Triple Bottom Line Micro Finance Banking

Environment E-vent on SPM Network

2011-06-14T08:21:00.000-07:00

Today had an interesting discussion about environment and microfinance. Check out the content here: http://spmnetwork.net/group/tbl

New Joint IFC - GRI Publication

2010-08-10T08:10:00.000-07:00

IFC sees sustainability reporting as a timely next step to improve transparency and strengthen trust in the private
sector. It is also a management tool that can help companies to identify operational efﬁciency improvements,
innovate in their products and services, build stronger relationships with stakeholders, enhance reputational
value and, increasingly, attract investors.
IFC would like to see many more of theirclients undertaking GRI-based reporting alongside and as part of
their traditional annual reporting. Companies achieving excellence across all aspects of management are
companies most likely to grow and succeed over the long term.

Click here for the full report (pdf).

New Triodos Facet Publications

2009-10-22T02:41:00.000-07:00

See short description below. Both Publications can be found on Triodos Facet website here.

Risk Management and Sustainability Management: A Handbook for Microfinance Practitioners 2009
Authors: Tom Baur, John Guzowski, Geert Jan Schuite, Triodos Facet, September 2009.

This Handbook on Sustainability and Risk Management is intended to help microfinance institutions by suggesting a practical approach for improving their performance.

Few areas of banking are more important these days than the ability to mange risks. As the sector professionalises, the enviironmental, health and safety impact becomes more relevant to fiancial institutions. Eleven practical tools form the core of this handbook.

Trends in Microfinance
Authors: Stefan Platteau, Hedwig Siewertsen, Triodos Facet , May 2009.
Triodos Facet has looked into the future and found trends in Microfinance for 2010 - 2015. Read about the disappearance of the term microfinance, the entrance of new service providers and the future of self help groups, technology and value chain development in microfinance.

Microfinance Insights May/June 2009 issue

2009-06-17T00:42:00.000-07:00

An interesting article by Micol Guarneri in Microfinance Insights:

Elusive Impact or Concrete Change: How Social Performance Assessment is Helping to Change the Face of Reporting in Microfinance
When chasing multiple bottom line returns in microfinance, attaining concrete evidence on social impact can often be cost prohibitive and time-consuming, not to mention difficult to segregate causality. Yet achieving more concrete evidence of MFI social performance is not as elusive as it once seemed. The evolution and importance of social performance management and measurement—for donors, investors and MFIs alike—indicates the growing consensus around treating social performance as a process rather than a static outcome. Micol Guarneri, the Director of the Social Rating Department at MicroFinanza Rating, discusses how social rating, complementary to the traditional financial performance assessment, is emerging as a tool through which an MFI’s social returns may be monitored and even benchmarked against best practice and industry standards.

See here for a link to this and other interesting articles on Microfinance and Impact. By the way: This interesting periodic gives away free 1-yr subscriptions. Check them out!

Social Performance Taskforce New Website

2009-06-11T03:34:00.000-07:00

http://www.sptf.info/ is the new platform of the Social Performance task Force.

The Social Performance Task Force consists of over 350 leaders from all over the world from every microfinance stakeholder group: practitioners, donors and investors (multilateral, bilateral, and private), national and regional networks, technical assistance providers, rating agencies, academics and researchers, and others. Created in March 2005, the Task Force has been charged with clearly defining social performance and addressing questions about measuring and managing social performance.

MF and Climate Change: Can MFI's promote sustainable change?

2009-01-03T12:11:00.000-08:00

Download the discussion report (see post below) here.

On-line discussion on microfinance and climate change

2008-11-19T01:26:00.000-08:00

Hi everybody,
Via this blogpost I would like to draw your attention to an interesting on-line discussion (hosted by MicroLink) about the question "can microfinance promote environmnetal sustainability?". This is the link:
Speaker's Corner 29: Microfinance and Climate Change: Can MFIs Promote Environmental Sustainability?

Here's a summary of day one (of three), by Eugene Ionesco :
'Well, it was a great first day and we have two more to go! Thanks to all of you who contributed and to Dan for his leadership. I think it can be safely said that one of the simplest and yet most profound statements made today is that MFIs must search for “Solutions that fit the local conditions” whether it is solar,biofuels, cash crops or organic foods. One size does not fit all and yet a common, shared vision and goals go a long way to moving us in the direction of sustainability for all. As a starting point for this, I would refer the reader to Generally Accepted Environmental Principles (GAEP) developed in 2004 at a workshop co-hosted by GreenMicrofinance. Another of the threads raised the apparent dilemma that as people become more prosperous they naturally consume more energy and resources. And it is here that the opportunity lies to introduce clean energy production and environmental sustainability if this is part of the MFIs vision and is interwoven into its social performance goals. As part of the answer to this dilemma, one contributor suggested Thomas Friedman’s new book, Hot, Flat and Crowded which I can also recommend. The first half is about the reasons why it is in all our best interest to act and then he goes into the opportunities for solutions that this problem has created. There was a great discussion on the effect of environmental degradation on MFI clients and their ability to repay. It was noted that while there is a large amount of antidotal evidence, there have been very few scholarly studies. There was also a very telling question, “Does anyone of an effective awareness raising and/or behavior change program?” To this question I would refer the reader to the ‘fact sheets’ provided by Triodos, one of which is their ‘Social and Environmental Field Guide for Micro Finance Institutes’. Finally, there was a discussion about the impact of the current worldwide financial instability and its potential impact on MFI clients. I’m not sure this was fully developed as I can see several ways in which the ability of MFIs to raise adequate financial resources to serve their clients might be effected. Please join us again tomorrow as we continue to wrestle with these and other critical questions of our time. "It is not the answer that enlightens, but the question." '

Progress out of Poverty Index

2008-10-07T04:33:00.000-07:00

Below some information is copied from the PPI website. Klick on the logo to visit the page with country information directly.

PPI™ by Country

Once a PPI™ is built for a market, it is intended for the public good and is available to all who wish to use it. Grameen Foundation’s collaboration with other key stakeholders within the microfinance industry will ensure that the PPI is available for the greatest number of MFIs that wish to better meet the needs of the poorest members of the communities they serve. There are currently PPIs for Bangladesh, India, Mexico, the Philippines, Haiti, Morocco, Bolivia, Peru and Pakistan. Click on each country to download its PPI and supporting documents.
In partnership with CGAP and the Ford Foundation, Grameen is building PPIs for all of the markets where its partners operate and where a demand exists for the PPI. Grameen Foundation is currently piloting the PPI with network partners in Latin America, Asia and the Middle East/ North Africa region. Organizations outside the Grameen Foundation network are utilizing the PPI in South Africa, India, Pakistan, the Philippines and Bolivia.

Sector Factsheets

2008-05-16T06:12:00.000-07:00

Some of the TSF participants have been trained on social and environmental aspects as part of their relationship with FMO. During these trainings, the MFIs learned how to work with so-called Sector Factsheets. These Factsheets contain simple tips for observing social, health and safety and environmental risks and opportunities at client level, and explain how to address these issues with the client, in order to improve the situation.

The Factsheets were developed by Triodos Facet, in part based on our TSF experiences. We've made them available in a simple and accessible way: click here.

Findesa finalist - finished second

2008-05-16T06:06:00.000-07:00

During last week's GRI conference in Amsterdam, it was announced at the readers' choice award dinner that Findesa had finished second, in the SME category GRI reporters. An achievement that deserves our congratulations!! Findesa created a wonderful occasion for all TSF participants to be seen and heard on an international platform. The conference proceedings and podcasts of all the sessions can be found at www.globalreporting.org.

Reliance's Annual Report - The Innovative Way

2008-04-28T06:28:00.000-07:00

What's so innovative about Reliance's 2007 Annual Report?

Not the fact that the reported year 2007 was their FIRST full year of operations (!),
nor that they published the report early MARCH 2008 (!), it's not the colours, the professional lay-out and presentation, or the GRI reference in the report....
The innovation is in the fact that Reliance is the first Microfinance Institution worldwide, that included, as an addition to the Global Reporting Index in the back of their report, a reference to the Social Performance Taskforce (draft) indicators.

So IF you are looking for a good example report, and want a state of the art reference, check Reliance Gambia's annual report (full pdf version here).

Wonderful News (again!)

2008-04-07T02:39:00.000-07:00

Today, referring to the first GRI Readers Choice Awards, Global Reporting Initiative announced:

From the 78 shortlisted reports only 45 reports have been declared eligible to receive one of eight awards to be given out in different categories.
Our TSF partners Findesa and Acleda both belong to this final group!!
Scores will now be totaled and the highest scoring reports in eight categories will be rewarded during the Global Conference on Transparency and Sustainability
( http://www.amsterdamgriconference.org/).

These are the 45 companies that are eligible to win one of the eight Awards:

Argentina
CILSA (Centro de Integración Libre y Solidario de Argentina)
Fundación Empredimientos Rurales Los Grobo
Australia
ANZ Banking
City of Melbourne
Brazil
Banco Bradesco
Banco do Brasil
Banco Itau Holding Financeira
Banco Real ABN Amro
CEMIG
Natura Cosmeticos
Petrobras
Usinas Siderúrgicas de Minas Gerais
Columbia
CODENSA
ISAGEN
Germany
BMW
Deutsche Bank
Spain
CEPSA
DKV Seguros
Euskaltel
Gas Natural SDG
Grupo Sancor Seguros
Repsol YPF
Telefónica
Vodafone España
Greece
Athens International Airport
Frigoglass
India
ABN AMRO Bank India
Infosys Technologies
ITC
Jubilant Organosys
Tata Motors
Italy
Italcementi
Cambodia
Acleda Bank
Nicarauga
Findesa
Netherlands
ABN Amro Holding
Royal Dutch Shell
Portugal
Banco Espirito Santo
Millenium BCP
Portugal Telecom
Russia
TGC-5
South Africa
Sasol
United Kingdom
BP Group
HSBC Holdings
Vodafone Group
United States
Coca-Cola

Findesa and Acleda Bank shortlisted!

2008-01-11T05:03:00.000-08:00

Good News! Both Findesa (Nicaragua) and Acleda Bank Plc. (Cambodia) have succeeded in reaching the shortlist for the GRI reader’s choice awards.
They received the highest volume of scores (not highest scores!) and the widest diversity of scorers (employees, media, civil society).
The shortlist consists of about 75 organizations, out of a group of 800.
Congratulations to both TSF participants! It’s a good beginning of 2008.

Now they need everybody's votes and scores to become finalists and award winners. So give your support, don't hesitate and go to http://awards.globalreporting.org/

You should select the sustainability reports of both institutions and score them against five criteria. You must score at least two reports, and you must get your scores in by 31 January 2008.

Just Do It !!!

GRI Financial Services Sector Supplement - draft for public comment

2007-12-04T04:26:00.000-08:00

The GRI invites you to comment on the Revised version of the GRI Financial Services Sector Supplement by January 10, 2008 . More here.

The draft supplement includes a new indicator, titled 'Monetary value of products and services designed to deliver a specific social benefit for each business line broken down by purpose' (Indicator #6). In the discription the document mentions 'microfinance' as an example of such products and services.

Another relevant new indicator is 'Access to financial services in low-populated or economically disadvantaged areas by type of access' (Indicator #9). In terms of microfinance this can be related to depth and breadth of outreach.

The problem seems that Microfinance Institutions are 'scoring' 100% at both indicators, which means that the indicators are not useful to compare different MFI's.
A further cross reference check with the Social Performance Taskforce Indicators will be presented soon after this.

GRI Awards!

2007-10-11T05:28:00.000-07:00

Have your say on sustainability reporting today in the GRI Readers’ Choice Awards and Survey

The TSF Project invites all readers to support the participants by scoring their sustainability reports, in order to make them eligible for the GRI readers'choice awards! (See below for more backgound information and how-to)

In case you need information or support with this scoring, please contact gj.schuite@triodosfacet.nl and your TSF coach will support you with signing up and perform the actual scoring.

From 1 October the GRI Readers’ Choice Awards and Survey will give all sustainability report users worldwide a voice on the current state of sustainability reporting. Sustainability report readers will have the opportunity to score a minimum of two sustainability reports from 2006 and contribute to deciding which reports should deserve recognition in the GRI Readers’ Choice Awards. In conjunction with the Awards KPMG and SustainAbility, the leading global sustainability reporting trend monitors, will conduct an online survey about sustainability report readers needs and preferences.
These results of the Awards and Survey will give all sustainability report users worldwide the opportunity to shape the future of best practice in sustainability reporting.
Both the Global Readers’ Choice Awards and the Survey results will be presented during ‘The Amsterdam Global Conference on Sustainability and Transparency’, which will be held 7 - 9 May, 2008. All readers who score a minimum of two reports will qualify for the prize draw to win one of six all expenses paid trips to the conference.
Your opinion counts. To find out more information, register and start scoring reports go to www.awards.globalreporting.org

Workshop at Triodos Bank

2007-10-02T01:38:00.000-07:00

On 27 September in Zeist, The Netherlands, the TSF project participants joined for an annual update and follow-up meeting. As usual, the workshop boasted with energy and fresh ideas for further developments and activities. There were presentations about new environmental opportunities (renewable energy), about using practical measurement tools for social performance (poverty scorecards), and about the work of the Social Performance Task Force. We studied the possibilities of developing a GRI (sub) sector supplement for Microfinance, and discussed practical approaches to move forward with Triple Bottom Line Management and Reporting.

Some participants explained that the implementation of triple bottom line management and reporting really helped them to improve their organization.
One of our biggest challenges is to keep things simple, not becoming involved in too many platforms and broader discussions. We should focus on execution of activities first, on getting things done.

The general conclusions of the workshop were that the group needs to continue with focusing on the triple bottom line, that the TSF participants should continue to provide leadership and that the tools to achieve this should be strong, yet simple. A key aspect is that everybody should use the same tools. As a symbolic act, that evening all participants embarked for a boat ride together. An action plan is currently being developed by the TSF coaches, and will be discussed with the TSF participants separately.

Environmental and social risk management tools for MFIs

2007-09-25T07:35:00.000-07:00

The Netherlands Finance Development Company FMO published on its website a series of new interesting tools for Microfinance Institutions. Some TSF participants have already participated in a dedicated training with other MFI's.

FMO has developed practical and easy-to-use environmental and social risk management tools for microfinance institutions (MFIs).
The E&S risk management support tools for MFIs, now available in English and Spanish, include:

Part A: Office Guide
The Office Guide consists of guidance on how E&S evaluation and follow-up processes (= the Environmental and Social Management System) can be put in place in alignment with the MFI's regular credit evaluation, approval and monitoring and reporting processes.

Part B: Field Guide
The actual Field Guide provides the MFI loan officer with practical guidance to address environmental and social themes in the contact with their clients. There are two main sections:

An Activity Assessment Tool - this is a matrix, summarizing the key environmental and social risks for each of the various sectors that MFIs work in: various forms of agriculture, services, and manufacturing.

24 Fact Sheets, describing in a practical way for each sector as identified in the Activity Assessment Tool, the relevant environmental and social themes, with simple to recognize icons,
guidance for the loan officer to assess the situation with the client for each of the relevant themes, explanation of the benefits for the microclients of improvement on environmental and social matters, and recommendations for possible prevention and mitigation measures (actions to agree upon with the client, practical advice), best practices,
Next this, information is given on the legal context, and practical tips for implementation.

Part C: Training Guide
FMO provides practical training courses to client MFIs and MFI Funds to help them underway in setting up the relevant management systems. This Training Guide Contains all the materials used, and these materials can be used in-house by the MFI to further train staff.

FMO published these Guides in English and Spanish here.

Findesa's 2006 Annual Report

2007-09-04T00:27:00.000-07:00

Gabriel Solórzano, Chairman of the Board of Findesa (Nicaragua), presented the 2006 Annual Report, claiming that '... all our financial effort would not be important if we could not balance it with triple results adding social and environmental impact to our goals. We have signed an agreement with Hivos Foundation to start a project which will measure the social impact to our customers and employees. That is why our annual sustainability report based on Global Reporting Initiative (GRI) standards details our efforts in these areas. You may download it at http://www.findesa.com.ni/memoria2006/memoria2006v2.pdf '

Sustainable Banking is HOT

2007-09-03T07:02:00.000-07:00

In a recent Financial Times Article (info here), the author claims that more and more banks are embracing sustainable banking as a strategy to gain a competitive advantage. This is no mere Western phenomenon – the FT Sustainable Banking Awards show that banks from Asia, Africa and Latin America have joined the world of sustainable banking.
In a recent IFC survey, 86% of financial institutions reported positive changes as a result of measures to integrate social and environmental issues into their business. Even more significantly, not a single one reported any negative effects.
Almost three-quarters of banks questioned responded that the reduction in risk associated with better management of social and environmental issues significantly reduced the likelihood of bad debts, damage to the bank’s reputation, and costly opposition from negatively affected social groups and non-governmental organizations.
Almost 50% said that adherence to sustainable guidelines also increased their access to international financial assets.
Finally, more than a third of banks questioned announced that they had won new business as a result. New opportunities have arisen in the areas of loans for environmental projects, access to new markets and expansion into sustainability-driven sectors, such as the rapidly expanding eco-efficiency and clean-production sectors.

Upload you report to the GRI database

2007-08-23T05:33:00.000-07:00

If you haven't done so already, you can upload your annual report to the GRI database by using this link: http://www.globalreporting.org/GRIReports/RegisterYourReport/.

Your report will be recognized in the GRI database, and can be reached by interested readers from there.

Core Social Performance Indicators

2007-06-29T00:56:00.000-07:00

The Social Performance Taskforce now has a core list of indicators that was agreed to test during the next 6 months (please find pdf here – note that it will be completed to add definitions and a suggestion for tools that are available to report on the indicators, such as PPI, Iris tool, etc.). In case any one of you readers is interested to use or test these indicators, please send us a mail.

The list was developed based on the comments and input that were received over the last months. The Taskforce encourages you to send any additional comments by email. Please do so no latter than July 9th. Send any comments to us and we will make sure your input is forwarded to the Taskforce.

Defining Social Performance

2007-06-20T04:36:00.000-07:00

In its May 2007 Issue of Focus Notes (nr. 41), CGAP gives an in-depth discription of the activities of the Social Performance Task Force (for more background see this link)

The Social Performance Task Force has reached consensus around the following definition of Social Performance:

Social Performance is the effective
translation of an institution’s social
goals into practice in line with accepted
social values; these include sustainably
serving increasing numbers of poor and
excluded people, improving the quality
and appropriateness of financial services,
improving the economic and social
conditions of clients, and ensuring
social responsibility to clients, employees
and the community they serve.

The Triple Bottom Line seems somewhat forgotten in this definition, but in last week's Paris meeting, a lot of progress was made in that direction. Also, a 'final' set of social performance indicators was discussed.

As soon as this final list is available, we will post a link on this blog.

Climate Change implications for Microfinance

2007-05-10T05:18:00.000-07:00

MIX released today issue #14 of the MicroBanking Bulletin (MBB) Spring 2007 [download online version here]. Feature articles include possible implications of global climate change for microfinance.

In the article, the authors (Paul Rippey and Elisabeth Rhyne) state that ' Microfinance is not usually considered to be one of the key players in addressing the global warming challenge — unlike, for example the transportation and energy sectors. However, on investigation, the extensive networks of MFIs, branch offices, field workers and customers will be implicated in climate change issues to a surprising extent. As good corporate citizens, MFIs can and should take actions, including awareness-raising among their clients, advocacy with policy makers, and modeling of climate-conscious practices in their own businesses.'

A direct link to the climate change article here.

Need Support from MFIs to Complete Survey

2007-05-08T00:45:00.000-07:00

A survey was developed by CGAP's Social Performance Taskforce to help finalize a list of core social performance indicators that can be used to track the social performance of MFIs on a wide scale (e.g., on the MIX Market)

The survey should take about 1 hour to complete. Feedback of MFI's is considered CRITICAL and we thank you for taking the time to participate in the survey, before May 25, 2007. The results of the survey will be presented at the next Social Performance Taskforce meeting (Paris, June 10–12), and a limited number of survey respondents will be invited to share their thoughts in person with Taskforce members.

More information and the survey itself can be found here (
http://www.surveymonkey.com/s.asp?u=962093704522)

En Español:
El Taskforce de Desempeño Social quiere SU retroalimentación para escoger INDICADORES CLAVES DE DESEMPEÑO SOCIAL. Se presentarán los resultados de la encuesta en la siguiente reunión del Taskforce de Desempeño Social (Paris, 10-12 de junio).
Favor de enviar sus respuestas antes del 25 de mayo, 2007. Para acceder la encuesta Presione aquí.

How Green Is My Office?

2007-04-28T00:43:00.000-07:00

According to HIVOS, 'Microfinance Institutions (MFIs) not only face the challenge to measure the social and environmental impact of their products and services on a client level, but increasingly think about the environmental impact of their own office as well.'

HIVOS selected some toolkits and references, that in our opinion are quite relevant and useful.
Click here for the full article in PDF.

TSF III takes flight

2007-04-06T07:45:00.000-07:00

The TSF project was initiated in 2004 by Triodos Bank in collaboration with GRI in response to the interest of Triodos investees -MFI in implementing the GRI sustainability reporting concept. Two coaches –Teodorina Lessidrenska, GRI Associate and TBL expert consultant, and Geert Jan Schuite, formerly Triodos’ Sustainability Reporting Coordinator and currently consultant at FACET, are providing hands-on assistance to the TSF banks. The second phase of the TSF (2006-07) focused on deepening and broadening of the TSF initiative. Deepening, through coaching, and advice on further improvement of the reporting process, identification of relevant indicators and development of TBL strategies (including the implementation of sustainability management systems); and broadening, is to expand the group of MFIs initiating these concepts in their organisations. Other proposed activities included facilitating (web-based) knowledge exchange in GRI reporting and sustainability management.

Ultimately, these activities have become a foundation for the TSF third phase, when the coaches focus on training development, and also on possible development of a GRI sector supplement for MFIs.

The training modules that are currently being prepared are:

1. Principal and practical implications of the Triple Bottom Line (TBL- What, Why, How?)
2. Understanding the strategic context of sustainability (Basic concepts; Business case and value for the MFI).
3. Guidance and tools for external Triple Bottom Line Reporting (How step-by-step to build a reporting process)
4. Guidance and tools to develop and use indicators to measure and report Triple Bottom Line impact (Introduction of the G3 and practical session on selection of indicators and measurement methods)
5. Assessing relation between Triple Bottom Line and Risk Management (What are TBL risks; Conceptual models for addressing TBL risks on strategic and governance levels)
6. Building and maintaining a Triple Bottom Line Management System (Basic concepts and winning approaches and models)
7. Guidance and tools for evaluating social/environmental relevance of client’s activities
(Overview of existing evaluation methods and their application; examples; development of action plan)

SEEP's Social Performance Progress Brief

2007-03-26T02:09:00.000-07:00

The SEEP Network just released its latest Social Performance Progress Brief (March 2007, Vol 1, Nr 3). This briefing series is a SEEP Network initiative to introduce the concepts of social performance to the microenterprise field.
In the brief the authors state that ‘…. for many MFIs [the starting point] has been their mission and commitment to providing access to the poor and helping them improve their social and economic conditions. But while the microfinance industry over the years has adopted a set of financial indicators with clear reporting standards and guidelines to determine the financial health of institutions, there exists no corresponding set of social performance indicators. Recently, the microfinance industry’s widespread interest in complementing financial assessments of MFIs with assessments of their social performance has blossomed into a number of different tools for this purpose.’

Three initiatives are being presented in this Brief, including the FACET BV operated Triodos Bank and the Global Reporting Initiative:Transparency in Sustainability and Finance (TSF) project. For a link click: Social Performance Progress Brief vol. 1 no. 3

Acleda Bank's website has Sustainability Pages

2007-02-22T02:48:00.000-08:00

Recently, Cambodian Acleda Bank Plc. made the content of it's Environmental and Social Sustainability Report available via the Company website. You can click on the thumbnail below to visit the report. The Bank is now in the process of producing the 2006 version.

UPsides

2007-01-19T05:42:00.000-08:00

'UPsides' is a new magazine about finance and development. It's a quarterly international magazine, published by FMO, the Netherlands Development Finance Company. The first issue is available online: http://www.upsides.nl/Download/Upsides_1.pdf

On Page 24 and 25, the TSF Project is being presented.

Two New Articles

2007-01-09T03:21:00.000-08:00

Dear reader,

Two recently published articles are both very interesting to check out (links attached to the covers above)

First off, a document titled "Sustainability Management and Reporting' (UNEP FI, Dec 2006). The document zooms in on the benefits for financial institutions in developing and emerging economies. Quote: ' It is becoming increasingly apparent that full disclosure and transparent reporting around environmental, social and governance issues – in fact the whole spectrum of issues that make up sustainability – is a key differentiating factor between those institutions that are leading and those which are reactive in this complex area.'

The second document, titled 'The do's and dont's of Sustainable Banking' (BankTrack, Nov 2006), challenges banks to 'embark upon the journey towards sustainability'. This document is written not especially for microfinance banks or emerging countries, but it nevertheless contains some interesting viewpoints, for instance this:

' Don’t treat sustainability as a niche market. Do recognize that sustainability is already at the core of all your business activities, as most activities financed by your bank have social and environmental impacts, be they positive or negative. The challenge is to recognize these impacts and shift their balance in a positive direction.'

New TBL Site

2006-12-28T06:29:00.000-08:00

I produced a new site, dedicated to the Triple Bottom Line in Microfinance: www.tblmicrofinance.com

Check it out and tell me what you think!

Geert Jan

Newsletter !

2006-12-22T02:06:00.000-08:00

Dear Participants,

The 5th TSF Newsletter is OUT!
We think this Newsletter will give you a good impression of how the Project is developing by reading about the October Workshop and GRI event in Amsterdam, the TSF Project Webspace, Halifax discussions on social performance, and the way forward (including coming Worksheets).

Click HERE to view the newsletter on line.

Do you all remember to feed-back your answers to our latest Worksheet??

Thank you all, and

Warm season greetings from The Netherlands!

Question to Reader

2006-12-15T00:57:00.000-08:00

Dear reader of this Post,

For us to understand who is checking these pages, may we ask you to either leave a comment OR send a direct email to gj.schuite@facetbv.nl (indicating 'I visited the TSF Blog').

On top of this, of course ALL comments and replies are more than welcome. We promise to get back to every one commenter personally.

Teodorina
Geert Jan

Four Scenarios for the Future of Microfinance

2006-12-14T05:10:00.000-08:00

Here's a link to a recent 'Focus Note' by CGAP, summarizing the results of a 'scenario-building exercise to help anticipate and prepare for the (...) forces that will shape the future of microfinance'.

A quote:
" ... it is essential to temper expectations about the extent to which microfinance can eliminate poverty or reach the very bottom—destitute households—sustainably. A realistic evidence-based story must be provided. The search for better measures of impact remains an important
strategy to prepare for the critiques that will inevitably come and capitalize on the real potential of microfinance."

GRI Conference - brief evaluation

2006-12-07T07:48:00.000-08:00

The G3 launch was the centerpiece of GRI’s global conference on sustainability and reporting that took place 4-6 th October 2006 in Amsterdam, where 1000 opinion leaders and experts from around the world have gathered. The event represented the pinnacle of a three-year intensive development process which engaged thousands of stakeholders in business and civil society worldwide.
Business leaders now see a clear business case for sustainability reporting, which reduces risk and the cost of capital, helps attract and retain customers and staff, supports stakeholder engagement and creates new business opportunities.
It is important to note that at the G3 conference for the first time since the inception of the GRI in1998 both the speakers and the audience addressed the GRI with a tone demonstrating full acceptance and agreement on its role and position as global sustainability reporting standard: “As G3 is being launched, we enter a new era in the quality of non-financial reporting. GRI is absolutely important platform for partnerships. ” (A.Steiner), “G3 launch is an enormous achievement, now we all have to apply it.” (M.M. Stuart)

Other key points highlighted throughout the conference include:

1. A call to the governments to take a more proactive role by establishment of “...smart regulation” on CSR and sustainability reporting
2. Evidence of growing interest from the investment community in sustainability aspects of business performance and their place in the investment analysis and decision-making
3. Strong consensus on the business case of CSR and the value of sustainability reporting as a “tool for change” within the company, and special focus on the reporting as a tool for strengthening the business competitiveness through boosting innovation, development of new business models and products, attracting and retaining talent
4. The importance of the SME sector for the successful implementation of the CSR and sustainability agendas: “We will not address G3 if we don’t bring SMEs and introduce them to CSR and sustainability reporting. We need to reach million people and businesses in developing countries. We need leadership, need global corporations to use their supply chains to lead the process.” ( M.M. Stuart); “We need a positive locally based sustainable development agenda based on common values: prosperity, solidarity, security.” (M. Wallstrom).
5. Recommendations for further development of the GRI framework:
· Indicators and technical protocols, sector supplements, national annexes: “The quest for widening and deepening of the current reporting framework would continue by focusing on indicators improvement, one by one: “Impact indicators are new area not included in G3. Identification of critical issues is what the GRI process is expected to do…New discussions have started addressing innovation based on sustainability reporting, and related to indicator protocols.” (E. Lighteringen, GRI) and by further expansion of the sector supplements and development of national annexes. Sector specific issues will be the key for further growth of the GRI.
· Recommendations sustainability reporting to be combined with financial reporting: “CSR reporting must be combined with financial reporting – this is critical for the sustainability of the company.” (ABN AMRO)
6. A call for partnerships and collaboration between the CSR initiatives and standards.

Making the Switch to G3

2006-12-06T06:59:00.000-08:00

Dear TSF Participants,
Some of you will consider to report, using the new GRI Guidelines. The GRI Website gives a wide range of information, including how to make the switch from the '2002 Guidelines' to 'G3'.

Click here to find out more!

Sustainable Banking Awards

2006-11-22T00:55:00.000-08:00

We often receive questions from TSF participants about sustainability contests and transparency prizes. The information below might be interesting for you:

The FT Sustainable Banking Awards were created by the Financial Times in association with the International Finance Corporation, the private sector arm of the World Bank, to acknowledge the progress that banks have made in integrating social, environmental and corporate governance objectives into their operations while maximising shareholder value. The goal is to highlight initiatives that work and to reward progress on the journey towards sustainability. It is a best-in-class measure, not an absolute measure. We hope the awards – now in their second year -- will act as a catalyst for further innovation in sustainable banking, helping to encourage best practice and transparency in the way banks approach sustainability and stimulate debate on the role banks can or should play in the area of sustainability.

In case you want more information, you might check the website, and/or contact gj.schuite@facetbv.nl. I can support and coordinate if needed.

Microcredit Summit 2006

2006-11-16T06:00:00.000-08:00

Dear Participants,

Soon we will provide you with information about the outcomes of the Social Performance Taskforce Meeting, held in Halifax, Canada, last week Friday and Saturday (10 and 11 Nov. 2006, see photo below). We made some decisions about a list of (22) social performance indicators. As soon as the list is available, we will disseminate this list actively to all participants.

For now, we would like to inform you about some background reading materials and reports, produced for the Summit by a range of organisations and individuals. You can find the overview here: http://www.microcreditsummit.org/papers/allpapers.htm

Will be back soon!!

Geert Jan

Example reports

2006-08-18T04:20:00.000-07:00

TSF participants are interested to see example GRI reports.

Some links here:

Acleda Bank's 2005 Annual Report (PDF)

Findesa's 2005 Memoria 2005 (PDF)

Triodos Bank's 2005 Annual Report (PDF)

Banco Solidario's 2005 Annual Report (PDF)

What is reporting 'In Accordance' with GRI Guidelines ?

2006-08-18T04:15:00.000-07:00

We get a lot of questions about 'in accordance' reporting.

This is 'in accordance' according to GRI:

The decision to report 'in accordance' with the Guidelines is an option, not a requirement. It is designed for reporters that are ready for a high level of reporting and who seek to distinguish themselves as leaders. Organizations that wish to identify their report as prepared in accordance with the Guidelines must meet five conditions.
Two key conditions are:
(1) Respond to each core indicator by either (a) reporting on the indicator or (b) explaining the reason for omission of each indicator; and
(2) Include a statement signed by the Board or CEO attesting that the report is a balanced and reasonable presentation of the organisation's sustainability performance.

The in accordance conditions help to advance GRI's commitment to achieving improved report comparability and quality.

Microfinance Gateway's Social Performance Website

2006-08-18T04:08:00.000-07:00

Did you know that the microfinance gateway is currently developing a dedicated website about social performance? In the Rome meeting, last April, of the Social Performance Platform, this was announced by Laura Foose (Alternative Credit) and Syed Hashemi (CGAP). We think it's very promising and a already quite a useful source of information.
Check it at http://microfinancegateway.com/resource_centers/socialperformance