*Faculty of Commerce, Law and Management (ETDs)
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Browsing *Faculty of Commerce, Law and Management (ETDs) by SDG "SDG-13: Climate action"
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Item Evaluating the effectiveness of South Africa’s air quality legislation as a climate change mitigation tool(University of the Witwatersrand, Johannesburg, 2023) Mlapisane, Simelweyinkosi; Lisa, ChamberlainThe global community is still grappling with the climate change crisis. Due to the intrinsic relationship between climate change and air quality, South Africa is addressing climate change through its air quality laws. This report demonstrates how these laws have been incorporated in a climate change context. It also evaluates whether the air quality laws have been robust enough to combat climate change. The report further argues that in practice, South Africa has fallen short, mainly due to a badly designed legal framework that has many loopholes, which has led to insufficient implementation. It goes on to make five recommendations on strengthening the legal framework to make it more effective. This report recommends that specific climate change legislation should be enacted; that South Africa should revisit and reform its current air quality laws; that the national government should strengthen the local government’s capacity to improve air quality; that there should be more cooperation between government departments; and that priority area management plans should contain penaltiesItem Implications of environmental taxes due to climate change management in South Africa(niversity of the Witwatersrand, Johannesburg, 2021) Kunene, Ntombizonke NomfundoClimate change has become topical over the years, and refers to patterns of changes in general weather conditions that result in higher average temperatures for the earth and its surface, known as global warming. This is attributable to the increased concentration of gases known as greenhouse gases (Department ofEnvironmental Affairs, 2011). The causes of climate change emanates from natural and human activities (NASA, 2019), human causes are the major contributors to climate change attributable to high industrialisation (Department of Environmental Affairs, 2011). Industrialisation requires the burning of fossil fuels that emit carbon dioxide, which affects the atmosphere (NASA, 2019). The greenhouse gases emitted far exceed capacity of the natural eco-system to reabsorb them, and the clearing of land or forest areas also affects this process (Department of Environmental Affairs, 2011). Policymakers recently gathered to put measures in place to address this predicament and to encourage ‘green energy’ or low-carbon technologies (Funke & Mattauch, 2018). This research study aims to assess the different measures implemented in order to reduce emissionsItem Senior decision makers’ perspectives on South Africa’s climate change response strategy(2021) Taylor, AndrewThis research seeks to analyse the perspectives of senior decision makers of South Africa’s climate change response strategy, using Q Methodology as the principal research methodology. The research reveals 4 statistically significant perspectives and seeks to distil traits which exemplify these perspectives. These perspectives have been located within the current international commitments and domestic climate change response strategy of the Republic of South Africa. This research argues that the interdependence of the actors who are responsible for driving the climate change response strategy require a coordinated and structured approach to achieve meaningful change. This approach must be based on multi-sectoral cooperation, led by a nationally coordinated drive to implement decarbonisation strategies compatible with the undertakings made in terms of the Paris Climate Agreement. These strategies must be underpinned by a coherent response which sufficiently balances the trade-offs implicit in balancing a complex system such as climate change, more specifically, when set against the unique background of South Africa’s demographics, structural and economic inequality and natural environmentItem South African Climate Change Regulation: Towards Climate Change Mitigation(University of the Witwatersrand, Johannesburg, 2022) Manzella, Marco JohnClimate change is the change in earth’s weather and climactic conditions due to an average rise in the temperature of the earth’s surface. This temperature increase has principally resulted from an exponential increase in greenhouse gas (GHG) emissions resulting from anthropogenic activity. The consequences of climate change are experienced differently by different regions and the effects can reach across the globe ranging from minor to catastrophic proportions depending on the location of a country. The international response to this crisis has accelerated significantly since the early 1990s and the formation of the United Nations Framework Convention on Climate Change (UNFCCC). South Africa acknowledges the threat of climate change; however, the country has a strained relationship with climate change mitigation as one of earth’s highest emitters of GHGs per capita due to its dependency on coal combustion. This dependency is further complicated by the sector’s status as a primary employment and socio-economic driver domestically. These competing priorities impact upon South Africa’s climate change response. South Africa has advanced climate change mitigation to a limited extent through the slow development of a domestic regulatory framework. The mitigation effort is hampered by some shortfalls in the domestic regulatory framework. The country currently lacks climate change law. This paper seeks to determine how capable South Africa’s domestic framework is of facilitating climate change mitigation. It espouses the view that a robust and comprehensive regulatory framework is necessary for meaningful domestic mitigation action. It emphasizes the importance of regulatory certainty – where adoption and enforcement of the framework are concerned. The current regulatory framework – despite its fragmented, ad hoc nature – is already advancing limited mitigation action. This limited success can be amplified by the adoption of a better developed, more comprehensive frameworkItem The impact of climate change on investment risk and credit risk(University of the Witwatersrand, Johannesburg, 2023) Bell, Francesca; Van Vuuren, GaryESG (Environmental, Social, and Governance) factors have evolved from being a minor consid- eration in the 2000s to a major factor for many companies in 2023. Many companies are now assigned ESG grades, which are closely examined by investors. While it would be ideal for re- sponsible firms to be rewarded and culprits to be penalised, this is not always the case in a profit- driven world. Investors are likely to always prioritise profitability, so some compromise is neces- sary. Recent efforts to balance corporate responsibility with portfolio performance are promising. Using Lagrangian calculus, portfolio optimisation techniques have been developed that show re- turns and risk profiles comparable to those of unconstrained portfolios (i.e., ones which did not consider ESG scores). As expected, low ESG scores influence portfolio performance negatively (as measured by the Sharpe ratio), but very high ESG scores have the same effect. Optimal ESG scores are those which represent the turning points of these relationships, i.e., those ESG scores which result in maximal Sharpe ratios. These optimisation techniques are applied to emerging market corporates for the first time. Over time, ESG scores have improved globally, at varying rates, and have resulted in a statistically significant decrease in risk and increase in returns. As volatility increases, optimal ESG grades rise slowly, and associated Sharpe ratios decrease, and it is postulated that this could be due to the option-like relationship between underlying volatility and inherent value. With a better understanding of trends, asset managers who consider ESG met-rics can confidently assert that ESG compliant portfolios do generate healthy risk-adjusted returns (Sharpe ratios) and that these values are improving over time. ESG compliant portfolios are now viable investments that align with responsible investment principles. Firms must estimate expected credit losses (EL) to comply with accounting standards and unex-pected credit losses (UL) to determine regulatory credit risk capital. Both rely on estimates of obligor probabilities of default (PD). Changes in climate, however gradual, increase firm default rates and climate shocks such as floods or droughts exacerbate these impacts. Investors pay close attention to credit ratings which are derived from inter alia default rates, but studies investigating the impact of climate change on PDs are currently limited and data are still relatively scarce. Africa will be most severely impacted by climate change: default rates will deteriorate leading to in- creased PDs, losses given default (LGDs), provision requirements (through increased ELs) and vi regulatory credit risk capital (through increased ULs). To investigate these effects theoretically, corporate equity prices are simulated using Geometric Brownian Motion (GBM) and shocks brought about by climate events of differing frequency and severity are applied to these simulated prices. Post shock prices and return volatilities are differentially affected depending on the nature of the applied shock. These are used as inputs into a well-known Merton (1974) model of corporate default from which market-implied PDs may be extracted. A possible calibration approach is developed for climate event-based impacts on corporate default rates. A scaling factor matrix (an amount by which the unaffected default rate increases after a specified climate event type occurs) can help market participants forecast default rate changes. Climate related impacts have been quan- tified, calibrated, and used to assess credit quality degradatItem Thermal conversion of waste-to-energy by incineration in Johannesburg(2022) Sithole, NkumbuloThe City of Johannesburg's population growth and economic activity have resulted in increased amounts of generated municipal solid waste (MSW); concerns developed about landfill airspace depletion. Environmental concerns subsist as a landfilling activity often create greenhouse gases, air pollution and water contamination, therefore, contributing to climate change. Conversely, the City requires electricity to keep its economic activity functional, while providing its citizens with electricity. This case study examined the opportunities and impediments of waste-to-energy (WtE) implementation in the City of Johannesburg. Focus was on thermal conversion by mass-burn incineration, identifying the function of decision-making frameworks in supporting the integrated solid waste management leading to development and WtE implementation. The study established that WtE will stimulate the circular economy in the City of Johannesburg, therefore, contributing to environmental preservation, waste minimisation, and additional electricity capacity for the City. To align with the legislated decision framework, the waste hierarchy, the WtE facility should incorporate the material recovery facility (MRF). The waste hierarchy and other legislated processes, such as the Municipal Finance Management Act (MFMA) and the public-private partnership (PPP) Framework, are inadequate to support WtE development. The research recommends developing a local government-based decision-making framework by the City of Johannesburg—service delivery focused; this would complement existing legislation. A multi-criteria decision making (MCDM) model is suggested. The increase in grid tariffs, cost-reflective gate fees, and introducing landfill tax could contribute to the commercial viability of WtE. The identified barriers are a lack of education and awareness, and improper stakeholder engagement with WtE. Findings indicate a lack of expedited legislation processes tailor-made for projects, such as WtE and five-year political terms, hampering service delivery plans. Findings also identified access to waste by independent power producers Thermal conversion of waste-to-energy by incineration in Johannesburg iii (IPPs) and the City of Johannesburg’s financial viability as barriers. These should be focused on to realise WtE implementation.Item Thermal conversion of waste-to-energy by incineration in Johannesburg(2022) Sithole, Nkumbulo EdwinThe City of Johannesburg's population growth and economic activity have resulted in increased amounts of generated municipal solid waste (MSW); concerns developed about landfill airspace depletion. Environmental concerns subsist as a landfilling activity often create greenhouse gases, air pollution and water contamination, therefore, contributing to climate change. Conversely, the City requires electricity to keep its economic activity functional, while providing its citizens with electricity. This case study examined the opportunities and impediments of waste-to-energy (WtE) implementation in the City of Johannesburg. Focus was on thermal conversion by mass-burn incineration, identifying the function of decision-making frameworks in supporting the integrated solid waste management leading to development and WtE implementation. The study established that WtE will stimulate the circular economy in the City of Johannesburg, therefore, contributing to environmental preservation, waste minimisation, and additional electricity capacity for the City. To align with the legislated decision framework, the waste hierarchy, the WtE facility should incorporate the material recovery facility (MRF). The waste hierarchy and other legislated processes, such as the Municipal Finance Management Act (MFMA) and the public-private partnership (PPP) Framework, are inadequate to support WtE development. The research recommendsdeveloping a local government-based decision-making framework by the City of Johannesburg—service delivery focused; this would complement existing legislation. A multi-criteria decision making (MCDM) model is suggested. Theincrease in grid tariffs, cost-reflective gate fees, and introducing landfill tax could contribute to the commercial viability of WtE. The identified barriers are a lack of education and awareness, and improper stakeholder engagement with WtE. Findings indicate a lack of expedited legislation processes tailor-made for projects, such as WtE and five-year political terms, hampering service delivery plans. Findings also identified access to waste by independent power producers (IPPs) and the City of Johannesburg’s financial viability as barriers. These should be focusedon to realise WtE implementation.Item Trends in reporting on climate change, water and COVID-19 by JSE listed companies(University of the Witwatersrand, Johannesburg, 2022) Seedat, Zakiyyah; Lange, Yvette; Maroun, WarrenEnvironmental, social and governance (ESG) information is increasingly demanded by stakeholders as companies face risks and opportunities due to ESG issues, such as climate change, water and COVID-19. ESG disclosure helps reduce information asymmetry for users of company reports and helps companies maintain their social licence to operate. Disclosure is voluntary and this introduces differences in the information disclosed by companies. This study analysed the annual, integrated and ESG reports of the top 40 Johannesburg Securities Exchange (JSE) listed companies. These reports were analysed following an interpretive approach to determine the extent of disclosure on climate change, water and COVID-19 in 2018, 2019 and 2020. This study also considered the change in disclosure on climate change and water over these three years. A disclosure checklist has been developed using professional literature. Content analysis has been used to codify the disclosed information with disclosures being scored using an ordinal scale. Descriptive statistics have been used to analyse and graphically present the data. Exploratory factor analysis has been used for the identification of major disclosure themes. This study contributes to existing research by considering the current state of ESG disclosure at a time when notable developments in the reporting environment have occurred. The findings indicate that companies have focused on quantitative and strategy-related disclosure, indicating the adoption of similar reporting practices by companies. The study also found that there was no significant change in climate change and water disclosure from 2018 to 2020