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

PRI reporting framework 2020

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You are in Direct - Inclusive Finance » PIIF Principle 6: Balanced returns

PIIF Principle 6: Balanced returns

IFD 28. How social performance of investees affects decision making and portfolio management

Possible action:

Strive for a balanced long-term social and financial risk-adjusted return that recognises the interests of clients, retail providers and investors.

28.1. Indicate if the social performance of investees affects your:

Investment decision making

28.2. Explain how social performance of investees affects investment decision making.

In 2020, we introduced portfolio targets in addition to our usual targets on new investments. By closely monitoring the development of our portfolio, we will steer investment decisions towards creating a higher impact portfolio. We will grow our Reducing Inequalities and Green portfolios to continue to scale our impact towards SDGs 10 and 13. € 4 billion of the combined FMO, Public Funds and Direct Mobilized portfolios will have a Reducing Inequalities label, a 28% share of the total. Similarly, € 4.9 billion – or a 34% share of the total – will have a Green label.


Portfolio management

28.3. Explain how social performance of investees affects portfolio management.

We continue to steer on ESG performance by our clients through the ESG performance tracker. Compared to previous years, FMO has extended its definition to monitor performance of a larger subset of clients. In 2020, 90% of ESG risks are managed at an amber or green level for all A and B+ ESG risk category clients and clients that require additional corporate governance support.

28.4. Additional information. [Optional]

IFD 29. Staff incentives linked to social performance measures (Private)

IFD 30. Collecting data regarding social outcomes of investees work (Private)

IFD 31. Incentivise investees to track social performance (Private)