SDGs

In support of the SDGs

Guiding principles on SDG reporting at fund portfolio level

FMO’s sustainable investments in businesses and projects in emerging and frontier markets in aggregate touch on virtually all Sustainable Development Goals (SDGs). Some more directly then others, but ultimately everything FMO does has some effect on the targets set out by the SDGs.

No SDG stands by itself

Understanding also the trade-offs as well as synergistic relations between the different SDGs is crucial for achieving long-lasting sustainable development outcomes. For example, eradicating poverty (SDG1) cannot be achieved without ensuring food security (SDG2) for all. Increasing agricultural production requires complementary measures that benefit e.g. the income of the poor and vulnerable communities in rural areas and reduce their exposure to adverse environmental shocks also addressed by other SDGs.

Reporting for fund portfolio’s

When it comes to reporting for various fund portfolio’s we have chosen to only show those SDGs where a direct positive link was found between a fund investment and specific targets and/or indicators set out in the SDGs. Since mid 2020 we built these graphs based on the value at the time of reporting and shown as a percentage of the portfolio. All investments are scrceened and labelled based on below overview. Since 2020 FMO regards all investments as postive contributions to SDG 8 as this represent the core of FMO: sustainable growth and decent work for all. This is not yet represented in below overview. As the fund itself is a partnership contributing to the SDGs, SDG 17 Partnerships for the goals always applies.

More information is available via these links:

• How FMO measures its impact.

• The UN website on SDGs

• DNB Sustainable Finance Platform
– working group on SDG Impact Indicators

FMO SDG targets

The United Nations Sustainable Development Goals (SDGs) and the Paris Climate Agreement have set joint public and corporate agendas aimed at ending extreme poverty, reducing inequality and tackling climate change. They recognize that people living in poverty tend to suffer most from climate change, so these challenges will need to be addressed in tandem. Development banks can make significant contributions to the SDGs and have a role in limiting temperature increases below 1.5 - 2.0 degrees Celsius.

FMO's role

By design, FMO addresses global issues every day. Public and private stakeholders share FMOs commitment to the SDGs and the Paris Climate Accord. They challenge FMO on how a development bank can set ambitious targets to address global issues and be transparent about outcomes achieved. FMO has set targets to generate impact and with the help of its partners and expert recommendations, such as those from the Task Force on Climate-related Financial Disclosures and the EU High-level Group on Sustainable Finance, FMO refines ways to share progress.

Risks, opportunities and dilemmas

FMO updated its strategy in 2017 for the period up to 2025, in which FMO partners with others to invest in local prosperity focusing on projects that contribute to SDG 8 (Decent Work and Economic Growth), SDG 10 (Reduced Inequalities) and SDG 13 (Climate Action).