Post on 01-Apr-2015
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Microfinance and the environmentThe experience of the MFI sustainability guidance
30th November 2010Alberic PaterTriodos Facet
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Consultancy firm promoting sustainable banking and SME
development in developing countries & emerging economies
Part of the Triodos Group, innovator of sustainable banking
Headquarters: Zeist, the Netherlands
Representative offices in Africa, Latin America, Easten
Europe, Asioa
30 professional staff consultants
Triodos Facet
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Triple bottom line reporting
EE / REfinancing
Social and environmental
risk management
MFI / SME banks
Triodos Facet
Sustainability Performance Management
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What can we as investor do to improve the environmental, health & safety impact of microfinance clients?
The objectives of FMO
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Help MFIs to develop & implement a social & environmental risk management system
2006 – 2008: Face to face trainings to more than 50 MFIs
2009: Develop e-learning toolkit to support MFIs during implementation phase.
The objectives of FMO
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Awareness raising / Training Integrate E&S management in existing systems Guiding management & offer practical tool for loan
officers Help clients improve their impact, instead of excluding
them Focus on clients in risky sectors
The principles of the toolkit
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The structure of the toolkit
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Awareness raising
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Simplifying E&S risks
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Exercise: recognising E&S risks
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Exercise: recognising E&S risks
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Why E&S management: case study
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Why E&S management: reality check
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Integrating E&S in the loan cycle
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Assessing E&S risks
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Assessing E&S risks
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Assessing risks at client level
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Planning the pilot project
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Develop E&S policy and roll-out
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Checklist and planning tool
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Several MFIs have used it, positive feedback on practical approach icons, photo tools, factsheets, step-by-step approach Basix India: pilot with “peer group approach”
Particularly for MFIs with small enterprise portfolio rather than “traditional” microfinance.
Useful for awareness raising and addressing “low hanging fruit” at client level
Reflections on E&S toolkit
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Interesting prototype. Maintain the practical and step-wise approach
Additional modules to be developed: Offer client-interaction courses for loan officers Sustainable product development module (energy/water
efficiency) Client protection module
The future of E&S toolkit
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MFIs are interested, but low urgency to address E&S issues Loads of other priorities Business case is longer-term Higher management champion is important
Donors / investors have not really addressed E&S issues beyond the level of exclusion lists
Addressing E&S by MFIs
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Alberic Pater
www.triodosfacet.nl
a.pater@triodosfacet.nl
Thank you for your attention
Any questions?