Strategic ESG Integration and Sustainability Reporting in the Greek Banking Sector: A Comparative Assessment

Abstract

This study investigates the integration of ESG principles in the Greek banking sector through a comparative analysis of the four systemic banks—National Bank of Greece, Eurobank, Piraeus Bank, and Alpha Bank—during 2019–2023. Using a qualitative approach based on secondary data, including sustainability reports, GRI-aligned indicators, and the ATHEX ESG Index, the research evaluates ESG performance across governance, environmental, and social dimensions. Findings highlight disparities in maturity: Eurobank and Alpha Bank demonstrate more advanced and transparent governance and environmental practices, while social indicators remain inconsistently reported. The ATHEX ESG Index is shown to enhance disclosure, though its methodology poses challenges for data quality and comparability. Results suggest that effective ESG integration strengthens resilience, transparency, and long-term competitiveness within the banking sector. However, greater standardization and innovative approaches are needed for Greek banks to align fully with international sustainability frameworks and the UN Sustainable Development Goals.

1. Introduction

Over the past two decades, the global financial ecosystem has experienced a significant shift toward sustainability, transparency, and responsible governance. Driven by increasing concerns about climate change, social inequalities, and evolving regulatory frameworks, banking institutions are now assessed not only on their financial performance but also on their environmental and social impact (Papafloratos & Fragidis, 2025). This evolution has led to the widespread adoption of ESG criteria as a multidimensional framework for evaluating corporate responsibility, resilience, and long-term value creation. As a result, banks are no longer confined to their traditional economic role but have become active agents in shaping sustainable development. Through capital allocation, risk management, and financing mechanisms, they influence environmental outcomes, social equity, and governance structures. Accordingly, ESG integration has become a core component of strategic planning within the financial sector (Manos et al., 2024).

In this context, the Greek banking sector—emerging from a prolonged period of economic crisis, recapitalization, and structural reform—has entered a new phase of stabilization and transformation. The four systemic banks in NBG, Eurobank, Alpha Bank, and Piraeus Bank—are increasingly aligning themselves with European and global ESG standards. This shift is reflected in their annual sustainability reports, ESG disclosures, and strategic initiatives aimed at enhancing sustainability performance and investment appeal. However, the degree of ESG integration, the quality of reporting, and the actual impact of these strategies remain subject to ongoing scrutiny (Papafloratos et al., 2025).

A critical question persists: Are these banks truly embedding ESG into their core governance and operations, or are they merely responding to regulatory and reputational pressures? To ensure ESG reporting is both meaningful and effective, disclosures must be measurable, and ESG performance must align with broader corporate strategy and financial resilience. This study is situated at the heart of this inquiry, aiming to critically assess the ESG strategies adopted by the four systemic Greek banks and evaluate their alignment with the ATHEX ESG Index (Lamanda & Tamásné Vőneki, 2024).

While ESG and sustainability are increasingly prominent in global financial research, focused academic studies on Greek banks remain limited. Existing research tends to either examine global institutions, focus on individual ESG pillars, or conduct single-year analyses within Greece. There is a lack of holistic, comparative assessments that track ESG progress over a longer time frame. Given that strategic planning is inherently long-term, this gap restricts understanding of how both qualitative and quantitative ESG indicators influence risk management, stakeholder engagement, and the achievement of financial objectives within Greek banks (Dicuonzo et al., 2022; Gutiérrez-Ponce & Wibowo, 2024).

This thesis has a dual objective: first, to assess the ESG strategies of the four systemic Greek banks over the five-year period 2019–2023 through the analysis of sustainability reports and key metrics; and second, to evaluate their positioning and performance on the ATHEX ESG Index, with a particular focus on transparency, strategic alignment, and reporting quality across all three ESG pillars. The goal is to offer a comprehensive analysis of ESG strategy integration in the Greek banking system, tracing its evolution, current status, and future potential. The findings aim to inform academics, policymakers, investors, and banking professionals, providing valuable insights into the state of ESG adoption while identifying new opportunities and challenges (Gutiérrez-Ponce & Wibowo, 2024).

The study is guided by the following research questions:

RQ1: How have the four systemic Greek banks integrated ESG principles into their strategic and operational frameworks between 2019 and 2023?

RQ2: What are the key trends, similarities, and differences in ESG performance across these banks during this period?

RQ3: How do these banks perform on the Athens Stock Exchange ESG Index, and what does their respective position indicate about their sustainability maturity?

RQ4: To what extent have ESG strategies affected the financial performance, regulatory compliance, and stakeholder credibility of these banks?

Despite growing interest in sustainable finance, the existing literature on ESG within the Greek banking sector reveals several important gaps. First, there is a limited number of multi-year comparative studies that track ESG evolution across Greek financial institutions. Most available analyses are cross-sectional or institution-specific, lacking the temporal depth required to capture shifts in ESG maturity, strategic alignment, or market impact over time. This restricts insights into long-term progress or cyclical patterns of ESG integration in response to regulatory or market changes. Second, there remains a notable absence of holistic methodologies that integrate both quantitative indicators (e.g., ESG scores, carbon disclosures, financial ratios) and qualitative factors (e.g., governance narratives, stakeholder perceptions, policy frameworks). Without such integrative frameworks, researchers and practitioners may overlook critical contextual dimensions or fail to detect subtle correlations between ESG performance and organizational strategy. Third, the link between ESG integration, financial performance, and stakeholder trust is underexplored in the Greek context. While international literature increasingly supports positive associations between ESG practices and firm resilience, empirical studies assessing whether similar dynamics apply in Greece—especially in a post-crisis banking environment—remain scarce.

To address these gaps, this study focuses exclusively on Greece’s four systemic banks—National Bank of Greece, Eurobank, Alpha Bank, and Piraeus Bank—since they represent the entire systemic segment of the country’s financial sector and exert the most significant influence on ESG performance trends. The period 2019–2023 was selected because it captures the critical phase of implementation for major European ESG regulatory frameworks, including the EU Taxonomy and the Sustainable Finance Disclosure Regulation (SFDR). By conducting a multi-year, comparative analysis grounded in both quantitative ESG indicators and qualitative insights, this study contributes a unique and comprehensive perspective to the evolving discourse on sustainable banking in Greece. It fills a vital gap by offering a strategic, sector-wide assessment of ESG integration over time—informing both academic inquiry and policy development in the context of the Greek and broader European financial landscapes.

2. Literature Review

2.1. Theoretical Background of ESG in Banking

The concept of ESG—Environmental, Social, and Governance—refers to a set of non-financial performance indicators used to assess the ethical impact and sustainability of investment in a business or sector. Originally emerging from the broader discourse on CSR, ESG has evolved into a more structured framework aimed at identifying risks and opportunities that are not typically captured through traditional financial analysis (Friede et al., 2015).

Environmental criteria consider how a company performs as a steward of the natural environment, addressing issues such as carbon emissions, climate change resilience, energy efficiency, waste management, and resource conservation. Social criteria examine how it manages relationships with employees, suppliers, customers, and the communities where it operates—covering aspects like labor practices, diversity, human rights, and consumer protection. Governance relates to leadership, executive pay, audits, internal controls, shareholder rights, and board diversity and structure (Kotsantonis et al., 2016).

The term ESG was popularized in a 2005 landmark report titled “Who Cares Wins,” initiated by the United Nations Global Compact, which called for integrating ESG factors into capital markets. Since then, ESG has transitioned from a voluntary and reputational concern to a central component of risk management and regulatory compliance, especially within the financial sector. The 2008 financial crisis served as a turning point, reinforcing the significance of governance practices and stakeholder accountability. More recently, climate-related risks and the COVID-19 pandemic have accelerated the momentum for embedding ESG principles across industries.

In the banking sector specifically, ESG is no longer peripheral but integral to how institutions assess credit risk, comply with regulatory requirements, and meet stakeholder expectations. Banks are increasingly recognizing that long-term financial performance is intrinsically linked to sustainability practices, not only for reputational reasons but also to ensure regulatory alignment and future-proofing their operations (Cantero-Saiz et al., 2024).

Building on the foundational understanding of ESG criteria, their role within financial services—particularly in the banking sector—has become increasingly critical. As gatekeepers of capital allocation, banks play a pivotal role in steering economic activities toward sustainable and responsible practices. ESG considerations are no longer ancillary metrics but are now seen as core components of a bank’s strategic orientation and operational framework (Marei et al., 2024).

Banks influence ESG outcomes both directly, through their own governance and environmental footprint, and indirectly, through the investment and lending decisions they make. Integrating ESG into financial services allows institutions to better assess long-term risks and opportunities, especially those linked to climate change, social inequality, and governance failures. This approach aligns financial performance with sustainable development goals, ensuring that financial intermediation supports resilient and inclusive economic growth (Zhou et al., 2025).

From a risk management perspective, ESG factors are increasingly viewed as material risks that can affect creditworthiness, asset valuations, and overall financial stability. For instance, environmental risks like extreme weather events or regulatory changes on carbon pricing can significantly impact the financial viability of clients, especially in carbon-intensive sectors. Similarly, social and governance failures—such as labor violations or corruption—can pose reputational and compliance risks that erode stakeholder trust (Luo et al., 2025).

Moreover, ESG integration enhances banks’ transparency, accountability, and stakeholder engagement. Investors, regulators, and customers are demanding greater visibility into how financial institutions contribute to sustainable outcomes. In response, many banks have begun embedding ESG factors into their credit risk models, investment strategies, and product offerings, such as green bonds and sustainability-linked loans (Kalyanam, 2025). In this context, ESG is not merely a reporting obligation but a strategic imperative. Its relevance continues to grow as global regulatory trends, such as the SFDR and the CSRD, push financial institutions toward more rigorous ESG disclosures and integration.

As ESG becomes embedded in the strategic vision of financial institutions, the focus has shifted from merely recognizing its importance to actively integrating ESG principles into banking operations and governance structures. This strategic integration involves aligning ESG considerations with core business functions such as credit underwriting, investment evaluation, compliance, internal audit, and board-level decision-making.

Banks are developing internal ESG frameworks that not only guide their lending and investment practices but also ensure alignment with international sustainability standards and regulatory expectations. Many institutions are setting up dedicated sustainability committees, appointing CSOs, and incorporating ESG metrics into executive compensation schemes. This institutionalization of ESG within governance mechanisms reflects a shift from compliance-driven action to value-based management (Azmi et al., 2021). Furthermore, this integration enables banks to more effectively manage emerging risks while capitalizing on opportunities such as financing the green transition or investing in socially responsible enterprises. It ensures that ESG is embedded in the risk appetite, culture, and long-term strategy of the bank (Valavan, 2024).

Crucially, this strategic embedding underscores ESG’s role as a driver of long-term value creation and risk mitigation. Institutions that adopt robust ESG practices tend to outperform their peers over time, enjoying greater stakeholder trust, reduced reputational and regulatory risks, and improved operational efficiency. ESG-driven policies support resilience in times of crisis, enhance credit quality, and open access to sustainable finance markets (Kalyanam, 2025).

By proactively addressing ESG risks—such as climate exposure, social unrest, or governance lapses—banks can reduce the likelihood of future shocks. Simultaneously, by aligning their strategies with ESG trends, they position themselves to attract ESG-conscious investors and clients, thus gaining competitive advantage in a rapidly evolving financial landscape.

2.2. ESG Framework in the Banking System

The integration of ESG considerations into the banking system is underpinned by a growing body of regulatory frameworks and voluntary standards that shape how financial institutions assess, manage, and disclose sustainability-related risks and opportunities. At the international level, key initiatives such as the UN PRB and the Principles for UN PRI provide a foundational ethos for embedding ESG into banking strategies and client engagements. These frameworks promote responsible lending, investment practices, and stakeholder accountability aligned with the UN SDGs. Complementary standards such as GRI and SASB offer detailed guidance for ESG reporting, helping banks standardize disclosures and demonstrate their commitment to transparency and comparability across markets. Furthermore, the TCFD provides a globally recognized structure for climate risk reporting, increasingly adopted by banks to address investor demands and climate stress testing requirements (Sneideriene & Legenzova, 2025).

At the European level, regulatory frameworks have intensified in both scope and precision, directly targeting the banking sector’s role in the transition to a sustainable economy. The EU Taxonomy for Sustainable Activities establishes a classification system for environmentally sustainable investments, offering clarity to banks on what qualifies as green financing (EU Legislation, 2018). The CSRD, which updates and expands the earlier NFRD, mandates detailed and standardized ESG disclosures for a broader range of financial institutions, with particular emphasis on double materiality—the impact of ESG risks on the bank and the bank’s impact on society and the environment (Giannetti et al., 2023). In parallel, the SFDR compels banks acting as asset managers or financial advisors to disclose how they integrate sustainability risks into their investment decision-making processes. Collectively, these frameworks not only enhance the accountability and comparability of ESG practices in banking but also pressure institutions to embed ESG at the core of their risk management, governance, and product development strategies. Compliance is no longer optional; it is increasingly becoming a prerequisite for market credibility, regulatory approval, and long-term resilience (Galletta et al., 2024).

Despite the progress in formalizing ESG frameworks, their implementation within the banking sector remains complex and uneven. One of the key challenges lies in the fragmentation and variability of ESG data, which hinders consistency in disclosure and comparability across institutions. Banks often rely on third-party ESG rating providers whose methodologies lack transparency and alignment, leading to divergent assessments of the same entity (Saviano et al., 2024). Additionally, the coexistence of multiple overlapping frameworks—voluntary and regulatory—can create compliance fatigue and strategic ambiguity, particularly for cross-border institutions navigating different jurisdictional requirements. Scholars also highlight concerns around “greenwashing,” where ESG claims may be exaggerated or inadequately substantiated, partly due to the absence of a universally enforced auditing mechanism. Moreover, smaller, and mid-sized banks often lack the internal resources and expertise to meet complex ESG reporting demands, which may widen the gap between leaders and laggards in sustainable finance. These limitations suggest that while ESG frameworks are essential to shaping responsible banking, their effectiveness ultimately depends on harmonized standards, supervisory clarity, and capacity building within financial institutions (Sneideriene & Legenzova, 2025).

Empirical Studies

Each banking institution deals with issues relating to the environment, society, and governance in a different way. The expectations of stakeholders also vary. Banks often show more interest in environmental and governance issues because they operate in a highly regulated environment with a large number of stakeholders and a strong interest in the funds they hold. The pressure to deliver financial benefits is strong and, in the event of liquidity problems, they come under state supervision, drawing on taxpayer money. For these reasons, they need to be particularly careful in how they manage ESG issues.

According to (Friede et al., 2015), the banking sector is particularly interested in this issue, as there is a strong correlation between the ESG policies implemented and the performance of their financial indicators. This relationship is becoming increasingly interesting worldwide, according to (Buallay, 2020; Azmi et al., 2021). Furthermore, the results of these studies show that, depending on the empirical method used, there may be no positive correlation between these two variables if a simple economic analysis is performed that does not take into account more complex parameters.

According to (El Khoury et al., 2023), the relationship between ESG indicators and economic performance has been explored both linearly and logarithmically in the international literature. One relationship that has been studied is that between corporate governance and financial stakeholders, which is presented as positive. On the other hand, it is shown that corporate responsibility, when related to policies concerning diversity management and human rights, does not necessarily improve commercial value. Furthermore, the same is true for social responsibility, which, despite its impact on social capital, can have a negative effect on the availability of resources, as the cost of such investments may not pay off in the long term.

The study of the linear correlation between ESG and the financial performance of banks has produced conflicting conclusions. For example, Cornett et al. (2016) have stated that environmental actions have a positive impact on bank performance. In contrast, Ersoy et al. (2022) show that there is no relationship between ESG policies and financial performance (Buallay, 2019) also does not support the view that ESG practices have a material effect on banks’ financial performance. However, he studies this relationship separately in the three areas of environment, society, and governance, and shows that environmental actions have a positive effect on ROA but a negative effect on ROE. The final conclusion of the study is that larger banks perform better when implementing ESG practices, as they have more resources to manage, enabling them to invest in higher quality solutions.

Buallay et al. (2021) conducted a survey of 882 banks in developing and developed countries and found that after 2008, ESG practices adopted by the banking sector affected accounting results in developed economies. However, the performance of these banks was weakened. In addition, Ersoy et al. (2022) examined 176 commercial banks in the US during the period 2016–2020, taking into account the COVID-19 pandemic. The impact of ESG practices was not found to be significant. Other studies, such as those by (Azmi et al., 2021) and (El Khoury et al., 2023), showed that there is a small impact on market performance and that when no significant resources are committed, the positive effect is more significant. Similarly, Menicucci and Paolucci (2023) presented a study correlating ESG pillars with the financial performance of banks, focusing on the Italian banking system. His findings showed that environmental protection policies have a positive impact on financial performance indicators such as ROA and ROE. These results are important as they are consistent with stakeholder theory, which states that sustainable development and environmental protection policies improve the economic position, offer a competitive advantage to companies, and have a positive impact on corporate profitability.

2.3. ESG in the Greek Banking Sector

2.3.1. Institutional Framework

The trend towards adapting business models to policies related to the above areas, environment, society and governance, is based on the evolution of the institutional framework in Greece, in line with the organizations, associations and agreements at global and pan-European level, which in turn influence domestic legislation and the regulatory framework. According to Agenda 2030, there are 17 SDGs for climate change management and global prosperity, which describe CSR practices that should be aligned with society’s values. In addition, the Paris Agreement on climate change, which Greece has signed, imposes legal obligations to reduce carbon emissions.

A key factor is the European Union’s environmental policy, which requires the adoption of business models with a low carbon footprint in business activities. Based on the above, the following have been published at European level guidelines on the disclosure of information and updates, other than financial information, relating to sustainability and ESG implementation guidelines on sustainable investment, as well as sustainability reporting, especially by listed companies, with a view to extending this to smaller companies.

In Greece, Law 5066 was introduced in 2023, concerning the disclosure of non-financial information by large companies on environmental and social issues (Law 5066/2023) (KPMG, 2023). In addition, the Corporate Governance Code creates a framework for compliance with governance issues by providing guidelines for good practices (Law 4706/2020) (Government of Greece, 2020).

In order to distinguish the performance of each company, there are various ESG indicator assessment systems, which, however, are not considered universally accepted and reliable (Dikau & Volz, 2021). They are assessed either by their impact on the company’s financial performance or by their footprint on the environment and society. The indicators are coded using three digits, two letters, and a number. The letters correspond to the category (C-basic, A-advanced, SS-sectoral), the pillar (E-environment, S-social, G-governance), and the third is the index’s serial number. However, the calculation method is not uniform for each indicator. In general, the basic reference frameworks that define the assessment of ESG indicators are the SASB and the GRI, which provide essential ESG information (Timmerman et al., 2020).

In the Greek banking sector, banks listed on the Athens Stock Exchange have proposed that companies should follow the reporting standards of the GRI, UNGC, IIRC, CDP, SASB, TCFD, and the Greek Sustainability Code. In addition, they should disclose corresponding non-financial information (Andrikopoulou et al., 2022).

2.3.2. Application of ESG in the Greek Banking Sector

The implementation of ESG practices in the Greek banking system began with compliance with the relevant principles established for this purpose. An important body is the NGFS (Martiny et al., 2024). This network aims to ensure the Paris Agreement through the banking sector and the promotion of funds for this purpose. In addition, the six Principles for Responsible Banking (e.g., stakeholders, governance, etc.) provide a framework to ensure that the strategies implemented by banks are consistent with the UNEP and the sustainable development goal, an initiative in which all four Greek systemic banks participate (Kotzaivazoglou et al., 2023). Greek banking institutions also participate in the global Net-Zero Banking Alliance agreement, which aims to achieve a zero-carbon footprint by 2050, strengthen sustainable development investments, and practice responsible banking (Maio et al., 2022).

In Greece, the institutional framework for banking institutions is Law 4734/2020, which lays down provisions for combating money laundering and incorporates the relevant European legislation, directives, provisions, and recommendations (Miralles-Quirós et al., 2019). Under this framework, banks must follow a new business model that focuses on transparency in decision-making, trust, cooperation, and ESG principles. In particular, ESG is now an evaluation criterion for investors, and rating based on these criteria is an important process for limiting credit risk. The inclusion of ESG in an investment is a basic prerequisite for the sustainability of the bank financing the investment. This statement is confirmed by a study, which, after studying 135 banks, found that only 12% include sustainability targets, affecting their financial stability (Dikau & Volz, 2021). Nevertheless, as stated by (Dikau & Volz, 2021), 74% of banks worldwide apply sustainability standards and rules in accordance with international standards.

In addition, the banking sector offers its customers socially responsible investment products and socially responsible investments for investors seeking financial performance and a positive impact on society and the environment. These products can be bonds or exchange-traded funds and are aimed at customers who want to align their investments with their personal values and support sustainable development. In general, SRI financing has multiple benefits, including reduced exposure to environmental and social risks, increased transparency, and better alignment with the values of customers and suppliers (Eurosif, 2018).

The comparative assessment of banks, according to the framework set out for the GRI, states that the GRI does not contribute to sustainable development goals. Financing is an essential pillar of ESG risk assessment, and increasing pressure from risks requires the creation of a financial risk. The need for a stable and sustainable financial system (Zioło et al., 2021) will only be improved by raising awareness among managers and financial institutions.

2.3.3. ESG Indices

ESG indices serve as pivotal tools in aligning bank investment and lending practices with sustainability objectives, acting as benchmarks for both investors and financial institutions. By measuring performance across environmental, social, and governance dimensions, these indices enable banks to position their portfolios toward companies demonstrating robust sustainability practices. For capital markets, ESG indices support the creation of ESG-linked financial products such as green bonds and sustainability-themed funds, while simultaneously pressuring firms to enhance ESG transparency and accountability (Mandas et al., 2023).

At the core of most ESG indices is a structured methodology combining both quantitative and qualitative data. Leading global index providers—including MSCI, FTSE Russell, S&P Dow Jones, and Bloomberg—use multifactor scoring systems. For example, the FTSE4 Good Index Series applies over 300 indicators across 14 ESG themes, including pollution, labor standards, risk management, and anti-corruption, with strict thresholds and exclusion criteria for controversial businesses such as weapons and tobacco (Index Industry Association, 2022). These methodologies seek to ensure consistency and credibility by employing rules-based scoring, regular rebalancing, and periodic reviews.

The ATHEX ESG Index, introduced in August 2021 by the Athens Stock Exchange, offers a benchmark for Greek issuers that demonstrate robust ESG practices—based on data aligned with the voluntary ATHEX ESG Reporting Guide. Initially selecting 35 firms, the index grew to 60 constituents by June 2023, reflecting Greece’s growing adoption of ESG standards among listed companies. Its intent is to promote transparency and encourage firms to disclose ESG information systematically, thus aligning issuers with both EU regulation and investor expectations (ATHEX Group, 2023b).

Central to the index’s methodology is the “ESG Transparency Score”, an evaluative metric based on each issuer’s level of disclosure across the ESG guideline’s specified indicators. Firms must publish sustainability or ESG reports and score at least 30% on this metric to be eligible. Rankings are determined by multiplying free-float market capitalization with this transparency score, followed by capping each constituent at a 10% weight limit within the index pool (Aydoğmuş et al., 2022). To ensure regular relevance, the index undergoes a semi-annual review and rebalancing process (in May and November), during which constituents must re-confirm eligibility and scores are updated. This ensures dynamic alignment with evolving ESG performance and disclosure behaviors. This cadence reinforces investor trust and encourages continuous reporting improvements.

A key methodological strength lies in the rigorous design of the transparency score, which currently evaluates up to approximately 52 metrics (spanning 86 data points) across environmental, social, governance, and reporting categories. Higher weight is assigned to external assurance of ESG disclosures, active governance systems, and the presence of sustainability policies—all contributing to a higher transparency score. In effect, the index methodology incentivizes not just disclosure, but credibility and process maturity (ATHEX Group, 2023a).

Finally, while the ATHEX Index enhances ESG visibility and capital market access for issuers, its real-world impact depends on how investors, banks, and regulators leverage this information. Emerging academic studies—including content analysis of the 60 firms—highlight strong uptake of GRI, UNGC, ISO, and ATHEX-aligned standards across sectors. However, interpretative caution is advised: comparative scoring methodologies remain relatively opaque and may not translate into consistent financial outperformance or risk mitigation without deeper alignment across institutional decisions (Brown et al., 2009).

Despite growing interest in sustainable finance, the existing literature on ESG within the Greek banking sector reveals several important gaps. First, there is a limited number of multi-year comparative studies that track ESG evolution across Greek financial institutions. Most available analyses are cross-sectional or institution-specific, lacking the temporal depth required to capture shifts in ESG maturity, strategic alignment, or market impact over time. This restricts insights into long-term progress or cyclical patterns of ESG integration in response to regulatory or market changes.

Second, there remains a notable absence of holistic methodologies that integrate both quantitative indicators (e.g., ESG scores, carbon disclosures, financial ratios) and qualitative factors (e.g., governance narratives, stakeholder perceptions, policy frameworks). The fragmented treatment of ESG data inhibits comprehensive evaluation of banks’ sustainability profiles and impedes consistent benchmarking within and across institutions. Without such integrative frameworks, researchers and practitioners may overlook critical contextual dimensions or fail to detect subtle correlations between ESG performance and organizational strategy.

Finally, the link between ESG integration, financial performance, and stakeholder trust is underexplored in the Greek context. While international literature increasingly supports positive associations between ESG practices and firm resilience, empirical studies assessing whether similar dynamics apply in Greece—especially in a post-crisis banking environment—remain scarce. This gap is particularly significant, as stakeholder trust is a vital component of banking legitimacy and long-term profitability. Understanding how ESG efforts influence customer confidence, investor engagement, and institutional credibility could unlock strategic insights for banks navigating a transition to more sustainable and transparent business models.

This study focuses on the four systemic banks, Piraeus Bank, National Bank of Greece, Alpha Bank, and Eurobank, which have joined the above framework for the disclosure of non-financial information and the integration of non-financial factors into traditional investment strategies and credit ratings. For this reason, each year they submit a sustainability report in accordance with GRI standards, including turnover and expenditure ratios, investment characteristics, and the percentage of investments that comply with sustainability and environmental protection guidelines. The key priorities of all Greek systemic banks are to reduce energy consumption, protect the environment, and assess each financing from an environmental risk. For this reason, the relevant environmental terms are incorporated into all banking contracts with customers. The financing of RES is also important, taking into account the assessment and opinion of the relevant authorities and assessors for the purpose of evaluating and monitoring environmental risks.

The four Greek banks also participate in actions related to their impact on society. One of the ways in which the banks’ social profile is highlighted is through their support for young entrepreneurs through European programs and financing, and the suspension of payments on outstanding loans for households and businesses affected by economic crises. In addition, banks are carefully studying customer satisfaction by conducting relevant surveys and striving to improve the services they provide to customers. With regard to their human resources, all Greek banks are providing special incentives to enable their staff to achieve the required results. These measures focus on financial incentives, health and safety at work, family support, and continuous training to acquire additional skills and certifications. In the area of corporate governance, banks focus on protecting their customers by providing them with continuous information and protection for their transactions, contract terms, product reliability, personal data protection, and ongoing communication. Corporate governance is generally in line with the national legal framework and European and global rules as defined by the organizations in which the country and the banking system participate (Koutsoukos et al., 2020).

In order to ensure their adaptation to the modern and constantly changing global environment, banks set up regulatory committees that define activities and guarantee the transparency of procedures and operational efficiency. They constantly update their policies to comply with current regulations and legislation, including environmental protection and climate change adaptation. These policies are taken into account in decision-making to improve ESG performance in conjunction with financial performance. At the same time, the business and investment ecosystem focus on sustainability and ESG indicators and reinforces the corresponding actions, which Greek banks take into account in order to coordinate their actions and strategy (Soras & Christopoulos, 2024).

3. Methodology

This study employs a qualitative, comparative research design grounded in secondary data sources. The analysis focuses on ESG integration in the Greek banking sector by examining sustainability reports, ESG performance indicators, and ATHEX ESG Index ratings for the period 2019–2023. The methodology includes four key components: (1) content analysis of ESG and sustainability reports; (2) identification and comparison of ESG metrics across environmental, social, and governance pillars; (3) assessment of alignment with the Athens Exchange ESG Index and GRI standards; and (4) interpretation of qualitative strategies and governance models. This integrated approach provides a multidimensional view of how ESG practices are adopted and reported by Greece’s systemic banks.

The study analyzes the four systemic banks in Greece: National Bank of Greece, Eurobank, Piraeus Bank, and Alpha Bank. These institutions were evaluated based on the policies and practices implemented across the three ESG pillars. For each pillar, key quantitative and qualitative indicators were extracted from publicly disclosed reports and evaluated in accordance with GRI benchmarks. To ensure the consistency and comparability of the data across the four banks, all ESG indicators were sourced exclusively from each bank’s official annual sustainability or ESG report, all of which adhere to the GRI guidelines and the ATHEX ESG Reporting Guide. Despite differences in reporting formats and granularity, we focused on indicators that were commonly disclosed and comparably defined. Where variations in reporting units or definitions existed, we applied standardization and normalization techniques to align the metrics for comparative purposes. Additionally, indicators selected for comparison were cross-validated using the ATHEX ESG Transparency Score framework, ensuring alignment with accepted disclosure benchmarks and enhancing the reliability of cross-institutional evaluation. The analysis also considers financial metrics such as turnover, capital expenditure, and the proportion of investments classified as sustainable or environmentally responsible.

In the environmental pillar, the metrics assessed include direct and indirect emissions, total energy consumption and production (MWh), the percentage of financing allocated to green projects, total waste generated, waste sent for recycling, and the proportion of recyclable waste. Furthermore, the study examines each bank’s climate risk management strategy, disclosures on climate-related risks, and final investments in environmentally focused initiatives.

Under the social pillar, the analysis includes stakeholder engagement practices, board gender diversity, and inclusion policies for individuals with disabilities. Additional variables include customer satisfaction, complaint volumes, dispute resolution mechanisms, product and service diversity, consumer protection policies, and life cycle assessment of banking products. Employment-related practices are also examined, including staff mobility (transfers and secondments), training budgets, human rights commitments, and collective labor agreements. The banks’ social outreach is evaluated based on supplier evaluation policies and investments in social integration, healthcare, and education programs.

For corporate governance, the study considers board composition, the proportion of independent non-executive directors, frequency and structure of board meetings, term lengths of board members, and the linkage between executive remuneration and sustainability targets. Other governance indicators include transparency of remuneration policies, access to ESG-related information, complaint and whistleblower mechanisms, anti-corruption policies, oversight of sustainability issues, identification of material ESG issues, business ethics, and data security policies.

The second part of the analysis focuses on the ATHEX ESG Index, which ranks listed companies based on performance in the three ESG dimensions and the Transparency Score. Each bank’s alignment with the index’s eligibility criteria was assessed, including both data disclosure and substantive ESG performance. The final step involved a comparative evaluation of the four banks to determine which institution demonstrates the strongest ESG profile and whether this correlates with its financial performance. Ultimately, this methodological framework aims to assess not only formal compliance with the ATHEX ESG Index but also the extent to which ESG integration supports broader institutional and economic outcomes in the Greek banking sector.

To further strengthen the contextual validity and comparability of the findings, the descriptive results of this study were benchmarked against the indicators and governance trends reported by the Hellenic Observatory of Corporate Governance (HOCG, 2024). The HOCG publishes periodic national reports evaluating the governance maturity, transparency practices, and ESG disclosure performance of Greek listed companies. While the current analysis focuses exclusively on the banking sector, aligning selected indicators with HOCG’s publicly available data provides a valuable national reference point. This benchmarking process allows the study to situate its findings within the broader trajectory of corporate governance and ESG development in Greece, as captured in the HOCG’s recent publications.

4. Results

4.1. Five-Year Performance Comparison

4.1.1. Performance on the Environment Index

Taking into account the ESG indicators resulting from the analysis of the ESG reports of the four systemic Greek banking institutions for the five-year period 2019–2023, particularly interesting findings emerge concerning quantitative data on CO₂ emissions, energy consumption, waste, and qualitative data such as sustainability policies, ESG strategies, and transparency policies. The analysis of the results includes the key points investigated in the environmental and social dimensions, as well as in relation to corporate governance.

Table 1. Environmental Comparison for the five-year period 2019–2023.

Environment
Bank	Direct Emissions (in Tons of CO2)	Indirect Emissions Energy	Energy Consumption (MWh)	Production (MWh)	Percentage Financed in Green Projects Waste (Tons)	Waste (Tons)	Recycling (Tons)	Percentage (%)	Climate Change Risk Management Strategies	Investments in Green Projects (€ Million)	Climate Risk Reports
2019
NBG	5200	12,000	60,000	55,000	10%	2000	1000	50%	Integration of ESG (Environmental, Social, and Governance) criteria into investment decisions.	380	YES
Eurobank	4500	9000	40,000	38,000	9%	1800	900	50%	Development of green financial products and services.	250	YES
Piraeus	5000	12,000	50,000	45,000	7%	1200	900	75%	Integration of ESG (Environmental, Social and Governance) criteria into investment decisions.	300	YES
Alpha Bank	4700	9500	45,000	43,000	8%	1100	800	72%	Implementation of strategies to achieve zero carbon emissions by 2050.	320	YES
2020
NBG	5100	11,000	65,000	63,000	12%	1900	1000	52%	Participation in international initiatives	450	YES
Eurobank	4400	9300	45,000	43,000	11%	1500	1100	73%	Implementation of strategies to achieve zero carbon emissions	300	YES
Piraeus	4900	9800	55,000	53,000	9%	1800	900	50%	Staff training on climate risks	400	YES
Alpha Bank	4600	9700	50,000	45,000	10%	1200	900	75%	Promotion of green investments	350	YES
2021
NBG	5000	10,000	50,000	45,000	20%	1200	900	75%	Integration of climate risks into strategy	500	YES
Eurobank	3800	7800	38,000	35,000	20%	900	650	72%	Participation in international initiatives	350	YES
Piraeus	4500	9500	45,000	42,000	20%	1100	800	73%	Staff training on climate risks	450	YES
Alpha Bank	4200	8500	42,000	39,000	20%	1000	700	70%	Climate change impact analysis	400	YES
2022
NBG	4800	9500	48,000	43,000	20%	1150	850	74%	Development of new risk assessment tools	550	YES
Eurobank	3600	7500	36,000	33,000	20%	880	640	73%	Development of green financial products	370	YES
Piraeus	4300	900	43,000	40,000	20%	1050	780	74%	Strengthening green investments	480	YES
Alpha Bank	4000	8200	40,000	37,000	20%	950	680	72%	Implementation of new management policies	420	YES
2023
NBG	4700	900	46,000	42,000	15%	1000	850	85%	Implementing strategies to achieve zero carbon emissions by 2050	580	YES
Eurobank	4100	9300	35,000	32,000	13%	900	660	73%	Implementing new management policies	400	YES
Piraeus	4500	9500	42,000	38,000	12%	1000	790	79%	Energy Efficiency	510	YES
Alpha Bank	4200	9400	39,000	34,000	10%	900	710	78%	Cooperation and Commitments	450	YES

shows the performance in terms of direct and indirect CO₂ emissions. The figures show that Alpha Bank has the highest direct emissions, which is probably related to its greater dependence on non-renewable sources or its broader operational base. In contrast, EUROBANK has a lower environmental footprint. Similarly, in terms of energy consumption over the five-year period, National Bank of Greece performs better, with significant efforts towards energy self-sufficiency or production from renewable sources. In contrast, Eurobank consumes less energy, probably due to operational optimization or a smaller network. In the area of green projects, Alpha Bank stands out with a higher percentage of green project financing over the five-year period, which is in line with European guidelines for green finance. Piraeus Bank, on the other hand, clearly has the lowest performance in this area compared to the rest of the sector. Finally, it is important to note that, on average, ALPHABANK has a higher waste recycling rate, highlighting its sound management in this area, with Piraeus Bank again having the lowest rate.

4.1.2. Performance on the Society Indicator

Given the complexity and breadth of social performance data over the five-year period, we have supplemented the accompanying tables with summary visualizations to enhance clarity. These figures highlight key social indicators such as gender representation in leadership roles, investments in employee training, and levels of customer satisfaction across the four systemic banks. The use of visual trends aims to distill dense data into more accessible insights, allowing readers to more easily identify comparative strengths and developments over time.

With regard to the social dimension of the five-year comparison, it can be seen that in relation to consumer protection, National Bank of Greece is strengthening its protection measures, bringing its policies into line with regulations, EUROBANK is focusing on transparency, ALPHABANK is promoting the adoption of digital tools for service and accessibility, while Piraeus Bank has been relying mainly on the development of financial education programs over the past five years. Among the approaches considered, ALPHA’s policy on the technological dimension of consumer protection is considered the most important, while Piraeus Bank’s policies that reinforce a social educational approach are also significant.

The impact on society is also important, with National Bank focusing mainly on strengthening local businesses through the implementation of social programs, Eurobank implementing infrastructure projects in communities, Alpha supporting educational and cultural activities, and Piraeus adopting measures for rural development and strengthening local cooperatives. The most notable targeted policies are those of Piraeus Bank, which support the primary sector, and those of Alpha Bank, which focus on the intellectual development of society as a whole.

Particular importance can be given to the metric relating to the life cycle of banking products and services related to ESG actions. Specifically, National Bank of Greece aims to develop new green products, while Eurobank focuses its practices on compliance with the necessary regulatory changes. Similarly, Alpha is adapting its products to ESG criteria, while Piraeus Bank attaches particular importance to adapting its products by incorporating climate scenarios into its strategic planning as shown in

Table 2. Social Comparison for the five-year period 2019–2023.

Social
Bank	Participation of Interested Parties	Proportion of Women on Boards of Directors (%)	Proportion of Women in Decision-Making Positions (%)	Policies for the Integration of Persons with Disabilities	Customer Satisfaction Level	Number of Complaints	Number of Disputes	Product and Service Offering	Amounts Allocated to Social Integration Programs (Euros)	Amounts Allocated to Social Programs for Health (Euros)	Amounts Allocated to Social Programs for Education (Euros)	Staff Mobility (Transfers)	Staff Mobility (Secondments)	Amounts Allocated to Employee Training (Euros)	Human Rights Policy	Collective Labor Agreements	Main Points of the Agreement	Supplier Evaluation Policies
2019
NBG	Public consultations and sustainability reports	26%	22%	Implementation of awareness and training programs for staff.	0.86	900	110	Development and promotion of digital banking services.	950,000	900,000	1,250,000	150	100	800,000	Strengthening equality policies, anti-harassment programs	Sectoral CBA	Salary increases, improved working conditions
Eurobank	Integration of ESG criteria into strategic decisions.	19%	16%	Creation of infrastructure	0.8	850	95	Integration of ESG criteria into banking products.	880,000	800,000	1,150,000	135	80	700,000	Strengthening anti-discrimination policies, awareness-raising programs	Sectoral CBA	Special allowances, flexible working hours
Piraeus	Public consultations and sustainability reports	22%	18%	Cooperation with organizations to support people with disabilities and promote their integration into the labor market.	0.75	950	150	Development and promotion of digital banking services.	950,000	900,000	900,000	140	90	790,000	Implementing equality and non-discrimination policies, protecting personal data	National General CBA	Salary increases, improved working conditions
Alpha Bank	Integration of ESG criteria into strategic decisions.	21%	20%	Development of accessibility infrastructure in stores and services.	0.79	780	130	Integration of ESG criteria into banking products.	890,000	800,000	850,000	130	85	750,000	Anti-discrimination policies, supporting vulnerable groups	Operational CBA	Special allowances, flexible working hours
2020
NBG		27%	22%	Implementation of actions for accessibility and inclusion of persons with disabilities	81%	1000	140	Strengthening digital channels and e-banking services	950,000	950,000	1,300,000	120	95	900,000	Strengthening anti-discrimination policies, awareness-raising programs	National General Collective Agreement	Wage increases, improved working conditions
Eurobank		24%	20%	Enhancing accessibility and supporting the integration of persons with disabilities through special programs	82%	950	120	Strengthening personalized financial solutions and products	900,000	850,000	1,200,000	110	75	800,000	Strengthening equality policies, anti-harassment programs	National General Collective Agreement	Wage increases, improved working conditions
Piraeus		26%	23%	Implementing training and awareness-raising programs to support persons with disabilities	79%	1100	130	Developing new investment products and services	930,000	950,000	100,000	125	80	850,000	Anti-discrimination policies, support for vulnerable groups	Operational Collective Agreement	Wage increases, improved working conditions
Alpha Bank		25%	21%	Developing accessibility infrastructure in shops and services.	86%	900	150	Integrating ESG criteria into banking products.	900,000	850,000	900,000	95	65	800,000	Anti-discrimination policies, support for vulnerable groups	Sectoral Collective Agreement	Wage increases, improved working conditions
2021
NBG	Organizing regular meetings with stakeholders and consulting on ESG issues	25%	20%	Implementation of accessibility and support programs for persons with disabilities	82%	1200	150	Development of digital services and applications for better customer service	1,000,000	1,200,000	1,500,000	150	100	1,000,000	Implementation of equality and non-discrimination policies, protection of personal data	National General Collective Agreement	Wage increases, improved working conditions	Application of quality and sustainability criteria, regular inspections
Eurobank	Participation in international initiatives and collaborations with stakeholders	22%	18%	Implementation of actions for the accessibility and inclusion of persons with disabilities	79%	1150	140	Provision of integrated solutions for businesses and individuals	850,000	1,100,000	1,300,000	135	80	950,000	Anti-discrimination policies, support for vulnerable groups	National General Collective Agreement	Wage increases, improved working conditions	Quality and safety criteria, Part B inspections
Piraeus	Development of strategic partnerships with NGOs and local communities	24%	21%	Development of policies for the accessibility and inclusion of persons with disabilities	80%	1300	160	Creation of new products for small and medium-sized enterprises and individuals	900,000	1,000,000	1,200,000	140	90	900,000	Anti-discrimination policies, support for vulnerable groups	Operational Collective Agreement	Special allowances, flexible working hours	Quality and safety criteria, Part B inspections
Alpha Bank	Creation of a forum for the exchange of views with stakeholders	23%	19%	Creation of accessible infrastructure and services for persons with disabilities	78%	1100	130	Strengthening of digital channels and e-banking services	800,000	900,000	1,000,000	130	85	850,000	Protection of personal data, equality policies	Sectoral Collective Agreement	Stronger allowances, protection of rights	Quality and compliance assessment, regular inspections
2022
NBG	Enhancing transparency and communication through digital platforms	27%	22%	Enhancing digital accessibility and training staff to support persons with disabilities	84%	1100	140	Strengthening personalized financial solutions and products	1,200,000	1,300,000	1,700,000	160	110	1,200,000	Strengthening equality policies, anti-harassment programs	Sectoral CBA	Increased benefits, protection of rights	Strengthening ESG criteria, stricter inspections
Eurobank	Developing training and awareness programs on ESG issues	24%	20%	Enhancing accessibility and training staff to support persons with disabilities	82%	1100	135	Strengthening digital banking and personalized services	1,050,000	1,250,000	1,500,000	145	85	1,150,000	Strengthening anti-discrimination policies, awareness-raising programs	Sectoral CBA	Increased benefits, protection of rights	Integrating ESG criteria, improving assessment procedures
Piraeus	Implementation of employee and customer engagement and consultation programs	26%	23%	Implementation of training and awareness programs to support persons with disabilities	83%	1250	155	Implementing customer loyalty and reward programs	1,100,000	1,200,000	1,400,000	150	95	1,100,000	Strengthening anti-discrimination policies, awareness-raising programs	National General CBA	Wage increases, improved working conditions	Integrating ESG criteria, improving assessment procedures
Alpha Bank	Enhancing participation through surveys and questionnaires	25%	21%	Enhancing accessibility and supporting the integration of persons with disabilities through specific programs	81%	1050	125	Integrating ESG criteria into banking products.	1,100,000	1,100,000	1,200,000	140	90	1,050,000	Strengthening equality policies, anti-harassment programs	Operational CBA	Special allowances, flexible working hours	Strengthening sustainability criteria, stricter inspections
2023
NBG	Collaborations with local communities on social projects.	25%	20%	Enhancing accessibility and supporting the integration of persons with disabilities through special programs	87%	1000	110	Integration of ESG criteria into banking products.	1,250,000	135,000	1,800,000	150	100	1,300,000	Strengthening anti-discrimination policies, awareness-raising programs	National General Collective Agreement	Strengthening benefits, protecting rights
Eurobank	Development of education and awareness programs on ESG issues	22%	18%	Developing accessibility infrastructure in shops and services.	84%	950	110	Integration of ESG criteria into banking products.	1,100,000	1,300,000	1,600,000	130	65	1,250,000	Strengthening anti-discrimination policies, awareness-raising programs	National General Collective Agreement	Increasing wages, improving working conditions
Piraeus	Collaborations with local communities on social projects.	24%	21%	Implementation of training and awareness-raising programs to support persons with disabilities	85%	1110	130	Implementation of customer loyalty and reward programs	1,150,000	1,250,000	1,500,000	140	80	1,200,000	Strengthening anti-discrimination policies, awareness-raising programs	Operational Collective Agreement	Special allowances, flexible working hours
Alpha Bank	Development of education and awareness programs on ESG issues	23%	19%	Implementation of actions for accessibility and inclusion of persons with disabilities	83%	980	120	Strengthening digital banking and personalized services	1,150,000	1,150,000	1,400,000	130	75	1,150,000	Implementing equality and non-discrimination policies, protecting personal data	Sectoral Collective Agreement	Strengthening benefits, protecting rights

.

4.1.3. Performance on the Corporate Governance Index

The banking system has shown significant improvement in relation to complaints and transparency policies, with Piraeus and Alpha offering the best structured procedures for submitting reports with a view to enhancing transparency. Specifically, National Bank of Greece’s basic policy is to adopt a clear complaints policy, while Alpha and Piraeus are constantly improving this process by implementing an internal ethics reporting line and the possibility of submitting reports via an online platform, thereby enhancing the transparency and speed of the process. Equally important are Alpha’s anti-corruption policies, which follow a clear strategy aimed at prevention through staff training. The other banks are strengthening their anti-corruption policies through internal controls and continuous monitoring of incidents, implementing new policies where necessary.

Finally, the social dimension of the ESG practices followed by the four systemic banks for the period 2019–2023 is also evident in their data security policies. It is noted that all banks comply with the GDPR, with the National Bank relying on the implementation of Law 4548/2018. In addition to this dimension, AlphaBank and Piraeus Bank adopt more technocratic and certified approaches to cybersecurity than the other banks, with the former implementing the ISO 27001 framework while Piraeus has established a specific Data Governance unit for this issue.

4.2. Position and Significance Piraeus Bank in the ATHEX ESG Index

Recognizing the need to integrate the principles of Sustainable Development into its business model, Piraeus Bank has adopted a holistic ESG (Environmental, Social, Governance) strategy that runs through every aspect of its operations. The bank has created significant added value for all stakeholders as it has been included in the Athens Stock Exchange’s ATHEX ESG Index and has achieved a leading position among the 60 listed companies, demonstrating its commitment to transparency, responsibility, and sustainability. Specifically, it fully meets the criteria of the ATHEX ESG index, both in terms of disclosure and actual performance. It is one of the few financial institutions with an active presence in multiple international ESG indices (FTSE4Good, Ethibel, CDP), and its presence in ATHEX ESG confirms its strategic commitment to responsible banking, with substantive ESG policies, measurements, and targets.

Specifically, with regard to the Environmental indicator, Piraeus Bank implements a strategy aimed at reducing its environmental footprint and promoting the green transition. The main actions it has implemented are the reduction of CO₂ emissions. Specifically, the bank has achieved a significant reduction in emissions of 25% since 2019. In terms of energy efficiency, Piraeus Bank is constantly upgrading its infrastructure by creating energy-efficient buildings. It is a pioneer in financing green projects, granting loans of over €700 million to companies with sustainability targets (Sustainability-Linked Loans). It is a key supporter of smart farming and promotes the digitization of agricultural holdings by supporting sustainable rural development through the creation of the Farmers’ Advisory Services Platform. These initiatives are highly rated by ATHEX ESG (E) as they ensure systematic monitoring of environmental KPIs and demonstrate a transparent target of “net zero” by 2050, in line with the EU’s objectives.

With regard to the social indicator, the social dimension at Piraeus Bank includes relations with employees, customers, communities, and vulnerable groups. The main actions it has undertaken are a work culture of equality and inclusion, with 52% of its staff being women, and significant initiatives for women’s empowerment. The Bank promotes volunteering and social alliances, with over 10,000 h of volunteer work by employees recorded. In addition, financial inclusion is significantly enhanced through the creation of products and services for vulnerable social groups. These actions include digital accessibility with easy-access platforms for people with disabilities and the elderly, support for small and medium-sized enterprises through mentoring and assistance based on ESG criteria. All of the above receive high ratings in the ATHEX ESG assessment, as there is a high social footprint with continuous support for vulnerable groups.

Finally, in the area of Governance, the Bank places particular emphasis on structured, transparent, and responsible corporate governance. The main actions for achieving transparent management are the operation of Audit, Risk and Sustainability Committees, the implementation of Anti-Corruption Policies, and ethics training for all staff. ESG Risk Management is also important, with the integration of sustainability risks into the general credit risk management policy, ESG data checks by independent assessors, and the adoption of the Hellenic Federation of Enterprises (SEV) Corporate Governance Code. For these reasons, the ATHEX ESG rating is high, as it demonstrates compliance with best governance practices and makes a significant contribution to the ESG Transparency Score due to the systematic disclosure of governance practices and policies.

4.3. Position and Significance of National Bank of Greece in the ATHEX ESG Index

The Sustainable Development Report of NBG highlights its strategic commitment to sustainability, social responsibility, and corporate governance. As one of the country’s largest financial institutions, NBG plays a key role in the Greek stock market, significantly influencing the performance of the ATHEX. National Bank of Greece holds a prominent position in the Athens Stock Exchange General Index, with a share of approximately 10%, making it one of the key drivers of the overall market performance. This significant participation reflects its large capitalization, which exceeds €7 billion. NBG is also included in the FTSE/Athex Large Cap index, which comprises the 25 largest companies by market capitalization listed on the Athens Stock Exchange. Its presence in this index reinforces its importance for institutional investors and investment funds that track the index. In addition, NBG is included in the banking index, which comprises the country’s largest banks. Its performance in this index reflects its overall performance in the banking sector and its influence on developments in the financial sector. Its position makes it a key reference point for both institutional and private investors. The ESG rating, which is reinforced annually through the Sustainability Report, has a positive impact on investor confidence. Governance rating, which is reinforced annually through the Sustainability Report, has a positive impact on investor confidence.

ETE has a high ESG rating on the FTSE/Athex ESG Index. The National Bank of Greece’s ranking per ESG category is primarily related to the environment (E) indicator, through the implementation of policies to reduce its carbon footprint, promote green financing, and reduce energy consumption in buildings and infrastructure. With regard to the Social (S) index, the Bank emphasizes diversity, gender equality, employee health and safety, support for small and medium-sized enterprises, and corporate responsibility initiatives. Finally, with regard to the Governance (G) indicator, there is a strong corporate governance framework, with transparency in decision-making, independence of board members, and compliance with international standards (e.g., SASB, TCFD). This is particularly important as participation in the ESG index attracts international investment funds with an ESG Investing, enhancing the value of the share and the investment image of ETE.

4.4. Alpha Bank’s Position and Significance in the ATHEX ESG Index

Alpha Bank’s Sustainability Report highlights its strategic commitment to integrating sustainability principles and ESG into all aspects of its operations. Alpha Bank has achieved significant milestones and strengthened its position on the ATHEX and on international sustainability indices. Alpha Bank is a key component of the ATHEX, with a stable presence and strong performance that make it an important player in the country’s financial sector. In 2023, the Bank achieved sustainable financing of €800 million, exceeding its initial target and strengthening its position in the ATHEX index. This performance underscores the Bank’s commitment to promoting sustainable growth and strengthening investor confidence.

Alpha Bank has set ambitious targets for the period 2024–2026, increasing its target for sustainable disbursements from €3 billion to €4.4 billion. This strategic direction is in line with the Bank’s commitment to net zero greenhouse gas emissions by 2050, as stated in its 2023–2025 Strategic Plan. In addition, Alpha Bank has integrated ESG criteria into its operations with the aim of supporting an environmentally sustainable economy, promoting economic and social progress, and ensuring strong and transparent governance.

As part of its commitment to social welfare, Alpha Bank has implemented the “IQonomy” Corporate Responsibility program, which aims to promote equal access to financial education for citizens and to promote the circular economy. To date, more than 18,000 students and 450 teachers have benefited from this initiative. At the same time, the Bank has upgraded its digital channels and aims to fully digitize all the banking services it provides by 2025, in order to ensure unhindered access for all citizens to its financial products and services.

Alpha Bank is also distinguished for its strong corporate governance, with a high percentage of independent non-executive members on its Board of Directors and the implementation of policies that ensure transparency and accountability. The Bank has integrated ESG criteria into its operations with the aim of supporting an environmentally sustainable economy and ensuring strong and transparent governance as shown in

Table 3. AlphaBank’s position and significance in the ATHEX ESG Index.

Index	CBA Potition	ESG Strategy	Importance
General Index of the Athens Stock Exchange	~10% participation	Strong integration of sustainable practices	Market shaping pillar
FTSE/Athex Large Cap	Member	Compliance with international ESG standards	Attractiveness for institutional investors
FTSE/Athex ESG	Member	Improvements in E/S/G pillars	Access to ESG funds
Banking Index	TOP BANK	Support for the sustainable economy & green products	Decisive for the index
International ESG Indices	RATED	Recognized ESG strategy	Strengthening of international investment profile

.

4.5. Eurobank’s Position and Significance in the ATHEX ESG Index

Eurobank continued to strengthen its sustainable development strategy, demonstrating its commitment to transparency, good governance, the environment, and society. This effort has been recognized by its continued inclusion in the ATHEX ESG Index, one of the most important sustainability indices in Greece, as well as its presence in many international ESG indices. Its inclusion in the ATHEX ESG Index demonstrates the consistency and quality of its strategy in the ESG areas and confirms the Bank’s alignment with contemporary international standards of responsible business conduct.

Eurobank covers all three dimensions of the ATHEX ESG Index with a set of core and advanced indicators. In the Governance category, Eurobank achieved significant performance in the corporate governance section, which includes the composition of the Board of Directors, the sustainability report, and the financial statements. The Bank maintains a high level of transparency and ethical management and has a significant strategy regarding its business model and supply chain management.

Taking into account Eurobank’s performance in the Environment category, it is noted that its environmental strategy includes direct and indirect emissions and energy consumption. Indicators A-E1 to A-E8: relating to advanced indicators, such as Scope 3 indirect emissions, climate change policy and total emissions, confirm the Bank’s commitment to carbon neutrality and sectoral indicators related to water consumption and air pollutant emissions.

In the social sphere, Eurobank is highly active and transparent in relation to stakeholder engagement, gender equality, collective representation, and human rights policy, promoting a fair and inclusive working environment through indicators A-S1 to A-S4, which refer to sustainable economic activity and employee training expenses, are rated positively, and finally the SS-S indicators, which include safety and health in the workplace, data protection, and customer satisfaction.

Eurobank achieved improvements in key ESG indicators, such as Sustainalytics, MSCI: from BBB to A, S&P Global, CDP from D to B and finally ISS ESG. Eurobank’s performance demonstrates steady progress and investor confidence, while assessing both the impact of ESG risks on its activities and the impact of its own actions on society and the environment, while developing an internal ESG risk assessment methodology for CIB, with the ultimate goal of ensuring sustainable credit decisions.

5. Discussion

5.1. Comparative Analysis 2019–2023

Based on the results of the comparative analysis of banks for the five-year period 2019–2023 and the overview of ESG issues, we can draw up a corresponding comparative

Table 4. Comparative Table 2019–2023.

BANKS
Criteria	NBG	EUROBANK	ALPHABANK	PIREUS
Environmental Footprint	Medium	Low	High	Medium
Green Finance	Satisfactory	Satisfactory	High	Low
ESG Governance	Complete	Compliant	Structural Supervision	Strategic Implementation
Cybersecurity	Legislative	Gdpr	ISO 27001	Data Governance

for the four banks, focusing on the following key criteria: Environmental footprint, Green Finance, Social footprint, ESG Governance, and Cybersecurity.

When viewed in relation to national corporate governance benchmarks, the patterns observed among the four systemic banks are broadly consistent with the trends reported by the Hellenic Observatory of Corporate Governance (HOCG). In particular, the gradual improvement in disclosure quality, governance transparency, and ESG adoption observed in this study reflects the broader governance maturity that the HOCG identifies across Greek listed companies in its recent reports.

For the five-year period 2019–2023, we find that Alpha Bank has the highest overall ESG maturity, particularly in Green Finance, cybersecurity, and social responsibility. National Bank of Greece shows significant progress and a holistic approach with ESG integration at all levels, but with higher emissions. Eurobank has a low environmental footprint and emphasizes regulatory compliance, but its ESG strategies are not as clearly differentiated.

In terms of environmental footprint, the four systemic banks show differentiation in terms of CO₂ emissions, energy consumption, and recycling. Alpha Bank has the highest direct CO₂ emissions, while Eurobank has the lowest environmental footprint. National Bank of Greece produces a significant amount of energy, while Alpha Bank is a pioneer in financing green projects. In terms of recycling, Alpha Bank has the highest rate, while Piraeus Bank has the lowest.

Similarly, in terms of social footprint, each bank approaches its social responsibilities in a different way. Alpha Bank stands out for its digital consumer protection solutions, while Piraeus Bank invests in financial education and rural development. Eurobank supports infrastructure projects, while National Bank implements local social programs. Both Alpha and Piraeus apply ESG criteria in the design of new products.

Finally, in terms of corporate governance, all banks incorporate ESG policies into their strategy, with variations in transparency and cybersecurity. Piraeus Bank stands out for its adoption of climate scenarios, while Alpha Bank is distinguished for its training on ethical issues and the implementation of ISO 27001. National Bank complies with Law 4548/2018, while Piraeus Bank implements a comprehensive Data Governance policy.

To strengthen the alignment between measurable ESG outcomes and institutional practices, we examined how qualitative strategies correlate with quantitative performance. For instance, banks that implemented structured governance mechanisms—such as dedicated ESG committees and executive accountability for sustainability—tended to report higher volumes of green financing and greater reductions in direct CO₂ emissions. Alpha Bank’s achievement in both sustainable disbursements and emission control appears linked to its integrated ESG governance model and digital stakeholder engagement. Similarly, Eurobank’s consistent improvements in customer satisfaction and gender diversity coincide with the adoption of transparent reporting practices and inclusion-focused policies. These observations suggest that strong governance and stakeholder-focused strategies are not only complementary to but also predictive of positive ESG performance.

5.2. Position and Importance of Banks in the ATHEX ESG Index

The four systemic banks in Greece perform well in terms of their position and importance in the ATHEX ESG Index, achieving significant results. The National Bank of Greece has reaffirmed its commitment to sustainable development and responsible business practices. Its prominent position in the General Index and in the individual indices of the Athens Stock Exchange underscores the Bank’s importance for the Greek capital market. Its strong presence and positive performance reinforce investor confidence and contribute to the stability and growth of the Greek economy. NBG maintains a leading position in the Athens Stock Exchange’s key indices, such as the General Index, the FTSE/Athex Large Cap and the Banking Index. Its presence in these indices demonstrates its importance for financial stability and the broader economy of the country.

NBG’s sustainable development strategy is fully integrated into its business model, as evidenced by its performance and actions recorded in its 2023 report. The bank systematically implements actions related to the environment (E), society (S), and governance (G), giving substance to the concept of sustainable banking. NBG’s presence in the Athex ESG Index is particularly important, as it enhances its prestige and positively differentiates it from other banking institutions in the Greek market. Positive ratings in all ESG categories act as a magnet for investment capital pursuing sustainable strategies. At the environmental level, NBG is reducing its environmental footprint and actively supporting the green economy through financing renewable energy sources and sustainable infrastructure. At the social level, it demonstrates responsibility towards its employees, customers, and society by promoting equality, accessibility, digital inclusion, and support for small and medium-sized enterprises.

At the governance level, ETE applies international transparency standards, strengthens accountability, and ensures the independence of its institutional bodies, all of which reinforce its institutional credibility. The NBG’s ESG strategy makes it attractive to international investors, especially those seeking long-term investments with a responsible social footprint. Strengthening its position in ESG indices (such as MSCI ESG, Sustainalytics, etc.) contributes to increasing its visibility at international level. Participation in the ESG index attracts international investment funds with an ESG strategy (ESG investing), enhancing the value of the share and the investment image of NBG. It improves transparency. It enhances the ability to raise capital from foreign markets. It makes its shares eligible for ESG thematic portfolios.

Sustainability Reports demonstrate that ETE aims to create long-term value for both its shareholders and society. ETE’s presence in the Athex ESG Index is a seal of quality for investors and a tool for strategic transformation towards a fair, digital, and sustainable economy. Overall, NBG is setting a standard for banking operations, combining financial performance with a positive social and environmental impact. Its position in the indices and its ESG performance strengthen its long-term resilience and give it a strategic competitive advantage.

Piraeus Bank has one of the most comprehensive ESG frameworks. It is the first Greek bank to create an ESG-based reward mechanism for corporate loans. It has external ESG performance certification from international agencies (ISS ESG, Ethibel, FTSE4Good). It actively participates in the UNEP FI Principles for Responsible Banking initiative. Piraeus Bank has consolidated its position in the ATHEX ESG index, combining strategy, action, and accountability. The analysis shows a balanced, fully integrated ESG strategy in terms of the environment, society, and governance. The Bank’s presence in a number of international ESG rankings, combined with the increased ESG transparency required by the Athens Stock Exchange index, enhances Piraeus Bank’s credibility and investment attractiveness. The continuation of its target setting, ongoing training of its human resources, and shift towards sustainable financial products lay the foundations for steady progress and further improvement in the Bank’s ESG profile in the coming years.

6. Conclusions

This research aimed to evaluate the integration of ESG principles in the Greek banking sector, focusing on the four systemic banks—National Bank of Greece, Eurobank, Piraeus Bank, and Alpha Bank—over the period 2019–2023. Through a qualitative, comparative methodology based on ESG and sustainability reports, the ATHEX ESG Index, and alignment with GRI standards, the study sought to assess how ESG frameworks are operationalized and communicated within the Greek financial ecosystem.

The findings highlight that ESG integration has become a growing priority for systemic banks in Greece, though the level of maturity, depth of disclosure, and strategic coherence vary significantly. Alpha Bank and Eurobank exhibited more advanced ESG governance structures, with clearer commitments to sustainability strategies and more detailed reporting. In contrast, while Piraeus Bank and National Bank of Greece made visible efforts, their ESG implementation appeared more fragmented, with inconsistencies in metrics and policy application across the ESG pillars. These discrepancies reflect both internal capacity differences and a broader lack of harmonization in ESG reporting practices within the sector.

From an analytical perspective, the study revealed that the environmental pillar is the most consistently quantified—featuring metrics such as energy consumption, emissions, and green finance—while the social pillar remains the least standardized, often relying on qualitative narratives rather than concrete KPIs. Governance indicators, on the other hand, showed moderate comparability across institutions, especially regarding board composition, anti-corruption policies, and executive remuneration structures. Importantly, ESG performance was found to intersect with operational and reputational factors, suggesting that more comprehensive ESG integration may enhance institutional resilience and stakeholder trust.

The ATHEX ESG Index was evaluated as a guiding but limited tool. While it offers a structured framework for assessing ESG transparency, its methodology prioritizes the existence of disclosures rather than their material effectiveness or strategic integration. This raises concerns about potential box-ticking approaches and highlights the need for banks to move beyond compliance-based reporting toward genuine sustainability transformation. Moreover, the absence of enforced third-party audits and standardized ESG scoring criteria across the Greek market further weakens the index’s ability to serve as a comprehensive benchmarking instrument.

In conclusion, this research confirms that ESG frameworks are increasingly influencing the strategic orientation and reporting obligations of Greek systemic banks. However, significant gaps remain in the consistency, depth, and strategic embedding of ESG practices. The path forward requires not only regulatory alignment and transparency but also a shift in internal culture, stakeholder engagement, and risk management philosophy. As ESG continues to shape the financial landscape, Greek banks must strive to build more robust, integrated, and forward-looking sustainability strategies to enhance their long-term performance, accountability, and societal value. These findings also carry important policy implications. Greek regulatory bodies could play a more proactive role in harmonizing ESG reporting across the financial sector by adopting binding national disclosure standards aligned with EU frameworks such as the CSRD. Mandating external assurance for ESG data and enhancing the transparency of ESG rating methodologies would further improve the credibility and comparability of non-financial disclosures. Moreover, regulators could support institutional capacity-building through targeted training programs, incentives for ESG innovation, and supervisory guidance tailored to the evolving sustainability landscape. Such initiatives would not only standardize practices but also accelerate the meaningful integration of ESG principles in the Greek banking sector, thereby enhancing market integrity and investor confidence.

7. Further Research

Based on the comparative assessment of Greek systemic banks for the period 2019–2023 and their positioning within the ATHEX ESG Index, several directions for further academic and practical investigation emerge.

First, there is a pressing need to quantitatively assess the impact of ESG performance on financial outcomes. While this study emphasized qualitative analysis, future research should focus on econometric modeling and statistical evaluation to correlate ESG indicators with key financial metrics such as ROA, ROE, and market capitalization. The application of advanced quantitative methods will allow for more precise mapping of sustainability practices to financial performance.

Second, it is important to extend longitudinal ESG analysis beyond the banking sector to other financial and non-financial industries within the Greek economy. Expanding the scope would provide a more comprehensive understanding of ESG adoption trends and sector-specific challenges. In-depth case studies on ESG innovation—such as climate risk digital platforms or inclusive lending schemes—would further enrich this understanding. Additionally, exploring the role of emerging technologies, particularly artificial intelligence and machine learning, could yield valuable insights into how ESG data collection, real-time monitoring, and risk analysis can be optimized in financial institutions.

Third, stakeholder perception studies are critical for understanding how ESG practices are evaluated by those directly and indirectly affected by them. Surveys targeting investors, customers, employees, and other stakeholder groups could shed light on the perceived authenticity, impact, and motivation behind ESG initiatives. These studies would also help distinguish whether ESG integration is driven by strategic commitment or regulatory compliance, thus offering a deeper understanding of institutional behavior and long-term orientation.

Finally, this study reinforces the growing strategic importance of ESG frameworks for Greek systemic banks. While significant progress has been made, opportunities remain to enhance integration, reporting transparency, and policy innovation. ESG is no longer a theoretical or reputational issue; it has evolved into a central component of risk management, competitive advantage, and sustainable value creation. Continued investment in ESG infrastructure and governance can help Greek financial institutions improve their performance not only at the national level but also within the broader European and international financial landscape—while contributing meaningfully to the sustainable development of the Greek economy and society.

A particularly critical area for future investigation is the quantifiable relationship between ESG performance and financial outcomes. While this study focused primarily on strategic integration and reporting practices, there is a clear need for empirical analyses that correlate ESG metrics—such as carbon emissions, social investment levels, or governance scores—with key financial indicators like ROE, ROA, and cost of equity. Econometric models and panel data analyses could provide deeper insights into whether ESG leadership translates into financial resilience, profitability, or market valuation. Moreover, comparative studies across sectors or countries could help contextualize the financial implications of ESG integration within different regulatory and economic environments. Clarifying these connections will be essential for advancing evidence-based ESG policy and investment strategies.