{"id":3781,"date":"2023-06-28T08:25:37","date_gmt":"2023-06-28T06:25:37","guid":{"rendered":"https:\/\/arenaevents.africa\/events\/the-directors-event\/?p=3781"},"modified":"2023-06-28T08:25:37","modified_gmt":"2023-06-28T06:25:37","slug":"sustainable-businesses-shaping-the-future-of-sa","status":"publish","type":"post","link":"https:\/\/arenaevents.africa\/events\/the-directors-event\/sustainable-businesses-shaping-the-future-of-sa\/","title":{"rendered":"Sustainable businesses shaping the future of SA"},"content":{"rendered":"

The mandate for businesses to operate responsibly is nothing new. What is new is a sustainability focus which is linked to realising tangible environmental, social and governance (ESG) goals. The2023 Sunday Times Directors Event, sponsored by BCX for the fifth consecutive year, unpacked how South African businesses are really performing when it comes to sustainability and where we go from here.<\/p>\n

The Directors Event, dubbed SA\u2019s biggest board meeting, is an annual event which puts the spotlight on burning issues facing the business sector and suggests possible solutions to the country\u2019s most pressing problems.<\/p>\n

Jonas Bogoshi, CEO of BCX pointed out that although most companies have adopted and implemented an ESG framework, there remain vocal critics of the policy. Critics of ESG argue that, amongst others, it is nothing more than a woke movement out of control, that ESG measurement encourages greenwashing and that a focus on ESG has a tendency to distort markets and results in a misallocation of capital. They also point to the fact that ESG does not take into account the development status of regions and has a disproportionately negative impact on emerging economies.<\/p>\n

The key focus of business is to meet customer requirements, generate profits and create value for shareholders. In emerging economies, businesses have the added responsibility of lifting people out of poverty. Sustainability and ESG are not an either\/or decision, insisted Bogoshi, but is about ethical imperatives and ensuring a long-term future for the business, communities and stakeholders.<\/p>\n

\u201cThe actions that we take today will create either positive or negative results for future generations. Ultimately, we need to decide what kind of legacy we want to leave,\u201d he said.<\/p>\n

The keynote address was delivered by Dr Pali Lehohla, the former statistician-general of SA and currently a director at Economic Modelling Academy, an organisation that teaches high-level skills in economic modelling.<\/p>\n

Lehohla discussed a number of issues including the skills gap, the high rate of unemployment, the role of small and medium-sized businesses to address the unemployment crisis, why young people hold the key to unlocking SA\u2019s potential and the importance of adopting sustainable and responsible business models. Closing the skills gap and addressing the high rate of unemployment, he said, will not be possible in the current environment.<\/p>\n

Calling SA a failing state, he drew attention to the plight of the poor, explaining that \u201cIn the belly of the looting state machinery reside the poor who eke out an honest living, expecting that they are protected. But sadly, their supposed protector is accused number one.\u201d<\/p>\n

Government policies in their current guise, he said, were not sustainable. The only way to grow SA\u2019s GDP is to implement reforms. He urged SA to deploy econometric modelling and to implement the proposals made by businesses to re-ignite growth, future-proof the economy and get SA out of its current rut. A failure to implement these reforms will doom SA to continue fighting fires, he said.<\/p>\n

The first panel discussion focused on social impact \u2013 a frequently forgotten aspect of ESG – and what it means for business. The big take-outs were that there are pockets of excellence in all levels of society, and we need to be highlighting these areas. Government needs to make better use of its leverage points, including the skills development levy, and we need to make it easier for the youth to access skills development initiatives.<\/p>\n

Most businesses do care about making a positive social impact and want to make a meaningful difference, recognising that doing good is good for business. NGOs, in particular, are doing a huge amount of good work for disadvantaged communities.<\/p>\n

However, for impact to occur at scale, we need to prioritise public-private partnerships. Many of these existing partnerships are creating a positive impact.<\/p>\n

The second panel discussion analysed the dynamics that shape the reality of SA\u2019s energy and infrastructure crisis and unpacked possible solutions.<\/p>\n

The South African Institution for Civil Engineering (SAICE) rated the overall condition of SA\u2019s public infrastructure a D which means it is at risk of failure in its most recent Infrastructure Report.<\/p>\n

The unwieldy nature of the energy sector is best illustrated by the fact that Eskom reports to a total of seven different ministries, begging the question of just how much time its executives have to actually focus on fixing the power utility. To date, there is no clear mandate or plan to resolve the energy crisis. While the new minister of electricity has suggested a number of quick-fix solutions, the panel agreed that the issues are more nuanced and complex than they appear, particularly given that crime and corruption continue to cripple the state-owned power utility. Whether Eskom can be salvaged and if there is the political will to fix it remains to be seen.<\/p>\n

The challenge is that amidst deteriorating business confidence metrics, a growing risk profile and a failure to implement the necessary economic and policy reforms, SA will struggle to attract investment. Large energy projects typically require public-private partnerships, need to be bankable and investors need to be assured of getting a return.<\/p>\n

SA cannot afford to abandon Eskom which means that it needs to do what it can to improve the performance of each power station. It also can\u2019t afford to transition away from coal too quickly.<\/p>\n

The final panel discussion focused on the use of smart technologies to help shape the future sustainability of SA, focusing specifically on the economic resilience that is enabled by homegrown innovation. Despite a number of private sector initiatives, the panel agreed that resolving the digital skills gap won\u2019t be easy. It\u2019s critical, however, that every effort is made to reduce this gap because the fourth industrial revolution has the potential to resolve some of Africa\u2019s biggest challenges.<\/p>\n

Addressing the gap will require that the private sector and civil society organisations work closely together so that initiatives and projects can be scaled for maximum impact.<\/p>\n

For its part, the government needs to create a more enabling space to implement digital technologies. At the same time, the misperception that the 4IR will destroy jobs needs to be addressed.<\/p>\n

The high penetration of mobile phones in SA – many of them smartphones \u2013 and an extensive fixed network, provides an excellent opportunity for small business owners to access the cloud and digital technologies, removing many of the barriers to entry for small businesses.<\/p>\n

Concluding The Directors Event, master of ceremonies Gugulethu Mfuphi said this year\u2019s Directors Event raised a number of P\u2019s: policy to drive change; the need for partnerships; profits to enable these changes; and people, with skills highlighted as a major concern. Encouragingly, while many of SA\u2019s challenges appear insurmountable, there are resolutions to many of the pressing problems we face.<\/p>\n<\/div><\/div><\/div>