Development of FI ESG Tool for FMO

Steward Redqueen developed a software solution for FMO aimed at guiding Financial Institutions (FIs) on managing environmental, social and governance (ESG) risks and responsible banking.

FMO, the Dutch entrepreneurial development bank, finances projects in developing countries and emerging markets to stimulate sustainable economic growth. Small to medium sized (MSME) banks often face challenges in efficiently assessing and managing ESG risks, implementing the United Nations Principles for Responsible Banking (UNPRB) and successfully implementing grievance mechanisms. Traditional methods of evaluating ESG risks were time-consuming and lacked consistency. To improve this, FMO asked Steward Redqueen to develop an efficient, scalable solution that standardize ESG risk assessments, ensures compliance with international standards, and provides actionable insights.

To help FMO in guiding FIs, Steward Redqueen developed the FMO FI ESG Tool, a sophisticated software application designed to manage ESG risks. The tool integrates robust data analytics and automated scoring mechanisms, enabling FI’s to manage ESG risks across different regions on a transaction and portfolio level. It provides a user-friendly interface for inputting data, generating comprehensive ESG reports, and visualizing risk levels.

The FMO FI ESG Tool resulted in enabling FI’s to manage their ESG risks more efficiently and operate more responsibly. Over 750 users across more than 80 countries now utilize the tool, ensuring consistent ESG risk evaluation. The tool has enhanced transparency, improved decision-making, and strengthened FMO’s commitment to promoting sustainable finance globally.