The Supervisory Board supervises and reviews the activities and the decisions of the Executive Board, the functioning of Triodos Bank’s operations, and is engaged at an early stage in formulating the strategy for realising Triodos Bank’s mission. In addition, the Supervisory Board provides advice and guidance to the Executive Board. Its supervision is based upon reports on business, finance, risk and other aspects, and on presentations, conversations and visits. These are scheduled in such a manner, that all substantive areas of Triodos Bank are covered within a two-year time frame.
The context for Triodos Bank is changing
In the view of the Supervisory Board there are important external developments that will have an impact on Triodos Bank:
- Sustainability and positive impact continue to become more mainstream in the financial sector, resulting in growing markets with more opportunities and competition
- Mid-term economic uncertainty persists, with low Eurozone interest rates expected for the time being
- Political polarity creates localised uncertainty although overall unity within Europe prevails
- Financial regulations remains challenging for a mid-sized bank
- The accelerating rate of digitalisation in financial services combined with new technology and growth data-driven business models are expected to challenge the banking sector
- The United Kingdom’s decision to leave the European Union will have political and economic consequences for businesses and citizens but also for financial institutions.
The Supervisory Board monitored how the Executive Board of the bank responds to these significant challenges, whilst continuing to be an effective, integrated values-based bank that builds on its strengths and opportunities in the market.
During 2018 the Supervisory Board monitored Triodos Bank’s strategic focus within the third year of its current three-year business plan and in anticipation of the new three-year business plan 2019-2021. The Supervisory Board discussed the 2019-2021 business plan which has been drafted to meet the challenges of the rapidly changing external landscape and market conditions – the effects of a low interest environment, the increasing competition and Brexit mentioned above.