Eurobank’s Sustainability Strategy

The global community increasingly prioritises sustainable development and corporate responsibility as the complex and severe consequences of climate change, biodiversity loss, resource depletion and energy shocks are deeply felt by economies and societies worldwide.

With the European Union taking a leading role in securing a global agreement to scale up climate ambition and finance, its member states are committed to achieve climate neutrality by 2050, delivering on commitments made under the Paris Agreement to keep global warming well below 2•C above pre-industrial levels and trying to limit it to 1.5•C.

As stewards of capital, banks play a pivotal role in financing the transition to a greener and more sustainable economy as their lending practices, investment choices and corporate policies significantly impact various sectors as well as the broader environment. Putting sustainable finance at the heart of the financial system and reorienting private capital to more sustainable investments is key to achieving the green transition of the EU economy. In alignment with the continuously evolving ESG landscape, EU goals and regulatory requirements, banks are integrating ESG criteria into their lending, investment and operational practices as benchmarks for the evaluation of their own sustainability performance, as well as that of other players in their value chain, including clients and suppliers. ESG risks are also incorporated into their business strategies and models, internal governance arrangements and risk management frameworks. It is apparent that businesses that successfully integrate ESG considerations into their core operations and mitigate risks, despite the challenges faced, will unlock new opportunities and support the transition to a more resilient financial system and a more sustainable world.

Eurobank Cyprus considers sustainability and climate change as an opportunity in supporting the sustainable transition of the economy. As such, it is committed to investing in sustainable development and designing actions to improve its impact on environmental sustainability, social responsibility and corporate governance, in alignment with the Eurobank Group’s Sustainability Strategy. Its strategic objectives include adapting its business and operation to address climate change challenges, accommodating social needs within its business model and safeguarding prudent governance for itself and its counterparties, in accordance with supervisory initiatives and following international best practices. Eurobank Cyprus develops its Sustainability Strategy along two distinct levels of impact: the Financed Impact resulting from the Bank’s lending and investing activities to specific sectors and clients, and the Operational Impact arising from its own activities. These two pillars of impact aim to capture the essence of the Bank’s business effect on the climate, the protection of the natural environment, its contribution to addressing societal challenges at large, the prosperity of its own people, its contribution to raising business capacity in the markets where the Bank operates, and the internal processes that build and secure the confidence of its stakeholders. The Bank has developed its Sustainable Finance Framework encompassing a wide range of ESG lending sustainable financial products and services covering the Bank’s portfolios. It offers financing solutions with embedded incentives in financial terms and conditions and encourages financing or co-financing aligned with the various government and EU programmes, including the Cyprus’ Recovery and Resilience Plan, to assist our clients with their transition efforts and, in general, the transition to a more sustainable economy.

A recent report from OECD states that global warming is likely to reach 1.5°C as early as 2030, with current climate action falling short of meeting the Paris Agreement goals and an enormous risk of tipping beyond the ability of humans to adapt. The message is clear: There is no Planet B. Climate neutrality and ultimately saving the planet can be achieved only if efforts of all stakeholders at global level are in tandem. As businesses and individuals, we must recognise that our actions today will shape the world of tomorrow and it is up to us to ensure a viable future for generations to come.

By Katerina Kassoumi, Head ESG, Eurobank Cyprus

(Photo by Taspho)

(This article first appeared in the 2024 edition of The Cyprus Journal of Wealth Management, commissioned by Eurobank Cyprus and published by IMH. Click here to view the article. Click here to view the entire magazine online.)