Sustainable banking. Invest in the day after tomorrow. RSPO Roundtable 9, November 2011

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1 Sustainable banking Invest in the day after tomorrow RSPO Roundtable 9, November 2011 Thomas Ursem Manager Sustainable Business Development at

2 Banks and Corporate Social Responsibility? Plaatje protesten walstreet

3 Banks and Corporate Social Responsibility?

4 Rabobank at a glance Cooperative (1898) with roots in agriculture AAA-rated Total assets 2010: 652 bln. Activities in 48 countries Employees 2010: 58,700 Focused, strategy: Market leadership in the Netherlands Leading global food and agribusiness bank

5 Food & Agribusiness Research Network 82 people across the globe in 12 different countries

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7 Per capita food consumption in Asia to 2020

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9 Global yield trends wheat and rice

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11 Trade Distribution of arable land Africa3 distribution of population Africa3 Other China Other China S+C America India S+C America Russia Oceania US+Canada EU11 Indonesia Russia Oceania US+Canada EU27 India Indonesia Source: FAO, UN

12 Our commitment Core values Rabobank Group Respect Integrity Professionalism Sustainability Leadership Food and Agribusiness principles Sustainability creates value for society and strengthens our competitiveness Ambition Top-3 worldwide most sustainable bank

13 Ambition Internally as a decent employer and an organisation with high moral standards social and environmental aspects of own operation in Risk Management, as a financier that renders account of the possible social, humanitarian, environmental impact of its (financial) services: CSR check in Client acceptance procedure in Commercial Profile, as a provider of financial services that actively participates in sustainability initiatives in sectors in which we are involved wants to understands CSR-issues of clients and can actively support clients in tackling CSR-problems CSR-GROUP

14 Our role Huge transformation - technology challenge, innovation driven how we can support clients and cooperate in making their business/supply chain more sustainable Rabobank in the heart of F&A Facilitate investments in new technology Knowledge building sharing & benchmarking Supply chain finance Stimulate good agricultural practices Access to Finance & poverty reduction Sharing network throughout supply chain Positively influence by engagement

15 Palm oil in risk management Build in credit risk process Focus on client Engagement

16 Other policies and sector initiatives Wildcatch Forestry Biofuels Palm oil Aquaculture Soy Cocoa Sugarcane Cotton Coffee

17 Industry standards Financial Inst. International Finance Corporation (IFC) Performance Standards on social and environmental sustainability Renewed in 2011 effective as of jan 2012 Effective January 2011 Equator principles Voluntary industry standard 73 members across the globe credit risk management framework for determining, assessing and managing environmental and social risk in project finance transactions. total project capital costs exceed US$10 million. based on IFC Performance Standards

18 Equator principles Strategic Review Challenges: Scope and going beyond project finance Outreach and expanding membership Improving consistency of implementation across members Promoting transparency Recommendations Extend the scope to both project finance and corporate loans where 50% or more of the proceeds of the loan are being used to finance a single asset

19 Principles for Responsible Investment Partnership United Nations and global investors 900 signatories, 49 countries, 76 signatories from emerging countries 20% of the world s capital over US$ 30 trillion of assets Goal: promoting and mainstreaming responsible investment practice Principles for Responsible Investment incorporate ESG into investment analysis and decision-making be active owners, incorporate ESG in ownership policies and practices. seek appropriate disclosure promote acceptance and implementation of the Principles work together to enhance effectiveness report on our activities and progress Sustainable Palm Oil Investor Working Group

20 Role of the financial sector in palm oil RSPO currently 9 FIs increase FI involvement Progress reporting - what is expected from FIs knowledge gap at FIs More attention expected from the FIs Equator principles Responsible investing (UN PRI) From niche to mainstream

21 Thank you Invest in the day after tomorrow RSPO Roundtable 9, November 2011 Thomas Ursem Manager Sustainable Business Development