GRI content index
FMO has chosen for the ‘In Accordance’ option ‘Core’. In the following table, reference is made to the general standard disclosures.
Name of the organization
Activities, brands, products, and services
Location of headquarters
Location of operations
Ownership and legal form
Scale of the organization
Information on employees and other workers
Signifcant changes to the organization and its supply chain
Precautionary Principle or approach
Membership of associations
Statement from senior decision-maker
Key impacts, risks, and opportunities
Ethics and integrity
Values, principles, standards, and norms of behavior
Mechanisms for advice and concerns about ethics
Executive-level responsibility for economic, environmental, and social topics
Consulting stakeholders on economic, environmental, and social topics
Composition of the highest governance body and its committees
Chair of the highest governance body
Nominating and selecting the highest governance body
Conﬂicts of interest
Role of highest governance body in setting purpose, values, and strategy
Collective knowledge of highest governance body
Evaluating the highest governance body’s performance
Identifying and managing economic, environmental, and social impacts
Eﬀectiveness of risk management processes
Review of economic, environmental, and social topics
Highest governance body’s role in sustainability reporting
Communicating critical concerns
Nature and total number of critical concerns
Process for determining remuneration
Stakeholders’ involvement in remuneration
Annual total compensation ratio
Percentage increase in annual total compensation ratio
List of stakeholder groups
Collective bargaining agreements
Identifying and selecting stakeholders
Approach to stakeholder engagement
Key topics and concerns raised
Entities included in the consolidated financial statements
Defining report content and topic Boundaries
List of material topics
Restatements of information
Changes in reporting
Date of most recent report
Contact point for questions regarding the report
Claims of reporting in accordance with the GRI Standards
GRI content index
In the following table, reference is made to the specific standard disclosures.
Disclosures management approach (DMA)
Development impact (Indirect economic impacts)
FMO’s strategy towards 2025 is becoming ‘your preferred partner to invest in local prosperity’. We contribute to decent work and economic growth (SDG8), reducing inequalities (SDG10), climate action (SDG13), while continuing our journey to double the number of supported jobs and the expected amount of GHG avoided. FMO has chosen for targets that drive these goals, being the amount of new commitments (including catalyzed funds), transactions reducing inequalities and actively sourced green investments.
We committed EUR 3.1 billion, supported 900,000 jobs and avoided 1,600,000 tons of GHG emissions. 42% of our commitments were green and 41 transactions reduced inequalities. We measured these impacts using our Impact Model and capturing data in Impact Cards.
Financial sustainability and risk appetite of FMO ( Economic performance)
To continuously be able to support our business our AAA credit rating, return on shareholders’ equity and Core Equity Tier-1 ratio are important. These financial targets are defined and managed by performing due diligence on possible investments and managing our Risk Appetite within our Risk Management Framework (see notes to our Annual Accounts).
FMO’s financial and risk management are carefully set up and controls are implemented and functioning continuously (see explanatory notes to the Annual Accounts). This applies to processes, procedures and product systems, and financial systems. The RoE was 9.1% and the CET-1 ratio 24.9%.
Additionality of FMO’s activities (Indirect economic impacts)
As a development bank we seek additionality in financing products and services which the market does not provide, or not on an adequate scale or reasonable terms. We also provide ESG inputs that other parties do not provide by offering value-added services or unique expertise in ESG standard-setting or green or inclusive investments. Deal teams assess additionality on these aspects during due diligence and monitoring and register this on scorecards.
Of the approved investments in 2017 60% was financially additional and 40% both financially and ESG additional (see 2.5.2).
Client satisfaction (Product and Service labeling)
We aim to realize positive impact in terms of economic growth, social progress and environmental sustainability with our clients. We build and maintain relations via sourcing through deep-rooted networks, due diligence screening and advice on improvements, monitoring of progress, support with assistance. We aim to be additional, support ESG actions, provide innovative products, Capacity Development and our knowledge and networks, e.g. in conferences. We support Dutch corporates investing in and trading with emerging markets.
In November 2015 an external independent survey was performed on general satisfaction and specifically on our qualities, added value, loyalty, capacity development, knowledge transfer and our extensive network. This bi-annual survey scored 8.6 out of 10 (2012: 8.3). A new survey is performed in 2018. See paragraph ‘Outlook’.
Transparency of FMO’s activities (Human Rights Grievance Mechanisms/
Our stakeholders demand increased transparency and accountability, especially with regard to environmental and social aspects. We have revised our Sustainability Policy and invested in extended and intensified stakeholder engagement. We disclose all contracted investments and implemented disclosure before contracting for investments with high ESG risk. FMO also has an Independent Complaints Mechanism.
FMO’s Independent Complaint Mechanism received no admissible complaints in 2017.
Enable impact investing (FMO own developed aspect)
Stakeholders ask us to behave as market makers, building investment opportunities with impact and risk profiles that meet their needs. We try to bundle public and private resources in our projects.
We undertake efforts for blending public and private capital, for example in government funds, FIM and through syndications. In 2017 we catalyzed EUR 1,111 million.
Inclusive development (FMO own developed aspect)
Stakeholders indicate the importance of, among other things, supporting economic growth, decent job creation, reducing inequality and climate action. FMO works with clients who are directly serving people at the Bottom of the Pyramid and improving gender equality. We select and screen these clients in our investment process.
Our deal teams register results on impact indicators in the Impact Cards. Results on the supported smallholders, connections to electricity grids and Micro and SME loans are described in paragraph ‘Performance’.
Indirect environmental footprint (Emissions)
Stakeholders indicate the importance of combating climate change. We aim to halve our environmental footprint by doubling the expected amount of GHG avoided via green investments. Green investments are primarily transactions in renewable energy and energy efficiency. We select and screen these transactions in our investment process.
We use our Impact Model to measure GHG emissions avoided in our investments. In 2017 our investments enabled the avoidance of 1,600,000 tons of GHG. For the governance and methodology of our Impact Model see paragraph ‘How we report’.
Innovations and knowledge management at FMO (FMO own developed aspect)
A key input for success is knowledge (technical, financial and otherwise) from our employees, clients, other DFIs or knowledge partners. Knowledge is important intellectual capital and we transfer best-practice knowledge to our clients also: in our Capacity Development program we provide technical assistance to clients.
Part of the added value to our clients is our technical assistance or Capacity Development. In 2107 we supported 73 clients with knowledge on issues important to them.
ESG risk management (Product Portfolio: sector specific)
interactions with clients / investees / business partners regarding environmental and social risks and opportunities (former FS5)
Following international standards and setting ESG requirements for clients will ensure compliance with regulations and contribute to the realization of SDGs. We assess projects on ESG effects benchmarked against IFC Performance Standards during due diligences and monitoring phases. If needed, we agree on action plans and support our clients with technical assistance.
The agreed upon ESG action plans must ensure compliance within set timeframes. 90% of actions due in a certain year must be implemented. When deadlines for action items are postponed, approval from Credit Risk Management (second line of defense) needs to be obtained. In 2017 89% of the ESG actions due were implemented.
Support Dutch companies (FMO own developed aspect)
Value for the Netherlands: FMO has taken steps to play a central role in assisting Dutch companies with investments abroad through its subsidiary NEDLINX B.V. In these activities, FMO will uphold its approach to being additional to the market and preventing competition with commercial financiers.
We have taken concrete steps to support Dutch businesses with willingness to invest in developing countries and emerging markets.