INTRODUCTION

South Africa, as the country with the highest CO² per unit of GDP in the world, understands not only what is at stake but most importantly the opportunities presented by
participation in the green revolution.

Companies that manage their environmental aspects responsibly can enhance their brand value and make themselves more attractive to potential customers and investors. All businesses have the opportunity to reduce their environmental footprint and the business case for doing so is growing ever stronger.

As part of South Africa’s commitments made in Copenhagen in 2009, to reduce the country’s carbon emissions by 34% by 2020 and 42% by 2025, the South African government has embarked on a concerted drive to implement policies and strategies which will combat climate change. In conjunction with this, businesses are also increasingly being required to develop strategies for meeting environmental targets and for reporting on the status of the achievement of such targets. Some of the key drivers which oblige businesses to address climate change aspects are:

National Climate Change Response: The Department of Environmental Affairs has issued the draft National Climate Change Response Green Paper (Green Paper). The Green Paper sets out the framework for the country’s targets for activities aimed at the reduction of greenhouse gases (GHG) to combat climate change. South Africa, as the country with the highest CO2 per unit of GDP in the world, understands not only what is at stake but most importantly the opportunities presented by participation in the green revolution.

The Carbon Tax Option: Within the energy mitigation sector, the Green Paper states that, government will make use of market-based policy measures such as an escalating carbon tax to price carbon and internalise the costs of climate change. National Treasury has proposed the imposition of a carbon tax. It is hoped that a carbon tax will diversify the energy mix and increase energy efficiency measures and new investment in cleaner technologies and industries. Energy efficiency and electricity demand-side management initiatives are also set to be scaled up through the setting of ambitious and mandatory targets.

The Carbon Disclosure Project (CDP): This is an organisation based in the United Kingdom which works with shareholders and corporations to disclose the greenhouse gas emissions of major corporations. In South Africa the National Business Initiative’s Climate and Energy focus area assists South African companies to address the CDP requirements. The CDP publishes the emissions data for some of the world's largest corporations, accounting for a significant percentage of global emissions resulting from human activities. This data can be viewed by anyone and is often of particular interest and use to investors, policymakers and their advisors, government bodies, the media and academics.

The Socially Responsible Investment (SRI) Index: It is anticipated that a climate change action plan will be compiled and published by the Department of Environmental Affairs. Once published, the plan will detail various short-, medium- and long-term actions which will be measurable, reportable and verifiable.

It is anticipated that by 2012, a climate change action plan will be compiled and published by the Department of Environmental Affairs. The plan will detail various short-, medium- and long-term actions which will be measurable, reportable and verifiable.