As a strategic approach to tackling the challenges of climate change, Sustainable Finance is designed to facilitate the transition to a low-carbon and environmentally friendly world. Sustainable Finance refers to any financial initiative, process, product, or service aimed either at protecting the natural environment or at managing the impact of the environment on financing and investment. German Sparkassenstiftung supports local banks in developing financial products for investments in sustainable technologies.

Project example: Laos, Nepal, Vietnam – Socio-ecological transformation of the financial sector

Access to financial services in Nepal, Laos and Vietnam - especially in rural regions - remains a major challenge for poverty reduction, the reduction of social inequality and ecological transformation. Agriculture plays a key role in all project countries, but it still contributes too little to food security and is severely affected by climate change. German Sparkassenstiftung's focus within the project is on strengthening the population's financial literacy in order to promote sustainable economic development - especially for (women-run) small businesses, agricultural enterprises and young people.

Lending, savings products, insurances, and payment transactions are essential components of rural development and financing. We focus on the needs of agricultural micro-enterprises and the creation of needs-based and tailored agricultural financing products considering cultivation cycles and seasonal fluctuations. However, rural finance also includes completing value chains and hedging instruments, such as targeted insurance products or payment and supplier guarantees.

Project example: Mexico - strengthening the agricultural sector and promoting rural development

German Sparkassenstiftung is committed to boosting agricultural productivity and ensuring a sustainable food supply for the growing population in Mexico. We offer training to improve financial and entrepreneurial education in rural areas. By broadening the entrepreneurial knowledge of agricultural producers, we secure agricultural incomes by boosting productivity and help to ensure a sustainable supply of food to the people. In addition, a hackathon was held in October 2019, where innovative digital solutions for small farmers and agricultural enterprises were developed.

Development is not possible without energy. To reduce poverty, a sustainable energy supply must be established and expanded in developing countries.

Project example: Eastern Africa (Rwanda, Burundi, Tanzania, Uganda, Kenya)

With mobile and stationary payment systems as well as savings and loans, our project partners in East Africa enable local energy supply systems at household or business level thus contributing to the electrification of rural areas. This is not only crucial for development but also for the promotion of environmentally friendly, local systems. German Sparkassenstiftung's projects in East Africa have equipped microfinance sector institutions at meso level with solar energy systems to secure their own energy supply and, above all, to motivate members and clients to use climate-friendly energy systems by setting an example.