Assessing Green Microfinance: MIX and e-MFP publish survey findings drawn from responses of 87 MFIs

2 December, 2015

Because of the increasing responsibility of (also) the inclusive finance sector to meet the Sustainable Development Goals (SDGs) of the Post-2015 Development Agenda that are related to the environment, it is important to assess how environment-conscious decisions can become a fixed focus or even determinant in investment decisions. NpM responded to this development and need by organising its annual conference on the topic of extending the impact of investing: green inclusive finance. But more initiatives are going on, increasingly more.

The report just published by MIX and the European Microfinance Platform (e-MFP) Microfinance & Environment Action Group is a good example; it is the first attempt in the microfinance sector to address the area of green performance monitoring in a comprehensive manner. While the sector currently abounds with a diverse set of qualitative tools for green performance monitoring, the same cannot be said of quantitative indicators. As a result, microfinance institutions (MFIs) lack a set of established metrics to assess their green performance, track progress over time, and gain a broad view of current and future trends.

Recognizing this gap, MIX and the e-MFP Microfinance & Environment Action Group designed a survey to explore a set of quantitative green microfinance indicators with the aim of assessing their ease of use and relevance for decision-making. This report presents the survey findings drawn from the responses of 87 MFIs. Based on the key findings, this report concludes by offering a strategic "way forward" to facilitate the gradual integration of green quantitative indicators into reporting standards for the microfinance sector.

To access the full report, click here.

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