COP27 kicks off on the 6th of November in the Egyptian resort town of Sharm El Sheikh. Nedbank is committed to leading the charge against climate change. The goal of reaching a net-zero economy by 2050 is front and centre for the Green Bank.
COP27 is about to get underway in Sharm El Sheikh, Egypt. The event is a significant milestone in the world’s shared journey to building a climate resilient future. There is still much to be done to reverse the unsustainable path we’ve been on for far too long, and we all need to share the responsibility, roll up our sleeves and contribute to the positive change we need to see.
Nedbank is at the forefront of managing climate change risks and financing innovative solutions. Our business strategies, policies, mandates and incentives are all aligned with the Paris Agreement, and we are also committed to using carbon budgets to develop science- based targets to help our clients and broader society realise the net-zero economy by 2050.
We know there is still much to be done and we are committed to transparent disclosure of our progress against climate-relevant performance targets and indicators.
Nedbank’s Energy policy details an ongoing commitment to aligning our business and financing activities and actions with the commitments made by South Africa in line with the Paris Agreement.
We are committed to guiding our transition away from involvement in, or funding of, fossil fuels, while at the same time accelerating our efforts to finance the renewable energy solutions needed to move SA towards the achievement of its green economy.
We have set clear targets in terms of reducing and ending the funding of coal-based power generation and unsustainable oil and gas projects.
Although the direct environmental impact of our banking operations is relatively small, we are committed to minimising any negative impacts while maximising the positive ones.
To do this in a measurable way, we have clearly defined reduction targets that are included in all applicable performance contracts.
These targets set out how we are reducing our use of paper, water, and energy, managing waste, optimising recycling and lowering our greenhouse gas emissions.
Aa leading funder of renewable energy in South Africa Nedbank is focused on delivering positive change through the products and services we offer our clients. Our commitment to supporting and enabling renewal energy delivery is demonstrated by the fac t that we have renewable energy exposure to the tune of R29bn
We continue to build on our experience in funding renewable energy projects and supporting our clients in their efforts to source cost-effective and secure renewable energy supply.
In terms of finance that helps to address climate change Nedbank was the first commercial South African Bank to launch a green bond on the JSE. The proceeds of this bond go towards funding renewable energy projects.
In 2020 we partnered with the IFC in raising $200m in climate-linked loan financing that is being directed towards a combination of solar, wind and biomass projects.
In another first for South Africa Nedbank launched a R2,0bn SDG-linked tier 2 capital instrument the proceeds of which will be used to fund solar and wind renewable energy projects.
And as green buildings continue to build momentum we have provided R12bn of funding for the construction of buildings that conform to green building standards.
There’s a lingering misperception among some South Africans that, while global warming is a concern for us here in the southern region of Africa, there are other, more urgent, challenges that first need to be addressed. However, while we certainly do have many social, economic and environmental challenges that need our attention, acting to mitigate and adapt to climate change is not something that can be delayed. That’s because rising global temperatures multiply the threats posed by all those other socio-economic challenges our country is facing, and if we don’t work together to help limit global warming, our country will face even more difficult challenges in the coming years, including:
The potential for expensive carbon border taxes being imposed on our export products by our international trading partners that require evidence of strong climate change commitments and related action More extreme weather events like storms, floods, droughts and wildfires
Widespread crop failures causing growing food insecurity and hunger, decreasing water supply and lower water quality
Greater stress on human health due to heat, water quality and poor sanitation
The bottom line is that climate change is not a concern that’s reserved for wealthier nations with fewer socio-economic problems. It’s a risk that everyone on the planet is facing right now, and one that every country must respond to immediately. And Nedbank is committed to leading the charge against climate change.
