Deputy Minister Urges Business Leaders To Adopt ESG Principles

Deputy Minister of Forestry, Fisheries and the Environment Bernice Swarts on Tuesday urged business leaders to help their organizations reduce pollution, carbon dioxide (CO2) emissions and waste.

Speaking at the Annual ESG Africa Conference, the deputy minister noted that ESG investing is becoming more popular around the world as investors focus more on sustainable and responsible investment practices.

She stressed the importance of integrating environmental, social, and governance (ESG) principles into their values and overall strategies, noting that this approach can help organizations take advantage of investment opportunities for the country.

"Whilst it is essential that businesses understand the impact of their activities on the environment and society, it is no longer sufficient to focus solely on financial performance; investors and stakeholders now demand that companies adopt sustainable practices that consider the long-term impact of their operations," she said, SA News reported.

She added, "With its varied economy and abundance of natural resources, South Africa has become a major force in the ESG investment market."

The deputy minister said that good corporate governance means recognizing that an organization is part of society and has responsibilities to both current and future generations.

She pointed out that long-term investors need better information about the ESG aspects of businesses.

Swarts emphasized that South Africa must move faster toward a fair, environmentally sustainable, and low-carbon development path. She highlighted the importance of having a social protection system that can handle the effects of climate change and support a fair transition to a sustainable future.

She mentioned that South Africa aims to become a leader in green hydrogen, renewable energy, and sustainable industrialization. This goal is supported by the country's rich reserves of critical minerals and abundant solar and wind energy.

The deputy minister pointed out that Africa, home to many of the world's poor, is only on track to meet 6% of the Sustainable Development Goals (SDGs) and has fallen behind on 17% of the targets.

To meet the SDG investment needs by 2030, developing countries must find an additional $24 trillion, with $8 trillion needed just for Africa. However, developing countries currently face the worst economic conditions and most challenging financing situations in decades, she explained.

Last week, Minister of Electricity and Energy Dr. Kgosientsho Ramokgopa urged the BRICS Plus group of countries to work together to help each other overcome energy challenges.