Tag: Sustainable Development Goal (SDG)

Strong revenue growth enabled headline earnings growth of 20% to R14bn, an increase in ROE to 14% and a CET1 ratio of 14%

The world is emerging from the COVID-19 pandemic, more fragmented and further away from the more equal and equitable iteration imagined in 2015 when the Sustainable Development Goals (SDGs) were conceptualised. As we hurtle at seemingly lightning speed towards the 2030 deadline to achieve these goals, the urgency is palpable.

South Africa was the first country in the world to grant the tax concession in Section 37D of the Income Tax Act to protect biodiversity, which provides a sustainable financing solution. Biodiversity is a key element of tackling climate change, and it is an area in which South Africa has demonstrated flexibility and innovation.

It is a common belief that 'data is the new oil', and Information Technology (IT) supports almost every modern-day transaction, from the delivery of electricity and water to banking, shopping, manufacturing, and correspondence. The confidentiality, integrity, authenticity, and accessibility of information that enable these operations must be ensured to avoid the failure of related and unrelated information, devices, and activities. These failures expose businesses and individuals to the risk of reputation, income, assets, and the very endurance of the business or organisation and as a going concern. As a result, like sustainability, cybersecurity is now a critically important 'C-suite' issue.

As we navigate the turmoil and disruption caused by the COVID-19 pandemic, all eyes are on keeping each other safe while preparing for a post-pandemic world. The custodians of this post-pandemic future are young people – and when one considers that the official unemployment rate for people under 35 in South Africa is 46.3%, the urgency of meaningful and sustained youth empowerment cannot be understated.

Fund managers and institutional investors can stimulate the domestic economy and create inclusive jobs by investing more in mid-market companies. Mid-market companies have cemented their position in the sectors of the economy they operate in and have great potential from both an economic and job growth perspective.

Artificial Intelligence (AI) is a means to enhance human well-being and freedom. AI might just be a tool in the global drive to bring sustainable development in line with the UN Agenda 2030. Globally there is a rapidly growing divestment movement that is seeing more businesses moving away from investing and engaging with companies that are not embracing the ESG (Environmental, Social and Governance) criteria.

One year after COVID-19 was declared a pandemic, CEOs are voicing record levels of optimism in the global economic recovery, with 76% of global business leaders predicting that economic growth will improve in 2021. Coming off of a global recession (3.5% decline in world GDP) and a GDP contraction of 7% in SA, a record share of CEOs are optimistic about global economic growth this year.

Investment managers and analysts who focus on long term operational business risks, and select stocks based on those considerations, will by default be creating environmental, social and corporate governance (ESG) portfolios and will record overperformance over time.

An interview with Barry Bredenkamp, General Manager Energy Efficiency, South African National Energy Development Institute (SANEDI), and Dr Ivor Blumenthal, CEO, ArkKonsult, discussing the Green New Deal (GND) and how harnessing its benefits can help grow the economy and create jobs in a post-COVID-19 world.