ABN AMRO’s Journey Towards Sustainable Development

Madeleine Jacobs, Head of Group

Sustainable Development

TBLI, Frankfurt

November 4, 2005

2

ABN AMRO in brief

Dutch origin, dating back to 1824

Network bank, present in 58 countries

EUR 608 bln in assets, ranking 20th and 11th world-wide and in Europe

Serving wholesale, commercial, consumer, privateand asset management clients

3 large home markets Netherlands, NA and Brazil

3

My money

The mine

Provide my money onlyto clean and fair projects

Wake Up Call

The bank

The pollution

FoE’s Campaign againstAA’s involvement in Freeport

4

Value Creation

LossAvoidance

ValueDestruction

Freeport

APP

Dialog with FOE

Forestry dialog

Mining policyO&G policy

Equator Principles

SD business strategy

Sustainability learning curve

Wake up call

Proactive Dialogue Policies

Business Case

Level playing field

5

The ABN AMRO SD ambition:

“ AA is committed to continuously improve the integration of SD into its working environment and business processes. This will be reinforced through strategic resource allocation and performance management processes”.

Managing Board, December 2003

6

Supporting the Business Strategy

Business Strategy

Emerging Opportunities

Investor Appeal

Asset Protection/Risk

Management

Cost EfficiencyEmployee

Engagement

Brand Attractiveness and Reputation

Client Intimacy / Revenue Growth

7

5 SD Focal area:

1 Being accountable and transparent2 Responsible financial services a. Lending & Investment practices b. Products and Services3 Being a great place to work4 Supporting local communities5 Minimising impact from business operations

8

Putting SD in practice:

Proactive Issue Management Stakeholder dialogue and policy development Transparency and Dilemma reconciliation Engage clients, add value in sustainable advisory Governance: SD driven from Risk Management Drive to set new standards (Equator) Partnerships with clients, NGOs, academic world, government

9

Putting SD in practice: Embed in processes and products

1. Processes: existing procedures, tools, filters, systems

2. Products: microfinance, new SRI funds, carbon strategy Making a tangible contribution to society:

Community investment & volunteering New Foundation focused on Sustainable Livelihoods Good internal housekeeping: energy, paper etc pilots

Touching the hearts & minds of our employees

10

Focus on doing a few things very well Gently pushing the envelope, out of people’s comfort zone Engaging 105.000 staff in a diverse/decentralised organisation Leap of faith: making the business case tangible Capitalising on SD progress in terms of branding, client loyalty Balancing SD progress and effective communication

Challenges that we face

11

How does this impact the Bank?

Integrity as our key compass Better antenna for developments in society Receptivity for dilemmas, room for doubt Transparency on deliberations Aligning personal & business values Mindset for innovation, new opportunities

A more society oriented Bank

12

“It is not the strongest or most intelligent that survive, but the ones that are most responsive to change”

Charles Darwin