ESG and Active Engagement

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Attractive financial return & meaningful development impact
Our investment approach

Each investment is made to generate an attractive financial return and meaningful development impact.

All funds advised by FMO Investment Management benefit from FMO's proven and pragmatic approach to sustainability. 

Experience has shown that those who incorporate sustainable environmental, social and governance (ESG) practices into their business have enjoyed stronger financial results and long-term viability.

Active engagement

FMO partners with borrowers and investee companies who recognize that integrating sustainability into core business makes sound business sense. ESG standards are implemented in order to increase the company’s value by:

  • Saving costs
  • Increasing productivity
  • Improving risk management
  • Enhancing access to capital and international markets

FMO has approximately 35 staff members dedicated to ESG who are well equipped to provide direct support and can complement services by engaging reputable local and international consultants.

FMO agrees to balanced and realistic action plans for improving ESG performance based on international standards such as the IFC performance standards and OECD MNE guidelines. Measures may include cutting carbon dioxide emissions, improving labor conditions, meeting living wage requirements or implementing policies for governance.