Centralized procurement model
The Group has adopted a centralized procurement model that manages the sourcing of goods and services and the relationship with suppliers, aiming to strengthen transparency, identify cost saving opportunities, and ensure the high quality of supplied goods and services. In this context, suppliers’ performance is evaluated on an annual basis.
A new single electronic platform for procurement and supplier management is already being used in the bank, for the automation/standardisation and improvement of actions in the procurement cycle. The platform is the main channel of communication and collaboration with the suppliers, as well as the core infrastructure for the management of suppliers’ contracts, purchase requisitions’ approvals, purchase orders and invoices.
During the procurement phase via the procurement platform, suppliers are initially asked to fully comply with the bank’s rules and regulations. Furthermore, they are requested to declare, inter alia, that they fully comply with the labour law, that their proposal is in all aspects fair, without any conflict of interest, and that they have not been irrevocably sentenced to any penalty for any of the offences of bribery and corruption. At the same time, in addition to their financial offers, companies are obliged to submit information and documentation regarding their viability/sustainability and the quality of their services, such as the company’s profile, legal documentation, certifications, technical specifications, etc. The requested additional information varies, depending on the nature of the procurement.
As part of its effort to support local economies and societies, and to reduce the environmental footprint due to the transfer of goods, the bank purchases most of its supplies from local and/or domestic suppliers.
Piraeus Group procurement policy
Piraeus Group procurement policy defines the governance framework of the procurement cycle in Piraeus Group, by specifying the rules and responsibilities for the purchasing of goods and services to cover the operational needs of the organizational units of Piraeus Group, as well as the management of the relationship with existing or potential suppliers.
The policy is applied uniformly across Piraeus Group. Subsidiaries may adjust their own procedures, always following the policy’s principles.
Main pillars of the policy are, among others, the following:
- Centralized management of purchasing of goods and services.
- Cost saving opportunities, while ensuring the high quality of supplied goods and services.
- Establishment of a governance framework ensuring transparency, full documentation, and competitive terms in relation to the market.
- Clear definition of the responsibilities of involved parties and standardization of procedures.
- Establishment of a unified framework and the utilization of framework agreements, pre-selected supplier panels, and e-catalogues, especially for standardized goods and services.
- Systematic suppliers’ or external partners’ evaluation and establishment of mutually beneficial collaborations.
- The reduction of operational and credit risks deriving from collaboration with suppliers.
Green procurement
Piraeus Bank applies specific green procurement principles by opting for products with the less possible negative impact on the environment, aiming not only to reduce the group’s environmental footprint/impact, but also to assist in developing a green procurement market. Piraeus Bank is gradually integrating ESG criteria into its procurement processes. In cases where it is both technically and financially feasible specific environmental criteria are considered (e.g., environmental certifications). Especially for Piraeus Bank activities with material environmental impact (according to the assessment of the bank’s Environmental and Energy Management System), environmental criteria are already incorporated, such as environmentally certified paper/paper with FSC (Forest Stewardship Council) certification, LED light bulbs, energy-efficient electrical and electronic equipment and new generation laptops. In addition, the fleet of corporate vehicles is being gradually replaced with low or zero-emissions vehicles, while Piraeus Bank, through the provision of Guarantees of Origin (GOs) certifies that the total electricity consumed in the bank's building infrastructure comes from Renewable Energy Sources (RES).
Gender responsive procurement
Piraeus Bank’s operations and business behavior are guided by principles established by the United Nations, such as the Global Compact, the Principles for Responsible Banking, the Principles for Responsible Investment, and the Women’s Empowerment Principles. These frameworks provide the foundation for identifying environmental, climate, social and governance risks that businesses may face (ESG risks).
Sustainable development, social contribution and responsible banking are fundamental elements of the group's strategy and are already incorporated in all its activities, in order to align its business model with the 2030 Agenda of the United Nations and the Sustainable Development Goals (SDGs).
Piraeus Group is committed to creating a business environment of Equal Opportunities for All (Goal 5 "Gender Equality") and is the first financial institution in Greece to sign the United Nations Women's Empowerment Principles, aiming to promote equal opportunities for women in the workplace, marketplace and community.
Therefore, social criteria are gradually integrated into the group’s supplier selection process. In procurement tenders, candidate suppliers are requested to provide gender related information for their business, i.e. the ownership status and the governance structure of the company, the share of women in managerial positions, and the gender breakdown of their permanent workforce (Gender Responsive Procurement).
The group integrates these social criteria aiming to strengthen women’s entrepreneurship and promote gender equality and women empowerment in the workforce. Piraeus Bank is encouraging suppliers who have already adopted gender-related strategies to participate in procurement tenders.
Procurement & suppliers management platform
Piraeus Bank, as part of the broader digital transformation program introduce a new single electronic infrastructure, to standardize the management of the entire procurement cycle. The goal is that the new platform will contribute to the automation and optimization of the actions required and it will also become a channel of communication and collaboration with our suppliers/collaborators, regarding the following procedures:
- Purchase requisitions management.
- Procurement tenders.
- Procurement contracts management.
- Purchase orders management.
- Invoicing.
- Suppliers’ management.
The functionality is available through the specialized cloud platform "Coupa", which is installed within the European Union and is already used worldwide by organizations and companies.
The platform does not require from our suppliers to install any hardware or software and there is no usage charge at any time.
Platform data will be processed by Piraeus Bank a) one hand acting under the name and on behalf of itself as the data controller, for the aforementioned purposes, with Coupa as the data processor and b) on the other hand acting on behalf of Piraeus Financial Holdings with the latter as the data controller, for the aforementioned purposes, with Piraeus Bank as the data processor by virtue of their contractual relationship. For information regarding the protection of personal data, one can refer to the Personal Data Protection Policy which is available in Piraeus Bank’s website.