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

Toolkit
Date Published: 
Oct 2014
Author: 
Allet, M. and e-MFP Microfinance and Environment Action Group

Examining environmental engagement of an MFI

This toolkit, named the Green Index, is a practical instrument to assess the environmental performance of MFIs. The Green Index was built through collaborative efforts between various organizations and individuals that participate in the European Microfinance Platform’s Microfinance and Environmental Action Group. It aims to provide a full picture of the environmental engagement of an MFI and also looks into a wide range of possible strategies used in the microfinance sector. The index will be useful for MFIs, investors and microfinance rating agencies, and also for professional associations/networks of MFIs and technical assistance providers. It is built along three dimensions: formal environmental strategy, environmental risk management, and green opportunities. The tool aims to:

  • Foster reflection on environmental responsibility and the triple bottom line approach in microfinance;
  • Promote the integration of green indicators in microfinance performance assessment tools;
  • Have a pedagogical approach by disclosing the main environmental strategies that can be adopted and implemented by an MFI.
Type: 
Toolkit