FMO

In terms of senior leadership accountability, the responsibility for sustainability issues within FMO lies with the supervisory board’s impact committee. In addition to a commitment to gender equality and women’s empowerment, FMO has a gender-balanced board of directors where two out of five members are women. FMO has a sustainability policy where it describes its environmental, social and governance (ESG) monitoring and engagement approach with clients, including escalation criteria and the summary of its clients’ ESG engagement. Furthermore, it discloses cases of successful engagement with clients on governance structure requirements. In addition, FMO discloses identified its material topics through a materiality assessment which included feedback from external stakeholders.

As a member of the European Development Finance Institutions (EDFI) Group, FMO has set net-zero financed emissions by 2050. It discloses its absolute financed emissions resulting from its higher impact portfolio.The DFI discloses the aggregate amount of its green-labeled investment, specifying also that its green criteria are in line with internationally adopted frameworks. In addition to its commitment to minimising its negative impacts on nature and biodiversity, FMO includes biodiversity conservation and the sustainable management of living natural resources as one of its engagement topics with clients.

FMO has a publicly available policy statement committing it to respect human rights and the ILO core labour rights as well as to prohibit bribery and corruption. Furthermore, FMO describes its human rights due diligence for its financing activities, including site visits and stakeholder engagement. Additionally, its disclosure on human rights encompasses the categories of stakeholders whose human rights have been or may be affected by its activities. FMO provides transparency on financial inclusivity as it discloses the amount of finance directed towards vulnerable groups, small- and medium-sized enterprises and low-income developing countries.

In terms of its approach to senior leadership accountability, FMO could link the remuneration of its executive or management teams to sustainability performance criteria. In terms of gender equality, the DFI has an opportunity to reach at least 40% female representation in senior leadership positions.

FMO has an opportunity to set an interim absolute emission reduction target across its financing activities. Furthermore, the DFI could provide further details on how it engages with clients on their path to net zero emissions and disclose whether it collectively engages with its clients on the topic of alignment with the Paris Agreement. Although FMO has a target for green-labeled investments, it has an opportunity to set transparent and future-oriented targets for its climate solutions. In addition, FMO discloses a strategy for phasing out fossil fuels in its direct investments. However, it could publish a phase-out strategy that covers all its financing activities.

FMO discloses the ages of its management board members and supervisory board but has an opportunity to disclose the same information for each employee category. In addition, there is no evidence that the DFI has a publicly available policy statement committing it to respect the health and safety of workers.