Tag: climate change

The agriculture sector is vital for economic growth. It contributes 3% to GDP, supports 941,000 jobs, and generated US$13.2 billion in export revenue in 2023 – South Africa produces 10% of the global citrus production. But climate-induced changing weather patterns threaten the outlook for certain crop yields in 2024.

Like with most things around us, the global workforce of today is experiencing immense change. Workplaces are transforming at rapid rates, while new generations are entering the workforce and bringing with them a new outlook and work ethic.

South Africa's scorching summers are becoming the norm, not the exception. This changing climate is not just a weather inconvenience, but a growing threat to worker safety. To address the possible health and safety risks associated with climate change (such as heatstroke in construction or injuries during floods), health and safety committees and officers should consider incorporating climate-related hazard indicators and assess the hazard-specific vulnerability of workers, workflows, and their environments.

Having an established and well-communicated company purpose in place can be a powerful driver of positive change. This statement holds true in terms of a company’s broader social impact, but there is also a strong business case to be made for purpose-driven culture and as its value as a driver of employee engagement.

Climate change-induced extreme weather events have remained elevated across the globe in the last decade, proving disruptive to both economic and social activities. According to the global reinsurance broker, Aon, the 2023 economic losses due to natural catastrophes was 22% above the 21% century average – raising questions about the long-term affordability and sustainability of cover for vulnerable communities.

Although decarbonising an investment portfolio is a multi-faceted, multi-stage exercise, it needn’t be complicated. Adding the dimension of sustainability – in this case, decarbonisation – to your portfolio construction process does not mean changing your approach entirely.

Climate change poses risks to economies, companies, and investments. It is an important focus for us as active owners of assets on behalf of our clients. Many companies are carefully considering their exposure to climate risk and outlining their decarbonisation ambitions. What role can active ownership play in this, while also protecting and enhancing the value of investments?

Mining is a historically linear process – we take materials from the earth, make products from them and eventually throw them away as waste. With the intensification of climate change, environmental degradation, pollution – all products of linear economies – the mining industry needs to transition to a circular economy.

South Africa’s major banks registered resilient growth against difficult operating conditions and a complex macroeconomic environment. Combined headline earnings growth of 13.8% against FY22 to R113.2 billion, combined ROE of 17.6% (FY22: 17.1%), net interest margin of 458 bps (FY22: 430 bps), credit loss ratio of 102 bps (FY22: 82 bps), cost-to-income ratio of 52.2% (FY22: 53%), common equity tier ratio of 13.2% (FY22: 13.5%).

Corporate South Africa needs to explore the growing trend of linking executive compensation to environmental, social, and governance (ESG) performance, driven by the imperative of multi-stakeholder capitalism and heightened attention to sustainability issues.