The Green Index 2.0: An Innovative Tool to Assess Environmental Performance in the Microfinance Sector

Prepared by the e-MFP Microfinance and Environment Action Group under the coordination of the Group co-heads: Marion Allet (PAMIGA), Geert Jan Schuite (ENCLUDE), Davide Forcella (CERMi), Raluca Dumitrescu (MicroEnergy International), October 2016.

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.