"Environmental and social characterization of individual clients and total portfolio, using integrated scorecards.&qu...
Vision FMO The Netherlands Development Finance Company (FMO) invests risk capital in companies and financial institutions ...
<ul><li>Investing in entrepreneurship includes managing and mitigating negative social and environmental impacts. </li></u...
<ul><li>One integrated scorecard for each client </li></ul><ul><li>Sections of the scorecard: </li></ul><ul><ul><li>Risks ...
Social  & environmental indicators – Risk (CF/FI *)   * CF = Company Finance  FI = Financial Institution <ul><li>Environme...
Social and environmental indicators – Development impact (CF/FI) <ul><li>Environmental </li></ul><ul><li>Exploitation / co...
Results  (Example from FMO Sustainability Report 2005)
<ul><li>Integrated financial/economic, social and environmental evaluation part and parcel of FMO approach to financing. <...
Upcoming SlideShare
Loading in …5
×

Environmental and social characterization of individual clients and total portfolio, using integrated scorecards.

679 views

Published on

Anton Van Elteren, Senior Environmental Specialist - FMO - The Netherlands

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
679
On SlideShare
0
From Embeds
0
Number of Embeds
16
Actions
Shares
0
Downloads
5
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Environmental and social characterization of individual clients and total portfolio, using integrated scorecards.

  1. 1. &quot;Environmental and social characterization of individual clients and total portfolio, using integrated scorecards.&quot;
  2. 2. Vision FMO The Netherlands Development Finance Company (FMO) invests risk capital in companies and financial institutions in developing countries. Goal is to create flourishing enterprises which can serve as engines of sustainable growth in their countries.
  3. 3. <ul><li>Investing in entrepreneurship includes managing and mitigating negative social and environmental impacts. </li></ul><ul><li>Environmental & social standards & criteria: </li></ul><ul><li>World Bank / IFC & ILO. </li></ul><ul><li>Experience shows: ‘Contribution to economic growth’ and ‘social and environmental development impact’ are interrelated. </li></ul><ul><li>Integrated approach of economic prosperity, social development and environmental preservation. </li></ul>Commitment to sustainable development
  4. 4. <ul><li>One integrated scorecard for each client </li></ul><ul><li>Sections of the scorecard: </li></ul><ul><ul><li>Risks </li></ul></ul><ul><ul><li>Development Impact </li></ul></ul><ul><ul><li>Added Value and Role FMO </li></ul></ul><ul><li>In each section: </li></ul><ul><ul><li>Financial / economic </li></ul></ul><ul><ul><li>Social </li></ul></ul><ul><ul><li>Environmental </li></ul></ul><ul><li>Scorecard Manual with defined criteria for each indicator (unsatisfactory / partly (un)satisfactory / good / excellent). </li></ul>Integrated approach in practice: using the FMO scorecard
  5. 5. Social & environmental indicators – Risk (CF/FI *)   * CF = Company Finance FI = Financial Institution <ul><li>Environmental </li></ul><ul><li>Environmental policy (CF/FI) </li></ul><ul><li>Environmental management (CF/FI) </li></ul><ul><li>Direct environmental impacts and safety performance (CF) </li></ul><ul><li>Specific environmental liabilities (CF) </li></ul><ul><li>Social </li></ul><ul><li>Social policies (CF/FI) </li></ul><ul><li>Core labor standards (CF/FI) </li></ul><ul><li>Primary labor conditions (CF/FI) </li></ul><ul><li>Direct social impacts (CF) </li></ul><ul><li>Specific social liabilities (CF) </li></ul><ul><li>Social management system (FI) </li></ul>
  6. 6. Social and environmental indicators – Development impact (CF/FI) <ul><li>Environmental </li></ul><ul><li>Exploitation / conservation of non-renewable resources (CF) </li></ul><ul><li>Chain stewardship (CF) </li></ul><ul><li>Eco efficiency (CF) </li></ul><ul><li>Environmental performance of clients (FI) </li></ul><ul><li>Specific environmental investments (FI) </li></ul><ul><li>Social </li></ul><ul><li>Labor relations (CF) </li></ul><ul><li>Community development (CF) </li></ul><ul><li>Stakeholder participations (CF) </li></ul><ul><li>Social performance of clients (FI) </li></ul><ul><li>Specific social investments (FI) </li></ul>
  7. 7. Results (Example from FMO Sustainability Report 2005)
  8. 8. <ul><li>Integrated financial/economic, social and environmental evaluation part and parcel of FMO approach to financing. </li></ul><ul><li>Most clients see added value. </li></ul><ul><li>This approach goes well beyond the GRI guidelines and the FI sector supplements to that. </li></ul><ul><li>Please refer to FMO Sustainability Reports 2004 and 2005 for more detailed information & results (www.fmo.nl). </li></ul><ul><li>Looking forward to your comments. </li></ul>Conclusions

×