The Green Index 2.0: An Innovative Tool to Assess Environmental Performance in the Microfinance Sector
The Green Index aims to support environmental responsibility and environmental management within the microfinance and, more broadly, the inclusive finance sector. The Green Index 2.0 is the most recent experience-based update of the tool, which was developed by the European Microfinance Platform (E-MFP) Microfinance and Environment Action Group in 2014 to assess the environmental performance of microfinance institutions (MFIs). This update is based on results from a two-year pilot phase, its implementation within the Social Performance Indicators tool (SPI4), and a dedicated joint study between e-MFP and the MIX in 2015. The present version is more user-friendly, balanced and it includes, for the first time, environmental quantitative indicators.
The objectives of this Green Index 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 or other inclusive finance institutions.
The tool should be useful for:
- MFIs, and other inclusive finance institutions (board, managers, staff);
- Investors and microfinance rating agencies;
- Professional associations/networks of MFIs and Technical Assistance providers.