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Triodos Bank 2017 Scorecard

The scorecard is divided between basic requirements, quantitative factors supplemented with brief explanations, and qualitative elements. These sections provide details of a bank’s mission and transparency; builds on this with carefully selected data that highlights the extent to which a bank is engaging in sustainability as its core activity; and explains how a sustainability agenda translates into the everyday work of a bank and its co-workers.

Basic requirements

Basic Requirements

Show the Basic Requirements

Quantitative factors

Quantitative Factors

Show the Quantitative Factors

Qualitative elements

Qualitative Elements

Show the Qualitative Elements

Regulated financial institution

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The bank provides evidence that it is a regulated financial institution including:

  • Where it operates
  • Under what regulatory framework it operates
  • Evidence of client deposit and financing relationships

Triodos Bank is a regulated financial institution with branches in The Netherlands, where its head office is based, Belgium, United Kingdom, Spain, Germany and representation in France where Triodos Finance acts as an exclusive intermediary for Triodos Bank N.V.

Triodos Bank N.V. falls under the regulatory framework of the Dutch Central Bank (DNB). All Triodos Bank entities, including all its branches are supervised by the DNB. Triodos Bank falls under the Dutch deposit guarantee scheme, effectively protecting savings and deposits up to EUR 100,000.

Triodos Bank offers a full set of banking services in most of the countries where it operates and, in all of them, takes deposits, makes loans and provides cash payment services.

Mission Statement

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Mission Statement as published on its website or in any official document with specific relevant references to it value-based banking strategies

Triodos Bank is in business to:

  • Help create a society that promotes people’s quality of life and that has human dignity at its core,
  • Enable individuals, institutions and businesses to use money more consciously in ways that benefit people and the environment, and promote sustainable development,
  • Provide customers with sustainable financial products and high-quality service.

Triodos Bank is Europe’s only pan-European values-based bank.

There is more on Triodos Bank’s mission statement on our website.

Reporting Transparency

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Annual Reports must be publicly available

Further proof of engagement in transparent reporting practices is encouraged

Triodos Bank publishes details of all its loans in every country where it operates in a range of ways: including via ‘Know Where Your Money Goes’, an online resource on all its websites, via a mobile app (the first app in the world to connect a bank’s customers with the enterprises their savings finance), and through various on and offline communications.

Stories and data are reported in Triodos Bank’s annual report, including interviews with entrepreneurs borrowing from Triodos Bank and senior co-workers, detailing the impact of its work.

As an institution that starts with the positive impact it can make Triodos Bank has always produced a report which integrates its financial and non-financial impact. Its impact data, as well as its financial data, is reviewed and assured by auditors. Triodos Bank played a significant role in developing the GRI reporting guidelines, the most widely used sustainability framework in the world, and, in 2016, has moved on to the GRI Standards ahead of an obligation to do so in 2018. It was the first bank in the world to use the GRI guidelines, the first to produce an environmental report and the first to combine an environmental and social report.

It has co-created and is an active stakeholder in the Principles for Investors in Inclusive Finance. It sits on the Investors Council of the Global Impact Investing Network. Triodos was the first pan-European bank to be registered as a B Corporation, certifying that it meets rigorous standards of social and environmental performance, accountability and transparency.  It has embraced the UN Sustainable Development Goals in its reporting and business, among other reference frameworks, it’s reporting is guided by the International Integrated Reporting Council reporting framework.

Triodos Investment Management’s funds publish annual reports. Part of its approach to transparency is to host AGMs for their investors, providing open access to the organisation’s co-workers, and an opportunity to ask questions about the content of its reporting among other things.

These factors are related to the Principles of Values-based Banking and provide insight into three key elements of a bank’s activity linked to its:

  • financial viability,
  • focus on the real economy and
  • focus on a triple bottom of line of people, planet and prosperity

Bank Resiliency through Earnings – 3 year Average Return on Assets

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Return on Assets tell you how profitable a bank is. It is a good measure of a bank’s operating performance relative to the total amount of money it manages. This is important because values-based banks need to be resilient financially to deliver long term, positive impact.

It’s also reasonable to assume that if a bank’s profits are excessively high they may be taking inappropriate risks and may be enjoying unreasonable profits at the expense of their customers.

To really understand how profitable a bank is, and to avoid comparing ‘apples with oranges’, it’s important to compare a bank’s profitability with other banks in the same market. Therefore this measure is compared with a peer group selected and transparently described by the bank.

3-year Average Return on Assets:

Return on Assets 2017: 0.39%

Return on Assets 2016: 0.45%

Return on Assets 2015: 0.48%

Explanation: Return on Assets figures tell you how profitable a bank is and are a good measure of a bank’s operating performance. This is important because sustainable banks need to be resilient financially, in order to deliver long term, positive impact.

It’s also reasonable to assume that if a bank’s profits are excessively high they may be taking inappropriate risks and may be enjoying unreasonable profits at the expense of their customers.

Market Comparison – 3 Year Average Return on Assets

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Return on Assets tell you how profitable a bank is. It is a good measure of a bank’s operating performance relative to the total amount of money it manages. This is important because values-based banks need to be resilient financially to deliver long term, positive impact.

It’s also reasonable to assume that if a bank’s profits are excessively high they may be taking inappropriate risks and may be enjoying unreasonable profits at the expense of their customers.

To really understand how profitable a bank is, and to avoid comparing ‘apples with oranges’, it’s important to compare a bank’s profitability with other banks in the same market. Therefore this measure is compared with a peer group selected and transparently described by the bank.

3-year Average Return on Assets:

Return on Assets 2017: n.a*

Return on Assets 2016: 0.40%

Return on Assets 2015: 0.34%

Explanation: To really understand how profitable a bank is, and to avoid comparing ‘apples with oranges’, it’s important to compare a bank’s profitability with other banks in the same market.

While Triodos Bank has offices in five countries, as a market comparison we have considered other banks domiciled in The Netherlands. Average ratios have been weighted by balance sheet size (giving greater weight to larger banks). We have only used year end assets data (and not a daily, monthly or quarterly average of assets because these figures are not available). The figure for 2016 is not available currently, but we will update it as soon as it is.

* The figure for 2017 is not available currently, but we will update it as soon as it is.

Bank Resiliency through Capital – Equity to Total Assets

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The Equity to Total Assets ratio tells you how strong a bank is. The Equity of a bank represents the money invested by its owners to cover any losses it may incur. This ratio uses the total balance sheet of the bank, which means it provides a transparent and conservative measure of a bank’s resiliency. This is important for values-based banks which are focused on lasting benefits to society, and so want to develop strong capital positions that make them stronger over the long-term.

Other measures, such as risk weighted assets capital ratios, can be used for the same purpose but they are both more complex and less transparent, so the Scorecard has chosen to use Equity to Total Assets. As a guide the Scorecard currently recommends this level to be at 8% or higher.

Equity to Total Assets 2017: 10.2%

Equity to Total Assets 2016: 10.0%

Equity to Total Assets 2015: 9.5%

Explanation:  The Equity to Total Assets ratio tells you how strong a bank is. It includes the total balance sheet, which means it provides a transparent and conservative measure of a bank’s resiliency. This is important for values-based banks which are focused on lasting benefits to society, and so want to develop strong capital positions that make them stronger over the long-term.

Other measures, such as risk weighted assets, are used for the same purpose but they are both more complex and less transparent, so the scorecard has chosen to use Equity to Total Assets instead.

As a guide, a benchmark figure of 8% is significantly higher than regulatory requirements. Triodos Bank’s equity to total assets figure has consistently been well above this level

Bank Resiliency through Asset Quality – Low-quality Assets to Total Assets

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Low quality assets (such as loans to enterprises that struggle to repay them), at levels significantly above the market average, are generally a bad thing for banks because they represent the risk of financial losses in the future.

Values-based banks should have strong customer relationships, and have a deep understanding of their activities and the sectors they work in. Together this will limit the chances of loans and investments going wrong and should make working through challenges with clients easier when problems do occur. Meaningful relationships with customers and precisely this expertise, is at the core of a values-based approach to banking.

The quality of a bank’s assets should be compared with banks in the same market to understand how it is doing relative to market conditions. Therefore this measure is compared with a described peer group.

Low-quality Assets to Total Assets 2017: 1.8%

Low-quality Assets to Total Assets 2016: 1.9%

Low-quality Assets to Total Assets 2015: 2.5%

Explanation: Low quality assets (such as loans to enterprises that struggle to repay them), at levels significantly above the market average, are generally a bad thing for banks because they represent the risk of financial losses in the future.

Values-based banks should have strong customer relationships, and have a deep understanding of their activities and the sectors they work in. Together this will limit the chances of loans and investments going wrong in the first place, and should make working through challenges with clients easier when problems do occur. Meaningful relationships with customers and precisely this expertise, is at the core of Triodos Bank’s approach to banking.

Triodos Bank’s low-quality assets to total assets ratio is below the market average in all the countries where it operates.

Market Comparison – Low-quality Assets to Total Assets

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Low quality assets (such as loans to enterprises that struggle to repay them), at levels significantly above the market average, are generally a bad thing for banks because they represent the risk of financial losses in the future.

Values-based banks should have strong customer relationships, and have a deep understanding of their activities and the sectors they work in. Together this will limit the chances of loans and investments going wrong and should make working through challenges with clients easier when problems do occur. Meaningful relationships with customers and precisely this expertise, is at the core of a values-based approach to banking.

The quality of a bank’s assets should be compared with banks in the same market to understand how it is doing relative to market conditions. Therefore this measure is compared with a described peer group.

Low-quality Assets to Total Assets 2017: n.a.*

Low-quality Assets to Total Assets 2016: 2.06%

Low-quality Assets to Total Assets 2015: 2.16%

Explanation: The quality of a bank’s assets should be compared with banks in the same market to understand how it is really doing.

Triodos Bank’s low-quality assets to total assets ratio compares favourably with the market average.

*The figure for 2017 is not available currently. We will update it as soon as it is.

Bank Resiliency through Client Based Liquidity – Client Deposits to Total Assets

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Banks finance their assets (such as loans, investments and their wider activities) with money that is:

  • deposited with them by customers,
  • and/or borrowed from others (mostly other banks) and then lent on to clients,
  • or sourced from investors.

A large amount of borrowing from the markets to finance a bank’s activity is, by definition, riskier because markets are more volatile. Banks are both stronger and more values-based when more of the money they use to finance their activity comes from customers.

High levels of funding from customer’s deposits also suggests a strong connection with clients and the real economy – both important elements of a values-based bank. Ideally 75% of a bank’s assets are funded through clients.

Client Deposits to Total Assets 2017: 88.1%

Client Deposits to Total Assets 2016: 88.4%

Client Deposits to Total Assets 2015: 88.7%

Explanation: Banks finance their assets (such as loans, investments and their wider activities) with money that’s either:

  • deposited with them by customers,
  • and/or borrowed from others (mostly other banks) and then lent on to clients,
  • or sourced from investors.

A large amount of borrowing from the markets to finance a bank’s activity is, by definition, riskier because markets are more volatile. Banks are both stronger and more values-based when more of the money they use to finance their activity comes from customers.

High levels of funding from customer’s deposits suggests a strong connection with clients and the real economy – both important elements of a values-based bank.

Triodos Bank funds all its lending from customer’s deposits.

Assets Committed to the Real Economy to Total Assets

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Values-based banks are strongly and directly connected to financing the real economy because that’s where they can have a positive impact on people’s lives and safeguard the environment.

Real economy assets in a values-based bank should, therefore, be relatively high. By the same token financial economy assets should be relatively low because their impact on people’s lives is, at best, indirect. The Scorecard seeks to have the level for this ratio above 50% and ideally close to 65%.

Assets Committed to the Real Economy to Total Assets 2017: 81.1%

Assets Committed to the Real Economy to Total Assets 2016: 79,1%

Assets Committed to the Real Economy to Total Assets 2015: 81.7%

Explanation: Values-based banks are strongly and directly connected to financing the real economy because that’s where they can have a positive impact on people’s lives and safeguard the environment. Triodos Bank lends and invests in the real economy for this reason.

Real economy assets in a values-based bank should, therefore, be relatively high. By the same token financial economy assets should be relatively low because their impact on people’s lives is, at best, indirect.

Triodos Bank targets a ratio of loans (all of which are in the real economy) to deposits of 65 to 70% to make sure it always has enough money available (or liquidity) to support its clients in case of disruptions in the market. Where this excess liquidity is invested is subject to an ethical screen. In 2016 it was deposited with ‘neutral’ organisations, like Dutch municipalities.

Revenues from the Real Economy to Total Income

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If a bank is earning more of its revenues from the real economy, it is both making more of a difference to people’s lives and is a more resilient institution.

Revenues from the financial economy tend to be more volatile, are more removed from most people’s lives, are highly unlikely to be sustainable and mean a bank is less resilient over the long term. Ideally 75% of a bank’s revenues will be from the Real Economy.

Revenues from the Real Economy to Total Income 2017: 90.4%

Revenues from the Real Economy to Total Income 2016: 86.9%

Revenues from the Real Economy to Total Income 2015: 83.9%

Explanation: If a bank is earning more of its revenues from the real economy, it is both making more of a difference to people’s lives and is a more resilient institution.

Revenues from the financial economy tend to be more volatile, are more removed from most people’s lives, are highly unlikely to be sustainable and mean a bank is less resilient over the long term.

Assets Committed to the Triple Bottom Line to Total Assets

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This figure provides the best indication of a bank’s commitment to a values-based banking model. Triple Bottom line assets don’t just mean assets in the real economy. They specifically refer to money invested by a bank in individuals and enterprises that deliver positive social, environmental and economic benefits to society.

Not all intermediated money will be committed, however, because some liquidity needs to be available for the bank to support its clients in case of disruptions in the market. Therefore the Scorecard targets this factor to be between 25% and 55%.

Assets Committed to the Triple Bottom Line to Total Assets 2017: 76.8%

Assets Committed to the Triple Bottom Line to Total Assets 2016: 75.5%

Assets Committed to the Triple Bottom Line to Total Assets 2015: 75.8%

Explanation: This figure provides the best indication of a bank’s commitment to sustainability. Triple Bottom line assets don’t just mean assets in the real economy. They specifically refer to assets focused on positive social, environmental and economic benefits.

Not all assets will be committed, however, because some liquidity needs to be available for the bank to support its clients in case of disruptions in the market such as repaying savings deposited with it, for example. This figure currently relates to assets on the balance sheet only.

Leadership

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Qualitative Elements provide substantial and important information on a bank’s value-based banking approach and results. This information is used to provide a comprehensive evaluation of a bank’s efforts, capabilities and performance. The information for each element is organised to provide insight from strategy to results as follows:

Leadership

The bank’s leadership and governance is focused on values-based banking, and the diversity of its leaders reflect this culture.

The bank’s leadership and governance is focused on sustainability, and the diversity of its leaders reflect this culture.

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The bank’s leadership and governance is focused on values-based banking, and the diversity of its leaders reflect this culture.

A triple bottom line (People, Planet, and Prosperity) approach at the core of the organisation, determines everything it does, including its approach to leadership and governance.

All Triodos Bank co-workers, especially individuals in leadership positions, are recruited because of an affinity with the sustainable values that underpin the banks’ work, as well as their professional expertise. The organisation believes that more diverse management creates a healthier culture and will have a positive impact on its achievements.

The Supervisory Board and Board of SAAT members – two key bodies in Triodos Bank’s governance structure - are appointed on the basis of the extent to which they combine professional expertise and a connection with the values that underpin the bank. If it’s necessary to prioritise one of these two elements, values take priority.

All Triodos Bank’s Boards aim to be well-diversified, with an adequate balance of nationalities, age, experience, background and gender.

The bank chooses not to be listed and a Board (the Board of SAAT) is entrusted with the bank’s share capital with a clear mandate to protect the mission, continuity and financial interests of investors to whom it issues depository receipts.

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The bank’s leadership and governance is focused on values-based banking, and the diversity of its leaders reflect this culture.

Triodos Bank aims to create a culture that allows all co-workers to develop professional and social skills for formal and informal leadership that’s closely linked to our mission and values. The performance of co-workers is measured on the extent to which the mission is delivered. Recruitment and performance monitoring of senior co-workers also has sustainability integrated in it.

The organisation provides learning opportunities, at all levels, to strengthen leadership’s focus on sustainability.

Information about the Board’s composition, including the Supervisory Board’s skills and experience in a competency matrix, and about its objective to have no more than 70% of its seats to be held by either gender, are published annually.

The Board of SAAT is entrusted with the share capital of Triodos Bank and its mandate is to safeguard Triodos Bank’s mission, as well as its independence and the economic interests of the bank’s investors (or depository receipt holders).

The Supervisory Board and Board of SAAT participates in a permanent education programme focused on the bank’s integrated, sustainable model.

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The bank’s leadership and governance is focused on values-based banking, and the diversity of its leaders reflect this culture.

CEO and Managing Directors regularly speak as thought leaders on values-based banking at events and via extensive media coverage in their countries. In 2017, this included:

  • Convening experts, publishing a white paper and speaking at public event to propose concrete changes to the financial system to support the transition to a low carbon, sustainable future.
  • The Triodos Academy provided a programme of training and organisational development to develop sustainable leadership throughout the year
  • In 2017 Triodos Bank employed 695 women (50.5%) and 682 men (49.5%). The share of women in management positions was 44%. The Executive Board is comprised of one woman and two men.
  • Triodos Bank co-founded and plays a leading role in the Dutch Sustainable Finance Lab in 2010, an initiative of scientists from different disciplines focused on building a more sustainable and resilient banking sector.

From May 2017 there were four male and two female members of the Supervisory Board, reflecting an international perspective. The Board of SAAT has six members made up of two women and four men with broad international and professional expertise.

Organisational Structure

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Qualitative Elements provide substantial and important information on a bank’s value-based banking approach and results. This information is used to provide a comprehensive evaluation of a bank’s efforts, capabilities and performance. The information for each element is organised to provide insight from strategy to results as follows:

Organisational Structure

The bank is organised to support its mission focus.

The bank is organised to support its mission focus.

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The bank is organised to support its mission focus.

Triodos Bank’s organisational structure was designed from the start to both reflect and safeguard and nurture its mission.

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The bank is organised to support its mission focus.

Triodos Bank’s business model is focused on delivering its mission via a resilient and entrepreneurial institution.

In addition to a Supervisory Board that monitors the bank’s business operations and advises the Executive Board to benefit its business Triodos Bank has a structure to safeguard its mission and the interests of its investors.

As a result, all Triodos Bank's shares are held in trust by SAAT – the Foundation for the Administration of Triodos Bank Shares. SAAT then issues depository receipts for Triodos Bank shares to the public and to institutions. These depository receipts embody the economic aspects of the shares of Triodos Bank NV. In addition, it exercises the voting rights for the Triodos Bank NV shares. SAAT's Board of Management's voting decisions are guided by the bank's ethical goals and mission, its business interests, and the interests of the depository receipt holders. Triodos Bank depository receipts are not listed on any stock exchange, to avoid speculative investment and further safeguard its mission. Instead, it maintains an internal market.

Branches in five European countries offer sustainable savings and lending products and services and our bound by the same mission and identity. Triodos Investment Management, a 100% subsidiary of Triodos Bank, has 18 active Funds. These independent legal entities only serve sustainable sectors including arts and culture, inclusive finance, sustainable trade, food and agriculture, energy and climate, sustainable real estate and listed companies with above average sustainable performance.

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The bank is organised to support its mission focus.

Triodos Bank’s organisational structure translates into lending exclusively in sustainable sectors: Environment (38%, 2016: 38%), Social (23%, 2016: 24%) and Culture (14%, 2016: 14%). In addition, an ‘Other’ category (25%, 2016: 24%) includes ethically screened loans to neutral organisations such as residential sustainable mortgages, municipalities and private loans.

In 2017, 366 organisations (2016: 390) received total donations of EUR 84,000 (2016: EUR 173,000) in this way from the Triodos Foundation.

The Board of SAAT and Supervisory Board reports provide more details of their activity in 2017.

Products and Services

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Qualitative Elements provide substantial and important information on a bank’s value-based banking approach and results. This information is used to provide a comprehensive evaluation of a bank’s efforts, capabilities and performance. The information for each element is organised to provide insight from strategy to results as follows:

Products and Services

The bank’s core products and services are fair, transparent and directly contribute to its values-based mission.

The bank’s core products and services are fair, transparent and directly contribute to its sustainability mission.

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The bank’s core products and services are fair, transparent and directly contribute to its values-based mission.

Triodos Bank’s core products and services reflect its mission, by design. Products and services link savers and investors with sustainable enterprises. Efficient, high quality service is considered consistent with these goals. All strategic and policy efforts, regardless of the specific discipline within the bank, reflect this focus.

Gift money is also viewed as an important part of the role money can play in improving quality of life through finance. The Triodos Foundation is active in all the countries where Triodos Bank operates as a result.

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The bank’s core products and services are fair, transparent and directly contribute to its values-based mission.

Sustainability criteria are articulated in published positive and negative screening criteria documents, which determine lending and investment decisions. In practice, sustainability criteria inform the development of all new products as an explicit part of the innovation process.

Relationship managers have national and sectoral expertise allowing them to build relationships and finance sustainable enterprise in the long-term interests of entrepreneurs and the sustainable sectors they operate in.

Triodos Bank offers products including:

  • Funds in sectors such as inclusive finance, sustainable real estate, culture, food and agriculture and energy allow individuals and institutions to invest in sustainable sectors
  • Deposits that are only used to finance sustainable enterprise across all Triodos Bank’s branches
  • Private Banking is currently offered in The Netherlands and Belgium and provides advice for wealthier individuals, family offices and organisations taking responsibility for the sustainable impact of their finance
  • Savers, in some countries, can donate part of their interest to a charity
  • Customers have full transparency over the way their finance is mobilised via a website detailing all the bank’s loans in all the countries where it operates.

Sustainability is also considered in how Triodos Bank provides its services. Instead of scripts for customer services co-workers and targets for the duration of calls, for example, co-workers are encouraged to have an authentic dialogue with customers and to take time for these conversations.

In addition, all co-workers are responsible for ensuring that suppliers meet sustainability priorities. A vendor management department has oversight for larger supplier relationships to make sure that sustainability considerations are paramount.

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The bank’s core products and services are fair, transparent and directly contribute to its values-based mission.

  • Growth in customer numbers to 681,000 customers (up by 4% on 2016)
  • The number of depository receipt holders (who invest in Triodos Bank itself across its European network) increased from 38,138 to 40,077. Equity increased by 12% from EUR 904 million to EUR 1,040 million.
  • Banking apps linking customers with the sustainable impact of their money
  • During 2017 Triodos Bank financed its first energy storage project, completed five transactions for energy and climate projects with capital expenditure exceeding EUR 30 million, extending its syndication deal capabilities, and launched a new crowd-giving website.

Management Systems

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Qualitative Elements provide substantial and important information on a bank’s value-based banking approach and results. This information is used to provide a comprehensive evaluation of a bank’s efforts, capabilities and performance. The information for each element is organised to provide insight from strategy to results as follows:

Management Systems

The bank’s management systems are transparent, include values-based criteria and exist to increase the institution’s positive impact.

The bank’s management systems are transparent, include sustainability criteria and exist to increase the institution’s positive impact.

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The bank’s management systems are transparent, include values-based criteria and exist to increase the institution’s positive impact.

As an integrated, values based business Triodos Bank’s management systems, including risk evaluation and management, liquidity and asset/liability management and resource allocation are all designed to underpin Triodos Bank’s mission.

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The bank’s management systems are transparent, include values-based criteria and exist to increase the institution’s positive impact.

Triodos Bank has a positive approach to lending and investments, which is further supported by minimum standards, or negative criteria. Credit risk is assessed locally, in branches, and decisions on larger loans are shared with a central risk department who are responsible for ensuring the financial viability and sustainable impact of loans.

Triodos Bank’s lending strategy is built on identifying and understanding sustainable sectors, and close and meaningful relationships with its clients. Similarly, Triodos Investment Management’s strategic approach to Impact Investment takes the same 100% mission driven approach to investment.

Triodos Bank’s activity is also bolstered by Business Principles which detail the bank’s mission, vision and values and what they mean in practice.

In addition, detailed processes are in place to ensure Triodos Bank's resources deliver its mission. An active and audited Environmental Management System (EMS) monitors and reduces the adverse environmental impact of all Triodos Bank’s activities. Policies in procurement, buildings infrastructure and products and services also monitor and improve performance.

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The bank’s management systems are transparent, include values-based criteria and exist to increase the institution’s positive impact.

The results of Triodos Bank’s management approach are in its impact. These are integrated in its annual report and highlighted, in particular,  in its annual report’s impact chapter and Know Where Your Money Goes, listing all the loans that Triodos Bank makes.

In addition, Triodos Bank takes its sustainability responsibilities seriously as an institution. It is a climate neutral business. Published environmental impact data includes details of energy consumption, co-worker travel, commuting, paper usage, and CO2 emissions per FTE and by building. Triodos Bank purchases 100% renewable electricity and offsets 100% of its CO2 emissions. More details can be found in the Executive Board chapter and the Financial Accounts.

  • CO2 emissions per FTE in 2017 decreased to 2.36 tonnes (2016: 2.62 tonnes). Total CO2 emissions across the whole of Triodos Bank decreased by 1.9 % compared with 2016.
  • The use of video conferencing, and Skype connecting all the offices continues to have a positive impact on travel. Business travel by plane declined by 4.9% and commuting by car by 34.5% during the year.
  • The amount of office paper continued to decline further in 2017 to 85 kg/FTE (2016: 112 kg/FTE). The amount of recycled printed paper was 72 kg/customer, a decrease of 32%.

Human Resources Tools

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Qualitative Elements provide substantial and important information on a bank’s value-based banking approach and results. This information is used to provide a comprehensive evaluation of a bank’s efforts, capabilities and performance. The information for each element is organised to provide insight from strategy to results as follows:

Human Resources Tools

The bank’s values-based mission is the starting point for its incentive, compensation, and performance structure.

The bank’s sustainability mission is the starting point for its incentive, compensation, and performance structure.

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The bank’s values-based mission is the starting point for its incentive, compensation, and performance structure.

Triodos Bank’s human resources approach is geared towards supporting new and existing co-workers to understand its mission and goals, equipping them to translate this sustainability focus into daily practice. Its incentives, compensation and performance structure is a logical extension of this overall approach.

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The bank’s values-based mission is the starting point for its incentive, compensation, and performance structure.

Triodos Bank has a moderate remuneration policy without bonuses, to create a healthy and simple system.

Sustainability is, by definition, the result of a combined effort of team members aimed at both the short and long term. So Triodos Bank chooses not to offer bonus or share option schemes to either its Board members or co-workers. Financial incentives are not considered an appropriate way to motivate and reward co-workers.

Co-workers’ connection with Triodos Bank’s values are enhanced through weekly meetings in all branches, and a thorough induction process focusing on Triodos Bank's mission, values and practice.

Various training modules and courses provide both an international and local focus, for example via the Triodos Academy, including a values seminar, management development programme, Massive Open Online Courses (MOOCs) and a visionary leadership programme. These initiatives explore Triodos Bank’s roots and values as well as the wider context for values based banking.

Active ‘Works Councils’ in The Netherlands, Belgium, Spain and a co-worker’s forum in the UK, provide an addition voice for co-workers at all levels.

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The bank’s values-based mission is the starting point for its incentive, compensation, and performance structure.

The ratio of the highest full-time salary to the median full-time salary in 2017 was 5.7 (2016: 5.7)

The ratio between the highest and the lowest salary (in The Netherlands) was 9.9 (2016: 9.9). Some specific cases are excluded from this ratio, for example when very junior co-workers are recruited as apprenticeship, or less qualified people are appointed to create job opportunities for vulnerable people. The figure was lower in the other countries where Triodos Bank operates.

A Group-wide co-worker survey took place in 2017 The proportion of committed co-workers was 92% compared to the European benchmark (68%). 83% of co-workers participated

Co-workers participated in the different programmes of the Triodos Academy (2016: 224)

Performance Reporting

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Qualitative Elements provide substantial and important information on a bank’s value-based banking approach and results. This information is used to provide a comprehensive evaluation of a bank’s efforts, capabilities and performance. The information for each element is organised to provide insight from strategy to results as follows:

Performance Reporting

The bank reports on the impact of what it does, not just its financial performance in an honest, transparent and accessible way.

 

 

The bank reports on the impact of what it does, not just its financial performance in an honest, transparent and accessible way.

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The bank reports on the impact of what it does, not just its financial performance in an honest, transparent and accessible way.

 

Tracking and reporting financial and non-financial performance is a core part of the Triodos Bank’s ‘business as usual’.

Triodos Bank provides detailed and accessible reporting on both its financial and non-financial performance so its stakeholders have a true picture of the results of its work at different levels, from the perspective of customers and investors to regulators, partners and wider society. It also reports in order to understand and develop what it is doing well and to identify where it can improve.

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The bank reports on the impact of what it does, not just its financial performance in an honest, transparent and accessible way.

 

All the loans Triodos Bank makes are published in all the countries where it operates.

Its annual report details the sectors where Triodos Bank is active on its websites.

Non-financial impact is reported with a bias for story-telling. Audited data is used to support this qualitative information. This scorecard is one part of that effort.

Evidence of impact is integrated with more conventional banking figures, such as capital ratios which reflect the resilience of the bank and its commitment to finance sustainable enterprise in the real economy.

A comprehensive impact manual was developed in 2015 providing co-workers with everything they need to know about what and how to report non-financial impact data. This is a living document that develops over time and in response to emerging issues in the wider world.

All non-financial impact data is related back to people reflecting Triodos Bank’s mission. This data has been assured by external auditors since 2014 to help improve the systems for gathering and reporting this information.

Triodos Bank also collaborates with others in the banking sector, and with frameworks like the UN Sustainable Development Goals, GRI and B Corp, to improve how it reports on its impact.

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The bank reports on the impact of what it does, not just its financial performance in an honest, transparent and accessible way.

An impact management and communication tool prototype was developed during 2017 and will be tested and, if successful, implementation will begin in 2018. This new system will help Triodos Bank to better understand, monitor, steer and communicate impact.

Triodos Bank has collaborated with other financial institutions in The Netherlands, in the Platform for Carbon Accounting Financials, a group established at the time of the Paris Climate Conference in 2015 to find a common, open source methodology to account for the carbon footprint of loans and investments. Interim and final reports were published in 2017.

Triodos Bank is developing, and plans to start using the new methodology in parts of its business in 2018. It will also collaborate in a ‘Science Based Targets’ initiative to connect the PCAF methodology with international commitments to keep the increase in global temperature from pre-industrial levels within safe levels.

Triodos Bank also collaborated with Eosta, international distributor of organic fruit and vegetables, and others to sponsor a pilot to develop True Cost assessments of finance, food and farming. The results were published in 2017.

Triodos Bank’s activity has also been mapped against the UN Sustainable Development Goals in the 2017 annual report.

Triodos Bank and Triodos Investment Management integrates the reporting on its non-financial and financial performance, in this annual report in particular. It ensures that both types of data are externally audited.

  • Environment: By the end of 2017, Triodos Bank and its climate and energy investment funds were financing 472 projects in the energy sector: 37 energy efficiency projects, 25 sustainable power projects in a construction phase and another 410 sustainable power projects (2016: 381) with a total generating capacity of 3,100 MW (2016: 2,400 MW), producing the equivalent of the electricity needs of 1.4 million European households (2016: 1.2 million).
  • Together these projects contributed to the avoidance of over 2.4 million tonnes of CO2 emissions (2016: 1.7 million tonnes). Organics: organically managed land on the farms financed by Triodos Bank could produce the equivalent of 30 million meals in 2017; enough food to provide a sustainable diet for approximately 27,000 people (2016: 29,000).
  • Triodos Bank and Triodos Investment Management also financed 31,000 hectares of nature and conservation land (2016: 28,000).
  • Over 146,000 smallholder farmers in 17 emerging market countries worldwide were paid directly and fairly upon delivery of their harvest in 2017, as a result of the trade finance of Triodos Sustainable Trade Fund. In 2017 the clients of the fund had 60,000 hectares of certified organic farmland under sustainable cultivation. An additional 17,000 hectares was in conversion.
  • In 2017 Triodos Bank and Triodos Investment Management financed directly, and via sustainable property, approximately 10,600 homes and apartments (2016: 7,200) and about 540 commercial properties (2016: 310) comprising approximately540,000m2 for office and other commercial space (2016: 460,000m2). It has also financed about 18,000m2 of buildings and brownfield sites (2016: 27,000m2).

Social:

  • Care for the elderly: 53,000 individuals (2016: 35,000) were residents of facilities at 558 elderly care homes (2016: 422) financed by Triodos Bank and Triodos Investment Management.
  • In 2017 Triodos Bank and Triodos Investment Management financed 490 community projects (2016: 437), and 170 social housing projects, which directly and indirectly provide accommodation for approximately 94,000 people (2016: 67,000).
  • Triodos Investment Management’s specialised emerging markets funds provided finance to 107 financial institutions working for inclusive finance in 44 countries (2016: 44); these organisations reached approximately15.1 million savers (2016: 13.7 million) and 20.3 million borrowing customers in 2017 (2016: 20.2 million). Of these loan clients, 79% are female, empowering their position.

Culture:

  • Culture: 17.6 million visitors enjoyed cultural events including cinema, theatres and museums across Europe (2016: 13.7 million).
  • Triodos Bank and Triodos Investment Management finance also helped approximately 3,400 artists and creative companies active in the cultural sector (2016: 3,100). Theatre, music and dance productions from creative companies were visited by 450,000 people.  New productions in 2017 from the film and media sector financed by Triodos Bank were seen by over 9.0 million people (2016: 9.7 million).
  • Triodos also financed a number of organisations providing affordable spaces for cultural activities such as workshops and music courses, attracting around 97,000 people (2016: 90,000).
  • Approximately 650,000 individuals benefited from the work of 455 education initiatives financed by Triodos Bank in 2017 (2016: 2 million).
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