The period covered by this report is the calendar year 2018. The publication date of the previous annual report was March 27, 2018. There have been no significant changes to our legal structure, activities, policies or methods of measurement in the course of 2018 that would require a restatement of information.
The figures and percentages mentioned throughout this integrated report include the figures for FMO and its subsidiaries’ activities as well as those of the FMO-managed government funds, unless explicitly stated. The assets advised on by FMO IM for third parties are not included in this annual report.
Many of our financing and investing activities take place in foreign currencies, mostly in US dollars. Unless explicitly stated in specific cases, all new commitments, catalyzed funds and green investments mentioned throughout the report have been translated into our functional currency, the Euro, based on the foreign exchange rates at the date of contracting. Figures referring to the year-end committed portfolio have been translated into Euros using the year-end foreign exchange rates.
For the closing-of-the-books processes, data was taken from our internal systems. Data pertaining to our portfolio was taken from financial systems. Non-financial elements of our portfolio, specifically data for measuring impact and footprint, are based on data from clients and macroeconomic data sources. Information on human resources comes from our HR systems and is linked to our salary administration systems.
Data quality is important as it forms the basis for management reporting and steering. To safeguard data quality, we have implemented, inter alia, the following procedures: the quality of financial aspects, and also information on the development impact and footprint, are embedded in our core investment process and the results are analyzed by another employee following the closing of the books. Beyond that, as a third line of defense, FMO’s Internal Audit department considers data quality and the underlying processes to be important audit areas.
The case studies included throughout the report offer insight into our activities and are not necessarily representative of our entire portfolio or of new commitments. They do, however, exemplify projects within our regions and strategic sectors, and highlight material activities of FMO and their inherent dilemmas from the perspective of different stakeholders.