Analysis of South Africa’s Big 5 Banks’ Latest Climate Disclosures

  • Non-profit shareholder activism organisation Just Share has released their latest investor briefing which provides an analysis of the most recent climate risk-related disclosures of Investec Limited, FirstRand Limited, Standard Bank Group Limited, Nedbank Group Limited and Absa Group Limited.
  • The assessment is carried out against the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).
  • Just Share also invited each of the banks to engage and provide input on the analysis which resulted in a final brief. 

Overall, while the assessed banks tick some of the boxes required by the TCFD’s detailed guidance, there are many recommended elements of reporting which none (or, at best, a few) of the banks provide.

All of the banks perform best on the Metrics and Targets section (in terms of attempting to comply with most of the detailed guidance points required under each disclosure), and worst on the Risk Management section.

Climate science has demonstrated the critical urgency of significant emission reductions by 2030. Decision-useful information that is relevant, consistent and comparable is essential to inform capital allocation that will support climate action and the just transition. This means that banks should endeavour to address all of the detailed guidance points outlined by the TCFD in their next reporting cycle.

Recognising that all five banks are still in the early stages of TCFD reporting, Just Share highlights what we believe to be the most important focus areas for banks in their next set of climate-related disclosures.

Link to the full Investor Briefing HERE

Author: Bryan Groenendaal

Source: Just Share

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Green Building Africa promotes the need for net carbon zero buildings and cities in Africa. We are fiercely independent and encourage outlying thinkers to contribute to the #netcarbonzero movement. Climate change is upon us and now is the time to react in a more diverse and broader approach to sustainability in the built environment. We challenge architects, property developers, urban planners, renewable energy professionals and green building specialists. We also challenge the funding houses and regulators and the role they play in facilitating investment into green projects. Lastly, we explore and investigate new technology and real-time data to speed up the journey in realising a net carbon zero environment for our children.

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