SA companies plan for climate change

The majority of South African companies plan to increase their spending on climate change initiatives in the next two years, a survey by Ernst & Young finds.

The survey titled "Action amid uncertainty: the SA business response to climate change" found that 80 percent of the ten large companies surveyed planned to increase spending on climate change initiatives between 2010 and 2012.

All the companies selected energy costs as the motivating factor driving climate change activities, while 90 percent said future investment would be in energy efficient initiatives.

"This is not surprising given the current energy security and increased energy prices that the country is experiencing," said Jayne Mammatt, climate change and sustainability services associate director at Ernst & Young.

There appeared to be very limited engagement with the supply chain on climate change issues, yet 80 percent of respondents identified the supply chain and procurement areas as key for the organisation's climate change initiatives to succeed.

The lack of focus in these areas could minimise the impact of climate change initiatives. It could also see potential revenue generation opportunities arising from operational excellence or product innovation slipping away, Mammatt said.

She said all survey participants had stated that national policies were crucial to guiding and shaping the company's climate change strategy and policy.

"The current climate of uncertainty around national policy, regulations and timelines is negatively impacting companies' response to climate change."

The survey also found that transparent reporting was gaining momentum, as 70 percent of respondents reported greenhouse gas data in an annual corporate social responsibility or sustainability report.

According to the survey, it was critical to have the support of executives and all other interested parties for the success of any climate change related activity.

"Many organisations have taken the stance that substantial effort will be required to raise stakeholder awareness and understanding of climate change related issues."