Social Performance Taskforce Informs FAST's Social Impact Assessment Work

Many people have now come to accept the need for a social performance bottom line in microfinance to complement a financial performance bottom line, as was demonstrated at a recent "Taskforce" meeting in Paris. Following in the footsteps of microfinance, FAST will work closely with the socially focused lending community to develop an Impact Assessment Tool aimed specifically for use by lenders who cater to the sustainable small and medium sized enterprise (SMEs) sector.

In response to the need for a "double bottom line" the Social Performance Taskforce was developed, and over the last two years, it has seen a groundswell of interest and participation from diverse partners. Five global meetings have been held bringing together more than 150 organizations within the Taskforce's initiative. Recently, the taskforce has worked on defining core indicators for social performance reporting, shared lessons learned from applying social performance management, and reviewed experiences in applying social rating.

In the sustainable trade sector, each socially oriented lender currently uses their own method of evaluating social impact hindering comparison between the diverse approaches taken by socially oriented lenders. With the standard set of measurable criteria provided by FAST's Impact Assessment Tool, a more effective social impact measurement tool will be made available - enabling lenders to ensure that their activities are achieving the greatest impact possible, while also helping investors understand the social returns that their funding generates.