Carbon offset projects

Greenhouse gas emissions explained

Scope 1 emissions

Scope 1 remained a small portion of our total carbon footprint, only accounting for 5,9% of the total carbon footprint, and the emissions would have been lower if load-shedding had not necessitated the use of standby generators.

Scope 2 emissions

Although our electricity consumption remained the primary source of emissions, accounting for approximately 66,1% of our total carbon footprint, we are investing in cleaner renewable forms of energy. Through a variety of initiatives and the 2019 consumption target, we continue to aim for reduced grid electricity consumption and transitioning towards renewable sources. Through the purchase of electricity wheeling, the overall fossil fuel-based electricity consumption per FTE has decreased. Our electricity consumption from fossil fuel-based sources per FTE has decreased substantially by 15,3% to 3 009 kWh per FTE (2022: 3 554 kWh per FTE) during the reporting period.

Scope 3 emissions

Approximately 28% of the total GHG emissions in 2023 were due to our indirect Scope 3 activities. The Scope 3 emissions increased primarily due to our enhanced Scope 3 reporting initiative, which resulted in the first-time inclusion of Scope 1 and 2 emissions from cloud computing and digital platform services, cash-in-transit services, and our courier service provider, and our distributed workforce. With the inclusion of the enhanced Scope 3 reporting, our total Scope 3 emissions increased by 28%. However, a direct comparison of Scope 3 emissions with the emissions sources accounted for in the previous reporting year, ie excluding the enhanced Scope 3 emissions mentioned here, show less than a 1% increase. Since the emissions from commuting are not directly under our control, they are regarded separately from emissions from our operations. However, highlighting these increases in employee activities and informing our workforce of the difference they can make, not only to Nedbank’s carbon footprint but to the environment in general, can be beneficial in the long run. Green travel guidelines are included in our comprehensive Business Travel Policy to ensure that the most environmentally friendly travel methods are promoted. All employees will be encouraged to use teleconferencing and videoconferencing as alternatives to face-to-face meetings that necessitate carbon-intensive road or air travel if they are practical and relevant. The demand on paper consumption continued to reduce throughout 2023 from the further adoption of self-help digital solutions as part of Nedbank’s digital journey.

Carbon offset inventory

Our carbon-neutral positioning enables us to enhance our client value proposition and create synergies, partnerships, and collaborations with organisations that share our values. A 'reduce first, then offset' strategy underpins these efforts. Internal awareness initiatives and behavioural change drive our own carbon reduction efforts. Only then do we endeavour to use carbon credits to offset our remaining carbon emissions. Our commitment to credibility in carbon offsetting extends to our preference for verified carbon credits, rigorously audited by credible and independent bodies under recognised carbon standards, ensuring transparency and accountability in our carbon offsetting initiatives. In addition, we prefer to support carbon offsetting projects with verifiable carbon credits that have additional sustainable development impacts. Consequently, we connect with African projects that have positive social and natural advantages. The following are some of the carbon offset projects we support.

Gyapa Improved Cook-Stoves Project in Ghana (Gold standard registry)

Gyapa Improved Cook-Stoves Project in Ghana (the project) manufactures and sells efficient charcoal stoves known as gyapa to replace inefficient baseline stoves popularly known as coal pots within Ghana. The project started in the greater Accra and Ashanti regions and gradually expanded into the rest of the country. By so doing, there will be significant reduction of GHG emissions as well as savings on charcoal fuel, which is the main cooking fuel for families in urban and semi-urban Ghana. The project has been operational since 2007 and was registered under the Gold Standard in June 2010 (reference number GS407). The project was successfully renewed following its first crediting period, which started in June 2015 for the next 7 years. The average lifespan of a stove is conservatively estimated as 3 years, although based on experience, it can last several years beyond the 3-year lifespan if handled properly. The project promotes stove sales and use by investing revenues from carbon finance to stove value chain investments, marketing and the development of robust distribution channels. In addition, the project has several secondary benefits. These include reduced indoor air pollution, and subsequently contribute to improved respiratory health, as well as biodiversity benefits resulting from the reduced use of non-renewable biomass sources for cooking purposes. Carbon offsets of 93 775 verified emissions reductions (VERs) were retired in 2023. 

The Makira Forest Protected Area in Madagascar

(Verra Registry)

Through carbon credit sales from avoided deforestation, the Makira Forest Protected Area REDD+ Project finances the long-term conservation of one of Madagascar’s most pristine remaining rainforest systems containing rare and threatened biodiversity, improve community land stewardship and governance, and support sustainable livelihood practices for local people. In 2001 the government of Madagascar, in collaboration with the Wildlife Conservation Society, created the 372 500-hectare Makira Forest Protected Area. In 2012 the Makira Forest became Makira Natural Park – Madagascar’s newest and largest park, and an International Union for Conservation of Nature category II protected area. The Makira Forest Protected Area Project will prevent more than 33 million tonnes of CO2 emissions over the course of 30 years. Carbon offsets of 35 000 VERs were retired in 2023.