the how and why #14 sustainable banking - abn amro · 2019. 11. 4. · this newsletter is part of...

Newsletter no. 14 - January 2019

SustainableBanking

The How and Why #14

This newsletter is part of the regular ABN AMRO sustainable reporting for the period: 1 October 2018 - 1 January 2019

Richard Reporting

In Richard Reporting, Richard Kooloos, Head of Sustainable Banking, drops in on colleagues

to talk to them about how they personally are making sustainability a reality. In this video,

he speaks to Financial Coaches Annet ten Wolde and Jolanda Engelenburg-Pen.

Financial Coaches help those who

are unable to visit a branch to do their

banking – particularly the elderly.

They also help clients put their

estates in order. Coaches can offer

support when it comes to donations,

inheritances and mortgages – and

even Internet Banking.

Financially self-reliant

The bank’s Financial Coaches are

also available to attend to matters

such as powers of attorney and

administration for elderly people

with dementia. With these coaches,

ABN AMRO is helping its clients be

financially self-reliant for as long as

they can. And they are not the only

ones who are doing this.

Collaboration between retired

employees and association for the

elderly

Elderly people in the Netherlands

also get help from retired ABN

AMRO colleagues on digitization and

it’s safety. It does not matter which

bank they use. To offer this support,

ABN AMRO collaborates with KBO-

PCOB, an association for the elderly.

By providing access to banking

services to as many different kinds

of people as possible, the bank is

committed to greater inclusiveness.

In the video below, Financial Coaches

Jolanda and Annet talk about how

they’re providing even more support

to clients to help them get to grips

with their finances.

Richard Reporting – what do Financial Coaches do?

https://www.abnamro.com/en/about-abnamro/in-society/sustainability/newsletter/2019/january/richard-reporting-what-do-financial-coaches-do.html


Pulling out of palm oil altogether won’t solve anything

Palm oil

ABN AMRO has dealings with a number of large palm oil producers. Yet the bank also does

much to prevent or curb the negative effects of unsustainable palm oil production. “We can

achieve much more as a committed discussion partner than we could if we abandoned the

sector completely,” explain Friso Koopmans and Wijbrand Fabius, who recently sat down to

answer six questions about palm oil and ABN AMRO’s policy.

Friso Koopmans is Global Head

of Agri-Commodities at ABN

AMRO, while Wijbrand Fabius is a

Stakeholder & Engagement Manager

active in numerous sustainability

processes.

What is palm oil, and how is it

used?

Wijbrand Fabius: “The Dutch

consume an average of sixteen litres

of palm oil a year. It’s a key ingredient

in many of the products we use

every day. Palm oil provides flavour,

as well as texture, and is found in

everything from cosmetics to soup,

pizza, baby food, chocolate, bread

and cleaning products. Without even

realising it, we easily use dozens of

products containing palm oil each

day. In fact, palm oil accounts for

about one-third of all vegetable oils

consumed.

“Palm oil comes from the fruit of

certain palm trees, which mainly

grow in Asia. Malaysia and Indonesia

together account for about 85 per

cent of world production. The use of

palm oil is set to increase sharply,

primarily as a result of population

growth and prosperity in countries

like China and India. This growth is

also fuelling the need for land where

palm trees can grow, which, in turn,

increases the risk of unsustainable,

harmful production techniques, given

the high yields involved in palm oil

production.”


What issues are at play in the

palm oil industry?

Friso Koopmans: “Irresponsible

palm oil production can result in a

number of abuses. The three most

serious are illegal deforestation,

human exploitation and land rights

abuses. Palm oil is produced on

plantations, and sometimes entire

forests are destroyed to make room

for them. What’s more, plantations

often employ people from vulnerable

groups in society. The prospect of

work then results in migration, be

it legal or illegal, to these plantation

areas. It’s important to ensure that

vulnerable groups aren’t exploited.

And then, there are land rights.

Unfortunately, land ownership often

isn’t officially documented in areas

where palm oil plantations are

concentrated. As a result, there’s

frequently disagreement as to

whether new plantations should be

built. Sometimes it’s even unclear

who is actually authorised to sell

the land. In some cases, the rightful

owners have literally been driven off

their own property.”

How is ABN AMRO involved in this

industry?

Wijbrand Fabius: “There are roughly

200 large- and medium-sized palm

oil producers. A handful of the bigger

players are our clients, to whom we

provide lending services. We have

very long-standing relationships

with some of these companies.

But that also means we can exert

our influence on them, helping our

clients as they make the transition

to a more sustainable business

model. That may sound simple, but

you have to remember that these

are companies which are active in

places like Indonesia, Africa and

Brazil. Doing business and dealing

with the authorities as you would

in, say, the Netherlands can be

extremely complex. However, the

bank does require that all its palm oil

clients pursue an active sustainability

policy.”

How does ABN AMRO exert its

influence to make the sector more

sustainable?

Friso Koopmans: “We’ve established

a credit policy for the palm oil sector.

If producers want to apply for a

new loan, they must comply with

this policy, or be able to show that

they are implementing measures

to comply with it within an agreed

time frame. If a particular company,

or that company’s supply chain, is at

odds with our sustainability policy,

we call them to account. We also

exert our influence to help change

the situation, together with the

client. We call this engagement.

One example of the impact our

influence has had is the increased

transparency of our clients’ policies –

they’re now proactively accountable

for the choices they make and for

the impact of those choices instead

of giving a post hoc account –

often after an NGO has blown the

whistle. Technological developments

also help us and our clients better

monitor what’s actually going on at

the plantations. The world’s largest

palm oil producer has just launched a

drone programme that scans entire

areas for signs of deforestation, for

instance. There’s also track-and-trace

technology, which makes it easier to

trace the origin of palm oil.”

Why doesn’t ABN AMRO just pull

out of palm oil altogether?

Wijbrand Fabius: “Because that

wouldn’t solve anything. Just

because the bank were to pull out

doesn’t mean the abuses would

suddenly disappear. In fact, the

opposite is probably true. It’s only by

staying involved that we can exert

influence to help improve the sector.

We’re not alone in this either – nearly

all the NGOs out there endorse this

stance. Actually, the same goes

for the entire agri-sector. There are

about 500 million small farmers and

small farms in the world. Millions of

people are employed thanks to palm

oil. One of our colleagues recently

visited a few of these farming

families and saw just how vulnerable

and dependent these people are on

the industry. If we and other Dutch

banks were to pull out, other banks

would step in to provide financing.

Chances are those banks would have

little or no sustainability agenda in

Palm oil


place. As a result, the situation would

deteriorate drastically for these

families.”

What improvements are we

seeing?

Friso Koopmans: “In addition to

talking directly to our clients about

their policies, we’re an active

member of the Round Table on

Sustainable Palm Oil (RSPO), along

with several other major Dutch

banks. Certain NGOs like the World

Wildlife Fund and Oxfam Novib are

also involved, as are a number of

big players including food producers

and supermarket chains. The RSPO

has established guidelines which are

endorsed by all the stakeholders.

ABN AMRO requires that its clients,

too, are members of the RSPO. The

RSPO is working to make palm oil

production more sustainable, having

recently set new standards for the

production of palm oil to counteract

deforestation and human rights

abuses.”

Wijbrand Fabius: “NGOs play an

important role in exposing abuses in

the industry. The majority of NGOs

support our decision to remain

involved on an ongoing basis. It may

not always be the easiest way, but

through continued involvement in the

sector, we can keep raising issues

and effect change for the better.”

Palm oil


Human Rights Conference: innovations in due diligence

As a lender, it’s important that the bank knows what impact or risk a given loan will have

in terms of human rights. But that depends on sufficient and reliable information, which

isn’t always available. At the fifth ABN AMRO Human Rights Conference, a range of

experts including innovators, data providers, investors and ESG professionals discussed

this very issue.

Investment activities and business

operations require due diligence

in many areas, including human

rights. Financial institutions like

ABN AMRO have to be able to

assess whether the financing they

provide is human rights-proof. In a

complex international context, that’s

often easier said than done. Not

infrequently, there’s simply a lack of

insight into the actual situation on

the ground.

Conference

This fact doesn’t discharge banks

from their obligation to investigate

applicants to get a better picture

of local circumstances in areas

where financing necessitates the

bank’s involvement. Speaking about

this issue, Ruben Zandvliet, an

adviser on Environmental, Social

& Ethical Risk at ABN AMRO, said

at ABN AMRO’s fifth International

Human Rights Conference, “Taking

responsibility for human rights starts

with knowing what’s happening on

the ground and listening to people

who are affected by our actions.

This is why we need to find ways to

make better use of all the publicly

available information out there. We

also need to identify sources we

have yet to tap.”

In 2019, options for carrying out

thorough investigations will become

Human Rights Conference


more and more accessible, a fact

confirmed by keynote speakers

Nick Waters of Bellingcat and Eyal

Weizman of Forensic Architecture.

All the speakers agreed on one

point: investing in a better world is

possible only if we face one another

honestly. Only three per cent of the

world’s population lives in countries

which fully respect human rights.

In that light, the assessment of an

investment in a particular company

shouldn’t be limited to the bank

asking for a few reports to review

and then taking the company at its

word.

If you want to be sure that you’re

investing in a sound, sustainable

and humane company, you’ll have to

ascertain, at the very least, whether

it well and truly does what it says

it does. Are there absolutely no

human rights violations? Are you

really investing in a better world?

Social media

Carrying out careful due diligence

takes a lot of time, especially if

you leave no stone unturned, as

Bellingcat did when it carried out

its detailed investigation of 17 July

2014, the day that flight MH17

from Amsterdam to Kuala Lumpur

was shot down while flying over

Ukraine. It can take a whole year

to make a full analysis of a single

day. Nick Waters admits: “It’s not a

simple matter, but in this modern

age, it is possible. With all the

information posted on social media

alone, investors can verify that a

fashion company doesn’t have its

seamstresses working in cramped

or life-threatening conditions, for

example.”

Mobile phones are now ubiquitous

in nearly every part of the world. An

abuse can be exposed with a single

upload. And since smartphones

and social media have become

so popular, the supply of open-

source information has also grown

exponentially. Social media users

post anything they find strange,

shocking or abnormal to YouTube,

Twitter, Facebook or some local

version of these platforms to share

that information with their friends.

News and media sources are now

suddenly in the hands of the general

public.

Fragmentary information

“Facebook tracks our every

move, but it also provides us with

important information,” says Eyal

Weizman of Forensic Architecture.

Weizman analyses open-source

information. He tells how a few

innocent photos on Facebook

taken by US marines on a base in

Cameroon helped identify which

buildings they had access to. After

the photos were compared with

floor plans in the public domain,

they showed that, despite official

claims to the contrary, the soldiers

had access to areas where acts of

torture were taking place, indicating

they were in all probability aware of

them.

Weizman cites this particular

example because it illustrates

how fragmentary information can

lead to surprising and unexpected

revelations. Fragmentary information

also feeds Waters’s citizen

journalism platform Bellingcat,

which is often the first to refute

“official” news reports. Even before

the official investigative committee

reported that Russia was behind the

downing of MH17, Bellingcat had

come out with the facts after having

made a meticulous comparison of

Facebook photos with Google Earth

images and online sound clips.

Zooming in on details in photos and

identifying and linking up points of

reference is a very time-consuming

process, but Waters says it’s

definitely worth it: “Anyone can

make an allegation. But when proof

is needed, you have to find out the

facts. Only then are you in a position

to make an accusation. This also

sends a clear warning – they know

we can uncover the facts.”

A moral obligation

A panel discussion was also held

during the conference featuring

various stakeholders devoted to


https://www.abnamro.com/en/sustainable-banking/reporting-and-publications/dilemmas/video-dilemma-human-trafficking.html

https://www.abnamro.com/en/sustainable-banking/reporting-and-publications/dilemmas/video-dilemma-human-trafficking.html


the professionalisation of human

rights due diligence: TIMBY, Ulula,

TMP Systems and Impactt. A

growing number of companies,

institutions and NGOs are focusing

on data collection, analyses, fact-

finding and impact studies to help

protect human rights. During the

discussion, conference participants

asked one another how financial

institutions, including banks, can do

more to improve their qualitative

and quantitative research. How do

you ensure a viable process is in

place in which hard figures and the

experiences of real people enable an

objective assessment to be made of

risk and impact?

One of the main takeaways was that

any investor should, by definition,

be suspicious. Speaking on behalf

of ABN AMRO, Maria Anne van

Dijk, Global Head of Environmental,

Social & Ethical Risk & Policy,

summarised the message as

follows: “Verify the results of your

own assessment, ask the right

questions and maintain a healthy

degree of scepticism.” Indeed,

according to Eyal Weizman of

Forensic Architecture, “The slightest

doubt must be sufficient reason

to investigate. Human rights due

diligence is a moral obligation – one

which anyone wishing to invest in

the world of tomorrow must meet.”

About ABN AMRO’s International


Each year, ABN AMRO organises

the Human Rights Conference

for its corporate contacts to

raise awareness of the subject

and the bank’s policy. The fifth

annual conference was held on

10 December 2018, International

Human Rights Day.

The event is just one of the ways in

which ABN AMRO is implementing

its sustainability policy. With over

5 million retail clients and 400,000

corporate clients, the bank can

have a significant impact on making

today’s world better tomorrow by

giving advice on, and providing

insight into, how investments have a

positive or negative effect on social

issues like human rights.

Keynote speakers at the conference

were Nick Waters of Bellingcat

and Eyal Weizman of Forensic

Architecture. The founders of TIMBY,

Ulula, TMP Systems and Impactt

participated in the interactive

sessions.

Watch a short video about ABN

AMRO’s fifth International Human

Rights Conference


https://www.abnamro.com/en/video/sustainable-banking/video-international-human-rights-congress-2018.html




While new ABN AMRO investment clients are offered sustainable investing as standard,

interest from existing clients in this type of investment is also growing. It’s up to private

bankers and investment advisers to discuss sustainability with clients. ABN AMRO invests

in a sustainable world and is providing its staff with additional knowledge about sustainable

investment by means of an education programme.

Since 2018, new ABN AMRO investment clients in the Netherlands are being offered sustainable

Sustainable investment

investing as standard. Naturally, it’s

up to clients themselves whether

they opt for a sustainable or a

traditional investment strategy.

Experience shows, though, that

the vast majority of new clients are

opting for sustainable investment.

Return?

Of the total assets base of roughly

EUR 140 billion, EUR 8 billion was

invested in sustainable mandates

in 2017. The aim is to double

that amount by 2020. That’s a

big challenge. Although existing

clients are interested in sustainable

investment, they’re often reluctant

to make a change. They have lots

of questions like “Sustainability is

all well and good, but won’t it affect

my return?” Or “Is there really

any impact if I opt for sustainable

investing?” To help facilitate a proper

discussion about sustainability, 900

private bankers and investment

advisers are undergoing special

training.

Oxford

ABN AMRO has developed a three-

part education programme starting

with an e-learning module based

on the United Nations’ Principles

for Responsible Investment (PRI)

which covers the terminology

and theory behind sustainable

Sustainability gets academic boost


Sustainable investment

investing. The second part is taught

by representatives of the Oxford

University’s Saïd Business School

, and builds on the first to deepen

the understanding of the theory

and practice of ESG and impact

investing. The Oxford Fundamentals

of Sustainable Investing Programme

provides on-site training at various

ABN AMRO branches in the

Netherlands, Belgium, France and

Germany. The programme concludes

with a workshop focusing on the

relevant investment products and

services provided by ABN AMRO.

An initial pilot training course in

which fifty private bankers took

part was launched in Brussels in

December. And that’s a good thing,

too, because Belgium is seeing a

sharp rise in demand for sustainable

investing. It’s also no coincidence

that Oxford University is involved,

given its pioneering engagement

in this field.. Prof. Robert Eccles,

an advisor to this customised

programme, is a leading authority

on the integration of environmental,

social and governance (ESG) factors

in investment choices, as well as the

world’s foremost academic expert on

integrated reporting.

Higher returns

Eccles studied approximately 200

papers and research projects on

investments, and drew interesting

conclusions. Many investment clients

are critical of how a sustainable

investment strategy impacts on

the performance of their portfolio.

But Eccles says he’s found that

sustainable investing actually

generates a higher return in 80

per cent of cases. “This training

programme is happening at just the

right time,” says Eccles, who is keen

to create context in a sector which

“has become mainstream”.

Sustainability is a factor in half of

all investment decisions taken

“Twenty years ago,” Eccles

continues, “companies started

to understand the importance of

sustainability. At that time, though, it

was all very small-scale, and budgets

were small. In the last three years,

that situation has been completely

reversed. Roughly a quarter of all

outstanding investments in the US

were made on the basis of ESG

criteria. In Europe, that’s now half of

all investments.”

The third part of the ABN AMRO

education programme involves

a workshop in which real-life

client portfolios and situations

are discussed, thus ensuring that

dilemmas and critical questions from

clients are dealt with in an authentic

way.

Going the extra mile

Pieter van Mierlo, CEO of Private

Banking at ABN AMRO, is pleased

with the education programme,

calling it “a logical continuation of

ABN AMRO’s overall sustainable

strategy”. He continues, “Obviously,

the bank is prepared to go the

extra mile – both for its staff and

particularly for its clients. It can

only be in the client’s best interests

that our staff’s knowledge grows.

We want to work towards making

the world a better place, but our

clients want that too, whether they

consciously realise it or not. It’s often

apparent from discussions with

clients that we all basically want the

same thing. And that’s more than

enough motivation for us to keep

improving in this area.”


Sustainable financial markets

Clearing leads the way to sustainable financial markets

Responsible for the transaction processing, financial logistics and risk management

of millions of securities transactions every day, global top three clearing house ABN

AMRO Clearing chooses to wield its influence to boost financial market robustness and

transparency. Vicky Sins, Global Director Corporate Hedgers, is helping to steer the

sustainable transition on behalf of Clearing.

Managing transactions, logistics

and risks

ABN AMRO manages the trading

needs of clients in some 90 markets

across the globe. Vicky says:

“We give these clients access

to the exchange and settle their

transactions for them. These are not

individual clients, by the way; we’re

talking about larger companies and

institutions. ABN AMRO itself is

one of our clients, as it’s through

us that they serve their investor

clients. Before we assume financial

responsibility for the transactions of

our clients, we run them through a

series of extensive screenings first,

to determine their credit rating and

professional integrity. And since

2012 we’ve also been checking

sustainability risks. Currently, 70%

of our clients have been screened

on sustainability risks. Our goal is

to have this risk analysis completed

for all our clients before the end of

the year. When a client has elevated

sustainability risks, we explore

improvement opportunities. And

in specific cases we may start an

engagement process, for instance

targeting clients in the energy sector,

so we can accelerate their energy

transition.

ABN AMRO Clearing is a legally

independent business unit of the


bank, geared at serving three

separate client groups. First of all,

principal traders are specialists who

trade with their own money and

at their own risk, using their own

trading strategies of choice. These

parties play an important role in

sustaining the liquidity of the market.

After all, by choosing which stocks to

buy and sell, they iron out differences

between supply and demand. The

second type of client encompasses

all sorts of financial institutions such

as banks, insurance companies, and

pension funds. Last but not least,

ABN AMRO Clearing also serves

large corporates: companies whose

international business operations

or sectors mean they stand to gain

from hedging price risks in their

specific value chain. By trading in

forward contracts (also known as

futures), these companies secure

their profits from the effects of

unpredictable price swings. Such

derivative financial contracts reflect

the price development of the

underlying commodities, such as oil,

gas, cereals, coffee, and cocoa.

Hedging against price swings

Vicky explains why this matters to,

say, a coffee manufacturer: “For

proper management of company

results, you need to have a solid idea

of the price of your main commodity,

which would be coffee in this case.

But throughout the year, the price

of coffee may fluctuate a lot. If

you buy forward contracts, you’ll

receive future coffee deliveries at

the currently known price, meaning

you can safely set a selling price

for your product and secure your

profits. These types of international

companies often buy coverage

against foreign currency risks as well.

After all, if the majority of employees

receive their salary in dollars, it

would be wise to buy those dollars at

a pre-set price.”

ABN AMRO Clearing wants to

facilitate the sustainable transition of

financial markets. But being merely

the executor of clients’ investment

wishes, what can ABN AMRO

Clearing do in practical terms? Quite

a lot, actually, Vicky explains. “Since

we’re a primary player in the global

markets, our influence reaches far

and wide. We believe that developing

a financial market depends to a large

degree on whether its infrastructure

is stable and futureproof. That’s

why we actively seek to boost the

transparency and robustness of the

financial markets. We can achieve a

lot of impact by initiating dialogues

with clients, market organisations,

regulators, and other stakeholders.

For instance, we talk to our clients

about sustainable products such as

carbon certificates, products based

on wind or solar energy, and how

to structure such products for their

benefit. We also use our influence to

encourage more transparency and

the introduction of environmental,

social and governance (ESG) criteria

in financial instruments such as

forward contracts.” As a major

international player, ABN AMRO

Clearing is also a partner in several

worldwide partnerships. Vicky: “For

instance, we maintain close ties with

the Sustainable Stock Exchanges

Initiative.”

Positive impact with SDG 8 and 13

ABN AMRO Clearing is determined

to play a leading role in the transition

to sustainability and to accelerate it

where possible. This is the transition

phase for clearing companies,

according to Vicky: “While seven

years ago sustainability was most of

all a factor in our risk assessments,

we’re currently looking at it as a

way to make a positive impact.

It’s simple: within our sphere of

influence, what can we effectively

do to have impact? In terms of

Sustainable Development Goals

(SDG) 8, 12, and 13, the ones ABN

AMRO is committed to in particular,

we are especially cracking down

on SDG 13 (Climate Action) and

8 (Decent work and Economic

Growth).” Together, the SDGs

comprise the sustainability goals of

the entire world. Vicky: To be able to

offer our clients expert advice, we

start by gaining first-hand experience

in our own organisation if at all

possible. For example, a study is

currently underway to estimate the


https://sustainabledevelopment.un.org


carbon emissions of our worldwide

data centres.”

Managing all those international

transactions properly takes an

enormous amount of data centre

capacity. Vicky confirms: “Early

in February we’ll receive an exact

figure on the carbon emissions of

our data centres. Once we have the

numbers, we can set concrete goals

to decrease emissions. Then we will

continue monitoring the statistics so

we know whether we’re successful

– and so we can take appropriate

compensatory measures if not. With

the knowledge and experience of

that project under our belt, we’ll be

ready to start engaging with our

clients.” ABN AMRO Clearing also

plays an important role in facilitating

emissions certificate trade. Vicky

explains why these are key for the

energy transition. “We don’t stop

at facilitating trade transactions. To

encourage the transition to more

sustainable energy generation, we

maintain close links with energy

and utilities companies. In the same

vein, we develop financial products

and solutions with the help of our

banking colleagues. By making the

transition to sustainable alternatives

more attractive to clients, we’re

accelerating and boosting the

transition.”

Robust and transparent financial

markets

Vicky speaks proudly of the recently

announced cooperation with

Frontclear. “Where we have a great

deal of knowledge and skills in

building financial infrastructures in

Western countries, Frontclear is all

about developing stable financial

market infrastructure in developing

countries. By joining forces, we

can contribute to the creation of

transparent and robust financial

markets in those countries too.

We’re making it happen by launching

four concrete projects, run by

experienced Clearing employees

from four different continents.

What kind of projects? One of

them involves establishing financial

infrastructure in Nigeria, with the

ultimate purpose of achieving a

healthy money market and a stable

financial system.”



Matching investors with sustainable start-ups

Sustainability Pitch Day

On the ABN AMRO Sustainability Pitch Day, start-ups and growing businesses present

themselves to ABN AMRO’s investor network. An investor in the audience and three

participating entrepreneurs tell us more about these new businesses.

On 5 November 2018, ABN AMRO

organised the Sustainability Pitch

Day for the fourth year in a row. The

event offers a platform for sustainable,

circular and social enterprises looking

for investors or knowledge partners in

order to grow. The participants present

themselves to ABN AMRO’s investor

network, made up largely of current

and former entrepreneurs who want

to use their assets and experience

to help support young entrepreneurs

with a solid, sustainable business

plan.

Linking investors with sustainable

entrepreneurs

Investment Manager Gerard Knaack

is closely involved with sustainability

and start-ups in his job. He says,

“There are so many good ideas out

there which definitely deserve to be

implemented. But it’s not always easy

to launch a new idea or grow after a

successful launch. Our team acts as

an intermediary between start-ups

and investors who have indicated that

they want to contribute to sustainable

initiatives. Sometimes that’s through

investment. Sometimes it’s by

making their knowledge, experience

or networks available. Often it’s a

combination of the two.”

Embracing a sustainable mission

and making a profit

One of these investors is Paul Citroen.

He regularly invests in start-ups

pursuing a sustainable or social

objective, some of which have come

to his attention through ABN AMRO’s

network. Citroen says, “I invest in a

student employment agency called

StudentTalent, and in Saint Basics, a

manufacturer of organic underwear.


I try to contribute by showing how

an entrepreneur can carry out a

sustainable mission while still turning

a profit. Believe it or not, they’re

mutually reinforcing objectives. Green

ambitions are of no use at all if there’s

no solid business plan in place, since

you won’t make any money or have

any impact. The two have to come

together.”

“Not being the only investor”

As an investor, how do you know if

a particular start-up is a good match

for you? “Asking critical questions is

important,” Paul says. “How sure-

footed is the entrepreneur? It’s OK not

to have all the answers. I’m not a fan

of glib introductions. I’d much rather

work with people who are honest,

so we can figure out together how

to bring in the extra knowledge we

need.” In some cases, Paul is the right

person, given his financial background.

But he says he never wants to be

the sole investor in a venture: “It’s

too risky. I’d prefer to sit down with

five entrepreneurs. That way, we all

complement one another’s expertise

and have a healthy, meaningful

discussion.”

Pitch: Ronald van Bemmel – Softs

“Our investors work with us as

partners”

One of the entrepreneurs who

pitched is Ronald van Bemmel of

Softs. His business develops mini-

power stations, called Softs Points,

which allow businesses to generate

their own energy, as well as filter air

and water. According to his business

model, companies install a Softs

Point, and the proceeds are then

used to sponsor local community

and sustainable initiatives. Van

Bemmel thus hopes to contribute to

the acceleration of sustainability at

the local level through organisations

like sports clubs and schools which

lack the necessary resources to

do this themselves. Van Bemmel’s

company installs the Softs Points free.

Ten per cent of the savings goes to

Softs, and the rest is earmarked for

local sponsorship. All that requires

investment.

Van Bemmel says, “The benefits of

Softs are two-fold. The companies

which install a Softs Point consume

less energy and contribute to

the sustainability of their own

communities. There’s been a lot

of interest both here at home and

outside the Netherlands, which is

fantastic. After all, the more Softs

Points, the greater the impact! In

order to remove the entry barrier, we

fund the points ourselves. That costs

a lot of money – in fact, we’re looking

at a figure of EUR 3.75 million to cover

all current applications.”

Although it’s a considerable sum, it

hasn’t put off investors. In fact, at the

end of van Bemmel’s short pitch, one

investor expressed interest right away.

And within just one month, he had

all the money he needed to proceed.

Van Bemmel says, “It’s a wonderful

feeling. That’s why we do it, right? But

it’s not always easy finding the right

match. Fortunately, we’ve already

found several matches thanks to ABN

AMRO’s network. At the beginning,

it’s important to have an investor who

really believes in what you’re doing.

After that, things often get easier –

but that’s not a given. That’s why I’m

thrilled to have found another match.

The EUR 3.75 million puts us one

step closer to meeting our goal. The

best thing, though, is that most of our

investors are now working with us as

partners. They actually work for Softs

or sit on the advisory board which we

brainstorm with once a month. For

me, that’s the ideal collaboration.”

Pitch: Frank Bokhorst – GRO

Mushrooms “Be smart about how

you collaborate”

GRO Mushrooms is about growing

mushrooms as a meat substitute.

The business model originated in

Zimbabwe. GRO founder Jan-Willem

Jansen and his wife decided to

grow mushrooms on agri-waste in

order to feed the children at their

Zimbabwe-based orphanage. The

model has since been launched in the

Netherlands. GRO currently grows

oyster mushrooms on waste coffee

grounds and sells them to the Dutch

restaurant chain La Place or uses

them to make products like oyster



mushroom burgers or bitterballen (a

traditional meat-based snack). The new

meat substitutes will also be hitting

the shelves of Dutch supermarkets

this year. GRO is now looking to

expand beyond the Netherlands, a

move which requires capital – EUR

500,000, to be precise. The business

places value on who the investor

is, says GRO’s Commercial Director

Frank Bokhorst. “It has to click,” he

says. “Not all investors understand

the dynamics of our business. We’re

not making cars here. Investors have

pulled out in the past because they

find our business model too complex.”

Despite this, Bokhorst says that

getting funded isn’t the problem.

“Finding the right combination

of knowledge, skills and financial

resources is more difficult,” he

explains. “That vital combination is

of more use in the medium term. A

foreign investor with an international

food network would be ideal, since

that would allow us to benefit from a

logistics network or a new distribution

channel.”

Since his pitch, Bokhorst is now in

talks with potential investors. He

says, “I notice they’re keen to make

the food chain more sustainable,

and that’s new. Slowly but surely,

issues like circularity and the protein

transition are growing in popularity. I

call it “the new Internet”. It will take a

lot of money to make the food chain

more sustainable, but investors also

know there’s a lot of money to be

made. Sometimes it just takes the

world a little more time to see these

things.” Bokhorst says he doesn’t

necessarily see this as a problem,

though: “If a trend doesn’t catch on

right away, you just have to be smarter

about how you collaborate. After all,

there’s more than one road to the top.”

Pitch: Sandra van Beest – The

Social Handshake “I’m collecting

investors and coaches”

We all want to make the world a better

place, but it can be hard to know

where to start and how to make the

greatest possible impact. For Sandra

van Beest, this feeling intensified after

she became a mother. She went on to

develop The Social Handshake, Payroll

Giving – a tax model that allows

employees to donate a portion of their

salary via their employer to make a

double impact.

“This is my first start-up, so it’s all

very new and exciting,” says Sandra.

“We’re now in our first round of

investment and will launch in early

2019. We need EUR 550,000 to fund

the pilot project and roll-out. We’re

lucky in that word is spreading fast.

Plus it helps that there’s an overall

feeling that people want to do more

for the world. Lots of people out there

recognise themselves in our branding

and want to contribute. Sometimes I

meet people from companies which

may not be able to help us financially,

but who turn their entire network

inside out to see who else might be

able to.”

Van Beest’s pitch resulted in

discussions with three potential

investors, one of whom is now

funding part of the Social Handshake

pilot project. “A platform for

experienced investors, like this one, is

a huge help,” she continues, “not just

in terms of funding, but also advice.

Some approach investments as a

CFO, while others have more of an

impact perspective. That’s so valuable

when your very first business is in its

launch phase.”

One piece of advice Sandra got was

about developing natural resilience.

“I get that,” she says. “You have to

know how to pick yourself up again

after a setback. Success is as much

about raising capital as it is about

surrounding yourself with the right

support. That’s why I’m hoping to

collect not just investors, but coaches,

too.”

Looking for investors? Or a

sustainable investment?

Visit informalinvestment.nl or contact

ABN AMRO’s Informal Investment

experts. Gerard Knaack –

[email protected]


mailto:https://www.abnamro.nl/nl/privatebanking/uw-doelen/investeren-in-bedrijven/informal-investment-services.html?subject=

mailto:gerard.knaack%40nl.abnamro.com?subject=

ABN AMRO

Sustainable Banking

Gustav Mahlerlaan 10, 1082 PP Amsterdam

P.O. Box 283, 1000 EA Amsterdam

The Netherlands

abnamro.com/duurzaam-bankieren

[email protected]

https://nieuwsbrieven.abnamro.nl/duurzaambankieren_en

the how and why #14 sustainable banking - abn amro · 2019. 11. 4. · this newsletter is part of...

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