ABN AMRO Bank N : Progress towards implementing the Principles for Responsible Banking 2022

Reporting on ABN AMRO's progress towards implementing the Principles for Responsible Banking - Self-Assessment 2022

In 2019, ABN AMRO signed the UN Principles for Responsible Banking, together with 129 other international banks. The signatories, representing one-third of the total assets of all banks worldwide, agreed that they will align their business strategies with the UN Sustainable Development Goals and with the Paris Climate Agreement. In this publication, ABN AMRO reports on its progress towards implementing the Principles for Responsible Banking for the third time, using the self-assessment template provided by the UNEP FI.

This third self-assessment was published in May 2022 and reports on our progress from the date of signing until publication date.

Principle 1: Alignment

We will align our business strategy to be consistent with and contribute to individuals' needs and society's goals, as expressed in the Sustainable Development Goals, the Paris Climate Agreement and relevant national and regional frameworks.

Reporting and Self-Assessment Requirements

1.1 Describe (high-level) your bank's business model, including the main customer segments served, types of products and services provided, the main sectors and types of activities, and where relevant the technologies financed across the main geographies in which your bank has operations or provides products and services.

High-level summary of bank's response (limited assurance required for responses to highlighted items)

ABN AMRO is one of the leading banks in the Netherlands. We provide banking services to retail, private and business clients. We have nearly 20,000 employees. We serve clients where we have scale in the Netherlands and Northwest Europe, providing a range of products and services including loans, mortgages, payments, financial advice and asset management.

Reference(s)/Link(s) to bank's full response/ relevant information

f 2021 Integrated Annual Report, Our Bank, p. 11-14

1.2 Describe how your bank has aligned and/or is planning to align its strategy to be consistent with and contribute to society's goals, as expressed in the Sustainable Development Goals (SDGs), the Paris Climate Agreement, and relevant national and regional frameworks.

Our purpose - Banking for better, for generations to come - guides us through change, is the basis for how we shape and deliver on our strategy, and encourages high perfor-mance and engagement from our employees. Our strategy has three strategic pillars: customer experience, sustainabili-ty and future-proof bank. These are our guiding principles in acting on our purpose. Sustainability has been a key element of our strategy since 2018, and is core to our purpose. Our goal is to help clients transition to more sustainable business models. In doing so, we are focused on the wider sustaina-bility shift: our efforts are designed to help mitigate climate change, accelerate circular business practices and create positive social impact. Across the Netherlands and North-west Europe, we are working with clients to align our activities with the 2015 Paris Climate Agreement.

Strategy f 2021 Integrated Annual Report, our three strategic pillars, p. 32

SDGs: f 2021 Integrated Annual Report, Sustainable

Development Goals, p. 42, 43

Climate action: f 2021 Integrated Annual Report, Sustainability, p. 50,

Sustainability Risk p. 165

Reporting and Self-Assessment Requirements

High-level summary of bank's response

As part of this, we are looking to bring our portfolios into line with at least a +1.5°C scenario and to support the transition to a net zero economy by 2050. We also strive to lead by example, reducing our carbon emissions, strengthening our approach to human rights, increasing our positive social impact and also improving gender diversity - particularly among those at the 'subtop' immediately below the most senior management levels.

Reference(s)

Principle 2: Impact and Target Setting

We will continuously increase our positive impacts while reducing the negative impacts on, and managing the risks to, people and environment resulting from our activities, products and services. To this end, we will set and publish targets where we can have the most significant impacts.

Reporting and Self-Assessment Requirements

2.1 Impact Analysis:

Show that your bank has identified the areas in which it has its most significant (potential) positive and negative impact through an impact analysis that fulfills the following elements:

• a) Scope: The bank's core business areas, products/ services across the main geographies that the bank operates in have been as described under 1.1. have been considered in the scope of the analysis.

• b) Scale of Exposure: In identifying its areas of most significant impact the bank has considered where its core business/its major activities lie in terms of industries, technologies and geographies.

• c) Context & Relevance: Your bank has taken into account the most relevant challenges and priorities related to sustainable development in the countries/regions in which it operates.

• d) Scale and intensity/salience of impact: In identifying its areas of most significant impact, the bank has considered the scale and intensity/salience of the (potential) social, economic and environmental impacts resulting from the bank's activities and provision of products and services.

(your bank should have engaged with relevant stakeholders to help inform your analysis under elements c) and d))

High-level summary of bank's response

We have published an Impact Report since 2018. To put together the latest 2021 Impact Report, we used the Impact Institute's IP&L Assessment methodology. This methodology allows us to quantify our value creation, and gives us a tool to manage the bank according to the impact we have on our stakeholders. Our impact may be positive or negative - it may be financial in nature (through the dividends we pay investors, for example), or non-financial (through increased job satisfaction or the benefits of home ownership for our mortgage clients). The IP&L Assessment captures material impacts - there are 57 in total - and monetises them into euro equivalent amounts. In March 2022, we published our fourth Impact Report, including a comparison between the 2020 and 2021 results. Our assessment scope covers both direct impacts and impacts to which ABN AMRO contributes only indirectly. In total, the assessment covers 95% of all the bank's activities in terms of internal impacts and 80% in terms of external impacts.

We have highlighted the impact through our mortgages portfolio, as this constitutes a large part of our business. When an ABN AMRO client receives a mortgage it enables them to buy a house. This value is captured in the client

Reference(s)

• f 2021 Impact Report, Readers' guide to our results, p. 5-6, Mortgages, p. 13-14, Results, p.24-30

• f 2020 Value- Creating Topics

• f 2020 Salient Human Rights Issues

Reporting and Self-Assessment Requirements

High-level summary of bank's response

Reference(s)

Show that building on this analysis, the bank has f Identified and disclosed its areas of most significant

(potential) positive and negative impact f Identified strategic business opportunities in relation to the increase of positive impacts / reduction of negative impacts

value of housing impact. In return for this they pay interest, payments by clients, which is a negative impact for clients. These two major impacts balance each other out in the 2021 assessment.

Other impact analyses:

Value-Creating Topics (ESG Materiality assessment)

We carry out a regular assessment of our operating environment. This allows us to identify our most important social, economic, financial and environmental issues. These issues - or value-creating topics - are where we believe ABN AMRO can create most value for its stakeholders. This assessment was conducted in 2020, followed by a pulse check in 2021. In 2022, a full assessment will take place again.

Salience analysis 2020

In 2020, ABN AMRO conducted an analysis to identify the bank's salient human rights issues, aligned with our Enterprise Risk Management. Our salient issues should be understood in the broadest sense. Every sector and every client may face different salient human rights risks. Effective management of our salient issues depends on the successful identification of human rights risks. In our efforts to be as concrete and objective as we possibly can, we have put in place very comprehensive policies that we require our corporate clients to adhere to. In 2021, a pulse check will be conducted to update the salient issues where needed.