Nedbank, a South African Old Mutual group subsidiary and the only African bank to be included in the Dow Jones Sustainability Index, has signed a multimillion dollar carbon offset agreement with Wildlife Works Carbon, a new venture of San Francisco-based Wildlife Works Inc., the owners of a pioneering wildlife conservation and community project in Kenya.

Per the agreement, Nedbank will acquire carbon credits from Wildlife Works' Kasigau Corridor Project for sale to the global carbon market. More than 2.5 million metric tons of carbon will be made available through the avoided deforestation of the Kasigau Corridor, between now and 2026.

"This is Africa's first REDD (Reduced Emissions from Deforestation and Degradation) project developed at scale and seeking registration from the benchmark voluntary carbon market registry, the VCS (Voluntary Carbon Standard)," said Kevin Whitfield, head of carbon at Nedbank Capital. "It effectively proves Africa can fight climate change while lifting up rural communities and protecting wildlife through accessing carbon markets."

According to the Intergovernmental Panel on Climate Change, Africa is expected to be among the regions worst hit by climate change, with its major economic sectors more vulnerable to current climate sensitivity than elsewhere in the world. This vulnerability is exacerbated by existing developmental challenges such as endemic poverty and limited access to capital. However, prospects for economic growth on the continent are being boosted through improvements in governance and policy, and the International Monetary Fund predicts that Africa's gross domestic product growth will bounce back to a rate of 4 percent in 2010.

"The carbon market provides a mechanism for linking Africa to the global green economy, while simultaneously conserving its rich natural heritage and safeguarding the livelihoods of its people," said Whitfield.

African carbon credits attract a premium as they generally have high environmental and social benefits, but they are extremely scarce, Whitfield said. According to the World Bank, fewer than 2 percent of registered UNFCCC Clean Development Mechanism (CDM) projects are located in sub-Saharan Africa.

"This project has been awarded gold level approval under the Climate Community and Biodiversity Alliance's (CCBA) forestry protection standard. This is seen as a milestone in establishing REDD in the global carbon marketplace," Whitfield said.

Wildlife Works Carbon is a new venture of Wildlife Works Inc., a leader in applying innovative market-based solutions to the conservation of biodiversity. Founded in 1997, Wildlife Works promotes wildlife conservation by protecting wilderness habitats, creating jobs, building schools and providing other economic benefits for those people who share their land and resources with wildlife.

Mike Korchinsky, founder and president of Wildlife Works, says Wildlife Works Carbon was established to help local landowners in the developing world "“ whether they are governments, communities, ownership groups or private individuals - to monetize their forest and biodiversity assets.

Wildlife Works established the approximately 80,000-acre Kenyan Rukinga Wildlife Sanctuary at the northern end of the corridor adjacent to Tsavo East National Park in 1997. The Kasigau Wildlife Corridor sits alongside Tsavo East and is nearly 500,000 acres of dryland forest and savannah grassland. The forest is under constant threat of subsistence farming, grazing, logging for fire wood, charcoal and hunting of bush meat.

"This project was designed to bring substantial benefits to local communities through education, job creation, environmental protection and direct financial rewards, while protecting precious biodiversity at the same time. It has met the most rigorous standard for ensuring communities and biodiversity benefit from climate change projects," Korchinsky said. "To date, it has delivered hundreds of jobs and four schools, setting a positive example for millions of Africans who have the potential to gain financial reward from REDD to boost the future of sustainable development in the face of climate change-related pressure to their livelihoods.

"We believe the global voluntary carbon marketplace is ready for carbon credits that the average consumer can relate to. Carbon credits that protect natural forests, endangered species and the livelihoods of Africa's rural communities will be massively appealing to organizations or consumers wanting to do their part by reducing their own carbon footprint," Korchinsky concluded.

Saliem Fakir, head of the World Wide Fund for Nature in South Africa added, "The indigenous forests of Africa are under constant threat as a result of human activities and climate change. Many of these types of forests cannot be found anywhere else in the world. Saving them should be an utmost priority.

"Rukinga and the associated Kasigau Wildlife Corridor project are world class examples of projects that are making a tangible difference to both communities and the environment, and it is innovative finance solutions, like carbon financing, which makes them possible. Both Nedbank and Wildlife Works are to be commended for their role in bringing this deal to fruition," Fakir said.

By purchasing some of the credits in addition to selling them on the global market, the initiative will contribute to Nedbank's own drive to be carbon neutral, putting it in the company of other well-respected financial institutions such as HSBC and Deutsche Bank.

For more information please visit www.nedbankgroup.co.za; www.nedbankcapital.co.za or www.wildlifeworks.com

Notes to the Editor:

About Nedbank Group
Nedbank Group, a subsidiary of the Old Mutual Group, operates as one of the four largest banking groups in South Africa. The company's ordinary shares have been listed on the JSE Limited since 1969.

Nedbank offers a wide range of wholesale and retail banking services through three main business clusters, namely Nedbank Capital, Nedbank Corporate and Nedbank Retail.

Nedbank's Green Credentials include:

• Dow Jones Sustainability Index membership - the world's premier performance benchmark for companies in terms of corporate sustainability. Included for fifth year. One of only 25 banks worldwide and three companies with primary listings in South Africa to be included on the index (only SA Bank). 2009: 78% (2008: 74%).


• JSE SRI Index "“ inclusion since 2004.


• South African Carbon Disclosure Project Leadership Index "“ ranked 1st in 2009.


• Financial Times "“ Emerging Markets Sustainable Bank of the Year for Middle East & Africa (2007 and 2008).


• Equator Principles "“ first African bank signatory (in 2005).


• Carbon Neutrality "“ announced intention to become 100% carbon neutral in 2009, first large South African corporate to do so.


• WWF Conservation Partnership


• UNEP FI "“ co-chair on the UNEP FI African Task Force.


• African Banker "“ Social Responsibility Award (2009).


• UNEP FI "“ signatory to official Statement on Climate Change and Copenhagen Communique.

Nedbank is represented on the following bodies both locally and internationally:

• Climate Neutral Network


• UNEP FI African Task Force


• UNEP FI Biodiversity & Ecosystem Services Work Stream


• UNEP FI Human Rights Work Stream


• United Nations Global Compact - 'Caring for Climate' Programme


• National Business Initiative Sustainable Futures Advisory Committee


• National Energy Efficiency Accord


• Banking Association of South Africa; Sustainable Finance Committee


• UNISA Climate Change Advisory Committee

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