http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.69Change: -0.02
R/$ = 10.96Change: 0.00
Au 1195.22 $/ozChange: -3.23
Pt 1225.00 $/ozChange: -4.50
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Jun 03, 2010

SA companies seek certainty on climate change policy – E&Y

Back
Copenhagen|Ernst|Sustainability Services|Clean Technology|Energy|Energy Sector|Product|Products|Services|Environmental|Jayne Mammatt|Loshni Naidoo|Mammat
||Energy|Products|Services|Environmental|
copenhagen|ernst-company|sustainability-services-company|clean-technology|energy|energy-sector|product|products|services|environmental|jayne-mammatt|loshni-naidoo|mammat
© Reuse this



The uncertainty around national climate change policy, regulations and timelines was negatively impacting on South African companies' response to climate change, said consultancy firm Ernst and Young (E&Y) on Thursday, after conducting a survey on the matter.

In a report, ‘Action amid uncertainty - the South African business response to climate change', E&Y said that all survey participants stated that national policies were crucial to guiding and shaping the company's climate change strategy and policy.

The South African Department of Environmental Affairs has stated that it would release the country's draft climate change policy by July 2010, after which a White Paper would be produced by the end of the year, with the ambition of getting the White Paper ratified by Cabinet in early 2011, to make it legally binding.

There was also uncertainty regarding climate change in the international arena, with no legally binding agreement having been reached at the global negotiations in Copenhagen in December 2009.

E&Y Climate Change and Sustainability Services associate director Jayne Mammatt said that regulation and policy were required to "focus the mind", and could also assist when trying to justify an investment in clean technology or climate change strategy to the board of a company.

E&Y also recommended that business engage with government in order to understand future goals and strategy of the country, as well as engaging with other businesses to leverage cost-saving initiatives in the energy sector particularly.

Despite recent challenging economic conditions and regulatory uncertainty, the E&Y report found that global executives said that the climate change agenda would significantly affect business performance and strategy over the next few years.

The survey found that 80% of the South African companies surveyed planned on increasing spending on climate change initiatives between 2010 and 2012.

"Although corporate leaders are aware of the risks and potential opportunities that climate change may have on their organisations, only 10% are likely to spend more than 5% of revenue on climate change initiatives, indicating that there is still some uncertainty on how to mitigate climate change related risks," said Mammat.

Energy efficiency was still the key driver for many organisational activities including expenditure, as all organisations selected energy costs as the motivating factor for driving climate change activities, while 90% stated that future investment would be in energy-efficient initiatives.

SUPPLY CHAIN CONCERNS

Greening the supply chain, as well as product innovation, or redesign, were highlighted as critical areas within organisations that still needed to be effectively addressed.

"There appears to be very limited engagement with the supply chain on climate change issues, yet 80% of respondents identify the supply chain and procurement areas as key for the organisation's climate change initiatives to succeed," noted Mammatt.

She added that the lack of focus in these areas could minimise the impact of climate change initiatives, as well as see potential revenue generation opportunities arising from operational excellence or product innovation, slipping away.

In the survey, companies noted that sources of supply for cost-effective environmental products were few, or unknown.

Another challenge that was highlighted, was that supply-chain buy-in was not a simple process, particularly when considering the potential extent of the supply chain, and because the lack of control makes implementation difficult.

E&Y Climate Change and Sustainability Services manager Loshni Naidoo emphasised that effective engagement with supply-chain stakeholders would ensure results.

The survey highlighted a number of other findings and challenges and made certain recommendations on how to overcome these challenges in the South African context.

The report was informed by the responses from ten South African companies, which were extracted from an independent, third- party survey of 300 global corporate executives from 16 countries, representing companies with revenues of more than $1-billion in yearly revenue.

 

Edited by: Creamer Media Reporter
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Environment News
ON THE MOVE The towers for the turbines necessitate their transportation in three or four segments
Updated 6 hours ago International heavy-lift and plant relocation specialist engineering firm Vanguard provided the transportation and erection services for nine 3 MW Sinovel wind turbines for the Van Stadens wind farm project, in the Eastern Cape, says Vanguard MD Bryan Hodgkinson. The...
WIND POWER Aggreko provides support services across the full life-cycle of both on- and offshore wind farms
Updated 6 hours ago In its endeavour to support the country’s drive to propel the use of wind farms as sources of generating green renewable energy, temporary power and temperature-control solutions supplier Aggreko supplied nine 60 kVA generators to the precommissioning of the wind...
Updated 6 hours ago The launch of multinational consulting services company WorleyParsons’ new global advisory business Advisian in sub-Saharan Africa will see petrochemicals, hydrocarbons, mineral resources and oil and gas companies being advised on more prioritised decision-making for...
More
 
 
Latest News
The Central Energy Fund (CEF) has backtracked on its decision to appoint Tshepo Kgadima as a director and chairperson of national oil company PetroSA following the public “controversy” dogging the new appointee. Nonhlanhla Jiyane had now been appointed as interim...
South Africa’s Finance Minister Nhlanhla Nene
South Africa’s Finance Minister Nhlanhla Nene has emphasised the role of the private sector in delivering the 51 Programme for Infrastructure Development in Africa (Pida) projects, collectively valued at $68-billion, being prioritised for implementation by 2020....
This year, 82 companies met the JSE’s Socially Responsible Index (SRI) requirements relating to environmental, social and governance (ESG) policies and management practices, compared with only 72 companies in 2013, as companies become more aware of how they...
More
 
 
Recent Research Reports
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
 
 
 
 
 
This Week's Magazine
Updated 6 hours ago As the City of Ekurhuleni continues its bid to develop the largely industrialised metropole into the continent’s first aerotropolis, executive mayor Mondli Gungubele has committed the city to creating a predictable, stable and enabling business environment in which...
Updated 6 hours ago While Ford Motor Company of Southern Africa (FMCSA) did not have “significant issues” with power supply in Gauteng, it was a different story in the Eastern Cape, said FMCSA and American Chamber of Commerce in South Africa president Jeff Nemeth earlier this month....
Updated 6 hours ago In 2000, exports into Africa from South Africa represented less than 5% of the turnover of Federal Mogul Motorparts Africa, with sales largely centred around Zimbabwe, Zambia, Malawi and Mozambique. Today, African exports represent 30% of sales, with trade expanded...
Updated 6 hours ago The Malawi government has launched a $50-million project to upgrade the Kamuzu barrage, on the Shire river, an outlet of Lake Malawi, which is used to control the flow of water from the lake to the lower Shire area. The project will run from this year to 2017 and...
Updated 6 hours ago   Our new Technical and Vocational Education and Training (TVET) Colleges will replace the Further Education and Training (FET) Colleges which have served us for the past twenty years.  The buildings will be the same and most of the staff will be the same but as the...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks