Linda Ensor
20 November 2008
Cape Town — The private sector had been slower than some of its overseas counterparts in appreciating the consequences of climate change for business, Environmental and Tourism Affairs Minister Marthinus van Schalkwyk said yesterday.
He was marking the launch of the second annual South African Carbon Disclosure Report. The carbon disclosure project is an international initiative that was extended to SA last year for the first time. It involves an internationally recognised process of corporate reporting on climate change impacts.
This year the project, which is managed by the National Business Initiative, was extended to include the top 100 companies on the JSE. Last year's report covered only the JSE top 40.
Van Schalkwyk said there had been a siz able increase in the number of companies disclosing their greenhouse gas emissions -- more than 75% of responding companies.
"While in several instances this disclosure is only on a partial basis, there is nevertheless an emerging commitment to improved monitoring and reporting on greenhouse gas emissions," he said.
Van Schalkwyk stressed that it would not be "economically, environmentally or politically sustainable" for SA to continue to increase its emissions along a business-as-usual path, but business did not fully appreciate the business implications of climate change.
"To tackle the challenges ahead, definitive leadership within both the public and private sectors will be required, particularly given competing social and economic priorities, comparatively high per capita greenhouse gas emissions and high vulnerability to the impacts of climate change."
Relatively few companies (23%) disclosed specific, company-wide greenhouse gas emission reduction targets, and most of those that did have emissions targets had focused on reducing their emissions intensity, rather than striving for a reduction in absolute emissions.
Also, there were some important gaps remaining in companies' governance systems for climate change, and in the nature and extent of executive board oversight.
Van Schalkwyk said carbon-intensive companies dominated SA's disclosed greenhouse gas emissions. The three largest emitters (excluding Eskom) were Sasol, BHP Billiton and Anglo American, which accounted for two-thirds of the total reported greenhouse gas emissions of those JSE-listed companies that responded.
Electricity consumption was responsible for 41% of the total reported emissions.
Van Schalkwyk said companies that tracked, reported and managed their emissions would be in a position to understand their future risks and vulnerabilities and be prepared for an era when reporting of greenhouse gas emissions would become mandatory.
"Not only does proper tracking and reporting make business sense, but it is only when companies know their carbon footprint that they can properly plan to mitigate.
"It is also an indicator of good corporate governance, of accountability, and of taking co-ownership for the future," he said.
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