Aug 17, 2012
Firm identifies sustainability megaforces that will affect businessBack
SECURITY|Africa|KPMG|Resources|Security|Water|Africa|South Africa|Security|Building|Energy|Food|Food Security|Security|Services|Environmental|Neil Morris|Security|Water
© Reuse this
The firm highlights that decoupling human progress from the use of resources, as well as environmental decline, is a central challenge. This challenge will also be one of the greatest sources of future success.
In its report, ‘Expect the unexpected: building business value in a changing world’, released in February, KPMG identified ten sustainability megaforces that will affect businesses between now and 2035.
The ten megaforces are deforestation, climate change, energy and fuel, material resource scarcity, water scarcity, population growth, wealth, food security, urbanisation and the decline of the ecosystem.
“Wealth is a key driver for many governments. Many aspects of South Africa’s National Development Plan are geared towards growing our middle class,” he says.
The global middle class is predicted to grow by 172% between 2010 and 2030. The challenge for businesses will be to serve this new middle-class market at a time when resources are likely to be scarcer and more costly.
“For example, if someone moves from a low-income household to a higher-income household, the person will inevitably start changing his or her diet.
“On a low income, the person will maintain the staple diet of the country he or she lives in but, as soon as the person moves up the income scale, he or she will require more water and food, placing increased strain on food security,” he points out.
Morris adds that this will likely increase the inflation of food prices to between 70% and 90% by 2030.
He reiterates that many people are striving to become wealthier.
“I do not disagree that wealth is a way out and a key leverage to solving our social challenges but this is highly interconnected to many other challenges that we face,” explains Morris.
Role of Businesses
It is also important that these policies are informed by fact-based research. In the absence of this, policies may be poorly designed and have unintended consequences.
A detailed analysis of carbon in one’s business allows for an informed discussion with National Treasury on the proposed carbon tax for industry.
Morris believes that it is important for KPMG to engage on a one-on-one basis with its clients to understand carbon better in order to reduce the carbon emissions in industry.
“It’s all about trying to find the right balance of instruments, which may include carbon tax, that will change the behaviour of industry to reduce carbon emissions,” he concludes.
Edited by: Chanel de Bruyn© Reuse this Comment Guidelines (150 word limit)
Other Green Industries News
Recent Research Reports
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...
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.
Real Economy Insight: Road and Rail 2014 (PDF Report)
This six-page brief covers key developments in the road and rail industries over the past 12 months, including details of South Africa’s road and rail network and prospects for both sectors.
This Week's Magazine
South African State-owned defence industrial group Denel has announced its fourth consecutive year of profits. The group's results for the financial year 2013/2014 were recently announced at its head office in Centurion, south of Pretoria. Revenues grew by 17%, net...
There is little opportunity for JSE-listed infrastructure company Group Five to grow shareholder value in the domestic market, says CEO Mike Upton. He says value can still be found in the private sector, in the renewable and industrial power sector, as well as in...
The National Association of Automobile Manufacturers of South Africa (Naamsa) has announced the event dates of the 2015 Johannesburg International Motor Show (JIMS). The event will take place from October 14 to October 25, 2015, at the Johannesburg Expo Centre, Nasrec.
UK engineering support services provider Babcock is set to deliver the largest order of global truck manufacturer DAF’s truck tractors in Southern Africa to bulk carrier road-based logistics company Ngululu Bulk Carriers (NBC), with 133 trucks to be delivered in...
Digital radio communications in the African local government space can open up the world, but have many challenges to overcome, notes integration and migration of legacy radio communications infrastructure with digital mobile radio company Emcom Wireless head of...
Next ArticleOrganisation says efficiency initiatives a success