Climate change affects Rabobank Group's policy
Achieving climate-neutral business operations
Access to financial services in developing countries
Rabo Development
Likewise, the bank's human rights policy was formalised by adopting with five special
guidelines and a start was made with its introduction in the organisation. In addition,
Rabobank Group discussed its human rights policy with a number of NGOs.
The decline in agricultural acreage available as a result of climate change, water scarcity and
pollution is affecting the financial performance of agricultural businesses. In turn, this might
affect the solvency of this client category, and might lead to greater credit and investment
risks for Rabobank Group. It is therefore in Rabobank Group's interest to control and mitigate
social risks. In light of this, Rabobank Group aims to make a contribution towards sustainable
product chains. It does this by means of CSR performance assessments of new clients and
loan applications.
At the same time, the climate and scarcity issues are clear opportunities for Rabobank
Group because more and more capital will be required for the development of technologies
with a more sustainable character. Already, Rabobank Group has developed many initiatives
and will continue to do so, both in its own operations and through climate-friendly products
and services, by financing sustainable initiatives and by raising awareness among customers
and employees of problems and paths towards solutions.
For years, Rabobank Group has pursued an active environmental policy aimed at reducing
the volume of raw materials and energy required for its business. The actions are based on
three principles. Rabobank Group aims to reduce its own use of natural resources and raw
materials, deploys re-usable materials and materials with a lower environmental impact as
much as possible and compensates for the remaining environmental impact. This approach
is known as the Trias Energetica. In 2007, Rabobank Group quantified the CO2 emissions
related to its own operations. It was then decided to offset these emissions, which amount to
175,000 tonnes, by procuring CO2 credits. Also in 2007, a full accounting system for its CO2
emissions from the use of natural gas, electricity, mobility and paper was set up so as to be
able to identify relevant opportunities for CO2 reduction, monitor the effectiveness of
environmental measures and formulate additional climate targets.
Rabobank Group believes that everyone should be able to participate fully in economic
activities. Through its partner banks, in which it has minority interests, Rabo Development
currently serves more than 2 million customers in Tanzania, Zambia, Mozambique and China.
Besides Rabo Development, Rabobank Foundation actively uses its funds in developing
countries for many years, supporting cooperative micro financing institutions, producer
organisations and promising local savings and loan cooperatives. Rabobank Foundation
provided EUR 11 million in loans in 2007, and totally it has EUR 17 million in loans outstanding.
Late in 2005, Rabobank took the initiative to develop banks according to the Rabobank
model in a number of developing countries. These banks do not necessarily have a
cooperative structure but distinguish themselves from other (international) banks because
they expressly consider rural areas as their markets and focus on serving all market
segments. This gives Rabobank's partner banks a unique position, as other banks focus
mainly on the higher-end market segments in urban areas. Rabobank concentrates on the
long-term development of its partner banks, with profitability as a subservient factor for the
shorter term. Partner banks are being developed along the same lines that Rabobanks have
developed over time in the Netherlands.
With this initiative, Rabobank makes a practical translation of its original cooperative
target: providing financial services where they are not or insufficiently available. Here, the
focus is on other parts of the world, where the relevant circumstances are very similar to
those in the Netherlands a century ago.
In eligible countries, Rabobank looks for banks with a relatively large, preferably nation
wide network. Rabobank takes a minority interest, is represented in the 'board' in order to
enable controlling the bank's strategy, and supplies managers to strengthen local
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Rabobank Group Annual Report 2007
