SA retailers slowly turning green

In SA, the few companies that speak out about environmental concerns tend to fall within the retail sector. Beyond this, vocal commitments to environmental issues are few. While the lack of headline space to green issues is largely understandable thanks to our dramatic social and economic challenges, another reason is the lack of consumer pressure on business to become greener and more responsible towards the environment. The FM notes that in the near future, SA companies and government will be pressured into a broader response to climate change. And, if SA businesses hope to do business in developed markets, they must respond to the concerns of those consumers. SA ranks 14th in the world for CO² emissions, reflecting the industrial energy-hungry bias in the country\'s economy. Despite SA\'s status as a developing nation, it pollutes, on a per capita and per GDP basis, easily as much as the developed world. Full Financial Mail report

Going green gives big retailers a competitive advantage. Both Woolies and Massmart are doing a carbon footprint audit to assess how much greenhouse gas their activities directly emit. For Woolworths CE Simon Susman global warming is both a business and a moral issue, according to another FM report. Their customers tend to fall within the higher income groups, who generally want to do the right thing – to respect biodiversity and the environment, Susman says. As a result, Woolworths is reducing gas emissions by replacing all its fridges with more environmentally friendly ones. It is also on a mission to save energy and water and reduce packaging. Full Financial Mail report

Massmart, too, says it wants to do its bit for the environment – a move analysts say could make strategic sense, reports Business Day. Massmart has started to poll consumers about green products and in six months time it will have a clear indication of trends. Corporate Affairs executive Brian Leroni says the list of green initiatives Massmart wants to implement is extensive. It has audited its 40 suppliers on green issues and was considering analysing the energy efficiency of its stores and the biodegradability of its packaging. Full Business Day report

For the non-retail industries, adapting to lower CO emissions is more difficult, according to the Financial Mail. Mining, which is a big energy and water consumer, has longer investment cycles. New technologies could be effective in reducing emissions, but project lifespans are long. FM notes that for companies, the pressure to respond to global warming is threefold. There is firstly a moral imperative: every individual carries some responsibility to provide for longer-term sustainability. Second, there is a business imperative: customers will not take kindly to unethical behaviour, but they also demand goods and services to support their own environmental ambitions. Finally, there is regulation. And that is where SA business may find its greatest incentive to change, as the next story shows. Full Financial Mail report