In 2005, Maxim Titov, leading advisоr in Green Finance solutions at EthnoExpert has helped a Russian commercial bank to develop and implement Green Finance products fitting its current operation, and set up a Green Finance unit, in order to:
Maxim Titov has collaborated with the bank to conduct analysis, segmentation and prioritization of portfolio (by sector, type, client size) and to gauge suitability for Green Finance to drive product development, communications and business development efforts. Then, bank’s portfolio and pipeline have been analysed to determine eligible opportunities through a sector analysis to provide a deeper understanding of existing lending that qualifies under the Green Finance segment and to identify new opportunities that can form the basis of pipeline to support scaling up of Green lending.
Based on the results of the diagnostic, the potential Green Finance project has been defined focusing on industrial SMEs that are using old, energy inefficient production equipment and technologies. In 2005, the bank launched its Sustainable Banking Framework, integrating energy efficiency finance in its business model. IFC assisted the bank in the development of Energy efficiency finance internal capacity to identify, assess and process energy efficiency deals. The bank has demonstrated portfolio growth from $ 4 million up to $ 200 million in 6 years. Proven Green finance methodology, trained staff and solid track records helped the bank to attract several multinational investors to fund its lending operations. The bank has reported a two-digit profitability of its energy efficiency finance operations. The bank’s leadership has been recognized by international community, including the Financial Times Sustainability Awards in 2007 and 2013.