Our ESG journey continues, paving the way to a Greener and more Sustainable Future
NBG’s ESG Report for 2023 was released today, including highlights of the Bank’s ESG activity from January 1st to December 31st, 2023, demonstrating that our commitment towards sustainable and inclusive growth remains an integral part of the Bank’s vision and strategy.
The ESG Report 2023 provides detailed information on NBG’s ESG strategy and progress achieved with respect to its implementation, disclosures on measured greenhouse gas emissions and relevant progress on net-zero emission reduction targets, and updates on other ESG metrics. Moreover, it provides additional information on the management of ESG-related risks, ESG governance framework relevant memberships, and participations in international ESG initiatives, ESG indices and ratings, distinctions, and awards. The key highlights of NBG’s ESG Report 2023 are outlined below.
Acting with Responsibility towards climate transition and the environment
In 2023, NBG made significant steps toward achieving net-zero emissions by 2050. In the last quarter of the year, NBG joined the Partnership for Carbon Accounting Financials (“PCAF”) and the Net Zero Banking Alliance (“NZBA”), aiming to work together with financial institutions across the globe to drive forward needed climate action. NBG became the first Greek bank to set 2030 scienced-based targets for six carbon-intensive portfolios in the context of the NZBA. In our ESG Report 2023, our latest carbon footprint measurements are disclosed, including financed emissions for all eligible exposures of the Bank according to the PCAF methodology, as well as financed emissions for key NBG subsidiaries. Τhe report also provides information on progress towards our NZBA targets, indicating improvement in emissions intensities compared to the 2022 baseline across all portfolios for which targets have been set. Regarding our operational carbon footprint, we remain well on track to meet our 2030 targets for Scope 1 and Scope 2 emissions.
NBG’s notable 2023 achievements include strong market position on renewable energy financing in Greece with €2.0 billion in outstanding balances and €1.2 billion credit approvals as of end December 2023, as well as support of the transition of corporate clients with sustainability-linked loans and contracted amounts of €0.9 billion under the Recovery & Resilience Facility (RRF) umbrella, of which more than half under the green transition pillar. Furthermore, we expanded our retail product offering to support the transition journey of small businesses and households, including financing solutions for small-scale RES, energy upgrade of buildings, and hybrid/electric vehicles. In 2023 NBG also published the first Sustainable Bond Framework in Greece, enhancing its capacity to provide sustainable finance solutions in the future.
Investing in society and our people
In 2023, NBG’s social strategy and sponsorship programs continued to deliver substantial benefits to the communities in which it operates. NBG’s key actions focused on restoring areas impacted by natural disasters and protecting the environment, fostering innovation and entrepreneurship through the NBG Business Seeds programme for start-ups, promoting culture through NBG’s Cultural Foundation (“MIET”), and supporting the successful preparation of Greek athletes for the 2024 Olympic and Paralympic Games.
NBG committed €12.5 million for the support of the restoration projects and the development of new infrastructure in the Thessaly region following the catastrophic results of storm “Daniel”, as part of the €50 million support provided by the four Greek systemic banks. NBG also supported wildfire prevention through a targeted programme strengthening volunteer firefighter groups in cooperation with key foundations. More recently, NBG also launched “My First Home” mortgage loan aiming to enhance financial inclusion by providing financing to young people for the acquisition of their primary residence. Additionally, NBG keeps investing in its people who are always at the core of its strategy, enhancing diversity by achieving 31% female representation at Board level and 32% in Senior Management, developing its talent by offering highly-rated learning courses, including an ESG awareness programme, and offering high-quality health care services through NBG’s Personnel Mutual Health Fund (“TYPET”).
Adhering to the highest governance standards
Operating with transparency and integrity, as well as adhering to the highest governance standards have always been key objectives for NBG. In 2023, we introduced new senior roles in strategy and risk management, as well as new divisions in the first and second line of defence to further strengthen ESG governance and more effectively address the business opportunities, as well as the risks, emerging from the sustainability transition. Our advancement in ESG practices and disclosures have been recognized in several upgrades by ESG rating agencies, including MSCI, ISS ESG, Sustainalytics, and Fitch.
“Our strong commitment to sustainability and inclusive growth pushes us to further embed ESG considerations into our business strategy, commercial and operating model, and culture, and underpins our vision to remain the Greek Bank of First Choice”, said Pavlos Mylonas, CEO, NBG.
NBG’s 2023 ESG Report has been prepared in accordance with the Global Reporting Initiative standards (“GRI 2021”). The goal is to meet the needs of the NBG’s stakeholders, highlighting the Bank's commitment to sustainable development, as described in the Report’s sections. For more information on NBG’s ESG actions and initiatives, visit https://www.nbg.gr/en/group/esg.