About this Report Chairman's Foreword Corporate Management Report Appendices Governance Consolidated Financial Company Financial Statements Statements increase of 19% on 2017. For the Netherlands as a whole, Rabobank scanned 99% of our clients with an exposure of over EUR 1 million. As of 2018, 24% of our Wholesale clients have achieved the highest possible rating (A-level). By the end of 2018, 5% of our SME and mid-sized clients in the Netherlands achieved this level. In 2019 we will continue to encourage more clients to improve their sustainability performance. We will also keep supporting sustainable frontrunners, by offering, for instance, more advantageous terms for their financing. Please refer to Appendix 3 for more details figures on the client photo for Wholesale clients and clients of local Rabobanks. To facilitate the transition to a more sustainable and circular economy, we are increasing the scope and number of financial solutions for clients we consider to be sustainable frontrunners. For example, in 2018 we extended our Impact Loan for SMEs with a fourth tranche of EUR 250 mil lion from the European Investment Bank (starting in 2015, the first three tranches were EUR 350 million in total). We also introduced deal coaches who support clients and commercial colleagues in optimizing our lending to circular businesses. Likewise, we increased the number and total value of the Sustainable and Green Revolving Credit Facilities (RCF), which we mandated in 2018.These syndicated loans embed environmental and social criteria in the credit arrangements. For example, Rabobank has been appointed the Documentation Agent and Sustainability Coordinator for the Sustainable RCF as the first company in the Dutch construction sector that linked sustainability performance to the terms of its banking credit facility. When clients are not able to comply with our sustainability policies we initiate a client engagement process based on a set of fixed criteria. In 2018, the central Sustainability Department conducted such processes with 69 clients. The aim is to achieve compliance within an ambitious but realistic time frame. Most clients engaged in actions to ensure compliance with our sustainability policies, a few clients were not able to comply, so we terminated those relationships. See appendix 4 for more information. Dialogue with Government Authorities At a policy level we are intensifying our dialogue on climate change with key external stakeholders. Together with the Dutch Banking Association (NVB), the European Association of Cooperative banks (EACB) and the European Banking Federation (EBF) we are closely following and actively engaging in the debate in Brussels on the Sustainable Finance Action Plan launched by the European Commission in March 2018. In the reporting year we also held consultations with the European Commission, the European Parliament, members of the Dutch Parliament, the Dutch Ministry of Economic Affairs, the Dutch Central Bank and the Dutch employers association VNO NCW. We are also actively involved in the Task Force on Climate-Related Financial Disclosures (TCFD)and the Platform Carbon Accounting Financials (PCAF), in order to explore the possibilities for developing a systematic measurement of the carbon footprint of banks' balance sheets. As such, we are prepared and informed in case of regulation changes regarding transparency requirements for carbon footprints on banks' balance sheets. Sustainability Program and Framework Update Rabobank's sustainability program, Sustainably Successful Together (SST), commits us to integrating sustainability into all relevant policies, processes, products and services. A report detailing our progress can be found here. We have translated the ambitions outlined in SST into our Sustainable Policy Framework, which sets our sustainability standards for our business and financing relationships. The framework covers the implementation ofthe precautionary principle (GRI 102-11). We also do not offer products or services that are banned in certain markets (GRI 102-2). In 2018, we updated the framework completely.The framework now contains, for instance, a separate and extensive Fluman Rights Policy, which includes a description of Rabobank's commitment to ensure a mitigation of potential human right risks as much as possible. These risks could be present when engaging with our employees, our suppliers and our customers. Therefore, this policy is also integrated in our Client Photo scan. We respect and uphold international human rights as described in the United Nations Declaration of Fluman Rights and are guided by the United Nations Guiding Principles on Business and Fluman Rights. Specific high-risk sectors are being further assessed with other stakeholders in the Dutch Banking Agreement. More details can be found in the Sustainably Successful Progress Report. F&A Supply Chains In 2018, we continued to build on our strong partnership with the Worldwide Fund for Nature. Building on our successes in Chile (farmed salmon), Brazil (soy), India (sugarcane), the Netherlands (dairy) and Indonesia (Palm oil), in 2018 we started defining our new strategy for the coming years. Our shared goal is to find and exploit opportunities to create sustainable F&A supply chains in cooperation with ourclients. Read more at WWF's website. Annual Report 2018 - Management Report 34

Rabobank Bronnenarchief

Annual Reports Rabobank | 2018 | | pagina 36