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ENVIRONMENTALClimate change, transparency,

responsiveness

GOVERNANCEAccountability, disclosure,

responsibility

SOCIALCommunity, rights, people

ESG South Africa is the communication space of choice for role players that operate in the fields of environmental sustainability or social and corporate governance.

It provides a comprehensive, go-to reference guide for public and private enterprises and individuals to showcase the strides they are making in this field.

The publication is the official publication for COP17, RIO+20 and COP18 in Qatar.

Organisations choose to profile in ESG as part of their communication strategies and to highlight these business critical issues to peers and the broader public.

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ESG SOUTH AFRICA

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ISSUE 4WATER FOR LIFE | PPP WORKING TOGETHER | AFRICA’S MEGA CITIES DURBAN’S DUBE TRADEPORT | HOW TO DRIVE SUSTAINABILITY KEEPING THE LIGHTS ON | FUTURE OF MOTOR INDUSTRY | JSE SRI LEADERS

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c o n f e r e n c e & e x p oMEGA CITIES AFRICA

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c o n f e r e n c e & e x p oMEGA CITIES AFRICA

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CONTENTSForeword by Minister Maite Nkoane-Mashabane 5

Foreword by Minister Edna Molewa 6

A-Z Listing of Featured Clients 8

Editor’s Letter 11

Contributors 11

Thought Leader: Simon Gear 12

SA TRENDSBRIEFING: News you need to know 14

REVIEWSPRODUCTS 18CARS 20BOOKS 22

KEY FEATURESMEGA CITIES Africa’s Mega Cities (and Smart Cities) in the making... 28

ENVIRONMENTALSUSTAINABILITY

Sustainability 101: Making sense (and cents) of sustainability 36Embedding sustainability is critical to every enterprise 50

ENERGYKeeping the lights on 64

WATERWater for life 68

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MOTORHighway of power 76

SOCIALJSE SRI INDEXFlagship driver of sustainability 82

COACHINGHow coaching drives excellence 84

PUBLIC PRIVATE PARTNERSHIPSWorking together 86

TRANSPORT & LOGISTICS

After decades, the big spend 94Dube TradePort: Business with an environmental conscience 99

GOVERNANCEINTEGRATED REPORTINGReal rationale ensures integrated reporting 106

SECTOR REPORTSMining 53Agriculture & Food Security 57Energy Generation 60Energy Efficiency 62Future Cities 93Financial 105

CREDITSChairmanRichard Fletcher

Publisher Van Fletcher EditorShaheema Albertyn-Burtonshaheema.albertyn@topco.co.za Senior DesignerJayne Macé

Business Development ManagerRoss Maltmanross.maltman@topco.co.za

Business Development ExecutivesCharmaine DochertyJason KuttelRuvahn Crowley

Traffic CoordinatorRaeesah McLeod

Editorial AssistantSiphesande Mtongana

Human Resources ManagerJanine Salick

Financial ManagerHaley Fletcher

Website ManagerGreg Du Plessis

Web CoordinatorDarren Rolls

DistributionIngrid JohnstoneUrsula Davids PrintersPaarl Print Contact DetailsTopco Media (Pty) LtdBree Street Studios, 17 New Church Street, 2nd Floor, Cape Town 8001PO Box 16476, Vlaeberg 8018Tel: +27 (0)86 000 9590Fax: +27 (0)21 423 7876Email: info@topco.co.zaWebsite: www.topco.co.za

DisclaimerAll rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior written consent of Topco Media (Pty) Ltd Reg. No. 2007/002190/07. While every care has been taken when compiling this publication, the publishers, editor and contributors accept no responsibility for any consequences arising from any errors or omissions.ISBN: 978-0-9921778-3-6

ESG-contents.indd 3 2012/11/19 10:07 AM

The power behind renewable energy

The IDC is the biggest supporter of tenders awarded in the

Department of Energy’s Renewable Energy Independent Power

Producers (REIPP) programme.

In the first round of REIPP tenders, the IDC participated in twelve

successful bids, and seven more in the second round. The green

energy bids include wind power, concentrated solar power,

photovoltaic and small hydro projects.

Over the next five years, the IDC will make available R25 billion

to fund projects related to green industries.

The IDC is identifying and providing funding for many projects

that will contribute to building South Africa’s industrial capacity

and creating jobs. Visit www.idc.co.za to find out more.

Chillibush8304IDC

To apply online for funding of R1 million or more go to www.idc.co.za

Telephone: 086 069 3888Email: callcentre@idc.co.za

11.indd 1 2012/11/14 4:11 PM

FOREWORD

E S G S O U T H A F R I C A 5

MINISTER MAITE NKOANA-MASHABANE IT IS A YEAR SINCE WE HOSTED AND PRESIDED OVER THE UNITED NATIONS FRAMEWORK CONVENTION ON CLIMATE CHANGE (UNFCCC) 17TH CONFERENCE OF PARTIES (COP17) AND THE 7TH CONFERENCE OF THE PARTIES SERVING AS THE MEETING OF THE PARTIES TO THE KYOTO PROTOCOL (CMP7).

From Durban to Doha, we hand over the baton, proud and confident that we have done it to the best of our abilities, and for the interests of all. It was in the final stages of this dramatic conference that we were able to agree on an ambitious deal, which significantly advances the global climate change agenda.

This conference was a reaffirmation of a common vision for global cooperation on climate change. Essentially, it was aimed at containing the increase in global average temperature below 2 degrees Celsius above pre-industrial levels. Accordingly, we have since recognised that the ambition and scope of current commitments are inadequate.

According to the UN Environment Programme’s Emissions Gap Report, even if the most ambitious current emissions targets are met, this will exceed what science requires by an estimated 5 gigaton (Gt) of CO² equivalent emissions.

It was with this in mind that we have been able to strengthen the UNFCCC mitigation regime by agreeing on a second commitment period under the Kyoto Protocol, covering at least the five-year period from 2013 to 2018. The Durban outcome is a historic milestone and indeed sets precedence for us to work harder to achieve more. In terms of the mitigation effort, this COP has been characterised by renewed commitment and willingness on the part of all parties to move beyond entrenched negotiating positions characterised by unenthusiastic speechifying and engage with the requirements of development in a carbon constrained environment in a more open and flexible manner. This represents a significant and hopeful step forward.

It is the Durban Platform that has expressed commitment by calling for world leaders to, firstly, act together to save the planet; secondly, promote human development; and thirdly, to achieve universal

prosperity and peace. An additional spin-off has been an unprecedented level of domestic mobilisation around climate issues.

We must all be proud – as government and the people of South Africa – for the efforts we have made in delivering a successful COP. As a country, it must be our fervent view that maintaining a solid long-term climate regime is an approach that seeks to balance both climate and development imperatives. We must therefore wish the people and government of Doha all the very best as they prepare to host this all important conference.

Minister of International Relations and CooperationCOP17/CMP7 President

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MOVING FORWARD FROM COP17 TO COP18 TO A GREEN ECONOMY

THE 17TH SESSION OF THE CONFERENCE OF THE PARTIES (COP) TO THE UN FRAMEWORK CONVENTION ON CLIMATE CHANGE AND THE 7TH MEETING OF PARTIES TO THE KYOTO PROTOCOL, HELD IN DURBAN LAST YEAR PROVED TO BE PARTICULARLY SIGNIFICANT. The outcome was historic and precedent-setting as, under South Africa’s leadership, the conference was characterised by a new willingness to move beyond merely a negotiating position towards committing to a deal with far more legal force than has ever been experienced or agreed to. Even China changed its initial position, and now, both our developing and developed partners have committed to reducing emissions. This deal will be adopted by 2015 and become fully operational no later than 2020. We also managed to get countries to agree to a second commitment period under the Kyoto Protocol, which will run until 2018.

This agreement significantly advances the global effort needed now to address the global climate change challenge. It sets a new long-term pathway for the development of a fair, ambitious and legally binding future multilateral and rules-based global climate change system which can balance climate and development imperatives.

It also ensures the fair participation of all countries, both developed and developing, in the increased global effort to reduce greenhouse gas emissions, now and in the future.

These are huge steps forward, not only in saving the planet, but also in trying to save our people. The extreme weather we’ve been experiencing around the world – like famine in East Africa and the recent flooding affecting parts of the East Coast of North America – is indicative of climate change and climatologists expect these to increase in frequency and severity as the years pass.

We went to the COP17 negotiations, shortly after Cabinet’s approval of our National Climate Change Response Policy, which presents our country’s vision and strategic approach for achieving an effective climate change response, and a just transition to a climate resilient and lower carbon and job-creating economy and society.

Our priority this year was to make significant strides in implementing the policy. In consultation with all stakeholders, we coordinated a process to define South

6 E S G S O U T H A F R I C A

EDNA MOLEWAMinister of Water and Environmental Affairs

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FOREWORD

E S G S O U T H A F R I C A 7

Africa’s desired emission reduction outcomes, based on an in-depth assessment of mitigation potential in key sectors, as well as an analysis of the mitigation contributions that each sector can make to the national and global effort.

We have initiated a process to develop long-term adaptation scenarios to evaluate how changes in the climate may affect key climate – sensitive sectors, such as water, agriculture, forestry and biodiversity in South Africa, and identify adaptation strategies to prevent the undesirable consequences of climate change, and thereby increase South Africa’s resilience to climate change.

The ocean plays a significant role in understanding climate, climate variability and the impact of the ocean on our economic infrastructure, as well as the livelihoods of communities within coastal cities and towns.

Being surrounded by the Atlantic, Indian and southern Oceans, presents South Africa with a unique opportunity and responsibility to use our understanding of ocean, weather and climate processes to achieve operational forecasts to ensure the safe use of our waters. This will help to protect human life, our economy and also our marine biodiversity.

To address climate change mitigation strategies, the South African Weather Service’s Global Atmosphere Watch station at the Cape Point has in the past 32 years formed a crucial component of the global network that maintains long-term records on trace-gases and greenhouse gases in the atmosphere.

Sustainable development and the road to Rio As concerns for capacity of the earth’s resources to sustain the current unsustainable production and consumption patterns grow, the global efforts to reshape the sustainable development architecture to better respond to this challenge and the emerging multiple financial and economic challenge are becoming increasingly urgent.

Faced with the real threat of climate change impacts, sustainable development becomes more pertinent and significant from the South African and worldwide perspective.

Our strategic objective of ensuring that sustainable development remains central in our planning and execution was further enhanced last year with the approval of the National Strategy on Sustainable Development (NSSD) by Cabinet.

The NSSD sets out the country’s sustainable development priorities and actions over the next five years and puts us on a solid policy platform.

“In June this year, we convened in Brazil at the United Nations Conference on Sustainable Development – Rio+20 rallied under the themes of “Green Economy within the context of Sustainable Development, Poverty Reduction

and Reform of International Governance Framework to achieve and support our development goals.”

We especially look forward to the global elaboration of a green economy in the context of sustainable development, and taking cue from that, we will chart the way forward for the environment sectors’ contribution to a just transition to a pro-poor and job-creating green economy in South Africa.

The green economy and jobsIt is incumbent upon us to debunk the myth that environment management hinders development, by positioning the sector as a major contributor to job creation and the fight against poverty.

To quote the late great Wangari Maathai: “The environment and the economy are really both two sides of the same coin. You cannot sustain the economy if you don’t take care of the environment because we know that the resources we use, whether it is oil, energy, land … all of these are the basis in which development happens. And development is what we say generates a good economy and puts money in our pockets. If we cannot sustain the environment, we cannot sustain ourselves.”

The South African government has identified the green economy as one of the key elements in the new growth path, as well as in the industrial policy action plan.

The transformation of our industries towards the building of a green economy has many facets. It is, in the main, about creating new labour-absorbing industries that also mitigate impacts on the environment.

This green economy offers substantial opportunities for job creation and development in the environmental goods and services sector, particularly in biodiversity, waste and natural resource management services.

However, the skills required to realise the job potential in the sector are scarce and students with relevant qualifications are often unable to bridge the gap between education and employment requirements.

The incubation method, which we will utilise in the sector for the very first time, is a unique way to tackle the bridging of this gap.

Through the South African National Biodiversity Institute – SANBI – we will manage the process of placing a maximum of 800 unemployed school-leavers and graduates mostly from rural areas in biodiversity jobs for an incubation period of two and a half years.

Our challenge as a nation in a developing state context is to find a balance between economic growth, social development and environmental sustainability.

We need to be mindful of the fact that without the integrity of our natural systems, there will be no sustained long-term economic growth or life.

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AAfrisam ......................................................... 25

Agricultural Research Council ..................... 58

BBarloworld .................................................... 41

Business Connexion .................................... 63

DDepartment of Environmental Affairs ........... 42

Department of International Relations & Cooperation .............................................. 26

Department of Water & Sanitation ............... 70

Department of Water Affairs ........................ 74

Department of Trade & Industry .................. 104

Development Bank SA ................................. 109

Dube TradePort ............................................ 98

EEskom........................................................... 10, 61

HHarmony Gold .............................................. 54

IIndustrial Development Corporation (IDC)......................................... 4

International Association for Impact Assessment (IAIA) ........................... 110

JJuta Company .............................................. 23

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Northern Telecom ......................................... 90

PPaarl Media .................................................. 92

SSouth African Bureau of Standards (SABS) ........................................ 112

State Information Technology Agency (SITA) .............................................. 32, 56

TTlokwe City Council ..................................... 73

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ENVIRONMENTALClimate change, transparency,

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responsibility

SOCIALCommunity, rights, people.

ESG South Africa is the communication space of choice for role players that operate in the fields of environmental sustainability or social and corporate governance.

It provides a comprehensive, go-to reference guide for public and private enterprises and individuals to showcase the strides they are making in this field.

The publication was the official publication at COP17 and RIO+20 and is planned for COP18 in Qatar and beyond.

Organisations choose to profile in ESG as part of their communication strategies and to highlight these business critical issues to peers and the broader public.

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EVERY LITTLE BIT HELPS.

Minister Malusi Gigaba

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EDITOR’S LETTER & CONTRIBUTORS

CONTRIBUTORS

Kerry Dimmer is a freelance journalist passionate about Africa and its challenges; about writing; about balance. She claims to be a deep thinker and wants to know everything but realises that nothing can be absolutely known.

Believing that all things and every person has a story to tell, Kerry will tell it.

Jocelyn Newmarch is a specialist freelance business writer who still believes she can change the world. This may explain why she is currently studying for an MA degree in development studies. She thinks she was Italian in a

former life and is currently cooking her way through Giorgio Locatelli’s Made in Sicily. (Anything to avoid writing up her thesis).

Dave Tootill is a director of the Southern African branch of the Supply Chain & Logistics Group, which has its headquarters in Dubai, www.sclgme.org, and a member of the Regional Development Committee. His

consulting firm, ESCM Technology, www.escm.co.za, specialises in supply chain management assignments. His experience includes years as a practitioner in manufacturing and mining in the UK and Zambia, leading a management consulting practice division at one of the Big 4, and in-depth knowledge of the global ERP software industry. Read other articles at http://escmtech.blogspot.com

Gavin Du Venage is a Western Cape-based business writer specialising in commodities, mining and energy.

Jimmy Thomas has spent his long working life as a journalist and public relations executive. After flying with the Fleet Air Arm in the closing stages of WWII he settled in Johannesburg, working for the Sunday Express and a trade-magazine

group. He joined The Star in 1952 and served as chief sub-editor and production editor in the 1960s. Moving into public relations he founded a company in 1977 which handled the media and liaison affairs for some of the biggest national and international companies during difficult times in the apartheid era. He left the company in 1998 and moved to Cape Town where he established a consultancy focusing on business and finance in Africa’s emerging markets.

BUZZING WITH POSSIBILITY

When we look at our fast depleting resources, we realise there is only one thing left to do – to change our habits. The reality is harsh. DeltaEnviro.org says some of our most serious environmental problems are the ways in which we use energy. With more than three-quarters of South Africa’s energy coming from coal, this increases air pollution with medical studies showing amplified levels of respiratory diseases in polluted areas.

Businesses are certainly coming to the party in terms of ‘greening’ their operations. Dube TradePort has made a striking presence this year with plans to develop a ‘green’ business precinct incorporating a 12ha urban hub by planting 987 indigenous trees, drastically offsetting its carbon footprint (pg 99). Others have adopted a less visual means, but certainly not insignificant, by implementing CSI initiatives, skills development and a more sustainable way of doing business.

While we all walk the path to a more sustainable South Africa and more responsible ways in which we live, this issue espouses on how to embed sustainability into your business (pg 50) as well as providing you with a complete guide to sustainability (pg 36).

Public private partnerships are becoming ever popular, read about how government and private businesses partner to work to the greater good of all (pg 86). 2012 was quite an auspicious year with world leaders coming together to discuss a global plan of action for sustainable development at the World Summit on Sustainable Development (WSSD) in Rio (June) and Doha (November). 2013 has big plans up its sleeve with an even greater focus on how to sustain our world. Events to watch out for include: Sustainable Energy, Sustainable World (10 March); Sustain & Build Africa (9-10 April); Green IT Summit Africa (15-18 April); and the exciting Mega Cities Africa Conference and Expo (29-30 May).

Let’s work together to make the change.

The possibilities are endless,

Shaheema Albertyn-BurtonEditor

EDITOR’S LETTER

Shana Genever is a Journalist and Junior Editor. She has a BA in Film and Media and a Journalism Certificate which she obtained under duress in 2011. She has a son, the reason she goes to work for a boss everyday and

absolutely loathes cabbage. Shana lives in Lakeside with her fiancé and plans to take over the world, one lifestyle page at a time.

Tara Lerner studied business at the University of Calgary (Canada), and has worked as a copywriter, advertising executive and public relations officer before embracing freelance journalism. As founder and owner of green tara, she is

also an entrepreneur trying to make a difference by making products that promote sustainable living.

E S G S O U T H A F R I C A 1 1

“All is connected... no one thing can change by itself.” – Paul Hawken

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Simon Gear is a professional public speaker, presenting on a range of environmental, health and economic issues. In addition to anchoring South Africa’s premier environmental TV show, 50/50, Simon provides weather and science coverage for Talk Radio 702 and 567 Cape Talk. Simon is a best-selling author and also writes a wide range of columns.

Simon is a director at Kijani Green Energy, a company specialising on sustainability and project finance. Here he focuses on air quality consultancy and general sustainability. He can be contacted at simon@kijanigreen.co.za.

BIOGRAPHY:

thought leadership.indd 2 2012/11/19 9:05 AM

EARLIER THIS YEAR, PROFESSOR TIM NOAKES CHANGED MY LIFE. I HAVE ALWAYS BEEN A HUGE FAN OF TIM’S. His work in sports science has created fields of human discovery that weren’t even there before he started. Not many researchers can lay claim to that.

Recently, Tim has courted notoriety among dieticians by advocating a low-carb, high protein diet. In response to the howling of the nutritionists, his rather trenchant observation is that any scientist who has presided over an epidemic the size of the western world’s battle with obesity, should perhaps consider re-examining their understanding of the subject at hand. I couldn’t agree more.

I’ll leave the discussion of the diet and its effects for another time but note this: ridding my diet of refined grains and sugar has helped me lose 12 kilograms and has returned my body to an athleticism last experienced around my 21st birthday.

By necessity, eating little or no bread, pasta or potatoes has increased my consumption of meat and salad. The salad isn’t a problem, as between the grocer and our own veggie garden, we are amply provided for, but I am well aware of the environmental impacts of meat consumption and it has given me some pause. Do I have the right to advocate a diet that is more harmful to the planet than the starch laden habits that I have left behind? The answer, in a nutshell, is a resounding “Yes”. Not only do I believe that by focusing on protein (animal or otherwise) and vegetables we will all be substantially healthier, it is also increasingly clear to me that the planet may get a fighting chance too.

The first point to recognise is that eating a low carb diet means eating less bulk and more fresh food. Both of those things have to be a step in the right direction for the people of the world, rich or poor. Even in a country with as large a wealth gap as South Africa’s, the prevalence of obesity among the urban poor is striking. Whereas in the West, poor communities live on over-processed foods and cheap takeaways, in Africa, our poor are over-reliant on such staples as refined maize meal and white sugar. The preparation may be less convenient but the end result is the same: a diet guaranteed to spawn a host of lifestyle illnesses while simultaneously ensuring weakened

immunity from the infectious diseases that sweep our sub-continent.

The issue of bulk is an interesting one. While I would agree that refined carbs are, pound for pound, the cheapest food around, it is also clear that a mixed diet of a wide range of food is satisfying on around half the volume. Volume on the plate is a habit, not a necessity.

With that decrease in volume comes a very real possibility of greater food efficiency and affordability. It isn’t practical to grow your own wheat, maize and rice, but every backyard garden could grow enough of one or two high value crops to keep a block in beetroots for weeks. Bartering and trade could leave everyone in the community with a wider variety of foods than they could ever afford under the current system.

But humanity’s real challenge is finding enough protein. Part of the reason that protein has a bad rap is because we are horribly inefficient about harvesting it. The by-catch from sea fish is appalling and the conversion ratios from grain to usable chicken or beef isn’t as good as it could be. Folk like Jonathan Drew are tackling the issue enthusiastically by looking for ways to grow commercial chicken and fish using as much recycled protein as possible (think fly larvae grown on offal). It may not be as romantic as the idealised Farmer Brown ads of the late 80s, but should it work, it could go a long way to ensuring that being poor isn’t a sentence to a lifetime of shoddy food.

Which leads me on to sugar. We produce more tons of sugar globally than the next three crops (wheat, maize and rice) combined. Sure, sugar yields close on 10 times the tonnage per hectare than can be expected from the grains but that is still a sizeable area (about the size of England and Wales combined – 200 000km2) dedicated to a crop with what amounts to negative nutritional value. The more refined sugar you eat, the unhealthier you are.

To make matters worse, sugar is a low maintenance crop that thrives in tropical and riverine areas, the same ecosystems that usually contain the highest biodiversity. The environmental impact of the sweet stuff far outstrips its footprint. It’s time to stop.

I’m tired of the idea that eating well be the preserve of the wealthy and fastidious. Changing the conversation from enough food to the quality of food could very well lead us to surprising solutions for problems we haven’t even fully appreciated yet.

KICK THE WHITE STUFF

E S G S O U T H A F R I C A 1 3

SIMON GEAR | THOUGHT LEADER

thought leadership.indd 3 2012/11/19 9:05 AM

TOP 2012 ESG TRENDS~

uTough times put the squeeze on sustainabilityConsumers can expect to take it on the chin as governments slash budgets for agencies meant to protect them from the social and environmental fallout from corporate activities. With the world’s economy still struggling to find its feet, the money, and the will, to enforce rules will be eroded, says Linda Eling Lee, Global Head of MSCI ESG Research, in her latest crystal-gazing take on what to expect over the coming 12 months.

vValue for moneyCompanies must expect harder questions from interest groups about their ability to deliver value. Fat executive salaries and soaring profits will come under closer scrutiny, not just in the much-maligned banking sector, but increasingly in other sectors too. This is especially true of companies that make plenty of money but do little to create employment.

wArab spring hangoverExpect the man to push back. Countries that watched anxiously as the Arab Spring was propelled along by Twitter, Facebook and other social media, will equally make more use of technology to monitor their people. The IT sector could easily find itself dragged into this, as companies find their products used for darker purposes than originally intended, by repressive governments.

xUsing it and losing itTwo thirds of the world’s countries are burning up natural resources faster than they can be replaced. Investors concerned with long-term competitiveness and sustainable business models will increasingly pass over the worst offenders when choosing new destinations.

yPricing pollutionGovernments themselves are raising the cost of pollution. Tighter emissions legislation worldwide is making it expensive to be a carbon-heavy industry. As a result, companies will spend more on becoming efficient, adopting newer technologies and operating methods.

zTastes like chicken – sort ofNothing gets people more excited than the safety of what they put in their mouths. With food scares ranging from

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NEWS YOU NEED TO KNOW

contamination to carcinogens making headlines almost daily, companies are going to have to spend more on quality testing, and monitoring anyone who participates in their chain of production – growers, distributors, warehouses and retailers.

{Render unto CaesarNobody likes a shirker, which is precisely what the public suspects many of the world’s top companies are doing when it comes to paying their fair share of tax. Profits these days depend as much on loopholes and tax havens to boost the corporate bottom line as sales do. But with increasing scrutiny and a tightening up on regulations, investors will pressure companies to disclose tax strategies more fully. This will give a better picture of the quality of the business, and also warn of potential risks should tax laws change.

|Drill baby drillTime was oil and gas came from a well, most likely in a hot dry country where camels wandered freely. These days however, energy is produced in all sorts of unconventional ways, such as hydrolic fracturing, or fracking. Because of intense public debate around the issue, regulations will be tightened up with a noose-like grip on the energy sector. Gas, now dirt cheap, is likely to become more costly as extraction grows more expensive in order to meet tighter rules. As a result, shareholders in energy companies will want to take a closer look at how well regulatory requirements are managed.

briefing.indd 2 2012/11/14 2:58 PM

FOOT OFF THE GAS

~uTeleconference instead of travel. There’s no more pointless business activity than groups of office workers trooping off to airports, so they can gather in an anonymous hotel and do what can be done for a fraction of the financial and environmental cost with current technology.

vReview your supply chain. Make sure you know where the stuff on your desk comes from. Source as many goods as possible locally, or from environmentally responsible suppliers. You may even wonder if you really need those yellow post-it notes. Send an e-mail instead.

wBannish bottled water for clients. Use in-house filtration systems and drink tap water.

xSwitch from incandescent to compact florescent light bulbs. Compact florescent lighting uses about 75 percent less energy than archaic light bulbs and last much longer. The fluorescents cost more, but they will eventually pay for themselves due to lower energy bills.

yUse indigenous plant species to landscape. They need less watering and are locally grown, so no unnecessary shipping. Remember, green plants are also a good way to offset carbon emissions.

IT’S WHAT YOU KNOWCreating digital profiles of consumers has become a standard practice for large companies. The trouble is they are not terribly good at keeping this information safe. Cyber attacks, such as the one that saw millions of account users of Sony’s Playstation have their details published online, can be devastating to consumer trust in a brand name. Companies can also be hit by large-scale litigation from injured parties following a loss of data.

The same could be said of too aggressive information gathering. Privacy is becoming a raw nerve for consumers, and company data-collecting activities can result in a backlash from angry customers.

Perhaps the most significant trend for the coming year, therefore, is that corporations are going to make greater investments in data security and devote more resources to its management.

BRIEFING

E S G S O U T H A F R I C A 1 5

WAYS TO REDUCE YOUR BUSINESS’ CARBON FOOTPRINT

"Conflicts in water stressed regions will be an increasing feature for businesses as they bump up against the needs of the people."

}To the barricadesWe’re no strangers to angry hordes downing tools and picking up banners to protest their working conditions and wages. Small consolation that we are not alone; as workers become more tech savvy, they are taking their protests global, from China to Chile. For brand-name companies that find themselves accused of running sweatshops and abusing workers, this trend reflects both an operational and reputational risk.

~Water, water everywhere – er, no there’s notFew resources have the potential for conflict as does the wet stuff. In Texas this year, losses following the worst drought in a century cost US$5-billion; another in China’s wheat growing districts pushed up the world price of grains. Big users – industrial companies, agribusiness will find themselves in conflict with communities over the use of this scarce resource. Conflicts in water stressed regions will be an increasing feature for businesses as they bump up against the needs of the people. Unless sustainable water strategies are incorporated into operating strategies, investors are in for a tough and expensive ride.

"Two thirds of the world’s countries are burning up natural resources faster than they can be replaced."

briefing.indd 3 2012/11/15 5:03 PM

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zIf you need to fly, take a direct flight. Your impact is reduced when you take one flight, as opposed to hopping on a couple or more passenger jets to reach your final destination.

{Unplug appliances. Cell phone chargers, laptops, computers, printers – there's a whole list of items that should be unplugged when not in use. Use a power strip for groups of electronic items. One flick of the switch and it's all off.

|Keep your car. If your older-model car is in good condition, you're better off keeping it. Even hybrids create a big footprint when they're built, so consider driving that old clunker for a little while longer. Use more eco-friendly modes of transport when possible – and telecommute.

}Don't go to the office at all. You burn up fuel getting there and back. Resources are used providing you with a desk and computer. Why not let everyone work from home at least one day a week?

Ethical consumerism means the cash in your wallet is more than just the stuff that buys a better lifestyle. It is also a vote that is cast each time you head for the mall.

Plenty of products are marketed as green. For shoppers who want to use their money ethically, this presents a dilemma – how to separate the advertising spin from the genuine article.

"Green consumers are highly commended for their efforts," says Peter Townshend, Managing Director of Ethical Living. "These consumers have taken significant steps in the right direction to choosing to become part of a growing group of ethical consumers.”

‘Going green’ is not enough on its own. Consumers should be wary of a range of factors that come into play when shopping. “The environmental impact of a product is indeed important to consider, but for a truly ethical purchase, consumers should be considering other social and political factors and the ethical status of the company behind the product."

Townshend suggests the following strategies:Positive buying: Favouring ethical products including Fairtrade, organic and animal-friendly products, as well as ethical labels such as FSC (Forest Stewardship Council), Vegan Society and MSC (Marine Stewardship Council) for sustainable fishing. Positive buying also means supporting local farmers markets to the benefit of the local community.

Negative purchasing: Stay away from brands that do not live up to ethical values. Products tested on animals, clothes and electronic goods made in sweatshops, for instance. In this regard, Google is your friend. Do some research before making decisions. Company-based purchasing: Check out the ethical record of the companies behind the products you like. Again, there is plenty of online research to guide you. Thanks to modern technology, there’s no hiding corporate sins.Holistic approach: Considering the ethical record of both the product and the company behind the product to evaluate which product is the most ethical overall, a process made easy by Ethical Living's guides.

Spending our rands with companies that are progressive and ethical, and keeping them from those that are not, Townshend notes, can bring about significant social and environmental change. The humble shopping trip can become a powerful weapon in the hands of consumers. Purchasing power can force companies to be more sustainable, ethical and accountable. As such, ethical consumerism takes into account the policies of corporate companies on a number of factors including environmental reporting, climate change, pollution and toxins, animal testing, factory farming, human rights, Fairtrade, genetic engineering and irresponsible marketing.

SHOPPING WITH A DIFFERENCEETHICAL SHOPPERS USE PURCHASING POWER TO MAKE A DIFFERENCE.

~Offer vegetarian meals in the canteen. Cutting out meat has a large impact on carbon emissions. The emissions and resources needed to raise animals for food are so much higher than for raising vegetables that a person eating a lacto-ovo vegetarian diet can save about one ton of carbon emissions each year.

"Ethical consumerism means the cash in your wallet is more than just the stuff that buys a better lifestyle."

briefing.indd 4 2012/11/15 5:00 PM

Wp: The PV modules peak power at maximum solar radiation under STC.

Generation price: The cost of production of electricity by the power utility of a specific region.

Distribution price: The cost of the distribution of electricity from the presiding municipality to the end consumer.

Inverter: The inverter electronically converts Direct Current (DC) power into Alternating Current (AC) power and is required for grid-connected solar power systems. • String inverters are the most common type of inverter for residential and small commercial PV systems. • Central inverters are used for very large PV systems.

PV Module: Commonly called a 'solar panel', a PV module is composed of multiple solar cells that are electrically connected to increase the total power output and are encapsulated in tempered glass for weather protection and ease of handling.

PV: Photovoltaic

Supplied by SolarWorld Africa

TERMINOLOGY Yield: The amount of electricity generated by a system over a period of time.

Grid parity: The point at which means of generating electricity from alternative energy produces power at a levelised cost that is equal to or less than the price of purchasing power from the grid. Reaching grid parity is considered to be an important point in the development of new sources of power, the point at which it becomes a contender for widespread development without subsidy support.

Off-grid: Solar power systems which are not connected to an electricity network. The electricity produced is consumed or stored directly on site (so-called stand-alone systems).

kWh: The abbreviation for kilowatt-hours, a unit of energy. One kWh represents a 1 000 watt load operated over a period of one hour – that's the amount of energy an average plasma TV uses. Electricity rates are most commonly expressed in cents per kilowatt hour.

Grid-tied system: A grid-connected solar electric system generates its own electricity and feeds its excess power into the utility grid for later use. Grid-connected solar electric systems are eligible for many incentives and rebates.

Net metering: Net-metering allows the solar electric system to send excess electricity back through the electric meter to the utility. Your utility will bill you for the net (kWh used – kWh generated). While most utilities will not pay you cash if you generate more than you use, many will carry forward a credit towards your next bill.

Auto-production: Production of electricity for a consumer’s own use on a single premise. This arises where an electricity consumer has an onsite generator to provide a portion of their electricity needs. This onsite generator is not operated as a backup generator at times of grid outage – rather it displaces imports from the grid on a day-to-day basis.

E S G S O U T H A F R I C A 1 7

"Considering the ethical record of both the product and the company behind the product to evaluate which product is the most ethical overall."

"‘Going green’ is not enough on its own. Con-sumers should be wary of a range of factors that come into play when shopping."

briefing.indd 5 2012/11/16 8:52 AM

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reviews.indd 4 2012/11/17 12:57 PM

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PRODUCTS | REVIEWS

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PROOF SUNGLASSES

E S G S O U T H A F R I C A 1 9

reviews.indd 5 2012/11/17 12:58 PM