Potential risks and opportunities
FMO has identified several potential risks and opportunities linked to its value creation model, in the context of external developments, as follows:
How to achieve a growing impact agenda, while facing external pressures during uncertain times.
Explore different ways of sourcing transactions. Focus on new and innovative solutions in energy transition, forestry and fintech and grow mobilized finance to accelerate inclusion and climate action.
How to deal with a growing offer of DFI/blended finance in markets while availability of (bankable) projects are limited.
Invest in blended finance capabilities, increase efforts to attract high risk blending capital and invest in nascent markets and innovation.
How to deal with increased regulatory requirements & supervisory scrutiny that puts pressure on organizational capacity and capital allocation.
Enhance risk management (incl. ESG and climate). Invest in improving internal processes and productivity, automating and integrating reporting where possible.
How to deal with increasing stakeholder expectations to apply home country ambitions and ‘one size fits all’ regulations to host countries despite differences in local legislation, regulations and political context.
Increase transparency on FMO’s investment decisions and continue to strengthen ESG risk management and impact measurement.
How to achieve harmonization and collaboration among industry peers with different interests.
Focus harmonization efforts on FMO’s core SDGs, including further development of the joint impact model and contributing to harmonization of climate reporting.