We kindly invite all interested parties to provide their comments and suggestions to our draft Position Statement on phasing out fossil fuels in our direct investments. This public consultation is open until 9 November 2020.
FMO is the Dutch entrepreneurial development bank. Since 1970 we have been a driving force behind investments empowering entrepreneurs in emerging markets. It is our role and mandate to create local prosperity in some of the world’s most challenging economies.
In our strategy, climate action has been identified as one of the three top-line Sustainable Development Goals (SDGs) to which we can particularly contribute. In practice, this means pursuing a portfolio that delivers positive outcomes on climate mitigation and adaptation. Focusing on climate is also aligned with FMO’s Sustainability Policy, published 4 January 2017, which states the aim to contribute to financing the transition to a green economy in line with the climate goal agreed in Paris. As climate change affects developing countries most, we strive to align our portfolio with a 1.5°C pathway.
Energy security is a critical driver for development and growth. Still more than 840 million people across the globe lack access to energy. However, as FMO, we are working towards a portfolio that is aligned with the 1.5-degree pathway of the Paris Climate Agreement. Therefore, we invest in creating access to affordable, reliable, and low-carbon energy for all.
This Position Statement sets out FMO’s firm commitment to phase out fossil fuels in direct investments from its portfolio. We will stop with direct investments in fossil fuel powered energy and only conditionally allow for new direct investments in gas-based power generation and distributed energy under restrictive transition conditions. In this draft Position Statement, we aim to clarify this position and explain under what conditions and the criteria by which we will consider investing in liquid or gaseous fossil fuels.
The statement considers environmental impacts as well as the need for access to energy in the regions where renewable energy cannot meet the energy demand. Moreover, we will closely monitor technological developments to support the transition to a fossil fuel free energy mix by investing in storage innovation.
The draft ‘Position Statement on Phasing Out Fossil Fuels in Direct Investments’ is complementary to our ‘Position Statement on Coal Power Generation and Coal Mining’ which was published in 2016.
Click here to download the draft‘Position Statement on Phasing Out Fossil Fuels in Direct Investments’ (pdf). Please submit your feedback in writing at consultation@fmo.nl. You will receive a confirmation of receipt. Upon publication of the final Position Statement, a consultation report containing a summary of the main elements of feedback received from stakeholders and FMO’s response will be prepared and published on our website.
Position Statements are an integral part of the FMO Sustainability Policy Framework that is steering FMO’s activities. Position Statements explain FMO’s choices in relation to major global sustainability issues and describe how we select investments, work with our customers and other stakeholders, and monitor performance. They reflect our objective to apply the highest possible standard of ethics and integrity to our business activities. Position Statements are reviewed regularly to decide on revisions or updates.
You can find our policies on the page 'Policies and position statements'
