In the wake of yet another accidental water contamination in the course of business activity, it is time companies plan for worst-case scenarios and implement controls that will prevent contamination, says Sustainable Development Forum at the Institute of Directors in Southern Africa (IoDSA) chairperson Karin Ireton.

She adds that governing bodies need to be alert to the importance of identifying and dealing with environmental and social risk in all their activities.

Her comments follow the spillage of toxic effluent at Willowton Oil, in Pietermaritzburg, more than a week ago, that has worked its way downstream into the Mngeni river and the Inanda dam.

The Department of Water and Sanitation has warned residents living upstream of the Duzi and Mngeni rivers, the Inanda dam and surroundings not to use water from the resource until further notice after the collapse of two tanks at Willowton Oil sent product flowing into the Baynespruit river through the stormwater drains.

“The contamination has already caused the death of thousands of fish, as well as livestock, and communities downstream have been advised not to use water from the river for any purpose until it is declared safe,” says Ireton.

She stresses that companies need to start fully integrating the costs of the effect of their operations on natural capital, such as water, wetlands and biodiversity, as well as the social impact on communities.

“Pollution such as has been seen in the Pietermaritzburg area is not only a breach of regulation but has a long-term and highly significant impact on aquatic life and surrounding communities,” Ireton notes.

“Organisations have both rights and responsibilities regarding society and the natural environment on which both depend,” adds IoDSA CEO Parmi Natesan.

Organisations, even those not obligated to certain committee responsibilities of King IV, should put in place a formal mechanism for overseeing and reporting on organisational ethics, responsible corporate citizenship, sustainable development and stakeholder relationships.

“The governing body bears ultimate responsibility for ensuring that effective plans are in place to mitigate risk and, if it materialises, to minimise its effects,” Natesan says.

“Organisations without such plans risk regulatory sanction and a potential fine, but the longer-term risk of a weakened social licence to operate could be even more harmful.”