Being a resilient financial institution is important for all banks and an explicit principle of values-based banking. It forms the bedrock upon which values-based banks can deliver positive impact. An effective approach to risk management is a key element ensuring the long-term resilience of Triodos Bank. The boundaries of this topic include our institution and our clients.

The importance of being a resilient financial institution continued to be prominent in 2021, because of the negative impact on clients and DR holders of the COVID-19 pandemic and the challenges surrounding the capitalisation of Triodos Bank.

Trading in Triodos Bank Depository Receipts has been closed since 5 January 2021 in response to the heightened uncertainty in the economy as a whole, including the financial sector, caused by the pandemic.

Addressing the strategic challenge presented by the suspension was an urgent focus in 2021 and remains a top priority for Triodos Bank. We had intensive engagement with our Depository Receipt holders and other stakeholders on this topic through meetings, personal conversations and webinars. In December, we announced we will pursue a listing on a Multilateral Trading Facility.

In 2021, to further bolster our financial resilience we issued a green bond, which qualifies as a Tier 2 capital instrument. As such the bond provides Triodos Bank with an additional source of capital and the proceeds will be used to fund lending in renewable energy, environmentally sustainable management of living natural resources and land use and green buildings.

Financial resilience is a topic highlighted in many places throughout the annual report. This includes the Impact and financial results, Risk and compliance, and Financial accounts sections.