Pretoria - The newly launched Climate Change Policy Framework is expected to optimise the impact of state owned enterprises (SOEs) on reducing carbon emissions, and develop the green economy without compromising companies' financial viability.
Launching the policy on Thursday, Public Enterprises Minister Malusi Gigaba said under the framework, each state owned company will develop a detailed strategic plan in relation to climate change and green economy considerations in the way that the company operates.
"We adopted a proactive approach to ensure South Africa is playing a leading role in combating the global challenge associated with climate change.
"It is no secret that South Africa's industrial economy is energy intensive and coal dependent," said the minister.
South Africa is one of the 30 largest emitters of greenhouse gases globally with the bulk of emissions coming from the energy sector.
Gigaba said over time, it was expected that the framework would be integrated into the standard SOE planning cycle but for now, they should develop a format that is optimal for their individual circumstances.
Water and Environmental Affairs Minister Edna Molewa said she was pleased by the proactive step taken by the Department of Public Enterprises.
"I am encouraged by the steps taken in response to challenges of the potential impact of climate change. The framework is a demonstration of what cooperation can achieve. We are heading in the right direction," she said, adding that government recognised the challenge of climate change.
"The effects of it are actually real, they are here with us."
The policy, said Molewa, would guide the country's approach to climate change impacts and the country's transition to a climate resilient and low carbon, job creating and pro-poor green economy.
The launch of the framework was a milestone achievement, said International Relations and Cooperation Minister Maite Nkoana-Mashabane.
"The launch today is an important step to respond to climate change issues," she said, adding that climate change contributed to desertification.
Gigaba said it was government's intention through SOE to build "responsible global champions that understand their responsibility towards the sustainability of the world".
Additionally on Thursday, eight SOEs namely Denel; Transnet; Eskom; SAA; Broadband Infraco; Safcol and SA Express signed a commitment to the United Nations Global Compact (UNGC).
The UNGC is a call to companies everywhere to voluntarily align their operations and strategies with 10 universally accepted principles in the areas of human rights, environment and labour, among others.
"Today we are signing the framework onto the UNGC. We are aligning the work of our state owned companies with the Global Compact. It's strategic for South Africa to align its business and state corporations with the global compact," explained Gigaba.
