Businesses are increasingly under pressure to reduce their carbon footprint. But a sustainability expert says they should see this as an opportunity rather than a threat.

“It’s a great opportunity for companies to build a case for sustainability. Sustainability is not lack of profit. You can make it work for you in a number of ways,” said Nedbank sustainability carbon specialist Marco Lotz.

He told a seminar in Cape Town that business was keenly awaiting more clarity on a proposed carbon tax, but that they should prepare for this in the meantime.

He said some kind of environmental levy, whether it be through a carbon tax, a levy or an incentive for companies, was inevitable. “However it is done, it will be priced into the goods we buy.”

Lotz suggested that companies position themselves so that they benefit from the push towards sustainability.

He told the seminar that companies should consider appointing a ‘carbon management accountant’ to look at a company’s carbon footprint. This would be good for the business, as well as for its clients, who were increasingly more aware of the importance of sustainability. 

He said it was also a powerful way of raising a company’s brand reputation. 

Nedbank has developed a carbon footprinting guide for companies to measure, monitor and report on their carbon footprint.

Lotz suggests that in the future, carbon footprinting could become as standard as doing a company tax return.

He says companies should draw up a carbon footprint report at least every month and that carbon accounting should become commonplace.

One way of greening a business was to consciously reduce electricity consumption through replacing or unplugging seldom-used machines, offering staff work-from-home flexibility and turning down the air conditioning by a few degrees.

“The National Energy Regulator of South Africa has given Eskom the go-ahead to increase electricity prices by 8% annually over five years. It makes good financial sense to reduce electricity consumption. It’s good for the company and shareholders will benefit too,” said Lotz.

Solly Fourie, head of economic development and tourism in the Western Cape, said he had seen excellent opportunities springing from businesses that had adopted a ‘green’ ethos. The province’s ‘110% Green’ programme showcases 26 flagship projects and a range of companies involved in everything from sustainable food production to protecting ecosystems and recycling.

Fears that South Africa may use up most of its fresh water resources by 2025, should also spur companies into action to conserve water. 

“The world is changing. You’re either going to benefit from it – or lose out,” said Lotz.

He said companies should reassess their procurement processes, so that local companies and contractors were used if possible. This would help to reduce transportation costs. Lotz has suggested that companies advise their suppliers and service providers to put sustainability targets in place.