With climate change, resource scarcity and socioeconomic disparities facing South Africa, adopting sustainable practices can help reduce carbon footprints, conserve natural resources and create healthier, more resilient communities, said Forestry, Fisheries and the Environment Deputy Minister Bernice Swarts.

Speaking at this year’s Environmental, Social and Governance (ESG) Africa conference on October 1, she pointed out that pathways to achieving the 2030 Agenda for Sustainable Development have been considerably altered by multiple crises.

She added that issues such as global economic challenges and financial shocks owing to Covid-19 had made financing for sustainability even more challenging.

With this in mind, she noted that Africa was on track to meet just 6% of the Sustainable Development Goals (SDGs) and had regressed on some of the SDG targets.

She explained that, if SDG investment needs were to be met by 2030, $24-trillion additional investment must be found for developing countries, including $8-trillion for Africa.

“Instead, developing countries today face the worst economic outlook and the most unfavourable financing conditions in decades,” she expressed.

Swarts thus highlighted the importance of a just transition to a low-carbon economy in making South Africa’s economy more resilient and strengthening its global competitiveness, thereby helping to reduce poverty, inequality and unemployment.

“We must therefore address how we effectively shift towards realising South Africa’s vision for a long-term, just transition to a climate-resilient and lower-carbon economy and society.”

Given its varied economy and abundance of natural resources, Swarts noted that South Africa had become a “major force in the ESG investment market”.

She noted, however, that in addition to financial performance, investors and stakeholders now demanded that companies adopt sustainable practices that considered the long-term impact of their operations.

Hence, in addition to complying with regulations, Swarts said South African businesses could improve their competitiveness and reputation by accurately reporting information about their sustainability policies and ESG performance.

Swarts highlighted that public-private partnerships (PPPs) could help drive sustainable development, address challenges and help to fully unlock the potential of ESG and sustainability investing in South Africa.

“We encourage business leaders to play a significant role in ensuring their organisations better integrate ESG principles into their value system and overall organisational strategy to fully benefit and harness the investment opportunities that lie ahead for the country.

“South Africa needs to accelerate its pathway towards a more equitable, environmentally sustainable and low-carbon developmental trajectory; with an inclusive social protection system that can withstand the impacts of climate change and support a just transition to a sustainable future,” said Swarts.