LAUNCH
OF SECOND ANNUAL SOUTH AFRICAN CARBON DISCLOSURE
REPORT, JOHANNESBURG, 19 NOVEMBER 2008 -
EMBARGO: WEDNESDAY 19 NOVEMBER - SPEECH
DELIVERED BY MARTHINUS VAN SCHALKWYK, MINISTER
OF ENVIRONMENTAL AFFAIRS AND TOURISM - I
am proud to be here, with the National Business
Initiative, to launch the second round of
the South African contribution to the Carbon
Disclosure Project (CDP). Those businesses
that have contributed have recognised that
climate change and its impacts are the biggest
environmental challenges we are facing in
this century, and they have decided to be
part of a collective response. They understand
that it would not be economically, environmentally
or politically sustainable for South Africa
to continue to grow our emissions along
a business-as-usual path.
To tackle the challenges ahead, definitive
leadership within both the public and private
sectors will be required, particularly given
competing social and economic priorities,
comparatively high per capita greenhouse
gas (GHG) emissions and high vulnerability
to the impacts of climate change.
This second CDP survey has found encouraging
evidence that South African companies are
beginning to appreciate and respond meaningfully
to this challenge:
1. This year, the CDP was extended to include
the Top 100 companies on the Johannesburg
Stock Exchange (JSE). This means that the
sample size more than doubled since last
year’s report, which only included the JSE
Top 40.
2. South Africa’s second CDP generated a
response rate of 59%.
3. There has been a sizeable increase in
the number of companies disclosing their
GHG emissions. More than 75% of responding
companies disclosed their GHG emissions
this year. While in several instances this
disclosure is only on a partial basis, there
is nevertheless an emerging commitment to
improved monitoring and reporting on greenhouse
gas emissions.
4. In a significant change on last year’s
responses, there appears to be much greater
awareness of, and engagement in, government
policy on climate issues. This builds on
the Long Term Mitigation Scenarios (LTMS)
process, which entailed the engagement of
numerous senior executives across different
sectors.
5. A collaborative approach to climate solutions
is developing. Acknowledging that an escalating
price on carbon will become part of the
future business environment, several companies
are beginning to work with government, stakeholders
and industry peers on national policies
relating to climate change.
Notwithstanding these encouraging developments,
there remains room for improvement:
a. Relatively few companies (23%) have disclosed
specific, company-wide GHG emissions reduction
targets; and most of those companies that
have emissions targets have focused on reducing
their emissions-intensity, rather than striving
for a reduction in absolute emissions. If
South Africa’s emissions are to peak and
then decline, companies will need to demonstrate
a significantly higher level of ambition.
b. On a related issue, while most responding
companies have developed, or are implementing,
formal systems for measuring and reporting
on their GHG emissions, some important gaps
remain in their governance systems for climate
change, and in the nature and extent of
executive board oversight on this issue.
c. Carbon-intensive companies dominate South
Africa’s disclosed GHG emissions. The three
largest GHG emitters (excluding ESKOM) –
Sasol, BHP Billiton and Anglo American –
account for two-thirds of the total reported
GHG emissions of responding listed companies
in South Africa.
d. Electricity consumption constitutes 41%
of the total reported GHG emissions. It
is evident that South Africa’s current electricity-generation
mix has a profound impact on the majority
of corporate emission levels.
Although there have been some encouraging
improvements since last year, there are
still indications that mainstream South
African investors do not fully appreciate
the business implications of climate change,
or that they are exerting meaningful influence
on the corporate sector on this issue.
South Africa has remained sheltered from
emission reduction targets thus far under
the Kyoto Protocol, due to its status as
a developing economy. And, as a result of
this, our private sector has been slower
than some of its counterparts in learning
how it will be impacted by climate change.
This engagement with the CDP comes not a
moment too soon. We need to be prepared,
as the future climate regime will see South
Africa having to commit to a substantial
deviation of its emissions trajectory below
baseline - in a measurable, reportable and
verifiable way.
It is hoped that climate change awareness
through the CDP will facilitate appropriate
decisions amongst those companies involved.
New opportunities and incentives could emerge
for those who are pro-actively positioning
themselves to face the changing political
and economic landscape in a carbon-constrained
world.
Not only does proper tracking and reporting
make business sense, but it is only when
companies know their carbon footprint that
they can properly plan to mitigate. It is
also an indicator of good corporate governance,
of accountability, and of taking co-ownership
for the future.
Government is determined to continue to
take responsible action on climate change.
I am therefore looking forward to working
even more closely with business in building
on the work of the LTMS and the CDP. It
is only by working in partnership that we
will be able to make the kind of progress
that is required by the latest scientific
findings on climate change. Responding early
and decisively is the biggest contribution
that business can make.
To conclude, I would like to commend the
NBI and Incite Sustainability, the authors
and sponsors of the Report and the companies
who have the vision to see that the CDP
can help in unlocking new opportunities,
new competitive advantages in new products,
technologies and processes, and a shift
to greater efficiency in existing operations.
And at the same time, I would like to take
this opportunity to challenge those companies
that do not yet track, report and manage
their emissions to join these efforts. It
will place them in a position to understand
their future risks and vulnerabilities in
a changing global and domestic business
environment and to be prepared for an era
in which mandatory reporting of GHG emissions
will become part of the landscape.
I thank you.
Enquiries: Ronel Bester
+ More
2010 ACCOMODATION REQUIREMENTS
ON TRACK
MEDIA STATEMENT BY THE
OFFICE OF MARTHINUS VAN SCHALKWYK, MINISTER
OF ENVIRONMENTAL AFFAIRS AND TOURISM - FOR
IMMEDIATE RELEASE: FRIDAY 21 NOVEMBER 2008
- Marthinus van Schalkwyk, Minister of Environmental
Affairs and Tourism, yesterday convened
a meeting of tourism stakeholders to discuss
accommodation for the 2010 FIFA World Cup.
The Minister said the various parties involved
held a constructive and engaging meeting.
The parties included the 2010 FIFA World
Cup Organising Committee, MATCH, SA Tourism,
the Tourism Business Council, the Hotel
Industry and the Tourism Grading Council.
The meeting recognised the central role
of accommodation, and the tourism industry
in general, in delivering a world cup event
that will leave an enduring legacy for tourism
in our country. He once again reiterated
the fact that South Africa has enough accommodation
available for the 2010 FIFA World Cup.
“MATCH has a requirement of 55 000 graded
rooms for the FIFA delegation and affiliates.
The requirement to be contracted by MATCH
is made up as follows: 10 000 non-hotel
rooms and 45 000 hotel rooms. The tourism
industry has a very good working relationship
with FIFA and MATCH. We remain committed
as partners to assist MATCH in achieving
their target and we will continue to encourage
players in the industry to sign up their
facilities.
“MATCH continues to play a central role
in achieving a successful hosting of the
FIFA 2010 World Cup. Our working relationship
is one of mutual respect and partnership
and I would like to encourage all role players
to ensure that nothing detracts from this”,
the Minister said.
It is envisaged that a broader advisory
structure, inclusive of SA Tourism, will
be established to advise on accommodation
and related matters for the 2010 FIFA World
Cup.