Rabobank and the EIB encourage SMEs and midcaps to make sustainable investments

Today, the European Investment Bank (EIB) and Rabobank announced that they are introducing an impact loan to encourage Dutch business owners (SMEs and midcaps) to make sustainable investments. See full press release.

A condition of the loan is that the company must hold one of the 37 selected labels or industry initiatives, among those listed is Aquaculture Stewardship Council (ASC) certification.

The labels / initiatives are selected on the basis of how businesses are monitored to ensure they meet and comply with the scheme’s requirements. The selected schemes set requirements that go further than the statutory requirements with respect to sustainability, in areas such as environmental impact, fair trade and animal welfare.

The first tranche will make an additional EUR 50 million available for loans with a positive social impact. Business owners who demonstrably display corporate social responsibility and wish to make new sustainable investments can apply for an impact loan with an interest discount of up to 1.2% for new loans.

“The investments of the EIB are a tangible and effective contribution to the Dutch economy. It is in the interest of future generations that these investments are sustainable ones. Thanks to this impact loan, extra funds are made available for Dutch entrepreneurs and it’s now up to them to use them to their advantage, as well as to the advantage of man, environment and society,” said EIB Vice President Pim van Ballekom.

Rewarding sustainable behaviour

“A company that invests sustainably, invests in more than only its own future. It also contributes to a world we can all live in, and that benefits people and the environment,” adds Paul Dirken, Director of Businesses at Rabobank.

The cooperative bank already has years of experience in encouraging sustainable development. “With this impact loan, which is a loan at a significant discount, we are the first major Dutch bank to financially reward our business clients for sustainable behaviour. Together with the EIB, we are applying our knowledge and experience to make it even more attractive for Dutch SME and midcap business operators to invest in sustainability.

“Currently, just over 5% of our business clients are pioneers with respect to sustainability. We expect the impact loan to lead more SME and midcap company owners to make the move to sustainable development with good and sustainable plans,” added Dirken.

Criteria

Applications for  an  impact  loan  will  have  to  meet  the  normal  conditions  of  the  EIB  and Rabobank. Businesses with up to 3,000 employees are eligible to apply. The loan is available to SME and midcap companies, as long as they wish to invest in sustainability and hold one of the 37 selected marks. The total investment may not exceed EUR 25 million, while the maximum amount to be borrowed is EUR 2.5 million.

Participating labels

Companies holding one or more of the following are eligible to apply for an impact loan:

ASC,  Barometer  Duurzaam  Terreinbeheer,  Barometer  Duurzame  Bloemist,  Beter  Leven, Blauwe Vlag (KVMK), BOVAG Erkend Duurzaam, BREEAM, Care & Fair, CO2-Prestatieladder, Cradle to Cradle (C2C), Demeter, Duurzaam Repareren, EKO, EKO-Holland, EU Ecolabel, Fair Flowers Fair Plants (FFFP), Fair Wear Foundation (FWF), FSC, Green Award, Green Key, GreenSeat, Keten Duurzaam Rundvlees, Keten Duurzaam Varkensvlees, Lean & Green, Made- By, Max Havelaar, Meer Met Minder (MMM), Metaalunie MVO-Monitor, Milieukeur, Milieuthermometer Zorg, MPS-ABC, MSC, MVO Koploper Netwerk, MVO Prestatieladder, Rainforest Alliance, Travelife Certified, Utz Certified.