Our Net Zero Targets

1st Greek bank to join the Net-Zero Banking Alliance

In 2023 we were the 1st Greek bank to join the UN-convened Net-Zero Banking Alliance (NZBA), the flagship climate initiative under the Principles for Responsible Banking, as a signatory.

This way we have committed to aligning with the NZBA overarching principles of setting and disclosing long-term and intermediate science-based targets to support meeting net zero by 2050.

In November 2024 we set the first round of sector targets across our lending and investment portfolios, achieving a key milestone towards our net-zero objective. Our targets are in line or below the International Energy Agency Net Zero Emissions by 2050 (IEA NZE) scenario in 3 out of 4 priority sectors. Overall, our financed emissions for the base year (2022) are lower than the benchmark, except for Cement, which starts above the IEA industry average.

Summary of targets for Power, Oil & Gas, Cement, and Iron & Steel

Sector	Exposure 2022 (€ million)	Scope of emissions	Metric	Reference scenario	Baseline year	Portfolio value (2022)	IEA value (2022)	IEA value (2030)	Our target (2030)	Reduction % (target vs baseline)
Power	1,254	Scope 1	kgCO2e / MWh	IEA NZE 2050	2022	223	460	186	132	41%
Oil & Gas	607	Scope 1,2	Indexed tCO2e of 2022 = 100	IEA NZE 2050	2022	100	100	77	74	26%
Cement	73	Scope 1,2	kgCO2e / t Cementitious product	IEA NZE 2050	2022	687	628	465	584	15%
Iron & Steel	197	Scope 1,2	kgCO2e / t Steel	IEA NZE 2050	2022	540	1,738	1,260	Intensity of portfolio to remain below the reference pathway	N/A

Our 2030 financed emissions targets per sector

Using the science-based International Energy Agency Net Zero Emissions by 2050 (IEA NZE) scenario as our benchmark pathway.

Our target

132 kgCO2e/MWh or 41% reduction in physical intensity from 2022 to 2030

Our target is below the IEA NZE in 2030, reflecting the lower starting point relative to the industry average as a result of:

The high share of renewables in our portfolio.
The ambitious decarbonisation commitments our key clients have made.

Which part of the value chain is covered

Our target covers power generation.

It does not cover other parts of the value chain, such as original equipment manufacturers (OEMs), transmission and distribution (T&D), or retailing of electricity, as we have limited exposure to those parts. This choice is in line with market practice.

Metric

kgCO2e/MWh – We have adopted a physical intensity metric.

Scope of emissions

Clients’ scope 1 emissions, capturing most emissions from electricity generation.

Our reference scenario

The IEA NZE scenario describes a pathway for the global energy sector to reach net zero CO2 emissions by 2050, driven primarily by the widespread deployment of renewable energy technologies.

Our target

26% reduction in absolute financed emissions from 2022 to 2030

Our target exceeds the 23% reduction required by the IEA NZE, reflecting the ambitious decarbonisation commitments of our key clients in the sector.

Which part of the value chain is covered

Our focus is on clients engaging in refining, as this covers most of our financed emissions in this sector.

The target does not cover other parts of the value chain, such as exploration and production (E&P), or sales and marketing, as we have limited exposure to these parts of the value chain.

Metric

tCO2e, indexed to 100 in the 2022 base year – We have adopted an absolute emissions metric.

Scope of emissions

Our target covers clients’ scope 1 and 2 emissions.

Scope 3 is excluded as a result of:

Our clients’ limited ability to influence their scope 3 emissions.
Constraints in the quality of the underlying data.

Our reference scenario

The IEA NZE scenario describes a pathway for decarbonisation of the sector through an acceleration of measures to limit emissions from operations, while increasing the supply of low carbon liquids and gases. Also, decarbonisation of refineries is expected through carbon capture, utilisation and storage technologies.

Our target

584 kgCO2e/t cementitious product or 15% reduction in physical intensity from 2022 to 2030

Our target is above the IEA NZE pathway as:

Cement is a hard-to-abate sector.
It has limited cost-effective opportunities to decarbonise by 2030.
Much of the abatement is expected to occur after 2030.
However, we will continue to engage with our key clients to support their decarbonisation efforts.

Which part of the value chain is covered

Our focus is on clients operating in clinker and cement manufacturing, which covers most of the emissions in the sector.

Our target does not include companies operating in the extraction of raw materials and construction, in line with market practice.

Metric

kgCO2e/t cementitious product– We have adopted a physical intensity metric.

Scope of emissions

Our target covers clients’ scope 1 and 2 emissions which are relevant in the production process.

Our reference scenario

The IEA NZE scenario describes a pathway for decarbonisation of the sector by:

Replacing fossil fuels with electricity or hydrogen in the production process.
Engineering carbon capture and storage solutions.
Increasing material efficiency to reduce the clinker-to-cement ratio in production.

Our target

For our portfolio intensity to remain below the IEA NZE pathway to 2030

Our starting position is well below the IEA NZE pathway with a portfolio intensity of 540kgCO2e/t Steel in 2022, compared to the IEA level of 1,737 kgCO2e/t Steel. This is because our exposure is primarily to secondary steel producers. To this end, we are not setting a quantitative target for our iron and steel portfolio.

Which part of the value chain is covered

Our target covers manufacturing and casting of iron and steel.

It does not cover other parts of the value chain, such as mining of iron ore or finished products manufacturing, as we have limited exposure to those parts. This choice is in line with market practice.

Metric

kgCO2e/t Steel – We have adopted a physical intensity metric.

Scope of emissions

Our target covers clients’ scope 1 and 2 emissions which are the most relevant in the production process.

Our reference scenario

The IEA NZE scenario describes a pathway for decarbonisation of the sector through production efficiency improvements, electrification, increases in the share of scrap-based production, and the application of technologies such as carbon capture and hydrogen.

How we defined the 1st wave of our targets

To define the 1st wave of our sector targets, we followed a 4-step approach.

Step 1: Establishing an emissions baseline

As a 1st step, we performed a comprehensive measurement of our financed emissions for 2022 covering investment and lending portfolios, across all financed sectors. Our measurement relied on the GHG emissions of our borrowers or investee companies and followed the Global Greenhouse Gas (GHG) Accounting and Reporting Standard for the Financial Industry developed by the Partnership for Carbon Accounting Financials (PCAF).

Asset classes covered include on-balance sheet exposures in listed and unlisted equity, corporate bonds, sovereign bonds, business loans, commercial real estate (CRE), residential real estate (RRE), motor vehicle loans and project finance. SMEs were excluded from the initial perimeter for target setting.

Step 2: Focusing on carbon-intensive sectors

We focused on the financed emissions within the carbon-intensive sectors recommended by the NZBA, which represent a significant opportunity to drive impactful climate action.

Step 3: Prioritising key sectors

We prioritised 4 sectors: Power Generation, Oil and Gas, Cement, and Iron and Steel. To this end, we took into consideration each sector’s materiality based on the financed emissions measurement, outstanding exposure, sectoral contribution to Greece’s emissions, the availability of credible sectoral target-setting guidance, data quality and availability, as well as the market practice.

These sectors correspond to around:

20% of our outstanding exposure, excluding SMEs and specific value chain segments.
64% of our financed emissions, excluding shipping financed emissions.

The remaining material carbon-intensive sectors will be included in a subsequent round of target-setting in accordance with the NZBA guidelines. Some sectors may be excluded from target-setting on the grounds of methodological limitations or limited materiality to our portfolio.

Step 4: Selecting the value chain

For each of the 4 priority sectors, we identified the segment of their value chain:

Which is most material to us by exposure and financed emissions.
In which our clients have the most control over their emissions.

After accounting for the appropriate value chain, these sectors correspond to around 15% of our outstanding exposure and 54% of our financed emissions, excluding shipping financed emissions.

Acknowledging risks related to achieving net zero

Progress towards net zero will depend on the policy landscape, the scale and pace of technological developments, and economic and geopolitical factors. Moreover, climate data, scenarios and methodologies continue to evolve, which may require changes in our methodology and target-setting approach over time.

With these in mind, we acknowledge that:

Our targets rely largely on our key clients meeting their decarbonisation commitments. However, we will continuously engage with them on their level of progress and commitments.
Changes in the operating and macroeconomic environment may adversely impact progress towards achieving the targets.
Physical intensity and financed emissions may change as a result of changes in data and methodology.

Promoting robust governance

Our commitment to become net zero by 2050 and our interim decarbonisation targets have been endorsed by the Group Executive Committee and approved by the Board of Directors.

To support the oversight and implementation of the financed emissions targets, we have established a robust governance process. A dedicated Working Group with representation from all key business and supporting units is engaged in driving the sustainability strategy.

As an ECB-supervised entity, we align with supervisory expectations of developing a strategy for our portfolio decarbonisation. To this end, we set science-based targets for the reduction of our financed emissions in key sectors that generate negative climate and environmental impact.

Making progress towards sustainable finance

In 2023 we defined our Sustainability Strategy which reflects our ambition across 3 pillars:

Supporting an environmentally sustainable economy.
Fostering healthy economies and societal progress.
Ensuring robust and transparent governance.

To support our climate-related objectives, we have committed to:

€4.4 billion in new sustainable financing between 2024-2026, of which at least €2.5 billion to be allocated to renewable energy projects.
Zero financing for new investments in thermal coal mining, upstream oil extraction-exploration and coal-fired electricity.

To this end, we support corporate clients leading the transition to a low-carbon economy, by offering incentives to finance economic activities included in our Sustainable Finance Framework.

Acknowledging the significant opportunities from investing in the green transition, we aspire to become a trusted partner of choice for clients making sustainable choices and contributing to a net zero economy.

ESG reporting hub

Through well-rounded reporting, we advocate transparency and accountability. We track our financial, environmental and social performance, and comply with the international standards and regulations, providing comprehensive and reliable disclosures.

FIND ESG REPORTS

On our way to meeting our net-zero goal by 2050

1st Greek bank to join the Net-Zero Banking Alliance

Summary of targets for Power, Oil & Gas, Cement, and Iron & Steel

Our 2030 financed emissions targets per sector

Our target

Which part of the value chain is covered

Metric

Scope of emissions

Our reference scenario

Our target

Which part of the value chain is covered

Metric

Scope of emissions

Our reference scenario

Our target

Which part of the value chain is covered

Metric

Scope of emissions

Our reference scenario

Our target

Which part of the value chain is covered

Metric

Scope of emissions

Our reference scenario

How we defined the 1st wave of our targets

Step 1: Establishing an emissions baseline

Step 2: Focusing on carbon-intensive sectors

Step 3: Prioritising key sectors

Step 4: Selecting the value chain

Acknowledging risks related to achieving net zero

Promoting robust governance

Making progress towards sustainable finance

Discover the ESG pillars

ESG reporting hub