https://www.engineeringnews.co.za
Africa|Building|Business|Environment|Resources|Sustainable|Environmental
Africa|Building|Business|Environment|Resources|Sustainable|Environmental
africa|building|business|environment|resources|sustainable|environmental

Conference discusses importance of defining ESG, establishing good governance

3rd October 2024

By: Sabrina Jardim

Creamer Media Online Writer

     

Font size: - +

While environmental, social and governance (ESG) has risen in prominence globally, the concept has become too broad, opening it up to uncertainty and criticism, Genesis Analytics partner Ryan Short said in a keynote at this year’s ESG Africa conference, on October 1.

He argued that ESG, therefore, needs to be repositioned and encouraged companies to be clear when defining ESG in relation to risk and opportunity.

He said integrating ESG into the core of business strategy can help to “revive” ESG. This involves defining ESG as risk and opportunity, defining ESG in the context of business in Africa, as well as building a business case rather than a moral case.

Additionally, he noted the importance of acknowledging that change comes from the top. He posited that companies should set up a board committee, such as a social and ethics committee, as a start.

“You need to take a business case to an [executive committee] and you need to make people see that there is value at risk here and there's also huge opportunity. That will shift ESG from this cost burden and compliance thing on business to ‘wow, this is an opportunity for us’,” Short said.

Additionally, he noted that integrating ESG into business strategy should also include linking executive pay to holistic value created or destroyed.

“We don't want ESG to become a tick-box exercise. We want it to become a real value add to the company and for the company to become a real value add to society by using this positive impact lens, as well as a risk lens.”

Meanwhile, during a panel discussion on governance as a driver of ESG, Webber Wentzel partner Garyn Rapson said governance structures offer an insight into how a company makes its long-term decisions, which impact the environment and society.

He noted that better governance can result in increased profitability and reduced risk, giving investors better risk adjusted returns over the long term.

“Companies with good corporate governance are managed in a way to create long-term sustainable value for all of its stakeholders, and they have structures in place to support an independent board,” he said.

In this vein, Good Governance Africa research and programmes director Dr Ross Harvey argued that governance is a necessary but insufficient condition for environmental and social performance to be mainstreamed into the consciousness of companies.

He explained that governance is about the authoritative allocation of resources, and good governance is about allocating resources in a way that serves citizens and stakeholders, adding that integrity plays an important role in this regard.

While Alexforbes governance, legal compliance and sustainability executive Carina Wessels agreed that governance is a key driver in ESG, she emphasised the interdependency and interrelationship of ESG concepts, stressing the need for holistic action rather than viewing ESG as siloed concepts.

Additionally, Harvey discussed the importance of having a competent and intentional board to deal with the risks presented by social and environmental factors.

“It is quite complicated, but so much of this comes down to board composition and the way in which shareholders, stakeholders hold the board accountable and how the board is designed,” he said.

Meanwhile, during her keynote address, Conscious Companies CEO Brenda Kali argued that, while governance plays an important role, conscious leadership was needed to drive ESG impact and ethics.

Kali expressed the need for governance driven by ethical principles, rather than just compliance.

“That is the need of our society, a desperate need to transform the consciousness of leaders, evoking a natural sense of ethics, honour and nobility.

“The path ahead may not be certain, but with leaders who are willing to be conscious stewards, responsible, ethical decision makers and champions of integrity, we can navigate these unprecedented times with a renewed sense of optimism and purpose that would then set into motion a global collective will to build a better world for us all, and that's governance worth talking about,” she added.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

Comments

Showroom

WearCheck
WearCheck

Leading condition monitoring specialists, WearCheck, help boost machinery lifespan and reduce catastrophic component failure through the scientific...

VISIT SHOWROOM 
Actom image
Actom

Your one-stop global energy-solution partner

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Magazine round up | 08 November 2024
Magazine round up | 08 November 2024
8th November 2024
Value-adding titanium dioxide pigment under development
Value-adding titanium dioxide pigment under development
6th November 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.103 0.157s - 192pq - 2rq
Subscribe Now