Groups react with dismay to FMO's position statement on financial intermediaries pointing to outstanding human rights and climate concerns

A coalition of civil society groups, including Oxfam Novib, Both ENDS, SOMO, and Recourse, criticizes FMO's October 2022 Position Statement on Impact and ESG for Financial Intermediaries. The groups argue that FMO's indirect investment model—which constitutes approximately 40% of its total portfolio—carries higher risks than direct lending but lacks sufficient safeguards against human rights abuses and environmental harm. Specifically, they highlight a gap in FMO's fossil fuel phase-out commitments, which apply to direct investments but not to those made via financial intermediaries, such as the Africa Finance Corporation. The statement also notes that a lack of transparency prevents impacted communities from accessing remedies for adverse project impacts.

• Financial intermediaries (FIs) represent FMO's largest investment sector and account for approximately 40% of its total portfolio, yet this model is considered higher risk than direct lending.
• FMO's commitment to phasing out fossil fuels is inconsistent because it applies only to direct investments and does not guarantee the bank will stop investing in the fossil fuel industry through financial intermediaries, such as the Africa Finance Corporation.
• A lack of transparency regarding investments made through financial intermediaries denies impacted communities their right to information and limits their access to remedy for adverse impacts.
• Indirect investments via FIs have been linked to human rights violations and environmental destruction, including hydropower projects in Guatemala that violated indigenous consultation safeguards and a gold mine project in Liberia that caused displacement and food security threats.

APA

rrotadmin (2022). Groups react with dismay to FMO's position statement on financial intermediaries pointing to outstanding human rights and climate concerns. Recourse. https://re-course.org/newsupdates/groups-react-with-dismay-to-fmos-position-statement-on-financial-intermediaries-pointing-to-outstanding-human-rights-and-climate-concerns/

Chicago

rrotadmin. Groups react with dismay to FMO's position statement on financial intermediaries pointing to outstanding human rights and climate concerns. Recourse, 2022. https://re-course.org/newsupdates/groups-react-with-dismay-to-fmos-position-statement-on-financial-intermediaries-pointing-to-outstanding-human-rights-and-climate-concerns/.

Wikipedia

{{cite press release |last1=rrotadmin |title=Groups react with dismay to FMO's position statement on financial intermediaries pointing to outstanding human rights and climate concerns |publisher=Recourse |date=7 December 2022 |url=https://re-course.org/newsupdates/groups-react-with-dismay-to-fmos-position-statement-on-financial-intermediaries-pointing-to-outstanding-human-rights-and-climate-concerns/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@misc{rrotadmin2022groups, author = {rrotadmin}, title = {{Groups react with dismay to FMO's position statement on financial intermediaries pointing to outstanding human rights and climate concerns}}, publisher = {Recourse}, year = {2022}, month = dec, url = {https://re-course.org/newsupdates/groups-react-with-dismay-to-fmos-position-statement-on-financial-intermediaries-pointing-to-outstanding-human-rights-and-climate-concerns/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }