In October 2006, FACET BV conducted a survey, preparing the development and delivery of a training curriculum for microfinance institutions on social and environmental aspects of microfinance. In this assignment for FMO, an inventory was made of the most relevant issues, the most frequent problems, and the needs for support.

Photo GJ Schuite

FACET Consultant Geert Jan Schuite visited and interviewed eleven microfinance institutions as well as several clients, both urban and rural, in Peru, Bolivia, and India. FMO’s objectives are to create awareness, to provide training and assistance and to develop practical tools to inform, appraise and train clients in the field of environmental and social aspects of microfinance. In summary, the main outcomes of the project activities are:

• All eleven microfinance institutions visited showed interest in taking up the environmental and social subjects.
• The main social issues faced by micro-finance banks are: sanitation and living conditions, child-labour, safety in the work-place, education, illegal activities, including illegal CD copying, illegal sales of alcohol, infrastructure.
• The main environmental issues faced are: pollution (waste, water, air), use of chemicals and pesticides, use of energy, destruction of forest (brick-burning, charcoal production and logging) The banks unanimously requested for further training.
• Three types/levels of training were identified:
• Workshop for the board of directors/most senior levels to sensitize them.
• Training for the credit officers, for extending their knowledge, conveying information about norms, providing solutions how to improve. Training for the clients

The conclusion is that the time seems right for this initiative; MFIs are eager to improve their know-how on social and environmental topics. Short-term follow-up in the form of next project steps will benefit from the momentum generated.

Contribution: Geert Jan Schuite ( This e-mail address is being protected from spam bots, you need JavaScript enabled to view it )

Project reference 282,286.