The panel on the transformation of the financial system and ESG challenges continued with the remarks of Mr. Dimitrios Kazazoglou-Skouras, Group ESG Coordinator at Alpha Services and Holdings S.A.
Mr. Kazazoglou, stressed that financial institutions have a strong desire and an urgent need to adopt more sustainable practices because doing so will have a positive long-term impact on their profitability. He then pointed out that the main objective of the banks is to manage the climate risk of their clients and guide them towards more sustainable solutions while providing the necessary financial tools, as the clients are not always aware of these risks nor do have the necessary tools to address them. Therefore, in the near future, financial institutions will provide funding, incentives, and guidance for the development of sustainable investments, while potentially “penalizing” clients, who when investing, fail to take sustainable considerations, as they face higher risks.
Furthermore, Mr. Kazazoglou stressed that effective corporate governance (pillar “G”) plays a key role in the proper integration of environmental and social aspects. He then concluded by stating that the targets set by legislation to mitigate climate change are difficult to achieve based on projections but argued that “the more ambitious targets we set, the closer we get to achieving them“.

The Training Day of the 7th ECB Simulation Conference concluded with a presentation by Ms. Kiara Konti, Partner, Climate Change and Sustainability Services Leader at EY in Greece and EY Central, Eastern and Southeastern Europe & Central Asia (CESA).
Ms. Konti highlighted a significant gap in understanding the impact of ESG on business models, emphasizing that each industry is affected uniquely and possesses its distinct characteristics. She also stressed the need for a paradigm shift in the way profitability is evaluated, moving from a medium to long-term perspective and incorporating non-financial information when assessing business performance.
Moving forward, Ms. Konti underscored the importance of understanding the distinction between sustainable development and ESG, as they follow different approaches. Moreover, she mentioned that the challenges of the green transition exhibit three main characteristics: a) they are multidimensional, b) they operate systemically, i.e., one affects the other, and c) they are dynamic, evolving over time.
In concluding her remarks, Ms. Konti drew attention to the importance of connecting information, techniques, and knowledge from various departments, businesses, and sectors to address emerging challenges effectively.