This paper analyses the environmental performance of 58 European MFIs. It is a statistical and econometric analysis of data collected with support of EMN and it includes theoretical discussion and comparisons with manufactures industry and standard European financial institutions.

The results suggest that the size of the MFI, investor concern for environmental performance and, to a lesser extent, donor interest, are closely related to the institution’s environmental performance. Providing loans larger than microcredits is linked to better environmental performance. This could suggest that the additional revenues generated from these loans, also called cross-subsidies, could help MFIs to strengthen their environmental bottom line. There is no evidence suggesting that profit status explains environmental performance.