Maria Luiza Pinto

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Banking on Sustainability
June 21, 2005
Maria Luiza Pinto Education Sustainable
Development Executive Director
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ABN AMRO in the world

• ABN AMRO is an international bank with origins
  going back to 1824, in the Netherlands
• Is the biggest bank in Netherlands and the
  biggest foreigner bank in USA
• Is the 11th biggest bank in Europe and 20th in
  the world (ranked by tier 1 capital)
• Has over 3,000 branches in almost 60 countries
  and territories
• 2nd positon in the Dow Jones Sustainability Index

Data december 2004
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ABN AMRO BU Brazil

• 9,2 million clientes
• 1,109 branches
• 28 thousand employees

• Results (2004)
• US 2,9 billions of Net Equity
• US 22,8 billion total assets
• Net Profit US 458 million
• Operating Income US 704 million 20,6 bigger
  comparing to the same period in 2003

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Our movement
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Waves of the movement
Individual
Organisation
Society
From inside to outside Starting from the top
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Sustainability is a principle that guides our
actions
Universal Suppliers Diversity Eco-efficiency Soc
ial Action Education Sustainability report
Our Core Business Socio-environmental risk
policy Socio-environmental products SRI
funds Microcredit
MANAGEMENT
SOCIAL ACTION
MARKET
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Sustainable Lending

• Evaluation of social and environmental risks in
  the lending process
• Education Training of 1600 Relationship
  Managers (IFC and Friends of the Earth - Brazil)
• Excluded activities
• companies that use child labour
• activities that promote prostitution
• products that contain asbestos
• extraction of virgin forests
• 2 questionnaires companies with a net income
  of over and under
• R 20 million/year approximately 3000 companies
  have completed the questionnaire
• ABN was a signatory to the Equator Principles,
  which is applied for new projects over US 50
  millions

An inclusive approach
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Sustainable Products financing

• Recent partnership with IFC (US 51 million
  credit line) and BNDES
• Portfolio volume
• US 8,95 million for individuals
• US 50,6 million for companies
• 7.558 contracts (individuals)
  May, 2005
• Financing facilities for companies
  environmental and social projects (water
  treatment, renewable energy, efficiency energy),
  CDM (Clean Development Mechanism), cleaner
  production, corporate governance and others.
• Credit for individuals
• Environmental car engine conversion for natural
  gas, solar heaters
• Social vehicles and equipment for people with
  disabilities
• Educational MBAs, Seminars Computers

A constantly evolving process
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Microcredit

• Credit line of small amounts created to foster
  income generation and employment for
  disadvantaged and low-income communities
• 5.550 clients, 8 communities (São Paulo,
  Campinas, Rio Janeiro)
• Average loan of R 1,500.00 (US 558)
• Total Loan R 6,6 million (US 2,27 million)
• 50 individual loans X 50 solidarity groups
  loans
• 48 women - 52 men
• Partnership with ACCIÓN

May, 2005
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Key learning points

• Clients personal and business life is totally
  integrated impacting in the range of the
  products
• Clients financial needs are high, but they have
  low trust in banks and the environment is very
  competitive create other connections with the
  community
• High costs to run mini branches create synergy
  with the AAB branches
• Credit agents from the approval to the final
  repayment of the loan, over business advisory - a
  success model
• To find the right profile
• Deal with high index of negative credit records

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ABN AMRO REAL Academys mission
Create educational experiences that promote the
development of employees and the Organisations
relationship network, contributing to achieve
peoples self satisfaction and the fulfilment of
the mission of the Organisation
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Educate with our way of being

• New educational model
• Humans in their various roles (professional,
  citizen...)
• Responsibility and Leadership
• Values
• Diversity
• Multiple learning forums
• Sustainability should permeate all educational
  actions

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Leadership Development Program
You can only be a better professional by being a
better person.
5 Classroom Modules - Maturity - People
Development - Influence and Mobilization -
Leadership for Sustainability - Reasoning and
Strategic Thought
12 Coaching Sessions Coaching for senior
executives
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Education for Sustainability

• Workshop for sustainable business activities
• Business Management
• Sustainability Workshop
• Case-studies based on our experience

... Harvard Case-study
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Employee Development

• The manager went to the customers house
  right or wrong?
• The model encourages staff to put their whole
  selves into their work, following not only the
  rules, but also their beliefs

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What have we learned?

• To make it work we need to focus
• We have to be willing to change paradigms and
  shift the system
• It is necessary to have a new vision of the
  Human Being
• It is important and rewarding to share dilemmas
  and uncertainties

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What are the next challenges?

• Strengthen the dialogue with clients, staff,
  suppliers and society
• Make from risk to opportunity
• Ongoing education of our staff members
• Share our education and training actions with
  stakeholders
• Measure the impact in different dimensional
  aspects

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Our way of being
succeed, doing the right things, the right way!
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We are the size of our dreams