The Paraguay Banking Sector. Since 2012, FMO has been working with its client banks, non-FMO clients and other stakeholders on a Sector Initiative to collaboratively introduce higher environmental and social standards for the banking sector. FMO has focused primarily on managing the risks associated with natural habitat loss aspects of banka€™s lending in agricultural and cattle sectors due to legal and illegal deforestation.
For learning and accountability purposes, FMO is planning to outsource an evaluation on the Sector Initiative in Paraguay. The evaluation has two primary purposes: (i) to provide evidence of results to meet accountability requirements, and (ii) to promote operational improvement, learning and knowledge sharing through results and lessons learned. These lessons learned are deemed important for the continuation of this Initiative as well as any future Sector Initiatives to be supported by FMO.
WHY WE FUND THIS PROJECT
As a DFI, FMO has a role to play to support the banking sectors in the countries in which it operates, to improve environmental and social standards. This is timely in Paraguay where FMO has performed a sector initiative since 2012. It is crucial to assess the effectiveness of this sector initiative before its continuation.
ACCOUNTABILITY MECHANISM OF FMO
Communities who believe they will be negatively affected by a project funded by the Dutch Development Bank (FMO) may be able to file a complaint with the Independent Complaints Mechanism, which is the joint independent accountability mechanism of the Dutch Development Bank (FMO) and the German Investment Corporation (KfW) . A complaint can be filed in writing, by email, post, or online. The complaint can be filed in English or any other language of the complainant. The Independent Complaints Mechanism is comprised of a three-member Independent Expert Panel and it can provide either problem-solving, compliance review or both, in either order. Additional information about this accountability mechanism, including a guide and template for filing a complaint, can be found at: https://www.fmo.nl/independent-complaints-mechanism