For more than two decades, ProCredit Bank has been working hard to reduce its direct and indirect impact on the environment. Their commitment to achieving zero carbon dioxide emission goals is reflected in their investment in renewable energy sources and through the incentives they provide to customers to do the same.
Miloš Stepandić, head of the business affairs department of ProCredit Bank, talks about how they achieve their goals and what plans they have for the next period.
What does sustainable banking mean for ProCredit Bank?
– From the very beginning, our development focus has been sustainable banking. This practically means that we have adapted all our work processes to sustainable practices: from online banking, through strictly controlled consumption of energy and all other resources in our daily work, to the regular measurement of carbon dioxide emissions, the use of a low-emission car fleet, the development of a network of chargers for electric vehicles . Of course, also through conducting energy audits of the bank’s office buildings in order to find solutions for optimal management of our own energy sources, i.e. increasing the energy efficiency of our business.
If we take into account that as much as 90 percent of our portfolio consists of micro, small and medium-sized enterprises, entrepreneurs and farmers, it is clear how much responsibility and opportunity we place before us in the promotion of sustainability. Individually, these factors may not act as the key elements needed for ecological transition, but collectively they can have a significant impact on the environment due to the diversity of their activities. This diversity includes different industries, production processes and ways of using resources, which means that a comprehensive approach to sustainability can lead to a reduction of the overall ecological footprint. Our business model is focused on providing financial services to innovative companies with a high degree of digitization. Through collective efforts to reduce resource consumption and transition to sustainable practices, micro, small and medium-sized enterprises can significantly contribute to the global goals of environmental protection and sustainable development.
How to improve sustainable banking?
– There are many opportunities for improvement. So far, we have successfully placed more than 400 million euros of green investments and thus contributed to the modernization of the infrastructure, through the application of new technologies for the production, storage and distribution of energy from renewable sources. The energy transition is not only a social and technological challenge, but also an economic one. Then the role of financial institutions becomes crucial.
IN FOCUS:
How is the analysis of clients in the financing approval process? How do you encourage clients to do more sustainable business?
– Our impact begins with a thorough financial analysis. A special contribution in the financing segment is the support of colleagues from the Department for Sustainable Development, we are even the first bank in Serbia to establish a special department dealing with energy efficiency. We analyze in great detail all aspects of our clients’ operations, including the location of their activities, the impact on natural resources, the materials, processes and equipment used in their production. Through carefully established procedures, we jointly identify and classify the impact of company activities on the work and environment. Procedures help us establish standard methods for identifying and assessing the impact of activities on the environment as well as identifying potential risks.
In case we finance companies that are involved in environmentally risky activities, we investigate whether there are more sustainable alternatives on the market that could replace current materials and processes, and we offer solutions to improve those processes. When deciding on loan approval, we consider in detail whether the client’s activity corresponds to the criteria from ProCredit Bank’s list of excluded activities. The ultimate goal is to replace harmful practices with better options and provide financial support to those who strive for progress and who recognize the potential and importance of sustainable business.
How do you support the green transition?
– ProCredit Bank has financed over 100 solar power plants, either for own consumption or for commercial use. Part of the green transition that we want to support are renewable energy sources, but other types of investments should not be neglected either, as they are equally important. With that in mind, around 60 percent of our green portfolio is dedicated to energy efficiency investments. We believe that only with a holistic approach can we move to a more sustainable model and further improve our economy.
ProCredit Bank
The interview was published in To the magazine of the Energy Portal, ENERGY TRANSITION
Source: energetskiportal.rs
