Rhodes Investec Business School (RIBS) has been active in the Professional Management Review (PMR) lately. Owen Skae, Director of RIBS, presented an address at the PMR Africa Achievers breakfast in Port Elizabeth last week, and Leticia Greyling, who recently joined RIBS to co-ordinate their environmental and sustainability cluster for the 'Leadership in Sustainability' MBA, had an article published in their latest magazine.
The thrust of Greyling’s piece is a clarion call to business that the climate change debate has passed the “is it really happening?” stage and is now being discussed in terms of impacts and opportunities by the private sector, governments and society as a whole. Greyling puts it bluntly: if your business is not yet having this discussion, you'll be following in the footsteps of your competitors.
There is, as yet, no international legislative framework for managing climate change. In many countries, however, both developed and developing, the initiative is being taken ahead of any such measures. Greyling outlines the Republic of Korea's approach, where around 80% of their fiscal stimulus package is dedicated to green measures. Their efforts have been applauded by UN Secretary General, Ban Ki-moon. Similarly, China has designated a minimum of US$51 billion towards environmental protection and biological conservation.
Back on our own shores, the South African Government is set to issue a Green Paper on Climate Change, dealing with how the country will achieve the carbon-cutting promises it made in December's Copenhagen Accord.
The National Treasury has announced it is on course to release a discussion document on a carbon tax, which will look at measures to implement carbon pricing. Additionally the 2010 Budget Speech by Minister Gordhan made reference to climate change and energy supply. The message to business is clear – if you're not on board, you're in danger of being left behind.
BUSA (Business Unity South Africa) has established a committee to begin working on an informed business position. This committee will deal with technical issues, including promulgating understanding, at both sectoral and company level, of the changes that will be required to the way business is conducted, and how to achieve the level of change that will be required to adequately implement the new structures.
The NBI (National Business Initiative) and partners hosted the Climate Change and Business Conference in March and, as Greyling states in her article, the overriding conclusion on climate change is this: Get Involved! For businesses and managers who don't heed this advice, the risk of being left behind, and losing the confidence of their share and stake holders, is very real. Not to mention that employees may well choose to join other firms who have already embraced the risks and opportunities offered and who are changing their leadership to operate in more creative, innovative ways.