We assisted Rabobank in defining its Road to Paris by aligning its portfolio with pathways to become net zero by 2050 and integrating this throughout the bank
Rabobank, one of the largest Dutch banks and originally a cooperative agricultural financier, experienced strong stakeholder pressure to take responsibility for the environmental impact of its lending operations and to align its portfolio with the Paris climate goals. As part of its efforts to become a more sustainable bank, Rabobank committed to reducing its financed emissions to net zero by 2050. We worked with the sustainability department to navigate its so-called Road to Paris and helped disclose the current climate impact of its portfolio in an Impact Report.
Because net zero commitments require a steep reduction of financed emissions across most of Rabobank’s’ climate-material sectors, the integration of these in the bank’s strategy and processes required a top-down approach. We worked closely with a dedicated team to design the implementation process, prioritise sectors in scope for GHG accounting, identify appropriate methodologies and climate pathways, and develop sectoral transition plans. The first step was to develop a baseline by taking a snapshot of the financed emissions and emissions intensity of the relevant sectors. Moreover, for key sectors, we engaged with internal stakeholders (such as sector representatives) to develop credible business plans to finance the transition, translating climate pathways to business operations.
These efforts mark the first steps in Rabobank’s Road to Paris and will help to engage with its clients to mitigate emissions where this is most needed. While the full integration and operationalisation of net zero goals is fraught with difficulties, a well-built strategy allows Rabobank to maximise its impact.