How investing in financial inclusion made a difference in 2020

This process consists of the following steps:

• Initial screening
We screen the portfolio company’s mission and strategy to ensure alignment with the Triodos vision and mission, as well as a fit with the Triodos funds’ strategy and our values-driven approach to serving the underserved.

• Due diligence
Investment officers visit the portfolio company to conduct on-site due diligence. In addition to financial and risk analysis, they use the in-house developed Triodos Sustainability Management System to assess the values-driven approach of the potential investee.

• Investment decision
The Investment Committee’s decision is based on a thorough assessment of the investment officers’ findings and analyses of the portfolio company’s financial, risk and sustainability performance aspects. Also, the added value we can bring in as a long-term investor is discussed.

• Monitoring
Portfolio companies are obliged to submit social and environmental indicator reports on a quarterly basis, together with their financials. In 2018, we developed an online investee portal to ensure an efficient process.

• Reporting
To live up to our commitment as a responsible and transparent investor, we regularly publish information on our investment activities in monthly, quarterly and annual reports.

Low-income households and communities in emerging markets are most vulnerable to social and economic shocks. COVID-19 is such a shock.

During 2020, we supported our investees and their clients in these unprecedented and challenging times. Some were well placed in terms of their ability to manage liquidity and for those that encountered difficulties we provided additional facilities or restructured current ones. We also:

issued a COVID-19 Investor Statement, together with the Netherlands Platform of Financial Inclusion, in which we express our commitment to work together as funders to support financial institutions and their clients.
initiated a Memorandum of Understanding for a coordinated, efficient, transparent and responsible response to COVID-19, together with other impact investors in financial inclusion. The MoU successfully put practical measures in place that defined the rules for COVID-related rescheduling of facilities.

COVID-19 also has a huge impact on financial inclusion globally and the way impact investors in financial inclusion support the industry. Yet we believe that financial inclusion will remain key in advancing social and economic development.

Our investment portfolio, consisting of 109 financial institutions in 47 countries, achieved the following impact.

18.2M borrowers reached

76% female borrowers

69% rural borrowers

20.2M savers reached

Impact measurement
The data for this impact report is derived from our online investee portal. In this portal, the financial institutions in our portfolio provide extensive data on social and environmental topics. The indicators that we publish are, when possible, aligned with the IRIS Metrics of the Global Impact Investing Network, designed to measure the social, environmental and financial performance of an investment, or the calculations are based on existing IRIS metrics.

Furthermore, the Triodos Sustainability Banking Assessment Scorecard helps to analyse, monitor and report on the non-financial performance of our portfolio companies in an effective and transparent way. The scorecard consists of 25 indicators grouped in five dimensions: Environment, Management & Staff, Product Range, Responsible Finance, and Governance. It takes into account relevant industry initiatives, including the UNPRI Principles for Investors in Inclusive Finance, the Universal Standards for Social Performance Management and the SMART Campaign’s Client Protection Principles, which address some of the most debated topics in the industry, such as fair pricing.

Part of the whole story
Our role and efforts as an impact investor can only be captured in quantitative metrics and indicators to a limited extent. We do not see them as goals in themselves; they are pieces of information that are part of the broader picture. For that reason, we don’t set specific goals for indicators or compare them to last year figures, because a higher number doesn’t necessarily mean more impact. For instance, financing a small and innovative financial institution which drives financial inclusion in rural areas could create more impact than financing an established financial institution in a mature market. To understand our vision and the extent to which we’re delivering on it, we share stories that illustrate the whole picture. These stories provide the essential context and background for our activities and illustrate our ‘theory of change’.

Find out in more detail how each of our funds – Triodos Microfinance Fund, Triodos Fair Share Fund and SFRE Fund – contribute to a more inclusive world.

Get inspired by our investees in Serbia, Mexico, Indonesia and El Salvador and read how they contribute to an inclusive society. The short movie about Centenary Bank shows how this bank spurs social and economic development by bringing people into the financial system.

Explore a selection of our investments and find out how they work towards a green, inclusive and resilient economy.

By using this tool you agree with the content of this disclaimer.

The purpose of this tool is to inform investors about the type of investments and their potential sustainability impact. The information in the tool is of a general nature and does not constitute an opinion of Triodos Investment Management of the financial instrument. Therefore, the tool is not intended and should not be construed as an offer, invitation or general solicitation to buy, sell or dispose of any investment, to engage in any other transaction or to provide any investment advice or investment recommendation.

Impact Equities and Bonds

The SDGs mentioned in the company sections are linked to the (main) transition theme that the company contributes to, not directly to its products or services. Refer to the Sustainability Annex in the prospectus for more information.

All investments carry risk and all investment decisions of an individual remain the responsibility of the individual. Past or estimated results are no guarantee or indication of future results. Triodos Investment Management does not accept any liability for any losses.

The information in the tool is updated on a regular basis. However, the tool is not updated on a daily basis. Therefore, the information in the tool can be outdated. Triodos Investment Management can not be hold liable for information that is outdated.

Want to invest for impact?

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Explore how to make your money work for positive change with our range of impact investment funds in financial inclusion.

Creating an inclusive world

Why do we invest in Financial Inclusion?

What are our impact goals?

How do we invest for impact?

Impact highlights

Borrowers reached

Female borrowers

Rural borrowers

Savers reached

The impact of our funds

Triodos Microfinance Fund

Impact report

Triodos Fair Share Fund

Impact report

Sustainability – Finance – Real Economies Fund

Impact report

In stories

"Thanks to us new leaders of local communities."

Bien para Bien in Mexico

How KoinWorks meets the needs of the underserved SME sector in Indonesia

Banco Agrícola in El Salvador

Impact on a global scale

Want to invest for impact?

Find out more

Triodos Microfinance Fund

Triodos Fair Share Fund

Sustainability Finance Real Economies Fund

Main

Impact investing

Strategies and solutions

Insights

Triodos IM office

Media enquiries

Investor relations

Funding options