How can climate finance be integrated into SME banking at scale?
In this case study, BlueOrchard explores how ProCredit Holding integrates climate finance into its SME banking model. The group operates across emerging and developing markets and has a long-standing focus on micro, small and medium-sized enterprises (MSMEs). It combines this focus with a structured approach to green lending.
Green finance is embedded in ProCredit’s SME banking model
ProCredit’s approach to green finance grew from its close relationships with SME clients. In the early 2000s, the group began financing energy efficiency improvements and small-scale renewable energy projects. It later developed a formal green finance framework with clear eligibility criteria and monitoring standards.
Today, ProCredit has a green loan portfolio of approximately €1.42 billion. Its financing supports renewable energy, energy efficiency and green buildings. The group integrates green finance directly into its SME lending, credit processes and portfolio management.
Climate finance can create opportunities for businesses and investors
ProCredit’s experience shows how climate finance in SME banking can support both environmental and commercial objectives.
For businesses, investments in energy-efficient equipment and renewable energy can help lower emissions and reduce operating costs. For investors, the model offers exposure to a growing green asset class within a structured banking approach.
ProCredit also uses its Green Bond Framework to mobilise funding for eligible green projects. In addition, the group works with international financial institutions and development finance partners to support its climate strategy.
Measuring impact is central to the approach
Scaling climate finance requires credible impact measurement and effective management of climate-related risks.
ProCredit tracks the environmental impact of its green lending, including avoided CO₂ emissions. The group has also calculated emissions associated with its portfolio since 2021. It assesses physical and transition climate risks and has developed a comprehensive climate transition plan.
ProCredit also works with SME clients to address transition challenges. A group-wide CO₂ calculator helps the bank and its clients estimate emissions using standardised methodologies.
Scaling climate finance through SME banking
ProCredit’s experience shows how banks can bring together SME finance, climate action and impact measurement. It also highlights the potential to scale green finance while supporting businesses and the transition to a lower-carbon economy.
Watch the video to hear BlueOrchard’s impact specialists explore ProCredit’s approach to climate finance in SME banking.