ProCredit Group reaches a new stage in its sustainability strategy

ProCredit Group, which operates mainly in Southeast and Eastern Europe, inaugurated on July 5, 2023, its photovoltaic park – ProEnergy – in Lipjan, near Pristina, Kosovo. The 3 MWp PV park was initiated and implemented as a joint project between ProCredit Bank of Kosovo and ProCredit Holding and cost around EUR 2.5 million.

The ProCredit Group aims to contribute to the change of the energy landscape in Kosovo by creating local know-how, also stimulating investments in the private sector. The project represents a significant milestone for the development-oriented ProCredit Group in achieving climate neutrality, an objective it has pursued since 2018.

ProEnergy Photovoltaic Park is the first solar park in Kosovo owned by a banking group. The expected annual output of the 3 MWp solar park is 3,711 MWh, which will be able to supply up to 450 households with an average monthly electricity consumption of up to 700 kWh. In this way, ProCredit Group contributes to the energy transition in Kosovo where 90% of the electricity generated in 2022 came from coal-fired power plants, with greenhouse gas emissions and risks to health and the environment.

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The ProEnergy project in Kosovo reflects the sustainable development orientation of the ProCredit Group, which aims to contribute to protecting the environment in the countries in which it operates. Beyond the local impact of the project in Kosovo, ProEnergy is a crucial step for the ProCredit Group itself toward achieving its own climate goals.

Since 2018, when it committed to becoming carbon neutral, the ProCredit Group has reduced this indicator by almost half. The photovoltaic park inaugurated in Kosovo is undergoing Gold Standard certification, and the clean energy it produces will help to significantly offset Scope 1 and Scope 2 emissions at the Group level in the future.

Hubert Spectenhauser, Chairman of the Management Board of ProCredit General Partner AG, states: “As a banking group oriented towards sustainable development, we at ProCredit are uniquely positioned to contribute to the energy transition. Our investment in the ProEnergy photovoltaic park in Kosovo highlights the seriousness of our approach. At the ProCredit Group level, we aim to promote the need for the development of renewable energy sources, as well as to advise and support clients in their energy transition plans, thus contributing to the achievement of the objectives of the Paris Agreement on climate change.”

ProCredit, investments in energy efficiency, renewable energy and other green investments

At the end of March 2023, green loans represented 20.2% of the ProCredit Group’s loan portfolio. This percentage represents credits totaling EUR 1.2 billion for energy efficiency, renewable energy, or other green investments.

A third of these granted credits are already used for renewable energy projects. Until March 31, 2023, approximately EUR 370 million have been made available to finance a number of 1,370 photovoltaic investments. Small and medium-sized enterprises or individuals made about 1,000 of these investments in photovoltaic panels.

Green loans remain the focus of the ProCredit Group. In the medium term, the share of these loans in the total portfolio is to be expanded to 25%.

ProCredit Bank has set out to be an important actor in financing the local energy transition in Romania. In December 2022, ProCredit Bank Romania’s green loan portfolio exceeded EUR 80 million, representing a share of over 22% of the bank’s total loan portfolio. Beyond these figures, as a long-term strategic partner of its clients, ProCredit Bank Romania advises them not only on financial aspects but also on green investments.

More information on the sustainability strategy and the ProCredit Group Impact Report can be found at the following link: https://www.procredit-holding.com/about-us/business-ethics-and-environmental-standards/.