5. Multi-criteria Decision Aid (MCDA)
6.3 Similarities in Climate Change Response Drivers and Motivations
The next section goes into more detail in explaining the similarities and differences in the drivers for climate change response, as well as the initiatives which each of the two companies are embarking on in response to the climate change risks and opportunities.
These patriotic sentiments were also expressed by Tongaat executives as expressed in the following quotations:
‖We are a country that has tons and tons of unskilled human capacity and we have learnt that it is not being properly utilised. So if we really want to build the capacity and reduce the unemployment in the country; increasing employment in the agricultural sector would have an impact in terms of the economy, people earning X Rands being able to contribute Y into the economy.‖
Commenting on the electricity from bagasse generating capacity, a Tongaat executive expressed a similar need to contribute to the growth of Africa:
―This project has a potential not only focused on SA but also Southern Africa, the so-called SADC.
That would have a massive impact in terms of reducing our carbon footprint. We would also be able to influence the economic growth in the country as Tongaat.‖
There is also evidence of sharp awareness and motivation to be good corporate citizens, and in climate change terminology, ―earth citizenship.‖ The understanding that resources are finite and that corporations have a moral responsibility to safeguard and protect those resources for future generations was expressed by executives in both companies. Some of the statements included:
―...also, ATNS being a global citizen, not just a company, but a responsible citizen - we also want to get involved because of these reasons.‖
The Tongaat executives had this to say:
―We cannot continue to be where we were 40 years ago. That we have abandoned – to live as if we have infinite resources. If as an organisation, we don‘t purchase a single watt of electricity from Eskom, we will have achieved something.‖
Another statement by another executive with similar sentiments was:
―The drive is about water treatment for Tongaat to save water. The second part is that, if ever we are to be a much more sustainable organisation and a responsible corporate citizen, we have to save water because we are in a water-stressed country. We have to do our part and make a contribution towards that.‖
6.3.3 Organisational Legitimacy
Legitimacy is important because of the reputational and other organisational benefits that can accrue from some degree of shared agreement among climate change societal constituencies that an organisation is aligned with accepted notions of purpose, endeavour and outcomes.
Customer Pressures
An important driver for both companies is increasing consumer awareness and pressures. The concept of green consumerism - whereby customers and consumers prefer environmentally friendly products and services is a phenomenon which both companies have started experiencing, albeit to varying degrees.
Tongaat had this to say concerning the need to respond as a result to customer demands:
―…we have had customers asking what the carbon footprint of our product is….. Yes! How much CO2 do we produce per tonne of starch? Luckily we have been able to answer that question quite easily because of CDP.‖
Another executive said:
―SA Breweries want to stick to non-GMO products … We give SA Breweries what they want because they take 35%+ of our volumes and we don‘t want to lose market share.‖
Value chain emissions profiling is becoming a concern as evidenced by this statement from yet another of the Tongaat executives:
―…I think customers will come to us and say, are your processes running as efficiently as possible, with the lowest consumption of electricity per unit of product, lowest consumption of water per unit of product, lowest emissions and lowest effluent generation per unit of product?
So as TH we have to be able to show customers that we have been very efficient on that front…‖
Customer pressures are also being felt by ATNS. This push is expressed in this statement:
―What I‘m trying to say is our customers are already aware. They are actually asking that question (Is there a better way you can do your operations now given these environmental issues that are coming up?). They may be asking that question indirectly in order for them to save fuel or to save money, but it‘s an environmental issue.‖
The need for both entities to enhance their corporate reputations by paying more attention to the changing societal expectations and other stakeholders is also a key motivator for action.
Legal and Regulatory Pressures
National and international policy frameworks as well as legal and regulatory pressures for emissions reduction are providing an incentive to reduce operational emissions. There were mentions of the Carbon Tax, National Climate Change Response Strategy as well as the Waste Act. The COP 17 held in Durban, South Africa, in December 2011, of which both companies actively participated was still fresh in the executives‘ minds and so received a substantial number of mentions as an event that has heightened the need for response.
ATNS is being driven by international legislation and requirements as propagated by the International Civil Aviation Organisation (ICAO).
―So ICAO is like the mother body of all civil aviation organisations in the world and they have come up with a request that every civil aviation organisation, not only air navigation providers, but also airlines, civil aviation authorities etc., all should respond to this issue of climate change
….. ICAO has come up with a Civil Aviation Environmental Protection (CAEP) document detailing how each of the civil aviation members should respond to the issues of climate change.‖
Tongaat seems to be driven largely by the National Environmental Management Waste Act 59 of 2008 and its predecessors. The following statement bears testimony,
―…most of the things are around effluent treatment. Primarily those are driven by the environmental legislation. From an environmental perspective, there are certain standards that have been set in terms of what effluent you can release and in what state it should be… so there is a big focus on compliance.‖
Another statement confirming the motivation to comply is captured in this statement:
―…so when The Green Scorpions come they must not find that we are releasing effluent that does not meet the standards.‖
The Green Scorpions are an environmental legislation enforcement arm of the government.
Their primary areas of enforcement include biodiversity, protected areas, pollution and waste, as well as coastal, marine and environmental impact assessments.
Another key driver which may be peculiar to South Africa is the need to conserve electricity, due to constrained supplies from the only electricity utility in the country, Eskom:
―There was a directive from Eskom for us as part of the Intensive Energy Users Group (IEUG) to cut electricity usage by 10% after the 2008 power cuts…. We were actually ready post-2008 to start generating part of our own electricity using Sasol gas…‖