Management of environmental risk in lending

The goal of this pillar is to reduce the external impact caused by the banks’ lending activities. This includes assessment and monitoring of the environmental risk of a client’s business, and rejecting loan applications that are harmful to the environment.

ProCredit Bank BiH implemented an environmental management system based on continuous assessment of the loan portfolio according to environmental criteria, an in-depth analysis of all economic activities which potentially involve environmental risks, and the rejection of loan applications from enterprises engaged in activities which are deemed environmentally hazardous and appear on our institution’s exclusion list.

By incorporating environmental issues into the loan approval process, ProCredit Bank is also able to raise its clients’ overall level of environmental awareness. ProCredit Bank has compiled a list of activities which have a negative impact on the natural environment and our society. Loan applications from enterprises involved in activities that appear on our exclusion list will be rejected.