South Africa and the continent’s future depend largely on the private sector reducing the impact of climate change and addressing systemic social issues, says the Old Mutual Group in its first Climate Change Report, part of its 2021 Integrated Reporting suite comprising six publications.
Although sub-Saharan Africa produces only a small share of global emissions, the region will face some of the most severe impacts of climate change, says Old Mutual Group CEO, Iain Williamson. “We believe the economic, social, and environmental systems in which we operate are inseparable and the physical effects of changing weather patterns will exacerbate extreme poverty, inequality, and unemployment.
“As a supplier of financial services to millions of customers across the African continent, we have an important role to play in driving greater inclusion and more equal societies. We must actively help build a low-carbon, resource-efficient environment that creates greater access to the economy for all stakeholders.”
Market observers and Old Mutual stakeholders have expectations about the company’s overall role in society. “With the inclusion of the Climate Change Report, we have increased the level of our corporate transparency and our commitment to integrated and open communication,” says Williamson.
The Group’s first Climate Change Report is based on the principles of the Taskforce on Climate-Related Financial Disclosures (TFCD), and when read with the Sustainability Report, provides a roadmap of Old Mutual’s future actions.
“The key challenge is catalysing financing and investment. These are essential enablers for a socially inclusive transition to a low-carbon economy and a climate-resilient future on an economy-wide scale. The role of the private sector was emphasised at COP26, which stated that about 70% of the total funding requirement for a global climate change response would come from private enterprise,” says Williamson.
“We recognise that our core business of gathering capital and investing it requires a balance of environmental, economic and social considerations specific to the African continent. Our goal is to invest in developments that reduce Africa’s carbon footprint, and this aligns with Old Mutual’s purpose of ‘Championing Mutually Positive Futures’ for all stakeholders.
“Our first Climate Change Report also reinforces that we already have significant climate change achievements under our belt. These include being the first South African insurer to join The Net Zero Asset Owner Alliance and launching South Africa’s first ESG equity fund – which is 40% less carbon-intensive compared to the Capped SWIX and being named the Best ESG Responsible Investor in Africa (2021) by Capital Finance International,” concludes Williamson.
The comprehensive suite of reports now consists of the primary integrated report and five companion reports that examine: Remuneration, Governance, Tax Transparency, Climate Change and Sustainability. Also included in the suite is the Old Mutual Insure 2021 Integrated Report.
You can read Old Mutual’s first Climate Report here.