A panel experts recently underscored the critical importance of climate change governance for businesses and governments worldwide in a webinar hosted on April 17, 2024, by Creamer Media Webinars in collaboration with ESG Africa Conference.

The session, which was moderated by ESG Africa Conference co-founder Wendy Poulton, provided insights into the evolving landscape of climate governance and the challenges and opportunities it presents.

Governing body Chapter Zero Southern Africa Mark Kaplan emphasised the significant shift in business governance over the past two decades towards stakeholder inclusion, enabling more effective action on climate change. He highlighted the need for comprehensive understanding and integrated approaches to governance in addressing the urgent climate crisis.

Independent business movement National Business Initiative acting head of environment Alex McNamara highlighted how climate change has transitioned from an environmental concern to a critical economic issue, affecting global competitiveness and driving both commercial opportunities and costs of inaction.

“This underscores the urgency for businesses and governments to prioritise climate change governance due to its significant financial and strategic implications,” he noted.

Meanwhile, Industrial Development Corporation (IDC) Principal Specialist for Sustainability, ESRG and Impact Lwandle Mqadi shared her insights on the actions taken by the IDC to address climate change.

“The IDC's efforts to align with responsible investment policies and adapt to changing business models emphasises the importance of partnerships and learning from small, medium and micro enterprise (SMME) initiatives,” she explained.

Further, McNamara discussed the role of investor pressure in driving disclosure requirements, highlighting the importance of governance in addressing climate risks and opportunities.

The panel also delved into the readiness of boards and executive committees to incorporate Task Force on Climate-Related Financial Disclosures- (TCFD-) requirements into International Financial Reporting Standards (IFRS), particularly regarding scenario analysis. While acknowledging the challenges posed by complexity, the panel emphasised the need for organisations to align climate change considerations with their strategic objectives and prioritise sustainability within their governance structures.

The discussion also focused on the role of policy and regulation in driving sustainability in Africa. Poulton raised concerns about boards' preparedness for TCFD compliance, while Kaplan emphasised the role of personal liability for board members in governance matters. Mqadi highlighted the significance of policy, particularly South Africa's Climate Bill, and advocated for collaboration between the public and private sectors.

The panel also noted the challenges and opportunities for SMMEs in addressing climate governance in Africa, where Poulton emphasised the need for policy integration and implementation, with McNamara advocating for an ecosystem-based approach to drive local economic development and foster social inclusivity. This underscores the importance of collaboration between governments, corporations and SMMEs to drive sustainable development in Africa.

All of the panelists agreed on the urgency of climate change governance and the need for organisations to adapt and collaborate effectively. As climate change continues to pose significant challenges globally, addressing governance structures becomes paramount for driving sustainable development and mitigating risks.