Takalani Netshitenzhe
Environmental, social, and governance (ESG) related topics have become mainstream recently, as stakeholders have all come to recognise the need for sustainable practices.
Various stakeholders, from employees and customers to investors and regulators, expect organisations to integrate ESG principles in their operations and practices to actively address some of our most pressing social and environmental challenges.
As global socio-economic conditions remain uncertain amid current political change, conflict, and the climate crisis, ESG is set to continue to be a more prominent business focus.
Environmental sustainability, or the ‘E’ in ESG, has garnered significant attention as businesses recognise their responsibility toward mitigating climate change and preserving natural resources.
Companies are increasingly adopting strategies that reduce their carbon footprint, promote renewable energy, and ensure sustainable resource use.
In Deloitte’s 2023 CxO Sustainability Report, 75% of global C-level leaders said their organisations have increased their sustainability investments over the past year, with climate change a top business priority.
At Vodacom, for example, our purpose encompasses protecting the planet. Through energy-efficient initiatives, such as solar-powered projects, we are committed to driving a just transition towards a low-carbon society that addresses the climate crisis.
We also contribute to the circular economy in the use of water and management of waste, from recycling to reducing consumption, and aim to use technology to support biodiversity.
Sustainability, however, cannot be achieved in isolation. The true potential of ESG lies in the harmonisation of all three components. Embedding green practices within a holistic framework that equally incorporates social responsibility and sound governance will help build a sustainable future.
In particular, integrating environmental goals with Corporate Social Investment (CSI), in which companies take an active role in the development and welfare of the communities in which they operate, can create a synergy that amplifies ESG efforts.
In South Africa, our coastal waters play a vital role in contributing to our socio-economic growth through industrial operations and tourism but also to our environment, hosting a diversity of species and minimising climate change impacts.
In Saldanha Bay, for example, the livelihoods of local communities dependent on fishing are also under threat from overfishing and pollution. To mitigate these effects, off-shore rope-grown mussel farming is being developed in Saldanha Bay as a sustainable aquaculture solution, providing a seafood source with minimum impact on the planet, as well as opportunities for employment and economic development.
While the growth of the mussel farming industry can have a positive impact on the planet and its people, there is the risk of whales becoming entangled in the mussel ropes.
Our partnership with the World Wide Fund for Nature (WWF) to safeguard marine mammals is supporting the development of a first-of-its-kind solution in SA, an artificial intelligence (AI)-powered early warning system to safeguard the whale population in fishing practices and prevent any potential shutdown of the operations by government.
The warning system benefits rope-grown mussel farms in the area, established as an alternative source of food and income for traditional fishing communities, by ensuring the sustainability of the industry.
The project also builds on our long-standing partnership with the WWF in which we have supported the WWF Southern African Sustainable Seafood Initiative (WWF-SASSI).
Using digital technology, the WWF-SASSI app drives ocean conservation, sustainable seafood consumption, and ocean literacy.
Again, while this focuses on the immediate needs of the environment, we have also been able to make a meaningful impact through environmental education, encouraging the next generation to preserve our marine ecosystems and incorporating an early childhood development centre and secondary school in Saldanha Bay that form part of Vodacom’s education ecosystem.
This educational approach is aimed at young people to encourage the next generation to be more environmentally conscious towards our oceans.
According to Trialogue’s annual research into CSI spend on development sectors in South Africa, education receives 48% of CSI expenditure. For organisations that have this social strategy in place, there’s an opportunity to integrate other ESG objectives into this investment to enhance this impact.
Vodacom Foundation’s education ecosystem supports the provision of quality education across all levels, including early childhood development (ECD). By incorporating our Planet pillar, we have introduced sustainable food gardens at ECDs across the country.
These supplement feeding schemes while promoting sustainable principles, contributing further to our ESG programme. These ECDs also run on solar energy to help reduce energy-related costs and ensure energy availability in case of load shedding. The ECD centres are also provided with sustainable water supply through the provision of Jojo tanks.
Furthermore, through the provision of the JoJo tanks, we ensure sustainable water supply for the vegetable gardens especially in areas that experience water shortages and drought. This initiative includes educational videos, that are played on Vodacom-sponsored devices i.e. laptops, that aim to educate and empower children and communities alike on sustainability practices that can be adopted at any age. This includes waste recycling as we provide the centres with recycling bins.
Climate-related crises often affect communities in more ways than one, which calls for a holistic approach to ESG. In 2022, when KwaZulu-Natal experienced devastating floods, Vodacom’s response was a combination of donating money to flood victims but also ensuring that the climate-related crisis does not exacerbate any existing social ills in the affected communities.
This is because research has found that climate change and poverty are deeply intertwined. After all, climate change disproportionally affects poor people in low-income communities. Therefore, ensuring that the affected communities have a running network, food hampers, and running water after climate-related infrastructure damage is critical.
A proportionate ESG framework offers numerous benefits, but it is not without challenges. Companies must navigate regulatory complexities, weigh up short-term costs with long-term gains, and manage stakeholder expectations.
However, these present opportunities for innovation and leadership to drive positive change and create lasting value through responsible business practices.
Reflecting on our last Mandela Day commemoration, where we hosted the Festival of Giving which focused on food security by encouraging the planting of trees and gardens not only to aid in combating climate change but also to provide sustenance for the poor.
To this end, Vodacom is proud to embrace a balanced approach to ESG in our business as we strive to empower people and protect the planet. By integrating sustainability with our CSI projects, we demonstrate our dedication to creating a better future for all.
Takalani Netshitenzhe, Director of External Affairs, Vodacom South Africa.
The Star
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