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Nedbank Group  
Integrated sustainability overview
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Sustainability in business is no longer an option, it is an imperative that makes sound business and moral sense. It must permeate every aspect of a business and inform the way it thinks, behaves, strategises and operates. This will ensure it optimises returns for its shareholders over the long term, while remaining a relevant business for its staff, clients, suppliers and the communities in which it operates.

Nedbank Group recognises this reality and the impact it has, not just on the realisation of its long-term vision, but also on the day-to-day actions it takes.

The group also recognises that the only effective approach to sustainability is one in which sustainable practices and philosophies are at the core of every aspect of the organisation – impacting positively on people, philosophies, economics, the environment and the country as a whole.

For this reason Nedbank Group’s approach to sustainability is a holistic and integrated one that brings together economic, environmental, social and cultural elements to ensure that sustainability is inextricably woven into the fabric of the organisation and enables it to realise its vision of becoming a leader in sustainability.

SUSTAINABILITY TARGETS: 2010 AND 2011

ENVIRONMENTAL SUSTAINABILITY

2010 target Status Performance 2011 target
Minimising our environmental
footprint
Achieved Reduction efforts continued during 2010, with good progress being made against the electricity, travel and overall carbon reduction targets. Paper reduction targets were not met. (See commentary on page 106 for details.) The group remains committed to reducing its carbon emissions further and achieving the target of 12% emissions reduction by 2015, from its 2007 baseline. Continued carbon reduction, with the overall target being emissions reduction of 12% by 2015, from its 2007 baseline.
Achieving carbon neutrality Achieved By offsetting its 2009 carbon footprint (of approximately 213 000 tonnes) Nedbank Group was the first financial services company in Africa to achieve carbon neutrality. Importantly, this was via a ‘reduce first and offset only where necessary’ approach. Please refer to the carbon neutrality case study on page 104 for details of the process and resulting benefits for the group and its stakeholders. Maintaining carbon neutrality.
Increased focus on water efficiency Achieved The group’s 2010 water intensity reduction target of 5% per fulltime employee (FTE) from the 2005 baseline was met at the end of 2009. As such, a new target of reducing water usage by 10% per FTE (from 2009 levels) by the end of 2011 has been set. As part of the ongoing water reduction commitment the group has undertaken a number of focused water reduction initiatives (see page 106 for further details). Continued focus on water efficiency.
Centralised electronic carbon database Not achieved The group set out to develop a centralised electronic carbon database to improve the accuracy of the reporting and monitoring of natural resources usage and carbon emissions. Complications in terms of integrating the various data flows from across the organisation meant that this objective was not achieved in 2010. It remains a high priority for 2011. Centralised electronic carbon database.
 

SOCIAL AND CULTURAL SUSTAINABILITY

2010 target Status Performance 2011 target
Remaining a level 2 Department of Trade and Industry (dti) contributor Achieved Nedbank Group has been able to strengthen its position by scoring a total
of 89,50%. Employment equity and skills development, however, remain under pressure, as natural staff attrition has slowed.

Preferential procurement is an area of strength with the overall group
operating at levels above 2016 targets. The only challenge in this area is the growth in the black women-owned (BWO) subcategory. Please refer to the dti summary scorecard on page 94.

To maintain level 2 contributor status with improving scores.
Beyond compliance –
enhancing access
for all to financial services
Mostly achieved While this is not a requirement under the dti Codes, Nedbank Group remains committed to providing ready access to financial services as part of its vision of becoming a bank for all South Africans. The recovery from the financial crisis and availability of suitable land for property development are some of the factors that inhibited delivery of all internal targets. Despite this, its efforts have gone a long way to furthering access to financial services. Please refer to the ‘Non-scoring performance’ section of the scorecard on page 94. Continue to enhance access for all to financial services.
Empowerment financing Achieved Despite the challenging economic backdrop, and this target not forming part of the dti Codes, the group has continued to focus on empowerment and transformation financing as a means of realising its commitment to corporate development in South Africa. Please refer to the ‘Non-scoring performance’ section of the scorecard on page 94. Continue to grow
our involvement
in financing.



DEPARTMENT OF TRADE AND INDUSTRY SUMMARY SCORECARD

  Voting rights Economic interest Designated
groups
Employee
schemes/
broad-based
schemes, etc
Net equity
value
Total score Weighting
Ownership Black
people
Black
women
Black
people
Black
women
  30,71% 3,25% 28,05% 3,84% 10,84% 12,26% 30,71% 20,11% 20%
Management Black
board
Black executive
directors
Black senior top
management*
Black top other
management
Black independent
directors
Total score Weighting
  47,06% 41,67% 25,00% n/a 50,00% 8,62% 10%
Employment equity Black senior
management
Black middle
management
Black junior
management
Black disabled
as % of total
Total score Weighting
  26,15% 50,85% 72,40% 1,15% 11,42% 15%
Skills development Black skills spend Black disabled skills spend Category b, c, d
black learners
Total score Weighting
  2,78% 0,04% 3,02% 9,60% 15%
Preferential
procurement
% spend % spend on QSEs1
and EMEs2
% spend on
blackowned
% spend on BWO Total score Weighting
  85,12% 27,13% 12,56% 5,24% 19,75% 20%
Enterprise
development
  Contributions Total score Weighting
    6,98% 15,00% 15%
Socioeconomic
development
  Contributions Total score Weighting
    1,46% 5,00% 5%

Non-scoring performance

Product/Area Mzanzi
(accounts)
FSC4
(branches)
Black
SMMEs5
(R million)
Black
agriculture
(R million)
Affordable
housing
(R million)
Trans-
formational
infrastructure
(R million)
BEE6
transaction
financing
(R million)
Consumer
education
(% of retail
NPAT7)
Weighting
Achieved 315 024 8 R1 772 R70 R2 099 R5 681 R6 570 0,27%  
Growth vs 2009 (0,72%) 0,00% 52,54% 71,43% 63,84% 59,18% 79,27% (7,4%)  
Total BEE score dti level 2 89,50% 100%

* Nedbank does not distinguish between senior top and other top management and has elected to measure top management as a single   indicator as prescribed by paragraph 4.4 of Code Series 200 of the dti Codes.

1 Qualifying small entities.
2 Exempt microenterprises.
3 Black-women-owned.
4 Financial Sector Charter.
5 Small, medium and microenterprises.
6 Black economic empowerment.
7 Net profit after tax.

 

 

SUSTAINABILITY GOVERNANCE STRUCTURES AND POLICY FRAMEWORK

SUSTAINABILITY
FOCUS AREAS
Nedbank Group
strategic focus,
Deep Green
aspirations* and
material issues
Relevant risks Board and
executive
committee risk
management
committees
Policies
and forums
Guiding principles
ECONOMIC

Strategic focus

  • Increase share of
    economic profit
  • Become client-driven
  • Manage risk as an
    enabler
  • Enhance productivity
    and business execution
  • Compliance risk
  • Social and
    environmental risk
  • Investment risk
  • Strategic risk
  • New-business risk
  • Credit risk
  • Directors’
    Affairs Committee
  • Group
    Credit Committee
  • Executive
    Credit Committee
  • Business Risk
    Management
    Forum
  • Group Risk
    and Capital
    Management
    Committee
    (focus of this
    committee
    includes physical
    risks for staff and
    clients)
  • Group Audit
    Committee
  • Credit Policy
  • Compliance
    Policy
  • Investment
    Risk Policy
  • Strategic Risk
  • Principles Policy
  • Reputational-risk
    Policy
  • Code of Banking
    Practice
  • Sector Guidelines
  • King III

Deep Green aspirations

  • Great place to bank
  • Great place to invest
  • Worldclass at
    managing risk
  • Most respected and
    aspirational brand
  • Great at collaboration

Key material issue

  • Deliver lasting
    stakeholder value
ENVIRONMENTAL

Strategic focus

  • Lead as a green
    and caring bank
  • Reputational risk
  • Social and
    environmental risk
  • Strategic risk
  • Group
    Transformation
    and Sustainability
    Committee
  • Environmental
    Policy
    supported by
    the Social and
    Environmental
    Management
    System
  • UN Global
    Compact
  • Equator Principles
  • Sector Guidelines
  • Screening Tool
  • King III

Deep Green aspirations

  • Highly involved
    in the community
    and environment

Key material issue

  • Minimise usage of,
    and impact on,
    natural resources
SOCIAL

Strategic focus

  • Lead as a green and
    caring bank
  • Reputational risk
  • Strategic risk
  • Environmental
    and social risk
  • Group
    Transformation
    and Sustainability
    Committee
  • Corporate
    Responsibility
    Policy
  • UN Global
    Compact
  • Equator Principles
  • Sector Guidelines
  • King III

Deep Green aspirations

  • Highly involved in
    the community and
    environment

Key material issue

  • Build societal capacity
    in southern Africa
CULTURAL

Strategic focus

  • Evaluate people practices
  • Build a unique culture
  • Accelerate transformation
  • People risk
  • Transformation
    risk
  • Transformation
    and Human
    Resources
    Committee
  • Group
    Transformation
    and Sustainability
    Committee
  • Group
    Remuneration
    Committee
  • Strategic Learning
    and Growth Policy
  • Remuneration,
    Rewards and
    Recognition Policy
  • People
    transformation
    Policy
  • Code of Ethics
  • Principles Policy
  • Nedbank
    Employment
    Equity Forum
    (NEEF)
  • UN Global
    Compact
  • King III

Deep Green aspirations

  • Great place to work
  • Living its values
  • Leading transformation
  • Community of leaders
  • Great at collaboration

Key material issue

  • Develop a resilient
    corporate culture

Note: In addition, all relevant legislation is complied with.

2010 Highlights

  HEADLINE EARNINGS   DILUTED HEADLINE
EARNINGS PER SHARE
 
     
         
         
  NET ASSET VALUE PER SHARE   NON-INTEREST REVENUE  
     

» Continued new product development as part of commitment to leading through
    innovation.

» Cost discipline maintained while creating frontline jobs.

» Ongoing enhancement of capital management and risk processes.

  • Approval by South African Reserve Bank of Advanced Measurement Approach for operational risk (effective 2010) and Internal Model Approach for market risk (effective 2011).
  • Strong capital and liquidity positions.
  • Capital adequacy further strengthened (core Tier 1: 10,1%).

» Maintained and enhanced level 2 broad-based black economic empowerment ranking
   in terms of Department of trade and industry codes.

» High level of staff morale maintained despite difficult operating conditions.

» Retained and strengthened position as South Africa’s ‘green and caring’ bank.

  • Carbon neutral – Africa’s first carbon-neutral financial organisation.
  • Listed for the sixth year on the Dow Jones World Sustainability Index – the world’s premier performance benchmark for companies in terms of corporate sustainability.
   
   
This page was updated on 4 April, 2011 ArrowReturn to top