Building a sustainable future
Bank of Cyprus plays a pivotal role in the development of Cyprus economy. Our strategic priority is to lead the efforts of transitioning the country to a more sustainable operating model by financing net zero and reaching carbon neutral in own operations. We have undertaken a multidimensional role; to maintain our leading role in community service and optimal corporate governance on the one hand, and reduce our own environmental footprint as well as work with our customers to support their transition to lower carbon emissions, on the other.
ESG Goals
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The Group aims to become carbon-neutral in own operations by 2050, by gradually eliminating its scope 1 and 2 GHG emissions. The Group has estimated the Scope 1 and Scope 2 GHG emissions of 2021 relating to own operations in order to set the baseline for carbon neutrality target in own operations by 2050. The Group has estimated Scope 1 and Scope 2 GHG emissions for 2024 to monitor the progress on carbon neutrality target in own operations. The Group has set an interim target in line with carbon-neutrality ambition in own operations to reduce Scope 1 and Scope 2 GHG emissions by 42% (absolute target) by 2030 compared to the baseline of 2021.
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The Group’s ambition to become Net Zero, by reducing its Scope 1, Scope 2 and Scope 3 emissions through its supply chain (i.e. third-party providers) and its financing activities, which also entails the alignment and commitment of our customers towards this goal.
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The Group aims to increase GAR. The GAR indicates the degree of alignment with the EU Taxonomy, such as showing the proportion of the share of credit institution’s assets financing and invested in EU Taxonomy-aligned economic activities as a share of total covered assets, such as those consistent with the European Green Deal and the Paris agreement goals.
The Group’s GAR as at 31 December 2024 was 0.6% (Turnover based) and 0.3% (CapEx based) as at 31 December 2023 was 0% (Turnover based) and 0.01% (CapEx based).
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In accordance with the Green Asset Ratio, the numerator consists of mortgages used only for sustainable activities related to the construction of new buildings and renovation of buildings, while the denominator includes all mortgages. The Bank will monitor its progress on this goal.
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The aspiration to achieve a representation of at least 30% women in Group’s management bodies (Defined as the EXCO and the Extended EXCO) by 2030, has been reached earlier with 33% representation of women, as at 31 December 2023 and 31 December 2024.