Posted by: Katherine Oglietti
A CDRO client plants a tree as part of a reforestation project.
Interview with: Mirna Elizabeth Chaclán
Marketing and Social Performance, REFICOM-CDRO, Guatemala
CDRO was founded in 1981 by leaders of Mayan communities in Western Guatemala in order to promote integrated rural development in indigenous communities through an approach that respects Mayan Quiche traditions. CDRO works in conjunction with REFICOM (Red Financiera Comunitaria- The Community Financial Network). Due to its goal of assisting indigenous populations who are closely attached to the land, social responsibility to the environment is essential to CDRO’s programming. MIX interviewed Mirna Elizabeth Chaclán of REFICOM-CDRO, who gave us an overview of their written and informal policies on social responsibility to the environment.
REFICOM-CDRO created a written policy on environmental protection in 2008, promoting social responsibility to the environment among the enterprises it supports. Mirna explains: “We live in an important environmental zone, so we feel it is important to conserve the environment. We feel it is very important to establish an environmental policy to value the resources that we have, and secondly to have principles and norms that allow us to practice microfinance without affecting our environment.” The first way it works towards this goal is through classifying microenterprises according to their potential environmental impact in three tiers: high, medium, and low impact.
Medium impact activities: Small livestock production (such as chicken and pigs), home construction, artisan, and collective transportation services
Low impact activities: Consumer and commercial credit in general
If a project is classified as a high impact activity, CDRO offers recommendations to the client, which are then discussed with the client and later included in the loan contract. For example, loan officers may suggest reducing the amount of chemical fertilizers and insecticides a farmer plans to use, replacing them with organic alternatives. The clients are held responsible for complying with the policies included in the contract. Certain activities with large environmental impacts, such as mining or the unsustainable exploitation of natural resources, are automatically denied loans. For medium impact activities, loan officers look for ways of reducing the environmental impact of each activity. CDRO gives preference to projects that are environmentally sustainable, and adapts its loan repayment schedules for clients cultivating environmentally friendly crops that have longer growing seasons.
One incentive offered to microenterprises to reduce their environmental impact isa discount in interest rates for enterprises with high-impact activities that lower their environmental impacts. Under development is a program that awards a “sello verde” (green seal) to microenterprises that have successfully implemented and complied with their specific environmental policies in their loan contracts.
REFICOM-CDRO coordinates microfinance its environmental responsibility efforts with its agricultural sector. Part of the agricultural component is technical assistance to promote a more sustainable use of the land, and the microfinance sector awards credit after clients complete the requirements within the agricultural programs and sign the loan contract.
“We live in an extensive forested area, and the land is used largely for corn production. Our goal is to promote the use of these natural resources in an environmentally and economically sustainable manner. This is so that farmers move away from just producing corn,” which strips the land of essential nutrients such as nitrogen and often requires a large amount of insecticides and fertilizers.
CDRO is currently developing a line of natural shampoos. They support farmers who cultivate natural products such as chamomile and aloe vera, which are used as ingredients. Later, clients process the shampoo and bring it to the market, all in a way that is not detrimental to the environment.
REFICOM-CDRO also has a program for environmental education and for building environmental consciousness. It allocates a percentage of its budget to reforestation projects, which are implemented by clients and community groups. CDRO works with community groups to teach about the proper planting of trees and their caring for the saplings in the future. Last year, REFICOM-CDRO allocated 5250 quetzales ($650) for reforestation projects, and planted 5,000 trees in different communities. The environmental education component also includes training community members on waste management and provides trash receptacles to participants. Participants are trained on separating trash into organic and inorganic waste and how to compost organic waste. CDRO also has an environmental educational program for children.
Mirna considers it important to emphasize that the environmental policies that REFICOM-CDRO has developed should have an impact; however, the environmental component of its programming requires a long process. “This is because we must start with building a consciousness, then move to environmental education, and finally begin actions that can promote caring for the environment. So it is a long process, despite the fact that we consider that it is of great importance and of utmost urgency. There have been many changes in the climate owing to many things such as environmental contamination, which is in our hands. We are aware of our environmental impact and we created this written policy in order to avoid contributing to activities that may be damaging our environment.”
Within the organization, CDRO has informal policies in order to protect the environment, including energy conservation and recycling programs. They also have norms that reduce the amount of trash created by the institution. For example, staff members are not allowed to use disposable dishes in the office, and are discouraged from printing emails and unnecessary documents. They also use the radio to reach the public, instead of printing large numbers of brochures and posters.
“Our goal is to achieve integral development. Not just the economic and financial development of our clients, but rather an integral development in the aspects of environment, training, and others.”
***
For more information on CDRO, please visit http://www.cdro.org/or review the Social Performance Report at MIX Market: http://www.mixmarket.org/mfi/cdro/files/
Comments