Stakeholder dialogue

We see stakeholder engagement as a two-way dialogue. On the one hand we reach out to stakeholders to create partnerships, invest together, harmonize our approaches, and seek insights to inform our policies. For instance, in 2021 we published our Position Statement on Fossil Fuels in Direct Investments. This was informed through a consultation process with our stakeholder community, including the Dutch government, several NGOs and financial institutions. In November, we organized a virtual multi-stakeholder forum to gather input for the update to the 2030 strategy. We also cooperated with stakeholders such as the Dutch Fund for Climate and Development to drive impact.

On the other hand, we are also open to receive input from our stakeholders who bring critical perspectives. They alert us to different viewpoints, provide us with critical feedback and challenge us to be more transparent and accountable as an organization. Our dialogue holds up an important mirror so we remain self-reflective and strengthen our processes.

Our engagement per stakeholder group

The table below summarizes the topics our stakeholders find most important in our interactions with us. Overall, we note that most stakeholders engage with us because of the impact we want to achieve through our investments.

Stakeholder Group	Material topics	How we engaged in 2021
Employees. All internal and external staff, incl. directors & Management Board.	Being an inclusive organization	Due to the government-imposed COVID-19 restrictions, staff were working from home for most of the year. In the future, hybrid working will become the norm. In 2021, greater focus was placed on employee well-being and diversity and inclusion. A well-being working group was formed in 2021 to raise awareness and share tools, activities and ideas on how to improve in this area. We also formed a Diversity and Inclusion Advisory Board to focus more in this area. Management checked in with staff through different means. First, direct reports met through bilateral and team meetings. Second, an annual employee engagement survey and pulse surveys were sent out, incl. on specific topics such as hybrid way of working and KYC, to gauge the overall sentiment. Third, the management board stayed connected with staff through quarterly all-staff meetings, open lunches and wrap-up emails at the end of each week. Finally, management met with the works council on multiple occasions to discuss key matters, incl. the new pension plan.
	Being a high-performing DFI
	Ensure employee engagement, health and well-being
Customers, incl. corporates, financial institutions, private equity fund managers, and agribusiness and energy project developers.	Impact focus topics & ESG	Ongoing travel restrictions meant we connected with our customers mainly through virtual means. In addition to business and deal-related meetings, we organized topical events and conferences and brought together customers through communities of practice. In 2021, we continued working with existing customers to identify opportunities to increase impact. Furthermore, we invited customers to connect with FMO staff during our all-staff meetings. In 2021, we carried out our annual customer satisfaction survey to gain insights on what customers think of our products and services.
	Cooperation & harmonization with other DFIs
	Mobilizing public & private capital
	Being a responsible, transparent & accountable bank
NGOs & local communities. We engage with Dutch and international NGOs that represent environmental and human rights advocates, knowledge centers and banking whistle blowers, as well as local organizations, and communities.	Promoting environmental, social and governance	We held quarterly dialogue and issue-based meetings with NGOs. NGOs have raised questions on A/B loan structures and demanded more clarity and transparency on investments in financial institutions. In addition, they proposed greater engagement with local communities and stakeholders, which currently takes place through our customers, during our investment process. We are exploring, together with the Dutch government options for interacting more directly with local stakeholders. Furthermore, we also started a consultation with NGOs on a draft Position Statement on ESG standards for financial institutions.
	Being a responsible, transparent & accountable bank
	Supporting customers to safeguard human rights
Government. The Dutch government holds a 51% stake in FMO. The Dutch Minister of Finance and the Minister for Foreign Trade and Development Cooperation (part of the Ministry of Foreign Affairs) are politically responsible for FMO.	Being an inclusive organization	The management board, the Ministry of Finance and Ministry of Foreign Affairs met quarterly to discuss topics such as strategic policies and FMO’s performance against targets. Other notable topics discussed in 2021 included: • FMO’s alignment with the latest FEC requirements; • Finalization of the new Criteria Memorandum, which stipulates the criteria used for investment decisions, country & sector focus, ESG and additionality. The Memorandum was adopted at the Strategic Policy Meeting of 1 July, 2021; • Discussion of the results and FMO’s response to the FMO-A evaluation; • Contributing answers to the questions raised by the parliamentary Committee on Foreign Trade and Development Cooperation subsequent to the FMO-A evaluation; • Exploring opportunities to invest more in fragile states; • How to strengthen networks of local stakeholders, e.g. in cooperation with embassies; • FMO’s ESG risk appetite; • The update to FMO’s 2030 strategy.
	Being a responsible, transparent & accountable bank
	Maintaining financial sustainability & risk appetite
	Ensure employee engagement, health and well-being
	Impact & ESG topics
	Cooperation & harmonization with other DFIs
	Mobilizing public & private capital
Commercial stakeholders, incl. bond investors, institutional and private investors, as well commercial shareholders who own 49% of FMO's shares.	Impact topics	In our efforts to mobilize private capital towards the SDGs, we partner with commercial stakeholders. We engage with our minority shareholders mainly through the Annual General Meeting. Important topics discussed incl. FMO’s financial and risk management, development impact and accountability of our activities. In 2021, our interactions with commercial stakeholders had to take place mostly virtual.
	Mobilizing public & private capital
	Being a responsible, transparent & accountable bank
	Maintaining financial sustainability & risk appetite
	Investing in innovation
Knowledge Community, incl. universities, think tanks and independent consultants who conduct development impact evaluations.	Impact & ESG topics	We organized scheduled meetings with our knowledge community to seek feedback on evaluations and defining lessons learned but also to get input on new position statements.
	Measuring impact & learning from evaluations
DFIs, international financial institutions and multilateral banks, with whom we co-invest, harmonize our approaches and share knowledge.	Cooperation & harmonization with other DFIs	We organized topical knowledge-sharing meetings and participated in EDFI and MDB working groups on topics such as blended finance principles, mobilization, and climate change & emission accounting (PCAF).
	Mobilizing public & private capital
	Being a responsible, transparent & accountable bank
	Combating climate change and its impacts
Public investment partners, incl. the Dutch government, the European Commission, the Green Climate Fund, and the UK government.	Impact & ESG topics	As an accredited entity, FMO receives funds from the EC and the GCF. In 2021, the UK government and FMO established Mobilising Finance for Forests (MFF) as a blended finance investment program to increase private sector investment that will combat deforestation and other environmentally unsustainable land use practices.
	Measuring impact & learning from evaluations
Supervisor and regulator.		The DNB supervises FMO to ensure we comply with banking regulations and manage risks in line with our risk appetite. The main topic in 2021 was FMO’s efforts ensure full compliance with the Wwft and Sanctions Law by the end of 2021.