Mr. Vassilis Karamouzis, General Manager of Corporate and Investment Banking, National Bank of Greece, analysed the new conditions that are emerging due to the energy and digital transition, in the framework of the Delphi Economic Forum.

Climate change, he stressed, is a reality and its impacts are rapidly changing the institutional environment for businesses and banks, as well as changing consumer preferences and habits, investor preferences based on ESG criteria, and priorities in terms of public and private projects. In this context, the Net Zero targets are related to a broader transformation of the business model of companies and banks.

The role of banks in the transition is key, Karamouzis underlined and highlighted the steps to be taken:

First, banks should formulate the appropriate framework in their business areas to give customers the necessary incentives and disincentives depending on how far they have progressed on ESG issues. The National Bank of Greece was the first to adopt a modern and sector-specific ESG criteria assessment process, while with the assistance of the Union of Banks and Tiresias, all Greek banks have since the beginning of the year adopted a common set of questionnaires to enable ESG assessment of customers based on common parameters.

Second, they are required to integrate ESG factors into their business model. Here again, the National Bank is leading the way compared to its domestic competition. By joining the NZBA (Net Zero Banking Alliance) initiative, it has committed to decarbonisation targets in priority sectors/portfolios and annual progress reporting on the achievement of these targets.

Third, banks need to finance sustainable energy in innovative ways and ideas. We need innovative financing transactions, such as the one we entered into with HELLENiQ ENERGY for up to €766 million, which is one of the largest and most innovative such deals across Europe.

Fourthly, in addition to lending, they should offer additional services that will help companies' energy transition. Here again, the National Bank will launch at the end of this month a new innovative product that will allow us to provide practically fixed electricity costs to energy producers through financial hedging instruments.

Karamouzis then referred to the critical role of digital services and embedded finance.