Strategic risks

Macroeconomic factors and FMO's unique environment significantly affect realization of our objectives. After deteriorating economic circumstances in previous years, 2011 started as second year of recovery after the global economic crisis, but in the course of the year the economic outlook has been growing more uncertain again.

Despite serious worsening of the debt crisis in the eurozone the developing economies still continued to grow. We were able to achieve most of our targets and key objectives of the strategy, like development impact, low-income countries, new commitments and profitability. We also met our strategic goal to mobilize funds for our markets, especially by acting more as joint or sole mandated lead arranger.

In 2011 FMO strengthened its leadership position in sustainability. Recognizing that the primary responsibility for sustainable development and management of ESG risks rests with our clients, a key focus last year was on initiatives that allow us to better support them in implementing best practices. The risk of not succeeding would affect the realization of FMO's strategy.

The IFC Performance Standards form the basis for FMO's ESG risk management approach.  FMO's approach comprises of three parts: (1) Risk Categorization of clients, (2) Establishing applicable requirements, and if necessary (3) Environmental and Social Action Plans. Implementation of best practices by clients is achieved by using the action plans that are agreed upon with our clients, and are monitored over time

As follow-up on the revision of our Sustainability Policy in 2010 and its integration into our investment criteria, our processes and procedures were further updated in 2011. The continued development of corporate governance tools,  ESG training programs and tools as well as our Anti Bribery & Corruption Statement continue to ensure we achieve implementation of our sustainability strategy.

In 2011, FMO continued to work with an organization-wide ESG target where our aim was to implement 80% of action items due during the reporting year. We successfully met this target in 2011. To further support efforts to meet our ESG targets, we remain focused in the push towards smarter and more effective ESG management and reporting at FMO.

Macroeconomic factors and FMO's unique environment significantly affect realization of our objectives. After deteriorating economic circumstances in previous years, 2011 started as second year of recovery after the global economic crisis, but in the course of the year the economic outlook has been growing more uncertain again.

Despite serious worsening of the debt crisis in the eurozone the developing economies still continued to grow. We were able to achieve most of our targets and key objectives of the strategy, like development impact, low-income countries, new commitments and profitability. We also met our strategic goal to mobilize funds for our markets, especially by acting more as joint or sole mandated lead arranger.

In 2011 FMO strengthened its leadership position in sustainability. Recognizing that the primary responsibility for sustainable development and management of ESG risks rests with our clients, a key focus last year was on initiatives that allow us to better support them in implementing best practices. The risk of not succeeding would affect the realization of FMO's strategy.

The IFC Performance Standards form the basis for FMO's ESG risk management approach.  FMO's approach comprises of three parts: (1) Risk Categorization of clients, (2) Establishing applicable requirements, and if necessary (3) Environmental and Social Action Plans. Implementation of best practices by clients is achieved by using the action plans that are agreed upon with our clients, and are monitored over time

As follow-up on the revision of our Sustainability Policy in 2010 and its integration into our investment criteria, our processes and procedures were further updated in 2011. The continued development of corporate governance tools, ESG training programs and tools as well as our Anti Bribery & Corruption Statement continue to ensure we achieve implementation of our sustainability strategy.

In 2011, FMO continued to work with an organization-wide ESG target where our aim was to implement 80% of action items due during the reporting year. We successfully met this target in 2011. To further support efforts to meet our ESG targets, we remain focused in the push towards smarter and more effective ESG management and reporting at FMO.