Triodos Bank’s Executive Board provides a perspective on the wider world it operates in, its impact and activity in 2017 and its prospects for the future.
Organisational and Operational developments
As per June 2017 the Management Board of Triodos Investment Management was strengthened with a fourth Managing Director, adding to the Chair of the Management Board, the Managing Director Risk and Finance and the third Managing Director. In October 2017, the position of Managing Director Risk and Finance at Triodos Investment Management became vacant. The vacancy for this position is expected to be filled in the first quarter of 2018.
In the Spring of 2017, Triodos Investment Management announced it would take sustainable investing in listed securities a step further by integrating its sustainable and financial analysis within the investment process. The asset management of its SRI proposition will be brought in-house and its engagement activities intensified to help with the goal to maximize positive change. The asset management team has been built during 2017 in order to take on asset management activities in 2018.
Triodos Investment Management paid attention to several new rules and regulations. An important one of these was MiFID II (Markets in Financial Instruments Directive). Although this regulation is not directly applicable to Triodos Investment Management’s funds, a number of articles will be indirectly applicable. For instance, defining the Target Market and provisions regarding Cost Transparency.
New regulation has been designed to make sure retail investors in the European Economic Area receive clear and fair information before buying retail investment or insurance based products. The new regulation introduces Key Information Documents (KIDs) and a new short form disclosure document to provide this information to retail investors. The fund manager is responsible for the production and regular updates of the KID. In 2017, Triodos Investment Management has developed a number of KIDs for some of the funds, effective as of January 1st, 2018.
Also in 2017, Triodos Investment Management has started a project to identify and analyse Data Protection regulation (GDPR). It will take necessary measures to comply with this set of rules, during the Spring of 2018. In addition, Triodos Investment Management has appointed a data protection officer.
There was also a continuing focus on streamlining Triodos Investment Management’s internal operations during the year, in order to further develop an effective risk management and control framework.