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.
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. This toolkit is based on the IFC Performance Standards and implemented worldwide in PE Funds by Steward Redqueen.
On 26 January 2021, a new web-based version of the toolkit will go live. This new FMO ESG toolkit supports fund managers in complying with international standards and industry best practices. → Read more.
This toolkit provides the instruments for the assessment of Corporate Governance risks in banks, NBFIs and MFIs during the investment phase. This toolkit is meant for such institutions in a basic, emerging and developed stage, considering the regulated environment they are operating in.
Click here to download the tool
For further explanation, see the Manual for Corporate Governance Toolkit for FI's.
This toolkit provides the instruments for the assessment of Corporate Governance risks in (family-owned) corporates during the investment phase. This toolkit is meant for enterprises in a basic, emerging an development stage.
Click here to download the tool.
For further explanation, see the Manual for Corporate Governance Toolkit for Corporates
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.
Once downloaded and installed, the e-learning tool covers:
We encourage further dissemination of this tool to other MFI's or SME banks.
The office guide explains how to implement E&S evaluations and follow-up processes in alignment with the MFI's or SME bank’s regular credit evaluation, approval and monitoring and reporting processes. The field guide offers the MFI/SME bank loan officer practical guidance to address environmental and social themes in the contact with their clients.
Click here to download the tool (winzip v2.0)
The MFI / SME sustainability guidance e-tool is in English. The instruction documents (office guide, field guide, training guide) are available in English, Spanish, French and Khmer.
Guidance in English
Dirección En Español
Conseils en Francais
អនុទ្ទេស, សេចក្តីណែនាំ នៃខ្មែរ (Guidance in Khmer)