1. Micol Pistelli, Manager Social Performance Program, MIX Reporting on Social Performance Standards 2010 EMN-CDFA Conference, London, 24/06/2010

2.  Why the SPTF/MIX indicators need to be looked at as industry standards? -Over 50 microfinance professionals representing the industry have participated in defining the standards and in their revision process this year -SPS report is both a learning tool and a reporting tool for MFIs -Rating agencies, MF networks and supporting agencies have created tools to rate and audit SP process and result indicators based on SPTF/MIX standards -Increasing number of investors are asking for standardized SP information for their assessment  What value does tracking and reporting give to MFIs and to the industry as a whole? - To attract investors and donors - To stay a step ahead - To build personal and shared reputation - To analyze performance and trends - To justify investments in SPM Why Social Performance Standards (SPS)?

3. How SPTF/MIX indicators can be used as a preliminary tool towards SPM?  To assess which areas of SPM are important to track  To understand the linkages between different SPM areas  To draft an internal work plan to improve an MFI’s SPM measurement tools  To assess which SP information MFIs wants its MIS to capture  To provide a check for MFIs’ strategies, planning process, products and programs

4. Verification of information  How and who perform data verification? -MIX (internal consistency-check) and interviews with MFIs -Social rating support data validation when available  Which role for national and regional networks, supporting agencies? -Social assessment tools, if used by third parties, can verify process information -Regional and national networks can help with consistency-check of information reported and, eventually, data validation -PPI and PAT Poverty data could be validated by tool developers

5.  Collection of data from Round 1 -Outreach: 208 MFIs reported -Completeness: 76% MFIs completed at least part 1 of the report -Challenges on reporting: -38% reported # of clients attending non financial services -33% reported poverty data -21% MFIs provided data on job creation -11% MFIs provided data on children at school  Improvements to questionnaire -SPS working group refined questionnaire in March. For changes read here: http://www.sptf.info/group/socialindicators http://www.sptf.info/group/socialindicators -Round 2 of data collection started in April. In 2 months, over 100 reports received, 50% of them are new SPTF/MIX Indicators

6. Outreach Q11- Geographic outreach Q12- Women outreach Q13- Clients outreach by lending methodology Q1–Mission & Social Goals Q2- Governance Q3–Range of Products and Services (financial & non-financial) Q4–Training of staff on social performance Q5–Staff performance appraisal and incentives Q6–Market research on clients Q7–Measuring client retention Q14–Poverty assessment Q8– Social responsibility to clients Q9-Cost of services to clients Q10–Social responsibility to staff Q15 – Social responsibility to the community Q16–Social responsibility to the environment [---------------------------- PROCESS---------------------------- - - -- ] [-------------------------------- RESULTS -----------------------------] Outputs and outcomes Q17-Outreach by Products Q18–Employment creation Q19–Children in School Q20–Poor clients at entry Q21–Clients in poverty Q22–Clients out of poverty Intent Internal systems/activities OutputsOutcomes Impact Indicators SPTF/MIX Social Performance Standard Indicators The 13 indicators in red represent the core indicators

7. Learning from social performance reporting  What are we learning from the process? -Quality of information can be only partially checked without ratings or audits -Some SPS (governance, SR to community/environment and human resources) difficult to benchmark against results -Some indicators (children at school, part-time/full-time employment have little information) -Process indicators relatively easy to be tracked by MFIs

8. Profile of MFIs reporting Profile of the 208 MFIs reporting

9. Profile of the 51 ECA MFIs reporting Azerbaijan9 Bosnia 8 Tajikistan7 Armenia5 Kyrgyzstan4 Georgia3 Kosovo3 Kazakhstan2 Macedonia2 Russia2 Uzbekistan1 Serbia1 Albania1 Romania1 Poland1 Mongolia1 30 NBFIs, 10 NGOs, 8 banks, 3 cooperatives

10.  State of Practice in Social Performance Reporting and Management (joint publication with IMP-ACT Consortium). Soon available at: www.themix.orgwww.themix.org Not always clear link between product development and target groups needs. Need to look at how policies and strategies are implemented besides tracking them SR to staff,community and environment do not appear to have a clear relationship with SPM as for clients and need to be further investigated More qualitative information from MFIs reporting on SPS would help increase understanding on implementation of policies and systems – further investigation with interviews needed  Synergies and trade-offs between financial and social performance outcomes. Soon available at www.themix.orgwww.themix.org - Investments in human capital (training on SP and SR) go hand-in-hand with higher staff productivity and better portfolio quality - Serving the very poorest comes at a cost in terms of efficiency, but not risk or productivity MIX Agenda on SP Analysis

11. MIX agenda on social performance standards in 2010 SPS data collection through September 2010 Strengthen data validation process through collaboration with raters and auditors Promote core SPM information tracking among investors ` Inclusion of social performance data display on MIX Market Change of the systems of diamonds of transparency to include SP reporting Social performance information integrated in regional analysis Work with SPS working group and SPM working group on a companion resource guide

12. How does this framework and these indicators apply to the European context? A European SP roadmap - Identify which of the 22 MIX/SPTF indicators are most relevant for the European context - Identify new, relevant, simple indicators that apply to local context - Define and identify indicators for social inclusion/poverty measurement - Adapt social ratings and social audits to reflect the differences among the European context - Identify SPM European best practices in Europe - Advance agenda in coordination with the international SPTF

13. For more information about MIX Social Performance Program please contact: Ms. Micol Pistelli at mpistelli@themix.orgmpistelli@themix.org And visit our website: http://www.themix.org/standards/social-performancehttp://www.themix.org/standards/social-performance For more information about the SPTF, visit: http://www.sptf.info/ http://www.microfinancegateway.org/p/site/m/template.rc/1.11.48260/ Thank you!

14. MICROFINANCE INFORMATION EXCHANGE, INC. The leading provider of business information and data services for the microfinance industry. Web: www.themix.orgwww.themix.org Email: info@themix.orginfo@themix.org Headquarters: 1901 Pennsylvania Ave., NW, Suite 307 Washington, D.C. 20006 USA Other Locations Lima, Peru ● Rabat, Morocco ● Hyderabad, India