As part of IFC’s annual reporting requirements, Microfinance Institutions are required to provide information on:
- Portfolio breakdown by business line: Retail banking/consumer loans, small-medium enterprise finance, microfinance and other.
- Portfolio breakdown by industry sector: As a percentage of the total portfolio.
- Implementation of the Environmental and Social Management System:
- Status of policies and processes to ensure compliance with the IFC Exclusion List and other applicable IFC environmental and social performance requirements, if any; and
- Monitoring the environmental and social performance of commercial clients.
- Activities on the IFC Exclusion List: Percentage of loans or investments out of the total outstanding exposure provided to clients who are substantially involved in excluded activities.
- Sustainable finance: Investments in projects with environmental and social benefits such as management systems, energy efficiency, renewable energy, cleaner production, pollution management, supply chain greening, corporate social responsibility, and community development.
IFC reviews the Annual Environmental Performance Report (AEPR) and follows up with the microfinance institution to provide clarification on IFC Exclusion List screening, discuss how to improve its environmental and social performance and the ESMS and identify any value-added environmental business opportunities.
