Page 102 - Capricorn IAR 2020

REMUNERATION REPORT BOARD SUSTAINABILITY GLOSSARY OF TERMS AND ETHICS REPORT
Subsidiary-driven environmental sustainability initiatives
Bank Windhoek displayed its commitment to sustainable business activities by creating a permanent and dedicated position in the Treasury Department to identify sustainable funding and projects. Our aim is to establish Bank Windhoek as the green financier of choice for sustainable projects.
Bank Windhoek is the only commercial bank in Namibia to employ a dedicated resource for this purpose. Drivers for renewable energy initiatives include drastically lower production costs, growing concern around climate change, evolving global energy policies and increased pressure from investors on companies to adopt ESG policies.
We are addressing sustainability as part of our core business through our green asset portfolio. The bank launched the first green bond
in 2019. This enabled us to meet our clients’ sustainability requirements and develop a complete value chain offering. We can now raise green funding and offer favourable green loans with competitive active terms that contribute to a low-carbon and customer-resilient future. Read more in the case study in the section on material matters on page 50.
Bank Windhoek is committed to ensuring that clients have enough access to funding that support Namibia in its transition to an environmentally sustainable and low-carbon economy. This will benefit society at large in the long term.
The momentum gained after launching the first green bond was unfortunately dampened by the effects of the protracted drought experienced across the country during 2018/19 and economic shock caused by COVID-19.
Internal operational initiatives
Initiatives to reduce energy consumption at the Capricorn Group building in Windhoek include the replacement of air conditioners and the installation of light-emitting diode (“LED”) energy-saving bulbs. All newly renovated branches and agencies use LED bulbs. Customers can opt to receive electronic statements to reduce overall paper usage.
The Capricorn Foundation
We measure a range of indicators to minimise our environmental impact through the use of paper, electricity and fuel. For each indicator, we set a target for branches and business units, which is reviewed by the bank’s executive management team monthly.
In line with the energy-saving measures originating from nationwide power shortages, we did not use air-conditioning during load shedding to reduce generator use.
CAM aims to be environmentally friendly by actively changing its behaviours and that of our clients and supporting green energy investments.
Our two main environmental initiatives:
• We reduced paper usage by encouraging clients to migrate to digital platforms. We ensured that less than 30% still receive statements via post. We expect this number to be less than 10% by December 2020.
• We make green energy investments through our private debt fund, Caliber Capital Fund, and some of our unit trusts, notably the Capricorn High Yield Fund. We have invested more than N$92.9 million in multiple clean energy solutions over the past two years. These solar projects generate more than 10 megawatts in clean energy.
The Capricorn Foundation, a non-profit association incorporated under section 21 and a full subsidiary of Capricorn Group, was officially incorporated on 12 February 2020. The name was trademarked, and the board appointed two interim directors, Johan Swanepoel and Nakazibwe-Sekandi. We commenced the registration of the Capricorn Foundation as a welfare organisation with the Ministry of Health and Social Services.
The Foundation will be funded by contributions from Group subsidiaries. This was lower than anticipated for 2020 due to COVID-19 and priorities for 2021 will shift as a consequence. The inaugural board meeting of the Capricorn Foundation was held on 1 July 2020. This will be followed by an internal and external launch to create awareness and identify key projects to support.
Creating an ethical culture
Our ethics vision is to create an ethical organisation where our stakeholders are motivated to live our values of openness, dedication and inspiration.
Capricorn Group is dedicated to enhancing and sustaining ethical business practices through leadership commitment to ethical business conduct and by institutionalising ethical behaviour. Ethical leadership means setting the tone from the top. Our ethical culture is directed by the ethics strategy and other initiatives, aimed at proactively and holistically managing ethics risk.
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