8 November 2010
ENERGY EFFICIENCY TAKING HOLD IN SA COMPANIES
The issue of energy efficiency is taking hold in South Africa as companies view it in a new light and recognize the tangible benefits of cost savings as well as reducing carbon footprints and impacts on the environment.
This is the view of Kevin Whitfield, Head of Carbon Finance at Nedbank Capital, who says that partly as a function of the state of the economy, big users of energy are paying serious attention to reducing their cost bases.
"Companies that have high energy costs as part of their overall costs are increasingly doing what they can to diminish these costs. The savings they generate go straight through to the bottom line," he said after the African Bankers' Carbon Finance and Investment Forum that was held in Midrand last week. Sanctioned by the United Nations Environmental Programme Finance Initiative (UNEP FI), this event was held in the run-up to the World Climate Summit scheduled to take place in Cancun, Mexico, on December 4th and 5th.
"The mindset has definitely changed and we are going to see more and more active reduction strategies being implemented with regard to the use of several resources."
According to Whitfield, companies and other organizations are asking themselves how they can change their energy and resource consumption habits without having to redesign their business models.
As energy-efficient practices become more widely adopted, and cost savings become more substantial and sustainable, he sees a new set of behavioural norms becoming entrenched.
"Over the next two to three years, I think we are going to continue to see many companies and industries in cost recovery mode rather than revenue growth mode, ensuring greater commitment to actions and activities that are energy-efficient and environmentally-friendly," he says.
Importantly, says Whitfield, the global awareness about the need to reduce carbon emissions and footprints is driving local exporters to ensure that they are taking these issues seriously to avoid losing business or exporting at a discount.
"The last thing an exporter wants to hear from an overseas customer is we're not buying your product because your footprint is too dirty," he adds.
"More and more companies are aiming to become carbon neutral through their own energy efficiency, waste management and consumption measures, and through carbon offsets. In some cases, companies will be able to charge premiums for their carbon neutral products."
From an international perspective, Whitfield believes that trade relations and regulations between China and the US will have a major impact on how South Africa and the rest of the world tackle carbon issues into the future.
Ends
Issued on behalf of: Nedbank
Sizwekazi Jekwa
Senior Communications Manager
011294 1306
Issued by: Jenni Newman Public Relations (Pty) Ltd
Shireen Ramjoo
Senior Account Manager
011 506 7358/ 079 452 5386
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