Xac Bank of Mongolia Wins the Global Climate Partnership Award 2024

Zurich/Ulaanbaatar, 4 November 2024 – A flagship climate fund managed by responsAbility has awarded this year’s Global Climate Partnership Award to Xac Bank 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. Xac Bank’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, Xac Bank 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 

Xac Bank 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. Xac Bank’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 Xac Bank’s commitment to combining environmental and social goals with economic viability: “Xac Bank 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 Ganbold Davaadorj, CEO of Xac Bank. “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 

Alongside Xac Bank, the following finalists were also recognized for their climate finance projects: 

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. 

¹IRENA Statistical Profile: Mongolia

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