APRM SOUTH AFRICA SELF- ASSESSMENT REPORT (CORPORATE GOVERNANCE) Presentation to the joint Ad-hoc Committee on Corporate Governance (APRM) 23 January 2006

DEAT Context A prosperous and equitable society living in harmony with its natural resources We will do so by leading sustainable development of our environment and tourism through: Creating conditions for sustainable tourism growth Promoting conservation and sustainable utilisation of our natural resources to enhance economic growth and poverty eradication Protecting and improving the quality and safety of the environment Promoting a global sustainable development agenda

Sound Environmental Management & Corporate Governance Promoting an enabling environment and effective regulatory framework for economic activities Ensuring that corporations act as good corporate citizens with regard to human rights, social responsibility and environmental sustainability

Enabling environment & regulatory framework Constitution Section 24 stipulates that everyone has a right: to an environment that is not harmful To have the environment protected, for the benefit of present and future generations through reasonable legislation Constitution enshrines rights and responsibilities with regard to provincial and local government on environmental management

National Environmental Management Act, 1998 Provides for procedures and institutions for integrated, cooperative governance on national and provincial scale regarding environmental issues Makes provision for the implementation of integrate environmental management plans at all levels of government Imposes the duty to care for the prevention, minimising and remediation of environmental damage such as pollution and degradation

National Environmental Management, Biodiversity Act, 2004 Establishes SANBI- Manage the planning, monitoring and conservation of our biodiversity and promote research in a co-ordinated and integrated way Protection of threatened/protected ecosystems and species Listing of species if it is of high conservation value- trade in listed areas regulated Sustainable use of indigenous biological resources and fair sharing of benefits from bio prospecting Control/eradication of alien and invasive species and listing thereof

Environmental Conservation Act, 1979 & Associated Environmental Impact Assessment Regulations Some of its provisions replaced by NEMA Responsible for environmental impact assessment (EIA regulations under the ECA are about to be replaced by new regulations to be promulgated under NEMA) Waste Management (New bill being drafted to replace ECA sections dealing with waste management)

Marine Living Resources Act, 1998 Conservation of marine ecosystem Long term sustainable utilisation of marine living resources Orderly access to exploitation, utilisation and protection of marine living resources Exercise control over marine living resources in a fair and equitable manner

Related Acts National Water Act, 1998:legislates the development, use and protection of water resources. Protection of aquatic and associated eco-systems is facilitated. Also addresses the pollution and remedies thereof iro water resources Conservation of Agricultural Resources: regulates the combating and prevention of erosion, combats the weakening of water resources by protecting vegetation, combating of weeds and invader species. Also regulates grazing capacity, control of veld fires and restoration of eroded land

Provision for the municipal planning to be development oriented Continue… Municipal Systems Act: explicit references to biodiversity and environmental conservation. Its chapter 5 provides for the policy need to enable district and municipalities to conserve and protect the environment in their areas Provision for the municipal planning to be development oriented The planning of municipalities to be aligned with and complement the development plans and strategies of affected areas Consultations required to develop integrated development planning frameworks

Development Facilities Act, 1995 Promotes the integration of social, economic, institutional and physical aspects of land development Encourages environmental sustainable land development practices Addresses optimum utilisation of natural resources Promotes a diverse combination of land uses

How do we ensure that Corporations are good corporate citizens? Our experience regarding environmental degradation Long term environmental degradation by the mining industry Air pollution: burning of fossil fuels for electricity generation, petrochemical industries, iron and steel operations High levels of solid waste produced through domestic and industrial processes Contamination of land by processing industries Urbanisation and consequent loss of land with high agricultural potential Pollution of surface and sub-surface water resources

What we have done… Over the past two years we established an environmental management inspectorate to address cases of non-compliance with environmental legislation NEMA provides for the development of environmental management cooperation agreements that would facilitate negotiated agreements on voluntary compliance by industrial sectors and organs of state on environmental management commitments Many corporations voluntarily seek accreditation in terms of the international environmental standards such as ISO 14001

Legislation develop and implemented as already addressed What is our evidence of legislation, policies, programmes, institutions and resources to safeguard the environment? Legislation develop and implemented as already addressed The EIA regulate the environmental impact assessment processes related to activities identified as potentially harmful to the environment Directives are served on persons alleged to have contravened the waste management provisions. Provisions exist to identify waste streams that require special management and for charges to be levied in this regard

Continue… Air Quality Management: All spheres of Government are now involved in air quality management- requires increased governance capacity and localised focus/knowledge. Strengthened enforcement provisions and regulatory mechanisms and incentives in the form of recognition programmes

Policies and Strategies National Strategy for sustainable development National growth and development strategy Environmental management policy National waste management strategy Integrated pollution and waste management policy

Programmes on sustainable environmental management Health care risk waste programme Recycling programmes for plastic bags, glass, tyres and paper Africa stock pile programme for removal of obsolete pesticides Cleaner production strategy Programme to remove toxic mercury from Thor Chemicals Environmental cooperation agreements National air quality management programme Integrated environmental management tools

Levels of compliance by Corporations Compliance to EIA regulations increases annually- 5 500 EIA applications received between April and November 2005. A further 5 800 for rectification for unlawful commencement Environmental liability not readily accepted by corporations and legal intervention is often required to ensure liabilities are taken up Larger corporations tend to move towards cleaner technologies while smaller corporations still present a challenge The establishment of the environmental management inspectorate appears to be providing a compliance incentive

Citations for Environmental Degradation 72 reports of degradation and compliance received between April and November 2005, 38 of these referred to provinces for further investigations and the remainder were investigated by DEAT 10 of the investigated cases resulted in compliance, 7 resulted in new legal action and 2 resulted in successful prosecution

Reports by Corporations on their environmental performance Larger corporations do environmental performance reporting Provinces and National Departments with functions impacting on environment report annually against their environmental management plans Reporting on performance against permits issues in terms of the EIA regulations are required on an ad hoc basis- which are provided to the national and environmental authority

State Of the Environment (SOE) in South Africa Well established SOE reporting, from 1997 Environmental reports published are inter alia: millennium development goals that containing reporting on environmental sustainability and climate change response strategy, millennium ecosystem assessment and the spatial biodiversity assessment , state of rivers sectoral report, state of environment reports for metropolitans Cape Town, Johannesburg, Pretoria and Durban (cities state of the environment)

Continue Corporate sector involved in SOE with imperatives of corporate social responsibility and triple-bottom-line reporting Current state of the environment reporting is called SA Environment Outlook 2005 and will have this outlook: State of the environment focused on governance, land, biodiversity and ecosystem health, inland water resources, marine and coastal resources, atmosphere and human settlements

Continue… Human vulnerability will assess vulnerability to environmental change and our ability to cope Outlook section will extrapolate the current environmental trends to indicate the future state for 2025 And a section options for action

SOE Continue SOE: Youth version Capacitate youth on environmental governance Dedicated to enhance environmental literacy and deepening multi-disciplinary environment knowledge Capacitate youth to issues of environmental sustainability The youth version of the SEO to be launched in 2006

SOE continue Sectoral SOE reports are gaining popularity- state of coast report which is part of the WSSD implementation is nearing completion. State of the air report is on the cards, state of the rivers has been done and the state of the forests. In total more than 25 state of the environment reports have been published in South Africa in the last seven years- thus improving environmental governance.

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