PATRICK CAIRNS|
IN an article published last month, Prescient Investment Managers grappled with the question of how local asset managers should consider climate imperatives in their portfolios.
‘As a country, we rely on fossil fuels,’ wrote Prescient quantitative analyst Vanessa Mathebula.
‘Coal continues to be the primary energy source as it caters for about 77% of South Africa’s energy needs. Furthermore, no material changes in this trend are expected in at least the next two decades.
‘Unfortunately, the coal dilemma stretches wider than the obvious coal mining industry. As per the ripple effect theory, many other industries are reliant on fossil fuels.’
These industries include transportation, petrochemicals – Sasol is a massive CO2 emitter – and the financial industry, which has indirect interests.
Mathebula said there are initiatives in place to move South Africa to a greener economy, but the transition is slow and progress has been minimal.
‘The country’s
You’ve reached your free article limit
Subscribe to enjoy unlimited access to trusted journalism. Cancel anytime.
Subscribe nowNeed help? molokom@insidepolitic.co.za
