At a time when sustainability issues are rising in importance for all South African banks, Nedbank has led the way in terms of its commitment to environment, social and governance goals. This green agenda is vital in a country that is prone to drought, is Africa’s biggest polluter, heavily reliant on coal for its electricity and in desperate need of a rapid increase in its power generation capacity.
Three years ago, Nedbank marked itself out by publicly committing to stop funding new thermal coal power plants. It has already disbursed R31 billion towards South African renewable energy plants. Following new shareholder resolutions in May 2020, it has now committed to stop funding new thermal coal mines from 2025, even in South Africa; to stop new finance for oil production by 2035; and to exit all exposure to fossil fuel-related activity by 2045. By 2050, all its lending and investment will support a net-zero carbon economy.