The report outlines Home Credit’s strong progress in delivering digitally-enabled financial inclusion benefits, building on the company’s track record of responsible operations, with highlights of its ESG performance to Philippines
Home Credit published its Sustainability report on June 15 detailing Home Credit’s progress in adhering to Environmental, Social and Governance (ESG) principles – a framework used globally to measure non-financial factors rooted in sustainability and the ethical impact of a company or business.
The report aligns with the United Nations Sustainable Development Goals and covers all of the company’s markets around the world.
“This Sustainability Report marks an important milestone in our journey as a responsible and inclusive company, which has firmly embedded ESG principles in its values and DNA,” said Jean-Pascal Duvieusart, Chairman and CEO of Home Credit Group.
Home Credit has been working to support customers and communities in 2021 as they navigate a still challenging global environment.
The report highlights key themes and trends that impact the business, based on a materiality assessment.
Key highlights from the 2021 report at a glance:
23% of Home Credit customers were first-time borrowers
109 million people benefited from Home Credit‘s financial literacy initiatives in 2021
43% of Home Credit customers are women
44% of our consumer loans are at 0% interest, thanks to partnerships with merchants and manufacturers
2.2 million customers have had the option of benefiting from payment holidays and deferred payments to help them better cope with the pandemic in 2021
- Giving back to communities
$1.3 million dedicated to direct community assistance in one of more than 50 projects in the markets
12,000 tonnes of CO22 equivalent in scope 1 & 2
4.5,000 end-of-life office devices refurbished and resold or donated
The materiality assessment presents the most significant themes for Home Credit. It has been compiled with reference to key industry benchmarks such as Standards and Practices for Responsible Inclusive Finance by the Social Performance Task Force (SPTF), Principles for Responsible Banking by the Program Finance Initiative Environment (UNEPFI) and Materiality Finder by the Sustainable Accounting Standards Board (SASB).
In addition, the Home Credit Sustainability Report has been prepared with reference to the standards of the Global Reporting Initiative (GRI).
Spotlight on the Philippines
In the Philippines, Home Credit has been pioneering financial inclusion since 2013, providing access to useful, affordable and responsible financial products and services to over 8 million Filipinos.
“Our mission at Home Credit is to empower every Filipino to be financially capable. Our strong network of over 10,000 outlets and expanding online presence introduce us when and where our customers need us. our strong brand partnerships and to our community across the country, we have become a unique ally to every Filipino,” said David Minol, Managing Director of Home Credit Philippines. “We have provided more than 178 billion pesos in loans to our customers over the past 8 years, these loans have become a lifeline for most Filipinos, especially for those without access to banking or credit.”
Home Credit Philippines has been at the forefront of financial inclusion and innovation. Its Home Credit Marketplace app has become a dynamic hub where customers can browse products, compare prices and buy from a local retailer. As part of our efforts to provide more options to our customers, we have also expanded our partnerships from major retailers to specialty and medium-to-small stores, the majority of which are based in smaller, underserved cities. By the end of 2021, our marketplace now features products from over 70 merchants across the Philippines, expanding product availability beyond consumer electronics and gadgets to furniture, appliances and even sports and lifestyle equipment.
At the height of the global pandemic, HCPH also partnered with BPI/MS Insurance Corporation, one of the Philippines’ leading insurers, to meet the growing demand for insurance services in the country and provide value-added services. added to Home Credit customers, to help them become more financially resilient despite uncertainties.
Drawing on the lessons of the pandemic, Home Credit has also created its enhanced Safe Lender toolkit, which aims to help customers navigate unforeseen financial difficulties. The toolkit offers a range of assistance options from short term to deferred payments and excluding long term recovery with debt settlement support, dynamic repayments and settlements.
“Financial inclusion has always been at the heart of our business approach. Affordability assessment is central to this approach. We understand the importance of not over-indebting clients and working with them to ensure the right product for their particular situation,” said Zdenek Jankovsky, Director and Treasurer of Home Credit Philippine. “Adopting this approach enables our clients to build a more financially resilient future, despite growing global uncertainties.” he added.
ESG principles have long guided the development of Home Credit’s portfolio, whether it’s a 0% interest rate product that helps someone buy their first smartphone, a revolving loan that provides more resilient cash flow or a payment holiday that helps a customer whose financial situation has suddenly changed.
Linked to this strong ESG performance, ESG-related loans were granted to Home Credit Philippines to further its mission.
In December 2021, HCPH closed its first ESG-linked credit facility with Deutsche Bank, considered a groundbreaking transaction focused on expanding access to credit to underserved communities in the Philippines, including women and new borrowers, and increasing the supply of financial education programs in the country
Since June 20, Home Credit Philippines, in partnership with Praxis, and the Manila Broadcasting Corporation have launched a financial education radio segment named “Payo para sa Life: Pera Wais Tips” broadcast daily on DZRH radio stations in nationwide, to expand HCPH’s flagship “Wais sa Home” financial literacy program.
In May 2022, HCPH and Citi launched a Php 420 social finance facility with one-of-a-kind support for mobile device purchases for Filipinos. Half of the loan is earmarked for women to help purchase basic digital devices to enable them to connect to the internet, access essential services such as digital banking, financial literacy and manage their own online business or benefit from an online education.
“With more ESG-related lending, we are even better positioned to continue to provide fair and transparent access to financial services for our communities,” said Jean Lafontaine, Head of Funding and Investor Relations at Home Credit. Group.
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