ESG principles should be viewed as a strategic investment rather than a regulatory burden, Marios Skandalis, Director General of the Association of Cyprus Banks (ACB), said at the 3rd Credit Risk and Sustainability Conference.
Skandalis stressed that environmental, social and governance (ESG) practices were essential for building more resilient, transparent and sustainable businesses, ultimately contributing to long-term economic prosperity.
“ESG is not an administrative burden. It is perhaps the most successful business strategy investment for the future,” he said, highlighting the importance of social equality, environmental integrity and sound corporate governance.
He emphasised that banks had a central role in supporting businesses through the sustainability transition, particularly small and medium-sized enterprises, by providing guidance, appropriate tools and incentives rather than penalising companies that had yet to meet sustainability targets.
Skandalis also highlighted the collaboration between Artemis Credit Bureau, the ACB, its member banks and ICAP CRIF in developing a standardised ESG assessment framework using the international CDCS platform.
The system allows businesses to complete a single, standardised ESG questionnaire through Artemis, instead of submitting separate assessments to each bank. Companies receive an ESG score and an action plan to help improve their performance, while banks gain access to reliable, comparable data to support credit risk assessments.
He described the initiative as a significant achievement in European financial innovation, positioning Cyprus at the forefront of coordinated ESG assessment.
“Let us see ESG not as an obstacle to overcome, but as the compass that will guide us towards a stronger, more resilient and fairer economy,” Skandalis concluded.
