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By Johnathan Paoli
A recent study from the University of Cape Town highlights the significant risks posed by climate change to South Africa’s agro-food sector, an industry crucial to the nation yet often overlooked in climate discussions.
Conducted by PhD candidate Koaile Monaheng, the dissertation titled “Climate Risk Disclosure: An Assessment of the South African Agro-Food Sector” reveals a concerning lack of preparedness among companies to address long-term climate impacts.
Monaheng’s research investigates how agro-food companies in the country have integrated climate change risks into their operational strategies.
By focusing on less carbon-intensive sectors that are nonetheless vulnerable to physical climate risks, it offers a new perspective on climate risk assessment.
It introduces a blended climate risk disclosure framework inspired by global standards, including the Carbon Disclosure Project and the Task Force on Climate-Related Financial Disclosures (TFCD).
The findings indicate that while South African agro-food companies demonstrate awareness of climate risks, their reporting on actionable measures remains weak.
Most companies have not met the robust disclosure standards seen in international best practices. Although South African firms recognise their climate risks, the transition from awareness to action is lacking.
“The performance of South African agri-businesses is comparable to international counterparts in climate change disclosure,” Monaheng said.
“However, the gap between risk recognition and proactive measures is evident. More detail on actions and implementations is essential.”
In terms of TCFD recommendations that outline climate change governance, South African food retailers performed better than agri-businesses. The same pattern followed for both transition risks and physical risks.
Monaheng said South African companies understood – and took seriously – the importance of transitioning towards a low carbon economy in line with local legislation in their disclosures where they referenced the Greenhouse Gas Protocol, the South African Carbon Tax and the Draft Climate Change Bill since the signing of the Paris Agreement.
But, while many companies acknowledge the need for a transition to a low-carbon economy, few have aligned their strategies with global goals such as the 1.5°C warming limit outlined in the Paris Agreement.
Most disclosures focus on Scope 1 (direct emissions from sources owned or controlled by a company) and Scope 2 emissions (indirect emissions from purchased electricity, steam, heat, and cooling). However, they often neglect comprehensive Scope 3 targets on all other emissions associated with a company’s activities.
Despite recognising the urgency of dealing with climate change, South African companies have struggled to meet greenhouse gas emission reduction targets.
Monaheng emphasised the need for the private sector to adopt more ambitious strategies to align with both local legislation and global climate commitments.
“The research underscores the critical need to bridge the gap between climate change and food security, especially as southern Africa faces increasing water scarcity and extreme weather events like droughts and floods,” Monaheng added.
He said recent studies on El Niño’s impact further emphasised the need for agro-food companies to develop climate-resilient systems.
As the agro-food sector grapples with the long-term implications of climate change, Monaheng has urged industry leaders and policymakers to prioritise this vital area.
He warns that without effective adaptation strategies, many companies risk survival as climate conditions continue to deteriorate.
In conclusion, while some South African companies show promise in acknowledging climate-related risks, the inconsistency in climate risk reporting leaves many unprepared for the future.
“If companies cannot adapt effectively to climate change, they will not survive,” Monaheng warned.
He highlighted the pressing need for integrated climate governance and resilience-building measures.
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