The subsidiaries in this business line all face the same challenge: “how can they incorporate ESG criteria into their loan approval processes, given the variety of their business activities?”
These companies have adopted approaches that are appropriate for their business: Crédit Agricole Leasing finances renewable energy projects, while the Group's consumer credit subsidiaries, Sofinco and Finaref, have developed processes to open up access to credit while combating over-indebtedness.
Specialised financial services
Crédit Agricole Leasing: Unifergie finances investments in renewable
energy assets
In 2008, Unifergie, Crédit Agricole Leasing's subsidiary specialising in "green" financing, continued to expand in the energy and environmental sectors, primarily in three areas: wind, solar and biomass.
Financing renewable energy is the subsidiary's major business, with over 300 megawatts (Mw) financed.
An illustration: Solar energy projects
Unifergie was involved in the solar energy sector and served as the lead manager in financing a solar farm project in Alsace. With 36,000 m² of solar panels and a capacity of 4.5 Mw, the facility operated by this farmer, who is a customer of Caisse Régionale Alsace Vosges, has become the largest integrated solar energy production facility in the world. The solar buildings also store biomass energy.
A consortium consisting of the Touraine Poitou, Charente-Maritime Deux-Sèvres, Charente-Périgord Regional Banks and of Unifergie as their representative was commissioned by the Poitou Charentes Region to provide €400 million in financing to photovoltaic plant projects in that region over 2009-2012.
Consumer finance: developing "socially responsible credit"
The main ESR issues that the consumer credit subsidiaries face are how to meet the expectations of personal customers for accessing credit and the quality of the customer relationship. Offering access to credit to the largest possible number of people requires guaranteeing that the products offered meet the needs of each person and that the repayment schedules are in keeping with their financial position.
Several years ago, Sofinco created ANAP1, an organisation dedicated to helping overindebted consumers. Employees who are trained in this area work with the borrowers to find solutions that are appropriate for their new situation.
Since the end of 2007, Finaref has been working in partnership with Archime’d2 in an experiment to prevent social exclusion by helping people who have no access to credit
Finaref, like Sofinco, belongs to an ASF 33 working group consisting of associations that represent consumers and small businesses. In 2008, this group's work focused primarily on preventing over-indebtedness and published a guide on the subject.
- Agence Nationale d’Aide aux Particuliers
- Association de Recherche pour un Crédit Harmonieux et d’Innovation pour la Maîtrise de l’Endettement
- Association Française des Sociétés Financières
