Nedbank Group

In terms of senior leadership accountability, the responsibility for sustainability issues within Nedbank Group lies with the transformation, social, and ethics committee of the board. Moreover, the bank links its environmental and social commitments to executive remuneration. In addition to publicly committing to gender equality and women’s empowerment, Nedbank Group discloses actions it takes in order to address any identified pay gaps, including conducting tests on remuneration differentials. Furthermore, the bank discloses a list of trade associations of which it is a member including sustainability- and non-sustainability-related organisations.

Nedbank Group discloses that the aggregate amount of finance it devotes to climate solutions corresponds to underwriting a total of ZAR 35.6 billion and paying out ZAR 29 billion in renewable energy projects. The bank discloses it engages with clients on nature and biodiversity-related topics and that it requires its lending portfolio clients to develop strategies to support wildlife populations and affected species.

Nedbank Group has a publicly available policy statement committing it to respect human rights, the ILO core labour rights, the health and safety of workers as well as to prohibit bribery and corruption. Furthermore, it has a grievance mechanism accessible to all workers, external individuals, and communities to raise human rights and bribery and corruption complaints. Regarding diversity and inclusion, Nedbank Group discloses the proportion of its total direct operations workforce for each employee category by age group, gender, demographics and disability. Additionally, 63% of its staff is covered by an independent union or collective bargaining agreement. The bank also discloses the amount of finance it directs towards small- and medium-sized enterprises.

Nedbank Group discloses that environmental and social themes have a 10% weight in its long-term incentive system for the management team but it could clarify whether the remuneration depends on achieving certain performance criteria. The bank also has an opportunity to disclose the total proportion of women in senior leadership roles as well as the ratio of basic salary and remuneration of women to men. Although Nedbank Group discloses a monitoring system in relation to climate risk and environmental and social issues, it could disclose further information on its client and investment engagement framework covering all financing activities.

There is no evidence that the bank discloses a target to reach net-zero financed emissions by 2050. The bank could also include alignment with the Paris Agreement as one of its engagement topics with its clients and investees. Although Nedbank Group is committed to minimising its negative impact on nature and biodiversity through its social and environmental management system, it could clarify if the commitment applies to all its financing activities. In addition, the bank discloses its exposure to thermal coal and upstream oil and gas but has an opportunity to disclose its total exposure across the fossil fuel value chain and its investment and lending portfolio.

Nedbank Group has an opportunity to include a process for identifying its human rights risks and impacts in its social and environmental assessments across all its financing activities. To provide transparency on financial inclusivity, the bank has an opportunity to disclose the amount of finance directed towards women-owned businesses and low-income developing countries.