ESG, which stands for Environmental, Social, and Governance, encompasses a set of criteria utilized by investors and companies to evaluate the environmental, social, and governance aspects of a business. These factors serve as a framework for assessing the broader impact and sustainability of an organization beyond solely financial performance.

AMFIU has observed a growing demand, both internationally and locally, for microfinance institutions (MFIs) to systematically report on ESG. Over the years, AMFIU has been educating institutions on the significance of tracking their social mission, which has now evolved into a focus on ESG.

AMFIU has taken proactive steps to educate, sensitize, promote, and enhance the capacity of its members to effectively capture and report on their social mission. As a national apex organization, AMFIU is uniquely positioned to offer a global perspective that individual MFIs may find challenging to achieve independently. This enables AMFIU to share industry experience, best practices, provide informed technical support, and mobilize resources necessary for developing approaches to ESG.

In promoting ESG, AMFIU not only benefits its network but also facilitates the dissemination of local information, provides stakeholders with essential information and services, supports pro-microfinance policy advocacy, encourages balanced growth among members, and helps in reducing reputational risks. By emphasizing both social and financial performance, MFIs can demonstrate their commitment to achieving their social mission while ensuring sustainable growth and transparency in the microfinance industry.