At FirstRand we view sustainable development and sustainable profit growth as complementary objectives and we see the interests of all of the Group’s stakeholders as coinciding in the long run. The Group’s two principal drivers for sustainable business practice are to ensure sustainable profit growth and to instil a sense of responsibility toward future generations among our stakeholders in the process. FirstRand’s growth potential is founded on the growth themes of the South African economy, namely favourable macroeconomic fundamentals, sound institutions for managing the economy, infrastructure spending, a fast growing black middle class and black economic empowerment (BEE). A reciprocal relationship exists between these fundamentals and the level of support that the Group’s activities provide for them.

Each year FirstRand’s activities generate value for the socio-economic and institutional contexts in which the Group operates and this value is created in proportion to profitability. In 2009 FirstRand generated R49 671 million for society through value accruing directly to its stakeholders. These impacts include the provision of R13 023 million in salaries and benefits for employees, the payment of R4 228 million in dividends to shareholders, the payment of R3 710 million in taxes to government and the payment of R26 186 million in claims and benefits to policyholders, with R2 524 million retained for future expansion and growth.

Each of these benefits is accompanied by quantitative and qualitative impacts which form part of the Group’s broader socio-economic impacts and are described in more detail in FirstRand’s integrated report and in the sustainability reports of FirstRand’s major operating divisions (First National Bank, FNB Africa, Rand Merchant Bank, WesBank, Momentum and OUTsurance).

As a financial services Group we recognise the importance of the direct and indirect impacts that our business activities have for the socio-economic, institutional and ecological contexts in which we operate. For this reason positive relationships with regulators, excellent corporate governance, effective management of risks and opportunities, robust debate of the business case and a culture of “traditional values, innovative ideas” ensure that the relationship between sustainable profitability and the aggregate welfare of our stakeholders remains positive over time. In addition to these constants we continually review and refine actions for managing the interface between financial and non financial performance. The following enterprise-wide actions have been identified for the coming year and apply to both local and international operations:

• Further integration of environmental, social and governance risk management processes into the Group’s audit, enterprise risk management and regulatory risk management functions
• Embedding environmental and social risk management processes into the operations of divisions dealing with project finance transactions
• Focusing internal non financial reporting for informing day to day operational management and strategy development
• Further developing our risk based approach to the integration of financial and non financial reporting
• Continuous improvement in the management of the Group’s internal ecology through advancing energy savings, waste management and carbon emissions reductions

In addition to these actions FirstRand will continually participate in the realisation of BEE objectives and will continue to invest in corporate social investment (CSI) activities.

BEE is a critical ingredient for sustained socio-economic transformation and the empowerment of previously disadvantaged people in South Africa. The year under review represents the final year of a five year reporting period for FirstRand’s performance against the transformation objectives set out in the Financial Sector Charter (FSC). From 2009 onward FirstRand will also report performance in respect of transformation objectives against the Department of Trade and Industry’s (dti) Codes of Good Practice (CoGP). Board level oversight of performance in respect of BEE objectives is provided by FirstRand’s Transformation monitoring committee.

CSI initiatives are implemented through the work of the FirstRand Foundation and independent corporate social investment consultants, Tshikululu Social Investment. We emphasise the fact that the work of the FirstRand Foundation is not geared toward winning business or public relations benefits, but is about making a real difference in people’s lives. During the last year the Foundation invested R 83 million in charitable grants across all 9 provinces in South Africa.

Like the generation of socio-economic and institutional value for our stakeholders, the continual creation of opportunities for BEE and CSI is proportional to profitability.

We recognise the numerous and significant challenges for our endeavour to create and ensure synergy between the interests of all of FirstRand’s stakeholders. At the same time we realise that in a modern economy these challenges are increasingly integral to effective management of our Group of businesses. It is this awareness that drives progress toward ensuring sustainable profitability while reinforcing the welfare of our stakeholders and contributing to sustainable development in the process.

The reports contained on this website document another stepping stone in our journey toward ecologically sustainable socio-economic development. We welcome your comments and feedback and we look forward to growing our business for the benefit of our common future, in this generation and the next.