Other reporting definitions

We have aligned our indicator definitions with internationally harmonized definitions if these are available. Below we have included the definitions of the reported impact indicators.

Smallholders supported

The number of smallholder farmers that have had active support from the client company in order to improve production practices that have beneficial effects on yields and/or reduce environmental degradation and/or improve social practices during the reporting period. Smallholder farmers are defined as marginal and sub-marginal farm households that own and/or cultivate relatively small plots of land. Common characteristics of smallholder farmers are that they have low access to technology, limited resources in terms of capital, skills and risk management, depend on family labor for most activities, and have limited capacity in terms of storage, marketing and processing. This definition has been sourced from the UN Food and Agriculture Organization (FAO). The source document is usually a social report or management report from our customer.

Number of micro loans financed

Micro enterprise loans with an original value up to USD 10,000, as reported by our financial institution customers.

Number of SME loans financed

SME loans with original value between USD 10,000 and USD 1,000,000, as reported by our financial institution customers.

Equivalent number of people served via power generation

The number of people served via power generation projects is estimated by dividing the annual amount of electric energy delivered to off takers during the reporting period by the power consumption per connected capita. The power consumption per connected capita is calculated as the electric power consumption per capita divided by the electrification rate (source: World Bank / IEA data).

Measurement of ESG risk management

We assess projects on ESG effects benchmarked against IFC Performance Standards during the due diligence and monitoring phases. If needed, we agree on actions 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 2017 had to be implemented. When deadlines for action items were postponed in 2017, approval from the Credit department (as independent second line of defense) needed to be obtained. Proposals for postponements had to be performed as Large Change Requests and changes in client contracts were mandatory.

Green investments

Investments are labelled “Green” following an internal approval process. Green investment criteria relate to the following three categories:

  • Climate Change Mitigation: Activities that contribute to either reducing GHG emissions into the atmosphere, or sequestering GHG emissions from the atmosphere.

  • Climate Change Adaptation: Activities intended to reduce the vulnerability of human or natural systems to the impacts of climate change and climate-related risks, by maintaining or increasing adaptive capacity and resilience.

  • Other Footprint Reduction: Activities that do not directly target climate change mitigation or adaptation yet have a positive impact on the environment including water, waste and biodiversity.

FMOs green eligibility criteria are aligned with the Common Principles for Climate Mitigation Finance, the Common Principles for Climate Adaptation Finance and the International Development Finance Club (IDFC) “Other Environmental Activities” with regard to water supply, waste water treatment, industrial pollution control, soil remediation and mine rehabilitation, waste management, biodiversity and sustainable infrastructure.

Catalyzed funds

Catalyzed funds are amounts committed by third parties that are demonstrably mobilized by FMO; for example syndicated loans where FMO is mandated arranger and parallel loans where FMO is formally in the lead.

2017 results include EUR 276 million third party funds from the first close of Climate Investor One, in addition to the FMO commitment of EUR 42 million and Access to Energy Fund commitment of EUR 50 million.