environmental SUSTAINABILITY

EXTENDING OUR ENVIRONMENTAL REACH

THE NEDBANK GREEN AFFINITY AND THE GREEN TRUST

Linked to the Nedbank Green Affinity, The Green Trust is a mutually beneficial partnership between Nedbank Group and WWF-SA, which supports the environment and climate change projects. Since inception in 1990 The Green Trust has funded various projects, including freshwater programmes, marine conservation initiatives, the conservation of outstanding places and species of concern and climate change.

The Climate Change Programme funds projects that (i) promote renewable-energy opportunities, particularly where the benefits accrue to socioeconomically deprived communities, and (ii) support adaptation to climate change among communities whose livelihoods are directly dependent on natural resources.

The Freshwater Programme addresses the wise use of water to ensure the sustainable development of our economy.

The Marine Programme funds projects that contribute towards (i) establishing a network of effectively managed and ecologically representative Marine-protected Areas and (ii) restoring overexploited fish stocks to sustainably managed levels and reducing the impacts of destructive fishing practices.

Conserving outstanding places (fynbos, succulent Karoo and grasslands) – South Africa's terrestrial ecoregions comprise some of the most beautiful landscapes, many of which lie at the very heart of South Africa's culture and history, and form a critical part of the tourism attraction of our country. The Green Trust funds projects that contribute towards:

ensuring that these landscapes (ie fynbos, succulent Karoo and grasslands) continue to serve people in a productive manner by maintaining the natural integrity of these systems (conserving biodiversity); and
ensuring that people utilise the land in a sustainable way that benefits them in the long term.

Species of special concern – Many species are of special concern because conserving their habitat alone will not guarantee their future survival. The Green Trust focuses its efforts on conserving species that are of special importance ecologically, economically or culturally and funds projects in conserving species that are:

identified as priority species, namely the African elephant, the African rhino, the marine turtle, the Southern Ocean albatross, great white sharks, cetaceans; or

defined as:

–	habitat modifiers and keystone species that help ensure the long-term survival and health of many threatened habitats and their associated species;
–	symbolising key global threats to biodiversity; and
–	critical for the health, livelihoods and economic security of local communities when used sustainably.

Conservation leadership – One of WWF-SA's key roles is to encourage all South Africans to take action towards the wise use of the natural environment. Environmental education involves socially, politically and economically empowering people to be able to take action for the preservation of their environment, while incorporating an ethical and spiritual understanding of its importance to them. The Green Trust therefore funds projects that contribute towards the development of the next generation of environmental leaders either at an individual, institutional or sectoral level.

Nedbank Group has donated over R100 million to The Green Trust since its inception in 1990. This money has funded over 150 major projects, with over R65 million of the funds going into conservation, while the rest has been invested to grow the fund. In 2009 Nedbank donated
R5,31 million to The Green Trust (R5,35 million in 2008).

Green Affinity donations (2008 – 2009)

Southern African Sustainable Seafood Initiative: An example of consumer education in action

The Southern African Sustainable Seafood Initiative (SASSI), part of the marine programme, was designed to inform and educate all participants in the seafood chain, from wholesalers to restaurateurs, to seafood consumers, about the critical need for sustainable fishing and seafood consumption. Five years later SASSI has spread its net far and wide, with a growing number of seafood consumers, retailers, restaurants, chefs and seafood chains adopting the SASSI guidelines.

Seafood retailers are invited to become part of the solution, by signing up for the SASSI Retail Charter. The charter provides a mechanism to drive change in seafood businesses by looking at four main focal areas:

Sourcing and procurement
Product range
Communications
Awareness

Three major retailers, Pick n Pay, Woolworths and Spar, have joined the SASSI Retailer Charter, committing to providing more sustainable seafood to their customers.

Ocean Basket, the largest seafood restaurant chain in the country, serving over one million customers a month, has also joined SASSI's Restaurant Participation Scheme, bringing together over 119 stores in support of sustainable-seafood practices.

As setters of food trends, chefs and restaurateurs are key players in creating consumer demand for sustainable seafood. More and more prominent chefs are acknowledging that they too have an important role to play by selecting their ingredients more carefully from sustainable and environmentally responsible sources. While overfishing presents a challenge in terms of supply and availability, chefs diversifying their use of seafood species can not only expand customers' palates, but also improve sustainability by alleviating demand for traditionally popular species.

Seafood consumers across South Africa have responded with enthusiasm to SASSI's multi-pronged awareness-raising programme, including the innovative FishMS, which has received over 70 000 requests from 17 500 unique users. Consumers SMS the name of a fish or seafood species to 079 499 8795 and SASSI immediately SMSs back its status and whether it is a green-listed, orange-listed or red-listed species.

Green Trust project selection

Project application process

Submit a one- to two-page concept outline of the project. This concept proposal should contain the objectives of the project, its approximate timeframe (eg three months or one year), a rough indication of what it will cost, and the organisation that will carry out the project.
Concept proposals are considered at Conservation Project Development and Approval (ConsPDA) meetings. These meetings take place every six weeks. At these meetings WWF-SA decides whether or not concept proposals are in line with the Strategic Conservation Focus (ie this is the first screening of requests for support).
You will be notified in writing if your concept proposal has met the initial criteria or not. If your concept proposal is aligned with the Strategic Conservation Focus, an application form will be sent to you.
Concept proposals should be sent to Cynthia Smith (email: csmith@wwf.org.za or fax: 021 888 2888).
The final proposal is submitted to the management committee of The Green Trust, which meets three times a year. The management committee is made up of three representatives of Nedbank and three representatives of WWF-SA.

Criteria for application

Preference is given to funding environmental conservation projects that:

are strategic and catalytic;
contribute towards poverty alleviation and human livelihoods;
create opportunities for engaging different sectors of society and raising consumer awareness;
leverage environmental commitments from stakeholders such as industry or government;
build capacity; and
educate environmental leaders of the future.

Projects are funded on a maximum three-year timeframe, with an opportunity for project extension being considered only once, under exceptional conditions. In such instances there needs to be clear demonstration of a viable sustainability plan.

Factors that can determine success or failure of an application:

Alignment with stated WWF priorities.
Mix of the funding portfolio at the time of application.
Viability of the project (eg insufficient access to resources, inadequate expertise and inappropriate timeframe).

The Green Trust will not normally consider support for:

Conduit organisations that are not the endusers of the project funds.
Organisations that are not directly involved in environmental and biodiversity conservation.
Initiatives that focus on ex situ conservation activities with little implications for wild populations, eg captive breeding, rehabilitation or the welfare of individuals.
Purely academic research not linked to Green Trust-supported projects or with little evidence of practical application.
Organisations and the purchase of capital equipment, including buildings, fencing and vehicles.
Development of commercial and private conservation enterprises and/or private nature reserves.
Salaries, except as an integral part of a Green Trust-supported project.
Socioeconomic development projects without a core environmental component.
Production of books, videos or films, except as an integral part of a Green Trust-supported project.
Attendance at and travel to workshops, conferences and symposia or the costs associated with convening these events.
Individual bursaries and scholarships, independent of existing Green Trust-supported projects.
Expeditions and eco-trips such as overland trips to raise awareness or funds for conservation.
Advertising campaigns.

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 2009 awards attracted a record number of entries, with a good number of quality entries in the Environmental and Socioeconomic Categories, resulting in much stiffer competition. The winners of the fourth annual Nedbank Capital Green Mining Awards were:

Environmental Category – Rio Tinto QIT Madagascar Minerals’ Biodiversity and Sustainable Management Programme.
Socioeconomic Category – Kenmare Resources’ Kenmare Moma Development Association; and Kumba Iron Ore Sishen Mine’s Zimele Small Business Hub.

The Joe Morolong Vocational Training Centre, submitted by United Manganese of Kalahari, was a runner-up in the Socioeconomic Category. There were no awards made in the Limited Resource and Sustainability Categories.

THE PRINCE’S RAINFORESTS PROJECT

The Intergovernmental Panel on Climate Change has predicted that Africa is likely to be one of the regions worst affected by climate change, given existing vulnerabilities and the projected future impacts of global warming, which include droughts and widespread desertification, flooding of coastal areas, dramatically declining agricultural yields and changing disease patterns. Effectively managing climate change risks will require protecting the remaining natural carbon sinks on the continent, including the tropical rainforests of the Congo Basin, which represents the world’s second-largest rainforest region.

During the course of 2009 Nedbank has worked to raise awareness of the plight of African rainforests on several highly visible platforms, including the World Economic Forum Africa and the Prince’s Rainforests Project (PRP). The primary objective of the PRP in 2009 was to build global consensus around the need to provide emergency funding to rainforest nations to support efforts to curb ongoing deforestation immediately. In March 2009 Tom Boardman chaired a meeting of the Africa Advisory Board to review the PRP’s draft policy document – the Emergency Package for Tropical Forests. One of the outcomes discussion was a signed statement of support from leaders and senior officials representing African rainforest countries, taken forward to a meeting of world leaders convened at St James’s Palace by HRH, the Prince of Wales.

As a result, an International Working Group was set up to evaluate various policy options, including the proposal put forward by the PRP. In October the working group released a report containing its recommendations for halting deforestation, which fed into the debate at the December Copenhagen United Nations Framework Convention on Climate Change COP15.

In 2010 Nedbank Group will renew its commitment to saving the world’s green lungs by purchasing carbon offsets from forestry projects in Africa, as part of its commitment to going carbon neutral.

Our international subsidiaries are also focused on reducing their impact on the environment and details of these efforts can be found at www.nedbankgroup.co.za.

GREENING OUR SUPPLY CHAIN

During 2009 Nedbank Group Procurement, in conjunction with the business clusters, initiated several projects to ensure that the bank and its suppliers remain focused on environmental sustainability issues.

Paper and travel data, which is managed centrally through the Group Procurement ‘Procure to Pay’ system, is included in monthly reports to each cluster. Buying behaviours were investigated and policies updated. Additional focus was placed on the reduction of travel and paper usage, as required by our intensity reduction targets. All business travel is now preauthorised and the carbon cost of travelling is indicated on the order form. The carbon footprinting information is also enhanced by calculating the carbon cost of travel to and from the airport based on distance, car and fuel type.

Environmental issues affecting procurement are discussed at bimonthly Group Procurement committee meetings and actions to reduce the bank’s environmental footprint are implemented via the committee.

Nedbank’s vendor onboarding questionnaire includes a number of environmental questions and certain of the 2009 vendor meetings included a review of their environmental progress. The environmental criteria of our suppliers are receiving the same emphasis as given to BEE preferential procurement.

Extending our environmental reach through our supplier base

Paper and travel data, which is managed centrally through the Group Procurement Procure-to-Pay system, is included in monthly reports to each cluster. Buying behaviours were investigated and policies updated. The year 2009 saw an additional focus on the reduction of travel and paper usage, as required by our intensity reduction targets. All business travel is now preauthorised and the carbon cost of travelling is indicated on the order form. The carbon footprinting information is also enhanced by calculating the carbon cost of travel to and from the airport based on distance, car and fuel type.

Environmental issues affecting procurement are discussed at bimonthly Group Procurement committee meetings and actions to reduce the bank's environmental footprint are implemented via the committee.

Extending our environmental initiatives through our subsidiaries:

Nedbank London

Building on an environmentally successful 2008, Nedbank London’s environmental targets for 2009 were achieved and surpassed.

Energy usage was reduced by 9% per person, compared with a targeted reduction of 5% per person.
The amount of waste recycled was significantly increased in comparison with 2008.
Postage was reduced by 28% compared with the 2008 pledged reduction of 10%.
Environmental criteria were successfully incorporated into its procurement policies.

At the Annual Paper Round environmental event, which took place at London Zoo, Nedbank London received an Award of Excellence in appreciation of an outstanding environmental performance during 2008/2009. In honour of this award, a donation to the charity Trees for Cities was made. MS Sharepoint has become a part of everyday life at Nedbank London, with more and more employees working towards a paperless work environment.

Fairbairn Private Bank

Fairbairn Private Bank (FPB) undertook a successful recycling scheme at its offices on the Isle of Man and in Jersey. Using local recycling agencies, the bank recycles glass, aluminium and plastic. This initiative boosts the bank’s current efforts, which include recycling paper, composting biodegradable waste and turning off appliances at the end of the day. In addition, the bank embraces any means of minimising paper usage and reducing its carbon footprint and it encourages clients to sign up for online account viewing where printed statements are not necessary.

In 2009 FPB continued its three-year partnership with Durrell Wildlife Conservation Trust, in Jersey. The sponsorship agreement evolved to allow Durrell to start a new breeding programme for the trust’s endangered ring-tailed lemurs. FPB already adopted the bachelor group of ring-tailed lemurs, which have lived at the trust for many years. In 2009 FPB covered the cost of relocating two new females from Chester Zoo. This will allow the charity to develop its understanding of the lemurs to protect them and enhance their chances of survival in the wild.

Also in 2009, a team of volunteers from FPB helped prepare a new lemur enclosure at Durrell Wildlife Conservation Trust. The new purpose-built enclosure houses Durrell’s group of six ring-tailed lemurs and a family of three red-fronted brown lemurs. The entire area is being transformed to showcase Durrell’s conservation work in the highly threatened dry forests of Madagascar.

A further team of volunteers from FPB also took part in a major beach-cleaning initiative at a local nature reserve, with the specific objective of gathering plastic waste.

Fairbairn Trust Company

All office waste paper is recycled on a weekly basis. Fairbairn Trust Company continues to recycle newspapers and magazines, aluminium and plastics on an ongoing basis.

Nedgroup Investments

Nedgroup Investments is involved in several environmental initiatives:

Toner cartridges are recycled, as is glass, paper and cardboard.
Chilled spring water, rather than bottled mineral water, is provided for staff and clients.
As an alternative to physical travel, extensive use is made of teleconferencing facilities, bringing together people based on the Isle of Man, in London and in South Africa for meetings.
Measures are taken to minimise the environmental impact of reporting requirements by issuing information, where possible, in hard copy locally in South Africa, rather than having it shipped from the Isle of Man. The company has reduced the frequency with which it sends out client statements from quarterly to annually, allowing clients to access valuation information on the investments they hold via a secure website.

Nedbank Malawi

In recognition that one of its most significant environmental risks may arise indirectly from the environmental impact of third parties such as clients, investors and business partners, Nedbank Malawi reviewed its credit policy, with particular emphasis on the need to comply with the environmental standards as legally provided, while ensuring that it conducts its business and meets its strategic goals for the year. In this way, the business offers financial assistance to environmentally friendly projects for which proper environmental impact assessments have been done.

Together with Old Mutual, Nedbank Malawi cosponsored the Lilongwe Wildlife Centre Run for Wildlife to raise funds for the Lilongwe Wildlife Centre, which plays a key role in conserving wildlife and providing an important recreational and educational facility for Malawians.

Nedbank Namibia

Through its Go Green Fund, Nedbank Namibia is actively participating in Namibia’s environmental efforts. The Go Green Fund is an instrument to help conserve and develop the natural resources of Namibia, and through that, to support the country’s fragile ecology. For every home loan funded through Nedbank Namibia, and for every vehicle above a predetermined amount financed, the bank donates a certain amount to the fund – at no cost to the client. Some of the key projects supported by the Go Green Fund in 2009 included:

The Namibia Dolphin Project
The Namibia Animal Rehabilitation, Research and Education Centre (NARREC)
The Brown Hyena Research Project
The Rare and Endangered Species Trust (REST)
The Namib Desert Environmental Education Trust (NaDEET)

Nedbank Swaziland

The business sponsored the Billion Tree Campaign, which saw the Swaziland Environment Authority, together with ROTARACT, planting trees in areas that have been ravaged by soil erosion.

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