As a social investor Alterfin must meet both financial goals (to ensure the sustainability of its activities) and social objectives (to ensure compliance with its development mission).
In practice, this means that beyond the financial aspect, each funding request is analyzed according to a set of social criteria to assess whether the funding will reach those who need it most.
In addition, each year, Alterfin produce an overall evaluation of these criteria and thus measure the social performance of all of its activities in the South.
In this section you will find the main results of these assessments and a description of our 'green' activities. You can also find the details of our social and environmental performance in our Annual Report.
How does Alterfin measure its social performance?
Alterfin created a social performance monitoring tool which sets the essential social performance indicators. This tool is based on a questionnaire that is sent out to all our partners every year. We monitor the social performance of our portfolio via the lists of indicators we receive from our partners.
The tool was first sent to our microfinance partners in 2007. Alterfin is an active member of the Social Performance Task Force (SPTF), a worldwide network of all microfinance stakeholders. The goal of the SPTF is to set industry standards for social performance management and to promote best practices. This active participation allows Alterfin to regularly fine-tune its social performance monitoring tool.
At the end of 2008, an adapted grid was extended to our fair trade partners. Recently, there have been new initiatives to better evaluate and monitor the social performance in the fair trade sector which have been incorporated in our tool. As an active member of FAST (Finance Alliance for Sustainable Trade), Alterfin contributes its know-how to the development of a more standardized social performance measurement methodology for the sector.