CILTSA ESG Conference drives sustainable transformation in transport, logistics
Industry leaders, sustainability experts, and key stakeholders gathered to discuss how the transport and logistics industry can embrace environmental, social, and governance challenges to drive meaningful change.
Banking sector leads climate transition
Madeleine Ronquest, head of environment, nature risk, climate change at First Rand emphasised the pivotal position of transport in the global climate action strategy, noting its contribution of 25% to global emissions and significant potential for transition opportunities.
She underscored banking's evolution from passive lending to actively engaging clients in low-emission transitions, stressing opportunities in electric vehicle adoption, renewable energy integration, and circular economy principles.
Adressing operational excellence
The ESG Intelligence: Operational Excellence and Resilience session addressed critical compliance challenges, including the use of fragmented data systems and the impact of regulatory uncertainty.
Brian Mudhokwani, chief operating officer at ISB Optimus, highlighted the risks of contract loss for companies that are not in compliance. Munyaradzi Husvu, CEO at ISB Optimus, prioritised transforming ESG from a reporting burden to operational excellence.
Alfred Nhira, senior solutions consultant EMEA at Infor, presented Infor's four-pillar technology approach, which covers strategy planning, product tracking, emissions management and embedded ESG processes.
Carbon Border Adjustment Mechanism Urgency
The CBAM session examined the EU's Carbon Border Adjustment Mechanism (CBAM), which involves the implementation of carbon taxes on imports. Bongi Kunene, managing director at BASA, explained how CBAM transforms climate policy into trade barriers affecting South African exports. Heidi Barends, head of sustainable finance at Absa Corporate and Investment Banking, drew attention to the transition to unilateral ESG regulations.
The discussion revealed that CBAM could cost South Africa 300,000 jobs over 10 years, with solutions including BRICS partnerships and renewable energy manufacturing.
Navigating global volatility
Facilitated by Bernard Vilakazi, sector specialist: transport at Absa, the Navigating Uncertainty session introduced the 'NAVI' concept (Non-linear, Accelerated, Volatile, Interconnected) which describes current business challenges.
Duane Newman, EY climate change and sustainability services Partner at EY, highlighted unprecedented business pressures from geopolitical disruptions and regulatory changes. Shameela Soobramoney, CEO of the National Business Initiative (NBI), noted the importance of Africa's self-determination in addressing its energy challenges.
She cited NBI's Just Decarbonisation Pathways, which demonstrates the feasibility of achieving net-zero emissions by 2050 while fostering job creation in South Africa.
Also contributing to the panel was Liesl de Wet, head, accelerated organisational sustainability from Unitrans, who provided valuable insights from a logistics perspective. Her participation added a practical layer to the discussion, highlighting how companies like Unitrans are directly navigating the complexities of global volatility in their day-to-day operations.
Social impact in supply chains
The social ESG session explored stakeholder capitalism through a double materiality assessment.
Lauren Rota, senior director of sustainability for sub-Saharan Africa at DP World, underlined the importance of stakeholder engagement in identifying key social issues. Dr. Khuliso Rasimphi, Senior Specialist: ESG at Transnet, shared examples of best practice in the areas of employee engagement and community relations.
Sachin Chanderdhev, manager: segment propositions, relationship banking at Absa Group, described ESG as "a beneficial business practice that prioritises intention over compliance".
Zero-emission trucking transition
Mpho Nkhumeleni, executive: commercial vehicle sales at Isuzu, stressed the pivotal economic function of trucking and its significant environmental impact, with road transport accounting for 70% of logistics emissions.
He explained transition complexity, noting that battery electric vehicles are better suited to short-distance operations, while fuel cells are required for heavy-duty applications. He stated that Isuzu offers Euro 5 standards, as well as dual-fuel CNG technology that has achieved 18% fuel reduction in customer trials.
Data-driven ESG frameworks
Preesha Rampersad, Advisor at Build Africa Inc., provided a comprehensive overview of the evolution of sustainable supply chain management, highlighting the transition from siloed approaches to comprehensive ESG frameworks.
Rampersad noted several barriers, including framework complexity and data quality challenges, while focusing on Global Reporting Initiative (GRI) Standards and materiality assessments. Her six-step ESG data ecosystem process encompasses collection, integration, staging, analysis, modelling and visualisation.
"The discussions at the Conference demonstrate the degree to which the transport, logistics and supply chain industries have transformed ESG from a matter of compliance to a source of competitive advantage," said Elvin Harris, president of CILTSA.
"Our esteemed speakers demonstrated that sustainable transformation requires the integration of ESG values into daily operations, not just measurement. As logistics, transport and supply chain leaders, we have a responsibility to drive South Africa's sustainable future. When our industry leads responsibly, the nation advances," he concluded.