Energy efficiency is taking hold in SA, as companies recognise cost-saving benefits of reducing their carbon footprints and impact on the environment.
This is the view of Kevin Whitfield, head of carbon finance at Nedbank Capital, speaking during the African Bankers' Carbon Finance and Investment Forum that was held in Midrand last week.
According to Whitfield, big users of energy are paying serious attention to reducing their cost bases.
From an international perspective, he believes trade relations and regulations between China and the US will have a major impact on how SA and the rest of the world will tackle carbon issues in future.
Sanctioned by the United Nations Environmental Programme Finance Initiative (UNEP FI), the forum was held in the run-up to the World Climate Summit scheduled to take place in Cancun, Mexico, on 4 and 5 December.
Cost-cutting measures
“Companies that have high-energy costs, as part of their overall costs, are increasingly doing what they can to diminish these costs. The savings they generate go straight through to the bottom line.”
Whitfield indicates: “The mindset has definitely changed and we are going to see more and more active reduction strategies being implemented with regard to the use of several resources.”
It is also Whitfield's view that organisations are asking themselves how they can change their energy and resource consumption habits without having to redesign their business models.
“Over the next two to three years, I think we are going to continue to see many companies and industries in cost-recovery mode rather than revenue-growth mode, ensuring greater commitment to actions and activities that are energy-efficient and environmentally-friendly,” he says.
Whitfield claims that more companies are aiming to become carbon neutral through their own energy efficiency, waste management and consumption measures, and through carbon offsets. “In some cases, companies will be able to charge premiums for their carbon neutral products,” he notes.
New opportunity
Global research firm Gartner, concurs with Whittfield, stating that the ICT industry sees climate change and sustainability as an emerging opportunity. In the past year, there has been a rapid progression in the maturity of ICT vendors developing low-carbon technologies.
According to Gartner, ICT contributes 2% to the planet's total carbon dioxide emissions. The firm states it has become evident that hardware vendors such as HP, Ericsson and Fujitsu are increasingly focused on the energy efficiency of their equipment and making it a core business, while more needs to be done in the software and services sector.
Share