Contents Introduction Management report Appendices Corporate governance Consolidated Financial Statements Company Financial Statements
Sustainability performances of clients of wholesale
offices (exposure 1 mio EUR
Number of clients per sector
Total
A
B
C
D+
D
Food and agri
266
55
168
39
4
0
Trade, industry and services
1,063
218
725
103
10
7
Other and unclassified
84
17
57
10
0
0
Total in numbers
1,413
290
950
152
14
7
Total in
100%
21%
67%
11%
1%
0%
Receivables from clients
in millions of euros
Total loans and advances
Total in%
Total A
53,946 11,395
100% 21%
36,990
69%
C
4,260
D+
1,070
2%
D
232
0%
Category Criteria
A A customer is in the highest category if it is among the most
active companies in sustainability in its peer group. These
customers are (pro)actively engaged in preserving their core
business, while also looking at innovative solutions.
B The majority of our customers are in this category. They
recognise that sustainability is an issue that they have to
take into account in their business and they respond to
demands from customers or from the market. Working on
the sustainability of the core activities is done mainly from
an economic perspective. For example, they seek a balance
between investments and fast returns.
C Customers in this category see sustainability as a necessary
requirement imposed on them via (inter)national laws and
regulations. Sustainability is seen as an increase in costs and
therefore adopted only when benefits are proven or regulations
amended.
D+ This client does not (yet) meet Rabobank's sustainability policy
on one or more points or has not responded adequately to
key questions. Specific agreements are made about a possible
solution and timelines are established. Once the customer
meets the sustainability policy of Rabobank, it is classified in
category A, B or C.
D The customer does not meet Rabobank's sustainability policy
(any more) on one or more points or does not give Rabobank
insight into their sustainability. Here no specific arrangements
are made within certain periods or the client does not respect its
commitments. Financing of prospects in category D will not be
approved. The relationship with existing customers in category
D will be phased out.
In 2017 Rabobank covered 98.4% of its portfolio of clients with
an exposure of over EUR 1 million with a client photo in the
Netherlands. We also expanded the client photo coverage
for our Wholesale Clients. This part of the client photo covers
72.5% of the corporate clients from international offices with
an exposure over EUR 1 million. What stands out is the high
percentage of frontrunners in our Wholesale domain, 21%.
This matches our ambition of being the preferred bank for
leading sustainable Food Agri Wholesale companies. In 2017
Rabobank started implementing the client photo process for
the final category of clients; our rural clients (with an exposure
of over EUR 1 million). The sustainability performance of rural
clients served in Brazil, Chile, Australia, New Zeeland and in our
Rabo Agri Finance (RAF) office were assessed. The assessment of
Clients of Rabobank National Association (RNA) will be finalised
in 2018.
Expert Opinion and Engagement
Companies that do not comply with our sustainability policy
may be having a serious negative impact on people or the
environment. We initiate a client engagement process with
such clients in order to bring them back into compliance
and make sure the impact is redressed. We initiate a client
engagement process based on a set of fixed criteria when
we receive information indicating that a client's sustainability
performance is not in line with our sustainability policy.
In 2017, the central Sustainability Department engaged
with 56 clients in the fields of environment, human rights,
labour rights and governance. Refer to appendix 4 for more
information. We have developed a procedure for enhanced
analysis of clients active in countries and industries with major
sustainability risks or controversies.This procedure enables
us to assess the sustainability performance in greater detail
during the lending process. The resulting 'expert opinion'
which provides a deeper understanding of our clients risks and
opportunities for our clients and informs our decision-making.
Impact Loan for SMEs
To facilitate the transition to a more sustainable and circular
economy, we wish to increase the delivery of products to clients
we consider to be sustainable frontrunners. An example is our
Impact Loan.This was developed and funded in collaboration
with the European Investment Bank (EIB) to encourage small
and medium-sized businesses in the Netherlands to make
sustainable investments.The loan enjoyed continued success in
2017 and Rabobank received a third tranche of EUR 200 million
from the EIB.
Rabobank Annual Report 2017 - Management report
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