Deputy Minister of Forestry, Fisheries and the Environment Bernice Swarts has encouraged business leaders to play a role in ensuring their organisations take measures to lower pollution and carbon dioxide (CO2) output as well as reduce waste.
“We encourage business leaders to play a significant role in ensuring their organisations better integrate environmental, social, and governance (ESG) principles into their value system and overall organisational strategy to fully benefit and harness the investment opportunities that lie ahead for the country,” Swarts said on Tuesday in Johannesburg.
Addressing the Annual ESG Africa Conference, the Deputy Minister said the discipline of ESG investing has become increasingly popular worldwide due to investors' growing emphasis on sustainable and responsible investment methods.
“Whilst it is essential that businesses understand the impact of their activities on the environment and society, it is no longer sufficient to focus solely on financial performance; investors and stakeholders now demand that companies adopt sustainable practices that consider the long-term impact of their operations.
“With its varied economy and abundance of natural resources, South Africa has become a major force in the ESG investment market. Good corporate governance requires an acknowledgement that an organisation doesn’t operate in a vacuum but is an integral part of society and therefore has accountability towards current and future generations,” Swarts said.
She acknowledged that long-term orientated investors need better information, including on environmental, social, and governance factors of businesses.
“South Africa needs to accelerate its pathway towards a more equitable, environmentally sustainable and low-carbon developmental trajectory; with an inclusive social protection system that can withstand the impacts of climate change and support a just transition to a sustainable future,” the Deputy Minister said.
She said South Africa is setting itself up to be a leader in green hydrogen, renewable energy, and sustainable industrialisation, due to its substantial stocks of critical minerals, plentiful solar and wind energy, and other resources.
“A just transition to a low-carbon economy will make South Africa’s economy more resilient and strengthen the country’s global competitiveness, which will create opportunities to reduce poverty, inequality, and unemployment.
“We must therefore address, how do we then effectively shift towards realising South African’s vision for long-term, just transition to a climate-resilient and lower-carbon economy and society. South Africa remains firmly committed to contributing its fair share to addressing the global climate crisis,” the Deputy Minister said.
She said South Africa is setting itself up to be a leader in green hydrogen, renewable energy, and sustainable industrialisation due to its substantial stocks of critical minerals, plentiful solar and wind energy, and other resources.
“In South Africa, where climate change, resource scarcity, and socio-economic disparities are pressing concerns, adopting sustainable practices becomes crucial. These practices can help reduce carbon footprints, conserve natural resources, and create healthier, more resilient communities,” Swarts said.
Numerous studies have highlighted the tremendous demands developing nations have in relation to climate change and the inadequacies and poor quality of current public climate finance flows.
Despite their extremely limited fiscal space and constricted economies, poor countries have continued to bear the costs associated with it, while they have contributed the least to the climate problem.
“Like the rest of the African continent, South Africa is vulnerable to water and food security, health, livelihood and infrastructural challenges due to climate change.
“In South Africa, where climate change, resource scarcity, and socio-economic disparities are pressing concerns, adopting sustainable practices becomes crucial. These practices can help reduce carbon footprints, conserve natural resources, and create healthier, more resilient communities,” the Deputy Minister said.
She said the pathways towards achieving the 2030 Agenda for Sustainable Development have been considerably altered by multiple crises.
The critical objective of "leaving no one behind" remains at risk due to the mounting inequalities, worldwide economic challenges, and financial shocks associated with COVID-19, which have made financing for sustainability even more challenging.
“Africa, which hosts most of the world’s poor, is on track to meet just 6% of the Sustainable Development Goals (SDGs) and has gone backwards on 17% of the SDG targets.
“If SDG investment needs are to be met by 2030, 24 trillion US Dollars of additional investment must be found for developing countries, including 8 trillion US Dollars only for Africa. Instead, developing countries today face the worst economic outlook and the most unfavourable financing conditions in decades,” the Deputy Minister said. - SAnews.gov.za
