Microfinance and Climate Change: Threats and Opportunities

This analytical report proposes ideas regarding what can be done to combat climate change at the household, microbusiness, microfinance institution, and systemic levels. Within the microfinance sector, the word “sustainable” has tended to be used in a very narrow way, mainly referring to institutions that are financially viable. In the past few years, the term has broadened to include social performance. Today, the increasing emphasis on responsible finance has added environmental impact to the factors considered as measures of success for a microfinance institution.