Tenth reason why you must pay attention to Green Growth – Global demand trends means SA business has to change

Kay Walsh of Deloitte has written an article listing 10 compelling reasons why South African companies must pay attention to Green Growth. Sustainability and climate change is at the top of the agenda for most companies and must be taken very seriously. Here is the tenth reason why companies need to pay attention to “Green Growth”.

Contact Kay Walsh at kaywalsh@deloitte.co.za or visit the Deloitte Sustainability and Climate Change website for more information.

Global demand trends means SA business has to change

Businesses no longer have the luxury of turning a blind eye to the „green revolution‟ – they have to keep pace with major shifts in global demand.

Unlike major emerging markets (such as India, China and Brazil), South Africa does not have a large domestic market and therefore is more heavily reliant external markets and foreign investment. This dictates that our businesses and industries remain relevant to global demand trends. As the demands of the developed and the emerging world change, so we need to adapt.

Investor confidence will be boosted if business and government demonstrate clear policies for addressing environmental concerns as well as future plans for energy sources and generation capacity.

Key here is that South African business understands and focuses on what the world is going to demand in 10 to 15 years‟ time, and gears up for it now.

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How to enhance value from your service delivery organisation

This article, prepared by Deloitte Consulting, discusses ways to enhance shared services to become more competitive. If you have any questions or require additional information, contact Mike Vincent at mivincent@deloitte.co.za.

Enhancing Value From Your Service Delivery Organisation

Increasing competitive pressures, coupled with the ongoing push by shareholders for enhanced controls, has made service delivery capabilities for a company’s general and administrative (G&A) functions more important than ever before. Companies are working to drive down costs as well as to enable the business to focus on core strategic challenges rather than simply “run the engine.”

In such an environment, senior executives face a hard reality: To stay competitive, a company’s service delivery organisation must either continually improve by driving down costs, or else risk falling behind. Standing still is not an option.

Many companies have used shared services organisations and outsourcing for non-core, transactional activities to generate economies of scale and improve productivity. Now, companies are searching for ways to further develop these approaches and take service delivery to the next level.

We believe that many companies can find important opportunities to enhance service delivery effectiveness by:

• Expanding their service delivery organisation’s functional scope
• Enhancing internal customer management
• Creating a strong service culture
• Rethinking facilities and infrastructure

Companies that adopt leading-edge approaches in these areas can gain the ability to leapfrog the competition by reaping enhanced benefits from their service delivery organisations.

Increasing competitive pressures will continue to force companies to scrutinise G&A functions to understand how they can better drive shareholder value. Yet most service delivery organisations are the result of a series of individual decisions over the years, resulting in piecemeal operating models that are unable to sustain or expand value for the company.

The need to improve operating efficiencies while simultaneously maintaining or increasing internal customer satisfaction makes it imperative for companies to constantly reexamine their service delivery organisations’ strategy and operations. Companies should analyse their past service delivery approaches and experiences to learn what worked well and what did not. In addition, they should look at and learn from innovative service delivery approaches that other companies are using to achieve success.

For their part, service delivery organisations should make a concerted effort to redefine themselves as strategic business partners and trusted advisors that can help their companies achieve their strategic objectives.

Innovation, fortitude, and a relentless passion for continual realignment and improvement are the defining characteristics of service delivery organisations capable of leapfrogging the competition to become tomorrow’s leaders.

Download the full article . . . .  How to enhance value from your service delivery organisation

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Ninth reason why you must pay attention to Green Growth – Green Growth creates huge business opportunities

Kay Walsh of Deloitte has written an article listing 10 compelling reasons why South African companies must pay attention to Green Growth. Sustainability and climate change is at the top of the agenda for most companies and must be taken very seriously. Here is the ninth reason why companies need to pay attention to “Green Growth”.

Contact Kay Walsh at kaywalsh@deloitte.co.za or visit the Deloitte Sustainability and Climate Change website for more information.

Green Growth creates huge business opportunities

The world is ripe for start-up companies to take advantage of the rush to go green. The trend is stimulating innovation as well as improved research and development. It is creating new markets and products by stimulating demand for green technologies, products and services. This also creates new skill sets and job opportunities.

Consumers are buying new products including smart electricity meters, solar water geysers and rain water harvesting systems.

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Filed under: Executive Leadership, Finance, Information Technology, Risk Management, behavioural changes, biodiversity, Carbon Tax, ceo, climate change, DBSA, Deloitte, Department of Energy, Development Bank of SA, DOE, economic growth, energy generation, energy-efficient technology, environmental degradation, Environmental Fiscal Reform Policy paper, environmental problems, environmental taxes and incentives, environmentally friendly growth, fossil-fuel, GHG, global green trends, green, Green Growth, green initiatives, green revolution, growth and development targets, harsh penalties, High carbon content, IDC, incentives for becoming greener, Industrial Development Corporation, innovation, Integrated Resources Plan, Long-Term Mitigation Scenarios report, lower greenhouse gas emissions, National Treasury, natural environment, natural resource, oil prices, renewable sources, Stern review, sustainability, sustainable energy efficiency

Eighth reason why you must pay attention to Green Growth – Climate change is already posing a risk to bottom lines

Kay Walsh of Deloitte has written an article listing 10 compelling reasons why South African companies must pay attention to Green Growth. Sustainability and climate change is at the top of the agenda for most companies and must be taken very seriously. Here is the eighth reason why companies need to pay attention to “Green Growth”.

Contact Kay Walsh at kaywalsh@deloitte.co.za or visit the Deloitte Sustainability and Climate Change website for more information.

Climate change is a fact and is already posing a risk to bottom lines

One of the most obvious reasons for supporting Green Growth is the potential impact of climate change on the world, on Africa, and on South Africa in particular. The Stern review (2006) famously discussed the effects of global warming and a changing environment on the world economy. It concluded that large irreversible impacts from climate change could be anticipated, that basic elements of life would be affected (access to water, food, health and land use) and that the impacts could be from 5% of GDP up to 20%, depending on assumptions used.

Government has noted that the scientific evidence for a link between increasing atmospheric concentrations of GHGs and rising global temperatures is overwhelming and that even if GHG emission were stabilized at 2006 levels average global temperatures are likely rise by between 2-5°C. This would have a serious impact on human life and the environment particularly in a water-stressed developing country like South Africa where 64% of people are still employed in the primary sector.

The risks arising out of climate change, such as increased temperatures negatively impacting African crop yields, food security, subsistence farmers, and access to water, are enormous and worrying. These could cause mass migrations of people and increased political instability. These are very real risks for business operating in or adjacent to these areas.

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Filed under: Executive Leadership, Finance, Information Technology, Risk Management, behavioural changes, biodiversity, Carbon Tax, ceo, climate change, DBSA, Deloitte, Department of Energy, Development Bank of SA, DOE, economic growth, energy generation, energy-efficient technology, environmental degradation, Environmental Fiscal Reform Policy paper, environmental problems, environmental taxes and incentives, environmentally friendly growth, fossil-fuel, GHG, global green trends, green, Green Growth, green initiatives, green revolution, growth and development targets, harsh penalties, High carbon content, IDC, incentives for becoming greener, Industrial Development Corporation, innovation, Integrated Resources Plan, Long-Term Mitigation Scenarios report, lower greenhouse gas emissions, National Treasury, natural environment, natural resource, oil prices, renewable sources, Stern review, sustainability, sustainable energy efficiency

Seventh reason why you must pay attention to Green Growth – Reduction of energy prices and volatility

Kay Walsh of Deloitte has written an article listing 10 compelling reasons why South African companies must pay attention to Green Growth. Sustainability and climate change is at the top of the agenda for most companies and must be taken very seriously. Here is the seventh reason why companies need to pay attention to “Green Growth”.

Contact Kay Walsh at kaywalsh@deloitte.co.za or visit the Deloitte Sustainability and Climate Change website for more information.

Green Growth will reduce energy prices and their volatility

It is vital that government aim not only to limit increases in energy prices, but also volatility in these prices. The extreme volatility in oil prices in the last few years has wrecked havoc with business planning and risk management. But fluctuations in oil prices are difficult control since it is a tradable commodity vulnerable to a wide range of supply and demand shocks. Green Growth initiatives that promote renewable energy generation should in the medium to long term reduce our reliance on fossil-based fuels. Energy generated from renewable sources promises to be far more price stable than fossil-fuel based energy since a utility will either own its renewable generation or will secure it through a power purchase agreement, where the price is known and essentially fixed over time.

More stable energy prices mean more stable general price inflation, lower currency volatility and in general more balanced macroeconomic conditions. Business will benefit from both a planning and hedging point of view, and should be in a better position to predict the risks around input costs and currency.

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Filed under: Executive Leadership, Finance, Information Technology, Risk Management, behavioural changes, biodiversity, Carbon Tax, ceo, climate change, DBSA, Deloitte, Department of Energy, Development Bank of SA, DOE, economic growth, energy generation, energy-efficient technology, environmental degradation, Environmental Fiscal Reform Policy paper, environmental problems, environmental taxes and incentives, environmentally friendly growth, fossil-fuel, GHG, global green trends, green, Green Growth, green initiatives, green revolution, growth and development targets, harsh penalties, High carbon content, IDC, incentives for becoming greener, Industrial Development Corporation, innovation, Integrated Resources Plan, Long-Term Mitigation Scenarios report, lower greenhouse gas emissions, National Treasury, natural environment, natural resource, oil prices, renewable sources, Stern review, sustainability, sustainable energy efficiency

Sixth reason why you must pay attention to Green Growth – High carbon content products may be banned

Kay Walsh of Deloitte has written an article listing 10 compelling reasons why South African companies must pay attention to Green Growth. Sustainability and climate change is at the top of the agenda for most companies and must be taken very seriously. Here is the sixth reason why companies need to pay attention to “Green Growth”.

Contact Kay Walsh at kaywalsh@deloitte.co.za or visit the Deloitte Sustainability and Climate Change website for more information.

High carbon content products may be banned by developed countries

South African exports could potentially be banned by developed countries if they are high in carbon content (carbon intensity in production). This will be driven by environmental concerns, but also by the intent of protecting and stimulating local economies. Trade partners may start using carbon-content as a form of non-tariff barrier or border tax adjustment policy.

Cross-border adjustments will put pressure on developing countries to follow suit in terms of reducing carbon emissions, but also enable developed countries to protect their local industry.

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Filed under: Executive Leadership, Finance, Information Technology, Risk Management, behavioural changes, biodiversity, Carbon Tax, ceo, climate change, DBSA, Deloitte, Department of Energy, Development Bank of SA, DOE, economic growth, energy generation, energy-efficient technology, environmental degradation, Environmental Fiscal Reform Policy paper, environmental problems, environmental taxes and incentives, environmentally friendly growth, fossil-fuel, GHG, global green trends, green, Green Growth, green initiatives, green revolution, growth and development targets, harsh penalties, High carbon content, IDC, incentives for becoming greener, Industrial Development Corporation, innovation, Integrated Resources Plan, Long-Term Mitigation Scenarios report, lower greenhouse gas emissions, National Treasury, natural environment, natural resource, oil prices, renewable sources, Stern review, sustainability, sustainable energy efficiency

Fifth reason why you must pay attention to Green Growth – Benefit from first mover advantage

Kay Walsh of Deloitte has written an article listing 10 compelling reasons why South African companies must pay attention to Green Growth. Sustainability and climate change is at the top of the agenda for most companies and must be taken very seriously. Here is the fifth reason why companies need to pay attention to “Green Growth”.

Contact Kay Walsh at kaywalsh@deloitte.co.za or visit the Deloitte Sustainability and Climate Change website for more information.

Act now and benefit from first mover advantage in Africa

As the world moves towards becoming greener the types of products demanded will start to shift towards those that meet new sets of criteria. This is an important consideration for an open economy like South Africa‟s, with aspirations of export-led growth.

There is potentially an opportunity for some first mover advantage. By being an early adopter of certain green growth policies and regulations we may be able to jumpstart our green industry such that it is competitive in global terms. South Africa may even one day compete internationally and export, or at the very least, reduce our reliance on outside producers for our own demands.

By acting now, and taking advantage of the opportunities offered by Green Growth, businesses can move rapidly down the curve to gain real competitive edge.

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Filed under: Executive Leadership, Finance, Information Technology, Risk Management, behavioural changes, biodiversity, Carbon Tax, ceo, climate change, DBSA, Deloitte, Department of Energy, Development Bank of SA, DOE, economic growth, energy generation, energy-efficient technology, environmental degradation, Environmental Fiscal Reform Policy paper, environmental problems, environmental taxes and incentives, environmentally friendly growth, fossil-fuel, GHG, global green trends, green, Green Growth, green initiatives, green revolution, growth and development targets, harsh penalties, High carbon content, IDC, incentives for becoming greener, Industrial Development Corporation, innovation, Integrated Resources Plan, Long-Term Mitigation Scenarios report, lower greenhouse gas emissions, National Treasury, natural environment, natural resource, oil prices, renewable sources, Stern review, sustainability, sustainable energy efficiency

Fourth reason why you must pay attention to Green Growth – Consumers demand green products

Kay Walsh of Deloitte has written an article listing 10 compelling reasons why South African companies must pay attention to Green Growth. Sustainability and climate change is at the top of the agenda for most companies and must be taken very seriously. Here is the fourth reason why companies need to pay attention to “Green Growth”.

Contact Kay Walsh at kaywalsh@deloitte.co.za or visit the Deloitte Sustainability and Climate Change website for more information.

Consumers demand green products

Throughout the world the mindset about going green is changing. Consumers are increasingly concerned and environmentally-conscious and this drives their behaviour. Increasingly, consumers will choose to do business only with companies who do not degrade the environment.

Al Gore‟s 2006 documentary, „An inconvenient truth‟, has been watched by millions globally, and played an enormous role in increasing consumer consciousness about climate change and sustainability.

Legislation will be introduced, and global pressure will dictate, that product labels state carbon content. People will check before they buy.

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Filed under: Executive Leadership, Finance, Information Technology, Risk Management, behavioural changes, biodiversity, Carbon Tax, ceo, climate change, DBSA, Deloitte, Department of Energy, Development Bank of SA, DOE, economic growth, energy generation, energy-efficient technology, environmental degradation, Environmental Fiscal Reform Policy paper, environmental problems, environmental taxes and incentives, environmentally friendly growth, fossil-fuel, GHG, global green trends, green, Green Growth, green initiatives, green revolution, growth and development targets, harsh penalties, High carbon content, IDC, incentives for becoming greener, Industrial Development Corporation, innovation, Integrated Resources Plan, Long-Term Mitigation Scenarios report, lower greenhouse gas emissions, National Treasury, natural environment, natural resource, oil prices, renewable sources, Stern review, sustainability, sustainable energy efficiency

Third reason why you must pay attention to Green Growth – Further carbon taxes will become a reality

Kay Walsh of Deloitte has written an article listing 10 compelling reasons why South African companies must pay attention to Green Growth. Sustainability and climate change is at the top of the agenda for most companies and must be taken very seriously. Here is the third reason why companies need to pay attention to “Green Growth”.

Contact Kay Walsh at kaywalsh@deloitte.co.za or visit the Deloitte Sustainability and Climate Change website for more information.

Further carbon taxes will become a reality

Hand in hand with incentives for becoming greener will be penalties for ignoring Government‟s push for a greener future.

The Environmental Fiscal Reform Policy paper, released by National Treasury in 2006, made clear Government’s intention to introduce environmental taxes and incentives. The Long-Term Mitigation Scenarios report (2007) and the National Climate Change Response White Paper (2011) and Carbon Tax Discussion Paper (2011) recommend the use of market-based instruments, specifically carbon taxes, to induce behavioural changes that contribute to lower greenhouse gas emissions.

Carbon tax, targeted at businesses responsible for environmental degradation, will be introduced in the future. (So far, carbon tax is only levied on Eskom and new vehicle purchases).

National Treasury is pushing heavily for carbon tax to be implemented sooner rather than later and in the carbon tax discussion paper it released in February this year noted that it believed an initial tax of R75 per ton of CO2 increased gradually to around R200 per ton CO2 (at 2005 prices) would be both feasible and appropriate to achieve the desired behavioural changes and emission reduction targets.

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Filed under: Executive Leadership, Finance, Information Technology, Risk Management, behavioural changes, biodiversity, Carbon Tax, ceo, climate change, DBSA, Deloitte, Department of Energy, Development Bank of SA, DOE, economic growth, energy generation, energy-efficient technology, environmental degradation, Environmental Fiscal Reform Policy paper, environmental problems, environmental taxes and incentives, environmentally friendly growth, fossil-fuel, GHG, global green trends, green, Green Growth, green initiatives, green revolution, growth and development targets, harsh penalties, High carbon content, IDC, incentives for becoming greener, Industrial Development Corporation, innovation, Integrated Resources Plan, Long-Term Mitigation Scenarios report, lower greenhouse gas emissions, National Treasury, natural environment, natural resource, oil prices, renewable sources, Stern review, sustainability, sustainable energy efficiency

Second reason why you must pay attention to Green Growth – Businesses will see negative bottom line impact

Kay Walsh of Deloitte has written an article listing 10 compelling reasons why South African companies must pay attention to Green Growth. Sustainability and climate change is at the top of the agenda of most companies and must be taken very seriously. Here is the second reason why companies need to pay attention to “Green Growth”.

Contact Kay Walsh at kaywalsh@deloitte.co.za or visit the Deloitte Sustainability and Climate Change website for more information.

Non energy-efficient businesses will see negative bottom line impact

The impending carbon tax will add to the existing burden of dramatically rising energy costs, which are likely to continue to trend higher over time.

Carbon tax will raise the cost of energy further. Average electricity prices in South Africa doubled between 2008 and 2011, and are likely to have doubled again by 2015. This will drive more efficient use of energy as business tries to avoid the rising costs and wastage where possible.

Businesses will have to become more efficient in terms of how they use energy resources, and this is a big advantage of the Green Growth initiative.

Industrial organisations will be forced to introduce energy-efficient technology, switch to cleaner fuel inputs, improve processes and possibly start recycling. Commercial businesses can become more energy-efficient by doing simple things that lower the cost of energy, like implementing solar energy, changing to energy-efficient lighting solutions, and switching off appliances and lights at night.”

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Filed under: Executive Leadership, Finance, Information Technology, Risk Management, behavioural changes, biodiversity, Carbon Tax, ceo, climate change, DBSA, Deloitte, Department of Energy, Development Bank of SA, DOE, economic growth, energy generation, energy-efficient technology, environmental degradation, Environmental Fiscal Reform Policy paper, environmental problems, environmental taxes and incentives, environmentally friendly growth, fossil-fuel, GHG, global green trends, green, Green Growth, green initiatives, green revolution, growth and development targets, harsh penalties, High carbon content, IDC, incentives for becoming greener, Industrial Development Corporation, innovation, Integrated Resources Plan, Long-Term Mitigation Scenarios report, lower greenhouse gas emissions, National Treasury, natural environment, natural resource, oil prices, renewable sources, Stern review, sustainability, sustainable energy efficiency