Case study: How ProCredit works with its clients and customers to encourage sustainable practices

The ProCredit group specializes in providing banking services to small and medium-sized enterprises (SMEs) in transition economies and offers direct banking services to private clients. ProCredit operates in South Eastern Europe, Eastern Europe, South America, and Germany. Its target audience includes innovative companies with dynamic growth and stable, formalized structures. ProCredit is a signatory of the Principles for Responsible Banking (PRB) and is, accordingly, working with its clients and customers to encourage sustainable practices and enable sustainable economic activities.  Tweet This!

This case study is based on the 2022 Impact Report by ProCredit, prepared in relation to its implementation of the PRB, that can be found at this link. Through all case studies we aim to demonstrate what ESG/ sustainability reporting done responsibly means. Essentially, it means: a) identifying a company’s most important impacts on the environment, economy and society, and b) measuring, managing and changing.

Which Principles for Responsible Banking have been addressed?

The Principles for Responsible Banking addressed in this case are:

• • • Principle 3: Clients and Customers
      • 3.1 Client engagement
    • Principle 4: Stakeholders
      • 4.1 Stakeholder identification and consultation

Stakeholder identification and consultation

Please describe which stakeholders (or groups/ types of stakeholders) you have identified, consulted, engaged, collaborated or partnered with for the purpose of implementing the Principles and improving your bank’s impacts. This should include a high-level overview of how your bank has identified relevant stakeholders, what issues were addressed/results achieved and how they fed into the action planning process.

ProCredit collaborates with various stakeholders to help achieve societal goals. ProCredit maintains continuous partnerships with key international financial institutions (IFIs) like the EBRD, OeEB, and Finance in Action, to foster sustainable finance by providing access to funds, technical assistance, and other initiatives. ProCredit also works closely with its main consulting partner, Internationale Projekt Consult (IPC), which assists ProCredit with conducting research, staff training, tool development, and sustainability reporting for its operations and loans. Additionally, ProCredit is signatory of several sustainable standards and memberships, including the UN Global Compact, PCAF, GRI, SBTi, NZBA, and the Finance Leadership Group on Plastic to the Intergovernmental Negotiation Committee (INC). Furthermore, ProCredit engages with all its clients and suppliers, promoting sustainable practices and evaluating environmental and social (E&S) risks. These efforts are reflected in the significant number of sustainable suppliers in ProCredit’s network and the distribution of E&S risk categories within its portfolio.

How did ProCredit work with its clients and customers to encourage sustainable practices and enable sustainable economic activities?

In its 2022 Impact Report ProCredit reports that it works with its clients and customers to encourage sustainable practices and enable sustainable economic activities as follows:

ProCredit strives to be a reliable partner, guiding its clients, particularly SMEs, toward sustainable development. ProCredit’s sustainability principles are anchored in its Code of Conduct, which is a fundamental requirement for all its employees, clients, and suppliers to follow. The Code addresses environmental, social, and governance (ESG) standards, covering ethical behaviour (such as anti-corruption, anti-money laundering, diversity, and anti-discrimination), social matters (including human and labour rights), and environmental concerns (such as environmental awareness, risk assessment, and the promotion of green investments). Additionally, ProCredit integrates its clients’ social and environmental risks into its credit decision processes to minimize negative impacts and potential environmental and social risk, as outlined in its Group Environmental Management Policy, Group Standards for Managing the Environmental and Social Impact of Lending, and its Plastic Strategy. Recognizing the significance of sector prioritization and the related impacts and risks, ProCredit established a working group on sustainable agriculture to address the challenges of this vulnerable sector, which plays an important role in its portfolio.

Simultaneously, ProCredit actively encourages and supports investments in green technologies, directing its portfolio towards sustainability, as reflected in its goals and the green initiatives outlined in the “Sustainable Finance” section.

UN Principles for Responsible Banking: Accelerating a positive global transition for people and the planet

With over 300 signatory banks representing almost half of the global banking industry, the Principles for Responsible Banking are the world’s foremost sustainable banking framework. Through these Principles, the banking community takes action to align core strategies, decision-making, lending and investment with the UN Sustainable Development Goals and international agreements such as the Paris Climate Agreement.

FBRH Principles for Responsible Banking (PRB) Assurance:

First class PRB assurance services: The result of solid, hands-on ESG/ Sustainability experience

• • • FBRH is a GRI Certified Training Partner (Global), IEMA Training Centre and a member of CPD.
    • FBRH builds trust. Over 200 reviews from top professionals from around the world demonstrate our ability to build strong, trusting business relationships.
    • FBRH possesses a unique skill set that combines ESG/sustainability certified training, experience in advisory services and report preparation, and ESG/sustainability report assurance.

The combination of all the above empowers FBRH to provide first class Principles for Responsible Banking (PRB) assurance services.

References:

This case study is based on published information by ProCredit, located at the link below. For the sake of readability, we did not use brackets or ellipses. However, we made sure that the extra or missing words did not change the report’s meaning. If you would like to quote these written sources from the original please revert to the following link:

https://hr.procredit-group.com/images/unknown/pdf/procredit-impact-report-2022_1681644153.pdf

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