The improved quality and growing size of the loan and investment portfolio are important indicators of the contribution Triodos Bank makes towards a more sustainable economy. All the themes it works in qualify as sustainable: the companies and projects it finances contribute to delivering Triodos Bank’s mission.
Total outstanding loans and funds’ investments by transition theme 2022
Municipalities and other
To make sure that Triodos Bank only finances sustainable enterprises and enterprises transitioning to sustainable approaches, potential borrowers are first assessed on the added value they create in these areas. The commercial feasibility of a prospective loan is only then evaluated, and a decision made about whether it is a responsible banking option. The criteria or guidelines Triodos Bank uses to analyse companies can be viewed at www.triodos.com and www.triodos-im.com for investment management.
Triodos Bank's focus is on transition themes where it has already developed considerable expertise and where it considers more growth, diversification and innovation are possible.
Resources 10% (2021: 10%)
The Resources transition theme consists of: the sustainable property sector, in which we finance new buildings and renovation projects to reach high sustainability standards; the sector nature development and forestry, which is important to remove greenhouse gases from the atmosphere; and retail, production and professional services sectors that contribute to reduced resource waste or stimulate circular production and consumption and circularity-related services.
Society 16% (2021: 16%)
This theme contains loans and funds' investments to businesses and (non-profit) organisations with clear social objectives, such as social housing, community and social-inclusion projects. It also covers the inclusive finance and fair-trade businesses sector.
Well-being 18% (2021: 20%)
The Well-being transition theme covers loans and funds' investments to organisations working in education, child care, retreat centres, religious groups, recreation, cultural centres and organisations, and artists. It also covers the health and elderly care sector.
Residential sustainable mortgages 29% (2021: 24%)
The retail sector of the loan book is primarily comprised of residential sustainable mortgages, including a small amount of other private loans and overdrafts on current accounts.
Although not included under specific transition themes in the chart, the residential mortgage portfolio contributes to Resources (by innovating new forms of mortgages such as the bio-based mortgage), to Energy (by taking energy certificates into account for the interest rate of mortgage products), and to Society (by advocating and enabling co-housing and social housing).
Municipalities 1% (2021: 2%)
Under municipalities we include sustainable loans and funds' investments to local authorities without a specific sector classification and some limited short-term loans to municipalities. These investment-type loans in the public sector are included in the loan portfolio in accordance with regulations related to financial reporting.