nedcor sustainability report 2003 - Nedbank Group Limited

Our journey Our journey 

2003 Sustainability Report

Nedcor 2003 Sustainability Report 

The essence of sustainability is the width 

of its scope. Every facet of life needs to 

be cared for to achieve true sustainability. 

We are part of the fibre of our land and 

its future.

Contents 

Introduction 2 

Chief Executive’s statement 4 

Reaching for the stars 7 

2003 sustainability highlights 9 

2004 sustainability objectives 9 

Old Mutual plc endorsement 10 

Corporate governance 11 

King II implementation plan 12 

Governance structures 12 

The board 13 

Risk management 14 

Nedcor’s Corporate Governance Framework 16 

Code of Banking Practice 18 

Sustainability reporting 18 

Code of ethics 18 

Money laundering 18 

Shareholders 20 

Group value-added statement 22 

Credit ratings 23 

Shareholder analysis 24 

External relations 25 

Marketing and communications 26 

Sponsorships 26 

Political contributions 27 

Government relations 27 

Relationship with regulators 28 

Nedcor’s membership of industry bodies 28 

Clients 29 

Strategic focus 30 

Products 31 

Client care 32 

Nedcor-BoE merger 34 

Employee matters 35 

Nedcor Charter of Employment 36 

Our values 37 

Human resources highlights 38 

Summary of employee statistics 39 

Organisational transformation 40 

Talent management and development 41 

Management and leadership development 41 

Thanking and rewarding employees 43 

Caring for our employees 44 

Internal communications 46 

Industrial relations 46 

Handling the BoE integration 47 

Executive health 48 

Occupational health and safety 48 

HIV/Aids programme 48 

How our employees give back 50 

Financial Sector Charter and BEE initiatives 55 

Direct and indirect Nedcor shareholding 57 

Equity and ownership 58 

Empowerment financing 58 

Access to financial services 58 

BEE procurement 59 

Nedcor’s guiding principles 

on the Financial Sector Charter 60 

Corporate social investment (‘CSI’) 61 

Nedcor Foundation governance 62 

Training and education 63 

Job creation 63 

Leadership development 63 

Welfare 64 

Implementation 64 

BoE Foundation projects 65 

NBS Centenary Foundation 65 

Acknowledgements and recognition 65 

Sensitivities of marketing CSI 66 

Nedcor Foundation projects 66 

The environment 70 

Environmental management 71 

Environmental expenditure 72 

Environmental policy 72 

Socially responsible investment 73 

Go Green Fund (Namibia) 73 

Lending/Financing 74 

United Nations Environment Programme 74 

Edward Nathan & Friedland 75 

Nedbank affinities 76 

The Green Trust 77 

The Sports Trust 80 

The Arts & Culture Trust 82 

GRI content index 84 

Contact details 

Inside back cover (IBC) 

www.nedcor.com

Introduction – report details 

This sustainability report aims to provide comprehensive coverage of Nedcor’s long-term value 

creation for all stakeholders, including: 

shareholders; 

clients; 

employees and unions; 

government and regulators; 

suppliers; 

local communities; 

non-governmental organisations; and 

the environment. 

Each group has a unique set of interests, and a variety of methods are being planned or are in 

place to communicate with stakeholders on an ongoing basis via surveys, regular meetings, the 

internet and reports such as this one. 

This report covers the 2003 reporting period and is the successor to the Corporate Citizenship Report 

that was released by Nedcor in mid-2003. 

The Global Reporting Initiative (‘GRI’) guidelines have been used as the basis for this annual report 

cycle for the production of a more thorough sustainability report. An analysis of the group’s compliance 

with these guidelines appears on page 84. We have also taken cognisance of other sustainability 

reporting initiatives as a guide, including the SPI Finance indicators, Vfu, FORGE Group and EPI 

Finance indicators. 

Nedcor fully endorses the recommendations of the King Report on Corporate Governance for South 

Africa (‘King II’). A King II implementation plan is in place for the organisation, with one of the main focus 

areas being integrated sustainability reporting. Nedcor has also included management of environmental 

and social risks into its enterprise-wide corporate governance and risk management frameworks to 

ensure that they are properly integrated into the organisation’s strategy. 

Nedcor is committed to respect for human rights in its business activities through compliance with 

South Africa’s highly respected and comprehensive Bill of Rights in the Constitution. 

The report covers the activities of the Nedcor Group, focusing largely on the South African operations 

– the aim being to expand the geographical scope of the report for the next reporting cycle. 

2

There have been no significant changes in accounting standards regarding sustainability reporting, 

since the GRI standards were used as the guiding principles for last year’s report, although no content 

index was included then. 

This sustainability report has been subjected to a full audit by our internal auditors and has been found 

to satisfy the accounting principles of materiality, reliability, relevance, clarity, comparability, timeliness 

and verifiability. This is the first step towards having the report independently assessed and verified by 

external parties, which we will consider for future reports. 

The Corporate Governance Division has been tasked with the responsibility for sustainability 

management and reporting, and dedicated personnel have been appointed for this purpose. The 

division has been building relationships with the various business units to address sustainability issues 

properly, as part of their business needs. 

A corporate citizenship committee and board committee oversee sustainability considerations at an 

executive and board level respectively. 

Moving towards 

a sustainable future.

Chief Executive’s statement 

Nedcor embraces sustainability as 

a prerequisite to long-term prosperity. 

Nedcor has committed itself to the concept of sustainability in all its facets, particularly at a 

time when the organisation is seen to be at one of the lower points in its history. We are still 

confident that we are on the right track, and are beginning to turn our fortunes around. We 

recognise that sustainability considerations are particularly crucial at such a time, as a 

means of ensuring greater focus on the long-term interests of all our stakeholders, as well 

as our own long-term profitability. 

Sustainability and good governance form one of the central pillars of my five-point plan for 

revitalising the group. This includes practising a culture of transparency with a responsible 

approach to stakeholder reporting, as we have begun to do with the production of this report. 

Nedcor welcomed the announcement of the Financial Sector Charter (‘FSC’) during 2003 

and regards the FSC as an example of what can be achieved by cooperation between 

government and business. We have appointed Nolitha Fakude to take charge of the group’s 

compliance with the targets laid down in the charter, and aim to exceed these as far as 

possible in making a contribution to the development of all parts of the South African 

economy. 

Nedcor assists in the creation and expansion of structures that help communities lift 

themselves out of poverty and enter the economic mainstream through a variety 

of initiatives: 

During 2003 the group contributed more than R50 million to a broad range of 

community projects through the Nedcor Foundation, the BoE Foundation and the 

NBS Centenary Foundation, as well as the conduits of the Green, Sports and Arts 

& Culture Trusts. These projects focus on important developmental initiatives such 

as childcare, youth advancement, care for the aged and the needy, education at all 

levels, literacy drives and environmental issues. 

As a result of these efforts the group was rated second out of all corporate donors 

in the category of ‘corporate grantmaker’, and non-profit organisations rated 

Nedcor as the financial sector company with ‘the strongest contribution to 

development’ in a report issued by the Cape Town analytical group, Trialogue. 

4

We are particularly proud of our 

culture of employee participation 

in community upliftment. 

Nedcor fully supports calls for greater voluntary commitment to upliftment and is particularly 

proud of the culture of employee participation that has developed. Our employees play their 

part in voluntary work through the Local Hero Programme, Team Challenge and, very often, 

their own initiatives. 

Nedcor remains committed to environmental responsibility, having finalised a new environmental 

policy during 2003, and working closely with WWF-SA and the United Nations Environment 

Programme on local and international environmental and sustainability projects. Professional 

Management Review also named Nedcor ‘industry leader for environmental care’. 

Nedcor recognises the potentially devastating impact of HIV/Aids on the economy 

of South Africa and its populace – particularly the effect on economic growth, as determined 

by a country’s productive capacity, the additional burden on government finances and 

the potential negative effect on private-sector savings. As such the group has a 

comprehensive HIV/Aids programme and policy in place, ensuring fair and sensitive treatment 

of affected employees and continual employee awareness and education. The success of the 

industry-wide prevalence survey was an important step forward in determining the extent 

of the HIV/Aids pandemic in the banking sector. 

Ensuring consistency in approach to the recommendations of King II has been an important focus in 

the governance sphere. The integrated sustainability reporting section has required improvement in the 

past. We hope that this sustainability report will be seen as a considerable improvement in this regard, 

being based on a large amount of work to put a sustainability strategy and reporting processes in place. 

We remain committed to interacting with all our stakeholders to continually improve our approach to 

corporate sustainability and to ensure that we remain a group that cares. 

Tom Boardman 

Chief Executive 

5

Reaching for 

the stars 

Nedcor’s community involvement includes: 

care for people living with HIV/Aids; 

support for education and training; 

funding of feeding schemes for the destitute; 

providing structures for job creation initiatives; 

celebrating sporting prowess and arts and cultural achievement; and 

leading in environmental concern.

Reaching for the stars 

People may wonder about the real motivation for a business such as Nedcor to produce a sustainability 

report. After all, is the compilation of these reports, along with the emphasis on good corporate 

governance and broader sustainability issues perhaps a faddist reaction to media and special-interestgroup 

pressure And would this be particularly the case given the poor image that companies in the 

financial services sector sometimes have internationally 

It is not. While we are very aware of our core business being business – delivering better service and 

meeting client needs, and returning fair profitability to shareholders – we also have a broader view of 

our position and role in society. Our place in the world, and the health of our core operations, will be 

hugely influenced by the state of the nation around us. 

Nedcor is looking at economic, environmental and social responsibility issues as part of a wider 

sustainability strategy that balances and integrates these areas into planning, decisionmaking and 

operations of the company to ensure that the long-term benefits of business decisions for all 

stakeholders are considered. 

It is with this view that Nedcor supported over 350 community development projects in 2003. Some, such 

as the East Rand’s Hope in Victory Care Givers, assist seriously ill HIV/Aids victims while others, such as 

the Sinikithemba project of KwaZulu-Natal’s McCord Hospital, give such sufferers the skills with which to 

live out their days with the dignity of an income, even while receiving necessary medical care. 

Similarly, Nedcor’s continuing support for educational upgrade initiatives at Alexandra’s five high 

schools and its ongoing involvement in Transkeian school projects in Qumbu and Ngcobo are part of 

a wide-ranging commitment to education and training. This commitment includes our being the sole 

funder of the national Readathon literacy campaign, reaching over 26 000 schools. It includes our 

support of the Big Brothers Big Sisters mentoring programmes of Cape Town and Johannesburg, which 

have youngsters partnered by adults from various backgrounds. These people selflessly give of their 

time and expertise in assisting the up-and-coming generation towards leadership. But we do not forget 

our country’s least well-off. 

Care for people living 

with HIV/Aids 

Support for education 

and training 

For this reason Nedcor has consistently taken the view that corporate social investment initiatives should 

not be confined to projects that can be expected to become self-sustaining. The nature of this society’s 

legacies of inequality and deprivation means that much vital welfare work will always need outside support. 

This includes the important care given to abandoned and neglected children in Soweto, through our 

funding of the Johannesburg Child Welfare Society. It also includes the food support services offered 

to our senior citizens in greater Gauteng by the Oliver Tambo Trust, and the legal assistance given to 

often indigent clients in matters of family law by the Peoples Family Law Centres of the Western Cape 

and Gauteng. Then there is the work of nurturing small-business initiatives and housing skills 

development projects in the Free State’s Qalabotjsa township of Villiers. Similar job creation initiatives 

are found in the Zenzele small-business factory funded by Nedcor in Khayelitsha, Cape Town. 

Funding of feeding 

schemes for the destitute 

Providing structures for 

job creation initiatives 

7

Reaching for the stars continued 

Celebrating sporting 

prowess and arts and 

cultural achievement 

Leading in 

environmental concern 

These are but a few examples of Nedcor’s external corporate social investments, supplemented by the 

bank’s activities in the fields of sport development and celebration of arts and culture. It may be argued 

that members of Nedcor’s peer group do some or many of the same things, and there is truth in this. 

But Nedcor’s approach to ‘corporate social investment’ goes beyond what is often understood by that 

term. It includes the voluntary work of over 100 teams of employees in community projects throughout 

South Africa. These include such things as employees of the bank’s Retail Division working in their 

pyjamas to raise money for blankets for the poor, a group of employees renovating Durban’s St Martins 

Children’s Home, and Nedcorians in Port Elizabeth rescuing, cleaning and caring for abused animals. 

These efforts are backed by the involvement of many individual employees in community upliftment in 

their spare time. And it broadens to Nedcor’s sincere commitment, being the leader of the private-sector 

pack in its support for sustainable environmentalism, to build on our reputation of being ‘the green bank’. 

We, both employees and clients, do this through a variety of initiatives – especially through our extensive 

involvement with The Green Trust, an associated trust of WWF-SA, inter alia by supporting projects that 

range from the Cheetah Conservation Fund in Namibia, in its efforts to assist farmers to live alongside 

cheetahs while protecting their livestock, to the Ekangala Grassland Project, which works to conserve 

grassland water catchment areas in Mpumalanga, the Free State and KwaZulu-Natal. 

Nedcor’s results in a business perception survey on corporate citizenship, conducted by Cape Town 

analytical group Trialogue, justify the work that has been done. 

The study consisted of in-depth interviews being held with representatives of 104 major South African 

companies in all major industrial sectors. These representatives were asked to consider a company to 

be a ‘good corporate citizen’ if that company: 

embraced the broad range of corporate citizenship practices; 

consulted widely with all relevant stakeholders; 

promoted responsible corporate citizenship practices widely in the company; and 

reported comprehensively and regularly on corporate citizenship policies and practices. 

Results were as follows: 

Nedbank/Nedcor received most nominations as ‘Best financial services citizen’. 

Nedcor was rated fifth out of 25 nominated companies regarded as ‘Best reporter’ on corporate 

citizenship matters. 

Nedcor was rated joint fourth (with Old Mutual) out of 34 companies regarded as ‘Best corporate 

citizens’ by their peers. 

We do not do these things because we have to – we do them because we want to and because it is 

the right thing to do. But even while we do these things, we shall not lose sight of the fact that we are 

primarily in the business of banking. 

This is also indicative of how we approach matters of employee wellbeing, of empowerment, of doing 

business. It defines who we are, and how we relate to our community and our environment. 

Illustrating our approach to broad sustainability is the reason for this report, another step on our journey to 

being the best place to bank, the best place to work, and the most profitable bank in South Africa. Nedcor 

CE, Tom Boardman, speaks eloquently of the bank’s ‘journey back to the top’. This report is an integral part 

of that journey. Sic itur ad astra! (that is the way to the stars!). 

Adv Selby Baqwa SC 

Head: Corporate Governance 

8

2003 sustainability highlights 

Staffing of Corporate Governance and Sustainability Division 

Launch of Nedcor Environmental Policy 

Joining the United Nations Environment Programme 

Finance Initiatives (‘UNEP FI’) 

Four Nedcor business units achieving the specified project 

standards for the Investors in People standard 

Increase in retail client satisfaction ratings from 62,6 to 65,2 

during 2003 

Announcement of the Financial Sector Charter and appointment 

of an executive responsible for Nedcor’s implementation strategy 

Nedcor Foundation – the launch and the support by employees 

of the Nedcor Team Challenge 

2004 sustainability objectives 

Ongoing education, focus and measurement to further 

increase retail client satisfaction ratings to 70 in 2004 

Properly addressing the indirect environmental impact 

of the business 

Integrating sustainability considerations into the group’s revival 

strategy 

Rolling out training and awareness programmes regarding good 

corporate governance and sustainability practices 

Continued sensitive management of employees affected by the 

merger with BoE and the integration of Peoples Bank and 

Nedbank Retail 

Refining operational structures of the Nedcor Foundation and its 

interaction with the other trusts 

Full implementation of Financial Sector Charter and Black 

Economic Empowerment strategy 

9

Old Mutual plc endorsement 

Old Mutual plc is proud to walk alongside Nedcor on its journey to sustainability, especially in the 

implementation of its corporate social investment (‘CSI’) programmes. 

Old Mutual plc and Nedcor communicate regularly and openly to ensure alignment in the policies we 

follow, as well as alignment between our business objectives and CSI programmes. We are committed 

to working together in the ongoing implementation and improvement of our sustainability performance. 

Corporate Social Responsibility Department, Old Mutual plc 

Our sustainability strategy 

integrates economic, 

environmental and social 

issues into planning, 

decisionmaking and 

operations of the company. 

10

Corporate 

governance 

Nedcor is committed to complying 

with regulations, legislation and 

supervisory codes of conduct at a 

local and international level.

Corporate governance 

Fairness, accountability, 

responsibility and 

transparency 

During 2003 a dedicated Corporate Governance Division, headed by Selby Baqwa, was established to 

coordinate corporate governance and sustainability considerations for the Nedcor Group. This new 

team has been working closely with the Company Secretary and various risk management functions in 

promoting a culture of good governance in the group. Nedcor is committed to complying with 

regulations, legislation and supervisory codes of conduct not only on a local level but also 

internationally, in respect of its relationship with Old Mutual and other international bodies like UNEP 

and GRI. The four primary pillars of fairness, accountability, responsibility and transparency are 

fundamental to all these international guidelines of corporate governance and we will strive to adhere 

to them in our internal governance processes. 

King II (‘the code’) implementation plan 

Nedcor fully subscribes to and supports the code and has developed a comprehensive implementation 

and monitoring plan to meet its requirements and recommendations. This plan incorporates the 

corporate governance requirements of the Regulations of the Banks Act, the recommendations of the 

Myburgh Report and the combined code on corporate governance. The plan has been approved by the 

board, and the Directors’ Affairs Committee monitors its implementation. 

The Nedcor Group already complies substantially with the code. The main area of work in progress during 

2003 was integrated sustainability reporting. Although not fully compliant, significant progress has been 

made in this regard and this will continue to be a major focus for 2004, coordinated by the Corporate 

Governance Division. The Enterprise-wide Risk Management Framework was designed, incorporating all 

relevant aspects of the code. The only areas of anticipated non-compliance with the code in Nedcor, 

which the board is satisfied do not impair the governance system or perceptions of it, are as follows: 

Both the current Chairman of the board and the Chairman designate, Warren Clewlow, are nonexecutive 

directors but are not independent directors, as defined by the code, by virtue of the fact 

that they also serve on the board of the group’s holding company, Old Mutual plc. The Chairman, 

in particular, plays a leading role in spearheading corporate governance in the Nedcor Group. 

It is envisaged that Hixonia Nyasulu and Lot Ndlovu will also serve as Vice-chairpersons in future. 

Chairmen of the following board committees are non-executive but not independent directors, as 

defined by the code: 

– Group Market Risk Committee (Michael Katz); and 

– Directors’ Affairs Committee (Warren Clewlow). 

Governance structures 

Nedcor’s corporate governance framework incorporates a full range of governance objectives, 

a delineation of responsibilities at board, board committee, Group Executive Committee and 

management level, and the identification of champions and key functions for corporate governance 

integration into all Nedcor’s operations. 

The key structures used to oversee corporate governance in the group are: 

Nedcor Board of Directors; 

Subsidiary companies’ boards of directors; 

Group Remuneration Committee; 

Group Audit, Risk and Compliance Committee; 

12

Social and Environment Committee; 

Directors’ Affairs Committee; 

Group Market Risk Committee; 

Group Credit Committee; 

Strategic Innovation Management Committee; and 

Group Finance Oversight Committee. 

The roles of the Chairman and the Chief Executive in Nedcor are separate. 

The board 

The King II Committee recommends that boards should preferably have ‘a majority of non-executive 

directors, of whom sufficient should be independent of management so that shareowner interests 

(including minority interests) can be protected’. 

The current Nedcor Board of Directors comprises 20 directors, of which nine are independent nonexecutive, 

seven are non-executive and four are executive. 

The Chairman of Nedcor, Chris Liebenberg, who will reach the mandatory retirement age in 2004, will 

be retiring, after more than 50 years’ service with the group, at the time of the annual general meeting 

(‘AGM’) of shareholders in May. Warren Clewlow, currently the Deputy Chairman, will succeed 

Chris Liebenberg. 

It is the group’s intention that in future only the Chief Executive and the Chief Financial Officer will be 

executive directors on the board. 

In line with this policy executive directors Barry Hore and Derek Muller, who retire by rotation and are 

eligible for reelection as directors at the AGM, will not be making themselves available for reelection. 

Executive directors Izak Botha and Stuart Morris have both elected to take early retirement with effect 

from 31 May 2004, and have stepped down from the board with effect from 23 February 2004. 

As a result of these changes, the board will be reduced from 20 to 17, which aligns the group more 

closely with the governance requirements of King ll and the recommendations of the Myburgh Report. 

The board will then consist of nine independent non-executive directors, as defined by King II, six nonexecutive 

and two executive directors. Thirty-five percent of the directors will then be black generic in 

terms of the Financial Sector Charter definitions. 

Board meetings 

The King II recommendations hold that the board should meet at least quarterly, that frequency and 

attendance be reported, that non-executive board members have access to management, that the 

board regularly reviews company processes and procedures, and that the board receives regular nonfinancial 

reporting. This has been done through the Social and Environment Committee up to this point. 

Nedcor’s board met 13 times in 2003. 

13

Corporate governance continued 

Board committees 

The revised board committee structure operated successfully during 2003 in assisting the board in 

the discharge of its duties and responsibilities, but is being reviewed to ensure improvements in 

management and board controls. 

The nominations and corporate governance committees were merged to form a Directors’ Affairs 

Committee, in line with the new Banks Act amendments and the recommendations of various bestpractice 

codes. 

Each of the board committees has formal written terms of reference that are reviewed on an annual 

basis. Details on the composition, meetings and key terms of reference, as well as the key risk areas 

they are responsible for monitoring, are addressed in the corporate governance framework, and the 

second layer of the Enterprise-wide Risk Management Framework included in the annual report. 

During 2003 a formal board evaluation process commenced to assess the effectiveness of the board, 

as well as that of the various committees. The directors completed questionnaires and their comments 

were collated and reported to the board and the committees to ensure constant refinement of the 

governance structure and responsibilities. 

Company Secretary 

All directors have full access to the Company Secretary. His statutory obligations include inter alia 

ensuring that all board rules and procedures are observed, providing assistance to directors, and 

ensuring that new directors are inducted in a proper manner that provides them with full knowledge of 

both the business and their responsibilities. 

Risk management 

Risk is an integral part of our business. We do not seek to avoid risk but to understand it properly, 

manage it effectively and evaluate it in the context of an appropriate reward that should be earned. 

Our emphasis for the future is on producing high-quality earnings that are sustainable and will ultimately 

attract a premium rating for the Nedcor Group while protecting the interests of depositors and all other 

stakeholders. 

This will be achieved through innovation, excellent client service and sound enterprise-wide risk 

management. 

Enterprise-wide risk management is about effectively integrating risk management across an 

organisation’s risk universe (eg credit, market, operational and strategic risks), business lines and 

operating divisions (eg corporate, retail, trading, securities), geographical locations and legal entities. 

In February 2003 the board approved the group’s Enterprise-wide Risk Management Framework 

(‘ERMF’). The design of the group’s ERMF comprises what is called the ‘three layers of defence’: 

independent, focused and informed involvement by the board, which is achieved through the board 

committees of non-executive directors; 

14

clear accountability and responsibility of business managers supported by appropriate committees 

on a divisional level, such as divisional credit risk and operational risk committees; and 

independent risk monitoring at group level by Group Risk Monitoring, Group Internal Audit and 

Group Compliance Monitoring. 

Board of directors 

The board is ultimately responsible for any financial loss or reduction in shareholder value suffered by 

the group. It is, therefore, responsible for recognising all the key risks to which the group is exposed as 

well as for ensuring that the requisite risk management culture, frameworks, practices, policies, 

resources and systems are in place. It is also ultimately responsible for allocating capital to 

divisions in accordance with the group’s risk tolerance and appetite. 

Group risk management 

The Group Risk Monitoring Division reports directly to the Chief 

Executive. Its key role is to promote awareness, identification, evaluation 

and monitoring of all key risks across the group. Furthermore, Group Risk 

Monitoring is responsible for the ongoing maintenance of the ERMF and 

championing the implementation of the Basel II programme requirements. 

Group Risk Monitoring focuses its resources on the management and 

monitoring of key daily risks of the group, such as credit, trading and operational 

risk. 

Nedcor’s risk identification and assessment process 

The group has developed and implemented a risk identification and assessment methodology and 

software program that is aligned with best-practice requirements to identify, assess and monitor risks 

in the group at strategic, business and process levels. 

Risk assessment starts with clearly established management objectives, and risks are identified as 

anything that could prevent management from achieving these objectives. These risks, once identified, 

are classified into one of the key risk categories. 

Group Assets and Liabilities Committee (‘ALCO’) 

Group ALCO primarily oversees the management of liquidity, interest rate and foreign exchange rate 

risk in the group. Group ALCO proposes the policies for the management of these risks to the board’s 

Group Market Risk Committee for review and ratification. ALCO meets at least monthly to review and 

approve the proposals on the strategies and policies for the management of these risks. 

The primary role of ALCO is to ensure effective management of the net interest margin of the balance 

sheet through effective interest rate risk management. It also establishes a management framework 

that allocates responsibility for managing the various components of interest rate risk. ALCO is 

responsible for integrating the impact of liquidity risk, foreign exchange risk and capital risk into the 

interest rate risk management framework. 

15

Nedcor’s Corporate Governance Framework 

The board’s 

corporate 

governance 

objectives 

Maximise levels of efficiency and 

profitability of the group within an 

acceptable risk profile and appetite. 

Implementation of the group’s strategy 

and compliance with the strategic 

framework of the group. 

Commitment by executive officers of 

the group to adhere to corporate 

behaviour that is universally 

recognised and accepted as correct 

and proper. 

Balancing the interests of shareholders 

and other stakeholders, who may be 

affected by the conduct of directors or 

executive officers of the group, and 

within a framework of effective 

accountability. 

Mechanisms established and 

maintained to minimise or avoid 

potential conflicts of interest between 

the business interests of the group 

and the personal interests of directors 

or executive officers. 

Timely and accurate disclosure of 

matters that are material to the 

business of the group or the interests 

of stakeholders. 

Finding the correct balance between 

conforming with governance 

constraints and performing in an 

entrepreneurial way. 

Achievement of a balanced and 

integrated economic, social and 

environmental performance 

(‘triple bottomline’) and 

implementation of a best-practice 

corporate citizenship framework. 

Efficient and effective functioning of 

the Enterprise-wide Risk Management 

Framework. 

Compliance in substance, not just 

form, with the provisions of the Code 

of Corporate Practices and Conduct 

of the King Report on Corporate 

Governance – 2002 (‘King II’), the 

Banks Act and regulations, other 

sources of corporate governance best 

practice and requirements of Nedcor’s 

holding company, Old Mutual plc. 

Corporate governance is the system by which the group is directed and controlled, and is also concerned with optimising the balance between the group’s 

economic and social goals – to align as closely as possible the interests of individuals, society and the organisation as a whole. The Nedcor Group fully subscribes 

to best practice and behaviour in corporate governance, the King Report on Corporate Governance (‘King II’), and compliance with Regulation 38 of the Banks Act. 

The board of directors (‘the board’) 

The board of directors is the focal point of the corporate governance system in the Nedcor Group. It is ultimately accountable and responsible for the 

performance, affairs and behaviour of the group. Formalised terms of reference (‘charters’) exist for the board and all the board committees. Salient features 

of these are recorded below. 

Composition of the board 

Unitary board structure consisting of non-executive and 

executive directors. 

Majority of non-executive directors of whom sufficient are 

independent, as defined by King II. 

Chairman of the board not an employee nor a member 

of the Group Audit, Risk and Compliance Committee. 

Membership of the board 

Roles of the Chairman and Chief Executive separate and 

a clearly accepted division of responsibilities. 

No one individual has unfettered powers of 

decisionmaking. 

Board size, diversity and demographics reviewed at 

least annually. 

Group Strategic 

Innovation 

Management 

Committee (‘SIMCO’) 

Chair: ME Mkwanazi* 

CML Savage* 

PH Nhleko 

(*= independent) 

Meetings at least quarterly 

Key terms of reference 

Monitor all issues pertaining 

to information technology, 

both operational and 

strategic 

Ensure alignment of the 

prioritisation and magnitude 

of IT development spend and 

investment with overall group 

strategy 

Ensure that the group has a 

well-coordinated, efficient, 

effective and properly 

resourced IT strategy 

Approve and monitor large 

projects 

Reports to the Directors’ 

Affairs Committee 

Group Capital 

Management 

Committee 

Chair: B Head 

Recovery 

Programme 

Steering 

Committee 

Chair: B Hore 

Basel II 

Steering 

Committee 

Chair: B Head 

Finance Oversight 

Committee 

Chair: CJW Ball* 

ME Mkwanazi* 

RG Cottrell* 

JVF Roberts 

MM Katz 




Ensure that the group’s 

accounting and control 

systems meet the highest 

standards 

Evaluate and review budgets 

and forecasts and 

accompanying disclosure 

material to ensure 

responsible stakeholder 

reporting 

Monitoring the refining of the 

Finance Governance 

structure to improve the MIS, 

monitor accounting policies 

and monitor functioning of 

committee structure 

Exec – SIMCO 

Chair: T Boardman 

GBI Cluster’s Exco 

(IT Strategic Risk) 

Chair: B Hore 

Board Directorship Continuity Programme established. 

Formal board appointment policy in place, assisted by 

the Directors’ Affairs Committee. 

Meetings of the board 

At least six times a year or at the call of the Chairman 

of the board. 

Board evaluations 

Evaluation is done annually on composition, performance, 

processes and procedures. 

Board’s key roles and responsibilities 

Promote the interests of shareholders. 

Ultimate accountability and responsibility for the 

performance and affairs of the company. 

Retain full and effective control. 

Board committees 

Group Remuneration 

Committee (‘REMCO’) 

Chair: JB Magwaza* 

CJW Ball* 

B Figaji* 

TH Nyasulu* 

CML Savage* 

JH Sutcliffe 




Ensure the right calibre of 

executive senior management 

is attracted, retained, 

motivated and rewarded 

Recommendations on the 

remuneration of the 

Chairman, non-executive 

directors and executive 

directors 

Approve remuneration levels 

for senior executives 

Review and approve 

remuneration policies and 

strategy 

Promote that a greater 

portion of remuneration is 

linked to variable pay as 

opposed to guaranteed pay 

Review all aspects of 

remuneration including 

incentive schemes, etc 

Management 

Remuneration 

Committee 

Chair: T Boardman 

Group Human 

Resources Council 

Chair: I Mzimela 

Group Social and 

Environment 

Committee 

Chair: B Figaji* 

MJ Leeming 

CF Liebenberg 

TH Nyasulu* 

GF Richardson 




Monitor all issues pertaining 

to the integrated economic, 

social and environmental 

performance (‘triple bottomline’) 

of the group. 

Approve framework, policies 

and guidelines for social, 

environmental, and nonfinancial 

risk management 

Receive reports covering 

matters relating to social, 

environment and 

non-financial risks and 

potential liabilities 

Review measures of 

sustainability, socially 

responsible investment and 

corporate citizenship 

Review management and 

reporting on social risks, 

eg HIV/Aids 

Directors’ Affairs 

Committee 

Chair: WAM Clewlow 

CJW Ball* 

ME Mkwanazi* 

RG Cottrell* 

ML Ndlovu 

MM Katz 

JB Magwaza* 

TH Nyasulu* 

MJ Levett 

JH Sutcliffe 

CE (invitee) 




The board’s expert monitor of 

the group’s reputational risk 

and in particular the 

corporate governance 

requirements of the Code of 

Corporate Practices and 

Conduct (‘King II’) and 

Regulation 38 of the Banks 

Act, 1990. 

Maintain a board directorship 

continuity and succession 

planning programme 

Functions prescribed by the 

Board and Registrar of Banks 

from time to time 

Monitor group’s performance 

against the board’s corporate 

governance objectives 

Monitor corporate 

governance process of the 

group’s alliances 

Recommend the 

appointment of new 

executive and non-executive 

directors and composition of 

the board 

Assess conduct and 

competence of directors and 

board committees 

Group Executive Committee (‘Group Exco’) 

Group Corporate Citizenship 

Committee 

Chair: S Baqwa 

Corporate Governance 

Management Committee 

Chair: S Baqwa 

Group Credit 

Committee (‘CROM’) 

Chair: CJW Ball* 

B Figaji* 

ML Ndlovu 

MM Katz 

TH Nyasulu* 

CE 

CF 




Approval of advances in 

excess of authority levels 

sanctioned by itself 

Approve credit risk policies 

Approve credit authority/ 

mandate levels 

Monitor the Group Credit 

Risk Framework 

Assess adequacy of 

provisions for credit losses 

Assess trends in asset and 

portfolio quality 

Monitor the Watch List, Large 

Exposures, Country Risk 

Exposures, etc 

Provide guidance with regard 

to specific industries, 

geographical locations and 

clients, and generally act as a 

sounding board for 

management 

Group Exco is delegated by the board of directors the authority for the day-to-day running of the business and governance of the group’s activities. 

Group Exco is assisted by various executive management committees as listed below and executive management functions laid out adjacently. The executive 

management committees also report into the board committees listed above. (Refer Enterprise-wide Risk Management Framework for detail.) 

Group Executive Management Committees 

Credit Risk 

Management 

Committees 

(‘CRAMs’) 

(Separate CRAM 

for each major 

credit division) 

Chairs: various 

independent 

executives 

Technical forums 

Corporate Cluster 

Chair: W Ross 

Retail Cluster 

Chair: S Gericke 

Wealth Management 

Chair: C Vietri 

16

Board’s key roles and responsibilities (continued) 

Monitoring management’s performance and 

implementation of board plans and strategies. 

Appointing and reviewing the performance of the CE. 

Financial statements are true and fair, and contain proper 

and adequate disclosures. 

High standards of ethics and corporate 

behaviour enforced. 

Appropriate risk management, internal controls and 

regulatory compliance enforced. 

Corporate Governance Framework and corporate code 

of conduct implemented and maintained. 

Communication with shareholders and all relevant 

stakeholders transparent and timeous. 

Group Market Risk 

Committee 

Chair: MM Katz 

CML Savage* 

ML Ndlovu 

PH Nhleko 

N Dennis* 




Monitoring across the group 

the management and 

assessment of financial risks 

including 

• market and treasury trading 

risks 

• financial instruments 

(derivatives) usage 

• ALM risks, the ALCO 

process and ALM function 

• private equity, private 

property and debt 

investment risks 

• intragroup investment 

exposures 

• risks related to underwriting 

of share issues. 

Review and approve market 

risk policies, limits, authority 

levels and methodologies 

Group ALCO 

Committee 

Chair: B Head 

Group Trading 

Risk and 

Derivatives 

Committee 

Chair: M Parker 

Capital Markets 

Investment 

Committee 

Chair: B Kennedy 

Property 

Investment 

Committee 

Chair: M Brown 

Group Audit Risk and 

Compliance (‘ARC’) Committee 

(assisted by two cluster committees) 

also receives reports from chairpersons 

of other board committees to enable it to 

discharge its enterprise-wide risk role 

Chair: 

RG Cottrell* 

JB Magwaza* 

ME Mkwanazi* 

BE Davison* 

JVF Roberts 

CJW Ball* 


In attendance (minimum): 

Group Internal Audit, Group Compliance, 

External Audit, executive directors, Chief Risk Officer, 

Head: Basel II & ERM, SAM Baqwa. 



Monitor that an effective internal control, risk 

management and compliance environment prevails 

Monitor that the internal audit and compliance 

functions are effective 

Monitor that the external auditors are effective and 

efficient 

Consider non-audit services rendered 

Review published financial statements and reporting 

for proper and complete disclosure of timely, reliable 

and consistent information and confirm that the 

accounting policies used are appropriate 

Receive regular reporting from key management 

functions, board committees and alliances 

Ensure formal risk assessment undertaken annually 

Monitor the implementation and ongoing 

maintenance of the Enterprise-wide Risk 

Management Framework, and group policies and 

authority levels 

Understand the requirements, review plans and 

monitor implementation of the pending new Basel 

Capital Accord (‘Basel II’) 

Group 

Accounting 

and 

Management 

Information 

Committee 

Chair: B Head 

Group Tax 

Committee 

Chair: B Head 

Cluster 

Operational 

Risk 

Committees 


executive directors 

Divisional 

Operational 

Risk 

Committees 


divisional directors 

Non-financial aspects relevant to the business of the 

company identified and monitored. 

Facts and assumptions recorded to conclude that 

the company will continue as a going concern. 

Director selection orientation and evaluation processes 

in place. 

Ensure that the company is achieving its goal and that 

the correct balance between conforming to governance 

constraints and performing in an entrepreneurial way 

is achieved. 

Review performance of the board committees. 

Define levels of materiality, reserving specific power to 

itself and delegating other matters, with the necessary 

written authority to management. 

Internal audit 

Responsible for the total process of risk management, 

including disclosures on risk management and ensuring 

that a risk assessment is undertaken at least annually. 

Key risk areas and key performance indicators identified 

and maintained, with particular attention to technology 

and systems. 

Review and approve remuneration, and related policies 

practices following REMCO recommendations. 

Ultimately responsible for ensuring an adequate and 

effective process of corporate governance is established 

and maintained. 

Induction of new directors 

An induction programme is conducted for all newly 

appointed directors. 

Executive management governance functions 

SBaqwa – Head of overall corporate governance groupwide 

(Reports directly to the Chief Executive and invitee to all board committees) 

Group Internal 

Audit Division 

GJ Hechter 

Internal Audit 

charter approved 

by the board 

Direct report line 

to group ARC 

Committee and 

Board Chairman 

Independent, 

objective 

assurance 

provider 

Risk-based audit 

approach 

Risk 

management 

Group Risk 

Division 

R van Wyk 

Designing, 

implementing 

and monitoring 

the process of 

risk management 

and integrating it 

into the day-today 

activities of 

the group 

Championing 

enterprisewide 

risk 

management 

Internal 

Group compliance functions 

To ensure that the group continuously manages its regulatory risk, that is the risk that the group does not comply with applicable laws, regulations 

and supervisory requirements. This includes all corporate governance provisions. 

To promote a compliance culture throughout the group that contributes to the overall objective of prudent risk management by the group including 

sound corporate governance and ethical standards. 

The continual review and enhancement of compliance frameworks, policies and procedures to ensure they correctly and timeously reflect any 

changes in the laws, regulations or supervisory requirements. 

To develop and formulate compliance frameworks, policies and procedures proactively to assist all business divisions/companies in the practical 

implementation of effective and efficient compliance functions. 

To monitor that effective compliance functions are in operation in all business units/companies in the group. 

To report on concerns, deficiencies or breakdowns in compliance at all levels and bring these to the attention of the CE/board of directors/Audit, 

Risk and Compliance Committee and Cluster Operational Risk Committee, and assist with the prompt resolution thereof. 

Group Compliance is an integral component of the Group Risk Monitoring Division, but has a direct report line to the Group ARC Committee and the 

Chief Executive. 

Divisional compliance functions 

Primary responsibility for compliance rests with the divisional directors and line management. 

Divisional compliance officers report directly to the divisional directors and have a dotted line to Group Compliance. 

Nedbank Affinities 

WWF-SA 

Key corporate governance 

Board and 

directors 

Corporate 

Governance 

S Baqwa 

Pivotal role in 

champion 

corporate 

governance 

Direct report 

to the board 

Provide the 

board and 

directors with 

guidance 

Advice to the 

board, and 

across the 

group, on good 

governance 

Corporate 

citizenship 

Corporate 

Governance 

S Baqwa 

External 

Independent firms of accountants and auditors 

Deloitte & Touche 

KPMG 

Partners and programmes 

The Green Trust 

Financial Sector Charter 

Accounting 

and auditing 

CE’s Office 

B Head 

Recommendations 

only to 

the Group ARC 

Committee on: 

– auditing and 

non-auditing 

services 

– reporting of 

financial and 

non-financial 

information 

GS Nienaber 

Company Secretary 

Relationships 

with shareholders 

Investor 

Relations Unit 

D Bowden 

Key duties of the executive functions 

Social and 

environmental 

risks identified, 

measured, 

managed and 

reported 

effectively 

Framework of 

corporate 

citizenship best 

practice 

Sustainability 

reporting 

Dialogue with 

investors based 

on constructive 

engagement 

Dialogue with 

all other 

stakeholders 

The Sports Trust 

The Arts & Culture Trust 

United Nations Environment 

Corporate Social Investment 

Nedcor Foundation 

Programme Finance Initiatives 

Nedcor independent executive monitoring 

Executive functions managing the key components 

Independent monitoring functions of corporate governance 

Communication 

Communication 

Unit 

R Shuter 

Information 

based on the 

principles of 

transparency 

and substance 

over form 

Reports and 

communications 

transparent 

Reporting a 

comprehensive 

and objective 

assessment 

activities 

Nedcor Group Internal Audit discharges internal audit functions Nedcor Group Compliance monitors compliance framework and environment 

Nedcor Group Risk monitors credit, market & operational risks Nedcor Group Risk reviews adequacy of risk management frameworks 

Nedcor independent external supervision 

Common external auditors (KPMG and Deloitte & Touche) Common regulatory supervision team 

Old Mutual 

Four Nedcor non-executive directors are also directors on the Old Mutual plc Board of Directors. 

Three Old Mutual plc directors sit on the Nedcor Board of Directors, including the Old Mutual plc CE and FD who are also members of the 

Directors’ Affairs, Remuneration and Group ARC board committees. 

The Nedcor Group ARC Committee Chairman reports at the Old Mutual plc Audit Committee. 

17

Corporate governance continued 

Code of Banking Practice 

Nedcor subscribes to the Code of Banking Practice of the Banking Council of South Africa. This code 

governs Nedcor’s conduct regarding relations with authorities, clients, competitors, employees, 

shareholders, local communities and other primary stakeholders. 

The group has in place procedures and mechanisms to ensure that all elements of the code are 

adhered to fully. Nedcor also works constructively with the Ombudsman for Banking Services to ensure 

that client complaints are resolved appropriately and timeously. 

Sustainability reporting 

Taking note of the recommendations of King II, Nedcor has developed a comprehensive sustainability 

strategy and implemented a sustainability reporting software system based on new key performance 

indicators, which have resulted in this report. A more comprehensive awareness-building programme 

is one of the improvements planned for 2004. 

Code of ethics 

The Ethics Project Team has been tasked to develop and roll out a dedicated campaign to implement 

the newly revised Nedcor Code of Ethics, raise awareness among employees and introduce an ethics 

management programme that will inter alia measure and report on compliance with the Nedcor Code 

of Ethics. 

Money laundering 

The Money Laundering Control Subunit of the Regulatory Risk Management Unit in Nedcor Forensic 

and Protection Services, in conjunction with Group Compliance, is responsible for the anti-moneylaundering 

initiatives of the group. 

With the promulgation of the Financial Intelligence Centre Act (‘FICA’), the legislation providing 

guidelines on money laundering control, specific focus on money laundering investigations and 

compliance within the Nedcor Group has become vital. 

A Nedcor Group Money Laundering Control Manual and Money Laundering Control Policy were put in 

place during 2003 to coordinate the group’s activities in this regard. 

The key focus areas of the Money Laundering Control Subunit are 

as follows: 

Management and investigation of suspicion reports 

Money laundering control awareness, training, policies and procedures 

Assisting and guiding the business with regard to all money laundering matters 

18

Over 19 000 employees completed basic money laundering awareness training during 2003. 

Nedcor follows a zero-tolerance policy with regard to crime and is committed to providing a 

professional environment free from dishonesty, fraud, theft, corruption or unethical behaviour in all of 

its activities and operations. Nedcor Forensic and Protection Services (‘NFPS’) ensures this through 

crime prevention and awareness training, and the dismissal and conviction of employees found to be 

engaging in criminal activities or unethical behaviour. 

For assistance with investigations contact the NFPS tollfree Helpline on 0860 100 340 (within South 

Africa only). 

Innovative money 

laundering awareness 

campaign for 

employees 

The above account represents an overview or summary of the state of corporate governance within 

Nedcor. Additional information is available from the Nedcor 2003 Annual Report. Much work has been 

done to put a comprehensive, well-functioning governance structure in place at Nedcor, especially in 

relation to concerns about governance practices and controls in the past. The focus for the year ahead 

is on refining certain processes, such as succession planning, as well as cascading best-practice 

governance principles throughout the organisation to ensure that every employee recognises that these 

principles are relevant to his or her daily activities. 

19

Shareholders 

Ensuring that our shareholders, potential 

shareholders, analysts and the financial 

media are well-informed and have a detailed 

understanding of Nedcor’s strategic plans 

and performance is key.

Shareholders 

Regular and transparent communication with shareholders, potential shareholders, analysts and the 

financial media is important to ensure that these stakeholders are well-informed and have a detailed 

understanding of Nedcor’s strategic plans and performance. 

While the group acknowledges that it has not enjoyed the reputation it desired in recent times, it is 

committed to continuing to improve disclosure and dissemination of information to ensure that it gains 

credibility among stakeholders in respect of regular and transparent communication. To assist in this 

process Nedcor has employed external investor relations consultants to advise it on its corporate 

communications. 

An investor relations policy is in place, and selected spokespeople may interact with analysts, investors 

and the media in the presence of a representative from the investor and internal media relations team. 

The group uses various tools and technologies to reach its broad audience of stakeholders. These 

include the corporate website; conference call and webcasting facilities (when announcements are 

made); meetings with interested analysts and shareholders; the Securities Exchange News Service 

(‘SENS’); emails to a contact database; and printed material (such as the Nedcor Annual Report). This 

ensures broad simultaneous dissemination of information to stakeholders in South Africa and abroad. 

The group is committed to following the recommendations of King II on reporting to stakeholders by 

presenting a balanced and understandable assessment of the group’s position, addressing material 

matters of significant interest and concern, and striking a balance between the positive and negative 

aspects of the group’s activities to give a full, fair and honest account of its performance. 

During the year the group has undergone substantial change with the appointment of a new Chief 

Executive and several new members on the Nedcor Executive Committee. The resultant restructuring 

of the group has led to a change in the format of the segmental disclosure. Owing to the varied nature 

of the group’s business, accurate segmental disclosure is very important to investors. The group is 

committed to and in the process of refining its cost and capital allocation between units to ensure a 

more precise and accurate segmental split of its businesses. This should help to further explain the 

group’s performance to investors. 

Shareholders’ interests are borne in mind when strategies are formulated by the group. Regular 

feedback on market perceptions is given to the Nedcor Executive Committee and the Nedcor Board. 

Performance incentives for the new year are driven mainly through the setting of return on equity and 

earnings growth targets for divisions, which should help to align employees’ focus with the interests of 

the group’s shareholders. 

The group also believes that all individuals and organisations need to create a positive environment for 

investors by demonstrating their belief in the future of our country through local capital formation. In 

order to position South Africa as the first-choice emerging market for both domestic and international 

investors, we need to overcome the hesitancy about the country’s capacity to deliver. 

Investor relations and external communications: 

Rob Shuter 

Don Bowden 

Tel: +27 (0) 11 295 9699 

Tier 1 Investor Relations 

Fax: +27 (0) 11 294 9699 Tel: +27 (0) 21 702 3115 

Cell: +27 (0) 83 675 8800 Fax: +27 (0) 21 702 3107 

Email: Robsh@nedcor.co.za Cell: +27 (0) 82 555 8721 

Email: Don@tier1ir.co.za 

21

Shareholders continued 

Group value-added statement 

as at 31 December 2003 

2003 2002 

Restated 

Rm % Rm % 

Value added 

Value added is the wealth created from 

providing quality services to clients 

Net interest income 6 808 130 5 955 105 

Bad-debt charge (2 063) (39) (1 067) (19) 

Margin on lending 4 745 91 4 888 86 

Non-margin-related income* 4 976 95 3 975 70 

Other expenditure (4 493) (86) (3 178) (56) 

5 228 100 5 685 100 

Value allocated 

Employees 4 949 95 3 854 68 

Government (taxes)** 711 13 226 4 

Shareholders*** 1 661 32 1 485 26 

Retentions for growth (2 093) (40) 120 2 

Depreciation and amortisation 902 17 527 9 

Retained loss (2 995) (57) (407) (7) 

5 228 100 5 685 100 

* Includes non-interest revenue, attributable earnings of associates and exceptional items (before taxation). 

** Taxation due to central and local government as per the above is detailed in the Nedcor 2003 Annual Report. In addition, the 

group was obliged to collect, on behalf of central government, employees’ tax for the year ended 31 December 2003 amounting 

to R890 million (2002: R966 million). 

*** Value is allocated to shareholders in respect of cash dividends (does not include the underlying value of capitalisation share 

offers) and income attributable to minority shareholders. 

22

Credit ratings 

Fitch (February 2004) 

Nedcor 

Nedbank 

International long-term foreign currency 

International long-term local currency 

National long-term rating 

Individual rating 

BBB- 

BBB+ 

AA- 

C/D 

National long-term subordinated notes A+ 

The long-term rating outlook is stable 

International short-term rating 

F3 

Support rating 5 2 

National short-term rating F1 F1+ 

CA Ratings for Nedcor (February 2004) 

Long term zaAA- Indicates very strong capacity of the issuer to pay interest 

and repay capital, relative to other South African obligors. 

Outlook 

Stable 

Short term zaA1+ Indicates that the degree of safety regarding timely 

payment is either overwhelming or very strong, relative to 

other South African obligors. 

23

Shareholders continued 

Shareholder analysis 

Ordinary shareholders with an 

interest of 5% or more in shares 

Spread of shareholders 

% 

% 

Shares held 

holding 

Shares held 

holding 

Old Mutual Life 

Assurance Company (SA) 

Limited and associates 140 175 066 51,02 

Public Investment 

Commissioners 16 008 570 5,83 

Geographic holding 

Public 132 835 288 48,35 

Non-public 141 919 137 51,65 

Share price 

% holding 

South Africa 78,37 

14 900 

17 760 

18 220 

15 400 

United States 11,46 

England and Wales 3,92 

13 700 

17 100 

12 240 

11 110 

11 850 

Other 6,25 

9 970 

10 300 

10 880 

9 500 

6 203 

Share statistics 

99 

00 

01 

02 

5 640 

03 


Share price (cents) 

– 31 December 6 203 11 110 

– High 11 850 15 400 

– Low 5 640 9 500 

Low High 

Close 


Shares in issue (million) 274,75 270,68 

Market capitalisation 

(Rand million) 17 043,02 29 994,06 

Volume traded (million) 215,98 143,77 

Value traded (Rand million) 18 003,45 17 227,60 

24

External relations 

Nedcor maintains open and transparent 

relationships with all its stakeholders.

External relations 

Marketing and communications 

The primary purpose of Group Marketing and Communications is to build, nurture and strengthen our 

brands and make them more valuable to both users and owners. In doing this, we contribute to the 

growth and profitability of the overall business, its divisions, business units, client groups, channels and 

product sets as well as the image and reputation of the Nedcor Group. 

As part of this commitment, the group is either a member of or subscribes to a number of organisations 

and codes of practice, which include the following: 

The Marketing Federation of Southern Africa 

The Advertising Standards Authority of South Africa 

Proudly South African 

Electronic Communications and Transactions Act 

As mentioned above, there are many activities that a company embarks on to maintain what we term 

the ‘fitness’ of the brand. This is an integrated set of activities, which includes the corporate identity, 

advertising campaigns, ‘living the brand’ internal campaigns, brand fitness and media-tracking 

research studies. 

Brand valuation 

The Strategic Research Department is currently working on finalising a brand evaluation model titled 

‘Brand Fitness’. This will ultimately be used to provide a basis for brand measurement – specifically for 

the Nedbank brand in 2004. It needs to be stated that brand valuation is an extremely new 

field of expertise, with little international best practice currently available in any commercial 

sector or industry. The Nedbank brand, name and logos have been registered and are 

protected by trademark law. 

Trademark management 

Strategic Intelligence, in conjunction with Legal, currently manages a process that reviews trademarks 

and ensures that they are timeously renewed or defended, as and when required. Processes within 

Group Marketing and Communications are also being put into place to ensure that new products or 

trademarks are appropriately registered. 

Sponsorships 

The Nedbank philosophy has always been aimed at people who approach life differently, while helping 

all our people to develop and prosper regardless of race, religion or gender, including those physically 

or historically disadvantaged. 

One focus area is golf – and in particular the annual Nedbank Golf Challenge, the high point of the local 

golfing year, held at Sun City every November/December; the annual Nedbank Amateur Golf Series; the 

Nedbank Women’s Golf Tour; and the broadcast sponsorship of the Golf Digest television show. 

Nedbank is also the proud partner of the SA Paralympic team, the ‘Amakrokokroko’, and was a partner 

at the Barcelona games in 1992, as well as at the Atlanta and Sydney and now the Athens games. Like 

their Olympic Games counterparts, the disabled sporting community view a Paralympics gold medal 

26

as the pinnacle. Nedbank employees have always been very supportive of this sponsorship and take a 

keen interest in the progress of athletes in the buildup to the games and in the games themselves. 

The Nedbank Championships for the Physically Disabled took place this year in Durban at the end of 

March. These championships will be used as a qualifying event for many of our disabled athletes 

hoping to represent South Africa at the Paralympic Games. 

Peoples Bank and Nedbank are also sponsors of the Comrades Marathon. 

Political contributions 

Nedcor fully supports the South African democratic system, but does not contribute to individual 

political parties. 

The group’s stance is apolitical, a principle that extends to not funding projects that are specifically 

undertaken under the auspices of political parties. Nedcor assists with worthy causes initiated by civic 

organisations and it is not inconceivable that these initiatives may involve political figures. 

Government relations 

The Public Sector Business Unit, part of Corporate Banking, offers a broad spectrum of transactional 

banking products and services starting from a current account and ranging across customised digital 

solutions and cash management. Through an internal network it coordinates the offering of specialist 

solutions. These include: 

Project finance 

Structured finance 

Debt origination 

Treasury services 

Group employee schemes 

Government markets served comprise central, provincial and local government, state-owned 

enterprises and various government agencies and commissions. The current bank policy on doing 

business with government covers all of the above, with a qualification in respect of local authorities, 

ie targeting mainly the six metropolitan councils. 

Some of the key clients of the unit include SAA, Spoornet, Bakwena Platinum Corridor Concessionaries, 

SARB, Telkom, SABC, National Parks Board, Rand Water, National Ports Authority and Central Energy 

Fund as well as a variety of government departments, municipalities and universities. 

The business showed significant growth during the year and made a sound contribution to the 

division’s bottomline. 

Business is awarded on a tender basis, and this has become particularly competitive with offshore 

institutions targeting specific deals that have both foreign- and rand-funding requirements. Successes 

have therefore been fewer than in previous years. Pricing has played a major role, as government 

has become particularly cost-sensitive in an attempt to reduce overall operating costs. 

27

External relations continued 

Strategy and outlook 

The public-sector funding budget is estimated at about R180 billion over the next five to ten years. 

The Nedbank Public Sector Unit will be targeting a portion of this business, using the following: 

Bond and commercial paper programmes 

Project and structured finance 

Asset-based finance 

There will also be a strong focus on transactional banking business, which drives non-interest income. To this 

end the bank will be targeting the provincial government tenders due to roll out from around April 2004. 

To enable effective effort in this business, and to meet the challenge of our competitors, a number of 

appointments will be made, including a coastal team, which will focus on the provincial business. 

Relationship with regulators 

Nedcor maintains a transparent relationship with its regulators. In addition to the South African Reserve 

Bank, the regulators of jurisdictions within which we conduct operations are consulted on all pertinent 

issues. Various functions within the organisation, for example Nedcor Secretariat, Group Legal, 

Corporate Governance Division and Group Compliance, maintain a continuous working relationship with 

our regulators and facilitate onsite visits, prudential meetings and many enquiries of the South African 

Reserve Bank. The Banks Act requires applications to be lodged with the regulator prior to the 

conducting of many banking activities, and in this regard continuous cooperation and communication 

take place. This, together with many other initiatives within the bank, has secured the confidence of the 

regulator. Nedcor complies with all the JSE listing requirements and ensures ongoing compliance on an 

annual basis, as well as making the necessary adjustments to comply with listing requirement changes. 

Nedcor’s membership of industry bodies includes: 

Banking Council of South Africa 

Black Business Council 

Black Management Forum 

Proudly South African 

Compliance Institute of South Africa 

South African Reward Association 

International Association of 

Financial Card Investigators 

South African Card Fraud Forum 

South African Institute of 

Chartered Accountants 

Business Women’s Association 

Bond Exchange of South Africa 

JSE Securities Exchange South Africa 

National Business Initiative 

Free Market Foundation 

South African Institute of 

International Affairs 

World Economic Forum 

The Ombudsman for Banking Services 

Institute of Directors 

South African Reserve Bank (‘SARB’) 

Payments Association of South Africa 

British Chamber of Business 

Centre for Human Development 

Tourism Business Council 

of South Africa 

Jewish Report 

CA Ratings 

SABRIC (Pty) Limited 

Business Map Foundation 

South African Foundation 

Afrikaanse Handelsinstituut 

Fitch IBCA 

Institute for Security Studies 

South African Institute of Race Relations 

28

Clients 

A key strategy for the group is to increase the 

number of clients for whom it is the primary 

banker, in both the corporate and retail markets. 

To achieve this goal the group is focusing on 

providing enhanced client service.

Clients 

Strategic focus 

Nedcor’s executive team recognises the need to restore client confidence in the bank, retain client 

loyalty and continue to improve client service. Client service excellence is therefore one of the five 

points contained in the Strategic Recovery Programme, and this will be an area of focus for all Nedcor 

employees in the year ahead. Cross-selling initiatives will be undertaken to ensure that the bank is 

providing a full portfolio of services to its clients. At the same time, Retail Banking recognises the need 

for providing banking services to a wider sector of the population. The youth market and small and 

medium enterprises will be targeted as specific growth areas. 

Nedcor’s corporate strategic thrusts include building on our intellectual capital and advisory capacity, 

and enhancing our strong corporate and business banking relationships. As a division, we are 

maximising our regional strengths and concentrating on the corporate market as well as the midmarket 

around the country. We are also committed to focused growth in the African subcontinent and 

international markets. We have a consistent and committed approach to financing black economic 

empowerment. Effective affirmative action has our firm commitment as well. 

A key strategy for the group is to increase the number of clients for whom it is the primary banker, 

in both the corporate and retail markets. To achieve this goal the group is focusing on providing 

enhanced client service through: 

the introduction over the next five months of a major client-service-related initiative involving 

comprehensive employee training; 

the review of systems and improvement of functionality to ensure that products are client-focused; 

the intensification of client research so as to better understand their businesses and opportunities 

for cross-selling products and services across the group; and 

the implementation of employee incentive schemes to align rewards with client service excellence. 

Market share 

The following table shows Nedcor’s market share for certain major products as at 31 December 

2003: 

Total assets 22,38% 

Credit card 18,87% 

Mortgages 26,28% 

Instalment debtors 18,86% 

Loans and advances 23,79% 

30

Products 

Nedcor provides a wide range of wholesale and retail banking products and services to a broad corporate 

and retail client base in South Africa, as well as a more limited range of banking and related services in 

certain markets outside of South Africa. Nedcor operates through three principal business clusters: 

Nedbank Corporate, which focuses on the provision of lending, deposit-taking and transaction 

banking execution services to its wholesale banking client base, as well as the provision of limited 

bancassurance services. Nedbank Corporate comprises four 

divisions, Corporate Banking, Business Banking, Property and 

Asset Finance, and Nedbank Africa and International. In addition, 

Nedbank Corporate also includes the results of Nedcor’s 50,1% 

interest in Imperial Bank. 

Nedbank Capital, which focuses on the provision of mergers and 

acquisition advisory services, specialised and project finance, treasury, 

debt and equity capital markets and domestic institutional equity-related 

services, as well as complementary legal services. Nedbank Capital 

comprises Project Finance, Investment Banking, Equity Capital Markets, 

Debt Capital Markets, Treasury and Nedcor Securities (Pty) Limited, as 

well as Edward Nathan & Friedland. 

Retail and Wealth Management, which provides retail credit, savings, 

investment, transactional, and insurance and assurance products and services 

(including advisory services) to retail and SME banking customers. The Retail component 

includes the Nedbank, Old Mutual Bank, Go Banking and the bancassurance businesses. Wealth 

Management includes BoE Private Clients, Nedcor Retail Investments, Gerrard Private Bank and 

offshore trust companies. 

Nedcor continues to focus on product innovation and a major thrust is to converge and consolidate 

channels into fewer channels, spanning more markets on a modern architecture. The NedInform GUI 

channel was very well accepted in the market and won accolades in the recent BMI survey, achieving 

the ‘highest satisfied’ and ‘extremely satisfied’ ranking in 8 out of 10 factors. Despite this, however, the 

growth in this market was minimal at 22%. In addition, heavy price discounting is eroding the effect of 

growth. The client requirements of the BoE base necessitated the development of available balance 

transaction capability on NedInform. This is due for completion in mid-2004 and will allow us to bring 

some of the premium functionality to a segment that previously did not qualify. 

Nedcor also offers a wide range of telephone, cellphone and internet banking services as part of its 

commitment to client access and convenience. 

Case study: our response to internet banking fraud 

On 21 July 2003 articles began to appear in the press concerning fraud that had been 

committed via a competitor’s internet banking offering. All the banks’ internet banking services 

came under scrutiny over the next couple of weeks. 

31

Clients continued 

The fraud was committed through ‘identity theft’, ie the fraudster ‘stole’ the clients’ internet banking 

identities and PIN, by loading a piece of software on the clients’ PCs, via an email without the 

clients’ knowledge, which tracked the clients’ keystrokes and emailed that information to the 

fraudster’s email address. The criminal was then able to transfer funds fraudulently out of the 

clients’ accounts via the internet. Nedbank’s internet banking service was not compromised. 

All the banks responded with advertorials assuring clients of the safety of their internet banking 

offerings. Nedbank was in a most fortunate position, as it had taken security steps more than a 

year prior to this to limit clients’ exposure to such identity theft. NetBank has a 

second layer of authentication by way of a cellphone SMS, offering additional 

security for certain functions. If a client wishes to make a payment to an account 

at another bank, not already loaded on the client’s profile, over the once-off 

payment limit set by the client (typically R1 000) or load an account onto the profile, 

an SMS containing a unique reference number is generated by the system. This 

number has to be entered before the transaction is confirmed. 

Best practice suggests that the best security is offered by something a client knows 

(PIN, profile number, password), something a client has (in this case a cellphone) and 

something a client is unaware of (typically biometrics that are not yet widely available 

on a cost-effective level). NetBank’s two-layer authentication covers the first two 

categories. 

This second layer of authentication has since been extended to cover all once-off payments, 

ie to all accounts, including credit cards and other Nedbank accounts, and all instances of a 

client adding a beneficiary to the client’s profile. Clients have not been inconvenienced, as they 

can still make payments without the SMS to all accounts already loaded on their profile. 

If a fraudster does get hold of a client’s PIN, profile number and password (identity theft), all he 

or she will be able to do is pay the client’s existing accounts or transfer funds up to the onceoff 

payment limit, which cannot be more than R1 000. 

Other banks are following in our footsteps by also offering second-layer authentication. 

Client care 

The best performing companies in the world today earn their market share by delivering better client 

service – a level of service that differentiates them from their competitors and that cannot be easily 

copied. In the light of this, service quality and improvement remain a priority at Nedcor and we 

subscribe to the Code of Banking Practice in all our interaction with clients. 

To improve we need to measure our current performance and understand where we are not consistently 

meeting client expectations at present. This is achieved through the logging and tracking of client 

complaints and the conducting of client interviews. 

32

Nedcor takes client complaints very seriously and has a well-established complaint-logging and 

escalation system in place. An average of 45 cases for Nedcor are received in a month. The cases for 

the Ombudsman for Banking Services (previously known as the Office of the Banking Adjudicator) are 

tracked and resolved by a specialised team within the Client Service Advisory Unit. 

Some of Nedcor’s client awards in 2003 include: 

The Office of the Banking Adjudicator Marketing Commitment Award for displaying excellence 

in promoting the OBA to clients during 2003 

The Code of Banking Practice Marketing Commitment Award for excellence in promoting the 

Code of Banking Practice to clients during 2003 

Client satisfaction is determined internally through client surveys, and externally by way of a number of 

external models. Nedcor conducts 50 000 client satisfaction interviews annually. Nedbank Retail 

Enterprise-wide Customer Satisfaction Measure (‘ECSM’) was 62,6 in January 2003. This increased to 

65,2 at the end of 2003, with a significant improvement in Private Banking, ahead of the 65 target. The 

target for 2004 has been set at 70. 

Client protection 

Each relationship manager is responsible for dealing with the complaints and queries of his or her 

clients. Insurance capabilities are also included in some products. 

Client privacy 

Nedcor subscribes to the Code of Banking Practice, which requires that all personal information of 

clients be treated as private and confidential. Nedcor is further committed to complying with the 

Electronic Communications and Transactions Act regarding client privacy, and new legislation, such as 

the Financial Intelligence Centre Act (‘FICA’) (rollout under way) and Financial Advisory and Intermediary 

Services (‘FAIS’) Act (implementation under way), which will change some processes. Each employee 

signs a declaration of secrecy, and contravening this will lead to disciplinary measures. Furthermore, 

formal policies and processes are in place in each division to manage client privacy and confidentiality. 

Product/Information labelling 

Although detailed product brochures are available, relationship managers are also responsible for 

explaining the characteristics and implications of the products to their clients. 

Product policies and procedures exist and product review committees are in place or are being 

formulated within our Private Client businesses. 

33

Clients continued 

Nedcor-BoE merger 

The integration of Nedbank, BoE, NIB and Cape of Good Hope Bank (‘COGHB’) commenced in 2003, 

after the planning phase had been completed in December 2002. The integration of Wealth 

Management (South Africa), Retail (including branch closures and migration), Nedbank Capital and 

Nedbank Corporate were largely completed in 2003, with minimal disruption to our clients. One of the 

most significant projects remaining is the transfer of NBS clients to the Retail Division. 

The client system migration that occurred in 2003 included 66 500 BoE Business Banking clients and 

the investment, savings, current and credit card accounts of about 25 000 COGHB clients. Approximately 

15 000 BoE point-of-sale devices were brought under Nedbank management control by the end 

of February 2003, and seven BoE Cash Centres were integrated into Nedbank’s Cash Centres. A total 

of 28 367 client records were migrated from NBS and Cashbank to the corresponding Peoples Bank 

and Nedbank systems. Dual functionality (ie PEP Bank and Peoples Bank banking facilities) has been 

enabled in PEP Bank branches for 330 000 active clients. 

34

Employee matters 

In line with the aims and objectives of Nedcor’s overarching corporate citizenship duties, 

employee development and wellbeing remain crucial imperatives. Human Resources 

therefore concentrates on support for our employees in accomplishing their personal and 

business objectives. Transformation also remains an important part of our focus as the 

Nedcor Group moves towards a diverse and accomplished workforce that exceeds 

industry norms and improves our competitive edge. At the same time, special attention is 

being paid to the refinement of leadership competencies and the retention of employees.

Employee matters continued 

The Nedcor Charter of Employment 

Equality 

To treat and be treated in a fair and equitable manner, 

irrespective of race, colour, nationality, creed, gender, 

language, culture, age or physical disability. 

Self-development 

To develop skills actively to meet the changing 

demands of our job and, similarly, to assist and 

encourage our peers in appropriate cases. 

Open communication and 

transparency 

To receive and communicate all relevant information 

that will enable us to conduct our duties in a proper and 

successful manner. 

Nedcor’s mission, vision and values 

To know, understand, support and consciously strive to 

contribute towards the achievement of Nedcor’s 

mission, vision and values and to be guided by them. 

Environment 

To be provided with a work environment that is 

conducive to the delivery of work of a high standard and 

the wellbeing of all employees. 

Respect and dignity 

To treat people with respect and dignity irrespective of 

race, colour, nationality, creed, gender, language, 

culture, age or physical disability. 

Performance management 

To have our performance managed, using agreed-on 

end results, qualities and measures, at reasonable 

intervals, and to be given open, honest and constructive 

feedback both on achievements and underachievements, 

with a right of appeal in this regard. 

Support/Partnership 

To support management, teams and peers in order to 

promote good results and steady growth. 

Remuneration 

To receive a fair and market-related remuneration based 

on individual performance and merit. 

Relationships 

To cultivate and maintain a healthy relationship with 

colleagues based on mutual trust, honesty and respect. 

Recognition 

To be recognised openly for excellence and 

unquestionably superior performance, if and when this 

occurs. 

Confidentiality 

To abide by the principles of confidentiality relating to 

the business of the bank, its clients and employees. 

Protection from victimisation 

Not to be victimised in any way by anyone, particularly 

where an employee has, rightly or wrongly, lodged or is 

about to lodge a complaint with the ombudsman or 

a superior. 

Client satisfaction 

To satisfy clients’ business needs promptly and 

professionally, in a respectful and friendly manner, and 

to comply with all legitimate and reasonable requests in 

this regard. 

Teamwork/Team learning 

To recognise the need for teamwork and to strive 

towards building that spirit among other employees. 

Performance 

To strive continuously and overtly to achieve unquestionably 

superior performance. 

36

Our values 

Following a disappointing period that has shown that our values have not become embedded in our 

culture, we have recommitted ourselves to our values of trust, teamwork, professionalism, integrity and 

respect to form the foundation on which our actions, attitudes and relationships are built. The Nedcor 

rallying cry is ‘to the Nth degree’. It’s about doing the very best that you can, going beyond 

expectations, reaching new heights of achievement. Each employee is called upon to go to the Nth 

degree for clients and for one another. 

Teamwork N 

Great teamwork requires a shared vision and passion. At the core are committed individuals who 

will offer encouragement and support. But effective teamwork also requires leaders who put the 

team’s interests before their own. 

Respect N 

To be truly successful we have to respect the dignity and worth of one another. We not only 

acknowledge our differences, but also learn to embrace them. And even though we’re a business, 

we never forget to practice acts of simple human kindness. 

Integrity N 

We welcome and believe in people of integrity. We applaud the individual who practises honesty 

and fairness. Ultimately, each individual’s strength of character will ensure that we maintain a 

business with integrity. 

Professionalism N 

As individuals we’re continually raising standards in our pursuit of excellence. We strive to 

deliver what was promised on time, if not sooner. Our job is simply not done until our 

stakeholders and we are all more than satisfied. 

Trust N 

Trust is the cornerstone of how we build long-term relationships with our clients and colleagues. 

We earn trust by adopting the highest of ethical standards, being honest and transparent, 

ensuring our conduct is professional and taking full responsibility for our actions. 

37


Human resources highlights 

Group Human Resources (‘HR’) has once again been in the spotlight, as business has been adapting 

and responding to the new challenges posed by the markets. Following the merger with BoE, HR was 

required to review major processes and benefits offered to employees. These processes necessitated 

the alignment of HR enterprise-wide terms and conditions and strategic functions, as well as reviewing 

the strategic intent of the HR function, enterprise-wide. 

In terms of the HR strategy, a ‘team-based HR model’ was accepted and implemented, with the 

specialist functions being housed at the centre and customisation and implementation of policies and 

processes being done by the HR practitioners in the divisions. There is an agreed strategy to jointly 

design new products and services (ie group and line HR practitioners) through ‘communities of 

practice’, which supports a process of upskilling and knowledge sharing and facilitates a general 

understanding of business. The role of HR is to facilitate, coordinate and evaluate the building of 

organisational and people capabilities, based on best practices and, in a cost-effective manner, to 

assist the organisation to meet its objectives. 

Employee benefits (medical aid, pension fund and insurance) also required major restructuring following 

the merger. These benefits had to be aligned with the existing Nedcor value proposition to employees. 

In particular, medical-aid providers had to be merged, which received the Medical Aid Regulator’s 

approval. 

Nedcor, BoE, NIB and COGHB all had different remuneration policies and incentive schemes, and 

during 2003 significant work was done to align these schemes and to agree on one set of principles 

supporting incentive scheme design in Nedcor. 

Group Human Resources is also instrumental in reviewing the Nedcor recognition policy to 

ensure that employees are fairly and equitably rewarded for performance. 

With the merger and reorganisation (‘M&R’) process, a saving of R9,8 million was achieved. A 

new enterprise-wide transfer-pricing model has been agreed and will be introduced during 

2004. 

A new system of evaluating positions, based on the Stratified Systems Theory, was agreed 

by the HR Executive Committee and will be implemented during 2004. This new system 

provides us with an opportunity to evaluate positions in the current seven broad bands, is 

more suited for a broad-banded organisation and supports the need for transparency. 

The Learning and Development Unit was decentralised to be able to work more closely 

with the divisions in respect of their specific training needs. 

A risk analysis was done in respect of enterprise-wide HR functions, and plans to address and mitigate 

risks were signed off and incorporated into business plans. 

38

Summary of employee statistics for 2003 and 2002 


Total number of employees 24 984 25 640 

SA permanent employees at beginning of year 23 324 17 294 

Add: 1 967 9 253 

Recruitments 1 967 2 022 

Acquisition of new businesses – 7 231 

Less: 4 278 3 223 

Resignations 3 373 2 342 

Deaths (not work-related) 22 25 

Dismissals 120 145 

Retirements 177 209 

Retrenchments 503 421 

Emigration 55 81 

Disability 28 – 

At end of year 21 013 23 324 

Add other employee categories: 3 971 2 316 

Contractors, financial planners and other 2 615 1 646 

International employees (including Africa) 1 356 670 

Total number of employees (including temporary staff) 24 984 25 640 

Overall race split 

Non-management level 

split by race 

Management level 

split by race 

Black, Coloured, Indian 49,3% 

White 50,7% 


White 40,0% 


White 78,7% 

39


Organisational transformation 

As part of our commitment to employment equity we set up a fully representative Organisational 

Employment Equity Forum, with appointed executive representation, elected divisional representation 

and trade union representation. 

A groupwide employment equity survey was completed, with a total response rate of 25%. The survey 

findings were used to guide the employment equity (‘EE’) planning process. A detailed organisational 

EE plan has been adopted, clearly setting out the annual milestones required to enable us to adhere to 

the transformation agenda, in line with legislation and the various industry initiatives. 

A Human Resources Equity Index – a mechanism that tracks contributions to the key transformational 

drivers – will be used to assess and recognise the contributions made in the transformation process. 

Achievement against this index will have a direct impact on the bonus allocation of all managerial 

employees. 

Our existing affirmative action policy has been reviewed with a view to developing a broader EE policy. 

Active participation in and support of the industry initiatives, such as the Financial Sector Charter, 

geared towards transformation of the sector, will continue to remain a key priority. 

Gender advancement 

Although we have come a long way in our transformation process, one area that still requires significant 

attention is female representation at senior and executive levels. The Organisational Transformation 

Unit works to facilitate greater gender representation in Nedcor. 

The intention is that through the exposure of a pool of selected women to specifically identified 

business programmes – such as the Strategic Management of a Bank, the Harvard Women Leading 

Age distribution 

Gender split 

Under 30 years 28,0% 

30 – 39 years 38,0% 

40 – 49 years 23,0% 

Over 50 years 11,0% 

Female 63,4% 

Male 36,6% 

40

Business and Executive Forum, and the Warwick Post-graduate Award in Business Management – a 

significantly greater number of women will have been assessed in terms of skills for senior management 

and executive positions. Nedcor has been allocated an amount of R1 million to focus on the 

development of selected women employees over three years. 

In recognition of the contribution of women, the Organisational Transformation Unit, in collaboration 

with the Retail Women’s Forum, hosted an exciting event on National Women’s Day. 

Talent management and development 

Group Human Resources has created a unit called Talent Management and Development with a 

mandate to cocreate and coordinate a consistent, integrated and best-practice approach to talent 

management across the group. This approach is aligned with the overall Old Mutual Group talent 

management process and takes into account and reflects the unique nature of the South African 

environment. The unit strives to align talent management and development with business strategy in a 

flexible manner to accommodate the business focus of the respective divisions. 

As a result of the merger, the assessment department was involved in numerous projects. A total of 

1 520 candidates were assessed in 2003 for the purpose of recruitment, teambuilding, career 

management and development. 

The career-counselling service that was offered to all the individuals in the Employment Development 

and Deployment Centre which was instrumental in redeploying people to appropriate positions in the 

context of the Nedcor-BoE integration (please see page 47). Close to 60% of all employees completed 

the capturing of their own skills through the new system. The system is being enhanced, and we 

anticipate a much higher percentage for 2004, once the integration process has been completed. 

Management and leadership development 

The role of the Management and Leadership Development Centre is to provide intensive, 

high-quality and relevant management and leadership development interventions to the various levels of 

management in the group. These interventions are facilitated in partnership with top-class local and 

international business schools and niche learning partners. During 2003 a total of 420 managers 

attended applied academic programmes and 30% more managers attended the short-series 

programmes than in the previous year. 

The Management Development Programme, facilitated through the University of 

Stellenbosch Business School (USB-ED), achieved a 100% pass rate for the third 

time in the history of the programme. This year a total of 110 candidates 

graduated on the three programmes. 

The Senior Management Development Programme (‘SMDP’) was facilitated 

through the University of the Witwatersrand (Wits Business School). A total of 

72 candidates graduated on the programme during 2003. The SMDP typically draws 

participants from disparate functions and locations within the organisation. The programme 

aims at engendering a culture of openness, respect and tolerance through a series of creative 

exercises and case studies relevant to the organisation. 

Five Nedcor managers participated in and completed the He’Atid Leadership programmes. 

The delegates, who were all black generic managers, spent six weeks in Ireland. They learned about 

the successful transformation of the country on a social, political and economic level and are 

41


expected to apply what they have learned to projects that they will introduce to assist specific 

communities with developmental initiatives. 

The Nedcor Leadership Network (L-Net) comprises a range of learning interventions aimed at 

providing managers and leaders in Nedcor with opportunities to stimulate and challenge their 

thinking, to expand their knowledge and experience, and to focus on ongoing learning and growth. 

Nedbank is currently expanding the Leadership and Management Framework to include businesscentric 

learning, and these programmes will commence in 2004. 

The Global Executive Development Programme is aimed at exposing senior executives to local and 

global best practice. The Senior Executive Programme includes a range of international programmes 

aimed at senior executives globally. These are held at top international business schools, such as 

Harvard, Insead, etc. 

While a skills development strategy may be sound in making South Africa’s existing workforce 

more economically competitive, it is also important as a way of healing our society, following the 

years of neglect that have resulted in South Africa’s systemic poverty, unacceptably high crime 

rate and sometimes poor work ethic. Against the backdrop of a critical skills shortage in the 

country, Nedcor established a National Qualifications Unit in 1999 as part of the response of HR 

to the country’s strategy for skills development. 

Nedcor participated in an interbank project, which was funded by the BankSETA for compliance with 

the Financial Intelligence Centre Act. Over 19 000 employees have completed the computer-based 

money laundering awareness training. The various divisions have started the process of customising 

the BankSETA training manual for relevance to their business. The training will be completed by the 

middle of 2004. 

Over the past 12 months Nedcor has been involved in a number of niche learnerships. A niche 

learnership is a learnership based on a very specific skills need in the business. The aim would be to 

build critical skills over a specific period of time with an identified group of individuals. A total of 

26 existing and 18 new employees have been involved in these learnerships, with great success and 

benefits to the business. 

Nedcor is preparing to increase the number of learners, both in niche learnerships and as part of a 

national drive in terms of its commitment to the Financial Sector Charter, whereby 200 unemployed 

learners will be taken on board in 2004. 

One of Nedcor’s key focus areas is the provision of educational assistance to support employees, 

employees’ dependants and students from disadvantaged backgrounds. 

The Education Assistance Scheme focuses on the following: 

A bursary scheme for employees wanting to embark on tertiary-level studies that are directly 

linked to their current job 

42

The external bursary scheme for disadvantaged students needing financial assistance to 

continue their studies into their second academic year 

Study loans for employees wanting to embark on tertiary-level studies that are not directly 

linked to their current job 

Study grants for employees needing financial assistance for their children’s education 

Between 2002 and 2003 Nedcor provided educational assistance to 1 685 employees to the value of 

R3 840 231 and to 45 external students to the value of R283 395. The organisation also provided 

financial assistance to 2 100 employees, representing 4 200 dependants, to the value of R3 000 070. 

Thanking and rewarding employees 

Nedcor cares for its employees, both as members of business teams and as individuals with families, 

private lives and personal aspirations. 

To sustain initiatives and ensure a successful ‘journey back to the top’ during 2004 and beyond, 

deserving management and employees must be rewarded for the hours invested and achievements 

attained during 2003. This will ensure that those who have performed well will be motivated during 2004 

and beyond to implement company initiatives with sufficient trust that good performance will be 

recognised and rewarded. 

2003 top performers 

were taken to 

Mauritius 

43


The Top Achievers Award and Top Team Award were implemented in 2003, after consultation with 

Nedcor employees regarding recognition and reward programmes in the group and careful evaluation 

of recognition processes in other companies. One hundred employees received this top accolade. 

Top team winners were 

taken to Zambia 

In 2003 Nedcor also hosted a series of Family Fun Days for employees in seven cities throughout South 

Africa. These Family Fun Days were Nedcor’s way of letting our employees and their families know that 

they are a valued part of a dynamic organisation and thanking them for their tremendous contribution 

to the group, especially during the stressful time of the merger. 

Caring for our employees 

Employee benefits 

Nedcor provides employees with a range of benefits, including retirement funds, medical-aid schemes, 

life insurance, disability cover and additional insurance benefits (such as spouse cover, a funeral fund 

and a personal accident fund). 

Employee wellbeing 

Employee wellbeing is a key component of Nedcor’s employment value proposition. 

Nedcor’s Employee Wellbeing Programme is based on the premise that one of our most valuable assets 

is our people and that ultimately the company’s performance depends on the optimal use of their 

abilities, skills and talents. The programme helps employees confront and overcome problems that may 

have a negative impact on their performance or work relations. Employees are empowered through the 

programme to take charge of their own wellbeing, thereby making a fundamental difference to them as 

individuals and to the organisation. 

Nedcor provides a number of additional employee benefits aimed at providing support and facilities 

where these may not have been available to certain people. 

44

Employee Assistance Programme 

Currently 7,2% of employees are utilising the Employee Assistance Programme. This is the highest 

utilisation rate in the three years that Nedcor has been providing the service. 

Nedcor currently recruits and trains volunteers across the organisation to be trauma debriefers. In addition 

to using these trained, non-professional volunteer counsellors, referrals are made to psychologists 

(Careways Group), when necessary. During 2003 the unit debriefed 170 employees in 26 bank robberies. 

Childcare crèches 

Nedcor provides crèche facilities for a total of 135 children at two of its large buildings in Johannesburg. 

Holsboer Fund 

The fund, which was established in 1967 on the retirement of former Managing Director, Dr Bernard 

Holsboer, has two primary purposes, namely to provide financial assistance to employees with 

excessive medical expenses and to provide affordable holiday accommodation at venues around the 

country. 

Gerry Muller Benefit Fund 

Gerry Muller, a former Chief Executive of Nedbank, established this fund in 1980. Primarily, the fund 

assists Nedcor pensioners with excessive medical expenses. A number of Nedcor employees 

contribute to the fund on a monthly basis out of concern for the elderly. 

Employee Educational Assistance Fund 

The fund provides financial assistance to employees earning less than R60 000 per annum to pay 

for childcare facilities and primary and secondary education. In 2003 an amount of R3,1 million was 

paid out. 

Peoples Bank Graduate Programme 

During 2002 Peoples Bank was awarded a grant by the BankSETA for funding a graduate programme. 

Following the approval of the programme, an advertisement was emailed to employees to encourage 

them to inform graduates of this opportunity. An overwhelming response of some 3 500 applications 

was received. 

After stringent screening and evaluation processes, 15 graduate programme students 

were selected. 

On the graduate programme, which commenced in mid-2003, the students are on contract for 

12 months. Thereafter, the successful candidates may be accommodated in the bank, should there be 

opportunities, or deployed to the industry. 

Every graduate has a senior manager as a coach who has been specifically trained for 

this purpose. 

45


Investing in people 

Nedcor was selected as the only banking group to participate in the South African ‘Investors in People’ 

pilot project. The project involves developing a South African standard for people development 

and management. 

Overall project findings in the initial assessment of Nedcor were as follows: 

Nedcor has worldclass HR processes in place, but there was a lack of implementation by line 

managers. 

There was sufficient training provided to lower-level employees to ensure competence in their jobs. 

The same was found at senior management level, but there was a lack of sufficient training for 

middle management. 

Nedcor was found to do sufficient planning for training and development and to implement these 

plans effectively. 

The majority of people understood the strategy of the organisation and the role they play in 

achieving it. 

Formal induction was found to be done effectively. 

The final assessment of the ‘new’ Nedcor took place in July/August 2003, after the merger with BoE. 

Despite the difficult circumstances surrounding the merger, four of the Nedcor business units achieved 

the specified project standards. 

They are: 

Nedbank Retail and Nedcor Wealth Management 

Peoples Bank 

Group Finance 

Group Internal Audit 

This is a remarkable achievement, given the size of the organisation and the complexity of the merger 

that took place during the 12-month period that we were allowed to achieve the project standards. 

We are now hard at work to ensure that the other businesses follow suit as soon as possible. 

Internal communications 

Nedcor invests time, money and effort in developing credible and meaningful workplace 

communication activities to improve employee interaction. We want our employees to be informed, to 

be able to contribute and to have an understanding of Nedcor’s operations and strategies. We are 

managing our corporate reputation and actively building relationships with our employees. We strive 

to ensure that all stakeholders associate Nedcor with open and honest communication. 

Employee communication is a multifaceted element of the company and occurs on a number of levels. 

The primary vehicles of mass internal communication include email, radio and video broadcasts, 

the intranet, management roadshows, internal publications and employee surveys. 

Industrial relations 

Owing to the merger, new terms and conditions of employment for the group were negotiated and 

signed off with the representative trade unions during 2003. Another major strategic focus area for the 

year was to ensure the alignment of the existing industrial relations (‘IR’) policies and procedures within 

46

the group in consultation with the trade unions. A new set of aligned disciplinary, grievance 

and retrenchment procedures was negotiated, finalised and introduced for the group. 

The unit was also involved in the design and development of a state-of-the-art IR training programme 

for the group that meets the skills development requirements and that is National Qualifications 

Framework (‘NQF’) compliant. 

Ongoing trade union consultations were arranged and chaired by the unit for the various 

businesses in respect of the restructure of these businesses and outsourcing strategies. 

During the year there was a significant increase in disciplinary and operationalrequirement 

cases being referred to the CCMA for resolution, which has required 

the intervention of the unit. Notwithstanding this, the group has not experienced 

any loss of people hours/people days due to industrial action throughout the 

merger and restructuring process. Furthermore, there have not been any 

unresolved unfair labour practice disputes. 

The enactment of two pieces of legislation, namely the Financial Advisory and Intermediate 

Services Act (‘FAIS’) and the Financial Intelligence Centre Act (‘FICA’), required the direct 

involvement of the unit to analyse their impact on the business and to ensure the compliance of our 

internal policies and procedures with these acts. These pieces of legislation have a primary impact on 

the employer and a secondary impact on individual employees. 

Handling the BoE integration 

The Human Resource Integration Project team was formed to ensure that fair and equitable procedures 

would be used in all initiatives that impacted on employees as a result of the Nedcor-BoE merger. 

During 2003 a number of the projects, such as talent retention, incentives and change management, 

were successfully completed and given to the business to continue to manage into the future. 

All the payrolls have been migrated onto the Nedcor payroll platform, and full integration is expected 

in 2004, allowing for comprehensive management information at the touch of a button. 

As from 1 October 2003 all fund contributions, from employees across the new Nedcor Group, were 

made to the Nedcor retirement funds. The remaining 10 legacy funds are now being wound down and, 

once this is complete, the investments will be transferred to the Nedcor retirement funds. 

Communication played a vital role in supporting all the HR initiatives on the merger. Attention was given 

to reaching all employees through a variety of communication channels to ensure maximum coverage 

of the issues that would affect them. 

Due to the entire business being restructured and in the spirit of fairness and transparency, in excess 

of 13 640 jobs were advertised internally during 2003 and more than 62 282 job applications were 

received on the electronic ‘Jobs on Offer’ system. These applications were handled by the HR support 

employees, who followed stringent selection procedures to ensure that the correct applicants were 

selected for the available positions. 

47


Handling the BoE integration continued 

EDDC programme 

Internally placed 39,0% 

Voluntary retrenchment 6,0% 

Early retirement 4,0% 

Retrenchment 35,0% 

Other 1,0% 

In process 15,0% 

An Employee Development and Deployment Centre 

(‘EDDC’) was created to assist employees who were 

unsuccessful in securing a position in the new group. 

Focusing on redeployment, retraining, outplacement, 

counselling and job creation the EDDC assisted 

approximately 600 employees during the course of 2003. 

Executive health 

There is a growing awareness that the financial health of an organisation is largely dependent on the 

mental and physical wellbeing of its employees. Now more than ever, managerial and executive 

employees are exposed to stresses and challenges. The idea behind having an executive health policy 

is to optimise the investment in key employees. This is achieved by improving the wellbeing and 

productivity of key employees through the identification of risk factors for disease and the modification 

of harmful lifestyle habits. 

Occupational health and safety 

Nedcor is committed to ensuring the highest health and safety standards and complies with all aspects 

of the Occupational Health and Safety Regulations as a minimum standard. 

These aspects are managed by Nedcor Forensic and Protection Services. Altogether 1 482 employees 

received health and safety training during 2003. No environmental incidents occurred. Only 16 minor 

injuries and zero serious injuries were reported during 2003. 

HIV/Aids programme 

Nedcor recognises the gravity of HIV/Aids and the impact it has on the South African workplace as well 

as the economic and social lives of our employees. 

The group is committed to addressing HIV/Aids in a supportive and non-discriminatory manner, with the 

informed support and cooperation of all employees. With this in mind, Nedcor has developed an 

HIV/Aids policy to assist management and employees to deal with HIV/Aids issues in the workplace. 

48

Nedcor’s HIV/Aids policy ensures fairness, consistency and compliance in respect of applicable 

legislation, while creating a supportive working environment where employees can receive assistance 

and feel free to disclose their status. The policy guarantees equal regard for all employees and ensures 

that those who are HIV positive are treated in a humane, life-affirming and respectful manner. 

Employees who become ill with Aids are treated in the same way as all other employees with a lifethreatening 

illness in terms of access to employee benefits. 

The company provides appropriate education and training programmes for all employees as well as 

counselling and support for HIV-positive employees and their families. HIV-positive employees can 

register with the Nedcor Medical Aid HIV/Aids Management Programme to manage their illness and 

medical-aid benefits appropriately. When employees can no longer continue with their work, 

they are eligible for disability benefits. 

During 2003 the banking industry commissioned an independent organisation, HIV 

Management Solutions of the Wits Health Consortium, to conduct an HIV/Aids prevalence 

survey. A nationwide sample of each participating bank, chosen to give representative data, 

was selected to determine the prevalence of HIV infection among employees at all levels. The 

banks have collected basic demographic data so that they can view the trends of HIV 

prevalence in the industry to know their costs and to target their education and support 

programmes accordingly. 

The survey, completed in September 2003 anonymously and voluntarily, 

tested 29 490 bank employees at these banks. Nedcor collected 97% of the 

required sample (a total of 6 721 employees voluntarily participated in the survey). The participating 

banks have agreed that only the banking industry’s statistics as a whole will be released to their 

employees or the public at large. Chief Executives will receive their banks’ statistics, but not the 

individual statistics of the other banks. The necessary confidentiality agreements in this regard have 

been signed. 

The prevalence rate for the banking industry is currently 3,4%. Although the prevalence rate is low, 

compared with national statistics, this should not allow for complacency. Trends to date have shown 

that HIV prevalence is growing at an unforeseen rate. Nedcor has an opportunity to conduct workplace 

programmes to ensure that the prevalence rate does not increase at the pace it has in certain sectors 

and populations in South Africa. 

Nedcor will use this data to cost the impact of the pandemic on the business and implement measures 

to minimise the risks it poses. 

HIV prevalence reports provide us with an opportunity to revisit our HIV/Aids policy and implementation 

programme. Planning is already under way to identify ways of enhancing the processes already in 

place. The focus will be on targeted education and training programmes. 

49


Nedcor believes that education, training and counselling of employees constitute the most effective 

means of preventing the spread of HIV/Aids and of dealing with its effects in the workplace. Nedcor 

provides: 

appropriate education and training programmes for employees on a variety of HIV/Aids issues 

counselling and support to HIV-positive employees and their family members within the framework 

of the company’s Employee Assistance Programme 

From January to October 2003, a total of 748 managers were trained in dealing with HIV/Aids in the 

workplace. Currently 1 493 managers have attended the one-day managers’ workshop and 88 peer 

educators have been trained, with 23 attending an advanced workshop. 

There has also been close interaction between the company’s implementation of the HIV/Aids policy 

and the Nedcor Foundation’s work in the field of HIV/Aids. 

How our employees give back 

It is part of the culture of the group that employees often take part in upliftment and developmental 

work. Indeed, much of the work of the Nedcor Foundation would not be possible without active and 

voluntary employee involvement. 

Nedcor Team Challenge 2003 

Team Challenge 2003 was a community-focused initiative that enabled employees and their friends and 

families to become actively involved in a community or environmental project and make a real and 

lasting difference in our country. Nedcor fully supports such endeavours as part of encouraging a 

culture of employee involvement and caring. The challenge ran for eight months, from 11 June 2003 to 

15 February 2004. 

Team Challenge 2003 was not an individual effort. Only teams were allowed to get involved. The teams 

consisted of between five and 20 employees as core members, and family and friends were also involved 

as ancillary members. Entry criteria also required cross-departmental/divisional participation. One of the 

objectives of this project was to break down barriers and to encourage cross-company teamwork and 

communication. 

It is important to emphasise that the team challenge initiative is about our employees giving their time 

and effort, not giving money. It is not a fundraising exercise. This is in recognition of the fact that many 

community projects need people to invest some time and effort – for example, by spending time with 

HIV-positive babies, the aged and the sick. 

Judges evaluate the level of achievement of the team’s objectives and the benefits it brings in accordance 

with each team’s original proposal. Community feedback also plays a role in the judging process. 

The individuals in the team do not receive any financial reward, but the Nedcor Foundation donates a 

total amount of R100 000 to the three winning projects. 

50

Participation in the initiative benefits the community or environment, Nedcor and, most importantly, 

every person contributing their time. 

Community benefits: 

help build and empower the community; 

encourage entrepreneurship and self-sufficiency; 

contribute to economic regeneration; and 

help reduce public expenditure on community projects. 

Team members benefit by experiencing the personal rewards associated with involvement in a 

community or charitable project – rewards such as being self-motivated; growing and developing by 

experiencing different cultures and communities; promoting cross-business interaction within Nedcor; 

and having the opportunity to raise awareness of social responsibility both within the organisation and 

among our clients and South African communities. 

The benefits to Nedcor include: 

increasing employee involvement and providing the group with exposure in 

local communities; 

demonstrating our commitment to social inclusion; and 

supporting the government’s private-public partnership initiative and the 

recent initiative to get the public to volunteer for community service. 

There were 117 teams participating in 2003, involving almost 2 000 employees 

and more than 300 of their family members and friends. 

The following are examples of the activities undertaken: 

The Accountable4Kids team – committed to helping to meet the needs of the orphans at the Palm 

Tree Care Centre in Durban, they have done sterling work in obtaining food, clothing and other 

necessities for the children. So far the team has organised a golf day to raise funds and has 

orchestrated numerous donations including cash, paint, a monthly Pick ’n Pay hamper for the centre, 

transport for the November 2003 camp and a book donation for each child from Exclusive Books. This 

is an ongoing project and the team has numerous activities scheduled for 2004. 

The Private Bank team – involved with a horse-care unit in KwaZulu-Natal, they have organised 

numerous fundraising activities. A nomination for the Local Hero donation of R10 000 assisted them in 

buying a new horsebox used to rescue abandoned and abused horses in the rural areas. They were 

also instrumental in having 30 bales of sawdust donated for stable bedding. In addition, they regularly 

give of their time to clean out the stables, clean the grooming kits and sterilise food and water troughs 

to free up the Horse Unit employees to perform tasks that require their expertise. The Jockey Academy 

students, in conjunction with the Team Challengers, also collected money for the unit. The unit relies 

on community funding – they do not receive government grants. 

51


Best Friends team – based in Port Elizabeth, this team is involved in rescuing, cleaning and caring for 

abused animals until new homes are found for them. Their numerous fundraising activities included the 

production of a ‘Calendar Girls’-style calendar and a carols-by-candlelight evening as well as cake and 

boot sales. The funds have been used to purchase land on which to build a sanctuary for the animals 

while they are waiting to be given a new home. The Best Friends team members staff the sanctuary. 

They have also done a great deal of awareness work in the community with regard to pet care, pet 

sterilisation and pet protection against the dangers of fireworks. 

Just Do It team – comprising 120 Nedcor Wealth Management employees. They volunteer their time 

to Habitat for Humanity. This worthy cause brings together volunteers to build houses in communities 

where housing is a desperate need. The intended homeowner and the volunteers work side-by-side to 

build the houses, using materials donated by the Habitat for Humanity partners. The Just Do It team 

has built two homes in the Khayelitsha area. 

Nedcor employee teams 

give of themselves and 

their time 

52

Local Hero Programme 

‘Not he who has much is rich, but he who gives much.’ Erich Fromm 

While most of us spend our time struggling to juggle the responsibilities of work and family life, there 

are some very special people in Nedcor who manage to put a great amount of time and effort into 

helping others. We call them our ‘local heroes’. 

The Nedcor Local Hero Programme was launched in the Retail Banking Division in 2002, with the aim 

of recognising employees in the group who are involved in volunteer work and encouraging them to 

apply for a donation to their community projects. The idea was that if others in Nedcor could hear about 

the good work being done, they would be inspired to get involved in their own communities. 

In 2004 the Nedcor Local Hero Programme will have R1 million available for donations to community 

organisations in which our employees volunteer. The donations are sponsored by the Nedcor 

Foundation. 

Local Hero success stories 

Cheryl Bernstein – Wings in Need 

In 1984 Cheryl saved and nursed a newborn but dying mousebird, despite having never cared for a bird 

before. This small act of kindness reached the ears of the local vets, who started bringing her the sick 

and injured birds they found on their way home. As her reputation grew, the SPCA began to call her for 

advice on birds as well as referrals, and people began arriving at her door with birds at all hours of the 

day and night. Cheryl realised that although there are avian vets, they are reluctant to help a wild bird 

in need. Therefore she decided to start her own rehabilitation centre for the rescue and care of wild 

birds, called ‘Wings in Need’. 

Cheryl used part of an endowment policy to purchase a couple of aviaries. She also converted her 

diningroom into a hospital and she employs a full-time caregiver. Although the local vets provide her with 

medical supplies, she is dependent on donations and her salary for the survival of the rehabilitation centre. 

Cheryl spent the donation of R10 000 from the Local Hero Programme on upgrading the aviaries by 

fitting proper winter covers to the sides as well as purchasing hot lamps, hospital cages and a medical 

store chest and incubator. As a result of the donation she is now able to offer superior care to the birds 

in a well-equipped, heated and tiled sterile hospital environment. 

53


Sharlene Herandien – Better Life Family and Youth Centre 

For the past two years Sharlene has been involved with the Better Life Family and Youth Centre in 

Eldorado Park. The centre believes in community upliftment through empowerment and aims to equip 

people with essential skills through training and development programmes. In addition, the centre 

reaches people through the community-feeding schemes, preschool projects, afternoon programmes for 

school children and campaigns catering for senior citizens. The centre also has a shelter called the ‘Village 

of Hope’, which provides a haven for abused children and battered women. 

Sharlene spends much of her free time over weekends working at the Better Life Centre, where she 

assists with the training and development programmes and serves on the board. She says that the heartwrenching 

stories of abused children are made more bearable when you see the smiles on the children’s 

faces again and teach them that people can be trusted. 

Smiles and trust are the 

greatest rewards 

The R10 000 donation from the Local Hero Programme was used to purchase furniture for the Village of 

Hope, thereby turning the house into a home. 

Belinda Brill – Give what you’ve got 

The main objective of the Zandspruit Community Project, named ‘Give what you’ve got’, is to give 

underprivileged artists the opportunity to develop their talent. Every Saturday potential artists are 

collected from the Zandspruit Community Centre and taken to Ronzwa Art School for tutoring. These 

artists are also empowered to go back to their communities and teach art to younger children and other 

budding artists. 

Belinda joined the project in October 2002. Being an artist herself, she wanted to provide other people 

with the opportunity of deriving satisfaction from art. Belinda says, ‘I know the importance of developing 

a talent – you can be given any number of talents, but if they are not developed, they will be lost to you’. 

The students were reliant on cut-off canvas and discarded paint as well as materials donated by the 

Ronzwa Art School. Belinda used the R10 000 donation from the Local Hero Programme to provide the 

students with proper paint and art materials and frame some students’ artwork. 

54

Financial Sector 

Charter 

Nedcor is committed to achieving the ideals 

of transformation and empowerment as set 

out in the Financial Sector Charter.


and BEE initiatives 

The transformation of South Africa’s economy from one dominated by a minority to one in which all 

citizens have a real stake is a philosophy with which Nedcor is intimately involved and welcomes. 

During October 2003 the Financial Sector Charter (‘the charter’) was released to the public as a 

voluntary transformation charter aimed at implementing BEE in an integrated manner within the 

sector. 

The charter is a roadmap, developed by the stakeholders in financial services for the financial 

sector, that sets clear targets for the implementation of a broad-based black economic 

empowerment (BEE) strategy to transform the economy. Government welcomed the release 

of the charter as an important step in the process of redressing racially based income and 

social inequalities in the country. 

Nedcor is fully committed to achieving the ideals of transformation and implementing BEE initiatives 

under the charter within acceptable risk parameters, and has taken a number of steps to ensure this. 

In January 2004, Nolitha Fakude, the Non-executive President of the Black Management Forum, 

was appointed to the Group Executive Committee to coordinate Nedcor’s implementation of and 

compliance with the charter. 

In June 2003 a dedicated committee consisting of representatives from all business units, the Black 

Economic Empowerment Policy Committee (‘BEEPCO’), was formed to assist with the 

development and management of the integrated BEE strategy. 

In February 2004 BEEPCO established a set of guiding principles for Nedcor’s participation in 

transformation (see the end of this section). 

The Black Economic Empowerment Forum has been established to look specifically at deal 

opportunities in BEE financing. 

The creation of a BEE unit within Nedbank Corporate was undertaken to assist Nedcor in: 

increasing its visibility among empowerment stakeholders; 

creating a focal point for all empowerment financing activities within the organisation; and 

pursuing a coordinated approach to BEE financing transactions. 

Our philosophy is to back the people we believe in, and we differentiate ourselves through: 

strengthening of existing BEE relationships throughout the group; 

creating new relationships among established and new BEE players in the market; and 

supporting identified emerging BEE players. 

It is the intention that the unit will work more closely with other units, with a deal origination focus. 

Employees will need to be trained on all products offered by the business to enable cross-selling to clients. 

Where necessary, dedicated employees will be appointed to spend more time with identified BEE clients. 

56

Nedcor has been a forerunner in empowerment activity in the banking sector and is actively 

involved in advancing BEE on a number of fronts, including: 

The Nedcor Foundation has over the years been responsive to the work of the Black Economic 

Empowerment Commission. 

Nedcor has been a prominent supporter of the Black Management Forum, an organisation for 

the advancement of private-sector transformation. 

The group has also been a longstanding supporter of the South African Graduates 

Development Association, a practical avenue for promoting managerial and other talent among 

new African entrants to the formal sector. 

Nedcor was involved at the inception of the Black Business Council (‘BBC’) and is a key 

financial supporter. 

The funding of the Nedcor Foundation has been based on a percentage of after-tax profits, 

which is double the target set in the charter. 

Through active participation in external bodies the group has been recognised for its role in this critical 

element of transformation and has received numerous awards: 

Outstanding Financier for Small Business awarded by the Black Business Forum. 

Peoples Bank was recognised as South Africa’s Progressive Company of the Year by the Black 

Management Forum in 2003. 

Peoples Bank received an award in 2002 for being the Best Empowered Transaction Deal 

(from BusinessMap) along with the Empowered Company of the Year award accorded by the 

Enterprise Development Forum, the Black Business Forum and the Black Business Executive Circle. 

Direct and indirect Nedcor shareholding 

Nedcor is committed to realigning the existing shareholding to include a meaningful proportion of black 

shareholders that will also include employees and management. Direct ownership includes: 

Peoples Bank – Brimstone Consortium and the Progressive African Investment Group acquired 

30% of Peoples Bank in a R570 million deal. 

Quaystone Asset Management – BoE Asset Management sold to AKA consortium. 

Nedbank Capital seed-funded and took a 45% equity stake in a startup corporate finance advisory 

business – Tirelo Capital (Pty) Limited. 

Laetoli – Edward Nathan & Friedland acquired a 40% stake in Laetoli, a black-empowered strategic 

consulting firm. 

Indirect BEE ownership of Nedcor shares is estimated at between 12,8% and 14,9%. 

57


and BEE initiatives continued 

Equity and ownership 

Plans are under way to finalise the form and substance of Nedcor’s equity partnerships, and this 

process should be completed by the second half of 2004. 

Empowerment financing 

Nedbank Corporate and Nedbank Capital have been active over many years in facilitating BEE 

financing transactions involving ownership transfer to black interest groups. They have been active in 

all aspects of advisory and legal services, debt financing, equity raising, and working capital support. 

Nedbank Corporate and Nedbank Capital provided advisory services, and in some cases funding, on 

the following key BEE transactions during 2003: 

Total South Africa (Pty) Limited/Tosaco (Pty) Limited; 

Tsogo Sun Holdings (Pty) Limited; 

The Bidvest Group Limited/Dinatia Investments Holdings (Pty) Limited; 

Gold Fields Limited/Mvelaphanda Strategic Investments (Pty) Limited; 

Sekunjalo Investments Limited Group; and 

African Rainbow Minerals Gold Limited. 

Access to financial services 

This refers to the provision of first-order banking products to individuals who are defined as previously 

disadvantaged. While Nedcor has an existing presence in this market through Peoples Bank, it is 

finalising research on its entire client base to identify where new products and services may be offered. 

This will contribute to reducing the numbers of South Africans without access to financial products 

and services. 

Nedcor is also actively participating in collaborative efforts with the other major banks for the provision 

of first-order banking services and low-income housing. Nedcor believes that collaboration with privateand 

public-sector institutions is vital to success in this area. 

The group has recently established a unit within Business Banking focused on increasing its financial 

support to small and medium enterprises. 

58

BEE procurement 

Nedcor is committed to procuring an increasing amount of its total purchases of goods and services 

from black companies. 

BEE procurement gained momentum in 2003 with several highlights being achieved: 

BEE procurement policy finalised in anticipation of the charter 

Supplier development programmes initiated 

The amount of BEE spend increased 

The number of BEE accredited suppliers increased 

BEE procurement integrated into the group procurement processes 

The procurement policy and programme are being reviewed to ensure that goals are set in line with the 

charter’s targets. 

In addition, a supplier development programme has been established with the intention of creating a 

conducive environment for BEE suppliers to gain access to our procurement spend. The implementation 

of this policy and the development programmes will be accelerated in 2004 in line with the 

requirements of the charter. 

Nedcor’s spend figures increased from R67,7 million in 2002 to R215,6 million in 2003, which means a 

218% increase in the quantum of spend with BEE suppliers. Admittedly, the figures of 2002 did not 

reflect the new Nedcor (merged with BoE), whereas those of 2003 do. In terms of the charter, it will be 

seen that BEE spend over qualifying spend rose from 6,7% in 2002 to 8,8% in 2003. 

The charter sets a target of 50% BEE spend by 2008, which means that in 2004 Nedcor will need to 

accelerate its BEE spend to between 15% and 20% in order to meet the scorecard requirements. 

Nedcor has seen an increase in the number of BEE accredited suppliers and will be looking to establish 

a credible base of diverse procurement opportunities for these suppliers. 

Apart from a focus on BEE in procurement, Nedcor is also committed to working with suppliers that 

promote the entire spectrum of social and environmental responsibility in their operations. 

Finally, Nedcor believes in a holistic BEE process and will be looking beyond the charter in developing 

and integrating BEE procurement into its processes. 

Human resources development 

Detailed information on Nedcor’s employment equity position, gender split, skills development, 

learnership initiatives, and talent management and development can be found in the employee matters 

section on page 39. 

59


and BEE initiatives continued 

Corporate social investment 

The Nedcor Foundation’s focus area is the upliftment of society’s poorest or most disadvantaged 

sectors through training and education, job creation, leadership development and welfare initiatives, 

thus falling squarely into the context of black economic empowerment. 

Projects with the focus on youth, women and people with disabilities are strongly favoured. 

More information on these activities can be found in the following section on corporate social 

investment. 

Nedcor’s guiding principles on the Financial Sector Charter 

Leadership: Nedcor is committed to playing a leadership role in the development and 

implementation of the charter. 

Going beyond: We will embrace the spirit of the charter and seek to go beyond the 

targets and mere compliance. 

Balance: Nedcor will strive to achieve a balance across the various charter themes. 

Accountability: Development of programmes for each theme will be the responsibility of 

identified senior executives, who are the experts in these areas, in consultation with 

representatives from the business units. 

BEE strategies: Each business unit executive will ensure that his/her business has a 

comprehensive strategy on BEE and charter implementation. 

Education: Education through communication and training (internally and externally) is 

critical to our success. 

Strategic Recovery Programme: The broader Nedcor Strategic Recovery Programme 

must take into account our charter obligations. 

New business: Nedcor will leverage the charter with a view to achieving broader 

business growth. We must look for new business opportunities that arise out of the 

charter. 

Culture: The charter process must be linked to the organisation’s commitment to culture 

change and way of doing business. 

Measurement: Measurement of all our charter activities is essential. We must also find 

ways of measuring the charter’s impact on our business strategies. 

60

Corporate social 

investment 

The Nedcor Foundation has invested around 

R130 million in the past four years and 

funded over 350 projects during the period 

under review.

The community – corporate social 

investment 

Nedcor is committed to the communities it serves and aims to strengthen both the economy and its 

surrounding society through projects that lead to job creation, improved education, welfare and health 

upliftment and other community development programmes. 

The majority of Nedcor’s corporate social investment (‘CSI’) activities are channelled through the 

Nedcor Foundation (‘the Foundation’), the custodian of the group’s external CSI programme. 

The Foundation is funded through a contribution from Nedcor’s net profit after tax. This previously 

amounted to 1,2%, but Nedcor committed R42 million during 2003 to the Foundation. 

The Foundation has invested around R130 million in the past four years (this excludes funding 

from the BoE Foundation and The Green, Sports and Arts & Culture Trusts). 

The Foundation also relies on an increasing network of employee volunteers, cooperation with 

other donor organisations and partnerships with its client base. 

The Foundation’s activities are national. 

The Foundation funded over 350 projects during the period under review. 

Nedcor Foundation governance 

While the Foundation management has limited and necessary discretion in the funding of projects, 

decisions on funding of more significant amounts are made in the first instance by the Foundation’s 

Management Committee (‘Manco’). 

The Manco reports to a committee of the board, currently the Social and Environment Committee. 

This committee also meets quarterly and decides on Foundation project spending of over R1 million, 

after the Manco has reviewed and recommended such projects. The committee regularly reports to the 

Nedcor Board. 

As a line function the Foundation is subject to annual internal auditing. It is also audited annually by the 

external auditors. The Foundation insists on strict auditing, reporting and governance standards from 

projects and organisations it partners or funds. 

Programmes run by the Foundation 

Programmes in education 35,0% 

Job creation and leadership development 20,0% 

Welfare and health matters 20,0% 

Other 10,0% 

Administration 10,0% 

Communication and marketing 5,0% 

62

Areas of focus 

The Foundation acts to position Nedcor as a ‘thinking bank’ that considers the future of South Africa 

and its business environment. It is in the business of adding value to that environment and enhancing 

positive value systems in society. Programmes are selected that promote self-sufficiency and human 

dignity, enhance leadership in various fields or contribute to a democratic society. The Foundation 

increasingly favours projects that have a focus on out-of-school/out-of-work youth, women and people 

with disabilities. Where appropriate, projects are expected to contain elements addressing HIV/Aids 

issues. 

Training and education 

The Foundation supports projects relating to training and education concentrating on 

teaching English, Mathematics, Science and Technology. In addition, projects that offer 

literacy and vocational skills training are also favoured. This is done on the understanding 

that one-size-fits-all education is unsuitable to South Africa because of greatly differing levels 

of skills development and economic needs. 

Job creation 

Much of the Foundation’s activities aim at strengthening both the economy and society 

through projects that lead to job creation. It does this because it makes good business 

sense. It also undertakes this work with due regard to the bank’s various social obligations, 

including the obligations contained in the Financial Sector Charter. 

Vital to the long-term sustainability of the group’s business, job creation is also one of the 

country’s most pressing needs. Projects supported include the provision of physical 

infrastructure for housing small businesses; the erection of factory and production facilities; the 

introduction of interventions to upgrade business skills; the supplying of equipment; and the provision 

of advice to enhance business sustainability. 

Leadership development 

The Foundation gears much of its work to broader community enhancement in the form of leadership 

development and the expansion of choice through education. 

Wide-ranging mentorship programmes are supported with a view to developing leadership potential 

among historically disadvantaged individuals, which is in line with the group’s support for a broadranging 

transformation of the nature and ownership of the economy. Similarly, an economy-wide 

programme of leadership development is undertaken in support of organisations committed to 

furthering black-empowerment objectives. 

63

Corporate social investment continued 

Welfare 

The Foundation considers it desirable that projects funded are geared to becoming financially 

sustainable. But the Foundation recognises that many in the welfare field are not in a position to be 

financially self-sufficient – a situation that is unlikely to change. That is the very nature of much of the 

welfare activity in South Africa. For this reason the Foundation will continue to support efforts at 

alleviating the position of society’s least well-off. 

Implementation 

The Foundation’s programmes are implemented with the assistance of non-governmental 

organisations, community-based organisations, schools, tertiary institutions, church and religious 

organisations, and often the actions of employee volunteers, cooperation with other donor 

organisations and collaborative partnerships with Nedcor’s client base. 

An example of this approach is the Nedcor Alexandra Development Programme. A R10 million 

investment over four years enables assistance to the five high schools of Alexandra from Protec 

(providing extra classes in Maths, Science, English and Technology), Radmaste (supplying miniature 

science kits to pupils in grades 8 to 10), Equip (improving the human resources of school governing 

bodies and teachers) and St Mary’s Outreach Programme (bussing children in grades 8 to 10 to daily 

extra classes at Waverley’s prestigious St Mary’s School). Other Alexandra interventions are aimed 

at alleviating the plight of orphaned and abandoned children (Lerato Love Home) and upgrading 

the living conditions of the area’s destitute senior citizens through the work of the Jewish initiative, 

Tikkun. 

The Foundation works closely with government and the public sector at various levels, where 

appropriate. For example, Nedcor has, in cooperation with the Department of Justice, helped in the 

establishment of Peoples Family Law Centres in Cape Town and Johannesburg. These centres provide 

legal advice and assistance to often-indigent clientele on matters regarding family law; such as 

domestic violence, maintenance issues and custodial affairs. 

This approach to achieving Nedcor’s CSI objectives is based on a combination of strengths, resources 

and intellectual capital from within the group as well as further afield. 

The Foundation’s projects, when branded, are branded Nedcor, Nedbank or Peoples Bank. 

Employee voluntarism, which is strongly supported by the Foundation, is discussed more fully on page 50. 

64

BoE Foundation projects 

Projects supported by the BoE Foundation included expanding financial literacy for both adults and 

children, promoting entrepreneurship, supporting low-cost housing and providing bursaries to students 

showing promise in fields of study relating to finance. 

Distributions by way of the non-discretionary client trusts totalled R9 179 767. 

NBS Centenary Foundation 

During 2003 the NBS Centenary Foundation continued its support of the Natal Early Learning 

Resource Centre with an investment of R564 000 in the preschool centres that NBS helped to build. 

Following the acquisition of BoE, the future operation of the NBS Centenary Foundation will be 

reviewed. 

Acknowledgements and recognition 

Trialogue recognition 

Non-profit organisations (‘NPOs’) comprise the core of the Foundation’s client base. In its annual 

reputational survey released at the end of 2003, Cape Town-based analytical group Trialogue noted the 

following: 

NPOs rated Nedcor as the financial-sector company with ‘the strongest contribution to development’. 

Nedcor was seen as the country’s second-best corporate grantmaker, coming in after Anglo 

American. 

Trialogue commented on the Foundation: 

‘Positive feedback alluded to the group’s ‘generosity’ and ‘concern’ for projects; sustainable and 

ongoing support of projects; good follow-up and site inspections; capacity building; and sharing of 

resources. Responding NPOs highlighted the Foundation’s sensitivity to and understanding of the 

developmental sector and its needs. Special reference was made to the Foundation’s ‘showing a much 

needed understanding of the employee requirements of non-government organisations, which is a 

common priority concern for many non-profit organisations.’ 

Other results noted by Trialogue included: 

NPOs rated Nedcor second (after Anglo American) out of 46 companies as ‘most widely recognised 

for CSI activities’. 

Nedcor was rated third out of 50 companies for ‘most hands-on approach to CSI’ by NPOs. 

Among companies with CSI programmes rated ‘most closely aligned to business’, NPOs rated 

Nedcor fifth out of 43 companies. 

Other recognition 

Nedbank was named ‘industry leader’ by Professional Management Review (‘PMR’) for 

Environmental Care and received ‘roll of honour’ mentions for black economic empowerment, 

job creation and training, and social upliftment. These occurred in the context of the annual 

PMR corporate care awards. 

The Foundation was named a finalist in the annual Business Day/Business and Arts SA Awards 

for its primary support of the Steel Drum Foundation. 

65


Sensitivities of marketing CSI 

The Foundation aims to make its activities more widely known in ways that enhance its effectiveness. 

Greater awareness of Nedcor’s CSI work can have the positive effect of attracting support for CSI 

projects from other funders, thereby lessening any dependence on single-source funding. It can 

therefore lower the risk profile of project funding, both for funder and beneficiary. 

But this generation of awareness needs to be done without compromising the integrity and sincerity 

of the Foundation’s work. The Foundation’s public communications are based on the following: 

The beneficiaries of our programmes are people who have been disadvantaged due to racial and 

other forms of oppression. 

The Foundation approaches the beneficiaries of its programmes with an attitude of believing and 

investing in them. Beneficiaries of the Foundation work are worthy and deserve to be approached 

with dignity. 

The Foundation’s communications have to empower and liberate beneficiaries of programmes and 

projects by highlighting their personal triumphs over adversity. This is done to raise awareness 

about predicaments in which people find themselves and to attract greater support for them. 

Nedcor Foundation projects 

The following are selected examples of projects considered particularly successful by the 

Foundation: 

Retina South Africa 

The Foundation provides support to Retina South Africa by way of a project to ensure that all South 

Africans affected by retinal degeneration can be genetically ‘mapped’ and so take part in clinical trials 

designed to reverse partially or completely the effects of increasing blindness. 

The project forms part of groundbreaking research being conducted by the University of Cape Town, 

as part of the International Genome Project, in collaboration with the University of the Witwatersrand. 

This involvement by Nedcor follows the Foundation’s extensive work with organisations caring for the 

blind over many years. Such organisations include the Natal Society for the Blind, Soweto Council for 

the Blind and the Athlone School for the Blind. 

66

Zenzele Training and Development 

Based in Khayelitsha, this project provides training to over 3 500 unskilled, unemployed people so that 

they are either able to seek employment in the formal economic sector, or can become self-employed. 

Woodwork, welding and sewing are taught as core courses, along with ceramics and tourism on an ad 

hoc basis. Business skills form an integral part of all courses. Zenzele (meaning ‘do it yourself’ in Xhosa) 

now has its own clothing line and has expanded into a newly erected factory, partly paid for by the 

Foundation. Nedcor has also part purchased the land on which the project is being housed for Zenzele. 

McCord Hospital’s Sinikithemba HIV/Aids Christian Care Centre 

Among various initiatives that address the consequences of the HIV/Aids scourge, the projects Nedcor 

prefers to concentrate on are those that deal directly with victims of the epidemic. One example of this 

approach is to be found in Durban’s McCord Hospital’s Sinikithemba project. A Zulu word meaning 

‘place of hope’, Sinikithemba provides pre- and post-HIV-testing counselling and medical services for 

HIV-positive women. These services include the provision of appropriate medication dispensed under 

strict control. 

Almost 90% of people visiting the Sinikithemba clinic are extremely poor, often living in absolute 

desperation. Having been diagnosed HIV positive, these women participate in the project’s incomegenerating 

scheme, being trained to use their traditional beading skills to create simple items of 

jewellery, lapel pins and the like. 

Paid for by Nedcor, the project now has fully equipped workshop facilities that house the incomegenerating 

project, host customers, display crafts and manage the project’s activities. These facilities 

are located at Durban’s historic Ridge House, near the hospital. 

Institute of Natural Resources 

The Foundation is assisting the Institute of Natural Resources, linked to the University of KwaZulu- 

Natal, with its job creation and environment conservation programme at the Mtentu Estuary on the Wild 

Coast. This assistance forms part of Nedcor’s broader involvement in sustainable environmentalism. 

The estuary project enjoys local-community involvement in the eradication of invasive foreign flora, 

along with income-generating projects on the exploitation of ecotourism. These efforts complement 

weaving projects that provide previously unemployed women with work and also a market (through the 

bank) for their products. 

67


Vinpro – land reform project 

While South Africa has established a niche for itself in the international wine industry, this part of the 

agricultural sector is under pressure from, among other things, a loss of indepth institutional knowledge 

of the industry. This comes partly from increasing numbers of children of local wine producers turning 

to careers other than farming. The effects of this on the industry and consequently on farmworkers and 

their families could be disastrous. 

In addition to its support for the Nedbank Cape Winemakers Guild, which undertakes educational 

upliftment programmes for the children of Boland farmworkers, the Foundation has invested 

substantially in a study by Vinpro, the SA wine producers’ representative and service organisation, into 

sensible and economically viable land ownership reform in the wine industry. 

Steel Drum Foundation 

Between 2 500 and 3 000 children benefit from the work of the KwaZulu-Natal-based Steel Drum 

Foundation, which started in 1995 as a partnership between the Natal Philharmonic Orchestra and the 

Playhouse Company. 

The pleasure of playing in percussion bands is used to teach children a value system that includes 

discipline, teamwork, honesty and self-worth. The programme also assists children with trauma-related 

learning disabilities, common in areas once embroiled in politically-related violence. In addition to the 

development of fine motor skills and self-confidence, the programme uses English and a numeric 

system to teach music, resulting in better performance at school in these fields. 

Sparrow Educational Trust 

Founded in 1990, the Sparrow Educational Trust provides accessible, specialised education to people 

with learning difficulties, educational backlogs and minimal brain dysfunction, catering for the needs of 

over 900 students annually. This is done through a primary and a secondary school as well as through 

a skills centre. 

The centre takes on students for a two-year course that begins the process of educational rehabilitation 

through the teaching of literacy and numeracy. It then adds practical training in carpentry, sewing, 

catering, hairdressing and welding as well as life and business skills and computer proficiency. 

Students enrolling at the Sparrow Skills Centre tend to have a background of abject poverty and low 

self-esteem. They leave able to be self-sufficient, income-generating contributors to the national 

economy and to social stability. 

68

Research into graduates of the vocational training programmes (which carry IEB accreditation) at 

Sparrow shows that 55% of them are able to find jobs within three months of completing the IR courses. 

A further 40% are accepted into technical colleges and further educational and training facilities. 

READ Educational Trust 

READ (Read, Educate and Develop) was formed in 1979 in response to concerns about the lack of 

reading and library facilities in black townships. It operates as a national inservice and preservice 

teacher-training organisation in 15 regions with offices in most major centres. READ also produces 

relevant materials for both teachers and pupils. 

Nedcor’s support, through Peoples Bank, extends to the annual Readathon literacy promotion 

campaign. This programme reaches over 26 000 schools with an estimated 330 000 teachers and 

13 million pupils. It extends even further through libraries and local-community centres countrywide. 

School and community programmes are arranged, using two annual mailings of promotional material. 

Teachers in all provinces are also assisted in the planning of events and in the extension of these events 

into outreach projects. Nedcor is the sole funder of the Readathon campaign. 


Kevin Dunne 

Nedcor Foundation 

Branch 0293 

PO Box 1144 

Johannesburg, 2000 

Tel: +27 (0) 11 294 3486 

Fax: +27 (0) 11 295 3486 

Email: Kevindu@nedcor.co.za 

69

The environment 

The adoption of an environmental policy confirms Nedcor’s 

commitment to nurture an environmental protection and 

conservation culture, both in its own operating environment and 

in that of all the parties with which it has a business association.

The Nedcor Group recognises environmental management as an important area of corporate 

performance and accepts that sustainable development is a crucial part of responsible business 

management. Nedcor ensures compliance with all applicable legislation and regulations as the first 

step to being an environmentally responsible company. 

Nedcor is committed to managing environmental issues and aims at continuous improvement in 

environmental management and performance. An environmental policy has been finalised as part of the 

integrated Environmental, Health and Safety Programme. 

The Social and Environment Committee, a committee of the Nedcor Board, is currently responsible for 

monitoring and refining environmental policies and ensuring that these policies are integrated into the 

Nedcor philosophy and practice. At management level the Group Corporate Citizenship Committee 

was constituted during 2003 with responsibility for monitoring environmental practices, as well as other 

aspects of good citizenship. 

Environmental management 

Management of direct environmental impacts is monitored by Nedcor Forensic and Protection Services 

(‘NFPS’), with operational responsibility falling on the Occupational Health and Safety Environmental 

Manager and Facilities Management team. 

Macrosafe is managing environmental management implementation on behalf of the group, as part of 

a full safety, health and environment programme consisting of a software system, training course and 

legislative compliance. The environmental section of the programme is based on ISO14001. A 

roadshow has been conducted by Macrosafe to create awareness of the programme. Currently five 

sites have been graded. Nedcor is 65% compliant at this stage, with all head office buildings to be 

completed by February 2004, and all branches by December 2005. Currently 50% of the head office 

buildings have been incorporated into the programme and 209 of the 753 branch sites. The system 

measures safety and health compliance as well as direct environmental impacts as part of Nedcor’s 

reporting to Old Mutual, its majority shareholder. 

As such water and energy consumption, emissions, and waste management are being measured in an 

integrated manner for the first time, and will be reported on more fully in the next report. Currently paper 

recycling takes place as part of the facilities management programmes. 

71

The environment 

Environmental expenditure 

Altogether R5,7 million was channelled through the Nedcor Foundation, The Green Trust programmes 

and the Corporate Governance Division. 

Environmental policy 

The adoption of an environmental policy confirms Nedcor Group’s commitment to nurture an 

environmental protection and conservation culture, both in its own operating environment and in that of 

all the parties with which it has a business association, as well as to comply with environmental 

legislation. 

The policy is aligned with the philosophy of conducting business in a responsible, fair and honest 

manner, and in keeping with government endeavours of environmental protection. Although the nature 

of our business activities is not necessarily harmful or threatening to the environment, the effective 

implementation of this policy nevertheless requires the cooperation and involvement of employees at 

all levels and in all areas. 

Although legislation places a legal onus for environmental matters on the company directors, 

management has been mandated to ensure that legal duties and legislative responsibilities, which 

extend to every employee, are fully discharged. 

The following guidelines are components of the Nedcor Group Environmental Policy: 

An Environmental Management Programme will be structured in such a way that it will be 

conducive to a sustainable environment with corporate support and divisional implementation. 

The programme will support business activities that contribute to a sustainable environment. 

The programme will comply with national legislation. 

The group will harness resources essential for the implementation and control of the 

programme. 

The group recognises the precautionary approach to environmental management, which 

strives to anticipate and prevent potential environmental degradation. 

The target areas of the Environmental Management Programme will include, but are not restricted 

to, the following: 

Nedcor Group facilities, including energy, water and waste management 

Business-related activities and interaction with corporate partners 

National Heritage sites 

The Nedcor Group is committed to improving its Environmental Management Programme on a 

continuing basis. The group recognises the need for conducting internal environmental reviews 

and reporting on progress made in achieving its targets regarding the integration of environmental 

considerations into its operations. 

72

A continuous programme on environment management will be implemented and maintained. 

Responsible managers and accountable executives have to identify and manage environmental 

considerations that could affect the environment negatively. 

Nedcor is proud to be working with WWF-SA in refining its environmental policy as part of a broader 

partnership. 

Socially responsible investment (‘SRI’) 

Edward Nathan & Friedland (‘ENF’) took the initiative in 2002 by creating the ENF Sustainability Index 

which, through the use of internationally accepted rating processes, facilitates investment in listed 

South African companies that demonstrate a tangible commitment to the balanced and active pursuit 

of sustainable economic, social and environmental development for the benefit of all stakeholders, 

including shareholders, employees, consumers and the communities within which they operate. 

Nedcor fully supports the efforts of the JSE as the first stock exchange globally to develop a socially 

responsible investment index, due to be launched in April/May 2004 and is proud to be one of the 

companies included in the SRI index. 

Nedcor was also ranked ninth out of the top 40 JSE-listed companies on the ENF Sustainability Index 

in terms of its sustainability performance in 2003. 

Go Green Fund (Namibia) 

The Go Green Fund is an affinity product linked to homeloans and vehicle finance offered by the 

Commercial Bank of Namibia. It aims to support conservation, protection and wise management of 

important habitats and indigenous plant and animal species; enhance understanding of indigenous 

species and natural ecosystems, specifically when related to urgent conservation problems; and 

promote efficient and appropriate use of natural resources, with a clear aim of ensuring 

that long-term use is sustainable. 

Damara tern – one of the 

bird species protected by 

the Go Green Fund 

Since its inception in October 2001 it has supported 12 urgent 

conservation projects and pledged a total of over N$650 000,00, including 

pledges of over N$361 000,00 during 2003. Thanks to fantastic support from clients, 

business volumes have doubled over the past year. 

Go Green Fund projects 

Environmental education 28,0% 

Preservation of endangered species 41,0% 

Research and awareness 31,0% 

For more information visit www.c-bank.com.na 

73

The environment continued 

Lending/Financing 

The Nedcor Group recognises that as a financial services institution, its most significant environmental 

risk may arise indirectly from the environmental impact of third parties such as its clients, investors and 

business partners. Although the Nedcor Group cannot prescribe environmental management policies 

to its clients, it will encourage sound environmental management. Investigation into environmental risks 

has been included in the credit policies of the group. 

Environmental impact assessments are carried out in all circumstances, as required by legislation, and 

Nedcor takes note of the objectives and content of the Equator Principles. 

Equator Principles and project finance 

Sponsors of projects are obliged to carry out environmental studies in terms of host countries’ 

legislation. Lenders then appoint their own consultants to review the studies. Nedcor Project Finance 

goes beyond this in complying in substance with the Equator Principles through its compliance with 

South African legislation and World Bank standards, where appropriate. 

Total number of transactions 11 

Total value of transactions R3 000 000 000,00 

Investment policy regarding social 

and environmental aspects 

Comply with relevant environmental legislation 

Number of transactions where environmental/ 

social assessment is carried out 11 

The Equator Principles are an industry approach for financial institutions in determining, assessing and 

managing environmental and social risk in project finance. They have become widely adopted by a 

number of the biggest global players in the project finance market over the last few months, and as 

such represents best practice in this area. 

United Nations Environment Programme 

The United Nations Environment Programme Finance Initiatives (‘UNEP FI’) unit is a unique public-andprivate-sector 

partnership between the United Nations and the worldwide financial sector. 

UNEP FI works closely with more than 280 financial institutions, including banks, insurance and 

reinsurance companies, fund managers, and venture capitalists, to develop and promote links between 

the environment and financial performance. Organisations engaged in the initiative demonstrate their 

commitment to identifying, promoting and realising best sustainable practices at all levels of 

organisational operation. 

Nedbank became the first South African bank to join UNEP FI in February 2004 as part of its 

commitment to sustainable development and environmental responsibility, in line with its existing 

working relationship with UNEP on a number of specific projects. 

74

Selby Baqwa of Nedcor 

Corporate Governance 

is congratulated by Paul 

Clements-Hunt (UNEP FI) 

United Nations Environment Programme (‘UNEP’)/Global Reporting Initiative 

(‘GRI’) Environmental Reporting Project 

Nedcor is the African financial-institution representative on this joint UNEP/GRI project, which is 

developing environmental reporting indicators and guidelines for the financial sector. These guidelines 

will then form the sector supplement to the GRI guidelines. 

Nedcor is also closely involved in the activities of the UNEP FI African Task Force, which is addressing 

sustainability issues in the African context. This includes Nedbank partially sponsoring the production 

of a ‘Sustainable Banking in Africa’ report. 

Edward Nathan & Friedland (‘ENF’) 

Nedcor is assisted in matters that concern environmental responsibility by a dedicated environmental 

law and sustainability services department of the Nedcor subsidiary and legal advisory firm, Edward 

Nathan & Friedland (‘ENF’). This ensures that expert advice is obtained in situations where complex 

environmental issues are involved. 

75

Nedbank affinities 

Nedbank has donated over R50 million to The Green Trust, 

over R16 million to The Sports Trust, aside from Olympic 

and paralympic sponsorships, and has contributed 

significantly to the over R8 million disbursed by the Arts 

& Culture Trust.

Nedbank Green, Sport and 

Arts Affinities 

Nedbank launched its mutual-benefit marketing concept with The Green Trust in 1990. This set Nedbank 

apart from other financial institutions by moving it from an organisation making only philanthropic 

corporate social investments, to one undertaking investments that make good business sense, 

simultaneously benefiting clients and creating a stronger profile for Nedbank and its trust partners. 

The great success of The Green Trust led to the establishing of The Sports Trust and the Arts & Culture 

Trust in 1994. The trusts, while independent, are closely aligned with Nedbank’s core values. Each trust 

selects projects for funding according to its own criteria, with the emphasis on projects that are 

innovative, sustainable, exemplary and catalytic. 

The Nedbank Green, Sport and Arts Affinities continue to show healthy growth, bearing testimony to 

the aspiration of Nedbank clients to support causes, through their everyday banking, with little effort 

or cost. Nedbank makes donations to the trust based on clients’ use of Affinity credit cards, 

current accounts and savings accounts. The donations are made at no cost to the client, except for a 

R9,00 donation for each new cheque book. 

To date Nedbank has donated over R50 million to The Green Trust, over R16 million to The Sports Trust, 

aside from Olympic and paralympic sponsorships, and has contributed significantly to the over 

R8 million disbursed by the Arts & Culture Trust. 


The Green Trust was founded in 1990 by Nedbank and WWF-South Africa, the conservation 

organisation. This groundbreaking partnership was hailed internationally as a mutual-benefit marketing 

success story. 

The Green Trust focuses on community-based conservation, recognising that little will be achieved 

unless all South Africa’s citizens are involved in the conservation of our natural heritage. In 

conjunction with WWF-South Africa’s Conservation Division and advisers from respected 

conservation organisations in South Africa, projects are selected according to strict criteria. The 

Green Trust projects aim to achieve specific goals, which include: 

support for communities in both rural and urban areas regarding the sustainable use of their 

natural resources, with the aim of maintaining a healthy natural environment while improving 

the communities’ basic survival needs and quality of life; 

conservation, reintroduction and monitoring of flagship indicator species within sensitive 

ecosystems – if key species are protected, then many other species, as well as the ecosystems 

in which they occur, also benefit; and 

environmental education and awareness programmes that influence leaders, opinion formers, 

communities and individuals to take responsibility for their actions and become actively 

involved in conservation. 

77


Arts Affinities continued 

Examples of projects funded by The Green Trust range from environmental education to tree planting 

and food gardening in poorer urban environments and from working with subsistence-level Eastern 

Cape farmers (to achieve higher levels of environmentally sustainable agricultural productivity) to 

ensuring that communities around the Greater St Lucia Wetland Park are able to derive socioeconomic 

benefits from the park and therefore contribute to its protection and long-term sustainability. Current 

species-based projects include work with cheetahs, wild dogs, blue swallows, ground hornbills and 

southern right whales. 

Nedbank has raised over R50 million for the trust, and 129 projects have been funded. Many of these, 

such as Ukuvuka: Operation Firestop (helped by a R5 million grant from Nedbank and the Nedcor 

Foundation), have made a huge impact on the surrounding communities. The number of projects 

funded within the 2003 financial year reached 35, with a total of R4 047 810 raised. 

The annual Green Trust Awards, sponsored by Nedbank, are South Africa’s leading environmental 

awards, aiming to raise awareness and recognise the environmental achievements of individuals, 

communities, NGOs and companies who have made significant contributions to wildlife and 

environmental conservation. Entries are judged on what projects have achieved relative to the 

resources at their disposal. 

Projects 

Two years of blue swallow conservation 

Two years ago the Nedbank-funded Green Trust teamed up with the Endangered Wildlife Trust (‘EWT’) 

to save South Africa’s most endangered bird species, namely the blue swallow – a key species for 

indicating healthy grassland habitats. Only 80 pairs of blue swallows have been sighted in South Africa 

and Swaziland, although a healthy population should comprise between 600 and 800 pairs. 

‘The good news is that the situation is slowly changing as the combined conservation efforts start 

making an impact,’ says Steven Evans, the project leader for The Green Trust’s Blue Swallow Project, 

who is also doing his doctorate on the bird. 

The most critical area at present is Haenertsburg in the Limpopo province, where only one breeding 

pair of blue swallows has been sighted. 

South Africa’s most 

endangered bird species, 

the blue swallow 

78

‘In this same area a mining company applied for prospecting rights. It presented an environmental 

management report that failed to mention the presence of the blue swallow and other endangered 

species in the area,’ continues Evans. 

‘Fortunately, the EWT-Blue Swallow Working Group, in collaboration with BirdLife South Africa, 

stepped in and lodged an objection to the application with the Department of the Environment as 

well as with the Department of Minerals and Energy. The company subsequently withdrew its 

application.’ 

Green-fingered Christina Kaba, a Green Trust Awards finalist 

She has personally been responsible for feeding and changing the lives of thousands of people and 

simply refuses to listen to excuses. Christina Kaba is known as ‘Mrs Push-Push’. She strides around 

Khayelitsha prodding and pushing residents and local government alike, forcing them to take control 

of their lives and their community. 

Fifty-five-year-old Christina Kaba, finalist in this year’s Green Trust Awards ‘Individuals’ category, may 

have passed only Grade 4, but she simply won’t accept excuses about the hand that life has dealt her 

and the people of the Cape Flats. 

When she lost her job as a domestic worker, she knew there was no time to cry about her lot – she had 

children to feed. She was also sick of listening to unemployed community members complain that they 

were hungry because they had no money to buy food. ‘Everyone had a piece of ground they could use 

to grow the food they needed,’ she said. ‘It just needed someone to give them the necessary 

encouragement!’ 

The rest, as they say, is history. As a fieldworker for Abalimi Bezekhaya – the NPO funded by The Green 

Trust – Kaba cajoled, prodded and threatened to the point where food gardens began flourishing 

throughout the Cape Flats. For the past 13 years she has been a guiding light in the emergence of a 

new ‘greening’ and food-growing culture in the Cape Flats townships. As a direct result of her efforts, 

barren areas have been transformed into flourishing gardens that have improved the quality of life of 

thousands of people and created a new awareness of the importance of the natural environment. 

79



The Green Trust credo 

We have a vision of a clean, healthy, green future. We are proud to join our efforts with those 

who share our vision and our concern. But most of all, we are proud that we can help our 

children and our children’s children grow up with the awareness that everything on this 

beautiful planet has as much right to be here as we do. 


Nedbank launched The Sports Trust in partnership with other corporate benefactors in 1994. It is an 

independent organisation, operating with the support of various national sporting bodies. The trust 

advances sport in South Africa by providing facilities in underprivileged areas. The trust also focuses 

on the identification of young sporting talent, coaching and training, the provision of sports equipment, 

athlete preparation and support programmes. Projects range from multimillion rand sports complexes 

to sports fields. The trust also has a discretionary fund for small donations to individual sports people 

and so-called ‘cinderella sports’. In all, it has donated R16 million to 60 projects nationally. 

An aspiring golfer is taught 

the correct grip at 

Daveyton Golf Course on 

the East Rand 

In 2003 The Sports Trust continued to provide much-needed funding for sports equipment, facilities 

and training in outlying or disadvantaged areas. Enabling communities to play sport contributes largely 

to the upliftment, unity and motivation of those communities. The Sports Trust’s board of trustees 

includes representatives of all the sporting administrative bodies, who oversee project selection. 

Projects funded in 2003 range from the building of Sports Academies in towns such as Virginia and 

Mdantsane to laying sports fields at the Noluthando School for the Deaf in Khayalitsha to providing 

tennis and gymnastics equipment for the youth of Thembisa and Gezina respectively. 

The Sports Trust benefits from events such as the Comrades Marathon, the Pick ’n Pay Argus Cycle 

Tour and the Duzi Canoe Marathon, but the fundraising highlight is the annual Sports Trust Golf 

Challenge. Held on the day after the Nedbank Golf Challenge and sponsored by Nedbank and Sun 

International, this event raises more than R1 million each year for the trust. 

80

Projects 

The chance of a lifetime 

A unique partnership between Harmony Gold Mine and the Nedbank-sponsored Sports Trust has resulted 

in the establishment of a Sports Academy in Virginia in the Free State. Each partner donated R2 million to 

provide accommodation and sports facilities for 42 young soccer and rugby players, who have been given 

the opportunity of developing their full sports potential by being selected to attend the sports academy. 

The boys, aged between 14 and 18, are accommodated in comfortable refurbished men’s quarters 

belonging to Harmony Gold Mine. In the morning they attend the nearby Harmony School. In the 

afternoons and on weekends they are trained in all aspects of their particular sport. 

In the nine months the youngsters have been at the academy they have not disappointed the selectors. 

Of 15 rugby matches played, the Virginia Sports Academy team lost only one. The soccer team 

performed just as well, losing only one game in 13. 

A dream comes true 

For the past 38 years, members of the Daveyton Golf Club have held their committee meetings and 

functions under the trees of their golf course. Now, thanks to the Nedbank-sponsored Sports Trust, 

they finally have a roof over their heads and membership of the club is expected to grow as a result. 

The official opening of the Daveyton Clubhouse on 6 November 2003 was an event some thought 

would never happen. President of the Daveyton Golf Club, Desmond Maloba, addressed guests and 

dignitaries. ‘This is the first time we have had a gathering of this nature with a roof over our heads. It is 

a dream come true!’ exclaimed Desmond. Nedbank, in its unique ‘Bricks for Accounts’ campaign, 

donated all the bricks used to build the clubhouse. 

The Sports Trust credo 

We have a vision of a future in which the sporting talent of our nation can be developed to the 

limit of individual ability. We are proud that we can contribute to the development and 

recognition of all South African sportsmen and sportswomen, and to the creation of a new 

sporting tradition in our country that reflects the shared endeavours and achievement of all its 

people – and on which later generations can build. 

81




The Arts & Culture Trust (‘ACT’), launched in 1994, is the first post-apartheid funding agency for the arts 

in South Africa. Founding trustees are the Ministry of Arts and Culture, Nedbank, the Royal Netherlands 

Embassy, Sun International and the Vodacom Foundation. This dynamic partnership brings together 

resources and expertise of the public and private sector, demonstrating that the social and economic 

development of any country unfolds within a specific cultural context. It underscores the view that 

development itself is a cultural process. 

ACT funds are allocated to projects by an independent board of trustees, consisting of leading arts 

practitioners and administrators. By using ACT as the conduit for corporate social investments 

in artistic and cultural activities, private-sector companies are comfortable that their 

investments are being carefully applied to greatest effect. 

The trust, committed to ‘the upliftment of communities through the arts’, receives 

funds from founding partner Nedbank, with money donated, dependent on clients’ use 

of their Affinities bank accounts. The more Nedbank Arts clients use their accounts, the 

more the trust receives. Nedbank has made a significant contribution to the nearly R8 million 

disbursed by ACT since its inception in 1994. In addition, Nedbank and fellow founding partner, the 

Royal Netherlands Embassy, each donated R500 000 to the July 2003 funding cycle. 

Under new direction, ACT has undergone a period of strategic review and consolidation. A proactive 

proponent of the arts, ACT demonstrates its new strategic direction by way of five focus areas, 

established to uplift communities by helping to create employment, improve creative or administrative 

skills, foster crosscultural understanding and generate cultural tourism. 

Projects 

Projects range from cultural administration centres to discussion about issues shaping changes in 

dance curricula, and from arts education interventions to the collection, preservation and dissemination 

of ancient cultural traditions, history and legends. Projects include: 

Afrikaya – the electronic archiving initiative of the African Cultural Heritage Trust, which aims to 

capture, preserve and make accessible a rich pageant of South African heritage, culture, oral 

tradition and dance. 

Cape Flats Development Association (‘CAFDA’) – the Stables Craft and Culture Centre is a skillstraining, 

job creation and income-generating project supported by ACT. 

Valley Song – a play by one of the world’s great playwrights, Athol Fugard of South Africa, is being 

turned into a groundbreaking opera with empowerment, employment and equity spinoffs, thanks 

to ACT. 

82

Thomas Rajna, 

composer of the Valley 

Song score working in 

his studio 

ACT Awards 

The ACT Awards form a special and unique event in South Africa’s arts calendar. It is an evening of 

acknowledgement and celebration of the immense amount of energy, expertise and hard work that 

goes into managing the business of the arts. Launched in 1998, the annual awards celebrate those 

who play an integral, but often unrecognised, role in the development and promotion of creativity in 

South Africa. 

The Arts & Culture Trust credo 

ACT is inspired to open the hearts and minds of all South Africans to appreciate and nurture 

the rich diversity of arts, culture and heritage in South Africa by supporting creativity, fostering 

understanding and enhancing the quality of life of all our people. 



Andy Scott 


Private Bag X20 

Gallo Manor, 2052 

Tel: +27 (0) 11 802 1818 

Fax: +27 (0) 11 802 1817 

Email: andy.scott@sportstrust.co.za 


Thérèse Brinkcate 


Private Bag X2 

Die Boord, 7613 

Tel: +27 (0) 21 888 2836 

Fax: +27 (0) 21 888 2888 

Email: tbrinkcate@wwfsa.org.za 


Wendeen Lieberman 


Branch 0293 

PO Box 1144 


Tel: +27 (0) 11 295 8455 

Fax: +27 (0) 11 294 8455 

Email: wendeen@act.org.za 

83

Global Reporting Initiative (‘GRI’) 

content index 

Nedcor has adopted the GRI sustainability guidelines on economic, environmental and social performance (collectively referred 

to as the ‘triple bottomline’) as a yardstick for the group’s sustainability reporting. Nedcor is attempting to report in accordance 

with GRI indicators for the first time, but recognises that more work needs to be done in this regard, and aims to continue to 

improve and widen the scope of its reporting. 

GRI 

indicator Topic Page Description 

General performance indicators 

1.1 The group’s vision, mission, purpose and strategy 2, 4, 6 Introduction – report details, CE’s statement, 

reaching for the stars, annual report 

1.2 Statement from Chief Executive describing key 4 CE’s statement 

elements of report 

2.1 Name of organisation Cover Cover 

2.2 Major products and/or services, including brands 31 Annual report client section – products 

2.3 Operational structure of the organisation – Annual report 

2.4 Description of major divisions, operating – Annual report 

companies, subsidiaries and joint ventures 

2.5 Countries in which the organisation’s operations – Annual report 

are located 

2.6 Nature of ownership; legal form – Annual report 

2.7 Nature of markets served – Annual report 

2.8 • Scale of reporting organisation – Annual report 

• Specific breakdowns by countries/regions 

that make up 5% or more of total revenue 

2.9 List of stakeholders 2 Introduction – report details 

2.10 Contact information IBC Contact details at end of various sections and 

at end of report 

84

GRI 



2.11 Reporting period 2 Introduction – report details 

2.12 Date of most recent previous report 2 Introduction – report details 

2.13 Boundaries/Scope of report 2 Introduction – report details 

2.14 Significant changes in size, structure, ownership 2 Introduction – report details 

or products/services since last report 

2.15 Basis for reporting 2 Introduction – report details 

2.16 Explanation regarding the restatement of information – N/A 

2.17 Decisions not to apply GRI principles or protocols 2 Introduction – report details 

2.18 Criteria/Definitions 2 Introduction – report details 

2.19 Significant changes in measurement – N/A 

2.20/ Policies and internal practices to enhance and 2 Introduction – report details 

2.21 provide assurance about the accuracy, completeness 

and reliability of the sustainability report 

2.22 Additional information and reports on sustainability 2, IBC Introduction – report details, contact details 

3.1 Governance structure of the organisation 12 Corporate governance/annual report 

3.2 Percentage of the board of directors that are 13 Corporate governance – the board 

independent, non-executive directors 

3.3 Board member expertise 13 Corporate governance/annual report 

3.4 Board level processes 14 Corporate governance 

3.5 Link between executive compensation and – Employee matters/annual report 

the achievement of objectives 

3.6 Organisational structure and key responsibilities 16 Annual report/corporate governance 

3.7 Mission and value statements and code of conduct 18, 36 Values, code of ethics 

85

Global Reporting Initiative 

content index continued 

GRI 



3.8 Mechanisms for shareholders to provide 21 Shareholders’/annual report 

recommendations 

3.9 Major stakeholders 2 Introduction – report details 

3.10 Stakeholder consultation 2 Introduction – report details 

3.11 Stakeholder consultation information 2 Introduction – report details 

3.12 Use of stakeholder consultation information 2 Introduction – report details 

3.13 Precautionary approach 73 The environment – Environmental Policy 

3.14 Economic, environmental and social charters 74 United Nations Environment Programme 

3.15 Industry and business association memberships 28, 74 Industry memberships, environmental section 

3.16 Policies and/or systems for managing upstream 59 BEE procurement 

and downstream impacts 

3.17 Approach to managing indirect impacts 74, 62 Environmental section 

Corporate social investment 

3.18 Decisions regarding location and change – Annual report 

in operations 

3.19 Programmes and procedures pertaining to 2, 6 Introduction – report details, reaching for 

economic and environmental performance 

the stars 

Priority and target-setting 9 Objectives 

Major programmes to improve performance 9 Objectives 

19, 41, 

Internal communication and training 46 Corporate governance, employee matters 

Performance monitoring 19, 41 Money laundering, occupational health 

48 and safety, employee matters 

Internal and external auditing 3 Introduction – report details 

Senior management review 4 CE’s statement 

3.20 Certification status 2, 71 Introduction – report details, environmental 

section 

86

GRI 


Economic performance indicators 

EC1 Topline income (net sales) – Annual report 

EC2 Geographic breakdown of markets – Annual report 

EC3 Costs of all goods, materials and services – Annual report 

purchased 

EC4 Percentage of contracts paid in accordance – Not measured at present 

with agreed terms 

EC5 Payroll and benefits 22 Annual report, employee matters 

EC6 Distributions to providers of capital 22 Annual report, value-added statement 

EC7 Increase/Decrease in retained earnings – Annual report 

EC8 Taxes paid – Annual report 

EC9 Subsidies received – Annual report 

EC10 Donations to community, civil society and 62 Corporate social investment 

other groups 

Environmental performance indicators 

EN1 Total materials used 71 Environmental management 

EN2 Percentage of materials used that are waste 71 Environmental management 

from sources external to the reporting organisation 

EN3 Direct energy use 71 Environmental management 

EN4 Indirect energy use 71 Environmental management 

EN5 Total water use 71 Environmental management 

EN6 Location and size of land owned, leased or 71 Environmental management 

managed in biodiversity-rich habitats 

EN7 Description of the major impacts on biodiversity 71 Environmental management 

EN8 Greenhouse gas emissions 71 Environmental management 

EN9 Use and emissions of ozone-depleting substances 71 Environmental management 

EN10 Significant air emissions by type 71 Environmental management 

EN11 Total amount of waste by type and destination 71 Environmental management 

EN12 Significant discharges to water by type – N/A for a financial services organisation 

87



GRI 


EN13 Significant spills of chemicals, oils and fuels – N/A for a financial services organisation 

EN14 Significant environmental impacts of principal – N/A for a financial services organisation 

products and services 

EN15 Percentage of weight of products sold that – N/A 

is reclaimable versus the percentage that is 

actually reclaimed 

EN16 Incidents of and fines for non-compliance – No fines 

associated with environmental issues 

EN27 Strategies for protecting and restoring native 72, 77 The Green Trust – Nedbank Affinities, 

ecosystems and species in degraded areas 

Environmental policy 

EN35 Total environmental expenditures by type 72 Environmental expenditure 

Social performance indicators 

Labour practices 

LA1 Breakdown of workforce 39 Employee matters 

LA2 Employment creation and average turnover 39 Employee matters 

LA3 Trade union representation 46 Industrial relations 

LA4 Policy and procedures involving information, 46 Industrial relations 

consultation and negotiation with employees 

over changes in the reporting organisation’s 

operations 

Health and safety 

LA5 Occupational accidents and diseases 48 Occupational health and safety 

LA6 Health and safety committees 48 Occupational health and safety 

LA7 Injury, lost days and absentee rates 48 Occupational health and safety 

Training and diversity 

LA8 HIV/Aids policies or programmes 48 HIV/Aids 

LA9 Training per employee level, gender and ethnic split 40 – 43 Training and development 

LA10 Equal-opportunity policies or programmes, and 40 – 43 Employment equity, organisational 

the monitoring thereof 

transformation 

88

GRI 


LA11 Composition of senior management and corporate 16, 39 Corporate governance framework, 

governance bodies 

employment equity 

LA12 Employee benefits beyond those legally mandated 43 – 46 Employees matters 

LA13 Provision for formal worker representation 46 Internal communications, Industrial relations 

in decisionmaking 

LA15 Formal agreements with trade unions covering 46 Industrial relations 

health and safety at work and proportion 

of workforce covered by such agreements 

LA16 Programmes to support the continued employability 48 Employee development, handling the BoE 

of employees and to manage career endings 

integration 

LA17 Policies and programmes for skills management 40 – 43 Management and leadership development 

Human rights 

HR1 Policies, guidelines, corporate structure and 2, 36 Introduction – report details, Nedcor Charter 

procedures to deal with all aspects of human rights 

of Employment 

HR2 Evidence of consideration of human rights 2, 59 All investment decisions and procurement 

impacts, as part of investment and procurement, 

policies 

is based on the South African Constitution 

HR3 Policies and procedures to evaluate and 59 Procurement 

address human rights performance 

within the supply chain and contractors 

89



GRI 


HR4 Global policy and procedures/programmes 40 Organisational transformation 

preventing all forms of discrimination in operations 

HR5 Freedom of association policy 46 Industrial relations 

HR6 Child labour policy – Not relevant for a financial services organisation 

HR7 Forced and compulsory labour policy – Not relevant for a financial services organisation 

Society 

SO1 Policies to manage impacts on communities 62 Corporate social investment 

SO2 Policy/Procedures for addressing bribery 18 Money laundering, Ethics 

and corruption 

SO3 Description of policy/procedures/systems for 27 Contributions to political parties 

managing political lobbying and contributions 

SO4 Awards received 33, 65 Client service, corporate social investment 

SO5 Money paid to political parties 27 Contributions to political parties 

Product responsibility 

PR1 Policy for preserving client health and safety – Not relevant for a financial services organisation 

during use of products and services 

PR2 Policy/Procedures related to product 32, 33 Client protection 

information and labelling 

PR3 Policy/Procedures relating to client privacy 33 Client protection and privacy 

PR8 Policies/Procedures and mechanisms related 33 Client care 

to client satisfaction 

PR9 Policies/Procedures for adherence to standards 26 Marketing and communications 

and voluntary codes related to advertising 

90


This is Nedcor’s first attempt at delivering a comprehensive sustainability report that covers 

aspects of interest to all its internal and external stakeholders. It is the successor to the Corporate 

Citizenship Report released in mid-2003. We certainly intend to make every attempt to improve 

this report on an ongoing basis, and in so doing we value any feedback from our stakeholders 

regarding the report and any other information or approach that they would like to see in it. 

We have implemented a software system that allows us to coordinate sustainability reporting 

throughout the group. As we gather a higher level of baseline information it will enable us to set 

targets for all areas of sustainability and report more accurately on our performance against these 

targets as well as provide a more complete picture of sustainability within the organisation. 

Please feel free to give your comments and suggestions on Nedcor’s sustainability reporting to: 

Justin Smith, Senior Manager: Corporate Governance and Sustainability 

Nedcor Limited 

PO Box 1144 


Tel: +27 (0) 11 294 0238 

Fax: +27 (0) 11 295 0238 

Email: Justins@nedcor.co.za 

GRAPHICOR 30643

www.nedcor.com

nedcor sustainability report 2003 - Nedbank Group Limited

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?