"Micro, small and medium enterprises (MSMEs) are essential in the transition to a more sustainable economy. They comprise 90% of businesses worldwide and make up more than 50 percent of all employment.

However, MSMEs' access to finance in emerging markets remains severely constrained, restricting not only business growth but also their sustainability efforts. Financial institutions (FIs) have an important role in bridging the MSME finance gap while enabling their green and just transition. Sustainable finance can be used to fill this gap while benefitting FIs themselves by expanding their portfolios and diversifying their investors.

To help financial institutions to translate sustainable finance principles to the operations they have with MSMEs, IFC has developed the Sustainable MSME Finance Reference Guide. This Guide sets out a practical approach for FIs on how to implement sustainable finance for MSMEs."

The Reference Guide is prepared by the IFC in English language. Click here to access its full version.

Source: International Finance Corporation (IFC)

Illustration: International Finance Corporation (IFC)