The Triple Bottom Line for Microfinance

This paper illustrates how MFIs can support their clients in enhancing social and environmental impact. Social mission, increasing pressure for transparency and benefits from a client base that demonstrates positive economic, social and environmental impacts are some reasons for triple bottom line relevancy to MFIs.MFIs can improve their triple bottom line performance by measuring performance, issuing public reports on policies, management and achievements. GRI guidelines and CGAP social performance indicators selected as per relevancy would help them do so. Clear benefits to MFIs will help them improve social and environmental impact of clients business. The paper makes the following recommendations relevant for MFIs in European settings:

• Perform a reality check to understand the real and social environmental risks and client opportunities;
• Start with a pilot project focusing on the issues client face;
• Use the GRI framework for performance reporting.