Langa Madonko
Special report COLLECTIVE
Who is the survey about?
Collective Insight is a collaborative initiative published quarterly by the Financial Mail. The articles included here were selected by an independent Advisory Commi ee to reflect some of the best insights from investment professionals, practitioners, and academics in relation to selected financial challenges. Collective Insight enjoys the support of the Gordon Institute of Business Science’s Responsible Finance Initiative, the CFA Society of South Africa, the Financial Planning Institute, ABSIP and the Actuarial Society of South Africa. Our vision was to create a journal that SA’s broader investment community and its stakeholders could collectively “own”, carrying content totally independent of commercial interests. For inquiries contact Anne Cabot-Alletzhauser on cabota@gibs.co.za
Convener: Anne Cabot-Alletzhauser Practice director of the Gordon Institute of Business Responsible Finance Initiative Editorial advisory commi ee: Simon Dagut Executive in the office of the chief executive officer, Standard Bank SA Kelly de Kock Chief operating officer at Old Mutual Trust Company Prof Evan Gilbert Associate professor at Stellenbosch University and strategist at Momentum Investments Amanda Khoza Vice-president and board member of the Institute of Retirement Funds SA. Caretha Laubscher Manager: Consumer Education Framework, Financial Sector Conduct Authority Lelane Bezuidenhout CEO Financial Planning Institute of Southern Africa Nici McDonald HOD: Certification and Standards, Financial Planning Institute of Southern Africa Darius van der Walt Member of the ASSA investment commi ee, head of product development at M&G Investments Southern Africa Nerina Visser, CFA ETF strategist and financial adviser etfSA Langa Madonko Principal for investor relations and capital raising at Summit Africa
ARE WE THERE YET? Of the three components of ESG, societal impact has received the least attention y and large the corporate and investment world has capitulated. We can no longer assess the viability and sustainability of a business without considering how society, the environment and the regulatory or governance world affect a business or, in turn, are affected by a business’s products and processes. Over the past few years there has been a flurry of activity from regulators, industry bodies and service providers, all trying to determine exactly how this should be done: what should be measured, how does it get measured and what constitutes good, or at least adequate, in terms of how a company is addressing its ESG obligations. It’s been tough going, and certainly not without controversy. This edition of Collective Insight focuses on the “S” in ESG. Of the three components of ESG, societal impact has received the least attention — probably because this aspect is perhaps the most challenging to delineate and the most emotionally charged. To get a feel for what we need to grapple with, let me pose a few questions. What exactly does business aim to achieve by getting involved in the “S” in ESG? Surely
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there are potential conflicts between the needs of society, which cannot be commercially driven, and the needs of businesses, which have to remain financially viable? Is this just a branding exercise, or an attempt by business to obtain “social licence” from the communities they serve? Or is there some tangible financial reward that we need to understand better? The articles in this edition cover a number of the areas for debate. In our article “ESG in Africa”, about the lessons that can be learnt from nations that placed the “S” above the “E” and “G”, Manka Sebastian shares how other countries have yielded direct and enhanced productivity from prioritising the “S” — and how, through doing the right thing, a focus on developing social capital is fundamental to any country’s productivity and growth rates. What happens when the government does not fulfil that need? This is the conundrum that David Crosoer addresses. Importantly, he questions how “fit for purpose” the corporate and investment world is for filling in the gap when the government fails. Noma Nyembo follows on with an article on “social licence” and why this is something businesses need to both earn and renew from the communities they serve. Michael Judin and Alexandra Russell provide some solid evidence of how “social licence” can be emphatically April 6 - April 12, 2023
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