Future Generations Board gives young people a seat at the table

In its decision-making, ABN AMRO used to weigh the interests of four distinct stakeholder groups: clients, employees, investors and society at large. With the founding on 30 January of the FGB, made up of seven bank employees no older than thirty-five, ABN AMRO will now be actively including the interests of young people and the unborn in its strategy going forward.

Blind spots

“We wanted to bolster the foundation of our purpose ‘Banking for better, for generations to come’,” says Jennifer Paffen, the newly appointed chair of the FGB. “We thought about what it means to be a better bank, and felt there were still some blind spots in our decision-making. Our job is to represent the interests of future generations.”

The FGB has a formal role as part of ABN AMRO’s governance structure and collaborates closely with the Chief Sustainability Officer, Solange Rouschop, who reports directly to CEO Robert Swaak. The chair of the FGB also has a permanent seat on the Group Sustainability Committee, the central steering committee focusing on sustainability issues at the bank. FGB members serve for a minimum of eighteen months.

A more diverse perspective

A casual observer might wonder why such a board is necessary in the first place. Isn’t it the responsibility of the senior management to include all viewpoints and interests in its decision-making?

“The FGB is made up of people working throughout the bank,” explains Kuvanya Pillay, strategy lead on the FGB. “Because we operate at different levels, we see things senior leaders may not always notice. I also like to think we add a broader and more diverse perspective.”

“We’re not naively claiming young people know everything, or even know better,” Jennifer adds. “The younger generation sees the world differently and doesn’t hesitate to voice its opinion. Top management is certainly able to represent our interests in many respects. But our presence makes things more tangible for them because we bring first-hand experience and perspective. So far we’ve received positive feedback from top management. They’re eager to hear us out and take our views into account.”

Generations test

The FGB meets weekly online and monthly in person at a location set in accordance with members’ home countries (the Netherlands, Germany and France). It has three main objectives: first, ensuring that the impact of decisions made today on future generations is given proper consideration; second, improving the alignment of the bank’s strategy with its governance and steering; and third, raising awareness – first internally, then externally – of the importance of young people having their voices heard and integrated into decision-making.

To meet the first goal, the FGB is developing a “generations test”, an innovative tool that helps determine whether current plans meet the needs of future generations. ABN AMRO is one of the first in the corporate sector to integrate this type of test into its decision-making process.

The FGB considers the full range of issues facing the financial sector, including privacy, diversity, ethical questions and equal access to financial services.

Moving the sector forward

In Jennifer, Kuvanya and the other members of the FGB, ABN AMRO has found an ambitious group of young people who are ready, willing and able to move the bank – and the whole industry – forward.

Kuvanya says, “The bank has its purpose, but at times, knowing how to operationalise that purpose can be a challenge. Sustainable finance reporting regulations make up a large part of my day-to-day work at ABN AMRO, a topic that’s also inherently linked with our strategy. Obviously, I’m all for good strategies and good intentions, but it’s imperative we operationalise those ambitions in an efficient way.”

“I fully support the bank’s purpose,” Jennifer says, “but I’ve always wondered how I personally could contribute to it. I’m eager to improve and innovate where necessary and see change implemented. But it’s important to back up words with concrete action. As an employee, I’m responsible for how my bank operates and what impact it has on society. Through the Future Generations Board, we can contribute to a more equitable and sustainable world, for generations to come.”