Nature Statement underscores ABN AMRO’s biodiversity ambitions

ABN AMRO aims to motivate all stakeholders in the supply chain to help preserve biodiversity. After all, biodiversity loss affects not only businesses and companies, but society as a whole, say Fred Bos, Head of Commercial Clients, and Solange Rouschop, Chief Sustainability Officer at ABN AMRO.

In its recently published Nature Statement, ABN AMRO has reaffirmed its commitment to preserving biodiversity. Why is this issue so important to the bank?

Solange: “Our society and economy depend on so-called ecosystem services, in other words on an environment that’s healthy and thriving. But companies and business in a number of sectors are harming these systems by exacerbating the loss of biodiversity through activities like intensive agriculture. As a bank, we see where the risks and opportunities lie. Together with stakeholders in the value chain, we’re looking at how to reduce risks while helping our clients become more sustainable.”

Fred: “These risks are evident in the agricultural sector. Poor apple crops are the result of there being fewer insects to pollinate orchards. Poor fruit and vegetable harvests, in turn, affect the food industry. The loss of biodiversity has an impact on all of us – it’s a crisis that affects everything else.”

ABN AMRO has been publishing data on its own impact on biodiversity for a number of years. This impact is significant, particularly as a result of the client activities it finances. How can we reduce this negative impact?

Solange: “Our strategy is increasingly to integrate halting biodiversity loss into the core of our business processes. We’ve also systematically documented the climate and environmental risks that sectors and companies in our loan portfolio may face, as well as the impact that the activities of individual sectors have on biodiversity loss. The Kunming-Montreal Global Biodiversity Framework, in which countries have agreed on how to halt the loss of biodiversity, serves as our reference.”

Fred: “The bank has also joined the Delta Plan for Biodiversity Recovery, which brings together nature conservation organisations, farmers, private individuals, researchers and representatives from local government and business to restore biodiversity in the Netherlands.”

What does all this mean for clients?

Fred: “Protecting biodiversity is right in line with our purpose of ‘Banking for better, for generations to come’. It’s an issue facing society as a whole – one we need to address together with our stakeholders. And with a loan portfolio worth EUR 280 billion, there’s a lot we can do. That’s why we include questions about biodiversity and ecosystems in our risk assessment of business clients. Sharing this information is no longer optional.”

Solange: “That’s right – we see that sharing insights and data can increase awareness and engagement in high-impact sectors. And awareness is certainly growing. It’s clear in the agricultural sector and food service industry that production cannot continue without healthy ecosystems.”

How is ABN AMRO helping its clients?

Fred: “We’re looking at ways to help farmers move from intensive to regenerative agriculture to help restore ecosystems by increasing biodiversity and improving soil quality. It’s not easy because working with nature requires a transition period of several years to allow for fundamental changes in farming practices. One way we can help these farmers is by offering them a temporary repayment break to facilitate their switch to a more sustainable business model. During this period, they only pay interest on the loan. We’re also looking to develop an insurance product to help farmers bridge the financial gap when they start to use fewer chemical pesticides.”

How can you exert more of a direct influence on biodiversity through financing?

Fred: “There are a number of ways, and we still have a lot to learn here. I saw an inspiring example of this during a recent working visit to our client Dun Agro BV in the town of Oude Pekela in the Dutch province of Groningen. Dun Agro is making major strides in scaling up the cultivation and use of hemp. The company has extensive experience and know-how around hemp, from seed to end product, including its use in construction. Farmers can alternate between growing potatoes and hemp to avoid depleting the soil – and healthy soil is the basis for biodiversity.”

Solange: “This is an excellent example of how we can use the chain to make the transition a success. The increasing demand for hemp is making it commercially more attractive for farmers to take this route. Hemp is a renewable, sustainable product used in the construction industry for components such as partitions and insulation. We’re seeing this market grow as climate agreements require the construction industry to use more bio-based materials. So it’s a win-win situation for both the constuction industry and the agricultural sector. We want to encourage companies and businesses to think more about circular models. The less primary raw materials companies use, the less negative impact they have on ecosystems.”

The bank is also looking at the built environment to slow the loss of biodiversity. What steps have been taken so far?

Fred: “We recently entered into a partnership with NL Greenlabel, which advises real estate owners and developers on how to incorporate climate adaptation and biodiversity as factors in the built environment. Examples include shading properties with trees and providing them with green roofs.”

Solange: “Investing in nature-inclusive design has so many benefits. It obviously contributes to biodiversity, but shade also reduces heat stress in the built environment and the need for air conditioning in buildings. A green roof can prevent drainage problems, which can have a positive impact on the value of a property. People also enjoy working in a green environment. A nature-inclusive approach makes a difference in so many ways.”