Tjeerd Krumpelman of ABN AMRO presented on the bank's journey towards creating long-term value through integrated thinking and reporting. ABN AMRO has improved its reporting over time, moving from separate sustainability reports to an integrated annual review that covers financial and non-financial performance. This integrated approach has led to better decision-making across the bank and allowed non-financial metrics to be used to steer strategic decisions. Going forward, ABN AMRO aims to further develop targeted stakeholder communication, measure long-term value creation, and refine its materiality assessment and reporting process.

1. CREATING LONG-TERM VALUE
THROUGH INTEGRATED THINKING
AND REPORTING
TJEERD KRUMPELMAN, CORPORATE STRATEGY & SUSTAINABILITY
29 MARCH, 2018

2. AGENDA
OF THIS
PRESENTATION
- Introduction
- Our journey towards creating long-term value
- Our approach to Integrated Reporting
- Results and next steps

3. ABN AMRO AT A GLANCE

4. ABN AMRO’S STRATEGY AND FOCUS AREAS

5. OUR JOURNEY
TOWARDS CREATING
LONG-TERM VALUE

6. “To prosper over time, every company must
not only deliver financial performance,
but also show how it makes a positive
contribution to society. Companies must
benefit all of their stakeholders…”
THIS IS WHAT ‘THE WORLD’ IS EXPECTING FROM US…
LARRY FINK, CHAIRMAN AND CHIEF EXECUTIVE OFFICER

7. THIS IS WHAT ‘THE WORLD’ IS EXPECTING FROM US…
“We believe that companies are better able
to deliver long-term value to shareholders
when they consider stakeholder concerns…”

8. THIS IS WHAT ‘THE WORLD’ IS EXPECTING FROM US…
Stakeholder value creation
Short term Medium term Long term
To create
shareholder
value

9. WHERE
TO START?
Long-term
value creation
Integrated
Thinking
Integrated
Reporting

10. Financial value
€ 1,400
€ 1,200
€ 1,000
€ 800
€ 600
€ 400
€ 200
€ 0
- € 200
- € 400
WHAT KIND
OF VALUE
CAN WE
CREATE?

11. BUT THERE ARE
MORE VALUES
FOR INSTANCE...

12. Human capital

13. Social
relationship capital

14. Intellectual capital

15. FOR WHOM
DO WE WANT
TO CREATE
VALUE?
Society at large Employees
Clients Investors
ABN AMRO

16. ON WHAT DO
WE CREATE
VALUE?

17. DRIVING FORCESINPUT
MEDIUM-TERM STRATEGIC PRIORITIES
Bring e
xpertise
Innovate
grow
Enhance the cli
entexperience
Social and
Relationship
Financial
Digital and
Technological
Human and
Intellectual
LONG
-TERM STRATEGIC FOUND
ATION
Sustainable
growth
Moderate
risk
Client-
driven
Invest in
the future
Deliv
er fast
OUTPUT OUTCOMES
Provide our clients with sustainable products
A simplified and agile organisation with engaged
employees, and a responsible remuneration
policy. Developing the expertise of our staff
Our role as a stimulating factor to the economy.
to a healthy return, and solid capital buffers.
Social and
Relationship
Digital and
Technological
Natural
Human and
Intellectual
Financial
Through fast and innovative propositions,
OUR VALUE CREATION MODEL

18. REPORTING
WAS OUR
STARTING
POINT
Long-term
value creation
Integrated
Thinking
Integrated
Reporting

19. “INTEGRATED REPORTING
IS A PROCESS FOUNDED
ON INTEGRATED THINKING.”
IIRC.org

20. “THE PRIMARY PURPOSE OF AN INTEGRATED
REPORT IS TO EXPLAIN TO PROVIDERS OF
FINANCIAL CAPITAL HOW AN ORGANIZATION
CREATES VALUE OVER TIME.”
IIRC.org

21. THE REPORTING JOURNEY OF ABN AMRO

22. THE REPORTING
JOURNEY AT
ABN AMRO
2011: Sustainability flyer

23. 2012: Sustainability
Report (GRI)
THE REPORTING
JOURNEY AT
ABN AMRO

24. 2013: Sustainability
Report (GRI) with
limited assurance
on data
THE REPORTING
JOURNEY AT
ABN AMRO

25. THE REPORTING
JOURNEY AT
ABN AMRO
2014: Sustainability
Report (GRI G4),
first materiality
assessment

26. 2015
WAS A TURNING YEAR

27. THE REPORTING
JOURNEY AT
ABN AMRO
2015: First Integrated
Report (IR and
GRI G4), based on
2014 materiality and
with assurance on
material metrics.
First value creation
model.

28. THE REPORTING
JOURNEY AT
ABN AMRO
2015: Introduction of
targeted stakeholder
communication
(website / newsletter)

29. THE REPORTING
JOURNEY AT
ABN AMRO
2016: Integrated Report,
assurance on new
materiality matrix
and text. Better
website, more
attention to
connectivity and
value creation.

30. THE REPORTING
JOURNEY AT
ABN AMRO
2016: Human Rights report
(UNGP RF), separate
report, first financial
institution

31. THE REPORTING
JOURNEY AT
ABN AMRO
2016: Integrated Annual
Report received
award for ‘most
innovative report’
in the Transparency
Benchmark study.

32. THE REPORTING
JOURNEY AT
ABN AMRO
2017: Core More
approach, limited
assurance of entire
Integrated Annual
Review, based on
IIRC Framework
First company
worldwide

33. 2017: CORE MORE APPROACH
Integrated
Annual Review
Annual Report Pillar III Report SDG Report Human Rights
Update
Limited assurance based
on IR Framework!
Quarterly
Newsletter
And more...

34. RATIONALE BEHIND CORE MORE APPROACH
Increased demand for clear corporate story
Different target groups
New regulations
Interest for
non-financial
information
More detailed
and granular
disclosures
required
New communication possibilities

35. OUR REPORTS INTEGRATED ANNUAL REVIEW 2017
Readership:
Intended readers of this report are investors, clients,
employees and society at large. It will be of special
interest to providers of financial capital (investors)
Frameworks used:
International Integrated Reporting Framework (IIRC)
Assurance:
EY has performed a limited assurance
engagement on this report

36. OUR REPORTS ANNUAL REPORT GROUP AND BANK
Readership:
Intended readers of this report are primarily regulators
and providers of financial capital (investors)
Frameworks used:
- International Financial Reporting Standards (IFRS)
- Dutch Civil Code Title 9, Book 2
- Capital requirements regulations
(Basel III, CRD IV, CRR, EBA)
- Financial supervision act
- Corporate Governance Code
- Dutch Banking Code
Assurance:
EY has audited the Annual Financial
Statements, including certain
disclosures in the Risk, Funding
Capital Report, and has expressed
an unqualified audit opinion

37. OUR REPORTS PILLAR III REPORT
Readership:
Intended readers of this report are primarily regulators
and providers of financial capital (investors)
Frameworks used:
Capital requirements regulation (CRR, EBA)
Assurance:
The figures presented in this document
have not been audited or reviewed
by our external auditor

38. OUR REPORTS SUSTAINABILITY DISCLOSURES
Readership:
Intended readers of this report are employees, clients,
investors and society at large
Frameworks used:
Not applicable
Assurance:
The figures presented on this website
have not been audited or reviewed
by our external auditor

39. ASSURANCE
FRONT TO
BACK COVER,
BASED ON IIRC
FRAMEWORK

40. RESULTS NEXT STEPS

41. Long-term
value creation
Integrated
Thinking
Integrated
Reporting
THE RESULTS
OF INTEGRATED
REPORTING

42. INTERNAL
Management
reporting
Risk
reporting
Ability to steer non-financials,
evidence based.
Non-financials can be used
as pre financials
Strategic Risk Assessment
aligned and more thorough
Alignment of management-
(internal), external-, and risk
reporting
THE RESULTS
OF INTEGRATED
THINKING
Integrated
reporting

43. Bank-wide Materiality
Community started in
May 2017
20 material topics integrated
in Strategic Risk Assessment
Pre-financial information
increasingly used for internal
decision making
Ability to steer
non-financials,
evidence based.

44. INTEGRATED
THINKING AND
INTEGRATED
REPORTING
BRINGS BETTER
DECISION-MAKING
THAT ULTIMATELY
LEADS TO
LONG-TERM
VALUE CREATION
Long-term
value creation
Integrated
Thinking
Integrated
Reporting
Better
decision-making

45. AN EXAMPLE... TIKKIE, PAYMENTS VIA WHATSAPP
• Linked to material topic ‘co-creation and innovation’
• Creates value for our clients
• Available to all possible users – benefits society
• Leads to innovation in philanthropic sector

46. RESPONSIBLE INVESTMENTS,
THE NORM FOR OUR CLIENTS
• Linked to material topic ‘ESG/ESE in financing
and investments’
• Reduces clients’ investment risks in long term
• Reduce negative impact on society
(human rights, climate)
• Impact reports improves awareness clients
AN EXAMPLE...

47. NEXT STEPS

48. MEASURING
LONG-TERM
VALUE
CREATION

49. NEXT STEPS • Improved integrated decision-making
• SDG reporting
• Refine targeted stakeholder communication:
online first, continuous reporting
• Next step in assurance
• Improve process of materiality reporting
• Further professionalize measuring IPL
Long-term
value creation
Integrated
Thinking
Integrated
Reporting
Better
decision-making

50. QUESTIONS?

51. THANK YOU
TJEERD KRUMPELMAN
HEAD OF BUSINESS ADVISORY, REPORTING STAKEHOLDER MANAGEMENT
CORPORATE STRATEGY SUSTAINABILITY
T_KRUMPELMAN
TJEERD.KRUMPELMAN@NL.ABNAMRO.COM