The Green Index was developed by the e-MFP Green Inclusive and Climate Smart Finance Action Group (GICSF-AG) in 2014 and was updated (Green Index 2.0) in 2016. Since its first launch, it has become the main framework for assessing the environmental performance of financial services providers (FSP) in green inclusive finance and defining action plans to improve it. Today, many different stakeholders have incorporated the Green Index in their product lines and in their governance: investors (as part of their due diligence), microfinance networks (as means of support to the sector), rating agencies (embedding the tool in social ratings), consultants, and consulting companies (within their advisory services), and FSPs themselves (pursuing a holistic social and environmental performance management). In 2021, the e-MFP GICSF-AG updated once again the tool to stay abreast of the changes in a fast-evolving sector, and to ensure alignment with the new Dimension 7 of the Universal Standards for Social and Environmental Performance Management. This publication documents the update process and presents the new Green Index 3.0, its standards and indicators as well as its scoring system and potential uses.
