Social Performance: Update for Investors

1. Social Performance: Update for Investors February 3, 2011

2. Agenda • Provide an update on the activities of the Social Investor Working Group • Discuss the updated social performance standards (SPS) indicators • Review the Investor Interactive Toolkit • Solicit input for the agenda of the Investor Roundtable at the SPTF Annual Meeting

3. Four action groups were created within the Social Investor Working Group • Profiling microfinance investment vehicles • Tool sharing and harmonization • Country level analysis of market over- indebtedness • Microfinance investment vehicle ratings

4. Profiling microfinance investment vehicles

5. Tool sharing and harmonization

6. Country level analysis of market over-indebtedness

7. Microfinance investment vehicle ratings

8. Agenda • Provide an update on the activities of the Social Investor Working Group • Discuss the updated social performance standard (SPS) indicators • Review the Investor Interactive Toolkit • Solicit input for the agenda of the Investor Roundtable at the SPTF Annual Meeting

9. Review of previous SPS indicator work • Pilot version of SPS Report was released in 2008: • 22 indicators in the report, each of which had 3 to 11 sub-indicators • Feedback from pilot revealed limitations. Some indicators… • …had an ill-defined standard of success (e.g., documentation of board procedures), making comparisons across MFIs difficult • …focused on internal policies not clearly linked to goals and outcomes (e.g., staff performance appraisal) • …could be set up as quantitative rather than qualitative (e.g., staff training) • …are inherently difficult to validate (e.g., children at school) • Suggestion to shorten overall report to reduce burden on MFIs • Responses also affirmed strong interest in and support for SPS Report

10. Guiding principles for the updated social performance standards indicators • SPS indicators should meet all four of the following criteria: • Relevant for use in SP management decisions • Clearly linked to a specific desired result • Testable • Can be easily validated by third parties • Given that the role of the MIX is to collect data that can be used for industry analysis, most of the SPS indicators should be of the type that can be benchmarked and have an industry standard • Exceptions exist: a few indicators that cannot be benchmarked are still meaningful to collect (e.g., mission statement)

11. Indicators on Updated SPS Report • Total of 11 indicators (most with several sub-indicators): • Mission specifics • Governance • Range of products and services (financial and non-financial) • Client outreach by lending methodologies • Measuring client retention • Social responsibility to clients • Transparency of the costs of services to clients • Human resources and staff incentives • Employment creation and enterprises financed • Social responsibility to the environment • Poverty outreach Going forward, all MFIs reporting to the MIX will fill out the SPS Report because it will be integrated with overall data collection

12. New process for data reporting to MIX • No more Excel sheets to download and fill out, but SP data integrated with overall data collection • Profile data not time-bound (e.g., mission statement, governance, consumer protection, etc.) will be reported by MFIs through a web portal • Result data time-bound (e.g., women borrowers, employment created, poverty outreach, etc.) will be collected through MIX data collection tool, which includes both social and financial performance information

13. SP data collected now available on MIX Market! • All SP data collected during 2009 and 2010 are now available on MIX Market under each MFI’s page Here are some examples, in this case for MiBanco: • 1. Social performance profile data: http://www.mixmarket.org/mfi/mibancoScroll down to Social Performance Profile, and expand Mission Specifics and then Target Market • 2. Social performance results data: http://www.mixmarket.org/mfi/mibanco/data.  Scroll down to Social Performance, and expand Social responsibility to staff and then Human resources.   • 3. Social performance print reports: http://www.mixmarket.org/node/3504/data/social-performance-data?print=1This is available by clicking a button titled “Social Performance Report” on MFI profiles with Social Performance data.

14. Agenda • Provide an update on the activities of the Social Investor Working Group • Discuss the updated social performance standards (SPS) indicators • Review the Investor Interactive Toolkit • Solicit input for the agenda of the Investor Roundtable at the SPTF Annual Meeting

15. The investor interactive toolkit maps available tools and groups them by purpose (1 of 2)

16. The investor interactive toolkit maps available tools and groups them by purpose (2 of 2) This toolkit is posted to the SPTF website, and each tool listed is linked to a webpage providing further information

17. Agenda • Provide an update on the activities of the Social Investor Working Group • Discuss the updated social performance standards (SPS) indicators • Review the Investor Interactive Toolkit • Solicit input for the agenda of the Investor Roundtable at the SPTF Annual Meeting

18. Investor Roundtable at the 2011 SPTF Annual Meeting Date of Investor Roundtable: June20, 2011 Location: Den Bosch, Netherlands Agenda: • We are soliciting input on the agenda at this time • Ideas?

19. How to get more involved Thank you for your interest! Go to the Social Performance Task Force website,www.sptf.info, to: • Find out more about social performance • Join the Social Performance Task Force • Sign up to participate in one or more of the Task Force working groups • Review the updated SPS Indicators and the Companion Resources Guide to the SPS Report • Explore the online resources of the Investor Interactive Toolkit