Changemaking: Financing Systems Change, Transitions and Transformations (Triodos Bank)

Summary

• SunCulture's solar pumps enable smallholder farmers to replace diesel pumps, mitigating over 20,000 tonnes of CO2 annually with syndicated debt from Hivos-Triodos Fund.p.10
• The Giga Buffalo energy storage battery in the Netherlands features an output power of 25 M and reduces up to 11,500 tonnes of CO2 emissions annually.p.11
• Giga Buffalo's annual emission reductions equal the electricity consumption of around 9,000 households in the Netherlands.p.11
• Herenboerderijen mixed cooperative farms operate across around 20 hectares, supplying food to 200-270 households or about 500 people.p.11
• The River Wyre natural flood management project applies sustainable techniques across 70 hectares in Lancashire, UK.p.12
• In 2020, lighting provider Signify reduced manufacturing waste to landfill to zero and reached 100% renewable electricity in its operations.p.13

Key insights

1. Leverage points for system interventions range from surface-level parameters to deep mindsets and intent.p.4
2. Transitions develop across four core phases: experimentation, growth, consolidation and scaling, and mainstreaming.p.7
3. Transformations are distinguished from optimisations by delivering fundamental changes in system design and societal intent rather than incremental performance improvements.p.7
4. Evaluating transformative potential requires examining six dimensions: depth, scale, mission, experimentation, collaboration, and comprehensive change.p.9
5. Financial institutions must assess the forward-looking transformative potential of investments rather than relying solely on past impact or short-term risk-return profiles.p.9
6. Triodos Bank structures its financing activities around five interlinked transition themes: Energy, Food, Resources, Wellbeing, and Societal.p.14
7. Transition finance should focus on accelerating systemic societal changes rather than funding minor, incremental adjustments within individual corporate business models.p.17