INTRODUCTION

THE NEDBANK GROUP INTEGRATED REPORT 2010 BUILDS ON THE COMPREHENSIVE FINANCIAL AND SUSTAINABILITY REPORTING UNDERTAKEN BY THE GROUP IN RECENT  YEARS. NEDBANK GROUP’S ANNUAL AND SUSTAINABILITY REPORTS HAVE BEEN INTEGRATED TO REFLECT THE COMMITMENT OF THE GROUP TO INTEGRATE ECONOMIC, ENVIRONMENTAL, SOCIAL AND CULTURAL SUSTAINABILITY ACROSS ITS OPERATIONS.

The motivation to produce an integrated report is based on a number of factors, including:
  • The requirement to deliver quality reporting that mirrors the group’s integrated approach to sustainability as a core element of the way it does business.
  • Nedbank Group’s recognition of the need to align its reporting as closely as possible with best-practice recommendations on integrated reporting.
  • A greater focus on sustainability reporting across all areas of the business.
  • Eliminating the duplication of information, thereby reducing the associated paper usage and costs. To this end some of the detail contained in previous reports has been excluded from the printed document and included in the electronic version, which can be accessed on the group’s website at www.nedbankgroup.co.za. These initiatives reduced the overall volume of printed pages.

Nedbank acknowledges that integrated reporting, like integrated sustainability implementation, is a journey and that this report is a step in that journey and not an end in itself. Nedbank is committed to integrated reporting, which takes various formats throughout the year.

SCOPE OF REPORTING

This report covers the period from 1 January 2010 to 31 December 2010 and provides an overview of the operations, financial performance and integrated sustainability developments across all clusters, operational areas and majority-owned businesses of Nedbank Group.

While organisations in which Nedbank Group may hold minority shares are not included in the sustainability scope of this report, the group works closely with these companies to provide guidance and assistance with all aspects of their economic, environmental, social and cultural sustainable development.

MATERIAL SUSTAINABILITY ISSUES ADDRESSED IN THE NEDBANK GROUP INTEGRATED REPORT 2010

The process of determining material issues to be addressed in the 2010 integrated report was influenced by inputs from a broad spectrum of internal and external Nedbank Group stakeholders, including, but not limited to, shareholders, equity analysts, the media, regulators, trade unions and various management teams. The material issues identified through this engagement process were tabled to Nedbank Group Executive Committee for consideration and, following its approval, the material sustainability issues were tabled for ratification by the Board Transformation and Sustainability Committee.

The end result of this consultative process is a report that is aligned with the identified cornerstones of economic, environmental, social and cultural sustainability. In addressing these sustainability focus areas in an integrated manner, this report covers the key material issues set out below.

SUSTAINABILITY FOCUS AREA: ECONOMIC

Key material issue
Deliver lasting stakeholder value through responsible business management and lending practices, governance, compliance and ethics, risk management, information technology system integrity and competitive products and pricing.

Reason for being a material issue
While optimising returns to shareholders remains a key objective of everything the group does, Nedbank Group recognises that there is more to economic sustainability than financial results. What is required is a holistic approach that contributes to, and helps ensure, the financial and economic sustainability of the group and all its stakeholders – including its staff, clients, shareholders, suppliers, communities, governments and countries in which it operates.

SUSTAINABILITY FOCUS AREA: ENVIRONMENTAL

Key material issue
Minimise usage of, and impact on, natural resources through:

  • a reduction and neutralisation of carbon emissions;
  • waste management initiatives;
  • collaboration with stakeholders to encourage sustainable behaviour changes.

Reason for being a material issue
As Africa’s first carbon-neutral bank, Nedbank Group is committed to conserving and preserving the environment. This includes an internal focus on limiting the impact of the group’s business on the resources of the country and planet, and an outward focus that involves partnering with its stakeholders to enhance its positive impact.

SUSTAINABILITY FOCUS AREA: SOCIAL

Key material issue
Build societal capacity in southern Africa via:

  • sustainable socioeconomic development;
  • access to finance, affordable housing, healthcare and education for lower income earners;
  • preferential procurement aimed at driving economic empowerment; and
  • ongoing enterprise development and community upliftment.

Reason for being a material issue
Nedbank Group recognises the importance of creating a solid and sustainable social infrastructure to secure the future of its own business and that of the country as a whole. Social sustainability is therefore approached from a clear understanding of the group’s responsibility to do whatever it can to help create a better future for all stakeholders. Nedbank Group seeks to do this via social investment, staff volunteerism and empowering partnerships.

SUSTAINABILITY FOCUS AREA: CULTURAL

Key material issue
Develop a resilient corporate culture by:

  • building a unique corporate culture that serves as a competitive advantage;
  • embedding talent management; and
    • &
  • constantly developing and growing the group’s people.

Reason for being a material issue
Key to the sustainability of Nedbank Group is its ability to create an attractive, rewarding and performance-driven corporate culture. People are the only truly sustainable competitive advantage, and attracting and retaining the most talented and capable people require a corporate culture that facilitates personal growth and career development, while offering ongoing talent management, a balanced environment, opportunities for advancement, and recognition for the efforts and achievements of all employees.

It is important to note that these material issues relate back to Nedbank Group’s long-term deep green aspirations and the 2011 strategic focus areas as outlined here. A table outlining the sustainability governance structures and policy framework, linking these to strategic focus areas and key material issues, appears here.

INDEPENDENT ASSESSMENT AND GLOBAL REPORTING INITIATIVE INDICES

The Global Reporting Initiative (GRI) and, in particular, the GRI Financial Services Sector Supplement (FS) form the basis for this report, and an analysis of the group’s compliance with the GRI FS indices guidelines appear here. The full GRI content index is detailed at www.nedbankgroup.co.za.
The integrated report has also been prepared in line with best practice pursuant to the recommendations of the King II Code (principle 9.1).

Ernst & Young has been engaged to provide assurance on the key performance indicators as outlined in their assurance report (‘specified KPIs’) here. The specified KPIs have been emphasised in our report in bold green for identification purposes. For an understanding of the levels of assurance expressed over the specified KPIs, the preparation of our report in accordance with the self-declared Global Reporting Initiative (GRI) G3 Guidelines A+ application level using the principles of materiality, completeness and sustainability context and in accordance with AccountAbility’s AA1000APS (2008) using the principles of inclusivity, materiality, and responsiveness, reference should be made to the detailed Ernst & Young statement.

The Nedbank Group has prepared the specified KPIs in accordance with the basis of measurement as published on our website, which can be obtained at www.nedbankgroup.co.za

Financial Sector Charter/black economic empowerment information has been assessed by appointed auditors Sizwe Ntsaluba. Please see the Department of Trade and Industry scorecard as signed off by Sizwe Ntsaluba.

ACCESSING THE INFORMATION YOU WANT

Recognising that the majority of stakeholders prefer to select only the information that is pertinent or of interest to them, this integrated report endeavours to make it easier to access the information you require. The following icons will assist readers in selecting information based on their sustainability focus:

icon1 Information relating to economic sustainability.
icon2 Information relating to environmental sustainability.
icon3 Information relating to social sustainability.
icon4 Information relating to cultural sustainability.
icon5 Information relating to integrated sustainability.

Certain sections of the report are identified by means of more than one icon. This is due to the integrated nature of the reporting process and the fact that many of the initiatives and operations within Nedbank Group cut across a number of sustainability focus areas.

REFINE YOUR READING ONLINE

The same icons have been applied to the online version of the Nedbank Group Integrated Report 2010 allowing for specific information to be selected and displayed at the user’s discretion. The online version of this report can be accessed at www.nedbankgroup.co.za.