Press Release : The Nedbank Group today announced its commitment to go carbon neutral, making it the first South African bank and large corporate to take this landmark step.  Already recognised by the Carbon Disclosure Project as a local leader in disclosing its carbon footprint (ranked top SA bank and fourth in low carbon-intensive sectors in 2008), Nedbank is pushing the boundaries beyond merely managing carbon emissions.  Its carbon neutral status will put Nedbank’s green leadership on par with that of prestigious international financial institutions such as HSBC and Deutsche Bank, a fitting achievement for the first SA bank to have joined the United Nations Environmental Programme Finance Initiatives (UNEP FI) and the only SA bank to be included in the Dow Jones World Sustainability Index.  The recent recognition as the’ Leading Green SA corporate’ according to the Ask Afrika 2009 Trust Barometer, is a further accolade and enhances  Nedbank’s  strong green credentials.

Credible carbon neutrality combines an ongoing commitment to reducing the size of a carbon footprint through implementing behaviour change and operational efficiencies, and offsetting residual carbon emissions through the purchase of carbon credits.  Typically VERs, or Voluntary Emission Reductions, are used for this purpose.  Similar to CERs, or Certified Emission Reductions, this type of carbon credit can be generated by renewable energy, energy efficiency, waste management and forestry projects.   However, within the scope of forestry projects, avoided deforestation projects qualify for VERs but not for the CDM (Clean Development Mechanism) registration required for CERs.  Nedbank is likely to invest in a portfolio of carbon projects, according to the availability of desired offset characteristics.

Says Nedbank Group CE Tom Boardman: ‘Nedbank is proud to be able to play a part in contributing towards the fight against global climate change.  Through our involvement in the Princes Rainforest Project (PRP) we are actively contributing towards the preservation of Africa’s tropical rainforests by seeking forestry carbon offsets on the continent. Although the rainforests might feel very far away from South Africa, their destruction through slash-and-burn agriculture and commercial logging will have adverse effects on the life of every person who calls Africa home.’  The well-known work of the Intergovernmental Panel on Climate Change predicts that Africa will be among the worst hit areas during the coming decades, as global warming slashes agricultural yields, promotes desertification, causes the extinction of both plant and animal species, and changes disease patterns.  Boardman is the Chair of the Africa Task Force of the Prince’s Rainforest Project, which brings together African government leaders, NGOs and investors to discuss African solutions to this imminent problem through protecting the continent’s forests.

Another first for the Nedbank Group in addressing climate change was the formalisation of their Climate Change Position Statement, which is supported by clearly defined targets for the reduction in usage of essential natural resources and which have been included in groupwide performance scorecard measurements.

From a measurement and reduction point of view Nedbank already has many of the required carbon emission checks in place.  It measures its annual carbon emissions across its 13 head office and regional office buildings. Between 2007 and 2008, effective reductions in emissions of 7% per fulltime employee (FTE) and of 8% per m² of occupied floor space were measured. Within the reporting boundary, CO²e emissions for the Nedbank Group amounted to 131 309.97 metric tonnes in 2008. It is envisaged that the carbon neutral programme will first focus primarily on reducing the carbon footprint of these 13 buildings, before being rolled out to all other buildings and branches within the group.

The World Wildlife Fund for Nature (WWF), Nedbank’s conservation partner, will advise the Bank on the execution of its carbon neutrality strategy.  Climate Change Programme manager at WWF, Richard Worthington, reflects, “The WWF supports and applauds Nedbank’s initiative as the first step in becoming part of the transformation to a low carbon economy.  However, offsetting of emissions is a complex field, requiring rigorous assessment of the full impacts.  The WWF is committed to working in partnership with Nedbank to support a robust approach to achieving optimal benefits of this carbon neutral initiative.”

With years of international experience in nature conservation, the WWF is recognised as an ideal partner in the fight against climate change, and is included in several Nedbank forums and initiatives.  Next year the two organisations will celebrate 20 years of successful partnership which began with the formation of The Green Trust to support environmental projects via contributions through the Nedbank Green Affinity Programme.  Almost R 100 million has been donated to The Green Trust since its inception.

Boardman acknowledges that achieving carbon neutrality will only be possible with the full buy-in and support of all Nedbank’s stakeholders and most importantly its 29 000 staff members. ‘Central to Nedbank’s sustainability goals is a focus on educating and informing staff, clients and suppliers in respect of social and environmental initiatives,’ Boardman explains, ‘and empowering them to reduce their carbon footprints at home and in the workplace.’  To encourage responsible behaviour among its corporate clients, Nedbank became the first South African bank to sign the Equator Principles in 2005 and has since developed best-practice sector guidelines together with the WWF.

According to Boardman the move towards carbon neutrality is a strategic imperative if the Bank is to achieve its vision of becoming the most highly rated and respected bank in southern Africa. It is a voluntary decision born of an understanding that even companies that are not directly involved in carbon intensive activities can, and should, limit their adverse impact on the earth. ‘If our years of involvement in preserving the environment have taught us anything, it is that we have a responsibility to leave the planet a better place for tomorrow’s generations.  And we at Nedbank can think of no better way of achieving that than by ensuring we tread on it as lightly as possible today,’  concludes Boardman.