Stewardship to Strategy: ESG and Net Zero in South Africa
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Stewardship to Strategy: ESG and Net Zero in South Africa
On JustGospel's Just Business with Lindi Tshabangu, sustainability expert Sis Bongiwe Mbunge unpacked ESG (Environmental, Social, Governance) and net zero goals, anchoring the conversation in Genesis 2:15: "The Lord God took the man and put him in the garden of Eden to work it and take care of it."
Understanding ESG vs Sustainability
"Sustainability is a broader umbrella looking at how different components—business, community, academia, schools—interchange and create value," Bongiwe explained. "ESG is a performance matrix evaluating environmental impact, social equity, and governance overlay. Sustainability also encompasses economics—without commercial substance, there's nothing to discuss in business."
Environmental accountability dominates globally because of urgency. "At which point did humanity turn stewardship on its head to overuse, overburden the environment, taking decisions that yield short-term profits at the expense of an environment reaching a point of no return?"
The Carbon Footprint Journey
Every business has a carbon footprint based on production and operations. "The first question: Are you creating or eroding value? Does the sum total end in net positive or net negative?"
Bongiwe outlined the process: "Many businesses don't know their environmental impact—they've never measured their carbon footprint. That baseline is critical for leaders to understand. Measurement is only the beginning."
Three scopes exist: what you own as a business (Scope 1), grid reliance (Scope 2), and value chain/procurement (Scope 3).
Net Zero Explained
"Net zero means a pathway where value created and environmental impacts meet, canceling each other out—carbon neutrality. Net zero goes further: projecting 5-30 years ahead, transforming your business model for positive environmental impact."
The challenge? "I've seen businesses measure year after year but battle to implement fit-for-purpose strategies. We don't want leaders biting more than they can chew. Deploy resources where they make sense strategically, enhance competitive edge, and impact bottom line positively—reducing costs, increasing margins and profits. It must appeal to workforce, shaping engagement and attracting the right talent."
South African Transport Reality
South Africa uses 67-70% taxis for transport and generates power from coal. "Our biggest challenge isn't public transport—it's single-occupancy vehicles idling in traffic. One person per car, everyone seeking parking, running off coal that harms the environment."
Solutions require stakeholder engagement at industry and private-public partnership levels. "We can't make good or bad decisions in a vacuum. We need infrastructure supporting the vision to transition."
The Paris Agreement Stagnation
Since 2015, South Africa signed the Paris Agreement committing to reduce carbon footprints. "Truth be told, we've been stagnant. I say this with appreciation for our country's specific context—social equity, environmental accountability, governance—all within businesses needing to grow employment for young people."
The win-win: "How do we meet environmental goals through our social imperative? Otherwise this remains a topic for the privileged. We need mass participation to shift the needle and save a planet going south very fast with climate change."
Climate Change Reality
"Global warming refers to our warming planet due to environmental imbalances driving climate change," Bongiwe explained. South Africans now experience it: unprecedented KZN snowfall, devastating floods in KZN and Kenya, droughts in coastal Western Cape and Karoo, warmer drier winters on coasts, wetter winters in Gauteng.
"Seasons are no longer where they were. This impacts agriculture and food production, leading to food insecurity.
Stewardship to Strategy: ESG and Net Zero in South Africa
On JustGospel's Just Business with Lindi Tshabangu, sustainability expert Sis Bongiwe Mbunge unpacked ESG (Environmental, Social, Governance) and net zero goals, anchoring the conversation in Genesis 2:15: "The Lord God took the man and put him in the garden of Eden to work it and take care of it."
Understanding ESG vs Sustainability
"Sustainability is a broader umbrella looking at how different components—business, community, academia, schools—interchange and create value," Bongiwe explained. "ESG is a performance matrix evaluating environmental impact, social equity, and governance overlay. Sustainability also encompasses economics—without commercial substance, there's nothing to discuss in business."
Environmental accountability dominates globally because of urgency. "At which point did humanity turn stewardship on its head to overuse, overburden the environment, taking decisions that yield short-term profits at the expense of an environment reaching a point of no return?"
The Carbon Footprint Journey
Every business has a carbon footprint based on production and operations. "The first question: Are you creating or eroding value? Does the sum total end in net positive or net negative?"
Bongiwe outlined the process: "Many businesses don't know their environmental impact—they've never measured their carbon footprint. That baseline is critical for leaders to understand. Measurement is only the beginning."
Three scopes exist: what you own as a business (Scope 1), grid reliance (Scope 2), and value chain/procurement (Scope 3).
Net Zero Explained
"Net zero means a pathway where value created and environmental impacts meet, canceling each other out—carbon neutrality. Net zero goes further: projecting 5-30 years ahead, transforming your business model for positive environmental impact."
The challenge? "I've seen businesses measure year after year but battle to implement fit-for-purpose strategies. We don't want leaders biting more than they can chew. Deploy resources where they make sense strategically, enhance competitive edge, and impact bottom line positively—reducing costs, increasing margins and profits. It must appeal to workforce, shaping engagement and attracting the right talent."
South African Transport Reality
South Africa uses 67-70% taxis for transport and generates power from coal. "Our biggest challenge isn't public transport—it's single-occupancy vehicles idling in traffic. One person per car, everyone seeking parking, running off coal that harms the environment."
Solutions require stakeholder engagement at industry and private-public partnership levels. "We can't make good or bad decisions in a vacuum. We need infrastructure supporting the vision to transition."
The Paris Agreement Stagnation
Since 2015, South Africa signed the Paris Agreement committing to reduce carbon footprints. "Truth be told, we've been stagnant. I say this with appreciation for our country's specific context—social equity, environmental accountability, governance—all within businesses needing to grow employment for young people."
The win-win: "How do we meet environmental goals through our social imperative? Otherwise this remains a topic for the privileged. We need mass participation to shift the needle and save a planet going south very fast with climate change."
Climate Change Reality
"Global warming refers to our warming planet due to environmental imbalances driving climate change," Bongiwe explained. South Africans now experience it: unprecedented KZN snowfall, devastating floods in KZN and Kenya, droughts in coastal Western Cape and Karoo, warmer drier winters on coasts, wetter winters in Gauteng.
"Seasons are no longer where they were. This impacts agriculture and food production, leading to food insecurity.
