How MFIs can contribute to the ESG framework
Microfinance institutions can play a major role in the society and economy by assimilating ESG framework as part of their business goals.
Microfinance institutions have been playing a huge role in the financial inclusion and women empowerment movements in the rural and semi-urban sectors of India, as a key enabler to reduce poverty and bring about social equality.
MFI’s provide financial inclusivity to those who are otherwise at the risk of financial exclusion. If we take a panoramic view, MFIs are fostering Sustainable Development via routes that were unheard of or seemed a distant possibility till sometime back. But the road to fostering sustainability has many roadblocks, which can be removed only by taking a holistic approach intertwined with ESG framework (Environmental, Social and Governance) to make these concepts operational. As a matter of fact, Microfinance institutions can play a major role in the society and economy by assimilating ESG framework as part of their business goals.