The UCT Graduate School of Business has begun offering a course on climate change for corporates.

Bruce Whitfield:
Climate change isn't something we’ve tackled on the ‘World at Six’ before, simply because this is a business program, not an environmental programme but hold on a second, UCT’s Graduate School of Business is offering a course on how businesses should adapt to the risks and opportunities climate change presents. Jonathon Hanks is the founder of a Cape Town-based consultancy called Incite Sustainability and is leading the course at UCT Business School and Jonathon, one would think that businesses would have sustainability at the forefront of their strategy but I guess so many talk about it but very few actually do anything useful about it.

Jonathon Hanks:
Well, I think what is interesting is that increasingly, we are seeing many of the top companies are understanding that sustainable development is a business risk and opportunity. I think what is most exciting is to see how internationally, companies like Wal-Mart, Marks & Spencer, really seeing that this isn't a nice to have, it is not some sort of social philanthropic activity but it is really about core business risk and opportunities.

Bruce Whitfield:
Why then if it is so important do so few companies in South Africa, many of them profess to be sustainable or profess to have sustainable strategies but very few actually have got anything tangible?

Jonathon Hanks:
I think one of the key aspects here is that there has been a tendency to focus on social activities, there has been a focus obviously in particularly on black economic empowerment, there has been a traditional focus in the past on seeing this issue as philanthropic, it is about charity, and there hasn't been an appreciation that things like climate change and other environmental issues like access to water are really ultimately business and financial issues. I think one of the concerns has been that the financial community in this country has been fairly slow to grasp that this is a business issue and they stand by contrast to those overseas. I mean many in the banking community internationally have been fairly active both on climate change and sustainable development more broadly. I am not sure the leverage has been as sufficiently exercised in this country by the financial community. I think it is encouraging that some in the business sector and the business media sector are beginning to ask these questions.

Bruce Whitfield:
When you look at business sustainability and the course in particular that you are going to be offering just how broadly does it go? Is it purely an environmental impact sort of course or do you actually talk about the issues of poverty alleviation and ensuring that the poorest of the poor in South Africa actually have something to live for in this country. That is a big sustainability issue surely.

Jonathon Hanks:
Yes indeed but the focus of this course is largely on climate change aspects so there will be clearly a predominant emphasis on the environmental aspects but it is important to understand that the impacts of climate change are going to have a profound impact on social issues that we can't address poverty without understanding the importance of environmental issues. You know issues like access to water, the basic resources for housing and for food and so on they are all going to be impacted by climate change and what is important to understand is that business has a huge potential to make a positive contribution here and I think by addressing the risks and understanding the opportunities that climate change presents they can play an important role in addressing some of the social problems that this country faces.

Bruce Whitfield:
Provided of course government is doing the same. Do you get a sense that government is taking this nearly as seriously as you would like corporates to take it?

Jonathon Hanks:
Well it is interesting, I think we are seeing some leadership being undertaken in particular by the Minister for Environmental Affairs but he to be honest I think has a challenge in ensuring that the challenges of climate change are properly integrated in all policies. I mean to be honest if government is going to really address climate change one thing we are going to need to see is a shift in some of the prices of for instance energy and fuel. We are going to need to see a real shift in issues around power generation and asking questions should we be seeking to build new coal-fired power stations and these are very tough decisions and so while it is easy to profess an interest in climate change to actually shift the policies required is going to be profoundly difficult.

Bruce Whitfield:
A very difficult call to make as well and a lot of companies say hold on a second where does our responsibility start, where does government’s stop and just how much of the burden do we as corporate South Africa need to take on these important issues and I regret that my view on this particular thing is if companies don't take a leadership position on this it is never going to happen.

Jonathon Hanks:
Well, I fully agree and what is interesting to see is that overseas we are beginning to see business leaders coming together and saying to the prime ministers of Germany and England and elsewhere that we need to see stringent targets and what I think is exciting is that there are moves in this country to bring the CEO's of companies together to work actively with government to start pushing for more proactive policy on climate change. It is clear that if we are going to address the challenge that climate change presents we are going to need significant innovation, we are going to need entrepreneurship from the business community and without the dynamism that the private sector offers I don't think that we can really address this challenge and I think it is exciting that we are beginning to see some of the leaders in this country, some of the business leaders, begin to respond and what I hope we are going to start seeing is the financial sector and the business media continue to exert leverage because as you say without leadership from the business community I really don't think we are going to address this challenge on a sufficient basis.

Bruce Whitfield:
Right, I'm going to put you on the spot at this particular point; the one company in South Africa that does sustainable development or sustainability better than any other, one company?

Jonathon Hanks:
Okay, tough question. If one is to look at listed companies it is actually difficult to identify who the leader would be. I think one company that is really beginning to grasp it and one of the CEO's that is really beginning to grasp this is Anglo-American and their new…

Bruce Whitfield:
Cynthia Carol, is she at the forefront of it do you think?

Jonathon Hanks:
I get a sense that those in Anglo-American are feeling that she is exerting leadership on this issue. We are seeing also shifts, say in the retail sector, we are seeing Woolworths and Pick n Pay increasingly begin to grapple with this and some of the high profile impact companies like Sasol surprisingly, perhaps for some I think, the new CEO at Sasol, Pat Davies, really understands this issue and I believe that they are making some significant progress on this issue.

Bruce Whitfield:
Jonathon Hanks, we must leave it there but thanks very much for your time on the ‘World at Six’ today. Founder of the Cape Town consultancy, Incite Sustainability, leading a course at UCT, teaching about sustainability, and the thumbs up for a number of big South African companies there as well.


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