annual and interim reports

Letter of the Management Board

2022 was a year of upheaval. The Ukraine war – first and foremost a humanitarian disaster – led to political and economic crises across the region and beyond.

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External environment

The year 2022 was shaped by several major events. Although the COVID-19 pandemic became more manageable, Russia invaded Ukraine, inflation soared, access to energy and food was more restricted and economic growth slowed down.

Our value creation model

Our value creation model is based on the International Integrated Reporting Framework.

Operating context

Since 1970, FMO has made a positive difference by enabling entrepreneurs in developing countries to build a better world.

Our business model

Value creation starts with the resources or ‘inputs' that are key to running our business:

Value creation

We distinguish between short term outputs, resulting directly from our activities, and the outcomes that we believe to result from those outputs. The long-term impact refers to the indirect results we believe our work will contribute to over time.

Potential risks and opportunities

Below is an overview of the challenges, risks and opportunities we see in the short to medium term. The risks that could impact our strategic objectives and reputation relate to our business model, ESG, regulatory compliance and strategy execution.

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Our investment process

Before and during the investment period, we research the financing opportunity and assess its impact on the environment, employees and workers, communities and other stakeholders.

Know Your Customer

As a development finance institution (DFI), FMO runs the risk of becoming involved in money laundering or financing terrorism, and financing sanctioned entities or customers with a bad reputation.

Environmental, social and governance standards

Environmental, social (including human rights), and governance (ESG) standards are an integral part of our investment process and serve several goals.

Read more ›Environmental, social and governance standards