ABN AMRO bank is one of the largest banks in the Netherlands, and it has recently started with reporting on their value creation to society.
The Impact Institute* supported ABN AMRO to measure the full societal impact of their mortgage services, their investments in the cocoa chain, and the bank as a whole, by analyzing their Integrated Profit & Loss account. The IP&L attributes a financial value to non-financial effects, such as carbon emissions, a sense of community, and well-being. The IP&L recognizes the six capitals as defined by the International Integrated Reporting Council (IIRC).
For instance in the first sub-project, on mortgage provision, we show that ABN AMRO’s service contributes significantly to financial, manufactured, and social capital creation. The main negative impacts are on financial capital (mainly by contributing to subsidies) and on natural capital. One of the ways in which ABN AMRO addresses the natural capital cost is through Green Bond focusing on sustainable housing.
Benefits to the client
These projects produced a first indication of key value drivers, risks, opportunities, and actions that could improve ABN AMRO’s impact on society, thereby improving its understanding of the scope and complexity of their impact on society.
* The customer was working with the Impact Institute under its former name, True Price