Abstract:
A key challenge in the twenty-first century is to enable economic growth and increase both environmental
quality and social inclusiveness, while mitigating and adapting to the impacts of climate change. The need
for a transition to more sustainable consumption and production patterns is undeniable and sustainable
economic growth must be placed at the heart of future development for all citizens. The South African
private sector is under enormous pressure to remain globally competitive while balancing the interests of
society, the environment and its shareholders. It has been suggested that there are discrepancies between
what companies say and what they actually do, as they are challenged to move from policy to action. This
paper evaluates the extent to which the private sector in South Africa adheres to voluntary climate change
mitigation mechanisms and identifies potential market barriers impeding the large-scale uptake of such
mechanisms. The research findings suggest that the private sector in South Africa has adopted a “take
position, wait and see approach” which places them in a position to take advantage of and influence the
opportunities and risks associated with climate change without having a negative impact on the bottom line.
The primary barrier to voluntary climate change action is the vagueness of local and international policy
frameworks. The different rules and resultant uncertainty around local and international frameworks appear
to impede consistent and meaningful action. Although this uncertainty does not prevent the private sector
from taking voluntary action, it does appear to negatively affect the overall scale and type of climate change
mitigation efforts. While companies are continually improving the quality of sustainability reporting and
public disclosure, the challenge still lies in translating these strategies into daily operations and sustainable
practice that goes beyond ad hoc mitigation actions.
