1. 10 July 2012 – Mexico City Social Performance

2. Agenda 1.Timeline and Structure of Social Performance 2.External SP Initiatives 3.FINCA’s Definition and Measurement of Social Performance 4.Social Performance Targets (Pilot Countries) 5.Empowerment and Aspirations 6.Corporate Social Responsibility 7.Institutionalization of Social Performance at FINCA

3. 3 FINCA’s Definition of Social Performance

4. Long-Term Timeline Definition & Sources Metrics, Monitoring System: Opa Buy-in Plan for 2012 Initial baselines Finalize metrics, monitoring tools, staffing, and budget Resolve outstanding definitions and finalize monitoring tools. Training Set Targets, develop strategies sand incentives Stage II 2013 Stage III 2014 Review Results, Refine Tools Test reporting tools ` Complete 2012 Establish operative baselines

5. 5 Proposed SP Reporting Structure Social & Environmental Officer FI Board SP Officer - Loan Files - Surveys - Operating Reports Subsidiary External Stakeholders Customer Data Warehouse SPAC NBD FINCA International Employment & Income Data FMH

6. External SP Initiatives See Appendix 1 for more detail.

7. Social Performance Matching External and Internal Standards EXTERNAL - SPTF, Ratings INTERNAL - SPAC, MT STANDARDS & METRICS

8. SP “Triple Crown” Initiatives For every financial provider – “do no harm” For double or triple bottom line organizations For organizations with specific stated mission of poverty reduction and/or transformation Modified from : Rhyne, Elisabeth, Daley-Harris, Sam Wardle, & Leah Nedderman. Is Microfinance Ready for Social Performance Certification? USAID, 4 May 2011. Smart Campaign CPPs (includes MF Transparency) SPTF Universal Standards MCSC Seal

9. SMART Client Protection Principles 1.Appropriate product design and delivery 2.Prevention of over-indebtedness 3.Transparency 4.Responsible pricing 5.Fair and respectful treatment of clients 6.Privacy of client data 7.Mechanisms for complaint resolution 9

10. SPTF – Universal Standards Standards being developed with CERISE, MF Transparency MIX Market and SMART Campaign as well as SPTF Membership Cover both social performance and social performance reporting Standards proposed for the following categories: governance and staff commitment client protection (adopts the SMART principles) products and services that meet client needs social responsibility to staff client monitoring and responsible financial performance. 10

11. Universal Standards (cont’d) The Standards would not enforced by the SPTF External evaluation and certification may be filled by: *Social raters and auditors *Investors and donors *Networks and associations *Other organizations performing social performance appraisals. Initial comment period ended 7 June. SPTF Annual Meetings & Working Groups in June MFI Network roundtable on metrics proposed for July. 11

12. SPI Reporting Requirements STAFFING All subsidiaries designate a point of contact for SPI reporting. FCAT 2.0 countries - assign one person to manage the survey Research Fellows for 2012 TopicReporting ToolsFrequencyNotes Outreach and Access FinstatsMonthly Modified to include metrics such as urban/rural outreach Product SurveyAnnual 2012 Survey – Fall Income And Employment Pilot SPI ReportingOngoing FCAT conducted in June through August managed by subsidiary staff or Research Fellows FCAT 2.0Annual Corporate Social Responsibility CSR SurveyAnnual CSR standards and survey to be developed

13. SPI Data Requirements Only FCAT 2.0 or Pilot SPI Reporting framework Random and representative sample Sampling plans approved prior to research Minimum of 350 clients for FCAT 2.0 surveys Approved surveyors – not loan officers Data matched to the format provided 100% Client ID numbers Data verified through spot checks and quality controls. Data properly cleaned, 95% of the data is free from errors Subsidiary Internal Audit shall include SPI data collection and reporting in their annual work plan

14. 2011 Outreach & Access Report

15. Total Outreach, Percent Female 15 Percentage of women borrowers. 2011 ACCESS AND OUTREACH REPORT Source: FinTracks Outreach reports.

16. Rural Penetration is Highest in Latin America URBAN (NATIONAL OR REGIONAL CAPITAL, DAILY MARKETS, LIMITED OR NO LAND AVAILABLE FOR GROWING OR RAISING LIVESTOCK) PERI-URBAN (OUTSKIRTS OF NATIONAL OR REGIONAL CAPITAL, LIMITED GARDENING AND LIVESTOCK ACTIVITIES) RURAL (WEEKLY MARKETS, MAJOR DEPENDENCE ON HOME-GROWN FOOD AND LIVESTOCK 2011 ACCESS AND OUTREACH REPORT Source: 2011 FCAT survey data except Afghanistan (2006) Haiti (2007) Nicaragua (2009) and Uganda (2010.)

17. Client Age Distributions Less than 2% of all FINCA clients are over age 65. 2011 ACCESS AND OUTREACH REPORT