Internal policies to reduce the plastic footprint
With the aim of contributing to the eradication of the production of single-use plastic items, as well as assisting its clients in an ecological transition suitable for their business model, Banco ProCredit, the German bank in Ecuador, implemented its Plastic Strategy, a series of responsible practices in environmental and social matters. This initiative, a pioneer in the Ecuadorian banking sector, contemplates 3 areas of action, that include strategies for both your internal and external audiences.
The first area refers to policies to reduce the plastic footprint internally. Along these lines, the financial institution has implemented several strategies, such as the presentation of the ProGreen debit card, whose ecological structure is biodegradable and 100% recyclable, made from 84% corn and delivered through eco-friendly delivery. . The bank also uses recycled tetra pak furniture within its facilities.
Evaluation and management of risks related to plastics in the client portfolio
The second focus area deals with policies aimed at evaluating and managing risks associated with the use of plastics in Banco ProCredit's client portfolio. For this, a detailed matrix has been developed that identifies and quantifies the environmental, social, legal and market risks related to the production and consumption of plastics in the various economic sectors they serve. This matrix allows the bank to make informed and strategic decisions, ensuring that its clients adopt sustainable practices and comply with current regulations on plastics management.
Commercial and credit approach to promote the substitution of plastics
Finally, the third area of action focuses on the implementation of commercial and credit policies that promote the reduction and substitution of plastics in the operations of its clients. Banco ProCredit has held strategic meetings with its clients to discuss and promote ecological and sustainable solutions in their production processes. These collaborations have resulted in the adoption of more environmentally friendly alternatives, backed by appropriate and responsible financing options, demonstrating the bank's commitment to sustainability and positive impact on the natural environment.
As explained by Katarina Zdraljevic, Head of Banco ProCredit's Environmental Management Unit, “The constructive nature of the relationships we have established with our clients has allowed us to talk openly with those who were or still are engaged in any type of plastic production, and communicate our strategy to them in a transparent manner. We were always clear that imposing any restriction on the sector would have a significant impact on the bank's portfolio; however, difficult times demand difficult decisions, so in 2021 we added the production of single-use plastic items to our Exclusion List, because from our perspective, it was extremely important to do so. At the same time, we designed an exit strategy for some of our clients who had been with ProCredit since its inception, and whose business models relied heavily on plastic that quickly ends up in landfills, or worse, rivers or oceans. ”
Some of the most outstanding milestones achieved with Banco ProCredit clients from the implementation of this strategy have been the production of 100% garbage bags, made from recycled plastic; the collection of agricultural residues for processing and incorporation into other products destined for the agricultural sector as well; the replacement of previously used raw material, by biodegradable or plastic-based raw material based on sugar cane or avocado; and, in general terms, the reduction of the use of plastic in companies, replacing it with other products (for example, the change of plastic plates in fast food restaurants, for ceramic tableware).
In this way, Banco ProCredit ratifies its commitment to remain at the forefront of the financial sector, through responsible credits, and encouraging its clients to adapt their processes to be in line with the sustainable plastic production criteria promoted by the institution.
About ProCredit Bank
Banco ProCredit is a member bank of the German Financial Group ProCredit, which has been operating in Ecuador since 2001, aimed at contributing to the development of the country through the financial system. The Bank, which has an AAA- risk rating from BankWatch Ratings and PCR, offers a specialized service for companies, as well as a direct banking model that encourages savings for private clients. The institution governs its operations by essential principles such as transparency and simplicity in its services, the advisory approach to its clients and the sustainability of its commercial activities.
For more information go to www.bancoprocredit.com.ec
