In order to give more insight to and share the results of its action, the Grameen Crédit Agricole Foundation is publishing its first Impact Report, a financial and extra-financial assessment based on 2019 activity data. The impact assessment was carried out with CERISE, an independent firm specializing in impact and social performance measurement. The purpose of this report is to provide a concise and objective overview of the Foundation’s contribution and its forms of action in favour of impact entrepreneurship and access to essential services.
Humanity is going through a period in history that it has never known. The crisis generated by COVID-19 has shaken our societies, economies, and activities. In a world where inequalities are growing and low-income populations are affected disproportionately, financial inclusion and entrepreneurship are factors for enhancing the resilience of such vulnerable populations. These are the levers of action of the Grameen Crédit Agricole Foundation, which has for nearly 12 years been contributing to the reduction of inequalities and poverty through financial inclusion and impact entrepreneurship.
Today the Foundation is publishing its 1st Impact Report, produced with methodological support from CERISE, a pioneering organization that specializes in the promotion of responsible finance. It aims to provide an objective and concise overview of the Foundation’s contribution and its forms of action. Defining its impact model, objectives, beneficiaries and action levers is the first step towards a more active management of the Foundation’s impact and social utility.
Direct impact of the Foundation
The Foundation aims to create sustainable value by reconciling social, economic and environmental impacts. Its value creation model is based on long-term support for socially efficient microfinance institutions and social impact enterprises that promote access to essential services. The Foundation moreover encourages the emancipation of women by promoting women’s entrepreneurship (85% of microcredit beneficiaries through the supported organizations are women), mainly in rural areas (where 78% of microcredit borrowers live). Sub-Saharan Africa (37% of its portfolio) and South and South-East Asia (29%) are its two geographical areas of reference.
The impact of supported organisations
The Foundation also provides technical assistance and support to the organizations financed to bolster their social and environmental performance. On the social side, the Foundation’s portfolio is assessed by using ALINUS, a tool for managing the social performance of microfinance. The microfinance institutions supported outperformed the sector benchmark (with a score of 65% vs. 53% for the sector) in all the areas assessed. The environmental performance monitoring is more recent, but is progressing. For example, 84% of the supported institutions have established a list of banned environmentally hazardous activities and 42% offer green products to fund environmental friendly practices.
Finally, the Foundation is reinforcing its impact through its cooperation with Crédit Agricole and other major players in development aid. In 2019, the Foundation worked with 51 private, public and community stakeholders in some 40 countries.
In 2020, the Foundation will continue its impact measurement work with the operational deployment of tools and a field study to verify whether its impact model is solid. It will continue to write the chapters of its history in a more collective, committed and sustainable way.