ABN AMRO UK gets other banks involved in sustainability

News article
27 April 202102:00
Sustainable banking newsletter

ABN AMRO is holding round-table sessions in the UK to discuss sustainability with clients in the financial sector in an effort to boost the transition to sustainability there.

Maybe it was just a case of cold feet. Or scepticism. Or perhaps it was the looming spectre of Brexit which had largely come to dominate the public sphere. One thing is certain, says Ian Haywood, a relationship manager who works for ABN AMRO’s Financial Institutions in the UK – the UK initially struggled to keep pace in making the transition to sustainability. That was the case not only for the business community, but also for investors, regulators and society as a whole.

Meanwhile, however, the country is closing the gap. ABN AMRO is making a contribution, too, by sharing its many years’ experience across the bank with financial institutions that have recently turned their attention to sustainability. In fact, the bank is hosting a series of round-table sessions on themes including impact reporting, climate risk management and external sustainability assessments to encourage and support its financial clients.

Learning from one another

“We held the first session three years ago solely to strengthen customer loyalty,” Ian recalls. “The theme was sustainability, so we wanted to give the attendees an idea of what we do in that respect. The session was so well received that we organised a second one later on in London – this was before the coronavirus crisis. The sessions have since become an embedded, long-term initiative and take place three or four times a year.”

Currently held online, these sustainability-centric sessions are attended by representatives of some twenty UK-based financial institutions, most of them banks.

“Making the transition to sustainability looks different at each of these organisations, so we don’t dictate to clients how they should go about it,” Ian explains. “Obviously, in some areas, we’re ahead of the curve which is why we’re sharing our knowledge and experience about what’s worked well for us and what hasn’t. That way, we can all learn from one another.”

It’s a journey, not a destination

The most important insight ABN AMRO has conveyed to other banks in the sessions is that sustainability is not an end in itself, but an ongoing process. “It’s not about achieving sustainability this very minute – it’s about embarking on the journey,” Ian emphasises. “No two business models are exactly alike, so sustainability is different for everyone. During the process, you learn new things, and your organisation changes, as does your environment. It’s a never-ending process. What’s more, it’s not about banks competing against one another. It’s only all together that we’ll effectively make the transition to sustainability.”

In addition to sharing its experiences, ABN AMRO gives participants information about how it can provide deeper support to financial institutions – by arranging green bonds, for instance. In 2017, ABN AMRO helped the British bank Barclays issue the first UK green bond, which was subsequently named Green Bond of the Year by Environmental Finance. The bank can also provide support on a social level. For example, ABN AMRO was recently asked – for the second time – to arrange a social bond for NatWest Group.

From sideshow to main event

Ian says that UK companies are now looking beyond their own business operations – proof positive that sustainability is starting to take hold in the country. Organisations are also engaging with customers and suppliers. Plus he sees a growing number of banks integrating their reporting on sustainability into their annual report in much the same way ABN AMRO does. “Sustainability is no longer a sideshow. It’s now becoming part of the main event,” he says.

Ian’s advice to banks – and to companies generally – is to be open to change and, above all, to identify opportunities to collaborate with other companies in the same sector. “Take steps to develop or share best practices together,” he says. “Resist the urge to act on your own initiative. If we work together, we’ll make progress.”

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