For over two decades, ProCredit Bank has been working diligently to reduce its direct and indirect impact on the environment. Their commitment to achieving zero carbon emissions is reflected in their investments in renewable energy sources and the incentives they offer clients to do the same.
Miloš Stepandić, Head of Business at ProCredit Bank, discusses how they are achieving their goals and their plans for the future.
Q: What does sustainable banking mean for ProCredit Bank?
A: Our focus has been on sustainable banking from the beginning. This means that we have adapted all our work processes to sustainable practices: from online banking to strictly controlled energy consumption and other resources in our daily operations, to regular measurement of carbon emissions, the use of a low-emission vehicle fleet, and the development of a network of chargers for electric vehicles. We also conduct energy audits of the bank’s office buildings to find solutions for optimal energy management and increase the energy efficiency of our operations.
Considering that 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 have in promoting sustainability. Individually, these factors may not seem like key elements needed for an ecological transition, but collectively, they can have a significant environmental impact due to the diversity of their activities. This diversity includes different industries, production processes, and resource usage, meaning a comprehensive approach to sustainability can reduce the overall environmental footprint. Our business model is focused on providing financial services to innovative companies with a high degree of digitalization. Through collective efforts to reduce resource consumption and transition to sustainable practices, micro, small, and medium-sized enterprises can significantly contribute to global environmental protection and sustainable development goals.
Q: How can sustainable banking be improved?
A: There are many opportunities for improvement. So far, we have successfully allocated over 400 million euros in green investments, contributing to the modernization of infrastructure through the use 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, where the role of financial institutions becomes crucial.
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Q: How do you analyze clients during the financing approval process? How do you encourage clients to operate more sustainably?
A: Our impact starts with a thorough financial analysis. An essential contribution in the financing segment comes from the support of our colleagues in the Department for Sustainable Development, and we are the first bank in Serbia to establish a dedicated department for energy efficiency. We carefully analyze all aspects of our client’s operations, including the location of their activities, their impact on natural resources, the materials used, and the processes and equipment involved in their production. Through well-established procedures, we jointly identify and classify the impact of companies’ activities on the environment and workplace. These procedures help us establish standard methods for identifying and assessing environmental impacts and potential risks.
If we finance businesses engaged in environmentally risky activities, we explore whether more sustainable alternatives are available in the market that could replace current materials and processes and offer solutions to improve those processes. When deciding on loan approvals, we carefully assess whether the client’s activities meet the criteria outlined in ProCredit Bank’s Exclusion List of Activities. The ultimate goal is to replace harmful practices with better options and provide financial support to those striving for progress and recognizing the potential and importance of sustainable operations.
Q: How do you support the green transition?
A: ProCredit Bank has financed over 100 solar power plants for personal or commercial purposes. Renewable energy sources are a key part of the green transition we want to support, but other types of investments should not be overlooked, as they are equally important. With this in mind, about 60 percent of our green portfolio is dedicated to energy efficiency investments. We believe that we can only transition to a more sustainable model and improve our economy through a holistic approach.
ProCredit Bank
Read the whole interview in the new issue of the Energy portal Magazine ENERGY TRANSITION
