1. Ethical Finance and Triodos
Charles Middleton
Managing Director
Triodos UK

2. Agenda
• Context
• An overview of Triodos Bank
• A bit about our history / ethical banking
• What we do and how we do it
• Our services
• Microfinace

3. What is the role of a bank?
• Promote the more conscious use of money
• Credit and savings!
• Help to build sustainable businesses
• Establish long term relationships
• Provide a fair return to all stakeholders
• Help to provide solutions for even the most
challenging situations
• Be a responsible member of the community

4. “The healthy social life is found,
When in the mirror of each human soul,
The whole community finds it‘s reflection
And when in the community,
The strength of each one is living.”

5. Context
• Financial mayhem
• Ethical consumption
• SRI
• Banking

7. Connecting savers with
borrowers
All of our lending is to projects that have
an overt positive impact; eg
• renewable energy
• organic food and farming
• social housing
• fair trade
• social enterprise

8. A brief history of ethics in
finance

9. Ethics in finance
• 19th
Century religious investors – Quakers / Methodists
• 1960’s green movement – Earth from space
• 1971 PAX US fund - avoided investments linked to
Vietnam war
• early 1980’s – international campaign against Apartheid
in South Africa including boycotts
• 1980’s trans-boundary industrial environmental
disasters – Chernobyl & Exxon Valdez

10. A brief history of Triodos

11. 1980
Opening
Triodos
Netherlands
1990
First green
fund
in Europe
2008
Launch of Triodos
Sustainable Trade
Fund
2009
Opening Triodos
Germany2007
Launch of Triodos Values
Pioneer Fund
1994
Launch Stichting
Triodos-Doen and
Stichting Hivos-
Triodos.
1997
Launch Triodos Added
Value Fund
1998
Triodos Green
Fund.
2002
The Triodos Fair
Share Fund is
launched
2004
Sustainable Real
Estate Fund
2006
Opening Triodos
Headquarters in
Netherlands
1993
Opening Triodos
Belgium
2006
Triodos Culture Fund
starts operating
1995
Opening
Triodos UK
2004
Opening Triodos
Spain

12. Brunel House - Bristol

13. Our Mission Our Aims
• Promote quality of life
and human dignity
• use money more
consciously in ways that
benefit people and the
environment, and
promote sustainable
development
• offer customers
financial products and
high quality service
• to be a sustainable
service provider and
create a broad
customer base
• to be a product
innovator at the
forefront of new
opportunities
• to be an opinion leader
– to stimulate public
debate.

14. What does this really mean?
• Open book
• Doing business with the real economy
• Long term view
• Genuine engagement with all
stakeholders

15. We only lend to projects
and enterprises which
create social and
environmental value.
Our loan book -
Inspiring Change is
Published annually and
lists all the organisations
Triodos lends to
Transparency

16. Know where your money goes
Online interactive tool allowing
anyone to search through our
loan book by keyword, location or
sector
Regularly updated with new
lending
Helps customers pinpoint where
their savings are going making
them more connected to their
money and their community

17. Food for thought
Satish Kumar

18. Co-worker visits
to borrowing
customers
Elizabeth Brown at
The Better
Food Company

19. Green Money Bus Tour

20. Customer engagement - Annual Meeting

21. Annual Meeting

22. How we are doing

23. About us
• Winners of the 2010 Queen’s Award
for Enterprise for our pioneering
approach to finance
• 2009 Financial Times award:
‘Sustainable Bank of the Year’

24. Headline figures
• €4.9bn funds under management
(increase of €1.1bn on 2008)
• 242,000 account holders (27% increase
on 2008)
• €1.6bn (25% increase on 2008) in lending
to over 14,000 sustainable projects
• €1.6bn Investment funds (31% increase
on 2008).
As at 31 Dec 2009

25. Group lending 2004 – 2011

26. Quality loans
• Very low provision for ‘doubtful debt’
• historically very low level of provisions due to:
– quality lending (no sub prime!)
– asset backed in vast majority of cases
– loan to value rate usually 75% or less
– know and understand the industries
– carry out robust due diligence checks

27. Assurance to our customers
• BIS ratio of 16.3%
• savers are covered under the Dutch
Deposit Guarantee Scheme for
personal deposits up to €100,000
• we are authorised by the DNB and
regulated by the FSA for the conduct of
UK business.

28. Personal banking
• Deposits directly
support lending to
ethical organisations
• Saver / Online Saver
• Cash ISA / Online Cash ISA
• Fixed Regular Saver
• 2, 3 and 5 year Fixed Rate
Bonds
• Charity Saver
• Young Saver

29. Business banking
• Full banking service, including loans and
overdrafts where appropriate
• Online capability
• Dedicated relationship managers who
specialise in specific industries or sectors
• Loans reviewed on financial and ethical
merits.

30. Investment banking
• Provide investment opportunities directly into ethical
companies and sectors
• no involvement in derivatives, hedge funds,
structured products
• Recent offering includes:
– Triodos Renewables PLC
– EIS Green Fund Issue II
– Microfinance Fund
– Social Enterprise Fund (closed June 2010)
– Ethical Property CompanyMicrofinance Investing

31. Microfinance investing
• Pioneers in microfinance - investing since
1994
• four microfinance funds with different
risk/return profiles
• 9 dedicated staff with 45 years experience
• €140 million assets under management
(as at 30 June 2008), spread over 80
microfinance institutions (MFIs) in 40
countries
• active shareholder in 18 prominent MFIs.

33. Example: Development
investee
ACLEDA Bank in
Cambodia

34. What is the role of a bank?
• Promote the more conscious use of money
• Credit and savings!
• Help to build sustainable businesses
• Establish long term relationships
• Provide a fair return to all stakeholders
• Help to provide solutions for even the most
challenging situations
• Be a responsible member of the community

35. Useful sources
• EIRiS
www.yourethicalmoney.org
• UK Sustainable Investment and
Finance Association (UKSIF)
www.uksif.org

36. Triodos Bank NV, incorporated under the laws of The Netherlands
with limited liability registered in England and Wales BR3012.
Authorised by the Dutch Central Bank (DNB) and regulated by the
Financial Services Authority (FSA) for the conduct of UK business.
Charles Middleton
Managing Director
Triodos Bank UK
01179809778
charles.middleton@triodos.co.uk
www.triodos.co.uk
Triodos Bank NV, Brunel House,
11, The Promenade, Bristol BS8 3NN