Stakeholders should plan for life on greener planet

Globally, environments and entire ecosystems are under significant threat. The effects of diminishing natural resources, biodiversity loss and climate change are being increasingly felt and the consequences of inaction are becoming more apparent.

Appreciating the challenges facing our planet and considering the status quo, some may argue that rehabilitation and conservation will require nothing short of a revolution. Encouragingly, the unsustainable nature of a brown economy is being more widely understood. This, coupled with a deepening emphasis on creating a better world, is translating to a rapid evolution towards more sustainable business practices. Across Africa an increasing number of businesses, governments and economies have expanded their commitments and deepened investment into powering greener economies.

This is laying strong foundations for the resilience of environments and society while also delivering compelling financial outcomes. Even so, our continent remains on the back foot.

Defined as “low carbon, resource-efficient and socially inclusive”, the evolution of the green economy requires ongoing evaluation and collective commitment to do good in the course of business. A holistic, accountable and progressive sustainability-driven strategy is the only way forward for our continent and planet. In all that businesses do, there has to be a commitment to:

• Drastically abate and even neutralise greenhouse gas emissions
• Effectively conserve and, where possible, replenish resources
• Reverse environmental harm in every way possible
• Drive social inclusion and cohesion
• Create pathways to meaningful, sustainable development

A great starting point is a progressive shift to an energy source such as gas, which is seen as a perfect transition fuel to cleaner energy. Unlocking the potential of natural gas is guaranteed to generate employment opportunities, increase GDP and raise foreign direct investments.

Granted, this is demanding financial investments, unwavering determination and diligent governance, which can be challenging – especially during periods of downturn. Even so, the focus on people and planet has to serve as the ethical compass of business. It needs to be the basis of all decision-making to avoid businesses succumbing to mounting pressures that may make less sustainable avenues seem more attractive. The great part is that the market for green investments is booming and businesses will also be well served to capitalise on a more mature, future-focused investor mindset.

Future-focused businesses are consistently employing technologies, innovation and enabling practices to address debilitating current and anticipated socio-economic and environmental challenges. Doing so is also enabling businesses to leverage new market opportunities, enhancing their relevance and bolstering the bottom line.

Green finance – investments that aim to drive better environmental outcomes – is claiming its valuable place in world economics. Globally, in the first three quarters of 2021, green bonds (an instrument of green finance) doubled, reaching record levels of more than R12-trillion. For our continent, the Development Bank of Southern Africa launched its first green bond in 2021 valued at R3.6bn.

These developments are paving the path to better opportunities and powering developments that are accelerating the dominance of practices that are for the greater good.

With over 640-million Africans having no access to energy, there is tremendous pressure on energy players to increase the electricity access rate that currently sits at 40%, the lowest in the world. Increasing access to energy is essential as it can reduce the cost of doing business and unlock the economic potential of the continent. Africa has massive energy potential, with most of it focused on renewable energy. However, while renewable energy may be the main focus, fossil fuels still remain an important part of the overall energy mix.

Considering this, it is crucial to channel more attention in:

• Setting up an enabling policy environment
• Increasing the number of bankable energy projects
• Increasing the funding pool to deliver new effective projects
• Accelerating major regional projects to drive integrations

While some of the shifts to more sustainable economic models is commendable, a more relentless, long-term commitment is critical.

Ultimately, people and businesses can only thrive in a stable, sustainable economy and environment.

• Wiseman Ndlovu, president of the North Coast Workers Forum