ESG Toolkit | Dutch Development Bank

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Environmental, Social and Governance Toolkits

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.

(1) Toolkit for Private Equity Funds

The FMO ESG Toolkit supports generalist Private Equity Funds in the assessment and management of Environmental, Social, Corporate Governance and Business Integrity risks of investees.For Fund Managers that have investees in many
different sectors or in many different countries, it can be challenging to know where to start their ESG analysis. The FMO ESG toolkit addresses this need by providing a high-level comprehensive tool for generalist Private Equity Funds to screen
investments and monitor the ESG performance of their portfolios. The tool references relevant international best practices and standards as outlined in this guide.

On 26 January 2021, a new web-based version of the toolkit was launched. For more details about the history of the tool and the improvements made to its previous edition → click here.

(2) Corporate Governance Toolkit for Banks, NBFIs and MFIs

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.

(3) Corporate Governance Toolkit for Corporates (including Family-owned Businesses)

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

(4) 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.

Once downloaded and installed, the e-learning tool covers:

  • Step I: Getting prepared. This is an introduction to ‘What are E&S risks’ and ‘Why are E&S risks relevant’, all within the specific context of MFIs and SME banks.
  • Step II: Proceed to action helps the MFI or SME bank to organize a pilot and to define the boundaries of the project.
  • Step III: Successful implementation that helps the MFI or SME bank to formulate its own sustainability policy, taking into account the sustainability ambitions of the organization.
Free use

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)