by Shabir Ahmed, Industry Advisor: Energy & Resources at SAP Africa JOHANNESBURG, South Africa, 01 March 2023 -/African Media Agency/- A growing wealth of evidence shows that sustainability has become a mainstream business and societal issue.
At or near the top of priority lists is the transition to cleaner, more sustainable and less environmentally-damaging forms of power generation, mostly from renewable energy sources such as wind and solar. In emerging markets, investments into clean energy are more complex, partly due to the availability of natural resources, where fossil fuels such as coal are easy to mine and readily available.
Much of Africa is still in a process of industrialisation and urbanisation, a transition that developed economies have long since completed. To build industries, support economic development and accommodate a rapidly growing population, African countries need access to affordable, readily available forms of energy.
This has led to huge investment into solar energy as a means of keeping the lights on. The power generated through solar helps power mining fleets and support the running of the entire operation. Some mining companies have even invested in hydrogen-powered vehicles as a means of reducing reliance on the grid.
Secondly, companies that can effectively manage their ESG risks can see a boost to their reputation, improved management of tax costs, and greater scope for investment to unlock long-term value. Incorporating sustainability into the core business strategy therefore holds the potential to deliver immense benefits, and should be a top priority for business leaders.