Social Performance Management

How does LOLC translate its policy into practices and impact? Find out more in this section where it showcases the effective translation of an institution’s mission into practice that inline with the accepted social values. LOLC implements the integration of Universal Standard of Social Performance Management into its policy, procedure, training, internal control and implementation.

1. How do we translate our mission as of December 2019?

As reflected in the institution’s values, LOLC is committed to provide financial services to people with disadvantages in society which include customers especially female customers who earn around or below the national poverty line. It also includes customers that come from important sectors (39 percent of LOLC customers are agriculture and 14 percent are from services) who are looking for financial opportunity to improve their livelihood.

2. Measuring LOLC’s Social Goals

3. Implementing Universal Standard of social performance Management (USSPM)

Define and Monitor Social Goals:

LOLC has defined social goals and is continuously monitoring the performance of social activities against targets, and this data is reported quarterly to the management team and Board of Directors.

Ensure BOD, Management, and Employee Commitment to Social Goals:

The Board of director and the Management of LOLC are accountable for the mission and social goals of the institution. The staffs know and understand the social goals of the institution. And staff performance appraisals include performance-based social activity indicators.

Design Products, Services, Delivery Models and Channels That Meet Clients’ Needs and Preferences:

Unsecure loan, secure loan, leasing, saving, and convenience repayment (through agents), and multiple choices of currency and repayment options.

Treat Clients Responsibly:

LOLC is a microfinance institution that has received the Certificate of Consumer Protection Practices (CPP) in June 2015. Then, in September 2019, LOLC received a Certificate of Compliance with the Client Protection Principles.

Treat Employees Responsibly:

LOLC provides employees with a right environment, good communication, staff safety considerations, and benefits to staff such as training, year-end bonuses, increase annual salary, health benefits (medication and hospital stays), incentives for CO/RM/DBM/HCO, other compensation, etc. Besides, LOLC routinely surveys employee satisfaction or dissatisfaction and reports to management and board of directors annually. LOLC complies with and complies with all applicable labor laws.

Balance Financial and Social Performance:

LOLC has clearly defined social & financial goals and strategies to achieve them by maintaining the sustainability of the institution and its clients. In addition, LOLC has implemented reliable financial service delivery. And to ensure the performance of staff, LOLC incorporates both social and financial performance indicators into the performance evaluation of all staff.
4. How LOLC implements responsible finance and 7 client protection principles?

Mission Statement:

SOCIAL DRIVEN MISSION

Mission Statement: LOLC (Cambodia) Plc. (LOLC") is a microfinance institution with a social vision and a business orientation that provides entrepreneurs and families at the base of the socio-economic pyramid with the economic opportunities to transform the quality of their lives and their communities through the provision of effective and sustainable client empowering financial services.

SUSTATNABLE FINANCE

FSS: 114.91%

ROE:34.16%

Green Lending: 9.9K clients having US$ 34.5M portfolio recognize as Green Lending.
Environmental and social impact assessment for large loan size.

WASH Loan: 9.6K clients (USS 4.4 M) access to bettet sanitation and clean water

INCLUSIVE FINANCE

PPI: LOLC is a certified user. Outreach: 29.40% of new group loan clients are very poor and poor categories.
Branches: 79 branches in 25 provinces.

Accessible to saving: 336K depositors with a portfolio of US$ 448.5 million.

Outreach to rural clients: 93%, Urban: 7%

REGULATION COMPLIANCE

Good Corporate Governance
Compliance to Prudential Regulation: Credit risk; solvency, liquidity, large exposure.

Compliance to Regulatory Requirements: taxation, disclosure, ethics, risk management etc.

EMPOWER FIANANCIAL LITERACY

Financial Literacy in Class Training: From 2013 to 2019, there are 57,409 participants.

One hour Radio Program weekly

Saving for goal and Banner of Financial Education: 1,235 kids (639 females) involved in "Saving for Goal activity and 75 banners were distributed.
5. How LOLC translates Sustainable Development Goals (SDGs) into implementation (as of December 2019)?

Like other institutions, LOLC relies on the Sustainable Development Goals (SDGs) as the blueprint for growth, successes and performance’s indicators. As one of the biggest microfinance institutions, LOLC (Cambodia) Plc. is committed to eradicate poverty (Goal 1) through its services and products, improve gender equality (Goal 5) via its focuses on women customers, clean water and sanitation (Goal 6) through its outreach program, affordance and clean energy through its credit services and partnership for the goals (Goal 17).

Relevant Social Goals	Annual Measurable KPIs	Annual Target	2017	2018	2019
Increased Access to Financial Services	Number of Borrowers in Aural Areas	>= 85%	94%	93%	92%
Number of Borrowers Involved in Agriculture	>= 40%	55%	46%	34%
Percentage of Female Borrower	>= 67%	78%	72%	70%
Poverty Outreach	Percentage of New Group Loan Borrowers Below 150% National Poverty Line	>= 20%	33%	29.62%	29.40%
Environmental Sustainability	Result of Environmental Assessment in Monitoring	Monitoring	Medium Monitoring	Medium Monitoring	Medium Monitoring

6. Environmental and social Assessment

7. Measuring Poverty Outreach through PPI

Poverty Probability Index (PPI) is an indicator to measure LOLC Cambodia outreach to the disadvantages customers, to determine the transformation of the quality of client’s livelihood, and to ensure that appropriate products are extended to the right clients. Using PPI, LOLC can choose its categories of the client as below:
8. Other Social Activities

1. Financial Literacy Awareness Training

From January to December 2019, 532 beneficiaries of One Village One Product (OVOP) from 8 provinces (Kampong Cham, Prey Veng, Siem Reap, Kampong Thom, Pursat, Kampong Chhang, Kampot and Takeo Province) and 294 university students of Preah Sihamoniraja Buddhist University received training on Financial Management which supported by LOLC.

2. Anti-Drung Leaflet

Recently, LOLC (Cambodia) Plc. has supported the publication of 100,000 Anti-drug brochures. In the pictures below, LOLC showed its commitment by delivering the brochures to Mr. Lim Tong Hout, Director of the Department of Legislation Education and Rehabilitation of the General Secretariat of the National Authority for Combating Drugs. LOLC believes the leaflet will contribute to drug trafficking prevention and drug use.

3. Donations to Customes and People Affected by Flood

LOLC has a vision of helping people live in dignity, safety, social, economic stability and justice. This year, LOLC branch staffs visited and donated rice, fish sauce, noodle and other foods to them.

ENVIRONMENT AND SOCIAL ASSESSMENT	# OF LOAN	REMARKS
Low	136	- Client's risk management quality is high - Client risk level is low Therefore, no action taken is required
Medium	140	- Client's risk management quality is high - Client risk level is low Therefore, no action taken is required
Total	276

LOLC (Cambodia) Plc. has been serving Cambodian public and society for over 26 years, and has been recognized by both local and international financial authorities. Our products and services are committed to improving the livelihood of Cambodian customers.

#666B, Street 271, Kbal Tumnub Muoy Village, Sangkat Boeng Tumpun 2, Khan Mean Chey, Phnom Penh, Cambodia.

023 991 991

[email protected]

Reports

Social Performance Management

Define and Monitor Social Goals:

Ensure BOD, Management, and Employee Commitment to Social Goals:

Design Products, Services, Delivery Models and Channels That Meet Clients’ Needs and Preferences:

Treat Clients Responsibly:

Treat Employees Responsibly:

Balance Financial and Social Performance:

Mission Statement:

SOCIAL DRIVEN MISSION

SUSTATNABLE FINANCE

INCLUSIVE FINANCE

REGULATION COMPLIANCE

EMPOWER FIANANCIAL LITERACY

1. Financial Literacy Awareness Training

2. Anti-Drung Leaflet

3. Donations to Customes and People Affected by Flood

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