Environmental, Social, Governance scorecard (ESG)

Oikocredit has developed two ESG scorecards which evaluate potential partners in relation to our key selection criteria: one for financial intermediaries and one for social enterprises. This is a key step in ensuring the right target groups are reached and that clients remain the top priority for our partners.

The ESG scorecards:

  • help to select the right partners by identifying strengths and weaknesses of organizations
  • monitors and tracks improvements in social performance managment over time
  • serve as a starting point for dialogue amongst partners
  • help to evaluate the needs for capacity building support

In 2013, we enhanced our two environmental, social and governance (ESG) scorecards to strengthen operational due diligence. One scorecard is for financial intermediaries - MFIs, credit unions, financial institutions and other credit providers. We continued to link this scorecard´s use to monitoring the interest rates that financial partners charge to clients, in order to ensure that rates are fair and competitive. MFI partners are required by our loan contracts to implement the CPPs and endorse the Smart Campaign.

Our second ESG scorecard is for non-microfinance enterprises that directly address the needs of low-income earners through non-financial products and services, including providing employment opportunities.