By Amaka Agwuegbo, with Agency report
J.P. Morgan Chase, Prudential Financial Inc., Citigroup and Deutsche Bank are set to form a new coalition that will create reporting and investing standards in the microfinance sector.
This has become necessary as the microfinance in- dustry is becoming more sophisticated and complex, thus, the need for metrics, transparency and regulation are becoming clearer in order to scale and continue the programs.
Amidst a boom of for-profit investment opportunities to address social and environmental problems, industry leaders say the new coalition will create reporting and investing standards in the microfinance sector.
Joined by the Rockefeller Foundation and USAID, the private-public partnership announced the Global Impacting Investing Network (GIIN), at the Clinton Global Initiative in New York supported by commitments of more than $4m from founding members.
The group looks to form an investor’s council that will work toward the creation and adoption of industry infrastructure, metrics and reporting and investment standards.
The creators say these metrics will address longtime barriers in the socially-responsible investing industry, such as the lack of transparency and credibility in how funds define, track, and report on the social and environmental performance of their capital.