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Green Microfinance. Characteristics of microfinance institutions involved in environmental management


  • Marion Allet
  • Marek Hudon


In recent years, development practice has seen that microfinance institutions (MFIs), beyond their financial and social objectives, start considering their environmental bottom line. Yet, little is known on the characteristics of institutions involved in environmental management. For the first time, this paper empirically identifies the characteristics of these ‘green’ MFIs on a sample of 160 microfinance institutions worldwide. Basing our analysis on various econometric tests, we find that larger MFIs and MFIs registered as banks tend to perform better in environmental policy and environmental risk assessment. Furthermore, more mature MFIs tend to have a better environmental performance, in particular in the provision of green microcredit and environmental non-financial services. On the other hand, financial performance is not significantly related to environmental performance, suggesting that ‘green’ MFIs are not more or less profitable than other microfinance institutions.

Suggested Citation

  • Marion Allet & Marek Hudon, 2013. "Green Microfinance. Characteristics of microfinance institutions involved in environmental management," Working Papers CEB 13-005, ULB -- Universite Libre de Bruxelles.
  • Handle: RePEc:sol:wpaper:2013/138434

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    References listed on IDEAS

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    Cited by:

    1. Davide Forcella & Marek Hudon, 2016. "Green Microfinance in Europe," Journal of Business Ethics, Springer, vol. 135(3), pages 445-459, May.
    2. Simon Cornée & Ariane Szafarz, 2014. "Vive la Différence: Social Banks and Reciprocity in the Credit Market," Journal of Business Ethics, Springer, vol. 125(3), pages 361-380, December.
    3. Lauren Kleynjans & Marek Hudon, 2016. "A Study of Codes of Ethics for Mexican Microfinance Institutions," Journal of Business Ethics, Springer, vol. 134(3), pages 397-412, March.
    4. Labie, Marc & Méon, Pierre-Guillaume & Mersland, Roy & Szafarz, Ariane, 2015. "Discrimination by microcredit officers: Theory and evidence on disability in Uganda," The Quarterly Review of Economics and Finance, Elsevier, vol. 58(C), pages 44-55.
    5. Marion Allet, 2014. "Why Do Microfinance Institutions Go Green? An Exploratory Study," Journal of Business Ethics, Springer, vol. 122(3), pages 405-424, July.
    6. repec:kap:jbuset:v:143:y:2017:i:3:d:10.1007_s10551-015-2811-1 is not listed on IDEAS
    7. Moser, Rafael Magnus Barbosa & Gonzalez, Lauro, 2016. "Green microfiance: a new frontier to inclusive financial service," RAE - Revista de Administração de Empresas, FGV-EAESP Escola de Administração de Empresas de São Paulo (Brazil), vol. 56(2), March.
    8. repec:eco:journ2:2017-03-09 is not listed on IDEAS
    9. Rafael Moser & Davide Forcella & Lauro Emilio Gonzales Farias, 2016. "Microfinance and climate change: threats and opportunities, the case of Brazil’s largest rural MFIs, Agroamigo and Cresol," Working Papers CEB 16-010, ULB -- Universite Libre de Bruxelles.
    10. Moser, Rafael Magnus Barbosa & Gonzalez, Lauro, 2015. "Microfinanças e impactos das mudanças climáticas: o caso do Agroamigo no Brasil," RAE - Revista de Administração de Empresas, FGV-EAESP Escola de Administração de Empresas de São Paulo (Brazil), vol. 55(4), July.

    More about this item


    Microfinance; Environment; Microcredit; Corporate Social Responsibility; Size; Financial Performance;

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • D20 - Microeconomics - - Production and Organizations - - - General
    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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