I joined Triodos Bank in 2015 after several years of reflection on the role of finance in our society. In the aftermath of the 2008 financial crisis, I observed with puzzlement the negative perception of the financial sector by society. Gradually, I began to realise how, albeit unconsciously at first, I was fuelling as a finance professional the growing societal challenges through the choices I made regarding which projects would receive financing and which ones would not.
It was around that time that I encountered Triodos Bank. By working at Triodos Bank, I could apply my efforts and skills to maximize my positive impact (while minimizing my negative impact) by being much more conscious of the choices we make daily as a financial institution. This helped me to reconnect on a deeper level with the financial sector and its potential to add value to society.
I am inspired by the famous concept of seven-generation stewardship. The notion advocates that human activities, including businesses, should serve the wellbeing of generations as far as the seventh into the future. It underscores the importance of including future generations in our endeavours.
There are numerous ways to accomplish this objective, like improving the diversity among employees and broadening the membership of governance bodies to encompass a diverse and inclusive range of individuals. Another strategy entails establishing consultative processes targeting specific stakeholders. Most importantly, decisions should consistently and consciously prioritize the wellbeing of future generations.
At Triodos Bank, our mission is first to finance positive change. We prioritise projects that unequivocally enhance the quality of life for all individuals. We also recognise that the financial sector bears a significant responsibility for the daily financing decisions made, thus emphasising our commitment to contribute to making the entire sector more sustainable. In other words, we both ‘finance change and change finance’.
Consequently, over the past decades, we have spearheaded numerous initiatives aimed at advancing this objective. For instance, we played a pivotal role as a founding member of the Global Alliance for Banking on Values and the Partnership for Carbon Accounting Financials. Additionally, in Belgium, we were a founding member of Solifin and have actively supported the creation of IFB. We wholeheartedly endorse IFB’s ambition to substantially increase the proportion of impact investing within the overall investment landscape.
I have witnessed a significant change in attitudes towards impact finance in recent years. There is now widespread acceptance that impact finance is not inherently less profitable. However, it remains a reality that not all the value generated by investments can be quantified in monetary terms alone. Therefore, I firmly believe that we would all gain from incorporating both the non-financial and financial value created into our decision-making processes.
This can be accomplished by establishing clarity regarding the activities or sectors that we choose not to finance. Alternatively, we can explicitly integrate the assessment of the non-financial aspects of projects into the approval process. It demands greater stewardship over the entire value chain, extending beyond the confines of our individual businesses.
This can be achieved by being clear about the activities or sectors that we do not want to finance. Or by explicitly including the assessment of the non-financial perspective of a projects in the approval process. It requires more stewardship of what happens throughout the value chain, and not only within the strict boundaries of our own businesses.
