news - FMO Opens Public Consultation on Sustainability Policy Universe

FMO has launched a public consultation for the proposed updates to its Sustainability Policy Universe (SPU). The Sustainability Policy Universe has recently undergone a review process with the aim of maintaining the clarity and ambition of FMO’s existing sustainability commitments, while ensuring the framework is up to date, robust and effective.  

The SPU is FMO’s comprehensive policy framework that guides our approach to sustainable development finance. It consists of: 

• The Sustainability Policy, the leading document in the FMO Sustainability Policy Universe and informs FMO’s investment decisions and actions with respect to impact and sustainability.  

• Eight Position Statements, which complement the Sustainability Policy and further elaborate FMO’s approach to major global sustainability issues and explain how FMO selects and structures investments; works with clients and stakeholders; and monitors and manages sustainability performance. 

• The Exclusion List,an EDFI-harmonized document defining activities that FMO will not finance or support, directly or indirectly. 

FMO reviewed the documents for consistency in terminology, both within the universe and across related frameworks and disclosures, and improved clarity of the documents. These changes are reflected throughout all documents of the SPU. These changes are not considered material policy changes and are not subject to public consultation. 

Material revisions were made to the Sustainability Policy, the Combined Position Statement on Fossil Fuels, and the Human Rights Position Statement. Therefore, these three documents are subject to public consultation. 

Key changes to the Sustainability Policy Universe 

Key material changes include: 

• Further clarifying the scope of application and differentiated implementation approach of the Sustainability Policy Universe explaining in more detail to what investments FMO applies the SPU and describing how contexts and leverage may affect the approach to implementation, including working with Partner institutions. 

• Reflecting relevant internal operational developments, ensuring that the SPU remains up to date. For example, the updated SPU reflects that FMO assesses all new investments for alignment with the goals of the Paris Agreement, in line with FMO’s Methodology for Paris Alignment. 

• Further explaining FMO’s risk-based approach. For example, the scope and depth of due diligence conducted, as well as the engagement of ESG specialists, depend on the risk category —as determined through the ESG Risk Categorization processes—and on the type, scope, scale, and likelihood of the negative impacts identified, as well as the extent to which such impacts may pose a threat to people, the environment, FMO’s customers, or FMO itself. 

• Updating the Human Rights Position Statement to further clarify how FMO meets its responsibility to respect human rights under the United Nations Guiding Principles on Business and Human Rights. 

• A key update is that FMO will no longer make any new direct investments in gas‑fired power generation plants and directly connected transmission infrastructure, including transmission infrastructure solely connecting gas-based power to the grid, as the five‑year transition period for gas-based power FMO previously committed to, ends in June 2026. Renewable energy technologies have further advanced, and FMO chooses to invest its scarce resources in renewable energy.   

Public consultation process 

FMO invites stakeholders and interested parties to review the Sustainability Policy and the Combined Position Statement on Fossil Fuels, and Human Rights Position Statement, and share their comments and suggestions as part of the 30-day consultation period, beginning on 13 May 2026 and concluding on 10 June 2026.