Our first CSRD annual report

A considerable undertaking

ABN AMRO has long been committed to sharing information on its sustainability efforts and has taken a proactive stance in this area for quite some time. Back in 2023, the CSRD was allotted a dedicated chapter in the bank’s integrated annual report. Nevertheless, compiling all the data underlying our 2024 CSRD report was a considerable undertaking – one that required the involvement of every part of the bank. The directive calls for transparent reporting on impacts both from companies themselves and in their value chains. For banks, that includes the activities of our clients, many of which are SMEs, where critical data – such as those needed to calculate carbon emissions – are not always readily available. In such cases, we rely on estimates based on sector averages.

Double materiality

A cornerstone of the CSRD is the principle of double materiality, the idea that while a company has an impact on society and the environment, it is affected by them as well. Our double materiality analysis identifies the most important sustainability issues by assessing not only our own impact, but also external developments that may have financial repercussions for the bank. These issues are integral to our reporting.

Climate change

ABN AMRO faces a number of material issues, including climate change, which encompasses both the influence of our activities on the environment and the impact that environmental factors have on us. Of all the financing the bank makes available to its clients, the largest share is allocated to the built environment. Buildings, by definition, consume energy and generate carbon emissions. Yet by helping our clients make their homes and offices more sustainable, we can help reduce both energy consumption and emissions. For example, the bank encourages homeowners to make sustainable home improvements in a variety of ways.

By the same token, the bank faces financial risk if, for instance, climate change results in increased flooding and damage to homes. Our annual report includes detailed figures and information on how we address both aspects of this issue.

Human rights

Another material issue is the treatment of workers in our value chain. After all, the companies we finance, along with their extended supply chains, employ millions of people. ABN AMRO has implemented a human rights policy for many years and reports on its actions to identify and mitigate related risks. We remain committed to making a tangible contribution towards upholding human rights in our own value chain and in those of our clients. The annual report details our efforts over the past year involving fair pay, workplace safety and forced labour. Another important step we took last year was the launch of the Human Rights Remedy Mechanism pilot project, which offers those whose human rights have been infringed on by business clients of the bank the chance to engage in dialogue via an independent facilitator.

Focus

CSRD reporting has given all stakeholders a clearer view of our position on the sustainability issues that matter most to the bank. By documenting our progress in these areas, we also gain deeper insight into emerging opportunities and where to focus our attention. This approach helps us make the greatest positive impact on society through our activities while minimising any adverse effects. I am immensely proud of all the collective efforts that enabled us to complete our first CSRD Annual Report and am confident that it will help us move forward as we pursue our strategy and our purpose of “Banking for better, for generations to come”.

The European Commission is currently looking at ways to simplify sustainability regulations for companies, including the CSRD, through the first Omnibus package of proposals. You can read more about this initiative here.