Sustainable microfinance

En savoir plus sur le livre

The Brundtland Report highlights how poverty exacerbates environmental stress through overcrowded cities, deforestation, and marginal land overuse. Alejandro Turbay, Funmilayo Akinosi, and Daniel Nordlund explored how microfinance institutions (MFIs), which primarily serve poor clients, can enhance their socioeconomic missions while remaining ecologically sustainable. They employed the Framework for Strategic Sustainable Development, a systematic five-level approach for planning and decision-making, to define sustainability. The authors developed a principle-based model for a ‘sustainable MFI’ and tested it with executive-level practitioners globally. Their findings reveal a growing acceptance of ecological considerations in socio-economic missions, with an increasing number of 'green' funds transforming environmental challenges into investment opportunities. MFIs that adopt ecologically beneficial practices can enjoy advantages such as reduced credit risk, improved reputation, heightened competitiveness, and better earnings. Notably, integrating ecological considerations is not necessarily costly; some initiatives, like reusing materials, can be implemented without additional expenses. The book illustrates how MFIs can maximize benefits by recognizing the connections between their missions and ecological sustainability.