Historically, Rabobank has a strong connection with Dutch agriculture. Based on this connection and its mission and vision, Rabobank, as a financier, is keen to contribute to a key system transition and help to give the sector with attractive long-term prospects.
Historically, Rabobank has a strong connection with Dutch agriculture. Based on this connection and its mission and vision, Rabobank, as a financier, is keen to contribute to a key system transition and help to give the sector with attractive long-term prospects.
Entrepreneurs also assessed on sustainability performance
When it comes to financing, Rabobank assesses entrepreneurs on their creditworthiness, as well as on their sustainability performance. Given the developments and current knowledge in that field, Rabobank’s requirements in this regard are being tightened up. Rabobank expects farmers to actively contribute to making their businesses more sustainable. One requirement is that the bank must have access to customer data that provides insight into the farmer’s level of sustainability and transparency. Rabobank also believes that the collaboration of farmers within chains and between sectors for cross-sector governance agreements is an important development.
Based on available information and information given to it, Rabobank puts the spotlight on the sustainability performance of farmers. This is done based on a standardised sustainability assessment, along with the performance of the bank as a whole, based on the EU, Corporate Sustainability Reporting Directive (CSRD). As far as the agri-food sector is concerned, the bank aligns its assessment with performance indicators used by other organizations in the agri-food chain as closely as possible. This promotes the combining of incentives for sustainability performance. Where the business is located is definitely an element in the assessment of financing, and this aspect will grow importance as we head towards 2040. Sustainability performance affects the terms and conditions set by the financial services sector.
Customised financing to promote the transition
With a financing package of three billion in loans plus interest rate discounts and special conditions such as redemption-free terms or longer maturities, Rabobank’s aim is to assist farmers in the transition to more sustainable operations. There are appropriate financing solutions for all transition paths: extensification, conversion, innovation, relocation or termination. Rabobank is putting extra capacity towards supporting the transition.
Supporting and collaborating with other stakeholders
As a cooperative and socially engaged bank, Rabobank works actively with sector organizations, chain parties and the government to achieve the intended systemic change together with its customers. Rabobank provides knowledge, facilitates dialogue, collaborates with stakeholders and attends consultations where policy shaping is discussed and where it can share its vision as a financier. For instance, Rabobank supports the area-based approach, makes a case for target-based rather than means-based regulations and is committed to forming broad coalitions to facilitate the combining of incentives for sustainability performance.