MICROBANKING BULLETIN, ISSUE 15, AUTUMN 2007 FEATURE ARTICLES

1
Micronance Information eXchange, Inc
FEATURE ARTICLES
Environmental and Social Risk
Management:
The FMO Approach
Robert Bierens, Investment Ofcer, FMO LAC Dept.
Anton G. van Elteren,
Senior Environmental Specialist, FMO Investment & Review Dept.
MICROBANKING BULLETIN, ISSUE 15, AUTUMN 2007
Introduction
Micronance has started a positive social and
economic movement in many developing countries.
Considerable numbers of the worlds poor now have
access to nancial services, giving them opportunities
to start building businesses and focusing on a better
future for themselves and their children. Micronance
has shown that it can transform lives.
It can also be an agent for a more conscientious
approach to environmental and social issues, which
will shape the world for future generations. This
corresponds with the mission of many micronance
institutions and development nance institutions
who are committing themselves to more far-reaching
environmental and social goals.
Because of the required efciency of loan ofcers
and the informal environment in which the micro
entrepreneurs work, the challenge lies in developing
adequate and practical tools which connect the daily
reality and ambitions of micro-entrepreneurs with the
goals of MFIs and DFIs in regard to protability and
sustainable development.
In cooperation with MFIs worldwide and with support
from Triodos Facet and Triple Value consultants, FMO
has developed a toolkit, with insights and practical
guidelines, for loan ofcers and other MFI staff
members to use when working with clients on E & S
issues. For FMO as a development nance institute,
the creation of tools like this is critical for adding
value to the micronance industry beyond nancial
resources.
Divided into three sections, the toolkit includes
an Office Guide, Field Guide and Training Guide
and enables an MFI loan officer to assess the
envrionmental and social impact of a business.
Together with his client, the loan officer can work
on developing ways to reduce the environmental
impact, and/or improve the labour, health and
safety circumstances of the business. With this
toolkit, FMO hopes to have the developed the basis
for a standardized approach for environmental and
social risk management that can be used by MFIs
worldwide.
From Equator Principles to
Micro Business
Over the past years, it has become evident that a
business case could be made for environmental and
social management at nancial institutions in general:
Environmental and social - including labourrisks
in a clients business can mean various risks, such as
credit and reputation, for institutions nancing these
clients.
Therefore, financial institutions have developed
environmental and social management systems
aimed at screening out potentially risky clients
in these fields. A number of large international
commercial banks have developed and adopted the
Equator Principles, based on the IFC Performance
Standards. Those financial institutions that are
adopters screen all their projects that they are
financing over USD 10 million against the IFC
Performance Standards.
Common Social and Environment Issues
The main social issues faced by micro-nance institutions are: sanitation and living conditions, child-labour,
safety in the work-place, education, illegal activities, including illegal CD copying, illegal sales of alcohol,
infrastructure.
The main environmental issues faced are: pollution (waste, water, air), use of chemicals and pesticides, use of
energy, destruction of forest (brick-burning, charcoal production and logging).
2
MICROBANKING BULLETIN, ISSUE 15, AUTUMN 2007 FEATURE ARTICLES
Micronance Information eXchange, Inc
FMO has adopted this approach in all our nancings.
We evaluate our direct investment clients (factories,
production companies, project nance, and
infrastructure) against the same IFC Performance
Standards. With nancial institution clients, FMO
aims for sustainability by requiring the development,
implementation and operation of an Environmental
and Social Management System (ESMS) to manage
and mitigate E&S risks in the portfolio. FMO provides
training and follow-up support to assist FI clients in
developing and implementing an ESMS.
However, in general, businesses served by
microfinance are not associated with the same
scale and types of environmental and social risks
as larger corporate clients and projects served by
other financial institutions. Moreover and naturally,
the focus in microfinance lies in the development
of positive social and economic impact, and the
measurement of such.
Nevertheless, when considering the broad spectrum
of micro-entrepreneurs, specic environmental
and social risks should not be overlooked. Child
labour associated with textile production and other
businesses, groundwater pollution from the use of
agrochemicals, soil pollution by an automotive repair
workshop are a few examples of businesses and
industries that present a social or environmental risk.
When such negative impacts are ignored, the net
social benefit of microfinance activities decreases.
It is for this reason that BRAC, one of the largest
MFIs in Bangladesh, has researched the potential
negative environmental impacts of their lending
activities, and as a result developed methods for
improvement by providing guidance to their loan
officers.
Although the argument can be made that the adverse
environmental and social impacts of one micro
entrepreneur are small, it should be remembered
that the numbers of micronance clients are in the
millions, creating a large cumulative effect.
A Specic Approach for
Micronance
FMO hopes that eventually MFIs will guide their
clients in practical ways in improvement of the
environmental and social performance of their
businesses. This could mean, for instance, that the
loan officer assists the microclient in obtaining the
necessary licenses or registrations, thus avoiding
potential fines or even closure of the micro-business.
Or, in the case of farming and agriculture clients
who use agrochemicals, counselling on the proper
personal protective equipment and the correct
What are the IFC Performance Standards and the Equator Principles?
The IFC Performance Standards were created to clearly dene the roles and responsibilities of IFC and its
client companies, in an effort to minimize the impact on the environment and the affected communities for
the projects it nances.
The IFC Performance Standards cover:
1. Social and Environmental Assessment and Management System
2. Labor and Working Conditions
3. Pollution Prevention and Abatement
4. Community Health, Safety and Security
5. Land Acquisition and Involuntary Resettlement
6. Biodiversity Conservation and Sustainable Natural Resource Management
7. Indigenous Peoples
8. Cultural Heritage
The Equator Principles are a set of guidelines, based on the IFC performance standards among others,
developed by private sector banks as a set of environmental and social benchmarks for managing
environmental and social issues in development project finance in the emerging markets. Once adopted,
the Equator Principles commit the adoptees not to finance projects that fail to follow the processes
defined by the Principles. For detailed information on the Equator Principles, visit www.equator-
principles.com.
MICROBANKING BULLETIN, ISSUE 15, AUTUMN 2007 FEATURE ARTICLES
3
Micronance Information eXchange, Inc
disposal of the chemicals is clearly in the best
interests of the MFI, the client, and the community
at large.
In the end, the benets of positive environmental and
social guidance are many:
1) More business: If clients are guided to improve
towards minimum standards, they become
acceptable clients and hence the MFI can reach
more microclients.
2) More professional business: Maybe even more
importantly, the MFI helps to improve the
situation of such microclients. This can lead to
improved working conditions in terms of health
and safety. This means an improvement of the
business of the microclient: a more professional
business.
3) More sustainable business: With fewer risks, the
business has a better chance at sustainability.
4) More sustainable environment: In the
improvement of the social and environmental
impact of microbusinesses throughout a region,
the MFI contributes to the overall improvement
in the environmental and social status of the
working areas.
5) More sustainable MFI: With the management of
environmental and social risks, the value of an
MFI is improved, along with its reputation, adding
to its overall sustainability.
What About the Competition?
A question often heard is the following: If I ask all
these environmental and social questions, the client
will get overwhelmed, and go to another MFI that
doesnt ask these questions.
First, the practical issues mentioned here are part
of the clients business, so addressing these can be
done in the usual conversations about the business.
One can even reason that the way an entrepreneur
deals with environmental and social matters is an
indicator of the overall performance level of the
company. Next to that, the advice provided only
works if the client acknowledges the benets. In
that way the advice from the loan ofcer will be
valued by the client. So it is important that nothing
is forced onto the client. We recommend addressing
one or two issues at a time, and allow time for the
entrepreneur to change practices.
Additionally, in the opinion of FMO, these environmental
and social issues should not be the subject of competition.
As reasoned above, any nancial institution will have to
address environmental and social issues in the portfolio
sooner or later. In that sense the standard setting of this
approach as foreseen by FMO will create a level playing
eld for MFIs.
The FMO E&S Risk
Management Toolkit
FMO has developed practical and easy-to-use
support tools and an educational course, with plans
for developing Internet support, to help MFIs build an
Environmental and Social Management System.
The E&S Risk Management support tools for MFIs
include:
Part A: Ofce Guide
The Ofce Guide consists of guidance on how
E&S evaluation and follow-up processes (the
Environmental and Social Management System) can
be put in place in alignment with the MFIs regular
credit evaluation, approval, monitoring and reporting
processes.
Part B: Field Guide
The actual Field Guide provides the MFI loan ofcer
with practical guidance to address environmental and
social themes with their clients. There are two main
sections:
An Activity Assessment Tool: This is a matrix,
summarizing the key environmental and
social risks for each of the various sectors that
MFIs work in, encompassing various forms of
agriculture, services, and manufacturing. This
matrix is presented in Figure 1.
24 Fact Sheets, describing in a practical way
for each sector as identied in the Activity
Assessment Tool:
the relevant environmental and social
themes, with simple to recognize icons.
guidance for the loan ofcer to assess the
situation with the client for each of the
relevant themes.
explanation of the benets for the

4
MICROBANKING BULLETIN, ISSUE 15, AUTUMN 2007 FEATURE ARTICLES
Micronance Information eXchange, Inc
microclients of improvement on
environmental and social matters.
recommendations for possible
prevention and mitigation measures
(actions to agree upon with the client,
practical advice), best practices.
A sample fact sheet is provided in Figure 2.
Part C: Training Guide
The Training Guide provides practical training courses
to client MFIs and MFI Funds to help them in setting
up the relevant management systems. This Training
Guide contains all the necessary materials, which can
also be used in-house by the MFI to train staff.
Implementation
As this is a new approach, MFIs should be careful
when implementing it. In the implementation of the
toolkit some key issues should be taken into account:
On which sector or geographic area is the
focus? An MFI can not implement and commit
to this new approach for its whole portfolio. It
probably has to start with a pilot for a certain
group of clients with key questions: Are there
signicant social or environmental risks and
can we inuence them?
Fact sheets should probably be adapted to
local conditions in sectors and with clients.
Agriculture in Argentina has different issues
than agriculture in Cambodia.
Advice in fact sheets could be made more
specic with references to local products (water
and sanitation), organisations (support in
schooling) and legislation (available subsidies)
which can help in the implementation.
Careful denition of monitoring and
reporting goals. Micronance has become
a success through its focus on protability.
The administrative processes accompanying
new ambitions should not hinder this prime
condition.
To address the issues identied, an MFI will have to
develop, implement and operate an Environmental
and Social Management System. In practice, this
means that in each step of the loan cycle, E&S is built
in, as illustrated in Figure 3.

The E&S content in each step can be described as

follows:
1. Application: Here an MFI uses the environmental
and social exclusion listan overview of those
activities that (in the opinion of FMO) under no
circumstances should be nanced.
2. Assessment: The environmental and social
performance of the client has to be assessed.
For this, FMO developed the Field Guide
with an assessment matrix and sector fact
sheets, describing the most relevant potential
environmental and social issues related to each
business sector.
3. Contracting & Disbursement: In this phase,
environmental and social improvement measures
can be agreed upon with the client.
4. Recovery & monitoring: The follow-up of
environmental and/or social advice and
conditions is followed here.
5. Reporting: The results of the ESMS are to be
presented in various reports. In this way the
environmental and social benets to the clients
and the MFI can be substantiated.
In Latin America and Asia the
Implementation Has Started
Courses on the subject have been conducted in
India, Peru, Bolivia, Cambodia and Kenya. Key staff
members of MFIs have been trained, and in-house
training sessions with loan officers have been
completed.
EDYFICAR of Peru has already started the process
of including environmental and social assessment
of their clients in the loan cycle, using the FMO fact
sheets as a starting point for evaluation.
FIE (Fondo Financiero Privado para el Fomento
a Iniciativas Economicas) in Bolivia is using the
FMO field guide approach to evaluate and rate
the environmental and social performance of their
clients.
TPC (Thaneakea Phum Cambodia Ltd) of Cambodia
has already developed a dedicated fact sheet for a
specic line of business (pig raising), based on the
FMO eld guide approach.
BebQ\9]`e\cU6e^T]Q^QWUTRi9^S_^
Incofn provides madetomeasure fnancial solutions
that meet your specifc ob|ectives. Clear procedures,
rapid decisions, professional management and
excellent customer orientation make Incofn your
ideal partner. Already more than o ]VYs from all over
the world en|oy the benefts of Incofn's professional
services.
9c^dYdQR_eddY]UV_bi_ed_Z_Y^dXU]/
Call Incon on +32 (0)3 829 25 36 +32 (0)3 829 25 36
Mail to [email protected] [email protected]
Incon. Worldwide investments in micronance. Incon. Worldwide investments in micronance. www.incon.be www.incon.be
Rural Impulse Fund S. A. SI CAV-FI S
The very rst fund
specialised in rural
micronance
BebQ\9]`e\cU6e^T targets fnancially sustainable rural
]VYs which excel in terms of outreach and social
performance. The 8 m ecT Iund invests via equity and debt,
from oo,ooo ecT to ,ooo,ooo ecT.
BebQ\9]`e\cU6e^T is a public private partnership,
supported by RY_UYRV]_YVSIncofn and [RS Private
Lquity.
6
MICROBANKING BULLETIN, ISSUE 15, AUTUMN 2007 FEATURE ARTICLES
Micronance Information eXchange, Inc

i
n
d
i
c
a
t
e
s

w
h
e
n

a

r
i
s
k

i
s

p
o
s
s
i
b
l
e
,

b
u
t

n
o
t

p
r
o
b
a
b
l
e
,

X

i
n
d
i
c
a
t
e
s

w
h
e
n

i
n

a

s
e
c
t
o
r

t
h
e
r
e

i
s

a

r
e
l
e
v
a
n
t

r
i
s
k

p
o
s
s
i
b
i
l
i
t
y
E n v i r o n m e n t
H e a l t h a n d S a f e t y
L a b o u r
C r o p g r o w i n g
A n i m a l h u s b a n d r y
F i s h e r y
S h o p / R e t a i l / M a r k e t
R e s t a u r a n t / T e a S t a l l
T o u r i s m
H e a l t h c a r e
T r a n s p o r t a t i o n
W h o l e s a l e T r a d e
H a n d i c r a f t s
L e a t h e r t a n n i n g
B r i c k / t i l e m a n u f a c t u r i n g
M e t a l w o r k i n g & E l e c t r o n i c
P a i n t i n g & P r i n t i n g
A u t o / M o t o r r e p a i r
W o o d / m e t a l P r o c e s s i n g
C h a r c o a l P r o d u c t i o n
G a r m e n t s P r o d u c t i o n
T e x t i l e d y i n g
C e r a m i c s , P o t t e r y G l a z
G l a s s M a n u f a c t u r i n g
M i n i n g
F o r e s t r y
F o o d P r o c e s s i n g
.
.
.
w
h
e
n

t
h
e

c
l
i
e
n
t

i
s

.
.
.

A
1
A
2
A
3
S
1
S
2
S
3
S
4
S
5
S
6
P
1
P
2
P
3

P
4

P
5
P
6
P
7
P
8
P
9
P
1
0
P
1
1
P
1
2
P
1
3
P
1
4
P
1
5
.
.
.
u
s
i
n
g

(
a
)

m
a
c
h
i
n
e
(
s
)
[
E
]
[
H
&
S
]
X
X

X
X
X

X
X
X
.
.
.
u
s
i
n
g

c
h
e
m
i
c
a
l
s
/
p
a
i
n
t
s
/

s
o
l
v
e
n
t
s
/

l
u
b
r
i
c
a
n
t
s
/

p
e
s
t
i
c
i
d
e
s
/

f
e
r
t
i
l
i
z
e
r
s
[
H
&
S
]
X
X

X
X
X
X
X
X

.
.
.
e
m
p
l
o
y
i
n
g

c
h
i
l
d
r
e
n
[
L
]
X
X
X
X
X
X

X
.
.
.
w
o
r
k
i
n
g

i
n

b
a
d

c
o
n
d
i
-
t
i
o
n
s
[
H
&
S
]
[
L
]

X
X
X
X
X
X

X
X
X
X
X
X

.
.
.
d
i
p
o
s
i
n
g

o
f

o
r
g
a
n
i
c
/

p
r
o
d
u
c
t
i
o
n
/

c
h
e
m
i
c
a
l

w
a
s
t
e
[
E
]
[
H
&
S
]

X
X

X
X
X

.
.
.
c
a
u
s
i
n
g

e
m
i
s
s
i
o
n
s

t
o

a
i
r
[
E
]
[
H
&
S
]

X
X
X

.
.
.
p
o
l
l
u
t
i
n
g

w
a
t
e
r
[
E
]
[
H
&
S
]

X
X
X
X
X

X
X

.
.
.
p
r
o
c
e
s
s
i
n
g

f
o
o
d
[
H
&
S
]
X
X

X
.
.
.
c
l
e
a
r
i
n
g

f
o
r
e
s
t

f
o
r

l
a
n
d

c
u
l
t
i
v
a
t
i
o
n
[
E
]
X
X

X
X
.
.
.
e
x
t
r
a
c
t
i
n
g

c
l
a
y

o
r

m
i
n
e
r
a
l
s
[
E
]

X
X
X
.
.
.
c
a
t
c
h
i
n
g

s
h
[
E
]
X
.
.
.
k
e
e
p
i
n
g

a
n
i
m
a
l
s
[
H
&
S
]
X

Figure1. Activity Assessment Tool

MICROBANKING BULLETIN, ISSUE 15, AUTUMN 2007 FEATURE ARTICLES
7
Micronance Information eXchange, Inc
A
1

A
g
r
i
c
u
l
t
u
r
e

C
r
o
p

G
r
o
w
i
n
g
O
b
s
e
r
v
e
T
h
e

C
l
i
e
n
t

i
s
.
.
.
A
n
a
l
y
s
e
T
h
e
r
e

i
s

a

r
i
s
k

i
f
.
.
.
E
x
p
l
a
i
n
W
h
a
t

i
s

i
m
p
o
r
t
a
n
t

.
.
.
A
c
t
S
u
g
g
e
s
t

t
h
e

c
l
i
e
n
t

t
o

.
.
.

u
s
i
n
g
(
a
)

m
a
c
h
i
n
e
(
s
)
[
H
&
S
]

M
a
c
h
i
n
e
s

l
o
o
k

u
n
s
a
f
e
,

i
l
l

m
a
i
n
-
t
a
i
n
e
d
,

h
a
v
e

d
a
n
g
e
r
o
u
s

p
a
r
t
s
[
H
&
S
]

N
o

s
a
f
e
g
u
a
r
d
s

a
r
e

a
v
a
i
l
a
b
l
e

a
n
d
/
o
r
/

u
s
e
d

w
h
e
n

n
e
c
e
s
s
a
r
y

[
E
]

L
e
a
k
a
g
e
s
,

d
i
s
p
o
s
a
l
s
,

l
i
q
u
i
d

w
a
s
t
e

o
r

w
a
s
t
e
w
a
t
e
r

d
r
a
i
n
s

t
o

s
t
r
e
a
m

/
r
i
v
e
r
/

p
o
n
d
s
/
s
o
i
l

W
e
l
l

m
a
i
n
t
a
i
n
e
d

m
a
c
h
i
n
e
s

a
r
e

s
a
f
e
,

n
o
t

d
a
n
g
e
r
o
u
s

a
n
d

c
h
e
a
p
e
r

i
n

u
s
e

O
p
e
r
a
t
i
n
g

a

m
a
c
h
i
n
e

w
i
t
h

p
r
o
p
e
r

s
a
f
e
g
u
a
r
d
s

p
r
e
v
e
n
t
s

a
c
c
i
d
e
n
t
s

M
a
c
h
i
n
e

c
a
n

l
e
a
k

o
i
l
/
l
u
b
r
i
c
a
n
t
s

a
n
d

t
h
a
t

w
i
l
l

s
p
o
i
l

d
r
i
n
k
i
n
g

w
a
t
e
r

M
a
l
f
u
n
c
t
i
o
n
i
n
g

E
l
e
c
t
r
i
c
i
t
y

i
s

d
a
n
g
e
r
-
o
u
s

a
n
d

c
r
e
a
t
e

f
a
l
l
o
u
t

T
a
k
e

u
p

m
a
i
n
t
e
n
a
n
c
e

r
o
u
t
i
n
e
,

f
o
l
l
o
w

s
t
r
i
c
t

m
a
i
n
t
e
-
n
a
n
c
e

a
n
d

l
u
b
r
i
c
a
t
i
o
n

p
r
a
c
t
i
c
e
s

f
o
r

t
h
e

m
o
v
i
n
g

p
a
r
t
s

o
f

e
q
u
i
p
m
e
n
t

K
e
e
p

m
a
c
h
i
n
e
s

i
n

g
o
o
d

s
h
a
p
e

a
n
d

c
l
e
a
n

E
x
p
e
r
i
e
n
c
e

o
p
e
r
a
t
o
r
s

o
n
l
y

P
r
o
v
i
d
e

a
n
d

u
s
e

s
a
f
e
g
u
a
r
d
s

(
g
o
g
g
l
e
s
,

g
l
o
v
e
s
,

m
a
s
k
)

R
e
-
u
s
e

s
c
r
a
p
/
d
i
s
p
o
s
a
l
s

S
t
o
p

l
e
a
k
a
g
e
s

S
t
o
p

d
r
i
n
k
i
n
g

l
i
q
u
i
d

w
a
s
t
e

E
s
t
a
b
l
i
s
h

c
o
n
t
i
n
g
e
n
c
y

p
l
a
n
s

f
o
r

a
c
c
i
d
e
n
t
s

H
a
v
e

r
e

g
h
t
i
n
g

e
q
u
i
p
m
e
n
t

a
v
a
i
l
a
b
l
e

P
r
o
v
i
d
e

a
n
d

u
s
e

s
a
f
e
g
u
a
r
d
s

w
h
e
n

w
o
r
k
i
n
g

w
i
t
h

c
h
e
m
i
c
a
l
s

(
m
a
s
k
,

g
o
g
g
l
e
s
,

g
l
o
v
e
s
,

o
v
e
r
a
l
l
)

A

s
e
p
a
r
a
t
e

s
t
o
r
a
g
e

i
s

c
r
e
a
t
e
d
,

l
o
c
k
e
d

a
w
a
y

f
r
o
m

c
h
i
l
d
r
e
n

a
n
d

l
i
v
i
n
g
/
e
a
t
i
n
g

r
o
o
m
s

E
s
t
a
b
l
i
s
h

c
o
n
t
i
n
g
e
n
c
y

p
l
a
n
s

f
o
r

a
c
c
i
d
e
n
t
s

H
a
v
e

r
e

g
h
t
i
n
g

e
q
u
i
p
m
e
n
t

a
v
a
i
l
a
b
l
e

u
s
i
n
g

c
h
e
m
i
c
a
l
s
/

l
u
b
r
i
c
a
n
t
s
/
p
e
s
t
i
c
i
d
e
s


f
e
r
t
i
l
i
z
e
r
s

[
H
&
S
]

N
o

s
a
f
e
g
u
a
r
d
s

a
r
e

u
s
e
d

w
h
e
n

n
e
c
e
s
s
a
r
y

[
H
&
S
]

N
o

r
e
l
e
v
a
n
t

M
a
t
e
r
i
a
l

s
a
f
e
t
y

D
a
t
a

S
h
e
e
t
s

(
o
r

o
t
h
e
r

s
a
f
e
t
y

l
e
a

e
t
)

a
r
e

a
v
a
i
l
a
b
l
e

[
H
&
S
]

S
t
o
r
a
g
e

i
s

u
n
s
a
f
e
,

s
i
n
c
e

u
n
-
l
o
c
k
e
d
,

n
e
a
r

s
l
e
e
p
i
n
g
/
e
a
t
i
n
g

A
p
p
l
y
i
n
g
/
h
a
n
d
i
n
g

t
o
x
i
c

s
u
b
s
t
a
n
c
e
s

w
i
t
h

p
r
o
p
e
r

s
a
f
e
g
u
a
r
d
s

p
r
e
v
e
n
t
s

i
l
l
n
e
s
s

S
a
f
e

s
t
o
r
a
g
e

p
r
e
v
e
n
t
s

f
r
o
m

c
h
e
m
i
c
a
l

r
e
a
c
t
i
o
n
s
,

e
x
p
l
o
s
i
o
n
s
,

r
e
,

l
e
a
k
a
g
e
s

a
n
d

i
n
t
o
x
i
c
a
t
i
o
n

c
l
e
a
n
i
n
g

f
o
r
e
s
t

f
o
r

l
a
n
d

c
u
l
t
i
v
a
t
i
o
n

[
E
]

F
o
r
e
s
t

i
s

m
a
n
a
g
e
d

u
n
s
u
s
t
a
i
n
a
b
l
e

(
w
i
t
h
o
u
t

r
e
f
o
r
e
s
t
a
t
i
o
n

p
l
a
n
)

D
e
f
o
r
e
s
t
a
t
i
o
n
,

i
f

n
o
t

p
e
r
f
o
r
m
e
d

c
a
r
e
-
f
u
l
l
y

a
n
d

i
n

a

s
u
s
t
a
i
n
a
b
l
e

w
a
y

c
a
u
s
e
s

l
a
n
d

e
r
o
s
i
o
n

a
n
d

d
e
g
r
a
d
a
t
i
o
n
,

a
n
d

e
v
e
n
t
u
a
l
l
y

m
u
d

s
t
r
e
a
m
s

a
n
d

w
a
t
e
r

o
o
d
s

A
g
r
e
e

o
n
l
y

o
n

p
e
r
m
i
t
t
e
d

a
n
d

s
u
s
t
a
i
n
a
b
l
e

f
o
r
m
s

o
f

u
s
e

o
f

p
r
i
s
t
i
n
e

l
a
n
d

e
m
p
l
o
y
i
n
g

c
h
i
l
d
r
e
n

[
L
]

C
h
i
l
d
r
e
n

a
r
e

b
e
i
n
g

e
m
p
l
o
y
e
d

C
h
i
l
d
r
e
n

s
h
o
u
l
d

r
e
c
e
i
v
e

e
d
u
c
a
t
i
o
n
,

p
r
o
p
e
r

n
u
t
r
i
t
i
o
n

a
n
d

h
e
a
l
t
h

c
a
r
e
.

T
h
e
y

s
h
o
u
l
d

b
e

p
r
o
t
e
c
t
e
d

f
r
o
m

a
b
u
s
e

a
n
d

d
i
s
c
r
i
m
i
n
a
t
i
o
n
,

a
b
l
e

t
o

p
l
a
y

a
n
d

e
n
j
o
y

t
h
e
i
r

c
h
i
l
d
h
o
o
d

H
a
v
e

n
o

c
h
i
l
d
r
e
n

w
o
r
k
i
n
g

H
a
v
e

c
h
i
l
d
r
e
n

h
e
l
p

w
i
t
h

l
i
g
h
t

d
u
t
i
e
s

o
n
l
y

O
n
l
y

o
u
t
s
i
d
e

s
c
h
o
o
l

h
o
u
r
s

a
n
d

p
u
p
i
l
s

m
u
s
t

h
a
v
e

t
i
m
e

a
n
d

d
e
s
i
g
n
a
t
e
d

p
l
a
c
e

t
o

d
o

h
o
m
e
w
o
r
k

C
h
i
l
d
r
e
n

d
o

n
o
t

o
p
e
r
a
t
e

h
a
z
a
r
d
o
u
s

m
a
c
h
i
n
e
s

B
a
c
k
g
r
o
u
n
d
,

r
e
l
e
v
a
n
t

l
e
g
i
s
l
a
t
i
o
n
,

m
i
n
i
m
a
l

r
e
q
u
i
r
e
m
e
n
t
s

W
a
s
t
e
(
w
a
t
e
r
)
d
i
s
p
o
s
a
l

w
i
t
h
o
u
t

p
e
r
m
i
t

(
e
.
g
.

P
r
e
v
e
n
t
i
o
n

a
n
d

C
o
n
t
r
o
l

o
f

P
o
l
l
u
t
i
o
n

A
c
t
,

1
9
7
4
)

D
o
n

t

i
n
s
t
a
l
l

d
i
e
s
e
l

g
e
n
e
r
a
t
o
r

s
e
t
s

w
i
t
h
o
u
t

a
p
p
r
o
v
a
l

c
e
r
t
i

c
a
t
e

H
a
v
e

M
S
D
S

a
v
a
i
l
a
b
l
e

w
h
e
n

w
o
r
k
i
n
g

w
i
t
h

c
h
e
m
i
c
a
l
s

S
o
l
u
t
i
o
n
s
,

t
i
p
s
,

f
u
r
t
h
e
r

i
n
f
o
r
m
a
t
i
o
n

F
a
r
m
e
r
s

s
h
o
u
l
d

u
s
e

p
e
s
t
i
c
i
d
e
s

t
h
a
t

a
r
e

p
e
r
m
i
t
t
e
d
.

F
a
r
m
e
r
s

s
h
o
u
l
d

c
o
n
s
i
d
e
r

t
o

c
a
r
r
y

o
u
t

i
n
t
e
g
r
a
t
e
d

p
e
s
t

m
a
n
a
g
e
m
e
n
t

(
b
i
o
l
o
g
i
c
a
l

p
h
y
s
i
c
a
l

c
h
e
m
i
c
a
l
)

F
i
x

l
e
a
k
s

p
r
o
m
p
t
l
y

D
r
o
p
p
i
n
g

j
o
i
n
t
s

c
a
n

w
a
s
t
e

o
v
e
r

7
6

l
i
t
e
r
s

o
f

w
a
t
e
r

a

d
a
y

I
n

c
a
s
e

t
h
e
r
e

i
s

n
o

w
a
s
t
e

d
i
s
p
o
s
a
l

f
a
c
i
l
i
t
y

C
o
n
t
a
c
t

(
a
l
o
n
e

o
r

i
n

c
o
l
l
a
b
o
r
a
t
i
o
n

w
i
t
h

o
t
h
e
r

e
n
t
r
e
p
r
e
n
e
u
r
s
)

l
o
c
a
l

c
o
u
n
c
i
l

a
n
d

a
s
k

f
o
r

i
m
p
r
o
v
e
d

p
u
b
l
i
c

s
e
r
v
i
c
e

Figure2. Example Fact Sheet
8
MICROBANKING BULLETIN, ISSUE 15, AUTUMN 2007 FEATURE ARTICLES
Micronance Information eXchange, Inc
Figure3. E&S included in all phases of the loan cycle
Fact
sheets
Contract
clauses
Monito
ring
Reporting
formats
Application
Appraisal
Recovery &
monitoring
Reporting

Loan
contract
Loan
appraisal
sheet
Loan
application
Reports

MIS
info



Exclusion
list
Contracting &
Disbursement
E & S