Each investment is made to generate an attractive financial return and meaningful development impact.
FMO's investment policies and processes are rooted in years of experience in making sustainable investments. FMO seeks adherence to global standards and engage with other market actors to further finetune and evolve its approach.
FMO Investment Management's investment processes follow FMO's policies and procedures adding only additional steps to the existing process for decision making at fund level.
Environmental, Social & Corporate Governance (ESG) Policy
In 2016, FMO launched the FMO Sustainability Policy Universe. This universe brings together multiple sets of documents and tools that together form the framework that guides FMOs efforts in relation to Environmental, Social and Governance (ESG) issues. FMO has realized a comprehensive and holistic approach to contributing to sustainable development, aligned with the Global Goals for Sustainable Development and in compliance with the many international norms and standards that are aimed to shape corporate responsible behavior.
The FMO Sustainability Policy Universe encompasses:
1) The FMO Sustainability Policy
2) FMO Position Statements
3) Investment Criteria
4) Exclusion List
5) Goal and Target Setting, including key-performance indicators
6) Tracking of Environmental, Social and Governance risk mitigation in the FMO portfolio
7) Ex-ante and Portfolio Disclosure
8) Accountability and learning
9) Stakeholder engagement
10) Integrated Reporting
11) Complaints Mechanism
12) FMO Sustainability Management System
13) Dedicated teams
With all these elements FMO has realized a holistic and integrated approach to managing Sustainability in its
operations, putting FMO well on track to achieve its mission, vision and ambition.
In 2006, FMO adopted the Equator Principles. FMO has been applying the Safeguard Policies / IFC Performance Standards since the year 2000. Additionally, FMO has chosen to apply the IFC Performance Standards to all financing, not only our project finance transactions but corporate finance as well. Hence FMO goes further than the Equator Principles’ requirements. FMO currently uses the 2012 IFC Performance Standards and third generation Equator Principles.
Sustainability Policy Universe
For a complete overview go to:
FMO Policies and position statements
FMO believes that transparency on financing and investments is fundamental to fulfilling its development mandate. Therefore, FMO has adopted a disclosure policy outlining the scope and type of information that it makes available to the public. This policy does not provide any contractual or other rights to any party.
FMO's disclosure policy applies to all financing and investments committed to from January 1, 2013 and onwards. Next to the disclosure of the annual reports, press releases and corporate and policy related disclosure, FMO will disclose information about its investments and financing. In its implementation of the policy, FMO may be dependent upon cooperation by third parties.
All investments allocated to funds advised on by FMO Investment Management will be subject to FMO’s disclosure policy.