Greening Small Businesses through the Microfinance Sector

Published on April 25, 2009

Environmental management lessons

In April 2007, FSS launched the Greening the Microfinance Sector training program as a core strategy in capacitating MFIs to improve the sector’s environmental performance.

The first module explains the concepts and methodology of the greening the MFI project as it relates to the local and global environmental problems which rationalize the need for such an effort.

The second module discusses the importance of environmental management systems and provides basic know-how on environmental management accounting (EMA). EMA offers 16 tools to help in identifying and measuring the full spectrum of environmental costs of current production processes and the financial benefits of pollution prevention or cleaner processes.

The participants are then led to a series of mentoring sessions during the third module, which will guide the MFI in installing, documenting, implementing, and evaluating their environmental management systems.

The fourth module, focuses on developing skills and competence of MFI clients on EMS auditing.

“Our coaching program begins from the basics including how to draft an environmental management policy to teaching them how to apply the tools taught to them,” says Sandrino. “We hope that these exercises would open the eyes of MFIs to integrate green measures into day-to-day business decision-making.”

The four-module ladderized training program has been given to 26 MFIs from all over the country since it launched the training program last year.

There is potential

In the course of the trainings, Sandrino narrates, she has come to know what MFIs have already done to make their operations and impacts greener like allocating resources for green enterprises like organic farming and production of organic inputs, solid waste facilities, alternative energy cooperatives. There are also those who have reduced their own consumption of electricity and paper in their operations. Others are influencing policy decision-making at the local levels on environmental issues like mining.

George Pupa, Chief of Loans Division of the United Sugar Plantations of Davao shared that the lectures convinced them on the importance of environmental integration in their operations. Pupa, has assisted in the drafting of USPD’s environmental management policy which they will present to the board of directors for review and approval.

“MFIs understands how environmental degradation affect business and their unique responses are wonderful.

But we have to harness our interventions, apply science in what we do and invite more so that our impact could be bigger in the long run,” says Sandrino.(Bulatlat.com)

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