Alpha Bank A E : Second self-assessment report

SECOND SELF- ASSESSMENT REPORT

JUNE 2022

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ASSESSMENT REPORT

Principle 1: Alignment

The Bank will align its business strategy to be consistent with and contribute to individuals' needs and society's goals, as expressed in the Sustainable Development Goals, the Paris Climate Agreement and relevant national and regional frameworks.

Reporting and Self-	High-level summary	References
Assessment Requirements	of bank's response
1.1	Describe (high-level) your	The Alpha Bank Group is one of the leading financial Groups in	Annual Report
bank's business model,	Greece. It is present in South-eastern Europe via the Group	2021
	including the main customer	Companies that operate in Cyprus, Romania, and Albania. The
	segments served, types of	Group is also present in the United Kingdom through its London
	products and services	Branch and the Group Company, Alpha Bank London Ltd and in
	Luxembourg through its Luxembourg Branch.
	provided, the main sectors	The Bank provides products and services in the following
	and types of activities, and
	where relevant the technolo-	operating segments:
	gies financed across the main	• Retail Banking, including loans, deposits products and
	geographies in which your	bancassurance services.
	bank has operations or	• Wholesale Banking, including small business and corporate,
	provides products and
	services.	shipping finance, leasing and factoring activities.
		• Investment Banking and Treasury Management, including
		personal and private banking, corporate and structured finance,
		treasury and brokerages services; and
		• Other activities such as real estate management, venture
		capital and equity financing.
1.2	Describe how your bank has	Alpha Bank's Sustainability Strategy is based around 4 pillars:	Corporate
aligned and/or is planning to	market, people, environment, and society. As part of this	Responsibility
	align its strategy to be	strategy and for the purpose of implementing the Principles,	Policy; Alpha
	consistent with and contribute	Alpha Bank has reviewed its contribution to society's goals in	Bank
	to society's goals, as	reference to the SDGs, Paris Agreement and relevant regional
	frameworks such as the European Union Action Plan on
	expressed in the Sustainable	Sustainable Finance and Greece's national strategy for
	Development Goals (SDGs),	sustainable development. The analysis of the Bank's activities,
	the Paris Climate Agreement,	using the tools provided by UNEP-FI, concluded that the most
	and relevant national and	significant impacts relate to the following four areas (of the
	regional frameworks.	Impact Radar) and society's goals:
		• Water - aligning with SDG 6 - "Clean water and sanitation".
		The portfolio of Alpha Bank shows a significant association with
		sectors impacting water availability. Furthermore, this area of
		alignment has been identified as a major Greek country need by
		the UNEP-FI analysis. Therefore, the Bank has the potential to
		achieve a significant impact by aligning its strategy towards
		SDG 6, for example by supporting the increase of water use
		efficiency and ensuring sustainable withdrawals and supply of
		freshwater to address water scarcity (Goal 6.4).
		• Employment - aligning with SDG 8 - "Decent work and
		economic growth". The portfolio of Alpha Bank shows a
		significant association with sectors potentially impacting
		employment and economic growth. This area of alignment has
		also been identified by UNEP FI as a key challenge for the
		Greek economy especially considering the current employment
		rate. Therefore, the Bank could achieve a significant impact by
		aligning its strategy towards SDG 8, for example by supporting
		the increase of youth employment rate.

SECOND SELF- ASSESSMENT REPORT

Reporting and Self- Assessment Requirements

High-level summary of bank's response

• Waste - aligning with SDG 11 - "Sustainable cities" and SDG 12 - "Responsible consumption and production". The portfolio of Alpha Bank shows a significant association with sectors potentially impacting the circular economy development, particularly the management of waste. Therefore, the Bank could achieve a significant impact by aligning its strategy towards SDG 11, for example by reducing the adverse impact of cities through the financing of waste management activities (Goal 11.6) and towards SDG 12, for example by reducing waste generation through prevention, reduction, recycling and reuse (Goal 12.5). This strategy would also support the European Circular Economy Action Plan of 2020.
• Climate change -, aligning with SDG 13 - "Climate action". The portfolio of Alpha Bank shows a significant association with sectors having a significant impact on climate change. Climate change is also identified as the defining challenge of the decade. The Bank has a role to play in fighting climate change through aligning its strategy towards SDG 13 and the Paris Agreement with the development of a green offering and the reduction of its own and financed emissions to NetZero.

To align the strategy with these goals, the Bank identified a first set of SMART targets in these areas. These strategic orientations have been validated by the General Management of Alpha Bank and will be further detailed and monitored in the coming months, while continuing the implementation of the Principles.

More details related to the Bank's alignment with the SDG's and other relevant frameworks can be found in the "Alpha Bank and Sustainable Development" section (3) of the Sustainability report 2021.

References

Corporate

Responsibility

Policy;

Alpha Bank

SECOND SELF- ASSESSMENT REPORT

Principle 2: Impact and Target Setting

The Bank will continuously increase its positive impacts while reducing the negative impacts on, and managing the risks to, people and environment resulting from its activities, products and services. To this end, they will be set and published targets where the Bank can have the most significant impacts.

Bank's conclusion/statement if it has fulfilled the requirements regarding Impact Analysis.

In 2021, Alpha Bank completed the impact analysis and identified the most significant impacts associated with its Greek activities. Alpha Bank prioritised 4 areas of most significant impact: Water, Employment, Waste and Climate. Alpha Bank will continue to make progress in assessing and disclosing its impacts following the development of tools and methodologies in collaboration with UNEP-FI and its peers.

Reporting and Self- Assessment Requirements

2.1 Plans for Target Implementation and Monitoring

Show that your bank has defined actions and milestones to meet the set targets.

Show that your bank has put in place the means to measure and monitor progress against the set targets. Definitions of key performance indicators, any changes in these definitions, and any rebasing of baselines should be transparent.

High-level summary of bank's response

The Bank has developed the necessary procedures and KPIs to effectively measure and report the progress on the achievement of the targets. For each target, it has been created a roadmap with annual milestones that are dynamically updated based on the Bank's operations and the framework that the Bank operates into. The Corporate Communications division, along with the ESG working Group reassures the robust implementation and execution of the necessary procedures for the achievement and monitoring of the targets set in the previous years.

More details related to the Bank's targets can be found in the "3.7 2021 Performance and 2022 Sustainable Development Objectives" section (3.7) of the Sustainability report 2021.

References

ESG Report 2021

Bank's conclusion/statement if it has fulfilled the requirements regarding Plans for Target Implementation and Monitoring.

Alpha Bank, in 2021, defined and agreed on a detailed roadmap and monitoring processes for the implementation of its targets. The Bank will continue to improve the monitoring and the definition of performance indicators / relevant actions in order to achieve these targets, in collaboration with UNEP-FI and its peers.

2.2 Progress on Implementing Targets

For each target separately:

Show that your bank has implemented the actions it had previously defined to meet the set target.

Or explain why actions could not be implemented / needed to be changed and how your bank is adapting its plan to meet its set target.

The following progress has been made on targets previouslyset:

• Agricultural sector financial products and services: In 2021, 2.7% of the new disbursements have been allocated to the agricultural sector (in cooperation with European Institutions), which is not a significant increase since 2020.

• Alpha Green Loan Products: In 2021, the penetration rate of Alpha Green Loan Products reached 5%, slightly increased compared to the penetration rate of 2020 (4%).

• ESG related assets: In 2021, the total amount of ESG assets (in million Euros) increased by 4.8%, which is very close to the original target of 5% annual increase and in line with the mid-term goal of 25% cumulative increase of ESG related assets by 2025.

SECOND SELF- ASSESSMENT REPORT

Reporting and Self-	High-level summary	References
Assessment Requirements	of bank's response

Report on your bank's progress over the last 12 months (up to 18 months in your first reporting after becoming a signatory) towards achieving each of the set targets and the impact your progress resulted in. (where feasible and appropriate, banks should include quantitative disclosures)

• Renewable Energy Systems (RES): In 2021, the total of MW reached the 965 MW, which is 25 MW higher than the total amount of MW of 2020 and in line with the mid-term goal of 70MW increase by 2025.
• Own operations: The Bank procures 100% renewable electricity for all its buildings and branches.
• Paper usage: In 2021, the tons of paper used were reduced by almost 40%. The target is overachieved due to several initiatives (MPS expansion, digitization of transactions, web penetration, increase of e- statements etc).
• Global recycling rate: In 2021, the annual rate of recycled vs used toners has skyrocketed to 148.8%. The specific index is the percentage of recycled toners to the total consumption of toners. Due to premise clearing of the Bank's Buildings and Branches in the year, the total quantity of recycled toners exceeded total consumption (kg) for 2021.
• Water scarcity and pollution: In 2021, the percentage of the global portfolio (in Euros) related to activities that contribute to water scarcity and pollution has increased by almost one percent.
• Young people and entrepreneurship: The Bank has started the evaluation of partnership proposals and the identification of educational partners, as part of the Corporate Responsibility Program.

Branch accessibility: In 2021, the branch accessibility for persons with mobility disabilities increased by 2%.

Bank's conclusion/statement if it has fulfilled the requirements regarding Progress on Implementing Targets

Alpha Bank has partially fulfilled the requirements regarding Plans for Target Implementation and Monitoring.

SECOND SELF- ASSESSMENT REPORT