Our environmental management approach
Pillar I: Internal environmental management system
ProCredit institutions monitor their energy and resource consumption through specified environmental indicators, aiming to identify opportunities for reducing negative impact. These measures are implemented throughout the group and form part of the standards followed in all our premises. We apply environmental criteria and energy efficiency measures when designing or renovating our premises, including the purchase of office equipment, as well as in the procurement process and in the selection of suppliers in general. We also invest in technologies that use renewable energy sources and other state-of-the-art measures; in some of our premises we have even achieved passive levels of energy consumption.
Our performance and external certification
In August 2022, all ProCredit institutions based in Germany were re-certified under the EU Eco-Management and Audit Scheme (EMAS) and ISO 14001:2009. The first certification was issued in 2016.
Key environmental indicators of the ProCredit group
We raise environmental awareness and utilise different communication channels that keep our staff up to date with respect to relevant environmental information.
Our efforts to minimise our ecological footprint start with our own premises:
ProCredit Bank North Macedonia Head Office – EDGE Buildings
ProCredit Bank Bulgaria Head Office – EDGE Buildings
ProCredit Bank Georgia – EDGE Buildings
Edificio Matriz Banco ProCredit Ecuador – EDGE Buildings
ProCredit Bank Ukraine Head Office – EDGE Buildings
ProCredit Bank Kosovo Head Office – EDGE Buildings
Pillar II: Management of environmental and social risk in lending
Apart from our direct impact, we also influence the environment indirectly – by proactively choosing to finance certain types of investments and refusing to finance others. We are committed to financing environmentally and socially sound projects and work only with businesses that comply with environmental regulations and which do not endanger the health, safety or well-being of their staff or neighbours.
As part of our approach to managing the environmental and social risk in lending, we take the following steps:
- filtering out and rejecting loan applications that would support activities covered in our Exclusion List
- assessing and monitoring the environmental and social risk of all business clients
- committing to measuring and disclosing greenhouse emissions and assessing climate risk associated with our portfolio of loans and investments in accordance with PCAF (Partnership for Carbon Accounting Financials) standards
- incentivising improvements to our clients’ activities in order to help them reduce their environmental impact
Our environmental management approach
Managing the Environmental and Social Risk of Lending / PDF 0.1 MB
Group-wide E&S risk assessment process
(1) An on-site visit is mandatory for any legal entity financed with an exposure above EUR 750,000 whose economic activity is assessed as posing a high level of environmental risk.
However, we do not simply refuse to do business with companies because they do not score well with regard to certain criteria. Rather, we engage our clients in dialogue to discuss how our services can help to improve their environmental and social performance in an economically sound way. From the clients’ point of view, managing environmental risks might not only bring their company in line with more demanding regulations, but might also reduce costs and even create additional business opportunities.
Pillar III: Green finance
We offer specialised green loans classified under energy efficiency, renewable energy and environmentally friendly investments based on internally defined technical criteria.
The clients we target include private individuals seeking to improve energy efficiency in their households as well as businesses aiming to reduce energy consumption and their impact on the environment. Such investments include environmental protection measures, modern machinery and energy efficient business premises, which can be beneficial for our clients in terms of both reducing impact and increasing profitability.
Green loan portfolio by investment type
Over time, our banks have developed accumulated expertise in financing eligible investments in areas such as energy efficiency and renewable energy and have established trust in these segments within their respective markets. Close cooperation with our clients allows us to understand and support them in their businesses. In addition, by bringing environmentally concerned businesses together, we provide a forum for discussion, knowledge-sharing and the exchange of ideas and best practices among our client group.