Responsible Investing
Investors are increasingly concerned with their responsibility in the value chain of microfinance. Many have confirmed their commitment to responsible finance, promoting and incentivizing client protection and ethical business practices. Double or triple bottom line investors have - in addition - a commitment to positive change in clients lives (social performance). These investors have an explicit social mission which they strive to translate in results at the client level (e.g. people’s empowerment, reducing vulnerability, job creation, economic development). Responsible investors are also committed to fair treatment of their investees, responsible behavior towards their own investors and the general public as for instance reflected in their performance on Environmental, Social and Governance (ESG) issues.
Investors have taken several initiatives to express their commitments towards (i) responsible finance, (ii) social performance and (iii) responsible investment and use tools to translate these commitments into practice. The Principles for Investors in Inclusive Finance serve as an umbrella for investors’ commitment in all three areas.
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