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MANAGING NEDBANK GROUP'S
IMPACT
CARBON NEUTRALITY
In 2010 Nedbank Group became the first financial
services institution in Africa to achieve carbon
neutrality. This effectively launched the group into
the next phase of its 20-plus-year environmental
sustainability journey, positioning Nedbank Group
well to realise its vision of becoming a leader in, and
driver of, sustainability via its balanced and integrated
approach to addressing environmental, social, cultural
and economic sustainability issues.
Of particular relevance to this achievement was the
commitment by Nedbank Group to attain carbon
neutrality as far as possible through its own reduction
efforts. To this end the group drove significant
behavioural change across its business in order to reach
its stated reduction targets in terms of paper, water,
electricity, waste, travel and carbon emissions.
Since its achievement of carbon neutrality the group has
leveraged its status to build its client value proposition,
deliver improved value and help drive the establishment
of SA's green economy through extensive stakeholder
collaboration and partnerships.
While carbon neutrality was primarily facilitated
through Nedbank Group's own carbon reduction efforts,
carbon credits were required to offset the remaining
emissions. In keeping with the group's integrated
sustainability commitment, these were obtained from
projects that deliver integrated sustainability benefits
to the environment and society in the regions in which
they operate.
In 2011 Nedbank Group continued to build on this
integrated sustainability support philosophy by securing
the carbon credits it required to retain its carbon
neutrality through supporting a variety of African and
SA projects. The projects supported demonstrate both
social and environmental credentials, and include:
- The Rukinga Project.
- The Nova Institute Mpumalanga and Highveld Air Quality projects.
- The Amathole Berries greenhouse gas reduction project.
- The Environmental Trust of Uganda's Trees for Global Benefits project.
- The Kibale National Park (Uganda) Natural High Forest Rehabilitation Project.
- The Rukinga Project – In 2010 the Rukinga Project in Kenya's Kasigau Corridor became the world's first Reducing Emissions from Deforestation and forest Degradation (REDD) project to issue carbon credits. In 2011 Nedbank Group continued its association with this project, which is helping to prevent the deforestation of this eco-sensitive region while, at the same time, delivering massive economic and social upliftment benefits to local communities in the area.
- The Nova Institute – Highveld Air Quality (SA) implemented an air quality project, which achieved emission reductions through the implementation of an improved top-down ignition method for domestic coal fires used for cooking and heating. The project includes areas of Mpumalanga, the Free State and Gauteng. The method improves the efficiency of domestic fires, limits particle emissions and reduces the quantity of coal needed. Income from verified emission reductions is used to further the project and implement similar projects.
- Amathole Berries – This commercial agricultural and rural development company is committed to the increasing use of renewable energy sources, both as an environmental and commercial consideration. Through its partnership with Credible Carbon, the trading company of the PACE Centre, Amathole Berries identifies and develops onsite greenhouse gas saving projects, including emission reductions through innovative composting and the replacement of inorganic nitrate fertilisers with natural fertilisers. All carbon revenue from this project accrues to the Amathole Berries Farm Employees Trust, which is 15%-owned by farm employees.
- The Environmental Trust of Uganda – This is Uganda's leading indigenous, non-profit conservation finance institution. It supports natural resource management initiatives aimed at providing long-term sustained funding for the conservation of biodiversity and environmental management in Uganda. The Trees for Global Benefits programme is a cooperative community based carbon offset scheme that emphasises sustainable land use practices that also benefit the livelihoods of families and communities.
- Natural High Forest Rehabilitation Project – Kibale National Park is one of the last remaining tropical forest blocks in Uganda. It hosts the greatest variety and concentration of primates found anywhere in East Africa and is home to at least 350 tree species. Since the early 1990s work has been underway to reforest approximately 10 000 ha of the park, thereby restoring this biodiversity and increasing its carbon stocks. Quantifying and valuing carbon emissions that are avoided due to the project enable revenue generation through the sale of voluntary carbon units (VCUs). The project also seeks to educate local communities about their impact on the park, and promotes appropriate land management practices and sustainable forest usage, while creating employment opportunities.
CLIMATE CHANGE POSITION STATEMENT
Nedbank Group's Climate Change Position Statement is the bank's public declaration of its commitment to acting
to address climate change and a formal pledge to reducing its impact on the environment.
Nedbank Group's climate change work is driven by a defined set of intensity reduction targets that are closely
aligned with the National Energy Efficiency accord and the Energy Efficiency Leadership Network Pledge, both of
which Nedbank Group is a signatory. In addition to encouraging its own reductions in resource usage, the position
statement mandates Nedbank Group to work closely with its suppliers and business partners to encourage and help
them measure, manage and reduce their own carbon emissions.
In 2011 the group's preferential procurement processes were further refined to include considerations around
suppliers' demonstrated commitments to these types of reduction principles or a willingness to work with Nedbank
Group to reduce their environmental impact going forward.
REDUCTION TARGETS
The reduction targets have been set as a way to accurately measure and manage the group's carbon emissions as
well as its impact on available resources. The targets are also an effective means of improving transparency and
reporting on these reduction efforts and on the group's overall greenhouse gases (GHG). For 2012 the paper, water,
waste and recycling targets have been reset.
| Resource | Target |
| Energy | 12% reduction by the end of 2015 based on 2005 levels or 5 335 kWh per fulltime employee (FTE). Currently at 5 841 kWh per FTE. |
| Water | 6% reduction by the end of 2016 based on 2011 levels or consumption of 15,01 kl per FTE. Currently at 15,97 kl per FTE. |
| Paper* | 10% reduction by the end of 2016 based on 2010 levels.The 2011 paper consumption was 1 775 tonnes (2010: 1 917 tonnes). |
| Waste | 8% reduction by the end of 2016 based on 2011 levels, or waste to landfill of 20,91 kg per FTE. Currently at 23 kg per FTE. |
| Recycling | 6% increase in recycling by the end of 2016 based on 2011 levels or 33,58 kg per FTE. Currently at 31,68 per FTE. |
| Carbon emissions (includes business travel) |
12% reduction by the end of 2015 based on 2007 levels or 7,67 tCO2e per FTE. Currently at 7,74 tCO2e per FTE. |
| * | The paper target is an absolute target and not an intensity reduction target, as most of Nedbank Group's paper usage is related to client communications and related regulatory requirements rather than individual employee usage. |
As has been the case in previous years, the reduction targets – particularly those aimed at carbon intensity management – were integral to the assessment of performance during the 2011 financial period. Performance against these reduction targets is monitored and documented, on a monthly basis, by a dedicated task team. This team also uses the results of its ongoing reduction target performance measurement to raise awareness, across the group, of progress to date and possible ways of accelerating target achievement.
DEVELOPMENTS AROUND TARGETS IN 2011
During the 2011 financial year the group achieved the following in terms of its 2011 intensity reduction efforts:
| Reduction element | Achievement in 2011 |
| Carbon emissions | Emissions were reduced by 6,13% to 7,74 tCO2e per FTE. Emissions per m2 of office space were reduced by 10,16% to 0,35 tCO2e. |
| Electricity | Electricity usage was reduced by 0,14% per FTE and by 5,36% based on floor space per FTE. |
| Water | Water consumption on campus sites was reduced by 9% per FTE. |
| Paper | A reduction of 7,4 % in paper usage was achieved across the entire group, exceeding the 2011 target. |
| Waste and recycling | The waste target was exceeded by 31% with 23 kg per FTE sent to landfill down from 33 kg per FTE in 2010. Recycling increased in line with the 2011 target. |
| Business travel | Business travel increased from 6 885 tCO2e to 9 846 tCO2e due to an increase in air travel. This increase is attributed to growth in the business. |
| Total environmental investment | The group invested a total of R61,2m (2010: R54,6m) into environmental initiatives, including the scope increase of its carbon neutrality and its water stewardship programme. |
CARBON EMISSIONS
For the 2011 financial year Nedbank Group's total
GHG emissions increased by 2,12%. This increase
was the result of the continued organic growth of the
organisation and the ongoing efforts of the group to
expand its GHG reporting scope, while simultaneously
focusing on reducing its environmental impact.
The positive impact of this approach is evidenced in
the reduction in carbon emissions per FTE by 6,13%
to 7,74 tCO2e for the period under review. Emissions
per m2 of office space were also reduced by 10,16% to
0,35 tCO2e/m2.
 |
ENERGY
|
 |
WATER The group set itself an ambitious new target of a further 10% reduction on 2009 levels by the end of 2011. This target was almost met during the year under review. Water consumption for Nedbank Group campus sites in 2011 amounted to 266 316 kl, which represents a reduction of 9% per FTE. The achievement was driven primarily through continued staff awareness of the group’s water stewardship responsibilities, the installation of more water saving devices such as hydrotaps and aerators across the group, and the collection and use of rainwater and recycled water for non-potable water requirements. At the SA Water Quality Conference in 2011 Nedbank Group received Green and Blue Drop accreditation for the water purification of the drinking and effluent water at its training facility in the Cradle of Mankind, Muldersdrift, Gauteng. As a relatively small water user Nedbank Group is now fast approaching a steady state in terms of its operational water usage.While further reductions will be targeted in the next five years,the growing water crisis has prompted the group to expand its focus on water quantity, quality and access.This has led to a R9m investment in the WWF Water Balance Programme, which will fund the removal of alien invasive plant species, thereby releasing more than 550 000 kl of water per year back into two of SA’s priority water catchment areas. For more information please refer to the ‘Communities’ section. |
PAPER
In 2011 Nedbank Group delivered a very pleasing 7,4% reduction in its overall paper usage across the organisation. This achievement was largely the result of the work being done within the Nedbank Retail Cluster to streamline its paper-based client-facing processes and switch to electronic documentation wherever possible. One specific example of this is work undertaken in the card collection process, which resulted in a reduction in the paper used for each process and a saving of more than 14m pieces of paper in 2011. This equates to a saving of approximately 5 600 boxes of paper.
During 2011 a number of stakeholders queried the carbon impact of paper usage versus electronic communication. In response Nedbank Group engaged external experts to gain a complete understanding of the full lifecycle or environmental impact of paper, including the often-cited carbon sequestration/storage benefits of plantations. The study established that the full paper value chain (including transportation and water use) does indeed have a net environmental burden, even if the analysis includes carbon sequestration/storage as a benefit and, as such, Nedbank Group continues to reduce its paper usage wherever possible.
WASTE AND RECYCLING
In addition to paper-recycling activity, the group continues to make it easy for employees to dispose safely of compact fluorescent lamps, batteries and printer cartridges by placing accessible collection boxes at all campus sites.As a result of these initiatives, and the continued recycling drive across the group, general waste sent to landfills in 2011 amounted to 379 tonnes or 23 kg per FTE, down from 33 kg per FTE in 2010.
Nedbank Group Property Services continues to drive cost savings through the effective use of recycling practices, the implementation of food waste disposal units and the use of vegetable gardens and worm farms at staff canteens and kitchens at a number of campus sites.
The total amount of recycled waste across all campus sites increased by 5% in 2011. This achievement becomes even more significant when seen in the context of the overall reduction in paper usage during the same period.
BUSINESS TRAVEL
Nedbank Group has a detailed Business Travel Policy that includes comprehensive green travel guidelines to limit business travel and promote the use of tele- and videoconferencing.
In 2011 overall business travel increased by 51% based on kilometres travelled. It is important to note that this is still 9,6% lower than the 2007 baseline.This increase can be attributed to the overall growth in the business during the period.
ENVIRONMENTAL EXPENDITURE
In the 2011 financial year Nedbank Group invested R61,2m (2010:R54,6m) in a vast range of environmental initiatives, the most significant of which were cost of carbon credit offsets (2011: R15m; 2010: R16m), energy efficiency initiatives, donations to The Green Trust and investment in water stewardship through the WWF Water Balance Programme.
CARBON FOOTPRINT MEASUREMENT
Nedbank Group's carbon emissions per FTE were reduced year-on-year by 6,13% to
7,74 tCO2e per annum and emissions per m2 of office space also reduced by 10,16%
to 0,35 tCO2e per annum.
The overall reported GHG emissions in absolute terms increased by 2,12% year-on-year from 2010 to 2011.
However, this increase is as a consequence of efforts to continue expanding Nedbank Group's GHG report boundary
and scope (see below), while simultaneously focusing efforts on reducing its environmental impact. The year 2011
saw a significant increase in reporting detail for SA and non-SA facilities and operations. In 2011 a big drive was
undertaken to increase the accuracy of non-SA reported electricity.
| Reporting period | Financial year 2010 |
| Methodology | The GHG Protocol – corporate accounting and reporting standard (revised edition). External experts were consulted where no clear guidance or guidance applicable to SA was available.1 |
| Inclusions | Nedbank Group’s activities, equipment and operations, as well as the actions of its employees associated directly with 754 (2010: 583) SA offices and branches and all non-SA equipment and operations as integrated into the greater Nedbank Group. |
| Exclusions | Data required to undertake emissions calculation is not currently available for the following:
|
| FTE count and occupied office space included in the report | 2011 | 2010 | 2009 | 2007 baseline |
| Total occupied floor space of reported buildings (m2) | 622 0422 | 542 147 | 520 821 | 261 450 |
| Employees included in FTE calculations | 28 146 | 25 884 | 24 284 | 14 203 |
| Total number of FTEs | 28 1464 | 25 8843 | 24 284 | 25 518 |
| Percentage of all employees covered by the report | 100,005 | 100,00 | 100,00 | 55,66 |
| 1 | In some cases the vendor-supplied emission factors will be used as supplied. An example of this is the Eskom grid emission factor, which is reported as 0,99tCO2e/MWh in the Eskom 2011 annual report. |
| 2 | Increase in m2 is due to investigations of domestic lease agreements and inclusion of foreign premises. |
| 3 | Excluding international secondees. |
| 4 | GHG emissions are monitored on a monthly basis and reported against monthly FTE numbers. The result is that the annual FTE number used for GHG emissions is a 12-month average. Campus site FTE numbers for 2011: 16 678 (2010: 14 988). |
| 5 | In 2010 only estimated scope 2 emissions related to non-SA employees were accounted for and non-SA employees were not included in the total 2010 FTE number. Reporting has improved in 2011 and now all staff are included (1 642 FTE non-SA). |
NEDBANK GROUP GHG EMISSIONS INVENTORY – CO2e (TONNES)
| Scope | 2011 | 2010 | 2009 | 2007 baseline |
| Scope 1: Direct emissions from: | 776,51 | 1 667,82 | 428,61 | 694,85 |
| Fuel used in equipment owned or controlled by | ||||
| Nedbank Group (eg generators) | 205,67 | 150,11 | 244,64 | 419,72 |
| Air-conditioning and refrigeration gas refills | 466,88 | 1 419,99 | 75,27 | 140,18 |
| Nedbank Group fleet of vehicles | 103,97 | 97,73 | 108,70 | 134,95 |
| Scope 2: Indirect emissions from purchased electricity: | 162 742,02 | 165 343,42 | 167 753,56 | 96 361,71 |
| Purchased electricity – SA | 154 393,35 | 155 929,55 | 167 753,56 | 96 361,71 |
| Purchased electricity – Non-SA | 8 348,67 | 9 383,87 | ||
| Total scope 1 and 2 emissions | 163 518,53 | 166 981,24 | 168 182,17 | 97 056,56 |
| Scope 3: Indirect emissions from1: | 54 438,59 | 46 167,43 | 43 458,99 | 31 483,31 |
| Business travel in rental cars | 519,75 | 822,07 | 329,45 | 498,59 |
| Business travel on commercial airlines | 6 712,54 | 4 055,65 | 5 436,01 | 7 790,61 |
| Business travel in employee-owned cars | 2 613,29 | 2 006,92 | 1 435 64 | 2 244,13 |
| Employee commuting | 41 054,70 | 35 123,84 | 32 007,95 | 17 665,83 |
| Product distribution | 0,09 | 2,71 | 1,86 | – |
| Consumption of office paper | 3 538,22 | 4 156,24 | 4 248,08 | 3 284,15 |
| Total scope 1, 2 and 3 emissions (GHG protocol) | 217 957,13 | 213 148,68 | 211 641,16 | 128 539,87 |
| Non-Kyoto Protocol GHG emissions | – | 279,41 | 1 440,16 | 1 406,38 |
| Split of Nedbank Group carbon emissions tCO2e | ||||
| Scope 1 (%) | 0,36 | 0,78 | 0,20 | 0,53 |
| Scope 2 (%) | 74,67 | 77,46 | 78,73 | 74,16 |
| Scope 1 and 2 (%) | 75,02 | 78,24 | 78,93 | 74,69 |
| Scope 3 (%) | 24,98 | 21,63 | 20,40 | 24,23 |
| Non-Kyoto Protocol GHG emissions (%) | – | 0,13 | 0,68 | 1,08 |
| 1 | Total Nedbank Group fulltime employees (FTEs) were used although only limited non-SA scope 3 emissions were included. This was due to limited data availability. |
SCOPE 1 EMISSIONS
Reported scope 1 emissions from refrigerants decreased by approximately 67% year-on-year due to a much lower required refrigerant replacement load. Continuous efforts are underway to ensure that as little refrigerant gasses as possible are used and/or replaced. Emissions from all scope 1 activities remained under 1% of total emissions. Furthermore, it is important to note that, for ease of interpretation, the refrigerants previously accounted for as Non-Kyoto Protocol GHG emissions were moved to scope 1 emissions.
As in 2010 electricity supply interruptions were minimal throughout 2011. Diesel used in generators did, however, increase due to an increase in the number of facilities with diesel standby generators and more frequent testing of these generators.
SCOPE 2 EMISSIONS
Approximately 75% of the total GHG emissions reported for 2011 are from purchases of third-party electricity generation. This is in line with what was reported in previous years.
Nedbank Group has continued to target energy consumption and is pleased to report a year-on-year reduction of 3,4% in the total energy consumed by SA regional and headoffice sites on an adjusted baseline (ie inclusion of Phase II). These sites are owned by Nedbank Group, which implies that more advanced and costly technologies can be implemented as compared with leased properties, where Nedbank Group as tenant has less leeway regarding alterations.
SCOPE 3 EMISSIONS
Approximately 25% of the total 2011 GHG emissions arose from reported scope 3 activities, almost 19% from staff commuting, 4,5% from staff business travel, and 1,6% from third-party manufacture of office paper.
Nedbank Group – SA performance targets
| Nedbank Group – SA Key performance indicators |
Progress from 2010 (Y-O-Y) |
Progress from 2007 baseline |
2011 | 2010 | 2009 |
| Total carbon emissions tCO2e (including non-SA) |
2,12% | 67,73% | 217 957,13 | 213 428,09 | 213 081,32 |
| Emissions per FTE | (6,13%) | (15,37%) | 7,74 | 8,25 | 8,77 |
| Emissions per m2 | (10,16%) | (29,92%) | 0,35 | 0,39 | 0,41 |
| Emissions per operating income (g/rand) | (14,15) | n/a | 7,75 | 9,03 | 11,49 |
| Energy | |||||
| Consumption in kWh | 8,59% | 63,51% | 164 384 8751 | 151 388 224 | 162 867 539 |
| Consumption in kWh per FTE | (0,15%) | (17,48%) | 5 841 | 5 849 | 6 707 |
| Paper | |||||
| Tonnes used | (7,42%) | 66,67% | 1 775,07 | 1 917,29 | 1 932,22 |
| Usage per FTE (tonnes) | (14,89%) | (15,91%) | 0,0631 | 0,0741 | 0,0796 |
| Business travel – commercial airlines (km) | |||||
| Commercial airlines (km) | 63,56% | (9,54%) | 50 756 8342 | 31 032 595 | 38 852 231 |
| Air travel per FTE (km) | 50,41% | (54,36%) | 1 803 | 1 199 | 1 600 |
| Business travel – rental cars (km) | |||||
| Rental cars (km) | (39,30%) | (10,24%) | 2 624 962 | 4 324 603 | 1 924 492 |
| Rental cars per FTE (km) | (44,15%) | (54,72%) | 93 | 167 | 79 |
| 1 | In 2011 more campus sites were incorporated into Nedbank and the result was an overall increase in energy consumption, although electricity use per FTE and electricity use per m2 decreased. |
| 2 | Air travel increased in 2011 due to overall business growth. The 2011 levels, however, are still lower than the 2007 baseline. |
STAFF COMMUNICATION,
TRAINING, ENGAGEMENT AND
ACKNOWLEDGEMENTS
With a staff compliment of more than 28 000, Nedbank
Group recognises that its effectiveness in the area of
environmental sustainability relies heavily on the
support, buy-in and passion of its employees. For this
reason the group makes every effort to engage with
its staff members to raise awareness of environmental
responsibilities and opportunities in which they involve
themselves.
- Deep Green Day has become something of an institution within the Nedbank Group culture and 2011 focused on entrenching the organisation's reputation as SA's 'green and caring bank'. Employees gave of their time and money to make 29 000 sandwiches for distribution to disadvantaged individuals and communities, while a range of environmental volunteerism projects allowed staff to build relationships with their colleagues and spread the 'green' message to others.
- My Work Space was introduced in 2011. This groupwide communications platform allows for easy, customised sharing of information by allowing employees, business units and projects to develop their own online profiles and share successes, information and updates across the organisation.
- 3sixty is the primary staff communications vehicle. The publication allows business units and senior management to convey valuable environmental management and investment information and, in so doing, maintain awareness and momentum around environmental sustainability.
- Staff roadshows are presentations by Chief Executive, Mike Brown, and other Executive Committee members that provide a proven way for senior management to connect with all employees via face-to-face presentations or through video conference and share key sustainability information, general progress and respond to specific questions from staff.
- Sustainability Resource has the primary aim of providing groupwide access to important sustainability information. This shared portal carries training material, research on climate change, water and social sustainability, legislation and policies, international best practice and environmental risk. It also offers tools such as SEMS, training material and screening and assessment methods.
- Super Sustainability Forum is a teleconferencing initiative aimed at all employees outside of the Nedbank Group headoffice in Sandton and reduces travel that would have been required for face-to-face meetings.
- Face-to-face communication sessions equip staff members with important insights into a variety of environmental sustainability initiatives and the implications thereof for the business. The aim is to enable these employees to use their wide sphere of influence within the group and beyond to help change environmental mindsets.
To ensure consistency of vision and understanding by all staff Nedbank Group requires that its employees confirm that they fully understand the group's sustainability objectives and commitments. In addition each employee is required to acknowledge that he or she has received, read and understood all relevant environmental policies on an annual basis. At the end of 2011:
- 89,8% of employees had formally acknowledged Nedbank Group's Environmental Policy;
- 90,2% had completed the Corporate Responsibility Policy Acknowledgement; and
- 56,5% had participated in the Nedbank Carbon Survey.
Due to the ongoing communications and awareness creation in the group, individual staff commitment to environmental sustainability continues to increase, with 2011 levels of individual commitment to green at 95,5% compared with the 95,0% of 2010. In 2011 a total of 89,4% (2010: 81%) of employees completed the group's online sustainability training, which covers the basic principles of sustainability and outlines the bank's approach to sustainability and its achievements to date. The training also offers employees practical guidance on how they can become involved in helping the group achieve its sustainability targets and objectives. The 2011 Nedbank Group internal sustainability survey once again assessed the understanding of sustainability issues and the level of awareness of, and buy-in to, the organisation's sustainability objectives and undertakings by staff members. No less than 97% of Nedbank Group staff who participated in the survey regard the organisation as a leader in sustainability. Other key findings of the survey included:
- 80% of staff members know what carbon neutrality means and 97% (2010: 73%) support the organisation's decision to go carbon neutral.
- The commitment by staff to buy green products and services in their personal capacity increased from 82% in 2010 to 83% in 2011.
- 93% of staff members believe that Nedbank Group's management is committed to environmental sustainability.
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