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.