Scotiabank Peru has developed an Environmental Credit Line (ECL) that aims to promote sustainable production by helping small and medium enterprises replace old equipment with new, clean technology – thereby delivering environmental, social and economic services, bakeries and others can apply for the ECL.
This innovative financial product is possible thanks to the synergy between the private, public and NGO sectors, where Scotiabank Peru is the financial operator and the Swiss Government Economic Secretariat provides a trust fund of USD$5 million which guarantees the approved loans. The Environmental and Social Responsibility Center (CER) is the environmental expert responsible for conducting technical evaluations to measure environmental improvements. To date, 23 projects have used the credit line for a total of USD$7.8 million. Of these projects, 70% improved their energy efficiency, 25% reduced their water use and 5% demonstrated other environmental benefits.
Negoperu Molinera S.A.C. is one company that has benefited from the ECL. The company plants, harvests and mills white rice in Pacasmayo in the northern part of Peru. The ECL enabled Negoperu Molinera to upgrade its rice processing equipment, which improved productivity by 124% and reduced energy consumption and waste. The company saves approximately USD$8,000 on its annual electricity bill. Among the benefits to employees, the new technology has improved air quality in the factory, reducing the amount of rice powder in their work area, and has reduced noise levels.