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

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.

Stakeholder Dialogue

In its operations, Piraeus Group has established effective channels to foster constructive communication with all stakeholders, adjusting the frequency of interactions based on the nature of each relationship. This systematic engagement with stakeholders allows the Group to detect changes in the environment and better manage their expectations.

The PFH Group has actively participated in the development and endorsement of the global Principles for Responsible Banking, treating every interaction with stakeholders as significant. Through ongoing dialogue, the Group has recognized, in both 2022 and 2023, several material topics for its stakeholders, including data protection, the implementation of new technologies in customer service, equitable access to banking services, responsible banking practices, environmental sustainability (specifically through financing energy transitions for businesses and households), cultural initiatives (via the PIOP and promoting the development potential of the nation’s cultural assets as well as supporting Greece’s creative economy), human rights advocacy, addressing unconscious biases and stereotypes in the workplace as fundamental elements of sustainable development, support for the younger generation, gender equality, and the creation of societal value.

Stakeholder Engagement for Materiality Analysis

Piraeus identifies its primary stakeholders, including customers, employees, suppliers, investors/shareholders, investment analysts, the media, regulatory and supervisory authorities, the investor community, and societal, environmental, and cultural organizations, as well as NGOs. The Group maintains ongoing dialogue with these stakeholders, striving to remain attuned to their needs and expectations while highlighting key sustainable development topics. These topics inform the design and implementation of mechanisms aimed at continually enhancing its business practices.

Double Materiality

Piraeus engages in regular two-way communication with each stakeholder group and adheres to the reporting principles of Materiality, Stakeholder Inclusiveness, Sustainability Context, and Completeness, following the GRI Standards to prioritize its material topics. To determine material sustainability topics, Piraeus conducts a Materiality Survey and hosts focus group discussions.

The Double Materiality Survey employs a structured questionnaire to assess stakeholders’ reasonable expectations and interests, which in turn affect economic, social, and environmental outcomes. These topics emerge from ongoing communications with stakeholders and are influenced by current events, market conditions, existing CSR practices and surveys, and the corporate responsibility indices in which Piraeus participates. Material topics may evolve over time as new knowledge is gained, and Piraeus evaluates their materiality annually while preparing its Sustainability & Business Report.

In 2022, Piraeus adopted the GRI Standards 2021 and, for the first time, implemented the Double Materiality approach in its Materiality Survey conducted during Q2 2023, in line with the current European framework for non-financial information disclosure. Double Materiality incorporates both impact materiality and financial materiality, defining and evaluating sustainability topics that are essential for the economy, society, and the environment, as well as their implications for the Group’s business value.

Relationship with Suppliers

In its commitment to aligning with ESG principles, the Bank’s relevant units are collaborating to gradually integrate ESG criteria into procurement processes. Where technically feasible, specific environmental criteria, such as certifications, are being considered. Additionally, social criteria are already incorporated into the supplier selection process. For procurement tenders, prospective suppliers are required to provide gender-related information about their businesses, including ownership structure, governance, and the proportion of women in managerial roles, as well as the gender composition of their workforce.

How did Piraeus Group work with its clients and customers to encourage sustainable practices and enable sustainable economic activities?

In its 2023 PRB Reporting and Self-Assessment Template Piraeus Group reports that it works with its clients and customers to encourage sustainable practices and enable sustainable economic activities as follows:

To advance its sustainable finance initiatives and achieve emission reduction goals, Piraeus Group has established:

• A Sustainable Finance Framework (SFF) that provides a clear and comprehensive methodology for identifying sustainable financing. This framework facilitates the monitoring of the Bank’s performance in relation to its sustainability-focused strategic goals. Within this context, three primary categories of sustainable financing are defined:
  • Sustainable financing based on regulatory standards (e.g., RRF Green Transition Pillar and Official Sector Programs adhering to EU Taxonomy alignment criteria).
  • Transition finance as per regulatory definitions.
  • Other forms of sustainable financing based on internal definitions set by the Bank (such as official sector programs that do not align with EU Taxonomy, financings contributing positively to the Sustainable Development Goals, or funding directed towards pure ESG entities).
• An updated Green Bond Framework that incorporates EU Taxonomy-aligned criteria, enabling the Group to issue green bonds aimed at financing the transition to a low-carbon economy in Greece. This framework seeks to include, where feasible and on a best-effort basis, eligibility criteria derived from the Regulation (EU) on Green Bonds, as well as optional disclosures for bonds marketed as environmentally sustainable and for sustainability-linked bonds.

A Sustainability Linked Loans Framework for loan products in which the economic terms may vary depending on whether the borrower achieves specific predetermined sustainability performance objectives.

Supporting Clients Through Their Energy Transition

Piraeus Group has initiated its Energy Transition Project, a concrete commercial programme/action plan designed to position the Bank at the forefront of its clients’ transitions toward a more sustainable Greek economy. Piraeus will utilize a structured approach and leverage its extensive understanding of the unique needs of various sectors, with a particular emphasis on power generation, real estate/buildings, and agriculture. The aim is to promote a customized approach to support small businesses and individuals in their transitions.

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.

FBRH Principles for Responsible Banking (PRB) Assurance:

First class PRB assurance services: The result of solid, hands-on ESG/ Sustainability experience

• • • FBRH is a GRI Certified Training Partner (Global), ISEP Training Centre and a member of CPD.
    • FBRH builds trust. Over 200 reviews from top professionals from around the world demonstrate our ability to build strong, trusting business relationships.
    • FBRH possesses a unique skill set that combines ESG/sustainability certified training, experience in advisory services and report preparation, and ESG/sustainability report assurance.

The combination of all the above empowers FBRH to provide first class Principles for Responsible Banking (PRB) assurance services.

References:

This case study is based on published information by Piraeus Group, 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:

https://www.piraeusbank.gr/en/idiwtes/unep-fi

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