Human Rights Report: a balanced picture of progress and challenges

The ABN AMRO Human Rights Report is published every other year as an integral part of the bank’s annual reporting – this year’s publication was the fourth edition. The bank is a forerunner in this area: this type of reporting is not (yet) required by law, and ABN AMRO is currently the only bank to publish such detailed information in this way.

Crystal Prize for transparency

The bank’s track record has certainly not gone unnoticed. In November, ABN AMRO was awarded the Crystal Prize by the Dutch Ministry of Economic Affairs and Climate Policy and the Netherlands Institute of Chartered Accountants (NBA). The jury praised its transparent reporting on human rights, citing as equally if not more important the assurance given by accountancy firm EY, which was able to verify all assertions made in the report. “This verification procedure increases the quality of our Human Rights Report and underscores its legitimacy,” explains Yuri Herder, business and human rights adviser at ABN AMRO.

The bank first published its report on human rights in 2016. Even then, ABN AMRO was no stranger to this important topic. In 2011, it signed up to the UN’s Guiding Principles on Business and Human Rights, resulting in the bank’s first Human Rights Statement in 2012.

Impact on people

“The bank impacts individuals in so many ways,” Yuri says. “First of all, it employs over 20,000 people, and they need a healthy and safe environment to work in. We also have 5 million private clients whose privacy we have to protect. And then there are our investment and business clients, through whom we impact millions of people who may be affected by all sorts of other companies, factories, suppliers and global production chains.”

The Human Rights Report focuses primarily on the corporate sector, which is where the main human rights risks for ABN AMRO exist. The bank provides investment services, finances businesses, and purchases goods and services. Through these businesses and their production chains, the bank risks having a negative impact on working conditions, health or privacy – a risk ABN AMRO obviously wants to minimise.

Naming names

The latest edition of the report stands out for its openness and honesty, says Emmelie Claessens, business and human rights adviser at ABN AMRO. “You might say we’ve taken transparency one step further this time. For instance, we’ve simply named the companies where there are risks. These include listed companies clients invest in through the bank. Through our partner EOS at Federated Hermes, we’re also engaging with these firms to encourage change.”

One example is TotalEnergies, a listed company in which the bank’s clients invest. According to reports from NGOs, the company is allegedly involved in human rights violations. Together with EOS, the bank has called on TotalEnergies to better show that its efforts reflect the human rights challenges in its operations in vulnerable areas worldwide.

Sometimes, though, it’s not entirely clear what’s happening in a certain company or sector. Emmelie explains, “In some regions, journalism or free speech is under pressure. And because of that, human rights violations don’t always come to light. Sometimes it’s a black box, and that remains a significant challenge.”

Certain issues, like the exploitation of migrant workers, occur in the Netherlands, too. That’s why the bank applies strict criteria when assessing temporary employment agencies before accepting them as clients. ABN AMRO is also in constant dialogue with the sector.

Not just a list of success stories

The Human Rights Report is more than just the bank listing all its success stories – indeed, it offers a realistic representation of its efforts and the challenges it faces. “The report provides insight not only into what we do, but also where we can improve in the future,” Emmelie stresses. Yuri adds, “The report weighs the results, clearly showing where we as a bank still need to take steps – by engaging more with our suppliers to discuss social issues, for example. We also expect our clients and stakeholders to hold us accountable in these areas.”

Emmelie concludes, “At the same time, it’s encouraging to see how far we’ve come in recent years. We now engage structurally with client groups to tackle themes like the environment, society and governance. And we share knowledge and experience in order to learn from one another. Obviously, we’re not there yet – it’s an ongoing process. But that’s exactly why it’s good that the report shows what still has to be done. We going to continue working hard in those areas in the coming years.”