6th Annual Africa ESG Forum kicks off in Johannesburg

The 6th Annual Africa ESG Forum is currently underway at the Johannesburg Stock Exchange (JSE), reflecting on Africa's sustainable and responsible investment journey over the past decade. The forum has gathered key players and experts in the field to discuss the importance of sustainable investing and responsible business practices. One of the experts leading the conversation is Graham Sinclair, Director of Investor Initiative for Stock Exchanges at Ceres Inc. Sinclair highlighted the significant shift in the perception of sustainable investments, noting that it is not just a 'light and fluffy' concept as some may think. He emphasized that asset owners, including pension fund trustees and institutional investors, are increasingly integrating environmental, social, and governance (ESG) factors into their investment decisions. Currently, over 1,500 signatories managing a total of $60 trillion in assets are enrolled with the Principles for Responsible Investment (PRI), indicating a growing commitment to sustainable investing. When asked to define sustainable investment, Sinclair explained that it involves proactively incorporating ESG factors into investment decisions throughout the investment lifecycle. He provided examples such as assessing environmental impact, gender and racial diversity in leadership roles, and water intensity of operations. By considering these factors, investors not only promote sustainability but also address critical issues such as water scarcity and carbon emissions. The conversation at the forum delved into practical steps that businesses can take to improve their sustainability practices. Sinclair highlighted the importance of simple yet impactful measures, such as monitoring water footprint and carbon intensity, which can lead to a more sustainable future for the planet. He commended the efforts of the 55 signatories to the PRI in Africa who are committed to considering all relevant factors in their investment decisions. Water emerged as a key theme in the discussion, with Sinclair underlining its significance across industries. From the banking sector's reliance on water supply for operations to the impact of water scarcity on food retailers and the mining sector, the importance of water management cannot be overstated. The need for businesses to address water-related risks, such as acid mine drainage, was emphasized as a critical aspect of sustainable business practices. In conclusion, the 6th Annual Africa ESG Forum serves as a platform for fostering dialogue and collaboration on sustainable investment strategies and responsible business conduct. The insights shared by experts like Graham Sinclair underscore the growing momentum towards integrating ESG considerations into investment decisions and driving positive change in the financial sector and beyond.