Annual Report ASN Bank 2006

ASN BANkANNuAl report for 2006

T h e E c o n o m i c , E n v i r o n m e n t a l a n d S o c i a l P e r f o r m a n c e o f A S N B a n k

Contents

A S N B a n k - A n n u a l R e p o r t f o r 2 0 0 6

Foreword 1Accounting for this report 2Report of the Supervisory Board 4Report of the Management Board 5

1 ASNBankfortheworldoftomorrow 8 Savings at ASN Bank 9 Investments at ASN Bank 9 ASN Bank and credit facilities 9 Organisational structure 11 Key figures 12

2 Governance,commitmentsandinvolvement 13

ASN Bank researches sustainability 13 ASN Foundation 14 Stakeholders 17 How we communicate with our customers 18

3 Managementandperformanceindicators 20

Economic performance 20 ASN Bank and the environment 21 Social performance 25 Employment 25 Industrial relations 26 Health and safety 26 ASN Bank and human rights 28 Sustainable investments 31 ASN Bank is involved in society 33 Product responsibility 34

4 Financial 37 Accounts for 2006 37 Notes to the accounts for 2006 39 Notes to the balance sheet 39 Notes to the profit and loss account 42

Appendices 45 Appendix I – Special Investment Criteria 45 Appendix II – Breakdown of investments 50 Appendix III – GRI Guidelines (G3) 56 Appendix IV – KlimaatNeutraal Certificate 60

Particulars 61

Foreword

ASN Bank believes that profit may never be achieved at the expense of human rights, social justice or our climate. For 47 years now ASN Bank has devoted itself to promoting social sustainability not only by supporting worthy causes or demonstrating our involvement in community issues but first and foremost by utilising our products and services for this purpose.

You have before you ASN Bank’s comprehensive sus-tainability report, by means of which we are providing you with information about our policy, strategy and achievements in relation to finance, the environment and social performance, and in which we give account for the progress that we have made.

The fact that ASN Bank not only allows itself to be gui-ded by the best possible financial returns but also prefers to invest in tomorrow’s world, is welcomed by an ever widening circle of people. In the past year we have again managed to secure the loyalty of a large group of new customers. This success is reflected in a sharp increase in the assets we manage, which enables us to support sustainable projects and organisations that satisfy our sustainability criteria, and to continue to do so. This solid growth also enables us to enter into more joint ventures with community organisations, through which we seek to continue to demonstrate our involvement in social developments involving sustainability.

Our services are greatly appreciated by our customers and our staff has again shown the utmost dedication in the past year, not only to ensure that the level of our services remains high but also to extend and optimise them.

It is with a great deal of confidence that we look towards a bright future in which we expect to maintain growth and, as such, to have more funds available for the world of tomorrow.

ASN Bank Management Board

E.P. Goudswaard (General Manager)J.E. Jansen (Director)


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Accountingforthisreport(G3:1.1)

The ASN Bank wishes to be a business which promotes the sustainability of our society. This is expressed in the bank’s mission, policy and its execution. This report is designed to account for this. For this reason it is of a comprehensive nature, that is to say, it reports on our financial performance and on social and environmental performance. All of the legal requirements governing financial reporting apply to the financial part of the report. The remainder of this report has been produced in accordance with the G3 guide-lines of the Global Reporting Initiative (GRI). The GRI sets out the requirements which a sustainability report needs to comply with and formulates criteria for this purpose.

It is through this sustainability report that we are accounting for our actions in the 2006 financial year (G3: 3.1) and for those of our operations pertaining to our office, the direct suppliers to the latter, and our investments (G3: 3.6). Sustainability reports are published annually (G3: 3.3) and each covers a period equivalent to the preceding calendar year. Our previous report dealt with the 2005 financial year and was published in June 2006 (G3: 3.2).

G3guidelinesThe contents of this report are based on the G3 guidelines issued by the Global Reporting Initiative (GRI – G3: 3.5 and 3.8). ASN Bank has considered materiality and the information required by its stakeholders for the purposes of determining its contents. This report has the self declared Level A Application Level (G3: 3.13).The contents are not presented in precisely the same order as that maintained by the GRI. You will find a comprehensive G3 index (G3: 3.12) in Appendix III.

StrategyandkeyimpactsA description of key impacts, risks and opportunities constitutes an essential part of this report. With the aid of information about our strategy and so-called key impacts we intend to provide an overview of the relationship we have with sustainable development as an organisation.

DirectandindirectachievementsBoth our financial performance and achievements in relation to social performance and the environment are dealt with in a comprehensive sustainability report. A bank is responsible for two types of achievements: direct ones such as those relating to its office structure and indirect ones which refer to the impact of our investment policy, for example. A bank’s indi-rect achievements are more important by far, especially those pertaining to the environment and human rights. Unfortunately, indirect achievements are still difficult to gauge. Although it is possible to describe efforts in terms of process, it is still difficult to do this in quantita-tive terms. In 2007 ASN Bank intends to investigate whether it will be possible to do this in relation to specific subjects in the future (G3: 3.7).

Protocols


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The following protocols (G3: 3.9) are specially used to calculate the overall carbon dioxide emissions of the direct impacts in the case of office organisations:

- CO2 transport emissions – CO2 emissions from business travel and CO2 emissions from employee commuting (WBCSD);

- CO2 heating emissions – CO2 emissions from fuel use in facilities (WBCSD);- CO2 electricity emissions – indirect CO2 emissions from purchased electricity

(WBCSD).Changes


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Changes have occurred since the previous sustainability report (G3: 3.11). These changes are explained below (G3: 3.10).

GRIguidelines:G3The introduction of the G3 guidelines represents an important change since the 2005 report, which was based on the GRI’s 2002 guidelines. The financial services sector supplements have also been used. This refers especially to the financial services sector supplement on environmental performance. ASN Bank has also used this as the basis for its reporting on its social performance, because it is more appropriate to our approach as GRI’s financial servi-ces sector supplement on social performance, which is currently being revised.

ObjectivesIn 2006 it was decided to define objectives for all of these key performance indicators as well. 2006 serves as the reference year for this purpose.

Auditor’sreportBecause ASN Bank is part of SNS Bank NV, its financial information is included in the latter’s consolidated annual accounts. KPMG Accountants has issued an auditor’s report for these annual accounts.

If you have any questions in relation to this report, you may contact our Customer Service Department on 0800 0380 free of charge between 8:30 am and 5 pm on Mondays to Fri-days. It is also possible to e-mail us at [email protected]. Alternatively, you may write to ASN Bank, Antwoordnummer 1188, 2501 The Hague, The Netherlands. A postage stamp is not required in the Netherlands (G3: 3.4).

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ReportoftheSupervisoryBoard

TothegeneralmeetingofshareholdersofAlgemeneSpaarbankvoorNederland,ASNBankN.V.

Provisional recommendation of the Supervisory Board

We are presenting you with the company’s annual accounts for 2006, which have been prepared by the Management Board, along with the latter’s report.

We recommend that you approve these annual accounts, which entails that:

1. the total profit of EUR 6,775,788.93 achieved in 2006 be added to shareholders equity;2. the members of the Management Board be discharged from liability in relation to the perfor-

mance of their managerial duties and those of the Supervisory Board with regard to their exercise of supervision in the past financial year.

The Supervisory Board met five times during 2006. When doing so it discussed, amongst other things, the bank’s policy, the annual accounts and report, and budget, developments affecting the assets entrusted to us, our investment institutions, and our policy on investments and marketing.

The Board’s membership was as follows during the 2006 financial year:

M.W.J. Hinssen, Chair;C.H. van den Bos RA, Deputy Chair;B.A.G. Jansssen, Deputy Chair;M. Menkveld;H.K. Kroeze RA.

The Board would also like to express its deep appreciation and thanks for the manner in which the Management Board and the bank’s staff performed their duties in 2006.

The Hague, 21 August 2007On behalf of the Supervisory BoardM. Hinssen, Chair


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ReportoftheManagementBoard(G3:1.2)

The success we have achieved this year can also to a large extent be attributed to the consolidation of our position as a sustainable, honest and transparent bank, sound product development and the use of new distribution channels.

In view of the fact that ASN Bank is part of SNS Bank NV, its financial information is included in the latter’s consolidated annual accounts. KPMG Accountants has issued an auditor’s report for these annual accounts. The introduction of new reporting rules (International Financial Reporting Standards) has meant that the annual accounts have had to be extended substantially. This would have resulted in a considerable increase in expenditure and has constituted grounds for us to decline a separate auditor’s report for ASN Bank’s annual accounts, sufficing instead with the one issued for SNS Bank’s financial statements.

FinancialresultsinbriefASN Bank ended 2006 with a profit of EUR 6.8 million, an increase of EUR 1.4 million (25.6%) in relation to 2005. Income rose substantially in 2006 compared with 2005, representing an increase of 13.7%. There was a further rise in the bank’s interest result thanks to positive developments on the interest front. A marked increase also occur-red in investment fund management. Proactive cost management has ensured that the increase in expenditure was confined to 8.8%.

SavingsundermanagementIn 2006 savings under management* leapt by a sum of EUR 661 million to more than EUR 2,665 mil-lion. This presents an increase of 33%, an absolute record for ASN Bank.

InvestmentfundsOur investment funds exhibited substantial growth again in 2006. The capital invested in the ASN funds climbed by EUR 182 million to EUR 1,167 million, a rise of almost 18%. This increase in the funds’ assets was largely due to the influx of new funds. The ASN Milieu & Waterfonds was respon-sible for the largest influx. The investment funds offering tax relief, the ASN Groenprojectenfonds and ASN-Novib Fund, also contributed to the influx of new funds. Listed prices recovered in the second half of the year following a steep decline in May, which virtually negated all the gains that had been made until then in 2006.

InvestmentportfolioASN Bank’s investment portfolio amounted to EUR 2.7 billion at the end of 2006. Its savings under ma-nagement rose by EUR 661 million in 2006. These funds have been invested in accordance with the relevant guidelines. In the past year an effort has been made to limit the increase in government se-curities as far as possible in favour of more sustain-able investments. A more active position was taken in the private placement market for this purpose. For instance, a total in excess of EUR 200 mil-

ASN Bank set ambitious growth targets for 2006.

A combination of good service, and the devotion of

close attention to communication and sound pro-

ducts yielding a high interest rate were responsible

for a pronounced growth of our clientele and the

assets we manage. The introduction of an ASN

Optimaalrekening was responsible for a sharp

increase in our exposure. In addition, the ASN

Ideaalsparen, which was introduced in 200�,

boosted our clientele: a large proportion of our new

customers still join us based on ASN Ideaalspa-

ren. Partly as a result of this our customer base

expanded by more than ��,000 customers (21%)

and overall assets under management rose by EUR

8�� million (28%).

* Savings under management consist of savings and other amounts payable to customers in the form of savings of legal entities (associations and foundations).


Kindredspirits

17februari 2006Nieuwsberichten van de ASN Bank

Prinses Máxima over Jaar van het Microkrediet:

‘Blij metresultaten na een jaarhard werken’ Rente:

3,75%*

Nieuw: ASN Optimaalrekening

Nu met € 10,- premie!

Einde van de biobak?

Princess Mãxima speaks about the Microcredit

Year: Pleased with results after a hard year’s work.

The first issue of 2006 of customer magazine

‘Spaarmotief ’ contained a special interview: Her

Royal Highness, Princess Mãxima, spoke about her

role as an adviser to the United Nations in 200�,

the international Microcredit Year. The princess

made a major contribution towards the promotion

of microfunding. She played an important role in

efforts to provide more credit opportunities for the

poor, thereby enabling them to advance themselves.

Mãxima speaks candidly about how she looks back

on her special task.

What did you achieve as an adviser?“I was one of 20 advisers who worked towards the

achievement of a number of goals, amongst other

things, raising awareness about microfinance as a

tool for combating poverty, realising that this was

not a form of charity but a system which needs to be

profitable if it is to survive. Only then does it allow

you to reach more people.”

lion was provided to hospitals, water management boards, housing corporations and municipalities.

OtherachievementsDuring an Ethical Investment Day ASN Bank announced that it would be reviewing its human rights criteria. The reason for this took the form of a document entitled UN Human Rights Norms for Business published by the United Nations (UN). Consultations were held with numerous organi-sations, such as Amnesty International, in 2006. Eduard Nazarski, the director of the Dutch section of Amnesty International, is pleased with this initiative taken by ASN Bank: “As such, the bank is showing that it can play a pioneering role. Our orga-nisation considers this to be a major step forward”.

In 2006 the Netherlands’ Greenpeace division cho-se ASN Vermogensbeheer as its new asset manager. The principles of sustainability and the investment criteria espoused by ASN Bank complement those of Greenpeace. In this way it is possible to ensure that Greenpeace’s financial reserves are not used for operations causing environmental pollution, the arms industry, child labour or any other socially undesirable activities.

Outlookfor2007In 2007 we are again expecting to achieve substan-tial growth. In order to achieve this growth we will be introducing new products and services. In addi-tion, we would like to draw people’s attention to our investment funds even more effectively, especially through external distribution. Internally, we will be continuing to professionalise our organisational processes.

With the aid of position papers and by actively responding to subjects relating to sustainability, we intend to devote a great deal of attention to the ongoing consolidation of our authoritative position in the sustainable finance market. Environmental objectives will also be important for us in 2007 and our policy on human rights will be fine-tuned as well.

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In this way ASN Bank will maintain its special position in relation to other sustainable finance service providers.

We anticipate an increase in income in 2007. Thanks to rising long-term interest rates we can count on an increase in our interest result. Expres-sed in relative terms expenditure will rise less sharply, which will naturally have a positive impact on net profit.

ASN Bank’s distribution channels (the Internet, e-mail and telephone) will be improved where possible. Efforts will also be made to retain the superior level of the services we provide to our cus-tomers and to raise it even further. Apart from this, accommodation in sustainable premises represents an important matter. The first concrete steps of this process may be taken in 2007. We would like to make our operations more sustainable by reducing our consumption of energy and paper.

The Hague, 21 August 2007

E.P. Goudswaard (General Manager)J.E. Jansen (Director)

ASNBankfortheworldoftomorrow

SavingsandinvestmentsatASNBankASN Bank offers its customers various alterna-tives for savings and investments. You will find a list adjacent to this (G3: 2.2). The aim of all of these products and services is to make a direct or indirect contribution towards the promotion of sustainability in society without this being achieved at the expense of the returns secured by the bank’s customers. The interest which we pay our customers compares favourably with that offered by our competitors and the yield achieved on our various investment funds is in line with market standards. In Chapter 3 (pp. 30-31) you will find a breakdown of the move-ments that have occurred in our savings balances and investment funds. For more detailed infor-mation about the alternatives offered by ASN Bank we refer to our website, www.asnbank.nl. Naturally, you may also call or write to us.

ASN Bank (G�: 2.1) was established in 1960 and has

been a market leader in sustainable banking for more than

�� years now. Our head office is situated in The Hague

(G�: 2.� and 2.�). As a full subsidiary of SNS Bank NV

(which is in turn a full subsidiary of SNS Reaal), ASN

Bank operates as an independent sustainable bank with

its own banking licence. We focus on servicing private

individuals and organisations in the Netherlands which

seek sustainable savings and investments offering returns

in line with market standards (G�: 2.�).

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SavingsatASNBankTypeofSavings MostImportantFeaturesASN Ideaalsparen Variable interest rates, automatic monthly savings, and balance

inquiries free of chargeASN Optimaalrekening Variable interest rates, no investment limits, withdrawal fee of 1%,

and investments in ASN investment funds without any transaction fees

ASN Wereldsparen Variable interest rates, Internet savings, and balance inquiries free of charge

ASN Internetsparen Variable interest rates, Internet savings, and balance inquiries free of charge

ASN Sparen and ASN Sparen Extra Variable interest ratesASN Milieusparen and ASN Milieusparen Extra

Variable interest rates, and investments in nature and the environ-ment

ASN Jeugdsparen Variable interest rates, savings for children and grandchildren, and balance secured until adulthood

ASN Levenslooprekening Variable interest rates, and tax-deductible savings from gross salary for unpaid leave

ASN Spaarloonrekening Variable interest rates, fixed term, and tax-deductible savings from gross salary

ASN Depositorekening Variable interest rates, fixed term, and interim withdrawal fees

ASN Vrouwenspaardeposito Variable interest rates, fixed term, interim withdrawal fees, and interest donations to Vastenaktie for loans to women

ASN Waddendeposito Variable interest rates, fixed term, interim withdrawal fees, and interest donations to Waddenvereniging

InvestmentsatASNBankTypeofInvestments InvestmentsinASN Obligatiefonds International bonds

ASN Mixfonds Mix of international bonds and sharesASN Aandelenfonds International sharesASN Milieu & Waterfonds Shares in environmental and water technology companiesASN Small & Midcapfonds Shares in small and medium-sized European companies with ad-

ditional potential for growthASN Groenprojectenfonds Accredited “green” projectsASN-Novib Fund Microcredit in developing countries

ASNBankandcreditfacilitiesASN Bank also provides business loans to com-panies. We specifically look for businesses and projects which satisfy our special investment cri-teria in relation to people and the environment. This may apply especially to loans which are provided from the ASN Groenprojectenfonds. It is easier for businesses to carry out their projects and plans thanks to the provision of loans and the knowledge which ASN Bank possesses in

relation to subsidies, funds and tax relief, for example.

Before a business loan is provided, ASN Bank assesses whether the relevant company or project contributes to the sustainability of society in social, cultural and/or environmental terms.

Through its ASN Groenprojectenfonds ASN Bank funds projects which have a direct effect

on the production of a healthier environment. In this way the investors in this fund help to achie-ve an environmentally friendly society, while be-nefiting from stable returns and tax exemptions. To qualify for an affordable loan from the ASN Groenprojectenfonds an application is made for each investment. In some cases an investment is only considered to be a “green” project in part. In this case it is possible to combine a loan with a normal credit facility at our bank or another one.

PracticalexamplesAidshopsASN Bank has provided credit facilities to aid shops in Hilversum, Dordrecht and Hooge Zand, amongst other places. These aid shops have invested in the interior of their businesses in order to appeal to more young people. We find it important to invest in aid shops, because their volunteers put their heart and soul into selling products from developing countries. Volunteers can see that their work produces results in more professional surroundings.

CoiltubingtechnologyCryojet BV has developed an innovative concept for cleaning using dry ice for Coil Tubing Tech-nology BV. In the Rotterdam harbour any CO2 that is released is used for industrial cleaning. This gas is frozen and is sprayed on to filthy equipment under high pressure in the form of ice pellets, or it is used for clean-ups in the event of a disaster. This type of cleaning does not use any water nor are any chemicals required, which produces major benefits for the environment. The equipment that is cleaned does not corrode. The staff responsible for operations is also expo-sed to less risk.

EnergyderivedfrombiomassASN Bank devotes a great deal of time to famili-arising itself with developments in relation to the generation of energy using biomass. We would like to play a significant role in a highly promi-sing new economy in which the Netherlands could become a pioneer. After all, the Nether-lands has both highly qualified farmers and ex-

The world of tomorrow according to Gerard Radstaat

Information Analyst

“All of the people in the world treat each other with

respect on the basis of equality. No one hurts anyone

else either physically or mentally. We no longer need

to convince each other that we are right or to strug-

gle to impose a different approach to life on someone

else. The earth’s mineral resources are shared equally

without anyone being exploited. This also applies to the

products that are made of them and the processes which

are required for them. We have custody over the earth

and need to ensure that those who follow us can live in

a similar fashion.

“This is a highly idealistic view which I have pursued

for years. However, the prevailing situation is more

susceptible to change than I had hoped. Nevertheless,

it is you and I – in short, we are the people who can

make a difference. If everyone thought that this was

not the case, the Berlin Wall would never have fallen

(and would never have been built) and apartheid would

never have been abolished in South Africa (and never

introduced). This is why every step which contributes to

this is an important one.

“In this respect we may never be allowed to lose sight

of reality. I am not a tree-hugging idealist. I yield to ob-

stacles which stand in the way of my own ideals, more

than I am conscious of and certainly more than I would

like. It does not surprise me that I am not idealistic.

However, in our knowledge society it is not really ac-

ceptable, if you are not aware of who you are or will be

and how we live together on this earth.

“To me ASN Bank is an ideal mix of reality and my

ideals: having both feet on the ground yet knowing very

well what you are trying to achieve.”

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cellent chemists, and the Rotterdam harbour has a good infrastructure for the biomass industry.

In a standard plant methane gas is produced du-ring the biomass digestion process, which is used in a coupled production facility to generate heat and power. By treating it at high temperatures complex organic compounds are broken down into simpler ones (hydrolysis), which are easier to convert into methane. ASN Bank only provides credit facilities to biomass digestion facilities which utilise this proven technology. You will find several examples below.

BiofermEnergyThe first loan to be granted to a biomass diges-tion plant was provided to Bioferm Energy BV. This company has built a biomass digestion plant together with a farmer to process pig manure, cow dung, chicken droppings, beet and corn sourced from the immediate surroundings.

BiomassaBeheerBiomassa Beheer BV is a company which is jointly owned by Econcern BV in Utrecht and Energy Investments Holding BV in Maarsbergen. The ASN Groenprojectenfonds has financed three biomass digestion plants: Groot Zevert Vergisting, Scharlebelt and Wieringermeer. These plants use a large variety of manure and co-substrates.

BiologischeIndustriëleReststoffenverwer-kingBiologische Industriële Reststoffenverwerking (BIR) has a biomass digestion plant together with a sanitation facility to treat waste flows (mainly from the food and natural stimulants industry), while simultaneously generating sustainable energy. BIR combines these three components to create a rather highly efficient product by integrating its biomass digestion plant with Riool WaterZuiverings Installatie Lichtenvoorde (RWZI) and Afvalwater Zuiveringsinstallatie Hulshof (AWZI). The heat derived from the co-production plant is used to purify waste water. The biogas which is released in the course of

purification serves as an ancillary fuel in a steam generator.

WaterstromenLichtenvoordeWaterstromen Lichtenvoorde BV has received a loan for a biological water plant in the grounds of the Olburgen sewage water treatment plant. Aviko, a potato processing plant in Steenderen will be using the facility. In the past Aviko only extracted organic substances from waste water. Now it has to extract nitrogen and phosphates from waste water as well. What is special about this type of water purification is that no chemi-cals are used in it. Less sludge is produced as a result, which yields savings on waste disposal costs.

MeerWarmteMeerWarmte Vof in Alkmaar has received a loan to construct a heating distribution network in Boekelermeer (Alkmaar and Heiloo). This loan was granted subject to surety provided by NV Huisvuilcentrale Noord-Holland (HVC). The treatment of domestic waste generates heat for buildings in the immediate vicinity.

WindenergyMore than 30% of the investments provided by ASN Groenprojectenfonds are loans in the wind energy sector. One of them is for a large wind turbine operated by the cooperative association, De Windvogel, at the intersection of the A2 and A9 motorways near Ouderkerk. What is special about this project is that the people who live in the immediate vicinity are co-owners of it throu-gh their membership of the cooperative. All of its members pay a subscription of EUR 50.00 and share the income generated by the turbines at the end of the year. Many volunteers have offered to help work through the difficult preliminary stage as soon as possible.

OrganisationalstructureASN Bank’s structure is depicted in the organi-sational chart on the following page (G3: 2.3). In 2006 the ASN Beleggingsbedrijf and ASN Spaar-bedrijf merged to form the Vermogensopbouw


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KeyfiguresASN Bank enjoyed a successful year in 2006, which saw an increase in assets under management and

the further improvement of our financial result. Our key figures may be found in the following table.

department (G3: 2.9). This department focuses both on the growth of our savings and that of the

fund capital of ASN Beleggingsfondsen.

Management Board

Executive Secretariat

Controlling

PR & Internal Communication

Account Management & Credit Facilities

Marketing and Publicity

Ope

rati

ons

Asset Management

Customer and Account Management

Customer Contact Centre

Information Management

Facilities Management

EconomicPerformance 2006 2005 2004 2003 2002Interest donations to social organisations (in euros)

131,429 144,000 211,000 253,000 255,000

SavingsunderManagement(inmillionsofeuros)ASN Bank 2,665 2,004 1,678 1,445 1,219ASN Beleggingsfondsen 1,167 985 681 564 524Total available for sustainability 3,832 2,989 2,358 2,009 1,743

Share of market for sustainable savings and investments

35%* 34% 30% 30% 31%

FinancialPerformance Growthin2006

(G3:EC1)

2006 2005 2004 2003 2002

(in millions of euros)

Investments 572 2,700 2,128 1,625 1,440 1,173Savings under management 661 2,665 2,004 1,678 1,445 1,219Shareholders equity -49 39 88 37 74 72Balance sheet total 579 2,806 2,227 1,752 1,554 1,328Interest result 2.5 18.3 15.8 15.8 11.9 10.3Other income 0.4 6.3 5.9 5.3 3.6 6.6Total expenditure 1.2 15.1 13.9 12.2 12.1 12.3Operating profit 1.7 9.6 7.9 8.8 3.4 4.6Results after tax 1.4 6.8 5.4 5.8 2.3 2.0


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ASN Bank is a full subsidiary of SNS Bank NV, which in turn constitutes part of SNS Reaal. The Management Board is responsible for the day-to-day management of ASN Bank. It determines the bank’s policy. ASN Bank has a Supervisory Board and an Advisory Board.

ASN Bank’s policy is set out in its mission state-ment (G3: 4.11), which is as follows:

ASN Bank is a business which seeks to enhance the sustainability of our society and allows itself to be guided by this in its economic activities. Enhancing sustainability of our society is viewed as assisting with changes which are designed to put an end to processes, whose adverse effects are postponed to the future or are foisted on to the environment, nature or impoverished commu-nities. Economic activities refers to the acknow-ledged need to produce a long-term return which will ensure ASN Bank’s continued healthy exi-stence and to the acknowledgement of the need to manage the savings entrusted to ASN Bank in a manner which satisfies the expectations of our customers.

Our mission is set out in six so-called “business principles”. All of the products and services pro-vided by ASN Bank are required to comply with these principles covering human rights and the environment. We flesh this out in practical terms through our Special Investment Criteria.

ASNBankresearchessustainabilityASN Bank applies its Special Investment Criteria when selecting investments for its banking ope-rations and the investments of the ASN Aande-lenfonds, ASN Obligatiefonds, ASN Mixfonds and ASN Small & Midcapfonds (G3: 4.8). You can find the complete version of these criteria in Appendix I. In it you will be able to read about the approach which we adopt when analysing investments (G3: 4.9). In the case of the ASN Milieu & Waterfonds and ASN Bank’s business credit facilities only the exclusion criteria are applied in view of the nature of the relevant in-

vestments and loans. The Regeling Groenprojec-tenfonds applies in the case of the ASN Groen-projectenfonds. In the case of the ASN-Novib Fund the Regeling Sociaal-Ethische Projecten 2004 applies.

CodeofconductandpropergovernanceThe Tabaksblat Corporate Governance Code was introduced in the Netherlands in 2003. This Corporate Governance Code is a code which seeks to ensure “proper governance”. It was in-troduced partly in response to a number of major accounting scandals in the United States and Eu-rope. The code contains principles and concrete provisions (best practices) for people involved in a company. In this respect you might consider rules governing the level of fees, the influence of shareholders and the maximum number of su-pervisory posts which a director may hold. The best practices represent a concrete elaboration of the principles and stipulate standards for the con-duct of directors and supervisory directors. This ensures the supervision of corporate governance. The provisions also ensure a balanced division of the powers exercised by the management and supervisory boards, and the shareholders.

The Tabaksblat Corporate Governance Code applies to all Dutch companies listed on the stock market. Following the admission of SNS Reaal to listing on the stock exchange in 2006 the Tabaksblat Corporate Governance Code also came to apply to it formally, and hence also to ASN Bank (G3: 4.12) In view of the fact that ASN Bank wishes to manage the funds entrusted to it with integrity, transparently and with a wil-lingness to accept responsibility, it had already decided to apply the code of its own volition, when it was drawn up.

MembershipASN Bank’s marketing operations are directed primarily towards private individuals, communi-ty organisations and semi-institutional investors. We are a member of the following organisations, amongst others (G3: 4.13):

Governance,commitmentsandinvolvement2


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• Vereniging van Beleggers voor Duurzame Ontwikke-

ling (VBDO)

VBDO tries to encourage sustainable invest-ments. ASN Bank and VBDO support each other, so as to ensure that sustainable invest-ments can expand effectively in the marketplace;

• UN Environment Programme Finance Initiative

(UNEP FI)

UNEP FI is a global partnership involving more than 260 financial institutions. With the aid of debates it seeks to boost the awareness of the need for sustainable business and simultaneously to spread best practices throughout the world;

• Social Venture Network

Social Venture Network is an internationally active organisation of business owners who want to encourage each other to pursue sustainable business;

• INSEAD Sustainability Roundtable Steering Com-

mittee

The INSEAD Sustainability Roundtable Steering Committee provides practical managerial infor-mation to companies to enable them to structure their business in such a way that they are able to operate in a sustainable manner;

• Carbon Disclosure Project

The Carbon Disclosure Project is a joint venture of Dutch banks which aims to encourage those businesses which receive financial assistance to report on their CO2 emissions;

• International Association of Investors in the Social

Economy (INAISE)

INAISE is an international joint venture of financial institutions with pronounced social focus. It supports all forms of collaboration be-tween investors in the social economy;

• Projectgroep Biomassa en Warmtekrachtkoppeling

The Projectgroep Biomassa en Warmtekracht-koppeling combines the strengths of those par-ties involved in processing biomass to produce energy;

• Nederlands Platform Microfinanciering

Through Nederlands Platform Microfinanciering Dutch financial institutions provide microcredit to the Third World (indirectly or otherwise). They share their expertise and expenses through this platform;

• MVO Nederland

MVO Nederland seeks to help businesses, go-vernment and other organisations to play a role in society by sharing knowledge and collabora-ting with each other. Their social role involves, for example, making the best possible contribu-tion towards causes such as a healthy environ-ment, combating poverty, the quality of work and a healthy life;

• Stichting Nederlands Water Partnership

This foundation produces information on water in the Netherlands and serves as a starting point for information on Dutch expertise in the water sector.

ASNFoundationFor years now ASN Bank has made donations to projects and organisations which help us fulfil our mission. An anniversary fund was esta-blished for this purpose during the celebration of our 25th anniversary (1985). This fund was used to finance donations on an ad-hoc basis. In order to formalise our policy on donations on 9 December 2004 we established the ASN Foundation, which makes funds available to organisations and projects to facilitate sustain-able initiatives (which coincide with ASN Bank’s mission and aims).

The projects and organisations that are eligible for donations are those involved in:- the pursuit of a multicultural society and inte-

gration;- sustainable economic development;- the protection of ecosystems and biodiversity;- development work;- human rights;- peace and disarmament;- the promotion of cultural development;- health care.

Kindredspirits

Jean-François Rischard, the former World Bank Vice-

President for Europe

“WE ARE FLYING THROUGH THE EYE OF

A STORM”

“We have another 20 years to solve the most urgent,

international problems such as global warming,

over-fishing and environmental pollution. If we fail,

they will become irreversible,” argues Jean-François

Rischard, the former World Bank Vice-President for

Europe, “But with the world structured as it currently

is we will never succeed!”

In his book, Five Minutes to Twelve: Twenty Inter-

national Problems, Twenty Years in Which to Solve

Them, Rischard analyses the reasons why we are sim-

ply failing to resolve global problems. He also suggests

new ways to deal with them before it is too late.

18mei 2006Nieuwsberichten van de ASN Bank

Jean-François Rischard:

‘We vliegen midden door een storm’

ASN VoorjaarsactieGratis Groene Vakantiegids

WK voetbal voor het eerst duurzaam


1 �

This applies to projects throughout the world. However, the application for a donation must emanate from an organisation which is based in the Netherlands. In 2006 the ASN Foundation provided assistance to approximately 95 pro-jects representing a total amount of about EUR 250,000.00. The following are examples of these projects.

GhanaThe non-governmental organisation, PCC/Hand in Hand Community in Nkoranza in Ghana has requested assistance to improve the living conditions of physically disabled children. The Movendi Foundation in Ghana has answered its request for help with a project lasting nine months. This project aims to provide training courses for the design and manufacture of or-thopaedic aids. The Movendi Foundation focuses on coaching volunteers, and establishing and carrying out projects directed towards physically disabled people in developing regions. In addi-tion, sharing physiotherapy expertise with local therapists represents an important goal.

The Hand in Hand Community may be compa-red with a small village. Two or three children live together with a carer. They live as a small family in their own home. These homes are positioned in a circle around a centrally situated space which can be used for games, drills, play-ing music and communal meals. The Movendi Foundation seeks to improve the situation with the aid of this training project, so as to ensure that it produces self-reliance upon its completion. The Foundation receives assistance amounting to EUR 10,000.00.

IndiaThe National India Working Party celebrated its 25th anniversary in 2006. It has selected two project themes in this context: “corporate social responsibility” and “child labour and education”. The project focusing on corporate social res-ponsibility devotes special attention to multina-tionals and cotton seed cultivation, the mining sector, and the natural stone, clothing and tea industries. In all cases the aim is to encourage

Kindredspirits

Children’s Ambassador, Isa Hoes:

“I SIMPLY HAVE A WELL-KNOWN FACE”

This is a conversation with the Children’s Ambassador,

and chatterbox, Isa Hoes, about creativity, motherhood

and fame, and why children living in slums deserve all

the support the world can give.

Are you not discouraged by the extent of the problem: 100 million children living in slums throughout the world?“I want nothing to do with that sort of pessimistic

outlook. If I did, I may as well lie down in my coffin.

If an opportunity arises to make a contribution, do it.

Doing nothing is not an option. If it were, we may as

well simply abandon the planet. Who actually gets

anywhere with such an attitude?”

19juli 2006Nieuwsberichten van de ASN Bank

Kinderstem-ambassadeur Isa Hoes:

‘Ik heb nu eenmaaldie bekende kop’

Verdien2 x € 10,-

premieVerdien

2 x € 10,-premie

Voor uzelf of voor

een goed doel!

Actie ‘klanten werven nieuwe klanten’

Sojaburger op de barbecue?

employers to abandon child labour and to work together to send the children to school. In ad-dition, it aims to make a contribution towards the improvement of working conditions, raising respect for workers’ rights (women, in particu-lar) and devoting attention to environmental aspects. The ASN Foundation is assisting these two theme-based projects by providing EUR 10,000.00.

BeninandBurkinaFasoStichting Gered Gereedschap regularly receives support from the ASN Foundation. This founda-tion collects all sorts of tools, refurbishes them and ships them to various developing countries. A donation of EUR 9,334.38 has been provided for two projects.

The first project in Benin is one being carriedout by an organisation called Apretectra. Tools are supplied on account to about 30 small businesses through an “equipment bank”. These businesses also commit themselves to employing three to six young people and to training them in the technical aspects of running a business. In this way the equipment has the effect of produ-cing an optimum spread.

The second project is being carried out by As-sociation Tous pour Tous in Burkina Faso. The equipment is used in educational programmes for young women active in technical occupa-tions, for example, those of an electrician (spe -cialising in vehicles or otherwise) or bicycle manufacturer. Apart from these educational pro-grammes, the subjects offered also include busi-ness operations and family planning. The young women already undertake a practical placement in the business sector during their training.

GhanaSchoolFeedingInitiativeThis project commenced in 2006. By making locally produced food available in schools a contribution is being made to the millennium objective. Local agriculture is being encouraged in areas of Ghana in which hunger is com-mon, by creating a structured demand for local

1 6


products for school feeding programmes. Efforts are also being made to increase school attendance and to reduce the dropout rate especially amongst girls. The nutrition and health of Ghanaian children can be improved through these types of programmes and with the aid of education. The Management Board has decided to provide an an-nual grant of EUR 10,000.00 in 2006 and 2007.

DairycattleprojectThe applicant for this dairy cattle project is a re-tired teacher and brother, who has spent his life serving underprivileged children and who has established a dairy farm, which is designed to generate income for the education and training of disadvantaged youth. Income will be generated as soon as milk production commences. In ad-dition, it will also be possible to sell calves. The cow dung can be used for organic agriculture. A contribution of EUR 12,600.00 from the ASN Foundation has been used to build stables and 20 cows have been bought (and have been fed for a year).

MoviesthatMatterMovies that Matter is a follow-on from the Am-nesty International Film Festival. This organi-sation wishes to encourage films to be shown in those countries in which human rights are a topi-cal issue. For this reason Amnesty International is helping local organisations in foreign countries to distribute films and to make arrangements to screen them. It involves screening films in the countries which are the subject of these films, where the problems portrayed in them are cur-rent, or in which limitations have been placed on showing them. The Management Board has decided to honour a request for a financial con-tribution by providing assistance amounting to EUR 25,000.00.

TripleJumpfacilitateseffortstocombatpovertyThere are approximately 540 million poor people who cannot use products such as microcredit, savings and insurance. A large proportion of available Western capital remains unused due to

a shortage of local banks in developing coun-tries. ASN Bank, Oxfam Novib and the NOTS Foundation felt that this problem constituted grounds to establish Triple Jump, a social enter-prise whose aim is to invest Western capital more readily in developing countries, so as to facilitate efforts to combat poverty.

Through investments in local microfinance insti-tutions developing countries are acquiring direct access to funds in order to develop their own economy and by doing so to combat poverty. In addition, the Dutch people have the opportunity of making their own contribution to the fight against poverty through the ASN-Novib Fund. In order to facilitate this project the Management Board has decided to provide assistance to Triple Jump in the form of an annual contribution of EUR 25,000.00 over five years.

StakeholdersIn order to determine policy and to amend it where necessary, ASN Bank regularly engages in dialogue with the various stakeholders. ASN Bank’s most important stakeholders (G3: 4.14) are:

• its customers;

• its staff;

• its shareholders (those of ASN Beleggings-fondsen);

• national and international community organi-sations;

• the businesses and projects into which invest-ments are channelled;

• government;

• the bank’s suppliers.

Dialogue occurs directly through contact with the bank’s stakeholders, such as during the Ethical Investment Day and seminars held along with the annual meeting of shareholders and investors in ASN Beleggingsfondsen. In addi-tion, surveys are held and studies are conducted amongst customers, business and social partners, and the general public. As a result it is possible to amend policy to accommodate the issues that are current in our rapidly changing society. For

1 �


Customer and Account Management Assistant

“The World of Tomorrow ensures that I adopt a more

positive attitude: I also want to share The World of

Tomorrow with the people around me.

“A few years ago something happened in my life which

has caused me to think more positively and to do more

things that I enjoy. Even if the situation is difficult, you

can still continue to act friendly towards everyone. My

motto is “A day without laughter is a day wasted”.

“I have seen ASN Bank bloom and grow, and it is still

continuing to grow further. ASN Bank has the ability

and the desire to play the role of a sustainable financial

service provider.

“The World of Tomorrow is one in which child labour

must be prohibited. Children must be protected. They

must be able to go to school, to play with other children

and to enjoy their childhood.

“The World of Tomorrow is being kind towards your

fellow human beings without forgetting yourself by

nurturing understanding, respect, tolerance and trust in

each other.

“The World of Tomorrow is continuing to help each

other and adopting a positive approach to life.”

The World of Tomorrow according to Yvonne Karyadi

1 8


instance, ASN Bank engages in very frequent consultations with relevant community organisa-tions for the purposes of developing its policy on sustainability and its Special Investment Criteria (G3: 4.16). Amnesty International is consulted in relation to human rights and Greenpeace with regard to environmental aspects. ASN Bank weighs up their suggestions and ultimately in-cludes them in our policy on sustainability (G3: 4.17). The bank conducts dialogue with busines-ses and projects concerning the manner in which they can practise socially responsible business and achieve improvements in this respect. This is called “engagement”.

HowwecommunicatewithourcustomersASN Bank uses various means to communicate with its customers and to keep them informed about recent developments.

Spaarmotief

Spaarmotief, ASN Bank’s customer magazine, is sent to all of our customers a number of times each year. This magazine presents detailed information about our savings and investment products, special promotions, projects into which investments are channelled, journalistic back-ground articles and various columns through which our customers are also given a voice.

Website: www.asnbank.nl

Our website was entirely upgraded a few years ago (2004). We endeavour to provide our custo-mers with a high level of service through www.asnbank.nl. ASN Bank’s mission of sustainability is clearly expressed through its website. In ad-dition, all of our products are clearly presented and it is possible for our existing and prospective customers to open an account. Our customers can also register for online banking. At the end of 2005 a start was made with the extension of our customer service section. For instance, all of our brochures are now available online. Not only is this convenient for our visitors but it also reduces the use of paper.

1 9

E-mail newsletter

Our e-mail newsletter is sent to our customers five times a year. This electronic newsletter contains information about our products, special promo-tions and news. In addition, it has a fixed polling section. The poll takes the form of a hypothesis which is presented for readers to express their opinion about. The electronic newsletter represents an environmentally friendly, interactive way of providing our customers with interesting informa-tion.

Campaign website with Greenpeace

Together with our partner Greenpeace we established a campaign website in 2005. Greenpeace’s campaign for the conservation of the North Sea is highlighted through www.sparenvoordenoordzee.nl.

Op Koers

Our information bulletin for investors, Op Koers, is distributed four times a year. Op Koers provides detailed information about each investment fund, including its price and rates of return (and the sec-tors in which it invests). In addition, it presents in-formation about product promotions, background and news. Changes in the investment climate of the various funds are also described every quarter.



2 0

EconomicperformanceThe economic aspects of sustainable develop-ment are extensive. Our operations as an organi-sation have an impact on the economic situation of our stakeholders and on economic systems at the local, national and global levels. The econo-mic indicators reveal the flow of capital between the various stakeholders and also show the most prominent economic effects which our organisa-tion has on society.

Growthin2006Viewed in economic terms ASN Bank has had a good year. Savings under management exhibited substantial growth. Our financial result was also cause for satisfaction. You can find our key figu-res in Chapter 2 on p. 12. Below you can read about the growth which ASN Bank experienced in 2006 (G3: EC1).

Thanks to the substantial increase of savings under management, ASN Bank was again able to invest more funds in sustainable organisations and projects in 2006. Because ASN Bank asses-ses all of its investments against sustainability criteria, it limits the economic risks involved in climate change, for example (G3: EC2). This approach means that the bank does not invest in sectors which are sensitive to climate, for example. In this respect you might consider fossil energy, and the automotive and aviation industries.

ASN Bank does not receive any government as-sistance (G3: EC4). Tax relief is available in the case of two of our investment funds (the ASN Groenprojectenfonds and the ASN-Novib Fund). The tax benefits provided which this relief pro-vides are available to our customers.

EconomicinfluenceoflocalsurroundingsWhile it is true that ASN Bank has its registered office in The Hague, it is not oriented towards the latter by definition in view of the fact that our customers are found throughout the Nether-lands. Our immediate local surroundings there-fore have a limited influence in economic terms.

Managementandperformanceindicators�

The GRI guidelines devote attention to the economic effects which a business has in respect of entry-level wages in a particular region (G3: EC5), the procurement policy of locally based suppliers (G3: EC6) and procedures for the recruitment of local personnel (G3: EC7). It goes without saying that a significant proportion of ASN Bank’s staff come from the region in and around The Hague. However, given the limited number of employees that we have our economic impact is limited in this respect.

Apart from price and quality, achievements in relation to social and environmental matters are also considered when selecting suppliers. This is especially evident in the case of catering, of-fice furnishings and the consumption of paper. It is our intention to continue to fine-tune our selection process for suppliers based on labour practice and environmental criteria in 2007.

TargetAssess suppliers on the basis of ASN sustainability criteria

90% 31 December 2007

Investmentsininfrastructure(G3:EC8)ASN Bank is part of SNS Reaal and uses its parent company’s infrastructure to a significant extent. No investments were made in infrastruc-ture for non-commercial goals in 2006.


2 1

ASNBankandtheenvironmentSustainable development and the environment are closely related to each other. In this respect one might consider the influence which an orga-nisation has on living and other natural systems and ecosystems. Environmental indicators refer, for example, to the consumption of materials, energy and water, as well as the release of airborne emissions, waste and waste water. In this respect we also do not wish to ignore biodiversity, compliance with environmental regulations, expenditure on aspects pertaining to the environment, and the impact of products and services.

Newspapers are inundated with it. You can watch it on the news, hear it on the radio but also notice it yourself in your back garden: the climate is changing. Winters are milder, rain-fall is heavier, storms are fiercer, and crocuses emerge from the ground in January already. These are the effects of global warming or put another way, the greenhouse effect.

Reducing CO2 (carbon dioxide), in particular, can mitigate the greenhouse effect. CO2 is re-leased when fossil fuels are burnt, such as oil, gas and coal. This is what we use to drive our cars, to keep our homes warm, to produce electricity, and it is what drives the economy at full speed. ASN Bank believes that it is time to set course in a new direction! It is for this reason that ASN Bank is investing in “green” energy, sustainable construction, in businesses which focus on water collection or recycling. In this way the bank is helping to create a better environment.

ASN Bank is a financial service provider. Conse-quently, the direct impact of its business opera-tions on the environment is minimal. A number of the GRI’s G3 guidelines relating to environ-mental performance therefore do not apply to these direct effects. For instance, ASN Bank’s office activities have little effect on biodiversity.

With regard to any direct effects on the envi-ronment, ASN Bank has proceeded to define

so-called key performance indicators or what the bank deems to be the most important indicators of these effects. No key performance indicators have been established for a large number of di-rect effects on the environment, because they are relatively limited. Consider for instance the use of Max Havelaar coffee, office cleaning agents and so forth. However, this does not mean that ASN Bank does not devote any attention to these effects on the environment. The bank is also constantly seeking to improve its environmental performance in relation to these relatively minor effects.

ASN Bank’s policy is directed towards the constant mitigation of the impact of all envi-ronmental aspects but not to report on all of them. The decision in favour of the relevant key performance indicators was taken on the basis of their material significance to ASN Bank as an office-based organisation. Material significance refers to the fact that these indicators represent approximately 90% of our overall environmental impact. What we are concerned with here is a decision taken on the basis of experience and appraisal.

RecyclingpaperOf all the materials which ASN Bank uses (G3: EN1), which includes the recycled ones (G3: EN2), paper is by far the most important. We have been using recycled paper since as early as 1980 and, as such, we were the first bank to use chlorine-free paper for all of our products and services. The paper and the supplier are FSC certified.

162,910kgofpaperin2006As a financial institution ASN Bank uses a rela-tively large amount of paper. Its total paper con-sumption amounted to 162,910 kg in 2006. This refers to ASN Bank’s overall consumption of pa-per, hence that used for its office, the statements distributed to its customers and the brochures sent to its actual and potential customers. At-tention is constantly devoted to ways of reducing paper consumption. These efforts to reduce the


2 2

consumption of paper yielded results in 2006. In that year the consumption of paper remained identical to that of 2005 in absolute terms.

In view of the fact that the number of customer accounts rose drastically in 2006, paper con-sumption per customer fell significantly from 0.46 kg to 0.40 kg per customer account on an annual basis.

Paperconsumption(inkilogramspercustomeraccounteachyear)2006 0.40

2005 0.49

2004 0.33

2003 0.37

2002 0.45

2001 0.53

EnergyconsumptionIn view of the fact that ASN Bank is not a pro-duction company but a financial service provi-der, its direct energy consumption (G3: EN3) is confined to heating and lighting in its office block. Nevertheless, ASN Bank is naturally stri-ving to reduce its already limited consumption of energy even further. The fact that ASN Bank is based in an old building (dating from the be-ginning of the previous century) does impose li-mitations however, when it comes to insulation. In recent years we have channelled considerable investments into energy-saving measures (G3: EN5), such as the installation of double insulated glazing, the modernisation of the central heating system and the purchase of energy-efficient, flat-screen monitors.

We have been sourcing renewable power since as early as 2000 (G3: EN6) and our energy consumption has declined in recent years. In part this can be traced back to our investments. However, our energy consumption also partly depends on the weather. For instance, a harsh winter will cause energy consumption to rise.

EnergyConsumptionperUnit EnergyConsumptioninAbsoluteTermsElectricity 1 Gas 2 Electricity Gas

2006 2,459 12 125,657 19,0382005 2,221 11 113,512 16,8072004 2,401 14 120,040 21,1152003 2,823 14 140,600 20,8532002 2,875 11 136,277 16,3582001 3,729 19 164,459 29,203

1 In kWh per FTE.2 In m3 per m2 of floor area.Electricity consumption has risen by 238 kWh per FTE. Gas consumption has increased by 1 m3 per m2 of floor area.

TargetConsumption of rene-wable power

100% Achieved and to be maintained

Target• Use of recycled paper 100% Achieved

and to be maintained

• Reduction of paper per customer account



2 �

WaterconsumptionYear Inm3perFTE Total

Consumption(m3)2006 7.4 3802005 7.6 3882004 8.6 4302003 8.9 4422002 4.9 2322001 6.4 291

The consumption of water in our office has exhibited remarkable fluctuations over the years. There is an explanation for this. Some of this water is used to spray the garden. The extent to which this occurs can have a substantial impact on consumption. A hot dry summer can result in a significant increase in water consumption.

BiodiversityThe GRI guidelines devote attention to the man-ner in which a business deals with biodiversity (G3: EN11 to EN15). Amongst other things, this involves the treatment of areas which are pro-tected or which have a high biodiversity value and contain protected or recovered habitat. ASN Bank is not a production company which has a direct impact on biodiversity.

GasemissionsGreenhouse gas emissions (G3: EN16) and, in particular, CO2 (carbon dioxide) are the most important ones produced by ASN Bank, which have a direct impact on the environment. No other greenhouse gas emissions (especially in the form of coolants) occur (G3: EN17). ASN Bank has three major sources which were responsible for its overall emissions of CO2: those produced by the transport of its staff, those generated by heating the office, and those resulting (indirectly or otherwise) from the consumption of electri-city.

In 2004 ASN Bank started to keep records of the CO2 emissions from its staff ’s vehicles used for business purposes and to commute between home and work. Records are also kept of the CO2 emissions which occur as a result of business

flights. As of 2006 the CO2 emissions produced by office heating and commuting between home and work using public transport are also being calculated and compensated for. The consump-tion of electricity at ASN Bank produces no emissions in view of the fact that the bank only uses renewable electricity, which generates no net greenhouse gas emissions.

Compensationintheformoftree-plantingWe invest in tree-planting certificates to com-pensate for the harm caused to the environment. For instance, in 2004 certificates were purchased for planting 5 ha of forest and 8.4 ha in 2005. The emission of CO2 in 2006 will be offset by the purchase of certificates for planting 14.7 ha of forest. The increase in relation to 2005 can be explained by the fact that in 2006 compensation occurred for emissions due to energy consump-tion and public transport in addition to those produced by transport by car and plane.

The World of Tomorrow according to Micky Bakker

Campaign Manager

In my world of tomorrow will be shared more equi-

tably and the rights of the people and the environment

will be properly protected. There will be scope for

sustainable technologies which have a less harmful

impact on the environment, and they will also receive

the appropriate amount of attention and support.

In the course of my travels and while working abroad

I have personally had the chance to see what is not

going well in the world, grinding poverty in India and

Ethiopia, girls of 1� years of age working 1� hours a

day in factories in China, and the destruction of the

wilderness and habitat of unique animals in Borneo

and tropical reefs throughout the world. This has not

made me passive or caused me to abandon hope. No,

it is time for action. It is time to do things differently,

because it is possible to do so. Everyone can make a

difference through microlending which provides more

people with an opportunity to secure a livelihood by

only investing in businesses which treat people, nature

and the environment with respect, by supporting pro-

jects which can make a world of difference to the lives

of individuals, and by being critical in the choices we

make. I am proud that I can make a contribution to a

better world though my work at ASN Bank.

2 �


CO2Emissions(tonnesperannum)

PerFTE

2006 147 2.872005 84 1.64

2004 50 0.98

Only CO2 emissions produced by air traffic and commuting by car between home and work were compensated for in respect of 2004 and 2005. As of 2006 ASN Bank calculates and arranges com-pensation for all of its CO2 emissions, including those of its energy consumption and those produ-ced by commuting between home and work using public transport. As a result the figures for 2006 differ from those for 2004 and 2005.

Target

Compensation for all CO2-emissions

100% 31 December 2007

Reductionofgreenhousegasemissions(G3:EN18)Although ASN Bank as an office-based organisa-tion produces few CO2 emissions compared with a production company and arranges compensa-tion for all of its emissions, it is nevertheless stri-ving to reduce them as far as possible. ASN Bank has defined the following target for this purpose.

TargetReduction of actual CO2 emissions per FTE (or energy consumption per FTE)

5% 31 December 2007

WaterdischargeASN Bank’s water discharge is identical to its consumption of water and is confined to tap water (G3: EN21).

Waste(G3:EN22)Waste is sorted within ASN Bank: paper, kitchen and garden waste, chemicals and other. Paper represents the most important waste flow. The table below lists the amount of paper waste pro-

2 �


duced by the ASN Bank office. Significantly more paper waste was produced in 2006 than during the year before. In part this is due to the rapid growth achieved by ASN Bank, with the result that there has been an increase in the absolute amount of paper consumption and waste. Never-theless, the most important reason for the in-crease may be found in the purge of our archives, which has led to the destruction of old files.

PaperWaste(inkg)2006 18.1942005 9.6632004 14.5592003 12.6132002 13.6622001 5.601

The amount of vegetable, fruit, chemical and other waste is very limited. No records are kept of the quantities involved. It is estimated that this waste amounts to a total of 5,000 kg per annum.

TargetSorted collection and recycling of office waste


Transportingmembersoftheworkforce(G3:EN29)By way of an extension of our environmental policy a large proportion of ASN Bank staff use public transport or a bicycle as far as possible of their own volition. This is clear from the fol-lowing figures for 2006.

StafftransportBy foot 1Bicycle 9Public transport 31Own car 10Leased vehicle 6Total 57

SocialperformanceThe social aspects of sustainable development are predominantly evident in the influence which

an organisation exerts on the social relations sy-stems within which it operates. The GRI’s social performance indicators determine which impor-tant aspects of an organisation’s achievements are related to working conditions, human rights, and product-related responsibilities.

Staff:ASNBank’sbackboneASN Bank has been experiencing rapid growth in recent years. The dedication, professionalism and enthusiasm of our staff are decisive for our success. It therefore goes without saying that ASN Bank wants to be an employer with appeal.

EmploymentCompositionofworkforce(G3:LA1)At the end of 2006 the number of staff and FTEs was identical to the equivalent figures for 2005 (see the table below). ASN Bank experienced major growth in 2006 and it was not always pos-sible for an identical number of staff to cope with the additional workload. Consequently, employ-ment agency staff had to be relied on relatively frequently.

NumberofStaffin2006

Year-end

Average

In terms of employees

2006 57 57,52005 57 53,6In terms of FTE’s:

2006 51,1 50,32005 51,1 47,6

Relatively few very young people work for ASN Bank. Only four of our 57 employees (7%) were younger than 30 years of age in 2006. The follo-wing table shows the breakdown in age.

Workforcebyagein200620-29 430-39 1840-49 24Older than 50 11Total 57


2 6

Staffturnover(G3:LA2)In 2006 seven people (6.7 FTEs) were employed, while seven (6.8 FTEs) left the bank’s employ.

WorkingweekBased on the relevant collective labour agree-ment a standard working week at ASN Bank amounts to 36 hours, although part-time work is also allowed. Of the total number of employ-ees at the end of 2006, 36.8% were working on a part-time basis, that is to say, fewer than 36 hours. In principle, all staff benefits are available and applicable to part-timers (G3: LA3).

Relationemployer/employeeWorking conditions for all ASN Bank employees are governed by the collective labour agreement entered into with SNS Reaal (G3: LA4). Apart from remuneration, this collective labour agree-ment also makes provisions for matters such as leave and the minimum term of notice for termi-nation of an employment contract (G3: LA5). In addition, the Management Board and the various managers seek to ensure frank communication and to create a culture which provides scope for everyone to voice their ideas. ASN Bank has a comprehensive style of management which means, amongst other things, that the various departmental heads bear primary responsibility for the optimum performance and welfare of their staff.

All employees received a proportionate share of profit in 2006. The amount which an individual member of staff receives represents a proportion of his salary. This proportion is determined on the basis of the annual profit growth achieved by SNS Reaal. In addition, many employees received a performance bonus in 2006 based on the results which they achieved.

HealthandsafetyDeclineofabsenteeism(G3:LA7)Within ASN Bank a great deal of attention is devoted to the reduction of absenteeism and the limitation of any influx into the WAO [(Inva-lidity) Insurance Act] regime. In this respect

the focus has been shifted to prevention. For instance, work break software has been installed on all computers to avoid RSI complaints. All employees were also allowed to undergo a health examination free of charge. They received tips and advice, if the findings presented grounds for this (G3: LA9).

The rates of absenteeism fell significantly in 2006 compared with the previous year. Whereas the absenteeism rate amounted to 7.1% in 2005, the corresponding figure for 2006 was 4.6%. As such, the absenteeism rate is at an acceptable level. In recent years discussions about absentee-ism have been held between the Management Board, managers and the workplace health and safety doctor on several occasions. In the course of such discussions it is possible for managers to specify which medical cases they wished to discuss further.

WorkplacehealthandsafetyAll ASN Bank employees are covered by the workplace health and safety service to which our parent company, SNS Reaal, is affiliated (G3: LA6). The company doctors of the workplace health and safety service are based in-house in a number of centres in the Netherlands. The work-place health and safety service conducts studies dealing with the climate and ergonomics, for example, if requested by SNS Reaal. In addition, they provide advice on monitoring absenteeism. Finally, regular consultations are held between personnel advisers and the company doctors about individual medical cases. All of these activities are directed by a workplace health and safety committee, which reports on them in a workplace health and safety annual report.

Costsinvolvedinworkplacehealthandsafety2006 EUR 18,815.00

2005 EUR 13,570.00

StaffrepresentationStaff representation at ASN Bank is regulated by the Onderdeelcommissie [Business Unit Com-

Senior Account Manager

“Money does not make you happy. This is something

that even bankers know. People only become happy,

if they belong somewhere, if they know that they are

welcome, can be themselves and can recognise their

own ideals, way of life or culture in others. Not belon-

ging is something which our brains treat in the same

way as physical pain. Not counting can be demotiva-

ting and can prevent you from fully developing your

talents.

“In the world of tomorrow the market opportunities

of processes and services which make people happy

will be discovered. In the world of tomorrow the

business sector will increasingly allow its customers to

experience the fact that what they have to say counts,

that their wishes and ideals are respected. Builders

will build after consulting future residents. Business

owners will share their ideas, and encourage and

value the involvement of their staff.

“In the world of tomorrow everyone will belong. Then

no one will be a nobody.”

The World of Tomorrow according to Dorine Putman-Devilee

2 �


mittee] (OC). The latter constitutes part of the SNS Reaal Works Council (WC) and meets with the Management Board every month. Numerous subjects were discussed in this context during 2006. A great deal of attention was devoted to staff satisfaction, two rounds of departmental restructuring, and a new system of position descriptions and job evaluations. In addition, consultations were held about matters such as workspace and absenteeism. Apart from this it was agreed with the Management Board that the OC would regularly call a meeting of all of the employees to discuss a wide range of subjects.

StaffmeetingsThese meetings are of an informal nature. They always revolve around a theme which is impor-tant to ASN Bank (and therefore indirectly for its customers), such as organisational developments or planning and budgeting.

Trainingandcareerdevelopment(G3:LA8)ASN Bank attaches a great deal of importance to its employees’ self-development and readily invests in this, not only to offer its staff the op-portunity to attend training but also to devote attention to their personal development. This is good for our employees but also for the organi-sation.

All of ASN Bank’s employees are assessed every year as part of the Prestatie en Competencie Beoordeling [Performance and Competency Appraisal] (PCB). One component of this PCB is a personal development plan. It presents staff the opportunity to achieve optimum self-development in the direction which they and the organisation prefer. Every year arrangements are made with regard to each employee’s deve-lopment targets and any concrete action to be taken to achieve them. In the course of the PCB discus sions are also held with staff about their prospects for career development (G3: LA12).

In 2006 EUR 40,000.00 was spent on training and courses. More than half of this was spent


2 8

on training and courses for individuals. The rest was spent on seminars and meetings for the management team.

Diversityandopportunities(G3:LA13)More women than men work at ASN Bank. In 2006 women accounted for 70% of the work-force. Of the total number of seven managers one is a woman. ASN Bank is seeking to employ more women in managerial positions. However, these efforts have not resulted in an increase in the number of women in managerial positions in 2006. In principle, the salaries of managers and other staff depend on the scale to which their position has been assigned. These salary scales are identical for men and women (G3: LA14).

BreakdownbygenderMen Women

Management Board 2 0Managers 4 1Office Staff 15 35Total 21 36

ASNBankandhumanrightsThe human rights performance indicators make it mandatory for organisations to report on the degree to which they consider human rights in the case of investments and their selection of suppliers and contractors. This policy also has an impact on staff, who need to be informed about, for example, human rights, the prohibition of discrimination, freedom of association, child labour, the rights of indigenous peoples, and forced and indentured labour.

It seems to be so self-evident: no hunger, health care, education, equal rights for men and wo-men, free enterprise, freedom for trade unions and press freedom. In this respect there is still a world to be won in many countries. ASN Bank always studies the human right’s policy of a country before it proceeds with investments.

By investing in businesses which are highly rated in respect of human rights ASN Bank helps to improve the situation governing such rights.

Most of the bank’s directs human rights achie-vements concern the manner in which it deals with its employees, the local population and its suppliers.

In view of the fact that ASN Bank only has offices in the Netherlands and consequently is governed by Dutch law, matters such as freedom of association and collective bargaining (G3: HR5), child labour (G3: HR6), and forced labour (G3: HR6) are regulated by law in the case of its employees. The law also prohibits discrimi-nation. In addition, the Arbeidsomstandigheden [Working Conditions Act] makes it mandatory for employers to act against any forms of undesi-rable behaviour. With regard to ASN Bank’s staff this policy is set out in the Protocol Ongewenste Omgangsvormen [Undesirable Behaviour Proto-col]. No cases of discrimination were recorded in 2006 (G3: HR4). All of this shows how our em-ployees’ rights are formally regulated. Naturally, apart from such formal regulations ASN Bank seeks to create a socially minded, open working environment for its personnel.

InvestmentandprocurementpolicyInvestments are of primary importance to ASN Bank as a financial service provider (G3: HR1 to HR3). All investments are assessed on the basis of the Special Investment Criteria (see Appendix I). Assessing them in relation to human rights constitutes an important aspect of these criteria. The Universal Declaration of Human Rights plays a major role in this respect. Businesses are assessed by staff that has been specifically trained for this purpose.

The G3 guidelines seek to establish how a busi-ness deals with the rights of indigenous peoples and any violations of them (G3: HR9). This is mainly intended for those businesses which operate in or do business in those countries that have a poor human rights record. Because ASN Bank as an office-based organisation is oriented towards the Netherlands, this guideline does not apply. Nevertheless, the bank naturally considers this aspect when selecting its investments.

2 9


Indirectsustainabilityperformance(G3:F1)Our performance as an office-based organisation has been described in relation to its social and environmental aspects in the sections above. It is referred to as “direct” performance. However, the manner in which investments are channel-led is particularly important in the case of every financial institution for the purposes of determi-ning its performance in terms of sustainability. This is referred to as “indirect” performance. It is precisely for this reason that in its capacity as an ethical bank ASN Bank adopts far-reaching measures in relation to its indirect performance.

For every euro that it invests ASN Bank seeks to achieve the best possible sustainability perfor-mance. To date this has been difficult to gauge. However, in the future we hope to have methods at our disposal which will enable us to assess our sustainability performance in the case of every euro. This report still uses process indicators to assess the bank’s indirect performance.

While it is true that these process indicators are not directly related to the ultimate results achieved in respect of the environment and human rights, they do clarify the manner in which ASN Bank guarantees the achievement of sustainability outcomes through its investments.

InvestmentsandsustainabilityAll investments (G3: F9) are assessed on the basis of the Special Investment Criteria. You will find the latter in Appendix I. Rescreening oc-curs once every three years. A business is asses-sed again, if there are grounds for doing so (G3: F6). The method that is used to assess invest-ments on the basis of our sustainability criteria (G3: F2 to F5) is also set out in Appendix I.

PolicyonvotingandsustainabilityShareholders can exert an influence on the policy (on sustainability or otherwise) pursued by their company by making use of their right to vote. ASN Bank uses this right in the case of its investments (G3: F11). At present we comply

with the voting policy of Institutional Share-holder Services (ISS) in the case of European shares and of the Vereniging van Beleggers voor Duurzame Ontwikkeling (VBDO) in relation to a number of Dutch companies. We intend to fine-tune our voting policy on sustainability even further in 2007 (G3: F10).

Dialoguewithbusinesses(G3:F7andF8)In view of the fact that ASN Bank already se-lects investments based on superior sustainabili-ty performance, it does not seem to be necessary for it to enter into a dialogue with businesses about their policy on sustainability. Neverthe-less, we make use of this tool, for example, in the case of the Small & Midcapfonds, with a precise aim of encouraging businesses to achieve better outcomes in respect of sustainability.

Engagement also occurs in the case of any company in which ASN Bank holds shares but which no longer satisfies our criteria due to a change in policy or because new information becomes available. In such a case ASN Bank enters into an active dialogue with the company concerned to improve its performance with re-gard to that specific point (engagement). Our aim is to do this in all cases. It may occur in written form, as part of a verbal dialogue or a combi-nation of both. How long this dialogue ensues will depend on the extent to which ASN Bank feels that the company is willing to consider it in greater depth.

Sustainableproducts(G3:F12)The purpose of all of ASN Bank’s products and services is to contribute directly or indirectly to the promotion of sustainability in our society without this occurring at the expense of the re-turns achieved by the bank’s customers. The in-terest which we pay to our customers compares favourably with that of our competitors. The re-turns achieved on our various investment funds are in line with market practice. You will find a list of our sustainable products in Chapter 2. The following tables reveal the financial movements in our savings and investment accounts.


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SustainablesavingsThe savings managed by ASN Bank rose by approximately EUR 661 million in 2006, an increase of as much as 33%. A large part of this growth was achieved through the ASN Opti-

NumberofAccounts SavingsunderManagement(inthousandsofeuros)

2006 2005 2006 2005ASN (Milieu)Sparen 83,113 87,147 489,511 547,583 ASN (Milieu)Sparen Extra 6,805 6,561 130,091 210,190 ASN Depositosparen 13,690 14,962 128,320 137,402 ASN Werknemerssparen 35,017 30,354 32,737 18,458

ASN Internetsparen 57,236 51,918 901,213 977,775

ASN Jeugdsparen 12,343 9,573 24,666 18,068 ASN Ideaalsparen 108,392 68,982 310,617 81,146

ASN Garantiebeleggen (savings component)

2,252 2,208 6,987

6,315

ASN Optimaalrekening 30,179 0 633,905 0Other 1,713 1,760 7,256 7,099 Total 350,740 273,465 2,665,303 2,004,036

SavingscoupledwithinterestdonationsASN Jeugdsparen, ASN Vrouwenspaardeposito, ASN Waddendeposito and the Renteschenking [Interest Donations] system deserve special attention. For every ASN Jeugdsparen ac-count which is opened ASN Bank donates a sum to Kinderstem, a children’s fund managed by Cordaid. This organisation provides sup-port to children throughout the world, who are forced to grow up in difficult circumstances, for example, homeless children in Cameroon. Kinderstem’s local partner, Chaine des Foyers Saint Nicodème (CFSN), offers refuge to children and the chance of working together to secure a bright future. Approximately 12,350 accounts have been opened since it was introduced at the end of 2002. In this was we have been able to donate almost EUR 302,000.00 to projects for homeless children.

TotalamountdonatedtoCordaid2006 EUR 74,939.002005 EUR 79,700.002004 EUR 55,640.002003 EUR 54,462.002002 EUR 37,147.00

maalrekening, a new type of savings which was introduced in 2006. The ASN Optimaalrekening offers a higher interest rate and the opportunity to invest in investment funds free of charge.

The interest paid on ASN Vrouwenspaardeposito and ASN Waddendeposito accounts is higher than the normal rate for deposit accounts with a term of five years. In the case of the ASN Vrouwenspaardeposito account holders donate interest to Vastenaktie and by doing so indirectly help women in developing countries in Africa, Asia, Latin America, and Central and Eastern Europe. Women are able to borrow capital from credit provider organisations in those regions to start up their own business. The holders of an ASN Waddendeposito account donate any additional interest to the Waddenvereniging and thereby provide assistance to projects which promote sustainable fishing.

Some of our customers want to donate the interest they receive (or part of it) to a worthy cause. We make this possible through our interest donati-ons system. In the table below you can see what amounts have been donated through the ASN Renteschenking system in recent years. However, the amount of interest donated has declined, which is largely due to lower interest rates.


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InterestDonations 2006 2005 2004 2003 2002Number of donors 3,044 2,868 3,309 3,664 3,671

Amount donated EUR 131,429 EUR 144,255 EUR 210,997 EUR 253,315 EUR 254,893

SustainableinvestmentsListodASNBankInvestmentFunds 2006 2005 Number of Fund Number of Fund

(in thousands of euros) shares Assets shares Assets

ASN Aandelenfonds 4,804 322,662 4,653 280,895 ASN Obligatiefonds 2,644 71,163 2,632 74,079 ASN Mixfonds 2,495 166,316 2,460 161,101 ASN Milieu & Waterfonds 6,553 112,015 2,672 35,721 ASN Small & Midcapfonds 1,044 28,543 0 0ASN Groenprojectenfonds 16,049 412,897 15,114 397,531 ASN-Novib Fund 1,033 53,011 690 35,194 Totalassetsinvestmentfunds 1,166,607 984.521

The assets of ASN Beleggingsfondsen have risen by 18.5% to EUR 1.167 million in the past year. ASN Beleggingsfondsen publishes its own an-nual report separately from this one.

OpennessandtransparencyASN Bank sets great store by openness and transparency. It is for this reason that we are publishing details of all of the bank’s investments including the amounts involved in this annual report. In Appendix II you will find a complete list of them broken down by sector (G3: F13). All of our investments are assessed on the basis of our Special Investment Criteria. You will find

these criteria in Appendix I. The funds’ invest-ments are included in the annual report of the relevant funds.

IndirectsustainabilityperformanceIn this section we discuss our indirect sustaina-bility performance. As mentioned in the intro-duction, ASN Bank would like to ensure that this performance can be measured more accurately. We intend to devote a great deal of effort to this in the years ahead. In addition, we have defined a number of targets. You will find them listed in the table on the following page.

Target Propor-tionofTotal

Tobeachievedby:

1. Assess investments in relation to sustainability 100% Achieved and to be maintained

2. Number of sustainable products 100% Achieved and to be maintained

3. Three-yearly rescreening of listed companies and countries in relation to sustainability


4. Three-yearly rescreening of the bank’s accounts recei-vable by sector in relation to sustainability


5. Engagement with “provisionals” in the case of the Small & Midcapfonds


6. Engagement with businesses which run the risk of no longer satisfying ASN criteria


7. Develop a method to gauge the performance of ASN Beleggingsfondsen in relation to climate change

- 31 December 2007

8. Reformulate human rights criteria - 31 December 2007

9. Formulate policy on climate change - 31 December 200710. Redefine voting policy in relation to sustainability - 31 December 200711. Exercise the right to vote 90% 31 December 2009


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As the table above reveals, we have opted for 90% in the case of a number of targets. In actual fact we are seeking to achieve 100% but there are always exceptions, with the result that this goal does not appear to be feasible. This is often due to a practical reason, for example, because something is not yet possible in technical terms (voting in all companies).

Notes on our indirect sustainability performance targets:1. this target remains unchanged;2. ditto;3. ditto;4. three-yearly rescreening of listed companies and countries in relation to sustainability – this refers to ASN Bank’s investments. In view of the fact that it is not necessary to rescreen at the level of individual businesses, rescreening occurs at the sectoral level every three years. This is because these sectors are particularly homoge-nous and reveal few differences at the level of individual businesses. The sectors concerned are ones such as water management boards, housing corporations and health care centres;5. the “provisionals” are those businesses which feature in the Small & Midcapfonds and which

have the potential to become leaders in terms of sustainability. These businesses are encouraged to do so through our engagement. Once they have improved their sustainability performance substantially after a period of two years, they ac-quire the status of “pass” in the investment fund;6. those businesses which have already been accepted for investment purposes may also gra-dually reach a situation in which they no longer satisfy ASN Bank’s Special Investment Criteria. In this case the bank engages especially with these businesses in a process which is designed to ensure that they improve their performance in this respect. If this does not happen, the business concerned is removed from the investment pool;7. a method will be developed. No sustainable investor is active at present, so ASN Bank will have to devise one itself;8. reformulation will occur in consultation with our stakeholders based on the UN’s Norms on the Responsibilities of Transnational Corpora- tions and Other Business Enterprises with Regard to Human Rights;9. policy on climate change – much has changed in relation to energy. Nuclear energy has again become a focus of attention and new sustaina-ble sources are emerging. ASN Bank therefore

wishes to review its approach to all of these developments and to incorporate its ideas in a new climate change investment policy;10. ASN Bank will be fine-tuning its voting policy in relation to sustainability performance;11. voting occurred within Europe in 2006 and will be extended to other continents in 2007. As it happens, ASN Bank ultimately intends to vote in favour of sustainability in relation to all of its shareholdings.

ASNBankisinvolvedinsocietyOrganisations have an impact on the commu-nities in which they are active. Interaction with many community organisations can involve risks. You might consider bribery and corrup-tion, improperly influencing the development of public policy, and monopolistic practices. How these risks are managed and dealt with is revea-led in society performance indicators.

MoneyispowerBusinesses can have an impact on the area in which they are based or operate. Large compa-nies, which handle a great deal of money, can acquire a powerful position. They therefore bear a major responsibility for the manner in which they use their influence. Do they pursue an ac-tive policy on integrity? How do they deal with conflicts of interest or political interaction? This section devotes attention to these aspects.

LimitedinfluenceASN Bank has its registered office in The Hague and a significant proportion of its staff live in the area (G3: SO1). In view of its small workforce and limited number of suppliers ASN Bank has a limited impact on the local community.

IntegrityandcorruptionOur staff is governed by a policy on integrity. It is partly designed to prevent conflicts of interest or corruption (G3: SO2). Staff regularly has their attention drawn to this policy (G3: SO3). Cor-ruption has never occurred within ASN Bank, with the result that no action has been required in this respect (G3: SO4).

NopoliticaldonationsASN Bank is not involved in politics directly or indirectly and does not make political donations (G3: SO6). If the bank is affected by political decisions, we will endeavour to exert some influence through lobbying (G3: SO5). Amongst other things, this occurred when the govern-ment wanted to abolish the Fiscale Groenrege-ling [Environmental Tax Relief Scheme] in 2002.

FormationofcartelsOrganisations may pose a threat to society by forming cartels or resorting to monopolistic practices. The G3 guidelines therefore enquire as to whether a business has had to contend with legal action on the grounds of unfair competi-tion, monopolistic practices or the formation of cartels. This is not relevant in the case of ASN Bank (G3: SO7).

ComplianceauditsASN Bank constantly analyses the reliability of its administrative structure and internal control system. In line with this the bank conducts so-called compliance audits by means of which it checks its effective compliance with the relevant legislation and regulations and internal policy (on sustainability and otherwise). Banks (more than “normal” businesses) have to contend with extensive legislation and regulations. Compli-ance audits are therefore very important to ASN Bank.

During 2006 additional attention was devoted to the implementation of customer due diligence procedures. The law stipulates that banks must be more familiar with their customers than other businesses. This requirement is primarily designed to ensure the more rapid identification of any customers who are involved in fraud (pertaining to tax or otherwise), money laun-dering and funding terrorism. In addition, our general regulations governing identification were tightened in 2006. ASN Bank has modified its systems to comply with the new legal require-ments, an onerous and time-consuming process.


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As a result of the introduction of more legislation (again, such as the Wet Financiële Dienstverle-ning [Financial Services Act], the amended Wet Toezicht Beleggingsinstellingen [Investment Institutions (Supervision) Act] and the Market Abuse Regulation) a great deal of attention was devoted to the amendment of internal procedu-res in 2006 and monitoring their operation to determine their reliability. These changes (and hence also our compliance-related activities) will continue in 2007.

ASN Bank has not had to contend with sanctions for non-compliance (G3: SO8).

ProductresponsibilityProduct responsibility performance indica-tors allow our customers to see the immediate implications that our products and services have in relation to health and safety, information and labelling, and marketing and privacy. Informa-tion provided about our internal procedures and the extent to which they are complied with (or not) provides an insight into our product respon-sibility and the performance that is required to flesh it out.

Noincidentsin2006ASN Bank only supplies products of a financial nature. In view of the fact that we are not a production company, we do not have to contend with regulations stipulating health and safety requirements (G3: PR1 and PR2). Requirements are stipulated for financial products by the rele-vant regulatory authorities: De Nederlandsche Bank (DNB) and the Netherlands Authority for the Financial Markets (AFM). Amongst other things, they determine what product information financial institutions are required to provide when supplying their products (G3: PR3). ASN Bank exercises due care in this respect and no incidents occurred in relation to the provision of information to our customers (G3: PR4) in 2006. It is therefore self-evident that no fines were imposed for contravening the relevant product legislation (G3: PR9).

CustomerprivacyIn addition to regulations governing the manner in which information is provided, DNB and the AFM stipulate requirements for financial insti-tutions in relation to the identification of their customers. ASN Bank therefore has a duty to request a great deal of information from its cus-tomers. This is not appreciated by everyone and we received a number of complaints (G3: PR8) about this in 2006. A policy on integrity, which focuses on the exercise of due care with customer information, is pursued within ASN Bank. The privacy of our customers is secured in this way.

PaneldiscussionsconcerningcustomersatisfactionASN Bank holds customer satisfaction para-mount (G3: PR5). During March and April 2006 we consulted our existing and potential custo-mers about their experience of banking matters, and their requirements and expectations in this respect. More than 70 people were involved in six in-depth panel discussions in Utrecht and The Hague covering numerous subjects. These discussions were greatly appreciated by both our customers and our staff. The overall impres-sion is that the services provided by ASN Bank are good but there is room for improvement in a number of respects.

A project team has been assigned the duty to use the most important findings to produce actual changes to the services that we provide. A num-ber of these improvements have been implemen-ted. Other measures are of a more fundamental nature and require careful preparation so as to facilitate their implementation in 2007.

Customer satisfaction naturally begins with our initial contact with an existing or potential customer: our marketing campaigns. Openness and transparency are therefore paramount in our marketing communications (G3: PR6). No incidents occurred in relation to our campaigns (G3: PR7).

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“What do I think the world of tomorrow should be

like? It should at any rate be a good deal more just, so-

cially minded and liveable than now. Still, this is what

I also thought more than 20 years ago, when I started

to work for ASN Bank. Yet the world of today has

not improved fundamentally compared with then….

“Certainly, progress has been made. In the end cruise

missiles did not enter the Netherlands. Apartheid

disappeared in South Africa. Fish are no longer

floating belly-up in the Rhine. There is more collabo-

ration between North and South, and East and West.

Nowadays, there are even investment funds offering

tax benefits which stimulate environmental projects

in our country and provide micro-loans in developing

countries. A general pardon has also been granted to

asylum seekers. Following years of cuts investments

are again being channelled into health and old age care

in our country, as well as in genuine environmental

policy, although still far too little but still. All of these

are causes which ASN Bank has supported or still

does and to which I am naturally happy to make my

little contribution.

“So what have we received in return during all this

time? A new type of apartheid in Zimbabwe, melting

ice caps, the Probo Koala and its short fuses, Moslem

extremists who hold the world in their extremist grip,

never-ending wars involving an enormous amount of

suffering in Iraq, Afghanistan and Darfur. Nuclear

energy has not disappeared despite Chernobyl. We are

building new coal-fired power stations, while interest

groups sometimes literally fight against wind turbines.

Pension funds and charities invest in cluster bombs

and landmines. Child labour is growing and human

rights are still disregarded. Fair trade with developing

countries remains largely confined to the worthy cau-

ses of aid shops. Bird flu and swine fever are prevalent

thanks to factory farming. Even a ‘civilised’ country

such as Iceland is again hunting whales.

The World of Tomorrow according to Henk de Ligt

“Is it enough to leave you despondent? No, never that

because there is much in the world of yesterday, today

and tomorrow which revolves around money, and

there is still as much to do. Every change, however

small it may be, is worth fighting for. More or less

socially responsible business is now even part of the

corporate strategy pursued by multinationals, most of

them anyway. Thanks to the Internet and the media

the world has also become a bit more transparent.

Abuses are speedily revealed to a public audience that

is becoming increasingly aware, that most certainly

realises that the decisions made today can ultimately

produce a fundamentally better world tomorrow. It is

for the appropriate decisions – yours, those made by

ASN Bank, and mine – that I will also be devoting

myself to with heart and soul in the years ahead!”


� �

Product Manager


� 6

ASNJeugdsparenaccountholdergoestoCameroonwithKinderstem

100 million homeless children: the chance of giving them some help was one which ASN Jeugdsparen account holders did not allow to pass them by. 50 young people of 11, 12 and 13 years of age registered to travel to Cameroon as an ASN Jeugdsparen ambassador to compile a photographic report of the Kinderstem homeless children project. The children’s ambassador was chosen on Saturday, 8 April 2006.

The ASN Jeugdsparen ambassador photographed homeless children in Cameroon.“I DO NOT KNOW WHETHER I AM CAPABLE OF EXPLAINING WHAT IT WAS REALLY LIKE.”“My most wretched photograph is of a young boy lying asleep in the street,” says Myrte van der Heijden (12). As the ASN Jeugdsparen ambassador she produced a photographic report of homeless children in the West African country of Cameroon. She spent four days carrying a camera on her shoulder through Douala, a city of a million people.

“I would not find it pleasant to have to search for food in a landfill,” says Myrte van der Heijden from Deurne. During her trip to Cameroon she saw it all through her own eyes: homeless boys scrounging around in a rubbish dump in search of anything usable. It is a hot, clammy evening and the shopping streets of Douala are dark. A light shines from the windows of an upstairs dwelling, where people are seated on chairs in front of a television set. Down below in the street right next to the front door a homeless child lies asleep. A little further on at the rubbish dump another child fishes out some-thing from the waste. He has a wild glint in his eyes. Perhaps he has taken drugs or has been sniffing glue. None of the children at the rubbish dump pay any attention to the small, fair-haired girl who bravely stands there taking photographs.”


� �

Accountsfor2006

Balancesheet

Financial�

(in thousands of euros before the distribution of profit)

31 December 2006 31 December 2005

ASSETS

Investment 2,700,023 2,127,931

Fixed assets 359 344

Liquid assets 42,095 28,073

Other assets 63,306 70,158

Totalassets 2,805,783 2,226,506

LIABILITIES

Equity attributable to shareholders 39,402 87,871

Provisions -5,282 18,933

Savings under management 2,665,303 2,004,036

Other liabilities 106,360 115,666

Totalliabilities 2,805,783 2,226,506


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Profitandlossaccount (in thousands of euros)

2006 2005

INCOME

Net interest 18,331 15,830

Other income 6,399 5,926

Totalincome 24,730 21,756

EXPENDITURE

Staff costs 4,479 4,137

Other operating expenses 10,626 9,743

Totalexpenses 15,105 13,880

Operating profit before taxation 9,625 7,876

Taxation 2,849 2,481

Netprofitaftertaxfortheperiod 6,776 5,395


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Notestotheaccountsfor2006

GeneralSince 5 January 1998 ASN Bank N.V. has been a full subsidiary of SNS Bank N.V., whose annual accounts are lodged with the companies register in ’s-Hertogenbosch (G3: 2.6). The company’s figures are included in the consolidated annual accounts of SNS Bank N.V. KPMG Accountants have issued an auditor’s report in respect of those annual accounts. Unless otherwise indicated, all amounts are stated in thousands of euros.

Principlesofvaluation

InvestmentsAll investments are stated at their market value. In the case of private loans and mortgages the market value is equal to their amortised cost. Bonds are stated at their fair value and any gains and losses due to changes in their fair value are accounted for in shareholders equity if unreali-sed, and as part of the investment result in the profit and loss account if sold.

FixedassetsThis item only consists of business equipment. The latter is stated at its historical cost less straight-line depreciation based on its estimated useful life.

ProvisionsThe provision for deferred taxes is for taxes which will need to be paid in the future in rela-tion to taxable temporary discrepancies. These deferred taxes are stated at their nominal value.

IncomeandexpenditureIncome and expenditure are assigned to the period to which they relate. Losses are accounted for when they become known, while income is only accounted for, once it has been realised.

TaxTax is calculated over the result having regard to any tax facilities. ASN Bank N.V. and its related undertaking, ASN Beleggingsinstellingen Beheer B.V. constitute part of the SNS Bank N.V. tax unit and remit the relevant company tax calculated each year.

Financialinstruments

InterestrisksThe company is exposed to interest risks. These risks are managed for SNS Bank as a whole.

CreditrisksDisregarding any security obtained by the maxi-mum credit risks involved in the financial assets on the balance sheet date consist of the nominal value of the accounts receivable accounted for in the balance sheet. Given the nature and term of the accounts receivable and/or the security that has been obtained, these credit risks are limited. There are no major concentrations of credit risks.

ForeignexchangerisksThere were no assets stated in a foreign currency on the balance sheet date. Consequently, there are no foreign exchange risks.

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(in thousands of euros before the distribution of profit) 2006 2005

Investments

The investments may be broken down as follows: State loans 1,030,987 656,818Municipal and provincial councils 188,337 99,108Banks 113,944 125,210Residential construction 193,957 200,755Health and old-age care 181,169 102,727Education, culture and leisure 8,604 9,158Water boards and energy companies 246,020 206,987Mortgages 571,834 565,975Shares 15,043 14,646Miscellaneous 150,297 146,734

Totalinvestments 2,700,192 2,128,118Provision for impairment -169 -187 Total 2,700,023 2,127,931

Notestothebalancesheet


These investments are broken down by accounts receivable in Appendix II.

At the end of 2006 there were no outstanding loans or advances which had been provided to directors or supervisory directors (2005: 0).

Otherassets

Interest receivable 59,880 48,029Prepayments and accrued income 3,426 22,129

63,306 70,158

Equityattributabletoshareholders

Share capital 11,345 11,345Share premium reserve 15,891 15,891General reserve 21,319 15,925Revaluation reserve -15,929 39,315Profit 6,776 5,395

39,402 87,871

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2006 2005Provisions

Deferred taxes -5,282 18,933

-5,282 18,933

Following the introduction of the IFRS interest-bearing financial instruments are stated at their market va-lue. The revaluation of these interest-bearing financial instruments has produced an unrealised result. The latter has been used to establish a deferred tax provision equivalent to the applicable corporation tax rate.

Otherliabilities Mortgage account 48,430 44,414Private borrowings 1,343 2,244Deferred income and accrued expenses -5,246 23,238

44,527 69,896



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2006 2005Netinterest Interest received on investments 132,210 86,198Interest paid to customers 67,044 50,883Interest risk cover 46,835 19,485

Total 18,331 15,830

Interest risks are covered at the group level. ASN Bank pays its parent company a fee for this purpose. Any capital gains realised on investment portfolio sales are accounted for directly in the result and are set off against this fee.

Otherincome Commission received 12,856 9,636Commission paid -6,618 -4,373Earnings on securities 161 363Miscellaneous income 0 0

Total 6,399 5,926

Other income largely consists of commission which ASN Bank receives from its investment customers for managing its investment funds and that which it pays to SNS Asset Management for the management of its assets. An increase in the assets of ASN Bank and its investment funds resulted in a rise in commission received and paid in 2006.

Labourcosts

Salaries and wages 2,604 2,521Pension charges 550 546Other social security charges 280 259Other labour costs 1,045 811

Total 4,479 4,137

The average number of staff amounted to 50.3 in 2006 (2005:47.6). All of them work in the Netherlands.

The remuneration (including pension charges) of the current members of the Management Board is as fol-lows (G3: 45). The members of the Supervisory Board do not receive any remuneration. Profit sharing and bonuses are related to the results achieved.

Notestotheprofitandlossaccount


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Periodic Future Severance Profit- Total Remuneration Remuneration Pay sharingand BonusesE.P. Goudswaard 119 27 0 31 177J.E. Jansen 106 24 0 18 148

2006 2005Otheroperatingexpenses Office and general expenditure 7,215 6,145Marketing costs 3,303 3,454Depreciation 89 80Write-downs 19 64

10,626 9,743

Office and general expenditure (paper and postage) have increased sharply due to a substantial rise in the number of customers in 2006.

Tax

Taxable profit 9,625 7,876Effective tax rate: 29.6% (2005: 31.5%) 2,849 2,481

Provisionsofthearticlesofassociationconcerningtheappropriationofprofit

The appropriation of profit is regulated by Article 34 of the articles of association. This article stipulates the following.1. Any profit shall be placed at the disposal of the general meeting.2. The company may only make disbursements to shareholders in so far as its shareholders equity exceeds its issued capital plus any reserves which it is required to maintain by law.

Appropriationofprofit

It is proposed that the profit of EUR 6,775,789.00 achieved in 2006 be added to shareholders equity.

The Hague, 1 April 2007

Management Board Supervisory Board

E.P. Goudswaard M. Menkveld (Chair)J.E. Jansen C.H. van den Bos B.A.G. Janssen M.E. Straub M.W.J. Hinssen H.K. Kroeze


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EighthEthicalInvestmentDayInspiration for a positive future (whoever controls the youth, controls the future): quoting this wis-dom from the Handbook for Optimists ASN director Jeroen Jansen set the tone for the eighth Ethical Investment Day held in the Royal Dutch Tropical Institute in Amsterdam on 27 October 2006. For a brief moment there was no room for doom scenarios but ample scope for a positive future.

To be the first person to set foot on the North and South Poles following a tough trek on foot lasting many months: what many considered to be impossible, the Briton, Robert Swan, achieved. The scientist, Niek Lopes Cardozo, still has to be shown to be right but he is a firm believer: in roughly 40 years’ time nuclear fusion will constitute an inexhaustible source of sustainable energy. Although they are two totally different people, they do not allow themselves to be guided by “traditional truths” but by the conviction that the impossible is possible if you simply remain determined and believe in yourself. It is therefore no coincidence that both were invited to feature as speakers on the occasion of the eighth Ethical Investment Day.

It is precisely because we need these types of people, Jeroen Jansen tells his audience of 450 people during his introduction. He presented the following proposal to his audience: let us open ourselves to an optimistic future without any prejudices or reservations, “because predicting the apocalypse has never resulted in positive action directed towards the future, let alone inspire our present generation of young people”.


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AppendixI–SpecialInvestmentCriteria** adopted on 22 April 200�

The Special Investment criteria and approach implement the mission and business principles of ASN Bank. They apply in full to the ASN Aandelenfonds, ASN Obligatiefonds, ASN Mixfonds and the investments of ASN Bank. The exclusion criteria only apply to the ASN Milieu & Waterfonds and commercial loans and advances by ASN Bank, in view of the nature of the investments and/or loans and advances. The Regulation on Green Projects applies to the ASN Groenprojectenfonds. The Regulation on Social and Ethical Projects 2004 applies to the ASN-Novib Fonds.

1.aExclusioncriteria

GeneralgroundsforexclusionASN Bank does not believe it is possible to make a comprehensive list of ethical and sustainable criteria that industries, enterprises and other debtors have to meet. As well as the specific cri-teria, which in the analysis lead to a factual and quantitative assessment, there is also always a qualitative assessment of ethics and contribution to sustainable development. In certain cases, the ASN Selection Committee1 will make a tempo-rary or permanent exclusion, if, in its opinion, the Mission Statement and business principles of ASN Bank are not met.

1.bSpecificgroundsforexclusion

Nuclear energy

• Companies which generate nuclear energy, ope-rate nuclear power stations or distribute or trade in nuclear products.

• Companies which focus specifically on supplying this industry.

Arms

• Companies which develop and produce, or trade in any type of weapon whose direct purpose is to destroy life, nature or property.

• Companies which develop, produce, distribute or trade in parts or components specifically for the production of weapons of destruction.

Genetic engineering

• Companies that apply genetic engineering to plants or animals in the field of food or non-food.

• Companies that apply genetic engineering to plants or animals for medico-pharmaceutical purposes will be excluded, unless a medical problem can only be remedied, at the time of screening, by using genetically modified plants and/or animals. This exception will only apply if genetic engineering is used under controlled circumstances that limit the risks for people and the environment as far as possible.

Tobacco

• Companies that produce tobacco products.

• Companies that get the greatest part of their turnover from the sale, distribution or trade in tobacco products.

Appendices

1) The ASN Selection Committee consists in any event of the Management Board of ASN Bank VN and the Management Board of

ASN Beleggingsfondsen NV. The members are listed on www.asnbank.nl.


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Gambling/games of chance

• Companies that develop or produce games of chance.

• Companies that run casinos.

Fur, whaling, exotic and/or protected animal

species

• Companies directly involved in hunting and/or trading in:

fur; whales; exotic and/or protected animal species.

Tropical hardwoods

• Companies cutting and/or trading in non- sustainable tropical hardwoods.

Palm oil

• Companies setting up or running non- sustainable palm-oil plantations.

Bio-industry

• Companies operating in animal hostile bio- industry.

• Companies focusing as a supplier in developing and maintaining animal hostile bio-industry.

Animal testing

• Companies which use animal testing to develop non-medical products.

• Companies which are required to use animal tests by law for medical production, but which do not have a transparent policy on this and are not developing alternatives.

Breaches of legislation, codes of conduct, scandals and

corruption

• Companies which are shown to be systematically guilty of:

corruption or encouraging others to commit corruption;

breaches of legislation; breaches of in-house and/or industry-specific

codes of conduct; involvement in financial, environmental and/

or social scandals.

Human rights, labour rights, child labour, sexual exploi-

tation

• Companies guilty of: forced labour; obstructing free trade union activities; maintaining unsafe working conditions; systematic underpayment of employees; systematic discrimination by race, gender or

religious conviction; sexual exploitation and/or involvement in

exploiting pornography; other types of systematic human rights abu-

ses.

• Companies which systematically breach inter-national (ILO and OECD) guidelines on labour rights and child labour.

Dictatorial and/or repressive regimes

• Although assessment will be company- specific, in certain cases the political situation in a country may be cause to exclude any company operating there. Attention will be paid to the fol-lowing factors when deciding whether a country

Kindredspirits

Wubbo Ockels, Senior Lecturer in Sustainable

Technology

“YOUTH AND MOTHERS MUST BRING

PRESSURE TO BEAR.”

We do not have energy problems in the Netherlands,

argues Wubbo Ockels, Senior Lecturer in Sustainable

Technology, but we do have an indecisive govern-

ment which does not dare to invest in technological

innovation.

Your fascination for sustainability, was it something you developed at an early age?“No, not really. During my studies and postgraduate

studies I specialised in nuclear physics. After that I

landed up in space by coincidence. At the time I was

more interested in the mission and the experiments

that were to be conducted. My feelings for the earth

only developed after my trip to space. I realised that

our planet could be compared to a large spaceship,

which you therefore really need to look after very

well.”

20september 2006Nieuwsberichten van de ASN Bank

Wubbo Ockels:

‘Nederland heeft geen energieprobleem’

Duurzame Productweken van start!

Zeven keer zo duurzaam mogelijk van A naar B

Wubbo Ockels:

‘Nederland heeft geen energieprobleem’

is in this category: condemnation of countries by the Security Council for violating human rights, direct involvement in violations of human rights or sanctioning such violations, non-compliance with ILO and OECD guidelines.

Moral accountability

• Companies which do not acknowledge any moral accountability for the environment, human rights, labour rights and child labour.

• Companies who in view of their moral accoun-tability are not transparent or do not show wil-lingness to accept accountability.

2.Acceptancecriteria

2.aGeneralacceptancestandards

ASN Bank does not believe it is possible to make a comprehensive list of ethical and sustainable criteria that industries, enterprises and other debtors have to meet. As well as the specific cri-teria, which in the analysis lead to a factual and quantitative assessment, there is also always a qualitative assessment of ethics and contribution to sustainable development.

2.bSpecificacceptancecriteria

Companies are assessed on dozens of economic, social and environmental indicators (if possible company and industry specific ones) with respect to performance in ethical business. Experience and new insights lead to regular updating of the specific environmental and social indicators.

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Depending on the nature of the business or industry, the following criteria are in any event conditions for deciding whether or not a busi-ness, or other debtor is accepted in the invest-ment universe.

Environment

• Companies must demonstrate that they pursue an active and integrated environmental policy. The following factors will be assessed: the nature of the raw materials used; the nature of the end products; the energy consumption; the use of clean water; the nature of the emissions released and the solid waste resulting form production; the scope for and the extent of recycling of the end product. The assessment of the company will not only take into account the existing environ-mental situation, but also the approach by and in the company to bring about change and improve-ment in this respect.

Human rights

• Companies must show that they play a positive role in the field of human rights in those coun-tries where human rights are insufficiently ob-served and where they have a place of business. In order to assess whether a company plays a positive role, a number of questions, which have partly been drawn up by Amnesty International, are put to the company concerned, including: Does the company obtain information on the human rights situation and how does it use this information? Is there a code of conduct setting out the company’s commitment to human rights? Does the company offer its employees protection against violations of human rights?

Social

• Companies must explain their social policy. The aspects that will be assessed will include the policies relating to women, ethnic minorities and disabled people, terms and conditions of employ-ment and working conditions.

Developing countries

• In the case of companies that have any of their activities in developing countries, eligibility for

investment will be conditional upon the imple-mentation of an environmental policy. An as-sessment will be made of the extent to which the company contributes to the sustainable, people- and environmentally-friendly development of a country.

Genetic engineering

• Companies must declare whether, and if so how, they apply genetic engineering. Companies that use this technology must have a policy on genetic engineering and must demonstrate that it is transparent. Application of genetic engineering to micro-organisms will be considered accepta-ble provided that it takes place under controlled conditions that limit the risks for people and the environment as far as possible and provided that a demonstrable contribution is made to sustain-able development and/or corporate social respon-sibility.

3.Approach

3.aCompanyanalysisThe sustainability performance of companies is analysed by specialised sustainability analysts. The analysis is as far as possible at industry level and by region. In principle only the best perfor-ming companies in each industry are eligible for selection. Companies outside the industry studies may be eligible on the basis of individual perfor-mance and setting an example in corporate social responsibility. Sector studies and individual business profiles are submitted for assessment to the ASN Selection Committee.

3.bCountryanalysisThe starting point for selecting countries for fixed-income investments (government bonds) is that they belong to the OECD (Organisation for Economic Co-operation and Development). The countries are classified by sustainability policy. Policy on education, health care, defence ex-penditure, development aid, combating poverty, environmental policy and economic co-operation are covered. Countries are ranked using indices by reputable institutions such as the United Nati-

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ons Worldwide Fund for Nature, Human Rights Watch and universities.

3.cAnalysisofotherdebtorsAll other debtors are at least tested for the exclu-sion criteria and the ASN Business Principles.

3.dInvestmentsuniverse

• Changes in the investment universe are made by the ASN Selection Committee.

• As well as the relative performance at industry level, companies are assessed in the ASN Selec-tion Committee particularly on the ASN specific exclusion criteria and general criteria. In practise, this means that the best performing business in each industry is not automatically regarded as good enough to be included in the investment universe. The absolute performance must at least meet the above criteria. The ASN Selection Committee will also always assess whether the activity of the business or other debtor contribu-tes to ASN Bank’s mission.

• Companies in the investment universe are reana-lysed at least once every 36 months, or sooner if necessary.

• Outside the industry analysis, the ASN Selection Committee may include individual companies and other debtors who demonstrate special per-formance in environmental policy, social policy, human rights, animal welfare or child labour (and thus act as an example to others) in the investment universe.


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AppendixII–Breakdownofinvestments

AccountsReceivable Amount

StateloansNetherlands 204,783Germany 483,211France 341,200Austria 1,793

1,030,987MunicipalandprovincialcouncilsMunicipal Council of Epe 136Municipal Council of Hengelo 7,000Municipal Council of Hoogezand Sappemeer 1,361Municipal Council of Landgraaf 908Municipal Council of Thorn 45Municipal Council of Veere 1,009Municipal Council of Venlo 9,076Municipal Council of Almere 15,000Municipal Council of Pijnacker 18,000Municipal Council of Hellendoorn 5,850Municipal Council of Groningen 23,500Municipal Council of Vlaardingen 5,000Municipal Council of Zwolle 7,500Municipal Council of Vlissingen 5,000Municipal Council of Papendrecht 8,750Municipal Council of Leiden 10,000Municipal Council of Elburg 5,000Municipal Council of Schijndel 6,000Municipal Council of Apeldoorn 5,000Municipal Council of Nieuwegein 11,000Municipal Council of Renkum 8,500Municipal Council of Enschede 15,000Municipal Council of Zaanstad 19,702

188,337BanksBank voor Nederlandse Gemeenten 20,781Nederlandse Financieringsmaatschappij voor Ontwikkelingslanden 28,614Nederlandse Investeringsbank Ontwikkelingslanden 23,654Achmea Hypotheekbank 449Nederlandse Waterschapsbank N.V. 27,909Assurantie Concern Stad Rotterdam 253Nationale Investeringsbank 8,805Friesland Bank 3,479

113,944


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AccountsReceivable Amount

ResidentialconstructionAlgemene Nederlandse Woningstichting, Amersfoort 464Algemene Woningbouwvereniging The Hague, The Hague 4,538Centrale Woningbouwvereniging Gooiland, Hilversum 3,497Dongense Woningbouwvereniging, Dongen 2,099Leidse Studentenhuisvesting 1,021LHBB Bouwstichting voor Ouderen, De Bilt 1,162Maastrichtse Woningbouwvereniging Beter Wonen, Maastricht 4,538Patrimonium, Amsterdam 16,205Stichting de Alliantie 14,953Stichting Portaal 10,000Stichting Samenwerkende Ouderenzorg 3,638Stichting Shri Sanatan Dharm Sabha, The Hague 35Stichting Sociale Woningbouw en Beheer 8,000Stichting Verantwoord Wonen, Nieuwerkerk a/d IJssel 2,950Stichting Verzorging Spaans hof 664Stichting Vitalis 287Stichting Volksh. Groep Wooncompagnie 155Stichting Volkshuisvesting Zevenaar, Zevenaar 453Stichting Waterweg Wonen 11,000Stichting Wonen Leerdam 5,400Stichting Wonen Wierden-Enter 3,500Stichting Woningbouw Onstwedde, Onstwedde 34Stichting Woningbouwvereniging Verstandelijk Gehandicapten Betuwe, Zaltbommel 81Stichting Woonservice het Adres, Brunssum 4,538Stichting Woonzorg Nederland 11,236Weststellingwerf 5,000Woningbouwvereniging Land van Rode 3,545Woningbouwvereniging S.A.V.O. 1,771Woningbouwvereniging Beter wonen 372Woningbouwvereniging Combinatie 77 324Woningbouwvereniging Duinstee, Bergen 449Woningbouwvereniging Het Oosten 6,000Woningbouwvereniging Land van Pepijn 1,896Woningbouwvereniging Noord-Limburg 1,110Woningbouwvereniging Ons Belang 244Woningbouwvereniging Openbaar Belang 1,276Woningbouwvereniging S.A.V.O., Zwolle 602Woningbouwvereniging St. Laurentius 11,594Woningbouwvereniging Thuis Best 238Woningbouwvereniging Volksbelang, Bergen 302Woningbouwvereniging Winschoten 1,946Woningstichting Arcen & Velden 310Woningstichting Geertruidenberg 908Woningstichting Gilze-Rijen 1,820


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AccountsReceivable AmountWoningstichting Inter Pares, Schoonebeek 4,538Woningstichting Maartensdijk 281Woningstichting Sha, Heerlen 5,204Woningstichting Sint Servatius 1,751Woningstichting Vooruitgang 2,898Woningstichting VZOS, The Hague 9,789Woonfonds Holland, Tilburg 1,389Woongroep Holland 13,000Woonstichting Leeuwarden-Leeuwarderadeel 952Woonstichting Vaals 4,000

193,957Healthandold-agecareAcademisch Medisch Centrum 20,000Almeerse Reddingsbrigade 45GGZ Oost Brabant 10,000Othmarus Stichting, Helmond 296Stichting Saffier, The Hague 154Regionale Stichting Zorgcentra De Kempen, Eindhoven 737RIVAS Zorggroep Gorinchem 990Stichting Adesse zorg voor mensen met een verstandelijke handicap, Boxtel 986Stichting de Haven, The Hague 107Stichting Activiteiten Centra Lichamelijk Gehandicapten, Aalsmeer 515Stichting Adhesie GGZ Midden-Overijssel, Almelo 882Stichting C.E. van Koetsveld, Zwolle 613Stichting D.A.G. Friesland, Drachten 1,601Stichting De Blink 7,200Stichting de Driestroom, Arnhem 355Stichting De Vlasborch, Vught 1,909Stichting De Stromen Opmaat Groep 6,807Stichting Evean Zorg 2,777Stichting Groenhuysen, Roosendaal 289Stichting Het Gors, Goes 1,689Stichting Het Spittaal, Zutphen 1,407Stichting Humanitas, Nieuwegein 303Stichting Interakt Hengelo 1,373Stichting Jan Baptist, Maastricht 846Stichting Nieuw Groenhoven, Leiden 2,164Stichting Odion, Oostzaan 859Stichting Protestant Chr. Ziekenhuis AKIZIA 13,000Stichting Psycho-Medisch Centrum Vijverdal, Maastricht 1,392Stichting Revalidatie Centrum Roessingh, Enschede 282Stichting Revalidatie Zuid-Oost Brabant, Eindhoven 885Stichting Revalidatie-Centrum ‘De Hoogstraat’, The Hague 13Stichting Rode Kruis Ziekenhuis 5,000Stichting De Saxenburgh Groep 4,999Stichting Waterlandziekenhuis, Purmerend 678


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AccountsReceivable AmountStichting De Leite, Assen 2,428Stichting West-Brabant, Bergen op Zoom 2,217Stichting Woonvorm Lichamelijk Gehandicapten IJmond, Castricum 827Stichting Woonzorg Twente, Hengelo 540Stichting Zorgcentrum de Kempen 9,775Stichting Zuid Veluwezoom, Bennekom 775Stichting Antionius Ziekenhuis 9,070Parnassia Psycho Medisch Centrum 10,269Zeeuws Radio-Therapeutisch Instituut 4,706Academisch Ziekenhuis Maastricht 9,500Zorggroep Noorderbreedte 4,500Stichting Medisch Spectrum 6,930Stichting Amphia 6,650N.C.H.B. 1,496De Uiterton, Vlieland 561Algemene Stichting Bejaardenzorg 6,831Stichting Bejaardenzorg Maasdriel, Maasdriel 81Stichting Katholiek Verzorgingstehuis 3,464Stichting Wooncentrum voor Ouderen Huize Herfstzon, Goor 1,254Universitair Medisch Centrum Groningen 5,000Timanshof Stichting Roosebrink Wageningen 3,142

181,169Education,cultureandleisureStichting voor Christelijk Beroepsonderwijs en Volwasseneducatie, Leeuwarden 12Ver. voor Chr Voorbereidend Wetensch. en Algemeen Voortgezet Onderwijs, Doorn 9Stichting Amsterdams Mytyl-Dagverblijf en Internaat, Amsterdam 47Koninklijke Harmonie De Adelaar, Weesp 24Stichting Innovatie Bibliotheek Vlissingen 1,928Stichting Texels Museum, De Koog 303Vereniging tot Behoud van Natuurmonumenten in Nederland, ‘s Graveland 6,281

8,604WaterboardsandenergycompaniesDuinwaterbedrijf Zuid Holland 460Hydron Flevoland (water pipes) 2,269N.V. Watertransportmaatschappij Rijn Kennemerland Amsterdam 13,932N.V. Waterwinningbedrijf Brabantse Biesbosch, Werkendam 436N.V. Duinwaterleiding Zuid-Holland, Voorburg 907N.V. PWN Waterleidingbedrijf Noord-Holland 13,595N.V. Waterleiding Mij Limburg, Maastricht 3,099N.V. Waterleidingmaatschappij Oost-Brabant 13,626N.V. Waterleiding Drenthe 3,557N.V. Waterleiding Noord Holland 9,090N.V. Hydron Midden-Nederland, Utrecht 11,338N.V. Waterwinningsbedrijf Brab Biesbosch 901N.V. Prov. Waterleidingbedrijf Noord-Holland 4,541Waterleidingmaatschappij Overijssel 1,673


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AccountsReceivable AmountWaterleidingmaatschappij Flevoland 457Waterschap Groot Salland 10,000Hoogheemraadschap Holland Noord 8,000Hoogheemraadschap Stichtse Rijnlanden 8,000Waterschap Rijn en IJssel 20,000Waterschap Friesland 15,000Hoogheemraadschap van Rijnland 12,000Waterschap De Dommel 15,000Waterschap Zeeuwse Eilanden 13,000Waterschap Roer en Overmaas 11,520Waterschap Rivierenland 20,000Waterschapsbedrijf Limburg 15,000Regeling CAIW Westland 15,000NUON 3,619

246,020MortgagesAlgemene Spaarbank voor Nederland ASN N.V. 121,834Bouwfonds Limburgse Gemeenten 450,000

571,834SharesASN Huisfondsen 14,965Oikocredit 74Triple Jump 4

15,043MiscellaneousColonnade 37,692Oce 4,512Caisse D’amort Dette Soc, France 25,667European Company for the Financing of Railroad Rolling Stock (EUROFIMA), United Kingdom

16,834

Reseau Ferre De France, France 15,460Unedic, France 18,474Land Nordrhein-Westfalen, Germany 9,797Infrastrutture, Italy 10,175Blueorchard Loans 4,515DWM Microfinance XXEB 5,068Aid shops 97Miscellaneous 2,006

150,297

Totalinvestments 2,700,192


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Summaryofinvestments

Investments 2006 2005State loans 1,030,987 656,818Municipal and provincial councils 188,337 99,108Banks 113,944 125,210Residential construction 193,957 200,755Health and old-age care 181,169 102,727Education, culture and leisure 8,604 9,158Water boards and energy companies 246,020 206,987Mortgages 571,834 565,975Shares 15,043 14,646Miscellaneous 150,297 146,734Totalinvestments 2,700,192 2,128,118


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AppendixIII–GRIGuidelines(G3)

n.m.–notmaterial:thisindicatorisnotmaterialforASNBankasitonlyreferstoactivitiesrelatedtoitsonlyofficen.a.–notavailableasdataarenotcollectedbecauseASNBankseesthemasnotmaterialforthisreportatthismoment.

G3Item 2006Report(referencestoG3sections) MaybeFound onPage 1)Strategyandkeyimpacts 1.1 CEO statement 2 1.2 Key impacts, risks and opportunities 5 2)ASNBankprofile 2.1 Company’s name 8 2.2 Most important brands and products 8 2.3 Organisational structure 11 2.4 Location of office 8 2.5 Number of countries in which the company is active 8 2.6 Legal structure 39 2.7 Markets 8 2.8 The company’s scale (various key figures) 12 2.9 Important changes 12 2.10 Awards won n.a. 3)Reportparameters 3.1 Reporting period 2 3.2 Date of most recent (or previous) report 2 3.3 Reporting cycle 2 3.4 Contact point for questions 3 3.5 Process for defining report content 2 3.6 Boundary of the report 2 3.7 Limitations on the scope of the report 2 3.8 Basis of report 2 3.9 Assumptions used in the case of indicators (protocols) 3 3.10 Explanation of changes in reporting process 3 3.11 Changes in reporting process 3 3.12 GRI table 2 3.13 Assurance 3 4)Governance 4.1 Governance structure 4 4.2 Chair of Supervisory Board 63 4.3 Independent directors 13 4.4 Shareholders’ influence 42 4.5 Linkage between compensation and the performance of the organisation’s governance body (also in relation to sustainability) 42 4.6 Avoiding conflicts of interest 13


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G3Item 2006Report(referencestoG3sections) MaybeFound onPage 4.7 Qualifications of governance body members also in relation to corporate social responsibility 13 4.8 Codes and standards 13 4.9 Procedures for §4.8 13 4.10 Evaluation of performance n.m. 4.11 Precautionary principle 13 4.12 Charters subscribed to or endorsed 13 4.13 Memberships 13 4.14 List of stakeholders 17 4.15 Selection of stakeholders 17 4.16 Frequency and form of stakeholder engagement 17 4.17 Achievements of stakeholder engagement 18 5)Managementand5)performanceindicators

Economic EC1 Added value achieved 12 EC2 Financial risks due to climate change 20 EC3 Pension plan cover (defined benefit plan obligations) n.a. EC4 Financial assistance received from government 20 EC5 Ratio of entry level wage to minimum wage 20 EC6 Suppliers: policy, practices and spending 20 EC7 Recruitment of personnel 20 EC8 Investments in infrastructure 20 EC9 Important indirect economic impacts n.m. Environmental performance EnvironmentalperformanceofASNoffice of office EN1 Materials used 21 EN2 Recycled materials 21 EN3 Direct energy consumption 22 EN4 Indirect energy consumption n.m. EN5 Energy savings 22 EN6 Sustainable energy products 22 EN7 Indirect energy reductions n.m. EN8 Water withdrawal n.m. EN9 Water sources n.m. EN10 Water recycling n.m. EN11 Biodiversity and location 23 EN12 Biodiversity in relation to products 23 EN13 Protected habitats 23 EN14 Biodiversity management 23 EN15 Red list species 23 EN16 Total direct and indirect greenhouse gas emissions by weight 23


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G3Item 2006Report(referencestoG3sections) MaybeFound onPage

EN17 Other relevant greenhouse gas emissions 23 EN18 Initiatives to reduce greenhouse gas emissions 24 EN19 Ozone-depleting substances n.m. EN20 Other air emissions n.m. EN21 Water discharge 24 EN22 Waste by type and disposal method in kilograms 24 EN23 Significant spills n.m. EN24 Trade in hazardous substances n.m. EN25 Biodiversity of water sources n.m. EN26 Mitigation of product impacts on the environment n.m. EN27 Packaging n.m. EN28 Environmental fines n.m. EN29 Staff transport 25 EN30 Environmental protection investments 29 Staff ASNofficesocialperformance LA1 Total FTEs by category 25 LA2 Staff turnover 26 LA3 Differences between permanent and temporary contracts 26 LA4 Proportion of workforce governed by collective labour agreement 26 LA5 Minimum term of notice 26 LA6 Proportion of staff in workplace health and safety committees 26 LA7 Absenteeism figures 26 LA8 Safety training and prevention 27 LA9 Formal workplace health and safety arrangements 26 LA10 Annual hours of training per employee n.a. LA11 Programmes for skills management .n.a. LA12 Proportion of staff informed about career development 27 LA13 Diversity of governance bodies and staff 27 LA14 Proportion of salaries paid to men and women by category 28 Human rights ASNoffice’shumanrightsperformance HR1 Human rights screening 28 HR2 Screening suppliers 28 HR3 Hours of training for staff 28 HR4 Number of instances of discrimination 28 HR5 Freedom of association in trade unions 28 HR6 Child labour 28 HR7 Forced labour 28

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HR8 Security n.a. HR9 Local cultures 28 Core business ASNBank’senvironmentalandhumanrightsperformance F1 Description of policy 29 F2 Description of approach to risk assessments 29 F3 Thresholds for the performance of assessments 29 F4 Method of monitoring businesses in relation to both types of risk 29 F5 Training staff to identify risks 29 F6 Frequency of audits 29 F7 Description of interaction and engagement 29 F8 Proportion of businesses with whom engagement has occurred 29 F9 Proportion in respect of which exclusion and acceptance criteria apply 29 F10 Description of voting policy in respect of sustainability 29 F11 Investments in respect of which ASN can vote 29 F12 Proportion of sustainability products 29 F13 Breakdown of investments by sector and region 50 Society ASNoffice’ssocietyperformanceindicators SO1 Impact on local societies 33 SO2 Internal anti-corruption analysis 33 SO3 Staff trained in anti-corruption 33 SO4 Action in response to corruption 33 SO5 Involvement in public lobbying 33 SO6 Political donations 33 SO7 Anti-competitive behaviour 33 SO8 Sanctions for non-compliance 34 Product responsibilities Productresponsibility PR1 Assessment of product health and safety impacts 34 PR2 Contraventions of product health and safety requirements 34 PR3 Requisite product information 34 PR4 Product information incidents 34 PR5 Customer satisfaction 34 PR6 Integrity in relation to marketing 34 PR7 Incidents concerning integrity in relation to marketing 34 PR8 Complaints concerning privacy 34 PR9 Fines for contravening product legislation 34

AppendixIV–KlimaatNeutraalCertificate

6 0


Robert Swan: From Polar Explorer to Environmen-

tal Activist

“BEING NEGATIVE DOES NOT INSPIRE

ANYONE”

He was the first man – “stupid enough”, in his own

words – to trek to both the North and South Poles.

It was there that Robert Swan, a speaker during

the Ethical Investment Day, personally experienced

what environmental pollution and climate change

mean. The skin on his face was singed and the

colour of his eyes changed as a result of the hole

in the ozone layer. Since then this Briton has been

travelling around the world delivering his message

to inspire people and encourage them to take action.

Travelling thousands of kilometres at tem-peratures of up to minus 70 degrees: what inspires a human being to trek to the North and South Poles?“It actually began with a very negative experience.

When I was 11 years old, a teacher told me that

there were enough nuclear weapons to blow up the

world three times over. Why, I wondered, is once

not enough? I felt that was such a depressing idea.

At about the same time I saw a film about Antarc-

tica. That appeared to me to be something very posi-

tive: an area in which no people lived, which did not

belong to anyone. To me it became a counterweight

to all of the negative stories. In this respect we are

talking about the height of the Cold War. So I began

to read a great deal about it, about the polar explo-

rers, such as Scott, Shackleton, Amundsen and the

rest of them. In this way an idea gradually began to

germinate: I shall go to Antarctica myself.”

21december 2006Nieuwsberichten van de ASN Bank

Poolreiziger Robert Swan:

‘Het negatieve inspireert niemand’

Actie: ASN-Novib FondsNu met gratis prachtig fotoboek!

Hoe meet je de duurzaamheid van een land?

Actie: ASN-Novib FondsNu met gratis prachtig fotoboek!

Particulars

6 1


Situation as at 1 April 2007

SupervisoryBoardM. Menkveld (Chair)C.H. van den BosB.A.G. JanssenM.E. StraubM.W.J. HinssenH.K. Kroeze

AdvisoryBoardM.S. Keijzer, ChairS.E.A. Noorman-den UylH. KampsM. de Rijk

ManagementBoardE.P. Goudswaard, General ManagerJ.E. Jansen

ASNBankPO Box 305022500 GM The HagueThe NetherlandsTel.: (+31)(0)70 356 9333Fax: (+31)(0)70 361 7948

StreetaddressAlexanderstraat 282514 JM The HagueThe NetherlandsTel.: (+31)(0)70 356 9333Fax: (+31)(0)70 361 7948

AccountantKPMG Accountants N.V.Burgemeester Rijnderslaan 201185 MC AmstelveenThe Netherlands

ASN Bank, P.O. Box 30502, 2500 GM The Hague

Phone 0800 - 0380 (free) www.asnbank.nl

Fax 070 - 361 79 48 e-mail [email protected]

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Documents

Annual Report ASN Bank 2006