Sector Factsheets

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.

Reliance's Annual Report - The Innovative Way

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).

Environmental and social risk management tools for MFIs

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.

How Green Is My Office?

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.

Acleda Bank's website has Sustainability Pages

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.

Two New Articles

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.'

Example reports

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)