Rabobank in business

22-7-2008 | Other news

Rabobank is not just looking inward at our own emissions and impact on the planet, we are now looking at the emissions of our corporate clients. In this month's column, Head of Corporate Social Responsibilty Bart Jan Krouwel asks and answers, as a bank, should we be concerned about the CO2 emissions of the companies we do business with?

To find out more about the emissions of some of our clients, we hired consultants and collected research. We now know more about our clients’ emissions, but what are we going to do with this information? Is it the responsibility, a role, a task for a bank to talk with the client and say, “You are producing too many emissions?”

I say yes. Emissions is a factor we need to consider when doing business. If a client is not willing to reduce emissions, the laws and regulations attached to emissions will eventually cost them a lot of money. If a client has extra financial costs because of their CO2 output, it may put them in danger financially.

Currently, emissions might not be a problem for all of our clients because of the industry or location. But, more agencies, governments, businesses and the general public are looking at each company’s pollution output, and it is starting to become a problem. 

At Rabobank, we have discussed our clients’ emissions and it is a delicate issue. Is it the role of a bank to discuss emmisions with clients? Should we discuss emissions and provide a kind of customer care? 

Can we say, “Here is your carbon footprint, what would you like to do about it? Can we work on it together?” In the end, they would be a less risky client. But, how far do we take this and how much should it affect our business as a bank?

At this time, the Rabo executive board has decided that we will not take specific measures nor get involved in the emission activities of our clients. 

However, governments will become more strict, not less strict, with emission regulations. Companies can wait for rules to change before they start focusing on their own emissions, but Rabobank is not waiting. We are aware of our emissions and from 2007 we have taken measures to be carbon neutral ourselves. 

By being prepared, taking action and being a frontrunner rather than a follower, you can set your own margins and market share. We can show it is more profitable, but not everyone is believing it. It still needs to be proven.

Bart Jan Krouwel
Head of Corporate Social Responsibility