African Corporations Step Up Climate Action
By Nomonde Mafu
African companies are emerging as frontrunners in the global race to confront climate change, showing a stronger commitment to identifying, measuring and managing climate risks than their peers in other regions.
A new climate survey report by the US-based Boston Consulting Group (BCG) and sustainability action platform CO2 AI reveals that African firms are not only more proactive in climate risk assessment but are also realizing tangible financial benefits from their efforts.
The annual survey, titled ‘How Companies are Tackling the Climate Challenge, and Creating Value’, analysed responses from 1,924 executives across 16 industries and 26 countries that are responsible for emissions measurement, reporting and reduction within their organisations. Collectively, the surveyed firms account for about 40 per cent of global greenhouse gas emissions.
The report shows that while global climate reporting has slightly declined, from 10 per cent in 2023 to 9 per cent in 2024, African companies continue to outperform the average, with 14 per cent comprehensively identifying and measuring both physical and transition climate risks.
This places Africa second only to the Asia-Pacific region at 16 per cent. The report attributes this leadership to the continent’s heightened vulnerability to the physical effects of climate change, such as droughts, floods and extreme weather events, which have made risk assessment an operational necessity rather than a moral choice.
“African businesses are leading by example, with 14 per cent comprehensively measuring climate risks which are well above the global average,” said Hamid Maher, Managing Director and Senior Partner of BCG’s Casablanca division.
He described this progress as a testament to the continent’s commitment to resilience and forward-thinking leadership, both of which are vital as Africa faces disproportionate climate impacts, yet also shows remarkable resourcefulness.
The findings come against a backdrop of worsening climate conditions across the continent. According to the August 2024 Africa Climate Security Risk Assessment report by the multilateral initiative Weathering Risk, the continent, despite contributing minimally to global emissions, remains one of the most vulnerable to climate shocks.
The report found that 1.34 billion Africans currently face water insecurity, while 20 per cent of the population suffers from hunger, and access to affordable energy remains limited.
Climate-related losses for African firms have also risen, increasing from 1.9 per cent to 2.1 per cent of revenue between 2023 and 2024. Yet, this financial strain has spurred a greater awareness of climate risks within the corporate sector. According to the BCG and CO2 AI survey, companies across Africa are increasingly integrating climate risk assessment into their business strategies, setting them ahead of other regions in adaptation readiness.
University of Eswatini Lecturer Dr Sizwe Mabaso published a presentation stating the importance of the private sector acting on climate change. His presentation is themed ‘Building Climate Resilience through Private Public Partnerships’.
According to the International Civil Aviation Organisation, a PPP is a partnership between the public sector and the private sector to deliver a project or a service traditionally provided by the public sector. The advantage of a PPP is that the management skills and financial acumen of private businesses could create better value for money for taxpayers when proper cooperative arrangements between the public and private sectors are used.
In the presentation, Dr Mabaso discussed that private-public partnerships were essential in addressing the complex challenge of climate change. He said that this would be done by leveraging the resources, expertise, and innovation of both sectors as PPPs created opportunities for long-term, sustainable solutions.
“For example, PPPs can facilitate the development of climate-smart agricultural practices that are more resilient to erratic weather patterns. They can also foster investment in green infrastructure and renewable energy projects.
Moreover, the collaborative nature of PPPs allows for shared responsibility and risk, ensuring that both the private sector and public entities are invested in the outcome,” said Dr Mabaso.
Explaining the key areas for PPPs in climate resilience, the scientist listed infrastructure development, climate-resilient infrastructure projects, green cities, green technology and innovation, renewable energy initiatives, sustainable agriculture and water management, community engagement and education, awareness campaigns and capacity building.
Dr Mabaso said the key focus areas for PPPs in Eswatini would be climate-responsive food systems, stating that they would be instrumental in developing climate-resilient food systems that are less dependent on rainfall by introducing climate-smart agriculture techniques such as drip irrigation, crop diversification, and drought-resistant crops. The country can strengthen its food security.
“Another area of focus is health and well-being, where PPPs could also address the intersection between climate change and public health. Access to clean water, climate-resilient infrastructure, and sustainable healthcare solutions is essential for safeguarding the well-being of Eswatini’s population.
“Youth empowerment and gender equality are another key area, especially with Eswatini’s growing youth population. There is a need to involve young people in climate action. PPPs can create opportunities for youth-led initiatives, while also ensuring gender equality in climate resilience strategies.”