Municipal savings funds implement socio-environmental risk management system with support from CAF
As part of Phase 2 of the FEPCMAC corporate project “Challenges and Opportunities of Environmental Management in the CMAC System with a financial inclusion perspective,” which is executed with support from CAF—development bank of Latin America—a Socio-environmental Risk Management System has been designed under a microfinance approach.
The design of this system was based on the following strategic aspects:
- Analysis of the CMAC portfolio to identify exposure by economic sectors, amount of debt, term, type of client and loan conditions.
- Benchmarking with Latin America microfinance institutions to identify lessons learned, best practices and use cases in the MSME segment.
- Identification of environmental management problems in the MSME segment, through the exchange of information with the governing bodies in the environmental sector such as the Directorate-General of Environmental Affairs of the Ministry of Production, and the Environmental Evaluation and Monitoring Body.
Thus, CMACs are jointly adopting international standards and thereby reaffirming their corporate commitment to environmental protection through the promotion of good environmental practices in their customers. It should be noted that during phase 1 of this project, CMACs launched in December 2018 the first green microcredit called Ecoahorro, a smart credit for financing energy efficiency equipment.
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