Case study: How NBG works with its clients and customers to encourage sustainable practices

Founded in 1841, NBG has had its shares listed on the Athens Exchange since 1880. With a strong legacy and a significant role in Greece’s economic transformation, along with the trust of its shareholders, customers, depositors, and employees, NBG acts as a cornerstone of stability for the Greek economy. The Group primarily operates in Greece but also has a presence abroad through its banking subsidiaries in North Macedonia (Stopanska Banka) and Cyprus (NBG Cyprus), employing a total of 7,889 staff as of December 31, 2023, with 6,725 of those based in Greece. NBG is a signatory of the Principles for Responsible Banking (PRB) and is, accordingly, working with its clients and customers to encourage sustainable practices and enable sustainable economic activities. Tweet This!
This case study is based on the 2024 PRB Self-Assessment & Progress Report by NBG prepared in relation to its implementation of the PRB, that can be found at this link. Through all case studies we aim to demonstrate what ESG/ sustainability reporting done responsibly means. Essentially, it means: a) identifying a company’s most important impacts on the environment, economy and society, and b) measuring, managing and changing.
Which Principles for Responsible Banking have been addressed?
The Principles for Responsible Banking addressed in this case are:
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- Principle 3: Clients and Customers
- Principle 4: Stakeholders
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- How NBG proceeded with stakeholder identification and consultation, and
- How NBG worked with its clients and customers to encourage sustainable practices and enable sustainable economic activities
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Stakeholder identification and consultation
Please describe which stakeholders (or groups/ types of stakeholders) you have identified, consulted, engaged, collaborated or partnered with for the purpose of implementing the Principles and improving your bank’s impacts. This should include a high-level overview of how your bank has identified relevant stakeholders, what issues were addressed/results achieved and how they fed into the action planning process.
A stakeholder-centric approach
NBG’s stakeholders include both individuals and organizations that influence, are influenced by, or may potentially be impacted by the bank’s business decisions, activities, and operations. To identify its stakeholders, NBG typically assesses the frequency, nature, content, and significance of interactions with each group. This analysis aids in pinpointing and categorizing the individuals or organizations with whom the bank engages most regularly and those that have the greatest influence on its operations. After completing this process and validating the groups in line with the new GRI materiality framework, the following primary stakeholder groups were recognized:
- Investors and Shareholders
- Customers
- Suppliers and Partners
- Business Community (including Business Associations, Industry Peers, Rating Agencies/Analysts, etc.)
- Employees
- Government and Regulators (such as Ministries, State Bodies, Regulatory Authorities, and Intergovernmental Organizations)
- Society – Communities (including Media, NGOs, Civil Society Organizations, and Local Authorities)
Recognizing the significance of stakeholder engagement in gathering essential insights to enhance its initiatives and guide its strategy, NBG maintains regular communication with each stakeholder group. This is achieved through a blend of communication methods, channels, and interaction frequencies, all designed to maximize engagement, as outlined in NBG’s ESG Report.
The goal of stakeholder engagement is to identify key issues and develop mutually beneficial solutions through effective business practices. As stakeholder expectations and the business landscape are constantly evolving, assessing stakeholders’ perspectives and priorities enables NBG to identify and prioritize its environmental, social, and governance actions.
Stakeholder Engagement within the GRI Materiality Process
In 2023, NBG initiated a new cycle of GRI materiality analysis, adopting the updated methodology from the GRI Standards to recognize and prioritize both the positive and negative impacts that the bank has or may have (both actual and potential) on the environment, people, and the economy.
This materiality analysis process was guided by GRI’s reporting principles, including Accuracy, Balance, Clarity, Comparability, Completeness, Sustainability Context, Timeliness, and Verifiability, and it was executed in four phases, as detailed below:
- Phase 1: Understanding the organization’s context
- Phase 2: Identification of impacts
- Phase 3: Assessment of impact significance
- Phase 4: Prioritization and validation of impacts
Phases 3 and 4, in particular, involved active engagement with both external and internal stakeholders from all identified groups, who were invited to rank impacts, conduct relative assessments, consider potential future impacts, analyze, and ultimately prioritize material topics that should be explored and reported on in NBG’s ESG Report.
How did NBG work with its clients and customers to encourage sustainable practices and enable sustainable economic activities?
In its 2024 PRB Self-Assessment & Progress Report NBG reports that it works with its clients and customers to encourage sustainable practices and enable sustainable economic activities as follows:
A primary objective for NBG is to tackle ESG challenges and seize opportunities to benefit its clients and customers, who place their trust in the bank’s brand and reputation. Through its engagement with clients and customers, NBG fosters prosperity by financing sustainability and facilitating the transition to net-zero emissions, while cultivating transparent, long-lasting relationships and promoting entrepreneurship and innovation.
I. Supporting Sustainability and the Transition to Net-Zero
NBG is at the forefront of sustainable energy financing and supports its clients and customers in their journey toward sustainability. Notably:
- The bank advances its climate and environmental strategy by promoting sustainable finance and “green” banking solutions, offering products and services that mitigate climate change and enhance environmental protection. Following the issuance of its Green Bond Framework and fully allocated Green Bond, NBG developed a Sustainable Financing Framework in 2023 to enhance and replace the Green Bond Framework, introducing additional eligible green activities alongside socially oriented initiatives. NBG aims to direct proceeds from future issuances toward sustainable energy financing in regional RES (renewable energy sources) projects, sustainable financing options for small businesses, innovative products that promote e-mobility, and financial support for disadvantaged social groups.
- Recently, NBG has established and disclosed its first set of Net Zero targets, positioning itself to channel capital flows toward the sustainable transition of key sectors in the Greek economy over the medium to long term. The bank has shared a set of Net Zero emissions reduction targets for 2030, focusing on its most carbon-intensive sectors and portfolios, including Power Generation, Oil & Gas, Cement, Aluminium, Commercial Real Estate, and Residential Real Estate. NBG is committed to collaborating with clients in these sectors to achieve the targeted reductions along the appropriate transition pathways, ensuring transparency in its climate performance and portfolio management while recognizing the unique decarbonization journey for each sector and client.
- Throughout this process, NBG’s role is to provide ongoing support to its corporate clients through continuous engagement in an advisory capacity. The bank has launched the “Ethniki 2.0” programme, aligned with the “Greece 2.0” initiative, which includes funding for green transition opportunities. NBG actively supports the “Greece 2.0” programme and collaborates with clients and the Recovery and Resilience Fund (RRF) to allocate RRF funding to eligible investment projects.
- NBG has integrated environmental, climate, social, and governance risks into the credit assessments of corporate clients, at both the obligor and transaction levels. The bank has developed processes and tools for corporate underwriters and established direct and ongoing dialogues with clients, who are expected to provide data, information, documentation, and continual updates on their ESG practices.
- For its retail customers, including consumers and small businesses, NBG plans to address the growing demand for green financing through a variety of new green solutions, both organic and through partnerships or subsidies, aimed at financing green transportation, home-related services, and energy-efficient home retrofits, in addition to its current green offerings.
- Notably, the bank recently partnered with Public Power Corporation, Greece’s leading energy provider, to offer financing solutions for photovoltaic system installations for retail customers. Additionally, NBG has teamed up with the European Investment Fund (EIF) to launch a subsidized consumer loan for energy upgrades, featuring preferential interest rates for retail customers.
II. Fostering Responsible Customer Relationships
NBG prioritizes fostering what it refers to as “responsible relationships” with its customers:
- Customer Financial Protection – NBG emphasizes financial protection for its customers by closely monitoring newly launched products and services. Each offering must be approved by a dedicated Product Committee, in accordance with the bank’s regulations regarding the introduction, modification, and withdrawal of products and services.
- NBG Group Remuneration Policy – This policy includes specific provisions that prevent compensation for sales personnel from being solely based on financial performance (P&L). This ensures a balance with customer interests, helping to minimize mis-selling and promoting compliance with best-selling practices and consumer protection guidelines.
- Strategic Communication Committee – This committee is responsible for approving initiatives that enhance the bank’s corporate image as well as its products and services. It also evaluates proposals for the fair and effective development of the bank’s website and other channels as part of responsible marketing efforts.
- Complaints Management – To efficiently handle customer complaints, NBG has implemented a Customer Complaints Management Policy, which outlines the principles for addressing such issues. Additionally, the Client Conduct Sector is dedicated to promptly responding to grievances submitted by customers or other entities.
- Whistleblowing Policy – NBG’s Whistleblowing Policy establishes appropriate communication channels, allowing for the submission of reports from both internal sources and third parties.
- Protection of Personal Data – Through the NBG Group Data Protection Policy, NBG has strengthened its framework for data security, protection, and governance in compliance with GDPR. This policy establishes a consistent set of principles and rules at the Group level while adhering to the relevant national laws in each country.
- Fraud Case Management Committee – This committee is tasked with assessing and making decisions regarding the recovery of customer accounts in the event of fraud associated with internet and mobile banking transactions or card use.
- Training on Customer Centricity – NBG implements extensive skill-building initiatives. Within its Branch Network, the bank prioritizes customer centricity through systematic training aimed at empowering its frontline staff to deliver exceptional customer service and experiences. Additionally, mandatory e-learning programs on ethics, anti-fraud measures, AML/CFT, whistleblowing, risk management, and internal controls are designed to foster a culture of responsibility among all NBG employees.
III. Cultivating Entrepreneurship and Innovation
Digitalization and Digital Literacy – NBG provides a comprehensive array of products and services designed for the digital customer journey, encompassing digital onboarding, digital value-added services, tools to enhance customer engagement, and tailored digital products that cater to individual customer needs. The bank recently launched an appointment booking system through Internet Banking, enabling customers to schedule meetings with bank representatives via Video Banking, phone, or in-branch visits. Additionally, NBG introduced the NBG Business Mobile Banking application, specifically crafted to meet the needs of business and corporate customers, facilitating seamless financial monitoring and simplifying transactions (such as foreign exchange transactions, card management features, and instant notifications). Furthermore, the bank has enabled end-to-end digital onboarding for new self-employed customers through NBG Mobile Banking.
NBG’s digital engagement metrics show a positive trend: the utilization of Internet and Mobile Banking continued to rise in 2023. The number of registered users for NBG’s digital channels exceeded 3.9 million (+7.4% year-over-year), with active users reaching 2.9 million (+6.8% year-over-year), while transactions via digital channels saw a 9.6% increase year-over-year. It’s noteworthy that, in previous self-assessment reports, NBG had set a target to achieve 3 million digital active users by the end of 2024, a goal that has largely been met by the conclusion of 2023.
Looking ahead, NBG aims to sustain its leadership in internet and mobile banking by continually enhancing its digital products and services. It will focus on engaging active users, while also expanding tailored functionalities for customer segments with strong growth potential, such as the youth demographic aged 18 to 30.
Entrepreneurship – NBG Business Seeds – NBG Business Seeds is a comprehensive programme designed to promote innovation and export-oriented entrepreneurship. It encourages new ideas and projects through an annual Innovation & Technology competition, offering education and mentorship to participating teams, as well as providing infrastructure, networking opportunities, and funding to start-ups. All competition participants receive guidance and support from bank executives as well as selected partner executives affiliated with the programme. Additionally, participating teams have the chance to present their ideas, connect with other participants, and learn more about the innovation support initiatives offered by NBG’s partners. Since its inception 13 years ago and through 2023, NBG Business Seeds has authorized investments in the share capital of eleven companies totalling €2.5 million and has extended loans to seven companies amounting to €3.1 million. Furthermore, nearly €0.6 million has been awarded to 130 winning teams and companies through the Innovation & Technology Competition.
UN Principles for Responsible Banking: Accelerating a positive global transition for people and the planet
With over 300 signatory banks representing almost half of the global banking industry, the Principles for Responsible Banking are the world’s foremost sustainable banking framework. Through these Principles, the banking community takes action to align core strategies, decision-making, lending and investment with the UN Sustainable Development Goals and international agreements such as the Paris Climate Agreement.
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References:
This case study is based on published information by NBG, located at the link below. For the sake of readability, we did not use brackets or ellipses. However, we made sure that the extra or missing words did not change the report’s meaning. If you would like to quote these written sources from the original please revert to the following link:
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