Even if you are skeptical about climate change or its causes, there is no escaping climate regulation. The risks of stranded assets are very real. This is what we refer to as the transition risk. Financial institutions have significant exposures to companies that emit high levels of CO2.
Microfinance has come of age, and the sector needs to discontinue dependence on external catalysts and focus on improving its financial and operating performance by setting targets for borrowers, savers, portfolio quality, and self-sufficiency. Considerable work still needs to be undertaken to ensure that all microfinance banks and institutions are acting responsibly.