Home
FacebookTwitterSearchMenu
  • Subscribe
  • Subscribe
  • News
  • Features
  • Knowledge Library
  • Columns
  • Customs
  • Jobs
  • Directory
  • FX Rates
  • Categories
    • Categories
    • Africa
    • Air Freight
    • BEE
    • Border Beat
    • COVID-19
    • Crime
    • Customs
    • Domestic
    • Duty Calls
    • Economy
    • Employment
    • Energy/Fuel
    • Events
    • Freight & Trading Weekly
    • Imports and Exports
    • Infrastructure
    • International
    • Logistics
    • Other
    • People
    • Road/Rail Freight
    • Sea Freight
    • Skills & Training
    • Social Development
    • Sustainability
    • Technology
    • Trade/Investment
    • Webinars
  • Contact us
    • Contact us
    • About Us
    • Advertise
    • Send us news
    • Editorial Guidelines

Costs hold back zero-carbon transition

11 Jul 2024 - by Liesl Venter
0 Comments

Share

  • Facebook
  • Twitter
  • Google+
  • LinkedIn
  • E-mail
  • Print

Environmental, social and governance (ESG) considerations have become crucial to business strategies, driving efficiency and maintaining customer loyalty. Liesl de Wet, chairperson of the Road Freight Association (RFA) green transport group, emphasises that ESG is no longer sidelined, but has entered the boardroom, with few executives overlooking its importance as an integral part of the business."The Covid-19 pandemic played a significant role in redefining the agenda, quickly highlighting the human impact on the planet. It spurred the 'build back better' movement, which has continued to impact. There is no doubt that businesses understand the importance of ESG and the long-term value it adds,” she told Freight News.Research by consulting firm Ernst & Young (EY) corroborates this finding, indicating that the post-pandemic investment landscape is set to place greater focus on ESG disclosures. According to EY, investors increasingly believe that companies excelling in ESG are not only less risky but also better positioned for longevity and more prepared to handle uncertainty.Pressure is also coming from governments as the focus on transitioning to zero-carbon economies accelerates.According to De Wet, this is also the case in South Africa. Incidents such as the major f looding in Durban in recent years, which severely impacted logistics operations, underscore the reality of climate change and the need to transition to greener solutions."One of the biggest challenges in the logistics and transport space, however, is how to deliver low-carbon results without rendering the business unprofitable. Margins are very tight, and it is a highly competitive industry, so achieving sustainability is not cheap," she explained.This issue was highlighted recently at the Road Freight Association’s annual convention where more than 150 transporters were asked about introducing electric vehicles into their operations. It was agreed that they would all prefer this greener alternative but that it was simply unaffordable.“The importance of ESG is no longer questioned. Executives know that it holds benefits for their business, but financing remains a hurdle. The question now is rather how do we transcend from boardroom discussions and reporting to integrating it into every part of the business affordably,” she said.According to De Wet, companies will need to align their financing strategies with sustainability ambitions, underscoring the growing importance of sustainable financing worldwide.Companies are increasingly opting for green bonds or sustainability-linked loans to implement their sustainability strategy, ref lecting a broader shift towards integrating environmental and social considerations into financial decision-making.

Sign up to our mailing list and get daily news headlines and weekly features directly to your inbox free.
Subscribe to receive print copies of Freight News Features to your door.

ESG 12 July 2024

View PDF
Businesses urged to embrace ESG demands
11 Jul 2024
Fuel from seaweed concept gains traction
11 Jul 2024
Costs hold back zero-carbon transition
11 Jul 2024

FeatureClick to view

West Africa 13 June 2025

Border Beat

Zim's anti-smuggling measures delay legitimate freight operations
06 Jun 2025
Cross-border payments remain a hurdle – Masondo
30 May 2025
BMA steps in to help DG and FMCG cargo at Groblersbrug
21 May 2025
More

Poll

Has South Africa's ports turned the corner?

Featured Jobs

New

Sea and Air Import Controller DBN (Or Sea Imports)

Tiger Recruitment
Durban
12 Jun
New

Export Controller

Lee Botti & Associates
Cape Town
11 Jun
More Jobs
  • © Now Media
  • Privacy Policy
  • Freight News RSS
  • About Us
  • Advertise
  • Send us news
  • Contact us