Triodos

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

[email protected]

www.triodos.co.ukTriodos Bank NV, Brunel House,

11, The Promenade, Bristol BS8 3NN