NEDbaNk GrOuP ackNOwLEDGES bOTH THE DIrEcT aND INDIrEcT IMPacT Of ITS OPEraTION ON THE ENVIrONMENT aND THE rESuLTaNT NEED TO PrOMOTE ENVIrONMENTaL SuSTaINabILITy. As South Africa’s recognised ‘green’ bank, Nedbank Group has a well-established reputation for being absolutely committed to environmental sustainability. In fact, this commitment to the conservation of the natural heritage of the country, and planet, is integral to the culture of the organisation and represents a key element in the ongoing assessment of overall corporate performance. Nedbank Group’s approach to environmental sustainability comprises three distinct, but interrelated components: 1. managing its own impact The group’s focus, in the first instance, is on making sure that it ‘gets its own house in order’ and effectively manages the direct impact it has on the environment, particularly through its efforts in the areas of energy efficiency, carbon reduction, carbon neutrality, water efficiency and responsible lending. 2. LEADING Through collaboration although Nedbank Group has a fairly low direct impact on the environment, the group’s sphere of influence and potential to have a highly positive indirect environmental impact is vast. To this end it works closely with all stakeholders – from employees and clients to business partners and suppliers – to help them understand their impact on the environment and strive to reduce any negative aspects of that impact. 3. Facilitating Sustainability Through Products AND Services Nedbank Group strives to support the ‘green’ efforts of its clients by offering them a range of environmentally friendly banking and financial products and services. This commitment to promoting environmental sustainability via innovative product development is supported at every level of the organisation.   managing its own impact Environmental management The Group Transformation and Sustainability committee Social business Plan. (a subcommittee of the Nedbank Group board) is responsible for monitoring and refining all environmental policies and ensuring Given the increasing impact of climate change and the related risks, that these are integrated into the Nedbank Group philosophy and practice. at an executive management level the group executive responsible for enterprise governance and compliance assumes overall accountability for the management of environmental sustainability. In 2008 the Group Environmental forum (GEF) was constituted to drive environmental sustainability across Nedbank Group. The end of 2010 saw this forum reconstituted as the Group Sustainability committee (GSc) with increased executive management representation across the organisation in order to ensure: greater focus on realising the group vision to lead as a green and caring bank; the coordination of King III integrated sustainability initiatives across the business; and further integration in the implementation of sustainability. This committee is supported by a central sustainability team comprising sustainability specialists and experts, particularly in environmental law, carbon, and stakeholder engagement. further support is achieved via a number of sustainability forums across the various business clusters as well as a number of environmentally focused task teams. These include the world wide fund for Nature – South Africa (WWF-SA)/Nedbank carbon-neutral Task Team, as well as task teams that focus on electricity, paper, water, travel and waste. During 2010 various sustainability forums served to: enhance the effective coordination of environmental initiatives across the group; provide a recognised platform for information sharing and the capturing of synergies; streamline and facilitate environmental sustainability reporting, communication and marketing; and help shape the group’s strategy and business plans by ensuring the inclusion of sustainability considerations in all business plans as supported by the three-year Group Integrated Environmental and The Group Transformation and Sustainability committee Social business Plan.
	Social AND Environmental Risk management Given the increasing impact of climate change and the related risks, and in addition to the group’s commitment to the Equator Principles, the group has placed even greater emphasis on consolidating its social and environmental risk policies and management processes to protect shareholder value and returns on capital investments. Nedbank Group’s environmental policy reflects this consolidation and ensures responsible, fair and honest business practices that are aligned with government’s environmental protection objectives. The group works towards ensuring compliance with environmental legislation and regulations. regular reviews of the environmental policy ensure it remains relevant, while detailed reporting provides stakeholders with a clear view of environmental sustainability effectiveness. The Environmental Policy is linked to, and supported by, Nedbank Group’s Social and Environmental Management System (SEMS). consolidated in 2010, SEMS is based on ISO 14001, and details the policy, procedures and workflow required to identify and assess the environmental or social impacts of investments or lending activities undertaken by Nedbank Group. The Environmental Policy and SEMS, in turn, include sector guidelines on mining, property, oil and gas, water infrastructure, waste management, and mergers and acquisitions. To give effect to all of the above a social and environmental risk evaluation tool (Screening Tool) was developed and is being implemented across the group.
	Driving carbon reduction For carbon neutrality truly to mean anything it cannot merely be a badge, it needs to be a promise. This was the philosophy at the heart of Nedbank Group’s decision to strive for carbon neutrality and remains a key focus now that the bank has achieved this objective. while carbon neutrality represented the next logical chapter in the ‘green’ bank’s 20-year environmental sustainability and climate change journey, it also demonstrated a commitment to realising Nedbank Group’s vision of assuming a leading role in sustainability – both within financial services and further afield – via a balanced and integrated approach to addressing environmental, social, cultural and economic sustainability issues. Of particular relevance to the group’s ability to assume a sustainability leadership role was the way in which its carbon- neutrality vision was realised. by following a ‘reduce before offsetting’ approach, Nedbank Group’s carbon neutrality was achieved, as far as possible, by means of behavioural change, reduction targets (including paper, water, electricity, travel and waste) and operational efficiencies. Only once reduction initiatives for the year had been achieved did the bank use carbon credits to offset the remaining, unavoidable carbon emissions. Working with WWF-SA to achieve credible and sustainable carbon neutrality, Nedbank Group now boasts a powerful platform on which to build its client value proposition, deliver value and drive the ‘green’ agenda among all stakeholders, including: Government – Nedbank will continue to support government, wherever possible, in leveraging the opportunities presented by the growing ‘green’ economy to address some of the environmental and social challenges facing South Africa. Clients – Nedbank Group is in a good position to enhance its client value proposition through the provision of ‘green’ financial products and services. Suppliers and partners – Through collaboration with suppliers and business partners the group is looking forward to helping move South Africa's financial services industry, and the country’s economy as a whole, towards a low-carbon future. Staff – The group’s aim is to continue reducing its own direct carbon footprint in partnership with its employees. Intensity reduction targets remain in place and are incorporated in performance assessments, as does a focus on promoting environmental awareness and action among staff members. Investors – as environmental regulation increasingly drives the Sa economy, ‘green’ companies and technologies are set to become key contributors to sustainable investment success. carbon neutrality positions Nedbank Group at the crest of this investment wave.

Nedbank Group will continue to explore a range of offset projects in South africa and africa, particularly those that include renewable energy, avoided deforestation, and the promotion of reforestation and biodiversity conservation. cLimAtE chANGE POSitiON StAtEmENt In 2010 Nedbank Group updated its formal climate change Position Statement. The statement is a public declaration and pledge by the group to reduce its impact on the environment through driving a reduction in the consumption of energy, water and paper, and reducing business travel, thereby furthering an overall reduction in carbon emissions. The intensity reduction targets were set in line with the National Energy Efficiency accord (to which the group is a signatory) and in consultation with WWF-SA. To support continued carbon neutrality these reduction targets remain highly relevant and, in addition to including new targets for paper and water efficiency, the updated climate change Position Statement sees the group working more closely with suppliers to help them measure, manage and reduce their carbon emissions, thereby enhancing the overall impact of reduction efforts. a policy of preferential procurement from suppliers that demonstrate a commitment to these reduction principles will serve to entrench further environmental sustainability as a core business imperative among many of the bank’s supplier businesses. REDUctiON tARGEtS Intensity reduction targets per fulltime employee (FTE) were chosen to measure Nedbank Group’s carbon reduction, as this allows for both organic growth and continuous improvements in reporting on greenhouse gases (GHG) (carbon footprint). Targets include: Resource Target Energy 12% reduction by the end of 2015 based on 2005 levels or 5 335 kwh per FTE. Water 10% reduction by the end of 2011 based on 2009 levels or 17,2 kl per FTE. Paper* 5% reduction by the end of 2015 based on 2010 levels. Waste 10% reduction by the end of 2011 based on 2009 levels or 34,12 kg reduction per FTE. Recycling 3% increase in recycling by the end of 2011 based on 2010 levels or 34,69 kg per FTE. carbon emissions (includes business travel) 12% reduction by 2015 (from 2007 levels) or 7,67 tonnes per FTE.   * The new paper target has been set as an absolute target and not an intensity reduction target, as most of the group’s paper usage has proven to be related to client communications and related regulatory requirements and less so to individual employee usage.

CARBON CREDITS FOR INTEGRATED SUSTAINABILITY NEDBANK GROUP’S APPROACH TO THE ACQUISITION OF CARBON CREDITS IS CLOSELY ALIGNED WITH ITS INTEGRATED SUSTAINABILITY STRATEGY. FOR THIS REASON THE CARBON CREDITS NEEDED TO ATTAIN CARBON NEUTRALITY WERE OBTAINED FROM THE RUKINGA PROJECT IN KENYA AS WELL AS THE UMDONI GEL FUEL LOW-INCOME HOUSING PROJECT IN KWAZULU-NATAL AND THE SOIL & MORE RELIANCE PROJECT IN THE WESTERN CAPE: Rukinga Project, Kenya – Nedbank is delighted to continue its association with this project in 2010. It recently became the world’s first reducing Emissions from Deforestation and forest Degradation (rEDD) project to issue carbon credits. The project is successfully preventing the deforestation of kenya’s kasigau corridor while delivering significant economic, social and cultural benefits to local communities. Umdoni Gel Fuel Low-income housing Project, KwaZulu-Natal – This project reduces carbon emissions by promoting the switch from fossilised and unsustainably harvested fuel to the use of bioethanol gel (a byproduct of the local sugarcane industry). The umdoni Municipality provides 4 000 households that are offgrid with an energy-efficient cooking stove that burns bioethanol gel. On a monthly basis the municipality also provides seven litres of the ioethanol gel to each participating household. benefits of the project include: reduced reliance on fuel sources that are not environmentally friendly. reduced fire threat. reduced air pollution during periods of cooking and heating. reduced household expenditure on energy. Soil & More Reliance, Western cape – This project generates carbon offsets through the avoidance of methane emissions by displacing the dumping of organic waste by the anaerobic composting treatment of garden and park waste in cape Town. The social, environmental and economic benefits from the project and local use of the compost include: Sustainable improvement of soil fertility and increase in water retention capacity of the soil in the western cape region. Improved crop yields, extension of growing season and reduced requirement for and costs of chemical fertilisers and pesticides. Direct employment for the composting project and additional temporary employment during the planned construction of a new production site.

Developments AROUND targets in 2010

In 2010 the carbon intensity reduction targets again formed an important component of groupwide performance assessment measures. a specifically mandated task team tracks performance against these targets on a monthly basis, works to raise awareness of ways in which the targets can be achieved and considers additional carbon reduction initiatives.

carbon Emissions

Good progress was made against this target during 2010 thanks to a number of internal carbon reduction initiatives.

In line with the group’s commitment to continued carbon reduction, it extended the measurement and scope of its 2010 carbon footprint here.

* Fulltime employee.

ENERGY

Given that the largest percentage of the group’s carbon footprint (77%) is from energy usage, 2010 saw intense efforts to reduce usage wherever possible. Initiatives included the installation of motion sensors, heat pumps, blockout blinds and the upgrading of numerous building management systems. The initial capital outlay of approximately r6,6 million to implement this new technology has resulted in an additional reduction in electricity usage of 13% per FTE.

* Fulltime employee.

 

Water

The group’s initial water intensity reduction target (5% reduction by 2010 from 2005 levels) was met by the end of 2009 and a new target was set. a number of initiatives already resulted in a significant reduction in water consumption of 5% for 2010 against the new target. Total 2010 water consumption for campus sites was 263 876 kl (approximate retail consumption was 114 328 kl). waterless urinals and dual-flush toilets are being introduced in an effort to reduce water consumption, while the collection of rainwater and recycled water for these purposes will have a further positive impact in the years to come.

The use of bottled water has been discouraged at all Nedbank Group offices and branches, and employees are now requested to use glass jugs that can be refilled at filtered water points. by raising awareness of the carbon-intensive process of bottling and transporting bottled water, it is hoped that employees will eventually stop purchasing bottled water for their personal and home use too.

PAPER

The original paper intensity reduction target (10% reduction per FTE from 2007 levels) was not achieved. This was due in part to inaccuracies in the original base (impacting previous reporting periods) as well as factors such as the inclusion of Imperial bank, growing regulatory requirements and legacy systems. Despite these challenges, a 1,2% decrease per FTE from 2007 levels was realised. It should be noted that, although paper accounts for only about 2% of Nedbank Group’s overall footprint, paper reduction remains an area of focus. Paper recycled at Nedbank’s campus sites amounted to 342,74 tonnes.

New technology planned for implementation in 2011 will assist with the reduction of paper consumption in Nedbank branches, as will a number of other initiatives, including:


Recycling is an important part of Nedbank’s environmentally friendly initiatives. Sorting happens at source in all the Nedbank buildings.

• The implementation of double-sided printing of home loans
  statements, which resulted in paper savings of over 400 000 sheets in the last quarter of 2010.
  
• The continued rollout of electronic statements (eStatements) for
  Nedbank retail card and transactional products. while the project aim for 2010 was to extend the rollout of eStatements to include home loans, personal loans, investment products and asset finance, capacity and system constraints prevented this by the end of the year. all product areas have committed to completing this functionality by the end of 2011. To date 155 000 clients have been registered on eStatements, resulting in a paper cost reduction of over r400 000.
  
• The introduction of paperless ATM functionality, with all machines
  now offering users a choice to print a receipt or view it onscreen.
  
• An extensive review of all form-intensive account application
  processes. where possible, application forms are being consolidated and shortened with a view to reducing the amount of paper used when opening Nedbank accounts. Online applications are also actively encouraged. This review process will continue in 2011.

Waste AND Recycling

A 10% intensity reduction in waste generation has been set, based on 2009 figures (5% year-on-year reduction for 2010 and 2011). This translates into a 34,12 kg reduction per employee for the period 2009 to 2011. a 5% increase in recycling was targeted for the end of 2011, based on 2009 figures. Pleasingly, this target was achieved at the end of 2010 and the new target for the end of 2011 is a 3% increase based on 2010 levels.

• Provision of a procedure manual for wet waste and recyclable waste at all Nedbank Group properties.
• Worm farms have been introduced at a number of head office sites to reduce ‘wet’ waste.
• Collection of compact fluorescent lamps (cfLs), batteries and printer cartridges continued to allow for responsible disposal or recycling where possible.
• General waste sent to landfills amounted to 497,33 tonnes.
  
  

Business travel

The business Travel Policy has been updated to include ‘green’ travel guidelines, which highlight the need to use business travel wisely and improve travel behaviour including the preferred use of video conferencing.

Improved video-conferencing facilities have been implemented at major campus sites and use of these facilities is actively encouraged over business travel.

A carbon reduction of 148,04 tonnes was also achieved in 2010 through the use of staff shuttle services. The shuttle service made approximately 30 trips per day, transporting an average of six employees per trip between Nedbank’s offices in the Sandton area. The aim is to increase the number of staff members carried per trip to an average of 10 in 2011, thereby increasing the total carbon savings.

Environmental Expenditure

During 2010 Nedbank Group channelled R54,6 million (2009: R31,3 million) into environmental initiatives (including the achievement of carbon neutrality). The increase in spend is a reflection of the strategic relevance of environmental issues to Nedbank Group. This occurred across a number of business areas, including Nedbank retail, Nedbank capital and Nedbank Property finance, with significant increases in spend shown in Nedbank Property Services, Enterprise Governance and compliance (EGc), Group Technology, Group Marketing and communications and The Green Trust.

Carbon Footprint measurement

The overall reported GHG emissions in absolute terms increased by 0,16% year-on-year from 2009 to 2010. However, this increase is as a consequence of efforts to continue to expand Nedbank Group’s GHG report boundary and scope (see below), while simultaneously focusing efforts on reducing its environmental impact. The year 2010 saw a significant increase in reported Sa facilities and operations through the incorporation of Imperial bank’s carbon data following its acquisition during 2010. In addition, 2010 also saw the inclusion of the electricity consumption emissions arising from non-Sa Nedbank Group operations.

REPORTING PERIOD	FINANCIAL YEAR 2010
Methodology	The GHG Protocol – corporate accounting and reporting Standard (revised edition)
Inclusions	Nedbank Group’s activities, equipment and operations, as well as the actions of its employees associated directly with 583 ( 2009: 541) Sa offices and branches, which include the activities, equipment and operations of Imperial bank as integrated into the greater Nedbank Group. Actual or estimated electricity consumption (scope 2) associated with the non-SA wholly and partially owned subsidiary companies: − Seven facilities of the European operations. − Five African operations (outside of South Africa).
Exclusions	Data required to undertake emissions calculation is not currently available for the following: Scope 1 and 3, as they relate to non-SA offices due to a lack of reliable data. To balance this exclusion, the staff headcount from these offices has been excluded from the fTE intensity calculation. The net result is a more conservative total FTE figure. Emissions associated with the operation and service of ATMs, self-service terminals (SSTs) and point-of-sale (POS) devices located away from a branch or office premises and other remote devices. Any other premises or activities owned or operated by Nedbank Group not explicitly referenced in this report.

 

Fulltime employee Count and occupied office space included in the Report	Non-SA	2010	2009	2008	2007 baseline
Total occupied floor space of reported buildings (m2)		542 147	520 821	283 953	261 450
Employees included in FTE calculations	0	25 884	24 284	15 416	14 203
Total number of FTEs	1 641*	25 884	24 284	26 422	25 518
Percentage of all employees covered by the report	0**	100,00	100,00	58,35	55,66

NEDBANK GROUP GHG EMISSIONS INVENTORY – CO₂e (TONNES)

				2007
SCOPE	2010	2009	2008	baseline
Scope 1: Direct emissions from:	1 667,82	428,61	1 222,08	694,85
Fuel used in equipment owned or controlled by Nedbank Group
(eg generators)	150,11	244,64	717,47	419,72
Air-conditioning and refrigeration gas refills	1 419,99*	75,27	380,79	140,18
Nedbank Group fleet of vehicles	97,73	108,70	123,82	134,95
Scope 2: Indirect emissions from purchased electricity:	165 343,42	167 753,56	99 908,46	96 361,71
Purchased electricity Ð SA	155 929,55	167 753,56	99 908,46	96 361,71
Purchased electricity Ð Non-SA	9 383,87
TOTAL SCOPE 1 AND 2 EMISSIONS	166 981,24	168 182,17	101 130,54	97 056,56
Scope 3: Indirect emissions from:	46 167,43	43 458,99	32 930,69	31 483,31
Business travel in rental cars	822,07	329,45	371,53	498,59
Business travel on commercial airlines	4 055,65	5 436,01	5 574,51	7 790,61
Business travel in employee-owned cars	2 006,92	1 435 64	2 203,98	2 244,13
Employee commuting	35 123,84	32 007,95	21 494,46	17 665,83
Product distribution	2,71	1,86	106,49	Ð
Consumption of office paper	4 156,24	4 248,08	3 179,72	3 284,15
TOTAL SCOPE 1, 2 AND 3 EMISSIONS (GHG Protocol)	213 148,68	211 641,16	134 061,23	128 539,87
Non-Kyoto Protocol GHG emissions	279,41	1 440,16	1 407,46	1 406,38
	213 428,09	213 081,32	135 468,69	129 946,25
SPLIT OF NEDBANK GROUP EMISSIONS CO2e (tonnes)
Scope 1 (%)	0,78	0,20	0,90	0,53
Scope 2 (%)	77,46	78,73	73,75	74,16
Scope 1 and 2 (%)	78,24	78,93	74,65	74,69
Scope 3 (%)	21,63	20,40	24,31	24,23
Non-Kyoto Protocol GHG emissions (%)	0,13	0,68	1,04	1,08

 

SCOPE 1 EMISSIONS

Although the reported scope 1 emissions from refrigerants rose significantly year-on-year as a consequence of the replacement of current gas with less dangerous (but higher emitting) refrigerants, emissions from all scope 1 activities remained under 1% of total emissions.*

As electricity supply interruptions were minimal throughout 2010, use of diesel generators remained low compared with previous years.

* Fulltime employee.

SCOPE 2 EMISSIONS

Approximately 77% of the total GHG emissions reported for 2010 (of which almost 73% originate in South Africa) are from purchases of third-party electricity generation.

Nedbank Group has continued to target energy consumption and is pleased to report a year-on-year reduction of more than 7% in the total energy consumed by SA operations, despite the inclusion of Imperial Bank facilities and staff to the 2010 GHG report boundary.

Through the continued focused effort on reducing electricity consumption and the completion and occupation of Phase 2 of the headoffice building at 135 Rivonia Road, electricity consumption at the large headoffice and regional buildings in 2010 is 13,5% lower year-on-year at 83 341 mWh (2009: 96 437 mWh) and is 17% less than the 2007 baseline.

SCOPE 3 EMISSIONS

Approximately 22% of the total 2010 GHG emissions arose from reported scope 3 activities, over 16% arising from staff commuting, 3,2% from staff business travel, 1,95% from emissions arising from third-party manufacture of office paper and the remainder from product distribution and non-Kyoto GHG emissions.

• Business Travel
  Emissions from business travel have reduced by 4,39% year-on year overall, representing a net reduction of around 1,2 million km in reported business travel. It is interesting to note the annual shift from business travel on commercial flights (-7,8 million km) in favour of travel in rental and employee-owned cars (+2,4 and +2,6 million km respectively).
• Commuting
  Emissions from staff commuting rose 9,7% to 35 124 tCO2e as a consequence of a small rise in the average emissions per FTE (+3% from 1,32 tCO2e per person to 1,36 tCO2e per person) and due to the inclusion Imperial Bank staff.
  
  Commuting emissions for all staff are estimated by multiplying the average emissions per survey respondent by the FTE count. The 2010 SA staff commuting survey again received valid responses from approximately 65% or 16 859 staff members.
• Paper consumption
  A small decrease (less than 1%) in 2010 has been recorded in total year-on-year paper consumption, which translates into a 7% reduction of paper consumed per FTE.

NEDBANK SOUTH AFRICA PERFORMANCE TARGETS

	Progress	Progress
NEDBANK SOUTH AFRICA	from 2009	from 2007
KEY PERFORMANCE INDICATORS	(Y-O-Y)	baseline	2010	2009	2008
Total emissions CO2e (tonnes, including non-SA)	0,16%	64,24%	213 428,09	213 081,32	135 468,69
Emissions per FTE	(6,03%)	(9,88%)	8,25	8,77	8,79
Emissions per m2	(3,98%)	(21,27%)	0,39	0,41	0,48
Emissions per operating income (g/rand)	(21,41%)		9,03	11,49
Energy
Consumption in kWh	(7,05%)	50,58%	151 388 224*	162 867 539	99 908 460
Consumption in kWh per FTE	(12,80%)	(17,37%)	5 849	6 707	6 481
Paper
Tonnes used	(0,77%)	80,03%	1 917,29	1 932,22**	1 025,29
Usage per FTE (tonnes)	(6,91%)	(1,22%)	0,0741	0,0796**	0,0665
Business travel – commercial airlines (km)
Commercial airlines (km)	(20,13%)	(44,70%)	31 032 595	38 852 231	49 195 392
Air travel per FTE (km)	(25,06%)	(69,65%)	1 199	1 600	3 191
Business travel – rental cars (km)
Rental cars (km)	124,71%	47,87%	4 324 603	1 924 492	1 996 987
Rental cars per FTE (km)	110,82%	(18,86%)	167	79	130

* Electricity consumption for campus sites is 83 341 027 kWh. The approximate retail consumption
is 48 870 005 kWh.
** As part of the 2010 review of the GHG data, a calculation discrepancy (as a result of human error) was identified. It should be noted that the discrepancy was not material in terms of its impact on the overall 2009 carbon footprint. As is standard practice, an additional number of credits were allocated in 2009, which comfortably took this discrepancy into account.

STAFF COMMUNICATION, TRAINING AND ENGAGEMENT

The buy-in and commitment of Nedbank Group employees to environmental sustainability are of paramount importance to its ability to achieve its vision of becoming a sustainability leader in South Africa. During 2010 much focus was placed on growing awareness of the environmental imperative and affording staff members the opportunity to involve themselves in protecting and nurturing the environment.


‘Green’ intranet site – This valuable resource offers a wealth of information, advice and guidance around integrating ‘green’ principles into employees’ work and home lives. The nedbankgreen.co.za website is a useful environmental resource for use by staff and Nedbank Group clients.


Deep Green Day – The 2010 annual Deep Green Day saw employees across the country living out the theme ‘Picture yourself greener’ by participating in a range of initiatives from tree planting, recycling and community sustainability projects to submitting ideas on how individuals and corporates can contribute more to environmental preservation and climate change mitigation.


Groupwide email communications – This general communication proved invaluable in maintaining momentum among staff members, particularly in terms of efforts to achieve reduction targets.

3sixty – the staff magazine – once again served as a valuable communication tool concerning environmental issues. Numerous articles around environmental management were included throughout the year.


Employee advocacy – While the planned ‘green’ advocacy programme was not fully implemented in 2010, the work completed within the programme was utilised on the ‘green’ internet and intranet sites. Increased employee advocacy will remain a focus for 2011.


Staff roadshows – The Chief Executive, Mike Brown, undertook a series of staff roadshows. Included in these presentations was an update on the group’s ‘green’ credentials and staff were encouraged to increase their involvement in driving environmental sustainability in their areas of influence.


Sustainability Resource – With the primary aim of providing groupwide access to important sustainability information, this shared portal carries training material, research done on climate change, water and social sustainability, legislation and policies, international best practice, and environmental risk, as well as tools such as SEMS and screening and assessment methods.

Super Sustainability Forum – This teleconferencing initiative is aimed at all employees outside of the Sandton headoffice and reduces travel that would have been required for face-to-face meetings.


Communication sessions – These provide personal assistants and administration staff, as well as select influential staff members, with important insights into a variety of environmental sustainability initiatives and their implications for the business. The aim is to enable these employees to use their wide sphere of influence within the group to help change environmental mindsets.




TRAINING AND RELATED POLICY ACKNOWLEDGEMENTS

Ensuring that employees fully understand the group’s environmental sustainability objectives and commitments is considered essential in order to afford them every opportunity to contribute to the relevant initiatives. To this end, and by way of aligning the environmental vision of all internal stakeholders, Nedbank Group employees are required to acknowledge that they have received, read and understood the relevant policies on an annual basis. Sustainability policy acknowledgements include a formal assessment.


In 2010:

• 84% of employees completed the Environmental Policy acknowledgement;
• 85% of employees completed the Corporate Responsibility acknowledgement; and
• 65% of employees completed the commuting and awareness survey. The commuting data is used to calculate the group’s carbon footprint (scope 3), while the awareness data informs future communication and behavioural change initiatives. It is pleasing to note that individual staff commitment to overall sustainability and green issues has increased from 74% in 2009 to 95% in 2010. Also, more than 88% of staff surveyed believe that Nedbank Group has assisted them in reducing their own environmental footprint.
  

A total of 81% of Nedbank Group employees have completed the online sustainability training, 4 804 of whom undertook the training in 2010. Training covers the basic principles of sustainability, including the Nedbank Group’s philosophy and approach to sustainability, its achievements to date and the role of the individual employee in assisting it in achieving its sustainability objectives.


The original training course, developed in 2005, has been regularly updated as sustainability issues have progressed. As such, a revised training course has been developed and all staff will undertake this training in 2011 with a view to:

• further increasing awareness and building knowledge of sustainability issues and explaining why they matter locally and internationally
• encouraging a change in individual attitudes and behavior; and
• exposing staff to what NedBank Group is doing in the area of sustainability.




LEADING THROUGH COLLABORATION

For its environmental sustainability efforts to be as effective as possible Nedbank Group recognises that it needs to involve as many stakeholders as possible in its sustainability journey. Environmental sustainability is not approached with a view to securing a competitive advantage, but rather with the intention of becoming a leading corporate citizen in this area, so that the group can enable as many other companies and individuals as possible to join the 'cause' for the ultimate benefit of all. The year 2010 has been a year of sharing learnings and experience with stakeholders, including the media, unions, suppliers and academic institutions.

PARTNERSHIP WITH WWF-SA

After two decades the unique conservation partnership between Nedbank Group and WWF-SA remains as strong and mutually beneficial as ever. WWF-SA continues to provide direct input into the group's sustainability and environmental policies, investment guidelines, strategies, systems and training. A representative of the organisation attended the GEF, which was also supported by a number of working committees. WWF-SA continues to work with Nedbank Group to define, review and assess targets for the group's environmental actions to ensure that they serve to drive the group's environmental influence and enhance its environmental risk management processes. WWF-SA remains involved in the WWF-SA/ Nedbank Carbon-neutral Task Team. They provide input into ongoing offsetting projects and ensure the environmental integrity of further work being done in this area.

NEDBANK GREEN AFFINITY AND THE GREEN TRUST

In 1990 Nedbank Group helped establish The Green Trust in partnership with WWF-SA. Since then the group, through The Green Affinity Programme, has donated more than R100 million to more than 170 conservation projects throughout South Africa (see here for further details). Since inception The Green Trust's mission has been to bring together environmental and social sustainability in order to enable people to live and work in harmony with the environment. As it celebrates its 20th anniversary, The Green Trust has proven that a strong people focus is imperative to achieve environmental sustainability and the protection of the planet's natural heritage. The Nedbank Green Affinity donations to The Green Trust increased by 19% to over R6,3 million (2009: R5,3 million).

‘The Green Trust has really brought the focus of environment back to a people-centred one, thus bringing real change to people’s lives and making conservation relevant.’
Archbishop Desmond Tutu

The Green Trust funds projects in climate change, freshwater conservation, marine conservation, preservation of outstanding places, conservation of species of special concern and conservation leadership.


For more information on The Green Trust go to www.nedbankgreen.co.za.

 

UNITED NATIONS ENVIRONMENT PROGRAMME FINANCE INITIATIVE


Nedbank Group was the first SA bank to join the United Nations Environment Programme Finance Initiative (UNEPFI) in February 2004. This initiative is a unique global partnership between the United Nations Environment Programme (UNEP) and the global financial sector. UNEPFI works with some 200 financial institutions that are signatories to the UNEPFI Statements, and a range of partner organisations to develop and promote linkages between sustainability and financial performance.


UNEPFI launched its African Task Force in South Africa in January 2002 to:

• address sustainability issues within the African context;
• set sustainability priorities for the African financial sector; and
• drive a holistic, integrated sustainability approach accross all African finance sections
  

Nedbank Group continued to chair the UNEPFI African Task Force during 2010 with a work programme focused on climate change and the water issues facing the continent. The group also co-chairs the Water and Finance Workstream, which focuses on industry usage of water and water-offset initiatives. Nedbank Group contributed to the workstream’s first publication in the Chief Liquidity Series ‘Agribusiness’, which contains geography and sector-specific water materiality briefings, including a study on the impact of water scarcity on agriculture in South Africa.


The second study on the power sector was launched during World Water Week in Stockholm in September 2010. This study includes a chapter focused on water sustainability and power generation in South Africa.


Nedbank Group remains involved in the Global UNEPFI Steering Committee and the Banking Commission, and is a member of the Biodiversity and Ecosystem Services Workstream.


Further details regarding UNEPFI and copies of its various publications can be found at www.unepfi.org.


EXTERNAL ENGAGEMENTS AND ENVIRONMENTAL
SUSTAINABILITY INITIATIVES

As part of Nedbank’s commitment to influencing others to embark on their own sustainability journeys, the group engages with numerous organisations and individuals in order to share sustainability experience and knowledge. Some of these engagements and initiatives during 2010 included:


Nedbank Group Sustainability Outlook – Researched by the University of Cambridge Programme for Sustainable Leadership and with a distribution of over 100 000, this sustainability publication has as its primary aims to encourage debate around, and awareness of, sustainability issues – particularly in terms of investments and the need to consider sustainability criteria when making investment decisions. Two editions were sent out in 2010 to banking analysts, the financial and environmental media, various Nedbank Group clients, Green Affinity members and a number of educational and industry databases. Very positive feedback was received from recipients.


Financial Mail Green Business Guide – In 2010 Nedbank Group sponsored this publication, which is aimed at promoting ‘green’ purchasing behaviour and highlighting companies that are committed to environmental conservation.


‘I want to congratulate you on an excellent publication. Minister Winde was so impressed with the publication that he requested that I mention it to other interested parties.’ Annamarie Smit, Ministry of Finance, Economic Development and Tourism, Western Cape Government


Nedbank BDFM Greening Your Business – To extend the group’s sphere of ‘green’ influence Nedbank Group’s sustainability division partnered with Business Day and Financial Mail to produce an online training course Greening Your Business. The course was offered free of charge for a limited period to Nedbank Group clients and the general public. More than 1 200 companies completed the course, with positive feedback received from participants.

‘A great initiative; I could not wait for Mondays to receive the new modules.’


‘Let government officials, school principals and educators participate in this course – we can only hope it will inspire them to think of environmental policies in their Departments and schools.’


‘The course made me aware of the parameters within which to operate. I know the action steps required to start, implement and achieve green status for an organisation, both my own and others.’


Earth Hour – Nedbank Group again participated in the WWF Earth Hour Campaign in 2010. It is the world’s biggest mass action initiative aimed at addressing climate change. For one hour people on all seven continents switched off their lights in a symbolic gesture to call on world leaders to adopt a unified approach that will succeed in keeping global warming below two degrees celsius. As a corporate sponsor of Earth Hour, Nedbank Group hosted a media event in Cape Town, which included switching off the lights at the then newly completed FIFA World Cup Cape Town Stadium and on Table Mountain. In addition to encouraging its clients, suppliers and staff to switch off their lights on 27 March 2010 between 20:30 and 21:30, lights were also switched off in approximately 30 Nedbank Group buildings around the country.

Nedbank Green Wine Awards (Cape Winemakers Guild) – Building on Nedbank’s 14-year partnership with the Cape Winemakers Guild (CWG) and the CWG Development Trust, as well as the Biodiversity and Wine Initiative – which integrates conservation considerations into winemaking – in 2009 Nedbank Group partnered with WINE Magazine to launch the Nedbank Green Wine Awards. The awards serve the purpose of raising consumer awareness by elevating sustainable farming practices so that they can make an informed choice when making their wine purchases. The awards also recognise SA winemakers who are making a difference and encourage environmentally sustainable farming.


Winners for 2010 included:

• best white and best wine Overall: reyneke woolworths chenin blanc 2009
  
• best red: reyneke reserve red 2007
  
• best Sweet: Stellar Heaven on Earth Natural Sweet
  
• best Environmental Practices award: Graham beck wines
  
  




conferences and engagements – During 2010 Nedbank Group participated in a number of conferences and engagements aimed at addressing various environmental sustainability issues. These included:


• BUSA event with the Minister of Environmental and Water
  Affairs – Government’s carbon reduction targets, as set in copenhagen, were discussed.
• Green Economy Summit – The Department of Environmental affairs, as a coordinating department for the development of a national ‘green’ economy strategy, called this summit in May 2010 to gather insights into key focus areas and issues requiring attention and start building national consensus on the ‘green’ economy path as an innovative way towards sustainable consumption and production patterns.
  
• The African carbon and Investment Forum – arranged by UNEP FII, this forum sought to advance dialogue among, and input by, the african banking sector concerning a regional agenda for tackling climate change and promoting low-carbon economic growth. Nedbank Group participated in a number of the sessions to help drive an understanding of the carbon market in africa.
• UNEP-DBSA conference on Solar Water heating – The aim of this conference was to consider how to facilitate the practical implementation of a national solar water heating programme to
  meet national interests. Nedbank participated in the conference and attended various subsequent meetings with the Department of Energy (DoE), Development bank of Southern africa (DbSa) and banking institutions will provide feedback regarding the proposed solution presented by the DoE.
  
  

NEDBANK CAPITAL GREEN MINING AWARDS
Despite the impact of the global economic crisis on the mining industry, industry stakeholders remain committed to the preservation of the environment and the upliftment of the communities within which they operate. The Nedbank capital Green Mining awards recognise african mining and mineral beneficiation operations that have made a significant effort to promote sustainability. The 2010 winners of the fifth annual Nedbank capital Green Mining awards are mentioned below.

The winning projects were:

• Environmental category: afriSam’s cO2 footprinting initiative.
  
• Socioeconomic category: joint winners – Lonmin Plc’s Silindini Thusong Service centre and Silindini bridge, and Exxaro’s Zikhulise SME Development and Skills Training centre.
  
• Sustainability category: E Oppenheimer & Son and De beers consolidated Mines Diamond route Project.
  




As the winner of the Sustainability category in the 2010 Green Mining awards, the De beers Diamond route was deemed by the judges to demonstrate an overwhelming commitment to sustainability at every level.

Initiated in 2002 as a partnership between E Oppenheimer & Son and De beers consolidated Mines, this national, broad-based initiative delivers an array of environmental and socioeconomic benefits to communities and individuals in and around the many conservation areas owned by
the founding businesses. with a vision of making a lasting contribution to conservation, enhancing environmental awareness and promoting social development, the De beers Diamond route effectively showcases conservation excellence, leverages training and education opportunities,
helps to develop small businesses and creates sustainable livelihoods.

Since its establishment, and through the many effective partnerships it has formed, the project has created 261 permanent jobs, supported more than 120 conservation research projects, and delivered practical training to aspiring conservationists from disadvantaged backgrounds.


GREENING THE GROUP’S SUPPLY CHAIN

As part of the extension of Nedbank Group’s Climate Change Position, it is focused on working closely with suppliers and influencing them to make greater efforts to incorporate environmental sustainability in the way they work.


During 2010 the group hosted supplier training and awareness sessions with about 150 key suppliers in the Retail and Group Technology areas. Nedbank’s journey and learnings were shared to encourage similar actions and behaviours among suppliers.


Nedbank’s Group Technology Division added environmental commitment and action to its procurement decision formula in an effort to prioritise the purchase of materials and equipment that reduce environmental impact. A set of standards was developed as the main criteria for evaluation of suppliers and products going forward. These standards are to ensure that environmental considerations are included in the overall evaluation of potential suppliers.


VENDOR ONBOARDING


The year has seen a major focus on the process of onboarding new Nedbank Group vendors. An electronic system was introduced in March 2010 with the intention of eliminating paper and improving processes. The responsibility for updating data now rests with vendors, as does the provision of proof around governance and risk management requirements in terms of broad-based black economic empowerment (BBBEE), tax classification and banking details.


In terms of environmental issues the first phase of this project has been based on awareness rather than compliance. All new vendors are required to answer nine questions, ranging from the confirmation of the existence of an environmental policy to the practice of recycling, reuse and reduction, with specific emphasis on water usage reduction. Of the approximately 900 new vendors, less than 3% have indicated that they have an environmental policy.


However, greater success has been achieved with international IT vendors, including Microsoft, IBM and HP. Locally, the group has concentrated on relationships with manufacturing and services vendors, and success has been achieved with vendors contracted for the construction and establishment of new branches and ATM lobbies, as well as the upgrading of existing branches.


Each commodity specialist within Nedbank’s Group Procurement Division is tasked with ensuring careful consideration of environmental factors in all supplier engagements.


The 2010 procurement and supplier initiatives aimed at greening Nedbank Group’s supply chain included:


Nedbank Sandton Phase 2 building – All new desks were manufactured using Forestry Stewardship Council-accredited wood. Group Procurement inspected and audited the manufacturing process from the receipt of raw materials to the completion of finished product. The chairs as well as the carpets are mostly made of recyclable materials. All tenants agreed to adhere to Nedbank’s environmental approach in terms of water, electricity and waste management (see the case study in the Nedbank Corporate overview, here).


Hotels – All hotels where Nedbank Group has significant occupation have been inspected to ensure environmental awareness practices, with many using card-controlled lighting and water-saving shower heads.


Car rental – Nedbank Group has two preferred car rental vendors, both of whom have improved their facilities so as to use less water for washing cars and to reduce paper use in their administrative processes. Greater use of shuttle services and the Gautrain is encouraged.


Air travel – The group continues to engage with all airlines regarding the reduction in carbon footprint. They all provide regular progress reports on the reduced use of fuel through the introduction of new planes or through improved processes with older aircraft.


Stationery – Approximately two dozen environmentally friendly stationery items were evaluated and, while these were a good fit with the group’s environmental policies, the costs were excessive. The possibility of combining orders with other organisations is being investigated to benefit from economies of scale.


Computer consumables – All suppliers of computer consumables are ISO-accredited. A new management information system, to provide improved data on toner and printer usage, is currently being tested. Nedbank Group has engaged with Xerox on the possibility of introducing remanufactured cartridges, rather than sending empty cartridges to landfill sites.


Paper – As far as the procurement of paper is concerned, a life cycle analysis (LCA) is considered to inform decisions regarding the use of virgin or recycled paper for specific purposes across the group. LCA is the process by which the total impact of an activity is quantified.


Cleaning and hygiene services – The group continues to make use of biological cleaning liquids and processes at its main campus sites. The Innu-Science-developed product has been certified as being environmentally friendly and 90% of the total product is biodegradable within 14 days.

Couriers – UTI Mounties, the group’s main vendor, has introduced new vehicles with improved fuel efficiency and a bigger load capacity. A careful evaluation of all collection routes resulted in an overall reduction in travel distances.

   

FACILITATING SUSTAINABILITY THROUGH PRODUCTS AND SERVICES


The Nedbank Green Affinity – Nedbank Group clients are encouraged to support environmental causes via The Green Trust. They can do this by selecting Nedbank Green Affinity banking, investment and insurance products. As clients utilise the products, Nedbank Group donates money on their behalf to the trust at no cost to the clients. In 2010 Nedbank Green Affinity donations to The Green Trust increased by 19% to R6,4 million (2009: R5,3 million).


Nedbank Savvy Account – The Nedbank Savvy Electronic Account remains a popular transactional banking vehicle for environmentally conscious consumers. An electronic current account with a full range of transactional account features, Savvy is completely paperless and linked to the Nedbank Green Affinity offering, allowing clients to conserve and contribute to the environment.

eStatements – For every client that elects electronic statements rather than paper statements, Nedbank donates 25 cents to The Green Trust specifically for the Climate Change Programme.


Solar water heater programme – The group is committed to supporting government in achieving its goal of installing one million solar water heaters in SA homes by 2014. To this end Nedbank Group has prepared a comprehensive solar water heater initiative, including the option to replace a burst geyser with a solar geyser, to be launched early in 2011. The programme also includes accessible and understandable consumer education and affordable solar geysers for staff and clients.


Nedbank Wealth become programme – In 2010 Nedbank Wealth introduced a world class life insurance offering, complemented by a holistic health and wellbeing programme called become. In addition to personal wellness, the programme provides members with access to educational information on how they can contribute to the wellbeing of the planet.


Carbon financing – Given the growth of the ‘green’ economy, investors and business are actively seeking innovative, environmentally aware finance partners that can help them drive their involvement in this dynamic economy. Nedbank Capital’s Carbon Finance Team provides forward-thinking finance solutions, guidance and advice.


Advisory services – Nedbank Group’s respected ‘green’ credentials have resulted in the group becoming a sought-after provider of environmental guidance and assistance to a variety of retail and corporate clients. Not only does this allow the group to extend its environmental influence, but it also offers further opportunities for new business, thereby contributing to the economic sustainability of the group.


Greenbacks ‘green stream’ – following demand from clients, the Greenbacks loyalty programme was enhanced through the addition of a ‘green stream’, allowing members of the programme to redeem their loyalty points for goods that are environmentally friendly. To date more that 3% of the total number of client redemptions have been for ‘green’ products.