Responsible Finance Forum

The Green Index: An Innovative Tool to Assess the Environmental Performance of MFIs

01 October 2014
Source:  European Microfinance Platform

The idea of the Green Index emerged from an observation: in the microfinance sector, there is still no clear understanding of what is meant by “environmental performance in microfinance” and no commonly accepted tool to assess the environmental performance of microfinance institutions (MFIs). The e-MFP Microfinance and Environment Action Group therefore decided to develop a practical tool to assess the environmental performance of a microfinance institution.

The objectives of such a tool are:

  • to foster reflection on environmental responsibility and the triple bottom line approach in microfinance;
  • to promote the integration of green indicators in microfinance performance assessment tools (such as social performance management tools);
  • to have a pedagogical approach by disclosing the main environmental strategies that can be adopted and implemented by an MFI.