Corporate Social Responsibility Report 2015 2016 CONTENTS 4 INTRODUCTORY MATTER 4 Message from the Chairman of the Board of Directors and from the CEO of the Bank Milestones in the history of NBG CSR milestones in the history of NBG Corporate profile Memberships Sustainability Indexes Awards - Distinctions NBG and Corporate Social Responsibility Stakeholders Materiality Analysis Targets Recap for 2015 4RESPONSIBILITY TO THE ECONOMY 45 Creating value Key Financials Capital Strengthening and Rights Issue Shareholder Structure, Legal Status & Registered Office Corporate Governance Management and its Committees General Meeting of Shareholders 4 RESPONSIBILITY TO THE MARKET 75 Products and Services Supporting Medium and Large Enterprises Supporting SMEs Corporate Special Assets Units Support to Households: Debt work out – Rescheduling Framework Electronic Services and Pioneering Initiatives via Alternative Networks Customer Relationship Management Customer Opinion and Satisfaction Survey Communication and Responsible Reporting Transparency in Supplies 4 RESPONSIBILITY TO OUR EMPLOYEES 107 Code of Ethics NBG Human Resources Human Resources Management Strategy Issues Management Issues Training Social Benefits for Staff NBG Staff Health Fund (TYPET) 2 NBG Staff Insurance Organizations (AOPETE) Other matters Union Organisations – CLAs 4 RESPONSIBILITY TO THE ENVIRONMENT 161 Environmental policy Climate Change: Threats and Opportunities Environmental Management System Conserving Energy and Natural Resources Rationalizing Travel and "NBG Travel Policy" Management of Solid Waste Environmental Supplies Criteria Responsible Financing – Environmental Risk Evaluation and Management Promoting Green Banking Enhancing Stakeholder Awareness 4 RESPONSIBILITY TO SOCIETY 179 “Responsibility” Corporate Social Action Programme Responsibility to the Community Responsibility to the Environment Responsibility to our Cultural Heritage The NBG Cultural Foundation (MIET) The NBG Historical Archive 4SOCIAL ACTIONS BY THE BANKS OF THE NBG GROUP 196 Turkey – Finansbank Bulgaria – United Bulgarian Bank Romania – Banca Romaneasca Serbia – Vojvodjanska Banka FYROM – Stopanska Banka Albania – Bank NBG Albania SH.A. Cyprus – National Bank of Greece (Cyprus) Egypt – NBG Egypt South Africa – South African Bank of Athens (SABA) 4 INFORMATION ON THIS REPORT 210 Further Information on this CSR Report GRI indicators Independent Assurance Statement 4 FEEDBACK FORM 224 3 Message from the Chairman of the Board of Directors and from the CEO of the Bank National Bank of Greece, backed by its history of 175 years of business operations, has consistently played a leading and institutional role in the economic and social progress of the country, undertaking key initiatives, particularly when times were hard. In addition, it develops structures and policies that generate high standards of professional conduct and business ethics. Against this backdrop, and fully aware of the vital significance of Corporate Social Responsibility (CSR) for the attainment of the sustainable growth of our business, the Bank systematically cultivates the concept of Social Responsibility as one of its key priorities, incorporating it into its strategy. Accordingly, it undertakes initiatives and implements actions that meet a wide range of important needs and requirements, thereby enhancing the overall contribution of the Group to society at large. Despite the difficult conditions in 2015, the financial system in general responded effectively, swiftly and with professionalism to the multiple challenges. Following the successful completion of recapitalization in December 2015 with significant par- ticipation by private investors, the systemic banks have strengthened their capital base and are ready to meet the require- ments of their basic role, which is to channel funds to the actual economy and fund sustainable investment and business initiatives. The NBG Group, backed by its noteworthy tradition, reputation, pioneering role and significant contribution to the economic and social transformation of Greece, and above all by the solid and long-standing trust of shareholders, customers, depos- itors and employees alike, serves as a pillar of stability and confidence for the Greek economy and society. As part of this ongoing endeavor, NBG upgraded its CSR procedures and applied – for the fourth year – the AA1000 APS standard, which aims at analyzing and evaluating the basic expectations of stakeholders and, at the same time, enabling a more effective response to these expectations. At the same time, in 2015 and within the framework of the new GRI G4 stan- dard, NBG designed and successfully completed a materiality analysis in collaboration with an independent external body, using personal interviews and a materiality workshop, placing special emphasis on the opinion of all interested parties so as to design a larger stakeholder engagement program and define ways to meet their expectations. Standing by its commitments, in 2015 NBG maintained – within the scope of its strategy – its broader social actions, sup- porting efforts to foster sustainable growth, backing actions for environment-friendly development and sustainability, en- hancing the caliber of its human resources and the provision of its services, and its overall contribution to the society in which it operates. Accordingly, the Bank supported a wide range of initiatives, successfully attaining key and demanding targets, including the following: ¾ Review and update of the Group's Code of Ethics with a view to complying with the applicable regulatory framework and "best" international practices. ¾ Support for SMEs and large corporations, with rescheduling of debt servicing obligations, as well as the granting of new financing facilities so as to help them meet the challenges of the economic crisis. ¾ Efforts to enhance the competitiveness of SMEs, having secured participation in the Community funding initiative JEREMIE (which is being implemented in cooperation with the European Investment Fund and involves co-funded loans), as well as participation in the funding schemes of ETEAN SA. ¾ Participation in the JESSICA programme (Joint European Support for Sustainable Investment in City Areas) by managing the Urban Development Funds of Attica, Western Greece, the Ionian Islands and the Environment through an agreement with the European Investment Bank. ¾ Financing of Contract Farming Program channelling €3.35 million in 2015 to farmers to help them cover the production cost of their produce. ¾ Support, through credit facilities, of investment in RES so as to contribute to the country’s efforts to achieve a positive environmental footprint. 4 ¾ Support for tens of thousands of households in their efforts to meet their debt obligations, under the pressure of reduced incomes and unemployment. ¾ Stepping up staff training through a variety of training programmes. ¾ Support for equal opportunities for all our employees, and ensuring first class health and safety conditions in the work- place. ¾ Support for initiatives and actions that encourage participation by our staff in voluntary actions and community service. ¾ Successful running of NBG’s “Customer Ombudsman”, in the context of our new code of transaction conduct with the customers. ¾ Disclosure, via the Carbon Disclosure Project, of data relating to our strategy regarding climate change, as well as data on water use and greenhouse gas emissions. ¾ The reduction of indirect greenhouse gas emissions generated by our business operations, with the registration of 236,280 new users to our Internet–Phone–Mobile Banking services. ¾ Offering of new “green” products aimed at, inter alia, improving the energy efficiency of buildings and expanding the use of RES. ¾ Implementation of our “Responsibility” CSR programme by means of which we backed activities and initiatives supporting the community, the cultural heritage and the environment. ¾ Launching of Act4Greece initiative aiming at the financial support and promotion of social and development actions. Under this initiative, NBG has undertaken to support the program of the Ministry of Labor, Social Insurance & Social Solidarity for the feeding and nutrition of primary schoolchildren, who are among the most vulnerable population groups in specific areas of the country that have been most severely hit by the crisis and which suffer from high rates of unem- ployment. ¾ Commencement of the second phase of works on the new surgical wing of Evangelismos Hospital. ¾ Supporting the Ministry of Health by supplying urgent care equipment to 28 hospitals around the country, amounting to circa €1 million. ¾ Collaboration with the Ministry of Labor, Social Insurance & Social Solidarity on the issuance of the "Solidarity Card" that was granted to 150,000 families/beneficiaries for buying food in specific food stores. ¾ Continued support for the NBG Cultural Foundation and our Historical Archives, both of which are model institutions of their kind in Greece. In any event, despite the adverse economic and social climate, we are committed to continuing our contribution to society at large, in a spirit of respect for our shareholders, our customers, our employees and Greek society as a whole. The Chairman of the Board The Chief Executive Officer P. Thomopoulos Leonidas Fragkiadakis 5 6 7 8 9 CORPORATE PROFILE The vision of the NBG Group is to maintain its position as a strong bank in Greece, continuing as a key pillar of Greek economic growth. Lever- aging its key competitive