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LEADING THROUGH COLLABORATION
For Nedbank Group leadership in environmental
sustainability is about a determination to achieve as
much as it possibly can through its efforts to preserve
the planet. The group recognises that this requires
a highly collaborative approach in which it involves
as many of its stakeholders in its sustainability
journey as possible, and uses its influence to promote
environmental sustainability awareness, encouraging
other companies and individuals to join it in securing
a better future for all.
WORLD WIDE FUND FOR NATURE
SOUTH AFRICA
After 21 years of shared vision and commitment the
relationship between Nedbank Group and WWFSA
continues to deliver benefits for environmental
conservation in SA. The WWF–Nedbank Green Trust,
which both organisations were instrumental in forming,
continues to receive significant support – both in terms
of financial investment from Nedbank Group and
project and operational guidance and input from WWFSA.
In 2011 Nedbank Group's R9m investment into the
WWF Water Balance Programme signalled the start of a
new chapter in its long-term partnership with WWF-SA.
THE NEDBANK GREEN AFFINITY AND
THE WWF–NEDBANK GREEN TRUST
In 1990 Nedbank Group, in partnership with WWFSA,
established the WWF–Nedbank Green Trust ('The
Green Trust') as an innovative and sustainable vehicle
through which to raise funds to support environmental
causes and projects.
The Green Trust's mission is to bring together
environmental and social sustainability in order to
enable people to live and work in harmony with the
environment. After more than 20 years in existence
The Green Trust has demonstrated that a strong people
focus is essential to the achievement of environmental
sustainability and the protection of the planet's natural
heritage.
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.
Through its Green Affinity Programme Nedbank Group
has donated nearly R115m to The Green Trust over the
years in support of approximately 180 environmental
projects and causes throughout SA. The Green Affinity
enables Nedbank Group clients to involve themselves in
this support and also to have money donated to a green
cause on their behalf, but at no cost to them, as they
make use of the various Nedbank Green
Affinity-linked
accounts. In 2011 Nedbank Green Affinity donations
to The Green Trust increased by 38% to over R8,7m
(2010: R6,3m).
For more information on The Green Trust visit
www.nedbankgreen.co.za.
Below are just some examples of current and past
WWF–Nedbank Green Trust-supported projects, many
of which are focused on sustainable agriculture and
food security:
- The Biodiversity and Wine Initiative (BWI) is a pioneering partnership between the SA wine industry and the conservation sector, aimed at encouraging wine producers to protect the natural habitat, farm sustainably and express the advantages of the Western Cape's abundant diversity in their wines. Nedbank Group provided essential bridging finance to this project after its successful two-year pilot. The success of the project is demonstrated in the fact that, in less than four years, 126 000 ha of natural area have been conserved by BWI producers – making the SA wine industry's conservation footprint bigger than the actual vineyard footprint of 102 000 ha.
- The GreenChoice Alliance is a national alliance for the promotion of food systems that are environmentally sound, socially just and economically viable, and that produce quality food. Nedbank Group co-funds the market transformation component of this collaborative initiative, which is aimed at positively and materially changing the way food and animal fibre products, derived from natural resources, are produced and consumed. GreenChoice was established in 2007 as a multistakeholder alliance, coordinated by WWF and Conservation International. It provides a platform where stakeholders can share knowledge, identify sustainable solutions and gain better market access for environmentally friendly products.
- The WWF Sustainable Fruit Initiative is aimed at promoting sustainable farming, production and consumer practices within the SA fruit industry. In 2011 Nedbank Group, through The Green Trust, committed to a three-year funding programme for this initiative.
- The Khomani San Traditional Conservation Area is the realisation of the Khomani San's vision of establishing traditional eco-tourism, cultural and hunting ventures on their ancestral land, which includes 25 000 ha inside the Kgalagadi Transfrontier Park and six farms spanning 36 000 ha outside the park. Funds from The Green Trust are being used to assist with the establishment and running of an office to manage and oversee the project. The Khomani San now have their own gate into the park where they issue visitor permits. A powerful drawcard for visitors is their accomplished Khomani San guides and trackers who have a vast knowledge of the desert fauna and flora.
UNITED NATIONS ENVIRONMENT
PROGRAMME FINANCE INITIATIVE
Nedbank Group was the first SA bank to join the
United Nations Environment Programme Finance
Initiative (UNEP FI) in February 2004. The initiative is a
unique global partnership between the United Nations
Environment Programme (UNEP) and the global
financial sector. UNEP FI works with some 200 financial
institutions that are signatories to the UNEP FI
Statements, as well as a range of partner organisations,
to develop and promote linkages between sustainability
and financial performance.
- address sustainability issues within the African context;
- set sustainability priorities for the African financial sector; and
- drive a holistic, integrated sustainability approach across all African finance sections.
In 2011 Nedbank Group continued as a member of the African Task Force and co-chair of the UNEP FI Water and Finance Workstream with a work programme focused on water risk identification, management, monitoring and reporting. The group presented at the Global Round Table, hosted by UNEP FI in Washington in October 2011, and also shared details of its Water Wise journey at the UNEP FI water training session at the World Bank.
During the Conference of the Parties (COP17) Nedbank Group collaborated with UNEP FI, the National Business Institute and other member banks to offer a 'finance day' that explored the role of banks in the transition to a low-carbon economy. This open session was well attended and included presentations by Trevor Manuel, Nedbank Group Chief Economist Dennis Dykes and representatives from Stellenbosch University, HSBC and UNEP FI.
The group also hosted two closed events for UNEP FI members and the negotiators on the Green Climate Fund and REDD. These sessions allowed attendees from the private sector to express their thoughts on vital environmental sustainability issues and obtain insight on the role that the private sector can play in driving it.
Nedbank Group remains involved in the Global UNEP FI Steering Committee and the Banking Commission, and is a member of the Biodiversity and Ecosystem Services Workstream.
Further details about UNEP FI and copies of its various publications can be found at www.unepfi.org
LEGISLATION AND REGULATION
Nedbank Group plays an active role in facilitating, and
contributing to, the policy and regulatory developments
by feeding comments and suggestions into a variety of
industry bodies or directly to the relevant government
departments.
There are also a number of policies and regulatory
developments that the group monitors and contributes
to, including the Integrated Energy Plan (IEP), the
Integrated Resource Plan (IRP), the Carbon Tax
Discussion Paper, the Renewable-energy Feed-in Tariff
(REFIT) and the National Climate Response White
Paper.
In addition to positioning Nedbank Group as a thought
leader in legislative and regulatory developments,
the group's participation in these processes helps
to position it strategically to be able to fund future
business opportunities that may arise as a result of the
developing regulatory framework.
RENEWABLE ENERGY INDEPENDENT
POWER PRODUCER PROGRAMME
As one of the leading investors in infrastructure projects
in SA's financial markets, Nedbank Group provided
the funding for 37% of the more than 1 200 MW of
energy capacity represented by all the bids submitted
in the first phase of the country's Renewable Energy IPP
programme.
This support extended beyond providing the finance
the bidders needed to cover the required guarantee
of R100 000 per MW of capacity, as proposed in their
bids, and included close partnerships with 15 of the
53 bidders as well as the provision of input, guidance
and advice as regards the bids and the sustainability of
their operations.
EXTERNAL ENGAGEMENTS AND
ENVIRONMENTAL SUSTAINABILITY
INITIATIVES
The 2011 financial year again saw Nedbank
Group sharing learnings and experience with like minded
organisations in an effort to maximise its
environmental sustainability effectiveness and further
entrench its reputation as the country's truly green
bank. These engagements and initiatives included
Nedbank Sustainability Outlook, Financial Mail Green
Business Guide, Nedbank BDFM Greening your Business
course, Earth Hour, Nedbank Green Wine Awards,
Nedbank Green Mining Awards and the hosting of a
Sustainability Seminar for the media. In addition, the
group participated in the SA Corporate Leaders Group
and the SA CEO Forum and sponsored the SA Water
and Energy Forum.
- Nedbank Sustainability Outlook is researched by the University of Cambridge Programme for Sustainable Leadership. This sustainability publication enjoys a distribution of over 100 000 and seeks to encourage debate around various sustainability issues and the financial and investment implications thereof.
- Financial Mail Green Business Guide highlights businesses and organisations that have a measureable committed to environmental conservation in an effort to promote environmentally aware consumer behaviour. In 2011 Nedbank Group again sponsored the publication.
- Nedbank BDFM Greening your Business course was produced in partnership with Business Day and Financial Mail. This online business training course provides comprehensive insights into and information on practical ways in which companies can undertake their own environmental sustainability journeys. It is offered free of charge to Nedbank Group clients and the general public. More than 1 100 participants from 859 companies participated in the course in 2011.
- Earth Hour is the world's biggest mass action initiative aimed at addressing climate change. For one hour people on all seven continents switch 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. Nedbank Group continued its support of this worthwhile campaign in 2011 by turning off the lights in approximately 30 of its buildings around the country and encouraging staff members, clients and suppliers to do the same in their homes and businesses. Nedbank, WWF-SA and the City of Johannesburg also hosted a free concert at Orlando West, with a lights switch off at Orlando Stadium in Soweto on Saturday, 26 March, from 20:30.
- Nedbank Green Wine Awards (Cape Winemakers
Guild). For the past 15 years Nedbank Group
has partnered with the Cape Winemakers Guild
(CWG), the CWG Development Trust, and the
Biodiversity and Wine Initiative to encourage
transformation and sustainable practices within
the SA wine industry. The Nedbank Green
Wine Awards were established in 2009 to raise
consumer awareness and elevate sustainable
wine farming practices so that buyers can make
informed wine purchases. The awards competition
is divided into two categories:
1 Best wine from organically grown grapes (rated according to the 20-point/5-star system); and 2 Best environmental practices (judged by a panel of four environmental experts). The 2011 winners were: Best Wine from organically grown grapes: • Best white and best wine overall – Reyneke Chenin Blanc 2010 • Best red wine – Laibach, The Ladybird Red 2010 • Best natural sweet wine – Stellar, Heaven on Earth Natural Sweet • Best environmental practices award – Paul Cluver, Elgin - Sowetan column. During 2011 Nedbank Group again played a pivotal role in educating communities on environmental and sustainability matters. One of the key ways in which this was accomplished was through the Nedbank 'Green Unpacked' column in the Sowetan. Published fortnightly, the column focused on making environmental and sustainability issues real, understandable and accessible to the more than 1,5m readers of the newspaper.
Adapted from an opinion piece printed in the Business Day in October 2011 by Nedbank Group Chief Executive,
Mike Brown, and AngloGold Ashanti Limited Chief Executive, Mark Cutifani.
Step 2 – Share out the budget fairly – Having understood and acknowledged the reality of humanity's fixed carbon budget, the world's governments must divide that budget in a way that is fair and can be supported by the majority of critical emitting nations. Step 3 – Manage SA's carbon budget properly – While the share of the global carbon budget that SA can expect to receive depends on the calculation methods used, a range of 0,5% to 2% is likely. At 1,5% this equates to 10,2 gigatons of CO2 that can be emitted from now until 2050. At our current emissions rate, that will be used up in 23 years! To extend this deadline, SA's carbon budget must be shared out among all its people and companies in a way that maximises socioeconomic benefits. This requires a participative and well-informed discussion among relevant stakeholders and, in all likelihood, some very tough decisions. Step 4 – Find ways to reduce emissions while creating stakeholder value – At an individual business level, SA organisations must start planning for the transition to a low-carbon economy, so that they can contribute to the national reduction in carbon emissions, while still building value for all their stakeholders.What is needed right now?
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- Sustainability seminars are Nedbank Group-hosted and offer SA journalists insight into matters surrounding sustainability. This contributes towards a solid foundation from which to report on the topic. Nedbank Group has hosted similar successful seminars covering mining and financial services. The format includes presentations by Nedbank Group spokespersons as well as external experts in the relevant topic.
- 2011 saw Nedbank Group joining the Corporate
Leaders Group. Based on the Prince of Wales
Corporate Leaders Group established in 2005, the
South African Corporate Leaders Group forms part
of the Cambridge Programme for Sustainability
Leadership (CPSL) and comprises 10 companies
representing a cross-section of the SA economy.
The purpose of the group is to drive strategic, long-term, transformational change in the SA economy, with particular focus on the changes necessary to ensure long-term economic prosperity, competitive advantage and corporate sustainability at a national level. The CEO Forum comprises leaders of SA businesses and was formed in response to government's call to action a 'Team South Africa' approach to address climate change in the country. - This CEO-led platform allows for high-level engagement between captains of industry and key stakeholders and provides visible leadership in support of SA's climate change response.
Throughout the 2011 financial year Nedbank Group continued to participate actively in a number of conferences and events aimed at addressing environmental sustainability issues and challenges. These included Conference of the Parties 17 (refer to the 'Communities' section for more detail) and SA Water and Energy Forum (SAWEF):
- SA Water and Energy Forum Nedbank Group co-sponsored the first SAWEF in 2011. SAWEF was created to offer a platform on which key players from all sectors of the economy – government, industry, commerce, civil society, science, architects, designers and the media – can come together, engage with each other, and focus their collective expertise and energy to find solutions to the various sustainability challenges facing the country.
GREENING THE GROUP'S SUPPLY
CHAIN
Nedbank Group's procurement areas continue to work
closely with their suppliers as part of the extension of
the organisation's Climate Change Position. Tendering
and engagement sessions focus on influencing suppliers
to make greater efforts to incorporate environmental
sustainability in the way they work. This approach is
enjoying ever-increasing support. During 2011 the
group again hosted supplier training and awareness
sessions with close to 200 key suppliers in the retail
and group technology areas, among others. Nedbank
Group's sustainability journey and learnings were
shared to encourage similar actions and behaviour
among suppliers. Ethics awareness training also formed
part of these sessions.
The group has used the experience of its technology
division to add environmental commitment and
action to its procurement decision making formula.
The sustainability practices of suppliers are now
entrenched in group procurement processes and given
evaluation weighting along with price, quality and black
economic empowerment (BEE) status.
VENDOR ONBOARDING
Nedbank Group is moving from an environmental
sustainability 'awareness' requirement to a 'compliance'
requirement for its top 300 vendors. These vendors
represent approximately 80% of total group spend.
All new vendors are required to confirm the existence
of an environmental policy in their business and answer
questions regarding their recycling, reuse and reduction
practices.
Nedbank Group successfully presented its procurement
journey to the Smart Procurement Conference
in October 2011, where most of the participants
recognised the increased awareness of sustainability
issues on their own procurement journeys.
The success in terms of sustainability partnering
achieved with international information technology
vendors in past years was extended to local vendors
during 2011. Nedbank 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 lobbies, as well as the upgrading of
existing branches.
Each commodity specialist within Nedbank's Group
Procurement Division now has sustainability as an
integral element of his or her performance scorecards,
prompting careful consideration of environmental
factors in all supplier engagements.
The 2011 procurement and supplier initiatives aimed at
greening Nedbank Group's supply chain included:
- Furniture and new buildings
All new desks are manufactured using Forestry Stewardship Council-accredited wood, while chairs and carpets are mostly made of recyclable materials. The design work and interior of all new buildings have sustainability as a key driver. 2011 saw further investigation into the use of waterless urinals and more efficient towel dispensers, as well as continued success with the implementation of recycled/ grey-water initiatives. All tenants in Nedbank owned buildings agreed to adhere to Nedbank Group's environmental approach in terms of water, electricity and waste management. - Hotels
The group continues to encourage all hotels frequented by its staff travellers to use best of- breed environmental practices and policies, and has been a driving force in suggesting water reduction initiatives, including low-flow showerheads and reduced laundry requirements. It has also been instrumental in the instigation of exciting new sustainability initiatives, including organic gardens, inseason vegetables and fruit, and local food suppliers. Representatives of Nedbank Group inspect these properties regularly and the reports on progress have been very positive. - Car rental
Nedbank Group continues to use two preferred car rental vendors, both of whom have introduced models of less environmentally damaging cars. They have also expanded and improved their facilities so as to use less water for washing cars. More effective 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. These all provide regular progress reports on the reduced use of fuel through the introduction of new planes or through improved processes with older aircraft. The group's booking process ensures that travellers are made aware of the environmental impact of their business travel. - Stationery
After extensive investigation Nedbank Group has introduced an environmentally friendly and price-competitive pen made from corn waste. Every year the group investigates numerous opportunities to 'green' its stationery, but costs remain the most prohibitive factor. In 2011 it raised its efforts to share these experiences with customers of its preferred stationery suppliers to unlock potential economies of scale in this regard. - Computer consumables
All suppliers of computer consumables are ISO-accredited. A new management information system was implemented to provide improved data on toner and printer usage. One of the group's key suppliers of remanufactured toner cartridges, Green Office, won the Green Company of the Year award. - Paper
Nedbank Group continues to monitor the use of all types of paper. The choice of supplier is still based on groupwide life cycle analysis (LCA), which is also considered to inform decisions regarding the use of virgin or recycled paper for specific purposes across the group. - Cleaning and hygiene services
The group uses biodegradeable cleaning liquids and processes at all its main campus sites. In 2011 this was also rolled out to Nedbank Retail branches, with specialised cleaning liquids made available on all 'Procure to Pay' system catalogues. The Innu-Science-developed product has been certified as being environmentally friendly and 90% of the total product is biodegradable within 14 days. One of the group's cleaning suppliers, Supercare, has used the Nedbank Group sustainability journey as an inspiration to change its car fleet and bring in recycling and the use of biodegradable packaging. - Couriers
UTI Mounties and Skynet have rationalised their courier routes and vehicle loads to take into consideration the new business model for transporting cheques and credit cards. This has significantly reduced kilometres driven and also their carbon footprint.
