Impact strategy

Inclusive Finance

An inclusive financial sector empowers people and businesses to achieve their goals and aspirations, and fuels sustainable development.

Today's global challenges

Globally, two billion people are excluded from financial services. This limits people’s opportunities to manage their daily lives, cope with unexpected difficulties, develop their entrepreneurial skills, and plan for the future. Furthermore, between 14 and 20 million small and medium-sized enterprises (SMEs) in developing and emerging economies lack proper access to finance to start and grow. These businesses are firmly rooted in their communities, boost/spur entrepreneurship and play a key role in creating jobs and generating income.  

These challenges make the need for financial inclusion evident. The call and urgency for financial inclusion is also embedded in the UN Sustainable Development Goals (SDGs). Not as a goal in itself, but as a powerful tool to attain many SDGs, such as affordable and clean energy, gender equality, clean water and sanitation, good health, and quality education.  Financial inclusion is a cross-cutting theme that can enable achieving these goals.

Our mission

We finance values-based organisations in Asia, Africa, Latin America and Eastern Europe that use financial services to deliver sustainable economic, social and environmental development, thereby serving the real economy and meeting the needs of underserved populations.  

Suggested funds

Why invest?

Impact goals

1. Provide access

We provide access to finance to underserved client groups.

2. Build robust, transparent and professional financial institutions

Building robust, transparent and professional financial institutions, thus contributing to an accessible, well-functioning and inclusive financial sector that fuels social and economic development.

3. Deepening our impact

Deepening our impact through financial institutions that focus on the fulfilment of basic needs, such as housing, education and healthcare. We promote renewable energy and sustainable agriculture in the process.

Triodos Inclusive Finance Impact Report

Discover the impact of inclusive finance in a context of numbers and stories.

Sustainability embedded in our investment approach

We invest in organisations that aim for a well-balanced mix between people, planet and profit. This basis for our investment policy is anchored in the overall investment process and translated into practices, tools, and indicators which together form the Triodos Sustainability Management System.

Initial screening

The portfolio company's mission and strategy are screened to ensure the alignment with investment strategy.

Due diligence

Investment officers visit the portfolio company to conduct on-site due diligence. In addition to a financial and risk analysis, they use the tools of the Triodos Sustainability Banking Assessment Scorecard, adapted from the Global Alliance on Banking on Values scorecard.

Investment decision

The Investment Committee’s decision is based on a thorough assessment of the investment officer’s findings and analyses of the portfolio company's performance in financial, risk and sustainability aspects.

Monitoring

Portfolio companies are obliged to submit social indicator reports on a quarterly basis to track progress in sustainability and identify areas for improvement. All portfolio companies are reviewed and visited annually by our investment officers.

Reporting

We regularly publish information on our investment activities in monthly, quarterly and annual reports.

Foundations and partnerships

In addition to managing  investment funds that are open to institutional and retail investors Triodos Investment Management also manages non-investible funds.  

Hivos-Triodos Fund Foundation

Hivos-Triodos Fund is a joint initiative of Triodos Bank and Hivos, established in 1994. Due to its funding structure Hivos-Triodos Fund is able to assume more risk and acts as an incubator for innovation in inclusive finance. Hivos-Triodos Fund finances young and innovative financial institutions, as well as organisations that catalyse access to renewable energy and the development of sustainable food and agriculture. 

Download the latest annual report here

Women’s World Banking Capital Partners

Women’s World Banking Capital Partners is a closed-ended USD 50 million equity fund launched by Women’s World Banking  in 2012 with the aim to increase access to finance for women around the world. The fund takes minority equity positions in microfinance institutions, mostly Women’s World Banking affiliates across the globe that have a significant focus on women. Investment management is done by WWB Asset Management in cooperation with Triodos Investment Advisory & Services.

Triodos Sustainable Finance Foundation

Triodos Sustainable Finance Foundation aims to accelerate sustainable development worldwide and can also assume more risk and act as an incubator for innovation in line with our strategy. A part of the portfolio is dedicated to inclusive finance; it finances new and relatively higher risk financial institutions that target difficult-to-reach client groups and under-served geographical areas.

Download the latest annual report here

Meet the leaders of the Inclusive Finance team

Read our stories

How we make a difference in Inclusive Finance

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Is microfinance the silver bullet to poverty alleviation?

Read about our vision in our 'Including the Excluded' whitepaper