Reporting policy

The period covered by this report is the calendar year 2021. The publication date of the previous annual report was March 23, 2021. There have been no significant changes to our legal structure, activities, or policies in the course of 2021 that would require a restatement of information.

The method for measuring ESG performance and the model for estimating the number of jobs supported and GHG emissions have changed compared to 2020. Regarding ESG performance, in 2020 only high and medium ESG risks were assessed. In 2021, the scope increased to include low ESG risks as well. Consequently, the 2020 ESG target result was restated to include low risks, leading to an increase in the number of ESG risks assessed from 2,872 to 3,197. The 2020 target performance result of 93% has not been impacted despite the change in scope. FMO aims to have at least 90% of the ESG risks managed at a satisfactory level.

Regarding jobs supported and GHG emissions, changes to the Joint Impact Model (JIM) methodology led to the restatement of the numbers for 2020. For jobs supported, the number changed from 427,489 to 672,492 (36% increase). For GHG emissions, the number changed from 2,939,695 to 4,962,939 tCO2e (69% increase). A summary of the methodological changes can be found in the sections ‘Jobs supported’ and ‘GHG emissions’ further down in this chapter. A full overview of the changes to the methodology can be found on our website.

Following the launch of the 2X Collaborative, the 2X Challenge eligibility criteria have been reviewed and a new counting method for indirect investments has been applied as of 2021. As a result, for several transactions only 30% of the total commitment would be tallied, relatively decreasing our annual contribution to the program in comparison to 2020.

The figures and percentages in this annual report (not the annual accounts) include the figures for FMO and its subsidiaries as well as those of the FMO-managed public funds, unless stated otherwise.

Many of our financing and investing activities take place in foreign currencies, mostly in US dollars. Unless explicitly stated otherwise, all investment amounts mentioned throughout the report have been translated into our functional currency, the Euro, based on the foreign exchange rates at the date of contracting. Figures referring to the year-end committed portfolio have been translated into euros using the year-end foreign exchange rates.

For the closing-of-the-books processes, data was taken from our internal systems. Data pertaining to our portfolio was taken from financial systems. Non-financial elements of our portfolio, specifically data for measuring impact and footprint, are based on data from customers and macroeconomic data sources. Information on human resources comes from our HR systems and is linked to our salary administration system.

Data quality is important as it forms the basis for management reporting and steering. To safeguard data quality, financial and non-financial data registration are embedded in our core investment process. The results are analyzed by an employee independent of the investment process, both on project level during the year and on an aggregated level after closing of the books. Beyond that, as a third line of defense, FMO’s Internal Audit department considers data quality and the underlying processes to be important audit areas.

The case studies included throughout the report offer insight into our activities and are not necessarily representative of our entire portfolio. They do, however, exemplify projects within our regions and strategic sectors, and highlight material activities of FMO and their inherent dilemmas from the perspective of different stakeholders.