CSR lending policy

Example: human rights

• Although the state is primarily responsible for human rights, Van Lanschot acknowledges that organisations, businesses and individuals also have a part to play. Van Lanschot therefore endorses the Universal Declaration of Human Rights and works to ensure that these rights are observed throughout its own organisation.
• In addition, where appropriate Van Lanschot will, insofar as this is possible, call upon its borrowers to comply with the Universal Declaration of Human Rights, and to comply with relevant local legislation as a minimum.
• Since most of Van Lanschot’s borrowers are based in the Netherlands, where strict local legislation applies, the CSR lending policy on human rights will focus primarily on borrowers that have production units or suppliers outside of the western industrialised world and which are also active in ‘sensitive’ sectors. These include, but are not limited to, the agricultural sector, manufacturing industries including clothing, toys and furniture, oil and gas, and mining.
• Van Lanschot expects first of all that such borrowers will not be involved with material direct or indirect violations of human rights. In addition, it expects that they will be able to state which steps they have taken to avoid becoming embroiled in violations of human rights. Some larger borrowers may have defined their own human rights policy (complete with responsibilities, systems and procedures) for this purpose. Smaller borrowers are not likely to have a formal policy of this kind, but they should still to be able to demonstrate in some other way that they have actively taken preventative steps.
• In order to assess the policy/preventative measures in place at borrowers, Van Lanschot will, where necessary, make use of external benchmarks, such as the ILO principles and the guidelines of the International Finance Corporation.
• If Van Lanschot discovers serious indications that an existing or potential borrower either has failed to observe human rights, either directly or indirectly, or is unable to explain its efforts aimed at avoiding any involvement in violations of human rights (in sensitive sectors or areas), it will discuss this with the borrower (strategy of engagement). In that case, it will draw up an action plan, in consultation with the borrower, for making improvements by a fixed deadline. If no improvements can be seen at the end of this period, Van Lanschot will reconsider its position and take measures. One of the possibilities open to it in such situations is to terminate the relationship with the relevant client.