I am proud that our efforts in the area of sustainability have gained wide recognition. Our position in the Dow Jones Sustainability Indices places us among leaders in the banking industry. Responsible investment researchers Sustainalytics have also recognised us with a score of 88 out of 100, making us the third best performer among the more than 400 international banks reviewed.
Industry Lending Wholesale Banking’s lending growth, particularly in the area of Industry Lending, contributed to more sustainable balance sheets in Challengers & Growth Markets. In 2015, we expanded local expertise in some of our funding-rich countries to support balance sheet integration. In Germany our Wholesale Banking loans increased from EUR 7.5 billion in 2014 to EUR 13.5 billion at year-end 2015 as we continue to grow the franchise and optimise the balance sheet.
Geographical presence and strategic approach ING has a presence in over 40 countries. Though our local businesses vary in terms of their market positions all are guided by our purpose of empowerment and strategy to provide customers with a differentiating customer experience through digital leadership.
Our financial roadmap We have published financial targets for 2017 reflecting our ambitions. These include a Common Equity Tier 1 ratio above 12.5 percent for ING Group, a leverage ratio at around 4 percent, 50-53 percent cost/income ratio and a 10-13 percent return on equity. As also stated in our Ambition 2017 programme, ING is committed to returning capital to shareholders through a sustainable dividend policy.
The results are presented in the matrix in this chapter. While all these items are material for ING, the top right shows the 15 issues with the highest priority for stakeholders and the biggest potential impact on our business.
“Operational excellence and innovation” chapter and Accelerating innovation section in “Retail Banking”chapter.
• Superior customer service was rewarded in Romania (several Romanian Contact Centre Awards) and Turkey (Best Complaint Management).
As of 2016, our commercial banking activities were renamed Wholesale Banking. The new name better reflects the mainly international, large corporate and institutional nature of our business. It clearly positions ING as a global wholesale bank and is more aligned with the consistent client experience we aim for across our markets.
Work-life balance ING is an ambitious company. That can bring challenges for our employees as they seek to combine their personal and professional commitments. We encourage a positive work-life balance. We believe it helps employees to stay engaged and enhances performance. ING’s business units have implemented a range of initiatives to support employee wellbeing and flexible working, including the Energy at ING programme in the Netherlands and FlexING in Turkey.
We have also introduced a new policy to seek continuous improvement for financing the animal husbandry sector, including encouragement of internationally recognised best practices and principles such as the “Five Animal Freedoms”. This includes restrictions on the trade and
A strong capital base ING Bank continues to maintain a strong and highquality capital level, with a fully-loaded Common Equity Tier 1 ratio of 11.6% and a similar phased-in Common Equity Tier 1 ratio, thereby complying with CRR/CRD IV solvency requirements. Dividends from ING Bank to ING Group of EUR 1.0 billion and EUR 1.2 billion, respectively, were paid in May and August 2015.
ING also demonstrated in 2015 the ability to generate capital consistently. This leaves us well positioned to execute further lending capabilities that serve customer needs. All regulatory capital requirements have been met. The strength of the balance sheet provides a firm foundation for growing the business and paying dividends. ING currently has a strong capital position, capable of withstanding market challenges and new regulations. This is a firm foundation for broadening lending opportunities, supporting our clients and helping to grow the economy.
ING Group’s phased-in (transitional) common equity Tier 1 ratio is well in excess of the 10.25% common equity Tier 1 requirement for ING Group in 2016. The impact from countercyclical buffer requirements was insignificant at the start of 2016. This requirement is the sum of (i) 9.5%, being the ECB’s decision on the 2015 Supervisory Review and Evaluation Process (SREP), including the capital conservation buffer, and (ii) 0.75% for the Systemic Risk Buffer (SRB) which has been set separately for Dutch systemic banks by the Dutch Central Bank. The fully-loaded SRB requirement is currently set at 3% for ING Group and phases in over four years, with a final implementation date of 1 January 2019. With a 12.7% Group CET1 ratio as at 31 December 2015, ING is already in compliance with the current fullyloaded requirement of 12.5%.
In line with the more stringent capital requirements of regulators, ING strengthened its capital position in 2015. Our solid financial position has allowed us to resume regular dividend payments to shareholders ahead of schedule. I want to express our gratitude for the ongoing support of our shareholders, and in particular for their support in the years when ING was not able to pay a dividend.
The Supervisory Board received an in-depth update on the status of the bank’s Think Forward strategy implementation in February and August 2015. During the other Supervisory Board meetings, specific elements of the strategy were discussed, ranging from potential future (in)organic growth opportunities to the introduction of innovative, digital solutions for ING’s customers. Specific attention was also paid to the major themes and programmes in the COO and IT domains whose aim it is to introduce a globally standardised and agile way of working supported by a corresponding IT infrastructure and applications environment.
Supervisory Board meetings The Supervisory Board met nine times in 2015. On average, 99 percent of the Supervisory Board members were present at the meetings. This attendance rate illustrates that the members of the Supervisory Board are engaged with ING and are able to devote sufficient time and attention to ING’s affairs. The Executive Board and Management Board Banking were present during each Supervisory Board meeting. For part of the meetings only the Chief Executive Officer was present; this was dependent on the nature of the topics addressed. Each Supervisory Board meeting was preceded by a session with only the Supervisory Board members present. The members of the Supervisory Board also interacted with senior management outside the regular Supervisory Board meetings for discussion and information sharing purposes.
ING Group strives to maintain an open and constructive dialogue with current and potential investors, and with industry analysts. The scope of such bilateral communication may range from single investor queries via email, to more elaborate discussions with analysts or institutional investors that take place via telephone or face-to-face. ING Group’s Investor Relations department is the main point of contact for these communications. Executive Board members or Management Board or divisional management members may also participate in investor meetings. These meetings are not announced in advance, nor can they be followed by webcast or any other means. Information provided during such occasions is limited to what is already in the public shares, the authorisation currently in force stipulates a minimum price of one eurocent and a maximum price equal to the highest stock price on Euronext Amsterdam by NYSE Euronext on the date on which the purchase agreement is concluded or on the preceding day of stock market trading.
Board annually assesses the composition of the Executive Board. In the context of such assessment, ING Group aims to have a gender balance by having at least 30% men and at least 30% women amongst its Executive Board members.
Costs In 2015, the costs of the activities of ING Trust Office amounted to EUR 460,508 (2014 EUR 523,311). An amount of EUR 282,430 (2014 EUR 275,465) is related to the costs of administration of the depository receipts.
In 2015, the board of ING Continuity Foundation (the “Board”) held two meetings, on 16 April and 26 November.
Internal control over financial reporting Management, under the supervision and with the participation of the Company’s Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”), performed an evaluation of the effectiveness of the design and operation of the Company’s disclosure controls and procedures. Based on that evaluation, the Company’s management identified a material weakness in our internal control over financial reporting as further described in the Report of the Executive Board on internal control over financial reporting below, and consequently concluded that our disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) under the U.S. Securities Exchange Act of 1934, as amended, were not effective as of the end of the period covered by this Annual Report. As described in the Report of the Executive Board on internal controls over financial reporting, Management did not identify any other deficiencies that had a material adverse effect on the effectiveness of the Company’s controls and procedures. There have been no significant changes in the Company’s internal controls over financial reporting during the period covered by this Annual Report that has materially affected or is reasonably likely to materially affect, our internal controls over financial reporting.
1 Ralph Hamers was appointed to the Executive Board on 13 May 2013. The figures reflect the loans and advances received before his appointment to the Executive Board.
Remuneration report – continued 2016 Remuneration Executive Board In the below diagrams, the median 2015 total (at target) remuneration is shown for the CEO and other Executive Board positions in the Euro Stoxx 50.
Remuneration policy for all staff As far as possible for a global financial institution of its size, ING aims to take account of all the differences and standards applied within similar financial institutions in the various countries in which it operates. The remuneration policies applicable to all staff are in line with the general principles of the remuneration structure for the Executive Board, taking into account international and local legislation and practices. Remuneration levels are determined taking into consideration a variety of factors including relevant market practices, the regulatory environment and the international context in which ING operates.
European works council 2015 N. (Norbert) Lucas, chairman, Germany J.P. (Jean Pierre) Lambert, deputy-chairman, Belgium C.M. (Mihai) Ailincai, secretary, Romania H. (Herman) van Eesbeek, W. (Walter) van Heetvelde, F. (Franck) Goethals, Belgium O. (Otmar) Haneder, Austria A. (Andrew) Nitov, Bulgaria P. (Petr) Ullmann, Czech Republic M. (Mourad) Benzaaza, France U. (Ulrich) Probst, Germany G. (Géza) Bodor, Hungary C (Claudio) Casazza, S. (Sami) Zambon, Italy A. (Alain) Back, Luxembourg G.J. (Gerard) Veldman, L.F.F. (Leo) Teunissen, L.S.A. (Lea) De Weerd, J. (Jennifer) Wirjosemito, J.B. (Johan) Traets, the Netherlands M. (Mieczyslaw) Bielawski, K. (Krzystov) Burnat, M. (Mariusz) Cieslik, Poland D. (Daniela) Plopsoreanu, Romania M. (Miroslav) Filega, Slovakia M.A. (Miguel) Hernandez Fernandez, N. (Nadia) Belajard Moya, Spain J. (John) Tabares, M.R. (Mark Robert) Brown, United Kingdom
Share of result from associates and joint ventures 7 492 138 150
– amounts due to banks, not payable on demand 5,179 3,353 –10,266
Employee stock option and share plans 3 8 105 116 1 117
ING Group continues to hold warrants for 26 million shares in Voya.
Loans and advances to banks 11,549 11,833 17,497 24,183 29,046 36,016
Recognised fair value gains (losses) in shareholders’ equity (before tax) between the beginning of the year in which the reclassification took place and the reclassification date nil –79
Effect on result (before tax) for the period/year (mainly sales results) n.a n.a n.a –383 n.a n.a n.a
Real estate investments by year of most recent appraisal by independent qualified valuers
Changes in the composition of the group and other changes –7 –31 –7 –51 –14 –82
Fair value measurement The fair value hierarchy of financial assets and liabilities (measured at fair value), which were presented as held for sale as at 31 December 2014, is included below. The fair value hierarchy consists of three levels, depending upon whether fair values were determined based on (unadjusted) quoted prices in active markets (Level 1), valuation techniques supported by observable inputs (Level 2) or valuation techniques that incorporate inputs which are unobservable and which have a more than insignificant impact on the fair value of the instrument (Level 3). Reference is made to Note 40 ‘Fair value of assets and liabilities’ for more details on the fair value hierarchy.
As at 31 December 2015, an amount of EUR 1,201 million (2014: EUR 1,070 million; 2013: EUR 987 million) related to the former Stichting Regio Bank and the former Stichting Vakbondsspaarbank SPN is included.
The Valuation results on assets and liabilities designated as at fair value through profit and loss includes fair value changes on certain issued debt securities. Valuation results on assets and liabilities designated as at fair value through profit and loss were mainly due to changes in the fair value of financial liabilities driven by changes in market conditions and changes in own credit risk as disclosed in Note 19 ‘Financial liabilities at fair value through profit and loss’. Market conditions include in particular credit spread developments.
Net result from disposal of discontinued operations In 2015, Net result from disposal of discontinued operations includes mainly a profit of EUR 323 million on the sale of the last Voya shares in March 2015 to reduce ING Group’s stake in Voya from 18.9% (at 31 December 2014) to zero, a loss of EUR 1,224 million as a result of the further sale and deconsolidation of NN Group at the end of May 2015 and a loss of EUR 15 million on the further divestments of ING Group’s interest in NN Group in September 2015.
Segments prior to classification as discontinued operations NN Group The activities of NN Group were previously included in the segments Netherlands Life, Netherlands Non-Life, Insurance Europe, Japan Life, Investment Management, Other and Japan Closed Block VA before they were classified as discontinued operations and held for sale in 2014. These segments ceased to exist, following the classification of NN Group as discontinued operations, as all activities previously included in these segments are now discontinued operations.
ING Groep N.V. is required to withhold tax of 15% on dividends paid.
Treasury bills and other eligible bills included in available-for-sale investments 135 220 85
Wholesale Banking. Previously, Bank Treasury was allocated to Retail and/or Wholesale Banking on a country-by-country basis.
– Total investment and other income 128 194 –30 259 1,058 –352 1,257
– Additions to loan loss provision 654 166 77 98 176 175 1,347
– Additions to loan loss provision 947 146 67 185 125 123 1,594
Effect of curtailment or settlement In 2014, EUR –19,079 million was recognised in Effect of curtailment or settlement related to the Dutch defined benefit plan settlement as a result of the agreement that made the ING Pension Fund financially independent from ING.
As part of the agreement, ING Bank and NN Group are released from all financial obligations arising out of the Dutch defined benefit plan. Accordingly, this plan is no longer accounted for as a defined benefit plan and consequently, it has been removed from ING’s balance sheet in 2014. In 2014, the removal of the net pension asset related to the Dutch defined benefit pension fund from ING’s balance sheet of EUR 770 million (EUR 578 million after tax), the payment to the Dutch ING Pension Fund of EUR 549 million (EUR 412 million after tax), the compensation for lower employee contribution of EUR 80 million (EUR 60 million after tax) and other impacts resulted in a charge of EUR 1,413 million (EUR 1,059 million after tax). EUR 871 million (EUR 653 million after tax) of this charge was allocated to ING Bank and EUR 542 million (EUR 406 million after tax) was allocated to NN Group.
Financial liabilities designated as at fair value through profit and loss –81 –81
– FX 306 258 Present value techniques Inflation rate (%) 0% 2%
– Equity 264 221 Option pricing model Equity volatility (%) 0% 107%
– Amounts due from banks 7,806 6,967 1 Excludes assets classified as held for sale (2015: NN Group; 2014: mainly NN Group with remainder Voya and ING Vysya)
Bank. To ensure independence from the business and other risk departments, the department head reports directly to the CRO; and
Commonly seen as norms and traditions of behaviour of individuals and of groups within an organisation, risk culture determines the way in which employees identify, understand, discuss, and act on the risks the organisation is confronted with and the risks it takes. This is a continuous long-term commitment and journey. Therefore, ING Bank initiated different programmes and manuals have been issued within the organisation to support the embedding of risk culture. Risk awareness is to be alert on potential threats that can occur in day-to-day business, which can be specific to the sector, the region or the clients ING Bank is doing business with are.
Step 1. Risk assessment & scenario selection ING Bank formally determines its main risks on an annual basis based on the current economic situation, political and regulatory developments and developments in portfolios. Senior management, business representatives and risk specialists are involved in this process. Based on the risk assessment, relevant scenarios to be evaluated in the remainder of the year are selected. The results of the risk assessment and scenario selection are discussed and endorsed in the Stress Testing Steering Committee (STSC). All stakeholders are represented in the STSC, such as representatives of the different Corporate Risk departments, Capital Management, Finance and the Global Research organisation. The STSC submits the results of the risk assessment and scenario selection to the BF&RC for endorsement.
Bank Recovery and Resolution Directive Another important element of the regulatory reforms is the Bank Recovery and Resolution Directive (BRRD) that was adopted by the European Parliament in 2014. The BRRD provides rules on insolvency proceedings in the case of failing banks with the aim of safeguarding financial stability and preventing public funding of losses by making use of amongst other the bail-in tool. To comply with the new rules, banks across the EU need to have recovery plans in place and cooperate with resolution authorities to determine the preferred resolution strategy. To ensure the effectiveness of the bail-in tool, the BRRD requires banks to meet a Minimum Requirement for own funds and Eligible Liabilities (MREL). In addition, ING Bank being a global systemically important bank (G-SIB) needs to comply with the Total Loss Absorption Capacity (TLAC) proposal that was published by the Financial Stability Board (FSB) in November 2015. For further details regarding MREL and TLAC we refer to the Capital Management section.
Further, ING Bank has set up an all-encompassing Recovery Plan to ensure the bank’s readiness and decisiveness to tackle financial crises on its own strength. This plan is effective since 2012 and updated on an annual basis to make sure that it remains fit for purpose.
There are three types of modelling which form the foundation of these PD, EAD and LGD models used throughout the Bank: • Statistical models are created where a large set of default or detailed loss data is available. They are characterised by a sufficient number of data points that facilitate meaningful statistical estimation of the model parameters. The model parameters are estimated with statistical techniques based on the data set available; • Expert models are based on the knowledge and experience of experts from both risk management and front office staff and literature from rating agencies, supervisors and academics. These models are especially appropriate for ‘Low Default Portfolios’, where limited historical defaults exist; and
• MtM plus model based add-on approach: In this approach, the PS risk is calculated as the sum between the MtM of the trade and the model-based add-on. The MtM fluctuates through the life of the contract. The model-based add-on is product-specific, and takes into account remaining time to maturity, profiling per time-buckets etc. add-ons are updated with a frequency that takes into account the major market changes. This methodology is used for pre-deal exposure assessment of all ING Bank financial markets products and for post-deal risk calculations for financial markets portfolios for which computational efforts and costs associated with implementation of Scenario Simulation approach are not justifiable; and
Supranational Organisations; • Institutions include all Commercial Banks, non-Bank Financial Institutions, such as Funds and Fund Managers, and Insurance
Risk rating buckets per line of business Risk rating buckets are defined based upon the quality of the exposures in terms of creditworthiness, varying from investment grade to Non-performing loan expressed in S&P, Moody’s and Fitch equivalents.
The risk rating bucket distribution across business lines remained largely stable over the year. Increased regulatory reserve deposit at the De Nederlandsche Bank is the driver behind the increase observed in the proportion of AAA rated assets. An improvement in the ratings for residential mortgages in Retail Banking Benelux due to improved arrears management and more stricter screening rules led to an increased share for 8-10 (BBB) rated category. Similar improvement was also witnessed in the mortgage portfolios in Germany and Australia.
The definition of forbearance is: ‘Forbearance occurs when the client is considered to be unable to meet its financial commitments under the contract due to financial difficulties, and based on these difficulties ING decides to grant concessions towards the client by either loan modification or refinancing’. Modification is defined as changing the terms and conditions of the contract to enable the client to service the debt. Refinancing relates to putting in place a new loan contract to ensure the total or partial repayment of an existing loan contract, of which the debtor is unable to comply with. Examples of forbearance measures are: postponement and/or reduction of loan principal and/or interest payments, extended payment terms, debt consolidations and deferral of foreclosures.
In absence of the EC approval, the Dutch National Regulator (DNB) has issued guidance on the level and reporting dates of the LCR as of October 2015. DNB has defined minimum requirements for the LCR for ING Consolidated and ING Bank N.V. Solo scope at 100%. The DNB definition includes the netting of retail and wholesale cash pools, also referred to as the National LCR (NLCR). Per December 2015, ING Bank complies with these regulatory requirements.
Objectives ING Group Capital Management (Capital Management) is responsible for the adequate capitalisation of ING Group and ING Bank entities at all times in order to manage the risk associated with ING’s business activities. This involves not only the management, planning and allocation of capital within ING Group and ING Bank, but also the necessary capital market transactions, term (capital) funding and risk management transactions. ING takes an integrated approach to assess the adequacy of its capital position in relation to its risk profile and its operating environment. This implies taking into account the interests of its various stakeholders. Capital Management takes into account the metrics and requirements of regulators, rating agencies and internal risk based metrics such as the Risk Appetite Framework.
− Deductions of significant investments in financial institutions –1,389 –14,103 –558 –4,631
In 2015, Disposal of group companies includes the further divestment of ING’s stake in NN Group, resulting in loss of control and deconsolidation of NN Group in May 2015. As at 31 December 2015, the remaining interest in NN Group is 25.75% and is included in ‘Investments in associates and joint ventures’. Reference is made to Note 2 ‘Investments in associates and joint ventures’.
Because we operate in highly competitive markets, including our home market, we may not be able to increase or maintain our market share, which may have an adverse effect on our results of operations. There is substantial competition in the Netherlands and the other countries in which we do business for the types of commercial banking, retail banking, investment banking and other products and services we provide. Customer loyalty and retention can be influenced by a number of factors, including brand recognition, reputation, relative service levels, the prices and attributes of products and services, scope of distribution, credit ratings and actions taken by competitors. A decline in our competitive position as to one or more of these factors could adversely impact our ability to maintain or further increase our market share, which would adversely affect our results of operations. Such competition is most pronounced in our more mature markets of the Netherlands, Belgium, the rest of Western Europe and Australia. In recent years, however, competition in emerging markets, such as Latin America, Asia and Central and Eastern Europe, has also increased as large financial services companies from more developed countries have sought to establish themselves in markets which are perceived to offer higher growth potential, and as local institutions have become more sophisticated and competitive and proceeded to form alliances, mergers or strategic relationships with our competitors. The Netherlands is our largest market. Our main competitors in the banking sector in the Netherlands are ABN AMRO Bank and Rabobank. Competition could also increase due to new entrants in the markets that may have new operating models that are not burdened by potentially costly legacy operations. Increasing competition in these or any of our other markets may significantly impact our results if we are unable to match the products and services offered by our competitors. Future economic turmoil may accelerate additional consolidation activity. Over time, certain sectors of the financial services industry have become more concentrated, as institutions involved in a broad range of financial services have been acquired by or merged into other firms or have declared bankruptcy. These developments could result in our competitors gaining greater access to capital and liquidity, expanding their ranges of products and services, or gaining geographic diversity. We may experience pricing pressures as a result of these factors in the event that some of our competitors seek to increase market share by reducing prices. In addition, under the Restructuring Plan, we were required to agree to certain restrictions imposed by the EC, including with respect to our price leadership in EU banking markets and our ability to make acquisitions of financial institutions. These developments could have resulted in our competitors having a better competitive position vis-à-vis ING.
Since the financial crisis, ING has adapted its remuneration policies to the new national and international standards. For ING Group’s Executive Board members no increase in base salary took place in 2014. This resulted in that, as of 2009, the remuneration package of ING Group’s Executive Board members remained on the same level and is significantly below the median of our EURO Stoxx 50 benchmark, which is made up of similar European financial and non-financial institutions.
Operational risk Advanced measurement approach 3,451 43,137 2,700 33,749 Total Regulatory Capital 25,691 321,135 24,052 300,647 1 The floor is 80% of Basel I required Regulatory Capital.
Tier 2 capital Opening amount 3,291 9,474 Change in T 2 instruments –801 –801 CRR/CRD IV phased-in adjustments (excl. significant investments in FIs) 184 Change in deductions significant investments in Financial Institutions 5,239 Change minority interest –1 –1 Closing amount 7,912 8,672
Credit Risk Basis and scope of credit risk presentation In the credit risk section of Pillar III, data included in tables are related to ING Bank’s core credit risk activities in the areas of: Lending (both on- and off-balance); Securities Financing, Derivatives (collectively Counterparty Credit Risk); Money Market activities, and Investment Risks. Equity Risk in the banking book is excluded and covered in the Market Risk section of the Annual Accounts.
The ING Bank portfolio is characterised by significant amounts of secured lending especially in the key areas of residential and commercial mortgages, structured finance and leasing. Amount of collateral often has a significant impact on provisioning and LGD which directly affects risk density. The cover values are pre-haircut but indexed values and exclude any cost of liquidation. Covers can either be valid for all limits, sub-limits or a particular outstanding of a borrower, the latter being the most common. The guarantees for the same portfolio relate to mortgages covered by governmental insurers under the Nationale Hypotheek Garantie (NHG) in the Netherlands.
ING Bank’s Procurement Policy defines sustainable procurement as taking into account the social and environmental aspects of the products we procure as well as the attitude of the supplier towards sustainability. We have implemented, globally, a supplier qualification (SQ) process that helps us determine the levels of social, environmental and financial risks associated with a supplier. Once suppliers pass the SQ process, they are qualified to become ING suppliers and the ING Procurement Sustainability Standards (IPSS) apply. Compliance is then monitored via our partnership with EcoVadis Sustainability Monitoring. For more information on our Sustainable Procurement Program, please see our Environmental Approach. In 2015, we made the following commitments: • We will have global supplier coverage of the IPSS of 95% by 2020. • We will procure 100% green electricity for all ING buildings worldwide by 2020. • We will pilot 16 circular purchasing projects. • We will engage 800 suppliers for sustainability performance assessments in 2015.
Our sustainability performance steadily increased over the years. Doing so, we value the input of NGOs, which we take into account (as well as that of other stakeholders) when making decisions and reassessing or formulating ESR policies. This year we issued a revised defence policy, a revised coal policy, a revised ship breaking policy and an animal husbandry policy. More information about our stance on various issues is shared on our webpage Our Stance: Society/Sustainability/Our-Stance.htm .
In 2015, the world energy market remained dominated by fossil fuels, a fact represented in our portfolio as well. In order to obtain insight into our response to climate change, we would therefore suggest looking beyond this single fact. Prior to COP21, we called on the global community to come to a strong climate agreement, including a price on carbon, public disclosure of CO2- emissions, increased energy efficiency measures and an end to fossil fuel subsidies. We plan to take action ourselves too, increasing our lending portfolio to renewables and decreasing our thermal coal portfolio. As such we announced our intention to no longer finance new coal fired power plants or new thermal coal mines. Our elaborate response can be found on our webpage Our Stance: Society/Sustainability/Our-Stance.htm
Variance-covariance A model to calculate value at risk, assuming that changes in risk factors are normally distributed jointly and that the change in portfolio value is linearly dependent on all risk factor changes.