Bernice Swarts Urges Business Leaders to Drive ESG and Sustainable Practices in SA

Speaking at the Annual ESG Africa Conference in Johannesburg, she emphasized the growing importance of ESG investing, as businesses globally face increasing demand from investors to adopt sustainable practices.

Deputy Minister of Forestry, Fisheries, and the Environment, Bernice Swarts, has called on business leaders to integrate environmental, social, and governance (ESG) principles into their corporate strategies to reduce pollution, CO2 emissions, and waste. Speaking at the Annual ESG Africa Conference in Johannesburg, she emphasized the growing importance of ESG investing, as businesses globally face increasing demand from investors to adopt sustainable practices.

Swarts highlighted that focusing only on financial performance is no longer sufficient, as stakeholders now expect companies to consider the long-term environmental and social impacts of their operations. She pointed out that South Africa, with its rich natural resources and diversified economy, is well-positioned to become a leader in the global ESG investment market.

"Good corporate governance requires an acknowledgement that an organization is an integral part of society, and therefore has accountability towards current and future generations," Swarts stated.

South Africa is also aiming to become a leader in green hydrogen, renewable energy, and sustainable industrialization, thanks to its critical minerals, ample solar and wind energy, and other resources. The Deputy Minister stressed that a transition to a low-carbon economy will not only strengthen South Africa’s global competitiveness but also create opportunities to address poverty, inequality, and unemployment.

Swarts underscored the urgent need for South Africa to move towards a more equitable, environmentally sustainable, and low-carbon future. "A just transition to a low-carbon economy will make South Africa’s economy more resilient, contributing to poverty reduction, job creation, and economic equality," she added.

The Deputy Minister also acknowledged the significant challenges faced by developing nations in combating climate change, including inadequate public financing. While these nations contribute the least to the climate crisis, they bear a disproportionate share of its costs.

"Like the rest of Africa, South Africa is vulnerable to water, food security, health, and infrastructure challenges due to climate change," Swarts said. She stressed the importance of adopting sustainable practices to reduce carbon footprints, conserve natural resources, and build more resilient communities.

Swarts also addressed the ongoing impact of the COVID-19 pandemic and the worsening global economic outlook, which have severely affected the ability of developing countries to meet the United Nations’ Sustainable Development Goals (SDGs). She cited studies showing that only 6% of Africa’s SDGs are on track, while many targets are moving in reverse.

To meet the SDG investment needs by 2030, an additional $24 trillion is required globally, with $8 trillion needed for Africa alone. However, current economic conditions and financial constraints make this a daunting task. Swarts called for urgent action to secure sustainable investment to prevent further inequality and ensure progress toward a sustainable future.