The Nedbank Group recently 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 credentials on par with that of prestigious international financial institutions such as HSBC and Deutsche Bank, a fitting achievement for the first South African bank to have joined the United Nations Environmental Programme Finance Initiatives (UNEPFI) and the only South African 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

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.

"Nedbank is proud to be able to play a part in contributing towards the fight against global climate change," says Nedbank Group CE Tom Boardman. "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.

Article continues on page two...

Seven ways to get rich Wanna be rich? Karin Muller of Sanlam shares seven tips that will make your dream come true...

Best bank accounts in SA New research indicates that one bank clearly has the most highly rated banking products in SA...

SA's cheapest bank Which bank has the lowest bank charges? Research by ThinkMoney indicates a clear-cut winner.