1. 2nd International Symposium on Social Investment
Evaluating Social Impact
Presented by Tes Pilapil, Regional Director Southeast Asia
13 October 2013
Tokyo, Japan

2. Oikocredit – Who are we?
 Oikocredit -worldwide cooperative society
established in 1975
 International office in The Netherlands
 “Oiko” is Greek for «house» home, family
 “Credit” from Latin “credere”, to have faith
 The oldest and one of the largest social investors in
microfinance worldwide

3. Our Experience
•
since 1975
•
100% private investment
financed through sale
of shares
•
Diverse membership
o Churches
o Church-related institutions
o Support associations
(30 SAs in 13 countries)
o Project partners
•
Dual return: modest financial return and
social return on investment

4. Facts & figures
At 30 June 2013
• 859 partners in close to 70 countries
• 589 microfinance partners (of total number of partners)
• € 533 million outstanding
• € 105 million approved
• € 119 million disbursed
• 28 million clients reached by Oikocredit’s microfinance
partners*
• 36 regional and country offices
*at 31 December 2012

5. Strategic Support to Social Enterprises
• Loans
• Equity investment
• Risk management
• Product
development
• Market positioning
• Social performance
Capacity
Building
Development
financing/Investments
Strengthen partners’
capacities to
sustainably deliver
VALUE to
clients/members
• Management
systems
• Staff development
• Partners’ feedback
• Risk management +
control
Organizational
development
Clients/ Members /Disadvantaged groups

6. Strengthening the capacities of the social enterprises
• Governance
• Finance
Management
• Risk Management
Financial
Results
Social
Impact
Balanced double or multiple-bottom line
Partners with strong capacities to deliver value in a sustainable way

7. Capacity Building
Market
Development&
Positioning
Risk
Management
Product
Development
Sustainable
value
creation
Social
Performance
Management
(SPM)

8. Social Performance
What is it?

9. Social Performance defined
The effective translation
of an institution’s
mission into practice in
line with accepted social
goals
Importance:
• Achievement
• Accountability

10. Social Return/Social Impact
Choosing
the Right
Partners
Monitoring
Social
Performance
Accountability of
Partners
Feedback
from
Partners
Capacity
Building
Support
Social
Covenants

11. Partner selection
• Create jobs and income
• Cooperatives, financial institutions or small to medium
enterprises
• Women in management positions
• Environmentally sustainable and respect animal welfare
• Suitable management structure
• Are (or can soon become) financially sustainable
• Demonstrate a clear need for foreign investment
* Will never finance child labour, arms productions,
explosives or other dangerous materials

12. To evaluate social impact, we collect data:
Partners’ outreach
Targeting methodology
Employment rates
Sustainability
Compliance with MF Client Protection Principles
Care for the environment
Products and services offered

13. Tools - The Environment, Social and Governance (ESG)
Scorecards
• Developed by Oikocredit in 2010
• Select the right partners by identifying strengths and
weaknesses
• Monitors and tracks improvements in social performance
management
• Starting point for dialogue among partners
• Evaluate the needs for capacity building support
• Areas for improvement as part of Social Covenant
• Red Flags
• Incentive: “Extraordinary Social Relevance” discounts

14. The Oikocredit ESG Scorecard
Domains
 Outreach and Inclusion
(15%)
ESG Scores:
 Client Benefit and
Welfare (40%)
45% - 54% Moderately Weak. Initial
efforts underway to address SP issues
 Social Performance and
Governance (30%)
 Environment (5%)
 Responsibility to
Community and Staff
(10%)
<45% Very Weak. Neglible attention
to social performance
55% - 64% Average. Covers minimum
standards and key issues but needs for
improvement
65% - 79% Strong - Very Strong.
Shows strong social orientation and
addresses all SP areas. Clearly reflects
attention to double bottom line.
80% and higher Excellent. A clear
leader in social performance showing
many best practices

15. Tools -- Progress out of Poverty Index (PPI)
• Developed by Grameen Foundation for MFIs
• 10-question survey tool
• Enables MFIs to accurately select clients from their
target group
• Provide insights into whether a client’s economic
situation has changed
• Oikocredit promotes the implementation of PPI to ensure
they remain committed to serving disadvantaged people
• Areas for improvement as part of social covenant

16. Tools - Microfinance Client Protection Principles (CCP)
The Client Protection Principles
• Are minimum standards
that providers of financial
services should adhere to
 Appropriate product design and
delivery
In Oikocredit:
 Prevention of over-indebtedness
• Basic CPP orientation for
all Microfinance partners
 Transparency
• SMART Campaign
 Responsible pricing
• CPP Assessment
 Fair and respectful treatment of
clients
• CPP in social covenant
 Privacy of client data
 Mechanisms for complaint
resolution

17. Tools - Social Performance Indicators (SPIs)
 Social auditing and assessment tool developed by
the CERISE (French)
 Framework for reviewing organization’s social
strategy, processes and results of products and
services
 Uses indicators covering 4 dimensions:
• targeting and outreach
• benefits to clients
• products and services
• social responsibility
 internal dialogue, policy reforms

18. How does it work? Example: CPP
Partner
Selection
Due
diligence
-Financial
-Social
(ESG)
Strengths/
Gaps in
CPP
Practices
Social
covenant
Letter OR
Loan
agreement:
* CPP
practices to
improve
*Timeframe
CPP
Capacity
Building
Support
CPP
Orientation
CPP
Assessment
Action Plan
Monitoring
Regular
Reports
Visits from
Country
Office/CBSPM Officer

19. Social Performance in Oikocredit
 International Office, The Netherlands
 Social Performance & Financial Analysis Director (Department)
 Capacity Building Manager
 2 Full time Researcher/Analysts, Social Performance
 Social Performance Specialist
 Special Projects Manager (Environment)
 Regional Offices
 Capacity Building/SP Officer at Regional Level
 Southeast Asia Office
 Regional Coordinator, Capacity Building/SPM
 SPM Officer (part-time)
 Consultants

20. Collaboration with Microfinance sector (Global)
 Social Performance Task Force (SPTF)
• development of standards for social performance management,
MFIs
 Client Protection Principles (CPPs)
• steering committee of the SMART Campaign
 MFTransparency
• promotes transparency in pricing in the microfinance sector
• Oikocredit uses MFTransparency tool in due diligence
 Principles for Investors in Inclusive Finance (PIIF)
• leadership of the UN Secretary-General’s Special Advocate for
Inclusive Finance for Development, Princess Máxima of the
Netherlands, Oikocredit co-developed the PIIF.
• implementation and reporting guidelines for these principles.

21. Dōmo arigatōgozaimashita
Thank you very much!

22. Disclaimer
This document was produced by Oikocredit, Ecumenical Development Cooperative Society U.A. (Oikocredit International) with the greatest of
care and to the best of its knowledge and belief at the time of writing. The opinions expressed in this document are those of Oikocredit
International at the time of writing and are subject to change at any time without notice. Oikocredit International provides no guarantee with
regard to its content and completeness and does not accept any liability for losses which might arise from making use of this information.
This document is provided for information purposes only and is for the exclusive use of the recipient. It does not constitute an offer or a
recommendation to buy or sell financial instruments or banking services and does not release the recipient from exercising his/her own
judgment. The recipient is in particular recommended to check that the information provided is in line with his /her own circumstances with
regard to any legal, regulator, tax or other consequences, if necessary with the help of a professional advisor.
This document may not be reproduced either in part or in full without the written permission of Oikocredit International. It is expressly not
intended for persons who, due to their nationality or place of residence, are not permitted access to such information under local law.
Every investment involves risk, especially with regard to fluctuations in value and return. It should be noted that historical returns and financial
market scenarios are no guarantee of future performance. Investments in foreign currencies involve the additional risk that the foreign currency
might lose value against the investor‘s reference currency.
Oikocredit International is a cooperative society with limited liability (coöperatieve vereniging met uitgesloten aansprakelijkheid) under the laws
of the Kingdom of the Netherlands.