The devastating effects of the floods in KZN can easily be viewed as one of the most recent indications of climate change, which is becoming ever-more difficult to ignore. The finance sector in South Africa has an important role, in not only helping to alleviate the impact of these events for their clients, but also implementing internal policies to generate profound and lasting solutions to prevent the escalation of climate change.
“Africa faces many socio-economic challenges in which banks must play a progressive role in terms of start-up funding, SMME support and the introduction of innovative practices aligned with new technologies. At Nedbank, we also view climate change as a major investment focus. It’s as much a business reality as it is an environmental challenge. We believe all organisations must place the preservation of the planet higher up on their corporate agenda and instil an internal culture of sustainability, “says Mark Boshoff, Head: Strategic Initiatives and Specialised Asset Finance at Nedbank.
Every large organisation has the means to impact change – with their staff compliment being an obvious asset. These comprise thousands of people for whom sustainable business practices have a direct personal bearing. They have a vested interest in being at the forefront of a company’s mission to make a difference in mitigating climate change. Organisations committed to preserving the planet therefore can and must galvanise their people to view the protection of it as a business imperative.
“Without doubt, the continent faces numerous sustainability challenges. However, if embraced and leveraged, there are ways to help to build a more resilient, equitable and transformed continent. At Nedbank our mission is to create a workforce that is inspired by taking on the challenges faced by our clients, “says Boshoff.
The support and financing of renewable energy sources in Africa is just one example of turning a challenge into an opportunity. Additionally, investors, shareholders, employees, consumers and society are demanding responsible consumption and business practices and the finance sector should not only heed the call but also be a voice for change. This starts within.
Humans and Resources
Now is the time to attract and retain employees aligned to eco-friendly business practices, educate staff to recognise entrepreneurs with innovative sustainability ideas and to implement internal policies that reinforce the all-important mission of putting the planet first. Sustainability goals must be embraced by Human Resource departments that actively recognise the need to advocate the company’s environmental policies, using their expertise in communicating and instilling behaviours and policies. Meaningful training material and ongoing outreach programmes can further entrench an organisation’s environmental mission – and inspire its people to participate not only as an employee but a proactive global citizen.
Products and the Planet
Shareholders and investors are increasingly considering companies with good track records in ESG as investment targets while disinvesting in those with the reputation of polluters and displaying exploitative strategies. Customers and clients like-wise are considering purchases of services and products from companies with better track records. These factors alone should already inspire the creation of products for the greater good. After all, developing offerings that attract sustainability-conscious clients benefits all. The support of businesses engaged in areas such as eco-packaging, e-waste, renewable energy, regenerative procedures in agriculture, or sustainability-linked financing is a win for the economy and the planet. Fostering a virtuous circle where corporates, communities, small businesses, suppliers, and manufacturers work together for all to benefit, has to be the future.
Home and Away
Whilst initially a necessary measure imposed by the pandemic, the rise of hybrid working environments also presents an opportunity. Flexible workplace models should be considered in terms of the larger sustainability mission. Employees can massively limit their carbon footprint, reduce traveling times, improve well-being and attract commerce to residential areas to the benefit of communities.
“Ultimately, climate change will increasingly impact businesses and supply chains, and most importantly the lives of everyone on the continent. Government’s environmental policies will make a difference but companies can play a vital role in creating change from within. Through planet-first corporate models, the financing of sustainability-focused businesses, the introduction of eco-friendly office practices, including recycling and energy-efficient solutions, employees can be inspired to bring the vision home. It’s only then, when more people will work together towards the vital collective mission of seeing the planet as our greatest asset., “concluded Boshoff.