Introduction
The Fair Bank Guide – An IntroductionThe Dutch Fair Bank Guide (BankWiser) is a dynamic database developed to benchmark the largest 10 Dutch consumer banks on various social, economical and environmental sectors and issues. It is an overview of the banks’ policies on issues like climate change, human rights, labour rights, arms trade, transparency and sectors like oil/gas, fishery, banking etc. The database is accessible to the general public at no cost. During the project period, the initiators of the Fair Bank Guide will assess the banks’ policies every three months. Second, policies will be compared with case studies and draw conclusions about the extent to which the banks follow their own policies.
The Dutch Fair Bank Guide was formally launched on 22 January 2009. The Fair Bank Guide is an initiative by Oxfam Novib, Amnesty International Netherlands, Dutch labour union FNV and Friends of the Earth Netherlands. From 2010 on the initiative became formally supported by the Dutch Society for the Protection of Animals. From 2012 on IKV Pax Christi became the 6th formal supporter of the Fair Bank Guide.
The research has been done by Profundo. The VBDO (Dutch Association of Investors for Sustainable Development) functions as advisor to the Fair Bank Guide initiative. Banktrack’s December 2007 report ‘Mind the Gap’ served as inspiration for this initiative.
Race to the Top
The aim of the tool is to initiate a ‘race to the top’ between banks on the subject of corporate social responsibility (CSR). Ideally, a self-reinforcing process will develop in which social, environmental and economic standards are raised continuously. The Fair Bank Guide contributes to large banks’ CSR policy and transparency on a wide variety of issues, benefiting a wide audience. It stimulates consumers to critically compare their own bank’s CSR policy with that of other banks and to address their bank regarding the shortcomings in its CSR policy.
Case Studies
In July 2009 we published our first case study (about investments in controversial arms traders). It showed that 6 out of the 12 Dutch banks invest their own or their clients’ money in companies that manufacture controversial weapons, like cluster bombs, and sell arms to rogue states. The case study resulted in a public and media outcry, serious political attention in the Dutch parliament, some critical comments from involved banks and the planning of meetings between the initiators of the Fair Bank Guide and several banks about the conclusions of this case study.
In May 2010 a second case study was published (about sustainable energy in relation to climate change). It showed that most Dutch banks do not invest enough in sustainable energy. For a reduction of global warming with a maximum of 2 degrees, there is a need of twice as much investments in sustainable energy compared with investments in fossil energy. However, at that moment Dutch banks invest 53% of their energy-investments in fossil energy. After two years new research will be done to compare the outcomes.
In September 2010 a third case study was published, on the implementation of labour policies of banks in the garment sector. The study showed that eight of the largest Dutch banks were not able to guarantee the full implementation of labour rights policies in the garment sector.
In February 2011 a fourth case study was published on Human Rights in Practice. It concluded that Dutch banks investing in mining and oil companies which are considered to be connected with human rights violations for many years (Shell, Vedanta Resources and Barrick Gold) pay too little attention to human rights. Most banks do not structurally engage these companies to help reducing these human rights violations.
In July 2011 a fifth case study was published about about investments in farms (pigs). It concluded that the three largest Dutch investors in these companies should include criteria in their credit agreements to improve animal welfare and living conditions of pigs.
In September 2011 the sixth case study was published: about transparency on investments by Dutch banks. The report received wide media coverage. Main conclusions were the fact that the vast majority of banks not even fully complied with GRI standards and in general showed lack of openness about their investments. The only exception formed their assets funds. The good news was that two banks were completely open about their investments and a third bank scored higher then average because this bank showed at least a large degree of openness towards our researchers. During a meeting with banks in October an number of banks mentioned their willingness to increase transparancy in some aspects at least in 2012.
In February 2012 the seventh case study was published. It focussed on investments of banks in land acquisitions and gave numerous suggestions for improvements of banks’ policies. Four banks showed their willingness to improve policies to prevent landgrabbing.
Encouraging Results & Impacts
The launch of the Fair Bank Guide in January 2009 resulted in a great deal of publicity.
In the first two years, the site had already drawn some 200,000 visitors, with visitors sending thousands of messages to banks to request for more sustainable policies & implementation of it. All banks have improved their policies during the first two years. Late 2009, five out of six banks criticized in the first case study have improved their (defense) policies.
All banks stated their intention to co-operate with the Fair Bank Guide.
Political parties in the Dutch parliament have encouraged the Finance Minister to stimulate (state-owned) banks to intensify their CSR policies and implementation, citing the Fair Bank Guide. Several times Dutch MPs asked the government to react on new publications of the Fair Bank Guide.
The publication of the first case study and a media event at the ING head office (July 2009) generated more public interest and publicity, nationally as well as internationally. The publication of several case studies attracted a lot of Dutch media interest, in particular the case studies on controversial arms traders and human rights. The inclusion of the new theme “bonuses” in July 2010 also resulted in a huge turnout in the Dutch media.
On 26 November 2009, the CEO's of all banks benchmarked in the Fair Bank Guide published a common statement "Dutch banks call for clear agreements on sustainable energy " In this statement all banks stress the importance of more investments in sustainable energy, stressed the fact that they have all signed the "Copenhagen Communiqué ", promised to cooperate in a study on sustainable energy of the Fair Bank Guide (to be published early 2010) and called on the Dutch Government to introduce a long-term and clear (legal) system that encourages investments in sustainable energy projects. The same day, we have published a press release welcoming the statement of the 10 banks but also requested the banks to concretize their new commitment to finance more sustainable energy projects.
Three public meetings were organized by the initiators of the Dutch Fair Bank Guide: at the launch of it (January 2009) and at its first and second anniversaries (January 2010 and 2011).
In January 2011 the second anniversary of the Fair Bank Guide was again celebrated with a large public seminar. Main guest speaker was the new Dutch Finance Minister. He fully supported the call for more transparency in the Dutch financial sector, including on social and environmental affairs (ESG). Some conclusions published at the seminar were: all banks have improved their social and environmental policies in the last two years significantly. However, it seemed that some banks slowed down a bit their commitments to further improve their ESG-policies. The initiators of the Fair Bank Guide have criticized these banks about it and have announced an increase in social media activities to encourage banks to further improve their ESG-policies. In two years the Dutch Fair Bank Guide has attracted 201,000 visitors. From January on, two new Dutch banks have been included in the Dutch Fair Bank Guide: NIBC and Delta Lloyd Bank.
A meeting in October 2011 with almost all bank groups benchmarked in the Fair Bank Guide had a positive outcome: the bank representatives promised to increase transparency about their investments according to one of the recommendations made in the report. This means a step forward.
In 2011, assets management was included in the tool.
Early 2012, a “Fair Bank Guide” app was made to increase consumer awareness about banks’ policies on social and environmental issues, and to encourage consumers to contact their own banks about it. It included information on banks’ policies and a game.
The Future
The six initiators have decided to continue to work for the Dutch Fair Bank Guide until 2013 at least. From 2012, we will keep updating the Dutch Fair Bank Guide every six months and will continue to publish three new case studies annually. The organizations hope that the success of this practical tool will inspire partner organizations around the world to develop their own Fair Bank Guides for banks operating in their countries.
Fair Bank Guide in the Media:
There was extensive media coverage in The Netherlands about the launch of the Fair Bank Guide (January 2009) and all three anniversaries (January 2010, 2011, 2012). Several quarter updates also attracted a lot of media attention, particularly in April 2009, October 2009 and July 2010 (when bank policies on “bonuses” was included in the Dutch Fair Bank Guide, at the request of many Fair Bank Guide – users). Furthermore, several case studies attracted good media coverage (particularly the case studies on controversial arms traders and human rights, but also the case studies about investments in sustainable energy, the garment sector, investments in companies linked with human rights abuses, transparancy and land acquisition).
International media:
In July 2009, there was some international media coverage about the case study about controversial arms trade too:
Reuters, July 1, 2009:
Dutch banks still invest in arms companies- report
3 News, Nieuw Zeeland, July 2, 2009:
Dutch banks still investing in arms?
Brazil launches Fair Bank Guide
Brazil is the first country after the Netherlands with a Fair Bank Guide. The launch of the Guia dos Bancos Responsáveis took place in São Paulo on April 2011. Initiator and Oxfam Novib’s partner IDEC is by now also helping others to set up Fair Bank Guides. The Brazilian Fair Bank Guide compares the policies and financing practices of banks and in this manner tries to encourage banks’ corporate social responsibility. GBR is the initiative of the Brazilian consumers’ organization IDEC, the trade union federation in the banking sector, CONTRAF, the allied research institute, the Instituto Observatório Social, and environmental organization Terra Amazonia Brasileira. ‘It’s the first time in Brazil,’ tells Peter Ras, spokesman of the Fair Bank Guide in the Netherlands, ‘that such different sectors in society have co-operated in developing a joint product.’
More Information about the Fair Bank Guide:
Oxfam Novib
Mr. Peter Ras, Policy Advisor CSR
E-mail: eerlijkebankwijzer@oxfamnovib.nl
Mauritskade 9
Postbus 30919
2500 GX Den Haag
The Netherlands
Phone Oxfam Novib: +31 70-3421621
Deze Eerlijke
Bankwijzer is een initiatief van: 
