In May 2022, OeEB provided Technical Assistance funds to develop and implement a tool to assess the climate risks of the ProCredit group's loan portfolio. The ProCredit group consists of development-oriented commercial banks, with a focus on SME that are active in Southeastern and Eastern Europe and South America, as well as a bank in Germany, and has been a partner of OeEB for several years.
|Project name||ProCredit Holding Climate Risks Impact Assessment|
|Sector||Financial Sector / Microfinance / SME|
|Service||Business Advisory Services|
|Project partner(s)||ProCredit Holding AG &CO. KGAA|
The group is an existing customer of OeEB and has pushed ahead with a structured development of activities in the field of "Green Finance" (including E&S activities) in recent years. Now the group wants to take the next step in helping mitigate climate change by aligning its portfolio with the goals of the Paris Agreement.
In addition to setting goals, the group aims to help its clients build the resilience needed to withstand physical and transitional climate risks. Physical risks are particularly relevant for customers who are directly affected by climate change (e.g., agricultural customers). Transition risks affects to some extent all customers who, for example, rely directly or indirectly on fossil fuels and need to adapt their technology to decarbonise their operations and related business models.
OeEB's funds support the development of a tool to analyse both transition and physical risks of ProCredit's portfolio and to integrate appropriate risk management approaches into the groups business and risk strategy and relevant policies, standards, and other documents. Moreover, targets to align the portfolio with Paris Agreement goals can be set and financing products that support clients in reducing their emissions and/or becoming more resilient towards physical risks can be developed.