Bank of Cyprus Credit Ratings and Financial Position slide image

Bank of Cyprus Credit Ratings and Financial Position

Substantial progress against our ESG agenda First TCFD Report Published The first TCFD report has been published by the Company, as part of its 2022 Annual Financial Report, presenting the current activities and future plans in the climate field, structured in the core elements of how organisations operate: governance, strategy, risk management and metrics and targets. Environment Governance Financed Scope 3 GHG emissions on 2022 loan portfolio (CO2e tonnes per year (mn)) 5.0 4.4 4.9 0.06 0.03 0.04 Net zero by 2050 PCAF • • Partnership for Carbon Accounting Financials The Bank joined the Partnership for Carbon Accounting Financials (PCAF) in October 2022 and is following the recommended methodology for the estimation of the Financed Scope 3 GHG emissions. Estimated the Financed Scope 3 GHG emissions for approximately 88% of Gross Loans portfolio using PCAF methodology and proxies The Bank is currently in the process to set decarbonisation targets in specific sectors and asset classes of the loan portfolio Continue to build out the green product offerings • Published the Sustainable Finance Framework 1) Score 1-5; 1 represents the highest data quality Social 1.16 5.0 Business loans Commercial Real Estate Mortgages Motor vehicles DQS: PCAF Data Quality Score1 Customers . • c.€3.62 mn fil-eco loans granted in 1Q2023 Green car loans launched end of 2022 • c.€0.56 mn granted in 1Q2023 Green Cars loans • The majority of Financed Scope 3 GHG emissions derive from Business Loan asset class The most carbon concentrated sectors under Business Loan asset class are Transportation and storage (24%), Construction (20%), Manufacturing (16%), Accommodation and food service activities (12%), and Wholesale and retail trade (10%) Decarbonisation target expected to be set for most carbon concentrated sectors of business loan asset class 29
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