Sustainability policy

ABN AMRO’s Sustainability Risk Policy sets out the principles that guide our approach towards sustainability risk management related to banking and business relations. Based on this policy, ABN AMRO has put a Sustainability Risk Management Framework  in place. Thiscoherent set of policies, guidelines and statements describes how we manage our sustainability risks and embed them in our decision-making processes. It sets out the conditions under which we engage with our clients, suppliers and investors. Through this process, the bank ensures that sustainability risks are adequately identified, analysed, mitigated, managed, monitored and reported. The framework has been approved by the bank’s highest risk assessment body

Project finance

One special lending category is project financing. In project financing, lenders are often confronted with environmental and social issues, especially in emerging markets. The Equator Principles set strict additional requirements for this type of financing. Now that we have introduced this guideline, we are obliged to analyse all project financing deals. And we are not permitted to finance projects if the borrower doesn’t fulfil our social and environmental policy. The Equator Principles apply to project financing worldwide and provide a collective basis for the entire commercial banking sector.

Exclusions

ABN AMRO’s aim is to accelerate the sustainability shift. That’s why the bank is helping its business clients make the change. Some companies, though, are involved in activities ABN AMRO wants nothing to do with. For example, we do not want to be involved in the financing of the production of cigarettes or the development of new coal fired plants. Even though it is permitted by law – we don’t consider this to be ecologically, socially and ethically responsible.By the same token, we were one of the first major Dutch banks to draw up an Exlusion List, which we observe strictly and update regularly in response to new insights on sustainability. In addition, we exclude companies who are involved in controversial weapons.