Climate change is one of the greatest challenges to society and our economic prosperity. As governments, policymakers, societies and large businesses call for sustainable environmental strategies and targets, it is important to understand the potential impact on how people will live and businesses function.

Economic consequences to these changes are inevitable, with research undertaken by Yale University showing that Africa’s GDP will drop by four percent a year due to the continent’s high dependency on agricultural sectors being affected by climate change. How will South Africa cope with climate change therefore, and what will our role be in helping other African countries deal with this disaster?

Many African countries have to deal with issues of poverty, poor education, HIV/Aids, a lack of infrastructure and political instability. Liz Moonsamy, a recent MBA graduate from the University of Pretoria’s Gordon Institute of Business Science, undertook research to examine the current status of South Africa's sustainable environmental strategy in comparison to that of other countries. Implied in her studies is the impact that climate change will have on the African countries that face these challenges, focusing particularly on South Africa, as these countries will be less able to absorb the associated costs of climate change than more developed, affluent countries.

All South Africans have a role to play in the country’s Sustainable Environmental Strategy; however the attitudes and actions of the corporate world, as well as the role and contributions of government, play the largest part. Many large companies worldwide have incorporated environmental sustainability into their Corporate Social Responsibility programmes, and analyses of US-based companies show that this strategy is reaping environmental and financial rewards. American companies which have adopted a strict global environmental standard have higher market values compared with others who have not incorporated them. Further, these companies have created more opportunities for themselves by converting to greener businesses. "Today, a company's sustainable environmental strategy serves not only the purpose of saving the planet, but also saving the company itself. Sustained competitive advantage now lies in assuring customers of compliance with ethical environmental practices and codes", says GIBS’ Charlene Lew.

The process businesses need to employ in their operations, from the input of raw materials through to production, packaging and then distribution to customers, needs to be ‘green’ at every stage to make a holistic contribution to a successful strategy. Converting production and distribution functions into ‘green’ processes requires a large economic investment and businesses will inevitably take time to re-engineer their operations. Companies must therefore look at the long-term benefits of environmental sustainability, rather than the short-term loss of time and money.

A government is the nucleus of any successful environmental strategy. In those countries that have created comprehensive sustainable strategies, the public sector was pivotal in providing structured guidelines and a framework for all stakeholders in the form of policy development and implementation. Further, the facilitating role that government plays in creating sustainable partnerships between key stakeholders is fundamental to success.

Backdrop of poverty, inequality, disease, crime and energy shortages

Unfortunately the South African government is faced with many of the challenges and complexities inherent in developing countries. Against a backdrop of poverty, inequality, disease, crime and energy shortages, the government needs to take action and facilitate partnerships between stakeholders to find creative sustainable solutions. The current strategy is marked by a lack of co-ordination and urgency however, and concerns have been raised with respect to its effectiveness.

Moonsamy’s research led her to create an Environmental Sustainability Model comprising key themes, stakeholders and sustainability tools. Each stakeholder has a set of tools at their disposal, including a measurement system, a policy and legislation framework, education and communication, ‘green’ business innovation, ‘green’ government innovation, partnerships and networks, social action, market-based incentives and punitive tax measures. Theses sustainability tools provide tangible avenues for action and are based on developed country benchmarks.

The role of the government is clear: they have to be the co-ordinator and custodian of South Africa’s Environmental Sustainability Strategy. The ability of government to bring all stakeholders together, clearly define their roles, and implement policy and legislation is imperative. Further, government must establish and facilitate networks both locally and abroad. The government also has the ability to leverage international funds made available to developing nations in support of the environment. Lastly, government should take responsibility for a communication and awareness campaign to be launched countrywide.

Moonsamy’s research suggests that the corporate sector has been engaged in environmental solutions for several years, however they need to act with other stakeholders to create a bigger impact. Business must therefore engage in strategic partnerships with companies in developed countries that are currently engaging in creating value from ‘green’ business innovation.

Consumers also have a role to play, and by making informed purchasing decisions, they have the ability to influence the actions of stakeholders on the environment. Should all three levels of stakeholder work together, South Africa has the potential to be not just the leading economy on the continent, but also an example to the rest of Africa on how to make a success of an Environmental Sustainability Strategy.