Kay Walsh of Deloitte has written an article listing 10 compelling reasons why South African companies must pay attention to Green Growth. Sustainability and climate change is at the top of the agenda of most companies and must be taken very seriously. Here is the second reason why companies need to pay attention to “Green Growth”.
Contact Kay Walsh at kaywalsh@deloitte.co.za or visit the Deloitte Sustainability and Climate Change website for more information.
Non energy-efficient businesses will see negative bottom line impact
The impending carbon tax will add to the existing burden of dramatically rising energy costs, which are likely to continue to trend higher over time.
Carbon tax will raise the cost of energy further. Average electricity prices in South Africa doubled between 2008 and 2011, and are likely to have doubled again by 2015. This will drive more efficient use of energy as business tries to avoid the rising costs and wastage where possible.
Businesses will have to become more efficient in terms of how they use energy resources, and this is a big advantage of the Green Growth initiative.
Industrial organisations will be forced to introduce energy-efficient technology, switch to cleaner fuel inputs, improve processes and possibly start recycling. Commercial businesses can become more energy-efficient by doing simple things that lower the cost of energy, like implementing solar energy, changing to energy-efficient lighting solutions, and switching off appliances and lights at night.”
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