accompanied by the expansion of the comprehensive energy monitoring system launched in Austria back in 2018 to five additional sites in Central and Eastern Europe. Energy monitoring has enabled UNIQA to achieve estimated annual savings of 66 MWh in district heating and 112 MWh, reducing Scope 1 and Scope 2 emissions (location-based) by an estimated 39 tonnes of CO₂ as a result. The monitoring system is designed not only to increase efficiency, but also to continuously optimise energy consumption. The aim behind this is to reduce dependence on external energy suppliers and increase resilience in the event of energy crises.

Photovoltaic systems with a total capacity of 205 kWp were installed at three sites in Austria in the financial year. According to estimated figures, this will reduce Scope 2 GHG emissions (location-based) by 64 tonnes of CO₂e each year.

In addition, 39 electric vehicles were newly acquired in Austria, increasing the share of this propulsion type in Austria from 48 per cent to 57 per cent and saving an estimated 54 tonnes of Scope 1 GHG emissions each year.

The materiality of these measures is clearly reflected in their prioritisation: The transition to renewable energy and improving energy efficiency are key to reducing Scope 1 and Scope 2 emission and achieving the decarbonisation targets.

The financial resources allocated to these measures highlight UNIQA’s commitment to achieving its climate targets while adapting its real estate portfolio and vehicle fleet to the regulatory and physical requirements brought about by climate change. In 2025, the energy and emissions data from 2023 and 2024 will be analysed to ensure that investments are being channelled to the right areas. Further detailed action plans for achieving the SBTi targets will then be developed on this basis, which will be published at the latest upon the publication of the annual report for the 2026 financial year.

2.6.4 Targets related to climate change mitigation and adaptation (E1-4)

UNIQA aims to achieve net-zero emissions in Austria by 2040 and Group-wide by 2050 for both UNIQA’s owner-occupied properties and investment properties. The goal for the vehicle fleet is to achieve this target in Austria by 2030 and Group-wide by 2040. To this end, UNIQA has set an interim science-based target and is committed to reducing its Scope 1 and Scope 2 emissions from owner-occupied properties and vehicle fleet by 42 per cent by 2030 against the base year of 2021. Up to and including 2024, Scope 1 and Scope 2 GHG emissions had fallen by a total of 13.3 per cent compared with the baseline value. The baseline value was changed retrospectively in 2024 to 14,510 tonnes of CO₂e, and now includes all owner-occupied properties (owned and leased). The interim target has been validated by SBTi and is consistent with the 1.5°C limit pathway set in the Paris Agreement.

Use of renewable energy

By 2035, 10 per cent of the electricity consumed by Austrian sales offices over the course of the year will be covered by self-generated photovoltaic electricity. At present, this share stands at 8.7 per cent.

EU Taxonomy

Alignment with the EU Taxonomy provides the main benchmark with regard to investment properties. The target was to increase the EU Taxonomy alignment of investment properties to 74 per cent by the end of 2024 (2023: 63 per cent).

As things stand, it is not possible to provide detailed information on the contribution of the respective decarbonisation levers towards achieving individual targets.

2.6.5 Energy consumption and mix (E1-5)

In the financial year, the total energy consumption of owner-occupied properties combined with investment properties came to 258,168 MWh. As primary data for the entire year is only available for a certain number of the properties, estimation methods have been employed for properties for which primary data is only partially available or not available at all. 70 per cent of owner-occupied properties (in terms of m² of floors pace; owned and leased) are covered by primary data. 32 per cent of the primary data collected is based on current annual data, whereas 38 per cent is based on historical data such as heating consumption from 1 July 2023 to 30 June 2024. This approach has been validated through internal analyses and comparisons between historical and current annual consumption data. At present, neither current nor historical primary data is available for 30 per cent of owner-occupied UNIQA properties, resulting in a secondary data method being applied instead. By contrast, this share rises to 100 per cent for investment properties. Average values are calculated for these buildings on the basis of energy-relevant building characteristics, and electricity and heat consumption are extrapolated from these figures. Building characteristics that may be considered in the calculation include type of use, floor space, year of construction (if not known, the average energy expenditure category for the years of construction 1977 to 2008 is used as a benchmark), type of electricity purchased, geographical location, type of ventilation, air conditioning and heating system, and energy expenditure categories extrapolated on the basis of heating and cooling degree days. The averages for the respective building characteristics were obtained from databases that are not publicly accessible. The use of smart metres and green leases improves data quality, continuously increasing the share of properties for which primary data is available as a result. Future action plans and property-specific optimisation measures can be developed on this basis for the entire real estate portfolio. Nevertheless, despite account for the building characteristics, significant differences may arise between estimated and actual energy consumption.

The average heat consumption of owner-occupied properties and investment properties is 90 kWh/m², with electricity consumption in particular amounting to 112 kWh/m².

Of the electricity purchased that is consumed in owner-occupied properties, 65 per cent comes from renewable energy sources. Information on the share of renewable energy sources is not available for investment properties.

The energy consumption of the vehicle fleet came to 15,265 MWh, of which 2 per cent was from renewable energy sources. With an annual mileage of 27,276,702 kilometres, the fleet’s specific energy consumption is 56 kWh/100 km.

Data on the vehicle fleet was aggregated using software-based fuel card evaluation systems, petrol station receipts, expense claims and driver’s logbooks. In cases where data was incomplete or unavailable, an estimate was made at the individual vehicle level, taking into account the respective propulsion or fuel type and the vehicle type. This estimate is based on data from comparable vehicles in the company’s fleet along with data sourced from publicly accessible databases.

The fleet data will be analysed in 2025 to outline further measures for achieving the SBTi targets by the 2026 reporting year at the very latest.

Energy intensity

The energy intensity of activities in high climate impact sectors per net revenue from these sectors amounted to 1,464 MWh per € million of net revenue and related exclusively to real estate activities (NACE code L). The numerator for calculating energy intensity is the total energy consumption of investment properties. The denominator comprises all rental income from these properties (see “Investments”, “Investment properties” in the Notes to the Consolidated Financial Statements).

2.6.6 Gross Scopes 1, 2, 3 and Total GHG emissions (E1-6)

A calculation tool (akaryon ESG Cockpit) was used to calculate the emissions of the real estate and the vehicle fleet and to assign them to the individual scopes. It specifies factors for each substance, such as fuel consumed by the vehicle fleet, which are used to calculate the resulting emissions. These factors are primarily based on the ecoinvent database, version 3.10 (GWP 100, IPCC 2021) and are managed and continuously updated by the software provider. They are applied to the real estate and the vehicle fleet of all consolidated companies.

The input data were determined in accordance with the methods described in “Energy consumption and mix (E1-5)”. Refrigerants were only included in the calculation for buildings for which primary data were collected.

In cases where primary data on energy consumption was not available, it was estimated on the basis of the following criteria: property size, year of construction, asset class, heating type, green electricity supply (100 per cent yes/no) and the presence of an air conditioning system.

Emissions resulting from electricity consumption are calculated on the basis of the country-specific average electricity mix. If it can be verified that exclusively green electricity is purchased for a property, emissions are set at zero. Total emissions from district heating are allocated to Scope 2. Based on the assumption that energy consumption will be lower for empty properties, the respective consumption values are reduced by 50 per cent compared with occupied properties.

Emissions produced by electricity and heat consumption at investment properties are included in total under Scope 1 and Scope 2.