SOUTH AFRICA CASE STUDY: NEDBANK NATURE RISK ASSESSMENT JOURNEY APPLYING THE TNFD LEAP APPROACH TO CREDIT PORTFOLIOS

Nedbank implemented the TNFD LEAP framework to assess nature-related dependencies, impacts, risks, and opportunities (DIROs) within its credit portfolio, primarily focusing on the Southern African Development Community (SADC) region. Using a double materiality lens and tools like ENCORE and the WWF Water Risk Filter, the bank identified six priority sectors—real estate, manufacturing, wholesale and retail trade, mining and quarrying, energy, and agriculture—based on financial exposure and nature-related scores. While real estate had the highest financial exposure but low nature impact, primary sectors like agriculture and mining showed high dependency and impact. A specific review of a mining client revealed operational interfaces with Critical Biodiversity Areas and Strategic Groundwater Resource Areas, highlighting risks associated with South Africa's water scarcity. The bank is now moving into Phase 2 to quantify financial risks and identify nature-positive lending opportunities.

• Nedbank utilised the TNFD LEAP (Locate, Evaluate, Assess, Prepare) approach to conduct a Nature Risk Assessment (NRA) of its credit portfolio using a double materiality lens that evaluated both the financial dependency of the portfolio on natural capital and its material impact on nature.
• Six sectors were prioritised for further analysis based on a combination of high financial exposure and high nature dependency and impact scores: real estate, manufacturing, wholesale and retail trade, mining and quarrying, energy, and agriculture.
• The assessment revealed a divergence between financial exposure and nature impact; real estate represents the bank's highest financial exposure but has low impact and dependency scores, whereas primary production sectors like agriculture and mining exhibit high scores for both dependency and impact.
• A detailed review of a client in the mining and quarrying sector identified significant nature interfaces, including operational sites located in an Ecological Support Area, a Critical Biodiversity Area within a globally recognised Centre of Biological Endemism, and a Strategic Groundwater Resource Area.
• The bank identified that the mining and quarrying sector's high materiality rating for water supply dependency increases financial risk exposure, particularly given that South Africa is a water-scarce country.
• The NRA process encountered several limitations, including incomplete data for quantifying dependencies, the potential for global tools like ENCORE and the WWF Water Risk Filter to misrepresent the specific South African context, and the difficulty of translating ecosystem service impacts into financial risk metrics.
• Nedbank has transitioned to Phase 2 of the NRA, which involves conducting scenario analyses, quantifying financial risks from regulatory shifts and ecosystem degradation, and identifying nature-positive investment opportunities to inform credit policy.

APA

Maduray, C., & Ntaitsane, M. (2026). SOUTH AFRICA CASE STUDY: NEDBANK NATURE RISK ASSESSMENT JOURNEY APPLYING THE TNFD LEAP APPROACH TO CREDIT PORTFOLIOS. WWF South Africa. https://wwfafrica.awsassets.panda.org/downloads/tnfd-nedbank-2026_risk-assessment-case-study_final-feb-2026.pdf

Chicago

Maduray, Cerin, and Mpoi Ntaitsane. SOUTH AFRICA CASE STUDY: NEDBANK NATURE RISK ASSESSMENT JOURNEY APPLYING THE TNFD LEAP APPROACH TO CREDIT PORTFOLIOS. WWF South Africa, 2026. https://wwfafrica.awsassets.panda.org/downloads/tnfd-nedbank-2026_risk-assessment-case-study_final-feb-2026.pdf.

Wikipedia

{{cite report |last1=Maduray |first1=Cerin |last2=Ntaitsane |first2=Mpoi |title=SOUTH AFRICA CASE STUDY: NEDBANK NATURE RISK ASSESSMENT JOURNEY APPLYING THE TNFD LEAP APPROACH TO CREDIT PORTFOLIOS |publisher=WWF South Africa |date=February 2026 |url=https://wwfafrica.awsassets.panda.org/downloads/tnfd-nedbank-2026_risk-assessment-case-study_final-feb-2026.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{maduray2026south, author = {Maduray, Cerin and Ntaitsane, Mpoi}, title = {{SOUTH AFRICA CASE STUDY: NEDBANK NATURE RISK ASSESSMENT JOURNEY APPLYING THE TNFD LEAP APPROACH TO CREDIT PORTFOLIOS}}, institution = {WWF South Africa}, year = {2026}, month = feb, url = {https://wwfafrica.awsassets.panda.org/downloads/tnfd-nedbank-2026_risk-assessment-case-study_final-feb-2026.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }