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Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden N.V. (FMO)

PRI reporting framework 2020

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You are in Direct - Fixed Income » ESG incorporation in actively managed fixed income

アクティブ運用している債券におけるESGの組み入れ

実施プロセス

FI 01. Incorporation strategies applied

以下を記載してください。 (1)組織でアクティブ運用する債券投資について、どのESG組み入れ戦略や組み合わせを使用しているか(2)各戦略が適用されるアクティブ運用債券投資合計の割合(+/- 5%)
社債(金融)
0 スクリーニングのみ
0 テーマのみ
0 統合のみ
0 スクリーニング + 統合戦略
0 テーマ + 統合戦略
0 スクリーニング + テーマ戦略
100 3つの戦略すべての組み合わせ
0 組み入れ戦略を適用していない
100%
社債(非金融)
0 スクリーニングのみ
0 テーマのみ
0 統合のみ
0 スクリーニング + 統合戦略
0 テーマ + 統合戦略
0 スクリーニング + テーマ戦略
100 3つの戦略すべての組み合わせ
0 組み入れ戦略を適用していない
100%
証券化商品
0 スクリーニングのみ
0 テーマのみ
0 統合のみ
0 スクリーニング + 統合戦略
0 テーマ + 統合戦略
0 スクリーニング + テーマ戦略
100 3つの戦略すべての組み合わせ
0 組み入れ戦略を適用していない
100%

01.2. 特定のESG組み入れ戦略を選択している理由と、使用する戦略の組み合わせを説明してください。

FMO believes that incorporating ESG opportunities into business models is essential for both mitigating risk and creating development impact. FMO works closely with the clients to assess their ESG risks, identify where ESG improvements can be made and agree on action plans for addressing improvements. FMO has elected to employ the best practice frameworks in guiding sustainability implementation in its clients' businesses. FMO's ESG process complies with internationally accepted banking, finance and sustainability criteria such as the IFC performance standards and OECD MNE guidelines. FMO continues to look for new ways to define and incorporate innovative ESG practices as well as takes part in developing and defining these standards by working together with organizations such as IFC and UNEPFI.

In 2017, FMO launched its updated and improved Sustainability Policy, which has become the leading policy document that shapes and guides FMO’s efforts towards supporting global sustainable development in an integrated manner.

01.3. 補足情報 [任意]


FI 02. ESG issues and issuer research (Private)


FI 03. Processes to ensure analysis is robust

03.1. 組織のESG調査プロセスの堅牢性を確保する方法を記載してください。

具体的に記載してください

          FMO's internal ESG specialist conduct annual monitoring of the clients' ESG Action Plans.
        

03.2. ESG情報または分析を投資チーム内で共有する方法を記載してください。

03.3. 補足情報 [任意]


A) 実施:スクリーニング

FI 04. Types of screening applied

04.1. 実施するスクリーニングの種類を記載してください。

当てはまる項目を全てを選択してください
社債(金融)
社債(非金融)
証券化商品
ネガティブ/ 排他的スクリーニング
ポジティブ/業界最高のスクリーニング
基準に基づくスクリーニング

04.2. 組織内でアクティブ運用している債券に適用するスクリーニングのアプローチを記載してください。

Initial screening: - ESG Rapid Risk Screening templates or FMO ESG Toolkit - E&S officer or analyst provides advice and support to FMO Investment Officers - FMO's credit department/Investment Committee has dedicated ESG capacity (4 eye principle) providing objective feedback on the ESG analysis attached to the investment proposals (Financial Proposal stage) being made by FMO's front office. This is a formal part of FMO's investment policy.

Due Diligence: - On high and medium/high risk investment the E&S officer conducts an E&S due diligence (in some cases with support from an external ESG consultant) on the fund manager or the company. E&S officers provides advice and support to FMO Investment Managers - FMO's credit department/Investment Committee has dedicated ESG capacity providing objective feedback on the ESG analysis in the investment proposals being made by FMO's front office. This is a formal part of FMO's investment policy.

Investment decision: - Internal credit department can turn down investment proposal for reasons of ESG issues in the project - Investment Committee approval often contains strict ESG conditions.

04.3. 補足情報 [任意]


FI 05. Examples of ESG factors in screening process (Private)


FI 06. Screening - ensuring criteria are met

06.1. 債券投資においてファンドスクリーニングの基準に違反がないことを確認するために組織が使用しているシステムを記載してください。

スクリーニングの種類
ネガティブ/排他的スクリーニング​

その他

          FMO has controls through the investment process that ensure compliance with our exclusion list.
        
ポジティブ/業界最高のスクリーニング
基準に基づくスクリーニング​

06.2. 補足情報 [任意]


B) 実施:テーマ

FI 07. Thematic investing - overview (Private)


FI 08. Thematic investing - themed bond processes

08.1. グリーン債原則に従ったテーマ債券の発行に関連する透明性や開示を奨励しているかどうか示してください。社会貢献債原則またはサステナビリティ債ガイドライン。

08.2. 発行体が提供文書の記載に従って、債券収益を配分していないときに取るべき対応策を説明してください。

For some loans we specify that the client has to use the proceeds of the loan for a specific purpose - for example to on-lend to a specific category of borrowers for example SMEs or women. Since FMO's loan size cannot exceed 10% of the total assets of a borrower (for Financial Institutions), we are never the only provider of funds to a client. Clients also get funding from the local market (loans and bonds), from other lenders like FMO and in many cases they also get deposits from the local market. Since money is fungible, we cannot distinguish the amount that we lent to a borrower from amounts that it gets from all these other sources. It is therefore impossible to verify exactly how our money is used. If we specify that a borrower has to use our funds for example to lend to SMEs, we do receive reports on the portfolio composition and development, but for the reasons mentioned above there is no real way to ensure that our loan is used for the purpose that we specify in the contract if the overall business of the FI completely changes over the lifetime of the loan.

08.3. 補足情報 [任意]


FI 09. Thematic investing - assessing impact

09.1. 組織のテーマ投資の環境的または社会的影響を評価する方法を示してください。

09.2. 補足情報 [任意]


C) 実施:ESG問題の統合

FI 10. Integration overview

10.1. ESGを従来の財務分析に統合するアプローチを説明してください。

For all of FMO's investments ESG factors are taken into account; depending on the ESG risk category the amount of time and money spent to work on ESG challenges will vary. For the lowest risk categories, projects are assessed against national law, while high risk projects need to be fully compliant with IFC Performance Standards. Support is being provided to clients by FMO helping them to live up to these standards. FMO has a significant number of ESG officers and analysts working to assess risks, support investment managers, setup corrective action plans, monitor progress on the ESG side and provide ESG training to Fund managers. To help our direct investment clients establish sound E&S practices, we use a practical framework. The framework comprises of three parts: (1) Risk Categorization of clients, (2) Establishing applicable requirements, and (3) Environmental and Social Action Plans. For direct investment clients in category A and B+, an assessment of the E&S practices is required as part of FMO's due diligence. All FMO's higher risk clients are required to implement an Environmental and Social Management System (ESMS). This ESMS is customized for each type of client. Based on the outcomes of the assessment carried out, an Environmental and Social Action Plan (ESAP) is to be agreed upon as necessary, with clear and practical milestones to be achieved within a certain period of time. Where necessary external ESG consultants are commissioned. In certain cases FMO has funds available to improve ESG policies and procedures with, and offer training to clients.

10.2. 投資する債券の各種類に対してESG統合アプローチをどのように調整するのか説明してください。

社債(金融)

FMO's clients with a high E&S risk profile, measured by their own loan portfolio, are required over time to develop and implement such an ESMS (including training of staff) as a covenant of the loan agreement. The ESMS should include a risk categorization method, should describe how identified E&S risk exposure is being dealt with and how it is being mitigated. FMO's ESG process complies with internationally accepted banking, finance and sustainability criteria such as the IFC performance standards and OECD MNE guidelines.

FMO's monitoring of E&S risk and compliance of FI Clients is based on the FI Client's risk categorization. Monitoring will take into account ESAP compliance based on per risk cateogry. Capacity Development is provided to assist client in setting up and implementing ESMS as promote E&S best practice. FMO tracks its policy implementation through its internal sustainability tool.

社債(非金融)

In assessing risk with its clients, FMO also addresses Environmental, Social and Corporate Governance (ESG) risks (and opportunities) in addition to financial risk. FMO acts to mitigate these ESG risks through the development of Environmental, Social and Corporate Governance Action Plans (ESAP + CGAP). With specific reference to only ESAP, these are agreed with clients and are contractually binding. They detail the specific steps that clients have to take in order to mitigate the identified risks/gaps. After a deal has been contracted, the ESAP's are to be actively monitored by FMO's E&S specialists to ensure the timely and appropriate completion of items prescribed by the ESAP. In addition to ESAPs, most clients are contractually required to also provide regular monitoring reports, confirming their performance against the FMO E&S requirements. Other than clients with ESAPs, there are also clients with only ESG reporting requirements.

証券化商品

FMO's clients with a high E&S risk profile, measured by their own loan portfolio, are required over time to develop and implement such an ESMS (including training of staff) as a covenant of the loan agreement. The ESMS should include a risk categorization method, should describe how identified E&S risk exposure is being dealt with and how it is being mitigated. FMO's ESG process complies with internationally accepted banking, finance and sustainability criteria such as the IFC performance standards and OECD MNE guidelines.

FMO's monitoring of E&S risk and compliance of Clients is based on the FI Client's risk categorization. Monitoring will take into account ESAP compliance based on per risk cateogry. Capacity Development is provided to assist client in setting up and implementing ESMS as promote E&S best practice. FMO tracks its policy implementation through its internal sustainability tool.

The majority of our securitised assets are in private equity and energy.

 

10.3. 補足情報 [任意]


FI 11. Integration - ESG information in investment processes

11.1. ESG情報が、通常、投資プロセスの一部としてどのように使用されるのか記載してください。

当てはまるものをすべて選択してください
社債(金融)
社債(非金融)
証券化商品​
ESG分析をファンダメンタル分析に組み込んでいる
ESG分析が発行体の内部信用評価を調整するために利用される
ESG分析が予想財務業績および将来キャッシュフロー予測を調整するために利用される
ESG分析が発行体の同業グループと比較したランキングに影響する
発行体のESG債スプレッドおよび同セクター企業に対するその相対価値が、すべてのリスクが織り込まれているか否かを把握するために分析される
各種デュレーション/満期の発行体債券へのESG分析の影響が分析される。
感度分析およびシナリオ分析が、ベースケースとESG組み込み証券評価の差を比較する評価モデルに適用される
ESG分析が、ポートフォリオのウェイティング決定に組み込まれている
会社、セクター、国、通貨が、ESGエクスポージャーの変化およびリスク制限の違反についてモニタリングされる
ESGリスクが大きい証券についてポートフォリオのESGプロファイルが検討され、ベンチマークのESGプロファイルと比較して評価される
その他(具体的に記載してください)

11.2. 補足情報 [任意]

FMO screens all transactions on ESG risk. FMO categorizes its investments in different levels of Environmental and Social (E&S) risk, similar to IFC’s approach to E&S risk categorization, which is also used by all European Development Finance Institutions (DFIs). For direct investments, risk categorization is based on the client’s activity, IFC Performance Standards triggered transactions and prevailing country specific ESG challenges.

With regard to financial institutions the risk categorization is made on the basis of the banks existing or proposed portfolio, IFC Performance Standards triggered transactions and prevailing country-specific sensitive issues.With regards to ESG in particular, FMO requires all direct investments of medium and high E&S risk to fully adhere to the ESG standards. Low risk (category C) investments are required to adhere to applicable law. For investments in financial institutions (FI), FMO requires FI-A and FI-B clients to apply the IFC Performance Standards framework to IFC PS-triggered transactions. Transactions with countryspecific sensitive issues will be addressed through the IFC Performance Standards. The rest of the portfolio needs to adhere to applicable law and, when relevant, the client protection principles. FMO requires Private Equity Funds to implement an ESG risk management system which is compliant with the IFC Performance Standards. 

During due diligence FMO executes a thorough ESG assessment on its potential clients. This enables FMO to identify the main ESG risks and strengths that a client is exposed to and to assess the quality of its risk management and mitigation measures. The findings during due diligence are important input for monitoring and engagement throughout the investment, or could lead to modification of the transaction (including cancellation).
Dedicated ESG specialists within FMO engage actively with all category A, B+, and where warranted, category B clients. The level and exact focus of engagement depend on the type and severity of impact and/or the extent to which they pose a risk to the client and FMO. ESG risk management is fully integrated in the approval process: this judgement call lies with FMO’s commercial teams while FMO’s credit team independently subjects it to critical scrutiny for verification. Both deal and credit teams have dedicated ESG specialists that are involved in the assessment. FMO applies heightened scrutiny to any investment causing complex resettlement or affecting Indigenous Peoples, critical habitat or critical cultural heritage.

For more information, refer to: https://www.fmo.nl/policies-and-position-statements


FI 12. Integration - E,S and G issues reviewed

12.1. 組織の統合プロセスでESG問題をどのように検討するか示してください。

E(環境)
S(社会)
G(ガバナンス)
社債(金融)

E(環境)

S(社会)

G(ガバナンス)

社債(非金融)

E(環境)

S(社会)

G(ガバナンス)

証券化商品

E(環境)

S(社会)

G(ガバナンス)

12.2. 組織の統合プロセスでE/S/G要因を検討する方法を詳しく説明してください。

社債(金融)

FMO's clients with a high E&S risk profile, measured by their own loan portfolio, are required over time to develop and implement such an ESMS (including training of staff) as a covenant of the loan agreement. The ESMS should include a risk categorization method, should describe how identified E&S risk exposure is being dealt with and how it is being mitigated. FMO's ESG process complies with internationally accepted banking, finance and sustainability criteria such as the IFC performance standards and OECD MNE guidelines.

FMO's monitoring of E&S risk and compliance of FI Clients is based on the FI Client's risk categorization. Monitoring will take into account ESAP compliance based on per risk cateogry. Capacity Development is provided to assist client in setting up and implementing ESMS as promote E&S best practice. FMO tracks its policy implementation through its internal sustainability tool.

社債(非金融)

In assessing risk with its clients, FMO also addresses Environmental, Social and Corporate Governance (ESG) risks (and opportunities) in addition to financial risk. FMO acts to mitigate these ESG risks through the development of Environmental, Social and Corporate Governance Action Plans (ESAP + CGAP). With specific reference to only ESAP, these are agreed with clients and are contractually binding. They detail the specific steps that clients have to take in order to mitigate the identified risks/gaps. After a deal has been contracted, the ESAP's are to be actively monitored by FMO's E&S specialists to ensure the timely and appropriate completion of items prescribed by the ESAP. In addition to ESAPs, most clients are contractually required to also provide regular monitoring reports, confirming their performance against the FMO E&S requirements. Other than clients with ESAPs, there are also clients with only ESG reporting requirements.

証券化商品

FMO's clients with a high E&S risk profile, measured by their own loan portfolio, are required over time to develop and implement such an ESMS (including training of staff) as a covenant of the loan agreement. The ESMS should include a risk categorization method, should describe how identified E&S risk exposure is being dealt with and how it is being mitigated. FMO's ESG process complies with internationally accepted banking, finance and sustainability criteria such as the IFC performance standards and OECD MNE guidelines.

FMO's monitoring of E&S risk and compliance of Clients is based on the FI Client's risk categorization. Monitoring will take into account ESAP compliance based on per risk cateogry. Capacity Development is provided to assist client in setting up and implementing ESMS as promote E&S best practice. FMO tracks its policy implementation through its internal sustainability tool.

The majority of our securitised assets are in private equity and energy.

12.3. 補足情報 [任意]


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