Governance emerged as the paramount factor in Environmental, Social, and Governance (ESG) considerations in a recent survey conducted by Freight News. The survey aimed to assess the awareness, priorities and challenges South African companies face in their pursuit of sustainable practices and responsible corporate behaviour.However, the findings also highlighted the persistent challenge of limited ESG awareness and understanding, hindering efforts to fully embrace sustainable practices and achieve holistic corporate responsibilit y.While some 50% of respondents indicated their companies currently had ESG initiatives in place, almost 70% indicated that lack of awareness or understanding of ESG remained the main obstacle for companies and industry as a whole in implementing ESG practices; this was followed by limited financial resources and operational constraints.“ESG is still too new and no one, if they're honest, is really sure how and to what level ESG should be applied in their business,” said one respondent.Another concern highlighted in the survey was the lack of collaboration and visibility of initiatives across industry.“ESG initiatives should be more visible,” said a respondent. “Companies may be doing great work, but we don’t really know who they are and what they are doing. Improved visibility will ease the challenges the entire industry faces and promote best practices in the freight and logistics sector.”The survey found that more collaboration was a key requirement for the successful implementation of ESG practices. In particular, there were resounding calls for greater involvement and proactive contributions from government bodies and industry associations in promoting and implementing ESG initiatives in the freight and logistics industry.“All stakeholders, from government to the lowest employees, should be involved in putting processes in place to promote ESG within the industry. It is impossible to put a rational, workable, time-frame-driven process in place if everyone is not consulted,” said another respondent.Advocating for enhanced ethical business practices and a greater emphasis on transparency, the survey respondents highlighted the significance of reducing carbon footprints and implementing improved employee well-being programmes. It was evident that the industry recognised the pressing need and importance of bolstering ESG compliance. Concerns were raised about the potential consequences of failing to actively pursue ESG initiatives, as customers and funders could shift their business elsewhere. While South Africa still held the advantage of being Africa's gateway and benefiting from the supply chain demands generated by the Africa Continental Free Trade Area (AfCFTA), inefficiencies, particularly within the state-owned enterprise sector, were already diverting business to neighbouring countries. Urgent intervention was deemed necessary to reverse the loss of income, funding, and job opportunities, stated one respondent.
