Activities of the Supervisory Board
The Triodos Essence and strategy development
In 2015, the Supervisory Board contributed to the development of the Triodos 2025 strategy process and its translation into the 2016-2018 business plan. The Supervisory Board sees that the issues that are important to the bank’s stakeholders are reflected in Triodos Bank’s strategic approach. The Supervisory Board specifically discussed the Essence of Triodos Bank to ensure full alignment on the values and the role they play in the business.
Impact, Risk, Return
2015 was marked by managed growth, increased impact and robust financial performance. However, the ratio of funds entrusted to loans continued to be an issue during the year. The Supervisory Board considers this to present a challenge both from a financial and a mission perspective and welcomed the steps the bank is taking to improve the balance.
Because of changing capital requirements, the Supervisory Board monitors the financial health of Triodos Bank, its financial ratios, its capital position and the impact of stricter regulatory capital requirements. In 2015, an internal project to make an important step-up in governance and risk management was formally closed. Triodos Bank is a midsize bank that is able to comply with the new regulations and well-established for further growth.
During 2015, topics discussed at the Supervisory Board’s meetings and contacts with the Executive Board included:
- Strategy: the Triodos 2025 process and the business plan 2016-2018, developments in different countries and at Triodos Investment Management, the main strategic risks of the business, and a quarterly analysis of Triodos Bank’s overall performance and health.
- Finance: Triodos Bank’s financial and economic developments and their possible impact. More specifically, the bank’s capital position, the financial results 2014, the management letter, the 2014 annual report and the Executive Board report and the half-year report.
- Risk and Audit: the design and effectiveness of the internal risk management framework and control systems, the ‘risk appetite’ and the actual risk profile, the audit findings, the auditor’s reports, quarterly reports and loan reports, the readiness for, and implementation of, new capital and other regulatory requirements.
- Human resource management: senior management development and talent management, organisational changes and the company culture, the annual revision of the international remuneration and nomination policy.
- Internal organisation: the roles and responsibilities of the Supervisory Board, the Board of SAAT and the Executive Board in relation to each other, and an update of internal rules for the Supervisory Board (including a revised procedure on other positions of Supervisory Board members).
- Business Units: Meetings were held with the management of local branches and Triodos Investment Management by individual Supervisory Board members, together with a representative of the Board of SAAT and the Executive Board. Presentations were given by local branch management and Triodos Investment Management. The Supervisory Board closely followed developments in the branches in Spain, Belgium and the United Kingdom, particularly due to changes in senior management, and Germany because the branch has not yet reached break-even. The Supervisory Board was not only timely informed about changes in senior management but also fully endorsed the decisions of the Executive Board.
- Contacts with the Dutch Central Bank: The Chair, the Vice Chair and the Chair of the Audit & Risk Committee met twice with the Dutch Central Bank. More frequent contact with the regulator is the result of Triodos Bank’s growing balance sheet and scope of activities.
- Contact with the Board of SAAT: A Supervisory Board delegation had an informal meeting with a delegation from the Board of SAAT in advance of the General Meeting.