Contents Introduction Management report Appendices Corporate governance Consolidated Financial Statements Company Financial Statements Empowered employees KPI 5: Stimulating diversity and equality Methodology Terminology Gender diversity is the percentage of women in the Supervisory Board, the Managing Board, Managing Board -1 and Managing Board -2. We report and measure the number of males and females based upon headcount as reported from Rabobank's human resources information management system at the end of the year. Gender diversity is measured among the Supervisory Board, the Managing Board and the two tiers below the Managing Board Diversity is a vital and integral part of our strategic objectives. To enhance career opportunities for women, Rabobank offers diverse internal and external activities. These include sponsorship of talented women by senior executives, cross-mentoring and coaching programmes. Our Diversity Board meets each quarter to monitor policy compliance and progress on our targets. KPI 6: Developing human capital and talent Management Methodology Terminology OHI measures health by surveying on agreement and alignment across large, decentralised organisations to determine how different employees, business functions, geographies, engage with their company's strategic priorities We measure and report OHI by means of an online survey performed by a third party. In 2017 the survey was held amongst a statistical sample of 30% of our employees, a percentage which has been validated as representative. In 2016 a survey was held amongst all our employees. OHI is measured as the percentage of employees who answer'favourable' and 'very favourable'to questions. Rabobank aims to be a more inventive, decisive and outward-looking organisation.To gauge where we stand in this strategic and cultural transition, we regularly measure employee culture and engagement. Reputation KPI 7: Increase reputation Methodology Terminology Reptrak® measures the overall reputation across seven key dimensions, based on four questions: esteem, admire, trust, feeling. We measure and report RepTrak® by the RepTrak® Monitor, which is a tool of the Reputation Institute. In 2017 Rabobank participated in the RepTrak® reputation study that tracks 23 attributes of reputation grouped around seven reputation dimensions that appear to be most effective in getting stakeholders to support the company. The reputation was measured through an online survey among a representative sample of the general public in the Netherlands. A solid and sound reputation is essential to increasing and maintaining stakeholders' fundamental trust in the bank. RepTrak® is a standard for reputation measurement. Their annual rankings are based on each company's 'Pulse' - the emotional connection consumers have to a brand. The results are further broken down into seven dimensions of rationality, which define why consumers feel the way they do. The dimensions are Products/Services, Innovation, Workplace, Governance, Citizenship, Leadership, and Performance. Supporting vital communities KPI 8: Community not- 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 for-profit investments Rabobank Foundation. The Rabobank Foundation is a separate entity. Methodology Terminology We measure and report the granted financial donations by Rabobank Group and on the granted donation and loans by Rabobank Foundation (this includes the re-use of past contributions by Rabobank Group). The Foundation is mostly active abroad. The total of our financial investments is reported as a percentage of net profit on group level. The main component of the total amount is the amount of donations by our local Rabobanks. Manpower and knowledge invested in local communities are measured and monitored as well, but not included in the KPI report. Cooperative dividend - the part of the profit that is reinvested back into the community. Investments consists of both granted donations as well as granted loans. Community funds are created by Rabobank Group for funding activities that create a positive social contribution to society KPI 8: New local By 2020, we will be supporting 500 new local collective community-based initiatives achieving business success in the Netherlands collective community- (cumulative) based initiatives achieving business success 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. 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. Rabobank Annual Report 2017 - Appendices 105

Rabobank Bronnenarchief

Annual Reports Rabobank | 2017 | | pagina 106