NEWSLETTER, Q2/2020

ProCredit EcoImpact Report ‘19 and RE1 achievements

Date

: 05/

2020

1 Renewable energy

www.procreditbank.ge

ProCredit group’s Impact Report

Our achievements in 2019

The Impact Report is a comprehensive document that describes our efforts towards economic, social and ecological sustainability. As in 2018 and 2017, the current report was developed in line with Global Reporting Initiative (GRI) Standards.Additionally to the seven SDGs set last year, we

have included SDG 10 “Reduced inequalities” in the report for 2019, as we consider it part of our mission/responsibility to contribute to steady and sustainable economic growth in the countries in which we operate.

In the 2018 report, the group specifically set three medium-term goals for the coming three to five years on the way to achieving its sustainability ambitions. The following illustrates the progress made with regard to these goals in the course of the last year.

13%

goal 20%

0%

4%

8%

12%

16%

20%

2017

15%

2018

17%

2019

Development of green loan portfolio share

20% green loans

Increase the relative size of the group’s green loan portfolio to 20% of the total loan portfolio, while at the same time main-taining the high quality of our green lending activities.

2017

14,946

2018

12,541

2019

10,161

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

Tonnes of CO2

Development of ProCredit’s CO2 footprint

Carbon neutral

Become carbon neutral with regard to the group’s own CO2 emissions.

Environmental management

Special topic: plastic (all staff)

Renewable energy

(environmental, business

and risk staff)

Green finance(business staff)

E&S impact assessment

(environmental, business and

risk staff)

Ethics course

at PCBA2

(selected participants from banks)

Semi-Annual Group Green

Finance Seminar(management,

evironmental and business staff)

Social and environmental training for staff

Staff competence

Maintain and further increase the high level of social and environmental competence among our staff.

Environmental courses at PCMA3

and PCBA2

(selected participants from banks)

Code of Conduct

(all staff)

2 ProCredit Banker Academy,3 ProCredit Management Academy

The group’s environmental performance in 2019 and staff development

Did youknow?

In 2019 compared to 2018, the ProCredit group’s green loan portfolio grew by 17.5% to EUR 795.4m, representing 16.6% of the group’s total loan portfolio.

The group’s environmental performance

in 2019

Staff development

Absolute electricity consumption was reduced by 6%

CO2 emissions were reduced by 19%

CO2

Printing paper consumption was reduced by 23%

Our own PV systems produce 204 MWh/year

65% of the car fleet consists of electric or hybrid cars

More than 12 different types of E&S-related training sessions for staff

Read and learn more about the group’s latest Impact Report by clicking here.

504 graduates or participants in the PCBA2 and PCMA3

More than456,000 total training hours in 2019

Free swimming classes for regional schools with regard to the local communities

2017 14

2018 36 2017

2017

12

3

2018

2018

10

5

CO2

7BIOMASS2019

PHOTO- VOLTAIC 2019

52 11

In total

68,103of CO2 avoided in 2019

(2018 - 52,437t)

HYDRO 2019

RE projects in the green loan portfolio4

4 See page 90 in the annex of the Impact Report 2019 for more details.

The updated group standards for financing renewable energy projects provide a streamlinedapproach among all ProCredit banks. The coordinated approach and established procedures ensure

the proper set-up for supporting the

financing of renewable energy projects in our countries of operation.

Comprehensive training has enabled the creation of capacities, in order to incentivise these types of projects and to support the growth of the RE portfolio. Having said this, the banks are prepared to support future energy decarbonisation in the countries of operation where air pollution is one of the most relevant environmental challenges.

The following is an overview of RE projects financed in the green loan portfolio from 2017to 2019.

Group achievements in Renewable Energy (RE) finance

2 Total volume of green loans provided to business and private clients in all ProCredit countries

Renewable energy measures at ProCredit Bank Georgia

ProCredit Bank for green economy development in Georgia

The solar power plant is an important initiative launched by ProCredit Bank in the field of renewable energy. Solar panels have been installed on the 500m2 roof top of the bank head office, which will replace about 12% of the bank’s internal consumption with the energy generated by the power plant.Data on generated electricity, reduced emissions and other saved resources are recorded in real time and displayed on a screen located at the bank head office.

Because we need energy every day, and the demand for it is increasing day to day!Unlike fossil fuels, renewable energy is inexhaustible and its use does not harm the environment.The use of renewable solar energy is our future and corresponds to the bank’s sustainable development goals.

Why renewable energy?

In 2019, the bank allocated EUR 39 million for financing green initiatives, of which investments in energy-efficient buildings and machinery totaled EUR 28 million.

The green loan portfolio makes 16%

of the total loan portfolio and is increasing steadily

5 Total volume of green loans provided to business and private clients in all ProCredit countries