Triodos Sustainable Trade Fund

Transcription

1 Triodos Sustainable Trade Fund Annual Report 2017 TLIM

2 Sustainable Trade Trade is sustainable when it is based on reliable and transparent value chains, fair prices and concern for environmental, social and cultural values.

3 Stichting Triodos Sustainable Trade Fund Annual Report 2017

4 Contents Page Vision and mission 5 Report by the Board of Management 7 Report of the Supervisory Board 14 General data 15 Annual Accounts 2017 Stichting Triodos Sustainable Trade Fund 16 Balance sheet at 31 December Profit and loss account for the year ended 31 December Notes to the balance sheet and the profit and loss account 19 Other information 32 Glossary 37 4

5 Vision and mission Vision Sustainable value chains Farmers in developing and emerging countries do not automatically benefit from access to world markets. In our vision, inclusive, sustainable value chains need to be built to ensure that farmers really do benefit. Transparency, sustainability and reliability are key values in these chains. Transparency implies that the final, processed product can be traced back from the final buyer to the farmer. This responds to the increasing interest of today s consumers in knowing where and how the products they buy have been produced. Consumers are inclined to pay a better price for products that are produced in a sustainable manner. Transparency and traceability also create a positive incentive to continuously work on product quality improvement along the chain and appreciation of each other s efforts in it. This also leads to better prices for the farmers. In our view, sustainability means that farmers do not rely on chemical inputs for the cultivation of their crops. This is not only better for the environment, it also keeps farmers independent of chemical suppliers, while saving on costs and preventing health problems caused by working with these inputs. Sustainable farming improves soil fertility, generating higher yields. The higher organic content of the soil also makes agricultural fields more resilient in the long term to the adverse effects of climate change: extremely dry or wet periods. Sustainability also means that farmers receive a fair price for their products; a price that at least covers their production costs and includes a premium for their sustainable farming practices. Reliability is crucial for farmers to be able to engage in sustainable value chains. They need to be able to rely on stable, long- term purchase of their products. Farmers moreover need the security of being paid on time and fairly, year after year. Without that, farmers will often have no choice but to sell their produce to local middlemen, even if that means lower prices. In such circumstances, trade relationships remain ad hoc, anonymous and purely opportunistic, bringing little or no value to the farmer and creating no basis for investing in the future. The best examples of sustainable value chains are found in the fair trade and organic market. This is partly because of the typical requirements of the fair trade and organic certification schemes. Another reason is that relatively more buyers in these markets take a genuine interest in the development of the farmers from whom they are sourcing. 146,000 the number of smallholder farmers who sold their harvest to organisations benefiting from trade finance from Triodos Sustainable Trade Fund in

6 Value chain finance Farmer cooperatives and private agricultural companies generally lack the necessary cash to bridge the period from harvest time until final payment by their buyers. This prevents the development of sustainable value chains, since farmers cannot rely on timely payment for their products. Creating access to seasonal working capital loans is therefore crucial for the development of sustainable value chains. Financial institutions, however, tend to focus on the availability of fixed assets, such as buildings and equipment as collateral for their loans. This collateral is generally not sufficiently available or is already used to secure long-term loans for investments. In our view, the concept of value chain finance needs to be promoted to increase the availability of working capital loans. Value chain finance is about banking on the established relationships between participants in the value chain, using the strengths of the value chain to mitigate lending risk. Mission The mission of Triodos Sustainable Trade Fund is to support the development of sustainable value chains, with a specific focus on fair trade and organic farming, by offering pre-export value chain finance to farmer cooperatives and other agricultural companies in developing countries and emerging markets. 6

7 Report by the Board of Management This is the ninth annual report of Stichting Triodos Sustainable Trade Fund (Triodos Sustainable Trade Fund). In 2017 Triodos Sustainable Trade Fund disbursed a total loan amount of EUR 24.9 million, bringing 14 different fair trade and organic products to international markets, such as coffee, cocoa, superfoods, fruits, nuts, soy, ginger, rice, sesame and quinoa. Thanks to the fund s trade finance activities over 146,000 smallholder farmers in 14 countries worldwide were paid fairly and directly upon delivery of their harvest. In 2017 the clients of the fund had 168,000 hectares of farmland under sustainable cultivation. Market developments Sustainable food and agriculture 2017 showed a continued momentum around the pivotal role that sustainable food and agriculture play when it comes to the major challenges that the world faces. The world s leaders agreed in 2015 on the Sustainable Development Goals (SDGs) which highlighted food and agriculture in no less than seven of the seventeen global goals. The interdependent issues around rural poverty, food security and climate change are at the heart of the mission of Triodos Sustainable Trade Fund. This continues to be relevant in a world where over 70% of all the food is produced by 500 million smallholder family farmers while these same farmers represent the poorest and hungriest people in the world. The effects of climate change are real. For instance, millions of farmers in Africa faced a prolonged period of drought that has diminished harvests in countries across the continent, from Sudan to Zimbabwe. An important pull factor to bring about positive change is the growing interest from consumers for sustainably sourced products. This is demonstrated by the prolonged period of growth rates in both organic and fair trade markets, especially in the USA and Europe. The limiting factor will become the supply of organic and Fair-Trade food products: how can producers keep up with this continued growth trend. The role of smallholder producers in meeting the growing consumer demand is crucial as the majority of the two million registered and organically certified smallholders comes from Latin America, Africa and Asia. This figure does not capture the number of smallholder farmers that are either in transition to become organically certified or that are following organic principles but without any certification to demonstrate this. Without access to capital it is often impossible for farmer cooperatives or small agribusinesses to export directly and thereby create as much value as possible for the farmers at the origin of the value chain. It is for this reason that Triodos Sustainable Trade Fund s working-capital loans are an important bridge between smallholder farmers and these positive consumer trends in Western markets. Portfolio Over 2017 the fund issued circa EUR 24.9 million of new loans to 23 partners worldwide. The fund added 4 new partners in Loans were disbursed in 14 countries. Latin America remains the largest region for the fund representing 51% of disbursements (spread out over six countries), followed by Africa with 32% of the portfolio (in six countries). In total, Triodos Sustainable Trade Fund financed 14 different products, of which cocoa and coffee (together representing about 61% of all disbursements over 2017) are the largest products in the portfolio. This makes the portfolio well diversified both geographically and commodity-wise. An area of concern over 2017 continued to be the portfolio quality, largely affected by three partners in Latin America and one client from West Africa which struggled with adverse circumstances during 2016 and Triodos Sustainable Trade Fund had to make (additional) provisions on these loans. Due to financial difficulties one borrower is unable to repay one of the loans and therefore the loan including accumulated interest was partially written off in

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9 ALDEA GLOBAL NICARAGUA Asociación Aldea Global Jinotega (Aldea Global) is a longstanding partner of Triodos Sustainable Trade Fund. The producer organisation sources premium coffee from 2,898 small-scale farmers in Nicaragua and exports this coffee to Europe and the United States. Aldea Global has a strong focus on environmentally sustainable agricultural practices and values gender diversity among its farmers 15% are women. The trade finance by Triodos Sustainable Trade Fund allows Aldea Global to pay the farmers fairly upon delivery of the produce. 9

10 Sustainability as core value Triodos Sustainable Trade Fund aims to bring about tangible results on ecological, social and economic dimensions. In this section the fund reports on how its loans and partnerships can yield results on these dimensions, using examples from the portfolio. To document and monitor the results of Triodos Sustainable Trade Fund in terms of realising its mission to improve the lives of farmers and to stimulate sustainable agriculture the fund has chosen to use the Impact Reporting & Investment Standards (IRIS) as a guideline and relate the fund s objectives to the Sustainable Development Goals (SDGs). IRIS was initiated and is governed by the Global Impact Investing Network (GIIN), a not-for-profit organisation dedicated to increasing the effectiveness of impact investing. IRIS indicators span an array of performance objectives and include specialised metrics for a range of sectors, including financial services and agriculture. This is work in progress, as impact reporting is still a relatively new area that is undergoing development and in which Triodos Investment Management is an active participant. Improve access to world markets Producer organisations offer opportunities that smallholder farmers could not achieve individually, such as bargaining power and access to markets. Triodos Sustainable Trade Fund prefinanced over 102,000 metric tonnes of diverse products purchased directly from smallholder farmers, which were then sold to markets across the globe, equivalent to thousands of coffee bags and bars of chocolate, to name a few. Also, often these organisations offer additional services to their members, including access to agricultural inputs, credit, training, and storage facilities. Triodos Sustainable Trade Fund provides loans to those cooperatives that are directly involved in exporting agricultural products. On top of this, the vast majority of the fund s privately owned borrowers often have strong ties with cooperatives Geographical specification (as % of total EUR disbursements in 2017) Africa & MENA 32.4% Asia 16.5% Latam 51.1% Product specification (as % of total EUR transacted in 2017) Coffee 33.9% Cacao 27.0% Cashew 16.7% Rice 8.6% Superfoods, chia, quinoa, fruits 7.6% Sesam 2.1% Ginger 1.7% Macademia 1.3% Soy 1.2% for sourcing the products. Triodos Sustainable Trade Fund financed eleven cooperatives in 2017, thereby reaching over 23,000 farmers directly with its loans, who are members of the cooperatives. Including its finance to the privately owned agro enterprises the fund reached over 146,000 farmers during San Fernando, a coffee producer organisation from Chiapas in Mexico is an example of a cooperative adding value to its 1,296 smallholder farmer members. San Fernando exports primarily organic and Fair Trade coffee to Europe and the USA. Traditionally, Mexico is one of the coffee producing countries with a high number of small producers farming on less than three hectares of family land. The cooperative is adding value to the community by setting up a savings and credit cooperative to assist farmers in renovating old coffee plantations. In addition, in 2006 San Fernando started the production of its own grinded and roasted coffee 10

11 brand for the local market which is now sold in airports and shops in various states in Mexico. The loan from Triodos Sustainable Trade Fund assists in the growth of the production forecasted for 2017 and Encourage sustainable agricultural practices Triodos Sustainable Trade Fund has adopted the organic agriculture principles of the International Federation of Organic Agricultural Movements (IFOAM) to underpin its vision on sustainable agriculture. These principles of health, ecology, fairness and care express the contribution that organic agriculture can make to the world, and form a vision to improve all agriculture in a global context. Triodos Sustainable Trade Fund uses these principles in its investment policy and to inspire action among clients and stakeholders. Clients in the fund s portfolio offer trainings in sustainable farming practices, thereby increasing the share of certified organic land under cultivation. In 2017 the clients of the fund had 168,000 hectares of farmland under sustainable cultivation including 60,000 hectares of organically certified land and an additional 17,000 hectares was in conversion an important number to capture since it usually takes several years before conventional farmland is ready to be certified organic. The fund supports this conversion period, so that eventually the total farmland under certified organic farming practices can increase. Of all export prefinanced 64% is done with an internationally recognized sustainability certification such as Fair Trade, Organic, Utz or Rainforest. The remainder is either in conversion or not yet certified but has been screened for performance on environmental, social and economic sustainability. An example of sustainable trade which is partly certified is Capitol Trading from Sierra Leone, a cocoa and coffee exporter since Capitol Trading helped to rebuild the sector after the civil war ended in 2002 which left many farms neglected and abandoned. Currently, Capitol Trading is one of the three main cocoa exporters of the country and increasing its efforts to move from Utz to organic certification. With a dedicated program Capitol Trading will work with its farmer base of 9,000 smallholder farmers, thereby adding a premium payment through the organic market entry. The loan from Triodos Sustainable Trade Fund assists in the growth of the production forecasted for 2017 and Building long-term relationships Since inception, Triodos Sustainable Trade Fund has provided loans to 76 different farmer businesses worldwide. What is even more important than this outreach figure is the longevity of the fund s relationship with these organisations. The fund s loans are short-term by nature, but the focus is on establishing a long-term relationship by offering trade finance for consecutive seasons. Reliability is crucial for farmers to be able to engage in sustainable value chains. They need to be able to rely on stable, long-term take-up of their products and finance. In 2017, Triodos Sustainable Trade Fund financed 23 partners, of which four were new clients. The majority of the existing partners of the fund have an average track record of 4-6 consecutive years. Six partners have been with the fund almost since the inception one decade ago. 168,000 In 2017, the fund s clients farmed 168,000 hectares sustainably cultivated land 11

12 Risks Triodos Sustainable Trade Fund has a relatively high risk profile. The following is a summary of what the fund believes are the essential risks associated with its lending operations. Country and political risk Triodos Sustainable Trade Fund s borrowers operate in high risk countries under challenging conditions that include political turmoil, outbursts of violence, poorly developed legal systems, high and rapidly fluctuating inflation and structural economic imbalances. Standards for financial auditing and reporting in these countries may not always be in line with internationally accepted standards. Geographical concentration risk Triodos Sustainable Trade Fund s geographic focus is exclusively on countries that figure on the DAC list (Development Assistance Committee) published by the OECD. This list consists of all low and middle income countries, using gross national income (GNI) per capita as the criterion. In practice, the fund mainly works in Latin America and Africa. To limit country risk, Triodos Sustainable Trade Fund has set an upper limit of 30% of its maximum lending limit for investments in one particular country. Sectoral concentration risk The sector focus of Triodos Sustainable Trade Fund is exclusively on agriculture and related trade. The fund has not set exposure limits on individual agricultural commodities. In practice, exposure to the main commodity (coffee) has not been more than 50% of the fund s maximum lending limit. Please refer to the pie chart on page 10 for the diversification across different commodities. Debtor concentration risk To limit single debtor exposure risk, Triodos Sustainable Trade Fund has set an upper limit of 10% of its maximum lending limit for lending to one particular client. Credit risk and market risk There is a risk that Triodos Sustainable Trade Fund s borrowers may default on their obligations to the fund due to lack of liquidity, operational failure, defaulting buyers, or for other reasons. A particular market risk relates to sharply declining and volatile commodity prices in recent years. This makes price fixation increasingly risky for each actor in the value chain. This risk is mitigated by the maximum percentage of the value of the sales contracts which the fund pre finances. This maximum varies between 50%-75% depending on the commodity. Although Triodos Sustainable Trade Fund undertakes careful due diligence and loan monitoring, it cannot assure that these measures will be adequate or that Triodos Sustainable Trade Fund will not have to make significant provisions for possible bad and doubtful debts in future periods. Loan recovery risk The availability and effectiveness of legal instruments to enforce loan recovery is limited. Triodos Sustainable Trade Fund generally takes soft collateral only, consisting of a floating charge on stock and receivables related to the fulfilment of the sales contracts that are pre-financed. Loan agreements are governed and construed in accordance with the internal law of the Netherlands, whereby the parties submit to the jurisdiction of the Dutch Court but without prejudice to the right of Triodos Sustainable Trade Fund to pursue its remedies in any other jurisdiction it thinks fit. Enforcing these agreements generally entails difficult and lengthy processes with uncertain outcomes. Currency risk Triodos Sustainable Trade Fund s loans are denominated in US dollars or euros. US dollar loans are made from the fund s USD overdraft with Rabobank so that USD credit and debit balances generally balance. The Rabobank USD overdraft is backed by a bank guarantee issued by Triodos Bank, which is counter-guaranteed by a blockage 12

13 on the fund s EUR credit line with Triodos Bank. Appreciation of the US dollar against the euro will trigger a higher blockage on the fund s EUR credit line with Triodos Bank and hence consume liquidity. Other currency risk is limited to exposure to accumulated USD income in the fund. That risk is managed by periodically converting these accumulated US dollars into euros. funds are available to continue the activities of the fund during the coming 12 months period. Zeist, 29 June 2018 Board of Management Marilou van Golstein Brouwers Riella Hollander Financial results The net result for 2017 is negative at EUR 1,772,937 (2016: EUR 769,981 negative). The negative result was mainly due to an increase in loan loss provisions for several loans in distress over The operational income was in line with the loan portfolio 13.0% lower compared with previous year amounting to EUR 1,857,144. The operational expenses amounting EUR 1,431,950 were 3.6% lower compared with previous year, mainly due to the decrease in management fee. Outlook The overall outlook for the market in sustainable agricultural production remains positive. Demand for these products continues to grow, driven by increased consumer awareness regarding the downsides of conventional food production, both in the United States and Europe, and in developing countries and emerging economies. The fund closely monitors commodity price volatility, especially when triggered by financial market speculation and the potentially harmful effects of climate change are areas the fund monitors closely. Due to the negative net result for 2017 and as a consequence the related equity position, the Board of Management of Triodos Sustainable Trade Fund has decided to undertake a strategic review in order to establish the options for the future of the fund. Conversations are held with the different financiers of the fund to discuss these strategic options and possible impact on the facilities provided by them. The Board of Management confirms that sufficient 13

14 Report of the Supervisory Board We are pleased to present the 2017 Annual Report, consisting, among others, of the Report by the Board of Management, the Annual Accounts, the Notes and Additional Information. The independent auditor s report is included on page 33 of this Annual Report. In 2017, the Supervisory Board met on 18 May. Key topics were the fund s long term funding strategy, main market developments and portfolio quality. Furthermore, the Supervisory Board discussed the budget and annual accounts of the Sustainable Trade Fund. Please refer to the Report by the Board of Management for further details. The Supervisory Board has approved the 2017 Annual Accounts. The negative result over 2017 was EUR 1,772,937. The entire result will be charged to the reserves. Zeist, 29 June 2018 Mark Joenje (Chair) Carol Gribnau Liliana de Sá Kirchknopf 14

15 General data Objective Stichting Triodos Sustainable Trade Fund (Triodos Sustainable Trade Fund) started operations on 31 January The objective of Triodos Sustainable Trade Fund, as described in article 2 of the Articles of Association, is: to improve the economic position of farmers in developing countries and in Central and Eastern European countries as well as to stimulate sustainable agriculture in these countries, all this in the broadest sense of the term. The foundation is a not-for-profit organisation. Triodos Sustainable Trade Fund provides trade finance loans to cooperatives and private companies operating in sustainable agricultural value chains, and has a specific focus on organic agriculture and fair trade. Governance The Supervisory Board monitors the Board of Management s policy and general state of affairs of the fund. The fund s annual accounts and the annual budget need the Supervisory Board s approval. The members of the Supervisory Board are appointed by the Board of Management. In 2017, the members of the Supervisory Board are Mark Joenje (Managing Partner at C4D partners), Carol Gribnau (Program Director Green Society at Hivos) and Liliana de Sá Kirchknopf (Head of Private Sector Development Division at SECO). The Advisory Board assists the Board of Management and the Supervisory Board in the further development of its sustainability policy. The members of the Advisory Board are Ute Eisenlohr (Head of Agriculture Department at IMO, Switzerland), Hugo Skoppek (independent sustainability consultant) and Daniele Giovannucci (co-founder of COSA). The Board of Management of Triodos Sustainable Trade Fund consists of Marilou van Golstein Brouwers and Riella Hollander. Triodos Sustainable Trade Fund is managed by Triodos Investment Management BV, a whollyowned subsidiary of Triodos Bank NV. The Board of Management of Triodos Investment Management consists of Marilou van Golstein Brouwers (chair), Dick van Ommeren, Jacco Minnaar (since 1 June 2017) and Kor Bosscher (since 1 March 2018). Michaël van den Berg was the Fund Manager of Triodos Sustainable Trade Fund until May 1st

16 Annual Accounts 2017 Stichting Triodos Sustainable Trade Fund Page Balance sheet as at 31 December Profit and loss account for the year ended 31 December Notes to the balance sheet and the profit and loss account 19 16

17 Balance sheet as at 31 December 2017 Before appropriation of results (amounts in euros) Notes Assets Fixed financial assets Issued loans with maturity date > 1 year < 5 years 1 1,946,239 1,123,543 1,946,239 1,123,543 Current assets Issued loans with maturity date < 1 year 1 10,702,238 16,801,698 Receivables and deferred assets 2 354, ,746 Cash and cash equivalents 3 1,845,769 2,840,394 12,902,391 20,063,838 Total assets 14,848,630 21,187,381 Equity Profit reserve 4 1,785,588 2,555,569 Result for the financial year 4-1,772, ,981 Total Equity 12,651 1,785,588 Liabilities Long-term liabilities Subordinated loans 5 3,499,042 3,752,633 3,499,042 3,752,633 Short-term liabilities Due to banks 6 9,801,337 14,104,474 Accounts payable and deferred liabilities 7 435, ,686 Subordinated loans 8 1,100,000 1,000,000 11,336,937 15,649,160 Total Equity and Liabilities 14,848,630 21,187,381 Off balance liabilities, assets and rulings 9 The annual accounts should be read in conjunction with the accompanying notes 17

18 Profit and loss account for the year ended 31 December 2017 (amounts in euros) Notes Income Interest on loans 10 1,487,674 1,594,599 Administration fees , ,137 Interest on cash and cash equivalents Other income ,592 Total income 1,857,144 2,133,939 Expenses Management fee , ,890 Operating expenses , ,423 Interest costs , ,002 Other expenses 17 42,589 32,469 Total expenses 1,431,950 1,484,784 Operating result 425, ,155 Impairments / reversal of impairments 18-2,443,910-1,411,176 Exchange rate differences ,779-7,960 Net result -1,772, ,981 Proposed appropriation of loss Profit reserve -1,772, ,981 The annual accounts should be read in conjunction with the accompanying notes 18

19 Notes to the balance sheet and the profit and loss account General Stichting Triodos Sustainable Trade Fund (the Fund or Triodos Sustainable Trade Fund) was established on 24 October As of 31 January 2008, the name of the fund changed from Stichting Triodos Development Fund to Stichting Triodos Sustainable Trade Fund. Simultaneously, the fund set up new activities. Since the former foundation did not set up any activities at all, 2008 is considered to be the first operational year of Triodos Sustainable Trade Fund. The fund is statutory located in Zeist, The Netherlands and is registered at the Chamber of Commerce under number Financial position and going concern Mainly due to the extraordinary high impairments on the loan portfolio in 2017 and 2016, the equity position of the fund decreased rapidly from EUR 2.5 million to EUR 12.7 thousand in the last two years. In the financial markets, low levels of equity and significant provisions are usually triggers for uncertainties regarding the continuity of an organization. The Board of Management of Triodos Sustainable Trade Fund has performed an in depth analysis on the current and future financial position of the fund. In this analysis the fund extrapolated all activities with limited new disbursements up and until the end of 2019, including a monthly cash flow forecast. In relation to the loan portfolio as per 31st December 2017, the forecast results in a decrease in the loan portfolio of 50% by the end of 2018 and 93% by the end of The amounts received for the reduction of the loan portfolio will be utilized to fully repay the credit line at Rabobank by early The outcome of this analysis is that, ceteris paribus of current economic conditions, the Fund is able to meet its obligations and the equity level remains low, but still positive. However, it is not certain that the current level of equity is sufficient as management s estimates may differ from the actual economic developments in the coming future and given the potential risks related to the profile of the fund as described in the risk paragraph on page 22. The Fund s ability to continue as a going concern depends on the borrowers of the Fund to fulfil their debt service obligations. Should these risks materialize, or should economic reality develop in a different direction, the Fund may not have sufficient funding to fulfill its obligations for the period after 2018 and therefore the Fund may not be able to completely fulfill its obligations towards the subordinated lenders. These circumstances indicate the existence of a material uncertainty which may cast doubt on the Fund s ability to continue as a going concern and, therefore that it may be unable to realize its assets and discharge its liabilities in the normal course of business. Parallel with the analysis, the Board of Management also had alignments with all relevant (sub)debt and guarantee providers on the actual position and the prospects. Conversations have been held with the different financiers of the fund to discuss these strategic options and possible impact on the facilities provided by them. Based on this alignment the agreements have been adjusted to maintain the going concern principles. Rabobank has agreed on a phased reduction of the credit line agreement and Triodos Bank has agreed on a corresponding phased reduction on their guarantee against Rabobank s credit line. The repayment date of the subordinated loans to Hivos and Triodos Sustainable Finance Foundation has been extended to 1st June Finally, due to the negative net result for 2017 and as a consequence the related equity position, the Board of Management has undertaken strategic reviews to establish the options for the long-term future of the fund. No decision has been made yet. 19

20 Based on the financial analysis, alignments with the (sub)debt and guarantee providers and the strategic reviews, Board of Management of Triodos Sustainable Trade Fund concludes that, most likely, the operations will be performed according to plan. For this reason the financial statements 2017 have been prepared by the Board of Management on a going concern assumption. Accounting principles The 2017 annual report is prepared in accordance with Dutch GAAP guidelines RJ C1 for small not for profit organisations. Change in presentation The basis of valuation and of the determination of results has been adjusted as follows in relation to the previous reporting period: The adjustments below have no effect on the Fund s result but concern changes within the balance sheet and /or profit and loss account. Foreign currency transactions were accounted for as of 31 December 2016 on the basis of average exchange rate applying in the relevant month. With effect from 1 January 2017, transactions denominated in foreign currency are translated into euros at the exchange rate applying on the transaction date. The new presentation method provides a more accurate picture of transactions involving foreign currencies. These changes result in a shift between the purchase price and exchange rate difference revaluation in the balance sheet. Recognition criteria If a transaction results in a transfer of future economic benefits and or when all risks relating to assets or liabilities transfer to a third party, the asset or liability is no longer included in the balance sheet. Assets and liabilities are not included in the balance sheet if economic benefits are not probable and/or cannot be reliable measured. Loans issued Loans are valued at amortized cost after deduction of specific provisions for bad debts in anticipation for non-recovery. Both loans and provisions are valued at the applicable exchange rate at the balance date. This method can be considered as the best estimate for the fair value of the loans. Use of estimates The preparation of the annual accounts requires management to make judgments and estimates and assumptions. These assumptions determine how the annual accounts are reported. The actual outcomes may differ from the estimates made by the board of management. The estimates and assumptions are therefore reconsidered. If an estimate is reviewed then it will be adjusted in the relevant period. For the following the valuation of the loan portfolio management estimates and assumptions are applicable. The board of management uses multidisciplinary credit and valuation committees that are independent of operating the operational matters. They monitor the valuation methods and make the management estimates as thoughtful as possible. 20

21 Receivables and deferred assets Receivables and deferred assets are reported at fair value. After initial recognition, the receivables and deferred assets are valued at amortized cost. Provisions will be made for non-recoverable receivables. This valuation method can be considered as the best estimate for the fair value of the other assets. Cash and cash equivalents The cash and cash equivalents are valued at nominal value and are partially at free disposal of the fund. EUR is held as a guarantee for the Triodos Bank credit line. Cash and cash equivalents represent cash in hand, bank balances and deposits with terms of less than twelve months. Subordinated loans Subordinated loans are reported at amortised cost. Due to absence of any premium or discount on these liabilities, the amortized cost is equal to the nominal value. Long term subordinated loans have a maturity date greater than one year. Short term subordinated loans do have a maturity date within one year. Due to banks Due to banks, being the at balance date used overdraft facilities. The amounts due to banks are valued at nominal value. Accounts payable and deferred liabilities Accounts payable and deferred liabilities are reported at fair value. After initial recognition, accounts payable and deferred liabilities are valued at amortized cost, being the amount payable, taking into consideration transaction costs. The fair value of the liabilities is approximately equal to the nominal value. Short term liabilities do have a maturity date within one year. Currency The annual accounts are presented in euros, the Triodos Sustainable Trade Fund s functional currency. Transactions denominated in foreign currency are translated into euros at the exchange rate applying on the transaction date. Monetary assets and liabilities denominated in foreign currency are translated at the balance sheet date into to the functional currency at the exchange rate applying at the balance sheet date. Non-monetary assets and liabilities in foreign currency that are stated at historical cost are translated into euros at the exchange rate applying at the balance sheet date. Exchange rate differences are also taken to the profit and loss account. Principles for determination of profit The principles for determination of profit are based on the attribution of income and expenses to the relevant period. The conversion of income and expenses into euros occurs at the exchange rate applying on the transaction date and is attributed to the result. Exchange rate differences, impairments and reversal of impairments are debited or credited to the result. 21

22 (Operational) expenditure Expenses are attributed to the corresponding period. When determining the accruals, expenditure paid in advance is also taken into consideration. Other income and expenses Other income and expenses are attributed to the corresponding period. Risks Liquidity risk The investment portfolio of Triodos Sustainable Trade Fund is relatively illiquid: it consists of loans for which there is no active secondary market. Liquidity risk, or the risk that Triodos Sustainable Trade Fund will not be able to attract the financial means necessary to satisfy certain obligations, is, however, in line with risk appetite of Triodos Sustainable Trade Fund. Recurrent financial obligations are mainly management fees and, in past financial years, interest payable on outstanding debt. Management expenses (including management fees) can largely be covered by expected revenues from interest-bearing investments (loans). Currency risk Currency risk remains a risk for Triodos Sustainable Trade Fund s investments in The investments made by Triodos Sustainable Trade Fund are denominated in USD or euro, reflecting the currency in which the prefinanced trade flow takes place. Triodos Sustainable Trade Fund has no currency exposure hedged during 2017 and Interest rate risk The result of the Triodos Sustainable Trade Fund is partly dependent on interest rate developments in the capital markets. Depending on the composition of the portfolio a change in the interest rate on the capital market can have a positive or negative impact on the results. In light of the fact that the loans are in principle valued at their nominal value, the Fund faces limited interest rate risk. Credit risk Credit risk is the risk that borrowers of Triodos Sustainable Trade Fund cannot fulfill their debt service obligations. Most of the Fund s investees are characterised by a relatively high credit risk profile. This is mitigated by the strategy to diversify the portfolio, limiting the exposure to one single investee and limiting the aggregate exposure to a single country. In addition, the investments are subject to a strict approval and monitoring process. A key indicator of credit risk related to individual investments in the emerging markets financial sector portfolio is quality of the underlying loan portfolio. 22

23 Notes to the balance sheet as at 31 December 2017 (amounts in euros) Assets 1. Issued loans Movements of the loans issued Position as at 1 January 19,806,662 18,514,522 Disbursements 24,899,677 28,748,413 Write off ,017,108 Repayments -27,187,361-26,926,384 Exchange rate differences -1,463, ,219 Position as at 31 December 16,018,406 19,806,662 Movements in provision for loans Position as at 1 January -1,881,421-1,640,274 Addition -1,884,512-1,186,359 Write off 1,014,425 Exchange rate difference 396,004-69,213 Position as at 31 December -3,369,929-1,881,421 Position as at 31 December 12,648,477 17,925,241 The maturity dates of the issued loans are: Less than one year 10,702,238 16,801,698 One to five years 1,946,239 1,123,543 12,648,477 17,925,241 23

24 The maturity dates of the issued loans exclusive of provisions are: Less than one year 10,749,988 17,491,318 One to five years 5,268,419 2,315,344 16,018,406 19,806,662 Geographical specification of issued loans East and South East Asia 2,827,755 1,901,756 Africa and Middle East 4,272,516 5,919,212 Latin America 5,548,206 10,104,273 12,648,477 17,925,241 Principal amounts per currency USD 11,977,515 16,792,958 EUR 670,962 1,132,283 12,648,477 17,925, Receivables and deferred assets Accrued interest on loans 672, ,628 Provisions on interest on loans -790, ,747 Debtors regarding loans 322, ,990 VAT receivables 147, ,264 Accrued interest on cash accounts 611 Other receivables 1, , ,746 24

25 3. Cash and cash equivalents Triodos Bank, EUR current account 1,096, ,905 Triodos Bank, EUR savings account 700, ,000 Rabobank, EUR current account 48,425 1,874,489 1,845,769 2,840,394 The cash and cash equivalents are partially not at the free disposal of Triodos Sustainable Trade Fund. The savings account to the amount of EUR 700,000 (2016: EUR 700,000) is not at free disposal of Triodos Sustainable Trade Fund and deposited as a guarantee for the Triodos Bank credit line. Interest conditions for the abovementioned accounts as per 31 December 2017 are as follows (per annum): Interest receivable based on Interest payable based on Triodos Bank, EUR current account n/a 4.06% Triodos Bank, EUR savings account* 0.00% 0.00% Rabobank, EUR current account** n/a 2.00% * If the outstanding balance on the Triodos Bank current account is higher than EUR 2,500,000 a negative interest rate of 0.5% is applicable. ** If the outstanding balance on the Rabobank current account is higher than EUR 0 a negative interest rate of 0.55% is applicable. Interest conditions for the abovementioned accounts as per 31 December 2016 were as follows (per annum): Interest receivable based on Interest payable based on Triodos Bank, EUR current account n/a 4.06% Triodos Bank, EUR savings account n/a 0.00% Rabobank, EUR current account n/a n/a 25

26 Equity 4. Profit reserve Position as at 1 January 2,555,569 2,489,275 Appropriation of result of previous year -769,981 66,294 Position as at 31 December 1,785,588 2,555,569 The profit reserve is at free disposal of Triodos Sustainable Trade Fund Result for the financial year Position as at 1 January -769,981 66,294 Appropriation to profit reserve 769,981-66,294 Appropriation result for the financial year -1,772, ,981 Position as at 31 December -1,772, ,981 Long-term liabilities 5. Subordinated loans Subordinated loan Triodos Sustainable Finance Foundation 2,499,042 2,852,633 Subordinated loan Hivos 1,000,000 Subordinated loan Triodos Multi Impact Fund 900,000 3,499,042 3,752,633 The subordinated loan from Triodos Sustainable Finance Foundation of USD 3,000,000 (2016: USD 3,000,000) converted to EUR 2,499,042 (2016: EUR 2,852,633) has been extended in 2018 and will be repaid in full no later than 1 June 2019 as long as the capital covenant as stated in subordinated loan agreements is met. The current minimum Capital Covenant with the Guarantor (Triodos Bank) of the Senior Lender (Rabobank) is that the Capital, as a percentage of the balance sheet total has to be minimum 30%. The subordinated loan has a fixed interest rate of 3.0% (2016: 3,0%) per year. The subordinated loan from Hivos has been extended in 2018 and will be repaid in full no later than 1 June 2019 as long as the capital covenant as stated in subordinated loan agreements is met. The current 26

27 minimum Capital Covenant with the Guarantor (Triodos Bank) of the Senior Lender (Rabobank) is that the Capital, as a percentage of the balance sheet total has to be minimum 30%. The subordinated loan has a fixed interest rate of 3.5% (2016: 3,5%) per year. Capital is measured as follows: the total of the reserves, provisions and debt that is subordinated to Triodos Bank N.V., decreased with immaterial assets, active tax latencies and participations, stated in the annual accounts. The subordinated loan from Triodos Multi Impact Fund of EUR 1,100,000 (2016: EUR 900,000) (committed EUR 2,500,000 (2016: EUR 2,500,000) has a fixed interest rate of 3.0% (2016: 3.0%) per year and will be repaid in full no later than 8 December As this loan will have to be repaid within 12 months after balance date, the amount due is classified and presented as short term liability. We refer to note 8 subordinated loans (short term). Short-term liabilities 6. Due to banks Current account Rabobank USD 9,801,337 14,104,474 The interest rate on the Rabobank current account was 3.064% for 2017 (2016: 2.075%). The total available overdraft facility per 31 December 2017 was USD 21,000,000 (2016: USD 21,000,000). 7. Accounts payable and deferred liabilities Triodos Investment Management Management fee payable 203, ,809 Interest payable on current accounts 148, ,464 Bank costs 70,190 78,237 Independent Auditor s costs 8,458 7,176 Creditors 233 Other 4,190 1, , , Subordinated loans (short-term) Subordinated loan Triodos Multi Impact Fund 1,100,000 Subordinated loan Hivos 1,000,000 1,100,000 1,000,000 27

28 The subordinated loan from Triodos Multi Impact Fund of EUR 1,100,000 (committed 2,500,000) will be repaid in full no later than 8 December 2018 as long as the capital covenant as stated in subordinated loan agreements is met. The current minimum Capital Covenant with the Guarantor (Triodos Bank) of the Senior Lender (Rabobank) is that the Capital, as a percentage of the balance sheet total has to be minimum 30%. The subordinated loan has a fixed interest rate of 3.0% (2016: 3,0%) per year. As this loan will have to be repaid within 12 months after balance date, the amount due is classified and presented as short term liability. 9. Off balance liabilities, assets and rulings In 2008, Triodos Sustainable Trade Fund received a start-up grant from Hivos of EUR 55,000. Since the start-up, expenses were lower than budgeted and only EUR 15,000 of the grant was actually used. Triodos Sustainable Trade Fund and Hivos then agreed that the remaining EUR 40,000 would be allocated for providing technical assistance to clients and prospective clients of Triodos Sustainable Trade Fund. In 2009, EUR 7,771 was used for technical assistance to Bio Farmers Union in Kyrgyzstan. In 2011, EUR 13,423 was used for technical assistance to Kuapa Kokoo in Ghana. In 2013, EUR 5,020 was used for technical assistance to Balmed Holdings. In 2015, EUR 3,627 was used for technical assistance to Junta Nacional del Café in Peru and EUR 1,418 was used for technical assistance to Soil & More International. The remaining budget at 31 December 2017 was EUR 8,741 (2016: EUR 8,741). No use of the technical assistance budget was made in 2010, 2012, 2015, 2016 and There are commitments to distribute the following off-balance sheet amounts in loans at year-end: Investment in Euros EUR 2,500,000 US Dollars USD 4,383,222 3,737,157 Triodos Sustainable Trade Fund has received a bank guarantee of EUR 19,000,000 from Triodos Bank N.V. for the outstanding credit line with Rabobank. The bank guarantee has been pledged by six parties to Triodos Bank N.V. for a total amount of EUR 6,396,000 (2016: The bank guarantee was pledged by six parties to Triodos Bank N.V. for a total amount of EUR 6,640,000). This amount includes EUR 700,000 cash which is not at the free disposal of Triodos Sustainable Trade Fund. See also note 3. Cash and cash equivalents. The cooperation between Triodos Sustainable Trade Fund and WHO is still existing. There is one remaining loan originally financed by WHO. This loan is off-balance and is provisioned in full. 28

29 Notes to the profit and loss account for the year ended 31 December 2017 Income 10. Interest on loans This includes the interest received and accrued on loans issued. 11. Administration fees Administration fees are charged to the borrowers for the disbursements of loans. 12. Interest on cash and cash equivalents This includes the interest income on cash and cash equivalents. 13. Other income In April 2016, an amount of EUR 189,592 has been received from the insolvency proceedings of HerbaCut KG in Germany. In 2013, the remaining balance of the loan and accrued interest to this client was written off. Expenses 14. Management fee Triodos Sustainable Trade Fund has no employees or directors employed. The management fee is paid to Triodos Investment Management B.V. for fulfilling its fund management role. The fee is calculated as a percentage of the loan amounts as approved by Triodos Sustainable Trade Fund. This item contains the management fee for Triodos Investment Management BV, which is 2.5% of the committed loans at the moment of first disbursement. 15. Operating expenses Administrative fees guarantees 271, ,755 Bank charges 26,082 45,548 Independent Auditor s fees 23,119 11, , ,423 The administrative fees guarantees relates to the paid fees for bank guarantee of the Triodos Bank N.V. The independent auditor s fees only relate to the audit of the 2017 and 2016 annual reports. During the year 2017 and after finalization of the audit 2016, additional fees by the independent auditor relating to the audit 2016 amounted to EUR 6,249. These additional fees are included in the 2017 fees. 29

30 16. Interest costs Interest costs include interest paid to Triodos Bank and Rabobank for the balances on the current accounts and interest paid to Hivos, Triodos Sustainable Finance Foundation and Triodos Multi Impact Fund for the subordinated loans. 17. Other expenses Legal advice 21,746 17,753 Sponsoring 6,116 1,538 Guarantee fee 5,625 1,875 Publicity expenses 2,470 2,954 Office expenses 2,426 7,654 Project advice Other expenses 4,198 42,589 32,469 The office expenses item includes charges for payment transactions, costs of courier services and membership fees. Triodos Sustainable Trade Fund does not pay any remuneration to (former) the Board of Management and / or (former) the Supervisory Board. Triodos Sustainable Trade Fund has also not advanced any loans, advances or guarantees to (former) the Board of Management and / or Supervisory Board. 18. Impairments / reversal of impairments The provisions (as detailed under Note 1) relate to seven loans (2016: five loans) in the portfolio. For two loans the fund had to make new provisions in 2017 (2016: three loans). The other five loans (2016: two loans) were already provisioned for in previous years. For one of these loans the provision was raised from 30% to 100% and for another from 51% to 71%. For two of these loans the provision was raised from 50% to 90%. For one of these loans the provision was lowered from 60% to 25% thanks to consistent payments. (2016: for one loan the provision was raised from 30% to 50%). Due to financial difficulties a borrower is unable to repay one of the loans and therefore the loan including accumulated interest was partially written off in 2017 (2016: two fully provisioned loans were written off including accumulated interest). Other additions over 2017 (equal to 2016) relate to currency changes and interest accumulated over the year. 19. Exchange rate differences This includes exchange rate differences on loans, cash and cash equivalents and other receivables and liabilities in foreign currencies. 30

31 Subsequent events For subsequent events after balance date we refer to the paragraph of Financial position and going concern as part of the notes to the balance sheet and the profit and loss account on page 19. The repayment date of the subordinated loans to Hivos and Triodos Sustainable Finance Foundation has been extended to 1st June We refer to note 5 Subordinated loans as part of the notes to the balance sheet and the profit and loss account on page 26. Other than the above there were no events after balance sheet date with material impact on the Fund or figures in this report. Appropriation of the net result The Articles of Association do not include any stipulations regarding appropriation of the result. The deficit for 2017 amounting to EUR 1,772,937 will be charged to the reserves. Related parties Triodos Sustainable Trade Fund is related to the following legal entities: 1. Triodos Investment Management B.V.: Triodos Investment Management carries out management activities for Triodos Sustainable Trade Fund and receives a competitive management fee for these activities. 2. Triodos Bank N.V. is the sole shareholder of Triodos Investment Management B.V.: Triodos Sustainable Trade Fund has deposited part of its cash and cash equivalents with Triodos Bank at arm s-length rates. Triodos Bank N.V. has provided a bank guarantee to Triodos Sustainable Trade Fund as a certainty that Triodos Sustainable Trade Fund can honour its liabilities towards the USD current account of Rabobank. 3. Triodos Sustainable Finance Foundation: Triodos Sustainable Trade Fund has received a subordinated loan from Triodos Sustainable Finance Foundation of USD 3,000,000 (2016: USD 3,000,000). 4. Triodos Multi Impact Fund: Triodos Sustainable Trade Fund has received a subordinated loan from Triodos Multi Impact Fund of EUR 1,100,000 (2016: EUR 900,000). Zeist, 29 June 2018 Board of Management Marilou van Golstein Brouwers Riella Hollander 31

32 Other information ANBI-status Stichting Triodos Sustainable Finance Foundation has a charitable status in the Netherlands (ANBI-status). Stichting Triodos Sustainable Finance Foundation is registered under RSIN: Independent auditor s report See next page for the independent auditor s report. 32

33 Independent auditor s report To: The board of management and supervisory board of Stichting Triodos Sustainable Trade Fund Report on the financial statements 2017 Our opinion In our opinion, Stichting Triodos Sustainable Trade Fund s financial statements give a true and fair view of the financial position of the Fund as at 31 December 2017, and of its result for the year then ended in accordance with Part 9 of Book 2 of the Dutch Civil Code. What we have audited We have audited the accompanying financial statements 2017 of Stichting Triodos Sustainable Trade Fund, Zeist ( the Fund ). The financial statements comprise: the balance sheet as at 31 December 2017; the profit and loss account for the year then ended; and the notes, comprising a summary of the accounting policies and other explanatory information. The financial reporting framework that has been applied in the preparation of the financial statements is Part 9 of Book 2 of the Dutch Civil Code. Material uncertainty related to going concern We draw attention to the financial position and going concern paragraph in the notes on pages 19 and 20 of the financial statements which indicates that the Fund s ability to continue as a going concern depends on the borrowers of the Fund to fulfil their debt service obligations. These conditions, along with other matters, as set forth in the notes on pages 19 and 20 indicate the existence of a material uncertainty which may cast significant doubt about the Fund s ability to continue as a going concern. Our opinion is not modified in respect of this matter. The basis for our opinion We conducted our audit in accordance with Dutch law, including the Dutch Standards on Auditing. Our responsibilities under those standards are further described in the section Our responsibilities for the audit of the financial statements of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. 33

34 Independence We are independent of Stichting Triodos Sustainable Trade Fund in accordance with the Verordening inzake de onafhankelijkheid van accountants bij assuranceopdrachten (ViO Code of Ethics for Professional Accountants, a regulation with respect to independence) and other relevant independence requirements in the Netherlands. Furthermore, we have complied with the Verordening gedrags- en beroepsregels accountants (VGBA Code of Ethics for Professional Accountants, a regulation with respect to rules of professional conduct). Report on the other information included in the annual report In addition to the financial statements and our auditor s report thereon, the annual report contains other information that consists of: the report by the board of management; the report of the supervisory board; general data; the other information pursuant to Part 9 of Book 2 of the Dutch Civil Code; and glossary. Based on the procedures performed as set out below, we conclude that the other information: is consistent with the financial statements and does not contain material misstatements; contains the information that is required by Part 9 of Book 2 of the Dutch Civil Code. We have read the other information. Based on our knowledge and understanding obtained in our audit of the financial statements or otherwise, we have considered whether the other information contains material misstatements. By performing our procedures, we comply with the requirements of Part 9 of Book 2 of the Dutch Civil Code and the Dutch Standard 720. The scope of such procedures was substantially less than the scope of those performed in our audit of the financial statements. The board of management is responsible for the preparation of the other information, including the report by the board of management and the other information in accordance with Part 9 of Book 2 of the Dutch Civil Code. Responsibilities for the financial statements and the audit Responsibilities of the board of management and the supervisory board for the financial statements The board of management is responsible for: the preparation and fair presentation of the financial statements in accordance with Part 9 of Book 2 of the Dutch Civil Code; and for such internal control as the board of management determines is necessary to enable the preparation of the financial statements that are free from material misstatement, whether due to fraud or error. As part of the preparation of the financial statements, the board of management is responsible for assessing the fund s ability to continue as a going concern. Based on the financial reporting framework mentioned, the board of management should prepare the financial statements using the going-concern basis of accounting 34

35 unless the board of management either intends to liquidate the fund or to cease operations, or has no realistic alternative but to do so. The board of management should disclose events and circumstances that may cast significant doubt on the fund s ability to continue as a going concern in the financial statements. The supervisory board is responsible for overseeing the fund s financial reporting process. Our responsibilities for the audit of the financial statements Our responsibility is to plan and perform an audit engagement in a manner that allows us to obtain sufficient and appropriate audit evidence to provide a basis for our opinion. Our audit opinion aims to provide reasonable assurance about whether the financial statements are free from material misstatement. Reasonable assurance is a high but not absolute level of assurance which makes it possible that we may not detect all misstatements. Misstatements may arise due to fraud or error. They are considered to be material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements. Materiality affects the nature, timing and extent of our audit procedures and the evaluation of the effect of identified misstatements on our opinion. A more detailed description of our responsibilities is set out in the appendix to our report. Rotterdam, 29 June 2018 PricewaterhouseCoopers Accountants N.V. J. IJspeert RA 35

36 Appendix to our auditor s report on the financial statements 2017 of Stichting Triodos Sustainable Trade Fund In addition to what is included in our auditor s report we have further set out in this appendix our responsibilities for the audit of the financial statements and explained what an audit involves. The auditor s responsibilities for the audit of the financial statements We have exercised professional judgement and have maintained professional scepticism throughout the audit in accordance with Dutch Standards on Auditing, ethical requirements and independence requirements. Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error. Our audit consisted, among other things of the following: Identifying and assessing the risks of material misstatement of the financial statements, whether due to fraud or error, designing and performing audit procedures responsive to those risks, and obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the intentional override of internal control. Obtaining an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the fund s internal control. Evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the board of management. Concluding on the appropriateness of the board of management s use of the going concern basis of accounting, and based on the audit evidence obtained, concluding whether a material uncertainty exists related to events and/or conditions that may cast significant doubt on the fund s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor s report and are made in the context of our opinion on the financial statements as a whole. However, future events or conditions may cause the fund to cease to continue as a going concern. Evaluating the overall presentation, structure and content of the financial statements, including the disclosures, and evaluating whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with the supervisory board regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. 36

37 Visiting address Stichting Triodos Sustainable Trade Fund Nieuweroordweg 1 PO Box AB Zeist The Netherlands Telephone +31(0) Fax +31(0) Publication details Triodos Sustainable Trade Fund Annual Report 2017 Published June 2018 Graphic design Michael Nash Associates, London Layout Via Bertha, Utrecht, the Netherlands Contact If you have comments or questions about this report, please contact Triodos Investment Management B.V. via the following address: sustainabletrade@triodos.com This report can also be read or downloaded from: 37

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