March 1, 2010
e3bank: First “Triple Bottom Line” Bank in the Northeast U.S.
e3bank is making a big bet that sustainability will be the key to its business success. Everything about this new company—from infrastructure to product and service offerings—is being built on the triple bottom line foundation of people, planet and prosperity. CEF Deputy Chair and Director of Research Jeff Hittner spoke with the President and CEO, Frank Baldassarre, and the Chairman, Sandy Wiggins, to discuss their new venture.
Jeff Hittner:
Can you two contrast the business model of e3bank with that of a traditional bank?
Sandy Wiggins:
e3bank is being built from the bottom up on the basis of the triple bottom line. All of our products and services need to deliver triple bottom line returns. For example, we will use building performance as part of our underwriting criteria because we believe that LEED buildings pose a lower risk from an investment standpoint. This means customers can receive certain financial benefits, such as lower interest rates, for this type of construction.
Jeff Hittner:
A lot of people may wonder why you chose to open a bank. Why not focus on clean-tech and sustainable development through venture capital, for example?
Frank Baldassarre:
If you’re a clean tech investor, maybe you invest in 2 or 3 companies over the course of a year – which is great – but with e3bank, we can do 500 projects a month. We’ve analyzed the deployment of a lot of clean tech and energy efficiency solutions and what we found holding them back was scale. Local businesses and individuals couldn’t purchase and install solar panels without financial help. Of course, we want to be profitable too. That’s a big part of our business. We see these investments as an opportunity to be financially successful.
Sandy Wiggins:
We also view the decisions the bank will make around the deployment of capital as the biggest opportunity we have to make an impact. The carbon footprint of our bank-specific operations is only a small piece of how we can benefit communities.
Jeff Hittner:
So will you turn down loan requests if the customer has yet to incorporate a broader triple bottom line perspective?
Sandy Wiggins:
The short answer is maybe, but we want to be as inclusive as possible. We think of this in terms of positive reinforcement – as a way to encourage our customers to be more sustainable. We have the capabilities to help them address the triple bottom line in their ventures.
Jeff Hittner:
We’ve seen a lot of businesses struggle to find a model in which to successfully engage their customers on the topic of sustainability. Can you describe some of your intended efforts?
Frank Baldassarre
One of our objectives is to be as inclusive as possible when trying to move our customers up the ladder of awareness of the triple bottom line. We will engage our customers on what they need to do to make their business models more sustainable.
Sandy Wiggins:
Yes, initially people will self-select themselves to be customers. But we also want to create change around the flow of capital and how people make decisions with regard to their money. Every business interaction becomes a point of education for customers. Our soon-to-be-launched website will enable customers to check their spending instantly – similar to Quicken or MS Money – but unique in that it will provide triple bottom line analysis. Heating bills, for example, will include a comparison of monthly cost with that of a house of similar square footage, in a similar region of the country, and advise customers if they are outside the norm of expenditures. We’ll provide details on energy audits and steps for improving energy efficiency.
Frank Baldassarre:
And we’ll provide ‘impact statements’ for our customers on their triple bottom line performance as part of their regular correspondence from e3bank.
Jeff Hittner:
You are very focused on providing sustainable insights into the purchasing habits of customers. Will that transparency extend to your investments as well?
Sandy Wiggins:
Definitely. We will be very focused on being transparent with our customers when it comes to where their savings are being reinvested. Customers will be able to click on a Google map to see where e3bank is deploying their assets. We want them to see the investments we’re making in the community – with their money.
Jeff Hittner:
What’s one of the biggest challenges you are focused on – besides addressing the rapid regulatory changes in your industry?
Sandy Wiggins:
We’re working hard on developing a simple set of metrics that are relevant and tangible to our customers. For example, tracking carbon mitigation or avoidance over total loan assets, or tracking living wage impact of our loans on the community. We want our customers to see the impacts of their business and those of e3bank.
Jeff Hittner:
Do you feel confident that you will find enough green business opportunities locally to support your financing model—or do you expect to take in a number of requests from outside the local area?
Sandy Wiggins:
Actually the local business opportunity is staggering. The requests we’re already fielding give us confidence that this will not be a problem at all.
Jeff Hittner:
Sandy, Frank, thank you for your time today. We look forward to the launch of e3bank in the coming months.



