Measuring the environmental performance of microfinance
Environmental performance is becoming an increasing concern for all businesses. The microfinance sector is no exception. Today, a growing number of microfinance institutions are developing environmental management programs, and microfinance stakeholders are increasingly willing to monitor environmental improvement. However, no adapted methodology currently exists to do so. This article proposes a new tool to measure the environmental performance of microfinance institutions: the Microfinance Environmental Performance Index (MEPI). This tool is based on management performance indicators that have been adapted to the specificities of the microfinance sector. It measures MFIs’ environmental performance along five dimensions: environmental policy, ecological footprint, environmental risk assessment, green microcredit, and environmental non-financial services. MEPI can be a useful tool for research and serve as a basis for environmental strategy planning, progress monitoring, and communication in the microfinance industry.
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