triodos
TRANSCRIPT
Ethical Finance and Triodos
Charles MiddletonManaging DirectorTriodos UK
Agenda• Context
• An overview of Triodos Bank
• A bit about our history / ethical banking
• What we do and how we do it
• Our services
• Microfinace
What is the role of a bank?
• Promote the more conscious use of money• Credit and savings!• Help to build sustainable businesses• Establish long term relationships• Provide a fair return to all stakeholders• Help to provide solutions for even the most
challenging situations• Be a responsible member of the community
“The healthy social life is found,When in the mirror of each human soul,The whole community finds it‘s reflection
And when in the community, The strength of each one is living.”
Context
• Financial mayhem
• Ethical consumption
• SRI
• Banking
Connecting savers with borrowers
All of our lending is to projects that have
an overt positive impact; eg• renewable energy• organic food and farming• social housing• fair trade• social enterprise
A brief history of ethics in finance
Ethics in finance• 19th Century religious investors – Quakers / Methodists• 1960’s green movement – Earth from space• 1971 PAX US fund - avoided investments linked to
Vietnam war• early 1980’s – international campaign against Apartheid
in South Africa including boycotts• 1980’s trans-boundary industrial environmental
disasters – Chernobyl & Exxon Valdez
A brief history of Triodos
1980Opening Triodos
Netherlands
1990
First green fund
in Europe
2008
Launch of Triodos Sustainable Trade
Fund
2009Opening Triodos
Germany2007
Launch of Triodos Values Pioneer Fund
1994 Launch Stichting
Triodos-Doen and Stichting Hivos-
Triodos.
1997
Launch Triodos Added Value Fund
1998
Triodos Green Fund.
2002
The Triodos Fair Share Fund is
launched
2004
Sustainable Real Estate Fund
2006
Opening Triodos Headquarters in
Netherlands
1993
Opening Triodos Belgium
2006
Triodos Culture Fund starts operating
1995
Opening Triodos UK
2004
Opening Triodos Spain
Brunel House - Bristol
Our Mission Our Aims
• Promote quality of life and human dignity
• use money more consciously in ways that benefit people and the environment, and promote sustainable development
• offer customers financial products and high quality service
• to be a sustainable service provider and create a broad customer base
• to be a product innovator at the forefront of new opportunities
• to be an opinion leader – to stimulate public debate.
What does this really mean?
• Open book
• Doing business with the real economy
• Long term view
• Genuine engagement with all stakeholders
We only lend to projects and enterprises which create social and environmental value.
Our loan book - Inspiring Change is Published annually and lists all the organisations Triodos lends to
Transparency
Know where your money goes
Online interactive tool allowing anyone to search through our loan book by keyword, location or sector
Regularly updated with new lending
Helps customers pinpoint where their savings are going making them more connected to their money and their community
Food for thought Satish Kumar
Co-worker visits to borrowing customers
Elizabeth Brown at The BetterFood Company
Green Money Bus Tour
Customer engagement - Annual Meeting
Annual Meeting
How we are doing
About us
• Winners of the 2010 Queen’s Award for Enterprise for our pioneering approach to finance
• 2009 Financial Times award:
‘Sustainable Bank of the Year’
Headline figures• €4.9bn funds under management
(increase of €1.1bn on 2008)• 242,000 account holders (27% increase
on 2008)• €1.6bn (25% increase on 2008) in lending
to over 14,000 sustainable projects• €1.6bn Investment funds (31% increase
on 2008).As at 31 Dec 2009
Group lending 2004 – 2011
Quality loans• Very low provision for ‘doubtful debt’• historically very low level of provisions due to:
– quality lending (no sub prime!)– asset backed in vast majority of cases – loan to value rate usually 75% or less– know and understand the industries– carry out robust due diligence checks
Assurance to our customers• BIS ratio of 16.3%
• savers are covered under the Dutch Deposit Guarantee Scheme for personal deposits up to €100,000
• we are authorised by the DNB and regulated by the FSA for the conduct of UK business.
Personal banking
• Deposits directly support lending to ethical organisations
• Saver / Online Saver• Cash ISA / Online Cash ISA• Fixed Regular Saver • 2, 3 and 5 year Fixed Rate
Bonds• Charity Saver • Young Saver
Business banking• Full banking service, including loans and
overdrafts where appropriate• Online capability• Dedicated relationship managers who
specialise in specific industries or sectors• Loans reviewed on financial and ethical
merits.
Investment banking• Provide investment opportunities directly into ethical
companies and sectors• no involvement in derivatives, hedge funds,
structured products• Recent offering includes:
– Triodos Renewables PLC– EIS Green Fund Issue II– Microfinance Fund– Social Enterprise Fund (closed June 2010)– Ethical Property CompanyMicrofinance Investing
Microfinance investing • Pioneers in microfinance - investing
since 1994• four microfinance funds with different
risk/return profiles• 9 dedicated staff with 45 years
experience • €140 million assets under
management (as at 30 June 2008), spread over 80 microfinance institutions (MFIs) in 40 countries
• active shareholder in 18 prominent MFIs.
Example: Development
investeeACLEDA Bank in
Cambodia
What is the role of a bank?
• Promote the more conscious use of money• Credit and savings!• Help to build sustainable businesses• Establish long term relationships• Provide a fair return to all stakeholders• Help to provide solutions for even the most
challenging situations• Be a responsible member of the community
Useful sources
• EIRiS
www.yourethicalmoney.org
• UK Sustainable Investment and Finance Association (UKSIF)
www.uksif.org
Triodos Bank NV, incorporated under the laws of The Netherlands
with limited liability registered in England and Wales BR3012.
Authorised by the Dutch Central Bank (DNB) and regulated by the
Financial Services Authority (FSA) for the conduct of UK business.
Charles MiddletonManaging DirectorTriodos Bank UK
www.triodos.co.ukTriodos Bank NV, Brunel House,
11, The Promenade, Bristol BS8 3NN