Hans ten Cate and Bert Heemskerk
A sustainanable position in the market
2007 has been a tumultuous year for the banking industry in many respects. Public confidence in financial institutions was dented on the back of the credit crisis. The media called the banks on the carpet over their investments in controversial weapons, as well as their financing of customers whose operations adversely impact our climate. Furthermore, the sector was once more reminded of the fact that customers are highly critical of financial products whose terms they believe lack transparency. And finally, Rabobank had to take decisive action during our cycling team’s participation in the Tour de France. At the same time, major financial institutions are expected to be highly pro-active in dealing with the issues that face society, and with reason. After all, financial institutions have a significant influence on how relevant social issues are tackled, whether it be by extending micro-credits in the fight against poverty or by financing the generation of renewable energy.
Our 2007 Annual Sustainability Report addresses all of these issues, and many more. In doing so, it complies with international standards on sustainability reporting. As a result, the report is rather sizeable, which is why we only publish it on the Internet. In addition, it has now become a tradition for Rabobank to issue a publication in which we present our stakeholders with a number of case studies that illustrate the social issues we, as a bank, face. We have compiled a range of over twenty subjects that lend themselves very well to debate with stakeholders, both inside and outside of our bank. We invite you to let us know your views.
‘A sustainable position in the market’ is the motto for the Rabobank Group’s 2007 Annual Sustainability Report. In it, we express the fact that CSR has an impact on the economy, and it does in two ways. Firstly, awareness is growing that, in considering social and ethical aspects, we contribute to managing our risks, as we prevent the economy from becoming unstable or confidence in the banking sector from being shaken. Secondly, it is becoming increasingly apparent how much CSR can contribute to the prevention and resolution of issues such as environmental pollution, climate change and poverty.
CSR is gradually working its way into the core of our business operations. For instance, 2007 was the first year in which we considered a number of CSR aspects in many of our lending decisions. Rather than to tell our customers off, we do this to identify risks and opportunities inherent in larger credit facilities and transactions. In addition, we substantially extended our range of sustainable investment products, developed innovative products in other sectors and made a robust start in incorporating CSR into our large real estate portfolio. We also took action to exclude dubious companies from our pension fund’s investments and are taking steps towards achieving carbon-neutral business operations. Those who want to know about the return on these efforts we gladly refer to various lists that rank major companies according to their qualities as employers, their transparency, etc., in which Rabobank is often well-ranked. In fact, we frequently head a list.
We have identified three perspectives from which we wish to put CSR into practice and about which we would like to exchange views with stakeholders. The first of these perspectives is: we enter into lasting relationships with our customers, stakeholder groups and the world in which we operate. A world of which we are in charge for the benefit of generations to come; in other words: a world we borrow from our children. This requires long-term attention. Our second perspective is: we wish to conduct our banking operations in a respectable manner, based on the four core values underpinning our Code of Conduct, which are respect, integrity, professionalism and sustainability. The Code also provides rules of conduct that govern our dealings with customers, employees and society at large. Given the importance we attach to the Code of Conduct, we will bring it to the attention of our employees on numerous occasions in 2008. Our third perspective is: we wish to support our customers in carrying on their business in a sustainable manner. True to our cooperative principles, we provide them with know-how and innovative products that create welcome opportunities.
“Rabobank wishes to be a committed bank in the thick of society, working on the sustainable development of prosperity and well-being.”
A fitting citation from our Code of Conduct to conclude this foreword.
Hans ten Cate
Member of the Executive Board
Rabobank Groep
CSR portfolio holder
Bert Heemskerk
Chairman of the Executive Board
Rabobank Groep