FMO, the Dutch entrepreneurial development bank, publishes its Climate Action Plan, as part of our obligations under the Climate Commitment of the Dutch Financial Sector and elaborates its strategy for 2030.
Climate action has long been a part of FMO’s strategic objectives. The Climate Action Plan builds on the work it has already done and lays the foundations for work ahead to 2030.
The Dutch entrepreneurial development bank in a statement said “FMO is committed to bold climate action through the alignment of our portfolio and investments with the Paris Agreement goals, increased climate investments and support to our customers. Our overall climate action is framed by our commitment to a “net zero portfolio” by 2050, striving toward 1.5ºC pathway alignment at both a portfolio and investment level, carefully balancing both social and environmental considerations and taking into account the need for a just and inclusive transition.”
In line with it’s commitments, FMO will take the following actions:
- Continue to phase out fossil fuels in our portfolio with a commitment to reduce our power generation portfolio emissions by 50% to 2030 while aiming to double this portfolio in volume;
- In line with our Position Statement on Phasing Out Fossil Fuels in Direct Investments, we will no longer invest in fossil fuel power generation plants unless a case would meet strict transition criteria. We are implementing additional fossil fuel restrictions for our indirect investments as described in our joint commitment to the EDFI Climate and Energy Statement;
- Review new investments for Paris alignment from both a mitigation and resilience perspective;
- Work with our customers to improve their Paris alignment, and provide them with capacity development and other support;
- Build a portfolio of at least 10bn in SDG13 investments with a focus on climate mitigation, adaptation and resilience, and biodiversity.
“This plan highlights the need for a differentiated approach to climate action for an international development bank like FMO when operating in multiple countries and sectors”, said FMO CEO Michael Jongeneel. “It also showcases the need for a multi-disciplinary approach, where success will be found by achieving our climate, social, and other environmental objectives together, working toward a just and inclusive transition for our markets and customers.”
FMO is uniquely positioned to effect climate action in the markets we work in through an integrated social-environmental-climate approach and based on the goal of a just and inclusive transition for our clients. This plan represents another step in our climate journey as we work toward a sustainable future together. As methodologies and regulations develop, we will continue to adjust to maximize our impact, said the organization.