SA companies should focus on meeting the requirements for a ‘green economy’

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The public and civil society taking action to ensure compliance with environmental sustainability local and international laws and treaties is likely to gather

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We are likely to see a lot of development in this space, largely because of the wealth of international jurisprudence and development around the right to a healthy environment that is protected for future generations. This includes successful consumer litigation against energy companies, pension funds and governments.

Smart businesses and funders will note a shift from the current emphasis on voluntary adoption of some sustainability guidelines to a more compliance-driven approach. The treasury released the Green Finance Taxonomy for South Africa in April 2022, but it has not been legislated. It provides a “national working draft” for the classification of assets, projects, initiatives and sectors as “green”.

Such companies must identify the negative and positive effects of their operations and value chains on people and the environment and disclose all sustainability issues likely to significantly impact their financial health and operational performance.

 

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