Piraeus Group initiated its Climate & ESG governance structure in 2022, when it established a Board-level oversight of strategic climate-related risk and opportunity management. This governance setup allows holistic steering across ESG themes, like climate, gender diversity, society and culture, human rights, financial health and inclusion and biodiversity and it renders action for climate change and ESG a strategic priority.
The Bodies involved in the Climate & ESG governance structure are briefly described below:
- Board of Directors (BoD): Responsible for ensuring a business model, governance arrangements, including a risk management framework that considers all risks, including climate-related and environmental risks and the implications of the transition to a more sustainable economy as well as exercising effective oversight. In responding to the responsibilities, it is supported by the BoD Committees which report regularly to the BoD on issues related to their responsibilities.
- Board Audit Committee: Ensures the integrity of financial & non-financial ESG disclosures, and the effectiveness of internal controls, risk management, and Internal Audit.
- Board Risk Committee: Maintains thorough monitoring, guidance, and control over all critical risks, including climate & environmental material risk indicators, and key exposures associated with the Group.
- Board Remuneration Committee (RemCo): Ensures that the Group remuneration policy is consistent with the objectives of the Group’s business and risk strategy, including ESG risk-related objectives, corporate culture and values.
- Board Strategy Committee: Incorporates climate-related and sustainability considerations into strategic planning and long-term business objectives.
- Board Nomination Committee: identifies suitable candidates for election or replacement of BoD members and assesses the effectiveness of the BoD.
ESG Governance at Management Level
- ESG and Corporate Responsibility Committee: Aims to ensure the existence of a holistic Group ESG and Corporate Responsibility strategy with tangible and defined medium and long-term goals, while overseeing and aligning management commitment.
- The ESG and Corporate Responsibility Committee is supported by two key steering committees, each with distinct mandates and reporting lines. Both steering committees report directly to the ESG and Corporate Responsibility Committee, reinforcing a governance model that integrates sustainability oversight into the highest levels of corporate decision-making.
1. CSRD Implementation Project Steering Committee
Oversees the CSRD requirements, set strategy & priorities, monitored progress, resolved issues, and ensured effective coordination, compliance, and adequate resources.
2. C&E Risks Steering Committee
Oversees European Central Bank (ECB) Roadmap & Climate Stress Test, set strategy & priorities, monitored progress, resolved issues & ensured effective supervisory dialogue & adequate resources.