Suren Naidoo
South African business needs to take climate change much more seriously. That’s the call by Durban Chamber of Commerce and Industry chief executive Andrew Layman.
He was speaking to The Mercury at a business presentation on Monday on the upcoming UN COP17 climate change conference, which takes place in Durban from 28 November to 9 December.
Layman said local business would face further cost pressures to be more environmentally responsive as the fight against climate change gained momentum.
“Despite the cost factor, every business needs to understand the importance of playing its part in reducing its impact on the environment. It is all about long-term sustainability of both the environment and businesses,” he said.
Layman said with the world spotlight on Durban and South Africa during the UN climate change talks, local businesses and industries would also be put under the microscope regarding what they were doing in mitigating and adapting to climate change.
“There will be a lot of expectations from climate change activists and business is seen as sometimes moving too slow on the climate change issue.
“Effecting change in attitudes takes time. Business must look at mitigation and adaptation to climate change not as a cost but as an investment. Like black economic empowerment in South Africa, it must be seen as investments in sustainability,” he said.
“Yes, we recognise that this could represent huge costs for business, but it is something we have to address. For example, it cost the PG Bison wood products factory in Pietermaritzburg about R20 million to deal with the issue of its emissions.
“There is going be an additional cost for business and we have to also ask if the banks are willing to finance these cost too,” said Layman.
“Business needs to realise that for sustainability on long term, there are cost savings by going green.
“Also, in places like Europe there is increasing pressure placed on business by consumers to go green. This trend has not yet hit South Africa, but it is coming and business needs to be aware of this.
“Frankly, by the time COP17 happens, South African business need to have put the issue of climate change high on their agenda.
“This includes budget considerations in addressing their impact on the environment and contributing to dealing with the global challenge of climate change,” he said.
Durban Invest CEO Lynette Ntuli who also spoke at the presentation, agreed with Layman that local business needed to up their understanding and resolve to deal with climate change.
“Yes, in some instances the business sector is not taking climate change seriously enough. It’s a challenge they need to take even more seriously, especially because we are hosting COP17.
“We need to use this as an opportunity to create more awareness and deal with climate change with more vigour,” she said.
Ntuli said the magnitude of the climate change issue would be brought home when Durban hosts climate change talks and local captains of industry needed to play their role.
She also said Durban was “underinvested” in the green economy and needed to use the event to boost the development of green industries locally.
“According to an Ernst & Young report, there is increasing investment by business in dealing with climate change internationally. A key reason for this in developed countries is because consumer demand is driving this change…
“One of the other things it highlighted was that company executives and boards need to play a leading role in dealing with climate change,” she said.
“Leadership needs to be taken by business on the issue of climate change. Business needs to innovate and respond even if there may be legislative uncertainty,” she said.