ESG SOUTH AFRICA

SUSTAINABLE BUSINESS THAT CARES FOR THE ENVIRONMENT WWW.ESGGREENPAGES.CO.ZA

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ISSUE NO.3RSA: R145.00 (INCL. VAT) UK: £10.00 USA: $20.00

ENVIRONMENTALClimate change, transparency,

responsiveness

GOVERNANCEAccountability, disclosure,

responsibility

SOCIALCommunity, rights, people.

ESG South Africa is the communication space of choice for role players that operate in the fields of environmental sustainability or social and corporate governance.

It provides a comprehensive, go-to reference guide for public and private enterprises and individuals to showcase the strides they are making in this field.

The publication was the official publication at COP17 and RIO+20 and is planned for COP18 in Qatar and beyond.

Organisations choose to profile in ESG as part of their communication strategies and to highlight these business critical issues to peers and the broader public.

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ESG SOUTH AFRICA

& Exhibition JHB 30-31 Oct

EVENT PARTNER

ISSUE 3

INNOVATIONS | SMART CITIES | THE FUTURE OF WATER | ETHICAL INVESTING

WORLD’S

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DBN10,11JULY 2013

CT9, 10 APRIL 2013

JHB30, 31 OCTOBER 2012

& Exhibition

The way the world is doing business is changing.Join us and get connected

JHB 30-31 Oct

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Contact Deirdre on 086 000 9590 / deirdre.oneill@topco.co.za

• LARGE: We plan on engaging hundreds of industry leaders and opinion-makers.

• INCLUSIVE: This will be South Africa’s only event that brings together all the disparate players, including producers, processors, retailers, regulators, governments, associations, unions, consumers, advocates and independent experts.

• INFLUENTIAL: You will have a chance to join the public sector in discussing the direction for the African Urban Development.

• SIGNIFICANT: Media sponsors ensure reach for the information and opinions presented.

• INFORMATIVE: Carefully chosen presenters will share practical information and perspectives.

• VISIONARY: This summit will be the most future-focused event on urban planning in Africa.

Benefits of Attending

The event will cover a host of local challenges, most notably: inefficient transport services outdated water and waste networks; adapting IT integration; rising pollution levels; an increased demand for energy; and a strain on health and security, education and poor urban management. With a prediction of 70 percent of South Africa's population living in cities in the near future, the motivation for creating smart and sustainable cities and towns has never been more important.

Smart city planning is now a worldwide trend and is becoming the norm in countries as different as the USA, China and those in Europe.Smart Cities are also growth and prosperity drivers, creating huge commercial opportunities. Attendees at the Smart Cities Summit already include national and local government as well as a high representation of industry leaders.

The challenges are huge however, the challenges are also long-term opportunities of growth for companies that collaborate and help solve them.

There is a top line-up of world-class speakers and the MC for the event is media personality and climatologist Simon Gear.

About the Event

WWW.SMARTCITIES-AFRICA.CO.ZA

BUILDINGS

WATER

ICT RESOURCES AND SOLUTIONS

PUBLIC ADMINISTRATION FINANCING $MOBILITY AND TRANSPORT

ENERGY

SPORTS AND EDUCATION

HEALTH AND SAFETY

WASTE REDUCTION AND RECYCLING

ENVIRONMENTAL SUSTAINABILITY

THE FUTURE OF FOOD

Key Topics

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As part of Environment Month and Youth Month, South Africa’s young people are encouraged to explore fields of study and career options in the Green Economy.

GREEN COLLAR jobs contribute towards conserving our natural heritage. This sector also assists to equitably share the benefits derived from innovations in climate change adaptation and mitigation, climate smart agriculture, eco-tourism, bio-prospecting, environmental quality protection and waste management, amongst others.

June National Environment MonthGREEN ECONOMY: Does it include you?

Visit: www.environment.gov.za or call 086 111 2468 for information on fields of study and careers in the Green Economy.

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E S G S P E C I A L F O C U S S O U T H A F R I C A 0 0

CONTENTSA-Z Listing of Featured Companies 10

Foreword: President Jacob Zuma 4

Thought Leadership: John Oliphant , GEPF 5

Interview: Edna Molewa – Minister of Water and Environmental Affairs 6

Interview: Jon Duncan – ESG Analyst, Old Mutual 8

Publisher’s Letter 9

Editor’s Letter 11

Contributors 11 TRENDSBRIEFING: News you need to know 12

TRENDS: Street shopping and inspiring ideas 16

DESIGN: The pick of South African design 18

INNOVATIONS: Trends and inventions you need 20 SMART CITIES 235 WAYS Cities Will Change How Africa Lives 24

GREEN BUILDINGSThe 10 Greenest Buildings in South Africa 27

CITY GUIDE Smart Grids and Smart People 32

WATERThe Future of Water 47 FEATURESCARSThe Hybrid Pushes the Limit 56

WASTEWhen is Waste Really Waste? 57

FINANCIALInvestigating: SA Open for Business 64

AGRICULTUREWomen feed Africa 84

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PARTNERS

SECTOR PARTNER(TRANSPORT & LOGISTICS)

SECTOR PARTNER(FINANCIAL)

ESG-contents.indd 3 2012/08/07 12:24 PM

FOREWORD

4 E S G S O U T H A F R I C A

HIS EXCELLENCYJACOB ZUMA PRESIDENT OF THE REPUBLIC OF SOUTH AFRICA

IN 1992 IN RIO DE JANEIRO (at what became known as the Earth Summit) Agenda 21 was agreed as a programme of action for sustainable development. It reaffirmed that sustainable development was delimited by the integration of the economic, social and environmental pillars.

The spirit of the conference was captured by the expression ‘Harmony with Nature’ and it laid the foundation for the first principle of the Rio Declaration.

State leaders agreed on the urgent need for a deep change in consumption and production patterns, resulting in agreements being reached in the Convention on Biological Diversity and the Framework Convention on Climate Change.

Fast forward 10 years to 2002 when we convened for the 10 year review of the Earth Summit hosted in Johannesburg, at the World Summit on Sustainable Development. Ten years on and it was hardly a secret – or even a point in dispute – that progress in implementing sustainable development over the decade had been been extremely disappointing.

With poverty deepening and environmental degradation worsening, what the world wanted was not a new debate, but rather a summit of actions and results. The Johannesburg Plan of Implementation (JPOI) captured the spirit and commitment of ‘Making it Happen’ and became the new basis of the global deal that emerged from the Johannesburg Summit.

Another 10 years have passed and Rio+20 convened in the context of both old and new emerging challenges. These include a food security and price crisis, climate change, and unstable international financial systems which continue to reverse some of the gains made by developing countries in their efforts to achieve sustainable development.

Today Africa lags behind in the implementation of the Millennium Development Goals, Small Island States continue to be vulnerable to adverse weather conditions, workers around the world continue to lose jobs, and many of our children are hungry and sick.

The future we want should be the future we make as governments and our partners in this global village.

Rio+20 should build on the concrete experience of approximately 20 years of experience, and reinvigorate political commitment and work towards assisting developing countries in their efforts to achieve agreed international developmental goals.

We can only build the future we want by promoting sustainable and inclusive growth; protecting vulnerable groups; reducing carbon dependency, reversing ecosystem degradation and moving closer to achieving the Millennium Development Goal of ending extreme world poverty.

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THOUGHT LEADERSHIP

E S G S O U T H A F R I C A 5

SUSTAINABLE PROFITS CALL FOR A NEW ECONOMIC ORDERJOHN OLIPHANT, HEAD OF INVESTMENTS & ACTUARIAL AT GOVERNMENT EMPLOYEES PENSION FUND (GEPF)

AS THE WORLD’S LEADERS AND DECISION-MAKERS return from Rio+20 after discussing smart measures for reducing poverty, decent jobs, clean energy and a more sustainable and fair use of resources for all, one thing is certain: The 2008 global financial crisis, and subsequent and current economic events, remind us that it’s no longer business as usual. The days of laissez-faireism are over; governments are now seeking an active role in the economy in order to prevent the pursuit of short-term profits at the expense of long-term sustainable investment returns. Quite clearly, the status-quo is untenable.

In addition to increasing government action on these issues – institutional investors such as pension funds, insurance companies and their service providers are also committing themselves to a more active ownership approach when investing on behalf of their members and beneficiaries. Asset owners, especially trustees of pension funds entrusted with the life savings of their members, are increasingly required to think more strategically about ensuring investment returns for the long-term. As fiduciaries, we must consider sustainability issues within our investment decisions and adopt an active ownership approach on behalf of the real owners of the assets we

manage, the members of pension funds.In our view as Government Employees Pension Fund,

our objective as a defined benefit pension fund is to ensure that our members can retire comfortably and with dignity. We won’t achieve this objective by merely generating short-term financial returns: we also have to ensure the sustainability of returns in the long-term to meet the financial needs of current and future generations of members and pensioners.

The investment landscape in South Africa has changed: pension fund trustees and their service providers will soon find themselves having to give account to the new owners of capital – the workers – as to their approach to investing. Regulation 28 of the South African Pension Funds Act now requires pension fund trustees to give serious consideration to the long-term by integrating environmental, social and governance (ESG) factors into investment analysis and investment activities as part of the delivery of superior risk-adjusted returns. Similarly, the Code for Responsible Investing in SA (CRISA) was launched in July 2011 as a voluntary mechanism to help asset owners, asset managers and their service providers’ monitor and report on sustainability issues. From the 1st of February 2012, South African institutional investors are required to publicly report against the application of CRISA’s five principles which seek to form part of an effective governance framework in South Africa.

I believe that CRISA, working in conjunction with Regulation 28, the UN-backed Principles for Responsible Investment (PRI) and other best practice frameworks provides an enabling framework for institutional investors, as custodians of their members’ assets, to engage and hold companies in which they invest accountable to the demands of sustainable returns in the new economic order. We look forward to increased public reporting by South African pension funds and their service providers as to their approach to ESG issues within annual integrated reports, websites, member communications, and other publications. The ESG Green Pages is one such publication highlighting how government and business can work together to address sustainability challenges and opportunities.

GEPF is committed to playing its part and we call upon government and business to work together to provide the leadership we need on sustainability. For real sustainable profits we need a partnership model between government and business and call on other asset owners to join us in seeking sustainable returns for our members.

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EDNA MOLEWA – MINISTER OF WATER AND ENVIRONMENTAL AFFAIRS

6 E S G S O U T H A F R I C A

THE EXTRA-FINANCIAL THEMES – ENVIRONMENTAL, SOCIAL AND GOVERNANCE are equally challenging for emerging market organisations to manage. It would be self-defeating to elevate one pillar above the rest. The department has seen corporates and big industrial giants collapse, simply because their corporate governance and ethos had diminished. Equally, when social governance and responsibility collapse the financial bottom line shrinks, because companies in conflict with society are companies in conflict with their markets, consumers and workforce. Without environmental governance and a conscience, no sustainable production can take place. Therefore, growth and corporate success must always be viewed from a People, Planet and Prosperity integration.

The fundamental objectives of the policies and legislation are to secure sustainability and equitable access to resources. The National Environment Management Act (Act 107 of 1998) notes: “The environment is held in public trust for the people. The beneficial use of environmental resources must serve the public interest and the environment must be protected as the people’s common heritage.”

Before 1994, environmental matters had very low profiles in terms of government priorities. That changed rapidly with the advent of democracy and has also seen tremendous progress towards putting South Africa on a path of sustainable development, encompassing economic growth, social development, and the conservation of natural resources and services.

After successfully hosting the World Summit on Sustainable Development in 2002, the Department assumed a global leadership role in the promotion of these ideals. Building better communities, creating jobs and fighting poverty is a central part of its global quest for sustainable development. In line with its vision of creating a prosperous and equitable society living in harmony with the natural environment, government’s key strategic priorities in these areas include:• The protection, conservation and enhancement of environmental assets, natural and heritage resources; ensuring a sustainable and healthy environment; contributing to sustainable economic growth,

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INTERVIEW

E S G S O U T H A F R I C A 7

livelihoods and social cohesion; providing leadership on climate change action; • Promoting skills development and employment creation through facilitating green and inclusive economic growth; and• Creating a better Africa and a better world by advancing national environmental interests through a global sustainable development agenda.The Department of Environmental Affairs is fully supportive of the smart cities initiative which will help major cities including South Africa’s Johannesburg, Tshwane/Pretoria, Durban and Cape Town better understand and tackle the environmental and city infrastructure challenges they are facing and would encourage that the work be cascaded to smaller municipalities as well.

The Department believes that actions to address climate change and sustainable economic development paths are linked. South Africa takes a green economic growth strategic approach to identify actions which allow for sustainable development and climate mitigation and adaptation co-benefits.

Climate change is considered to be one of the most serious threats to sustainable development, with adverse impacts expected on the environment, human health, food security, economic activity and investment, natural resources and physical infrastructure. This will disproportionately affect the poor who have not contributed to the causes of climate change but are the least equipped to adapt to the potential effects of climate change.

The Government of South Africa considered the United Nations Conference on Sustainable Development (Rio+20) to be a critical meeting that should agree on how to facilitate expeditious implementation of sustainable development agenda. Therefore, the conference should build on the concrete and practical experience of approximately 20 years in the implementation of sustainable development agenda as outlined in Agenda 21 and the Johannesburg Plan of Implementation (JPOI).

Rio+20 should reaffirm the Rio principles and establish focus principles for operating the green economy concept. Principle seven of common but differentiated responsibility should form

the cornerstone of the implementation of the green economy concept. This will ensure that countries will design their transition within their policy spaces and take into account their developmental imperatives.

The following principles are proposed for consideration:• All states should be allowed a policy space to define their own strategies towards a transition to a green economy as per their national priorities and respective stages of development• In order to maintain the balance of addressing poverty while securing the natural resource base, green economy should be people-centred and inclusive, taking into account the needs of the most vulnerable (women, disabled and youth)• Recognising the special capacity needs of developing countries for transition to a green economy, promotion of finance, research, development and innovation, science and technology, and capacity building measure to developing countries should be upscaled• Promote access to green technologies at affordable cost and work ensures that green economy creates new market opportunities, notably for developing countries• All states should build on existing programmes, indigenous knowledge, initiatives in key sectors and promote information sharing of best practices on policies and programmes that contribute towards the attainment of an inclusive green economy• All states should recognise green economy as a means to achieve a sustainable development agenda and integrate its dimensionsTherefore, the conference should build on the concrete and practical experience of approximately 20 years in the implementation of the sustainable development agenda as outlined in Agenda 21 and Johannesburg Plan of Implementation (JPOI).

To integrate ESG management effectively and efficiently, the Department poses the following questions: What might a more just and sustainable global economy look like in the year 2025? How can the real economic value of sustainability information be unlocked to create a more caring, trusted and sustainable capitalism? What lessons can be learnt from the

past in constructing a new growth model in which the integration of sustainable development factors becomes a normal part of doing business? What role will technology play? What are the roles of government, business and civil society in this context? What existing or new partnerships must be forged?

Increased urbanisation of human society has been an uninterrupted trend since at least the industrial revolution. Each year millions of people are lured from the countryside to the cultural, economic, social dynamism of cities. This trend has been accompanied by significant economic growth and expansion.

The State of the Environment Reporting (SoER) has a central role to play in evaluating environmental management and its impact on society. Ideally, the central purpose of SoER is to inform policy and planning by providing decision-makers with up-to-date scientific data in relevant and user-friendly formats. SoER is a relatively new aspect of governance in South Africa. A study undertaken by Chantal Will for the CSIR suggests that considerable scope for improvement exists in the extent to which SoER indicators in South Africa are engaged with during the development of policy and planning processes.

To make South Africa a sustainable business destination, guidance on policy related matters is a necessity. Areas of guidance include: government policy and experience; national and regional regulation and guidance; regional sustainability and transparency issues; relations to other international CSR and sustainability tools; advancement of sustainability reporting practices for public agencies; and the role of governments as supporters of global public goods development.

The Department of Environmental Affairs strives for continued sustainability. In short, over the years it has made real progress in fulfilling its constitutional commitment to ensuring an environment that is not harmful to health or well-being. This, and the steps it has taken to integrate its efforts with those of other countries hold great promise for our nation, the region, and the African continent.

www.environment.gov.za

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INTERVIEW

EMBRACE THE TREND WITH BOLD AND INNOVATIVE LEADERSHIP

Company snapshot: Old Mutual Investment Group South Africa (OMIGSA) is one of the largest asset management groups in Africa, with R472-billion in assets under management (31 December 2011). We offer a comprehensive range of investment solutions to both retail and institutional investors, across the risk/return spectrum, including pure equity, asset allocation, fixed-income and index-tracking investments as well as alternative assets like property, private equity, infrastructure and socially responsible investments (SRI). Some say sustainability is just another marketing concept? I believe that sustainability is a mega trend that is shaping the competitive landscape in every sector, and that companies able to respond to this trend and innovate early will reap the benefits of stronger growth prospects, enhanced operating efficiencies, stronger social license to operate, enhanced staff retention, lower cost of capital and, ultimately, stronger and longer competitive advantage

8 E S G S O U T H A F R I C A

relative to their peers that haven’t adapted.What does it actually mean? At first glance sustainability appears to be a vague and nebulous concept that is difficult to define; the result is that for many businesses it is an issue that is dealt with outside of core business strategy and management.

The risk with this approach is that it is merely seen as a superficial add-on to the business model that adds little clear value. Those businesses that take the time to consult with stakeholders and review material impacts and opportunities up and down the value chain will begin to see the business case. They will also see how integrated sustainability issues actually are with business strategy.

To embark on this journey, however, requires bold and innovative leadership. It calls for the visioning of new approaches to the provision of goods and services across all sectors of society in a way that is mindful of the tradeoff between natural, social, human, financial and manufactured capital. What is your role in changing perceptions? My role is to educate and instigate new approaches to understanding risk and opportunity in the investment world. As an analyst within an asset management business, I help our investment professionals see the world through the sustainability lens and to better price the environmental, social and governance risks and opportunities that emerge in relation to the assets they manage. How is climate change affecting business? It is resulting in technological, policy and physical changes that create both opportunities and risks. These vary depending on the sector and geographical location of the business. Some businesses are potentially impacted due to policy changes that place a price on carbon emissions, like the potential impacts on smelters in South Africa. Others may enjoy new growth opportunities from technological innovation to address climate issues (like potential for platinum use in the hydrogen fuel cells), while some may be exposed to the physical impacts associated with climate change (agricultural and water sectors). Businesses with an eye on the future will be considering these issues as they develop their 10-year growth strategies.

What are the changes companies and individuals need to make? The magnitude of many of the sustainability-linked challenges is beyond the scope of any one institution or business. To tackle this challenge will require business leaders to collaborate with their competitors, as well as a diverse set of stakeholders, to find practical solutions to such issues.

On an individual level, the sustainability challenge can sometimes seem overwhelming, however it is important not to underestimate the power of individual change at the household and community level. What do you think are the key challenges facing South African businesses and the public sector? The lack of a clear, shared vision for a sustainable and equitable economy is a huge obstacle. Our big challenge is to foster collaboration to ensure we build consensus and capacity around a common goal. While the National Planning Commission has started this process, it will require further buy-in and participation from labour, business and all spheres of government. What is your company doing to change perceptions? OMIGSA aims to lead the investment industry in South Africa by providing investment opportunities aimed at addressing key sustainability challenges in South Africa. We have a robust suite of SRI investments that aim to meet socio-economic needs and complement the efforts of government, while delivering commercially acceptable gains to our investors. These include investments in housing and infrastructure development, agriculture, alternative energy and schools.

Our commitment to this investment approach is summarised in our OMIGSA Responsible Investment Guidelines, which is publically available on our website: www.omigsa.com/about

NAMEJON DUNCAN

OCCUPATION AND POSITIONENVIRONMENT, SOCIAL AND GOVERNANCE (ESG) ANALYST

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PUBLISHER’S LETTER & CREDITS

E S G S O U T H A F R I C A 9

CREDITS

The world as we know it is changing. In the workplace expectations of an employee are totally different to the expectations we had a decade ago. Today employees are expected to have multiple skills sets. An accountant may also manage researchers, compile a presentation and contribute to the company newsletter. They may also have to network their own computer and update their own software. Horizontal structures that have taken the place of hierarchical offices mean that people need to be more innovative and flexible. This is what is making businesses more sustainable and ultimately more efficient. Cities are also rapidly changing. The latest figures show that in Africa there will be an ongoing and unstoppable rural migration to urban areas. ESG, in partnership with Smart Cities Summit, held its first event, (the first of its kind) in Durban, South Africa in July. The success of this has led to the next event planned for Johannesburg on 30-31 October 2012. This one will include internationally experienced speakers sharing what works, and what is needed. These future integrated cities have a clear aim … to create a space where all citizens enjoy the infrastructure. Our next issue, ESG 4, will be distributed at the Qatar COP18 climate talks where we will showcase the innovative solutions South African companies and the private sector are offering. This will include the growth of eco-sustainable tourism in South Africa and a focus on youth development, as well as skills development and education.

Van FletcherPublisher

ChairmanRichard Fletcher

PublisherVan Fletcher

EditorSarah Bullen

editor@topco.co.za

Managing EditorShaheema Albertyn-Burton

shaheema.albertyn@topco.co.za

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DisclaimerAll rights reserved. No part of this publication may be reproduced,

stored in a retrieval system or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior written consent of Topco Media (Pty) Ltd Reg. No. 2007/002190/07.

While every care has been taken when compiling this publication, the publishers, editor and contributors accept no responsibility for any

consequences arising from any errors or omissions.ISBN: 978-0-9921778-0-5

PUBLISHER’S LETTER

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1 0 E S G S O U T H A F R I C A

AAgricultural Research Council .........................100ArcelorMittal ....................................................104

CCity of Cape Town – Water & Sanitation Department .......................................................44

DDepartment of Agriculture & Rural Development .....................................................94Department of Environmental Affairs (DEA) ............................................2, 22, 88Department of International Relations and Cooperation (DIRCO) ........................................42

GGarden Cities ....................................................46Government Employees Pension Fund (GEPF) ......................................................78Greenhouse Peoples Environmental Centre ................................................................61

MMercedes-Benz .................................................62MN Capital Markets ...........................................82

NNational Cleaner Production .............................40New Apostolic Church .....................................102

OOld Mutual Investment Group South Africa (OMIGSA) ..........................................................74

PPaarl Media .......................................................70

RRiso Africa .........................................................41

SSouth African Bureau of Standards (SABS) .............................................96South African Maritime Safety Authority (SAMSA) .............................................50South African National Biodiversity Institute (SANBI) ................................................60Sustain Our Africa .............................................98

UUnited Nations Development Programme (UNDP) ..........................................36United Nations Industrial Development Organisation (UNIDO) .......................................38

A-Z LISTING OF FEATURED CLIENTS

A-Z LISTING OF FEATURED CLIENTS

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EDITOR’S LETTER & CONTRIBUTORS

E S G S O U T H A F R I C A 1 1

CONTRIBUTORS

JOCELYN NEWMARCHJocelyn is a specialist freelance business writer who still believes she can change the world. This may explain why she is currently studying for an MA degree in development studies. She does sometimes wonder why she chose journalism instead

of the restaurant business, since her free time is generally spent in the kitchen. Jocelyn thinks it is likely that she was Italian in a former life and is currently cooking her waythrough Giorgio Locatelli’s Made in Sicily. (Anything to avoid writing up her thesis.)

MATABELLO MOLOUNG Matebello is one of the few black women financial writers in the media industry. She started her journalism career as an intern at Marie Claire magazine 10 years ago. Since then, she’s worked for the Sowetan, SA Press Association (Sapa), The Media

magazine and Marketingweb. There, she earned herself quite a following for her boundarypushing column “Out Loud”. Today, Matebello is the co-owner and co-founder of The Writing Project, a specialist corporate writing service agency.

GAVIN DU VENAGEA Western Cape-based business writer, Gavin specialises in commodities, mining and energy.

BONGANI COKA Bongani Coka is the new Productivity SA chief executive who is geared to ensure South Africa leapfrog into the “premier league” of world’s competitive nations through improved productivity. Coka is an accomplished professional with across-the-board

proficiency within a number of business sectors ranging from finance, operations, project management, design, execution and control of strategies, stakeholders relations and organisational transformational to leadership and mentoring among others.

LEONIE JOUBERTLeonie Joubert is a recognized science writer and journalist whose books include Scorched, Boiling Point and Invaded. The Hungry Season: Feeding Southern Africa’s Cities, is due out in September 2012. Joubert has received two Honorary Sunday

Times Alan Paton Non-Fiction Awards.

WHERE MEN MUST ACT ‘AS GODS’ Consumers drive business behaviour. That is the lesson I got from watching the sustainability revolution over the past decade. Green activism has achieved a lot and it has gone mainstream from the heady days of covert Greenpeace operations and enviro-terrorism. Now being green is pretty mainstream. Activists are no longer wearing gas masks and roaming the seas on a green pirate vessel. These days activists are living in suburbs, shopping at Pick n Pay and sending their kids to school along with the recycling. Now activists vote with their money. And quite frankly, that is proving a far more persuasive method. New consumer activists speak the language of money and power. Companies that don’t visibly demonstrate that they are sustainable are going to hit harder and harder times. Forward-thinking organisations have long sensed this strong trend and have moved to adjust their policies and products. Is it fast enough? Probably not. One of the new breed leaders Steward Brand advocates a brand of neo-environmentalism – a business-friendly take on the environmental dilemma. It says that global capitalism and western-style development is not the problem but the solution. The future lies in embracing new sciences, biotechnology, synthetic biology, nuclear power, nanotechnology and geo-engineering. This is where, he says, men must act “as gods”. Compiling this issue of ESG has been an eye-opener in just how far business has come in changing with the times. It’s business Darwinism. Adapt or die.

Sarah BullenEditor

EDITOR’S LETTER

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CARBON TAX (STILL) APPROACHING Finance Minister Pravin Gordhan is still waiting to comfirm policy around South Africa’s carbon tax, which is expected to be implemented between 2012 and 2015. ESG suspects that SA corporates may get a reprieve when it comes to taxing carbon – for this year anyway. National Treasury released a carbon tax discussion document in 2010, and last year promised that the 2012 Budget would outline a carbon tax design features and schedule. Given the impact that this tax would have on investors, we don’t think Gordhan will be keen to surprise corporates with an implementation this year, but he will give more clarity.

All the same, government faces an uphill battle. Australia’s government managed to legislate a carbon tax last year only after years of negotiation, and despite vocal opposition from its powerful mining sector. Like Australia, South Africa’s economy is coal-based, and Engineering News reports that heavyweight resource companies, including Anglo American, BHP Billiton and Rio Tinto, have made their opposition known. The tax is likely to start at R75 a ton.

TOP GLOBAL SUSTAINABILITY LEADERS

WHO TOPS THE LIST OF THE COMPANIES WHO PUT SUSTAINABILITY AT THE TOP OF THEIR AGENDA?

~

Erisis is a leading global provider of independent research into the environmental, social, governance (ESG) and ethical performance of companies.

Only 40 cents of every US taxpayer dollar spent on food aid actually goes to buying food, according to the Oxfam GROW campaign, which advocates for food justice. Procuring freighting of US food aid on the open market could help feed an additional 3.2 million people in emergencies.

uPuma despite operating in a sector at high risk for human rights abuses, Puma has a strong environment record and demonstrates improvements in supply chain labour standards.

vFirstGroup derives more than 90 percent of sales from rail and bus services and the company has made major improvements in reducing its environmental impacts.

wNational Australia Bank – Owner of Clydesdale and Yorkshire banks trains staff to understand and identify environmental and social risks when doing business.

xGlaxoSmithKline scores well across the board, demonstrating particular strengths in providing drugs cheaply to developing countries.

yRoche, the Swiss pharmaceutical company has a strong equal-opportunities policy and operates an advanced code of ethics with strong anti-bribery rules.

zNovartis, another Swiss pharmaceutical company, has strong environmental reporting and a good anti-bribery programme.

{Philips Electronics, the Dutch electronics company, has made significant progress on environmental issues, particularly through increasing the energy-efficiency of its products.

|Deutsche Börse, the German stock exchange, scores highly for its strong practices in relation to environmental issues, corporate governance and stakeholder engagement.

}Novo Nordisk, the Danish pharmaceutical company, has reduced its water use and its all-round environmental, social and governance record is strong.

~Go-Ahead Group, the UK bus and train company, has a strong record on the environment.

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With an expected nine billion people on the planet, demand for food is expected to increase by 70 percent by 2050, according to the Oxfam GROW campaign.

NEWS YOU NEED TO KNOW

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CARBON: THE RISK WE’RE NOT THINKING ABOUTSustainable investment consultants Sinco and Trucost reckon the JSE’s Top 40 list face a carbon risk which amounts to $974-million – or 0.2 percent of these companies’ revenues. The group accounts for 109 million tons of direct emissions, equivalent to 20 percent of SA’s total. For every $1-million, 541 tonnes of carbon was generated. The highest risk sectors are, of course, resources and oil and gas. Synfuels darling Sasol and Harmony Gold Mining are the two most exposed companies on the list. Companies could also be exposed to carbon risk as a result of their suppliers’ bad behaviour. At the same time, those companies which are relatively more carbon efficient could gain a competitive advantage. Time to have another look at your investment strategy?

BRIEFING

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Coal accounts for 43 percent of the world’s total CO2 emissions, according to the International Energy Association, while burning oil has a 36.7 percent share of emissions.

DESIGN INDABA'S YOUR STREET COMPETITIONLitter-strewn Acre Road in Kensington, Cape Town, is slowly being transformed into a place local residents can be proud of, thanks to the Design Indaba's Your Street competition and a team of determined Capetonians. The once-neglected residential street, which borders vacant land, can look forward to getting a football field with seating made from recycled cooldrink bottles. The structure will also be used for community notices, graffiti, and art, with an open air dance floor or performance space, MediaClub South Africa reported.

Lorena Pasquini, Hannah Williams, Mark Henning and Caitlyn ne Francis won first prize and R100,000 for the upgrade.

The competition was launched last year, and aims to improve neighbourhoods across the country, street by street. At the time of writing, the winners of the Gauteng and Durban legs had not yet been announced.

HOW TO GET HAPPY RESIDENTS: DESIGN BETTER CITIESNext time you’re buying a house, think carefully about the neighbourhood. That’s the message from researchers at West Virginia University and the University of South Carolina Upstate, who examined the connection between cities and their residents’ emotional wellbeing.

Good urban design – such as easy and convenient access to public transport, ease of access to shops, the presence of libraries, parks and sports facilities – promotes the happiness of urban dwellers, the study said. The research examined polling data from 10 cities. New York, London, Paris, Stockholm, Toronto, Milan, Seoul, Berlin and Beijing were all part of the study. Places can facilitate human social connections and relationships.

“Not all neighbourhoods are the same. Some are designed and built to foster or enable connections. Others are built to discourage them (eg. a gated model) or devolve to become places that are antisocial because of crime or other negative behaviours… Some neighbourhood designs appear better suited for social connectedness than others,” the authors wrote in Urban Affairs Review, an academic journal on cities.

The more respondents felt their city was beautiful, felt it was clean, and felt safe walking at night, the more likely they were to report being happy. Likewise, being able to trust their city’s tap water, and believing that the city was a good place to rear children, was also correlated with happiness.

Africa continent generated 101,257 GWh of hydropower in 2009, the latest year in which statistics are available from the International Energy Agency. Its total electricity production amounted to 632,822 GWh in that year, with coal and gas contributing well over half this amount.

In order to meet growing demand for energy, particularly in developing countries, the world will have to invest 1.4 percent of global GDP each year in energy-supply infrastructures to 2035, according to the International Energy Association.

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RENEWABLE ENERGY PRICES WILL SOON COMPETE WITH COALSolar and wind power companies are approaching the point where they will not need subsidies to generate electricity at a price which is competitive with fossil fuels, Bloomberg reports.

Chinese group Suntech Power Holdings said solar will reach parity with fossil fuels by 2015. Danish wind company Vestas said wind was already in some cases fully cost competitive with fossil fuels. It said fossil fuel prices would continue to rise, increasing the competitiveness of new technologies.

New electricity generation from the wind, sun, waves and biomass was worth $187-billion in 2010, compared with $157-billion for added capacity from natural gas, oil and coal. Subsidies for renewables totalled $66-billion worldwide in 2010.

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An estimated 1.4 billion people lack access to energy around the world, while 3 billion people rely on traditional biomass fuels for cooking, heating, and other basic household needs, according to the UN Environment Programme.

MEXICO TO REAP CARBON ROYALTIESMexico is the first country in the world to earn a royalty on carbon credits generated from energy-saving light bulbs distributed by Australian company Cool nrg (pronounced “Cool Energy”), said the project’s backers, Bank of America Merrill Lynch.

Cool nrg aims to distribute 45 million energy efficient lightbulbs, supplied by Philips, to 6.5 million low-income households in Mexico City, Reuters reported. In total, the project aims to save 16 million tons of CO2 over 10 years. The deal was announced in November 2011.Every ton of carbon dioxide saved will generate a carbon credit which Cool nrg will sell to companies in developed countries who need to cut their emissions. These proceeds will be used to pay a royalty to the Mexican government.

• There were around 820 loss-relevant events, with 90 percent of the catastrophes being weather- related, although nearly two-thirds of the economic losses were due to earthquakes.• Around 70 percent of the economic losses occurred in Asia.• 27,000 people lost their lives in natural disasters, excluding the famine in the Horn of Africa, which was the year’s worst humanitarian disaster.• The year’s most destructive event was the 9.0 earthquake which hit Japan – the strongest earthquake ever recorded in the country, triggering a massive tsunami. 16,000 people were killed, despite protective dykes and an early-warning system. Even without considering the consequences of the nuclear accident at Fukoshima, the economic losses resulting from this event amounted to US$210-billion – the costliest natural catastrophe of all time. “Experts believe that an earthquake of this strength occurs there once every 500 to 11,500 years,” Munich Re said.• By contrast, the 6.3 magnitude earthquake in

Christchurch, New Zealand, which devastated the city, caused $16-billion worth of damage.• Thailand’s floods, which claimed the lives of 800 people, were the worst in 50 years. Approximately 25 percent of the world’s supply of computer hard drive components was impacted, as well as seven major industrial areas.• Tornado season in the United States caused economic losses to total $46-billion, mainly in the country’s Midwest and the southern states. Insured losses, which amounted to $25-billion, were twice as high as 2010, the previous record year for tornadoes. • Losses from North Atlantic hurricanes were moderate, but, said Munich Re, this was purely by chance. Eighteen tropical cyclones were recorded in the season, way above the long-term average (11) and even higher than the average since the mid-1990s (15). The number of hurricane-strength storms (6) was in keeping with the long-term average, but few cyclones made landfall. Economic losses from Hurricane Irene totalled US$15-billion in the Caribbean and the USA.

THE HEFTY COST OF NATURAL DISASTERS

Africa generates 3.1 percent of the world’s energy supply, up from 1.8 percent in 1973, accord-ing to the International Energy Association.

2011 WAS THE COSTLIEST YEAR EVER IN TERMS OF NATURAL DISASTERS, according to reinsurance firm Munich Re. Global economic losses from natural disasters amounted to US$380-billion.This was nearly two thirds higher than 2005, the previous record year, because of the earthquakes in Japan (March) and New Zealand (February).

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ORIGIN OF THE EARTH’S WATER Given the importance of water, a fundamental question to ask is where water originated. There is no simple answer, but several theories have been advanced to explain its origin. Surprisingly, the latest studies in astrophysics reveal that water is not a natural product of Earth, since Earth was formed with almost no water at all. Even more surprisingly, water may have an extraterrestrial origin, arriving with giant comets and hydrous asteroids during a period of intense bombardment of the inner solar system. These comets probably came from the Kuiper Belt, situated between Neptune and Pluto (about 7,500 million km away) and the Oordt Cloud on the edge of our solar system (about 1 light-year away).

Our Moon still bears the crater scars of that period of intense bombardment; in the absence of water and an atmosphere on the Moon, no erosion has taken place, and its craters have thus been preserved. Although the Earth’s gravitational force attracted more asteroids and comets than the Moon, scars of such bombardments are almost absent: as foreign bodies entered our atmosphere, the friction caused by the atmosphere burnt up most of them. Furthermore, water has eroded away most of the impact craters so that they are no longer visible.

Comets are some of the most primitive components of our universe and are, in effect, dirty snow-balls of ice that form long characteristic fragmenting tails as they approach the Sun. Because of their remoteness and stability, they can be regarded as frozen remnants of the birth of our solar system.

This comet and asteroid bombardment took place about 4.1 billion years ago at a stage when the Earth was still very young. Such bombardments would have dumped water on the young planet, and this was retained on the surface and in the atmosphere because of Earth’s gravity. On the other hand, Mars and our Moon lost most of their water, which evaporated back into space because they had insufficient gravity to retain it. Another important fact that contributed to Earth’s retention of water is its distance from the Sun. The Earth’s surface temperature happens to be ideal for maintaining water in a liquid form, which is an essential property for sustaining life. Planets closer to the Sun, such as Venus, are too hot, and any free water would evaporate back into space. Conversely, a planet such as Mars, which is more distant from the Sun, may retain water, but only in a frozen state.

We know that surface water was definitely present on Earth about 3.9 billion years ago and was deposited over a period of about 1 billion years prior to that.

Extract taken from The Story of Life & the Environment by Jo van As, Johann du Preez, Nico Smit, and Leslie Brown, published by Struik Nature, an imprint of Random House Struik. For more information, visit www.randomstruik.co.za

GREEN TIMES (GT) IS SOUTH AFRICA’S WEEKLY GREEN NEWS PORTAL FEATURING SOLUTIONS-FOCUSED, PRO-ACTIVE ARTICLES TO INSPIRE AND INFORM CLIMATE SOLUTIONS and a sustainable future as well as an active Green Calendar and Directory. Focused on the development of sustainability thinking, coupled with practical implementation and innovation, GT publishes green news daily (since 2008) on www.thegreentimes.co.za and sends out a weekly, free, national and international newsfeed to subscribers. Through partnerships with the green business sector, GT shares environmental best practice stories and creative solutions to support the education and transformation of our society. The editor, Elma Pollard, also runs an online course for the development of eco journalists, called Write for Earth.

GREEN TIMES

www.thegreentimes.co.za

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HOW DOES YOUR GARDEN GROW? Who says a small living space means you have to make do without growing your own herbs and veggies? We love the new MiniGarden from Terrace Living, which means you can grow flowers, herbs and vegetables on your balcony – or even in your kitchen or living room. The modular vertical gardening system, available in white, grey or black, can be used indoors and out. Each MiniGarden module, has three cavities, a lid and six circular clips, and comes with a range of products needed to build a small garden, including soil, plants, gloves and other accessories. www.terraceliving.co.za

INTO THE FUTURE / REIMAGINING OUR CITIESTHESE TWO BIG IDEAS COULD CHANGE THE FACE OF OUR CITIES

Sinking the railway lines between the Cape Town and Woodstock stations. It’ll cost billions, but free up some 3-million square metres of central land for creative

city design and development. Intersite, the property division of the Passenger Rail Agency of South Africa (PRASA), will complete a feasibility study by 2012.

Creating a massive urban park in downtown Joburg by decking over the railway lines into Park Station. The design – by MMA Architects in association

with Cohen and Judin, Fiona Garson Architect and Rhizome Management Services – would create a pedestrian-friendly link from the station to the rest

of the inner city. According to the Johannesburg Development Agency, which issued the call for proposals, it’s a strategic priority for the city over the next five

to 10 years.

SA TRENDS

BOTANICAL WALL ART Durban-based photographer and designer Clinton Friedman’s new

wallpaper range features more of his signature graphic designs inspired by the intricate designs found in nature. Particularly renowned for his

Aloe Prints, Herbarium Pressings and Polaroid Studies, Friedman’s latest ‘Fotografik Botanika’ collection features graphic botanicals, florals and

feathers in eye-catching wall coverings that are works of art in their own right. Shown here are the ‘Strelitzia Nicolai’ and ‘Black Modern Museum’.

www.clintonfriedman.com

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SA TRENDS

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LADUMA!Since he showed his knitwear designs at the Design Indaba earlier this year, 25-year-old Laduma Ngxokolo has been overwhelmed with invitations to speak, sell, collaborate and show his work at home and overseas. His range of men’s mohair sweaters with bright motifs inspired by Xhosa beadwork began as a university project for his textile studies at Nelson Mandela Metropolitan University. He designed them for amakrwala, young Xhosa men who are completing their six-month initiation program after attending initiation school. As a rite of passage into manhood, their parents give them new clothing, including high-quality knitwear by well-known brands such as Pringle. We chatted to him about his plans.

So what’s been happening since the Design Indaba?I’m working on getting my designs into production and hope for them to be available by June this year.

What has the interest from overseas been? There’s been a lot of interest from European buyers. Li Edelkoort took three pieces for her ‘Talking Textiles’ show during the Milan Furniture Fair, and Trevyn McGowan invited me to take part in Southern Guild next year.

Why mohair?It’s lightweight, sustainable, warm and has a good sheen. And I live in Port Elizabeth, the world capital of mohair, so my line has the potential to boost the local economy.

URBAN LENSA LEADING ARCHITECT DAVID ADJAYE RETURNS TO HIS AFRICAN ROOTS, CAMERA IN HAND. THE RESULT? ONE OF THE FIRST SURVEYS OF URBAN ARCHITECTURE IN AFRICA

Which structures stood out for you on your travels?The mud city, Djenne, in Mali, which is rebuilt every season. There’s such an immense craft and artisan culture in places like this. On the other hand, you get cities like Tripoli in Libya, a sort of socialist Islamic country with incredible developmental ideas about housing – you’d never say you were in Africa. It also has this rationalist Italian past so you see these beautiful Art Deco buildings all over the city.

What fascinates you about urban life?To me, it’s this wonderful matrix that allows different communities to come together in close proximity of each other and contribute to this ultimately rich city life.

What were your impressions of Pretoria?I found it incredibly administrative because of all the embassies there, and the homes are all kind of centred around these buildings. Joburg, on the other hand, has the most unbelievable buildings. I love how seconds out of the city, you’re suddenly driving down a tree-lined street.

‘Hey bra, I want to get that sweater on my body!’

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OVERVIEW

WE PRESENT OUR SELECTION OF SOME OF THE BEST SOUTH AFRICAN DESIGN. THESE DESIGNS TRAVELLED TO THE MILAN FURNITURE FAIR IN APRIL 2012.

PICK OF THE BUNCH

CATEGORY DESIGNER OF THE YEAR /FURNITUREWHO Award-winning designer Gregor Jenkin is known for creating functional objects that are both thoughtful and thought-provoking. Each piece is a result of searching for a new way of doing something old; of making the commonplace unusual. THE PRODUCT The distinct shape of this ‘Engrained’ wardrobe is inspired by feed

and grain silos, a South African agricultural landmark. It’s made from a sustainable composite of materials including plywood and velcro. WHY WE LOVE IT We admire Gregor’s old-worldly craftsmanship, along with his attention to detail – visible in this restrained yet imposing design. www.gregorjenkin.com

CATEGORY YOUNG DESIGN TALENT OF THE YEAR WHO Twenty-four year old Malawian Raymond Masara, who’s based in Cape Town, has been making waves in the field of furniture design with his steel-rod wire-works. He was labelled an emerging creative at Design Indaba 2011.

THE PRODUCT ‘Outdoor Wire Stools’. “The colours are inspired by nature and the twisting represents my childhood – the poverty and pain that I faced growing up in the villages,” says Raymond. WHY WE LOVE IT With their playful lines and bright colours, Raymond’s wire chairs are an exciting and fresh take on outdoor seating. www.raymondmasara.com

CATEGORY FABRIC WHO Ardmore is well known for its vibrant use of colour and detailed, energetic ceramic designs. Now, their distinctive imagery and luxurious styling have been translated into a fabric range for cushions, curtains and upholstery. THE PRODUCT The fabric on Ardmore’s ‘Qalakabusha Sofa’ (which means ‘new beginnings’) – a signature piece from their latest collection – which was nominated for the ‘Most Beautiful Object in South Africa’ award at Design Indaba. WHY WE LOVE IT The departure of Ardmore Ceramic Company into fabric design is a welcome extension of what is a distinctive and well-loved South African visual signature.www.ardmoreceramics.co.za

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CATEGORY TABLEWARE (CRAFT)WHO ‘Wola Nani’ is a non-profit organisation that empowers individuals and communities affected by HIV/Aids. Its skills training and income generation programmes enable 60 independent craft artists to earn a sustainable income by working from home.THE PRODUCT A new range of papier-mâché ‘African Print Bowls’, specifically created for the Indalo Project. Inspired by vibrant print fabrics from Congo, these bold contemporary designs are available in a variety of colours and sizes.WHY WE LOVE IT For elevating the craft of papier-mâché, and the geometric patterns and colours. www.wolanani.co.za

CATEGORY FABRIC WHO Award-winning Laduma Ngxokolo exploded onto the fashion scene in 2011. Effortlessly fusing a euro-centric aesthetic with his familiar Xhosa herit-age, Laduma strives to educate and elucidate a very particular look that has never been more important – or current. THE PRODUCT ‘Xhosa Time Piece’. Moving away from knitwear, but continuing to be inspired by Xhosa beadwork, Ngxokolo decided to integrate his herit-

age into a functional object – the clock. WHY WE LOVE IT Laduma finds his inspiration in traditional Xhosa initia-tion rituals and knitwear designs. www.africanknitwear.com

CATEGORY LIGHTING WHO Adriaan Hugo and Katy Taplin are the duo behind Joburg-based label Dokter & Misses, who first joined forces in 2004. Their designs are a celebration of pattern and primary colours, which they

like to describe as ‘Bauhaus meets Dr Alban’. THE PRODUCT The highly sculptural ‘Tugboat’ and ‘Locomotive’ lamps – constructed from sprayed mild steel and Perspex – were ‘inspired by the stone age, industrial revolution and technological advancement of man’. WHY WE LOVE IT The contrasting use of materials and child-like playfulness of shapes, colour and context. www.dokterandmisses.com

SA DESIGNS

CATEGORY OUTDOORWHO Born from a desire to build a pioneering social enterprise, the Indalo Project is a unique South African design partnership. The Xhosa word ‘Indalo’ translates as ‘creation’ or ‘nature’ and captures the essence of this remarkable initiative.THE PRODUCT Created by Cape Town-based design studio Nuno, the shapes of these wet-felted ‘Phatha Bowls’ are drawn from Zulu beer pots and hats, with patterns that reference Zulu and Xhosa beadwork and weaving.WHY WE LOVE IT The use of felt for these biodegradable outdoor planters is perfect for small balcony gardens. www.indaloproject.co.za

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