TlB Annual Report 2009 - Triodos Bank

that few could afford. In recent years that has
changed. And in 2009 our longer-term view and
straightforward approach appealed to a wider
audience than ever before.
Where we may have been admired at best, or
ignored at worst in the past, for some at least
we are now regarded as a model that others can
learn from. Our business model sounds, and is,
simple. And that perhaps is the point. Triodos
Bank takes the money entrusted to it, and only
lends it to enterprises making, distributing or
selling tangible products or services. With
Triodos Bank, customers also know that we will
only use their money to finance sustainable
organisations - of the kind highlighted in this
Peter Blom: ‘We want to
influence the development of the
banking industry. Not simply by
talking about a sustainable
financial future, but by actively
delivering it.’
Annual Report. As well as paying them a return
we then tell our customers where their money
goes. For example, in 2009 we developed an
online tool that allows visitors to our website
to go on a ‘virtual’ trip to see the customers we
finance. Launched in the summer of 2009 in
The Netherlands followed by the uk later in the
year, Mijn Geld Gaat Goed (My Money Goes
Well - www.mijngeldgaatgoed.nl) is a simple,
but powerful transparency tool which will
eventually allow anyone with internet access to
‘visit’ all the projects we lend to across the
Triodos Group.
But just financing sustainable projects, and being
transparent about it, is not enough. We cannot
have a more sustainable lifestyle without a
more sustainable financial system. Speculation
about what happens after the recession fails to
recognise that lasting change depends on a new
system approach that can underpin a new,
more sustainable economy. Much of the recent
debate around the crisis focuses on ‘rebuilding
trust’, which sounds ominously like business as
usual. Rather we need to change finance much
more fundamentally so that we can build a
better economy and deal with the really big
problems that face us, like the climate and
poverty crises.
INFLUENCING THROUGH ACTION
We hope that by doing what we do, we can
influence others to make the case for this kind
of far-reaching, systemic change. During 2009
we were delighted to win the Financial Times
Sustainable Bank of the Year Award, beating 165
institutions from 42 countries to do it - including
some of banking’s biggest names. This recognition
is helpful because it demonstrates that sustainable
banking has emerged from the margins. It
highlights that while it remains relatively small,
it is already part of the mainstream. The
award’s timing was particularly significant. As
the award’s judges said, ‘What Triodos has tried
is something radically different, and it appears
to be working. If this isn’t the year when it’s
been demonstrated that we need a new model,
when is?’ The award is testament to the energy
and commitment of Triodos Bank co-workers
across our European network. The impact we
make is down to their dedication and expertise.
Public recognition for our work, during a time
of financial upheaval, is also an implicit
challenge for others to do things differently. It
shows that relationship, rather than transactional,
banking is not only preferable for a more
sustainable future; it also makes compelling
commercial sense. Sustainability has become a
buzz word that means different things to
different people, and arguably often very little
at all. It’s clear however that the market for
sustainable products and services is growing,
and growing fast. As it expands, so has Triodos
Bank. To support our continuing positive
development we raised more capital in 2009,
closing a depository receipt issue early because
of excessive demand, and raising over eur 100
million. Thousands of people responded to the
issue, in all five of the countries where we
work. These investors are interested in returns
that come from lending money to people and
organisations in the real economy who we
know well; not abstract profits created through
complex and often much riskier financial
instruments.
To have more impact we want to act globally as
well as across Europe, working together with
10 TRIODOS BANK - ANNUAL REPORT 2009