Konstantin Kirov, Head of Environmental Management Department at ProCredit Bank
For more than a decade now, ProCredit Bank has been implementing the ESG approach not only in its business model but also at the very core of its operations – the training and engagement of employees. The bank has had a dedicated Environmental Management Department since 2011. While it consists of five people, ProCredit Banks’ ESG approach involves all departments in the bank, as well as the members of the Management Board.
The ESG principles are ingrained in the very first contact with the new employees. Their training begins at ProCredit Group level. The onboarding programme is international, with all new employees undergoing training at the bank’s centre in Serbia. Over the span of nine weeks, they discuss finance topics, as well as critical thinking, ethics, environment and sustainable development. In groups of participants from 10 Eastern European countries, new employees get acquainted with different points of view and learn how to participate in group discussions. This approach also applies to the more experienced staff who can participate in ProCredit Bank’s academy in Germany. This programme facilitates comparison of the practical knowledge that employees have already accumulated with the best practices in other countries as well as learning more about the organisation of the bank at a strategic level. Some of the topics again relate to the development and discussion of knowledge beyond the usual bank standards - climate development, civilisation and analysis of why particular events happened in the context of their time. They also learn soft skills to help them further their personal development.
This holistic approach towards training and education at group level continues with annual meetings of experts from different fields and countries in ProCredit Group. These meetings take place at least twice a year and are focused on discussing the bank’s strategic development. The ESG approach has been an integral part of these meetings over the years - for example, since 2013, ProCredit Group has been organising a workshop on “green” topics, where ESG developments in the bank’s markets, regulations, new aspects for improvement in the environmental and social approach are being discussed.
Going “back” to the individual country level and specifically for Bulgaria, colleagues here have the opportunity for discussions in a local environment according to the specifics of the market. Since 2012, ProCredit Bank has been organising two trainings a year on an environmental topic for the entire team. For social topics, the bank holds annual discussions with all colleagues on the interpretation of topics, which are part of its Code of Conduct.
On the social side, ProCredit Bank provides a host of internship opportunities. “A third of our interns stay as our employees for an average of 10 years. I think they are the real testament to the modern and progressive environment we provide. We achieved this by allowing our employees to engage through trainings in a real dialogue about the development of the bank and their career path within it,” says Konstantin Kirov, Head of Environmental Management Department at ProCredit Bank.
ProCredit Bank is aware that sustainable development entails positive environmental and social impact and not just stable financial results. This means end-to-end commitment. Since the bank communicates with its SME clients on a daily basis, it is important to discuss with them the best international practices and the expectations for a new regulation. Thus, the bank also has the challenging task of being a conduit for such topics on which all of our employees must be well prepared. This approach is also applicable to ProCredit Bank’s suppliers. Through a series of questions, the bank strives to select “sustainable suppliers” that are more socially responsible and have less harmful impact on the environment.
ProCredit Bank Bulgaria is aware that the direct carbon footprint of 224 tonnes of CO2eq is negligible compared to the indirect emissions related to the funding it provides to various industries - 154 797 tonnes of CO2eq. This is why the bank is seeking to make an impact through a number of successful solutions in relation to the environment - special loans for what can be generally referred to as “green” investments, such as electric vehicles, photovoltaics, energy efficient machines, buildings and others. These are the result of the positive personal experience of ProCredit Bank with every-day green solutions, such as the photovoltaic systems in the office buildings, 70% electric vehicle fleet, the bank’s carbon-neutral building and others. To further its positive environmental impact, ProCredit Bank has compiled an Exclusion List of activities for which it does not provide financing, as well as environmental and social impact assessments of each company it finances.
You can read a more comprehensive list of examples and find details about the ESG approach in ProCredit Holdings’ Impact report, which has been published since 2015 and which has been following the global GRI Standards since 2017.