Climate Change Data

Environmental Metrics

ESG Focus Areas

• Poverty Reduction
• Financial Inclusion
• Sustainable Development Goals (SDGs)
• Climate Action
• Responsible Consumption and Production
• Gender Equality
• Decent Work and Economic Growth

Environmental Achievements

• 100% compensation of CO2 emissions (21,983 kWh natural gas, 8,431 kWh electricity, 39.93 t travel and commute), using methods based on the Federal Environmental Agency's cost rates (Method convention 3.0).

Social Achievements

• Assets under management grew by 11.8% to over 823 million Euros, supporting around 590,000 micro-entrepreneurs and their families.
• New loans granted increased by 33.1% to 304.8 million Euros.
• Provided loans in local currencies (Mexican pesos, Indian rupees, Chilean pesos, Indonesian rupees, and Thai baht).

Governance Achievements

• Developed a sustainability strategy to ensure sustainable practices at the corporate level.
• Issued an integrated annual report combining financial and sustainability reporting.
• Implemented holistic approach to sustainability risks at company and business levels.

Climate Goals & Targets

Environmental Challenges

• Challenges in the Cambodian microfinance market due to market saturation and aggressive lending practices by some MFIs.
• Economic difficulties in Ecuador due to oil price dependence and austerity measures.
• High poverty and inequality in Kenya despite economic growth.

Mitigation Strategies

• More selective lending in Cambodia, focusing on MFIs with strong customer protection mechanisms.
• Close collaboration with business partners in Ecuador to navigate economic challenges and achieve social impact.
• Supporting micro- and small enterprises in Kenya to mitigate poverty and inequality.

Supply Chain Management

Responsible Procurement

• Long-term cooperation with sustainable partners (e.g., Triodos Bank)

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Sustainable Development Goals (SDGs)

UN Sustainable Development Goals

• SDG 1 (No Poverty)
• SDG 2 (Zero Hunger)
• SDG 5 (Gender Equality)
• SDG 7 (Affordable and Clean Energy)
• SDG 8 (Decent Work and Economic Growth)
• SDG 9 (Industry, Innovation and Infrastructure)
• SDG 12 (Responsible Consumption and Production)
• SDG 13 (Climate Action)

Investments in microfinance institutions contribute to achieving these SDGs by providing access to financial services, supporting income-generating activities, and promoting economic growth in developing countries.

Environmental Metrics

ESG Focus Areas

• Financial Inclusion
• Women's Empowerment
• Poverty Reduction

Environmental Achievements

• Reduced CO2 emissions through remote work and offsetting remaining emissions (10.1 t CO2)

Social Achievements

• Reached 690,933 end borrowers in 35 countries, 80% of whom were women; increased newly acquired loans by 16.7% year-on-year to EUR 343.2 million

Governance Achievements

• Became a signatory to the Operating Principles for Impact Management (OPIM) in March 2021

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting microfinance institutions and travel restrictions
• Data limitations in measuring social impact and Principle Adverse Impact Indicators (PAI)

Mitigation Strategies

• Close cooperation with CERISE for impact measurement and PAI reporting
• Continued operations despite pandemic, with gradual return to normal business levels

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Operating Principles for Impact Management (OPIM), UN Principles for Responsible Investing

Certifications:

UN Sustainable Development Goals

• SDG 1: No Poverty
• SDG 5: Gender Equality
• SDG 8: Decent Work and Economic Growth
• SDG 10: Reduced Inequalities

Microfinance investments contribute to poverty reduction, women's empowerment, economic growth, and reduced inequalities.

Awards & Recognition

• Boutiquen Award 2021 “Best Fixed Income Fund”

Environmental Metrics

ESG Focus Areas

• Financial Inclusion
• Gender Equality
• Poverty Reduction

Social Achievements

• Reached over 400,000 sub-borrowers, 77% of whom are women.
• Provided approximately EUR 268 million in new loans to microfinance institutions.
• Supported various social projects in Germany (e.g., Die Arche, Caritas).

Governance Achievements

• Signed the UN Principles for Responsible Investing and the Operating Principles for Impact Management.
• First verification process of the Impact Principles successfully completed in 2023.

Climate Goals & Targets

Environmental Challenges

• Concerns about over-indebtedness and customer protection in Cambodia led to a halt in new loans.
• Political situation in Myanmar resulted in no new investments.
• Difficulty in collecting outcome-level data from microfinance institutions.

Mitigation Strategies

• Increased proportion of loans in local currencies (from 14.5% to 23%) to protect against devaluation.
• Utilizing the Joint Impact Model (JIM) database for proxy data on employment and value creation.
• Pilot project testing outcome indicators at selected microfinance institutions.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Principles for Responsible Investing, Operating Principles for Impact Management

Third-party Assurance: Bluemark (for the first statement on the implementation of the Operating Principles for Impact Management)

UN Sustainable Development Goals

• SDG 1: No Poverty
• SDG 5: Gender Equality
• SDG 8: Decent Work and Economic Growth
• SDG 10: Reduced Inequalities

Investments in microfinance institutions aim to reduce poverty and inequality, promote gender equality, and create jobs.

Awards & Recognition

• Two Boutiques Awards (Sustainability and Investor Communications)
• Five stars from Capital magazine