Findesa and Acleda Bank shortlisted!

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

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!

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

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

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

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

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

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

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

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.