Sustainable finance and ESG risk management

Group Risk Management Framework (RMF) and CR&E Risk Management Framework

The Group Risk Management Framework defines the duties of the Group Risk Management General Division (GRMGD), which is independent from the business units as a 2nd line of defence, having full responsibility for the establishment of the Group’s risk strategy and Risk Appetite Framework, as well as for monitoring all risks assessed as material through the RIMA process, including climate-related and environmental risks undertaken by the Eurobank Group.

In accordance with relevant supervisory expectations and the Group’s enhanced governance operating model for the incorporation of CR&E risks across the three lines of defence (described in the ESG Governance section), new roles and responsibilities regarding climate risk management have been embedded in the Group Risk Management Framework.

Eurobank finalized its CR&E Risk Management Policy, evaluating the effects of climate-related and environmental risks on its business, as well as supporting the risk management decision-making.

Risk materiality assessment approach and Risk Identification and Materiality Assessment (RIMA) process

Eurobank has identified Climate-related and Environmental (CR&E) risks as material. CR&E are the risks deriving from potential loss or negative impact to the Group, including loss/damage to physical assets, disruption of business or system failures, transition expenditures and reputational effects from the adverse consequences of climate change and environmental degradation. Quantification of CR&E risk is independent from the quantification of the other main risks i.e. Credit, Market etc.

As CR&E risks interact with other risks and result in direct distributional impacts and indirect macroeconomic impacts, the Group understands that careful consideration of the cross-cutting nature thereof is necessary, to ensure optimal implementation of adaptation activities.

Therefore, the Group considers CR&E risks as stemming from or related to other risk types, undertaking a holistic and systemic approach when examining the complex links between CR&E risks and other risk types. The Group has integrated CR&E risk elements into its existing risk management processes, creating additional procedures, policies and tools, so that these risks can be properly identified and measured.

The Group’s exposure to CR&E risks, both through clients’ business activities and its own operations, necessitates the existence of comprehensive risk management processes. Aiming to mitigate the risks it is currently exposed to and/or might be exposed to in the future, the Group has identified pertinent drivers through which CR&E risks materialise, as well as the key channels through which they impact the Group’s existing / traditional risk categories.

These results are included in the Group’s Risk Identification and Materiality Assessment (RIMA) Report and will be presented in the Group’s Climate Risk report in alignment with TCFD requirements.

Risk appetite

The Bank’s Risk Appetite Statements Document incorporated the Climate Risk statement for the first time in 2022, to reflect climate risk considerations. For the time being, the Bank has defined its risk appetite as at least 20% of the annual new CIB disbursements being invested in green / environmentally sustainable loans. The loan classification as green / environmentally sustainable was in line with the criteria set in the Bank’s Sustainable Finance Framework, which also includes the RRF green tagging classification. This target was exceeded in 2022, showing the Bank’s commitment towards green transition.

Regarding the management and mitigation of climate risk in its investment and financing activities, the Bank will continue to support green transition efforts of current and potential clientele through financing and advisory (including capital raising) solutions (transition risk of which credit risk). In addition, the Bank regularly monitors its concentration of exposure to sectors with high transition risk in the context of its trading and banking portfolios (transition risk of which market risk).

The Bank has initiated the monitoring and reporting of a list of climate risk monitoring indicators within 2022 and will explore setting respective thresholds for pertinent metrics within 2023, in line with the Bank’s Financed Impact Strategy and regulatory expectations for CR&E risks.

Climate risk monitoring indicators

The Bank has established a climate risk reporting dashboard with appropriate climate risk KRIs that will be submitted to the management body on a regular basis, to effectively oversee CR&E risks across the Bank.

To this end, the Bank took into account best market practices and leveraged on the insights gained from the 2022 ECB Climate Risk Stress Test (i.e. use of methodological assumptions made for the calculation of climate risk metrics), as well as on the Bank’s internal exercises and materiality assessment process (for transition and physical risk). For selecting and defining the climate risk monitoring indicators, the following were also taken into account:

• Guidelines on non-financial reporting: Supplement on reporting climate-related information (2019/C 209/01).
• Task Force on Climate-related Financial Disclosures – Guidance on Metrics, Targets, and Transition Plans.
• Development of Tools and Mechanisms for the Integration of ESG Factors into the EU Banking Prudential Framework and into the Banks’ Business Strategies and Investment Policies – Study by BlackRock on behalf of the European Commission.

The following are examples of climate risk indicators to be reported to the Board Risk Committee (“BRC”) at least quarterly:

• Transition risk indicators
  1. Concentration of exposures to sectors with high transition risk in the Bank’s corporate and small business portfolios.
  2. Concentration of exposures to counterparty sectors with high transition risk in the Bank’s trading and banking portfolios.
  3. Percentage of exposures in debt securities to the top 20 most carbon intensive counterparties globally.

• Physical risk indicators
  Total and individual concentration of exposures collateralised with immovable property located in areas subject to flood risk (Corporate and Retail portfolios).

Regarding liability risk, the Bank monitors its conduct risk exposure for the risk of failing to act in accordance with customers’ or investors’ best interests, fair market practices and codes of conduct, excluding internal fraud cases (e.g. mis-selling risk, climate-related legal claims, and litigation/liability risk arising from legal proceedings or other actions related to misconduct, other than fraud).Also, as per its qualitative Risk Appetite Statements, the Bank has a low appetite for any negligence that negatively affects its customers, staff, the Group itself or any third-party, including greenwashing. Accordingly, every case of potential greenwashing should be addressed quickly and fairly.

Furthermore, the Bank plans to proceed with the definition and operationalisation of additional CR&E Risk Appetite Statements and their operationalisation to Business Line Statements (i.e. sustainable financing targets, targets/limits at sectoral level etc.) by the end of 2023.

Additionally, the Bank’s Business Units maintain and update appropriate templates and mechanisms, to monitor respective sustainable financing disbursement amounts (e.g. regarding green and social loans), in line with the provisions of the Bank’s Sustainable Finance Framework. The ongoing and timely monitoring of sustainable loans allows senior management to assess the evolution of sustainable financing volumes and trends, taking into account the Bank’s relevant targets, as well as facilitates internal reporting. Going forward, the Bank aims to implement further systemic enhancements in its IT and data infrastructure, to support the standardisation of pertinent information monitoring, as well as safeguard data availability and accuracy.

The Bank understands that social risk management is crucial to ensure an effective and sustainable business model and has, therefore, taken actions to adjust its business model, strategy and processes, as well as its financial planning to account for risks arising from social matters, planning to further enhance such activities in the foreseeable future.

The Bank recognises the importance of managing social risk and has ensured that its lending activities do not support activities that harm society. In parallel, through the implementation of existing policies (e.g. Group Environmental and Social Policy) and the establishment of new processes and tools (e.g. ESG Risk Assessment Questionnaire), the Bank continues to strengthen its capacity to identify and manage social risk stemming from clients’ operations, also determining relevant mitigating actions, if deemed necessary.

Eurobank assesses its exposure to governance risk on an ongoing basis, given that poor governance practices of its counterparties could adversely impact its operations. To this end, the Bank has established effective internal governance arrangements to manage such risks and processes, to better evaluate the governance performance of its clients.

The Bank is in the process of incorporating the ECB’s “Good practices for climate-related and environmental risk management – Observations from 2022 thematic review” in its loan origination process, through enhancements to its lending criteria, data collection and risk assessment, risk classification, client engagement and transition plan assessment.

The Bank has already integrated environmental and social risk considerations in its practices in different stages of the credit granting and monitoring process, as presented below.

Incorporation of environmental and social risk factors in the creditworthiness assessment

I. Moody’s Risk Analyst (MRA) model

The Bank’s Moody’s Risk Analyst (MRA) model includes environmental and social related factors, to determine a borrower’s credit rating, such as Risk of Adverse Events – Risk and Effect from Environmental, Social, Governance Issues.

II. Specialised lending – Information requirements and assessment

Creditworthiness assessment takes into account the borrowers’ compliance with safety and environmental regulations, including those relating to environmental liability.

Know-Your-Customer (KYC) and Anti-Money Laundering/Terrorist Financing (AML/TF) policies and processes

Eurobank has established Know-Your-Customer (KYC) and Anti-Money Laundering/ Terrorist Financing (AML/TF) policies and standards for each business segment, which are designed to provide safeguards against, inter alia, identity fraud and cooperation with clients with increased risk of bribery, corruption and/or involvement in money laundering and terrorist financing. In the context of the KYC and AML/TF processes, during client onboarding, the Bank performs a preliminary assessment of the ESG profile (ESG Overview) of the client, using targeted questions (i.e. measurement and reporting of the borrower’s performance regarding elements relating to diversity, equity and inclusion).

Within the scope of customer KYC profiling, Eurobank must apply Enhanced Due Diligence (EDD) measures and restrictions in establishing a business relationship or carrying out transactions with natural or legal persons/entities whose activities are considered as high risk as per Eurobank’s customer risk assessment and rating methodology.

Environmental and Social Management System (ESMS)

For the integration of Environmental and Social (E&S) issues into its business model, the Bank implements an Environmental and Social Management System (ESMS) to assess direct and indirect environmental aspects, and in line with the requirements and expectations of institutional investors, shareholders, and other stakeholders.

In this context, the purpose of the Environmental and Social Policy is to set the framework of general principles and requirements for managing environmental and social issues, so as to achieve and maintain compliance with existing applicable national and international environmental and social legislation and regulations as well as with commitments to its shareholders, stakeholders and the society, through a uniform approach followed by the Bank and its key subsidiaries, domestic and international, banking and non-banking. The Policy also incorporates key steps of the methodology, in accordance with international guidelines (i.e. EBRD Performance Requirements, applicable IFC and EBRD exclusion lists) and initiatives, as well as for compliance with applicable local, national, and international environmental and social legislation. Furthermore, the objective of the Policy is, inter alia, to ensure timely and accurate reporting to the European Bank for Reconstruction and Development (EBRD) concerning the management of the Group ESMS.

As part of its Environmental and Social Policy, Eurobank applies a list of activities that are excluded from financing, in line with the exclusion lists of the EBRD.

For all financing transactions, the Bank ensures that its clients demonstrate an organised and systematic approach to E&S risk management that complies with applicable local, national and international environmental, health and safety, and labour legislation and standards, relevant permits, as well as public disclosure requirements.

The key steps followed as part of the ESMS process are presented below:

STEP 1 – Environmental and Social Risk Screening Process

The Bank ensures that all clients/activities proposed to be financed are screened against the Group Environmental and Social Exclusion list. All financing transactions are classified as Low, Medium or High risk according to their E&S impacts based on the industrial sector of the client business activities, and other criteria such as the amount, purpose and term of the loan, using the Environmental and Social Risk Screening Form/ Scorecard. This classification process is conducted by the pertinent business unit (e.g. SBB, Corporate & Investment Banking).

STEP 2 – Environmental and Social Risk Assessment Process

As part of the assessment process, the key actions followed per risk level are described below:

• Low Risk Transactions – Financing transactions of this category do not require further E&S assessment except for the confirmation of the client’ compliance/ noncompliance with applicable local, national and international environmental, health and safety, labour laws and regulations.
• Medium and High-Risk Transactions / Financing Transactions – For these financing transactions, a desktop study and an Environmental and Social Due Diligence exercise and site visit, depending on the results of the desktop study, are performed. The results of the Environmental and Social Due Diligence (ESDD) assessment including, where necessary, a relevant Environmental and Social Action Plan (ESAP), are included in an Environmental and Social Due Diligence (ESDD) Report.

STEP 3 – Decision / Environmental and Social Risk Control Process

The ESDD Report is submitted to the Credit Committees/Bodies as input for the decision-making process regarding the approval of the loan application. The E&S risk control measures to manage E&S risks identified and/or any other specific monitoring and reporting requirements that the client has to implement in order to avoid or mitigate environmental and/or social impacts are incorporated in the official contractual documentation (i.e. loan agreement, etc).

STEP 4 – Environmental and Social Risk Monitoring Process

E&S risk monitoring is carried out to assess the clients’ E&S performance against the ESDD report findings and the ESAP (where available). The extent and frequency of the monitoring process is analogous with the project E&S risk level and potential impacts of the financing transaction, as identified through the ESDD process.

Specifically, for Eurobank SA, the total amount of outstanding loans exceeded €12 billion, of which 85% were classified as low and medium-risk category loans.

 

Climate Risk Scorecard

In line with best market practices as well as taking into account supervisory requirements/expectations regarding the establishment of an approach for further assessing clients with higher climate risk exposure, the Bank is in the process of developing a Climate Risk Scorecard for the consideration of climate-related and environmental risks. The Climate Risk Scorecard will be initially applied to the Bank’s Corporate & Investment Banking (CIB) and Large Small Business Banking (SBB) portfolios. An assessment based on the Climate Risk Scorecard is planned to be performed for all new financing transactions and limit increases (existing and new clients) based on the predefined application perimeter for the above portfolios. The Climate Risk Scorecard shall comprise a modular questionnaire, which will include targeted climate risk questions, capturing dimensions relating to physical and transition risk, as well as client awareness. The Climate Risk Scorecard is planned to be integrated into the creditworthiness assessment by the end of 2023.

ESG Risk Assessment Questionnaire

In recent years, increased regulatory focus has been placed on ESG aspects in the banking sector. Institutions are expected to enhance their credit risk classification procedures, identify and evaluate climate-related and environmental risks, as well as integrate ESG aspects in the creditworthiness assessment process.

In this context, an interbank initiative in the Greek banking market pertains to the design of an ESG Risk Assessment Questionnaire, which the HBA (Hellenic Bank Association) is jointly conducting with the major Greek banks. The objective is to develop a common comprehensive ESG Risk Assessment Questionnaire to be used by all the banks, ensuring a harmonised assessment approach and a level-playing field, to incorporate a holistic assessment of borrowers’ ESG factors.

The ESG Risk Assessment Questionnaire shall ensure alignment with supervisory expectations/requirements on environmental, social and governance matters (e.g. meeting obligations regarding the EBA Guidelines on Loan Origination and Monitoring and the ECB Guide on Climate-Related and Environmental Risks), applicable international standards and guidelines (e.g. Task Force on Climate-related Financial Disclosures) and the banks’ operational needs, while also taking into account best market practices.

The common ESG Questionnaire and the respective ESG scoring produced will be integrated into Eurobank’s processes and will serve as a tool to help Eurobank in assessing client ESG maturity. The Bank’s target is to unify the ESG risk assessment under a common questionnaire, fully aligned with the regulatory requirements, leveraging on the interbank ESG questionnaire.

Going forward, also taking into account the requirements of the Corporate Sustainability Reporting Directive (CSRD), the Group will further update its risk management procedures, as well as its governance arrangements, to address and capture additional ESG risk aspects of its counterparties.

Climate Risk Stress Testing

2022 ECB climate risk stress test

The Bank participated in the ECB’s supervisory climate risk stress test, which was conducted in the first half of 2022. The 2022 climate risk stress test assessed how well banks are set up to deal with climate-related risks. A total of 104 significant banks participated in the test consisting of three modules, where banks provided information on their: (i) own climate stress-testing capabilities, (ii) reliance on carbon-emitting sectors, and (iii) performance under different scenarios over several time horizons. The test, which was part of the ECB’s wider climate roadmap, was not a capital adequacy exercise but rather a learning one for banks and supervisors alike, aiming at identifying vulnerabilities and best practices, and providing guidance to banks for the green transition. In this context, the Bank has successfully completed the 2022 climate risk stress test exercise.

Climate risk stress test results

In July 2022, ECB published the climate risk stress test aggregated results, showing that banks must improve their focus on climate risk. Furthermore, all participating entities received individual feedback and are expected to take action accordingly, in line with the set of good practices for climate-related and environmental risk management that the ECB published in November 2022, along with the good practices for climate stress testing published in December 2022. The results showed that Eurobank has made significant progress in incorporating a climate risk stress testing framework, with an overall performance in line with the average score of European Banks. The Climate Risk Stress Test Framework (CRST), accommodates a dedicated governance structure and defines the minimum requirements for designing, executing, approving, and applying the climate risk stress test. The Framework provides a transparent and repeatable process for designing and executing the climate risk stress test, as well as for reporting and evaluating stress test outcomes and determining management actions. The Bank continues to work towards implementing its climate risk action plan, to further integrate climate risks into its business strategy and risk management practices, and to support its clients towards climate transition and sustainable business growth. For more information on the management of ESG risks refer to the Consolidated Pillar 3 report.

For more information on the management of ESG risks refer to the Consolidated Pillar 3 report.

One of the Bank’s key ambitions is to become a frontrunner in supporting the low carbon transition. To this end, it has deployed a dedicated approach that will enable clients to meet their sustainability objectives. Since the initiation of its sustainability journey, the Bank has achieved significant milestones:

The Bank will continue doing business with all its clients and will focus on supporting their transition efforts. Leveraging on tools, frameworks and other enablers, such as the climate risk assessment exercises, the Bank’s strategic approach is to support green transition efforts, through direct financing and advisory solutions for capital raising to current and potential clientele. To this end, its approach focuses on:

• Sustainable financing and investments for corporate clients
  Having a leading role in the largest, most prominent projects in the Greek economy, the Bank finances robust business plans, growth strategies, investment programmes and export activities in strategic sectors.

• Sustainable financing for individuals and businesses
  The Bank currently offers several consumer and small business financing solutions that are aiming to be compliant with the EU Taxonomy Regulation aiming to deliver positive environmental impacts.

• Asset and wealth management with ESG criteria
  In 2018 the Bank launched the (LF) Fund of Funds – ESG Focus, a mutual fund that invests in shares and bonds factoring in ESG criteria. The Fund has a diversified portfolio of equities and bonds that adopt ESG criteria.

• Deposit solutions with ESG criteria
  In 2021 the Bank acted as a pioneer in the Greek banking sector by launching the ESG Deposits to its corporate clients. The ESG Deposits is an innovative deposit solution that supports the clients’ sustainability agenda, by investing liquidity in sustainable projects and allowing them to demonstrate their commitment towards a low-carbon and sustainable environment. The Bank uses the funds raised to provide wholesale lending that meet the criteria set out in the Eurobank Sustainable Finance Framework.

Committed to being transparent about its approach and to ensure that decision-making is in line with best practices in environmental protection and sustainability, Eurobank has developed three guiding frameworks, defining the approach and criteria for classifying its financing and investing activities as sustainable:

Sustainable Finance Framework

Through its Sustainable Finance Framework (SFF), the Group is able to classify sustainable lending solutions offered to its customers, specifying the applied classification approach and the activities defined as eligible to access sustainable financing (eligible green and social assets). The SFF scope encompasses a wide range of sustainable lending products covering both wholesale and retail banking portfolios. The purpose of establishing the SFF is to provide a clear and comprehensive methodology for classifying, monitoring, and reporting sustainable financing. Eurobank has drawn on internationally recognised industry guidelines and principles for the development of the SFF and is fully committed to being transparent about its ESG approach. Specifically, the SFF has been updated based on the following standards and principles:

• Green Bond Principles (2021), published by the ICMA
• Green Association Loan Principles (2021) published by the Loan Market (LMA)
• Social Bond Principles (2020), published by the ICMA
• Sustainability-Linked Bond Principles (2020), published by the ICMA
• Sustainability-Linked Loan Principles (2021), published by the LMA
• The EU Taxonomy

Currently, the SFF follows the EU Taxonomy eligibility criteria on a best effort basis. The Bank aims to further align the SFF with the EU Taxonomy requirements. Along the same lines, Eurobank will closely monitor the developments of the EU Taxonomy, to update its SFF and embed the relevant requirements to the extent possible.

The SFF defines two levels of alignment:

• SFF alignment – Fulfilment of criteria dictated by best market practice and verified by a Second Party Opinion.
• EU Taxonomy alignment – Fulfilment of criteria associated with each of the EU Taxonomy assessment steps (substantial contribution, DNSH, minimum social safeguards).

In its SFF Sustainable Finance Framework, Eurobank defines four classification approaches:

• Dedicated-purpose – Green/Social loans

Project-specific loans or financing instruments whose use of proceeds is 100% directed towards eligible green / social activities.

The SFF currently defines the following eligible activities, while it is the intention of the Bank to regularly revisit and update eligible activities / eligibility criteria following best market practice and developments. The SFF defines the eligible activities (for the wholesale and retail portfolios) along with the applicable eligibility and exclusionary criteria that need to be fulfilled. The eligible areas and activities are:

Green

Social

• General-purpose – Company business mix

Financing to companies that fulfil the eligibility green/ social criteria and derive their revenue from eligible activities. Specifically, companies are eligible under the business mix category when:

1. They derive a minimum predefined percentage of their total revenue from eligible activities.
2. None of their activities are among the excluded ones (as described in Eurobank’s Environmental and Social Policy).

• General-purpose – Sustainability-linked loans/facilities

The second type of general-purpose lending adopted relates to Sustainability Linked Loans (SLL). The purpose of SLLs is to enable and accelerate the ESG transition of clients. Through SLLs, Eurobank provides ESG related incentives to its clients, by offering products (loans, bond loans, etc.) with terms linked to ambitious and predefined Sustainability Performance Targets (SPTs).

The SPTs are specific targets, that aim to improve the ESG performance of the client. The client commits to achieve them during the loan repayment period and as such, the SPTs are also included in the loan agreement (i.e. in the form of nonfinancial covenants). The accomplishment of the relevant targets is monitored using specific KPIs which are specialised according to the client’s activity sector/ industry. The agreed KPIs are reported at least on an annual basis by the clients and are also verified by an independent assurance provider.

SLLs are linked to specific incentives provided by Eurobank, including, but not limited to, reduced interest rate or longer repayment period.

The SFF outlines the methodology for defining SPTs and proposes overarching as well as industry-specific targets.

• Recovery and Resilience Facility-based approach

Activities approved through the Greek Recovery and Resilience Facility, contributing to the green pillar.

Green Bond Framework

The Bank’s Green Bond Framework facilitates the Bank to meet its environmental/ sustainability commitments and finance projects that will deliver environmental benefits to the economy and support its business strategy and vision.

The Green Bond Framework is developed in accordance with global best practices and standards, and considers EU Taxonomy eligibility criteria to classify potential investments as green. The Framework defines the eligible assets and associated criteria, the use of proceeds, the process for project evaluation and selection, the management of proceeds as well as the relevant reporting obligations.

The eligible green projects to be financed with the net proceeds raised from any Eurobank green bond shall contribute to the UN SDGs, while the EU Taxonomy substantial contribution, Do No Significant Harm (DNSH), and minimum social safeguards principles shall be taken into consideration in specific projects on a best effort basis.

Sustainable Investment Framework

The Bank has approved its Sustainable Investment Framework (SIF), for the classification of investments as sustainable based on criteria observed in international market practices.

Eurobank’s SIF outlines the Bank’s potential sustainable investment approaches/ strategies, the process for the selection of eligible investments, as well as the monitoring frequency regarding the sustainable portfolio (part of the Bank’s investment portfolio). The sustainability assessment based on the SIF criteria, irrespective of eligibility outcome, does not prevent the Bank from considering noneligible investments for its portfolio. The classification approaches used by the Bank in the context of its SIF:

• Value-based exclusions and AML – Exclusion of companies, sectors, or countries whose behaviours do not align with basic societal values and Anti-Money Laundering (AML) exclusions.
• Norm-based exclusions – Exclusion of issuers that do not comply with basic standards of business and international norms.
• Avoid harm – A combination of value-based and norm-based exclusions, with additional activities with negative impacts excluded.
• Sustainable bonds – Selection of bonds that follow sustainable, green or social standards (i.e. selection of green or social bonds, or green and social bonds, or sustainability-linked bonds).

As regards sustainable bonds, the use of proceeds or any sustainability related target of such issuances should be articulated in a relevant Bond Framework (Green, Social, Sustainable, Sustainability-linked, etc.). This Bond Framework must be reviewed by an independent and reputable third-party reviewer.

Based on actual performance the Bank has successfully managed to accomplish its 2022 financed impact targets. Specifically, it:

1. Operationalised its Sustainable Finance Framework

• It has completed the roll-out of the SFF as part of its loan origination process for the CIB portfolio and is working towards the operationalisation of the Retail portfolio, while the SFF is currently being localised to material international subsidiaries.
• It has developed a web-based SFF assessment tool for the Corporate Portfolio, to underpin the classification and evaluation of sustainable/ green financing opportunities in a structural manner. The SFF assessment tool automates the process of assessing the Bank’s financings against the criteria defined in the SFF.
• It is assessing a series of new proposed Retail SFF-aligned products, also taking into account upcoming Greek government initiatives (ongoing / recurring initiatives).
• It is currently examining solutions for converting other climate mitigation products into SFF-eligible products.

2. Enhanced its capabilities for the collection of climate / ESG risk data

The Bank is continuously enhancing its capabilities for the collection of climate-related and environmental risk data, through integration of additional information requirements in the credit process, as well as cooperating with third-party data providers. The Bank has also developed capabilities to collect publicly available data to calculate and monitor its financed emissions, using the PCAF methodology.

3. Increased ESG / sustainable products

Eurobank has developed multiple products that promote sustainable growth, including RES investments, energy saving programmes for residential buildings, and debt restructuring programmes for vulnerable groups, while it received the Silver Awards for Sustainable Financing for Tourism at the Green Awards 2022. Going forward, it aims to develop additional ESG dedicated products for the Retail portfolio.

4. Overachieved its target for at least 20% of the annual gross new corporate disbursements to be classified as green / environmentally sustainable

As regards sustainable financing targets in the Corporate Portfolio, for 2022, new green SFF-aligned disbursements in the CIB portfolio constituted more than 20% of the total disbursements in the CIB portfolio, indicating the Bank’s dedication to supporting the green transition of its clients’ operations.

More specifically, the total outstanding balance of existing green exposures exceeded €1.5 billion as of 31.12.2022, indicating an over 60% year-on-year growth in green financing.

• Sustainable financing categories

Over €900 million are attributed to Renewable Energy Sources (RES) projects, with the remaining being allocated to energy efficiency, green buildings and other green projects.

• Sustainable financing approaches

Over €1.1 billion have been allocated to dedicated purpose financing while € 400 million have been allocated to sustainability linked loans, supporting the clients’ sustainable transition through ambitious performance targets

Regarding bond positions, as at 31.12.2022 the Bank held over €0.45 billion in green and sustainability-linked bonds.

Within 2022, the Bank participated in financing and advisory on landmark projects and transactions contributing to sustainable development.

Eurobank acted as Mandated Lead Arranger, Agent and initial Subscriber for acquisition financing of €520 million granted to ANEMOS RES HOLDINGS SOCIÉTÉ ANONYME, a 75% subsidiary of Motor Oil at the time. The loan was granted for the purpose of financing the acquisition of Ellaktor’s shares in ANEMOS RES SINGLE MEMBER SOCIÉTÉ ANONYME (a company established as a result of the Ellaktor’s Renewables Energy Business spin- off) and for general corporate purposes, which may include the refinancing of financial indebtedness relevant to RES projects.

Eurobank acted as Mandated Lead Arranger, Coordinator and Hedging Counterparty for 7 syndicated sustainability-linked bond loans amounting to €951.7 million, granted to the Sani/Ikos Group (Eurobank’s participation as subscriber was 45.7%). The purpose of the loans is to refinance existing debt, finance general business needs (with the aim, among others, to reform the Group’s capital structure in the context of GIC’s Singapore entry into the share capital of Sani/Ikos) and investment projects to upgrade existing units, and expand the Group to new locations in Greece. Showing confidence in the prospects of the Sani/Ikos companies and Greek tourism, Eurobank supports the further development of the Group, which is in the process of implementing environmental practices and sustainable investment plans.

Eurobank acted as Bondholder Agent, Facility Agent and Sole Underwriter for a €48.5 million common bond loan extended to Insignio S.A, 100% subsidiary of Dimand SA, for the development of green building of c.25k m2 GBA which, by H2 2024, will be hosting PWC new headquarters.

Eurobank acted as Co-Advisor and Joint Bookrunner for a €112 million IPO of Dimand SA, a leading Greek real estate developer, focused on sustainable development.

Eurobank acted as Financial Advisor to Volterra, a wholly owned subsidiary of AVAX, for the €133 million sale of a 112MW RES portfolio from Volterra to PPC Renewables. The transaction was in line with Volterra’s strategy to capitalise on favourable renewable energy fundamentals and PPC Renewables strategy to expand its RES capacity footprint and move away from coal.

Committed to its sustainable financing targets, the Bank is continuing to support the green transition of its clients, demonstrating significant achievements within 2023.

The EU Taxonomy (Regulation (EU) 2020/852 of the European Parliament and of the Council) was adopted in 2020 by the European Parliament and represents an important step for the EU to achieve the Paris Agreement climate neutrality goals.

The key indicator of alignment for credit institutions is the Green Asset Ratio (GAR), which companies will be required to publish starting in 2024. It determines the extent to which activities comply with the criteria of Taxonomy. It is the ratio of a company’s taxonomy-aligned assets to covered assets (total assets excluding exposure to sovereigns, central banks and the trading portfolio).

As described above, the Bank strives to invest in sustainable development, is integrating ESG practices and aspects within its operations and services and will continue to do so as the ESG elements and requirements evolve.

The Bank aims to further align the Sustainable Finance Framework with the EU Taxonomy requirements, which will underpin the identification of exposures aligned with the EU Taxonomy, and the calculation of Green Asset Ratio (GAR) and supplementary key performance indicators. The GAR constitutes the key indicator of alignment for credit Institutions under the EU Taxonomy Regulation.

Upon reviewing its business activities to align Taxonomy reporting with its core activities, the Bank provides the key performance indicators (KPIs) and other disclosure requirements related to its dominant financial undertakings as laid down in Article 10 of the Art. 8 Delegated Act. The data as of 31.12.2022 have been prepared based on a best effort basis to adhere to the applicable regulations and will evolve in the future, as further information becomes available from counterparties and new regulatory developments.

¹ The Taxonomy-eligible assets of the Group using only the turnover KPI of the non-financial counterparties subject to NFRD amount to €11,637 million, that is 14% of total assets and the Taxonomy noneligible assets amount to €62.437 million, that is 75% of total assets.

² The total assets in the KPIs above are presented at their gross amounts (except for collateral obtained by taking possession included in Taxonomy eligible and non-eligible assets, which is presented in carrying amount), according to EU Taxonomy methodology.

Along with mandatory disclosures, the Group implemented increased information with a breakdown of Taxonomy eligible and non-eligible assets on a voluntary basis. The purpose is to enhance transparency, provide additional information of the metrics and present the eligibility proportion of its assets

^1. The total assets and total covered assets in the KPIs above are presented at their gross amounts (except from collateral obtained by taking possession, which is presented in carrying amount), according to the EU Taxonomy methodology.

^2. In terms of eligible assets, a breakdown of the Group’s activities shows that 12,69% stem from lending to households (vehicle loans and lending with collateral in real estate which are Taxonomy-eligible in their entirety), while lending to undertakings subject to NFRD represents 0.99% and repossessed collaterals represent 0.68%.

The voluntary metrics are based both on the denominator total assets and total covered assets. Total covered assets amount to €74,075 million, excluding exposures to sovereigns and the trading portfolio. The share of Taxonomy-eligible assets to total assets is 14.36% while the share of Taxonomy-eligible assets to total covered assets rises to 16.11%.

Eurobank envisages to play a key role in financing landmark projects that are necessary for pursuing sustainable growth. To this end, the Bank has been increasingly incorporating sustainability in its offerings and client engagement and has been working with clients and various stakeholders with the aim of promoting sustainable development.

 Material topic: Portfolio climate transition 

The Bank has committed to align its portfolio with climate transition pathways and to develop phased, sectoral decarbonisation targets covering its portfolio, with the ultimate objective of reaching net zero by 2050. To this end it is in the process of developing an action plan and roadmap towards net zero, a key part of which is the calculation of its financed emissions, which will in turn inform its sector-specific action plan.

The Bank has developed its capabilities to collect publicly available data, as well as estimate and monitor the GHG emissions of its counterparties. This is the first year that the Bank calculates and discloses its financed emissions, following the PCAF methodology, which is based on a revenue-based approach, with emission factors estimated for each sector and country through a multiregional input-output analysis framework. It should be noted that reported emissions have been applied where the disclosed emissions from our clients have been available across Scope 1, 2 and 3, while where one or more reported scope categories were not disclosed/complete, the Bank has applied the estimated emissions according to its internal methodology in line with PCAF standard.

The tables below present the Bank's financed emissions per asset class.

Nace Sector "D - Electricity, gas, steam and air conditioning supply", has been identified one of the key sectors in terms of climate change. In order to support the green transition of the sector, the Bank's strategy is focused on renewable energy financing, by setting a specific target for new disbursements related to RES.

GHG financed emissions (in thousand tonnes of CO2e)
	Asset class	Scope 1 (‘000 tCO2e)	Scope 2 (‘000 tCO2e)	Scope 3 (‘000 tCO2e)	Scope 1,2,3 (‘000 tCO2e)	Outstanding Amount (€ million)
D. Electricity, gas, steam and air conditioning supply	Loans	777	22	97	897	1,472
	Bonds, shares	112	24	76	212	281
	Total	889	46	174	1,109	1,753

¹The measurement of financed emissions for 2022 included exposures to sectors with the following NACE Codes: A - agriculture, forestry and fishing; B- mining and quarrying; C- manufacturing; Delectricity, gas, steam and air conditioning supply; E - water supply, sewerage, waste management and remediation activities; F - construction; G - wholesale and retail trade, repair of motor vehicles and motorcycles; H - transportation and storage; I - accommodation and food service activities, L - real estate activities.

Financed emissions will play a key role in developing the Bank’s baseline, sectoral approach and overall net zero action plan. Therefore, the Bank aims to further enhance and refine its capabilities and tools for calculating its financed emissions. 

For more information on the implementation of the EU Taxonomy, refer to the Annual Financial Report.

An elaborated presentation of the Bank’s financed emissions can be found in the 2022 Climate Risk Report.

Recovery and Resilience Facility (RRF) as part of Greece 2.0 National Recovery and Resilience Plan

Eurobank managed to stand out among its peers in deploying RRF funds towards the Greek economy, through strong commitment towards the recovery from the pandemic and towards a more sustainable, environmentally friendly and socially just direction. The approved investments are highly diversified among economic sectors and clientele, fall mainly under the Green Transition pillar followed by Digital Transformation and Extroversion pillars accordingly, and target expansion of industrial capacity, R&D, energy efficiency and eco mobility, tourism, and digital/communication transformation. With its exemplary performance and fast RRF funds absorption rate, Eurobank has proved its ability to effectively use the available EU financial instruments and manage complex financial operations targeting economic growth.

The Bank successfully signed 24 transactions within 2022, funding total investments amounting up to €1,055 million (bilateral/syndicated transactions), with RRF mobilized funds amounting up to €322.3 million, such as:

• Sunlight Group Energy Storage Systems Industrial and Commercial Société Anonyme, Syndicated Bond Loan. Eurobank acted as Mandated Lead Arranger in the €140 million (currently, after recent reduction, c. €105.1) Syndicated Bond Loan transaction, granted under the Greece 2.0 National Recovery and Resilience Plan. More specifically, the amount of €87.5 million (currently, after recent reduction, €52.5 million) is covered by the Hellenic Republic through RRF funds (RRF tranche) while €52.5 million is granted by Eurobank (€21 million) and the other syndicated bank (co-financing tranche). The purpose of the loan is the expansion and modernisation of existing production capacity through, among others, constructing new, energy-efficient building facilities, installing new equipment and automating the production process. The investment takes place in the region of Eastern Macedonia and Thrace.
• Hellenic Open Fiber (HOF), Syndicated Bond Loan. Eurobank acted as Mandated Lead Arranger, Coordinator, Account Bank and Agent in an up to €79.3 million Syndicated Bond Loan transaction, granted under the Greece 2.0 National Recovery and Resilience Plan. The purpose of the loan is to partially finance an investment project of approximately €100 million by HOF (an affiliate of Nova- Wind), which aims to develop new generation networks and accelerate the creation of fibre optic networks to the home (Fibre to the Home) nationwide. The cost of the investment that has been confirmed as eligible to be financed through the Recovery and Resilience Fund Scheme with the issue of the RRF Bonds amounts to €49.6 million, which corresponds to 50% of the cost for the deployment of the eligible investment, whereas the remaining cost was covered through own funds and circa €30 million was covered by Eurobank and the other syndicated bank through subscription of co-financing bonds issued by HOF under the Syndicated Bond Loan documentation.

• DEMO SA, Common Bond Loan. Eurobank acted as Paying Agent, Bondholders’ Agent and Subscriber in the €37.3 million Common Bond Loan, granted under the Greece 2.0 National Recovery and Resilience Plan. More specifically, the amount of €18.3 million is covered with RRF funds by the Hellenic Republic, while €19 million is covered by Eurobank. The purpose of the loan is to construct a biotechnology R&D centre as well as to install semi-industrial scale production of biological pharmaceutical products. The investment takes place in the region of Attica.

Sustainable bond projects

Eurobank acted as Co-advisor and Joint Bookrunner in €230 million, 4.70%, Senior Green notes due in 2029 issued by Lamda Development SA, a successful issue in the midst of challenging market conditions, providing the company with the capital to invest in urban regeneration with green features.

ESG programme for hotels

In 2021 the Bank launched two ESG programmes for hotels:

• The Doing Business Sustainably in Tourism (Epixeiro Viosima ston Tourismo) programme aims to provide incentives to existing borrowers of the Bank, subject to their acceptance to adhere to certain sustainability performance targets.
  The programme is aimed at both educated and advanced in ESG principles hotel groups / companies, but also at those taking their first steps towards sustainable future.

• The Constructing Sustainably in Tourism (Kataskevazo Viosima ston Tourismo) programme aims to provide incentives to new financings of the Bank, provided that they adhere to certain environmental output specifications related to a new construction / development or an upgrade to existing hotel infrastructure, and they meet specific thresholds.

ESG Deposits

In 2021 Eurobank was the first Greek bank to offer ESG Deposits to its corporate clientele, a product which continued to be successfully offered during 2022. The amount raised from ESG Deposits is being allocated to financing green and sustainability linked loans, in agreement with the Bank’s Sustainable Finance Framework.

The Bank offers products and services tailored to specific sectors and client segments, promoting sustainable practices among its clients, aiming to alleviate the social risk stemming from its operations. The Bank’s products/initiatives demonstrate that the Bank has effectively integrated social risk considerations in the way it conducts business.

Green mortgage loans

Eurobank has significantly contributed to energy-saving actions and in particular to the energy upgrade of private homes in Greece, by actively participating in all the Saving at Home (Exoikonomisi Kat’ Oikon and Exoikonomo) programmes from 2011 to date.

Since the end of 2020, the Bank has started solidifying its presence in the area of green mortgage loans by participating in the Energy Saving and Autonomy (Exoikonomo – Aftonomo) development programme. The programme is funded by the European Regional Development Fund (ERDF) and national resources. It offers a subsidy and an interest-subsidised loan from the Bank to all eligible households, so they may carry out green interventions in their homes to optimise their energy efficiency, install domestic photovoltaic systems for energy autonomy, create the proper infrastructure to buy an electric or hybrid vehicle, such as EV chargers, and install smart home automation systems. The Bank is participating in the Energy Saving and Autonomy programme with streamlined processes for quicker loan processes, financing tools to strengthen the liquidity of associated companies that undertake to carry out works as part of the programme, and additional incentives for those who choose to take out a loan from Eurobank. During 2021 -2022, the Bank confirmed its participation in the new Exoikonomo programmes and, in partnership with the Hellenic Bank Association and its members, it has vitally contributed to the formation of the programme’s Framework and Guide, as well as to the development of the necessary infrastructure to support the new programme.

In addition, Eurobank offers the Green Mortgage Loan – Saving Energy to customers not eligible to participate in the Exoikonomo programmes. This product finances green repairs that improve the energy efficiency of properties (such as installing photovoltaic systems for domestic energy production, replacing the existing heating system, installing latest technology ACs, replacing insulation, etc.).

The Bank’ s ultimate goal is to actively contribute to meeting the national environmental targets and to protecting the environment through dedicated green banking products that offer the most cost-efficient financing solutions and cover all potential green needs a citizen may have.

Photovoltaic SB loans

Through the financing of photovoltaic systems, Eurobank offers small businesses the opportunity to carry out their investing plans, regarding the production and sale of energy from Renewable Energy Sources (RES), by choosing between the loan or the leasing option. Through the loan option, customers can finance up to 80% of the total budget of their investment, including infrastructure costs, purchase and installation of the equipment, setup of the site and costs regarding the required connections. Through the leasing option, customers can finance up to 100% of the equipment costs. In 2022 new disbursements amounted to €16.2 million.

Energy Saving Bridge Financing

Through the Energy Saving Bridge Financing, Eurobank extends to customers a credit line to finance the works they carry out as a supplier/contractor on properties included in the Energy Saving and Autonomy Programme (Exoikonomo – Aftonomo and Exoikonomo 2021) launched by the Greek Ministry of Environment and Energy. The suppliers/contractors pre-finance their backlogged orders until they are paid through the Programme. The borrowers receive up to 80% or 100% of the subsidy amount that their customers are eligible for, through the Energy Saving and Autonomy Programme, regardless of whether they take out a loan or not. In 2022 new disbursements amounted to €0.9 million.

Pipeline of ESG products

As part of its strategy to increase the penetration of ESG products and double its retail green gross disbursements within 2023 compared to 2022, the Bank has a pipeline of products, aligned with the Sustainable Finance Framework, scheduled to be launched within 2023. These products will be directed towards small businesses and will focus the promotion of RES technologies and the energy upgrade of infrastructure and equipment.

As part of the effort to actively promote best practices and attain long-term sustainability, the Bank has developed a series of products, namely banking products aiming to address social issues and promote a positive environmental impact.

Student loans

Loyal to the social component of ESG, Eurobank offers the Student Loan to customers who seek to finance their undergraduate or postgraduate studies. Eurobank gives students the opportunity to cover a part or all of their tuition fees, as well as some of the initial relocation expenses when they move away from home to study, with a student loan that bears a preferential interest rate compared to that of a typical consumer loan. Additionally, in order to make the loan more affordable, Eurobank offers the option of the student’s parents acting as guarantors of the loan as well as flexible repayments.

WWF Eurobank Visa – The first green banking product in Greece

WWF Eurobank Visa was the first green product ever issued by a Greek bank, back in 2000, and it is the outcome of the partnership between Eurobank and WWF Hellas. At the end of 2022, WWF Hellas had received €1.9million through WWF Eurobank Visa for financing environmental protection actions, at no additional cost for the 17,500 currently active WWF Visa cardholders. Some of the actions supported by Eurobank include:

• Providing maintenance and technical support for the Greek and English version of the Oikoskopio online app, enriching it with new information and adding games in the Oikoskopio kid’s section.
• Carrying out actions to protect valuable natural habitats at the Dadia National Park, which constitute key breeding and feeding sites for internationally threatened birds of prey.
• Financing significant actions to scientifically support the work of WWF on environmental policy issues and communication (maps illustrating the problems with forest fires, recording of lignite power stations in Greece, ecological value of coastal areas).
• Supporting the work of the organisation’s legal team. The legal team consists of volunteers from different scientific backgrounds (lawyers, engineers, environmental engineers), who offer environmental information and tips to citizens in cases of environmental degradation, such as industrial pollution, illegal logging, etc.
• Carrying out actions in Sekania beach on Zakynthos for the protection of the loggerhead sea turtle (Caretta caretta), such as increasing security around the beach, implementing fire-prevention projects, and more.

Eurobank, the Greek partner of the innovative Mastercard Priceless Planet Coalition environmental initiative

Eurobank is the exclusive Greek partner of the Mastercard Priceless Planet Coalition, an innovative environmental initiative recognising the important role of the private sector in addressing climate change.

The Priceless Planet Coalition has a global mission statement and goal, with which the Bank is aligned, actively confirming its commitment to achieving the UN Global Sustainable Development Goals (SDGs) and following the Principles for Responsible Banking, which it has co-signed.

The Priceless Planet Coalition launched its actions in 2020, aiming to unite consumers, financial institutions, merchants and cities around the globe in the fight against climate change. As a first step, the initiative has pledged to plant 100 million trees over a period of 5 years, sealing a partnership with 2 global environmental organisations: Conservation International and the World Resources Institute (WRI).

Biodegradable debit cards

Eurobank is the first bank in the Greek market to offer the next generation of cards, made of eco-friendly biodegradable materials, having adopted the latest international environmental protocols. This action demonstrates Eurobank’s long-term commitment to promote environmentally friendly initiatives.

As of 2019, any newly issued or renewed debit cards – both to individuals and businesses – are made of 82% polylactic acid (PLA), a petroleum-free, non-toxic biodegradable plastic substitute. The production of this material requires less energy consumption and produces fewer greenhouse emissions compared to PVC, which is not biodegradable and emits toxic gases when burnt.

Eurobank consciously chose an everyday, widely used, mass product – such as the debit card – as the ideal medium to fulfil its eco-friendly commitment and further cultivate the value of environmental consciousness towards its clientele. As of 2022, around 1.4 million cards have been printed using the new biodegradable material, while the Bank’s debit card stock is expected to be replaced in the following year.

PNOE – Friends of Children in Intensive Care

For the past 22 years, Eurobank has been steadily supporting the important work of the PNOE – Friends of Children in Intensive Care non-profit association, helping it meet its objective, which is to create and equip paediatric intensive care units, and to support children hospitalised in intensive care units and their parents. Since 2000, Eurobank has designed and launched the EuroLine card. Part of the product’s total turnover is donated to the PNOE – Friends of Children in Intensive Care association.

In particular, the Bank donates 0.20% of the total value of transactions carried out by EuroLine cardholders at Eurobank POS terminals belonging to merchants who are linked to the Bank with partnership agreements. In 2022 the around 21,360 active cards generated a donation of €23,160.

Fashion Targets Breast Cancer Campaign

The Bank’s partnership with the Fashion Targets Breast Cancer campaign started in 2004, with the launch of the EuroLine Style Mastercard, the very first credit card addressed to women only. For the past 17 years, Eurobank has been consistently supporting the campaign’s efforts in Greece, actively contributing to the attainment of its goals, which is to inform women and raise awareness on the importance of prevention and early diagnosis of breast cancer.

In 2022 there were around 7,549 active EuroLine Style credit cards. Eurobank pays 0.15% of the EuroLine Style card’s annual turnover to Target-Prevention, the Greek Society for Cancer Prevention. In 2022 €8,679 were raised from the use of the cards to support the association in its efforts to inform and train women on the value of breast cancer prevention.

Smile of the Child and SOS Children’s Villages Greece donation boxes

With a deep sense of compassion, especially for children in need, for yet another year the Bank supported the Smile of the Child Association and SOS Children’s Villages Greece, placing donation boxes in select network branches and offering its customers the opportunity to assist in the efforts of these 2 recognised social welfare associations.

 Material topic: Financial inclusion 

Supporting small businesses and social finance

Eurobank promotes financing products that specifically relate to infrastructure and supported services, aiming to assist businesses to grow and become updated, boost their competitiveness and improve the quality of the products and services they offer.

EIF – ESIF ERDF

To support new investments in SMEs, Eurobank, in collaboration with the EIF, participated in the ESIF ERDF Greece Guarantee Fund (EEGGF). The objective of the EEGGF is to improve access to finance for SMEs through loss protection provided by the EIF Guarantee to newly originated loans or finance leases for eligible SMEs in Greece operating in less developed, transitional and more developed regions. The programme, which aims to facilitate the access of SMEs to financing, offer funds for capital investments and working capital at a guarantee rate of 80%. In 2022, SMEs operating in the less developed regions received financing up to €17.7 million.

Financing under the European Commission’s EaSI

The Bank cooperates with AFI within the context of the EaSI programme for employment and social innovation, to provide financing to vulnerable social groups for the purpose of setting up or developing an existing micro-enterprise. The financing enjoys the support of the European Union in the context of the Guarantee Mechanism established by virtue of Regulation (EU) No 1296/2013 of the European Parliament and of the Council for Employment and Social Innovation (EaSI) and the European Fund for Strategic Investments (EFSI), established under the Investment Plan for Europe. The purpose of the EFSI is to contribute to supporting the financing and establishment of productive investments in the European Union, and to ensure increased access to financing.

In the context of this programme, and in cooperation with AFI, Eurobank provided financing to 545 businesses to the amount of €5.6 million in total. The financing may be used to cover needs such as working capital, and capital for investments in tangible and intangible assets.

Eurobank Development initiative

The actions of the Partnership Agreement (PA) for the Development Framework 2021- 2027 mainly aim to boost the competitiveness and extroversion of businesses, focusing on innovation and on increasing the domestic added value.

Eurobank has developed a comprehensive range of advisory and information services for small and medium enterprises, enabling them to take advantage of the PA programmes. Business advisors provide information about the co-funded programmes available to each business, while a dedicated phone line is also available for additional information or questions. Eurobank has come to an agreement with specific providers of eligible services within the ecosystem framework, to enable SMEs to find suitable partners for their investment.

An integrated programme has also been designed, which includes financing to cover both the private participation and the grant, ensuring adequate capital throughout every stage of the investment, so it may be concluded within the estimated time.

Collaboration with Hellenic Development Bank

Aiming to support the economy successfully, Eurobank makes the most of every favourable measure to facilitate access to financing for Greek enterprises. Specifically, in collaboration with the Hellenic Development Bank (HDB), under the programme TEPIX II for investment projects, bank financed 64 SMEs to the amount of €13.5 million within 2022.

Eurobank’s also participates in the programs Tameio Anaptyksis Dytikis Makedonias Covid-19, Tameio Eggyodosias EAT TMEDE and Tameio Eggyodosias Kainotomias. Under these programs the bank has financed 128 SMEs to the amount of € 5.7 million until the end of 2022.

Making banking accessible

Focusing on customer service, Eurobank aims to make its services, assets, resources and opportunities accessible to all. To this end, through its branch network (274 branches), the Hellenic Post Branch network and the self-service banking terminal network (1,759 service points), Eurobank aims to maintain its presence in remote and inaccessible areas, serving populations having difficulty to physically access services, as well as people with disabilities (e.g. special tactile buttons at ATMs).

Through the Hellenic Post branches, Eurobank is present in 315 Municipal Communities with a population of less than 5,000 people, many of whom have difficulty accessing services, such as islands (e.g. Agathonisi, Anafi, Karpathos, Nisyros, Tilos, Halki, Folegandros, Amorgos, etc.). Additionally, in 215 areas with a population less than 5,000 people, access to services is provided via off-site ATMs (e.g. Agios Efstratios, Alonissos, Symi, etc.).

With customer service being a key priority, Eurobank is also particularly aware of the need to make its services accessible to people with disabilities:

• All customers with disabilities receive priority at its branches.
• 92 branches have access ramps for customers with reduced mobility.
• 5 ATMs are located at a proper height for wheelchair users.
• People with visual impairment can receive documents in Braille and statements in pdf that can be read by assistive technologies.
• Deaf or hard of hearing persons can be served in sign language through v-Banking.
• ATMs are being upgraded with voice guidance that gives instructions in private on how clients can perform their transactions.
• Continuous accessibility audits drive in improvements based on WSAG 2.1 level AA in all digital channels.
• Dedicated pages on the website provide information about options for services per disability in every customer service channel.

The Bank also offers clients the option to be served in English at branches and through EuroPhone Banking, while English is also available as an option at ATMs.

EuroPhone Banking, v-Banking, e-Banking and the Eurobank Mobile App contribute significantly to customers having access to services. The Bank’s new “Going from physical to phygital” approach, an innovative mentality that combines physical service with technology, introduces a new perspective in the Bank’s relationship with its customers. Furthermore, the Retail International Customers One-Stop Hub offers continuous support to non-resident customers.

Apart from the digital channels, Eurobank provides products and services to customers through the channels listed below.

Branch network

At the end of 2022, the Eurobank branch network numbered 274 branches in total. The Bank’s branches are entering a new era in banking services, combining advanced digital options with personal support provided by our staff. 8 Future Branches have already adopted the new operational model in 2022 (10 by the time of issuing this Report), which introduces a digital, innovative, sustainable and human-centred approach to day-to-day banking, focusing on offering clients advice through relationship managers, and channelling transactions to digital and self- service options.

Moreover, in 2022, the Bank tried to improve customer service and productivity by:

• Scheduling appointments at all Eurobank branches. In 2022 over 630,000 appointments were scheduled.
• Increasing the time relationship managers allocate to each client.

To achieve this, Eurobank implemented 2 changes:

• The Eurobank call centre answers incoming calls to branches, allowing for faster and more efficient service. Already implemented in 68 out of 274 branches.
• Relationship managers only provide advisory services and handle no transactions during 10:00-13:00. Already implemented in 70 out of 274 branches.

In line with Eurobank’s “bank everywhere” vision, the Bank has further enhanced its digital and hybrid offering with the Digital Safe Box, which allows customers to get even complex products remotely, signing all necessary paperwork through their e-Banking. Digital Safe Box accounts for 10-15% of product sales, for available product categories, while numbers are growing and a wider product range is expected to be covered.

ELTA Network

The Bank has an exclusive cooperation agreement with Hellenic Post (ELTA) that allows the Bank’s customers to enjoy core banking services through the Hellenic Post branch network.

With more than 610 branches and 110 ATMs across Greece, the Hellenic Post branch network provides extensive nationwide service, both in urban and in remote areas, where banking presence is limited or non-existent.

External Network

In 2022, the External Sales Networks maintained their momentum, despite the fierce competition. This unit’s primary goal is to develop B2B cooperations with third legal entities, with the aim of increasing loan origination in the following segments:

• Retail Business Banking external sales – The Bank expanded its business through agreements in new markets, such as business consultants and PV installers and through new collaborations with professional equipment dealers. Disbursements posted significant growth, mainly due to the farm-tractor loan market.
• Mortgage loans through associates – Disbursements increased by 20% y-o-y, contributing significantly to the Bank maintaining its leading position in the mortgage market.

• Car and motorbike financing – Eurobank has been a leader for over 10 years. The Bank’s dealer network keeps expanding, now counting over 700 associates, and introducing innovative and competitive B2B2C solutions.

Merchant ecosystem

A new strategic cooperation framework with major retailers in Greece was introduced, to finance the purchase of durable goods through consumer loans. The framework allows customers to complete their online or in-store purchase seamlessly within minutes, without contacting any Eurobank branch.

Moreover, Eurobank forged strategic alliances with major utilities and consumer services brands, and introduced product bundles, grouping together banking and non-banking products.

Telemarketing

Telemarketing is an alternative channel which promotes products and services to existing Bank customers. The promotions and targeted customers are selected in collaboration with 3 segments (IB, PB, SB). Telemarketing offers direct, personal and two-way communication. The sales are completed over the phone, digitally or at the customer’s place of choice. The main promotional products are credit and debit cards, and simple bancassurance products.

Information is provided directly over the telephone or through referral to the branch network. In 2022 telemarketing achieved the following goals:

• Issued +32% new credit cards.
• Launched remote personal loans over the phone.
• Started selling key bancassurance products.

EuroPhone

EuroPhone Banking is a modern call centre and one of the key channels for promoting Eurobank products and services. As a service channel, it offers all modern communication tools to clients, such as phone calls, voice recognition via NLU technology, emails, personal messages, web forms and Click2Chat, and a large number of banking transactions via both automated system and agents, 24/7. In 2022 its operations were adjusted, with 80% of staff working remotely. In this context, and in line with the Bank’s initiative to support employment in remote areas, over 45 agents were recruited in Thrace, Northern Greece.

Based on results of automated customer surveys that were successfully launched throughout the year, total customer satisfaction from the services provided was high. The percentage of customers stating “Very satisfied” and “Extremely satisfied” reached 71%, while the percentage of customers stating that they were served during the 1st call reached 76%.

In 2022 the Bank launched an additional innovative service in line with the “phygital bank” vision. Digital Sales now feature assistance by agents to help customers complete their journey.

ATM, APS and PPU

The self-service banking terminal network consists of 1,759 service points. In 2022 Eurobank introduced the “Business Corners”, new self-service cash-deposit machines, where clients can make their transactions easily, quickly and securely. This offering for large cash deposits is unique in the Greek banking industry.

During the year, 56 new offsite ATMs became operational, while all ATMs and APSs were upgraded to offer contactless transactions and audio guidance for people with impaired vision (except for ATMs across the Hellenic Post branch network).

v-Banking

2022 was a remarkable year for the v-Banking channel, as it continued to experience growth and expand its presence in various customer segments. One of the notable achievements was its strong foothold in the Business Banking segment, where it solidified its position and gained significant sales. Additionally, v-Banking made considerable strides in the Personal Banking and International Customers segments, generating noteworthy sales figures.

The key developments for v-Banking in 2022 include:

• Offering remote servicing capabilities through the digital box, which allowed customers to access and use a range of services remotely, including personal loans, credit card issuing and home insurance, eliminating the need for in-person visits to a branch.
• Enhancing its e-Banking environment by introducing a co-browsing functionality, which enabled customers to receive real-time assistance from v-Banking agents while navigating the online banking platform, improving the overall customer experience.
• Introducing phygital mortgage loans, accessible without the physical presence of customers at any touchpoint throughout the application process, ensuring a seamless and personalised experience while applying for a mortgage loan.
• Expanding its reach by offering Click-to-Video direct communication for both existing and non-existing Eurobank clients, through the Bank’s public site, enabling efficient and personalised assistance, regardless of their prior relationship with the Bank.

Throughout these developments and achievements, v-Banking maintained its commitment to customer satisfaction. This was reflected in their high performance in Net Promoter Score (NPS) metrics, which served as an indicator of customer satisfaction and loyalty. By consistently delivering exceptional service and leveraging digital innovations, v-Banking solidified its position as a leading channel for remote banking services, catering to the diverse needs of its customers.