The GREENBanking4LIFE project of Piraeus Bank

CORPORATE SOCIAL RESPONSIBILITY The GREENbanking4Life project of Piraeus Bank Definitions CORPORATE SOCIAL RESPONSIBILITY “CSR is the voluntary commitment of businesses to also include in their business practices, social and environmental activities beyond their legal obligations and are related to those that directly or indirectly are affected by their operations”. (HNCSR- Hellenic Network CSR, Feb. 2005)  Despite of the different terms there are three points on which there is consent: 1. The voluntary character of CSR. It includes all activities that businesses implement beyond legislation. 2. The close relation to the concept of sustainable development, and 3. It should be a strategic choice of the company and not simply a secondary and temporary one.

Establishment of CSR Committee The GREENbanking4Life project of Piraeus Bank The steps internally Establishment of CSR Committee Environmental Policy approved by the Board of Directors Setting up a “green team” - Defining aims - Planning strategy and setting goals - Implementing projects - Evaluating - Reporting

Piraeus Bank CSR Committee The GREENbanking4Life project of Piraeus Bank The steps internally: CSR Committee Piraeus Bank CSR Committee The pillars of CSR: The participants: Head of CSR (also President of Cultural Foundation of Piraeus Bank Group) General Manager of Corporate Governance General Manager of HR General Manager of Business Planning and IR Division General Manager of Cultural Foundation of Piraeus Bank Group Head of Environmental Department Corporate Governance Relations with customers & suppliers Environment Culture Human Resources Society

Environmental Policy Statement (summary) The GREENbanking4Life project of Piraeus Bank The steps internally: The Board’s statement Environmental Policy Statement (summary) “Piraeus Bank, having a leading role in Greece in the market, has undertaken initiatives for the assessment, evaluation and reduction of environmental risks that are related to its operational and core business environmental impacts, while, at the same time, promotes green investments”

USA: 112.3 billion $ (12% of stability package) The GREENbanking4Life project of Piraeus Bank The GREEN NEW DEAL (1) Green markets are not at the core of the current economic crisis. On the contrary, they offer an opportunity to overcome it. This is acknowledged by many governments which recently dedicated considerable funds for the green economy as part of their stability packages. USA: 112.3 billion $ (12% of stability package) S. Korea: 30.7 billion $ (81%) Germany: 13.8 billion $ (13%) France: 7.1 billion $ (21%) UK: 2.1 billion $ (6%)

The GREENbanking4Life project of Piraeus Bank The GREEN NEW DEAL (2) The development of renewable energy (RES) responds to a series of key problems related to climate change, volatile energy prices and energy security. With or without economic crisis, humanity has still to confront climate change. Without a bold development of RES, this will prove almost impossible. The ongoing environmental awareness offers a strong base for the development of other green markets (e.g. organic farming, recycling, green chemistry products, ecobuilding, green transport, ecotourism, etc).

The GREENbanking4Life project of Piraeus Bank The GREEN NEW DEAL (3)

The GREENbanking4Life project of Piraeus Bank The GREEN NEW DEAL (4) It is estimated that over 2.5 million people are now working in the fields of renewable energy.  440,000 in wind,  200,000 in photovoltaics,  625,000 in solar thermal, and  over 1,000,000 in biomass and biofuels. Source: EWEA, 2009

The GREEN NEW DEAL (6) In conclusion: The GREENbanking4Life project of Piraeus Bank The GREEN NEW DEAL (6) In conclusion: ►Green development can guarantee job security as well as the creation of new jobs, in order to regain the momentum needed to overcome the current crisis.

R.E.S. GREEN BUSINESS ENERGY EFFICIENCY WASTE Mngmnt The GREENbanking4Life project of Piraeus Bank Green business ENERGY EFFICIENCY ECO-BUILDING, GREEN BUILDING MATERIALS, ENERGY INSPECTORS R.E.S. PV, BIOMASS, WIND, GEOTHERMAL, SOLARTHERMAL, SMALL HYDRO WASTE Mngmnt RECYCLING, COMPOSTING, etc. “GREEN” CHEMISTRY PRODUCTS NATURAL COSMETICS, BIOPOLYMERS,”GREEN” DETERGENTS, etc ECO-TOURISM AGRO-TOURISM GREEN BUSINESS ORGANIC FARMING PRODUCTION, PACKAGING, DISTRIBUTION, SALES, CERTIFICATION, etc. FINANCIAL SERVICES GREEN BANKING PRODUCTS, MUTUAL FUNDS, INSURANCE PRODUCTS, etc.

PIRAEUS BANK’S LIFE project The GREENbanking4Life project of Piraeus Bank The LIFE project PIRAEUS BANK’S LIFE project LIFE 06 ENV/GR/000375 project supported by the European Commission «Developing Green Products in the Financial Sector and Reducing Environmental Impact of Bank Services» Beneficiary: PIRAEUS BANK S.A. Partner: ECOLOGICAL RECYCLING SOCIETY, Non-profit Duration: 3 years (03/10/2006 – 02/10/2009)

PIRAEUS BANK’S LIFE project in Greece The GREENbanking4Life project of Piraeus Bank The LIFE project PIRAEUS BANK’S LIFE project in Greece LIFE 06 ENV/GR/000375 project supported by the European Commission «Developing Green Products in the Financial Sector and Reducing Environmental Impact of Bank Services» AIM: “To improve the environmental performance of Piraeus Bank and to disseminate the acquired expertise among businesses and services that are related to the Bank’s activities”

ASSESSMENT OF ENVIRONMENTAL IMPACT The GREENbanking4Life project of Piraeus Bank The LIFE project ASSESSMENT OF ENVIRONMENTAL IMPACT OPERATIONAL CORE BUSINESS MITIGATION OF ENVIRONMENTAL IMPACT AWARENESS - EDUCATION - DISSEMINATION

OPERATIONAL ENVIRONMENTAL IMPACTS The GREENbanking4Life project of Piraeus Bank The LIFE project OPERATIONAL ENVIRONMENTAL IMPACTS ASSESSMENT MANAGEMENT MITIGATION

Do banks impact the environment? The GREENbanking4Life project of Piraeus Bank Operational Environmental Impacts Do banks impact the environment?

The GREENbanking4Life project of Piraeus Bank Operational Environmental Impacts: Facts and figures Piraeus Bank S.A. Number of employees: 5.000 Buildings used: 360 branches and 15 administration buildings Surface area occupied: 200,000 m2 Energy consumption: 38,000,000 kWh Paper consumption: 900 tonnes Water consumption: 40,000 m3 Business travel by plane: 3,500,000 km Business travel by car: 9,500,000 km

The whole Piraeus Bank Group needs: The GREENbanking4Life project of Piraeus Bank Piraeus Bank Group Environmental Impacts The whole Piraeus Bank Group needs: 6,300,000 trees to absorb its 84,000 tonnes of CO2 every year! 25,000 trees to produce its paper! …let alone the rest of the environmental impacts…

Yes! Banks do impact the environment with their operation! The GREENbanking4Life project of Piraeus Bank Bank’s do impact the environment! Yes! Banks do impact the environment with their operation!

What can we do about those operational environmental impacts? The GREENbanking4Life project of Piraeus Bank Operational Environmental Impacts What can we do about those operational environmental impacts?

1. We monitor our environmental impacts The GREENbanking4Life project of Piraeus Bank Monitoring our impacts 1. We monitor our environmental impacts

Set our limits (boundary setting in space and time) The GREENbanking4Life project of Piraeus Bank Data collection Find out who is gathering the bills and receipts (find our sources of data) Set our limits (boundary setting in space and time) Manage the data

 Monitoring performance over time (2006-today) The GREENbanking4Life project of Piraeus Bank The environmental database  Monitoring performance over time (2006-today)  Monitoring performance by locality (from a region to a branch)  Monitoring material consumption, material recycling Detecting environmental problems Detecting good environmental performance  Measuring “environmental footprint” (CO2, CO, NOx, CH4, trees, water, waste)

2. We learn how to reduce environmental impacts The GREENbanking4Life project of Piraeus Bank Learn how to reduce our environmental impact 2. We learn how to reduce environmental impacts

WASTE MANAGEMENT GUIDE The GREENbanking4Life project of Piraeus Bank Environmental management guides produced by Piraeus Bank ENERGY SAVING GUIDE WASTE MANAGEMENT GUIDE WATER SAVING GUIDE TRAVEL MANAGEMENT GUIDE GREEN PROCUREMENT GUIDE

The GREENbanking4Life project of Piraeus Bank Environmental programs 3. We design and implement environmental programmes to reduce our impacts

The case of Piraeus Bank S.A. The GREENbanking4Life project of Piraeus Bank Environmental programs The case of Piraeus Bank S.A.

The GREENbanking4Life project of Piraeus Bank Clean energy  We installed photovoltaic systems in 4 different buildings of Piraeus Bank with a total capacity of 45 KW

The GREENbanking4Life project of Piraeus Bank Consuming less energy  Installation of Building Energy Management System (BEMS) in 38 branches and administrative buildings  Installation of “Remote Light Control” devices in 310 Branches

22 branches in Thessaloniki, The GREENbanking4Life project of Piraeus Bank Recycling waste Paper recycling bins: 68 branches in Athens, 22 branches in Thessaloniki, All administration buildings (2.500 employees) Battery recycling bins: 350 branches and all administration buildings Ink and toner recycling bins: 200 branches and all administration buildings Ξεκίνησε ως μία φούσκα στα στεγαστικά δάνεια, έγινε σοβαρή χρηματοπιστωτική κρίση και κατέληξε η μεγαλύτερη οικονομική κρίση που βίωσε η ανθρωπότητα εδώ και πολλές δεκαετίες. Η κρίση όμως δεν αφορά μόνο οικονομικά μεγέθη. Αφορά πρωτίστως ανθρώπους που έχασαν ή πρόκειται να χάσουν τη δουλειά τους και είναι αντιμέτωποι με μια νέα σκληρή πραγματικότητα. ► Την ίδια ώρα μία ακόμη κρίση (κατά πολλούς μεγαλύτερης εμβέλειας και διάρκειας), απειλεί τους θεμελιώδεις πυλώνες πάνω στους οποίους στηρίξαμε την ανάπτυξη εδώ και πολλές δεκαετίες. Είναι η κρίση του κλίματος, μια κρίση οι συνέπειες της οποίας υπερβαίνουν, ακόμη και σε καθαρά οικονομικά μεγέθη, την τρέχουσα οικονομική κρίση. Μέχρι σήμερα η ανθρωπότητα αντιμετώπιζε το φυσικό περιβάλλον σαν μία «ανεξάντλητη» πρώτη ύλη με «αδιάκοπη» ικανότητα να αναπληρώνει αυτά που εμείς ξοδεύουμε για τις παραγωγικές και καταναλωτικές μας πρακτικές. Το σκεπτικό αυτό, στο οποίο βασίστηκε και το αναπτυξιακό μοντέλο μέχρι σήμερα, αποδείχθηκε λανθασμένο.

The GREENbanking4Life project of Piraeus Bank Green procurement  We avoided cutting 27,000 trees by using recycled paper in the last 3 years (2006, 2007, 2008)

Sharing private transportation means The GREENbanking4Life project of Piraeus Bank Sharing private transportation means Sharing our car to go to work Reducing the travel costs Reducing the environmental impact

What have we achieved so far? The GREENbanking4Life project of Piraeus Bank Have we improved our environmental performance? What have we achieved so far?

The GREENbanking4Life project of Piraeus Bank Reducing paper consumption  We reduced our paper consumption by 9 % per employee in 2008 compared to 2007

The GREENbanking4Life project of Piraeus Bank Paper recycling  We recycled 500 tonnes of paper in the last 3 years (2006, 2007, 2008)

The GREENbanking4Life project of Piraeus Bank e-learning reduces travel  We reduced our travel for training purposes by 950,000 km in the last 2 years (2007 and 2008) by organizing e-learning courses

The GREENBanking4Life project of Piraeus Bank Reducing operational environmental impacts  We reduced our CO2 emissions by 1 % per employee in 2008 compared to 2007

Why care about our environmental performance? The GREENbanking4Life project of Piraeus Bank Why? Why care about our environmental performance?

 Clients, stakeholders and the general public The GREENbanking4Life project of Piraeus Bank Why care about our environmental performance?  Clients, stakeholders and the general public  FTSE4GOOD Index DOW Jones Sustainability Index  Accountability Index  Corporate Responsibility Report (GRI standard of Reporting) …reputation…costs…but most important of all…

CORE BUSINESS ENVIRONMENTAL IMPACTS The GREENbanking4Life project of Piraeus Bank The LIFE project CORE BUSINESS ENVIRONMENTAL IMPACTS ASSESSMENT MANAGEMENT MITIGATION

The GREENbanking4Life project of Piraeus Bank What are Green Banking Products? Green Banking Products are those that help create effective and far-reaching market-based solutions to address a range of environmental problems, including climate change, deforestation, air quality issues and biodiversity loss, while at the same time identifying and securing new business opportunities that benefit customers * * Green Financial Products and Services: Current Trends and Future Opportunities in North America, IFC Consulting Canada INC, NATF & UNEP-FI Examples: Green car loans, energy efficiency mortgages, alternative energy venture capital, eco-savings deposits, “green” credit cards, etc. These items represent a handful of innovative, “green” financial products that are currently offered around the globe. In an age where environmental risks and opportunities abound, so too have the options for reconciling environmental matters with lending and financing arrangements. Only recently have “green” financial products and services become more prevalent; and not only among smaller alternative and cooperative banks, but also among diversified financial service providers, asset management firms and insurance companies. Product development in order to promote large scale environmental protection (i.e. construction, operator models, contracting, emissions trading, etc). Product optimization in order to promote green investments (i.e. creation of “green” portfolios of customers, green car loans, energy saver loan, investigation of adding environmental risks to the usual credit risk analysis procedure, etc). 3. Environmental and sustainability ratings are concepts similar to financial rating developed to review companies on their ecological performance. These ratings enable investors to properly consider environmental factors in their decisions. 4. Marketing techniques will be examined in order to promote environmental achievements and most important encourage others to follow their example. (i.e. consulting in the sphere of environmental protection, energy saving information, how to apply an environmental management system, consulting of Small and Medium Size Enterprises). 5. Society and/or environment oriented cooperations with third bodies, namely public authorities, civil society etc. in order to jointly implement policy or field projects related to nature conservation or energy efficiency. 41

Sustainable Mortgage Loan The GREENbanking4Life project of Piraeus Bank Green Loans: Individuals Green Consumer Loan To purchase and install Photovoltaic Systems or/and Renewable Energy Power Systems for individual customers at business premises To buy and install mechanical systems at home for energy saving (for example: solar hot water system) House retrofitting for energy saving (home insulation, double glazing, external awnings) Sustainable Mortgage Loan To build/renew/buy house with energy performance ratings 42

Financing of investment plans for photovoltaic stations The GREENbanking4Life project of Piraeus Bank Green Loans: SMEs Financing of investment plans for photovoltaic stations Long term loan Bridge Facility for subsidy financing Short term loan Leasing 43

Bridge Financing for VAT The GREENbanking4Life project of Piraeus Bank Green Loans: PF Long Term Financing Bridge Facility (Medium Term Loan) for subsidy financing with pledge on the subsidy Bridge Financing for VAT 44

A review of the economic support and incentive mechanisms The GREENbanking4Life project of Piraeus Bank The process A detailed evaluation of the market for investments in the area of interest. A review of current legislation that defines the guidelines for such investments A review of the economic support and incentive mechanisms Development of framework and task force within Financial Institutions Design and formulation of GBP Decision making process for the approval of new product within financial institutions Final amendments, fine tuning, assessment of internal processes, internal communication Launching of the product- external communication Assessments of product success 45

The GREENbanking4Life project of Piraeus Bank The case of RES in Greece Many companies were interested in the new Greek Photovoltaic Market. International Companies were seeking partners in Greece. Additionally, many new Greek companies wished to play a role in this new dynamic market. There was a tremendous interest in all sections of the photovoltaic industry such as the production, distribution, installation companies as well as Banks and Insurance Companies. There have been project plans of a total power of 3,700 ΜWp that have been submitted to the Regulatory Authority for Energy (RAE). 46

The GREENbanking4Life project of Piraeus Bank The case of RES in Greece The new legislation In June 2006 as well as in January 2009, the Greek Parliament issued two laws by which a feed-in-tariff (FIT) is provided for each RES technology. The new laws offer for the first time a separate FIT for PV, which is the highest of the RES technologies. The new laws set the basic procedures for the permission of such systems. The new laws offer a FIT for domestic producers of electricity as well. 47

Incentives for the Development of GBP in RES The GREENbanking4Life project of Piraeus Bank The case of RES in Greece Incentives for the Development of GBP in RES The new tariffs, which are adjusted annually for inflation (25% of its nominal value) The FIT, which is guaranteed for 20 years The Public Benefit Programme, which supports the funds for the FIT. This programme obliges all electricity users to pay a small RES charge per kilowatt hour of electricity used that is collected by the main (and only) utility (Public Power Corporation S.A.) which goes into a special fund to support RES investments. The Tax mechanism, which provides tax credit to RES investments in home applications. The Investment Incentives Law, which offers subsidy up to 40% 48

During the development of the products, the main goals were: The GREENbanking4Life project of Piraeus Bank The case of RES in Greece During the development of the products, the main goals were: promote green investments offer a variety of solutions offer easy processes offer the lowest interest rate offer the most competitive product 49

Incorporate product into the bank’s system Reply to concerns The GREENbanking4Life project of Piraeus Bank The case of RES in Greece Incorporate product into the bank’s system Reply to concerns Use already existing processes Define the mechanisms that would support the product externally and internally 50

Product presentations around Greece to all Branch Managers The GREENbanking4Life project of Piraeus Bank The case of RES in Greece Product presentations around Greece to all Branch Managers Training Seminars to Credit Analysts Material available in intranet 51

The case of RES in Greece The GREENbanking4Life project of Piraeus Bank The case of RES in Greece 52

newspaper and magazine entries leaflets The GREENbanking4Life project of Piraeus Bank The case of RES in Greece newspaper and magazine entries leaflets information package to corporate clients participation in third-parties exhibitions roadshows for SMEs customers 53

The case of RES in Greece The GREENbanking4Life project of Piraeus Bank The case of RES in Greece 54

AWARENESS – EDUCATION - DISSEMINATION The GREENbanking4Life project of Piraeus Bank The LIFE project AWARENESS – EDUCATION - DISSEMINATION Interactive e-learning programme Interactive internet applications Special fields on the internet Participation in conferences and meetings Publication of information material Annual environmental report Presence in the Greek and international printed Electronic Media

GREENbanking4Life –Communication & Education The GREENbanking4Life project of Piraeus Bank Communication and education GREENbanking4Life –Communication & Education The experience gained by Piraeus Bank during the implementation of the LIFE project

Define target groups and means of communication The GREENbanking4Life project of Piraeus Bank Communication and education Define target groups and means of communication

Construct a website Communication and education The GREENbanking4Life project of Piraeus Bank Communication and education Construct a website

Spread the news Communication and education The GREENbanking4Life project of Piraeus Bank Communication and education Spread the news

Monitor progress Communication and education The GREENbanking4Life project of Piraeus Bank Communication and education Monitor progress Average 7,000 hits per month & 570 visitors

Educate staff through the Bank’s intranet and public though website The GREENbanking4Life project of Piraeus Bank Communication and education Educate staff through the Bank’s intranet and public though website The personal Environmental Footprint Calculator

Participate in events Communication and education The GREENbanking4Life project of Piraeus Bank Communication and education Participate in events Piraeus Bank at the 2nd international exhibition “Energy 2007, Renewable Energy Sources Management & Save Energy” The GREENbanking4Life panel in the Piraeus Bank’s pavilion at the 74rth Thessaloniki International Fair

Set up outlets to promote green business The GREENbanking4Life project of Piraeus Bank Communication and education Set up outlets to promote green business The new GREEN BANKING branch of Piraeus Bank in Athens the only in the Balkans

Hellenic-American Chamber of Commerce The GREENbanking4Life project of Piraeus Bank Communication and education Educate the public on green business Hellenic-American Chamber of Commerce

Disseminate info through leaflets The GREENbanking4Life project of Piraeus Bank Communication and education Disseminate info through leaflets

Communicate through the press The GREENbanking4Life project of Piraeus Bank Communication and education Communicate through the press Communicate through websites

Communicate environmental progress with top management The GREENbanking4Life project of Piraeus Bank Communication and education Communicate environmental progress with top management 1st meeting at the Piraeus Bank Cultural Foundation facilities 3nd meeting at the Mikro Pallas theatre 2nd meeting at the Piraeus Bank Cultural Foundation facilities

and the technical evaluation of clients’ applications. The GREENbanking4Life project of Piraeus Bank Communication and education Train managers on green business Piraeus Bank Seminar on the procedures related to the green banking products already developed and the technical evaluation of clients’ applications. Benchmarking Workshop

Educate staff through the Bank’s intranet The GREENbanking4Life project of Piraeus Bank Communication and education Educate staff through the Bank’s intranet Weekly GREEN NEWS from all over the world

Educate staff through the Bank’s intranet The GREENbanking4Life project of Piraeus Bank Communication and education Educate staff through the Bank’s intranet 500 staff visit every week

Educate staff through the Bank’s intranet The GREENbanking4Life project of Piraeus Bank Communication and education Educate staff through the Bank’s intranet E-learning programme “PIRAEUS BANK AND THE ENVIRONMENT

Educate staff through the Bank’s intranet The GREENbanking4Life project of Piraeus Bank Communication and education Educate staff through the Bank’s intranet Module I. Introduction, Climate change, Environmental Footprint Module II. Waste –Recycling Module III. Energy-Renewable Energy Module IV. Water Module V. Green procurements

Educate staff through the Bank’s intranet The GREENbanking4Life project of Piraeus Bank Communication and education Educate staff through the Bank’s intranet 600 voluntarily have participated in the e-learning programme, 11% of Piraeus Bank staff in Greece

Communication and education The GREENbanking4Life project of Piraeus Bank Communication and education

Set targets for improvement of employees’ environmental behaviour The GREENbanking4Life project of Piraeus Bank Communication and education Set targets for improvement of employees’ environmental behaviour

Create incentives to improve employees’ environmental behaviour The GREENbanking4Life project of Piraeus Bank Communication and education Create incentives to improve employees’ environmental behaviour Prize awards for recycling competition in the Bank.

ENVIRONMENTAL RESULTS The GREENbanking4Life project of Piraeus Bank Major Environmental Results ENVIRONMENTAL RESULTS  By using reclycled paper, we saved 26,000 trees in the last three years.  By recycling computers and other electronic materials (32.2 tn) we avoided wasting 8 tn glass, 11 tn aluminium and 7 tn of plastic.  By avoiding 950,000 Km of transport through e-learning, we reduced emissions of CO2 by 170 tn.  Translating Piraeus Bank’s financing in RES (€ 174,000,000, 31/12/2008) into avoided CO2 emissions, corresponds to 400,000 tn of CO2 or the equivalent of 30 million trees.

Environmental Department The GREENbanking4Life project of Piraeus Bank Contact Info PIRAEUS BANK Environmental Department 4, Amerikis Str., 105 64 Athens greenbanking@piraeusbank.gr GREEN BANKING Branch 18, Panepistimiou str., ATHENS