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Improving Corporate Governance

Improving our clients' corporate governance is a key part of our ESG focus. In 2012, FMO continued to play a leading role in developing corporate governance standards within the DFI community.

In 2012 we made progress in formulating a new corporate governance strategy that will be rolled out in 2013. The strategy has implications for FMO’s portfolio, especially in terms of our equity investments in client companies and the process through which we nominate board members to retain overview and influence. The corporate governance strategy also addresses the interaction with independent nominee directors in our portfolio and processes for improving corporate governance training at FMO.

FMO uses the DFI Toolkit on Corporate Governance, which sets a clearly structured roadmap that we and our clients can both consult. This roadmap is flexible enough to differentiate between clients according to their development stage. Last year, we organized two sessions to educate FMO investment officers about our corporate governance policy and tools, and organized a corporate governance roundtable for our nominee directors. We also extend these corporate governance trainings to EDFI members in order to enhance understanding throughout the industry of how best to use the toolkit. We actively participated in corporate governance conferences and knowledge-sharing activities with sister DFIs in 2012.