Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Environmental Sustainability
• Sustainable Finance

Environmental Achievements

• 2.8% decrease in carbon emissions
• 5.74 tonnes of CO2e reduction
• 0.35 tonnes of CO2e reduction per m2 office space
• 13.7% reduction in energy consumption in Southern African offices since 2014
• 12.7% reduction in energy consumption in South African head office since 2014
• R1 million spent on power management equipment and infrastructure modernization in South African head office
• Prevented 25,920 water bottles from landfill monthly
• 20,250 kg of plastic waste prevented from landfill
• UK head office achieved 72% gas reduction target (set in 2008) and 35% electricity reduction target (set in 2008) by 2020
• UK head office recertified to ISO 14001 and ISO 50001
• UK head office won 13th Platinum Award in Clean City Awards Scheme
• Avoided 14,105 kg of glass waste in UK head office
• UK head office recertified to Carbon Trust Waste Standard
• Refilling 23,250 bottles of water in UK head office, avoiding glass waste
• Reduced printers in new UK head office from 102 to 61 units
• Introduced water-efficient toilet system in new UK head office

Social Achievements

• Donated two wheelchairs (bringing total to 45) through Tops and Tags initiative
• Launched campaign to stop single-use plastic in South African head office restaurant
• Implemented water-saving measures in bathrooms across all regions
• Investec staff participated in Earth Hour
• Investec London sponsored the Sustainable Resource category of the Sustainable Cities Awards
• Team Green ran a plastic fishing event in conjunction with World Oceans Day
• Received a Platinum pledge for achievements in reducing single-use plastics in City of London's Plastic Free City Pledge
• Encouraged active travel among staff and signed City of London's Air Quality Pledge

Governance Achievements

• Reviewed and strengthened climate change statement and policy on funding coal projects
• Investec Asset Management (IAM) held third internal Investment Sustainability Forum
• Launched dedicated investment funds for sustainable economic models
• Power and infrastructure finance team launched Revego Africa Energy (renewable energy investment vehicle)
• IAM and the group signed up to the United for Wildlife Financial Taskforce
• Expanded climate-related disclosures in line with TCFD recommendations

Climate Goals & Targets

Environmental Challenges

• Climate change presents challenges to the global economy
• Balancing the transition to a low-carbon economy with socio-economic factors (poverty, growth, unemployment)
• Managing the risk of climate change

Mitigation Strategies

• Avoiding funding for coal-fired power projects except under strict criteria
• Considering socio-economic and environmental factors in funding decisions
• Supporting clients and stakeholders in transitioning to a low-carbon economy
• Sharing resources and intelligence to combat illegal wildlife trade
• Reducing direct operational carbon impact
• Exploring opportunities to become carbon neutral
• Implementing energy, water, and waste reduction initiatives
• Promoting sustainable travel and procurement

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Sourcing from responsible suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: TCFD

Certifications: ISO 14001, ISO 50001, Carbon Trust Waste Standard

Third-party Assurance: KPMG (limited assurance)

UN Sustainable Development Goals

• SDG 13 (Climate Action)
• SDG 15 (Life on Land)

Prioritizing SDGs 13 and 15 through advisory, lending, and investing to support clients' transition to a low-carbon economy

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Platinum Award (Clean City Awards Scheme)

Environmental Metrics

ESG Focus Areas

• Climate change
• Diversity & Inclusion
• Transformation
• Community Investment
• Sustainable Finance

Environmental Achievements

• Achieved carbon neutral status in all operations and committed to ongoing carbon neutrality.
• Publicly announced group fossil fuel policy.
• Disclosed fossil fuel exposures (1.3% of group credit and counterparty exposures).

Social Achievements

• Voted one of South Africa’s Top Empowered Companies by Impumelelo.
• Group female senior leadership increased to 36.9% (2019: 35.6%).
• Community spend comprised 2.3% of operating profit (2019: 2.0%).
• Committed over £3.2 million (R70 million) in COVID-19 relief.

Governance Achievements

• Successful demerger and listing of Ninety One (formerly Investec Asset Management).
• Restructured, closed, and sold non-core businesses.
• Reduced operating costs by 7.0%.

Climate Goals & Targets

Environmental Challenges

• Weak economic fundamentals (Brexit uncertainties, geopolitical tensions, economic weaknesses in South Africa).
• Extreme market dislocation in Q4 2020 due to COVID-19.
• COVID-19 impact on operating income and expected credit losses (approximately £105 million).
• South African sovereign downgrades.
• Increased competition in financial services.

Mitigation Strategies

• Maintained robust capital and liquidity levels.
• Mobilized balance sheet and expertise to support clients.
• Supported government initiatives (CBILS in UK, SAFT and COVID-19 Loan Scheme in South Africa).
• Implemented cost containment measures.
• Increased provisioning levels to account for COVID-19 impact.
• Continued focus on lower-risk, income-based lending.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Procurement questionnaires requesting information on suppliers’ environmental, social and ethical policies.
• Zero tolerance approach towards slavery.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: UK Corporate Governance Code 2018, King IV Code, TCFD

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 10 (Reduced Inequalities)
• Goal 11 (Sustainable Cities and Communities)
• Goal 13 (Climate Action)

Investec supports various initiatives contributing to these goals through community investment, sustainable finance, and carbon neutrality efforts.

Sustainable Products & Innovation

• Sustainable energy finance arm (UK)
• Structured product issued over Environmental World Index (South Africa)
• Pilot solar solution for private bank clients (South Africa)

Awards & Recognition

• Sustainability Award (17th Annual National Business Awards 2019)
• Best Investment Bank for Sustainable Finance in Africa (2020 Global Finance Awards)
• Trialogue Strategic CSI Award 2019

Environmental Metrics

ESG Focus Areas

• Climate Change
• Environmental Management
• Sustainable Finance
• Governance

Environmental Achievements

• Retained ISO 14001 and ISO 50001 certifications for UK head office's EMS and EnMS respectively.
• Implementation of an environmental management system (EMS) to track and manage direct operational impact and carbon footprint.

Social Achievements

• Not disclosed

Governance Achievements

• Establishment of a Group Executive ESG Committee reporting to the board.
• Inclusion of non-financial and ESG-related targets in executive remuneration (20% short-term, 25% long-term).

Climate Goals & Targets

Environmental Challenges

• Balancing the need for increasing energy access and economic growth (especially in South Africa) with the urgency to reduce carbon emissions.
• Navigating the complexities of climate change and its impact on the global economy.

Mitigation Strategies

• Cautious and orderly approach to the transition to a low-carbon economy, considering socio-economic constraints.
• Considering financial, socioeconomic, and environmental factors when assessing participation in fossil fuel activities.
• Engaging with stakeholders to inform climate strategy.
• Active participation in industry discussions for an aligned approach.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Rapidly changing weather events

Transition Risks

• Market shifts as a result of regulatory and policy changes

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: TCFD, CDP

Certifications: ISO 14001, ISO 50001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Committed to support the delivery of the Sustainable Development Goals (SDGs)

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate change
• Reduced inequalities

Environmental Achievements

• Maintained carbon neutrality for the fourth consecutive year
• Sourced 100% of Scope 2 emissions from renewable energy sources
• Reduced coal exposure as a percentage of core loans and advances to 0.10% from 0.17% in 2021
• Implemented a focused project to understand Scope 3 financed emissions and established a baseline, strategy, and targets to reach net zero

Social Achievements

• Increased learning and development spend from 1.3% to 1.6% of staff costs
• Reduced gender pay gap for the fourth consecutive year in the UK and South Africa
• Maintained Level 1 BBBEE status in South Africa
• Supported 1,995 Arrival Education learners in the UK
• Supported 4,018 Investec-funded learners in Promaths Online
• Launched a new app-based healthcare benefit in the UK
• Launched Allies programme to address micro-aggressions and challenge exclusion

Governance Achievements

• Established a Group ESG Executive Committee
• Created a framework to link executive directors’ remuneration to ESG KPIs
• Published third TCFD report
• Published 2021 gender pay gap report in the UK
• Voluntarily disclosed ethnicity pay gap in Investec Bank UK and Investec Wealth & Investment UK

Climate Goals & Targets

Environmental Challenges

• Increase in total fossil fuel exposures due to increased oil exposures in South Africa and natural gas exposures in the UK
• Transition to net zero is exceptionally challenging
• COVID-19 pandemic impacted community initiatives and employee wellbeing

Mitigation Strategies

• Deliberate focus on managing fossil fuel exposures and increasing renewable energy infrastructure
• Focused project to understand and address Scope 3 financed emissions
• Adapted community programs and employee wellbeing initiatives to address COVID-19 challenges
• Hybrid model for Promaths Online to address connectivity issues

Supply Chain Management

Supplier Audits: Majority of suppliers assessed at least every three years

Responsible Procurement

• Group supplier code of conduct incorporating UNGC standards
• Supplier screening for human rights, labor rights, modern slavery, corruption, and environmental violations

Climate-Related Risks & Opportunities

Physical Risks

• Rapidly changing weather events

Transition Risks

• Regulatory and policy changes, market shifts

Opportunities

• Financing infrastructure solutions that promote renewable and clean energy

Reporting Standards

Frameworks Used: GRI Standards: Core option, King Code of Governance Principles for South Africa (King IV), TCFD

Certifications: ISO 14001, ISO 50001, Carbon Trust Waste Standard

Third-party Assurance: KPMG

UN Sustainable Development Goals

• SDG 4, SDG 6, SDG 7, SDG 8, SDG 9, SDG 10, SDG 11, SDG 13, SDG 17

Investec's initiatives contribute to these goals through various programs and investments in education, clean energy, job creation, infrastructure, and biodiversity conservation.

Sustainable Products & Innovation

• Global Sustainable Equity Fund, sustainability-linked loans, green bonds

Awards & Recognition

• MSCI ESG rating AAA, Sustainalytics top 13%, GTR awards, IJGlobal Africa Renewable Deal of the Year

Environmental Metrics

ESG Focus Areas

• Climate change
• Reduced inequalities

Environmental Achievements

• Carbon neutral in direct operations for the fourth consecutive year
• Coal as a percentage of core loans and advances reduced to 0.1% from 0.17% in March 2021
• 100% of Scope 2 energy from renewable sources through renewable energy certificates
• Investec Bank Limited issued its first green bond, raising R1 billion to refinance five green renewable energy projects.

Social Achievements

• Learning and development spend increased from 1.3% to 1.6% of staff costs
• 49.7% of Investec employees are women (up from 48.8% last year)
• 40% of the Group Board are women and people of color
• Launched a new app-based healthcare benefit in the UK
• Supported staff and their families during the civil unrest in South Africa
• Reduced gender pay gap for the fourth consecutive year in the UK and South Africa.
• Spent £8.9 million on community initiatives

Governance Achievements

• Implemented a new executive directors’ remuneration framework that links remuneration to various ESG ratings
• Successfully distributed a 15% holding in Ninety One to shareholders

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions
• Russia’s invasion of Ukraine
• Brexit in the UK
• Social instability and power shortages in South Africa
• Global inflation
• Geopolitical uncertainty
• Power shortages and load shedding in South Africa
• Decay of South Africa’s transport networks
• FATF finding that the South African financial sector needs to improve its processes to prevent money laundering and terrorist financing
• High levels of inequality and unemployment in South Africa

Mitigation Strategies

• Demerger of Investec Asset Management
• Exiting subscale, non-core businesses
• Refocusing the banking business in the UK
• Rightsizing the cost base in the UK
• Closer integration across businesses and geographies
• Investment in digitalisation
• Migration to AIRB approach in South Africa
• Working with clients to decarbonise their operations
• Joining the Net-Zero Banking Alliance and Climate Action 100+
• Focused project to understand Scope 3 financed emissions
• Supporting efforts to decarbonise South Africa’s electricity sector
• Implementing structural reforms in South Africa
• Private sector participation in national infrastructure projects
• Improving processes to prevent money laundering and terrorist financing in South Africa

Supply Chain Management

Supplier Audits: All IT suppliers screened against ethical supply chain practices; expanding to all suppliers in the next year

Responsible Procurement

• Due diligence on cyber security and business continuity
• Updated critical supplier contracts in line with EBA regulatory guidelines

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather
• Drought

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Financing renewable energy projects
• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI, TCFD

Third-party Assurance: KPMG Inc.

UN Sustainable Development Goals

• SDG 4 (Quality Education)
• SDG 8 (Decent Work and Economic Growth)
• SDG 10 (Reduced Inequalities)
• SDG 13 (Climate Action)

Investec's initiatives in education, entrepreneurship, job creation, and climate action contribute to these goals.

Sustainable Products & Innovation

• Sustainability-linked loans
• Green bond
• Global Sustainable Equity Fund

Awards & Recognition

• 'Best Private Bank and Wealth Manager in South Africa' (Financial Times, Euromoney)
• 'Best-performing bank in the UK' (The Banker)
• 'Best Specialist ESG Research' (ESG Investing Awards)
• 'Lender of the Year' (Private Equity Awards)
• 'Best Leasing and Asset Finance Provider' and 'Best Business FX Provider' (Business Moneyfacts Awards)

Environmental Metrics

ESG Focus Areas

• Climate action (SDG 13)
• Reduced inequalities (SDG 10)
• Quality education (SDG 4)
• Decent work and economic growth (SDG 8)
• Clean water and sanitation
• Affordable and clean energy
• Responsible consumption and production
• Climate action

Environmental Achievements

• Maintained carbon neutrality in direct emissions for the fifth year in Scope 1, 2 and operational Scope 3 emissions
• Sourced 100% of Scope 2 electricity consumption through renewable energy certificates
• Reduced fossil fuel exposure to 1.84% of loans and advances (from 1.99% in 2022)
• Committed to zero coal by 31 March 2027 (Investec plc) and 31 March 2030 (Investec Limited)
• Stopped project financing to new thermal coal mines (as of 31 March 2023)
• Committed to not financing new oil and gas extraction, exploration, and production from 1 January 2035
• Joined the Partnership for Biodiversity Accounting Financials (PBAF)

Social Achievements

• Launched several initiatives to reignite culture and improve employee experience
• Developed a Youth Council and Reverse Mentorship programme
• Provided 3,100 internships to participants in the Youth Employment Service in South Africa (60% gained permanent employment)
• Continued 16-year partnership with Arrival Education in the UK
• Provided funding to food charities in the UK
• Increased minimum pay in South Africa to R250k per annum (effective 1 June 2023)
• Offered a one-off cost-of-living allowance to UK employees
• Improved staff compensation ratio to 42.7% from 45.8% in 2022

Governance Achievements

• Completed migration to the advanced internal ratings-based (AIRB) approach for capital measurement in Investec Limited; Investec plc started transition to IRB approach
• Initiated share purchase and buy-back programme of up to R7 billion
• Enhanced internal communications of the ‘One Investec’ strategy
• Approved all-share combination between Investec Wealth & Investment Limited (IW&I UK) and Rathbones
• Distributed 15% shareholding in Ninety One to shareholders
• Approved share purchase and share buy-back programme of up to R7 billion

Climate Goals & Targets

Environmental Challenges

• Volatile operating environment with rising inflation, interest rates, and geopolitical uncertainty
• Supply chain disruptions
• Economic slowdown in the UK and South Africa
• Electricity shortages in South Africa
• Dysfunctional freight transport network in South Africa
• High unemployment and inequality in South Africa
• South Africa's greylisting by the FATF
• Political upheaval in the UK
• Cost-of-living crisis in the UK

Mitigation Strategies

• Strong capital and liquidity positions
• Disciplined growth strategy
• Capital optimisation strategies
• Prudent risk management
• Diversified client franchises
• Structural hedging programme in the UK
• Continued focus on cost discipline
• Collaboration with clients to restore economic growth
• Proactive role in addressing FATF concerns
• Wellbeing initiatives and learning programmes for employees
• Cost-of-living allowance and financial education resources for UK employees

Supply Chain Management

Supplier Audits: All suppliers screened against ethical supply chain practices

Responsible Procurement

• Group supplier code of conduct

Climate-Related Risks & Opportunities

Opportunities

• Investing in products, services and businesses that help accelerate the transition
• Supporting clients as they transition their business operations and offerings
• Financing infrastructure solutions that promote renewable and clean energy

Reporting Standards

Frameworks Used: GRI, TCFD, King IV, UK Corporate Governance Code 2018

Third-party Assurance: EY LLP

UN Sustainable Development Goals

• SDG 13
• SDG 10
• SDG 4
• SDG 8
• SDG 6
• SDG 7
• SDG 12
• SDG 13

Investec's sustainability strategy is aligned with these SDGs, focusing on climate action, reduced inequalities, and other relevant goals.

Sustainable Products & Innovation

• Sustainability-linked loans
• Funding solution for solar panels and battery storage systems
• Financing for electric vehicles

Awards & Recognition

• Corporate Knights Global 100 Most Sustainable Corporations
• City A.M. Bank of the Year
• Real Deal Private Equity Awards Lender of the Year
• Moneyfacts Investment Life & Pension Awards Best Discretionary Fund Manager
• Financial Times Best Private Bank and Wealth Manager in South Africa
• Multiple DealMakers Awards and Global Trade Review Awards
• Best Private Bank and Wealth Manager in Africa for philanthropy services

Environmental Metrics

ESG Focus Areas

• Climate change
• Reduced inequalities

Environmental Achievements

• Maintained carbon neutrality in our direct emissions for the sixth financial year
• Reduced Scope 3 financed emissions within our various asset classes
• Renewables as a % of our energy lending portfolio increased to 55.99% from 50.90% in March 2023
• Coal exposure reduced to 0.08% (2023: 0.11%)

Social Achievements

• Continued success in HNW client acquisition, growing our client base by 8% and 5% in SA and the UK, respectively
• Introduced Investec Spaces, a global app for digital workplace access, with ongoing enhancements
• Reviewed our Private Medical Insurance provider in the UK to ensure the best of benefits available to staff and their families
• Enhanced our South African wellbeing strategy through a safety app for employees and their loved ones, providing emergency assistance
• Introduced a staff banking programme available to all employees in South Africa
• 3 671 South African youth given Investec internships through YES since inception (2023: 3 100 since inception)
• 9 399 staff volunteering hours in the past year (2023: 10 510 hours)

Governance Achievements

• Approval of the appointment of Diane Radley as Chair of the DLC Audit Committee
• Approval of Cumesh Moodliar’s appointment as CEO of Investec Bank Limited
• Approval of IPF’s internalisation of the management companies by the Competition Tribunal
• Approval received for the all-share combination between IW&I UK and Rathbones Group
• Women now constitute 58% of the DLC Board, up from 43% in FY2023

Climate Goals & Targets

Environmental Challenges

• Uncertain economic and political backdrop characterized by geopolitical tensions, heightened risk of deglobalisation, sustained inflationary pressure and high interest rates
• Heightened emphasis on sustainability and growing expectation for companies to support and enable better environmental and social impacts
• Rapid pace of digitalisation requiring modernisation of infrastructure and responsible adoption of AI
• Complex regulatory environment with ongoing monitoring and oversight from multiple regulatory bodies
• Challenges in sourcing accurate and reliable data for calculating Scope 3 financed emissions

Mitigation Strategies

• Diversified mix of earnings by geography and business, with significant annuity income underpin from leading wealth business
• Sustainability strategy built on the understanding that our business should actively contribute to the betterment of society and the planet
• Strategy to transform and grow our business through modernising our infrastructure, enhancing our security as well as ensuring the responsible adoption of artificial intelligence (AI)
• Adapted business strategy and processes to prepare for the changing regulatory environment and heightened supervision
• Implemented rigorous data collection processes to ensure that the data we use is accurate, reliable, and up-to-date
• Automated financed emissions calculations using the PCAF methodology

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Compliance with applicable environmental, labour and anti-corruption laws and regulations
• Prompt payment practices
• ESG screening process

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products
• Sustainable finance

Reporting Standards

Frameworks Used: International Integrated Reporting Framework, TCFD, SASB, GRI, CSRD, UN Global Compact, PRI

Certifications: Null

Third-party Assurance: EY LLP

UN Sustainable Development Goals

• SDG 4 (Quality Education)
• SDG 6 (Clean Water and Sanitation)
• SDG 7 (Affordable and Clean Energy)
• SDG 8 (Decent Work and Economic Growth)
• SDG 9 (Industry, Innovation and Infrastructure)
• SDG 10 (Reduced Inequalities)
• SDG 11 (Sustainable Cities and Communities)
• SDG 13 (Climate Action)

Investec's sustainability strategy is aligned with these SDGs through various initiatives across its business lines.

Sustainable Products & Innovation

• Sustainable and transition finance products

Awards & Recognition

• South Africa’s Best Digital Bank (Euromoney)
• Best Private Bank for Use of Technology in Africa (PWM)
• Best Private Bank and Wealth Manager in South Africa (Financial Times)
• Lender of the Year (RealDeals Private Equity Awards)
• Bank of the Year for South Africa (The Banker)
• Top 100 Global Sustainable Companies (Corporate Knights)

Environmental Metrics

ESG Focus Areas

• Climate
• Communities
• People
• Governance

Climate Goals & Targets

Environmental Challenges

• Lack of widely accepted sustainability-related reporting practices.

Mitigation Strategies

• Continuously reviewing available data sources and enhancing methodology and processes to strengthen the reliability of sustainability-related reporting; aligning with industry developments.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: PCAF

Third-party Assurance: Ernst & Young LLP (EY)

UN Sustainable Development Goals

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

Investec supports charitable initiatives and investments that support key areas such as education and learnerships, entrepreneurship and job creation, environment and other philanthropy, and staff volunteerism.

Environmental Metrics

ESG Focus Areas

• Climate Change
• Biodiversity
• Reduced Inequalities
• Sustainable Development Goals (SDGs)

Environmental Achievements

• Improved CDP climate change score to A- from B, exceeding industry average of B.

Social Achievements

• Support for UN Global Compact Young SDG Innovators programme.
• Participation in the UN Global Investors for Sustainable Development (GISD) Alliance.

Governance Achievements

• Submission of third report according to the UN PRB principles.
• Active contribution to the UN PRB Academy curriculum and implementation of a training strategy.

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, TCFD, SASB, UN PRB, UN PRI

Third-party Assurance: EY (limited assurance on selected indicators for UN PRB)

UN Sustainable Development Goals

• SDG 13 (Climate Action)
• SDG 10 (Reduced Inequalities)
• SDG 4
• SDG 6
• SDG 7
• SDG 8
• SDG 9
• SDG 11