Founded in 2011 in Huzhou City, Zuoli Kechuang Micro-finance Company (Zuoli) stands out as a financial player specialising in financing small and medium-sized enterprises (SMEs) and individuals overlooked by traditional banks. In recent years, Zuoli has strategically transitioned from general SME lending to championing green finance.

Green finance at the core

The establishment of its dedicated Green Finance Development Department has seen Zuoli take an active role in shaping local green lending standards. Zuoli’s green loan book is distributed across four key sectors:

  • Energy efficiency: energy-saving equipment and materials, promoting lower carbon footprints across industries
  • Biodiversity: ecological agriculture, forestry, circular economy and pollution control projects
  • Climate: clean transportation, advanced battery technologies and sustainable textiles
  • Renewable energy: primarily photovoltaic projects

These allocations align closely with the UN Sustainable Development Goals (notably SDG 7.3 for energy efficiency and SDG 15.4 for biodiversity).

Hands-on approach and responsible lending

Zuoli adopts a hand-on operational approach, with local teams carrying out thorough assessments,  including site visits and cashflow analyses, within a streamlined three-day loan application process. The institution’s commitment to transparency and client protection is underpinned by comprehensive staff training, quarterly loan reviews and a policy requiring clients to settle existing loans before reapplying.

Zuoli’s industry standing is demonstrated by its recognition as a national green benchmark for green finance among microfinance institutions. Although not yet certified under the Client Protection Pathway, Zuoli has already implemented exclusion lists, environmental and social management systems, and robust credit policies to ensure responsible lending and collections. 

Triodos Microfinance Fund and Triodos Fair Share Fund have provided a EUR 6 million senior debt facility to Zuoli to support the expansion of its green loan portfolio. This investment further cements Zuoli’s position as a key player in sustainable finance in Eastern China’s rapidly evolving SME sector.