Strategy and Management
The strategic case for sustainability
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The interconnections between economic, social and environmental aspects of sustainability should be firmly in the forefront of many people’s minds; and with the advent of King III and the enhanced expectations of stakeholders and shareholders, the issue is now being driven through a strategic mandate.The proposed introduction of Sustainability regulations and legislation will change the face of business
| The Climate Change Policy Green Paper sets the framework for the introduction of stringent regulations on carbon emissions for both the public and private sectors, stating a mandatory carbon emission report by 2013. The proposed introduction of a Treasury driven carbon tax will see many South African businesses challenged to survive the introduction of this tax. This is due to our heavy reliance on coal as a primary source of energy. The introduction of the King III Code on Corporate Governance has placed sustainability as the responsibility of the CEO’s of South African businesses and with the proposed implementation of the integrated report, the code will essentially force sustainability issues within the business to be dealt with transparently. |
| Business Impact | Client challenges | |
| Legislative and regulatory risks | Non-compliance can result in hefty penalties, or the closure of a business | Given the volume, organisations are not always aware of the impending legislative and regulatory risks and could miss the opportunity to provide inputs in the engagement phase of future legislation and regulation, which can directly affect future operations |
| Resource | Physical impact on resource intensive organisations (e.g. sourcing or types of raw materials) | Finding alternatives for energy intensive process, as well as for depleting natural resources |
| Talent | Sustainability is becoming increasingly important to talent, within or those considering joining organisations | The ongoing shortage of talent |
| Market | Increased barriers to trade in local and export markets | Diminishing market share / creating access points to competitors |