• 812,000 (in)Direct Jobs (FTEs) were supported
• 500,000 (tCO2eq) greenhouse gas emissions were avoided
• Establishment African investment company Arise
• Launch of FMO Privium Impact Fund
• Broad stakeholder input leads to new comprehensive sustainability policy
• Green investments below target
• Net profit amounts to € 176 million
• Committed portfolio grows to € 9.8 billion
|
(x € million) (unless otherwise stated) |
2016 |
2015 |
Δ% |
|
(In)Direct Jobs supported (FTEs) |
812,000 |
843,000 |
-4% |
|
Avoided GHG emissions (tCO2eq) |
500,0001 |
787,000 |
-36% |
|
Green investments |
5222 |
685 |
-24% |
|
Total income |
300 |
320 |
-6% |
|
Total expenses |
-86 |
-79 |
+9% |
|
Value adjustments |
-1 |
-29 |
-97% |
|
Taxes |
-43 |
-41 |
+5% |
|
Net profit |
176 |
174 |
+1% |
|
Total committed portfolio (€ million) |
9.778 |
9.256 |
+6% |
|
New commitments |
1,5503 |
1,584 |
-2% |
1) Equal to 1,928,521,663 kilometres driven by an average passenger vehicle
2) Green investments are the new investments for FMO’s account, the government funds and catalysed funds that have been labelled as green investments.
3) New commitments and Total committed portfolio concern both investments for FMO’s account and investments for government funds managed by FMO. The government funds include MASSIF, IDF, AEF and FOM OS.
Our business made a strong contribution to a better world while generating fair financial results. New commitments in 2016 amount to a total of EUR 2.5 billion, of which EUR 0.9 billion was garnered from third parties. With our investments we support a total of 812,000 jobs, while avoiding 500,000 tons of greenhouse gas emissions.
Looking back on 2016, FMO made significant strides in extending the reach of our impact through a number of partnerships.
Together with Rabobank and Norfund, we established a new investment company named Arise. This partnership combines banking skills and financial capabilities and currently manages minority equity investments in excess of USD 660 million in financial institutions in Africa. It will strengthen and further develop inclusive financial systems in Africa that contribute to economic growth and poverty reduction.
The FMO Privium Impact Fund was launched, offering private banking clients of ABN Amro, the exclusive opportunity to co-invest in loans to private sector companies in emerging markets.
In light of our commitment to promote gender equality, we became a strategic partner and investor in the Women Entrepreneur Debt Fund, which supports women-owned businesses. Globally, gender finance is becoming an important priority to impact investors. FMO sees significant potential to create impact at scale through its investments in this area.
A solid consultation process with valuable contributions from society, government and clients, led to our new and robust sustainability policy. Furthermore, together with the Dutch government, financial institutions and civil society we were one of the leading parties involved in the Dutch agreement on international responsible business conduct regarding human rights.
FMO financed fewer and smaller renewable energy projects than anticipated. With 21% green investments in 2016, we did not meet our target of increasing our green investments to 30%. To get back on track, new green initiatives will be developed and projects that go beyond renewable energy will be instigated.
We expect 2017 to be a challenging year for FMO. Most forecasts expect growth in emerging markets to improve to a level slightly over 4%, with significant regional differences. Adding to a volatile economic and political environment is the uncertainty of the extent to which changes in American policy, as well as elections in other European countries will affect global trade and foreign investments. We do see an increasingly broad coalition of public and private parties joining forces to meet the SDG goals. We are an integral part of that coalition and will continue to strengthen and forge partnerships that empower entrepreneurs in emerging economies.
Jürgen Rigterink, FMO’s CEO: “As I look back on 2016, I take pride in the fact that we continued to be successful doing what we do best, being additional to our markets, fostering sustainable development and supporting job creation in developing countries. We invest in some of the world’s most challenging business environments, encouraging the growth of responsible and profitable business in key sectors for development.
As a development bank, we are sensitive to the environment in which we are active. The companies and projects we invest in have an important impact on local communities and society at large. In that respect, 2016 was a challenging year for us. The murder of Honduran environmental activist and indigenous leader Berta Cáceres, especially shocked us. The FMO financed Agua Zarca project was one of the projects she opposed. We stepped up our efforts to properly address the issues related to this, taking into account the needs of our different stakeholder groups.
At an organizational level, we provided input for the discussion to set up a National Financing Institution for Development and Investment (Invest-NL). The aim of Invest-NL is to realize investments in companies and projects in the Netherlands and internationally which are unable to attract sufficient financing. We will contribute to the alignment and bundling of the export and foreign investment instruments for Dutch companies by setting up a Joint Venture with Invest-NL for the NL Business activities of FMO.
In light of the new market dynamics we are undertaking a strategy review. This includes our sectorial and regional positioning as well as our role towards public and private partners going forward. In my role as CEO, I will do my utmost to continue to develop FMO into an organization that makes a real difference to development.”
