Sustainability in Banking Initiatives at the National Bank

Sustainability in Banking Initiatives at the National Bank of Greece Evi Tsoukala Head of Group Corporate Governance Sector National Bank of Greece S. A. 12 July 2016

The National Bank of Greece 175 Years of History 2

Traditionally oriented towards contribution 1860 The Bank participates in the capital of the company that constructs the National Theater in Athens 1893 -1894 The Bank provides financial aid to the earthquake victims of Zante and Lokrida and also provides financing for restoration work to the Orthodox Seminary of Chalke, which had been destroyed by earthquake. 1908 The Bank provides financial support for earthquake victims in Ilia province and for earthquake victims in Sicily and Calabria, Italy. 1922 Following the Asia Minor Disaster, NBG provided loans, donations and aid to the refugees from Asia Minor, and managed to arrange collection of the wheat harvest in Eastern Thrace before the region was evacuated so as to feed the refugee population. 1938 NBG establishes its Historical Archive. Indicative supporting initiatives and milestones in the history of NBG 1866 - 1867 The Bank provides financial assistance to the refugees from Crete and the earthquake victims of Cephalonia, as well as support for various social welfare organisations, such as the ‘Cretan Refugee Committee’, the ‘Alms Society’ and the Retirement Fund for Naval Servicemen. 1895 -1896 The Bank provides financing for the hosting of the first modern Olympic Games held in 1896 in Athens. 1913 -1914 NBG honours its employees who sacrificed their lives in the Balkan Wars and provides financial aid for the relief programme for deprived families of soldiers. 1931 NBG finances the creation of the Athens suburb of Filothei which provides housing for members of its staff. 1940 -1944 During the Greek-Italian war the Bank provides financial assistance to relief programmes on the front and the families of enlisted NBG employees. It also donated a mobile surgery to the Greek Red Cross and financed a convalescence home for the wounded. During the subsequent Nazi Occupation, besides providing soup kitchens and emergency financial aid to its staff the Bank also supported various welfare organisations in Greece.

Traditionally oriented towards contribution 1973 NBG is the first Bank in Greece to introduce modern online real-time transaction systems, thereby contributing to the modernization of banking transactions 1996 NBG publishes its first Social Report 2005 The Bank is ranked a “Gold Company” in recognition of its activity in Greece in the sphere of CSR according to the results of a survey presented at the Economist conference 2008 NBG is awarded the CSR Prize of the Athens Chamber of Trade and Industry The Bank publishes for the first NBG is recognized by the Advertisers time its 2007 CSR Report, in Association of Greece for its “Outstanding line with Global Reporting Contribution” to the community and Initiative guidelines. social affairs over the decades 2011 2013 The “THALES’ award, top corporate social responsibility is given to National Bank NBG is awarded the CSR Prize PLATINUM by CR INDEX Indicative supporting initiatives and milestones in the history of NBG 1966 On the occasion of its 125 th anniversary, NBG establishes the National Bank Cultural Foundation which contributes to the educational and cultural life of the country 1994 On the initiative of NBG and with the participation of 20 individuals from the public sector banking and business world, a “National Sponsorship Programme” was set up as an NCO with a view to securing funding for national heritage programmes (this has since been discontinued) 2004 2007 2010 2012 2014 NBG incorporates CSR values into its strategy and publishes its CSR Policy NBG contributes directly to the task of restoring regions devastated by the summer wildfires Construction of new surgical wing at “Evaggelismos Hospital” NBG is awarded the CSR Prize GOLD by CR INDEX Ethos Sustainability top award is given to NBG The Bank begins participation in the FTSE 4 Good corporate responsibility index. In the context of its CSR Policy, the Bank launches its Environmental Management System NBG is awarded the CSR Prize by CR INDEX

The Current Environment - Trends and Influencing Factors STAKEHOLDERS Global Trends Climate change Overpopulation Investors and Shareholders Energy demand Laws and regulations The media Customers Financial Instability Corporate Diversity Innovation The state and regulatory authorities Employees NBG Contribution in line with Surrounding Environment Needs Non. Governmental Organizations (NGOs) The Business Community Suppliers Local Communities NBG’s contribution to the protection of environment, society and culture throughout its long history Global trends and key concerns (i. e. population growth, climate change) Shift of stakeholders’ attitude towards these trends Continuous adjustment and development to further increase contribution and third party influence

Initiatives of the National Bank of Greece The Bank has established NBG Group’s Corporate Social Responsibility Policy (the “CSR Policy”) which defines the fundamental values and objectives underlying NBG’s activities while it reflects the keystones of the CSR framework and determines the CSR Action framework for the Bank and its Group The Bank has established a Sponsorship/Donations Policy which forms an integral part of the CRS Policy The Bank has developed and implemented an Environmental Management System, in compliance with international standard ISO 14001 aiming at minimizing its environmental footprint: i) Conserving energy and natural resources ii) Rationalizing travel and commuting iii) Management of paper and solid waste iv)Environmental criteria for supplies v)Environmental risk evaluation and management Environmental and Social Management System (ESMS) Officers have been appointed at Group level. ESMS Officers are, among others, responsible for overseeing implementation of the CSR principles of the Group Entity, for coordinating and integrating relevant procedures in the Entity’s operations and business activities, while they are responsible for reporting on CSR issues to the Entity’s Management and the Group The Bank supports the Greek Sustainability Code deployed as a preparation tool for the companies concerned to start adjusting to the requirements of Directive 2014/95/EU of the European Parliament and the Council as regards non-financial reporting Τhe Bank shows special care for the regular training of staff by developing special training programmes on CSR and Environmental Management issues

Participation in Associations, Unions, Organizations and Indices for sustainable development Global Reporting Initiative (G 4) - From 2015 NBG applies the GRI G 4 standard FTSE 4 GOOD Index Series Ethibel EXCELLENCE Investment Registers Carbon Disclosure The Hellenic Network for Corporate Social Responsibility Hellenic Bank Association Sustainable Development Committee Sustainable Greece 2020 Initiative Young Entrepreneurs Association national representative in Greece of the International Organization Junior Achievement

Products and services targeted to contribution Loan for participation in the ‘Energy. Saving at home’ program ‘Green Loan’ ‘Photovoltaic Home’ ‘Energy-Saving at home’ program of YPEKA (Ministry of Environment and Energy) in collaboration with ETEAN (National Fund for Entrepreneurship and Development) – 10. 717 loan applications were approved in 2014 Favorable terms and conditions for financing the purchase and installation of energy-saving products Loan for the installation of photovoltaic systems in homes Act 4 Greece NBG Business Seeds A pioneering initiative for the promotion of social and developmental banking An integrated program designed to foster innovative and exportoriented entrepreneurship Mutual Fund DELOS Investments in companies active in the sectors of renewable and alternative energy systems Participation in the Joint European Support for Sustainable Investment in City Areas (JESSICA) ESTIA Green Home Purchase or construction of an energy efficient residence or the repair of a house in order to upgrade it in terms of its energy consumption 8

Awards received acknowledging initiatives of the National Bank of Greece Award for NBG's Social Corporate Responsibility Report Social Responsibility Award by CR INDEX 2014 ‘Volunteerism’ prize awarded to NBG by Junior Achievement Greece (JA Greece) Award in the Business Ethics Category to NBG Ombudsman Office Ethos Sustainability Premier Award 2014 Golden Prize for Business Ethics to NBG act 4 Greece crowd funding platform 2016 Silver Bite Award Most famous brand in the ‘Famous Brands 2014 Survey’ Award for NBG’s ‘Internal Communication Actions’ in the ‘Corporate Affairs Excellence Awards 2015’ Key awards for NBG’s Environmental Responsibility and Actions under the ‘Environmental Awards 2015’

Challenges and Opportunities Adverse social and economic conditions Companies facing economic problems / viability issues Challenges Low interest in investments and funding Challenging for financial institutions to cultivate their clients Adjustment of third parties to the new environment EBRD Performance Requirements Opportunities Application of a common framework Enhancement of “sustainability culture in the market Greek Sustainability Code sensitive” Commitment of stakeholders to further improve practices applied Further mobilizing stakeholders, clearer comprehension of issues raised, rules and procedures to address sustainability issues Incorporation of Sustainable development and relevant principles in the companies operations and management Acquisition of capital through positive evaluations from financial markets and international investor funds Companies’ placement in international networks of responsible suppliers Compliance with Directive 2014/95/EU on disclosure of non-financial information

Sustainability in Banking – Initiatives at the National Bank of Greece Thank you Evi Tsoukala