BUSINESS: 338 PRACTICES
Piraeus Bank was founded in 1916. Today it represents the leading Bank in Greece with 30% market share in terms of customer loans and 29% in terms of customer deposits. The Bank is committed to play a leading role in the Greek economy, actively supporting economic activity and extroversion through specialized solutions and high-level services to its customers.
https://www.piraeusbankgroup.com/en/group-profile/brief-profile
Sustainable Banking
The Principles for Responsible Banking (PRB) define and define the framework in which sustainable banking will develop in the coming decades
Harmonization of banks with the needs of society
They were formed under the auspices of the United Nations Environment Program Finance Initiative (UNEP FI) in order to harmonize the operation of banks with the global Sustainable Development Goals and the Paris Agreement for the Climate, as expressed by the United Nations.
The Principles are primarily addressed to the banking industry and to the management of banks worldwide.
They also address the banks' stakeholders, that is, shareholders, investors, customers, partners and suppliers, and employees.
The initiative started in 2018 with a horizon of implementation of the first stage, within the next 5 years.
A global effort for sustainable banking
In 2015, the 17 global Sustainable Development Goals from the United Nations (UN Sustainable Development Goals - SDGs) were presented, which define the concept of Sustainable Development and are broken down into 169 further specific goals.
In 2016, the Paris Agreement on Climate Change was signed, which is the first universal, legally binding global climate agreement.
Following the above developments, UNEP FI identified the need to harmonize the banking sector with the SDGs and the Paris Agreement.
The Principles were formed in 2018 under the auspices of UNEP FI, in collaboration with 30 member banks of the initiative from all over the world, which represent over 17 trillion. dollars in assets.
Particular importance is given to strengthening the trust, transparency and cooperation of banks with investors, customers, employees and their suppliers, with the ultimate goal of securing a competitive advantage. Changing the criteria for making business decisions by banks is a key objective of the whole effort, so that it is possible for banks to adapt to the needs of society in a volatile economic environment, to the benefit of all.
The 6 Principles of Responsible Banking
Alignment: We will align our business strategy to align with and contribute to the needs of individuals and the goals of society as reflected in the global Sustainable Development Goals, the Paris Climate Agreement, and other relevant national and regional contexts. We will focus our efforts where we have the most impact.
Impacts: We will continuously increase our positive impacts, while reducing our negative impacts and managing the risks to people and the environment arising from our activities, products and services.
Customers: We will work responsibly with our customers to encourage sustainable practices and promote economic activities that create prosperity for both present and future generations.
Stakeholders: We will consult and cooperate in a timely and responsible manner with our stakeholders to achieve society's goals.
Governance and Target Setting: We will implement our commitment to these Principles through effective governance and developing a culture of responsible banking, showing determination and accountability by establishing publicized targets for our most significant impacts.
Transparency and Accountability: We will periodically review our corporate and collective application of these Principles, and we will be transparent and accountable for our positive and negative impacts and our contribution to society's goals.
Piraeus Bank is also a leader in the formulation and implementation of the Principles of Responsible Banking
Piraeus Bank was the only Greek bank that actively participated in this global effort from the very beginning.
The Chief Executive Officer (CEO) of the Bank was present at the opening ceremony of the consultation period of the Principles in November 2018 in Paris and signed the Principles at the official ceremony held in September 2019 in New York, within the framework of the UN Conference. and the presence of the Secretary General of the UN Antonio Guterres.
Piraeus Bank participates in UNEP FI working groups and cooperates with its Secretariat, as well as with the other 29 banks from around the world. The Sustainability Unit participates in the working group for the formulation of the text of the six (6) Principles and continues to be actively involved in the drafting of the Implementation Guidance and the definition of the criteria for the annual progress report required by the banks . He also participates in the working group for the development of a specialized tool that assesses the positive and negative effects of the banks' portfolio in specific sectors of the economy, society and the environment ("Impact Identification Working Group"). Piraeus Bank is also leading the way in the phase of starting the implementation of the Principles that have been signed by more than 150 banks so far, having created a strong internal governance scheme, which was a good practice and is promoted by UNEP FI.
Action Plan of the Authorities 2019-2023
In November 2019, the Action Plan for the implementation and implementation of the Principles at Piraeus Bank is finalized in the pillars:
Internal Governance Structure
Positive Effects
Culture & Communication.
Development of the Action Plan
Internal Governance Structure of the Principles of Responsible Banking of Piraeus Bank
The Bank's Corporate Responsibility Committee (CRC), which is chaired by the CEO, has overall supervision over the implementation of the Principles.
The Board of Directors of the Bank monitors and is systematically informed about the progress of the Authorities.
Senior executives of the Bank who are responsible for the organization's most important activities have been designated as "Responsible Banking Ambassadors" and appointed representatives to the "Working Group". The "Principles for Responsible Banking Working Group" is responsible for the implementation of the Principles, with the formulation of a special "Principles Action Plan 2019-2023", which includes the establishment of objectives and the planning the necessary budget.The Team consists of 13 executives from the management units: Corporate & Investment Banking, Retail Banking, Risk Management, Operations / IT / Organization, Investors Relations, Financial Markets, HR, Sustainability Unit.
Three members of the EY Committee constitute the "Action Team", which coordinates the implementation of the Principles, organizes the relevant meetings of the "Working Group", cooperates with the "Ambassadors", and informs the CEO and the Committee Corporate Responsibility.
Analysis of the Effects of the Bank's Portfolio
The Bank's Sustainability Unit, as a member of the "Impact identification" working group, participated in the development of the tool for assessing the effects of bank financing. In November 2019, the UNEP FI tool is finalized and therefore the first stage of the analysis of the positive and negative effects of the Bank's portfolio is completed.
Culture & Communication
The Bank cooperates with the UNEP FI Secretariat to promote the Principles in the banking industry, globally, presenting the Principles at meetings organized by UNEP FI. In order to inform and involve employees, targeted actions are planned, with an implementation horizon of 2023.
https://www.piraeusbank.gr/el/idiwtes/unep-fi
https://www.unepfi.org/banking/bankingprinciples/
Banking industry
Interested parties of the Bank
Next steps for Piraeus Bank within the period 2020-2023:
As far as Piraeus Bank is concerned, the initiative is related to the Bank's internal operation and business activity in Greece.
A global partnership for sustainable banking
Piraeus Bank participates in UNEP FI working groups, cooperates with the UNEP FI Secretariat as well as with the other 29 banks from around the world.
As part of the Principles, since October 2019, the Bank has also participated with 30 other banks in the "Joint Commitment for Climate Action", where a common goal for climate change will be set.
Promotion of the Authorities in Greece
Piraeus Bank organized a special event for the presentation of the Authorities in Greece, with the Governor of the Bank of Greece as the main speaker. The Bank's President and CEO took the stand and stated the organization's commitment to the initiative. Piraeus Bank organized a meeting with the other systemic banks in Greece, in order to present them with the Principles and ensure their involvement.
Piraeus Bank also works closely with the Sustainable Development Committee of the Hellenic Banking Union to promote and implement the Principles in the Greek banking system.
The participation of the Management and all employees is necessary in order to successfully integrate the Principles into the organization. It is part of the daily work of many employees of the Bank, including among others the Responsible Banking Ambassadors, Principles for Responsible Banking Working Group, Action Team, Sustainability Unit. Special educational material is being prepared, in order for all the Bank's human resources to receive substantial knowledge about the Principles. In addition, relevant announcements and Press Releases are regularly posted on the Bank's intranet with the aim of providing immediate and timely information to all human resources. Finally, on the Bank's website, there is a special point with reference to the Principles and their integration by the Bank.
Piraeus Bank places particular emphasis on strengthening trust, transparency and cooperation with its investors, shareholders, customers, employees and suppliers, with the ultimate goal of securing a competitive advantage. It remains faithful to the choice of a responsible attitude in order to strengthen its social contribution.
