Nedbank’s exposure to upstream oil increases by 13%, and to upstream gas by 11%

• Nedbank’s hybrid AGM was conducted by CorpCam,1 and those attending in person did so at the company’s Rivonia Campus offices in Sandton.
• Given the material public interest in the operations and environmental and social impacts of JSE- listed companies, it is commendable that Nedbank made its AGM accessible to stakeholders other than shareholders, who were able to observe the AGM by accessing a live webcast. 
• Just Share compiled a report on the AGM.

Here are the main takeaways:

• From 2022 to 2023, Nedbank’s exposure to upstream oil increased by 13%, and to upstream gas by 11%. Of most concern is the 173% increase to its upstream gas facility limits, which Nedbank states is due to its commitments to gas projects. 
• Nedbank has published “glide-paths” for reducing its financed emissions from the fossil fuel and power generation sectors. The fossil fuel glide-paths set new interim targets for reducing emissions from coal, oil, and gas financing by 2030, off a 2022 baseline. However, the bank had already met its oil and gas target in 2023, allowing it to increase its financed emissions from these sectors, provided they decline again to current levels by 2030. 
• Nedbank confirmed its view of the necessity of gas as a transition fuel and would not commit to a date before 2030 at which it will begin to reduce its exposure to gas. 
• The power generation glide-path sets a cap on Nedbank’s financed emissions from power generation by 2030. This cap is set higher than its current financed emissions from that sector, again allowing for an increase in lending to fossil fuel-based power generation up to 2030.