Environmental & social risk management tools for MFIs
Part A: Office Guide
The Office Guide consists of guidance on how E&S evaluation and follow-up processes (= the Environmental and Social Management System) can be put in place in alignment with the MFI's regular credit evaluation, approval and monitoring and reporting processes.
Part B: Field Guide
The actual Field Guide provides the MFI loan officer with practical guidance to address environmental and social themes in the contact with their clients. There are two main sections:
- An Activity Assessment Tool - this is a matrix, summarizing the key environmental and social risks for each of the various sectors that MFIs work in: various forms of agriculture, services, and manufacturing.
- 24 Fact Sheets, describing in a practical way for each sector as identified in the Activity Assessment Tool,
* the relevant environmental and social themes, with simple to recognize icons,
* guidance for the loan officer to assess the situation with the client for each of the relevant themes,
* explanation of the benefits for the microclients of improvement on environmental and social matters, and
* recommendations for possible prevention and mitigation measures (actions to agree upon with the client, practical advice), best practices.
Next this, information is given on the legal context, and practical tips for implementation.
- Field Guide (v2)
- Guía de Campo en Español (v2)
Part C: Training Guide
FMO provides practical training courses to client MFIs and MFI Funds to help them underway in setting up the relevant management systems. This Training Guide Contains all the materials used, and these materials can be used in-house by the MFI to further train staff.
New additional guidance (e-toolkit) now available!
The new MFI Sustainability Guidance, developed by FMO in 2009, is a program that can be installed on the computer of the person responsible for environmental and social risk management of the MFI. It is designed to guide the MFI through the different steps that are to be taken to implement a system to manage environmental and social risks in the portfolio of the MFI, and add sustainability value to the clients. Such process may take a number of years.
A more detailed description of the program and link to download it can be found here.