Subject category:
Ethics and Social Responsibility
Published by:
Amity Research Centers
Length: 12 pages
Data source: Published sources
Topics:
Nedbank Group; Equator principles; Green Trust Fund; Enterprise-wide risk management; Fair Share 2030; 'Socially Responsible Banker of the Year'; Sustainable financing model; South Africa; Standard bank; Greenwashing; 'Journey Back to the Top' initiative; Strategic recovery programme; Ecobank
Abstract
Nedbank Group (Nedbank), one of the four largest banking groups in South Africa, had started its official journey in 1831 as 'Cape of Good Hope Bank'. Since inception, Nedbank had set its vision to become Southern Africa's most responsible bank with the help of its ten 'Deep Green' aspirations. However, in 2003, the bank was in a crisis. It was about to lose its banking licenses primarily due to poor staff morale, falling share prices and poor earnings. To overcome this crisis, Nedbank started its sustainable financing initiatives as its makeover approach in South Africa. The bank had implemented various initiatives such as Equator Principles (a risk management framework), Green Trust Fund (Funds for environmental projects), enterprise-wide risk management, Fair Share 2030, etc, to fulfil its goal, ie, 'bank for all', in South Africa. Nedbank also received several awards and accolades for its sustainable initiatives (such as the 'South African Banker of the Year', 'Socially Responsible Banker of the Year', Ernst & Young Excellence in Sustainability Reporting, etc). However, the activist of '350 Africa.org' protested against the bank for financing coal projects in the region and accused the bank of greenwashing. Besides, the bank was sometimes facing problem with its stakeholders and clients while implementing the sustainability initiatives. Some analysts felt that all these CSR initiatives of Nedbank in South Africa were rather a growth strategy of the group to explore the unbanked population of the region. Would Nedbank be able to reap the benefit of its sustainability initiatives in the country? Would the sustainable financing model be its greatest advantage or weakness in the challenging Banking Sector of South Africa, wondered experts?
About
Abstract
Nedbank Group (Nedbank), one of the four largest banking groups in South Africa, had started its official journey in 1831 as 'Cape of Good Hope Bank'. Since inception, Nedbank had set its vision to become Southern Africa's most responsible bank with the help of its ten 'Deep Green' aspirations. However, in 2003, the bank was in a crisis. It was about to lose its banking licenses primarily due to poor staff morale, falling share prices and poor earnings. To overcome this crisis, Nedbank started its sustainable financing initiatives as its makeover approach in South Africa. The bank had implemented various initiatives such as Equator Principles (a risk management framework), Green Trust Fund (Funds for environmental projects), enterprise-wide risk management, Fair Share 2030, etc, to fulfil its goal, ie, 'bank for all', in South Africa. Nedbank also received several awards and accolades for its sustainable initiatives (such as the 'South African Banker of the Year', 'Socially Responsible Banker of the Year', Ernst & Young Excellence in Sustainability Reporting, etc). However, the activist of '350 Africa.org' protested against the bank for financing coal projects in the region and accused the bank of greenwashing. Besides, the bank was sometimes facing problem with its stakeholders and clients while implementing the sustainability initiatives. Some analysts felt that all these CSR initiatives of Nedbank in South Africa were rather a growth strategy of the group to explore the unbanked population of the region. Would Nedbank be able to reap the benefit of its sustainability initiatives in the country? Would the sustainable financing model be its greatest advantage or weakness in the challenging Banking Sector of South Africa, wondered experts?