Assessment of FMO’s Just and Inclusive Transition Approach

We supported FMO in assessing how its strategy and policies both safeguard and contribute to a just transition

As part of its Strategy 2030, FMO has committed to achieving a net-zero portfolio by 2050, with an emphasis on ensuring a just and inclusive transition. To support this ambition, FMO sought to understand how its current strategy, policies, position statements and approaches safeguard and contribute to a just and inclusive transition.

By leveraging our expertise around development finance, climate and social investing, we developed an overview of relevant just transition topics specific to FMO’s focus sectors of agriculture, food and water, energy, and financial institutions. These topics were then prioritised based on their materiality to the just transition and potential for FMO to influence these. The identified topics were subsequently mapped against FMO’s commitments, policy frameworks and position statements to assess the extent to which they are addressed through existing commitments and processes. In addition to evaluating FMO’s approach to safeguarding and contributing to a just transition, the project also considered FMO’s approach to managing trade-offs and steering for synergies, providing a comprehensive framework to identify any shortcomings and opportunities.

The assessment provided FMO with a clear overview of its current position, strategic recommendations to strengthen its approach, and a foundation for future implementation of the just and inclusive transition within its operations. It enables FMO to further align its investment portfolio with net-zero pathways while pursuing social equity, as well as lead by example among development finance institutions in integrating just and inclusive transition into strategy.