Digital photography

I wanted to try and understand this concept myself so I did some reading. Apparently, I could stand the same distance from the subject as a FF sensor with a 40mm and get the same background compression. No cropping would be needed either as the framing would already be the same.

Your micro 4/3 sensor captures only a portion of what the larger full frame sensor would capture.
So yes, the micro 4/3 gets about the same angle with a 20mm lens, as full frame would get with a 40mm, framing would be roughly the same, no cropping needed.
Depth of field as well as "background compression" happens in the lens, so a 20mm does what a 20mm does, no matter what sensor is behind it.