Addressing global issues
The United Nations Sustainable Development Goals (SDGs) and the Paris Climate Agreement have set joint public and corporate agendas aimed at ending extreme poverty, reducing inequality and tackling climate change. They recognize that people living in poverty tend to suffer most from climate change, so these challenges will need to be addressed in tandem. Development banks can make significant contributions to the SDGs and have a role in limiting temperature increases below 1.5 - 2.0 degrees Celsius.
By design, we address global issues every day. Our public and private stakeholders share our commitment to the SDGs and the Paris Climate Accord. They challenge us on how we, as a development bank, can set ambitious targets to address global issues and be transparent about outcomes achieved. We set targets to generate impact and with the help of our partners and expert recommendations, such as those from the Task Force on Climate-related Financial Disclosures and the EU High-level Group on Sustainable Finance, we refine ways to share progress.
Risks, opportunities and dilemmas
FMO has updated its strategy for the period up to 2025, in which we partner with others to invest in local prosperity focusing on projects that contribute to SDG 8 (Decent Work and Economic Growth), SDG 10 (Reduced Inequalities) and SDG 13 (Climate Action). We will deepen our focus on energy, financial institutions, and the agribusiness, food & water sectors because we believe this is where we can add more value. It did present us with the dilemma of whether to proceed in sectors such as manufacturing, ports and telecoms. To dedicate more resources to our focus sectors, we have decided to discontinue our debt offering in non-focus areas.