ProCredit Bank Kosovo, as part of the ProCredit group of banks, is oriented toward the sustainable growth of the country’s economy. We continuously assess our actions and activities with regard to our concept for development, which goes beyond a singular focus on economic growth in its traditional sense. Instead, we evaluate our actions in terms of a broader responsibility towards the countries where the ProCredit group operates. ProCredit Bank conducts this analysis not only from the perspective of profit and client needs but, above all, from the perspective of the impact our actions have on society and the surrounding environment.
Minimising negative environmental impacts and proactively promoting a sustainable way of doing business is an integral part of our strategy – not only in our lending operations or services for clients but also in our own day-to-day actions.
To support this objective, we have developed and implemented a comprehensive environment management system that is certified with the ISO 14001 standard. This three-pillar system was implemented in 2008 and not only seeks to reduce the internal and external environmental impact of ProCredit Bank but also promotes sustainable loans and investments that have a positive environmental impact.
What are the three pillars?
1. Internal environmental management concerns all internal measures taken by the institution to reduce the bank’s environmental impact. In order to improve the internal environmental impact, it is necessary to first define quantitative indicators to measure, assess, and set objectives to improve environmental performance. ProCredit Bank has introduced a sophisticated system and is able to precisely measure and monitor these indicators, which include greenhouse gas emissions, water consumption, etc. Throughout the years we have continuously reduced our electricity expenses by investing in energy efficiency measures and equipment in our buildings, as well as making investments in photovoltaic devices that cover a considerable part of the electricity demand for our Head Office. We have significantly reduced the use of paper by investing in digital signature technology; we have reduced water consumption by investing in smart devices and by increasing the awareness of our staff. Furthermore, we have replaced the fossil-fuel-driven car fleet with electric vehicles, thereby reducing emissions of greenhouses gases and carbon dioxide. As a bank, we also developed infrastructure for charging electric cars, also available for the general public, by investing in 25 electric charging stations throughout the territory of Kosovo.
Our medium-term goal is to become a carbon-neutral institution by 2023. To achieve this goal, the key shareholder of the ProCredit group, ProCredit Holding, has undertaken an initiative to invest in a project in Kosovo to produce electricity from solar power. The project’s capacity is 3Mw with an investment value of EUR 2.2 million and it serves as an additional measure to offset negative environmental impacts while encouraging similar investments by other institutions or businesses operating in Kosovo. ProCredit Bank has made a commitment that, upon completion of the project, all electricity consumed by the institution will come from renewable sources, namely solar power. The reason for selecting Kosovo for this investment is the fact that in Kosovo around 95% of electric energy is produced by coal used in two very old power plants, where for each kilowatt of electric energy produced 1kg CO² is released. Therefore, each investment in renewable energy is a direct investment in the health of society and of the generation to follow.
In addition to investments with direct or indirect impact on reducing emissions of greenhouse gases, we continuously invest in other measures, such as planting trees: so far we have planted over 1,000 trees and an area over 128,000m2 has been greened.
All these achievements are reported on regular basis in accordance with the Global Reporting Initiative (GRI) standard.
2. Management of environmental and social risk in lending. We are committed to financing sound environmental and social projects, and we work only with companies that do not endanger the environment or the health and safety of their staff. We do not finance activities that have irreparable negative impacts on the environment and society; such activities are part of our defined Exclusion List. Example: we do not finance businesses that operate in protected areas, which cultivate and produce tobacco and alcohol, conduct mining activity, etc. Additionally, we assess environmental and social risks for each business request for financing. In this area, our medium-term goal is to maintain and further increase the high level of environmental and social competence of our staff so that we can continue to support our clients towards sustainable development.
3. Green financing. We have introduced and promoted green loans to support investment in energy efficiency, renewable energy, and environmental protection. In November 2021, the ProCredit Group green loan portfolio exceeded EUR 1 billion, or over 20% of the total group portfolio, and in Kosovo alone the green portfolio was EUR 98.5 million, or 17% of the bank’s overall portfolio. In order to continue supporting the sustainable development of our clients in Kosovo, one of our goals until 2023 is to further promote green loans and to exceed a share of 20% of the overall portfolio. At the same time, we will further improve our already advanced capacities in assessing and financing renewable energy projects, and this area will receive special focus during 2022.
Now more than ever it is necessary to promote sustainable investments as the only way of decoupling economic growth from the use of exhaustible resources. Thus, we apply a holistic and individual approach towards each client: we finance sustainable green projects and at the same time assess the risks stemming from client activities, tailoring our advice to minimise their environmental and social impact.
Our environmental management system cannot be realised or implemented by one single person or department. It has been anchored in our institution at each level of the organisational structure and every member of staff, from the top managerial officers to the operational levels.
Visar Paçarada
Member of the Managing Board
ProCredit Bank Kosova