Corporate Social Review Magazine 1st Quarter 2012 | Page 57

Review
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REVIEW

REVIEW

From Laggards to Leaders?
Business and Climate Change

Lesley Masters (PhD), Senior Researcher: Institute for Global Dialogue

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The international climate change negotiations are among some of
the most politically divisive. There are numerous positions and interests competing for attention, from developed countries to the Small
Island Developing States (SIDS) and the larger emerging economies
of the BASIC countries (Brazil, South Africa, India and China).

outh Africa has pursued a leadership role in the
negotiations, and hosted the 17th Conference
of the Parties (COP17) in Durban at the end
of 2011. Yet for South Africa to be a leader, it needs
the support of its domestic constituency. Herein lies
the challenge. Can South Africa continue to push for
an equitable, inclusive and binding agreement internationally if it does not have the support of its key
stakeholders, particularly Business?
In the case of Business interests there are a number
of competing positions. There are those that have embraced the opportunity in ‘going green’ - from cutting
waste and saving money, to linking their brand with
environmental conservation. There are those, however, that argue that South Africa should not be making
pledges on emissions reductions at the international
level that would negatively impact on development.
Yet while there are concerns that meeting the emission reductions ‘required by science’ will negatively
impact on international competitiveness, financial investment and jobs, the other side of the same coin

is that remaining locked into a ‘dirty’ energy, or carbon intensive future, will also impact on international
competitiveness. This is increasingly a concern as
countries move towards imposing ‘green’ protection
measures through border tax adjustments.
While the climate change negotiations take place
at the level of the state, Business has a key role to
play as part of what the Minister for Environmental Affairs, Edna Molewa, termed ‘Team South Africa’. The
divide between developed and developing countries
has seen progress on any international agreement remain painfully slow. Nevertheless, it is at the domestic
level where companies are taking the initiative. For
instance, while the US may be at the centre of criticism for not adopting the Kyoto Protocol, delaying any
outcome on the future of the climate change regime,
at the level of state there has been a focus on preserving the environment.
Pressure from the bottom up adds impetus for governments to address issues of climate change that
are impacting on socio-economic development. Already in South Africa a number of corporations are
engaged in the Carbon Disclosure Project (CDP) as
well as energy efficiency and climate awareness campaigns. While climate change may seem distant and
abstract, it has real implications for Business including
costs (regulatory, insurance, adaptation), customer
perceptions, and constraints on other resources such
as water, or disruption to services. At the same time
it presents opportunities, where addressing climate
change makes good business sense. Rather than
waiting for government, or the international community to reach agreement, Business has the opportunity
to adopt a leadership role in pushing governments to
address climate change.

MediaClubSouthAfrica.com

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CORPORATE SOCIAL REVIEW