At FMO, we believe climate change will undermine sustainable development goals if not urgently addressed. As global temperatures rise, the impact of climate change is already evident. Learn more about our approach to climate action during and beyond COP27.
There is a 50:50 chance of average global temperature reaching 1.5C degrees above pre-industrial levels in the next five years.
Climate change including increases in frequency and intensity of extreme weather events have reduced food and water security, hindering efforts to meet the SDGs.
FMO’s customers will face new and never experienced risks from the negative consequences of climate change.
To make a difference, we pay special attention to vulnerable groups and areas. 3.3 to 3.6 billion people live in contexts of high vulnerability to climate change and numerous species are threatened by it. Because human and ecosystem vulnerability are interdependent, the rise in weather and climate extremes has led to severe damage as natural and human systems have been pushed beyond their ability to adapt. Conserving natural terrestrial, freshwater and marine ecosystems and restoring degraded ecosystems (including their genetic and species diversity) is essential as they provide a wide range of ecosystem services that are essential for human well-being.
However, we also believe that our clients are part of the solution.
We will maximize our impact on the SDGs by supporting sustainable and inclusive economic growth while being consistent with a pathway towards low greenhouse gas emissions and climate-resilient development. Indeed, while many of the countries we work in are not contributing to the climate crisis, if emissions are not kept in check, with population and GDP growth, they could become the next big emitters. Therefore it is imperative that as we work to increase growth, we do it in a low emission way.
FMO supported Sahyadri Farms with climate risk assessments in their business models. It is a stellar example of the use of technology and digitization in real climate information.
FMO invests in assets which contribute to climate objectives and in certain assets that are not yet 1.5°C pathway-aligned where we see an opportunity to engage meaningfully with our customers to increase their alignment with the Paris goals, or in case there are certain environmental or social reasons. We exclude investments based on our Position Statements on Phasing out Fossil Fuels in Direct Investments and on Coal Power Generation and Coal Mining.
Together with our partners we engage on climate adaptation and resilience, and biodiversity, by creating coalitions with key nature conservancy organizations, contributing to the understanding of the landscape approach, promoting community and stakeholder engagement.
Developing countries are disproportionately affected but are also part of the solution: while the poorest 50% of the world’s population is responsible for just 7% of global emissions, they will face 75-80% of the costs of climate change.
In 2019, 41% of the global population live in countries emitting less than 3 tCO2-eq per capita, and a substantial share of the population in these low-emitting countries lack access to modern energy services. Eradicating extreme poverty, energy poverty, and providing decent living standards to all in the context of achieving sustainable development goals, can be achieved without significant global emissions growth.
An estimated USD 1.6 trillion– 3.8 trillion is required annually to avoid warming exceeding 1.5 °C, for supply-side energy system investments alone. The UN estimates that developing countries already need USD 70 billion per year to cover adaptation costs and will need USD 140 billion–USD 300 billion in 2030.
Farmerline's marketplace cobines tools, resources, and partnerships to support African farmers, and provides free education on climate-smart farming practices;
FMO remains committed to the goals of the Paris Agreement and to reach ‘net zero’ portfolio by 2050. Towards 2030, while balancing the need for a just and inclusive transition, and specific circumstances of our countries and sectors, we will support customers’ increased alignment with the Paris goals and strive towards portfolio alignment with a 1.5°C pathway.
We aim to maximize our impact on the SDGs by supporting sustainable economic growth while being consistent with a pathway towards low greenhouse gas emissions and climate-resilient development.
Each new investment will be assessed on its consistency with countries’ Nationally Determined Contributions (NDCs) and low GHG development pathways, making sure that they contribute to long-term progress toward decarbonization for that country and do not undermine a transition to a decarbonized economy;
Physical climate risks shall be identified and addressed and assessed to ensure that the investment does not undermine the country’s climate adaptation and resilience objectives. For our investments, we will take an ambitious and well-studied approach, while carefully balancing both social and environmental considerations, as well as the need for a just and inclusive transition; and strive to align both new transactions and our portfolio with a 1.5°C pathway.
The direction, disclosure and regular assessment of our commitment will be based on science-based targets where possible. We will adjust our strategy based on progress made vis-à-vis targets. Given the diversity of our investments and circumstances of our markets, our portfolio may not be perfectly aligned year-to-year on a linear basis with 1.5°C pathways.
d.light Solar is a designer, distributor and financer of solar lighting products & solar home systems (SHS) in Africa and India, and has sold ~20 million solar lanterns and 300K SHS through the “pay as you go” (PAYGO) model.
7 November: Michael Jongeneel, CEO FMO | Forest Climate Leaders’ Summit
9 November: DFCD | "Building bridges between finance and implementation to transform food systems"
9 November: DFCD | "The accessibility of finance solutions for food system transformation"
11 November: Joint Impact Model |"Modelling Your Portfolio Carbon Footprint: Lessons Learned from Partnerships with Emerging Economy Banks" | 2:25 PM – 3:10 PM EET
11 November: Joint Impact Model | "Scaling and Accelerating the Deployment of Transition Finance: A Practiconer's Guide" | 3:15 PM – 4:00 PM EET
11 November: DFCD | "How to mobilize private sector finance towards inclusive climate resilient food systems"
12 November: DFCD | "Leveraging Private Sector Investment in Adaptation"
16 November: DFCD | "Mobilizing Finance for Climate Adaptation"