MICROCAPITAL BRIEF: CGAP (Consultative Group to Assist the Poor), LuxFLAG, United Nations Principles for Responsible Investment (UNPRI), Eurosif Partner to Award Three Microfinance Investment Vehicle (MIV) Environmental, Social and Governance (ESG) Awards

CGAP (Consultative Group to Assist the Poor), an independent policy and research center dedicated to providing financial access for the world’s poor, has teamed up with the United Nation’s Principles for Responsible Investment (UNPRI), a network of international investors created under the auspices of the UN to promote the practice of responsible investing; LuxFLAG, an organization that certifies that microfinance vehicles (MIVs) actually invest in the microfinance sector; and the European Social Investment Forum (Eurosif), a pan-European network aiming to foster sustainable development through European financial markets, to create the CGAP Microfinance Investment Vehicle (MIV) Environmental, Social and Governance (ESG) Awards. The winners were MIVs Oikocredit of the Netherlands, Triodos Investment Management BV of the Netherlands and the Rural Impulse Fund I managed by Incofin of Belgium. Their applications were judged based on transparency of ESG reporting, integration and enforcement of ESG, understanding of the ESG framework and engagement in ESG innovation. According to CGAP, approximately 70 percent of MIVs include ESG indicators in their reports to their own investors [1].

About CGAP (Consultative Group to Assist the Poor): Housed at the World Bank Group, CGAP (Consultative Group to Assist the Poor) is an independent policy and research center dedicated to providing financial access for the world’s poor. CGAP is supported by over thirty development agencies and private foundations. Its mission is to provide market intelligence, to promote standards and to offer advisory services to governments, microfinance providers, donors and investors.

About the United Nations Principles for Responsible Investment (UNPRI): The United Nations Principles for Responsible Investment (UNPRI) initiative is a network of international investors created under the auspices of the UN in 2005 to promote the practice of responsible investing. Based in the UK, UNPRI has put together six principles for responsible investment, which focus on environment, social, and governance (ESG) principles, collaboration and transparency. Members include signatory investment funds and individual investors who show a commitment to the UNPRI principles. As of October 2010, UNPRI has 800 signatory investment institutions.

About LuxFLAG: LuxFLAG was established in 2006 to promote the raising of capital for microfinance by acting as a recognizable symbol of reputable MIVs. It certifies MIVs based on their direct or indirect investment in the microfinance sector. LuxFLAG only certifies MIVs located in nations with financial supervision on par with countries in the European Union.

About the European Social Investment Forum (Eurosif): The European Social Investment Forum (Eurosif) is a nonprofit pan-European network based in France that seeks to foster sustainable development through European financial markets. Members include pension funds, financial service providers, academic institutions and think tanks that together manage EUR 1 trillion (USD 1.3 trillion). Eurosif’s activities include lobbying, policy research and information sharing.

About Oikocredit: Oikocredit is a Dutch cooperative investment fund comprised of church groups, cooperatives and individual investors. Established in 1975, it works in 70 countries worldwide, investing mainly in microfinance institutions (MFIs), as well as trade cooperatives, fair trade organizations and small and medium-sized enterprises (SMEs) in the developing world. As of year-end 2009, Oikocredit reported USD 665 million in total assets with 790 active investments, of which 543 were in MFIs.

About Triodos Investment Management: Triodos Investment Management manages several funds that provide risk capital. These funds include Triodos Venture Capital Fund BV and Triodos Ventures BV. The firm invests specifically in the area of the development of financial sectors in developing countries, renewable energy finance and venture capital. Triodos also manages four microfinance investment funds. These funds are the Hivos-Triodos Fund, the Triodos-Doen Foundation, the Triodos Fair Share Fund and Triodos Microfinance Fund. For 2008, Triodos reported assets under management of EUR 3 billion (USD 4.1 billion) and a net profit of EUR 10.1 million (USD 14 million).

About Rural Impulse Fund: The Incofin Rural Impulse Fund (RIF) was launched in 2008 to invest in rural microfinance institutions (MFIs) that are deemed commercially viable. The Fund targets both farm and non-farm populations in small towns and villages. The Fund invests primarily through loans, though it makes equity investments and guarantees as well. As of September 2010 Rural Impulse Fund I has USD 38 million in assets and an investment portfolio worth USD 29 million that impacts 18 countries.

By Diana Baide, Research Assistant

[1] CGAP. “CGAP Awards Recognize Three Microfinance Investors for Social Commitment” 12 October 2010

http://www.cgap.org/p/site/c/template.rc/1.26.14337/

MicroCapital. “MICROCAPITAL PAPER WRAP-UP: Microfinance Investment Vehicle (MIV) Survey Market Data and Peer Group Analysis: The 2010 CGAP MIV Survey, by CGAP (Consultative Agency to Assist the Poor)” by Witt Gatchell, 1 November 2010

https://www.microcapital.org/microcapital-paper-wrap-up-microfinance-investment-vehicle-miv-survey-market-data-and-peer-group-analysis-the-2010-cgap-miv-survey-by-cgap-consultative-group-to-assist-the-poor/

MicroCapital’s Microfinance Universe profile: CGAP

https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=CGAP+(Consultative+Group+to+Assist+the+Poor)

MicroCapital’s Microfinance Universe profile: United Nations Principles for Responsible Investment

https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=United+Nations+Principles+for+Responsible+Investment

MicroCapital’s Microfinance Universe profile: European Social Investment Forum

https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=European+Social+Investment+Forum

MicroCapital’s Microfinance Universe profile: LuxFLAG

https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=LuxFLAG

MicroCapital’s Microfinance Universe profile: Oikocredit

https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Oikocredit

MicroCapital’s Microfinance Universe profile: Triodos Investment Management

https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Triodos+Investment+Management

MicroCapital’s Microfinance Universe profile: Rural Impulse Fund

https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Incofin+Rural+Impulse+Fund+(RIF)

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