Rabobank continues with sustainability discount

Dairy farmers who want to qualify for the discount must have a sustainability score 'A' (based on the Biodiversity Monitor) and financing of more than €1 million. Rabobank aims to also make the discount possible for other sectors and agricultural entrepreneurs with financing of less than €1 million. 

Food & Agri Sustainability Theme Manager, Jeen Nijboer, is happy with the success of the pilot: "Customers are responding positively and I am proud that so many dairy farmers are participating. And perhaps even more importantly: sustainability is increasingly part of conversations with customers. Sustainability is not only good for the world, but also helps entrepreneurs to perform better financially in the long term. In the short term, however, it does require investments. With this interest discount, Rabobank is giving entrepreneurs extra support to make sustainability possible."

Sustainability matrix fed via Joindata
Customers who qualify for sustainability score 'A', for example, generate green/sustainable energy, opt for grazing or engage in nature and landscape management. From the summer period, Rabobank will further digitize the sustainability matrix. By connecting to data from the Kringloopwijzer, the bank follows the market standard and the sustainability category can be determined more easily. It will therefore be possible to share data with the bank via Joindata. The interest discount is then granted automatically.

The discount applies to farmers with the highest sustainability score and financing above €1 million. Dairy farmers receive the discount in the event of an interest rate review, refinancing or new financing. "The honest story is that we cannot achieve this with this discount alone. That is why it is also possible for customers to stack discounts, for example with an Impact Loan or Green Loan. And it is of course good if other organizations, companies and governments also give discounts to the frontrunners. This is how sustainability must really pay off."

Also other sectors
The aim is to also provide customers in other agricultural sectors with a sustainability score 'A' with a more favorable rate in the future. For customers with smaller financing, there are discount products for specific sustainability initiatives, such as installing solar panels and/or switching to organic. Work is also being done to make an interest discount possible during interest rate revisions and refinancing. This group is already eligible for an Impact Loan for new financing if they work through a certain concept, such as 'On the way to planet proof' for dairy farming and arable farming or 'MPS-A+' for horticulture.