Maria Luiza Pinto Education & Sustainable Development Executive Director

1. Banking on Sustainability June 21, 2005 Maria Luiza Pinto Education & Sustainable Development Executive Director

2. ABN AMRO in the world • ABN AMRO is an international bank with origins going back to 1824, in the Netherlands • Is the biggest bank in Netherlands and the biggest foreigner bank in USA • Is the 11th biggest bank in Europe and 20th in the world (ranked by tier 1 capital) • Has over 3,000 branches in almost 60 countries and territories • 2nd positon in the Dow Jones Sustainability Index Data december 2004

3. ABN AMRO BU Brazil • 9,2 million clientes • 1,109 branches • 28 thousand employees • Results (2004) • US$ 2,9 billions of Net Equity • US$ 22,8 billion total assets • Net Profit US$ 458 million • Operating Income US$ 704 million = 20,6% bigger comparing to the same period in 2003

4. Our movement

5. Waves of the movement Individual Organisation Society From inside to outside Starting from the top

6. Sustainability is a principle that guides our actions Universal Suppliers Diversity Eco-efficiency Social Action Education Sustainability report Our Core Business Socio-environmental risk policy Socio-environmental products SRI funds Microcredit MANAGEMENT SOCIAL ACTION MARKET

7. Sustainable Lending • Evaluation of social and environmental risks in the lending process • Education & Training of 1600 Relationship Managers (IFC and Friends of the Earth - Brazil) • Excluded activities: • companies that use child labour • activities that promote prostitution • products that contain asbestos • extraction of virgin forests • 2 questionnaires – companies with a net income of over and under • R$ 20 million/year – approximately 3000 companies have completed the questionnaire • ABN was a signatory to the Equator Principles, which is applied for new projects over US$ 50 millions An inclusive approach

8. Sustainable Products “financing” • Recent partnership with IFC (US$ 51 million credit line) and BNDES • Portfolio volume • US$ 8,95 million for individuals • US$ 50,6 million for companies • 7.558 contracts (individuals) May, 2005 • Financing facilities for companies: environmental and social projects (water treatment, renewable energy, efficiency energy), CDM (Clean Development Mechanism), cleaner production, corporate governance and others. • Credit for individuals: • Environmental: car engine conversion for natural gas, solar heaters • Social: vehicles and equipment for people with disabilities • Educational: MBAs, Seminars & Computers A constantly evolving process

9. Microcredit • Credit line of small amounts created to foster income generation and employment for disadvantaged and low-income communities • 5.550 clients, 8 communities (São Paulo, Campinas, Rio Janeiro) • Average loan of R$ 1,500.00 (US$ 558) • Total Loan: R$ 6,6 million (US$ 2,27 million) • 50% individual loans X 50% solidarity groups loans • 48% women - 52% men • Partnership with ACCIÓN May, 2005

10. Key learning points • Clients personal and business life is totally integrated – impacting in the range of the products • Clients financial needs are high, but they have low trust in banks and the environment is very competitive: create other connections with the community • High costs to run mini branches: create synergy with the AAB branches • Credit agents: from the approval to the final repayment of the loan, over business advisory - a success model • To find the right profile • Deal with high index of negative credit records

11. ABN AMRO REAL Academy’s mission “Create educational experiences that promote the development of employees and the Organisation’s relationship network, contributing to achieve people’s self satisfaction and the fulfilment of the mission of the Organisation”

12. Educate with our way of being • New educational model • Humans in their various roles (professional, citizen...) • Responsibility and Leadership • Values • Diversity • Multiple learning forums • Sustainability should permeate all educational actions

13. Leadership Development Program “You can only be a better professional by being a better person.” 5 Classroom Modules - Maturity - People Development - Influence and Mobilization - Leadership for Sustainability - Reasoning and Strategic Thought 12 Coaching Sessions Coaching for senior executives

14. Education for Sustainability • Workshop for sustainable business activities • Business Management • Sustainability Workshop • Case-studies based on our experience ... Harvard Case-study

15. Employee Development • The manager went to the customer’s house: right or wrong? • The model encourages staff to put their whole selves into their work, following not only the rules, but also their beliefs

16. What have we learned? • To make it work we need to focus • We have to be willing to change paradigms and shift the system • It is necessary to have a new vision of the Human Being • It is important and rewarding to share dilemmas and uncertainties

17. What are the next challenges? • Strengthen the dialogue with clients, staff, suppliers and society • Make from “risk” to “opportunity” • Ongoing education of our staff members • Share our education and training actions with stakeholders • Measure the impact in different dimensional aspects

18. Our way of being … succeed, doing the right things, the right way!

19. "Nós somos do tamanho dos nossos sonhos" "Nós somos do tamanho dos nossos sonhos" “We are the size of our dreams”