XacBank of Mongolia Wins the Global Climate Partnership Award 2024
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Zurich/Ulaanbaatar, 04 November 2024 – The Global Climate Partnership Fund (GCPF), managed by the Swiss impact asset manager responsibility Investments AG, has awarded this year’s Global Climate Partnership Award to XacBank of Mongolia. This award honors institutions that contribute to sustainable development through innovative financial solutions with measurable environmental and social impact.
Mongolia, a country with approximately 3.4 million inhabitants, has seen a significant population increase in its capital, Ulaanbaatar, as many people migrate from rural areas to the city and its peri-urban zones. In this region, extreme winter temperatures, often as low as -20 °C, drive demand for adequate housing and efficient heating solutions. Additionally, about 90% of Mongolia’s electricity is generated from coal, contributing substantially to CO₂ emissions1. XacBank’s award-winning project addresses precisely this challenge.
Innovative project for energy-efficient housing
Through its “Expanding the Market for Energy-Efficient Housing in Mongolia” project, XacBank creates affordable and energy-efficient housing in Ulaanbaatar’s growth areas. With specially tailored financing solutions, the bank makes it possible for households to purchase energy-efficient homes that reduce both energy consumption and CO₂ emissions — a crucial step considering Mongolia’s severe winters and air pollution challenges.
About Xac Bank
XacBank is a leading bank in Mongolia, actively committed to sustainable financial solutions. Through specialized financial products, the bank promotes social and environmental development, with a particular focus on energy-efficient housing and sustainable agriculture. XacBank’s initiatives aim to provide broad access to eco-friendly housing and economic advancement for a wide segment of Mongolia’s population.
A model for climate financing
Judith Brandsma, chair of the award jury and an expert in sustainable investment, praised XacBank’s commitment to combining environmental and social goals with economic viability: “XacBank sets a forward-looking example of the Triple Bottom Line approach, balancing social benefit, environmental impact, and economic stability,” said Brandsma.
“This award confirms our commitment to sustainable development in Mongolia,” stated Mr. Tsevegjav Gumenjav, CEO of XacBank. “We see this as a commitment to continue investing in solutions that generate tangible positive impacts for our customers and society.”
Sustainability champions among the finalists
Khan Bank, Mongolia: The “Sustainable Cashmere Supply” initiative promotes sustainable land use and biodiversity, strengthening the local economy.
Banco ProCredit, Ecuador: Supports SMEs in transitioning to renewable energy, helping to reduce their carbon footprint.
Electronica Finance Limited, India: Provides financing for solar systems, enabling over 1,000 small businesses to cut costs and reduce emissions.
Finance sector as a catalyst for climate action
This year’s submissions highlight the finance sector’s expanding role in advancing renewable energy, sustainable agriculture, and social responsibility. The award showcases how financial institutions act as key catalysts for economically viable climate protection measures across diverse markets, demonstrating that financial support can drive impactful and scalable environmental progress.
About responsAbility Investments AG
responsAbility Investments AG is a leading impact asset manager specializing in private market investments across three investment themes to directly contribute to the United Nations Sustainable Development Goals (SDGs): Financial Inclusion, to finance the growth of Micro & SMEs; Climate Finance, to contribute to a net zero pathway; and Sustainable Food, to sustainably feed an ever-growing population. All responsAbility investment solutions target specific measurable impact alongside market returns.
Since its inception in 2003, responsAbility has deployed over USD 14 billion in impact investments. With over 270 employees collaborating across eight offices, as of 1 October 2023 the company manages USD 4.7 billion in assets across approximately 270 portfolio companies in 72 countries. Since 2022 responsAbility is part of M&G plc, the international savings, and investments business, and contributes to enhancing M&G’s capabilities in impact investing.
About the Global Climate Partnership Fund (GCPF)
The Global Climate Partnership Fund is a Luxembourg-based fund managed by the Swiss asset manager responsAbility Investments AG. The Fund is an innovative public-private partnership dedicated to mitigating climate change through a reduction of greenhouse gas emissions in emerging and developing markets. It focuses on financing energy efficiency and renewable energy projects, through local financial institutions or directly. Only projects that generate significant energy savings and pledge to reduce projected greenhouse gas emissions by at least 20% are eligible for funding.
GCPF was established by the German Federal Ministry for the Environment, Nature Conservation and Nuclear Safety (BMU), KfW Entwicklungsbank and the International Finance Corporation (IFC) in 2009 as a public-private partnership. Junior catalytic capital is provided by BMU, the department for Business, Energy and Industrial Strategy (BEIS) of the UK, Denmark’s development cooperation (Danida). Other private and public investors include ASN Bank, Ärzteversorgung Westfalen-Lippe, FMO, OeEB, Sparkasse Bremen, the European Investment Bank (EIB) and Heilsarmee.
