Redefine, revalue and redesign
The corona crisis demonstrates a fundamental lack of resilience: in our ecological system, our social system and economic system. According to Triodos Bank, we need to redefine what matters most; revalue the way we live, cooperate and communicate; and redesign our economy.
Head of investment analysis and economics at Triodos Investment Management Hans Stegeman, who co-authored the report with Triodos Bank Chief Economist Kees Vendrik, said: “Right now is the moment to discuss the system that we want to create, and what needs to improve. It is not that we think this is easy, or even that people will suddenly change. But now, trillions of dollars are used to rescue the old economy, including companies that add to carbon emissions, pollution and social harm. We think that is not what we should do. Instead, we should be investing those trillions in an economy that is fit for the future: one that is more resilient, more sustainable and more inclusive. Now is the time for a transition.”
Kees Vendrik added: “Instead of economic growth, the central values upon which government policy rests and business investment decisions are judged should be people, planet and prosperity. Economic growth must make way for wellbeing, risk and return metrics should be enriched with impact and companies should report on it.
"We also need to revalue how governments and markets interact. Public policies can make a difference. That is true in this crisis and will be for any transition towards a more sustainable and inclusive economy. Lastly, we have to redesign our economic system and make it more resilient, with higher financial buffers, diverse sourcing and more local and circular production chains.”
A broad and concrete agenda
Triodos Bank proposes a broad agenda with concrete measures by governments, businesses and communities.
Triodos Bank argues that private capital will become more and more important as fuel for the recovery. Public funds have been used extensively to cover the first blow of the crisis. Building a resilient, inclusive society will ultimately depend to a larger extent on private capital.
It matters a lot how money will be allocated, preferably via more sustainable equity and gift money. We argue now all finance should be focused on the green and just transition: it’s important all financial institutions increase their efforts in this area.
The role of Triodos Bank
Since 1980, Triodos Bank has been in business to help create a society that protects and promotes the quality of life of all its members, and that has human dignity at its core. For Triodos Bank the current crisis and the transition to a resilient and inclusive society mean it will target its capital and instruments even more precisely in favour of those that are leading the transitions to a more sustainable and inclusive economy. Triodos Bank has already published two vision documents on food and agriculture and energy and climate with a specific agenda for those topics.
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Notes to editor
About Triodos Bank
Founded in 1980, Triodos Bank has become a frontrunner in sustainable banking globally. As an independent bank that promotes responsible and transparent banking, it does not see any conflict between a focus on people and the planet and a good financial return. Instead it believes that they reinforce each other in the long-term.
Triodos Bank has banking activities in the Netherlands, Belgium, the UK, Spain, Germany and France as well as Investment Management activities based in the Netherlands but active globally. Triodos Bank co-founded the Global Alliance for Banking on Values (GABV), a network of 54 sustainable banks. Together these banks want to grow sustainable banking and its impact on the real economy substantially.
Triodos Bank UK Ltd is a wholly owned subsidiary of Triodos Bank NV. Registered Office: Deanery Road, Bristol, BS1 5AS. Registered in England and Wales Company No. 11379025. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under registration number 817008. VAT reg no 793493383.