MICROCAPITAL STORY: Pioneer in Microfinance Investing, Triodos Bank, Wins 2009 Sustainable Banking Award by Financial Times (FT) and International Finance Corporation (IFC); MicroEnsure and Root Capital Also Take Prizes

The Financial Times (FT) and the International Finance Corporation (IFC) announced the winners of the 2009 Sustainable Banking Awards. Triodos Bank of the Netherlands was named Sustainable Bank of the Year. Other microfinance programs were recognized, with MicroEnsure winning the award for Achievement in Basic Needs Financing, and Root Capital taking the Achievement in Banking at the Bottom of the Pyramid award.

The FT Sustainable Banking Awards, now in their fourth year, were created to recognize banks and other financial institutions that have shown leadership and innovation in integrating social, environmental and corporate governance considerations into their operations. Nominees for the five award categories were selected from 165 entries from 117 institutions across 42 countries.

Triodos Bank, which was established as a commercial bank by the Triodos Foundation in 1980, provides finance for socially beneficial and environmentally sustainable enterprises. Triodos has participated in microfinance activities since 1994, when it founded the Hivos-Triodos Fund, a joint initiative with the Humanist Institute for Development Cooperation (Hivos), and the Triodos-Doen Foundation, in cooperation with the DOEN Foundation. In December 2002, Triodos launched one of the first private microfinance funds, the Triodos Fair Trade Fund. In response to increased industry demand, Triodos launched its fourth microfinance fund, the Triodos Microfinance Fund, in March 2009. In its 15 years of experience in microfinance investing, Triodos Bank has financed over 100 microfinance institutions, working in 38 countries in Latin America, Africa, Asia and Eastern Europe. Total assets under management for the four funds was EUR 156.3 million (USD 218.3 million) at the end of 2008. Continuing its tradition of sustainable banking, Triodos recently took a lead role in the creation of the Global Alliance for Banking on Values; read more in this MicroCapital story.

Itau Unibanco of Brazil won the Emerging Markets Sustainable Bank of the Year Award, and the Global Environment Fund won Sustainable Investor of the Year. Of note, MicroEnsure received the award for Achievement in Basic Needs Financing, and Root Capital took the award for Achievement in Banking at the Bottom of the Pyramid.

MicroEnsure, formerly The Micro Insurance Agency, provides microinsurance products to over 3 million people. The MicroEnsure submission was based on its development of weather index crop insurance in sub-Saharan Africa and Asia. MicroEnsure, which was launched as a pilot program in Uganda in 2005, is a subsidiary of Opportunity International, a global non-profit microfinance network. Today, they offer life, health and crop insurance in Ghana, Colombia, Malawi, Mexico, Mozambique, the Philippines, Uganda, West Timor, Zambia and Zimbabwe. In February 2008, MicroEnsure received a USD 24.2 million grant from the Bill and Melinda Gates Foundation to expand its reach; read more in this MicroCapital press release.

The Award for Banking at the Bottom of the Pyramid recognizes the development and delivery of innovative, viable and replicable financial products and services that engage and empower the poor. Root Capital, the winner this year, is a nonprofit social investment fund that provides finance in rural communities. Since their launch, they have provided more than USD 120 million in credit to 235 grassroots enterprises in 30 countries. Read more about Root Capital in this MicroCapital story.

The awards were presented following the annual Sustainable Banking Conference, organized by the FT and IFC. The theme of the conference, “Now More than Ever…” reflected the need for the financial sector to review traditional business models in the wake of the financial crisis, and the continuing urgency to find solutions to the social, environmental and corporate governance challenges.

By Jaclyn Berfond, Research Assistant

Additional Resources:

Financial Times: Sustainable Banking Conference & Awards

Triodos Bank: Homepage

MicroEnsure: Homepage

Root Capital: Homepage

MicroCapital Story: Global Alliance for Banking on Values Launched in The Netherlands; Eleven Banks Join to Form the Alliance

MicroCapital Story: Gates Foundation Awards $24m to Opportunity International for Micro Insurance Agency to Provide Life, Health, Crop Insurance for 21 Million Poor People

MicroCapital Story: Green Mountain Coffee Roasters Pledges $450k Over Five-Year Period to Non-Profit Social Investment Fund Root Capital