Triodos Bank’s Executive Board provides a perspective on the wider world it operates in, its impact and activity in 2017 and its prospects for the future.
Activities of the Supervisory Board
Triodos’ strategic focus
The Supervisory Board, in various discussions, encouraged the Executive Board in their efforts to respond to a more challenging external landscape, both strategically and practically while remaining true to Triodos Bank’s essence. This wider environment includes the increasing role of technology, privacy issues that this raises, a continuing low interest environment and stricter regulatory requirements.
Impact, Risk, Return
2017 was marked by managed growth, increased impact and robust financial performance despite a low interest rate environment. The ratio of funds entrusted to loans showed an improvement by the year end and is now in a more healthy balance.
In its discussions with the Executive Board, the Supervisory Board pays particular attention to the continuous improvement of Triodos Bank’s business model and operating model while remaining focussed on Impact, Risk and Return. The Supervisory Board and the Executive Board also discussed how best to make use of digital opportunities.
The Supervisory Board monitors Triodos Bank’s financial health, its financial ratios, its capital position and the impact of stricter regulatory capital requirements.
During 2017, topics discussed at the Supervisory Board’s meetings and contacts with the Executive Board included:
- Strategy: the update of the business plan 2016-2018 with a focus on 2018, developments in different countries and at Triodos Investment Management, the main strategic risks of the business, and a quarterly analysis of Triodos Bank’s overall performance, health and development.
- Finance: Triodos Bank’s economic developments and their financial impact. More specifically, the bank’s capital position, the 2016 financial results, the management letter of the independent external auditor, the 2016 annual report and the Executive Board report and the 2017 half-year report.
- Risk and Audit: the design and effectiveness of the internal risk management framework and control systems, the ‘risk appetite’ and the actual risk profile, the audit findings, the auditor’s reports, quarterly reports and loan reports, the readiness for, and implementation of, new capital and other regulatory requirements.
- Human resource management: senior management development and talent management, organizational changes and the company culture, the annual revision of the international remuneration and nomination policy.
- Business Units: Meetings were held with the management of local branches and Triodos Investment Management by individual Supervisory Board members, together with a representative of the Board of SAAT and the Executive Board. Presentations to the full Supervisory Board were given by local branch management and Triodos Investment Management.
- Regulators: We aim to always follow the advice from regulators.
- Contacts with the Dutch Central Bank: The Chair and the Vice Chair (who is also the Chair of the Audit and Risk Committee) met with the Dutch Central Bank.
- Contact with the Board of SAAT: A Supervisory Board delegation had an informal meeting with a delegation from the Board of SAAT in advance of the Annual General Meeting.