Our social and environmental reporting reflects our dedication to improving lives and protecting the planet.
Award-winning impact reporting
For our investors and for ourselves it is crucial that we monitor our own and our partners’ social and environmental performance.
By knowing how well our partners are addressing end beneficiaries’ needs or environmental sustainability, we can improve where necessary and be accountable to our members, investors and end-beneficiaries (micro and small-medium sized enterprises, individual borrowers and smallholder farmers).
In 2017, Oikocredit was chosen from among the top 400 Asset Manager IPE companies and PRI signatories by Responsible Investor, for the quality of our impact reporting relating to environmental, social and governance (ESG) reporting.
The full social and environmental performance report (published annually) includes expanded coverage of how our work impacts our partners’ end beneficiaries; information on financial services partners’ outreach to rural and female clients, and longer-term trend analysis.
It also provides more detail in our work on environmental sustainability and looks at how our mission relates to the United Nations Sustainable Development Goals (SDGs).
We place considerable emphasis on end beneficiary outcomes in our reporting - that is, changes in people’s lives over time.
Economic empowerment in low-income communities is both the aim and the ultimate test of our work. We increase our understanding of client outcomes by asking such questions as:
What happens in clients’ lives?
Does financial inclusion make a difference?
Our capacity building efforts in client outcomes enables our partners to use client insights to drive informed innovation and business decisions. It also enables us to conduct in-depth longitudinal research based on data which has already been collected.
We launched our global client outcomes programme in 2014 with partners in Asia, expanded it to Latin America and will roll it out across further regions in the future.
Oikocredit’s renewable energy portfolio is growing rapidly. This both promotes energy inclusion and contributes to the low-carbon transition needed to avoid climate catastrophe.
We assess renewable energy projects by the number of households gaining access to clean energy and by tonnes of CO2 emissions avoided.
In parallel, Oikocredit offices increasingly measure and report on their carbon footprint. More colleagues now take carbon emissions into consideration in their travel decisions, for both daily commuting (reducing car travel, for example) and longer distance work journeys.
Good partner relationships are fundamental to Oikocredit’s effectiveness, starting with selecting like-minded partners.
We describe our long-term commitment to partners as ‘development finance plus’ and provide capacity building in such areas as organizational leadership, management (financial, risk, data, and social and environmental performance), marketing and agricultural techniques.
Our historical assessments show that partners’ environmental, social and governance (ESG) scores for the inclusive finance portfolio tend to be particularly strong in terms of delivering client benefits, and our production and services portfolio (including agriculture and renewable energy) achieve high scores on the environment.
We ask partners each year about their development objectives and work with them on measuring performance and improving delivery.