Green Business Journal Issue 12

MAY/JUNE 2014 • ISSUE 12

MIND THE GAP

THE SHIFT IN HOW YOUR COMPANY’S SUSTAINABILITY IS VIEWED

TSHWANE GREEN ECONOMY FRAMEWORK

GREEN BUILDINGS AND THE EMERGING ECONOMY

R29,00 - (VAT INCL) 06012

SUSTAINABILITY WEEK PREVIEW

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True mine rehabilitation with Advance Seed W

hen a mine closes the effects on the environment can be debilitating. But this needn’t be the case, says Neils Harmuth from Advance Seed, who guides us through a map for the effective rehabilitation of the natural environment, following a mine closure.

According to Harmuth once a mine reaches the end of its lifecycle, the environment around it cannot be left to its own devices, but instead should be carefully rehabilitated in order to support the natural environment.

“A major problem with the soil in the area of a closed mine is that it lacks nutritional value, which immediately hinders the rejuvenation of plant life.

Coated seeds from Advance Seed, other than nutrients also have a range of fungicides, insecticides and growth stimulants, within the coating. This provides germinating seedlings with a better chance of gaining a foothold in nutrition starved landscapes, such as in old mining areas.It is however important to note that the benefits to the seedlings provided by the coating in itself, is not sufficient to sustain continued growth of young seedlings without soil amelioration forming part of the whole rehabilitation process.

Harmuth says that coated seeds have proven their effectiveness in the agricultural sector. Their use in rehabilitative environments is therefore a logical step.

Many grass seeds tend to be light, difficult to plant and can easily blow away, as well as be eaten by birds or insects. Coated seeds, on the other hand, have added weight that improves plant ability and flow within the planter mechanism. In some cases research has shown that the colour of the coating acts as a deterrent to some bird species.

Much of the success of the seeds taking root is that we have complete control over the formulation used in the coating, which we can tailor to the unique demands of the environment. Typically when working in rehabilitating an ex mining environment we tend to place the emphasis on a coat that can assist with both growth as well as soil management aspects related to particular grass species.

A fair amount of science needs to be applied in the rehabilitation process and the Advance Seed team have invested significantly into research, from both the University of the North West and Pretoria, to determine which species as well as which coatings will work best for each individual environment. The application of this, and the success of the reintroduction of vegetation, will then aid in bringing soil in an area back to what it was prior to mining operations.

But how does Advance Seed achieve this? According to Harmuth: “We start by providing commercial indigenous grass species to the mine sites, enabling them to establish plant life in the area. Once the plant life is properly established, the overall ecology slowly comes back into balance, as insects, microbes and natural chemicals assist in ameliorating the soil,” he says. “By providing the natural habitat with a ‘leg up’ we short circuit a process that if left to its own devices may take decades to reach its former equilibrium.”

Rehabilitation is not just in place to beautify an area; government itself is taking the process incredibly seriously and are pushing mining companies to speed up the process of rejuvenating the land where they once mined. Harmuth says that Agricote seeds go a long way in helping kick start successful environmental rehabilitation.

But with all projects there are barriers to entry and Harmuth says that a lack of education amongst many mining officials means that not everyone understands firstly the benefits of faster rehabilitation and secondly the benefits of coated seeds.

“The whole nature of rehabilitation goes far beyond just the seed and I believe that there needs to be a fair amount of education around the entire process of rehabilitation, which includes the proper preparation of the seedbed beforehand, as well as the geographic layout of the land. For example, planting on a slope brings up an entirely new set of challenges, such as soil run-off (erosion) when it rains,” he mentions.

“Rehabilitation does not happen over night, it is a long and diverse process, what is truly amazing however is how once the seeds have established themselves – Mother Nature quickly takes over our job and does it all on her own,” ends Harmuth.

ABOUT ADVANCE SEED Established in 1966 Advance Seed, a division of Alliance Grain Traders Inc, is a South African based agricultural production, processing and trading organisation. Advance Seed provides crop production, cleaning, grading and processing, marketing and sales, products and services and is also involved in the export of speciality crops to a costumer base in over 50 countries around the world. In addition its seed coating plant supplies enhanced coated seed, via its AgriCote brand, to the local and African agricultural markets. Its highly skilled workforce, extensive knowledge of the markets in which it has a presence and its ability to assure quality product, ensure Advance Seed is able to meet and exceed its customer’s price, quality, excellence in deliveries and service expectations.

For more information please visit http://www.advanceseed.com.

ABOUT ALLIANCE GRAIN TRADERS Alliance Grain Traders Inc. Profile 
Alliance Grain Traders Inc. (AGT) is a value-added pulse, staple food and ingredient processor for export and domestic markets. Through its offices and processing facilities located in some of the best agricultural growing regions in Canada, the U.S., Turkey, China, Australia and South Africa and merchandising and sales offices in the U.K., the Netherlands and Spain, AGT produces a full range of pulses and specialty crops including lentils, peas, chickpeas, beans and canary seed as well as food ingredients such as pulse flours, proteins, starches and fibres. Through its subsidiaries in Turkey, the Arbel Group, AGT also produces staple foods such as Arbella Pasta, rice, and milled wheat products, including bulgur and semolina.

Marketing Contact Dean Miller Group Marketing - Advance Seed +27 11 762 5261 dean@advanceseed.com

Namibia 28

Mpumalanga 57

North West 47 Northern Cape

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Limpopo 46

Botswana 12

Gauteng 161

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Natal 68

Free State 21

Total Retail Footprint Southern Africa Western Cape

Swaziland 13

Eastern Cape 46

Lesotho 4

EDITORIAL Using information in the public domain to inform sustainability strategy

MANAGING EDITOR: Lloyd Macfarlane LMacfarlane@alive2green.com

PRODUCTION: Nicole Julius

ADMIN MANAGER: Suraya Manuel

LAYOUT AND DESIGN: Nicole Kenny

DIRECTORS: Lloyd Macfarlane Gordon Brown Andrew Fehrsen

DIVISIONAL SALES MANAGER: Annie Pieters

SALES EXECUTIVES: Lupumlo Nika Elna Willemse

PRINTING: SED Print

PUBLISHER: Alive2green

PHYSICAL ADDRESS: Cape Media House 28 Main Road Ronderbosch 7700 Cape Towm

TEL: 021 447 4733

FAX: 086 694 7443

Websites: www.greenbusinessjournal.co.za www.alive2green.com

DISTRIBUTION AND COPY SALES ENQUIRIES: distribution@alive2green.com INTERNATIONAL FRANCHISE ENQUIRIES: info@alive2green.com

ADVERTISING ENQUIRIES: sales@alive2green.com

EDITORIAL PROPOSALS: lloyd@gsacampbell.com

Company Registration Number: 2006/206388/23 Vat Number: 4130252432 ISSN No.: 2225-5974 Issue 7 Published: May 2014

MIND THE GAP

THE SHIFT IN HOW YOUR COMPANY’S SUSTAINABILITY IS VIEWED

Some may find all this information and all these options quite daunting and may be wondering which system they should be using they should be focussing on, however the fundamental principles contained in these frameworks are for the most part the same or similar, very often differently described or packaged. If the intention is merely to develop a sustainability plan/strategy then public information from these systems should provide more than enough guidance around what the material and relevant principles and methodologies should be. If you want to make use of a particular system or framework in order to achieve your objectives then consider the following factors before making your decision: • Your objectives – how are they addressed by each system?

• Your sector – what is the relevance of each system (including any supplementary materials or components that might be sector specific)?

• Cost • Capacity – would there be an additional requirement for internal capacity (employees

The World Wide Web is full of discussions that seek to assist first time users, so have a look for those that appear to be independent and then apply a process of elimination.

TSHWANE GREEN ECONOMY FRAMEWORK

GREEN BUILDINGS R29,00 - (VAT INCL) ISSN 2225-5977

04012

SUSTAINABILITY WEEK PREVIEW

Some noteworthy examples: 1. The Global Reporting Initiative (GRI) has recently launched its G4 guidelines which contain new and important developments on key sustainability principles.

2. The International Integrated Reporting Council (IIRC) has released the <IR> Framework which offers valuable insights into the integration of Environmental, Social and Governance issues.

3. The CDP and the GHG Protocols are leaders in the measurement, management and reporting of carbon emissions, in particular.

4. The Carbon Disclosure Standards Board (CDSB) has published its Reporting Framework (Consultation Draft) 5. The International Standards Organisation ISO26000 standard for Social Responsibility – most relevant in the South African context.

6. The United Nations Global Compact – 10 principles for implementation and reporting on sustainability.

or technology systems) or external support (consultants) in each instance?

• Market share and popularity in your region, including future trends • Your value chain – which systems are your channel customers supporting?

• Compliance – which systems are aligned with your own risk profile?

MAY/JUNE 2014 • ISSUE 12

AND THE EMERGING ECONOMY

It has never been easier to incorporate sustainability objectives into the corporate agenda. For those businesses that are contemplating sustainability for the first time there are various new and revised systems, frameworks and guidelines which are now available in the public domain. The information in and around these systems can be used to develop a good understanding of corporate sustainability and to inform the corporate strategy. Selected systems can then be used for implementation and performance management of the strategic agenda.

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COVER PERSONALITY: Executive Mayor of Tshwane, Councillor Kgosientso Ramokgopa

All Rights Reserved. No part of this publication may be reproduced or transmitted in any way or in any form without the prior written permission of the Publisher. The opinions expressed herein are not necessarily those of the Publisher or the Editor. All editorial and advertising contributions are accepted on the understanding that the contributor either owns or has obtained all necessary copyrights and permissions. The Publisher does not endorse any claims made in the publication by or on behalf of any organisations or products. Please address any concerns in this regard to the Editor.

The Green Business Journal is printed on Hi-Q Titan plus paper, manufactured by Evergreen Hansol a leading afforestation member acknowledged by FOA. Hi-Q has Chain of Custody certification, is totally chlorine free, and is PEFC, ISO 14001, ISO 9001 accredited.

This issue of the Green Business Journal is official to the events and activities taking place at Sustainability Week from June 23rd through 29th. More than 3000 visitors attended last year’s events and this year the week will be hosted by the CSIR International Convention Centre in Pretoria. I look forward to seeing you there!

Sincerely

Lloyd

Reduce your CO² footprint. Through our experience and knowledge we can help your company reduce the CO² impact on the environment and be in compliance with Environmental Act of 2012. Through our 18 years of experience, we have developed strategic partnerships revolving around corporate social investment in environmental sustainability. For more information on purchasing and installing bins, contact us on ( 011) 466 2939 or visit www.collectacan.co.za. Recycle cans today. Sustain tomorrow.

Alistair Schorn Alistair Schorn holds a Masters degree in Economics from Pretoria University, and is currently the CEO of Sustainability Consulting, a Gautengbased sustainability advisory practice.

From 2006 – 2011 he was Head of the Emerging Economies Programme at WWF, the Worldwide Fund for Nature, where he focused on the promotion of the green economy in developing and emerging economies.

The corporate sustainability tool that is a platform for employee and reputation development, behaviour change and competitive advantage.

Lani Botha

Lani has dedicated 20+ years of her career to technical and industry journalism and communications counsel to help government, institutional, corporate, SME and NGO clients tell their stories better and to the right audiences. A broad career path has synched her insights with the heartbeat of South Africa’s commercial, societal and environmental needs and interplay. She is a freelance writer / strategist / communicator working from Johannesburg, servicing clients nationally.

7 News and updates 11 Sustainability through the keyhole Green 12 Tshwane Economy Framework

Lloyd Macfarlane Lloyd is Chief Executive and founder of GSA Campbell Sustainability Consulting and a Non-Executive Director at Alive2green. Lloyd is also a corporate ambassador for the 49M campaign.

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Sustainability Week Preview

Louise Gardiner

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National Water Resource Strategy 2

Louise is founder of First Principles Sustainability Services (www.firstprinciples.org), providing sustainability research and strategic facilitation. She has14 years of international experience in business innovation and collaborative approaches to environmental and social sustainability. Since 2005, she has been a specialist and consultant to IFC, part of the World Bank Group.

Simon Berry Simon Berry is the Commercial Director at WSP Consulting Engineers. Berry is a commercial generalist, with a strong foundation in new technologies and projects providing sustainability, energy efficiency and renewable energy solutions.

Stephanie von der Heyde Stephanie is UCT graduate and an independent features writer who has recently been focusing on sustainability articles and reporting with GSA Campbell Consulting.

• Build capacity in the organisation by training key employees about the principles and practices of corporate sustainability.

• Leverage differentiation in order to achieve competitive advantage.

• Develop and manage reputation by building and marketing an Online Sustainability Profile.

• Use the Framework process to develop a Global Reporting Initiative (GRI) Sustainability Report which can be widely used in the company’s value chain.

The Good Business Framework combines an online and personal interface in order to target measurable outcomes: • Empowering key decision makers in your organisation • Identifying risks and opportunities • Marketing and media exposure www.goodbusinessframework.com/about info@gsacampbell.com

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The benifits of capitalising on human development

30 Mind the Gap

Anticipating the shift in how your company’s sustainability is viewed

34 Green Building

The necessity of sustainable building design and construction

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NEWS & UPDATES SOLARWORLD LIGHTS UP WORLD DESIGN CAPITAL SolarWorld is lighting up Intaka Island’s Environmental Education Centre (in Cape Town) with a solar installation as part of a World Design Capital Cape Town 2014 project.

The solar-powered project combines urban development and nature conservation to provide innovative and sustainable solutions that maximise long-term educational opportunities for the city. Through the project, jobs have also been created and current employees of the centre have been upskilled in sustainable development initiatives.

The construction costs of this modern, energy conscious, enviro-friendly green educational building was enabled by a donation of funds, building materials and professional time from environmentally conscious corporates and individuals.

INTEL AND MICROSOFT LEAD IN EPA’S GREEN POWER RANKS Open to all domestically operating organisations in the United States, with the exception of utilities and other energy suppliers, the Environmental Protection Agency’s (EPA) Green Partnership aims to identify the most prolific users of renewable energy. 2014 list of top achievers includes Intel Corporation in first place, followed by Microsoft Corporation in second, Kohl Department Stores in third, Whole Food Market in fourth and Wal-Mart Stores in fifth place. Over 1,400 organisations participate in the program yearly with tech (Apple and Google are also in the top ten) and retail organisations coming up on top, with the public sector (the US Department of Energy placing in seventh) also making a huge impact.

CONVERT YOUR BICYCLE INTO AN ELECTRIC BIKE With 200 watts of power and only 22cm long, the Vivax Assist motor can turn any bicycle into an electric bike. The battery pack, which fits conveniently under the saddle along the seat post, looks nothing less than a small tool kit or an accessory bag and only weighs 1.8kg. The handlebar is equipped with an on/off button and allows cyclists to continue riding their bicycles as usual when the motor is switched off.

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NEWS & UPDATES APPLE LEADS IN ENVIRONMENTAL RESPONSIBILITY After many years of secrecy about their environmental performance, Apple has released their Suppliers Responsibility Report. The release of the report is a sign that the brand recognises that its profits are directly linked to protecting human rights and the planet. With the success of the iPhone and Apple’s growth in size and service, the brand cannot afford to ignore supply chain issues involving worker safety, environmental pollution and human rights issues. The report highlights Apple’s ability to pressure its suppliers to use only smelters that is free from conflict minerals and the brand recognition that they can influence suppliers to deliver significant change. The brand has also set goals to reduce the energy consumption of its supply chain, remove conflict from its large suppliers and address crucial impact of making millions of devices around the world.

SAN FRANCISCO BANS PLASTIC WATER BOTTLES In a nationwide effort to curb waste from the billion dollar plastic bottle industry, San Francisco has become the first major in the USA to ban sales of plastic water bottles on public property. In the USA 80% of plastic water bottles (38 billion plastic water bottles) end up in landfills per year.

Many retailers and beverage companies praise the environmental benefits of plastic water bottles (mainly its recyclability of the packaging), but the truth is most of the plastic lands up in landfills and the sea. It also takes three times more the volume of water to manufacture one bottle of water than it does to fill it and requires 17 million barrels of oil per year to produce all the packaging.

PLUG HELPS HOMEOWNERS CUT ENERGY COSTS A new wifi enabled smart plug by Parce measures and controls the energy usage of your electronic devices. Named the Parce One, the plug monitors your daily habits and learns when and how you use energy – even when you’re not at home.

Depending on which devices users choose to control with Parce, you will be able to recoup the investment on Parce’s hardware between 6 to 24 months of use. The product should help homeowners reduce their spending by up to 50% on energy costs.

US NAVY TURNS SEA WATER INTO HYDROCARBON FUEL The US Navy is known for pushing the innovative boundaries when it comes to resource scarcity and sustainability, and has figured out a way to use sea water as a form of fuel to power its boats. The development of liquid hydrocarbon fuel would shorten the logistics supply chain – a weak link that exposed the navy to attack. The process involves extracting carbon dioxide and hydrogen gas from sea water and converting the gases into a fuel using a catalytic converter. The US Navy hopes that the fuel can also be used to power planes.

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THE IMPORTANCE OF SOCIAL MEDIA FOR CEOS: USA VS UK A recent study from Brandfog by Dr Leslie Gaines Ross, shows the importance of social media for CEOs. The study shows the 84% of US respondents and 76% of UK respondents believe that social media is an effective way to monitor conversations about a brand online and to avoid a potential reputation crisis. The study also shows that 85% of US respondents and 76% of UK respondents believe that social media is a valuable public relations tool. The study also shows that 82% of US respondents and 71% of UK respondents believe that executive use of social media raises brand awareness.

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Sustainability Through The Keyhole Showcasing great South African companies that are demonstrating leadership in sustainability Tuffy Brands As an organisation, Tuffy Brands has made sustainability a priority and, given the nature of their products, has always aimed to operate in a way that is mindful of both their environment and community. Now more than ever, Tuffy is continuing to build on the strong foundation laid by their founders and aims to implement various new initiatives which will have a meaningful impact both within and beyond the walls of the organisation.

Competitive Advantage The Tuffy strategy incorporates targets around innovation and differentiation and this is directed at the achievement of competitive advantage where large channel customers (mostly retailers) are concerned.

By focusing on sustainability performance in the value chain, Tuffy is able to provide retailers with products that are adding value to the environment and a corporate sustainability profile that is hard to ignore when procurement decisions are being made.

Established in 1968, Tuffy Brands is a Cape Town based company which manufactures flexible plastic and paper products for the retail, industrial and advertising and marketing industries.

The company pioneered the launch of refuse bags on a roll in South Africa, and were the first organisation in South Africa to receive SGS accreditation for having fully recycled content in refuse bags.

Strategic Integration and Senior Support At Tuffy, sustainability has been introduced at the top of the value chain in each sector of the business, ensuring that the principles

have become an integral part of the way they do business. As a company who have always made the earth a priority, they have also developed codes of conduct which place great emphasis on key environmental issues, ensuring that environmental sustainability continues to be embedded in everything they do.

Additionally, occupational codes and guidelines (i.e. a Code of Conduct) exist in the organisation and sustainability strategy relating to quality and quality management is addressed through the ISO 9001 standard.

Product Responsibility and Innovation Tuffy addresses product responsibility through each step of their product life cycle and remain conscious of their impact throughout production. Given the nature of their products, strong emphasis is placed on responsible sourcing, reduction of waste and reusing of materials; their entire black bag product ranges being made from 100 percent recycled materials.

With regard to product standards, the company has internally developed benchmarks in place which are linked to the ISO 9000 standards and maintained across product ranges to ensure that products meet high models of quality. Tuffy also takes care to print clear warnings on packages regarding the health and safety of their consumers.

Training Tuffy Brands is registered with the Good Business Framework system in South Africa, a system which incorporates an online executive sustainability training course that is aimed at providing key members of the

organisation with international best practice sustainability knowledge and implementation guidelines.

Efficiency and Responsibility Tuffy carefully manages their resources and has made a significant effort to reduce emissions, energy, water and waste. They do not make use of any direct energy, but indirect energy is comprehensively measured and managed throughout the organisation.

Energy productivity statistics are widely available and strategically used, and various good practices and interventions exist within the production plant; including energy sub-metering, natural cooling/heat rejection, efficient pumps and fans and energy efficiency lighting.

The company makes use of a closed water system which is used for cooling in the production plant; a system which is carefully measured and managed. Data is recorded relating to total withdrawal of water by source; water discharged by volume and destination water recycling; water re-use and water productivity calculations. The company also has various water meters and management systems in place which are principally focused on the manufacturing environment.

Tuffy places great emphasis on waste management and recycling, particularly in the manufacturing process. Waste beneficiation practices are in place and waste skips are collected by recycling companies for further separation, ensuring that the only wet waste goes to landfills.

In the manufacturing plants, paper and plastic waste is separated prior to the skip, which is then fed back into the production process as recycled, post-production waste.

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Green Capital

The Cit y of Tshwa ne’s Gr een Economy Str ategic Fr a mewor k

Author Alistair Schorn

As South Africa’s capital city, the City of Tshwane has recognised and embraced its responsibility to play a leading role in the transition of the county’s major cities and metropolitan areas to low-carbon, climateresilient and resource-efficient models of development. This is clearly demonstrated in the development of the City’s Green Economy Strategic Framework, and its alignment with the City of Tshwane Vision 2055.

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s with any initiative at the level of local government, this Framework was developed in alignment with the national economic development context. In this regard, the South African ggovernment has for a number of years recognised the green economy as a significant catalyst for employment creation, and socially equitable and environmentally responsible economic development. More specifically, the South African Department of Environmental Affairs states that the green economy refers in particular to two interlinked developmental outcomes for the South African economy, namely: • Growth in economic activity (leading investment, employment and competitiveness) in identified green industry sectors; • An overall shift in economic activity towards cleaner industries and sectors that have a low environmental impact compared to their socio - eco nomic impact.

In line with these imperatives, the government has implemented a number of policy measures which aim to promote a transition to a green economy. These include the National Strategy for Sustainable Development, the Industrial Policy Action Plan, the New Growth Path, the Green Economy Accord and most recently, the National Development Plan that was released in 2012.

In the context of these national policy measures, strategies and plans, the implementation of South Africa’s green economy transition has been to the level of a significant degree decentralised to provincial and local government level. As a result, the City of Tshwane has identified a require ment to develop a city-specific Green Economy Strategic Framework, which reinforces national policy and provincial policy in this area.

What is a green economy and how can we get there?

In developing the Green Economy Strategic Framework for Tshwane, the City’s government has adopted the United Nations Environment Programme (UNEP) definition of a

green economy, namely “one that re sults in improved human well-being and social equity, while significantly reducing environmental risks and ecological scarcities” From the City’s perspective, there fore, the essence of a green economy lies in the following: • Improved human well-being; • Improved social equity; • Reduced environmental risks and ecological scarcities.

This understanding of a green economy provides the broader context for the development of the City of Tshwane’s Strategic Framework.

The successful implementation of this Framework, and the resulting transition to a green economy, will require that the City makes best use of its inherent competitive advantages, to develop a highly appropriate, resource - efficient, low- carbon and inclusive programme.

It is therefore imperative that a green economy transition can de - couple economic development from resource consumption and environmental impacts, and enable inclusive growth through a more equal distribution of wealth and access to ecological goods and services such as clean air and water.

It should also enable improved human health and well-being, through enhancing the quality and quantity of these goods and services, as well as the quantity and quality of public infrastructure and services such as transportation, education and civil services.

If implemented effectively, a green economy can offer a new economic path to sustainable development, in which the spheres of technology, economy, society and ecology are embedded in each other and are underpinned by systems of good governance.

The City of Tshwane Tshwane is of course located in the north of Gauteng, and comprises over one -third of the province’s area. It has a population of 2, 92 million and a population density of 4 634 people per km2.

Tshwane exhibits a diversity of land uses, including residential (rural and urban), agricultural, natural open, industrial and commercial. Much of Tshwane is currently urbanised, although significant potential exists for agricultural production in less urbanised regions. Over the past several decades, Tshwane has experienced rapid economic growth and development, resulting in significant urban sprawl, which presents a growing challenge in terms of basic services, infrastructure and housing.

One of the objectives of the Strategic Framework is of new and existing projects and programmes to be included in the City of Tshwane’s Integrated Development Plan (IDP) in the next planning cycle. The IDP for 2011–2016 has made significant improvements in livelihoods by addressing service backlogs and poverty through improving the availability and universal accessibility of essential public services (such as housing, water, sanitation, education and health care).

The next IDP will therefore need to continue with service delivery roll- out, while at the same time focusing on the development of integrated solutions that reduce resource consumption and the generation of pollution and waste, while opening up new opportunities for green jobs and green economic growth.

The Strategic Framework will help to inform the City of Tshwane’s medium to long-term green economy objectives. It also forms part of the Tshwane

Sustainable development and the green economy (adapted from the National Strategy for Sustainable Development.

2055 initiative, which is a long-term strategy for improving the quality of living across the metropolitan area, revitalising the city, boosting economic development and attracting investment. It aims to articulate the City of Tshwane’s vision, game - changing interventions, indicators and outcomes.

In this regard, Tshwane 2055 has the following six identified outcomes: • A resilient and resource - efficient city; • A growing economy that is inclusive, diversified and competitive; • Quality infrastructure development that supports liveable communities; • An equitable city that supports hap piness, social cohesion, safety and healthy citizens; • An African capital city that promotes excellence and innovative governance solutions; • An activist citizenry that is engaging, aware of their rights and present themselves as partners in tackling societal challenges.

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BY 2055, GROWTH AND DEVELOPMENT IN TSHWANE IS DRIVEN

BY AN ECONOMY THAT SUPPORTS A SUSTAINABLE, VIBRANT, LIVEABLE AND PROSPEROUS CIT Y, THROUGH INTEGRATED ECOLOGICAL, SOCIAL, ECONOMIC AND SPATIAL AGENDAS THAT PROMOTE HUMAN AND ENVIRONMENTAL WELLBEING.

second objective, particularly in the area of economic inclusivity.

The Tshwane Green Economy Strategic Framework The development process for the Framework included extensive internal consultation with relevant City officials, and significant support and participation were received from local UNEP representatives. Based upon this pro cess, the principal drivers of the green economy were identified as a response to the growing economic and environmental crises that demand a new green economic model for the following: • Resource efficiency: the efficient use of natural resources to reduce the generation of waste and pollutants; • Low- carbon development: the use of innovation and increased investment in low- carbon technologies and solutions; and • Inclusive growth: the creation of green jobs and the greening of service delivery to ensure more equitable and inclusive growth with a focus on the poor.

From Cit y of Tshwane Vision 2055

It was decided that the focus areas or themes of the Strategic Framework should be action-based and aligned with existing green economy initiatives and strategies. These themes were accordingly finalised in March 2013, and were divided into two principal categories or clusters, namely mitigation and adaptation.Within each of these themes, the status quo and challenges were described to give context and perspective. Known challenges and barriers to developing the City’s green economy were used to formulate aspirations, objectives and appropriate actions for each theme.

These were incorporated into an initial draft of the Strategic Framework that was reviewed and finalised by the City of Tshwane’s Sustainability Office.

The Tshwane Green Economy Strategic Framework is aimed at addressing primarily the first of these objectives, namely the development of a resilient and resource - efficient city. It will also contribute to achievement of the

Thematic action areas Under each of the mitigation and adaptation clusters, the Framework identifies the following specific the matic action areas, as follows: 1. Transitioning to a low- carbon city (mitigation) • Pollution and waste management – reduction and effective management of waste streams, including solid waste, wastewater and air pollution; • Integrated water resource manage ment – coordinated development

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• Defining a new economic base for a green economy; and • Developing partnerships between government, business, labour and civil society.

and management of water, land and related resources; • Green buildings and built environment – the development of a green built environment in the City, including spatial planning and public service infrastructure, with due consideration of national initiatives in this area; • Sustainable transport and improved mobility – improved efficiency and sustainability in transport systems and infrastructure, and the creation of an enabling environment for green transport initiatives; • Sustainable energy – including initiatives, in line with various national policies and programmes in the field.

2. Building a resilient and resource-ef ficient cit y (adaptation) • Maintenance and provision of ecosystem goods and services – protection and enhancement of ecosystem goods and services, with due consideration of ecological limits and rates of replenishment; • Sustainable agriculture and food se curity – creation of sustainable food supply systems which maintain and enhance the ecological integrity of land and other natural resources; • Sustainable communities (health and social development) – promotion of a vibrant citizenry and a healthy, skilled workforce that contributes to improved wellbeing and social cohesion.

For each of these themes, a set of overall aspirations, strategic objectives

and appropriate actions were developed for the Framework.

Specific mitigation actions include the following: reducing emissions from buildings; improving mobility and providing low- carbon mass transport options; reducing the generation of waste and encouraging product re -use, recycling and material recovery; promoting integrated planning and land use; improving energy efficiency and developing renewable energy supply options; and encouraging the efficient use and management of water and other natural resources.

The adaptation actions include: mainstreaming environmental priorities and carrying out biodiversity assessments to inform development plans; supporting and expanding government public works programmes to incorporate payment for an ecosystem services approach, enhancing the skills and knowledge in agro - ecology, enhancing local urban and peri-urban food production for increased food security; and providing services and facilities that enable a safe and healthy environment while enhancing opportunities for improved connectivity and social cohesion and human wellbeing.

A number of specific methods of implementation were identified to promote the establishment of a green economy in the City, including the following: • Investing strategically in green inno vation and technology;

In terms of these implementation methods, the Framework identifies the financial constraints under which the City (and in fact all municipalities) operate, as a potential inhibitor of transition to a green economy, and it acknowledges the necessity for effective public-private partnerships to overcome this obstacle.

Furthermore, the Framework refers to the possible use of municipal fiscal policy, in the form of both incentives and disincentives, as an effective method of catalysing the growth of a green economy in the city.

A final element of the Framework, included as an Appendix, outlines the City’s targets for various measures and initiatives for a green economy as derived from national and provincial targets in these areas.

These include areas such as the installation of solar water heaters, the creation of green jobs, public sector investment in green economy sectors such as renewable energy and sustainable transportation, energy efficiency targets, waste reduction targets and the implementation of appropriate sustainability standards such as those for green buildings.

The City of Tshwane’s transition to a green economy will require a fundamental change in the established economic system, from one based on increasing exploitation of natural resources to fulfil the growing demands for material consumption, to one that can ensure sustainable and equitable growth within the ecological limits of Tshwane and the region.

Achieving this shift will require effective integrated planning, robust policy signals, good governance and high levels of accountability on the part of the City’s management. It will also require investment in new skills, research in innovation and green technologies, and a new mindset for doing business.

The Green Economy Strategic Framework provides a means to achieve these objectives, by outlining the suite of strategies and actions that are required to facilitate the City’s transition to a green economy and a sustainable development path.

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Sustainability Week Preview Author Stephanie von der Heyde

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his June will see the next annual staging of Sustainability Week, a multi sector event that is a highlight on the national green economy calendar, providing key stakeholders with a platform from which to learn and engage with thought leaders and relevant business and government networks. The event consists of no less than eight conferences and seminars and one large exhibition, and takes place at the CSIR International Convention Centre on from the 17th to the 19th June 2014.

8th annual Green Building Conference and Exhibition (17-18 June 2014) SA’s original Green Building Conference is set to break new ground in 2014 by adding critique to its traditional instruction focus, with international experts Dr Elizabeth Farrelly of Australia, Alberto Kalach of Mexico, Dirk Funhof of Germany, Gaetan Siew of Mauritius, and Tim Hall of Rwanda, as well as a host of South African building experts who will join together in discussing issues relating to the best practice in green building design and specification. In addition to the in depth and practical knowledge sharing provided by the experts, 2014 will feature master classes, technologies, materials and case studies of exceptional green buildings. An innovation in 2014 Conference Chairperson Llewellyn Van Wyk will lead a dialogue featuring a panel of leading built environment experts, and asking the question – why are green buildings in South Africa fundamentally modernist?

2014 Sustainable Transport & Mobility Conference and Exhibition (19 June 2014) The South African transport system is fundamental to the proper functioning of our country and economy, yet issues such as tail pipe emissions, road accident fatalities, marine pollution and poor road conditions serve as continuous reminders of the fact that our transport sector is not operating sustainably – but things are changing!

Massive infrastructural investments are being made that are likely to have the effect of reducing these impacts. Investments in rail capacity should enable greater levels of transport being moved by rail; investments in public and non-motorised transport should result in fewer people commuting by car; and alternative urban planning is beginning to address historically skewed urban spacial layouts.

Join local and international experts at this year’s Transport and Mobility Conference as they tackle the issues surrounding the South African transport system.

2014 Zero Waste Seminar and Exhibition (17 June 2014) South Africa like all countries, is experiencing a waste explosion driven by increasing industrialisation, increasing numbers of disposable products and a growth in product packaging, both manufactured and

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imported; and burying all this waste is not only becoming increasingly difficult and costly, but is also a lost opportunity.

The Vision Zero Waste Seminar, in partnership with the National Recycling Forum, will invite leading industry, government and related NGO executives, as well as fringe stakeholders, to report back on waste actions and initiatives.

The session will elucidate the strategies and discuss the best practices required to trigger stepped up level of recycling and material recovery in South Africa. The issues will be tackled from both the demand and supply side, and will deliver a set of workable recommendations for stakeholders going forward.

2014 Green Business Seminar and Exhibition (19 June 2014) Market forces are the most powerful actors in a society; they have moulded the modern world into what it is today and will shape the future. It is this overarching and persisting power that makes these forces the best medium through which to direct the planet toward a more sustainable future.

Businesses which operate sustainably are not only able to reap significant rewards themselves, but also to contribute toward a more sustainable country and planet. The key focus areas of this seminar will be on Sustainable and Integrated Reporting in the morning session, and large issue debates in the afternoon session, challenging conventional wisdom.

Sustainable Energy Seminar and Exhibition (18 June 2014) The Department of Energy and Eskom have made significant advances in recent years under the headings to energy efficiency and renewable energy, and if these strategies can continue to hold positions of high importance, massive opportunities will continue to be created for businesses in these sub sectors.

Targeting peak demand is a fundamental challenge in looking to reduce total supply needs and capacity – can EE and RE be used as key aspects of the strategy to tackle peak demand – we consider this question at a city scale?

EE in particular has the potential for broad based implementation and with the energy problem in South Africa being so severe, the potential rewards for investing in energy efficiency have never been greater, yet many businesses seem reluctant to do so. This seminar will explore the reasons behind this, while also discussing ways to inspire change.

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Sustainable Water Resource Seminar and Exhibition (19 June 2014) South Africa’s water resources are becoming increasingly vulnerable due to pressure on storage facilities, pollution, insufficient treatment facilities and high levels of wastage, and as a consequence we are highly vulnerable to a water crisis! Join leading experts as they present the latest thinking, case studies, and technologies geared to improving resilience and avoiding a water crisis.

Responsible and Sustainable Tourism Seminar (19 June 2014) urism is incredibly important for our country, not only because it provides a boost in economy, but also because it justifies money spent on conservation and encourages governments to invest in the environment. South Africa is internationally regarded as a leader in the area of ‘Responsible Tourism’, a term coined 11 years ago in a document called the Cape Town Declaration. Since then, the South African government has taken the topic seriously and has a dedicated division focused on advancing the uptake of responsible tourism. Be this as it may, uptake is not as broad as it could be and we are not yet reaping some of the major benefits available to us.

During this seminar experts will gather to discuss ways to maximize opportunities in the Tourism Sector and explore the role of the business sector in this process.

Food Security Seminar and Exhibition (19 June 2014) As the threat of climate change grows and weather patterns are affected, the already serious question of food security becomes an even greater problem. The globalization of markets means that developing countries like South Africa are drawn into giving up their agricultural exports while also importing cheaper staple foods. In addition, the design of our cities is such that many poorer communities have limited access to food, making the poor particularly vulnerable in internal and external shocks. This seminar invites you to join leaders and experts in the field of food security and agriculture as they discuss these issues and to contribute to the formulation of a decision on the best course for South Africa. Findings will be published in order to fuel discussions and indeed, solutions.

Event website: www.sustainabilityweek.co.za

National Water Resource Strategy 2 Author Department of Water Affairs

T

he NWRS2 builds on the first NWRS published in 2004.

The purpose of the NWRS2 is to ensure that national water resources are protected, used, developed, conserved, managed and controlled in an efficient and sustainable manner towards achieving South Africaâ&#x20AC;&#x2122;s development priorities in an equitable manner over the next five to 10 years. This Strategy responds to priorities set by Government within the National Development Plan (NDP) and National Water Act imperatives that support sustainable development. The NWRS2 acknowledges that South Africa is a water-stressed country and is facing a number of water challenges and concerns, which include security of supply, environmental degradation and resource pollution, and the inefficient use of water.

In the context of the need for growth, equity and protection of water resources, this Strategy identifies three broad objectives: water supports development and the elimination of poverty and inequality; water contributes to the economy and job creation; and water is protected, used, developed, conserved, managed and controlled in an equitable and sustainable manner. The response to the strategic context and the imperatives set out above is delivered through strategic themes, which discuss in detail the context and challenges, key principles to be sustained, objectives of that particular theme and then proposes strategic actions to achieve the stated objectives.

The Strategy recognises that the manner in which water was allocated in the past was unequal and favoured only the white section of the population in South Africa. The National Development Plan (NDP) and National Water Act (NWA) collectively inform the intended means to redress past imbalances in the manner in which water was allocated. The perspective of equity in the Strategy is three dimensional and includes equity in access to water services, equity in access to water resources and equity in access to the benefits from water resource use through economic, social and environmental development and management. The Strategy intends to achieve these objectives through the use of the Water Allocation Reform programme and mechanisms proposed, which include water set aside specifically for redress, compulsory licensing, general authorisations, development support and partnerships to ensure that water is made available to previously disadvantaged groups.

The water resource protection theme emphasises the need to protect our fresh water ecosystems, which are under threat because

of pollution from many sources. The need for the determination and preservation of the ecological Reserve and the classification of our river fresh water systems will be a priority. This will assist to determine the nature and the extent of pollution in order to provide appropriate rehabilitation solutions. The Strategy stresses the need for the value of water to be appreciated and for the attitudes and habits of all citizens to change towards water and to work towards its protection. It is reported that climate change will progressively alter the environment in future and present new challenges. The effects of climate change include higher temperatures, altered rainfall patterns and increased occurrence of drought and floods.

The Strategy proposes the development of adequate capacity within the sector and the country for monitoring and effective detection and adaptation to protect water and to ensure sustainable water supplies into the future. Reconciliation Strategies project depletion in the water supplies for some water supply systems in the country. In light of the urgency to protect our water resources and the adverse effects of climate change, the NWRS2 submits that water conservation and water demand management should be one of the top priorities, and measures to reconcile demand and supply in order provide for all our goals of a better life for all through job creation and economic growth.

Research published by the Water Research Commission (WRC) in 2013 indicates that Non-Revenue Water (NRW) for urban supply systems over the past six years was at an average of 36.8%, which is equal to 1 580 million m3/a from a total urban consumption of approximately 4 300 million m3/a. This research also indicates that in many municipal water supply schemes, the figures are even worse, with NRW in some cases up to 90%. The irrigation sector, which uses up to 60% of the country's water resources, accounts for losses of between 35% and 45%.

While some municipalities and other institutions have begun to address the challenge of water loss, the NWRS2 emphasises that effort must be intensified with specific targets set to reduce water loss. Water conservation and water demand management measures will have multiple benefits in terms of the postponement of infrastructure augmentation, mitigation against climate change, support to economic growth and ensuring that adequate water is available for equitable allocation. This requires appropriate institutional arrangements and effective governance.

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The management and implementation of water strategies requires competent and accountable management. The Strategy outlines the institutional arrangements that will be established or strengthened to co-ordinate activities related to efficient water resource management within a defined geographical area or catchment boundary.

The institutions will be required to perform their duties within a developmental management approach that values the involvement of all stakeholders in defining strategies and plans for management within their defined areas. Smart business approaches will be promoted within the total water value chain management and water footprint.

The NWRS2 is developed within a changing environment and acknowledges that monitoring and collecting relevant data will not only affect the accurate assessments of the status of water resources and the magnitude of water problems, but will vastly improve planning and policy formulation processes. National water legislation (Section 68 of Water Services Act) requires the Minister to maintain a national information system to record and provide data on the development, implementation and monitoring of national policy.

The monitoring should not be done only for the sake of our national concerns, but also in response to our obligation within international river basins. Approximately 60% of the streamflow in rivers is shared through trans-boundary water systems.

South Africa should ensure that Integrated Water Resources Management (IWRM) is implemented in a manner that conforms to international water protocols and treaties, while being compliant with the legislation governing water resource management in South Africa.

A repository of water resource intelligence will facilitate better interpretation and response to the challenges associated with changing hydrological patterns, climate change, groundwater reserves and innovative responses for reference to the country and neighbouring states with whom we share river basins.

The NWRS2 also strongly promotes technology and innovation to contribute to effective and efficient water management solutions that respond to the needs for water security and sustainability for individuals, communities, productive and strategic water use as well as ecosystem services.

The research and innovation conducted by the WRC and other research bodies in areas such as wastewater treatment, water

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Vision

Targets and

Water sector programme

2030

actions for

and alignment

theme

Vision 2030

Economy and employment

11 million jobs created by 2030

• Infrastructure development programmes • Water conservation and water demand management - fixing leaks, retrofitting, plumbing • Wastewater treatment turn-around programmes • Infrastructure asset management • Integrated catchment management and resource protection • Ensure water availability to economic sectors to create jobs • Recruitment programmes for scientists, technicians, engineers, managers and development practitioners

Economic Infrastructure

Ensure people have access to clean, potable water and there is enough for agriculture and industry recognising trade-offs in the use of water

• Development, operation, maintenance and refurbishment of water resources infrastructure • Accelerated community infrastructure programme (ACIP) • Regional bulk infrastructure grant (RBIG) programme • Support to historically disadvantaged individuals (HDI) farmers

Reduce water demand in urban areas to 15% below business as usual scenario by 2030

• Promotion of Water Conservation and Water Demand Management (WCWDM) programme in all sectors and putting in place measures for water loss reduction in urban areas.

WCWDM is a priority programme and actions have been developed to address targets set

Complete Lesotho Highlands Water Project Phase 2 by 2020

• Project prioritised by DWA and the Trans Caledon Tunnel Authority (TCTA)

Comprehensive management strategy including an investment programme for water resource development, bulk supply, and waste water management for major centres by 2012 with review every five years

• Water infrastructure investment framework • Regional Bulk Infrastructure Programme • Green Drop assessment

Create regional water and waste water utilities and expand mandates of existing water boards (between 2012 and 2017)

• Institutional establishment process already considering options for configuration of Regional Water Utilities

If it is out there, we will uncover it.

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Vision

Targets and

Water sector programme

2030

actions for

and alignment

theme

Vision 2030

Transition to a low carbon economy

Stimulate renewable energy and retrofit buildings

• Department of Mineral Resources (DMR), DWA and Eskom partnership established and task team already considering sites for hydro-power stations

Inclusive rural economy

Substantial increase investment in irrigation infrastructure in Makatini Flats and Mzimvubu River Basin

• Planning and assessment of Mzimvubu Dam options well advanced

Active rural economies through improved infrastructure and service delivery

• Water supply programme • Accelerated Community Infrastructure Programme • Water Allocation Reform • Regional Bulk Infrastructure Grant

SA in the region and the world

Develop regional market for food, energy and water and putting in place water management agreement with neighbouring countries

• International relations and co-operation • Trans-boundary treaties, agreements and institutional arrangements

Education and innovation

Improve the system of skills planning and shaping production of skills Develop a set of strong qualification and support for non-formal programmes

• DWA Learning Academy • Water Sector Skills development strategy developed to improve skills planning and production of relevant skills for the sector

Social protection

Number of public works jobs should rise from the present level to about 1 million in 2015 and 2 million by 2030

• Align all infrastructure development programmes with public works jobs and labour intensive methods • Water conservation and water demand management fixing of leaks programme • Operation and maintenance and waste water treatment rehabilitation programmes • Water supply projects

Building a capable state

A formalised graduate recruiting scheme for the public service, skills strategies for managers, technical, professional and local government staff

• DWA Learning Academy • Mentorship programmes • Occupational specific dispensation (OSD) posts

Develop regional utilities to deliver some local government services on an agency basis where local or district municipalities lack capacity

• Establishment of Regional Water Utilities

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quality and water ecosystems, skills and capacity within the sector, climate change and water conservation and water demand management approaches have influenced the themes and interventions contained in this Strategy.

The Strategy promotes the development of a clear regulatory framework for water resources and coordinating regulatory standards and processes with other government departments and regulatory institutions.

Compliance monitoring and enforcement is one of the priorities identified by the Strategy and legal, financial and forensic capacity will be developed to ensure effective prosecution for the ultimate protection of South African water resources against any illegal action by institutions or persons in contravention of the required quality and quantity standards.

The NWRS2 emphasises that the achievement of the vision and objective will require support by strong institutions, competent and capacitated personnel with the requisite financial resources to implement interventions.

An investment framework for the Strategy, contained with the financial chapter, outlines the financial capital required to effectively implement all key programmes.

This is done within the context that government, development institutions, the private sector and other funders will join hands to provide the necessary funding to support water resource management in the country.

The Strategy also defines the skills required to support effective implementation and outlines the Strategy that will be adopted to raise skill levels through collaboration and partnership with various training and skills development institutions, including universities, Further Education & Training (FET) colleges and universities of technology. A collective approach will be sustained within the Water Sector Skills Task Team, which operates under the auspicious of the Water Sector Leadership Group, to identify the skills gap, and to develop relevant educational and training material and competencies at different levels.

The National Planning Commission’s Vision 2030 and alignment with NWRS2 The National Planning Commission has paid particular attention to water issues and how they impact on and influence our development pathways and opportunities.

Table 1 illustrates some areas where strong alignment with the Vision 2030 targets and actions need to be made. Detailed plans and actions will be explored in the relevant sections of this document.

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The benefits of capitalising on

human development Author Lani Botha

C

apacity - or human capital - development, as defined by the United Nations Development Programme (UNDP), is “the process through which individuals, organisations and societies obtain, strengthen and maintain their capability to set and achieve their development objectives over time.”

Human Capital Development (HCD) in the sustainability space thus focuses on addressing the obstacles that inhibit people and organisations from realizing their developmental goals, and on adapting their training methods to ensure long-term mindset shifts. One area in which this is taking place on a global scale is in the area of industrial development. Concepts such as resource (in particular energy and water) efficiency and cleaner production methods require a whole new skill set, and in developing nations these skills are even more critical to the ultimate goal.

Global cleaner production alliance The UN’s Industrial Development Organisation (UNIDO) and Environment Programme (UNEP) have established 47 national cleaner production centres (NCPCs) in developing economies over the past 20 years. The NCPCs foster industrial development where economic growth and increased standard of living include reduced resource use, pollution, waste and impact on nature and communities via resource efficiency and cleaner production (RECP) programmes.

Local sustainability resource for industry South Africa, the National Cleaner Production Centre of South Africa (NCPC-SA) is funded by the Department of Trade and Industry (the dti) and hosted by the CSIR to oversee industrial sustainability in key manufacturing sectors. Focused on energy, water and materials efficiency, and waste management, the NCPC-SA advises industry on resource efficient business practices, offering support through in-plant assessments and training.

The NCPC-SA’s sector-focus approach is aligned to government’s Industrial Policy Action Plan (IPAP), to ensure industry competitiveness, economic growth and job creation for SA industry. The nine industry sectors currently spotlighted are:

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agro-processing; automotives; chemicals, plastics fabrication, cosmetics and pharmaceuticals; clothing, textiles, footwear and leather; pulp and paper; metals fabrication, capital goods and transport equipment; green industries and waste management; tourism and hospitality; and mining (Industrial Energy Efficiency / IEE Project only).

Local impact – global networking The NCPC-SA is a member of UNIDO and UNEP’s global resource efficiency and cleaner production network (RECPnet) and plays a leading role in the African Roundtable for Sustainable Consumption and Production (ARSCP), with the NCPC-SA Director currently president of the African body.

Due to the energy crisis and ever-rising costs of energy both locally and globally, the NCPC-SA is a stalwart supporter of SA industry’s ability to manage its energy consumption.

In partnership with UNIDO, the NCPC-SA promotes and implements Energy Management Systems (EnMS) and Energy Systems Optimization (ESO) through the Industrial Energy Efficiency Improvement Project in South Africa (IEE Project).

Participating companies are equipped with skills to improve energy performance and offered opportunities to showcase their successes.

Developing young sustainability leaders for national industrial impact The NCPC-SA is actively developing and transferring the skills required to build up the country’s capacity, so as to ensure more sustainable, greener industries. The availability of suitably skilled manpower is critical to the sustainability of RECP initiatives in industry.

Four young project managers from the NCPC-SA recently completed international HCD training with colleagues from fellow developing-nation NCPCs in Colombia, Kenya, Mexico, Morocco, Serbia, Sri Lanka, Ukraine and Viet Nam. The 6-month e-learning course in ‘Capacity Development for Promoting a Resource Efficient and Environmentoriented Private Sector’ was run by German development agency GIZ for RECPnet.

Via interactive online group sessions and follow-up assignments, the team honed their strategy development, communication and marketing, project acquisition (fundraising, proposal writing), process and project management, as well as soft skills.

Continuous acquisition of the professional, methodical and social qualifications of people by integrating “head, heart and hand” increases their comprehensive competencies of problem resolution, change and implementation and leads to the aptitude and readiness to act properly and humanly, reflectively and with social responsibility. This includes the ability to recognise future problems early and to offer adapted solutions.

- GIZ The four young change agents – Faith Mkhacwa, Thembi Kodisang, Lee-Hendor Ruiters and Pearl Thusi, all project managers at the NCPC-SA – found eye-opening value

in their exposure to global experts and counterparts from other nations, offering a deeper understanding of the national and global significance of their daily toils.

The HCD project sets out to strengthen the capabilities of these NCPCs to improve on institutionally and financially sustainable, demand-driven services to SMEs and to enhance their professional exchange and learning in the North-South and South-South knowledge exchange via RECPnet.

The highlight of the programme was a recent trip to Germany, where the four were exposed to the learnings and expertise of the other participating NCPCs in a week-long feedback workshop.

Reuben Kadalie, NCPC-SA Operations Manager, mentored the four young managers. â&#x20AC;&#x153;Sustainability is a long-term journey and NCPC-SA has an important role to play in equipping South African industry in that space.

I am excited about the leaders that are being developed within the NCPC-SA and how their professional exchange and networks have been enhanced,â&#x20AC;? he said.

Manufacturers (particularly those in the key sectors serviced by the NCPC-SA) can email ncpc@csir.co.za to enquire about an RECP assessment, hosting an NCPC-SA intern or resource and energy efficiency training. >>

PHOTO CAPTION: Faith Mkhacwa, Pearl Thusi ; Thembi Kodisang (front); Reuben Kadalie (Ops Mgr); LeeHendor Ruiters (back).

“Information-sharing with other NCPC’s in this course gave us a better understanding of where there’s room for innovation and other value-adding services we can offer to South African industry, without compromising the quality of our current offerings.

NCPC-SA is not just about RECP and Industrial Energy Efficiency. Rather, it has the ability to become South Africa’s environmental hub and has the right team, with the expertise to become just that.

While we grow, we are taking a strategic approach in order to ensure sustainable success. I have learned that it will take more than the NCPC-SA management team for positive change and growth to take place – each staff member plays a critical role and needs to be well-equipped to utilise our technical and soft skills.

People cannot be fully equipped to grow with an organisation without being empowered to align their thinking with the organisation’s vision and strategy, no matter how many masters or doctoral degrees they have obtained. Qualifications alone are not sufficient to develop individuals for future developments within the RECP space, but HCD will certainly assist the team to learn and apply new ideas, competencies, skills and attitudes.”

-Faith Mkhacwa, HCD course participant

“Although participating centres are from different parts of the world with varied business models, underlying challenges remain the same. A clear understanding of each centre’s goals and objectives in the long, medium and short terms is critical for its success. Service offerings need to be constantly strengthened and diversified to service industries stepping into greening and resource efficiency.

The face-to-face workshop in Germany promoted interaction amongst participants, and we could exchange best practices and

information on projects, resulting in the request that an exchange programme be set up amongst NCPC’s, to promote further collaboration. My overall impression from the course is that, despite the successes and challenges that NCPC’s face, it is always important to articulate transparently and plan properly our goals and objectives to ensure that investors, clients and the organisation can work together towards the success of the organisation.”

-Lee-Hendor Ruiters, HCD course participant

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Mind the Gap Anticipating the shift in how investors and the financial sector view your company’s environmental and social sustainability Author Louis Gardiner

E

ven though more investors worldwide, particularly institutional investors, now say they assess corporate environmental and social performance in their investment decisions, most companies are still unsure exactly what these key stakeholders want to know and therefore what and how to report.

Similarly, while leading banks increasingly apply environmental and social risk management in their lending practices, it remains unclear how this translates into competitive advantage for their corporate clients who boldly adopt innovative solutions to environmental and social problems.

The importance of risk management remains high in the conversation about corporate sustainability. It will likely continue to be the key focus of sustainability-driven investor activism at shareholder meetings for some time to come. Major accidents, fatalities, and environmental pollution are common causes for concern. And with shareholder activism on the rise, companies are seeing more shareholders requesting special meetings with the board on the issues that concern them most . Governance and executive remuneration currently top the lists of responsible shareholder concerns, but environmental and social issues are growing in visibility.

According to Ceres, 110 sustainability-focused shareholder resolutions were filed with 94 U.S. companies during 2013. Many called for board oversight of sustainability and comprehensive disclosure of data through sustainability reports. Issues of interest were climate change, greenhouse gas emissions, supply chain issues and water-related risks. Investors withdrew more than 40 of the 110 resolutions after the companies responded affirmatively to their specific requests.

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That said, investor activism on sustainability issues inevitably clashes with two entrenched business realities: firstly, the majority of shareholders still want to see superior financial returns, preferably on a quarterly basis; and, secondly, company executives manage a multitude of shifting priorities to maintain their companies’ competitiveness and profitability – with environmental and social responsibility being relatively new arrivals.

Consequently, there is still resistence on the part of companies when it comes to really innovating in the sustainability space, even though the massive rise in integrated reporting has brought more firmly to the foreground the real risks and costs of not doing so. Part of the problem may be that the stakeholders with the most leverage, namely investors and financial institutions, don’t yet systematically demand such innovation.

It’s not surprising then that the really interesting conversation between companies and investors – the one about sustainability and business value creation – still needs to get off the ground.

For instance, firstmovers in this space are testing if they can improve investment returns by focusing on sustainability leaders – companies with a track record of good environmental and social management, high-level commitment, and proactive stakeholder engagement. Research by RobecoSAM, covering a ten-year period, revealed superior long-term results. This confirms academic findings which tie sustainability leadership to good management, innovation and financial outperformance. So why isn’t sustainability being adopted more systematically as a lens to identify well-managed, innovative companies with lower business risk? Fortunately, several major shifts in the financial ecosystems of emerging markets indicate this situation may be set to change.

Banks getting serious about sustainability Currently 79 financial institutions in 35 countries have officially adopted the Equator Principles, a financial industry benchmark for determining, assessing and managing environmental and social risk in projects. It is estimated the Principles now apply to over 70 percent of international project finance debt in emerging markets. Ten African banks have adopted the Principles, including Nedbank, Standard bank, and First Rand.

While the Principles apply to project finance above US$10 million, the community of Equator Banks are increasingly exploring ways to integrate sustainability into all aspects of how they do business, including green finance products and managing their own corporate footprints as a way to build brand visibility.

Nedbank’s journey is a powerful example. In 2005 Nedbank became the first African bank to adopt the Equator Principles. Since then, Nedbank has rolled out a green affinity program with WWF, funded projects under South Africa‘s Renewable Energy IPP programme, actively manages its own carbon footprint, launched South Africa’s first Green Index in 2011, created the Nedbank Capital Green Mining Awards, and most recently held the first Nedbank Capital Sustainable Business Awards.

Businesses can see this trend as a signal that banks are building capacity to take a market-based approach to sustainability. New products and screening tools will offer incentives as well as penalties to stimulate better sustainability performance by loan recipients.

Transparency is a first requirement to make this engagement between banks and companies work. So anticipate more interest from banks in the quality and details of integrated reports. As banks become more astute in assessing particular aspects of performance – such as energy, water use, waste management, and labour practices, for instance – expect to see more specific requirements in these areas. Bigger picture questions about license to operate and stakeholder support will no doubt take centre stage and quickly mature as a discourse.

Pension funds join the conversation South Africa was one of the first countries to introduce a regulatory requirement for pension funds in 2012 to actively consider environmental and social risks and opportunities in their investment strategies. New regulation 28 of the Pension Fund Act, in conjunction with the Code for Responsible Investing in South Africa (CRISA), triggered an industry wide response over the past two years to design a practical approach for pension funds.

Sustainable Returns for Pensions and Society, an initiative led by the Principal Officers Association of South Africa, the IFC, major pension funds, the Institute of Directors of South Africa, the Financial Services Board, Labour, and other key stakeholders, resulted in the publication in September 2013 of “Responsible Invesment and Ownership: a Guide for Pension Funds in South Africa”.

The guide provides a roadmap to introduce policies and systems that anticipate risk and inform proactive investment strategies. As major investors in companies listed on the Johannesburg Stock Exchange, pension funds could therefore be set to play a much bigger role in moving South Africa’s private sector towards more responsible business practices.

South Africa’s Government Employees Pension Fund (GEPF), with 1.2 million active members and assets worth R1 trillion, already has a responsible investment policy in place and engages directly with major listed companies on ways to improve environmental, social and governance performance.

South Africa’s example is being closely watched by other emerging markets, and could signal a global trend. Other parts of the financial ecosystem are also likely to follow suit.

For the most part, pension funds are still in the early stages of incorporating sustainability issues into decision making. With policies and priorities in place, they will hand implementation to asset managers who invest on their behalf. Businesses can therefore expect to see an increase in interest from

the asset management community in a wide range of environmental and social issues prioritised by their clients.

Thanks to the naturally long-term view of institutional investors, the emphasis will be on issues that have a medium and long-term impact on investor returns, while still seeking to avoid any significant short-term losses. As pension fund beneficiaries become more aware of sustainability, special interests may lead pension funds to seek out specific types of investments that have social and environmental benefits, such as renewable energy and affordable housing.

Companies’ integrated reports should therefore reflect a mix of i) appropriate sustainability risk management, ii) resource efficiency to reduce costs and dependencies, and iii) quantifiable positive impacts on people and the environment that can be shown to reinforce strong financial performance over the medium and long term.

Green building practices are one such example. With pension funds able to invest up to 25 percent of their assets in property, implementation of green building standards can reduce energy and water costs, improve the health and well being of occupants, enhance the urban environment, and increase property value and rent premiums . From a portfolio perspective the value proposition is clear.

A major role for regulators Another strong signal that sustainability has taken root in the financial landscape is the move by banking regulators in emerging markets to introduce national policies and incentives that promote sustainable banking. A key factor is the creation of a level playing field to ensure banks retain their competitiveness when taking innovative steps towards a green and inclusive economy.

China introduced a national green credit policy in 2008 and technical guidelines in 2012 which now apply to all Chinese banks and include requirements related to international lending . Bangladesh introduced a similar policy in 2011 and provides incentives to proactive banks who the meet the new standards. In 2012, Nigerian banks collaborated with the Central Bank of Nigeria to introduce voluntary principles for sustainable banking, focusing in particular on financial inclusion and supporting women entrepreneurs.

These leading countries are part of a community of regulators who now meet annually to share their experiences in creating enabling frameworks for sustainable banking. Member countries are learning from each other and replicating successful models.

Still in early stages of testing and implementation for many countries, this trend is moving quickly. South Africa’s example in the pension fund industry and the presence of three leading Equator banks locally, make it well suited to adopt similar policies.

Businesses can therefore expect more active participation by regulators in establishing monitoring and incentive structures to track and promote private sector sustainability. Rating agencies will assist this process by making data more easily available. Eco-labels and industry standards will become more common and nuanced to measure performance on specific aspects and help businesses position themselves in the marketplace.

Shifting the conversation With these various trends taking shape, conversations between companies and their financial stakeholders are likely to get much more interesting in the near future. While this may mean an additional reporting headache for companies initially, it may also quickly evolve into a more collaborative partnership between companies and their investors or lending institutions.

There is a growing spectrum of business benefits from improved sustainability, such as reducing resource costs, improving employee productivity, reducing absenteeism and staff turnover, avoiding

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business interruptions, strengthening relationships with suppliers, adding market share, and protecting license to operate.

The main problem is that for too long these aspects haven’t been measured and the business case hasn’t be clear. South Africa’s adoption of comprehensive integrated reporting opens the door to a much more informed conversation about the different ways sustainability adds value. While comparability and consistency of data are important, the links with value creation are going to be as diverse as the companies that implement them.

Consequently, it remains for companies to tell their story of sustainability well, to articulate what they have tried and what the results have been, to explain how sustainability is a driver of their future business success, and how they are preparing for a changing climate and shifting social and economic conditions.

As more success stories of value creation surface, there’s a good chance investors and banks will be first to promote replication within and across industries and to seek out clients that demonstrate sustainability potential. Some of the questions already front of mind for conscious investors include • Are water or energy costs significant contributors to business overheads and how is the company managing them?

• Is the company getting left behind in terms of new technology that could dramatically increase efficiencies or even change the game in terms of market position?

• Is the company treating workers fairly, maintaining high standards of health and safety, and offering fair pay?

• How is the company perceived by local communities and how will this affect their license to operate?

After years of experience manufacturing uPVC Windows and Doors, Magpro’s commitment to quality and investment in technical innovation and equipment has made us a market leader!

Involved in every aspect of the extrusion process, whether on the production line or in our on-site laboratory, we are there making sure that all Magpro products meet the highest quality standards.

Our expert fitting solutions and after-sales service is just as important – our authorised fabricators actively ensure lasting client satisfaction.

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WHY USE OUR PRODUCTS? Specially formulated to suit the harsh South African climate.

Magpro uPVC Windows and Doors offer unparalleled advantages making your choice a simple one – our profiles offer the following benefits: Durability: uPVC’s product life is estimated to be in excess of 25 years UV resistance: Stabilizers are added to minimize the effect of solar radiation and changes in temperature.

Virtually maintenance free: You no longer have to worry about painting your frames!

Keeps unwanted elements out: Our multi-chambered design offers maximum soundproofing, effective insulation and efficient drainage.

Aesthetic appeal: Various modern designs are available ensuring our product is not only durable but also compliments the style of your property.

Added security benefits: Our uPVC windows and doors are robustly constructed for added security and peace of mind. The electrogalvanised steel reinforcement in the frame, sash and transom is extremely difficult to cut through or bend.

Do not support combustion: uPVC is very difficult to ignite via the common sources of fire (matches, blow lamps etc). In addition, uPVC does not burn once the source of heat or flame has been removed.

Eco-friendly: uPVC provides excellent insulation in a building, thus reducing heating and cooling costs and increasing energy efficiency.

In addition, uPVC replaces timber frame windows, thus aiding in the conservation of valuable hardwoods.

www.magpro.co.za sales@magpro.co.za T: 031 4016782 C: 083 779 2408 F: 031 401 3844 F2E : 086 512 0908

The necessity of and construction Author Simon Berry

S

ustainable design has become integral in the design and construction of buildings in many parts of the world. In South Africa the trend is growing quickly where architects and engineers are coming up with alternatives to offset the pressure on energy generation which is becoming a serious concern. Whilst in Africa the uptake is slower due to infrastructure and regulation limitations, it is still a critical concern and companies are becoming more aware of this phenomenon to improve efficiencies and allow for long-term return on investment.

In fact, implementing green building practices aligns ones company in terms of the bigger picture of climate change mitigation. In Africa, industry is embracing this necessary shift towards sustainable practices as it has a proven and significant economic business case.

That said, heating, ventilation, and air conditioning (HVAC), lighting, and even the type of paint used are all components of sustainable design – and are becoming increasing important to consider.

But equally important is being cognisant of the building site and the need to minimise the impact on the ecosystem considering waste reduction and recycling, and using more sustainable materials in construction.

Certain passive design elements (i.e. the form and fabric of the building envelope) that influences the intrinsic makeup of a building, prior to things such as air conditioning and lighting is one of the most effective means to achieving significant ongoing sustainability.

An example of this is the use of solar panels on a green roof. The panels provide shading to the roof that prevents the solar gains from even reaching the occupied space. In other words, you do not have to expend energy extracting hot air with an air conditioning system.

The green roof also adds a layer of thermal insulation that further prevents heat gains from entering the space, which can result in up to 10% energy savings. The green roof provides a cooling effect on the panels which improves their efficiency of electric generation.

While this might sound great, can energy efficiency be promoted in a developing country like Africa with so many other priority areas that need to be addressed? The answer is yes – as sustainability needs to be seen as a key development priority along with education, health and jobs. Given the ongoing capacity constraints on the national grid it is something that cannot be ignored – and may even play its part in creating jobs and providing healthier lifestyles.

For example, the South African Government has committed to carbon reduction targets of 34% from 2010 levels by 2020.

With buildings, either in their construction or operations, currently

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contribution 40% of carbon emissions in built up or urban areas, this will be no easy task.

Fortunately, through initiatives such as the Green Star SA ratings knowing how to design and build sustainably has become significantly easier than even a couple of years ago. And while this more efficient design has become a matter of course with new buildings, existing ones and the need to ‘convert’ them cannot be overlooked.

While strides can be made in tackling the resource challenges from a public sector perspective, so too can private sector play its part – specifically from a development point of view. Another good example is in Namibia, where WSP Group Africa was involved with the FNB Namibia Head Office building development, however to ensure they meet the standard criteria they participated in the creation of a local Green Building Council (GBC) as local conditions differ in Namibia to that of South Africa and as the client wanted a building aligned to a Green Star certification – they assisted in the creation of these infrastructures.

Cynics might argue that refurbishments are costly and do not make economic sense. Yet, there is a strong business case for implementing energy efficiency measures. It is important to evaluate the full life cycle costs of any intervention. If specified and installed correctly, systems and structures can produce a sustainable return on investment that can reduce energy consumption between 20% and 70% and gain long-term revenue through this investment.

Additionally, there are a number of ‘green funds’ and tax incentives that can contribute to making the business case more appetising. Finally, one needs to consider issues other than the pure financial viewpoint when considering the net benefit of a particular intervention, including energy and water security (i.e. being able to continue your business operations in the event of a supply fault), mandatory corporate reporting (e.g. King III), marketing value (being seen as a leader in terms of sustainability) and employee benefits (improved workplaces and productivity). The ongoing operational savings of these do pay back the capital outlay fairly quickly. Given that the lifetime of a building is many decades, the savings will continue to be relevant (and be worth more as energy prices escalate) for many years.

As such, there will be a continued upward trajectory where the industry in various regions will increasingly see this becoming the norm, as adapting to a sustainable building environment impacts on a positive economic and social outcome. Long-term operating costs are lowered via reduced energy consumption, reduced emissions, improved water preservation and management.

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Sustainable Living Exhibition 22-24 August 2014 Durban Exhibition Centre

The vision of eThekwini Municipality is to be Africaâ&#x20AC;&#x2122;s most caring and liveable City by 2030.

To this end, the Municipality has identified sustainability as core to its business. In order to realise our vision, the idea of sustainability needs to be entrenched in the lives of our

citizens, business partners and all those who live, work and play in eThekwini.

The Municipality, through the Imagine Durban project, will be hosting the 5th annual Sustainable Living Exhibition and is inviting all business with sustainable or green products to showcase their products

and services at the Exhibition. This is a unique, multifaceted

event that showcases everything from water harvesting and

energy efficiency technologies to organic gardening and

recycling options.

The event is supported by multiple stakeholders

including government, the private sector, non-governmental organisations, civil society organisations and schools who participate in the exhibition.

The Exhibition will be held at the Durban Exhibition Centre from 22-24 August 2014, and will form part of an exciting, week long, Sustainable Living Festival.

The Exhibition focuses on the following broad areas:

n Waste Minimisation, up-cycling and recycling

n Food Security and Greening

n Creative arts

n Social Justice

n Renewable Energy and Energy efficiency

n Water Harvesting and Conservation

n Environmental Advocacy

n Health and Wellbeing

Register Now!

Highlights

Green Home

A multitude of services and products available on the market are showcased to make decision making for the home owner easier. This one stop shop offers an array of green building technologies, solar, renewable energy and energy efficient products, water harvesting solutions for any environmentally conscious home owner who wants to save the planet and his pocket!

Green Garden Showcase your

environmentally friendly gardening methodologies and technologies to the public who are ever so willing to try new organic and water wise gardens

Green Art

Artists truly believe the old adage – “Waste not want not!” Numerous organisations turn trash into cash by making beautiful works of art from recyclable material.

Green Fashion

Ever so creative – Durban’s finest fashion students put on a show to match no other! Unique garments made from recyclable material is painstakingly put together and is a highlight of the show

Green Youth

The youth ARE our future! Hear the youth on issues of climate change, social justice and other topics that are discussed in debates and speech contests and creative performances.

Benefits to Exhibitors

n An ideal platform to showcase products and services in the above mentioned sectors. n A one stop shop for sustainable products n Promote your business to direct and new markets n Network with other businesses in the industry. n A hub of innovation that provides inspiration n Explore new opportunities.

Comments from Exhibitors

n What an excellent show. I have never seen such a well organised expo with so many exhibitors. Jacques Lightfoot, Plastics SA n We had tremendous response and exposure from the exhibition. George Saunders, Eco Taps n Thank you for executing yet another successful Exhibition. Our team enjoyed this opportunity to network, showcase our activities and meet a host of interesting people. Anne Petty, Bright Site

Avoid disappointment. Book your stand now! Bookings close on 30 May 2014.

For more information and to register contact Dorothy Lutchmiah on 031 3114277/0732403600 or email Dorothy.lutchmiah@durban.gov.za

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