Environmental Statement 2016

Transcription

1 Environment Unit Environmental Statement 2016 Verified environmental management

2 ENVIRONMENTAL STATEMENT PIRAEUS BANK 2016 Responsible Editor Responsible Approver Prokopis Gavriil Dimitrios Dimopoulos Piraeus Bank Group Environmental Management Officer Director of Environment Unit Date of Completion: Date of Approval:

3 1 Introduction 4 2 Presentation of Piraeus Bank: Activities, Products, Services Activities of Piraeus Bank Group Organisational Structure of Piraeus Bank related to the Environment Facilities of Piraeus Bank 10 3 Environmental Policy of Piraeus Bank Environmental Management Principles Environmental Policy Climate Change Strategy Sustainability Statement 14 4 Milestones in the Green Course of the Bank 15 European Project GREENbanking4Life 15 Environmental Footprint Database 15 European Project climabiz 15 Environmental Legislation and Case Law Database 15 European Project LIFE-Stymfalia 15 Environmental Assessment of Electronic Banking Applications 17 5 Climate Exposure Management Climate Risk Management Model Preliminary Assessment of the Climate Exposure of Piraeus Bank s Business Borrowers Impact of Climate Change on Agriculture Annual Calculation of the Climate Exposure of Piraeus Bank s Business Borrowers Environmental Risk/Climate Exposure Future Actions 21 6 Piraeus Bank s Environmental Management System 22 7 Environmental Aspects and Impacts Significance Assessment Methodology for Environmental Aspects and Impacts Significance Assessment Results of Environmental Aspects and Impacts 25 8 Identification and Assessment of Risks and Opportunities 29 9 Applicable Legal Requirements Environmental Objectives and Targets Environmental Programmes Analysis of Environmental Performance General Information Management of Raw Materials, Natural & Energy Resources 39 Energy 39 Electricity 39 Heating oil 44 Employee travel 44 Water 46 Consumables Environmental Impact Assessment 48 2

4 Emission of greenhouse gases and gaseous pollutants 48 Liquid waste 51 Solid waste 51 Hazardous waste 52 Noise 53 Biodiversity Green Banking Green Products and Services Financial and Technical Evaluation of Green Projects Green Portfolio Results Communication Education 59 Environmental education of employees 59 EMAS Campaign 59 Eco-Driving 59 Environmental News 60 Annual Environmental Management Competition 60 Volunteerism and Environmental Education of Children 60 External Communication 60 Special Websites Social Networks Participations Distinctions 62 Participation in International Initiatives & Corporate Sustainability Assessment Indices 62 Distinctions Aggregate Indicators Appendix: Organisational Units of Piraeus Bank List of Images and Tables 82 Images 82 Tables Abbreviations Environmental Verifier s Declaration 85 3

5 1 Introduction The present report constitutes the 7 th Environmental Statement of Piraeus Bank according to the requirements of the European Eco Management and Audit Scheme (EMAS) Regulation. The report provides all interested parties with useful information regarding the application of the Environmental Management System (EMS) in the Bank, as well as regarding the environmental performance of the Bank and its compliance with environmental legislation. The EMS organises, in the most systematic manner, the monitoring, the management, and ultimately the reduction of the environmental impacts associated with the activities of the Bank. It is applied in Administration buildings and branches in Greece (the EMS does not cover subsidiary companies of the Bank or facilities outside Greece). In 2011, Piraeus Bank was listed in the EMAS Register, pursuant to Regulation 1221/2009 of the European Parliament and the European Council regarding the EMAS. That same year, the EMS was certified under the standard CYS EN ISO 14001:2004. The listing in the EMAS Register and the certification constitute the corollary of the systematic preparation of the organisation, which began with the adoption of the Environmental Management Policy by the Board of Directors in They also reflect the commitment of the Bank for continuous improvement of its environmental performance, prevention of pollution, and compliance with applicable legal and other requirements related to the environment. The verification and validation of the compliance of the Bank with the requirements of the EMAS Regulation were conducted by the Cyprus Certification Company. The company, which is a member of IQNet (the International Quality Certification Network), also certified the Bank under the international environmental management standard ISO 14001:2015. Listing in the EMAS Register was completed by Decision 35956/ of the Ministry of Environment, Energy & Climate Change (now Ministry of Environment & Energy). In 2016, emphasis was given on promoting environmental awareness and education among employees, implementing energy and water saving interventions in buildings under renovation, improving energy monitoring in the buildings, adopting energy efficient technologies, intensifying recycling within the Network, installing bicycle stands in branches and Administration Buildings, as well as automating data management related to the numerous recycling collections taking place annually. In 2017, the EMS of Piraeus Bank was updated with regard to its overall documentation in order to comply with the requirements of the new Standard ISO 14001:2015. By adopting the new Standard, a series of innovative elements are introduced in the EMS that, among other things, increase the involvement of top management, integrate the concept of risk and opportunity management in relation to environmental aspects in the Bank s strategy, and map compliance requirements and the commitment of the Bank to sustainability and social responsibility. At the same time, on occasion of the update, EMS procedures were simplified. Experience drawn from the 7-year implementation of the EMS in the Bank has proven that it constitutes and invaluable tool that has helped reduce the environmental impact resulting from the activities of the Bank, achieve timely compliance with the requirements specified in environmental legislation, spread environmental awareness among employees, and promote Green Banking. Nonetheless, some of the practices adopted within the framework of the EMS are now considered bureaucratic, since they engage significant economic and human resources, without contributing to any substantial improvement in the implementation of the EMS. By updating the EMS, the goal is to achieve a more effective implementation of the system, based on both environmental and economic criteria. 4

6 The economic activity sector in which the current Environmental Management System is applied is the Financial Services Activities, except Insurance Activities and Insurance Funds Currency Intermediation Organisations sector (scope: provision of financial services). The Environmental Statement includes a) a brief description of the Organisation and its sectors of activity, b) a summary of its main activities, products, and services, c) the Environmental Policy implemented currently, d) a brief description of the EMS that is being implemented currently, e) a presentation of all significant impacts on the environment resulting from the operation of the facilities and from the activities of the Bank, f) the applicable legal requirements related to the environment, g) the environmental objectives and targets that have been set, h) the environmental programmes that have been adopted and are being implemented currently, i) an overview of the environmental performance of the Bank with the use of suitable indicators since the previous Environmental Statement, and j) an identification and assessment of risks and opportunities. The verification of the present updated Environmental Statement was conducted by the Cyprus Certification Company, environmental verifier registration number EMAS ELV 0009 (Accreditation Certificate Number: 549), on 28 August

7 2 Presentation of Piraeus Bank: Activities, Products, Services 2.1 Activities of Piraeus Bank Group Founded in 1916, Piraeus Bank operated as a private credit institution for several decades, while it went through a state ownership phase for the period , until it was privatised in December Since then, it has rapidly grown in size and activities, representing today the leading Bank in Greece with 30% market share in terms of loans and 27% in terms of deposits. Headquartered in Athens, with approximately 17.6 thousand employees in 8 countries, Piraeus Bank Group provides a wide range of financial products and services to approximately 5.7 mn customers. The total assets of the Group amount to 76.6 bn, net loans amount to 47.4 bn, and customer deposits amount to 41 bn (as of 31 March 2017). Table 1 - Piraeus Bank Group in figures Piraeus Bank Group March 2017 Assets 76.6 bn Net loans 47.4 bn Deposits 41 bn CET-1 ratio % Branches 911 Employees 17.6 th Customers 5.7 mn Along with its organic growth during the 90s and 00s, Piraeus Bank has made a series of strategic acquisitions and mergers aiming to establish a strong presence in the domestic market. Thus, in 1998 the Bank absorbed the activities of Chase Manhattan in Greece and also proceeded to the acquisition of Macedonia Thrace Bank and of the small specialised Credit Lyonnais Hellas, while in early 1999 it acquired Xiosbank and absorbed the activities of National Westminster Bank PLC in Greece. In June 2000, the Bank unified its banking activities in Greece, through the absorption of the commercial Macedonia-Thrace Bank and Xiosbank. In 2002, Piraeus Bank acquired ETBAbank (Hellenic Industrial Development Bank), which was fully absorbed in December Piraeus Bank Group, in the context of implementing its strategy for expansion in the markets of Southeastern Europe and the Eastern Mediterranean, first reached an agreement on the acquisition of Pater Credit Bank in Romania (renamed into Piraeus Bank Romania SA). In 2005, Piraeus Bank Group proceeded to the acquisition of the Bulgarian Eurobank (renamed into Piraeus Bank Bulgaria), strengthening its 12 year presence in the country, while in March 2006 the merger of the branches of Piraeus Bank in Bulgaria with Eurobank was completed. In addition, in 2005 Piraeus Bank Group entered the Serbian market by acquiring Atlas Bank (renamed Piraeus Bank Beograd). Finally, in 2007 Piraeus Bank Group expanded its international presence in Ukraine by acquiring the International Commerce Bank (renamed into Piraeus Bank ICB), and in Cyprus, by establishing Piraeus Bank Cyprus through the acquisition of the Arab Bank Cyprus Network. In 2012, Piraeus Bank acquired the healthy part of the Agricultural Bank of Greece (selected assets and liabilities) and Geniki Bank. In March 2013, Piraeus Bank acquired the Greek banking activities of the Bank of Cyprus, Cyprus Popular Bank, and Hellenic Bank. In June 2013, Piraeus Bank acquired Millennium Bank Greece. In April 2015, Piraeus Bank acquired the healthy assets of Panellinia Bank. These transactions constitute important steps towards the restructuring of the Greek banking system, a process in which Piraeus Bank has participated from the very beginning as a core pillar. 1 Basel III 6

8 Image 1 - Historical Course of Piraeus Bank Group The Bank has successfully completed the integration of all the aforementioned banking acquisitions in its systems, offering a unique banking experience to all its customers. In early December 2015, Piraeus Bank announced the full coverage of its share capital increase by an amount totalling to 2.6 bn. Furthermore, the Bank issued Contingent Convertible Bonds under the provisions of the Law in favour of the HFSF and the CM Act 36/ for an amount of 2.0 bn. The total equity of the Group amounted to 9.8 bn as of , while the Common Equity Tier 1 ratio reached 16.8% during the same period (pro forma for the divestment of operations of Piraeus Bank Cyprus and ATE Insurance). The fully loaded Basel III Common Equity Tier 1 ratio reached 16.3%. Accordingly, current capital ratios render Piraeus Bank as one of the strongest capitalised banks in Europe. Piraeus Bank leads a Group of companies that cover all the financial activities in the Greek market (universal bank). Piraeus Bank possesses particular expertise in the fields of medium sized businesses, the agricultural sector after the acquisition of ATEbank, in consumer and mortgage credit, Green Banking, capital markets and investment banking, as well as leasing and factoring. The presence of Piraeus Bank Group abroad focuses on Southeastern Europe and the Eastern Mediterranean, having established a network of 262 branches. In particular, the Group operates in Romania with 101 branches of Piraeus Bank Romania, in Bulgaria with 76 branches of Piraeus Bank Bulgaria, in Albania through Tirana Bank with 39 branches, in Serbia with 26 branches of Piraeus Bank Beograd, in Ukraine with 18 branches of Piraeus Bank ICB, and in London and Frankfurt with one branch in each city. 7

9 Image 2 - Geographical presence of Piraeus Bank Group Piraeus Bank Group possesses a well trained and experienced workforce. The vision of the Group is the continuous development of a humane and responsible organisation, where each employee with competencies and personal inspiration works with dedication, capitalising on diversity and creating value in every action. Objective criteria and methodology are incorporated in the selection and utilisation of human resources, with particular emphasis on equal opportunities and respect for people. The Group invests in the continuous education and development of its 17,641 employees through innovative methods. The Group has created a work environment where innovation, the exchange of ideas, and creativity are supported and team spirit is promoted. Through specific assessment systems, the Group ensures that the performance of its people is aligned with the objectives of the Group; it has also created the necessary framework for recognition and reward both on an individual and a team level. Open communication with and necessary support to the workforce are enhanced in many different areas and in various aspects of life, ensuring an organisation that is both humane and dynamic. Piraeus Bank Group, combining business development with social responsibility, systematically promotes its relations with its social partners through specific actions, while special emphasis is placed on the protection of the natural and cultural environment. Piraeus Bank has established a substantial presence in the sector of Green Banking, with targeted products to accommodate both individual and business needs. At the same time, through the Piraeus Bank Group Cultural Foundation (PIOP), the Bank operates a series of thematic museums in Greece, which have the potential to convey, in an effective and efficient manner, high-standard cultural activities to the Greek rural regions. As one of the systemic banks in Greece, Piraeus Bank takes initiative to support sound business plans and transform the Greek economy into a contemporary model of sustainable development. Image 3 presents an overview of the organisational chart of the Bank. 8

10 Image 3 - Organisational Chart of Piraeus Bank

11 2.2 Organisational Structure of Piraeus Bank related to the Environment In 2004, Piraeus Bank founded the Environmental Affairs Office, which evolved into the Environmental Department in 2007, with the aim of developing and implementing environmental strategies and programmes. In 2009, to optimally coordinate the environmental contribution of the Bank and as a natural development of the Environmental Department, the Environment Unit and the Green Entrepreneurship Sector (Green Banking since 2015) were established. In 2016, Green Banking unified its activities with Development Programmes (Green Banking & Development Programmes Division). The mission of the Environment Unit is to implement, within the framework of Corporate Responsibility, the Environmental Policy, with the aim to promote sustainability, as well as participate in activities within the scope of the Group s social policy. In addition, some of the principal fields of activity of the Unit are: the reduction of the environmental footprint resulting from the operation of the Bank and its subsidiaries, the support of internal and external communication in matters related to the environment and sustainability, the promotion of the transparency of the Group, research on and the promotion of innovative solutions to address environmental issues, and the provision of expertise to the Organisational Units and the subsidiaries of the Bank. The Environment Unit is staffed by employees experienced in Environmental Management and Energy Management, as well as in legal and financial dimensions related to the environment. The Unit cooperates with all competent administration units, and with the Network of branches, both in Greece and abroad, to design and implement specific environmental management programmes. The dual mission of Green Banking & Development Programmes is, on the one hand, to support the Bank, its subsidiaries, and their customers in matters of green entrepreneurship and optimal exploitation of opportunities arising from the existing national and European institutional framework and emerging green technologies, and, on the other hand, to manage operations, to develop products and services related to any form of development programmes, bond programmes, interest and cofinancing subsidies, as well as relevant business activities, and to support other Units of the Group and the Network. Green Banking & Development Programmes focuses on the development and promotion of targeted products and services that finance technological projects and investments by individual and business customers, as well as business opportunities directed to maximum environmental and social benefits. In addition, Green Banking & Development Programmes, in collaboration with the Group Human Resources Management & Organisational Learning, supports and implements educational initiatives for human resources of the Bank regarding environmental issues, green technologies and investment assessment in relevant fields. Green Banking & Development Programmes is staffed by competent employees with expertise in green entrepreneurship as well as other sectors. Combined with significant experience in banking in general, the technical and financial analysis of existing and new, eco-friendly investments, the development of green products, the promotion of green products via the Network of branches and other available channels, and the monitoring of the loan portfolio of the Bank and the Group are ensured (see Section 12 for more details). 2.3 Facilities of Piraeus Bank The activities of Piraeus Bank in Greece are deployed in 698 branches and in 56 Administration Buildings (data as of 22/06/2017). All Organisational Units of the Bank in Greece are presented in the Appendix. From an organisational perspective, the branches of the Bank appertain to the 18 Regional Directorates of the Bank s Network. 10

12 In 2016, the facilities included in the Environmental Management System covered 468,451 m 2 in total, while the total number of employees was 13,989. The Bank uses a fleet of company cars, available to its executives to use for transport. The Bank leases the vehicles through contracts, so the fleet is contemporary, with the majority of the cars having circulated within the past five years. As of December 2016, 69% of the cars had circulated less than five years ago, while among all cars of the fleet, 10% were hybrid, 61% were diesel fuelled and 29% were conventional (petrol-fuelled). 11

13 3 Environmental Policy of Piraeus Bank Within its corporate responsibility framework, Piraeus Bank has developed an integrated environmental approach. By decision of the Board of Directors and following the Environmental Management Policy instituted in 2004, in 2010 the Bank proceeded with the adoption of an updated Environmental Policy, suited to current environmental and social circumstances, that reflects the new business priorities of the Group in a more comprehensive manner. In addition, the environmental dimension is included with specific references among the aims of the updated (2008) Articles of Association of the Bank. For more information, visit: Corporate Responsibility > Environment > Environmental Policy Principles 3.1 Environmental Management Principles The Environmental Management principles, as approved by the Board of Directors of the Bank in January 2004, are the following: Piraeus Bank acknowledges that energy sources are not inexhaustible and should thus be utilised responsibly. Therefore, the contribution of the Bank to the protection of the environment has two dimensions: internal and external. The internal dimension is related to the efforts of the Bank to moderate the environmental impact resulting from its activities. The external dimension includes the efforts to strengthen the environmental perception of its customers, as well as to promote actions outside Piraeus Bank related to generally safeguarding the environment for future generations. The implementation of an Environmental Management System in compliance with the European EMAS Regulation was launched with a view to achieving this goal. The Administration Department of Piraeus Bank is committed to the continuous implementation of the Environmental Management System, as well as to its continuous improvement, its compliance with existing international and national regulations and codes of conduct, pertaining to the operation of the Bank, and the adoption of precautionary and corrective measures to prevent the degradation of the internal and external environment. The continuous improvement of the EMS will be achieved through the review and revision of the system itself and the set of management aims it includes. All Piraeus Bank staff shall follow relevant procedures and work instructions, as well as their revisions emerging from the implementation of the Environmental Management System. Within this framework, the general environmental management aims of the Bank are the following: continuous research to undertake precautionary or corrective initiatives for a more productive utilisation of the resources needed for the effective operation of the Bank, continuous awareness on environmental issues among employees, continuous effort to reduce the potential impact on the environment through the improvement of the banking products and services provided, publication of the environmental impact resulting from the operation of the Bank, and of the measures adopted to reduce that impact, maintaining and strengthening the prestige of the organisation regarding the protection of the environment. These general goals are accomplished through the application of methods to control, monitor and measure all processes that appertain to the procedures of the design and production of products/services, supplies and collaborations, technical support, etc., as well as with the determination of specific measurable management goals. In the context of implementing the environmental policy and achieving existing or revised environmental goals and objectives, 12

14 the Bank provides all necessary means and organises environmental management programmes, appropriately communicated to all interested parties. 3.2 Environmental Policy Acknowledging that the principles of sustainable development constitute a fundamental prerequisite for sound entrepreneurship, Piraeus Bank incorporates environmental criteria in its business procedures and develops strategies aiming for the continuous improvement of its environmental performance, the reduction of its environmental footprint, the promotion of green entrepreneurship, the management of environmental climate risks, as well as the conservation of biodiversity, in order to substantially contribute to the resolution of major global social and environmental issues. Based on its commitment to continuously reduce its operational impact, Piraeus Bank monitors and measures its environmental performance, sets goals for improvement, implements and evaluates environmental management initiatives, such as energy and water saving programmes, waste management and recycling programmes, reduction of business travel, and green supply promotion programmes. Furthermore, the Bank further contributes to the protection of the environment through the wide range of e banking services it provides. Piraeus Bank is also committed to continuously support green entrepreneurship, by financing via specialised green products offered on comparatively more favourable terms businesses and private individuals who wish to proceed to eco friendly investments, for instance in the field of renewable energy, energy saving, organic farming, the conservation and promotion of biodiversity, green chemistry, green transportation, waste and water management, environmental restoration, ecotourism and agritourism, thus substantially contributing to the responsible utilisation of natural resources and promoting the retention of existing employment positions or even the creation of new positions. Piraeus Bank incorporates processes to manage environmental and climate risks that may result from the wide range of its business activities (financing investments) and provides banking services aiming at promptly tackling environmental challenges and adapting to climate change. Stronger emphasis is placed on addressing climate change, by promoting measures to reduce the carbon dioxide (CO2) footprint and to identify and leverage opportunities that may arise from climate change. To optimally implement its environmental policy and considering that individual and corporate social responsibility constitute the foundation of sustainable society, Piraeus Bank commits and tends to continuously educating its employees, informing its customers, shareholders and the general public about the goals and results of its environmental initiatives aiming at improving the quality of life, and promoting initiatives by other non profit agencies, organisations or institutions that generate added value with significant benefits for the environment and humans. 3.3 Climate Change Strategy Recognising the impact of climate change on the economy, society and the environment, Piraeus Bank has developed and incorporated a climate change strategy based on four thrust areas: (a) gradual reduction of the carbon footprint of Piraeus Group, (b) support of investments in renewable energy (RES) and energy saving projects, (c) assessment of risks for Greek businesses from climate change, (d) provision of solutions to address climate change and help businesses adapt to new climatic conditions. Within the framework of the climate change strategy of Piraeus Bank, the main fields of action are the following: 13

15 Reduction of the carbon footprint resulting from the operation of the Group, through improving the energy efficiency of buildings, reducing travel for business or education purposes, and acquiring low energy electrical equipment. Promotion of green banking products, offered on comparatively more favourable terms, aiming to support businesses and private individuals that wish to invest in renewable energy sectors (photovoltaic systems, wind parks, small hydroelectric power stations, solar thermal systems, geothermal energy and biomass). Promotion of green banking products, offered on comparatively more favourable terms, for energy saving investments, green transportation and waste management. These may include: Financing of green interventions/repairs for building envelopes, procurement and installation of low energy electromechanical equipment, bioclimatic buildings and energy efficient buildings, eco construction, energy saving materials and technologies, as well as companies providing energy inspection and energy related services. Financing companies that use low carbon emission means of transport. Financing waste management companies (reduction, reuse, recycling, recovery of waste) that also contribute to the reduction of greenhouse gases. Risk management of regulatory and physical risks resulting from climate change. Development of specialised electronic tools to evaluate the risks resulting from climate change and the costs involved to adapt to climate change (e.g. redefining business strategies, upgrading equipment, new investments). Also, assessment of financial opportunities deriving from climate change and regular communication of such information to customers and stakeholders. Finally, support to private individuals and businesses, and reinforcement of the market to better adapt to climate change. 3.4 Sustainability Statement On 7 June 2010, the Group Executive Committee published the Sustainability Statement, according to which: We will support and finance companies, institutions, organisations and projects which offer added value and which benefit people and the environment by supporting deposit accounts holders and investors wishing to promote individual and corporate social responsibility in a sustainable society. Our wish is to turn economic development into quality of life by focusing on human dignity without endangering future environmental and social indices. 14

16 4 Milestones in the Green Course of the Bank The Bank develops important initiatives with the aim of comprehensively recording and systematically reducing the environmental impact related to its operation and activities. In particular: European Project GREENbanking4Life A major milestone in the implementation of the Environmental Policy of the Bank was the launching of the GREENbanking4Life Project, within the framework of the EU LIFE Programme. The main goal of the three year project (October 2006 October 2009) was the reduction of the environmental impact resulting from both the internal operation and the business activity of the Bank through the creation of green products, raising awareness among employees and the general public, as well as sharing expertise with other businesses or services connected with the Bank. Environmental Footprint Database In 2007, within the framework of the GREENbanking4Life Project, Piraeus Bank completed the design and development of the Environmental Footprint Database, which allows for a detailed calculation of its operating impact and ultimately the overall environmental footprint of the Bank, stemming from the consumption of energy, water and other natural resources, as well as the use of consumables and the business travel of human resources. European Project climabiz In , Piraeus Bank implemented a new, innovative environmental project called climabiz via the funding instrument LIFE+ Environment Policy and Governance, with the aim of evaluating the climate exposure of businesses (see Section 5 for more details). Environmental Legislation and Case Law Database The specialised Environmental Legislation and Case Law Database (EL&CLD), developed and continuously enriched by the Bank, helps support the implementation of the Environmental Policy of Piraeus Bank, as well as the compliance of the Bank with applicable legal requirements and corporate responsibility commitments relating to the environment. Thus, essential legal information and documentation is provided regarding: General commitments and approaches to the environment and sustainable development according to international, EU, and national law. Legal aspects related to the EMS applied by the Bank. Actions aiming at reducing the corporate environmental impact of the Bank. European Project LIFE-Stymfalia Within the Group s corporate responsibility framework, the European co-funded project LIFE-Stymfalia (LIFE12 NAT/GR/000275) was launched in October 2013 and is successfully implemented until today. The aim of the project is the long-term protection and management of Lake Stymphalia. The project team- an innovative partnership of Piraeus Bank with the Piraeus Bank Group Cultural Foundation (PIOP), the Municipality of Sikyonion, OIKOM Environmental Studies Ltd, the Society for the Protection of Prespa, and the Centre for Renewable Energy Sources and Saving (CRES), collaborate with the aim of restoring Stymphalia wetland and creating the conditions for the refinancing of the Lake s management in the future. Lake Stymphalia is one of the few mountainous lakes in Greece and is included in the European Network of Protected Areas Natura 2000 (code GR ). The aim of LIFE Stymfalia project is the restoration of the Lake and its long-term protection and management, through a systematic refinancing process, which will be ensured by the utilisation of the area s biomass and other renewable 15

17 natural resources, combined with low-impact commercial activities. In this way, LIFE-Stymfalia will ensure sustainable financing for the conservation of biodiversity in Lake Stymphalia. Being into the final year of the project, remarkable results have been produced. A second research reed bed cutting was carried out within an area of 70,000 m 2 to clean the channels of the protected wetland, using a contemporary amphibian reed cutter machine and a mower binder that were acquired within the context of the project. The reed bed cutting was conducted according to the completed Management Plan and was supervised by scientific experts and the Director of the Forestry Department of Korinthos, whereas residues were collected and deposited at a designated field (reed collection area), so as to be transferred to specialised units for compost and pellet. At the same time, all necessary procedures have been followed regarding the licensing of the reed bed cutting plan for the current and the following year, as well as the licensing of the small scale technical works for the regulation of the Lake s water level. Within this framework, a hydrological gauge was placed at the deepest point of the Lake for the monitoring of water level fluctuations. In addition, for the first time in Greece, 26 bat boxes were placed in selected trees around the Lake. It should be noted that bats are a species of interest in the area, while all bat species in Greece are strictly protected under national and international legislation. The Local Management Unit (LMU) was further staffed with one more member that comes from the region, and continued the surveillance of the protected area. The LMU is located at the Environment Museum of Stymphalia and operates as the interface between the project and the local society, especially the farmers. Finally, the LMU participates in the coordination and implementation of all activities taking place in the area. One of the major actions of the project was the creation of Stymphalia Farmers Network, consisting of approximately 160 local farmers who have signed the Agreement for the Protection of Lake Stymphalia. The aim of the Network is to inform farmers about integrated agricultural practices and water management, to enhance local synergies in order to promote the farmers products, as well as to engage them to the sustainable management of Stymphalia wetland. In this context, a series of 8 seminars was carried out by executives of the Bank specialised in organic and integrated farming, while a logo was designed so as to give the products and services of the Network a special identity, to enhance brand-recognition and to promote the value of Stymphalia products and services. Moreover, the thematic exhibition The sixth labour, an alternative artistic and experiential approach to the labour of Hercules hosted at the Environment Museum of Stymphalia, was enhanced with the latest exhibits after the second reed bed cutting. With the installation of the last section, visitors are encouraged to enjoy the cultural landscape of the protected area outside the Museum. The construction of the trail Man and Nature in the Paths of Time, which is an open, outdoor system of environmental interpretation, is expected to enhance the area s tourist flow. The trail was constructed by the Municipality of Sikyonion and is marked by interpretation signposts/panels and direction signs, while a birdwatching hide gives visitors the opportunity to enjoy the Lake s soundscape and to learn about the protected bird species of the area. The environmental awareness agenda also includes an educational kit which promotes the concept and importance of Lake Stymphalia management to Primary and Secondary Education pupils, through creative activities and a board role-playing game. The Environment Museum of Stymphalia hosted the second workshop entitled Business opportunities in Natura 2000 sites and the new programme period , while recently a two-day International Conference was held in Athens and Stymphalia entitled Business and Biodiversity in Natura 2000 sites: The way forward. The speakers were representatives from the Biodiversity Unit of DG Environment (European Commission), the EU Business and Biodiversity Platform, and the European Investment Bank (EIB). For the first time in Greece, delegates from the private and public sector discussed potential business opportunities arising in Natura 2000 sites, which could provide alternative financing for projects aiming at the protection of nature and biodiversity. The concluding 16

18 remarks of the conference were included in the LIFE-Stymfalia Statement, encouraging all stakeholders to move beyond the perception that Natura 2000 sites are an obstacle to sustainable development. The progress of the project is monitored through regular reports submitted to the European Commission. In May 2016, the External Monitoring Team of the European Commission proceeded to the third project visit so as to review the progress of the project s actions. Subsequently, a third Progress Report was submitted, presenting detailed data on the progress of the project during the reference period, resulting in a favourable assessment on the accomplishment of the project s goals and objectives. The fourth visit of the External Monitoring Team followed in May 2017, including delegates of the European Commission responsible for the technical and economic assessment of the project, where a project extension was deemed necessary due to delays in the licensing procedure for the reed bed management, in order to achieve the project s targets and particularly the improvement of the status of the Lake. Upcoming actions of the project include the summer reed bed cutting for the year 2017 and the winter reed bed cutting for the year 2018, in order to launch the implementation of the Management Plan and the compost and pellet production from the reed bed cuttings and agricultural residues. During that time, the completion of the proposed technical works and interventions for the regulation of the Lake s water level will also be achieved. In addition, the business plan for the re-financing of the Lake s management will be finalised, based on the completed Feasibility Study. Last but not least, the members of the Farmers Network will start using the logo on their products/services, while the educational kit is to be distributed to local schools and the wider region. The innovation of the project, by linking business and biodiversity and promoting synergies between the private and the public sector, proves that Piraeus Bank is a pioneer in this field, while it also aligns with the goals and commitments of the Bank specified in its Environmental Policy regarding the protection of biodiversity. The Bank has already received two distinctions at a national level for LIFE- Stymfalia project; one in the European Business Awards for the Environment and the other in the Bravo Sustainability Awards. Environmental Assessment of Electronic Banking Applications The Bank s Environmental Programmes assessment is conducted on an annual basis, complemented biannually by an economic evaluation, in order to record resulting costs and benefits in financial terms. In 2016, the massive increase in online transactions due to capital controls led the Bank to focus on the multiple benefits deriving from Electronic Banking. The number of transactions via Electronic Banking services significantly increased since the summer of Transactions skyrocketed from 83.7 mn in 2014 to 203 mn in The main benefits from Electronic Banking services are the following: Cost savings (electricity in branches and consumables). Energy/environmental and economic benefits for the customers of the Bank, thanks to reductions in transport costs and waiting times. In collaboration with FACE 3 TS, a scientific study entitled Environmental assessment of Electronic Banking applications was conducted in 2016, which evaluated the energy, environmental, and economic benefit deriving from the use of Electronic Banking services. According to the study, for 2016: Economic benefit for the Bank The total economic benefit for the Bank resulting from cost savings due to Electronic Banking amounted to 777 th. Energy benefit for the Bank 17

19 The use of Electronic Banking services by customers contributed to a reduction in electricity consumption by ~1,500 MWh. As a result, indirect CO2 emissions by the Bank were reduced by 1,100 tonnes. Economic benefits for customers The total benefits for customers were estimated between ~ 123 mn and ~ 174 mn, taking into account the avoidance of energy expenditures for transport and the value of time saved. Table 2 - Economic-Energy and Environmental Benefits based on the Electronic banking environmental assessment Economic benefits ( ) 1. Electricity savings 250, Savings in paper used 428, Savings in pages printed 97,713 Total (1-3) 776,642 Energy benefits (kwh) Electricity savings 1,486,394 Environmental benefits (reduction in indirect emissions) (t CO 2) Electricity savings 1,093 18

20 5 Climate Exposure Management 5.1 Climate Risk Management Model In 2012, Piraeus Bank, in collaboration with WWF Greece and FACETS 3, completed the European Project Financial Institutions: Preparing the Market for Adapting to Climate Change (climabiz), cofunded by the European Union through the funding instrument LIFE+ Environmental Policy and Governance. Within the framework of this project, Piraeus Bank developed inter alia the Climate Risk Management (CRM) Model, in order to evaluate the climate exposure of Greek businesses, as well as assess solutions for reducing that exposure. In particular, the Model can provide calculations for: the cost of climate risk, as well as physical and regulatory risk related to climate change per economic sector and sub sector, and company level, the costs and benefits of the measures that a company may implement in order to reduce its climate risk, the environmental footprint (gaseous pollutants, greenhouse gases, liquid waste, solid waste) at sub sector level and for the business as a whole. Within the framework of this project, two reports were published, entitled Climate change and Greek businesses: Risks and opportunities and Climate Change and Business Opportunities. The Bank continues to support the goals of climabiz project and updates the Climate Risk Management Model. In 2016, a scientific article 2 and a respective scientific study were published on the sector of Agriculture. Climabiz project received an award in the category Climate Action as one of the best LIFE projects implemented in the past 25 years, since LIFE projects were launched in the European Union. It should be noted that the scope of economic sectors assessed by the Climate Risk Management Model has expanded in order to include economic sectors that are now considered of high interest to the loan portfolio of the Bank (e.g. agriculture, certain sectors of manufacturing), for which a more in depth analysis has been conducted in terms of the climate change financial impacts. Thus, the Model now includes 324 Typical Units (i.e. standard production units, representative of the economic sub-sectors modelled within the Model), while initially it included 146 Typical Units. 5.2 Preliminary Assessment of the Climate Exposure of Piraeus Bank s Business Borrowers During the climabiz project ( ), Piraeus Bank, through the Climate Risk Management Model, examined a specific sample of businesses, part of its corporate loan portfolio, from economic sectors that may be adversely affected by climate change. The assessment of the impact was conducted taking into account both changes in climatic conditions and potential impacts on the economy, as well as fluctuations in the price of carbon dioxide emission allowances. The aforementioned initiative constitutes the first coordinated effort to provide an economic assessment of the climate exposure of businesses operating in Greece. 5.3 Impact of Climate Change on Agriculture In 2016, Piraeus Bank and FACE 3 TS conducted a study on the impact of climate change and potential adaptation strategies for the sector of Agriculture. The study entitled Assessment Study on Climate Change Impacts and Adaptation Options for the Greek Agriculture aimed to assess the impact of climate change on various important crops in Greece. Aside from the impact, many adaptation 2 Elena Georgopoulou, Sevastianos Mirasgedis, Yiannis Sarafidis, Maria Vitaliotou, Dimitris Lalas, Ioannis Theloudis, Kaliopi- Despoina Giannoulaki, Dimitris Dimopoulos, Vrassidas Zavras (2016): Climate change impacts and adaptation options for the Greek agriculture in : A monetary assessment, Climate Risk Management Journal, DOI: /j.crm

21 strategies were also examined and assessed, both in terms of expected effects on crop yields and in terms of resulting costs and benefits. Image 4 - Changes in Agricultural Income after Adaptation Strategies According to the study, estimated losses of agricultural income due to climate change affect 18 crops covering 60% of cultivated land in Greece and range on average between 153 mn and 365 mn annually, according to the most unfavourable scenario, compared to 6.7 bn in total capital produced from these crops in 2015 (EUSTAT 2016). Key remarks and conclusions from the study are the following: Necessity of climate risk assessment (due diligence) of the Agriculture sector. Adaptation strategies should be designed considering differences in the physical impacts of climate change per geographical region and type of crop. It is not possible to fully compensate for the negative impacts of climate change on some crops/ geographical regionsthrough adaptation strategies. In addition, adaptation strategies may not be appealing to farmers in economic terms. Agricultural banking products targeted to water use are of particular interest, since emerging increases in water prices favour efficient irrigation technologies. 5.4 Annual Calculation of the Climate Exposure of Piraeus Bank s Business Borrowers On an annual basis, Piraeus Bank calculates the climate exposure of business borrowers from economic sectors that may be affected by climate change in economic terms. The sample of businesses is drawn from specific sub-sectors of the Primary Sector (Agriculture), Manufacturing, Shipping, the Tertiary Sector (hotels, offices, and hospitals) and Energy Production (conventional fuel and RESs). The features of the sample used in 2016 are presented below: Table 3 - Sample of business borrowers Total number of borrowers in the sample: Borrowers total annual turnover: 11,613 45,561,046,245 The breakdown of business borrowers included in the final sample per sector of economic activity is presented below. 20

22 1,103 SERVICES 2,556 1,473 6,481 MANUFACTURING ELECTRICITY GENERATION AGRICULTURE Image 5 - Breakdown of borrowers per sector of economic activity Climate exposure calculation for business borrowers was conducted based on the average unit price of GHG emission allowances of 7/t CO2,eq [3]. The estimated climate exposure amounted to mn, corresponding to 1.3% of the total turnover of the businesses. Overall, physical exposure represents 47.5% while institutional exposure 52.5% of total climate exposure. The composition of the portfolio based on the climate exposure of financed economic sectors improved in 2016 compared to 2015, since borrowers from low, middle, and higher climate exposure sectors have been significantly reduced (see Table below). Table 4 - Loan portfolio composition based on Climate Exposure of financed economic sectors Climate Exposure - Loan Portfolio Composition Sectors of negative climate exposure (benefit) 1.2% 1.1% 2. Sectors of zero climate exposure 63.6% 73.7% 3. Sectors of low climate exposure 19.0% 12.8% 4. Sectors of medium climate exposure 7.3% 5.7% 5. Sectors of high climate exposure 8.9% 6.7% 5.5 Environmental Risk/Climate Exposure Future Actions In 2016, the Environment Unit developed a new, innovative methodology to assess existing and potential business borrowers from an environmental perspective. The results of the new methodology may be used in combination with environmental and social risk assessment criteria that consist part of the Environmental & Social Management System (ESMS) Policy, within the framework of the overall credit assessment conducted on the business borrowers of the Bank. The assessment is based on a cohesive methodological framework and includes a four-stage approach: 1. An initial assessment of environmental loads resulting from the operation of the business is implemented, according to the respective economic sector it belongs to. 2. Subsequently, the business is rated (on a 20-point scale) in relation to its environmental/climate performance, based on environmental loads produced. 3. A reassessment of the environmental performance of the business is conducted on the 20- point scale based on complementary data (e.g. size, significance of natural recipient, good practices, such as environmental and energy management systems, RESs, etc.). 4. Final ranking in the 20-point scale is estimated after assessing the environmental compliance of the business. 3 This price was deemed representative of the average trend in the unit price level of allowances in

23 6 Piraeus Bank s Environmental Management System The Environmental Management System (EMS) developed by Piraeus Bank is fully certified according to the provisions of the Regulation 1221/2009 of the European Union in relation to the European Eco- Management and Audit Scheme (EMAS) and the CYS EN ISO 14001:2015 Standard. The System provides an integrated framework to record, monitor and ultimately reduce the environmental impact resulting from the operation of the facilities and the activities of the Bank. The EMS of the Bank includes: Environmental Management Manual. It summarises all the applications of the EMS, ensuring that all the requirements of the EU regulation are met. Procedures. EMS Procedures are documents listing the sequence of actions that must be followed for a specific activity. They determine the responsibilities of those involved, the method of substantiation of a specific activity, and the method of exchange of necessary information between the parties involved, while they also make reference to Staff Instructions and environmental archives when necessary. Staff Memos. Staff Memos are documents describing in detail every task specified in a Procedure. Documentation. Documentation is a set of standardised documents or electronic files of the Bank completed by the employees during the application of the Procedures, and constitute an integral part of the Procedures. Documentation corroborates the effective operation of the EMS, while it is also used as a basis for the analysis of various processes and the adoption of corrective measures. Other Documents. This category includes standards, specifications, statutes, etc. necessary for the execution of environmental procedures, as well as internal documents of the Bank supporting the implementation of the EMS (e.g. information material for the Bank, written Instructions and internal service memos to branches and other Organisational Units of the Bank). Environmental Statement. The Environmental Statement of the Bank, composed and verified on an annual basis, constitutes a summary of the results of the implementation of the System during the previous year and it is available to any interested party. The organisational structure of the EMS of the Bank is briefly described below. 22

24 General Manager of Green Banking Representative of the Administration in the EMS Director of the Environment Unit Responsible for the implementation of the EMS Piraeus Bank Group Environmental Management Officer Piraeus Bank Environmental Management Leader, Responsible for the implementation and proper operation of the EMS on daily basis Environmental Management Team (ETM) [The EMT is coordinated by the Bank's Environmental Management Officer] Environmental Management Coordinators (EMCs) at each branch and each administration building Image 6 - Organisational chart of the EMS The General Manager of Green Banking is responsible for the overall supervision of the EMS, is the representative of the Administration in the EMS, supervises the design and implementation of the EMS to ensure it operates properly and it is improved continuously, and proposes the Environmental Policy of the Bank and Thematic Environmental Strategies for approval. In addition, the General Manager informs the BoD about the results of the implementation of the EMS in the Bank, as well as about potential environment-related opportunities and risks, reviews the EMS, decides on the necessity for further improvement, and finally approves the Environmental Objectives and Targets. The Director of the Environment Unit has the overall responsibility for the implementation of the EMS. The Director is responsible for: Preparing proposals submitted to the General Manager of Green Banking in relation to the Environmental Policy, Thematic Environmental Strategies, directions and actions to improve the EMS, and Environmental Objectives and Targets. Assessing risks and opportunities and how those may affect the environmental performance and effectiveness of the EMS. Approving respective Environmental Programmes based on the Environmental Objectives and Targets that have been set, as well as proposals by the Environmental Management Team (EMT). The Piraeus Bank Group Environmental Management Officer coordinates and supervises the implementation of the EMS in the Bank and other businesses of the Group. The Piraues Bank Group Environmental Management Officer is responsible for: Preparing proposals submitted to the Director of the Environment Unit in relation to the Environmental Policy, Thematic Environmental Strategies, directions and actions to improve the EMS, and Environmental Objectives and Targets. Assessing risks and opportunities and how those may affect the environmental performance and effectiveness of the EMS. Approving the documentation supporting the EMS, if needed. Approving the internal inspections programme on EMS activities. Specifying the educational needs regarding the EMS and other environmental issues in general. 23

25 Identifying legislative provisions in relation to the environmental impact of the Bank. For the proper operation of the EMS, the Bank has appointed a Piraeus Bank Environmental Management Leader and has created an Environmental Management Team (EMT). The Pireus Bank s Environmental Management Leader: Is responsible for the implementation and proper operation of the EMS on a daily basis. Is responsible for developing the internal inspections programme on EMS activities. Coordinates the EMT. Proposes, as the Head of the EMT, the adoption of Environmental Objectives and Targets, as well as the implementation of environmental programmes to achieve them. The Environmental Management Team (EMT) is responsible for: Monitoring the compliance of the Bank with the existing environmental legislation and other environmental requirements. Identifying all environmental aspects of the activities of the Bank and the respective environmental impact they might have. Assessing and classifying the environmental aspects of the activities of the Bank. Making recommendations for the adoption of specific Environmental Objectives and Targets. Composing EMS reports. The EMT comprises executives from the Environment Unit, Technical Projects & Administration Support, Group Human Resources Management & Organisational Learning, Group IT Operations, and the Group Marketing & Communications Division. However, many other Units of the Bank are involved in the EMS. A specially trained employee has been appointed as Environmental Management Coordinator (EMC) in all branches and Administration Buildings to ensure comprehensive data collection, effective implementation of procedures and environmental programmes on a daily basis, as well as the implementation of environmental goals. The General Manager of Green Banking, the Director of the Environment Unit, and the Group Environmental Management Officer meet regularly in order to coordinate the proper operation of the EMS; if necessary, other executives who participate in the implementation of the EMS may be invited to the meetings. Finally, the Environmental Footprint Assessment Officer of the Bank and the Environmental Supervising Officer, who are also executives of the Environment Unit, are responsible for the assessment of the environmental footprint of the Bank and the general monitoring of the programmes for recycling, energy saving, etc. The duties and responsibilities of the staff that manage, execute, control, and confirm activities that have a significant environmental impact are described in the respective procedures and job descriptions of the EMS. The Bank ensures the effective implementation of the EMS through: continuous support by the Administration, which is committed to the meticulous compliance with the environmental policy, means and skills (equipment, inspections, staff qualifications, etc.) needed to achieve the environmental performance specified in the policy, compliance with and implementation of all specifications in the documentation of the EMS. 24

26 7 Environmental Aspects and Impacts The activities of the Bank are characterised by specific environmental aspects and impacts, which are identified, recorded, and monitored on a regular basis in order to reduce the environmental footprint of the Bank. Environmental aspects are defined as specific activities, products, or services of the Bank (e.g. the consumption of energy and the emission of pollution loads, the use of paper, the consumption of natural resources, etc.) that may directly or indirectly 4 interact with the natural environment and therefore have an environmental impact. The environmental impact includes any alteration to the environment (positive or negative) stemming from the environmental aspects of the Bank. Table 5 presents the environmental aspects and impacts of the Bank in more detail. 7.1 Significance Assessment Methodology for Environmental Aspects and Impacts The environmental impacts are assessed by the Bank in relation to their significance, taking into consideration the regulatory context, the absolute values of the measurable environmental characteristics (gaseous pollutants, energy consumption, volume of discarded materials, etc.) and the priorities set in the Environmental Policy of the Bank. In particular, the main criteria used to assess the significance of the environmental aspects and impacts of the Bank are environmental and business criteria and include the following dimensions: Legislative compliance (compliance with applicable national, European, and international legislation and local legal requirements). Significance of the impact. Frequency/possibility of occurrence. Field of reference (percentage of Organisational Units of the Bank related to a specific aspect). Public image and employees opinion (impact on public image and interested parties, as well as environmental assessment by the employees). Each environmental aspect and impact is evaluated in relation to the aforementioned criteria based on a 5 point scale (from 1 to 5). All criteria are equally weighted and, based on this parameter, the Total Grade of Significance (TGS) is calculated for each environmental aspect and each environmental impact. Environmental impacts with a TGS greater than 3 are considered exceptionally significant and therefore it is imperative that immediate action is taken to reduce and control them. Environmental impacts with a TGS greater than 2 and lower than or equal to 3 are considered of medium significance and actions to limit and control them should be designed in the medium term. Finally, environmental impacts with a TGS lower than or equal to 2 are considered of minor significance, thus actions to limit and/or control them are deemed necessary, though not urgent. 7.2 Significance Assessment Results of Environmental Aspects and Impacts The environmental aspects/impacts of the activities of the Bank with the greatest Total Grade of Significance (TGS) which are considered most important to the Bank continue to be: the total annual consumption of electricity in building facilities, the emission of gaseous pollutants resulting from the consumption of electricity, the consumption of conventional paper, as well as solid waste resulting from the use of consumables (paper and ink/toner cartridges). 4 The environmental aspects and impacts of the Bank are categorised as direct, related to the operation of the Bank itself (e.g. consumption of energy and water, emission of gaseous pollutants, consumption of natural resources, etc.), and indirect, related to the environmental footprint of the projects and services financed by the Bank, as well as the products and services the Bank procures. 25

27 The following environmental aspects are considered of medium significance, with a Total Grade of Significance (TGS) between 2 and 3: maintenance of air conditioners (fluorinated gases and substances that destroy the ozone layer) consumption of fuel for road travel (petrol-fuelled and diesel-fuelled vehicles) and air travel, gas emissions resulting from road and air travel consumption of ink/toner, recycled and FSC paper, procurement/use of electrical equipment, total water consumption in the Organisational Units, and financing for RESs and energy saving projects. 26

28 Table 5 - Environmental aspects and impacts resulting from the activities of the Bank Environmental Aspect Environmental Impact TGS Category Electricity consumption in buildings Use of natural resources for the production of electricity 3.8 Direct Emission of gaseous pollutants related to the production of electricity Contribution to the greenhouse effect from CO 2 emissions 3.4 Direct/Indirect Contribution to the greenhouse effect from CΗ 4 emissions 3.4 Direct/Indirect Contribution to the greenhouse effect from Ν 2O emissions 3.4 Direct/Indirect Air pollution from SO 2 emissions 3.4 Direct/Indirect Air pollution from ΝΟ x emissions 3.4 Direct/Indirect Air pollution from PM emissions 3.4 Direct/Indirect Pollution of water resources 3.0 Direct/Indirect Soil pollution 3.0 Direct/Indirect Diesel consumption in buildings Use of natural resources 1.8 Direct Emission of gaseous pollutants related to diesel consumption in buildings Maintenance of air conditioners Fuel consumption for business travel by petrol-fuelled vehicles Fuel consumption for business travel by diesel-fuelled vehicles Emission of gaseous pollutants related to road travel Contribution to the greenhouse effect from CO 2 emissions 1.6 Direct Contribution to the greenhouse effect from CΗ 4 emissions 1.8 Direct Contribution to the greenhouse effect from Ν 2O emissions 1.8 Direct Air pollution from SO 2 emissions 1.6 Direct Air pollution from ΝΟ x emissions 1.6 Direct Air pollution from PM emissions 1.6 Direct Contribution to the greenhouse effect from f-gas emissions 2.8 Direct Contribution to the destruction of the ozone layer from CFC emissions 2.8 Direct Use of natural resources 2.8 Direct Use of natural resources 2.8 Direct Contribution to the greenhouse effect from CO 2 emissions 2.6 Direct Contribution to the greenhouse effect from CΗ 4 emissions 2.8 Direct Contribution to the greenhouse effect from Ν 2O emissions 2.8 Direct Air pollution from SO 2 emissions 2.2 Direct Air pollution from ΝΟ x emissions 2.4 Direct Air pollution from PM emissions 2.4 Direct Fuel consumption for business travel by plane Use of natural resources 2.4 Direct/Indirect Emission of gaseous pollutants related to business travel by plane Fuel consumption for business travel by other means (train, ship, bus) Emission of gaseous pollutants related to business travel by other means (train, ship, bus) Contribution to the greenhouse effect from CO 2 emissions 2.2 Indirect Contribution to the greenhouse effect from CΗ 4 emissions 2.0 Indirect Contribution to the greenhouse effect from Ν 2O emissions 2.0 Indirect Air pollution from SO 2 emissions 2.2 Indirect Air pollution from ΝΟ x emissions 2.2 Indirect Air pollution from PM emissions 2.0 Indirect Use of natural resources 1.2 Direct/Indirect Contribution to the greenhouse effect from CO 2 emissions 1.2 Indirect Contribution to the greenhouse effect from CΗ 4 emissions 1.2 Indirect Contribution to the greenhouse effect from Ν 2O emissions 1.2 Indirect Air pollution from SO 2 emissions 1.2 Indirect Air pollution from ΝΟ x emissions 1.2 Indirect Air pollution from PM emissions 1.2 Indirect Pollution of water resources 1.2 Indirect Water consumption in Organisational Units Use of natural resources 2.4 Direct Urban liquid waste from Organisational Units Pollution of the recipient in case of non-controlled management of the waste 2.4 Direct/Indirect Use of cleaning materials in buildings Pollution of the recipient in case of non-controlled management of the waste 2.0 Direct Consumption of conventional paper Use of natural resources 3.6 Direct Consumption of recycled paper Use of natural resources 2.8 Direct Consumption of FSC paper Use of natural resources 2.8 Direct Consumption of ink and toner Use of natural resources 2.8 Direct 27

29 Environmental Aspect Environmental Impact TGS Category Procurement/use of electronic equipment Use of natural resources 2.0 Direct Procurement/use of electrical equipment Use of natural resources 2.8 Direct Procurement/use of office consumables Use of natural resources 2.6 Direct Procurement/use of office furniture Use of natural resources 1.4 Direct Urban solid waste Pollution of the recipient in case of non-controlled management of the waste 2.8 Direct Urban waste paper Pollution of the recipient in case of non-controlled management of the waste 3.2 Direct Urban waste ink and toner cartridges Pollution of the recipient in case of non-controlled management of the waste 3.2 Direct Urban waste electrical and electronic Pollution of the recipient in case of non-controlled management of the waste 1.8 Direct equipment Urban waste light bulbs Pollution of the recipient in case of non-controlled management of the waste 1.8 Direct Urban waste portable batteries Pollution of the recipient in case of non-controlled management of the waste 1.8 Direct Urban waste large batteries Pollution of the recipient in case of non-controlled management of the waste 1.6 Direct Urban waste plastic Pollution of the recipient in case of non-controlled management of the waste 1.2 Direct Urban waste old furniture Pollution of the recipient in case of non-controlled management of the waste 1.2 Direct Urban waste from building renovations Pollution of the recipient in case of non-controlled management of the waste 1.6 Direct Credit/financing of RESs and energy saving projects Reduction of environmental impact 3.0 Indirect 28

30 8 Identification and Assessment of Risks and Opportunities As it was mentioned in the Introduction, the EMS was updated in order to comply with the requirements of the new Standard ISO 14001:2015. According to the respective new procedure, the EMT for the first time collected and examined data in order to identify risks 5 and opportunities 6 that may affect the operation of the Bank and consequently its environmental performance and the effectiveness of the EMS. Examples of risks and opportunities include: Changes in external environmental conditions that may positively or negatively affect the environmental performance of the Organisational Units of the Bank. Changes in the regulatory framework that may affect specific activities of the Bank. Technological or financial developments that may affect the operation of the Bank as a whole or specific activities of the Bank. Potential emergencies resulting from external factors. Special circumstances in branches or facilities of the Bank that may result in adverse environmental impacts. Other external circumstances. As a next step, the EMT specified potential risks and opportunities, by taking into consideration the activities of the Bank as well as changes in external circumstances (environmental, financial, technological, regulatory, etc.) and assessed their significance based on a 3-point qualitative scale (high, medium, low). This procedure ensures that significant risks and opportunities are identified promptly and are thus taken into account in the design of preventive measures and respective Environmental Programmes. More specifically, the Identification and Assessment of Risks and Opportunities for Piraeus Bank by the EMT highlighted the following issues: The impact of climate change The rise in global temperature, changes in precipitation, rising sea levels, the increased frequency of extreme weather phenomena, etc. constitute the main components of climate change, which are expected to cause impacts and disturbances across a wide range of activities and sectors globally, resulting in significant economic outcomes: environmental damages and losses, as well as economic benefits in some cases. Climate change may directly affect the infrastructure of the Bank, increasing energy needs for cooling in branches and Administration Buildings during the summer, but also reducing energy needs for heating during the winter. In the short term (5-year projection), these impacts are not deemed particularly significant, even though it cannot be ruled out that there will be years of extreme temperature values. In addition, since climate change affects various sectors of economic activity, it is possible that it will lead to indirect impacts (positive or negative) on the Bank, since businesses may benefit or be harmed, which in turn will affect their ability to repay their loans. For some economic sectors these outcomes 5 Risks are defined as potential adverse circumstances that may play a role in specific activities, products, services, or building facilities of the Bank that will negatively affect environmental performance and/or the environmental effectiveness of the EMS. For example, climate change may increase the needs for cooling and consequently energy consumption during the summer in branches and Administration Buildings of the Bank. 6 Opportunities are defined as potential favourable circumstances that may play a role in specific activities, products, services, or building facilities of the Bank that will positively affect environmental performance and/or the environmental effectiveness of the EMS. For example, the adoption of an ambitious agreement on climate change on the part of Piraeus Bank, Piraeus Group, or the State may create opportunities for growth in the sector of green financing. 29

31 may prove significant (overall, the Bank considers them of medium significance) and the Bank monitors them via a specialised application (climabiz). Policies adopted on a global scale to address climate change may also affect the activities of the Bank. The EU has implemented policies to significantly increase the price for emission allowances in the medium term (after 2020) and in the long term and this will lead to increases in energy costs. Consequently, energy-intensive sectors, as well as sectors included in the trading system are expected to be negatively affected. A substantial exposure of the Bank to these sectors may be recognised as a threat in the medium and long term. The Bank, through climabiz, is able to continuously monitor its exposure to this risk. In addition, policies aimed to address climate change seem to make way for a new, radical reconstruction of the energy sector, spearheaded by the electrical industry. A large-scale growth is expected in the RESs front (particularly in photovoltaics and wind power, where the various estimates converge in a more than double increase in installed capacity in Greece by 2030 compared to current levels), projections are favourable regarding the promotion of energy saving, etc. Thus, a market where the Bank may promote green banking products and services is reformed. The impact of legislative changes The activities of financial institutions are not inherently accompanied by significant, direct environmental impacts, for instance in comparison with industrial activities. However, the existing legislation imposes specific requirements regarding the environmental aspects related to the operation of financial institutions, and defines the framework within which the most significant environmental loads shall be managed. A key tool that facilitates monitoring of Environmental Legislation is the specialised Environmental Legislation & Case Law Database (EL&CLD) developed by Piraeus Bank. The EL&CLD provides a systematic framework to organise the provision of specialised legal support during the implementation of the Environmental Policy of the Group and compliance with applicable environmental legal requirements. The EL&CLD includes essential legal information and scientific documentation, as well as expert opinions on specific legal issues. However, potential changes/amendments in the institutional framework that create future requirements, for example in relation to the maintenance of E/M equipment (petrol boilers, air conditioning & fluorinated greenhouse gases, mandatory energy inspections, etc.), licensing for E/M equipment (standby generator sets etc.), and waste management (Electronic Waste Registry EWR), lay the ground for significant risks, given the massive building stock of the Bank. As a result, it is the volume of building stock and the accompanying E/M equipment that transform potential changes in legislation into potential risks to the Bank. The reorganisation of the building stock Changes in building stock, due to mergers and the relocation of branches, constitute an opportunity for the Bank, given that a more sensible distribution of facilities is implemented, neighbouring branches are merged, privately-owned and more contemporary buildings are exploited, etc. As a result, there is a potential to reduce energy consumption in the Bank. At the same time, the acquisition and exploitation of new building facilities entails the risk of requirements imposed to the Bank for new licences for equipment (e.g. standby generator sets). Biodiversity and Business The involvement of the Bank in activities related to financing projects aiming to the protection of biodiversity may offer added value and ultimately an opportunity to grow a new field of banking products and services. In particular, experience and expertise acquired on sustainable investments in the maintenance/restoration of biodiversity and the management of protected areas is expected to 30

32 evolve into an important opportunity for the Bank to stand out as a pioneer in reinforcing financing in similar business initiatives. The socioeconomic crisis The socioeconomic crisis may affect the operation of the Bank, mainly its environmental performance and the effectiveness of the EMS, either negatively (threat), in the form of a loss of interest in environmental projects and environmental compliance on the part of customers/suppliers, either positively (opportunity), in the form of reductions in its environmental footprint (due to reductions in activity volume) or the implementation of initiatives (e.g. electronic banking) that lead to reductions in energy consumption. 31

33 9 Applicable Legal Requirements As already mentioned, the activities of financial institutions are not inherently accompanied by significant, direct (operating) environmental impacts, for instance in comparison with industrial activities. However, the existing legislation imposes specific requirements regarding the environmental aspects related to the operation of financial institutions, and defines the framework within which the most significant environmental burdens shall be managed. In particular, there are specific requirements for: The reuse of materials and equipment and the recycling of waste. The maintenance of equipment. The control and management of substances that contribute to the greenhouse effect and the destruction of the ozone layer. The promotion of energy saving and energy inspections 7. The licensing of certain equipment categories. The environmental management of real estate owned by organisations (avoiding potential damage deriving from it). The environmental licensing of office buildings covering large surfaces. The registering of office buildings disposing Standardised Environmental Terms in the Electronic Waste Registry 8. The publication of environmental information. The Table below briefly presents the applicable legal framework for the protection of the environment, in relation to the impacts resulting from the operation of the Bank (and from the financing activities of the Bank directed to the maintenance of biodiversity) 9. 7 Legislation allows for exemptions from mandatory energy inspections if the certified by an independent institution EMS according to European and/or international standards includes energy inspections that fulfil the minimun of criteria specified in appendix VI of Law 4342/ It should be noted that with respect to specific categories of materials (containers, batteries of any size, WEEE, oil waste) the Organisation is legally viewed as the final user and not the producer of waste. Office buildings disposing Standardised Environmental Terms keep a waste record in chronological order. 9 The inclusion of relevant provisions in the Table does not entail in any way any kind of assertion with regard to the meaningful implementation of all relevant regulations in practice. See e.g. the case of the energy inspectors register. 32

34 Solid waste management: recycling of plastic Table 6 - Applicable legal framework for the protection of the environment, in relation to the impacts resulting from the operation of the Bank (and from the financing activities of the Bank directed to the maintenance of biodiversity) Field Relevant Regulations Main provision/action Solid waste management: recycling of portable batteries Solid waste management: reuse-recycling of batteries/accumulators (office, E/M equipment) Solid waste management: reuse-recycling of ink and toner cartridges Solid waste management: paper recycling Solid waste management: alternative managementrecycling of WEEE Solid waste management: alternative managementrecycling of lighting materialslight bulbs L.1650/1986 (esp. article ), L.2939/2001 JMD 9268/2007 L. 3854/2010 JMD 54461/2013, MD /2016 and amended JMD 892/2017, JMD 50910/2003, L.4042/2012, CM Act 49/2015, Directives 94/62 and amended 2004/ /2-2015/720, Directive 2008/98, Decision 2000/532/EC-2001/118/EC-amendment 2014/955/ΕΕ L.1650/1986 (esp. article 12), L.2939/2001-L.3854/2010, JMD 41624/2010 and JMD 39200/2015, MD /2016 and amended JMD 892/2017, JMD 50910/2003, JMD 13588/2006, JMD 24944/2006, JMD 8668/2007 (repealed), JMD /2012, L.4042/2012, CM Act 49/2015, JMD 62952/2016, Directives 2006/ / /56, Decision 2000/532/ΕΚ-2001/118/EC-amendment 2014/955/EU L.1650/1986 (esp. article 12), L.2939/2001-L.3854/2010, JMD 41624/2010 and JMD 39200/2015, MD /2016 and amended JMD 892/2017, JMD 50910/2003, JMD 13588/2006, JMD 24944/2006, JMD 8668/2007 (repealed), JMD /2012, L.4042/2012, CM Act 49/2015, JMD 62952/2016, Directives 2006/ / /56, Decision 2000/532/EC-2001/118/EC-amendment 2014/955/EU L.1650/1986 (esp. article 12), JMD 50910/2003, L.4042/2012, CM Act 49/2015, Directive 2008/98, Decision 2000/532/EC-2001/118/EC-amendment 2014/955/EU L.1650/1986 (esp. article 12), L.2939/2001-JMD 9268/2007-L.3854/2010-JMD 54461/2013-L.4296/2014 (articles 14 and 15), MD /2016 and amended JMD 892/2017, JMD 50910/2003, L.4042/2012, CM Act 49/2015, Directives 94/62 and amended 2004/ /2, Directive 2008/98, Decision 2000/532/EC-2001/118/ECamendment 2014/955/EU PD 117/ , JMD 12145/2004, PD 15/2006, L.4042/2012, PD 114/2013, JMD 23615/2014, JMD 11532/2014, JMD 5655/2015, MD /2016 and amended JMD 892/2017, CM Act 49/2015, JMD 62952/2016, Directives 2002/ / / / /19, Decision 2000/532/EC-2001/118/ECamendment 2014/955/EU PD 117/2004 (Appendix ΙΑ, Category 5) 12, JMD 12145/2004, PD 15/2006, MD /2011, L.4042/2012, PD 114/2013, JMD 23615/2014 (Appendices Ι and ΙΙ, Category 5, Appendices ΙΙΙ and IV, Categories 3, 4, 5), Plastic containers are delivered (through licensed collection-transportation companies) to licensed recycling units/alternative management recycling systems The collection of portable batteries is organised in collaboration with an approved system of alternative management The collection of batteries/accumulators is organised in collaboration with certified alternative management systems/conventional commitment by equipment maintenance companies for environmentally sound, legal management and provision of relevant certificate Collection and disposal for reuserecycling by a collaborating specialised company, provision of relevant Certificate. Certificate from companies leasing printing equipment The paper is delivered (through licensed collection-transport companies) to licensed recycling units/alternative management-recycling systems (and municipal waste management companies), provision of relevant certificates The collection of WEEE is organised in collaboration with a certified alternative management system and licensed collection-transport companies The collection of lighting materials-light bulbs is organised in collaboration with certified alternative management systems 10 Paragraph 1 of article 12 has been repealed; see article 59, par. 1 of L. 4042/2012. The footnote applies to all references to article 12 of L. 1650/1986 in Table As of relevant regulations of PD 117/2004 have been repealed. In addition, as of the Directive 2002/95 has been repealed, and as of the Directives 2002/96 and 2003/18 have been repealed, with defined reservations. 12 See note above about recently repealed regulations. By JMD 23615/2014, the MD /2011 was repealed as of

35 Field Relevant Regulations Main provision/action Directives 2002/ / / / /19, Decision 2000/532/EC-2001/118/EC-amendment 2014/955/EU Solid waste management: alternative management of office equipment and furniture Alternative oil waste management (E/Μ equipment) Electronic Waste Registry (EWR) Control recovery of fluorinated greenhouse gases (from cooling air conditioning/fire protection equipment) Management of controlled substances that destroy the ozone layer, in air conditioning cooling fire extinguishing installations Maintenance control of heating (boilers) and air conditioning installations Use of standby generator sets L.1650/1986 (esp. article 12), L.2939/2001-L.3854/2010, JMD 50910/2003, Municipal Sanitation Regulations, L.4042/2012, CM Act 49/2015, Directive 2008/98, Decision 2000/532/EC-2001/118/EC- amendment 2014/955/EU L.1650/1986 (esp. article 12), L.2939/2001-L.3854/2010, PD 82/2004, MD /2016 and amended JMD 892/2017, JMD 13588/2006, JMD 24944/2006, JMD 8668/2007 (repealed), JMD 62952/2016, JMD /2012, L.4042/2012, CM Act 49/2015, Directive 2008/98, Decision 2000/532/ΕΚ-2001/118/EC-amendment 2014/955/ΕU L.4042/2012 (article 42), JMD 43942/2016, amended JMD 1/1/2017 (repealed), JMD 26303/2017, Directive 2008/98 (esp. article 26) L.1650/1986 (esp. article 8), JMD 18694/2012, JMD 51585/2016, Regulation (EC) 842/2006, Regulations (EC) 1497/ /2007, Regulations (EC) 303/ / / , new Regulation (EU) 517/2014, effective , repeal of Reg. 842/2006, Extr. Regulations (ΕU) 2015/2065 and 2015/2067, Extr. Reg. (ΕU) 2015/2068 L.1650/1986 (esp. article 8), JMD 37411/2007, Regulation (EC) 1005/2009, Extr. Decision (ΕU) 2015/2337, Extr. Decision (ΕU) 2016/2114 L.1650/1986 (esp. article 8, par. d), JMD 5825/2010, PD 100/2010 (repealed), MD /2011, MD 1192/2012, L.4111/2013 (article 31), L.4122/2013 (esp. articles 2, 14-16, 19), L.4178/2013 (article 52), L.4280/2014 (article 54 repealed par. 1 and 2), L.4315/2014 (article 10), MD 2618/2014 (repealed MD 1192/2012), L.4342/2015 (article 33), L.4351/2015 (article 23), L.4403/2016 (article 67) 14, L.4409/2016 (articles 52-59) and amended article 22 L.4447/2016 L.2244/1994, JMD 95209/1994, L.2773/1999 (esp. article 10), MD 17951/2000 (esp. article 22), L.3468/2006 (esp. articles 8 and 28), MD 25131/2009, L.4001/2011(article 132), JMD 45964/2013 (esp. article 2 par. c iii and article 3 par. 5) Collaboration with specialised collection companies transporting waste to recycling units. Reuse of old furniture (and donations)/delivery, as appropriate, to competent municipal services Conventional commitment by collaborating equipment maintenance companies for environmentally sound, legal management, provision of relevant certificate required Registration of office buildings disposing Standardised Environmental Terms, submission of waste reports Maintenance control recovery by specialised (certified) companiesstaff/creation of database/control cards for stationary air conditioning installations, cooling or heat pump equipment that contain f gases Maintenance controls by specialised companies personnel/databases/cooling and air conditioning installation card Completion of relevant maintenance sheets/creation of maintenance control archive Exemption decisions/certificates, Standard Environmental Commitment certificates by maintenance contractors for sound management 13 Regulations 303/2008 and 308/2008 have been repealed. 14 PD 100/2010, including regulations amended through articles of the laws stated (4111/2013, 4122/2013, 4178/2013, 4280/2014, 4315/2014, 4342/2015, 4351/2015, 4403/2016), has been repealed. See articles of of L.4409/2016, as in force. 34

36 Field Relevant Regulations Main provision/action Energy saving in buildings/energy controls (qualification for exemption) Limitation of volatile organic compounds (VOCs) from use of organic solvents in decorative paints Construction/renovation of buildings: alternative management of constructiondemolition-excavation (CD&E) waste Measures for soundproofing (especially from air conditioning systems and use of equipment in outdoor spaces) Short-term measures for air pollution Prevention of damage caused to soil/water/natural habitats and species Environmental licensing for buildings (offices) covering large surfaces (total construction 10,000 m 2 ) Biodiversity maintenance initiatives/research within the Natura 2000 network and Wildlife Sanctuaries JMD 5825/2010, MD 17178/2010, PD 100/2010 (repealed.) 15, MEECC Circular 2279/ , MEECC Circular 382/ , JMD 1018/ (see also JMD 1013/2014), MD 1192/2012, L.4111/2013 (article 31), L.4122/2013-L.4156/2013 (article 3, par.4), L. 4178/2013 (article 52, amended article 9 PD 100/2010), L.4280/2014 (article 54, repealed par. 1 and 2), L.4315/2014 (article 10), MD 2618/2014 (repealed MD 1192/2012), PD 100/2014, L.4342/2015 (esp. articles 10, 17, 33, 58), L.4351/2015 (article 23), JMD 18549/2015, Circular /2016, L.4403/2016 (article 67), L.4409/2016 (articles 48 and 52-59) and amended article 22 L.4447/2016, JMD /2016, Directives 2010/ /27, Commission Document (EU) SWD(2013)447f. JMD 437/2006-JMD 287/2010-JMD 120/2012, (special case: JMD /2013, term ΙΙΙ.2.4), Directives 2004/ /79 L.1650/1986 (esp. article 12), L.2939/2001-L.3854/2010, JMD 50910/2003, JMD 36259/2010, L.4030/2011 (article 40), L. 4067/2012 (article 17 par.1), L.4280/2014 (article 51 par. 11), CM Act 49/2015, MEE Doc /2016, JMD 62952/2016, Directive 2008/98 (esp. article 11), Decision 2000/532/EC-2001/118/EC-amendment 2014/955/EU, Decision 2011/753/ΕU (esp. article 4) PD 1180/81, L.1650/1986 (esp. article 14), PD 14/1999 JMD 37393/2003-JMD 9272/2007 and Directives 2000/ /88 L.1650/1986 (article 8), 14122/2011 (esp. article 24), JMD 70601/2013, (e.g.: Decision 19619/ Western Macedonia Region), Directive 2008/50 (especially article 24) PD 148/2009, L.4409/2016 (article 33), Directive 2004/35 and 2013/30 (article 38), (JMD 13588/2006, JMD 24944/2006, JMD 8668/2007 (repealed), JMD 62952/2016, JMD /2012) L.4014/2011, MD 1958/2012, MD 20741/2012, JMD 48963/2012, JMD /2013, JMD /2013, MD /2014, MD /2014, MD 37674/2016, Circ /2015, JMD 30651/2014 (esp. article 4 par. 4), Directive 2011/92 and amended Directive 2014/52/ΕU L.1650/1986 (esp. articles 18-21), JMD 33318/1998-JMD 14849/2008, JMD 37338/2010-JMD 8353/2012, L.3937/2011, L.4014/2011 (esp. article 10), MD 52983/2013, MD /2014 (esp. Appendix 3.2), Circ /2004 and /2015, D. of Pel. Region 1610/2003, Directives 79/ /147 and 92/43, Decision (EU) 2015/2374 and Decision (EU) 2016/2328 Energy saving programmes (light bulbs, sensors, BEMS, thermal insulation, ventilation, etc.). Pilot implementations. Energy office. Energy performance certificate for the construction of new buildings/building units, refurbishment of buildings/building units. Assessment of Environmental Management System compatibility with Energy Management System/assessment on fulfilment of criteria specified in appendix VI L.4342/2015 The predetermined VOC limit values and the specification of the products are taken into account prior to procurement and commission supervision of respective works by the Technical Services Contractors and collection transport companies collaborate with certified alternative CD&E management systems and present a copy of the respective certificate Additional measures for sound and vibration attenuation are taken if necessary Programme to monitor responsiveness to requirements on thermostat regulation Implementation of precautionary control measures/environmental licensing for maintenance initiatives in natural habitats Compliance with applicable procedure for environmental licensing, by Decision Approving the Environmental Terms or Standardised Environmental Terms, as appropriate, consideration to update the Electronic Environmental Register (EER) Environmental permits (for research), ecological assessment in the Environmental Impact Assessment (EIA) 15 Regarding PD 100/2010 and regulations on energy inspectors, see footnote 7. 35

37 Field Relevant Regulations Main provision/action Publication of environmental information Information on climate protection measures L.4403/2016, esp. article 1 (sub. of article 43a of L.2190/1920), article 3 (add. of article 107Α in L. 2190/1920), article 4 (esp. par. 4 (article 131 L. 2190/1920)), Directive 2014/95 and Directive 2013/34 N.1650/1986 (article 8), L.2205/1994, Paris Pledge for Action 2015-self-commitment of Piraeus Bank 16, Decision 1/CP.21 of the 21 st Conference of the Parties to the Framework Convention ( ) to adopt the Paris Agreement (esp. par. 43), L.4403/2016, L.4426/2016, Decision 1/CM.1 of the 1 st Conference of the Parties of the Paris Agreement to implement the Agreement ( ), Unfccc-Global Climate Action proceedings (2016-) Inclusion of non-financial information on environmental initiatives and programmes in management reports Publication of data on initiatives and programmes on climate protection in Environmental Reports and Statements, climabiz 16 Due to the self-commitment of Piraeus Bank, it is not deemed necessary to examine the exact legal nature of Decision 1/CP.1 of the 21 st Conference of the Parties. 36

38 10 Environmental Objectives and Targets Environmental Programmes On annual basis, the Bank sets Environmental Objectives and Targets through a specific procedure. The systematic monitoring and limitation of significant environmental impacts from the operation and the activities of the Bank is the aim in an effort to constantly improve the environmental performance of the Bank. The environmental targets are achieved through the implementation of specific environmental programmes, for which the necessary funds are budgeted and experienced personnel is activated. Inter alia, these initiatives include: The implementation of energy saving programmes in building units under renovation, such as: energy saving interventions in the building envelope, lighting assessments, installation of Building Energy Management Systems (BEMS), ventilation by CO2 recovery and control, installation of optimal efficiency air conditioning systems, etc. The installation of water saving systems in building units under renovation, such as: water flow switches, dual flush toilets, etc. The implementation of recycling programmes for paper, ink and toner cartridges, batteries, plastic (PET), containers, light bulbs, as well as electrical and electronic equipment. The adoption of green supply practices (procurement of recycled paper/fsc certified paper, etc.). The implementation of ink and toner saving programmes, such as: installation of the Managed Print Services system, procurement of refilled cartridges. The implementation of applications for computerised management of data and EMS certificates. The implementation of programmes to reduce employee travel (e learning). The implementation of programmes to raise awareness among human resources in collaboration with independent contractors. Table 7 summarises the main environmental targets and the respective environmental programmes of the Bank for

39 Table 7 - Environmental targets and programmes of Piraeus Bank for 2017 Environmental Aspect Environmental Target 2017 Duration Environmental Programmes Unit Involved 2% reduction in electricity consumption per square metre compared to the previous year in all facilities of the Bank integrated in the EMS 1 year Building renovations, lighting replacement, consumption monitoring via BΕMS Technical Projects Electricity consumption 8% reduction in electricity consumption per square metre in all facilities of the Bank integrated in the energy management programme [three year target, with 2016 as the year of reference] 3 years Integrated Energy Management Technical Projects 5% of total energy consumption in Branches will be produced from photovoltaic systems, through energy net metering [two year target, with 2016 as the year of reference] 2 years Installation of autoproduction systems for netmetering Technical Projects Total emissions of gaseous pollutants related to electricity production, diesel consumption in buildings, and business transport 2% reduction in total GHG emissions per square metre compared to the previous year in all facilities of the Bank integrated in the EMS 10% 17 reduction in total GHG emissions (in absolute terms) in all facilities of the Bank integrated in the EMS [five year target, with 2014 as the year of reference] 1 year 5 years Building renovations, lighting replacement, consumption monitoring via BΕMS Building renovations, lighting replacement, consumption monitoring via BΕMS Technical Projects Technical Projects Water consumption 2% reduction in water consumption per employee compared to the previous year in all facilities of the Bank integrated in the EMS 1 year Building renovations Technical Projects 20% reduction in water consumption in 10 Branches by installing filters in taps 1 year Pilot water saving programme Technical Projects Total paper consumption 3% reduction in total paper consumption per employee compared to the previous year in all facilities of the Bank integrated in the EMS 1 year Reduction of paper consumption (paperless cashier) Environment Unit Paper consumption (conventional, recycled, and FSCcertified) 3% increase in use of environmentally certified paper consumables in relation to the total paper consumption in all facilities of the Bank integrated in the EMS [twoyear target, with 2016 as the year of reference] 2 years Green procurement Administration & Support Solid waste - paper 3% increase in paper recycling per employee compared to the previous year in all facilities of the Bank integrated in the EMS 1 year Paper recycling Environment Unit Solid waste - ink and toner cartridges 3% increase in cartridge recycling per employee compared to the previous year in all facilities of the Bank integrated in the EMS 1 year Recycling of ink/toner cartridges Environment Unit Solid waste - electrical and electronic equipment 10% increase in WEEE recycling compared to the previous year in all facilities of the Bank integrated in the EMS 1 year Recycling of WEEE Group IT Operations, Administration & Support, Environment Unit 17 The target has been revised, given that it has already been achieved. 38

40 11 Analysis of Environmental Performance 11.1 General Information This section presents the environmental performance of Piraeus Bank for the year Two applications have been developed to achieve integrated management of environmental data (which exceed 400,000 annually): The Environmental Footprint Database, an innovative tool developed according to the Greenhouse Gas Protocol Initiative. The tool facilitates the precise calculation of the environmental performance of each building facility separately (Administration Buildings and branches) and several Environmental Performance Indicators (EPIs) are calculated, thus allowing for a more concrete and targeted development of environmental programmes. The automated procedure Environmental Management within the workflow APPIAN application. The procedure Environmental Management enables an integrated and systematic management of environmental data from each Organisational Unit of the Bank, as well as the automated data input into the Environmental Footprint Database directly from the Organisational Units. The environmental performance of the Bank for 2016 is presented in comparison with Management of Raw Materials, Natural & Energy Resources Energy Energy resources utilised in the context of the various activities of the Bank are: electricity, petrol for heating and for the operation of emergency power generators, as well as petroleum products (mainly petrol and diesel) for the transport of personnel in various work and education related activities. Electricity Electricity is consumed in all building facilities for lighting, the operation of electrical and electronic equipment, air conditioning, and in most buildings for heating as well. Electricity consumption constitutes the environmental aspect of the Bank with the most significant environmental impact. Mitigation programmes are implemented on an annual basis, with the adoption of energy-efficient technologies, while the Bank seeks to continuously monitor energy consumption in existing buildings and buildings under renovation. In 2016, renovations and energy upgrade projects were implemented in 70 Branches and buildings of the Bank by Technical Projects & Administration Support. Energy upgrade interventions implemented in Branches are summarised in Table 8. Table 8 - Energy saving interventions implemented in Branches in 2016 Energy Saving Intervention Number of Branches Rooftop thermal insulation 2 Replacement of standard aluminium glazing panes with insulated glazing ones 15 Installation of motion sensors in WC areas 36 Installation of BΕMS 61 VAM heat pump exchanger for overnight cooling 37 Replacement of light fittings and installation of LED lamps 61 39

41 Energy saving from lighting in building facilities During the renovations of building facilities, selected LED light fittings are installed, wherever possible. The intervention is implemented following photometric studies that include criteria such as high lighting levels and energy saving. Upon examination of a significant sample of branches, it was estimated that the Installed Lighting Power Density was W/m 2 until In branches and buildings that were studied and renovated, it was reduced to 7.23 W/m 2 in Table 9 - Energy saving from lighting in Reduction in lighting power density: 64% Reduction in number of lighting installations: 19% Reduction in installed capacity: 52% Based on a study conducted by an external consultor in collaboration with Technical Projects, the annual economic benefit resulting from the aforementioned programme is estimated at 113,250. Pilot installation of photovoltaic system (net-metering) In 2016, the installation of a photovoltaic system (capacity 50 kwp) was completed on the rooftop of a Piraeus Bank branch in Heraclion, Crete. In early 2017, the system was fully connected to the electricity supply network. Energy saving Replacement of Central Chillers In April 2016, in the Administration Building located at 87 Syggrou Ave., water-cooled chillers were replaced with two new ones. In order to choose the chillers, technical features of high energy standards (EER=5.31 and SEER=7.6) were taken into account. The new E/M equipment led to 40-45% energy saving and the reduction of operation costs by 30,000 during the first 8 months of its operation (May-December 2016). Electricity consumption is monitored directly from statements sent by the providers (Public Power Corporation SA DEI, Heron SA), and from shared facilities statements (see Administration Building located at Amerikis Str.). In 2016, total electricity consumption exceeded GWh. Electricity consumption per employee was reduced by approximately 3%, while the respective indicator per unit of surface remained the same as in Electricity Consumption Table 10 - Electricity consumption Total electricity consumption (GWh) Total electricity consumption per unit of surface (kwh/m 2 ) Total electricity consumption per employee (kwh/empl.) ,905 4, Based on electricity statements issued until the first ten days of April

42 It should be noted that the performance of the Bank was affected by climatic conditions in 2016 compared to the previous year. The table below presents the estimated heating and cooling degree days 19 (HDD and CDD respectively) for 12 Greek cities 20 comparatively in 2015 and in climatic zone Α 4 in climatic zone Β 3 in climatic zone C 2 in climatic zone D According to this data, cooling needs were relatively increased (approximately by 5%) compared to 2015, which resulted in increased energy consumption for air conditioning. On the contrary, heating degree days were fewer, even though reductions in energy consumption for heating was moderated by the increase in the use of air conditioning units for the same purpose, thus limiting the use of petrol boilers (more details below). Table 11 - Estimated heating and cooling degree days in 12 Greek cities Sample HDD CDD City Cl. Zone Change Change Heraclion A % 1, , % Cyclades (Tinos) A % % Molai, Laconia A 1, % 1, , % Athens B 1, % 1, , % Lesbos (Petra) B 1, , % % Nemea, Corinth B 1, , % % Patras B % 1, , % Ioannina C 2, , % % Metaxades, Evros C 2, , % % Volos C 1, , % 1, , % Drama D 2, , % % Kastoria D 2, , % % In total, since electricity consumption per unit of surface has been reduced by more than 19% The method of degree days is one of the most popular methods to evaluate energy consumption both for the heating and the cooling of buildings. 20 Data source: is used as a reference year, since thenceforth all environmental aspects of the Bank are systematically assessed on an annual basis. 41

43 Electricity Consumption in Administration Buildings (GWh) Electricity Consumption in Branches (GWh) ENVIRONMENTAL STATEMENT 2016 Image 7 - Electricity consumption (kwh/m 2 ) Energy Analysis of Piraeus Bank Building Stock The following diagrams present monthly electricity consumption in all Administration Buildings and Branches. Increased consumption during the summer (mainly July-August) resulted from the use of air conditioning units. Furthermore, a relative reduction is noted in branches electricity consumption, mainly due to the closure of certain branches Months Months Image 8 - Electricity Consumption in Administration Buildings ( ) Image 9 - Electricity Consumption in Branches ( ) Based on actual measurements/consumption from a sample of 135 Branches and 5 Administration Buildings with an installed BEMS 22, it was estimated that: in Branches, about 33% of total electricity consumption results from air conditioning (heating/cooling), 26% from lighting, and the remaining 41% from other sources (appliances etc.), in Administration Buildings, 32% of total electricity consumption results from air conditioning (heating/cooling) and the remaining 68% from lighting and office appliances. Electricity consumption per source in Administration Buildings and Branches is presented below. Administration Buildings Air conditioning (heating/cooling) GWh 33% 32% 68% Other (lighting is included) Branch Network 26% GWh 41% Air conditioning (heating/cooling) Lighting Other Image 10 - Electricity consumption per source in Administration Buildings Image 11 - Electricity consumption per source in Branches 22 Energy Management of Building Stock 2016, Thelcon Ltd. 42

44 Energy Office Piraeus Bank proceeded to the development of the Energy Office, an environmental programme designed to systematically promote energy saving in the Oragnisational Units of the Bank. Through the Energy Office and with the use of specialised software, energy and water consumption is monitored, constantly and in real time, in approximately 270 building facilities. With the use of algorithms and automations and taking into consideration the energy profile of each branch separately, the improvement of its energy performance is expected. The most important features of the software are: Capability to compare and contrast, with the use of graphs, energy behaviour among branches, based on criteria such as geographical location, climatic zone, branch size, etc. Capability to present environmental indicators and performance in graphs and inforgraphics to inform all employees involved. Fast and user-friendly analysis of data on different time periods and different loads. Monitoring and grouping of alarms and events, depending on their significance, through the creation of automated reports sent to authorised users per category of malfunction. Production of Energy Reports per building or building category in relation to their energy behaviour, as well as presentation of alarms noted during the reference period. The Energy Office has significant environmental and social benefits: Further reduction of the environmental footprint of the Bank through targeted actions. Improvement of thermal comfort in branches all over Greece, taking into consideration climatic conditions in each area. Capability of prompt identification of excessive energy consumption as well as identification of malfunctions in the equipment of building facilities. Raising awareness among employees and customers through the use of graphs and data presented on projection screens in branches and Management Buildings. In December 2016, at the Environmental Awards 2016 ceremony, organised by Boussias Communication, the software received the highest distinction with the "GOLD AWARD" in the category "Energy Mastering Energy Efficiency". 43

45 Heating oil In 2016, 110 building facilities procured heating oil. The total amount of oil the Bank procured for heating in branches and Administration Buildings was reduced by 27% compared to the previous year, at about 325,000 litres. This significant reduction resulted from the fact that, compared to 2015, fewer branches procured heating oil in 2016 (Image 12). Heating Oil Consumption Table 12 - Heating Oil Consumption Indicators Total heating oil consumption (lt) 443, ,315 Total heating oil consumption per unit of surface (lt/m 2 ) Total heating oil consumption per employee (lt/empl.) ,414 lt ,514 lt ,436 lt 96,801 lt Branches Administration Buildings Branches Administration Buildings Image 12 - Number of building facilities that procured oil Image 13 - Heating Oil distribution (branches and Administration Buildings) Employee travel In orded to calculate business travel, both road and air travel are taken into account. The distribution of internal mail by motorcycle among Administration Buildings in Athens is also included. Total fuel consumption due to the road travel of employees is estimated based on data gathered by the Bank on the transport of the personnel and by taking into consideration the average monthly price of unleaded petrol and diesel 23. Educational travel is calculated based on the distance covered by each employee from the workplace to the educational centre and back. Thus, in 2016 the consumption of petrol for business travel was estimated to have reached 1,370,350 lt. Taking into account an estimated 98, lt of petrol consumed for educational travel, the total petrol consumption for employee travel in 2016 reached approximately 1,468,921 lt. At the same time, diesel consumption in 2016 exceeded 582,763 lt It was assumed that the average consumption by a petrol fuelled vehicle is 7.9 lt/100 km. 25 It was assumed that the average consumption by a diesel fuelled vehicle is 6.4 lt/100 km. 44

46 Table 13 - Total employee travel by car Petrol Diesel Total fuel consumption for business travel (klt) 1,315 1, Total fuel consumption for educational travel (klt) Total fuel consumption for travel by car (klt) 1,701 1, Total fuel consumption for travel by car(lt/empl.) In total, in 2016 employees covered more than 27.7 mn km in road travel for business and educational purposes. In addition, approximately 9,400,000 km of road travel were avoided due to the implementation of e-learning programmes (Image 14). 83,005 82, ,255 13,272 10,728 9,398 Number of electronic courses Number of trained employees Travel avoided due to e- learning programmes (x1,000 km) Image 14 - Education via e-learning Regarding air travel, a detailed record is kept for all trips made throughout the year based on data provided by the collaborating travel agency. In 2016, the employees of the Bank covered more than 5 mn km by plane. After making certain assumptions about the type of aircraft used 28, it was calculated that fuel consumption corresponds to approximately 202 t of jet fuel for Table 14 - Air travel of employees Air travel Total distance covered (km) 3,560,672 5,096,539 Distance per employee (km/empl.) Total jet fuel consumption (t) The following diagram presents the total business travel of employees of the Bank, as well as travel avoided due to the implementation of e-learning programmes. In 2016, the total distance covered reached 32,834,077 kilometres. 26 Out of which 418 klt of petrol from travel by corporate/leased cars. 27 Travel by corporate/leased diesel-fuelled cars. 28 It was assumed that the type was Β , used both in domestic flights and in flights to European countries and the Middle East, which are the destinations of the majority of travels. 45

47 Educational travel by car 53% 12% 39,623,669 km 26% 9% 63% 42,231,731 km 22% 3% 12% Business travel by car Business travel by plane Travel avoided grace to e- learning Image 15 - Total travel and the contribution of e-learning Additional quantities of fuel and energy resources are consumed during the transport of executives and employees of the Bank from their home to work and vice versa (public transport, privately-owned cars). However, there are no available data to allow for the calculation of fuel quantities used in this case. Water The water consumed in the buildings of the Bank in Greece is supplied by the corresponding water utility company of each city and is used mainly for cleaning, as well as for personal hygiene. Water consumption is considered an environmental aspect of medium significance. In 2016, water control flow faucets and dual flush toilets were installed within the framework of renovations in 35 branches. Table 15 - Water consumption indicators Water consumption Total water consumption (m 3 ) 120, ,116 Water consumption per employee (m 3 /empl.) Water consumption per unit of surface (m 3 /m 2 ) In addition, in buildings where a BEMS is installed water consumption is constantly monitored through gauges that record total water consumption. Compared to 2015, total water consumption was reduced by 8%, mainly due to reductions in the number of employees (approximately by 4%). Total water consumption per employee was reduced by 4.2% respectively. Consumables Large quantities of paper are consumed in Piraeus Bank, thus paper consumption is considered to be the second most significant aspect/impact in the operation of the Bank. To calculate paper consumption, the Bank takes into account: the procurement of paper consumables, newspaper subscriptions, paper used for marketing purposes. 46

48 The needs in A3 and A4 writing paper are almost exclusively covered by 100% recycled, Ecolabelcertified paper. Paper used in 2016 for marketing purposes was almost exclusively FSC-certified paper from sustainably managed forests. Regarding procured consumables, in 2016, apart from data exported from the BOSS application, data were collected regarding the paper and ink/toner supplied to some Organisational Units not included in the supply application 29, and aggregated data from supplying companies providing Managed Print Services (MPS) were included. Compared to 2015, a reduction was noted in total paper consumption and in paper consumption per employee, by 6% and 2% respectively. Total paper consumption exceeded 1,409 tonnes, out of which 812 tonnes were Ecolabel-certified paper, 135 tonnes were FSC-certified paper, and 462 tonnes were conventional paper. As regards printing consumables (ink and toner cartridges etc.), more than 60,000 items were procured, out of which 11,230 were refilled cartridges % 58% eco-label-certified paper 1, t 1, t conventional paper 30% 32% fsc-certified paper 12% 10% Image 16 - Paper consumption in Table 16 - Paper consumption indicators Paper Consumption Table 17 - Ink/toner cartridges consumption Ink/Toner Cartridges Consumption Total paper consumption (kg/empl.) Total number of items 64,221 60,047 Consumption of recycled paper (kg/empl.) Items per employee The use of Management Print Services (MPS) implemented in 23 buildings in order to avoid erroneous printing, as well as the new innovative service e-signature (electronic signature of documents and contracts), completed in 2016 in the Branch Networks, contributed to the reduction in paper consumption. In addition, in 2016 a new, contemporary, and pioneering service of cashier called Paperless cashier was launched as a pilot in 53 branches, promoting the elimination of paper. In 2016, it was estimated that 653,427 sheets of paper were saved (approximately 3 tonnes of paper) due to the pilot programme. The programme is planned to expand and be completed in For those, estimates were based on respective products included in the BOSS supply system of Piraeus Bank. 47

49 11.3 Environmental Impact Assessment Emission of greenhouse gases and gaseous pollutants The main sources of gaseous pollutants from the activities of the Bank are the following: Diesel consumption in buildings for heating and diesel generator sets. Electricity consumption in all Piraeus Bank buildings (indirectly). Consumption of fuel (petrol, diesel, jet fuel, etc.) for employees transport for business and educational purposes. Consumption of fuel (petrol, diesel, etc.) for employee commuting. The total amount of refrigerants containing fluorinated greenhouse gases (f-gases) added to stationary air conditioning, cooling and heat pump equipment installations. Calculation of equivalent emissions of CO 2 The calculation of the total equivalent emissions of CO2 of the Bank was based on emissions from: Direct emissions (Scope 1) the consumption of diesel for heating, the consumption of petrol and diesel by corporate cars/motorcycles, and the total amount of refrigerants containing fluorinated greenhouse gases (f gases) added to stationary air conditioning, cooling and heat pump equipment installations. Indirect emissions related to electricity consumption in the buildings of the Bank (Scope 2) the consumption of electricity in all buildings and branches. Other indirect emissions (Scope 3) employee travel for business and educational purposes by rental or privately owned car, and employee travel by plane. The following coefficients have been used: 1 for CO2, 25 for CH4 και 298 for N2O. For further details, refer to: IPCC, Fourth Assessment Report (AR4), Working Group 1, Chapter 2, Changes in Atmospheric Constituents and in Radiative Forcing, Table 2.14, p The Table below shows the total emissions of gaseous pollutants from diesel used for heating. The calculation of emissions from petrol consumption is based on the Directives of IPCC and EMEP/EEA for national emission inventories. Table 17 - Emission of gaseous pollutants due to diesel consumption Emission of gaseous pollutants due to diesel consumption CO2 (t/year) 1, CH4 (t/year) N2O (t/year) CO2,eq (t/year) 1, SO2 (t/year) NOx (t/year) PM (t/year) Electricity constitutes the key source used to cover the energy needs of Piraeus Bank. Despite the fact that electrical energy itself is not associated with the emission of gaseous pollutants in the areas it is 48

50 consumed, the sector of electricity production is considered one of the most important sources of gaseous pollutants, especially when the production of electrical energy is based on the use of mineral fuels (lignite, petrol, etc.). In Greece, electricity production entails a significant environmental impact, given the fact that: 1) in the interconnected land system of the country the production of electricity is based primarily on the use of lignite and natural gas, and secondarily on the use of petrol, hydroelectric power, and other RESs, 2) in the autonomous electricity systems of the islands electrical energy is produced mainly through oil units and a few wind and photovoltaic parks. Thus, electricity consumption in the buildings of the Bank entails the emission of gaseous pollutants at conventional electricity production stations of the Greek electricity system. Emissions resulting from electricity production are assessed based on data from the national energy balance and also emissions of greenhouse gases and other gases recorded in the annual National Inventory Report, which refers to It should be noted that in 2016 the Bank ensured guarantees of origin for 100% of electricity consumed in the building facilities of the Bank. Table 18 - Emission of gaseous pollutants due to electricity consumption Emission of gaseous pollutants due to electricity consumption CO 2 (t/year) 52, , CH 4 (t/year) N 2O (t/year) CO 2,eq (t/year) 52, , SO 2 (t/year) NO x (t/year) PM (t/year) Regarding business travel (road and air travel), emissions are considerably lower compared to those associated with electricity consumption, with the exception of CH4 (since travel by car constitutes the most significant source of emission for that pollutant) and N2O. Emissions resulting from the consumption of petrol and diesel are calculated based on the quantities of fuel consumed as well as emission factors specified in the Directives of IPCC and EMEP/EEA for national emission inventories. Table 19 - Emission of gaseous pollutants due to business travel Road Travel Air Travel CO 2 (t/year) 4, , CH 4 (t/year) N 2O (t/year) CO 2,eq (t/year) 4, , SO 2 (t/year) NO x (t/year) PM (t/year) Location-based methodology. 31 Emissions of gaseous pollutants were revised for Changes resulted from updates in emission coefficients for electricity, which are now based on new data about the composition of the energy mix in the electricity sector in the country. 49

51 Finally, in 2016, during the maintenance process of all stationary air conditioning, cooling, or heat pump systems in the buildings of Piraeus Bank, the following refrigerants were added, which contain fluorinated greenhouse gases (f gases): R-407C (hydrofluorocarbons HFCs) R-410A (hydrofluorocarbons HFCs) R-417A (hydrofluorocarbons HFCs) R-422D (hydrofluorocarbons HFCs) R-422A (hydrofluorocarbons HFCs) R-438A (hydrofluorocarbons HFCs) The table below shows the total quantities of refrigerants added in 2015 and It should be noted that the maintenance of air conditioning systems is conducted by specialised companies based on a yearly contract. The quantities of the refrigerants used per year for the maintenance of air conditioning systems are not considered significant. Table 20 - Added HFCs and equivalent emission of CO 2 Addition of HFCs (kg) CO2,eq(t) 32 Refrigerant R-407C R-410A R-417A R-422D R-422Α R-438A The Image below presents the total emission of gaseous pollutants in A small decrease by 2% in CO2 emissions per employee was noted in comparison with 2015, while the respective decrease exceeds 36% since Image 17 - Total CO 2 emissions (kg/empl.) 32 Equivalent emissions of CO2 were calculated based on Appendices II and IV of JMD 18694/

52 Liquid waste Liquid waste from the activities of the Bank is limited to urban liquid waste, waste from restrooms, office cleaning, and from water used in the heating and cooling systems of the buildings. All liquid waste from the buildings of the Bank is channelled to the respective municipal sewage networks for further processing and final disposal, pursuant to current legal provisions, since all buildings are connected to sewage networks. The total amount of liquid waste is estimated based on the total consumption of water in the Bank, assuming 5% losses (e.g. due to evaporation, etc.). Thus, in 2016 it is estimated that the total amount of liquid waste reached 105,560 m 3 and 7.55 m 3 /empl. respectively. In any case, liquid waste management is not considered a source of significant environmental hazard due to the activities of the Bank. Solid waste Solid waste from the activities of Piraeus Bank mainly includes: Paper Toner and ink cartridges Materials in electrical and electronic appliances, which are alternatively managed in an environmentally suitable manner, namely: Plastic Aluminium Heavy and other metals Glass Household waste Programmes for the collection of materials for recycling are implemented in all building facilities, while recycling bins have been placed in the buildings for paper, ink cartridges, batteries and lamps. In addition, in 15 large Administration Buildings, packaging recycling is implemented in the cafeterias. In total, more than 6,500 collections of materials to be recycled took place all over the country in The collection of paper, ink/toner cartridges, and plastic is done in collaboration with licensed companies. More than 850 tonnes of paper were recycled and about 27,500 items of printing consumables were directed for reuse/recycling (29% increase compared to 2015). Regarding the collection of paper in particular, total quantities collected from Branches for recycling increased by 17% compared to 2015, mainly due to the integration of all Branches in collection programmes (Image 18). 51

53 Warehouses Administration Buildings Branch Network Image 18 - Paper Recycling (t) For the collection of small and large batteries and electrical and electronic equipment waste (including light bulbs and lighting materials), the Bank collaborated with licensed alternative management systems. Particularly with regard to waste electrical and electronic equipment (WEEE), tonnes were dispatched for alternative management (48% increase compared to the previous year), out of which about 485 tonnes resulted from clearing storages. The diagram below presents total quantities dispatched for alternative management in 2016 per material. Paper 858 Metal 51 Batteries and Large Accumulators 10 Toners 21 Plastic 6 Electric and Electronic Equipment 529 Image 19 - Solid Waste Management in 2016 (t) Household waste is placed in municipal bins, within the Municipalities each building of the Bank is registered to, and is collected by the garbage trucks of each Municipality. Hazardous waste Hazardous waste in the Bank s areas is limited to products used for cleaning and disinfection by the respective collaborating cleaning companies contracted to perform these activities. The quantities of these materials are not significant and the personnel of the companies handles them accordingly. Thus, the issue of hazardous waste is not considered significant as an environmental aspect. 52

54 Aiming to further reduce the impact resulting from the use of cleaning products and raise awareness among staff, in 2015 an initiative was implemented for the procurement and use of eco-friendly products certified under the EU Ecolabel 33, in 6 Administration Buildings of Piraeus Bank Group: 4 Administration Buildings of Piraeus Bank in the buildings housing the administrative services of Piraeus Group Cultural Foundation and ETVA Industrial Parks SA The programme expanded in the buildings located at 5-7 Ethnikis Amynis Str. in Thessaloniki and Mesogeion Ave. in Athens. Thus, in early 2017 more than 2,100 employees used environmentallycertified cleaning products. It should be noted that all the buildings used by the Bank are free of asbestos. Noise Equipment in the buildings of the Bank does not produce significant levels of noise, internally or externally. Besides, the equipment (air conditioning, electronic appliances, etc.) undergoes regular maintenance according to the respective contracts signed between the Bank and specialised companies, dealers, etc. In relation to external noise, the refrigeration towers of air conditioning systems produce low levels of noise under normal conditions of operation. Also, given that all the buildings of the Bank operate within urban areas, it is evident that the effect of these appliances, in the context of the usual levels of noise in the external environment, is negligible. Consequently, noise is not considered a significant environmental issue in relation to the activities of the Bank, while the levels of noise in the spaces of activity fall within the respective legal limits. In any case, the necessary measures for soundproofing are being taken. Biodiversity The activities of the Bank are developed in facilities located within the urban web and thus do not have a direct impact on biodiversity. The Bank does not own building facilities within the NATURA 2000 network. 33 Ecolabel is the official EU ecological label. Marking a product with the Ecolabel logo certifies it is eco friendly throughout its entire life cycle, from the raw material used and throughout the production and distribution process, until use and disposal. 53

55 12 Green Banking The year 2016 was another year of significant political and social developments in Greece, which exacerbated the economic uncertainty. However, Greece s commitments to the EU guidelines led to modifications in the current legal and regulatory framework in sustainable development sectors, such as Renewable Energy Sources (RES), energy saving in buildings (of individuals and businesses), agriculture (via subsidies), tourism sector, etc. New standards are introduced in many sectors, such as the new model of operation in the Electricity market, where the institutional framework is adapted to meet the particularities of each technology and its introduction in the market. This model is to operate within the framework of the Energy Union promoted by the European Commission during the past few years, aiming to protect long-term financial interests of member states and to ensure the successful course towards sustainable development. Through community directives, specific eco-friendly and socially-conscious policies are promoted for member states, modifying their existing institutional framework accordingly. Piraeus Bank, through Green Banking & Development Programmes, closely monitors developments and institutional modifications both in the sector of RESs, which constitutes the biggest part of the green portfolio, and in all sectors that contribute to the promotion of a sustainable model of development, such as energy saving, proper water and waste management, organic farming, agritourism-ecotourism, green transport, and green chemistry. The priority of Green Banking & Development Programmes is to create and update loan products and to provide support to external and internal customers of the Bank. To further promote a uniform Group culture, the specialised role of the Entrepreneurship Centre Advisor was reinforced in the Branch Network. This role was created in 2010 and since then it has been the direct link between the customers of the Bank and the available opportunities in these sectors, while the Advisors are also required to stay up to date with developments in relevant sectors. Advisors participated in events and workshops organised by institutions and local business associations in order to stay updated on local issues related to green entrepreneurship and also to support local markets in these sectors. For 2017, the goal is to update services provided to customers within the Branch Network of Piraeus Bank, by further mobilising Entrepreneurship Centre Advisors, as well as to focus on promoting environmental services in priority sectors within the Greek economy, such as tourism. In addition, synergies with European institutions are set in the foreground, aiming to the possible development of new products. In 2017 it is expected that necessary processes will be completed for the new Environmental and Social Management System (ESMS) to be implemented, while the financial and technical assessment of eco-friendly investments and the confirmation of compliance with existing legal requirements relating to the operation of financed businesses also constitute ambitious goals Green Products and Services Following the changes that took place in 2015 in the institutional framework relating to electricity production from RESs and the substantial restart of the market, having overcome the suspension of financing for new photovoltaic projects in , Green Banking & Development Programmes proceeded to the creation and upgrade of existing and new loan products. Under the umbrella of the Piraeus Green Business group of products, providing financing to small and medium-sized businesses and professionals with favourable terms and through flexible procedures, another specialised green product was developed, called Net Metering. This new product highlights the benefits of energy autonomy and directs businesses towards eco-friendly technologies, such as installing photovoltaics, to achieve netting between the electricity produced and the energy used. Since 2015, Piraeus Green Business also offers the loan product Energy Upgrade, which ensures favourable terms for energy upgrades in business facilities. In addition to acquiring new equipment, businesses achieve reductions in their operating costs, increase comfort in their facilities, and implement eco-friendly practices. 54

56 Despite the adverse economic climate in Greece, all of the above prove that Piraeus Bank continued to support green entrepreneurship, and especially RES projects. In addition to green products for small and medium-sized businesses and professionals, in 2016 the Bank also financed high-capital and highcapacity projects, with emphasis on the sector of wind energy parks. These projects were assessed based on the individual features of their investment plan, for the Bank to be able to provide suitable financing tools. With regard to energy saving, in 2016 the Ministry of the Environment and Energy published additional decisions for inclusion in the programme "Energy Efficiency at Household Buildings". As a result of the new decisions, the Bank was able to service approximately 3,500 additional customer applications out of a total of 8,500 applications financed in the Greek market in This allowed for additional energy saving projects to be carried out in household buildings, adding to the projects of 13,000 customers who had been already financed until the programme ended in late It is important to note that the Bank continues to provide Green Loans to individuals on favourable terms, so that they can cover the energy needs of their household buildings (construction and/or installation of equipment), irrespective of the subsidised programme. In 2016, Piraeus Bank, in collaboration with its subsidiaries in Greece (Centre of Sustainable Entrepreneurship Excelixi SA and ETVA Industrial Parks SA), placed particular emphasis on green services. Advisory services on environmental management systems, EMAS, ISO & Green Key certifications, as well as expert studies on energy efficiency, carbon footprint, and waste and water management, were promoted by Green Banking & Development Programmes, with the participation of the Network of Branches and the Group s subsidiaries. Green services enable businesses to monitor and record the environmental impacts resulting from their activities. They highlight ways to improve business operations while offering multiple benefits, such as environmental protection through the reduction of their carbon footprint, reduction in operating expenses by upgrading equipment or improved management of their operations, enhancing reputation, etc. Businesses that operate under these certifications ensure an additional competitive advantage, since the European model increasingly requires the certification of products and services Financial and Technical Evaluation of Green Projects One of the main pillars of Green Banking & Development Programmes is the financial and technical sustainability assessment of projects related to green entrepreneurship sectors. The team of green experts assesses the new projects, scrutinising the proposed technology, the experience of the installer, the dimensions and estimated productivity of the project, etc. In addition, the viability of the projects is assessed, taking into account a variety of parameters, while the licensing process is monitored throughout the investment, in accordance with national legislation and European standards. The financial and technical sustainability assessment has been extended to re-evaluate projects that have already been financed. During the annual revision of credit limits, Green Banking & Development Programmes also reviews the projects to ensure the continued and seamless operation of the installed equipment and the productivity of the projects. At this stage, the sustainability assessment ultimately aims to prevent failures in the operation of the projects, protecting both the customer and the Bank. The total number of green projects that have been assessed by Green Banking & Development Programmes at any stage of their implementation reaches 4,000. The staffing of Green Banking & Development Programmes, combined with years of experience in financing projects with a positive environmental impact, has been the comparative advantage for the immediate implementation of the Environmental and Social Management System (ESMS). The ESMS includes the existing Environmental Management System related to the risks that may arise from the internal operation of the Bank which was certified under EMAS & ISO in 2011, and the 55

57 Environmental and Social Risk Management System, related to risks that may arise from the business activities of its financed customers. In line with the "ESMS Policy" adopted by the Bank's Executive Committee, the Group's Credit Policy has been amended and Business Credit Criteria have been enriched with new Environmental and Social Criteria. As part of the design and implementation of the ESMS, specific parameters relating to the assessment and management of the environmental and social risk of every business financing project are gradually integrated in existing loan approval processes, and will be taken into account when examining new or existing business financing projects, based on the Group Credit Policy and relevant International Standards. In 2016 the necessary modifications were made to the Bank's IT systems to automate controls. The implementation of the ESMS includes the adoption of a list of excluded activities by the Bank, a due diligence on the environmental, health, safety, and societal aspects of a project, in accordance with the national institutional framework and, in some cases, with International Standards, and finally a corrective action plan, if needed, according to a specific implementation timetable. The Bank monitors and assesses the environmental and social performance of financed projects, businesses, and organisations on a regular basis. In line with the general standards that apply for the operation and governance of a management system, in 2016 the Bank appointed the Group ESMS Officer and the Group ESMS Coordinator to coordinate the implementation of the system in Greece and in subsidiaries abroad, and will set up a Steering Committee and a Working Group to proceed with the immediate implementation of the programme. In order to monitor the environmental and social risks resulting from the business portfolio and to ensure the proper, efficient and optimal operation of the system, results (qualitative and quantitative) will be recorded at regular intervals in order to draw necessary conclusions Green Portfolio Results Piraeus Bank has adopted a detailed monitoring process of its green portfolio, and regularly marks the positive contribution of green projects to sustainable development. The goal of Green Banking & Development Programmes is to continuously inform all interested parties regarding the quantitative and qualitative data of the portfolio and its operation. At the same time, the accuracy of data is ensured through inspections by independent certified bodies. At the end of 2016, the approved limits of Piraeus Bank exceeded 1.63 bn, demonstrating its strong commitment to financing new green business projects, with an emphasis on RESs, providing financing from the early stages of the investment plan up until its completion. The total number of green customers (private and business) that received financing increased by 12% since 2015, to over 23,000 at the end of 2016, highlighting the effort of the Bank to support a large number of businesses and individuals. At the end of 2016, outstanding loan balances of the green portfolio exceeded 1.01 bn in total, with the green portfolio retaining its qualitative characteristics for yet another year. More specifically, by the end of 2016, approximately 20,700 individuals, with loan balances of more than 82.5 mn, were financed by the Bank in order to proceed with their investment. Most of them have installed more than 4,300 rooftop photovoltaic systems ( 56 mn). It should be noted that the majority of individual customers come from the "Energy Efficiency at Household Buildings" programme, which was concluded in However, in 2016, following the inclusion of additional beneficiaries in the programme by the Ministry of Environment and Energy, approximately 2,500 individuals implemented building interventions in their homes so as to reduce their energy needs. During an 56

58 adverse financial period ( ), the Bank financially supported more than 15,500 beneficiaries in their effort to implement energy saving projects and thereby reduce their household expenses. Most of the customers that received financing belonged to the low income scale, with individual income amounting to less than 12,000 or family income amounting to less than 20,000. With regard to the additional cases included in 2016, Piraeus Bank selected 3,500 applications as initially eligible, with a total budget of 40 mn. In total, according to published data on the additional qualifying decisions stage of the programme, Piraeus Bank accounted for 41% of all participations in the programme. In total, until the end of 2016, approximately 2,500 businesses were financed by the Bank to implement green entrepreneurship projects. Green financing to businesses by the units of Small Business, Business Centres, and Large Businesses exceeded 899 m. The largest part of loans was allocated to RES projects. At the end of 2016, the total capacity of projects financed by Piraeus Bank (including those already repaid) amounted to 998 MW, making up for 19% of the total installed capacity from RESs in Greece. Specifically, more than 7,400 photovoltaic systems had outstanding loan balances until the end of 2016, with the majority of them being up to 100 KW, while the total capacity of such projects (including those already repaid) reaches 515 MW. Financing of wind parks was also noteworthy, reaching a total capacity of 405 MW, or 17.1% of total wind parks operating in Greece, with outstanding loan balances reaching 256 mn at the end of The Bank has also financed 20 small hydro-electric stations, with outstanding loan balances reaching 69 mn. Finally, the Bank financed biomass/biogas projects with 47 mn, generating a total capacity of 19 MW. The total capacity of RES projects that have been financed by Piraeus Bank (outstanding and repaid) averts the annual emission of more than 2.12 mn tonnes of CO2 into the atmosphere. Table Overview Data Despite the fact that in 2016 political and social developments exacerbated economic uncertainty, Piraeus Bank Group did not cease to support the green economy, as it has been the case for more than 10 years. Through continuous financing provided to all sectors of green entrepreneurship, Green Banking & Development Programmes contributed to the creation and maintenance of 35,900 labour years (full-time employment equivalents) in (period average: 5,983 employment positions direct, indirect, and ancillary). Green Investments RES PROJECT FIGURES Piraeus Group Piraeus Bank Capacity of financed RES (MW) 1, Prevention CO2 emissions (th tonnes) 35 2,120 1, Active loan limits for RES (bn ) Outstanding loan balances from RES (bn ) Piraeus Bank Group, through the subsidiary Piraeus Capital Management (PCM), participates in Advent Group, which specialises in fuel cells, and Solid Waste Recycling SA, while the Piraeus Clean Energy 34 The 19 MW difference results from financing by Piraeus Leasing. 35 Calculations on the prevention of CO2 emissions thanks to green financing by Piraeus Bank Group are based on the average CO2 emissions rate of conventional Greek electricity plants and the average annual electricity production per RES, according to most recent data by LAGIE (Operator of Electricity Market). 36 The total amount of CO2 emissions averted was revised for 2015, due to updates in the CO2 emissions coefficient for substituting fossil fuels. 57

59 fund, which invests in the sector of energy in Southeastern Europe, has already invested in 2 RES projects. The participation of the Group in these companies reached 5.5 mn. Collaboration & participation Green Banking & Development programmes has actively participated in meetings, conferences and scientific research in Greece and abroad covering the whole spectrum of green entrepreneurship, so as to maintain open communication with market players, inform the investors about the Bank's products and services, and inform executives about new technologies and changes to the institutional framework. In addition, workshops were organised for local institutions and businesses in cooperation with local chambers and municipalities to support one of the most dynamic sectors in the country, Tourism, so as to present the opportunities offered through the Bank s products and services. 58

60 13 Communication Education Environmental education of employees The most important part of the environmental policy of the Group is the environmental education, both among employees and society in general, and it is pursued along two directions. The first direction includes all employees and is implemented via e-learning on basic environmental concepts and the environmental work of the Bank. The second direction concerns specific target groups and specific topics such as green entrepreneurship, the Bank s green products as well as the procedures of the EMAS-certified EMS of the Bank. Within this framework, in 2016 the Bank launched two new environmental programmes: a campaign informing about the EMAS-certified EMS of the Bank and a programme of eco-driving and safe road travel, which are presented in detail below. In total, in 2016, 151 Environmental Management Coordinators were trained and almost 600 people completed environmental e-learning programmes. In addition, targeted educational programmes were implemented on energy saving, renewable energy sources, solid waste and water management, and financing of such projects, but also on spreading knowledge about Green Entrepreneurship and Environmental Banking. Education was addressed to executives of the Entrepreneurship Centres, the directors and managers of branches and executives of subsidiaries. In total, educational man-hours exceeded 4,700. EMAS Campaign Piraeus Bank continuously reduces the environmental impact resulting from its operation and the contribution of staff to this end is crucial, since the EMS is implemented in the entire network of the Bank. Seeking to inform its employees and the general public about environmental management in Piraeus Bank, a respective campaign was launched in 2016 and continues in The campaign includes posters and cards placed in buildings and branches, as well as office material and an information leaflet distributed to the employees. Eco-Driving The ecological driving programme entitled Eco-Driving was implemented in 2016 and continues in 2017 in collaboration with the Centre for Renewable Energy Sources and Saving (CRES). The main goals of the programme are the following: Providing information regarding economic, safe and eco-friendly driving Raising awareness on energy saving and environmental protection in all types of transport Reducing transport costs and CO2 emissions Employees that participated in the programme had the opportunity to practise in eco-driving and see immediate results in their own cars. The programme continues in

61 Environmental News Green News uploaded on the intranet continued to inform employees in On average, 1,000 employees follow the bulletins. Employees of some subsidiaries of the Group (e.g. ETVA Industrial Parks SA, Piraeus Direct Services) also have access to "Green News". Annual Environmental Management Competition Piraeus Bank organises an annual competition to reward the branches and Administration Buildings that follow proper and responsible environmental behaviour in their everyday operation. The annual environmental management competitions constitute a significant motive for raising awareness among employees, who are rewarded for the best environmental performance of their Branches in recycling materials and energy saving. For the 6 th consecutive year, the Material Recycling and Energy Saving Competition "Green Behaviour Wins!" was completed in The staff of the branches and Administration Buildings that won received token gifts with an environmental overtone. Volunteerism and Environmental Education of Children The Bank, in order to promote volunteerism, organised in 2016 volunteer environmental actions with the participation of employees, such as the visit to the Environment Museum of Stymphalia and the volunteer tree-planting at the entrance of the village, as well as the visit to the Museum of the Olive and Greek Olive Oil in Sparta. In addition, in May 2016, the Bank organised a volunteer educational programme for the hospitalised children and the children of the employees of the Papageorgiou Hospital in Thessaloniki, in the context of the EcoWeek Events organised by the hospital. During the Christmas period of 2016, an event took place with environmental actions for the children of employees in cooperation with the American Farm School of Thessaloniki. Cooperation with Organisation Earth continued in 2016, organising awareness activities for of all ages. In total, more than 1,400 people participated in these activities, both adults and children. In the context of the European project LIFE-Stymfalia, the educational toolkit "Mission Stymphalia" was created, which contains toys and interactive audiovisual material, through which students are informed about the importance of the sustainable management of the lake, at the same time learning in an experiential way about the lake itself and the threats it faces. External Communication The platform "Think Green" operates since 2011, and has created an online community of environmentally-sensitive users on the most popular social networks (Facebook, Twitter, YouTube, and Flickr). The platform has gathered more than 33,000 friends on Facebook in six years and constitutes an invaluable source of information on environmental issues. In 2016, emphasis was placed on issues relating to biodiversity, climate change, environmental social activities, and innovative ideas in green entrepreneurship, leading to 483 related Facebook posts. Twitter followers exceeded 1,000 and related tweets reach 350. Through social media the Bank demonstrates its strong will to keep the public posted regarding environmental and social issues. More information on the environmental work of the Group is available on the website while on the webpages of climabiz and LIFE-Stymfalia users can access the progress and results of these projects. Special Websites Social Networks For the fourth consecutive year, Piraeus Bank supported an innovative channel of online communication, the Green Banking Portal ( Through this website, pioneering businesses active in the environmental sector as well as other sectors are able to promote their products/services and the good practices they implement, thus reinforcing their place in the market. In addition, the portal constitutes a means of education on the basic concepts of green 60

62 entrepreneurship, aiming to inform and raise awareness among the public on environmental issues. Thanks to the coordinated actions of Green Banking & Development Programmes, businesses in the portal increased by 60% by the end of 2016 in comparison with

63 14 Participations Distinctions Participation in International Initiatives & Corporate Sustainability Assessment Indices FTSE4Good Emerging Index Piraeus Bank is a constituent of the FTSE4Good Emerging Index, following its launch in December 2016 by the global index provider FTSE Russel Group. The FTSE4Good stock market index analyses the performance of companies with the best sustainability practices which meet internationally recognised standards of Corporate Responsibility. CDP (Carbon Disclosure Project) Since 2010, Piraeus Bank submits to the CDP data on its environmental performance and its respective actions and initiatives to tackle climate change. In 2016, Piraeus Bank s CDP rating rose by two levels to reach "Management B". Piraeus Bank is the only Greek bank to reach this level, thus proving that the Bank takes action in order to integrate climate risks and opportunities in its core business. Ethibel EXCELLENCE Investment Register Piraeus Bank has been included for another year in the Ethibel EXCELLENCE Investment Register of the Forum ETHIBEL. This selection is indicative of the Bank s constant focus on Corporate Responsibility, achieving a performance above average in the banking sector. Corporate Responsibility Index (CRI) Piraeus Bank is the first bank in Greece to receive the Diamond distinction for its Corporate Responsibility by the Corporate Responsibility Institute. Piraeus Bank participated in the Institute s annual assessment (CR Index) for the 9th consecutive year. Distinctions European Business Awards for the Environment With its entry The Expandability of a Robust Certified EMS - the Case of Piraeus Bank, the Bank was awarded first prize at a national level in the Management category for the development, structure, and operation of the Environmental Management System it implements, at the European Business Awards for the Environment, which are organised by the European Commission. With the same entry at a European level, the Bank was distinguished as one of the top 4 organisations out of 180 candidates to have made significant environmental achievements. The European Business Awards for the Environment is a prominent European institution which acknowledges European businesses that adopt policies for the protection of the environment, sustainable development and circular economy. The EMS of Piraeus Bank constitutes, according to the rating committee, a point of reference for a green bank. BRAVO SUSTAINABILITY AWARDS Piraeus Bank received a distinction in the pillar Environment (Bravo Environment) in BRAVO SUSTAINABILITY AWARDS 2017 for the Environmental Management System it implements and the European co-funded project Life-Stymfalia. These practices stood out among 278 initiatives by Businesses, Local Administration Units, and the Civil Society that participated in BRAVO Social Dialogue, which was developed at a national level along with 200 social partners and 7,000 active citizens. 62