Leading by example and sharing knowledge to achieve more
FMO already had a strong record on environmental issues. We have a green ambition and a label in place to steer our investments into climate finance (e.g. renewable energy projects), biodiversity and reduced water usage. Research confirms FMO’s portfolio emits less CO2 than most cohorts. Nevertheless, inspired by Paris, and conscious that one of its main investors, the Dutch government, was a signatory, FMO vouched to do more.
Because climate change affects all but developing countries most, FMO set itself the ambition of aligning its total portfolio with a 1.5°C emissions pathway (the stated ideal in the Paris Climate Agreement). This means we need to be able to not only track and measure absolute emissions of our portfolio, but also to assess progress against the 1.5°C pathway. Therefore, we developed a methodology to establish a 1.5°C emissions reduction pathway, as well as a GHG accounting approach for absolute emissions. Equally important, FMO joined one of the first initiatives within the Dutch financial sector to better account for carbon emissions, the Platform Carbon Accounting Financials
FMO’s work on the Paris Climate Agreement alignment and GHG accounting are two examples of how FMO is keen to share its knowledge and tools with other financial institutions and help them reach their climate goals. You can find both papers on our FMO website, click here.