Priorities in 2024

In 2024, FMO will continue to focus on the following three priorities: growing impactful business, improving our capabilities, and ensuring FMO’s foundation is solid. We expect to leverage the momentum gained in 2023 to realize our targets.

We need to make long-term investments so we can continue to fulfill our purpose. We will continue to invest in our people, systems and processes to respond to the increasing complexity resulting from regulatory and supervisory requirements, stakeholder expectations and evolving impact management standards. In the short-term this will lead to a further increase of our cost-to-income ratio and, as such, result in a lower return on equity. Other factors that may affect our 2024 financial performance include the uncertain economic developments affecting the fair value of our private equity portfolio and the projected weakening of the US dollar in the year ahead. During the year, we will closely monitor our financial performance and make budgetary adjustments where needed.

Growing impactful business 

To achieve our 2030 ambitions, we have set the following portfolio targets for 2024:

Compared to 2023, we will increase our total new investments towards reduced inequalities (SDG 10) and climate action (SDG 13) by leveraging as much as possible FMO’s own capital and the funds made available by public entities ('public funds') and third-parties ('direct mobilized funds'). By investing €1.3 billion in RI-labelled total new investments and €1.5 billion in Green-labelled total new investments, we have projected that this should bring us to an RI-labelled total committed portfolio of €5.0 billion and a Green-labelled total committed portfolio of €5.4 billion by the end of 2024.

Overall, we aim to achieve a total committed portfolio of €14.4 billion by the end of 2024. In addition to our portfolio commitments, we will continue to focus on climate action initiatives and develop bankable opportunities by executing market creation projects.

Improving our capabilities 

To help us grow our impactful business, we will focus on improving FMO’s organizational capabilities, especially in the area of efficiency, people and required skillsets and impact management.

We will achieve efficiency gains by optimizing and digitizing selected investment and key support processes. In addition, we will drive continuous efficiency improvements through bottom-up initiatives by teams across FMO.

We will develop our people and the skills they need by increasing employee engagement, strengthening leadership capabilities, and implementing a cultural and behavioral change management program. We will also focus on leadership development programs, employee value proposition and fit-for-purpose technology.

Embedding impact management and monitoring will involve refining our impact governance and impact management framework, integrating external requirements, strengthening impact management and improving data collection.

Ensuring FMO's foundation is solid

Ensuring we continue to have a solid foundation remains a priority, as this is a prerequisite for our license to operate. In 2024, we will maintain and strengthen this foundation by demonstrating strong risk awareness to sustain development impact and strengthen a risk culture focused on risk-based policies, quality outcomes and efficiency. In addition, we will realize sustainable financial performance by balancing regular income and expenses. Furthermore, we will ensure regulatory compliance in all processes, by adapting to regulatory changes and further enhancing risk processes.