ESG best practices have undeniably become a strategic tool for companies pursuing sustainable growth. Environmental, social and governance criteria are now directly linked to stability, corporate reputation and risk management capacity.
Integrating sustainability policies into daily operations underscores the importance of social responsibility as a foundation for long-term business development.
These issues were the focus of the Roundtable Discussion “CFO–CRO: ESG Best Practices Leading to Business Excellence”, featuring leading experts during the 2nd Credit Risk Management Conference, organised by ICAP CRIF in collaboration with Artemis Credit Bureau Ltd.
The financial sector’s leadership role in ESG
Demetris Demetriou, Chief Risk Officer at Bank of Cyprus, stressed that climate change is not a theoretical issue: “The goal of limiting temperature increases has a direct economic impact. If, as predicted, the temperature rises further over the next three years, this will mean higher costs, production losses, and extreme weather events that affect not only businesses but also households.”
He noted that as companies face rising costs, they are often forced to pass them on to consumers, feeding inflation and creating social pressures. Within five years, around 50% of the Eurozone could be classified as high-risk due to climate-related phenomena, he added.
According to Demetriou, the key challenge for banks is not mere adaptation but a genuine green transition, which requires joint action and trust in science. He highlighted encouraging examples from Cyprus, where banks are working together on coordinated sustainability initiatives, demonstrating effective collaboration in addressing the climate crisis.
Green transition and risk evaluation
Joseph Antoniou, Chief Risk Officer at Eurobank Limited, identified two central pillars: the green transition and physical risks. He noted that the EU’s shift toward renewable energy sources brings transition challenges, while natural disasters — such as fires and floods recently witnessed in Cyprus and Greece — significantly affect asset values. “Every organisation must identify and assess the risk factors that concern it, integrate them into its strategy, and connect them with overall credit risk management,” he said, adding that incorporating these parameters is now an essential step toward a resilient and holistic strategy.
He praised Cypriot banks for making progress through collaboration and use of primary data to assess risks, enabling them to design targeted action plans that help clients adapt their business models for sustainability.
Within the Eurobank Group, he added, this approach is being adopted into a unified risk management strategy, strengthening resilience across the financial sector.
Transparency and the value of data
George Samoutis, Chief Risk Officer at Alpha Bank Cyprus, discussed the importance of systematic data collection, which allows organisations to evaluate customers’ ability to meet their obligations effectively. He noted that this improves access to financing by making processes more transparent and structured. However, challenges remain: some clients may hesitate to provide required data, fearing potential consequences. “This is not the end of a process but the beginning,” he said. “The evaluation procedure is not punitive — it’s a tool for self-awareness, helping organisations understand their maturity level in risk and sustainability management.”
Used correctly, ESG evaluations can serve as a roadmap for improvement, enhancing long-term stability and business resilience, Samoutis added.
ESG as a driver of innovation and trust
Sergios Christoforou, Chief Financial Officer of the Paradisiotis Group, underlined the importance of systematic documentation and data verification. Though time-consuming, he said, these practices deliver major benefits for management reliability and information accuracy. “This process helped us identify which data are critical, collect and record them in a way that’s useful for everyone,” he explained, emphasising that consistency and clear communication are vital to collaboration with partners.
Accurate data management allows immediate access to essential information, ensuring compliance and operational reliability. “Although data collection may seem time-intensive, it forms the foundation for sound decisions and maintaining high operational standards,” Christoforou added.
ESG as an opportunity, not a burden
Giannakis Papatheodorou, Project Manager for Health, Safety, and ESG at Photos Photiades Breweries Ltd, described how the company’s ESG assessment process helped map and document all activities in a structured way: “It was an opportunity to see clearly where we stand, identify strengths and weaknesses, and set the groundwork for future growth.”
He said the process boosted the company’s market credibility and opened new paths for partnerships and expansion.
Papatheodorou pointed out that ESG is not just an obligation but a chance for innovation, noting that Photos Photiades Breweries is the first industrial company in Cyprus to achieve zero-emission thermal energy production. “Banks now reward good practices and provide incentives to those taking conscious steps toward sustainable development,” he said, encouraging businesses to “start with small but meaningful steps and make use of the tools available to them”.
The discussion was moderated by Dimitrios Bourpoulas, ESG Project Leader at Artemis Credit Bureau.
