Transcript No Slide Title

Banking on
Sustainability
June 21, 2005
Maria Luiza Pinto
Education & Sustainable Development
Executive Director
ABN AMRO in the world
•
ABN AMRO is an international bank with
origins going back to 1824, in the
Netherlands
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Is the biggest bank in Netherlands and
the biggest foreigner bank in USA
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Is the 11th biggest bank in Europe and
20th in the world (ranked by tier 1
capital)
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Has over 3,000 branches in almost 60
countries and territories
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2nd positon in the Dow Jones
Sustainability Index
Data december 2004
ABN AMRO BU Brazil
• 9,2 million clientes
• 1,109 branches
• 28 thousand employees
Results (2004)
•
•
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US$ 2,9 billions of Net Equity
US$ 22,8 billion total assets
Net Profit US$ 458 million
Operating Income US$ 704 million = 20,6% bigger comparing to the
same period in 2003
Our movement
Waves of the movement
Individual
Organisation
Society
From inside to outside
Starting from the top
Sustainability is a principle that
guides our actions
Our Core Business
Universal
Socio-environmental risk policy
Socio-environmental products
SRI funds
Microcredit
Suppliers
Diversity
Eco-efficiency
Social Action
Education
Sustainability report
MARKET
MANAGEMENT
SOCIAL ACTION
Sustainable
Lending
• Evaluation of social and environmental risks in the lending process
• Education & Training of 1600 Relationship Managers (IFC and Friends of
the Earth - Brazil)
• Excluded activities:
– companies that use child labour
– activities that promote prostitution
– products that contain asbestos
– extraction of virgin forests
• 2 questionnaires – companies with a net income of over and under
R$ 20 million/year – approximately 3000 companies have completed the
questionnaire
• ABN was a signatory to the Equator Principles, which is applied for new
projects over US$ 50 millions
An inclusive approach
Sustainable Products “financing”
• Recent partnership with IFC (US$ 51 million credit line) and BNDES
• Portfolio volume
US$ 8,95 million for individuals
US$ 50,6 million for companies
• 7.558 contracts (individuals)
May, 2005
• Financing facilities for companies: environmental and social projects (water
treatment, renewable energy, efficiency energy), CDM (Clean Development
Mechanism), cleaner production, corporate governance and others.
Credit for individuals:
• Environmental: car engine conversion for natural gas, solar heaters
• Social: vehicles and equipment for people with disabilities
• Educational: MBAs, Seminars & Computers
A constantly evolving process
Microcredit
Credit line of small amounts created to foster income generation and
employment for disadvantaged and low-income communities
• 5.550 clients, 8 communities (São Paulo, Campinas, Rio Janeiro)
• Average loan of R$ 1,500.00 (US$ 558)
• Total Loan: R$ 6,6 million (US$ 2,27 million)
• 50% individual loans X 50% solidarity groups loans
• 48% women - 52% men
• Partnership with ACCIÓN
May, 2005
Key learning points
• Clients personal and business life is totally integrated – impacting in
the range of the products
• Clients financial needs are high, but they have low trust in banks and
the environment is very competitive: create other connections with the
community
• High costs to run mini branches: create synergy with the AAB branches
• Credit agents: from the approval to the final repayment of the loan, over
business advisory - a success model
• To find the right profile
• Deal with high index of negative credit records
ABN AMRO REAL
Academy’s mission
“Create educational experiences that
promote the development of employees
and the Organisation’s relationship
network, contributing to achieve people’s
self satisfaction and the fulfilment of the
mission of the Organisation”
Educate with our way of being
New educational model
• Humans in their various roles (professional, citizen...)
• Responsibility and Leadership
• Values
• Diversity
• Multiple learning forums
• Sustainability should permeate all educational actions
Leadership Development Program
“You can only be a better professional by being a
better person.”
5 Classroom Modules
- Maturity
- People Development
- Influence and Mobilization
- Leadership for Sustainability
- Reasoning and Strategic Thought
12 Coaching Sessions
Coaching for senior executives
Education for Sustainability
• Workshop for sustainable business activities
• Business Management
• Sustainability Workshop
• Case-studies based on our experience
... Harvard Case-study
Employee Development
• The manager went to the customer’s house:
right or wrong?
• The model encourages staff to put their whole selves
into their work, following not only the rules, but also
their beliefs
What have we learned?
• To make it work we need to focus
• We have to be willing to change
paradigms and shift the system
• It is necessary to have a new vision
of the Human Being
• It is important and rewarding to
share dilemmas and uncertainties
What are the next challenges?
• Strengthen the dialogue with clients,
staff, suppliers and society
• Make from “risk” to “opportunity”
• Ongoing education of our staff
members
• Share our education and training
actions with stakeholders
• Measure the impact in different
dimensional aspects
Our way of being
… succeed, doing
the right things, the
right way!
“We are the size of our dreams”
"Nós somos do tamanho
dos nossos sonhos"