Leading the transition to a resilient future through sustainable finance
Climate change is more than an environmental issue; it is an economic, financial, and societal crisis that demands decisive action. As the Best Sustainable Finance Bank for the second consecutive year, our mission is not just to fund a sustainable future but to lead it. With environmental, social, and governance (ESG) factors at the core of our solutions, we strive to advance sustainable finance and accelerate the green transition. When our actions today define tomorrow, we must respond to the urgency of climate change with a lasting commitment to sustainability.

The urgency and opportunity of sustainable finance

South Africa’s economic landscape is marked by low growth, escalating unemployment, and the highest levels of inequality globally. Without meaningful intervention, these issues are set to deepen, causing increased pressure on industries, disruptions to supply chains, exacerbated resource scarcity, and intensified regulatory issues.

South Africa has committed to achieving a net-zero emissions goal by 2025. However, this ambition is hindered by a significant financing gap, particularly in high-emission industries. At Nedbank CIB, we believe banks serve as the bedrock of this transition, providing strategic capital and innovative financial models necessary to foster sustainable ESG investment. Nedbank CIB is not just a financial intermediary but a trusted partner who aims to catalyse change while actively shaping a more resilient economy by ensuring that:

• 20% of our total loans support sustainable development by 2025; and
• we play an active role in transforming South Africa’s sustainable finance ecosystem through innovative structured solutions that make key sustainability impacts.

A resilient economy and a sustainable future are not mutually exclusive but inextricably linked, and we are committed to shaping both.

Sustainable finance frameworks: Challenges and solutions

Sustainable finance extends beyond green bonds and impact-linked investment. Sustainable investing, at its core, is about mobilising capital to cultivate long-term economic resilience and efficiency while mitigating climate risks and addressing social inequalities. However, key barriers still exist to accessing sustainable finance, such as the following:

• Policy and regulatory uncertainty: Businesses face challenges in navigating ESG taxonomies, transition finance eligibility, and disclosure requirements.
• High upfront costs: Significant capital is required for the transition to renewables, biodiversity protection, ecosystem restoration, ESG compliance, and modernising operations.

Nedbank CIB is proactively addressing these challenges through the following:

• Sustainable finance solutions: Offering framework advisory and funding solutions to businesses shifting away from carbon-intensive operations to sustainable practices.
• Blended finance and risk mitigation: Collaborating with development finance institutions (DFIs) to reduce capital-related risks and unlock funding for emerging industries.

When a mid-sized South African manufacturer sought funding to implement energy-efficient production processes but lacked sufficient green capital, Nedbank CIB intervened. By structuring a hybrid sustainable finance package and combining ESG-linked loans, we managed to help reduce energy costs, enhance ESG ratings, and boost investor confidence.

This proves that sustainable finance isn’t simply about providing financial tools for mitigating risk, but about creating opportunities and making a lasting impact for generations to come.

Nedbank CIB's leadership and call to action

Nedbank CIB has long been a pioneer in sustainable finance, driven by a commitment to create a real, measurable impact. Our vision is to lead and redefine the landscape of sustainable finance debt and advisory services.

In pursuing this goal, we encourage businesses to move beyond seeing sustainable finance as a cost and instead recognise it as a catalyst for growth, leveraging funding that drives green innovation, supports social progress, and aligns with ambitious sustainability targets. The future is sustainable, and by partnering with Nedbank CIB, we can craft financial solutions that power your net-zero journey and broader sustainability goals.

For policymakers, well-structured and forward-thinking frameworks are essential to accelerating South Africa’s green transition. Nedbank CIB remains committed to collaborating with policymakers to develop effective and practical solutions that lead to meaningful change.

Sustainable finance is about more than just returns; it is about impact. For investors, it offers strong financial performance, measurable environmental and social benefits, and long-term value creation, ensuring capital allocation that is imperative for the growth of Africa's green economy.

The transition to a sustainable future is happening now, and together we can ensure it is not only profitable but also responsible and resilient.

Invest in resilience and watch the video below for more information about sustainable finance, and how to navigate the barriers to change.