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 builds trust. Over 200 reviews from top professionals from around the world demonstrate our ability to build strong, trusting business relationships.
    • 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

Note to Investec: With each case study we send out an email requesting a comment on this case study. If you have not received such an email please contact us.

What are the material issues the company has identified?

In its 2021 Group sustainability and ESG supplementary report Investec identified a range of material issues, such as business sustainability and response to climate change, cybersecurity, skills training and job creation, compliance with existing and evolving regulatory requirements. Among these, creating economic value for its stakeholders stands out as a key material issue for Investec.

Stakeholder engagement in accordance with the GRI Standards              

The Global Reporting Initiative (GRI) defines the Principle of Stakeholder Inclusiveness when identifying material issues (or a company’s most important impacts) as follows:

“The reporting organization shall identify its stakeholders, and explain how it has responded to their reasonable expectations and interests.”

Stakeholders must be consulted in the process of identifying a company’s most important impacts and their reasonable expectations and interests must be taken into account. This is an important cornerstone for CSR / sustainability reporting done responsibly.

Key stakeholder groups Investec engages with:

Stakeholder Group	Method of engagement
Clients	·      The board discharges its oversight of client engagement to senior management and client relationship managers, receiving regular updates in board meetings about matters including Investec’s support for clients during the COVID-19 pandemic ·      Client engagement methods have evolved during the COVID-19 pandemic, with face-to-face meetings becoming less frequent and a greater reliance on digital platforms and services ·      Comprehensive website and app ·      Regular telephone and email communications ·      Industry relevant events and client marketing events, both of which have moved to online platforms while most people continue to work from home
Employees (permanent, temporary and contractors)	·      Regular staff updates and discussions hosted by the chief executive (CEO), executive directors and senior management, conducted more frequently via digital channels during the COVID-19 pandemic ·      Regular CEO staff communication via email updates, staff intranet and other digital channels ·      Induction training for new employees including a welcome from the CEO and senior management ·      Group and subsidiary fact sheets ·      Tailored internal investor relations presentations on group results, strategy updates and market feedback ·      Dedicated, comprehensive intranet including a platform full of resources to support the health and wellbeing of Investec’s people ·      In the UK, a designated non-executive director overseeing workforce engagement
Investors	·      Regular meetings with executive directors, senior management and investor relations ·      Annual meetings for the largest shareholders with the Chair of the board, Chair of the Remuneration Committee, senior independent director, investor relations, and group company secretarial ·      Annual general meeting hosted by the Chair of the board with board members in attendance ·      Two investor presentations and two pre-close investor briefing calls presented by the CEO and Chief Financial Officer ·      Stock exchange announcements ·      Comprehensive investor relations website ·      Investor roadshows and presentations ·      Regular telephone and email communications ·      Annual and interim reports
Communities	·      Regular in-person meetings, telephone/conference calls and emails with community partners ·      Comprehensive community website and social media platforms to encourage participation ·      Staff volunteering ·      Community partners and nongovernmental organisation (NGO) invited to collaborate at conferences and events
Government and regulators	·      Investec’s Chair, CEO, executive directors and the board hold regular meetings with the South African Prudential Authority and with the UK Prudential Regulation Authority ·      Active participation in a number of policy forums ·      Engagement with industry consultative bodies
ESG analysts and climate focused industry bodies	·      Regular communications on ad-hoc topics ·      Annual sustainability report ·      Comprehensive sustainability website ·      Comprehensive ESG disclosures, including a standalone Task Force on Climate-related Financial Disclosures (TCFD) report ·      Sustainability factsheets ·      Investec’s CEO is a member of the UN Global Investors for Sustainable Development Alliance ·      Regular and active participation in a number of ESG and climate forums relating to the TCFDs, e.g. Partnership for Carbon Accounting Financials (PCAF) ·      Regular knowledge sharing on ESG industry standards
Suppliers	·      Centralised negotiation process ·      Procurement questionnaires requesting information on suppliers’ environmental, social and ethical policies ·      Conduct due diligence on cyber security and business continuity

How stakeholder engagement was made to identify material issues

To identify and prioritise material topics Investec engaged with its stakeholders through interviews.

What actions were taken by Investec to create economic value for its stakeholders?

In its 2021 Group sustainability and ESG supplementary report Investec reports that it took the following actions for creating economic value for its stakeholders:

• Creating economic value for employees
• In 2021, Investec paid £616.4mn for employee salaries, wages and other benefits.

• Creating economic value for the government
• In 2021, Investec paid £450.4mn in corporation, deferred payroll and other taxes.

• Creating economic value for shareholders
• In 2021, Investec paid £53.3mn in dividends to ordinary shareholders, plus £34.7mn in dividends to perpetual preference and Other Additional Tier 1 security holders.

• Creating economic value for communities
• In 2021, Investec spent £9.8mn on community initiatives.

Which GRI Standards and corresponding Sustainable Development Goals (SDGs) have been addressed?

The GRI Standard addressed in this case is: Disclosure 201-1 Direct economic value generated and distributed

Disclosure 201-1 Direct economic value generated and distributed corresponds to:

• Sustainable Development Goal (SDG) 8: Decent Work and Economic Growth
• Targets: 8.1, 8.2
• Sustainable Development Goal (SDG) 9: Industry, Innovation and Infrastructure
• Targets: 9.1, 9.4, 9.5

 

78% of the world’s 250 largest companies report in accordance with the GRI Standards

SustainCase was primarily created to demonstrate, through case studies, the importance of dealing with a company’s most important impacts in a structured way, with use of the GRI Standards. To show how today’s best-run companies are achieving economic, social and environmental success – and how you can too.

Research by well-recognised institutions is clearly proving that responsible companies can look to the future with optimism.

7 GRI sustainability disclosures get you started

Any size business can start taking sustainability action

GRI, ISEP, CPD Certified Sustainability courses (2-5 days): Live Online or Classroom  (venue: London School of Economics)

• Exclusive FBRH template to begin reporting from day one
• Identify your most important impacts on the Environment, Economy and People
• Formulate in group exercises your plan for action. Begin taking solid, focused, all-round sustainability action ASAP. 
• Benchmarking methodology to set you on a path of continuous improvement

See upcoming training dates.
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/2021/Investec-Group-Sustainability-and-ESG-Report-2021.pdf

Note to Investec: With each case study we send out an email requesting a comment on this case study. If you have not received such an email please contact us.

What are the material issues the company has identified?

In its 2019 Corporate Sustainability and ESG Supplementary Report Investec identified a range of material issues, such as gender, diversity and transformation, auditor independence, improving and sustainable returns, impact of the political and economic environment. Among these, promoting information security stands out as a key material issue for Investec.

Stakeholder engagement in accordance with the GRI Standards

The Global Reporting Initiative (GRI) defines the Principle of Stakeholder Inclusiveness when identifying material issues (or a company’s most important impacts) as follows:

“The reporting organization shall identify its stakeholders, and explain how it has responded to their reasonable expectations and interests.”

Stakeholders must be consulted in the process of identifying a company’s most important impacts and their reasonable expectations and interests must be taken into account. This is an important cornerstone for CSR / sustainability reporting done responsibly.

Key stakeholder groups Investec engages with:

To identify and prioritise material topics Investec engaged with its stakeholders through the following channels:

Stakeholder Group	Method of engagement
Employees	·      Quarterly magazine ·      Staff updates hosted by executive management ·      Group and subsidiary fact sheets ·      Tailored internal investor relations presentations ·      Induction training for new employees ·      Regular staff communications ·      Dedicated comprehensive intranet ·      Senior management engagement breakfasts
Investors and shareholders	·      Annual general meeting ·      Four investor presentations ·      Stock exchange announcements ·      Comprehensive investor relations website ·      Shareholder roadshows and presentations ·      Regular meetings with investor relations team and executive management ·      Annual meeting with investor relations, group company secretarial, the chairman of the board, senior independent director and chairman of the remuneration committee ·      Regular email and telephone communication ·      Annual and interim reports
Clients	·      Client relationship managers in each business ·      Regular face-to-face, telephone and email communications ·      Meetings with senior management ·      Comprehensive website and app ·      Industry relevant events ·      Client marketing events
Rating agencies	·      Meetings with investor relations team, group risk management and executive management ·      Tailored rating agency booklet ·      Tailored presentations ·      Regular email and telephone communications ·      Annual and interim reports ·      Four investor presentations ·      Comprehensive investor relations website
Government and regulatory bodies	·      Active participation in a number of policy forums ·      Response and engagement with all relevant bodies on regulatory matters ·      Consulted with industry bodies
Equity and debt analysts	·      Four investor presentations ·      Stock exchange announcements ·      Comprehensive investor relations website ·      Regular meetings with investor relations and executive management ·      Regular email and telephone communications ·      Annual and interim reports
Media	·      Regular email and telephone communications ·      Stock exchange announcements ·      Comprehensive website ·      Meetings with executive management, economists and industry spokespersons ·      Dedicated third party public relations teams
Suppliers	·      Centralised negotiation process ·      Ad hoc procurement questionnaires requesting information on suppliers’ environmental, social and ethical policies

What actions were taken by Investec to promote information security?

In its 2019 Corporate Sustainability and ESG Supplementary Report Investec reports that it took the following actions for promoting information security:

• Providing information security training
• During the reporting year Investec ran a modular computer based training (CBT) information security awareness campaign, aimed to educate staff about the threats to Investec’s information, give them insight into the potential risks of data compromise, and to arm them with the knowledge they need to safeguard Investec’s (and their) data. A total of 81% of staff completed the training during the year. The campaign covered a broad range of topics consisting of the following modules:
  • Module 1 – Data protection: The different classifications of information, the importance of protecting it, and how to securely handle the information you access in your role
  • Module 2 – Cybersecurity: The threats you may face when you are online, the dangers of tricks and techniques used by cyber criminals, and how to guard against these
  • Module 3 – Mobile devices and social media: The risks associated with using mobile devices, the potential dangers of social media, and what you can do to keep your data and devices safe
  • Module 4 – Beyond the office: The importance of being vigilant and how to protect information when out of the office – be it at home, in public places, or while travelling
  • Module 5 – Security essentials: The fundamentals of information security, social engineering, and secure use of IT resources to safeguard both corporate and personal data.

• Promoting cybersecurity
• Investec maintains a risk-based strategy incorporating prediction, prevention, detection and response capabilities, to ensure the group is adequately protected against advanced cyber attacks. Continual monitoring provides visibility and enables proactive response to evolving cyber threats. Investec maintains active participation in the global cybersecurity industry to stay current and relevant. Targeted attack simulations by external specialists are performed, to measure and improve cyber defences. These are complemented by non-technical exercises involving the board and senior leadership to evaluate and improve cyber incident response and crisis management.

Which GRI Standards and corresponding Sustainable Development Goals (SDGs) have been addressed?

The GRI Standard addressed in this case is: Disclosure 418-1 Substantiated complaints concerning breaches of customer privacy and losses of customer data

Disclosure 418-1 Substantiated complaints concerning breaches of customer privacy and losses of customer data corresponds to:

• Sustainable Development Goal (SDG) 16: Peace, Justice and Strong Institutions
• Targets: 16.3, 16.10

 

78% of the world’s 250 largest companies report in accordance with the GRI Standards

SustainCase was primarily created to demonstrate, through case studies, the importance of dealing with a company’s most important impacts in a structured way, with use of the GRI Standards. To show how today’s best-run companies are achieving economic, social and environmental success – and how you can too.

Research by well-recognised institutions is clearly proving that responsible companies can look to the future with optimism.

7 GRI sustainability disclosures get you started

Any size business can start taking sustainability action

GRI, ISEP, CPD Certified Sustainability courses (2-5 days): Live Online or Classroom  (venue: London School of Economics)

• Exclusive FBRH template to begin reporting from day one
• Identify your most important impacts on the Environment, Economy and People
• Formulate in group exercises your plan for action. Begin taking solid, focused, all-round sustainability action ASAP. 
• Benchmarking methodology to set you on a path of continuous improvement

See upcoming training dates.
References:

1) 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 original on the Global Reporting Initiative’s Sustainability Disclosure Database at the link:

http://database.globalreporting.org/

2) https://www.globalreporting.org/standards/gri-standards-download-center/

Note to Investec: With each case study we send out an email requesting a comment on this case study. If you have not received such an email please contact us.