Case study: How Investec works with its clients and customers to encourage sustainable practices

Stakeholder identification and consultation

Please describe which stakeholders (or groups/ types of stakeholders) you have identified, consulted, engaged, collaborated or partnered with for the purpose of implementing the Principles and improving your bank’s impacts. This should include a high-level overview of how your bank has identified relevant stakeholders, what issues were addressed/results achieved and how they fed into the action planning process.

Double Materiality Assessment
In the 2024 financial year, Investec carried out a double materiality assessment to identify and evaluate the most significant sustainability-related impacts, risks, and opportunities for its business.

This assessment was initiated in response to new regulations, particularly the European Commission’s Corporate Sustainability Reporting Directive (CSRD), and was conducted by an external party to ensure impartial and transparent input from Investec’s stakeholders. The double materiality assessment is aligned with the proposed requirements of the CSRD. Through this process, Investec obtained a comprehensive understanding and deeper insights into the sustainability issues that are relevant to it, as well as its impact on society and the environment.

The assessment encompassed Investec’s entire value chain, with stakeholder feedback primarily sourced from the UK and South Africa.

Detailed disclosures regarding the double materiality assessment can be found in Investec’s 2024 Group Integrated and Strategic Report and its 2024 Group Sustainability Report.

Investec also involves other stakeholders, including clients, regulatory agencies, and investors, in its impact analysis and target-setting processes.

How did Investec work with its clients and customers to encourage sustainable practices and enable sustainable economic activities?

In its 2024 Principles for Responsible Banking reporting index Investec reports that it works with its clients and customers to encourage sustainable practices and enable sustainable economic activities as follows:

Investec has several sustainability policies in place that are accessible on its website including

• The way we do business policy
• Operational resilience statement
• Group environmental policy and climate change statement
• Group fossil fuel policy
• Group health and safety policy
• Group sustainable and transition finance framework
• Investec Wealth & Investment International (IW&I) I ESG and Sustainable policy (South Africa) • IW&II Voting and active engagement policy (South Africa)
• Group biodiversity statement
• Group procurement statement
• Group modern slavery act statement

Internal policies include

• Defence sector policy

 Suppliers
Investec’s supply chain statement includes standards related to human rights, labour rights, and environmental and anti-corruption principles as outlined in the UN Global Compact (UNGC). Investec strives to assess the performance of the majority of its suppliers against these standards at least once every three years. All its operations prioritize the protection of internationally recognized human rights and ensure that Investec does not engage in any human rights violations. Investec’s Group Supplier Code of Conduct details the standards and behaviours expected from all suppliers and service providers regarding integrity and ethical conduct, reflecting the core values of the Investec Group. Suppliers and service providers are required to comply with this code and should be aware that their actions can affect the Group’s reputation and its relationships of trust with clients, employees, shareholders, and other stakeholders. Hence, the Investec Group expects its suppliers and service providers to fulfill their contractual obligations in line with the values set forth in the Supplier Code of Conduct.

Clients
Aligned with Investec’s net-zero strategy and its three channels of impact, the third channel emphasizes client engagement. Investec has taken an active role in influencing, advocating, and leading initiatives within its client ecosystem to enhance the quality of data used for scope 3 emission calculations and to promote sustainability efforts. Investec’s primary focus has been on improving the quality and accuracy of its scope 3 financed emissions, rather than merely expanding the range of asset classes included in these calculations. While Investec recognizes this is only the initial step, it understands the significance of proactive client engagement and advocating for improved data quality and sustainable practices. Investec remains thoroughly committed to fostering positive change, reducing its environmental impact, and promoting sustainable practices within its industry and in other high-emission sectors where Investec provides financing.

UN Principles for Responsible Banking: Accelerating a positive global transition for people and the planet

With over 300 signatory banks representing almost half of the global banking industry, the Principles for Responsible Banking are the world’s foremost sustainable banking framework. Through these Principles, the banking community takes action to align core strategies, decision-making, lending and investment with the UN Sustainable Development Goals and international agreements such as the Paris Climate Agreement.

FBRH Principles for Responsible Banking (PRB) Assurance:

First class PRB assurance services: The result of solid, hands-on ESG/ Sustainability experience

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    • FBRH possesses a unique skill set that combines ESG/sustainability certified training, experience in advisory services and report preparation, and ESG/sustainability report assurance.

The combination of all the above empowers FBRH to provide first class Principles for Responsible Banking (PRB) assurance services.

References:

This case study is based on published information by Investec, located at the link below. For the sake of readability, we did not use brackets or ellipses. However, we made sure that the extra or missing words did not change the report’s meaning. If you would like to quote these written sources from the original please revert to the following link:

https://www.investec.com/content/dam/investor-relations/financial-information/group-financial-results/2024/Sustainability-UNPRB-2024.pdf

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