Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainable Finance
• Climate Change
• Sustainable Development Goals

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Mismatch between finance and sustainable projects
• Lack of diversity in the financial system
• Inaccessibility of sustainable investments for retail investors
• Short-term focus of capital markets

Mitigation Strategies

• Recalibrating regulatory instruments (capital requirements, liquidity rules, levies)
• Creating a diverse financial ecosystem
• Developing a new EU regulatory regime for sustainable investment funds accessible to citizens
• Adopting Loyalty Shares (L-shares) to encourage long-term investment

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Change
• Social Inclusion
• Biodiversity
• Sustainable Investments
• Responsible Banking

Environmental Achievements

• Reduced own emissions from 1011 tonnes CO2e in 2020 to 740 tonnes CO2e in 2021 (27% reduction)
• Avoided over 851 ktonnes of CO2e emissions through renewable energy projects
• Successfully issued a EUR 250 million subordinated green bond to fund lending in renewable energy, green buildings, and sustainable land use.
• Financed approximately 33,000 hectares of organic farmland and 33,000 hectares of nature and conservation land.

Social Achievements

• Financed about 800 social projects and 220 social housing projects, providing accommodation for approximately 59,000 people.
• Triodos Investment Management’s financial inclusion funds financed 111 financial service providers in 47 countries, reaching approximately 18.6 million individuals.
• Signed a guarantee agreement with the European Investment Fund to provide up to EUR 200 million in loans to entrepreneurs in the creative and cultural sectors.

Governance Achievements

• Successfully completed a leadership transition within the Executive Board.
• Issued a green bond, which qualifies as a Tier 2 capital instrument, further bolstering financial resilience.
• Announced the decision to pursue a listing of its Depository Receipts on a Multilateral Trading Facility (MTF).

Climate Goals & Targets

Environmental Challenges

• Persistently low interest rates set by the European Central Bank.
• Increasing costs associated with meeting growing regulatory requirements.
• Suspension of trade in Depository Receipts (DRs).
• COVID-19 pandemic's impact on the global economy and business operations.
• Competition from mainstream banks increasingly embracing sustainability.

Mitigation Strategies

• Introduced negative interest above EUR 100,000 and a monthly fee on current and savings accounts in the Netherlands.
• Improved pricing approach for lending, making it more profitable.
• Issued a EUR 250 million subordinated green bond to diversify the capital base.
• Exploring intermediate solutions to mitigate the consequences of suspended DR trading.
• Pursuing a listing on an MTF to improve DR tradability and access to new capital.
• Implementing a restricted buyback programme for DR holders.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Procurement policy aiming to engage sustainable suppliers and improve their social, environmental, and cultural impact.

Climate-Related Risks & Opportunities

Physical Risks

• Storms, floods, and droughts impacting assets.
• Impact on weather conditions affecting renewable energy generation.

Transition Risks

• Minimal due to focus on financing enterprises contributing to a low-carbon future.

Opportunities

• Development of energy-efficient products and services.

Reporting Standards

Frameworks Used: GRI Standards

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Green mortgages incentivizing energy efficiency.
• Triodos Impact Portfolio (Germany).
• Socially responsible investment (SRI) and impact fund platform (Spain).

Awards & Recognition

• Most Active Lead Arranger in Clean Energy deals (6th year in succession).

Environmental Metrics

ESG Focus Areas

• Biodiversity

Environmental Achievements

• Reduced negative impacts on biodiversity by excluding harmful sectors, companies, and practices based on minimum standards.
• Positively evaluated businesses developing or adopting solutions to environmental degradation and contributing to environmental regeneration.
• Engaged with portfolio companies to mitigate negative impacts and foster positive practices linked to biodiversity.
• Supported industry-wide initiatives to improve biodiversity impact measurement within the financial sector.
• Financed projects in sustainable food and agriculture, renewable energy, and sustainable buildings.

Social Achievements

• Supported sustainable food and agricultural systems, promoting environmentally sustainable approaches, consumption patterns, and responsible pricing in food value chains.
• Financed projects that promote healthy diets and fair pay for farmers and workers.
• Supported initiatives challenging the status quo to regenerate society and the planet.
• Engaged with portfolio companies on sustainable sourcing of wood and palm oil, requiring FSC or RSPO certification.

Governance Achievements

• Established minimum standards for financing and investments, excluding businesses involved in deforestation, environmental pollution, and pesticide production.
• Required companies in high-risk sectors to have additional policies or certifications and excluded those linked to major controversies.
• Required companies producing potentially harmful products to acknowledge risks, have reduction programs, and report results.
• Expected countries in government bond investments to follow the UN Convention on Biological Diversity and related documents.
• Initiated and supported industry-wide initiatives like the Finance for Biodiversity Pledge and the Platform for Biodiversity Accounting Financials (PBAF).

Climate Goals & Targets

Environmental Challenges

• Difficulties in measuring biodiversity’s role in ecosystem resilience and establishing its monetary value.
• Mispricing of natural capital, making it harder to create business cases for nature restoration.
• Biodiversity-related activities not immediately producing financial returns under current market conditions.
• Need to address indirect drivers of biodiversity loss, which requires addressing systemic issues in socio-economic systems.
• Social-environmental trade-offs in financing activities, such as agricultural activities in emerging markets.

Mitigation Strategies

• Advocating for a fundamental shift in the definition of fiduciary duty of financial institutions, moving away from narrow to broad stakeholder value.
• Focusing on the effects of economic and financial activities on nature and landscapes, rather than solely on mitigating financial risks.
• Activating systems and processes that incorporate non-financial values in decision-making.
• Employing tools and data to map material nature-related financial risks.
• Engaging with companies and institutions to drive positive change, including setting science-based emissions targets.

Supply Chain Management

Responsible Procurement

• Sustainable sourcing of wood and palm oil
• Exclusion of companies involved in deforestation, pollution, and pesticide production

Climate-Related Risks & Opportunities

Physical Risks

• Climate change impacts on ecosystems and biodiversity

Transition Risks

• New biodiversity-related regulations and stranded assets

Opportunities

• Investing in nature-based solutions for carbon sequestration

Reporting Standards

Frameworks Used: UN Convention on Biological Diversity (CBD), Finance for Biodiversity Pledge, Platform for Biodiversity Accounting Financials (PBAF)

Certifications: FSC, RSPO, ASC

UN Sustainable Development Goals

• SDG 13 (Climate Action)
• SDG 14 (Life Below Water)
• SDG 15 (Life On Land)

Triodos Bank's initiatives contribute to these goals by reducing negative impacts on biodiversity, promoting sustainable practices, and investing in nature-positive solutions.

Environmental Metrics

ESG Focus Areas

• Climate Change
• Environmental Sustainability
• Biodiversity

Environmental Achievements

• Avoided over 90,919 tonnes of CO2e emissions annually from renewable energy projects, equivalent to avoiding 620 million kilometers travelled by car.
• Sequestered approximately 579 tonnes of CO2e through nature projects.
• Avoided 819 tonnes of CO2e emissions through green building projects.

Social Achievements

• Financed projects contributing to community development (Sheriffhales Community Energy).
• Supported the renovation of the Ligue Royal Belge pour la protection des Oiseaux's Wildlife Care Centre, improving animal care and volunteer engagement.
• Supported Butterfly's inclusive care locations with tiny homes, addressing affordable housing and staff shortages in the care sector.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Insufficient government plans to limit global temperature rise to 1.5°C.
• Lack of firm agreement on phasing out fossil fuels at COP28.

Mitigation Strategies

• Investing in the energy transition, reducing emissions with customers, and investing in nature-based solutions to reach net-zero emissions by 2035.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Investing in renewable energy and energy efficiency

Reporting Standards

Frameworks Used: GRI

Certifications: Null

Third-party Assurance: Independent external auditor (details available at www.triodos.com/investor-relations/debt-investors/green-bond-framework)

UN Sustainable Development Goals

• 7 (Affordable and Clean Energy)
• 13 (Climate Action)
• 15 (Life on Land)

The Green Bond contributes to climate change mitigation through renewable energy, nature conservation, and green buildings.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed