One of the solutions is the development of the Climate Risk Management Model (CRMM) which provides integrated solutions, suggesting interventions that enhance businesses’ adaptability to new climatic conditions and reduce their carbon footprint. More specifically, the Model includes a database of potential measures, used in various economic sectors worldwide, in order for a business to reduce its GHG emissions. Additionally, the Model provides some basic cost estimations for each potential intervention as well as the incurred mitigation potential in terms of GHG emissions.
Piraeus Bank, using the CRMM, was able to estimate the climate risk of its portfolio in monetary terms. It covers any risk resulting from climate change and affecting businesses: physical risks (increase of temperature, extreme weather phenomena, crop failure etc.) and regulatory risks (emission costs, fines, increase in the price of consumed energy etc.). However, it still constitutes a first effort to quantitatively estimate climate risk in Greece. With the CRMM, Piraeus Bank examined a specific sample of businesses in branches of the economy that may be adversely affected by climate change. This estimate allows an assessment of climate risk in relation to the other financial risks and enables climate risk to be integrated in a general risk management strategy for the financial sector.
Within the framework of the Climabiz project, three e-learning programmes were completed. The first one was assigned to the Bank’s Human Resources Division and was completed by 829 employees in Greece, 113 in Cyprus, 178 in Romania and 28 in Bulgaria. The second and a third part was completed and assigned to the Bank’s employees. In total, over 1,300 unique employees completed the e-learning programmes. Moreover, 19 workshops were held for green banking advisors, small business officers and credit analysts in Greece, as well as 3 workshops for the top management of subsidiaries in Bulgaria, Romania, and Cyprus with around 450 participants. Additionally, a permanent section titled “Green News”, which thousands of employees has access to, was uploaded on the intranet, with a weekly update on global news regarding climate change, the economy and the environment and also green business. The Green News also features on the intranet of the subsidiary Piraeus Bank Cyprus Ltd.
Furthermore, in total 68 small business officers, located at 68 different branches all around Greece, were trained on how to use the CRMM and how to communicate the results to clients. The small business officers approached 680 clients belonging to almost all economic sectors included in the Model. Each case study was saved in the Model and sent to the environment Unit and the green banking division, which analysed the results as regards the potential investments on energy saving, the potential cost saving and the potential reduction of greenhouse gases with the hypothesis that the majority of those investments would take place.
It is important to notice that Piraeus Bank, the Climabiz project and all associated partners successfully managed for the first time in Greece to communicate in monetary terms the impacts of climate change on economic sectors in general and specific impacts to individual business. With the implementation of this task, the main target of the project being “assisting the Greek market to adapt to climate change”, was achieved. A sample of healthy businesses of the Greek market were informed on how they were going to be affected by climate change and what were the most economically beneficial technical solutions to timely and efficiently adapt to climate change. The CRMM is in the process of being fully incorporated into the standard procedures of the Bank and become part and parcel of its credit policies. In 2013, planning was continued towards the incorporation of climate risk into the credit - rating system of Bank customers. In 2014, updating and upgrading of the CRMM was designed so that it will provide more in- depth data assessment in the agriculture and tourism sectors; this will conclude in early 2015.
In addition, the Bank is committed to measuring and continuously monitoring its environmental impacts with a view towards climate change mitigation. Environmental impacts are also defined as the Bank’s “footprint” on the environment, which is affected through the consumption of natural resources, the emission of greenhouse gasses, waste disposal etc. Indicatively, data concerning electricity, heating fuel, water and other natural resource consumption are collected annually and, by means of the Environmental Footprint Calculator Database, are applied to calculate specific indices that reflect the total environmental performance. In 2012, the Group’s environmental footprint was reduced with almost all environmental performance indices showing improvement. Since 2008, there has been an 18% per capita reduction in carbon dioxide emissions.