Climate Change Data

Nedbank Group Limited

Climate Impact & Sustainability Data (2020)

Reporting Period: 2020

Environmental Metrics

Total Carbon Emissions:137,540 tCO2e
Water Consumption:191,194 k
Waste Generated:116 tons to landfill, 329 tons recycled
Carbon Intensity:4.71 tCO2e per FTE employee

ESG Focus Areas

  • Climate Change
  • Diversity & Inclusion
  • Governance

Environmental Achievements

  • Carbon-neutral operations
  • Effectively net-zero operational water usage
  • Raised R2.0bn in green (SDG) bonds and disbursed R31bn renewable-energy deals, adding > 3 500 MW to the national grid

Social Achievements

  • Launched Avo super app to enable clients to procure and supply goods and services during lockdown
  • Supported more than 400,000 clients with payment relief on R121bn of loans
  • Maintained Level 1 BBBEE contributor status

Governance Achievements

  • Established a Board Group Climate Resilience Committee (GCRC)
  • Developed an energy policy aligned with the Paris Agreement
  • Commissioned detailed internal forensic investigations into transactions mentioned in media articles

Climate Goals & Targets

Long-term Goals:
  • Grow DHEPS at or above nominal GDP plus 5%
  • Achieve ROE above 18%
  • Reduce cost-to-income ratio to below 50%
  • Thermal-coal funding to be less than 0.5% of gross loans and advances by 2030
  • 100% of lending and investment activity supporting a net-zero carbon economy by 2035
  • Zero exposure to fossil-fuel-related activities by 2050
Medium-term Goals:
  • Exceed 2019 DHEPS level of 2,565 cents by 2023
  • Achieve ROE greater than 2019 level of 15% by 2023
  • Reduce cost-to-income ratio to below 54% by 2023
  • Rank number one in NPS among South African banks by 2023
Short-term Goals:
  • Adopt and disclose new energy policy by April 2021
  • Report on approach to measuring, disclosing and assessing climate-related risks by April 2021

Environmental Challenges

  • Covid-19 pandemic and subsequent lockdowns
  • South African macroeconomic challenges
  • Increased competition
  • Cybersecurity threats
  • Climate change impacts
Mitigation Strategies
  • Implemented business continuity plans
  • Provided payment relief to clients
  • Accelerated digital transformation
  • Enhanced cybersecurity measures
  • Developed an energy policy and Climate Risk Management Framework

Supply Chain Management

Responsible Procurement
  • #Payin30 initiative (92% of SME suppliers paid within 30 days)

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events
Transition Risks
  • Regulatory changes
  • Market shifts
Opportunities
  • Growth in renewable energy finance

Reporting Standards

Frameworks Used: International Framework, IFRS, King IV, GRI Standards, TCFD

Third-party Assurance: Deloitte, Ernst & Young, Mosela Rating Agency

UN Sustainable Development Goals

  • SDG 4
  • SDG 6
  • SDG 7
  • SDG 8
  • SDG 9
  • SDG 10
  • SDG 11
  • SDG 12
  • SDG 15

Initiatives contribute to these goals through sustainable finance, community investment, and employee well-being programs.

Sustainable Products & Innovation

  • Green bonds
  • Renewable energy finance products
  • Avo super app

Awards & Recognition

  • Sunday Times Business Leader of the Year Award
  • Global Banking and Finance Awards
  • Most Helpful Bank in Africa and SA during Covid-19