Posts for Resources

Posted on February 06, 2017

Enclude has recently issued a report on strategies for bridging the gap between institutional capital and projects or businesses that adhere to the “landscape approach,”  a school of thought that seeks to balance competing social, environmental, political and economic demands for space and other resources. Landscape investment aims for smart integration of agricultural production, nature conservation, and livelihood enhancement.

Commissioned by the Platform Biodiversity, Ecosystems and Economy (“Platform BEE”), a public-private partnership in the Netherlands, “The Missing Link: Connecting International Capital Markets with Sustainable Landscape Investments” analyses the universe of investment opportunities in landscape finance, including deep dives into four funds that exemplify how capital can be deployed (Africa Agriculture Trade and Investment Fund, Althelia Climate Fund, Ecosystem Investment Partners II, and New Forests’ Tropical Asia Forest Fund). Enclude also partnered with Wageningen Centre for Development Innovation on this initiative.

The report also provides key takeaways for entrepreneurs, fund initiators, governments, and investors on how blended finance can be used to mobilize private capital for impact investments.

Posted on January 20, 2017

Financial transactions have real-world impacts on the environment, society and the economy. Taking these into account with a triple bottom line approach can be a powerful driver of more positive outcomes beyond the economic, and even beyond the direct borrower or customer.  MFIs’ clients are among the most affected by climate change and environmental degradation, and indeed, so are the MFIs’ portfolios. At the same time, clients’ activities can pollute the environment and endanger the health of employees and local populations. Microfinance can contribute to transforming these threats into opportunities, providing financial and non-financial services which improve clients’ resiliency, foster sustainable rural development, offer access to good quality clean energy, and contribute to supporting social and environmental responsibility.

In this article Davide Forcella, Senior Consultant, Inclusive Finance & Energy Finance at Enclude and Geert Jan Schuite, Enclude’s Global Group Lead, Outcomes Management and Strategy, present the activities of e-MFP’s Action Group on Microfinance and the Environment, which they are leading.

Posted on October 27, 2016
In partnership with members of the European Microfinance Platform (e-MFP) and Environment Action Group, Enclude has developed a tool to assess environmental performance in the microfinance sector.

The Green Index 2.0 is the most recent experience-based update of the tool developed by the e-MFP Microfinance and Environment Action Group in 2014 to assess the environmental performance of MFIs. The Action Group has updated the Green Index based Building on results from a two year pilot by members of e-MFP Microfinance and Environment Action Group, a dedicated joint study between e-MFP and the MIX in 2015, and index’s implementation within the Social Performance Indicators 4 (SPI4). The present version is more balanced and user-friendly, and for the first time includes quantitative environmental indicators. The Green Index 2.0 has already been integrated into the current (2016) version of SPI4, and it aims to become the standard reference for environmental performance assessment in microfinance.

Posted on October 13, 2016

In partnership with  the Dutch Platform for Inclusive Finance (NpM1), Enclude has completed a study assessing progress in “greening” inclusive finance across the members of NpM.  The report suggests next steps following the 2015 signing of a Letter of Intent to make strides in this direction. The Letter was presented to the Ministry of Foreign Affairs, detailing the shared intentions of the NpM members to make policies and practices more green.

Download the report with the assessment: Greening Financial Inclusion

Posted on June 08, 2016

5878122945_93e621ec70_oFrom 2013-2015 Hivos, Enclude and Triodos Investment Management implemented the Sustainable Agricultural Finance Expansion Programme, whose purpose was to enhance access to financing for “green growth” in the agricultural sector.  The program worked with 8 partner microfinance institutions of Hivos and TIM, helping them to expand services in the area of green finance.  Target clients were small producers involved in agriculture, producer organisations and agricultural SMEs, and the types of projects financed  included organic farming or climate smart coffee production, or other expansion efforts by farmers applying Good Agricultural Practices.   Six case studies have been published, detailing the unique experiences of each partner organization and highlighting the three pillars of greening agriculture: institutional, financial and environmental sustainability.

Posted on April 26, 2016

With support from JPMorgan Chase & Co. and engagement with over 20 leading impact investors, Enclude has published “Beyond Inclusion: A Strategic Approach to Investing in Financial Capability”. The report details Enclude’s findings on how impact investors can play a role in improving the financial health of poor consumers—the desired outcome—through a focus on financial capability. After socializing the findings at the Social Capital Markets Conference in October 2015 as well as with Financial Inclusion Equity Council members in April 2016, Enclude has identified 12 recommendations to help investors (i) empower low asset consumers to make sound financial decisions; and (ii) encourage individuals to use financial services to advance long-term life goals.

Posted on April 15, 2016

The Sustainable Energy Services for Africa (SESA) programme, a public-private partnership between Philips Lighting and the Dutch Ministry of Foreign Affairs, has been working to find the best ways to reach the most underserved clients.  Over 8 years, SESA has tested a variety of business models to accelerate delivery of off-grid clean energy services to BOP clients in the market ecosystems of 4 African countries: Ghana, Kenya, Tanzania and Uganda. Enclude, together with ETC Foundation, implemented this programme from 2007-2015.  Download the report to learn more: Routes to Market.

Posted on January 21, 2016

Under the Mobile Solutions Technical Assistance and Research (mSTAR) program, Enclude conducted an Assessment of the Potential for Digital Financial Services in Agricultural Value Chains, in partnership with FHI 360 and the U.S. Agency. for International Development (USAID). The purpose of the study was to assess the potential for DFS to contribute to value chain efficiency and improved agricultural productivity by expanding financial services. The main objectives of the assessment were to advance the understanding of:

  • Payment flows and payment service providers in select agriculture value chains
  • Potential for DFS to enhance the efficiency of existing products and transactions within the value chains, enable new partnerships, business models, and product design, and thereby contribute to improved livelihoods
  • Value chain actors’ familiarity with and openness to DFS, particularly mobile-based payments

The assessment report elaborates on the assessment findings, which shed light on the challenges faced by Myanmar’s agriculture sector and the readiness of the sector for DFS. Based on these findings, the report also includes recommendations on ways in which DFS could contribute to greater agricultural productivity and rural development, as well as areas for stakeholder investment and support to further develop DFS in the country.

Download the report: Supporting Digital Financial Services in Myanmar: Assessment of the Potential for Digital Financial Services in Agriculture Value Chains

Posted on November 02, 2015

The latest Enterprise Development and Microfinance issue (Vol. 26, Number 3, September 2015), includes an article produced by Natalia Agathou, Consultant, Sustainable Business Practices and Geert Jan Schuite, Global Group Lead, Outcomes Management and Strategy at Enclude.

This article introduces the Green Performance Agenda framework to investigate the environmental management component of the microfinance sector in southern and eastern Africa. The application of the framework reveals valuable insights on the environmental performance of microfinance institutions (MFIs) in both regions, their ambition and vision for future performance, and the underlying challenges the sector faces as it embarks on a ‘green’ trajectory.

Read more in the article: Environmental performance of African microfinance institutions: using the Green Performance Agenda framework to assess and build the business case for sustainability

Posted on October 22, 2015

The Global Alliance for Banking on Values (GABV), a not-for-profit organisation representing a network of the world’s leading values-based banks, today released an updated report reinforcing the business case for the growing values-based banking movement. Based on 10 years of data, the GABV is posing a question to policy makers, regulators and banking institutions worldwide that asks ‘Why isn’t all banking done this way?’ 

Download the report: Real Economy – Real Returns: The Power of Sustainability-focused Banking