The Bank of Cyprus is leading the charge in ESG commitments, aiming to achieve carbon neutrality by 2030 and reduce GHG emissions by 42% from 2021 levels. Through innovative green financial products and sector-specific lending limits, the Bank is actively supporting Cyprus’s transition to a low-carbon economy while mitigating environmental risks.
What are the Bank of Cyprus’s commitments to climate action and ESG?
The Bank of Cyprus is committed to reaching carbon neutrality by 2030, reducing Scope 1 and 2 GHG emissions by 42% from 2021 levels, investing in energy-efficient technologies, and supporting Cyprus’s transition to a low-carbon economy. It offers “Green Housing” financial products, sets sector-specific lending limits, and provides green financing options to manage transition risks. The Bank also incorporates ESG Due Diligence in customer assessments and leverages geolocation data to mitigate environmental risks.
Pioneering Climate Action
The Bank of Cyprus (BOC) has become a name synonymous with progress, particularly when it comes to environmental stewardship and social responsibility. Senior ESG Analyst, Nicolas Christodoulides, emphasizes that climate change is the greatest challenge of our era. As extreme weather events become more rampant, the Bank has taken a definitive stance, aiming to retain its leadership role in the environmental, social, and governance (ESG) realms.
With the European Union’s ambitious plans to reach net zero emissions by 2050 and the need for significant emissions reductions by 2030 as per the Paris Agreement, BOC is not standing idle. The transition to a low-carbon economy is at the forefront of the Bank’s agenda. It understands that this transition entails both risks and opportunities, particularly for companies that are not yet aligned with the EU’s climate objectives.
Striving for Carbon Neutrality
The Bank of Cyprus is determined to reach carbon neutrality for its own operations by 2030. This bold initiative means tackling Scope 1 and Scope 2 greenhouse gas (GHG) emissions head-on, with a target to reduce them by 42% from its 2021 baseline. Already, energy efficiency measures taken in the past couple of years have resulted in an impressive reduction in emissions.
Looking ahead, the Bank has plotted a course for continued improvements in energy efficiency. By 2025, BOC plans to invest in further energy-efficient technologies and phase out fuel-intensive machinery, projecting a cumulative reduction in GHG emissions that is both significant and impactful.
The Bank’s commitment extends beyond its immediate operations. It is looking forward to supporting Cyprus in navigating the transition to a low-carbon economy. This is being achieved through strategic investments and the setting of transparent, measurable goals, like the recent implementation of green initiatives within its Mortgage portfolio.
Financing the Green Transition
BOC has launched innovative financial products, such as the “Green Housing” product, to encourage and facilitate sustainable practices among its customers. This solution is designed to complement the Bank’s decarbonization strategy, particularly within its Mortgage portfolio, and is in line with the Green Loans Principles.
The Bank also recognizes the inherent transition risks in certain sectors that operate under carbon-intensive models. To address this, it has established sector-specific lending limits and is actively engaging with customers to assist in their low-carbon transitions through green financing options.
In addition, the Bank has set new Green/Transition lending targets for 2024, reflecting its proactive approach to supporting a sustainable economy while simultaneously managing exposure to transition risks.
Addressing Climate and Environmental Risks
With the physical risks of climate change looming, such as the increased frequency of wildfires and floods, BOC has adopted a meticulous approach to identifying and mitigating these threats. By leveraging geolocation data, the Bank has been able to pinpoint and strategize against environmental hazards that could impact its portfolio.
In a move to standardize ESG and climate risk assessments, BOC has introduced an ESG Due Diligence process for evaluating both current and potential customers. This structured approach utilizes comprehensive questionnaires to gauge a customer’s ESG performance, further solidifying the Bank’s commitment to sustainable operations.
The Bank of Cyprus is not only adapting to the evolving demands of environmental stewardship but is also setting a benchmark for the financial industry. Its persistent efforts to blend financial success with ecological and social consciousness are indicative of a future where businesses and the environment can thrive in harmony.
What are the Bank of Cyprus’s commitments to climate action and ESG?
The Bank of Cyprus is committed to reaching carbon neutrality by 2030, reducing Scope 1 and 2 GHG emissions by 42% from 2021 levels, investing in energy-efficient technologies, and supporting Cyprus’s transition to a low-carbon economy. It offers “Green Housing” financial products, sets sector-specific lending limits, and provides green financing options to manage transition risks. The Bank also incorporates ESG Due Diligence in customer assessments and leverages geolocation data to mitigate environmental risks.
How is the Bank of Cyprus pioneering climate action?
The Bank of Cyprus is leading the charge in climate action by setting ambitious goals such as carbon neutrality by 2030 and reducing GHG emissions by 42% from 2021 levels. It is investing in energy-efficient technologies, offering green financial products like “Green Housing”, and implementing sector-specific lending limits to support the transition to a low-carbon economy. The Bank is also actively managing environmental risks through geolocation data and ESG Due Diligence in customer assessments.
What steps is the Bank of Cyprus taking towards achieving carbon neutrality?
The Bank of Cyprus has outlined a clear roadmap towards achieving carbon neutrality by 2030. It is targeting a 42% reduction in Scope 1 and 2 GHG emissions from 2021 levels and plans to invest in energy-efficient technologies to further reduce emissions. By setting sector-specific lending limits, offering green financing options, and incorporating ESG Due Diligence in customer assessments, the Bank is actively working towards its carbon neutrality goal.
How is the Bank of Cyprus addressing climate and environmental risks?
The Bank of Cyprus is addressing climate and environmental risks by leveraging geolocation data to identify and mitigate potential hazards. It has also implemented an ESG Due Diligence process to evaluate the ESG performance of current and potential customers. By setting sector-specific lending limits and offering green financing options, the Bank is proactively managing exposure to transition risks and supporting a sustainable economy.
