Contents Foreword Management report Corporate governance
Expert opinion
The expert opinion is an enhanced risk and opportunities
assessment, supported by the central sustainability department.
A risk-based method is applied to select which clients receive
this extra support. Those selected for this procedure are clients
either do not comply with our sustainability policies, attract
considerable negative media attention on sustainability topics,
or are large clients active in countries and industries facing
high sustainability risks or controversies. The expert opinion is
provided during the credit process, which has also enhanced
our decision-making.
Client engagement
We regularly have discussions with all our clients about
sustainability. When the explicit aim of these discussions is
to improve the sustainability impact our clients have on the
ground, we call this client engagement. Rabobank initiates such
a client engagement process after receiving information that
may indicate that a client's sustainability performance is not in
line with our sustainability policy.
The sustainability department decides which engagements
should be undertaken, based on a fixed set of criteria.
As a general rule, staff responsible for the clients in question
are in charge of leading the client engagement dialogues.
Where necessary and beneficial to the process, staff with
specific sustainability knowledge provide support or take
the lead. The central department oversees and manages the
progress and helps to determine the results we wish to achieve.
In 2016, the central sustainability department was involved in
engagements regarding 88 issues with 47 clients in the area
of environment, human rights, labour rights and governance.
Our engagements have contributed to the upgrading of
housing facilities for employees and the restoration of forests
and other high value conservation areas that had been
damaged. (See Appendix 4 for more details).
ESG opportunities for Retail Clients
In 2016 we further developed the theme of sustainability in
financial services for retail customers, paying special attention
to energy efficiency in the housing market and expanding the
range of sustainable investment products. Rabobank strives to
align its products and services with the customers' sustainability
requirements.
Rabo green mortgage
One product that exemplifies our sustainability efforts is the
successful launch of a 'green mortgage', which we developed
with our Rabo Green Bank. The green mortgage offers retail
customers a 0.5% discount on the interest rate when they buy
a new, very energy efficient house. To qualify, houses must be
valued at more than EUR 150,000 and meet the requirements
Consolidated Financial Statements Company Financial Statements Pillar 3
regarding the level of energy efficiency and 100% use of
sustainable timber.
This green mortgage encourages construction companies to
build more energy efficient houses. In that case the business
case for 'Nul-op-de-meter' houses (house with almost no
energy costs) would be more attractive and sustainable timber
is used in the projects.
Slim Verbouwen ('Smart Renovation')
Other efforts to promote energy economisation in the housing
market in 2016 included the organisation of more so-called
Slim Verbouwen ('Smart Renovation') events in 2016. On every
information market around 18 corporate customers participated
last year which then drew between 50 and 270 retail customers.
During these events our corporate customers can showcase
their products and services and connect with our retail
customers with an eye to helping them make sustainable home
improvements.
Current energy labels of Rabobank mortgage portfolio
in the Netherlands
Energy labels in the mortgage portfolio
Energy
labels
of houses
funded by
Rabobank
in 2015
relative
discrepancy
of houses
funded by
Rabobank
in 20162
of houses in
the Netherlands3
A
15%
+1%
16%
9%
B 17% -1% 16% 16%
C
26%
0%
26%
31%
D
19%
-2%
17%
22%
E
11%
0%
11%
12%
F
7%
+1%
8%
7%
G
5%
+1%
6%
3%
Total
100%
0%
100%
100%
Amount mortgage portfolio
Total loan amount
Total mortgage portfolio EUR 195.9 billion
'A' energy labels (16.4% of total) EUR 32.1 billion4
Climate mortgages EUR 81.9 million
1 In 2010 approximately 10% of the mortgage portfolio has
a confirmed energy label.
2 In 2016 approximately 15% of the mortgage portfolio has
a confirmed energy label.
3 Confirmed energy labels: Rijksdienst voor Ondernemend Nederland.
4 In 2016 approximately 15% of the mortgage portfolio has
a confirmed energy label. This is extrapolated over the total
mortgage portfolio. To come to the total corresponding loan value
an assumption is taken that the loan value per mortgage financed
house in all energy labels is the same.
80 Rabobank Annual Report 2016
