Praxis funding helps cut costs, emissions in Mongolia
Inclusive banking through XacBank provides sustainable options
XacBank, one of Mongolia’s largest banks, has 86 branches and reaches over 700,000 customers. These customers range in size from micro customers to small businesses to large corporations. They aim for sustainability and promote a triple bottom line with their motto, “Plant, People, and Profit.” In 2016, XacBank was named "Best Bank of Mongolia" by Global Finance magazine.
Through its Eco Product Program, XacBank has eased financial and health burdens faced by many households in the capital city of Ulaanbaatar – the coldest capital city in the world. Here, the average Mongolian family can spend up to 45% of their income on coal. Emissions from their inefficient stoves has made the city one of the most polluted urban areas. Those who live in traditional Mongolian tents, called gers, also experience increased exposure to the elements.
Since their Eco Product Program started in 2010, XacBank has addressed the difficulties these families face by promoting cleaner, more efficient stoves and improved ger insulation. They have provided more than 136,000 stoves and 20,000 improved gas insulation blankets. These numbers reached almost 80% of ger district families.
The program’s products are distributed through microloans the bank subsidizes via the sale of carbon offsets destined for voluntary carbon markets. The initiative has reduced an estimated 380,000 tons of carbon dioxide since its inception and has helped families to reduce their heating costs.
Praxis Mutual Funds® supports organizations such as the Eco Product Program through investments in Calvert Impact Capital, an impact-investing institution that helps people around the world through community development financing. It’s part of the Praxis commitment to place approximately 1% of each of its funds to benefit neighborhoods and individuals through community development investments.