Growing acceptance of Climate Change!

But SA businesses must understand their impacts better

There is a growing acceptance and acknowledgement by governments and businesses about the impacts of greenhouse gas emission (GHG) on our climate, yet there is still a lot of work to be done to reverse the increasing emissions we have seen since the industrial age began. Environmental sustainability has been in the spot light and it has become everyone’s obligation to rehabilitate the environment.

This according to Jayne Mammatt, senior manager, Governance & Sustainability at Ernst & Young who says that in the past a lot of attention has been given to industries that have been identified as the main culprits in the pollution of air and water such as mining and oil & gas. Retail and financial industries seemed to have gone under the radar and were in denial of the environmental impact they had.

“All companies need to understand their emissions and that of their business partners. Green house gas emissions from the burning of, for example, fossil fuels are causing the earth’s climate to change and warm. Effects of climate change can be seen now such as extreme weather conditions that have been battering different parts of the world. Scientists are now predicting the ice cap at the North Pole will not reduce by 40% by 2050 as originally predicted, but will be non-existent in 15-20 years,” she says.

Mammatt says that companies must realise that understanding, measuring and reducing their carbon footprint not only allows them to play an important role in becoming part of the solution to the global warming phenomenon, but can prove to be a cost cutting exercise in the long run and beneficial for the company’s image.

“If a company is perceived in a positive light, such as being environmentally conscious or socially aware, it can be viewed as an attractive business partner. Company’s often view initiatives such as using recycled paper, embarking on reforestation projects and using energy efficient products as an expense instead of seeing it as a reputational investment,” she adds.

Mammatt says that environmental issues were once a peripheral aspect of most businesses and their corporate reporting but have since moved into the mainstream accounting and reporting system.

“By fully integrating corporate social responsibility into the way a company does business it can sustainably enhance shareholder value. Long-term sustainable business development requires a paradigm shift towards creating shared value to the society, economy and environment in which corporations operate,” she says.

She says that change is already being championed by the public who have more than before become more conscientious about their living and purchasing habits. The retail industry, for example, has started to cater for consumers who desire environmentally friendly products such as hybrid cars and products that are clearly certified as environmentally friendly.

She suggests that South Africa must follow its international counterparts and start proactively participating in Clean Development Mechanisms (CDMs) which is “one of the flexible mechanisms under the Kyoto Protocol which provides for industrialised countries to invest in emission-reducing projects in developing countries and to use (part of) the resulting ‘certified emissions reductions’ towards their own compliance with the emission reduction targets set forth by the Kyoto Protocol.”

“There are few CDM projects in the country but there is still lot of opportunity for local businesses to grasp the idea of CDMs and clean up now before emission reduction targets are set. By allowing developed nations to invest in emission-reduction projects, it’s a win-win situation because the country’s emissions are reduced at no expense and cleaner and more efficient technology is installed, while the developed nations get their ‘certified emissions reduction’.”

Mammatt concludes: “Everyone must contribute to climate change and must be part of the solution. Blaming big business is not a solution. A more strategic approach to environmental issues needs to be adopted. It is imperative to act immediately or mother Earth will suffocate.”