Održivo upravljanje - menadžment ProCredit banke

Governance at ProCredit Bank

Sound governance is the foundation of sustainable business. We place particular emphasis on decision-making processes, risk management, and ensuring ethical and responsible conduct.

Responsible Governance

The ‘G’ component – Governance – within the ESG framework refers to how the Bank is organised, how decisions are made, how risks are managed, and how ethical and responsible business practices are ensured.

At ProCredit Bank, we are committed to building trust, accountability, and long-term value for our employees, clients, and the wider community.

Good Governance as the basis of sustainable business

Strong corporate governance is a key component because it provides the foundation for delivering both Environmental (E) and Social (S) objectives.

Governance structure

Transparency: We maintain a clearly defined governance structure, with explicitly defined responsibilities and accountabilities.
Role of the Boards: The Executive Board and the Board of Directors are actively involved in making strategic decisions, including those related to ESG objectives. In addition, a dedicated Sustainability Committee ensures that the defined goals are achieved.

Risk management

ESG risks: Environmental, social, and governance risks are integrated into our overall risk management processes.
Impact assessment: We regularly assess the impact of our operations on society and the environment.
Control and compliance: We have developed internal control mechanisms and aligned our practices with laws, regulations, and international standards.

Ethics and integrity

Code of Conduct: We apply clear rules of conduct for all employees and managers, with a strong focus on integrity, respect, and accountability.
Anti-corruption: We have adopted policies against corruption, money laundering, and conflicts of interest.
Whistleblower protection: We have established mechanisms for anonymous reporting of irregularities and protection for whistleblowers.

Reporting and accountability

ESG reporting: We regularly publish reports on progress in ESG areas, both at Group level and Bank level.
Stakeholder engagement: We engage in dialogue with shareholders, clients, employees, and the community on ESG topics.
Target-setting and performance monitoring: We have defined measurable objectives and monitor progress through key performance indicators.

FAQ

What is the Sustainability Committee?

The Sustainability Committee is a body within the Bank responsible for overseeing, guiding, and enhancing activities related to sustainability and the ESG principles (Environmental, Social, and Governance aspects of business).

The Committee’s role is to:

Set sustainability objectives – define what the Bank aims to achieve in terms of environmental protection, social responsibility, and good governance.
Monitor progress – regularly review whether these objectives are being met and propose adjustments.
Ensure compliance with laws and standards – ensure that the Bank observes all relevant regulations and international ESG standards.
Coordinate across departments – link different teams (e.g. Marketing, HR, Finance, IT) so that all operate in alignment with ESG objectives.
Report to management and the public – prepare sustainability reports published for shareholders, clients, and regulators.

What does ESG risk management involve?

The Bank integrates ESG risks into its risk management systems, which includes:

Identifying and assessing risks through portfolio and client activity analysis,
Evaluating potential impacts of climate change and social factors,
Incorporating ESG criteria into credit policies, investment decisions, and the assessment of clients and suppliers,
Ensuring compliance with regulatory requirements,
Transparent reporting on ESG risks and mitigation measures.

Managing ESG risks not only protects the Bank from potential losses but also enables proactive positioning in relation to sustainable development, strengthens client and investor trust, and supports the Bank’s long-term resilience.