FMO has developed two tools to support its clients in terms of environmental, social and governance (ESG) risk management. The tools below are specifically targeted at private equity investment funds and microfinance institutions (MFIs) and small and medium enterprise (SME) banks.
ESG RISK MANAGEMENT TOOL FOR PRIVATE EQUITY INVESTMENT
Experience has shown that a significant discrepancy exists between the high-level nature of environmental and social requirements and their implementation within private equity (PE) Funds. One of the main hurdles is the design and implementation of the so-called environmental and social management system (ESMS).
It is FMO’s experience that a well-functioning ESMS can help an investment fund to enhance the business performance of its investments and in finding better deal exit possibilities. To assist its clients in private equity with the implementation of an ESMS, FMO has together with Steward Redqueen designed an Environmental, Social and Governance (ESG) toolkit aiming specifically at PE Funds. The tool is currently maintained and implemented worldwide in PE Funds by Steward Redqueen.
MFI AND SME SUSTAINABILITY GUIDANCE E-LEARNING TOOL
This sustainability e-learning tool supports microfinance institutions (MFIs) and banks that finance small and medium enterprises (SME banks) that wish to reduce the environmental and social (E&S) risks in their portfolio.