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Rabobank at a Glance About Us Our Road to Paris Carbon Footprint of Our Assets Food Transition Climate and Energy Transition A More Inclusive Society Annex 1 Our Impact in 2021
Rabobank at a Glance About Us Our Road to Paris Carbon Footprint of Our Assets Food Transition Climate and Energy Transition A More Inclusive Society Annex 1
2
About This Report
"Our Impact in 2021" explains who we are, how we Disclaimer
The production of this Impact Report was overseen by a steering committee with
facilitate transitions, and how we strive for positive, representatives of Communications & Corporate Affairs, Finance (Group Reporting)
sustainable impact on society. This year, it also gives and Group Sustainability. The report was submitted to internal experts for review.
Our external auditor has not performed an audit on this report. We report on the
a preview of "Our Road to Paris" report, which is our basis of the best available data and the most suitable methodologies and
approach to Paris Alignment, and will be available in methodological choices for our portfolios.
the second half of 2022. The transition to a sustainable economy is a long-term transition. In the current
stage of the transition, we are confronted with the limited availability of climate-
related data. It is inevitable to use estimates and models until improved data will
Our Reporting Approach become available. Our expectations on the increase of data quality are based on
Next to our Impact Report, we will publish our Annual Report 2021 on March 10, reporting obligations as currently developed. New regulations on reporting will
2022. It contains the Management Report; the Financial Statements; the likely become effective in the coming years. Harmonized standards and calculation
Remuneration Report and the Report of the Supervisory Board. methods are expected to be developed and will also improve data quality. Any
TheAnnual Report takes an integrated approach that highlights our updates as a result of methodological changes or new information that lead to
contribution to society, stakeholders, and our clients specifically, by providing materially different outcomes than previously reported will be addressed in
both financial and non-financial information. Throughout the report, we provide following reports.
detailed performance data.
We have measured the carbon footprint of our assets in accordance with the
standards we discuss in Annex 1.
Published by
Rabobank Communications & Corporate Affairs, Croeselaan 18, Postbus 17100,
3500 HG Utrecht, Nederland, Phone: +31 (0)30 216 0000, E-mail:
jaarverslagen@rabobank.nl
Cover photo
The cover photo was taken at the Upcycle Workshop of Stichting Stunt, a partner
of Rabobank. Stichting Stunt employs people to enter the labor market which
contributes to creating a more diverse and inclusive society.
Downloads
Rabobank at a Glance About Us Our Road to Paris Carbon Footprint of Our Assets Food Transition Climate and Energy Transition A More Inclusive Society Annex 1
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Foreword
Backed by strong economic rebound, Rabobank posts year. In 2021 we also scaled up multiple fintech innovations such as SurePay and
net result of EUR 3,692 million in 2021. TreasurUp. SurePay, an original Rabobank “Moonshot”, that makes online
The economic rebound relative to 2020 created a tailwind for Rabobank. payments more personal and safer with the ‘IBAN Name Check’, is proving its
Although Covid-19 continued to impact society in 2021, government support scalability with business expansions into the UK and France. Also, more than
measures cushioned its hold on the economy, which grew significantly. 420.000 people engaged with us via our “Talking About Money” campaign,
Improved market conditions led to a net release of loan impairment charges and helping them to get insights on money matters. Our members, again, were fully
positive asset revaluations. Rabobank’s business performance was sound, as engaged with the bank, as 500,000 of them voted for their favorite local club
reflected by the resilient and growing Food & Agri portfolio and dominant or association, and made possible that we distributed EUR 13 million to 30,000
position in the Dutch residential mortgage market. In this environment, clubs and associations this year. We continued to optimize our operating model
Rabobank posted a net result of EUR 3,692 million. in our global franchise and our Dutch banking infrastructure in 2021. Our
employees showed dedication and resilience in the face of the ongoing effects
Last year was unquestionably marked by the unpredictable character of the of the Covid-19 pandemic, and guided our clients in the challenges they faced.
Covid-19 pandemic, including the emergence of new variants of the virus and I would like to express my gratitude for their commitment in yet another
the resulting restrictive measures. Worldwide supply chain challenges, extraordinary year.
including labor shortages, and increasing inflation were also part of the
economic uncertainty. However, despite these challenges, we saw economies Update KYC
worldwide recover quickly and better than expected,. We also see this recovery In our role as gatekeeper to the financial sector we feel an obligation to protect
reflected in the performance of the majority of our clients and the bank. 2021 our customers, members and society from financial crime. It is our strong belief
was also marked by severe climate-related events and the IPCC report reiterating that in a better world there is no place for criminal money obtained from
the urgency of combating climate change. In addition to tackling today’s activities such as child labor or the trafficking of drugs, humans or weapons.”
challenges, the Food & Agri sector also has a major role to play in solving the From 2016-2021 Rabobank has invested a total amount of EUR 1,600 million in
systemic puzzles that lie ahead. In these transitions Rabobank aspires to be a its KYC organization. And the number of employees has grown from around
partner. Together with our clients and other stakeholders, we are committed to 1,700 in 2016 to currently 4,900 employees. KYC has been and is still one of
supporting a sustainable and profitable global food system, as we emphasized Rabobank’s top priorities. On 15 November 2021 Rabobank announced that a
at last year’s UN Food Systems Summit. To back this up, we launched the Rabo draft instruction (voorgenomen aanwijzing) was received from the Dutch
Carbon Bank which has led to the first transaction of carbon reduction units from Central Bank (DNB) on 12 October 2021. Subsequently, Rabobank received the
smallholder farmers purchased by a large corporate. instruction (aanwijzing) on 23 December 2021. In this instruction, DNB
determines that Rabobank does not meet the requirements of the Dutch Anti-
We also made progress in other strategic areas. With Rabo SmartBuilds we Money Laundering and Anti-Terrorist Financing Act (Wet ter voorkoming van
announced our target of building 12,000 modular, climate-neutral, affordable witwassen en financiering van terrorisme, Wwft) and orders Rabobank to
rental homes over the next ten years in the Netherlands. With 20 municipalities remedy deficiencies regarding its Dutch retail division’s compliance with the
we are exploring concrete opportunities and we expect to start building this Wwft by 15 December 2023 at the latest.Rabobank at a Glance About Us Our Road to Paris Carbon Footprint of Our Assets Food Transition Climate and Energy Transition A More Inclusive Society Annex 1
4
Rabobank also announced on 15 November 2021 that DNB informed the bank
that a separate punitive enforcement procedure would commence, the
outcome of which is not yet known. While we have made improvements, we
acknowledge that we have not yet remedied the deficiencies in order to
adequately meet the requirements of the Wwft. We are set to continue and
increase our efforts to build a robust and future-proof Know Your Customer
(KYC) organization. To reinforce this, we will create a new position within the
Managing Board with a specific focus on KYC compliance.
Outlook
Our clients remain confronted by disruptions to supply chains, rising energy
prices, and increasing inflation, while also working to meet our shared climate
goals. Geopolitical unrest is undiminished and trade wars are reshaping the
global economy. These impactful developments have not halted. Additionally,
Covid-19 remains among us, and each new wave or variant of the virus – and the
corresponding governmental, restrictive measures – affects our clients and the
credit quality of our loan portfolio. We also have to assume further impact from
the persisting low interest rate environment. Overall, we remain cautious with
respect to the operating environment in 2022 and the years to come. In this
operating environment, our focus as a cooperative bank remains more than
ever on the transitions in food, climate and energy, and working towards a more
inclusive society. As such, we recover and regenerate – we are “Growing a better
world together” – for both current and future generations. We look forward to
a cooperative future!
Wiebe Draijer, Chair of Rabobank's Managing BoardRabobank at a Glance About Us Our Road to Paris Carbon Footprint of Our Assets Food Transition Climate and Energy Transition A More Inclusive Society Annex 1
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Contents
Foreword 3 Our Contribution to the
Rabobank at a Glance 6 Transitions
About Us 7
Our Fundamentals 8
Food Transition 12
Our Road to Paris 9 Read more
Carbon Footprint of Our Assets 11
Annex 1 28
Climate and Energy Transition 17
Read more
A More inclusive Society 24
Read moreRabobank at a Glance About Us Our Road to Paris Carbon Footprint of Our Assets Food Transition Climate and Energy Transition A More Inclusive Society Annex 1
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Rabobank at a Glance
Mission Growing a better world together
The Netherlands International
84 Local Rabobanks 36 Countries
Geographical split of our international private sector loan portfolio
Domestic
Retail Banking 33.8% 28.1%
146 2.1
offices million 6.0%
members
8.1 0.8 10.5% 0.2%
million private million corporate 21.4%
customers customers
What We Offer in the Netherlands What We Offer Internationally
(amounts in EUR billions) (amounts in EUR billions)
195.4 Dutch Private Mortgages 67.2 Private sector lending to Food & Agri
35.7 Lending to Food & Agri 1 34.7 Private sector lending to Trade, Industry, and Services
74.5 Lending to Trade, Industry and Services 1 33.1 Leasing
1.7 Billion point-of-sale terminal transactions
144.1 Savings
62.5 Assets Under Management
1.4 Leasing
8,903 BPD transactions
1 W&R the Netherlands & domestic DLL portfolio includedRabobank at a Glance About Us Our Road to Paris Carbon Footprint of Our Assets Food Transition Climate and Energy Transition A More Inclusive Society Annex 1
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About Us
Our History Rabobank plays an active role in Our Cooperative Governance Our Cooperative Mindset
Rabobank grew out of small credit society We are a cooperative with members We believe that we can make each other
unions founded by farmers and rather than shareholders. Customers can better and create more opportunities
horticulturists dating back to the end of Given the strong local presence of the demonstrate their involvement in the through collaboration. This is what the
the 19th century. These farmers wanted cooperative, Rabobank plays an active bank by becoming members. More than cooperative mindset is all about. We can
to modernize in order to meet increasing role in society. Local Rabobanks two million customers are currently only tackle the urgent societal,
demands, but had limited or no access continue to help build strong, livable members of Rabobank. They approve economic and ecological challenges in
to credit. They solved this problem by communities in municipalities and the bank's course. food, climate and energy, and inclusivity
founding credit cooperatives. The regions. And internationally, Rabobank if we work together.
farmers were not stockholders but helps rural clients continue to innovate Since the founding of the first credit
members working together on structural and become more sustainable. This is cooperative in 1895, Rabobank’s The future is cooperative
solutions to the challenges they faced, how we turn our mission into reality: governance has been regularly adapted
while giving back to society. The success Growing a better world together. to reflect social developments, changes Our Values and Behaviors
of this cooperative model attracted in the banking sector, and strategic Defining our cooperative mindset and
other citizens who brought their savings Rabo Foundation considerations. On January 1, 2016, all creating a context in which people can
to the local "banks." We allocate part of our net profit in the Dutch local cooperative Rabobanks and trust us as an organization means
Rabo Foundation. Rabo Foundation was the cooperative central organization defining our shared values and
As these cooperatives worked locally, established in 1974 as Rabobank’s social were merged into one cooperative with behaviors in a way that others can rely
they needed a central bank to support fund. As an independent foundation its one financial statement and one on, like a compass.
them in various areas. This is why they mission is to invest in people's self- banking license: Coöperatieve
founded what is now the cooperative reliance. In the Netherlands, the Rabo Rabobank U.A. (Rabobank)1. Our Rabobank Compass defines our
Rabobank. Today we work with more Foundation works with local Rabobanks, values and behaviors which we describe
than 43,000 employees (FTE) in 37 to focus on social entrepreneurship, This fundamental governance change below.
countries. Our international focus is on employability and financial reliance. was intended to strengthen both the
the Food and Agriculture sector. In the Internationally it supports smallholder cooperative and the bank, as well as the • Client-driven and action-oriented:
Netherlands, we also offer private farmers and their cooperatives. unity between the two. The disciplining "I go the extra mile for my clients."
customers and commercial clients a member say and influence are firmly • Purposeful and courageous:
wide variety of financial products and anchored in the governance locally, "I dare to make a difference in the
services. Rabobank Group also includes regionally and centrally. The tasks and world."
BPD, Obvion, and DLL which, responsibilities of the governance • Professional and considerate:
respectively, provide real estate, bodies are formalized in the Articles of "I am doing the right thing
mortgage, and leasing solutions. Association and regulations. These are exceptionally well."
discussed in general terms in the chapter • Bring out the best in each other and
"Corporate Governance" in the keep learning:
Annual Report. "I make you better."
1 The abbreviation “U.A” stands for the “uitgesloten aansprakelijkheid” (“excluded liability”) of the members.Rabobank at a Glance About Us Our Road to Paris Carbon Footprint of Our Assets Food Transition Climate and Energy Transition A More Inclusive Society Annex 1
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Our Fundamentals
Mission Food Transition Climate and Energy Transition Transition to a More Inclusive therefore negatively impacts the
Our mission is: Enough affordable, nutritious food for all, Climate change and the transition towards Society transition to a more inclusive society.
within planetary boundaries a more sustainable energy supply and Everyone deserves a fair and equal chance
Growing a better world together Moving towards a more sustainable way consumption to pursue their ambitions Furthermore, the climate and energy
to feed the growing world population Climate change is one of the biggest Whether that means finding a transition also enables the Food and
This is what we stand for and what we (also known as the Food Transition) is a threats to the planet and to the way we comfortable home, performing Agriculture sector to reduce its
aim to achieve by being client-driven, crucial transition, encompassing many live. Therefore, the energy transition is a meaningful work, or investing in a emissions and invest in more sustainable
action-oriented, purposeful, of the UN Sustainable Development fundamental transition that is needed in business. As a cooperative bank that farming practices. In turn this poses
courageous, professional, and Goals (SDGs). As a cooperative that most sectors, including the F&A sector. finances farmers around the world and challenges for their current business
considerate, as well as by trying to bring works with clients and partners all over Moreover, it is an instrument with great retail customers in the Netherlands, we model.
out the best in each other while the world and throughout the entire potential to create a more inclusive promote financial well-being and
continually learning. food system, Rabobank is in the right society if the benefits of the transition security for our customers and their We believe we can have a positive
place. Leveraging our financial are distributed equitably. To tackle this communities. That includes removing impact if we focus on all three transitions
Vision expertise, sector knowledge and global shared challenge we as society at large barriers to financial products and of Food, Climate and Energy and
We are committed to making a F&A networks, we work together on need to change how we produce and services, and increasing access to the Inclusive Society. By defining these
difference as a cooperative, client- sustainable food solutions. This includes consume energy. We must also advance labor market and affordable, sustainable transitions in this way we are not seeking
driven, all-finance bank. We want to offering new financial tools, like to a circular economy, meaning more housing. Through these efforts, we aim to oversimplify the complexity of our
make a substantial contribution to sustainability-linked loans and blended sustainable use – and regeneration – of for more diversity and inclusion in societal, economic and ecological
feeding the world sustainably and to finance solutions. resources. society at large, because we believe that context. Rather we are looking for ways
fostering well-being and prosperity in is key in our mission. to facilitate sustainable business models
the communities in which we are active. Our global team of RaboResearch food We support cooperative solutions and to focus on adding value in a
We aim to be a responsible bank, and agribusiness analysts provides and sustainable entrepreneurship It's all connected systemic way.
championing issues that have a major sector-specific insights to help clients
impact on society, the environment, and improve their businesses. We work with Together with clients and partners, we All these transitions and themes are
on our clients. This is why we actively trusted partners — from business, are speeding up these essential intertwined. For example, climate
engage in facilitating transitions which government, civil society and transitions: from facilitating sustainable change can also drive more people into
matter to us and stakeholders now and throughout the value chain — to jointly entrepreneurship via green loans, poverty and reduces inclusion. In the
in the future: transition to a food system that provides impact loans and innovation loans to Netherlands there are more than
enough affordable, nutritious food for advising companies that want to switch 550,000 households where people are
Food, Climate and Energy, and a all, within planetary boundaries. to renewable energy sources; from living in energy poverty, meaning that
more Inclusive Society accelerating carbon farming to advising their energy bills are relatively high and
customers on energy reduction in their they either have no money to invest in
homes and businesses. With our industry sustainable solutions that would reduce
knowledge and financial tools, we monthly costs, and/or they are not
support cooperative solutions that are allowed to because of a rental
good for people, for businesses and for agreement. This creates inequality and
the planet.Rabobank at a Glance About Us Our Road to Paris Carbon Footprint of Our Assets Food Transition Climate and Energy Transition A More Inclusive Society Annex 1
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Our Road to Paris
Climate change is quickly becoming an integral feature of the electricity produced on our behalf. Action. The guidelines outline a number Protocols. There are also different ways
Scope 3 emissions are all emissions we of principles, covering the time frame in of measuring these emissions.
financial world. Rabobank published its first climate change indirectly emit in our upstream and which targets should be set,
disclosure "Rabobank and Climate Change" in 2020. In this section, downstream supply chain, which requirements for review and the use of To estimate financed emissions,
include the emissions of the clients we widely accepted sources, among others. Rabobank uses the PCAF (Partnership for
we explain which steps are being taken to become aligned with the finance (i.e., financed emissions). They also specify which carbon- Carbon Accounting Financials)
Paris Agreement. intensive sectors are to be prioritized: methodology for most of its portfolio.
Rabobank's own operations have been agriculture, aluminum, cement, coal, Where possible, we aim to work with our
climate neutral (scope 1 and 2) since commercial and residential real estate, clients' verified self-reported emissions.
This preview highlights our Paris zero. This assessment suggests a 2007. Through the NZBA we are iron and steel, oil and gas, power However, currently most clients do not
Alignment approach. The full report remaining budget for the world committed to reducing our scope 3 generation, and transport. provide such reports. Therefore, the
describing "Our Road to Paris" plan will be population of about 420 gigaton emissions by helping our clients reach majority of carbon footprint
available in the second half of 2022. (420,000 megaton) of CO2e for a two- carbon neutrality by 2050. To align our loan and investment measurements rely on estimates
thirds chance to keep the rise of global portfolio with the Paris Climate calculated using different types of
In 2015, world leaders signed the Paris temperatures below 1.5oC, and of about Paris Alignment (PA) is a vital effort Agreement targets, we need to estimates and proxy indicators.
Climate Agreement. The Agreement had 580 gigaton CO2e for an even chance. for survival determine the greenhouse gas (GHG)
a single, simple but vital goal: keep the Meanwhile, global CO2e emissions are emissions (or CO2e) associated with the The availability, specificity and accuracy
warming of the earth’s temperature to about 57 gigaton per year. Paris Alignment is a vital effort to economic activities we finance, compare of the data we use to make these
“well under 2o Celsius”. If we fail to keep develop the tools and approach we need these emissions to science-based calculations varies widely per sector.
the temperature rise under that World leaders gathering at the COP26 to make sure that all our activities, no benchmarks and then set time-bound Therefore, the financed emissions
threshold, the resulting changes to our summit in Glasgow in November 2021 matter how necessary or harmless they emissions-reduction targets to bring the overview presented in this report should
planet could be so disruptive that our agreed to focus their efforts on achieving seem, do not (inadvertently) threaten emissions profile of our portfolio in line be interpreted as our "estimates on a
lives may become unrecognizable. It the 1.5oC Paris Alignment target. In our future survival. From a business with the benchmarks. In the following best effort basis" using the current
could even threaten the survival of our October 2021, Rabobank joined the Net- perspective, it is about defining the paragraphs, we will examine each of information and data we have at hand.
species. Following the release of the first Zero Banking Alliance (NZBA), thereby boundaries within which we can deploy these steps in more detail. To help the reader interpret these
Assessment Report (AR6) in 2021, by committing ourselves to this more our energy, ingenuity, and ambition to numbers, we have provided an overview
scientists of the IPCC ambitious temperature target and to succeed, safe in the knowledge that our A Four-step Approach of the calculation methods we have used
(Intergovernmental Panel on Climate reach net-zero financed emissions in our efforts are, at a minimum, not harming Step 1. Carbon Footprinting per sector as well as a PCAF data-quality
Change), it has become clear that the portfolio by 2050. our future, and hopefully helping to A carbon footprint is a general term used score. While we cannot guarantee the
risks of letting the global mean improve it. to describe the GHG emissions profile of complete accuracy of the metrics, we can
temperature rise above 1.5oC are greater Carbon emissions are typically split up in a given economic activity, for example a be transparent about how we have
than estimated. scope 1, 2, and 3 emissions following the UN Guidance for Target- kilowatt hour of electricity or a kilogram arrived at them and their limitations.
Greenhouse Gas Protocol of the World setting for Banks of milk. There are different scopes of Financed emissions are also an essential
According to the IPCC AR6 report, Resources Institute. Scope 1 emissions Rabobank's Paris Alignment strategy emissions covering different parts of the component of climate risk management,
cumulative CO2e (equivalent) emissions are emissions that we emit directly (via follows the NZBA guidelines drawn up value chain for a given economic as they provide important input for
are kept within a budget by reducing our operations) and scope 2 are the by the United Nations under the process, as outlined in the GHG identifying transition risks.
global annual CO2e emissions to net- emissions we emit indirectly, e.g., the Collective Commitment to ClimateRabobank at a Glance About Us Our Road to Paris Carbon Footprint of Our Assets Food Transition Climate and Energy Transition A More Inclusive Society Annex 1
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Step 2. Benchmarking reduction targets in Nationally the manner in which the carbon Paris alignment is a core business our portfolio where we have the most
Benchmark decarbonization pathways Determined Contributions (NDC), which footprint is calculated. In such cases, it is process for the foreseeable future influence and responsibility, and where
are accepted reference points for are evaluated every five years. In many a pre-cursor to carbon footprinting. there are accepted target-setting
judging the degree of Paris Alignment countries, the national reduction targets For each business line we develop a methodologies (and data) available. At
of a given economic activity. have been translated into sector or Step 3. Target-Setting Theory of Change (ToC); an explanation this time, we consider 70% of our assets
Benchmarks can be set for different industry targets. These sector Once we have measured the carbon of how we believe a given Paris to be climate-material, and have made a
types of economic activity (sectors/ benchmarks are the result of political/ footprints and determined the Alignment goal can be achieved (e.g., 6 best estimate of our financed emissions
industries), different geographies economic decision-making processes. appropriate benchmark, we will set Mt (Megaton) CO2e reduction in for 85% of these carbon-intensive assets.
(regions/countries) and different There may be differences between decarbonization targets for their agriculture emissions in the Over time we expect our estimates to
timelines (e.g. 5, 10, 30 years). Sector national (NDC) target pathways and respective portfolios. Netherlands). This theory serves as the become more precise.
decarbonization pathways for CO2e international sector pathways. bridge between a stated Paris-aligned
emissions most often use the There are two aspects to target-setting: goal and Rabobank’s portfolio/client Regarding our Dutch Retail Banking
International Energy Agency scenarios Rabobank is assessing the different engagement activities to achieve that activities, we have estimated the carbon
for replacing fossil fuel energy with benchmark options for sectors. In doing 1. Portfolio optimization (Emissions goal. footprint associated to our mortgage
renewable energy sources (e.g. SDS so, we will conform to NZBA guidelines reduction targets): portfolio (2.1 Mt CO2e), and the
scenario, 2DS scenario). and use both intensity and absolute Portfolio optimization is a top-down emissions associated with F&A (11.2 Mt
benchmarks where possible. We process involving strategic choices Road to Paris CO2e) and non-F&A SME (3.1 Mt CO2e)
GHG emissions for agricultural activities recognize the importance of about which (target) assets should be lending activities. We have also
are primarily methane and nitrous oxide, benchmarks derived from NDCs and included/excluded from a given 2021 estimated the emissions regarding
and do not currently have a universal their impact on local market conditions (sub)portfolio; In 2021, we took significant steps commercial real estate (0.3 Mt CO2e). For
decarbonization pathway. At the and regulations. However, we also see 2. Client engagement (Client towards calculating the carbon footprint our international activities, we have
beginning of 2020, Rabobank, together and applaud the growing number of engagement targets): of our loan portfolio. Our 2020 Climate estimated the emissions associated to
with the World Business Council for industry benchmarks which go beyond Client engagement is a bottom-up Report gave a first rough estimate of our the top four countries of our Rural
Sustainable Development (WBCSD), the NDCs in their ambition. Finally, process through which we encourage financed emissions for a portion of our portfolio (18.6 Mt CO2e), our Wholesale
PCAF, and the United Nations regulatory changes, new scientific clients to take measures to reduce the Dutch portfolio using the PCAF clients (7.7 Mt CO2e) and the majority of
Environment Programme Finance insights, and other factors might GHG emissions generated through methodology. In this Impact Report, we our leased tractors via DLL (3.4 Mt CO2e).
Initiative (UNEP FI) helped launch the influence and alter the benchmarks over their economic activities. have expanded the scope to include a
Banking for Impact on Climate in time. significant portion of our international On the next page we provide an
Agriculture (B4ICA) initiative to address Step 4. Implementation in Business business. Furthermore, we have refined overview of the outcomes. In the
this limitation. With the above in mind, we will regularly In addition to the above three steps, the data sources and the calculation chapters Food Transition, and Climate
review our approach and amendments there is an overarching process that methodologies. More information on and Energy Transition, we provide in-
In general, benchmark decarbonization based on new insights. Although forms a core part of the Paris Alignment our approach can be found in Annex 1. depth information on a number of large
pathways are based on carbon budgets, benchmarking is listed as the second approach: embedding these steps in our client groups (Dairy NL, Mortgages, and
or the amount of GHG emissions that are step in the process, in reality the business. Getting aligned is becoming Our ambition is to determine the climate Power Generation).
acceptable over a given period of time. benchmarking process runs in parallel to and will remain a core business process impact of all climate-material core
Signatory countries are required to set the carbon footprinting process. The for the foreseeable future. activities, but our immediate focus will
their Paris Agreement emission choice of benchmarks can also impact be on the highest emitting portions ofRabobank at a Glance About Us Our Road to Paris Carbon Footprint of Our Assets Food Transition Climate and Energy Transition A More Inclusive Society Annex 1
11
Road to Paris Loans to private individuals
99% Residential real estate
Avoided emissions via renewable
Portfolio energy portfolio: 5.6 Mt CO2e
2.1 Mt CO2e
covered
Emissions from loans (Scope 3) On-balance exposure in billions of euros (base year 2020)
Loans to private individuals 191
Dutch business clients 81
Wholesale & Rural 106
Leasing International 32
Other partially climate material assets 37
Total assets Leasing International Dutch business clients - Financial assets
- Other assets
23%
EUR 632 billion 95%
Tractor assets Food & Agriculture 11.2 Mt CO2e Other non-climate material assets 186
Portfolio 3.4 Mt CO2e Portfolio Trade, industry & Services 3.1 Mt CO2e - Cash and cash equivalents
covered covered Commercial Real Estate 0.3 Mt CO2e
Of which 70% - Government clients
- Reverse repurchase transactions
climate material* assets and securities borrowing
Wholesale & Rural
- of which 85% covered** - Interest rate hedges
75%
by financed emission Portfolio
Wholesale corporate clients 7.7 Mt CO2e - Loans and advances to banks
Rural Clients 18.6 Mt CO2e - Derivatives
estimations covered
Total 632
Rabobank has reduced the operational carbon footprint by 10% per FTE since 2013
Publication of first climate report and financed emission estimate
First TCFD disclosure (for FY 2019) 2020
Results Launch of Project Acorn
Agri3 fund launched
Rabobank operations
2007 carbon neutral
Launch Carbon Bank and
for the first time 2021 Rabo Smartbuilds houses Rabobank portfolio to
2050
Foundation of be net zero aligned
1995 Rabo Groen Bank 2018 First PCAF
disclosure
2022 Report on Paris Alignment with portfolio targets
Rabobank publishes first
1998 sustainability report BPD delivers 15,000 sustainable homes 2029
2021 Net Zero Banking Alliance (NZBA) 2030 The emissions in the EU
Join Partnership Carbon economy have to be more
2015 Accounting Financials (PCAF) than halved compared to
2020 Sign Paris Proof Commitment for our Dutch real estate financing activities 1990 levels.
Process 2013
Rabobank starts rating own
clients on sustainability Start Climate Program and establish SDG Banking Committee
2019 Sign Physical Risk & Resilience statement
* About Climate Materiality: Sign Financial Sector Commitment to the Dutch Climate Agreement
We prioritize certain sectors following the UN Guidelines for Climate Target Setting for Banks.
In 2020, we published an overview of which assets are considered to be climate-material: Rabobank Climate Commitment Disclosure of Progress
** Financed emissions coverage figures are calculated on gross exposure figures.
For details on the estimation assumptions and methodologies, refer to the financed emissions methodology in the Annex section.Rabobank at a Glance About Us Our Road to Paris Carbon Footprint of Our Assets Food Transition Climate and Energy Transition A More Inclusive Society Annex 1
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Our Contribution to the Food Transition ZERO
HUNGER
CLIMATE
ACTION
PARTNERSHIPS
FOR THE GOALS
Ensuring together that there is enough healthy food for everyone.
Food that is produced within the planetary boundaries.
Carbon bank Goals Target Results 2021 Sustainability Linked Loans
Sustainably feeding the world requires us to rethink Increase volume Rewarding companies with lower interest rates
our food system. Together with our clients we With Foodbytes!, we offer startups sustainable finance 27% if they meet sustainability linked targets.
accelerate sustainable food production with initiatives across the globe a platform to pitch
that reduce and remove carbon emissions from the their sustainable food concepts and Average growth in our 1% average growth in 1,8%
atmosphere. business models. clients’ sustainability Result 2021
assessment scores via our clients’ sustainability • First SDG 12.3 loan closed.
the client photo * assessment scores Wholesale
Ambitions for 2030 Result 2021
• Number of farmers actively applying regenerative • Facilitated 1,122 connections and 5% average growth in 1,9%
farm practices: 50,000. helped raise USD 1.4 billion.
• Amount of CO2 equivalent captured: 1 gigaton. our clients’ sustainability Biodiversity Monitor
assessment scores Retail NL Helps to assess improvements in a.o. soil quality
Acorn Rabo Foundation * Please refer to our Methodology & definitions of Non-Financial Key Figures for explanation
and biodiversity and to reward farmers with for
example, attractive interest rates.
on client photo.
Unlock new and additional smallholder farmer income
We offer organizations that work
through carbon removal and agroforestry yields.
with smallholder farmers all over the
world access to money, knowledge
and our network. In the Netherlands Rabo Partnerships Rabo Investments Rabo Groenbank
Result 2021 we strengthen social enterprises
• Microsoft is launching customer. Helps build more effective financial Supports clients globally (F&A focus) Private investors can invest in sustainable
so that everyone can participate in
• Standard Chartered acquires 16,000 Carbon Removal systems in developing and emerging through capital solutions. Portfolio business through Rabo Groen Bank. This is the
society.
Units. regions to improve smallholder companies include both start- & largest green bank in the Netherlands issuing
farmers’ access to finance. scale-ups and established companies. green loans.
Result 2021
• Increase volume green loans EUR 394 millionRabobank at a Glance About Us Our Road to Paris Carbon Footprint of Our Assets Food Transition Climate and Energy Transition A More Inclusive Society Annex 1
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Food Transition
We work with clients and partners on a food system that produces Responsible Food Production practices that enrich their fields’ soils, develop the Biodiversity Monitor. This
and Processing while capturing carbon from the air. monitor allows us to assess
enough affordable, nutritious food to feed the world, while respecting Food systems should produce food improvements in soil quality and herb-
producers’ livelihoods and the planet. within planetary boundaries in terms of By 2030 Rabo Carbon Bank aims to have rich grasslands that enhance
land, water, air, and biodiversity. At the helped 50,000 farmers apply biodiversity, and reward farmers with,
same time, these systems must offer regenerative farming practices and to for example, attractive interest rates. In
The Future of Food and Yesterday... as a cooperative, we helped food producers an economically viable have removed and reduced 1 gigaton of turn, companies like FrieslandCampina
Agriculture our members and their communities way of doing so. CO2e. can reward farmers with premium prices,
Natural resources — soil and water — are overcome the challenges they faced. By etc. Combined, these incentives make it
being depleted. GHG emissions are leveraging our financial products and Rabo Carbon Bank Similarly, smallholder farmers in worthwhile for farmers to invest in
rising. Climate change poses an services, our knowledge and networks. In 2020, we started to develop carbon developing and emerging regions can nature-inclusive practices.
irrefutable threat to the planet and all of credit-generating projects through our generate Carbon Removal Units via our
our lives. It is clear that we need to do Today... we aim to help many thousands Carbon Bank, which we launched in Acorn project (Agroforestry Carbon In 2021, together with the Nederlandse
things differently. But can we live our of Food and Agricultural businesses all 2021. Rabo Carbon Bank is developing Removal Units for the Organic Waterschapsbank (NWB Bank), we
daily lives, do our jobs, consume, and over the world with the biggest propositions that help farmers in Restoration of Nature). The Acorn participated in a EUR 70 million fund
produce while also respecting the limits challenge of our time. How to produce developed countries become carbon program is designed to unlock new and which focuses on, among others, the
of the planet? Can we meet the enough food for a growing global champions by shifting to regenerative additional smallholder-farmer income conservation of biodiversity and
increasing need for enough nutritious population in an economically viable agricultural practices. We connect them through agroforestry. Agroforestry can reduction of methane and nitrogen
and affordable food for a growing world way, while combating climate change, to net-zero committed businesses and generate new revenue streams through emissions, and which has a specific
population in ways that are both biodiversity loss, degradation of soils, organizations that are looking for a carbon removal and agroforestry yields target of reducing 2 megaton of CO2e.
ecologically and economically ecosystem decline, and air and water reliable way to compensate their own (e.g., fruit and nuts) and can help Dutch farmers face multiple challenges
sustainable? pollution. We are committed to these unavoidable emissions. These projects improve soil quality, biodiversity, and related to climate, water-usage, nitrogen
challenges. And we are once again are aimed at regenerating ecosystems, the micro-climate around the farm itself. emissions and circularity. We also
We think we can. This conviction is based leveraging our financial products, generating additional revenues for Acorn aims to enable hundreds of developed the concept of the Re-
on long-term experience. Rabobank was knowledge, and networks. farmers, and driving reduction and thousands – if not millions – of allocation Fund (Herallocatiefonds). This
set up 125 years ago by a collective of compensation programs for businesses. smallholder farmers to transition to fund will help farmers to re-allocate or
inventive farmers in the Netherlands As a bank, we believe that the greatest agroforestry. Early 2021, Microsoft intensify their operations, make way for
who faced problems they could not contribution we can deliver is to finance, Help farmers become carbon purchased the very first Carbon Removal nature and offer them a business-
solve individually. They discovered they facilitate, and stimulate responsible food champions Units and more recently, Standard perspective to deal with these
could achieve their goals by working production and processing, responsible Chartered acquired 16,000 Carbon challenges. The fund concept was
together. Our heritage of collective consumption, and responsible supply In the U.S., a group of farmers in three Removal Units. offered to the Dutch Ministry of
problem-solving, and entrepreneurship chains. states have completed the initial Agriculture, Nature and Food Quality
still drives us today. benchmarking phase of Rabo Carbon In the Netherlands, Rabobank and the (LNV) and is currently under preparation.
Bank’s first carbon sequestration and soil World Wide Fund for Nature (WWF) have
health pilot program. Participating teamed up with dairy company
farmers will receive compensation for FrieslandCampina, farmers, and other
implementing regenerative agricultural stakeholders in the dairy industry toRabobank at a Glance About Us Our Road to Paris Carbon Footprint of Our Assets Food Transition Climate and Energy Transition A More Inclusive Society Annex 1
14
We have partnered with the UN waste and food loss, promoting more The hotels achieved a 45% reduction in different countries, and welcomed 40 Net-Zero" initiative. The NZBA is led by
Environment Programme, the Dutch efficient use of energy and increased food waste. That’s almost 10,000 kg of corporate/investor members to the the United Nations Environment
Development Bank (FMO), the transparency throughout a company's food, representing a reduction of over program while continuing to support Programme. The TNFD is an initiative of
Sustainable Trade Initiative (IDH), and own supply chain. 18,000 kg in CO2e emissions. the growth of more than 350 previously the UNEP-FI, WWF and Global Canopy,
the Dutch government to set up the selected startups. In 2021 FoodBytes! seeking to create a framework to identify
AGRI3Fund. The fund’s goal is to offer de- Sustainability linked loans may be Meanwhile, our sustainability linked facilitated 1,122 connections and helped nature related risks and opportunities as
risking arrangements to commercial regarded as a concept that marries the loan specifically designed for SDG 12.3 raise USD 1.4 billion in funding. Rabo well as impacts and dependencies. The
banks to finance high-risk investments needs of environmentalism with the (Global Food Loss and Waste) provides a Investments aims to scale-up innovation "Dairy Net-Zero" initiative was set-up by
in sustainable agriculture, forest needs of capitalism. Which explains why financial incentive to companies that in F&A by supporting clients globally the Global Dairy Platform.
protection, and improved rural demand has risen in recent years. In 2021 commit to KPIs and meet targets related through capital solutions. Portfolio
livelihoods. we were involved in many sustainable to food loss- and food waste-reduction. companies include both start-and scale- One thing is clear – we need to work
finance-transactions (sustainability Dutch organic supermarket chain ups and established companies. together to create a food system that
Responsible Supply Chains linked loans or sustainability bonds) with Ekoplaza is the first client to receive this meets the rising demand for affordable,
We have been contributing for decades among others Oatly, Coles, Louis new type of sustainability linked loan. The transition to a future-proof food nutritious food and that respects
to the optimization of transparent Dreyfus, Viterra, and Land NRW. Ekoplaza is going to work with us to see system is immensely complex. And there producers’ livelihoods and the planet.
agricultural supply chains, including how it can monitor its food waste even is no commonly accepted definition of We must all play our part. With clients
rural development. Rabo Partnerships Responsible Consumption better. If it achieves the agreed what exactly such a food system entails. and partners at every link in the food
helps build more effective financial At Rabobank, we believe food systems reduction in food waste levels, it will be Given this complexity, cooperation and value chain from farm to fork, we are
systems in developing and emerging should produce sufficient safe, rewarded with lower interest rates. knowledge sharing are crucial. Through ideally positioned to play our part.
regions to improve smallholder farmers’ affordable, nutritious food to provide RaboResearch we provide sector- Together, we are working toward a
access to finance. Rabo Foundation the global population with a balanced Knowledge and Innovation specific insights covering everything sustainable and resilient food system
helps smallholder farmers to farm more diet, with minimum waste. Through We believe in the innovative power of from farm inputs to consumer foods. that will feed the world for generations
efficiently and use more sustainable Rabo Food Forward, we form coalitions our clients to produce more with less to come.
production methods. to work in partnership on sustainable ecological impact. That’s why we set up In 2021 we played an active role in the
food solutions. For instance, we focus on FoodBytes!: a global network designed United Nations Food Systems Summit
In the Corporate and Wholesale business how to create shorter food value chains. to identify startups that are innovating and all of its pre-summits, calling world
segments, we see, meet and stimulate Rabo Food Forward already yielded and disrupting the food value chain with leaders for rules and regulations to
an increasing appetite for sustainable multiple concrete ideas and concepts in groundbreaking ideas in food, facilitate and speed up food system
finance. Overall there are two types of 2021. agribusiness, and technology. Through transformation. Next to that we joined
sustainable finance. The green loan, FoodBytes!, we match innovators with several other leading national and global
created exclusively to (re)finance In partnership with the Food Waste investors and clients. It also provides a initiatives on climate and sustainability.
eligible green projects. And the Foundation, we encouraged the platform to help turn today’s new ideas Recent steps include becoming a
sustainability linked loan, which rewards hospitality sector to participate in the and technologies into tomorrow’s signatory to the Net-Zero Banking
a company with lower interest rates if it Food Waste Challenge as part of a joint solutions that create meaningful and Alliance (NZBA), the Taskforce on
meets sustainability linked targets. approach to tackling food waste. The purposeful change. In 2021 alone, Nature-related Financial Disclosures
These targets are often aimed at latest Food Waste Challenge targeted FoodBytes! offered a platform for 45 new (TNFD) and we were the first financial
reducing emissions, reducing food hotels in the Dutch city of The Hague. commercially validated startups from 15 institution to sign the "Pathways to DairyRabobank at a Glance About Us Our Road to Paris Carbon Footprint of Our Assets Food Transition Climate and Energy Transition A More Inclusive Society Annex 1
15
which these biological processes take agricultural sector, we have taken the Contributions but not specific to dairy:
Road to Paris place. For example, the farming system % of direct on farm GHG emissions reference path and targets set by the peatlands
and breeds of cows eating different Dutch Climate Agreement and the Under the "land and land use" section of
Dairy NL feeds. 4% Sustainable Dairy Chain initiative the Dutch Climate Agreement, the
We have a strong presence in the Dutch 14% (Duurzame Zuivelketen (DZK)) as the basis signatories set a target to reduce GHG
dairy sector. In terms of total sector debt We have calculated our financed for our Paris Alignment benchmarks for emissions from peatlands by an
our market share is estimated to be emissions in the dairy sector using farm- our primary dairy portfolio in the additional 1 Mt by 2030. As the largest
roughly 75% (range 68-78%). Other debt level emissions, in line with the Netherlands. land user in these areas, the primary
18%
suppliers are competing banks and non- agreements made under the Dutch dairy sector, in close cooperation with
banking loans (e.g. family loans). Climate Agreement. These GHG 64% Dairy-specific targets other parties, will play a key role in
emissions all occur at the farm level. As the largest source of direct achieving this target.
The primary dairy sector accounted for Upstream emissions from farm inputs — agricultural GHG emissions in the
approximately 13.0 Mt CO2e (2019), over such as from the production of Netherlands, the Dutch dairy sector is Step 3: Target-Setting
5% of national Green House Gas (GHG) purchased feed (concentrates) and committed to reducing its GHG We will follow the absolute emissions
CO2 - energy and fuel
emissions, or more than 40% from Dutch fertilizers — and downstream emissions emissions to bring them in line with the reduction targets for our dairy portfolio
N2O - manure and soil
agriculture (excluding land use and land- beyond the farm gate — for example, Methane - manure Paris Climate Agreement goals. In the as described in the above-mentioned
use change).1 those related to the processing of milk Methane - enteric fermentation Dutch Climate Agreement (2019), based benchmark decarbonization pathway
— are not included since these Source: Wageningen Economic Research, Rabobank
on the ambitions of for the Dutch dairy sector.
Most agricultural GHG emissions emissions do not occur at farm level. Klimaatverantwoorde Zuivelsector
come from biological processes Subsequently, allocations between milk At farm level, methane emissions from (2018), the dairy sector set a target to For client engagement we also look at
and meat are also not applicable at this enteric fermentation and manure reduce methane emissions by an GHG emissions intensity: kg CO2e per kg
Step 1: Carbon Footprint level. We have followed the standard generally account for more than 82% of additional 0.8 Mt CO2e by 2030 at farm of milk. We assume that the average
Calculating GHG emissions from burning PCAF methodology (score 5, see also all direct GHG emissions. Nitrous oxide level.2 carbon footprint of our dairy farmer
fossil fuels is relatively straight forward, Annex 1) for calculating financed emissions account for about 14% of on- clients is similar to the overall Dutch
as conversion factors of fossil fuel to CO2 emissions based on our share in absolute farm emissions and are mainly related to Ambitions not specifically related to on- dairy farming average. Focusing only on
in combustion engines and heaters are dairy farming sector emissions. We have storage and application of manure and farm emissions direct farm emissions, the average
well known. The main sources of primary relied on top-down proxy indicators management of the soil. CO2e emissions The DZK initiative also includes emissions intensity of primary dairy
dairy GHG emissions come from based on production values, as bottom- account for the remaining 4% of all on- additional ambitions for soil and crops farmers in the Netherlands is estimated
biological processes, mainly in the form up farm level data is still largely farm emissions. (0.2 Mt), energy efficiency and the at 0.9 kg CO2e per kg of produced raw
of methane and nitrous oxide. This unavailable. For 2020, the estimated production of sustainable energy (0.6 milk.3 Compared to 2011, this implies a
makes carbon footprint calculations far absolute carbon emissions of our Step 2: Benchmark Mt) and reducing imports of (protein- reduction of nearly 10%. This
more complex as emissions vary primary dairy portfolio were 4.1 Mt As there are currently no standard rich) feed concentrates (1 Mt). improvement is the outcome of
according to the circumstances under CO2e. decarbonization pathways for the efficiency gains in the field of feed and
1 For the purposes of calculating our financed emissions the "dairy sector" refers to dairy production, or dairy farming. This covers all on-farm GHG emissions excluding (fossil) energy, land-change use and purchased inputs.
We have chosen this scope in order to align our benchmarking and target-setting process with the goals of the Dutch Climate Agreement.
2 The term ‘additional’ refers to the fact that the 0.8 Mt emission reduction is additional to the Dutch agriculture emissions reduction expected already at the time of setting the new targets (i.e.additional to a reference path
including reduction impact of ongoing policies and improvements)
3 This differs from the 1.23 kg CO2e/kg milk in the DZK report, as we have translated this number into a Scope 1 calculation whereas the DZK report is a Scope 3 metric.Rabobank at a Glance About Us Our Road to Paris Carbon Footprint of Our Assets Food Transition Climate and Energy Transition A More Inclusive Society Annex 1
16
genetics (contributing to higher yields into opportunities that strengthen farm
per cow and lower replacement rates), income, such as carbon farming.
combined with improvements in
manure and soil management and other
farm practices.
As time and knowledge progresses these
efficiency gains and improvements will
likely also contribute to future
reductions in GHG emissions intensity.
Working together with the sector we will
develop intensity targets in- line with
our net-zero climate commitments.
Rabobank is one of many players in the
dairy value chain. Meeting the reduction
targets described above will require a
unified effort from all these players. Our
primary role is to provide financing to
support the transition to more
sustainable practices. Moreover, we
support our clients via our knowledge
and networks to meet dairy specific
targets and ambitions regarding other
emissions (e.g. peatlands and energy
transition).
We see that developments in the fields
of feed (feed additives and adjustments),
manure management, and soil practices
show potential to help further reduce
the GHG emissions. However, many of
these developments require significant
operational or capital expenditures that
are hard to fit in current business
models. Therefore, we are also lookingRabobank at a Glance About Us Our Road to Paris Carbon Footprint of Our Assets Food Transition Climate and Energy Transition A More Inclusive Society Annex 1
17
Our Contribution to the Climate and Energy Transition CLIMATE
ACTION
PARTNERSHIPS
FOR THE GOALS
Reducing our climate impact by helping our customers become more sustainable,
investing in renewable energy sources and by jointly working on a circular economy.
Sustainable Living Sustainable entrepreneur- Goals Target Results 2021 Sustainable Living
We recognize that improving the
ship and Innovation Average label C in our • 67,790 customers used the House Scan
energy efficiency of houses and
Small and Medium-sized
mortgage portfolio average label C average label C
office buildings is imperative to • 25% invested in making their homes more sustainable
Enterprises(SMEs) are essential for a
reach net zero in 2050. This has to Increase volume
futureproof economy. With our partners,
be accomplished around the globe,
we assist SMEs with the financial aspects
sustainable finance 27% • Launch of Rabo SmartBuilds
but as a Dutch bank, we clearly
of drawing up sustainability plans. We
have the best opportunities to Supporting customers
contribute to this goal in our home
also measure the impact of our clients
in transition 1% average growth in 1,8%
on the climate so that we know where to
market, where we also aim for
focus our efforts and seek improvements.
toward sustainable our clients’ sustainability Renewable Energy
reducing housing shortages. entrepreneurship
Via our Start- and Scale up bankers
via the client photo * assessment scores Wholesale
and Rabo Innovation Loan we help • Launch of ‘Realisatiefonds’, fund for local energy cooperatives
innovative, sustainable and fast-growing 5% average growth in 1,9%
Renewable Energy companies on their road to success.
our clients’ sustainability
• 5.6 Mt CO2e avoided via our financing activities
• Committed EUR 1.7 billion for 50 new renewable energy projects
Since the energy sector has such assessment scores Retail NL
a vital role to play in the transition
to a climate neutral society, we Leasing and E-mobility We will expand our
have set an ambitious agenda for sustainable energy 20-30% ** 40%
our energy sector portfolio. We Leasing has the potential to make a
portfolio Sustainable entrepreneur- Leasing
invest in innovative technologies substantial contribution to the climate exposure growth
such as hydro-power and transition since some companies do ship and Innovation • Launch of
geothermal energy, and we not have the resources to invest in low- Rabo Electric
* Please refer to our Methodology & definitions of Non-Financial Key Figures for explanation • Rabo Impact Loan EUR 104 million
finance multiple renewable energy carbon technologies, or because financial
on client photo.
projects. leasing is a more attractive proposition ** Gross grow ambition in the renewable energy portfolio as a percentage of the total
to them. Rabobank supports its clients portfolio renewable energy (baseline 2019).
• Social Impact Loan EUR 32 million
and partners in the transition to a new
and sustainable fleet. • Rabo Innovation Loan EUR 68 million
• R
abo Groen Bank Green loan
Renewable Energy EUR 1,336 millionYou can also read
