Nederlandse versie making business work for society

Training on E&S management for financial institutions

The assignment

Dutch development bank FMO has a keen eye for sustainability in finance. In addition to providing finance FMO works with its clients to embed risk relevant environmental and social (E&S) standards at the clients and projects it finances. When lending through Financial Intermediaries (FIs) in emerging markets, FMO also wants appropriate E&S  standards to be applied by these local banks. This means that FMO expects its intermediaries to install checks & balances to ensure adequate environmental and social risk mitigation. FMO hired Steward Redqueen to train its staff on how to engage with FIs on the rationale for good E&S management and mitigation and how to assess the quality of an FI’s E&S management system.

The solution

We developed a 2-day course that helped FMO staff to understand the materiality of E&S risk for financial institutions, how these FIs can develop an E&S management mechanism and how this mechanism can be assessed. Through presentations, real life case studies, discussions and role play, FMO’s investment staff learned how to put E&S management in practice.

The benefits

The training showed investment officers that E&S management, and the opportunities it provides, can add value to the strategic relationship with a client and a new way of looking at business risks and opportunities.

Steward Redqueen delivered a well-rounded 2-day training course that was highly valued by participants. From their extensive background in training finance professionals on sustainability issues, they were able to combine solid environmental and social risk management concepts with practical hands-on examples and role-plays. Feedback from participants rated the course exceptionally high. We will structurally embed this training in our organization by making it part of our FMO Academy program.
Desmond Fortes
Environmental and Social Officer FMO