Eurobank has incorporated ESG risk aspects across all pillars of its Risk Management Framework, while it identifies, assesses, manages and mitigates relevant risks, with a view to ensuring alignment with its business strategy. The Bank also aspires to become a frontrunner in supporting low carbon transition and has deployed a dedicated approach that will enable clients to meet their sustainability objectives. Within 2023 it participated in financing landmark projects and transactions contributing to sustainable development, while it offers products and services tailored to specific sectors and client segments, promoting sustainable practices among its clientele.
Eurobank has incorporated ESG and CR&E risk aspects across all pillars of its Risk Management Framework, through the establishment of comprehensive policies and processes. It is among the Group’s priorities to identify, assess, manage and mitigate relevant risks, with a view towards ensuring alignment with its business strategy, as well as regulatory and industry developments.
GRI 2-23 GRI 3-3 GRI 201-2 ATHEX A-E2 ATHEX A-E6 ATHEX SS-G ATHEX SS-S10
The Group Risk Management Framework defines the roles and responsibilities of the Group Risk Management (GRM), 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 Risk Identification and Materiality Assessment (RIMA) process, including climate-related and environmental risks undertaken by the Group.
In accordance with relevant supervisory expectations and the Group’s enhanced governance operating model for the incorporation of CR&E risks across the 3 lines of defence (described in the ESG Governance section), new roles and responsibilities regarding climate-related and environmental risk management have been embedded into the Group Risk Management Framework. In addition, Eurobank has developed its CR&E Risks Management Policy, which aims at fostering a holistic understanding of the effects of CR&E risks on its business model, as well as supporting decision making regarding these matters and providing a robust governance under its Risk Management Framework.
The Risk Identification and Materiality Assessment (RIMA) process sets the appropriate mechanisms to identify, measure and monitor risks at an early stage, as well as to manage their potential impact on the achievement of the Group’s objectives. Through the RIMA process, the Group identifies material risks that could potentially have a significant adverse impact on its financials, capital base, liquidity position or business model, as well as any exposure to possible emerging risks.
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 the optimal implementation of adaptation activities. As such, the Group considers CR&E risks as drivers of existing risk types, undertaking a holistic and systemic approach when examining the complex links between CR&E risks and both financial and non-financial risks. Eurobank 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.
In this context, the Group has identified the following list of CR&E risk drivers:
| Climate-Related Risk | Environmental Risk |
|
|---|---|---|
| Transition Risk | Physical Risk | |
| Behavioural Changes | Acute Hazards (floods, wildfires) | Water Scarcity |
| Policy & Regulatory Changes | Chronic Hazards (droughts, heat waves) |
Biodiversity loss |
| Technological Changes | ||
ESG and CR&E Data
The Group recognises the importance of relevant and reliable data for the provision of meaningful insights, suitable for decision-making purposes. Having already performed an assessment of ESG and CR&E data availability in its internal systems against regulatory requirements/expectations, the Group continues to enhance its environmental risk data aggregation capabilities and IT infrastructure accordingly, while also using appropriate controls and safeguards to ensure the accuracy and completeness of the compiled information. The Group seeks to further improve environmental risk data granularity through allocating detailed roles and responsibilities, for the purposes of ESG and CR&E data management, and implementing approaches for remediation of identified data gaps (i.e. engaging with external data providers, developing methodological approaches for estimating required information).
For further details refer to the TCFD Climate - related & Environmental Risk Report 2023.
The Group articulates its risk appetite through a set of qualitative and quantitative statements with respect to, inter alia, solvency, liquidity, profitability, asset quality and other areas related to material risks. The purpose of these indicators and thresholds is to facilitate the assessment of whether the Group is operating within its defined risk appetite levels. The outcome of this process is the Risk Appetite Statements (RAS) document, whereas the principles, process and governance aspects related to the RAS are outlined in the Risk Appetite Framework (RAF). The RAS are complemented by a set of Business Line Statements (BLS), which constitute operational metrics (and limits) at the business level where the risks are undertaken.
Based on the above, the Bank has established relevant Risk Appetite Statements, both quantitative and qualitative, related to ESG/ CR&E Risks to effectively manage these risks, in line with the Bank’s monitoring and escalation processes. Within this context, the Bank has set an RAS for at least 20% of the annual new CIB disbursements to be classified as green / environmentally sustainable loans, by applying the criteria set in the Bank’s Sustainable Finance Framework, which also includes RRF green tagging classification. This target was reached during 2023, demonstrating the Bank’s commitment towards green transition.
In addition, Eurobank has set an RAS whereby the Group shall make no new investments in fixed income securities (ESG / Green Bonds are excluded) issued by the top 20 most carbon-intensive corporates worldwide. Furthermore, the Bank has introduced a qualitative RAS in relation to the environmental risk posed to biodiversity. Based on its exclusion list, the Bank shall refrain from financing activities prohibited by host country legislation or international conventions relating to the protection of biodiversity resources.
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. At the same time, 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), the Bank continues to strengthen its capacity to identify and manage social risk stemming from client operations, also determining relevant mitigating actions, if deemed necessary.
Eurobank assesses its exposure to governance risk on an ongoing basis, given that unsuitable governance practices of its clients could adversely impact its operations. To this end, the Bank has established effective internal governance arrangements to manage such risks and processes, and to better evaluate the governance performance of its clients.
Eurobank has put in place a set of tools for identifying, measuring and managing CR&E risks, including the credit granting and monitoring processes. These are used by the involved Units across the Group’s both 1st and 2nd lines of defence, with the relevant tasks being performed in a collaborative and efficient manner.
At the point of loan origination, the Bank requires that borrowers provide insurance policies for real estate properties accepted as collateral, excluding plots of land. Compulsory coverage includes protection against physical risks such as fire and earthquake for all borrowers whereas flood coverage which is compulsory for corporates will also become mandatory for retail borrowers in 2024. Desirable coverages vary based on real estate type and circumstances, such as properties under construction or close to protected areas.
The Bank acknowledges that collateral valuation should account for physical locations, as physical risks may affect the value of collateral (e.g. increased flood risks). Recognising the potential impact of physical risks on collateral value, the Bank is incorporating climate-related risks into its Collateral Valuation Policy and procedures, aiming to mitigate risks associated with properties vulnerable to environmental hazards, in alignment with the regulatory standards.
The Group’s MRA Model assesses the CIB borrowers’ credit profile based on qualitative and quantitative criteria. Specifically, the “Risk of Adverse Events” criterion assesses a client’s vulnerability to adverse developments or business interruptions, fines, litigation and negative publicity, stemming, among others, from environmental parameters and social issues (e.g. health and safety of customers).
Eurobank has established Know-Your-Customer (KYC) and Anti-Money Laundering/ Terrorist Financing (AML/TF) policies and standards, which are designed to provide safeguards against, inter alia, fraud and cooperation with clients with increased financial crime risk (i.e. risk of involvement in money laundering and terrorist financing).
Within the scope of customer KYC profiling, Eurobank applies enhanced due diligence measures upon establishing a business relationship and when carrying out transactions with natural or legal persons/entities who are classified as high-risk as per Eurobank’s relevant internal processes.
When integrating Environmental and Social (E&S) issues into its business model, the Group implements an Environmental and Social Management System (ESMS) to assess direct and indirect environmental and social aspects, aiming to mitigate potential credit risks arising from the operation of businesses that are financed.
In this context, the Group has developed an Environmental and Social Policy that sets the framework of general principles and requirements for managing environmental and social issues. Through the Environmental and Social Policy, the Group achieves and maintains compliance with existing national and international environmental and social legislation/regulations, as well as with its commitments, through a standardised E&S assessment approach. 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 maintains a list of activities that are excluded from financing, in line with the exclusion lists of the EBRD. For all financing transactions, the Group 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 ESMS process consists of client/activity environmental and social risk screening, risk assessment process, decision of risk control approach and ongoing performance monitoring.
| Loans/Projects assessed for environmental and social risks – Group | ||
|---|---|---|
| 2022 | 2023 | |
| % of low-risk outstanding loans | 28.85 |
34.34
|
| % of medium-risk outstanding loans | 57.94 | 54.26 |
| % of high-risk outstanding loans | 13.21 | 11.40 |
| Total amount (€ million) | - | 5,713 |
| Number of portfolio transactions assessed for E&S risks | - | 8,620 |
In line with best market practices, as well as taking into account supervisory requirements/expectations with regard to establishing an approach for further assessing clients with higher climate risk exposure, the Bank has developed the Climate Risk Scorecard for considering climate-related and environmental risks.
In this context, an assessment process based on the Climate Risk Scorecard is to be performed for all new financing transactions, limit increases and limit renewals (existing and new clients), initially applied to the Bank’s Corporate & Investment Banking (CIB) portfolio. The Climate Risk Scorecard comprises a modular questionnaire which includes targeted climate risk and sustainable financing related questions, both qualitative and quantitative, capturing the following key dimensions: transition risk, taxonomy aligned activities, physical risk, sustainable financing, emissions, strategy, climate & environmental incidents, transition-green technology. In addition, the questions of the Climate Risk Scorecard have been developed to examine climate risk and sustainable financing aspects both at client and at transaction level.
The output of the Climate Risk Scorecard is one the following 3 scores: (a) High Risk, (b) Medium Risk and (c) Low Risk. Mitigating actions and/or monitoring based on the client’s Climate Risk scoring have also been designed.
In recent years, increased regulatory focus has been placed on ESG aspects in the banking sector. Based on the regulatory framework, institutions are expected to enhance their credit risk classification procedures to identify and evaluate climate-related and environmental risks, as well as integrate ESG aspects in the creditworthiness assessment process.
Based on this, an interbank initiative in the Greek banking market was jointly launched by the Hellenic Bank Association (HBA) and the major Greek banks, to design a common Interbank ESG Questionnaire for their clients. The objective is to develop a comprehensive ESG Questionnaire to be used by the Greek banks, ensuring a harmonised assessment approach and a level-playing field, to incorporate a holistic assessment of client ESG factors.
The ESG Questionnaire ensures alignment with supervisory expectations/ requirements (e.g. meeting obligations regarding the EBA Guidelines on Loan Origination and Monitoring and the ECB Guide on Climate-Related and Environmental Risks), the applicable international standards/guidelines (e.g. Task Force on Climate-related Financial Disclosures), as well as the Banks’ operational needs, and best market practices. Upon full roll out of the ESG Questionnaire, the ESMS scorecard will be phased out.
By combining the Climate Risk Scorecard and the Interbank ESG Questionnaire, Eurobank has developed the ESG Risk Assessment, a holistic approach which assists in assessing and classifying the Bank’s clients in terms of ESG criteria, as per the relevant regulatory framework. More specifically, Eurobank’s ESG Risk Assessment assesses its Corporate & Investment Banking (CIB) clients both at obligor (i.e. borrower) as well as at transaction level along with the Sustainable Finance Framework classification.
In this context, Eurobank has developed an internal ESG Risk Scoring methodological approach for the ESG Risk Assessment to facilitate the final ESG Risk scoring assessment and classification of the client. The output of the ESG Risk Assessment is one of the following 3 scores: (a) High ESG Risk, (b) Medium ESG Risk and (c) Low ESG Risk. During the credit decision/granting process, Eurobank uses the ESG Risk Assessment to consider the client’s ESG risk scoring and profile, the possible mitigating actions, as well as the due diligence assessment performed on selected cases. Overall, the ESG Risk Assessment aligns with Eurobank’s business strategy, enhances ESG risk awareness, promotes sustainable financing, and ensures adherence to the Group’s risk appetite and credit policies.
The Group’s Sustainable Finance Framework (SFF) provides a clear and comprehensive methodology for classifying, monitoring and reporting sustainable financial products. The SFF sets out the eligible assets to be financed, presented separately for the portfolios of Wholesale and Retail (i.e. presentation of the scope, sustainable financing classification and applicable regulatory frameworks). If a potentially eligible financing fulfils the criteria outlined for each classification category, then, upon following the necessary evaluation and approval verification process, it can be classified as sustainable financing.
In this context, the Group has developed a web-based Sustainable Finance Framework (SFF) Assessment Tool for the Corporate & Investment Banking (CIB) portfolio, to underpin the classification and evaluation of sustainable/green financing opportunities in a structural manner, as part of the loan origination process. The SFF Assessment Tool is delivered through an online platform; a workflow-based application which automates the process of assessing the Group’s financing solutions against the criteria defined in the SFF.
Eurobank is in the process of refining its Collateral Valuation Policy (CVP) to specify accepted collateral types and valuation procedures, while integrating assessments of climate-related and environmental risks. This involves collecting pertinent information such as Energy Performance Certificates (EPCs) and incorporating forward-looking estimates of natural hazards. The updated Policy will also consider broader climate-related and environmental factors, such as waste management and accessibility, to enhance valuation accuracy and risk management.
Eurobank has established a dedicated dashboard for monitoring and reporting purposes, with appropriate CR&E risks KPIs/KRIs that are reported to the senior management and management body on a regular basis, to safeguard the efficient oversight of CR&E risks through selected metrics. For selecting and defining the relevant CR&E risks indicators, Eurobank leveraged on the insights gained from the 2022 ECB Climate Risk Stress Test, the ECB’s Report on CR&E Risk Good Practices, the Group’s internal exercises (e.g. scenario analysis / materiality assessment processes for transition and physical risk), as well as taking into account best market practices.
In 2023, Eurobank participated in the One-off Fit-for-55 Climate Risk Scenario Analysis exercise, launched by the European Banking Authority (EBA) in collaboration with the ECB and the ESRB. Following the relevant guidelines issued by the ECB and the EBA, the Bank complied with the methodological requirements by timely submitting all the required templates. The exercise involved 7 templates focusing on credit and market risk data, as well as extended information on climate risk (reference date for the data submitted was 31.12.2022). These templates covered data considering:
The regulatory exercise aimed to assess the financial sector’s resilience, in alignment with the Fit-for-55 package, providing valuable insights into the financial system’s capability to support the transition to a low-carbon economy, particularly under stress conditions.
For more information on the management of ESG risks refer to the Consolidated Pillar 3 report and the TCFD Climate - related & Environmental Risk Report 2023.
One of the Bank’s key ambitions is to become a frontrunner in supporting the low-carbon transition. To this end, it has set a Net Zero commitment, expected to be formalised through the Net Zero Banking Alliance in 2024, and has deployed a dedicated approach that will enable clients to meet their sustainability objectives.
GR 3-3
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:
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 3 guiding frameworks, defining the approach and criteria for classifying its financing and investing activities as sustainable.
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:
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:
In its SFF Sustainable Finance Framework, Eurobank defines four classification approaches:
Project-specific loans or financing instruments whose use of proceeds is 100% directed towards eligible green / social activities.
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
| Area | Eligible activities |
|---|---|
|
Energy efficiency |
|
|
Renewable energy |
|
|
Clean transportation |
|
|
Green buildings |
|
|
Pollution prevention & control, and Circular economy |
|
Social
| Area | Eligible activities |
|---|---|
|
Economic inclusion |
|
|
Affordable basic infrastructure |
|
|
Access to essential services |
|
|
Affordable housing |
|
|
Food security & sustainability |
|
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:
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 achieving them during the loan repayment period and, as such, the SPTs are also included in the loan agreement (i.e. in the form of non-financial covenants). The accomplishment of the relevant targets is monitored using specific KPIs, which are specialised according to the client’s activity sector/ industry.
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.
Activities approved through the Greek Recovery and Resilience Facility, contributing to the green pillar.
For further details on the objectives and the criteria associated with each eligible activity of the Sustainable Finance Framework refer to the Group’s TCFD Climate - related & Environmental Risk Report 2023.
The Bank’s Green Bond Framework assists the Bank in meeting 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.
The Bank has approved its Sustainable Investment Framework (SIF) for classifying 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 selecting 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 non-eligible investments for its portfolio. The classification approaches used by the Bank in the context of its SIF are:
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.
ATHEX A-G6
Based on actual performance, the Bank has integrated its financed impact strategy into its operations and has made significant progress towards achieving its targets. Specifically it has:
1. Operationalised its Sustainable Finance Framework
2. Enhanced its capabilities for collecting climate/ESG risk data
The Bank is continuously enhancing its capabilities for collecting climate related and environmental risk data, through integrating additional information requirements in the credit process, as well as cooperating with third-party data providers.
It has implemented a set of tools for identifying, measuring and managing CR&E risks, including the credit granting and monitoring processes. These are used by the involved Units across the Group’s both 1st and 2nd lines of defence, with the relevant tasks being performed in a collaborative and efficient way.
Having already performed an assessment of ESG and CR&E data availability in its internal systems against regulatory requirements/expectations, the Group continues to enhance its environmental risk data aggregation capabilities and IT infrastructure accordingly, while also using appropriate controls and safeguards to ensure the accuracy and completeness of the compiled information. The Group seeks to further improve environmental risk data granularity, through the allocation of detailed roles and responsibilities for the purposes of ESG and CR&E data management and the implementation of approaches for the remediation of identified data gaps (i.e., engagement with external data providers, development of methodological approaches for the estimation of required information).
3. Intensified engagement with its counterparties on ESG risk mitigation
Aiming to facilitate the green transition of its clients, the Bank has developed a dedicated approach to increase client engagement and awareness regarding environmental risks. Besides the initiatives launched aiming to build ESG literacy and capacity among its clients (e.g. online events, articles and webinars, digital academy for businesses), the Bank also uses tools to engage with its counterparties in the context of its credit granting and asset management activities, so as to understand their strategies and mitigate their CR&E risks exposures.
4. Introduced ESG/sustainable products
Eurobank has developed multiple products that aim to stimulate sustainable growth, including RES investments, energy saving programmes for residential buildings, and debt restructuring programmes for vulnerable groups. Going forward, it plans to develop additional products dedicated to promoting sustainable practices for the Retail portfolio.
5. Achieved the sustainable financing targets set as part of its financed impact strategy
For the second consecutive year, Eurobank achieved the sustainable financing targets related to its corporate portfolio, set as part of its financed impact strategy. New SFF-aligned annual disbursements exceeded the 20% target of total corporate disbursements, while corporate green exposures increased from €1.5 billion in 2022 to €2.18 billion in 2023, posting a 45% year-on-year growth.
More specifically, the following tables demonstrate Eurobank’s performance against its sustainable financing targets.
| Target | 2023 Performance | |
|---|---|---|
| Annual sustainable disbursements | 20% of new corporate disbursements to be classified as Green/ Environmental |
√ 20%
|
| Annual sectoral targets |
35% new disbursements in the energy sector to be directed to RES 80% of disbursements related to construction of new buildings to be directed to green buildings |
√ 53% √ 100% |
| Target | Performance so far | |
|---|---|---|
| Green stock targets |
2 billion in new green stock by 2025 20% of green stock exposures by 2027 |
|
The Bank’s corporate portfolio sustainable stock exposures increased by around €0.7 billion in 2023, posting a 45% year-on-year growth, in line with the Bank’s green stock targets.
In terms of allocation per financing approach, as described in the Sustainable Finance Framework, the majority of exposures related to green – dedicated purpose financings while sustainability-linked and business mix financings account for the remaining 21%.
As per the activities financed, over half of the sustainable exposures relate to renewable energy projects, while energy efficiency projects/interventions account for 20% and green buildings account for 18%. One of the key sustainable activities financed is the flagship Crete-Attica electricity interconnection, a project that is expected to deliver significant sustainability benefits, which accounts for around 10% of the sustainable exposures. Pollution prevention and circular economy activities are still a minor part of the sustainable financing allocation.
Regarding bond positions, as at 31.12.2023 the Bank held over €0.47 billion in green and sustainability-linked bonds, a slight increase in relation to 2022.
Recognising its efforts in promoting sustainable finance, for the second consecutive year the internationally renowned Global Finance magazine awarded the prestigious Best Bank for Sustainable Finance in Greece 2024 distinction to the Bank. This distinction ranks it among the best performing banks in sustainable financing worldwide and underlines the Bank’s commitment to ESG best practices, by focusing on sustainable financing initiatives designed to mitigate the impact of climate change and shape a sustainable future for everyone.
This important recognition takes on particular significance as the demand for sustainable investments accelerates internationally. In this context, Eurobank has performed remarkably, reinforcing its strong, qualitative and reliable presence in the market.
ATHEX A-S1
Within 2023, the Bank participated in offering financing and advisory on landmark projects and transactions contributing to sustainable development.
Committed to its sustainable financing targets, the Bank is continuing to support the green transition of its clients, demonstrating significant achievements within 2024.
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. It determines whether an economic activity is environmentally sustainable, and obligates financial and non-financial entities subject to the Non-Financial Reporting Directive (NFRD) to disclose the alignment of their activities.
The key indicator of alignment for credit institutions is the Green Asset Ratio (GAR), which companies are required to publish starting in 2024. It determines the extent to which activities comply with the criteria of the Taxonomy regulation. 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). Moreover, as required by the EU Taxonomy Regulation, activities to be taxonomy-aligned must meet the specific taxonomy criteria, and ensure that they cause no significant harm to any of the other environmental objectives (DNSH) and meet minimum social safeguards (MSS).
In line with best market practices, the Group has integrated the requirements of the EU Taxonomy within its three lines of defence, with key roles consisting of:
As part of its sustainability strategy, the Group is implementing initiatives that will, among others, enable it to increase the share of taxonomy-aligned assets in the coming years by:
The Group’s total GAR based on turnover and total GAR based on CapEx as at year-end 2023 cover the two climate-related EU environmental objectives – Climate Change Mitigation (CCM) and Climate Change Adaptation (CCA) – and are outlined below:
| Summary EU Taxonomy KPIs | |||||
|---|---|---|---|---|---|
| 31 December 2023 | |||||
| Assets | Gross carrying amount (in € million) |
Turnover KPIs | CapEx KPIs | ||
| GAR – Covered assets in both numerator and denominator | 21,655 |
|
|||
| Assets excluded from the numerator for GAR calculation (covered in the denominator) | 38,795 | ||||
| Taxonomy-eligible assets | 12,605 | 20.90% | 14,481 | 24.00% | |
| Taxonomy-aligned assets | 1,484 | 2.50% | 2,088 | 3.50% | |
| Total GAR assets | 60,449 | ||||
| Total assets | 81,165 | ||||
| Impairment for loans and advances at amortised cost, debt instruments and other adjustments, according to EU taxonomy methodology | (1,384) | ||||
| Total assets according to the Consolidated balance sheet as of 31 December 2023 | 79,781 | ||||
The reported main and additional KPIs calculated on 31 December 2023 for the Group, including the reporting templates as set out in the Taxonomy Regulation and FAQs, are presented below. Eligibility information for the additional four environmental objectives has not been reported for 2023 as there are no available data by the counterparties, based on the latest published taxonomy information.
| Total environmentally sustainable assets(1) | KPI(3) | KPI(4) | % coverage (over total assets)(5) |
% of assets excluded from the numerator of the GAR (Article 7(2) and (3) and Section 1.1.2. of the Annex V) |
% of assets excluded from the denominator of the GAR (Article 7(1) and Section 1.2.4. of the Annex V) |
||
|---|---|---|---|---|---|---|---|
| Main KPI | Green asset ratio (GAR) stock | 1,484 | 2.5 | 3.5 | 74.5 | 47.8 | 25.5 |
| Additional KPIs | GAR (flow) | 650 | 6.9 | 11.0 | 31.5 | N/A | N/A |
| Trading book(6) | |||||||
| Financial guarantees(7) | 44 | 1.9 | 6.5 | ||||
| Assets under management(7) | 24 | 0.4 | 2.1 | ||||
| Fees and commissions income(6) | |||||||
GRI 3-3 ATHEX A-E8
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 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. Note that reported emissions have been applied where the disclosed emissions from the Bank’ 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 incorporated estimated emissions according to its internal methodology, in line with the PCAF standard.
| NACE Code | Outstanding amount (€ million) | % Outstanding amount | Scope 1 (‘000 tCO2e) | Scope 2 (‘000 tCO2e) | Scope 3 (‘000 tCO2e) | Total emissions (‘000 tCO2e) |
|---|---|---|---|---|---|---|
| A - Agriculture, forestry and fishing | 414.8 | 1.7 | 224.3 | 19.2 | 165.8 | 409.3 |
| B - Mining and quarrying | 121.1 | 0.5 | 30.6 | 10.5 | 27.2 | 68.3 |
| C -Manufacturing | 4,425.5 | 18.3 | 1,518.7 | 766.0 | 19,614.8 | 21,899.5 |
| D - Electricity, gas, steam and air conditioning supply | 2,655.3 | 11.0 | 1,145.3 | 151.4 | 302.0 | 1,598.7 |
| E - Water supply; sewerage, waste management and remediation activities | 65.0 | 0.3 | 62.8 | 81.3 | 48.9 | 193.0 |
| Exposures to other sectors (NACE codes J, M - S) | 2,338.6 | 9.7 | ||||
| F - Construction | 1,031.9 | 4.3 | 76.2 | 14.6 | 892.2 | 983 |
| G - Wholesale and retail trade; repair of motor vehicles and motorcycles | 4,110.3 | 17.0 | 628.2 | 401.2 | 2,292.8 | 3,322.2 |
| H - Transportation and storage | 4,364.6 | 18.1 | 1,371.3 | 89.2 | 711.8 | 2,172.3 |
| I - Accommodation and food service activities | 2,401.6 | 10.0 | 8.2 | 60.1 | 224.7 | 293.0 |
| K - Financial and insurance activities | 131.4 | 0.5 | ||||
| L - Real estate activities | 2,067.8 | 8.6 | 1.5 | 13.6 | 32.9 | 48.0 |
| Grand Total | 24,127.9 | 100 | 5,067.1 | 1,607.1 | 24,313.1 | 30,987.3 |
The Group recognises that the most significant part of its impact on climate arises from the financing it extends to its clients. Therefore, following its baselining exercise for 2022 – the most complete and comprehensive emissions measurement it has achieved so far – it is now taking the next step to identifying and disclosing its first set of sectoral Net Zero targets. In doing so, it aims to actively support the decarbonisation policy agenda and play a pivotal role in channelling capital flows towards the transition of key sectors of the Greek economy in the short-, medium- and long-term. Specifically, the Group has initiated the process of developing sectoral, financed emissions reduction targets based on the NZBA framework, for some of the most carbon-intensive and, therefore, most relevant and impactful sectors and portfolios. It approaches its target setting process on a sector/portfolio basis, to factor in specific elements of the climate transition. It also adheres to proven industry standards (e.g. NZBA, PCAF) and accredited science-based decarbonisation scenarios, in line with a 1.5 degree Celsius objective by 2050.
Notably, the Group, in line with its commitment to address climate change, has joined the Net-Zero Banking Alliance (NZBA), in order to reinforce its dedication to aligning its lending and investment portfolios with net-zero emissions by 2050 or sooner, in line with the most ambitious targets set by the Paris Climate Agreement. The Bank is proud to join leading peers from the banking industry in its effort to reach net-zero emissions by 2050 and looks forward to engaging with its clients to support their transition plans. Even though its operational carbon footprint is very limited compared to its financed emissions, it is also setting reduction targets for operational emissions under its sphere of direct control.
Its target setting approach builds on an overarching framework that has been guiding its analysis and decisions.
On the basis of the NZBA framework, the group has identified its priority, carbon intensive sectors, representing a significant proportion of its financed emissions, and is developing its 2030 emission reduction targets.
Eurobank has identified biodiversity loss as a relevant risk for its operations. Biodiversity loss is an average loss in biological diversity over time and/or space that leads to a decline in the ability of the natural world to generate flows of ecosystem services, with negative economic impacts on individuals, households, organisations and countries.
Climate and biodiversity are closely related, and there is growing awareness that continuous extinction events and biodiversity loss are linked to climate change and other human-caused stresses on natural systems.
Based on the capability of the financial sector to influence the sustainable use of nature through its business activities, Eurobank is already taking appropriate steps to integrate biodiversity loss in its operations, by developing a corresponding response strategy and incorporating relevant provisions in the risk management framework. According to the Group’s Exclusion List, activities prohibited by the laws of the host country or international conventions concerning the protection of biodiversity or cultural heritage resources are excluded from financing. At the same time, the ESG Questionnaire that will be used by the Group in the context of the borrowers’ creditworthiness assessment includes, inter alia, dedicated questions aiming to capture the biodiversity loss risk of the Bank’s counterparties.
Considering the complexity of assessing this risk driver in relation to Eurobank’s business practices and own operations, given the fact that the relevant guidance in this field is currently under development, Eurobank is closely following several related initiatives and continues to build its skills and capacity, so as to ensure readiness to appropriately address such risks, upon the availability of more granular guidelines and methodologies in this respect.
Furthermore, the Bank has introduced a qualitative RAS in relation to the environmental risk posed to biodiversity. Based on its exclusion list, the Bank shall refrain from financing activities prohibited by host country legislation or international conventions relating to the protection of biodiversity resources.
As per the Responsible Investment Policy document of Eurobank Asset Management MFMC, the Company integrates ESG factors into the investment process. In particular, the ESG analysis includes the assessment of environmental criteria (e.g. emissions of greenhouse gases, exposure to fossil fuel and water emissions) at the level of the companies in which the funds and portfolios invest. The events or conditions that may be responsible for a negative impact on the return of the fund/portfolio include environmental aspects (e.g. carbon emissions, water pollution, loss of biodiversity or damage to ecosystem). The specific sustainability factors considered may vary, as they depend on the specific investment strategy followed by each fund/portfolio.
ATHEX A-G6
Eurobank managed to stand out among its peers in deploying RRF funds in the Greek economy, through strong commitment towards the recovery from the pandemic and a more sustainable, environmentally friendly and socially just direction. The business strategy for the Bank regarding the RRF-related loans has been set to effectively achieve the main objectives of the RRF programme, such as including diversified projects from all company sizes, distributed across all eligible pillars, focusing on meeting certain performance thresholds regarding green transitioning and digital transformation in all RRF financed projects. The approved investments fall mainly under the Green Transition pillar, followed by Digital Transformation and Extroversion pillars, channelling the RRF funds into a large number of enterprises from different sectors such as:
With its exemplary performance and fast RRF fund absorption rate, Eurobank has proved its ability to effectively use the available EU financial instruments and manage complex financial operations, targeting economic growth.
Throughout 2023, the Bank successfully signed 44 transactions, contributing to a cumulative total of 68 transactions since the inception of the RRF programme. The 68 transactions, which include both bilateral and syndicated agreements, facilitated investments summing up to €4.67 billion, out of which €1.16 billion were mobilised through the RRF funds.
Some representative transactions Eurobank carried out in 2023 under the Greece 2.0 National Recovery and Resilience Plan are listed below:
The Bank continues to support the tourism industry in its sustainability transition through the ongoing ESG programmes for hotels:
Eurobank was the first Greek bank to offer ESG Deposits to its corporate clientele, and continues to offer this product, allowing its clients to contribute to sustainable development projects. The amount raised from ESG Deposits is 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.
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 Exoikonomo Programmes from 2011 to date (Exoikonomisi Kat’ Oikon I & II, Exoikonomo - Aftonomo, Exoikonomo 2021).
In 2023 the Bank continued to solidify its presence in green mortgage loans, by participating in the Exoikonomo 2021 development programme. The programme is funded by the Recovery and Resilience Facility (RRF) within the framework of the program Next Generation EU. It offers an interest rate subsidy and, subject to conditions, the State's guarantee to secure the loan, the capital grant, the cost of energy inspections and potentially studies, the cost of issuing an Electronic Building Identity and the Project Consultant's fee to all eligible households, so they may carry out green interventions in their homes to optimise their energy- efficiency, and install smart home automation systems. The Bank is participating in the Exoikonomo programme with streamlined processes for quicker loan processing, 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. Concerning the new Exoikonomo 2023 programme, the Bank will actively participate in B2C, by granting loans to eligible households. As in every Exoikonomo programme in the past, in partnership with the Hellenic Bank Association and its members, it 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.
Through the financing of photovoltaic systems, Eurobank offers small businesses the opportunity to carry out their investment plans in terms of 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 2023, new disbursements amounted to €12.9 million.
Through the bridge financing Exoikonomo programme, Eurobank extends to customers a credit line to finance the works they carry out as a supplier/contractor on properties included in the programmes Exikonomo – Aftonomo and Exikonomo 2021 (Programme) 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 Programme, regardless of whether such customers take out a loan from Eurobank or not. In 2023 new disbursements amounted to €0.2 million.
As part of its strategy to increase the penetration of ESG products, the Bank has a pipeline of products, aligned with the Sustainable Finance Framework. These products will be directed towards small businesses and will focus on 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.
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 has a favourable interest rate compared to that of a typical consumer loan. Additionally, to make the loan more affordable, Eurobank offers flexible repayments, as well as the option of the student’s parents acting as loan guarantors.
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 2023, WWF Hellas had received €1.9million through WWF Eurobank Visa for financing environmental protection actions, at no additional cost for the 16,747 currently active WWF Eurobank Visa cardholders. Some of the actions supported by Eurobank include:
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). In 2023, Eurobank contributed $129,204 to Conservation International, to support this major mission.
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 2023, around 2.2 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.
For the past 23 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 2023, the around 19,995 active cards generated a donation of €23,369.
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 20 years, Eurobank has been consistently supporting the campaign’s efforts in Greece, actively helping it attain its goals, which are to inform women and raise awareness on the importance of prevention and early diagnosis of breast cancer.
In 2023, there were around 18,789 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 2023, €13,553 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.
GRI 3-3
Eurobank promotes financing products that specifically relate to infrastructure and supported services, aiming to assist businesses grow and become updated, boost their competitiveness, and improve the quality of the products and services they offer.
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 2023, SMEs operating in the less developed regions received financing up to €15.1 million.
The Bank has cooperated with AFI until mid-2023 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 EU 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 EU, and to ensure increased access to financing.
In the context of this programme, and in cooperation with AFI, Eurobank provided financing to 635 businesses to the amount of €6.6 million in total. The financing may be used to cover needs such as working capital, and capital for investments in tangible and intangible assets.
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 information services for SMEs, 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 several agreements 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.
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, the Bank financed 67 SMEs to the amount of €17.4 million within 2023.
Eurobank also participates in the "Business Growth Fund”, “EAT Micro AGRI”, “Tamio Eggiodosias EAT TMEDE” and "Tamio Eggiodosias Kenotomias" programmes. Under these programmes the Bank financed 118 SMEs to the amount of €19 million until the end of 2023.
GRI FS13
Focusing on customer service, Eurobank aims to make its services, assets, resources and opportunities accessible to all. To this end, through its branch network (268 branches), the Hellenic Post Office network (469 offices) and the self-service banking terminal network (1,786 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. Approximately 93% of ATMs have been adapted to accessibility requirements by providing, further to special tactile buttons, voice guidance or wheelchair access.
Through the Hellenic Post branches, Eurobank is present in 242 Municipal Communities with a population of less than 5,000 people, many of whom have difficulty accessing services, especially on remote 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:
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.
At the end of 2023, the Eurobank branch network numbered 268 branches in total. The Bank’s branches are entering a new era in banking services, combining advanced digital options with personal support provided by its staff.
By 31.12.2023, 9 Future Branches adopted the new operational model, which introduces a digital, innovative, sustainable and human-centric approach to day-today banking, focusing on offering clients advice through relationship managers, and channelling transactions to digital and self-service options.
Moreover, in 2023, the Bank tried to improve customer service and productivity by:
Scheduling appointments at all Eurobank branches – Over 757,000 appointments were scheduled throughout the year. The online appointment booking option (through eurobank.gr) became available towards the end of July 2023. Therefore, the percentage of appointments booked online over the total appointments from August 2023 to the end of the calendar year was 25%.
Increasing the time relationship managers allocate to each client – To achieve this, Eurobank implemented 2 changes:
Launching the project Mobility – This project allows offsite banking, as part of the Bank’s consulting approach and the further development of its services. 1400 officers have offsite access during their visit to a customer’s premises, to provide end-to-end services for a specific range of banking transactions/products.
Enhancing digital and hybrid offering with the Digital Safe Box – This allows customers to get even complex products remotely, signing all necessary paperwork through their e-Banking, in line with Eurobank’s “bank everywhere” vision. The 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.
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 460 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.
In 2023, 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:
The strategic cooperation framework with major retailers in Greece, which was introduced last year to finance the purchase of durable goods through consumer loans, is still expanding. The framework allows customers to complete their online or in-store purchases seamlessly within minutes, without contacting any Eurobank branch.
Moreover, Eurobank forged strategic alliances with major utilities and consumer services brands, and introduced unique product bundles, grouping together banking and non-banking products for both B2C and B2B customers, addressing competition.
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 2-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 2023, telemarketing achieved the following goals:
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 through both automated system and agents, 24/7.
In 2023, 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 65 agents were recruited in Thrace, Northern Greece and islands of northeast Aegean Sea.
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 73%, while the percentage of customers stating they were served during the 1st call reached 78%.
The self-service banking terminal network consists of 1,786 service points. In 2023, new ATM and APS Transactions were launched:
During the year, 45 new offsite ATMs became operational and the Business Corners, the new self-service cash deposit network, expanded to total 31 terminals.
With regard to the use of self-service machines for deposits, 21 new ATMs with deposit functionality were installed at Bank branches and the Hellenic Post branch network.
2023 was a remarkable year for the v-Banking channel, as it continued to experience growth and expand its presence in the main customer segments. One notable achievement 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 segment, generating noteworthy sales figures.
The key developments for v-Banking in 2023 include:
Throughout these developments and achievements, v-Banking maintained its commitment to customer satisfaction. This was for another year 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.
Fully aligned with the policies and initiatives prepared by the Eurobank Group, the international subsidiaries expand their sustainable financing portfolios, assess environmental and social risks, and promote financial inclusion.
| Postbank | Eurobank Cyprus |
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| Material topic: Sustainable financing and investment offerings / Climate change adaptation / Climate change mitigation | |
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| Material topic: Integration of sustainability in Risk Management | |
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| Material topic: Financial inclusion | |
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