Good Egg awarded March 2018
Renewed 2019
Renewed 2020
Renewed 2021
Renewed 2022
Renewed 2023
Renewed 2024
About Triodos Bank
Triodos Bank offers banking and investment services. The company is recognised as a pioneer in sustainable, responsible and ethical banking.
Customers’ money is only lent to businesses and organisations bringing about positive social, environmental and cultural change.
Summary of findings
The Good Egg criteria is divided into industry/ customer impact, environmental and social.
Triodos Bank was ranked by Ethical Screening and the Good Egg panellists as having “high positive impact” across every category.
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Read the latest full report here.
Industry/ Customer impact findings
- Upfront and transparent charges
- Lowest minimum balance on a savings account
- Current account designed not to let customers go into unarranged overdrafts
- Promotes “know where your money goes” to all customers
- Campaigns tirelessly on improving transparency and fairness in the banking sector and leads by example
- Details of all borrower companies and investments are made available
- Microfinance available
- Active engagement with all companies in which Triodos is a shareholder
- Minor concern over risks associated with Microfinance and Crowdfunding, as these activities are not covered by a compensation scheme. The risks are well explained on the company website/investment literature.
Environmental findings
- By lending only to sustainable business, Triodos addresses environmental issues in a wide range of areas and industries, including renewable energy, organic food and agriculture, sustainable property
- The bank calculates that energy related projects it financed in 2020 avoided 933 kilotonnes of CO2 emissions.
- In 2020, Triodos finance generated enough green energy to power 4.8 million households worldwide.
- Impact Equities and Bond strategy invests in listed equities and bonds of companies/organisations that materially contribute toward a sustainable society.
- Approach goes beyond conventional environmental, social and governance (ESG) and norms-based exclusions to ensure the portfolio is rooted in solutions.
- Seven ‘Sustainable Transition Themes’, in line with the UN Sustainable Development Goals: prosperous and healthy people, social inclusion and empowerment, sustainable food and agriculture, sustainable mobility and infrastructure, innovation for sustainability, circular economy and renewable resources.
- Additionally, strict negative screening sifts out companies that have a harmful impact on people and planet, such as products and services related to arms, fossil fuels, tobacco, gambling and animal testing.
- Detailed ‘minimum standards’ that all companies must meet, particularly concerning fossil fuels, energy and emissions.
Social findings
In addition to the above;
- The bank works alongside the companies that it lends money to, many of which are community based.
- Sustainable Crowdfunding investments must be committed to delivering positive change
- Triodos Bank UK supports the Triodos Foundation which works both in the UK and internationally. Triodos Foundation supports a variety of local charities by providing affordable event space.
- Crowdfunding opportunities also enable investments in social projects, such as a learning disability charity, and community hydro scheme.
- In 2020, Triodos financed 930 community and social housing projects, providing 59,000 people with accommodation.
- The bank’s crowdfunding investments have also supported a number of organisations, such as Thera Trust which provides support and housing for adults with learning disabilities.
Internal policies
- 100% of energy used by the company is from renewable sources, provided by Good Energy and energy produced by Thrive Renewables sold through Ecotricity.
- All environmental impacts are monitored by the Local Environment Manager (LEM) and report for auditing in Q1 to Q4 to the independent Carbon Neutral team. LEM has to complete a report to the Senior Lead Team on yearly Environment commitment with an Environment impact assessment at a target for end-of year.
In 2020 there was:
- A 23 per cent reduction in electric usage (which is now 100 per cent renewable) and 3 per cent increase in gas (which is bio-gas created by food waste)
- A 59 per cent reduction in waste (58 per cent on recycling materials and 1 per cent on landfill) which gave a carbon saving of 1.9 tonnes
- Pre-Covid all event food was supplied in Veg ware, which was collected by the supplier for composting.
- Reduced travel with use of video conferencing
- Paper used for printing reduced by 56 per cent
- Printing down 68.5 per cent on 2019
- All consumable i.e., tea. coffee, sugar, etc. products are fair trade or organic
- Triodos is working with Travel West (Bristol City Council) on e-bikes loan scheme and e-car charging points outside reception.
- Solar panels and LED lights used
- Lift lobby carpets replaced with a 100 per cent recycled yarn product which is manufactured using 50 per cent less energy – the manufacturer is using 100% green energy
- Chillers replaced to meet the 2030 carbon regulations and improve cooling efficiency using less energy
- 49 per cent of employees are female. Of management positions, 33 per cent are held by women, a relatively high proportion in the finance sector.An International Remuneration Policy is in place, for example including:
- Monitoring and reporting on the ratio between the highest and lowest paid employee (7 in 2019)
- Triodos Bank does not offer bonus or share option schemes to either its Board members or co-workers. Financial incentives are not considered an appropriate way to motivate and reward employees. Additional pay may be given to an individual in retrospect for achievements, termed a “token of appreciation”, or collectively for all coworkers at a fixed (modest) amount.
- Gender pay is monitored.
- The Business Principles for Triodos NV contain a statement on human rights, including support for the Universal Declaration of Human Rights. Labour policies are also detailed in the Business Principles including training, diversity, health & safety, and support for the ILO conventions.
- Employee working conditions and benefits are significantly positive, including pension, healthcare, income protection, a well-being allowance, sabbatical leave possible each 7 years, and arrangements/payments to support sustainable commuting.
Quotes from panellists
Triodos Bank has long been a leading light and a trailblazer in this sector. In many ways, Triodos Bank has been the cornerstone of the ethical banking movement, and it embodies everything that the Good Egg rating system was designed to assess, support, and promote.
The range and breadth of positive social, environmental, and governance issues that Triodos excels in tells its own story. The bank is a frontrunner amongst its peers too, whose values run throughout the organisation and outwards, into its investments and supply chain. Triodos walks the walk.
More about Triodos from Good With Money:
Triodos and Pennine join Good Egg scheme