ESG action plans
ESG action plans have been a part of FMO's financing process for
many years. Over the past few years we have made these plans SMART, which means we now aim to
help improve our clients' ESG performance in a more concrete and
practical way. For each action plan, we identify the most relevant
ESG criteria, assess which criteria have been met and list the
measures that need to be taken to meet those still outstanding. The
ultimate goal of these measures is to mitigate a client's ESG risks
and if possible capitalize on ESG opportunities. We agree on
changes with the client, which may include reducing CO2
emissions, obtaining an independent certification, improving labor
conditions, or meeting legal minimum wage requirements.
We oversee action plan implementation through our proprietary
Sustrack monitoring system, used for the first full year in 2011
following its 2010 introduction. Sustrack allows us to monitor the
ESG performance of clients on a continuous basis, enabling swift
intervention when necessary.
We help clients to meet ESG requirements where possible and
enter into dialogue with clients who fail to implement measures
agreed upon in their ESG action plan. The ESG standards FMO applies
are those of the International Finance Corporation. (For more on
the IFC Performance Standards, see www.ifc.org). We also adhere to or
are an active subscriber to and/or participant in:
In 2011, we again demonstrated our commitment to ESG by
achieving 80% of our 128 action items. Since 2010, FMO has set a
company-wide target to realize at least 80% of the overall action
items due each year. It is our aim for 2012 to realize at least 85%
of all the agreed action items due in 2012. Our directors and
managers are responsible for meeting the targets, making FMO one of
the first banks to add ESG targets to its financial targets.