Contents Foreword Management report Corporate governance Consolidated Financial Statements Company Financial Statements Pillar 3
The table below serves to clarify the methodology and definitions used to measure and report the progress on each KPI.
Vital communities
KPI 1
We support social initiatives in the communities in which we operate with manpower, knowledge, networks and facilities and we invest the
equivalent of 3% of our annual profit in social initiatives on a not-for-profit basis through the Rabobank Group and the Rabobank Foundation
Methodology
We measure and report the financial donations by Rabobank entities and loans by Rabobank Foundation. The total of financial donations is reported
as a percentage of net profit on group level. The main component of the total amount is the amount of donations by local Rabobanks. Manpower and
knowledge invested in local communities are measured as well but not included in the KPI report because the data has been captured in such a way
that it is difficult to verify and consolidate into a group-wide number.
Terminology
Cooperative dividend - the part of of the profit that is reinvested back into the community
Community funds are funds created by Rabobank entities for funding activities that create a positive social contribution to society
KPI 2
By 2020, we will be supporting 1,000 new local collective community-based initiatives achieving business success, including 500 in the Netherlands
and 500 in developing countries.
Methodology
Currently we measure and report the number of new collective local community initiatives that have been supported by financing, time investment
or knowledge by local Rabobanks in the Netherlands and through the Rabobank Foundation. In 2017 we will start to measure the number of new
collective local community initiatives supported through Rabo Development. The data is reported on an annual basis, evaluated and aggregated to
group level.
Terminology
Collective local community initiatives are measured and reported based on five criteria:
a) the initiative is supported by Rabobank with networking knowledge or financial solutions;
b) the initiative is founded by citizens and/or companies to achieve a local impact;
c) the initiative is dedicated to achieving a positive social and/or environmental impact;
d) the initiative has a solid economic base
e) the initiative is founded on a formal legal structure (or is in its start-up phase), such as (but not restricted to) a cooperative structure.
Sustainable agriculture and food supply
KPI 3
We define our vision of how to improve the sustainability of the agricultural value chain for soy, palm oil, sugarcane, forestry, beef, dairy, fish, coffee,
cocoa and bio-materials. We share our vision and actively participate in roundtables or similar initiatives to accelerate the process of making these
agricultural value chains more sustainable and work together with our clients to integrate the outcomes of these dialogues into their business
operations and achieve commercial success at the same time.
Methodology
We measure and report the number of supply chain visions and/or position papers for each selected value chain. We publish these papers on our
corporate website and share this knowledge with our customers. Position papers are updated regularly.
Terminology
Our visions on agricultural chains which we define contain Rabobank's forward looking perspectives and criteria, how to improve and accelerate
sustainability with clear steps on the most important sustainability themes in a specific value chain. Further it contains how Rabobank seeks to
contribute to these ambitions. Visions are being developed since 2016 as part of our Sustainably Successful Together ambition - our contribution to
sustainable development until 2020. Previously Rabobank had published positioning papers on agricultural supply chains. These positioning papers
contain our policies and expectations on specific value chains. These have been incorporated in our Sustainability Policy Framework, available on
rabobank.com.
KPI 4
We actively contribute to improving agricultural value chains due to sustainability being an integral part of our philosophy about sectors. We share
this knowledge in dialogue with our clients.
Methodology
In 2016 we changed the methodology for measuring this KPI. In 2015 we reported the number of initiatives by local Rabobanks aimed at increasing
sustainability of agricultural value chains and the number of customers local Rabobanks were talking to about making food agri value chains more
sustainable. As of 2016 we report the number of events/podiums organised by Rabobank worldwide aimed at improving sustainability in agricultural
value chains.
Terminology
Agricultural value chains are referring to well-functioning and sustainable food chains starting with farmers and aimed at providing sufficient and
high-quality food for everyone. More detail on this topic can be found in our Banking for Food policy. See https://www.rabobank.com/en/about-
rabobank/food-agribusiness/vision-banking-for-food/index.html
Corporate Clients
KPI 5
Rabobank gives priority to sustainability leaders in financing and will double the volume of the services provided to them.
Methodology
We measure and report the total of sustainable finance, sustainable funding and other sustainable services worldwide. Giving priority to sustainable
leaders is a rule of conduct which is not measured in a reporting value. We aim to double the volume of sustainable loans.
Terminology
Total Sustainable financing is based on sustainable sectors, asset classes or certified companies including green assets (also related to our Green
and Sustainable bond framework and included verifiable criteria). Sustainable funding includes Rabo Green Bonds issued by Rabobank, Rabo Green
Savings and Rabo Green Deposits issued by the Rabo Groenbank and Rabo Socially Responsible Deposits. Transaction volume of other services
include financial transactions supervised by Rabobank (Including Green Bonds, IPOs and M&A transactions).
KPI 6
The percentage of corporate clients indicating they were satisfied with how sustainability was discussed in client meetings increases annually.
Methodology
We measure and report the progress of this KPI based on internal annual client satisfactory surveys. These surveys are designed to collect information
about the services provided by Rabobank and the perception and appreciation by the client in the Netherlands. Each local Rabobank can decide to
participate or not in the survey. The survey includes a variety of different aspects, sustainability is one of these aspects. The percentage is based on the
number of clients who are 'quite satisfied' and 'reasonable satisfied'.
Terminology
Sustainability in client meetings means that we enter into active dialogue with clients about making their business processes and living and working
environment more sustainable.
KPI 7
By 2020, all our corporate clients will have maximum access to the sustainability expertise they require, and the sustainability performance of all our
larger corporate clients will be recorded in a client photo.
Methodology
We first implemented the client photo in 2015 in the Netherlands and expanded the client to our international wholesale clients in 2016. We started
with clients with an exposure EUR 1 million, during 2016 we also started to apply the client photo for clients with an exposure below the Eur 1
million threshold. In the Annual Report we include a table that shows the number of client photos and exposure EUR 1 million) for each client photo
category. We also included a section that shows the total number of client photos of local Rabobanks in the Netherlands.
Terminology
The client photo measures the sustainability performance of our clients. We have defined 5 performance level categories (a, b, c, d+ and d).
In the Annual Report a definition of the categories is included.
127 Appendices: appendix 2 Sustainably Succesful Together
