FMO

FMO assigns decision-making and oversight for its sustainability strategy to the highest governance body and has a stewardship policy that supports environmental transitions and social best practices, covering client engagement, advocacy, and partnerships, with criteria for successful outcomes and escalation routes. It monitors its emissions from financing activities and has interim targets set for 2025 and 2030 aligned with a 1.5C trajectory. Moreover, FMO has a strategy for supporting climate adaptation and resilience. It discloses the monetary share of its offerings linked to priority sectors with significant negative impacts on nature.

FMO has a publicly available policy statement committing to respect ILO core labour rights and expects suppliers to do the same. It discloses the results of its human rights risk assessments and maintains a gender balance of 40-60% at the senior executive level. Furthermore, it discloses the monetary share of products, services, and capital provided to women-owned businesses, usually excluded groups, and small- and medium-sized enterprises.

FMO identifies material sustainability impacts across its value chain but could provide more detail on the objective criteria and evidence used for prioritisation. FMO states it does not provide products or capital to certain fossil fuel projects but does not address all fossil fuels and, although FMO has a transition strategy for phasing out fossil fuels in direct investments, it lacks evidence for all financing activities. The institution discloses the amount of green-labelled portfolio, which includes nature solutions, but specifics on nature solutions are not provided. Scope 1-2 emissions are disclosed, but scope 2 emissions could be detailed further. Recommendations include monitoring scope 3 emissions by category and providing a comprehensive breakdown of carbon footprint methodology. It is suggested to disclose client breakdown by income group and processes to avoid unintended divestment from low-income countries. The risk assessment process should include ILO fundamental rights, and there should be a process for identifying social risks related to the net zero transition. An example of actions taken on salient human rights issues in the last three years is also recommended.

This scorecard refers to information in English which was publicly available by July 15 2024. AuM and Total assets are stated in USD for comparability and have been calculated based on reported local currency values multiplied by applicable IMF currency converter values.