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Centre for Environmental Rights

Five South African banks hold 90.5% of the banking sector’s R5.65 trillion in assets

Bank assets include our deposits and investments. Some of those assets may be at risk if they are invested in highly exposed sectors.

Climate change can affect the financial health of borrowers and pose a credit risk in banks’ loan portfolios. This can have a knock-on effect on the financial system, and us. Without disclosure of the concentration of assets in carbon-related sectors, we are not aware of the extent of their risks.

Banks need to assess the extent of their exposure to climate-related risk and implement mitigation strategies to ensure the long-term stability of the financial services sector. Only Nedbank reports on the concentration of carbon assets in its portfolio of the five banks assessed in Full Disclosure 5.