About this
Report
Chairman's
Foreword
Corporate
Management Report Appendices Governance
Consolidated Financial Company Financial
Statements Statements
The world of financing and lending is always changing. Plenty
of individuals and organizations are prepared to lend risk/
venture capital to third parties. For that reason, we are
developing crowdfunding initiatives.
Regulators and new regulations are having a growing impact
on the ways banks can provide their services. Regulatory
impact is a strategic risk. Refer to the Risk Management
chapter.
We have a diversified loan portfolio in different sectors and
countries. Our Risk Appetite Statement sets sector and country
limits that we use to closely monitor the sectors and countries
in which our clients operate.
Global population growth, aging and the growing middle class
will change demand for food both in volume and quality. This
will be an important growth driver for our clients who provide
the world with food and we will continue to support them.
Climate change is a bitter reality. Despite the intentions and
ambitions of the Paris climate agreement, the world is
warming up, posing risks for the environment and the food
security of communities. We use the UN Sustainable
Development Goals as guidelines in our efforts to reduce
hunger and poverty in the world. Banks have been asked to
take responsibility to mitigate these threats. Rabobank is
therefore participating in different initiatives such as the World
Economic Forum and the Dutch Climate Agreement talks.
Sustainability is a strategic risk. For more information, refer to
the Risk Management chapter.
The global trend of urbanization continues unabated,
especially in the Netherlands. Some 55% of the world's
population currently live in cities and this number is likely to
rise to 68% by 2050. This poses the risk of overheating the
housing market. As a large mortgage provider in the
Netherlands, Rabobank closely monitors this trend.
Geopolitical unrest is undiminished and trade wars are
reshaping the global economy. The economy is a strategic
risk. For more information, refer to the Risk Management
chapter.
Vulnerability and uncertainty in society are rising. Society
needs the business community in general, and banks in
particular, to show social responsibility.To address these issues
we kick-started major programs inspired by our mission
'Growing a better world together.'
For more detailed information about Rabobank's Risk
Management, please refer to the Risk Management chapter.
Value Creation Inputs
Our value creation model shows the key inputs we use: capital
(financial capital), employees (human capital), knowledge, IT
(intellectual capital) and partnerships (social capital). These are
pivotal inputs to our business model, along with our mission,
vision, strategy, and our products and services. Finally, the output
and impact section of the value creation model is structured
around our strategic cornerstones. For more detailed information,
see the downloads.
Human Capital
In carrying out our strategy, Rabobank remains focused on human
capital and empowering employees by encouraging continuous
learning (training expenses EUR 1,906 per FTE), craftsmanship and
entrepreneurship. Rabobank employs over 41,861 fulltime
employees and believes that diversity improves performance and
creativity within the bank. For more detailed information, and for
risks and dilemmas concerning Fluman Capital, see the chapter
Empowered Employees.
Social Capital
As a customer-focused cooperative bank with 1.9 million
members and 8.3 million customers, Rabobank takes its role as a
socially responsible bank seriously. We participate in many local,
sector and supply chain initiatives; we support both businesses
and private customers and we actively promote sustainability.
Rabobank allocated 48.8 million euro of our net profit to local
community initiatives on a notfor-profit basis in the Netherlands.
On top of that Rabobank announced a partnership with UN
Environment (AGRI3Fund) for clients to stimulate forest
protection and sustainable agriculture. We are also a member and
co-chair of the Climate Smart Agriculture Working Group of the
WBCSD.
We engage with stakeholders who directly and indirectly affect
our organization. We are committed to a strategic, constructive
and proactive dialogue with all our stakeholders: clients,
members, employees, investors, non-government organizations,
government agencies, media, politicians, supervisory bodies,
other banks, fintechs and start-ups. These are the most influential
stakeholder groups connected with our organization. We engage
with them through member councils, client feedback platforms,
client and employee surveys, participation in sector initiatives,
and other means. Our Managing Board Members meet with
clients, employees, politicians and other stakeholders to discuss
ourstrategic progress, receive theirfeed back on ourcontribution
to society and debate developments in the financial sector, both
generally and in specific relation to Rabobank. For more detailed
information, and for risks and dilemmas concerning Social
Capital, see the Meaningful Cooperative chapter.
Intellectual Capital
Rabobank's intellectual capital input encompasses more than 120
years of banking knowledge and expertise in Food Agri and
other sectors. We use our knowledge base to offer clients
innovative products and services in line with ongoing economic
Annual Report 2018 - Management Report
10