Climate Change Data

Environmental Metrics

ESG Focus Areas

• Financial Capital
• Manufactured Capital
• Human Capital
• Intellectual Capital
• Social Capital
• Natural Capital

Social Achievements

• Well-being effect of employment
• Decrease in cash-related crime
• Social benefits of home ownership

Climate Goals & Targets

Environmental Challenges

• Limited data availability
• Impact measurement and valuation is a young science
• Co-responsibility for value chain activities
• Uncertainty over models and data
• Uncertainty over valuation elements

Mitigation Strategies

• Conservative approach to prevent overly positive view
• Use of primary data where possible, pragmatic approach otherwise
• Use of best-estimate valuation, conservative option selected where uncertainty exists

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Integrated Profit & Loss (IP&L) Assessment Methodology (IAM) of Impact Institute

Environmental Metrics

Social Achievements

• Improved NPS scores reflecting clients’ appreciation of digital strength and trusted relationships.

Governance Achievements

• All AML activities are now centralised and over 3,000 FTEs are currently fully committed to these activities.
• Expanded and enhanced digital identity verification and onboarding procedures for all clients.

Climate Goals & Targets

Environmental Challenges

• Covid-19 impact on the economy.
• High impairments (EUR 703 million), partly due to an exceptional client file and Covid-19.
• Pressure on deposit margins.
• Ongoing investigation into AML activities.
• CIB's inability to generate required profitability at an acceptable risk level.

Mitigation Strategies

• Close dialogue with clients on support measures.
• Website for SME clients with information and solutions.
• Accelerating digitalisation.
• Cost management to achieve a cost level of around EUR 5.1 billion for 2020 (excluding provisions for the CIB review).
• CIB review to improve long-term profitability and align risk profile.
• De-risking measures in CIB, focusing on Northwest Europe and Clearing.
• Stricter lending criteria and credit limits in CIB.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: IAS 34 Interim Financial Reporting

Third-party Assurance: Ernst & Young Accountants LLP

Environmental Metrics

ESG Focus Areas

• Sustainability

Environmental Achievements

• Announced the sale of the Neuflize OBC office building in Paris to relocate to a more sustainable building.

Social Achievements

• Shared regular reports with Private Banking clients on the sustainability impact of their investments.
• Employee engagement score of 84% in a recent staff survey.

Governance Achievements

• Making progress on AML remediation programmes with around 3,400 FTEs fully committed.

Climate Goals & Targets

Environmental Challenges

• Impact of negative interest rates.
• Increased coronavirus infections leading to partial lockdown.
• Covid-19 impact carrying over into 2021.
• Regulatory developments and elevated impairments due to Covid-19.
• AML investigation ongoing.

Mitigation Strategies

• Lowering threshold for negative interest rates on client deposits.
• Cautious outlook and adherence to government prevention measures.
• Supporting clients wherever possible.
• Finalising strategy review and making progress on winding down the CIB non-core portfolio.
• Focusing on mitigating the impact of negative interest rates.
• Full cooperation with AML investigation.

Supply Chain Management

Climate-Related Risks & Opportunities

Awards & Recognition

• Best Dutch mortgage provider (‘Gouden Lotus Awards’ and ‘Gouden Spreekbuis Award’)
• Best overall European Private Bank (‘Wealth Briefing Awards’)

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Climate Goals & Targets

Environmental Challenges

• Lack of available data for some investment products to fully assess sustainability.
• Developing European regulations on sustainable investing.

Mitigation Strategies

• Using temporary solutions to assess adverse consequences until full data availability.
• Engaging in dialogue with companies to improve their sustainability performance (845 companies in 2021).

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Global Compact, OECD Guidelines for Multinational Enterprises, EU Taxonomy