- An integrated approach to sustainability
- About Nedbank Group
- Chairman's statement
- Chief Executive's statement
- Reflection on our 2009 sustainability journey
- Key sustainability indicators
- Stakeholder engagement
- Ensuring organisational economic
sustainability - Enterprise governance and compliance
- Code of Ethics and Business Conduct
- Guiding principles for responsible lending
- Risk management
- Delivering shareholder value
- Contributing to the economic sustainabilityof our clients
- Introduction
- The creation of an inclusive future
- Socioeconomic development
- Nedbank Foundation
- The Nedbank Affinities
- Extending our social reach
- Nedbank Group sponsorships
environmental SUSTAINABILITY
NEDBANK’S Greenhouse gas report
CARBON FOOTPRINT MEASUREMENT
An overview of Nedbank Group’s carbon emissions in 2009| Reporting period | Financial year 2009 | ||||||||||
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| Methodology | The Greenhouse Gas (GHG) Protocol – Corporate Accounting and Reporting Standard (revised edition) | ||||||||||
| Inclusions | Nedbank’s activities, equipment and operations, as well as the actions of its employees associated directly with: | ||||||||||
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| Exclusions | Nedbank’s activities, equipment and operations, as well as the actions of its employees associated directly with: | ||||||||||
| • Non-South African offices (Nedbank London, Nedbank Namibia, etc). | |||||||||||
| • South African and non-South African wholly or partially owned subsidiary companies. | |||||||||||
| • Imperial Bank. | |||||||||||
| • Emissions associated with operations and service at outlets in Pick n Pay stores. | |||||||||||
| • Emissions associated with the operation and service of automated teller machines (ATMs), self-service terminals (SSTs), point-of-sale (POS) and other remote devices. | |||||||||||
| • Any other premises owned or operated by Nedbank or activities not explicitly referenced in this report. | |||||||||||
| 2009 | 2008 | 2007 baseline |
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| Total occupied floor space of reported buildings | 520 821m² | 283 953m² | 261 450m² |
| Fulltime employees (FTEs) included in the FTE calculations | 24 284 | 15 416 | 14 203 |
| Total number of fulltime employees | 24 284 | 26 422 | 25 518 |
| Percentage of all employees covered by the report | 100%* | 58,35% | 55,66% |
| * | A tremendous effort has been made to include all Nedbank Group South African fulltime employees and premises in the 2009 GHG emissions report. Data had been collected throughout operations for electricity and fuel consumption as well as emissions associated with reported scope 3 activities. The increase in emissions from the 2007 base year to 2009 therefore reflects the increase in boundary by incorporating Nedbank fulltime employees as well as owned and leased offices and branches. For this reason it is required to report on the campus sites, owned offices and branches and leased offices and branches separately in the online report to be able to compare progress against emission reduction targets (based on campus sites) from 2007 to 2009. |
Nedbank Group greenhouse gas emissions inventory
| Scope | 2009 | 2008 | 2007 baseline |
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| Scope 1 – Direct emissions from: | 428,61 | 1 222,08 | 694,85 |
| Fuel used in equipment owned or controlled by Nedbank (eg generators) | 224,64 | 717,47 | 419,72 |
| Airconditioning and refrigeration gas refills | 75,27 | 380,79 | 140,18 |
| Nedbank fleet of vehicles | 108,70 | 123,82 | 134,95 |
| Scope 2 – Indirect emissions from: | 167 753,56 | 99 908,46◆ | 96 361,71 |
| Purchased electricity | 167 753,56 | 99 908,46◆ | 96 361,71 |
| Total scope 1 and 2 emissions | 168 182,17 | 101 130,54 | 97 056,56 |
| Scope 3 – Indirect emissions from: | 43 983,90 | 32 930,69 | 31 483,31 |
| Business travel in rental cars | 329,45 | 371,53 | 498,59 |
| Business travel on commercial airlines | 5 436,01 | 5 574,51 | 7 790,61 |
| Business travel in employee-owned cars | 1 435,64 | 2 203,98 | 2 244,13 |
| Employee commuting | 32 007,95 | 21 494,46* | 17 665,83 |
| Product distribution | 1,86 | 106,49* | |
| Consumption of office paper | 4 772,99 | 3 179,72 | 3 284,15 |
| Total scope 1, 2 and 3 emissions (GHG Protocol) | 212 166,07 | 134 061,23 | 128 539,87 |
| Non-Kyoto Protocol GHG emissions | 1 440,16 | 1 407,46 | 1 406,38 |
| Total Nedbank emissions CO²e (tonnes) | 213 606,23 | 135 468,69 | 129 946,25 |
| % CO²e emissions according to GHG Protocol | |||
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| Scope 1 | 0,20% | 0,90% | 0,53% |
| Scope 2 | 78,53% | 73,75% | 74,16% |
| Scope 1 and 2 | 78,73% | 74,65% | 74,69% |
| Scope 3 | 21,27% | 25,35% | 25,31% |
| * | Emissions associated with the transport of mobile branches and branch-in-a-box offices were included in employee commuting in the 2008 GHG carbon calculation, but have been separated in the 2009 calculation. |
| ◆ | During 2009 Nedbank received notification from its landlords that additional charges will be raised for electricity consumed during 2008 at two of its leased campus sites, but not fully charged or recovered. The consumption at an owned campus site was also restated to reflect the area occupied by Nedbank, as a tenant left the building during the latter part of 2008. Furthermore, the average consumption was replaced with actual kilowatt-hours consumed in other campus sites, giving rise to the restatement of the 2008 electricity consumption and associated emissions. |
Scope 1 emissions:
Scope 1 emissions fell in 2009 as a result of greater reliability of electricity supplied by Eskom and Nedbank’s internal efforts to reduce consumption. As a result, diesel used in generators for emergency power fell by approximately 66% year-on-year and approximately 42% from the 2007 base year. Scope 1 emissions were largely unaffected by the change in reporting boundary, as most non-campus offices either do not have, or made no use of, installed diesel generators in 2009.
The reduction in the use of generators would be expected to be reflected in greater consumption of supplied electricity (scope 2 emissions).
Scope 2 emissions:
Emissions from electricity consumption grew by approximately 63% year-on-year (62% from the 2007 base year). This is a reflection of the addition of rented offices and branches to the report, together with the 3% increase in emissions per unit of electricity generated by Eskom [1] (following a 4,3% rise of emissions per kilowatt-hour generated from 2007 to 2008).
Nedbank strives to reduce resource consumption and greenhouse gas (GHG) emissions, and has achieved commendable energy reduction at the large campus sites (4% from 2007 and about 2% year-on-year, while emissions (96 361, 98 710, 99 330) reflect increases of 3,08% and 0,063% over the same periods. This reduction was achieved even though organic growth resulted in an additional lease of one campus site. A detailed breakdown of all consumption data for campus sites, owned and leased offices and branches can be found at here.
Scope 3 emissions:
• Business travel
2009 saw a groupwide campaign to limit costs and environmental impact actively by reducing travel frequency and promoting the use of smaller cars and low-cost airlines for essential travel.
Despite increasing the FTE count from approximately 56%/58% in 2007/2008 to 100% in 2009, the success of this campaign is reflected in the decreased emissions arising from business travel.
Emissions from air travel reduced by approximately 30% from 2007 and 2,5% year-on-year, while emissions from travel in rental cars reduced by approximately 34% from 2007 and 11% year-on-year. Emissions from travel claims (travel in own cars) fell by approximately 36% and 35% from 2007 and 2008 respectively.
• Commuting
A bankwide commuting survey was conducted in 2009, which achieved approximately 65% valid responses from staff. Emissions for all staff from commuting have been estimated by multiplying the emissions calculated for these respondents.
• Paper consumption
A significant reduction in consumption of office paper across the group has been achieved – group consumption per FTE 0,0750 tonnes in 2007, 0,0665 tonnes in 2008 and 0,0446 tonnes in 2009 – although the reduced consumption is not reflected in the associated emissions due to the higher-emission factors used in the 2009 GHG calculation.
Nedbank Group’s overall reported emissions in absolute terms increased by about 65% from the 2007 baseline (an almost 60% increase year-on-year), primarily as a consequence of the broadened reporting boundary by including the leased offices and branches in the 2009 GHG inventory. The number of employees included in the carbon calculation increased from approximately 56% in 2007 to 100% in 2009, ie all
24 284 Nedbank fulltime employees (FTEs) are included in the calculation. The greatly expanded reporting boundary obscures the significant progress made across the reported scope of activities and the reduction of emissions associated with them. Emissions per FTE reduced by 3,83% to 8,80 tonnes of carbon dioxide equivalent (tCO²e) from 9,15 tCO²e in 2007 and emissions per area occupied (m²) reduced by 18% to 0,41 tCO²e/m² from 0,50 tCO²e/m² in 2007.
This GHG inventory will form the basis of Nedbank’s carbon neutrality initiative and the 2009 carbon footprint will be offset by purchasing voluntary emission reductions (VERs) certificates from emission-reduction projects in Africa.
| [1] | Electricity consumption converted at the appropriate emissions factors as published by ESKOM (2009/2008/2007 emissions factors 1.03/1.00/ 0.9585 kg/kWh respectively). |
Nedbank Group performance targets
DRIVING CARBON REDUCTION
CLIMATE CHANGE POSITION STATEMENT, REDUCTION TARGETS AND PERFORMANCE MEASURES
In 2008 Nedbank released a formal Climate Change Position Statement as a public declaration and pledge to reduce our impact on the environment through, inter alia, driving the reduction in the consumption of energy, water and paper, and reducing business travel, thereby driving the overall reduction of carbon emissions. As part of this statement, the following intensity reduction targets were set in line with the National Energy Efficiency Accord commitments (to which the group is a signatory) and in consultation with WWF-SA:| Resource | Target |
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| Energy | 12% reduction by 2015 (from 2005 levels) or 5 335 kWh per fulltime employee by 2015 |
| Water | 5% reduction by 2010 (from 2005 levels) or 26,03 kl per fulltime employee by 2010 |
| Paper | 10% reduction by 2010 (from 2007 levels) or 0,0594 tonnes per fulltime employee by 2010 |
| Carbon emissions | 12% reduction by 2015 (from 2007 levels) or 7,67 tonnes per fulltime employee by 2015 |
In 2009 these intensity reduction targets were incorporated into our groupwide performance assessment measures. A GEF working committee was established to track performance against these targets on a monthly basis and to drive the awareness required in terms of progress attained and the means by which the targets can be achieved. The year saw good progress made against the targets and heightened awareness of the need to truly reduce our environmental impact and the value of collective action in making a difference.
A number of internal carbon reduction initiatives are reflected on here, with additional information regarding such initiatives contained here.
In line with the bank’s commitment to continued carbon reduction – as part of our journey to carbon neutrality – Nedbank extended the measurement of our carbon footprint through the inclusion of the Nedbank Retail branch network. Nedbank Retail began monitoring energy, water, paper and travel consumption across all its operations in 2009. As part of this carbon reduction focus, an extensive internal awareness programme was also launched.
Among other key carbon reduction initiatives delivered, Nedbank rolled out eStatements across card and transactional products. The goal is to implement eStatements across all products by the end of 2010.
The development of environmentally friendly banking products and services – linked to a comprehensive consumer education programme – is currently underway and these will be launched in 2010.
Nedbank Capital is in the process of registering a programmatic clean development mechanism (PCDM) project for the bank in respect of building energy efficiency.