Risk managers urged to consider water-saving mechanisms despite heavy rain in some regions

In contrast, South Africa is experiencing drought conditions, with farmers in the north-west among the most badly affected. Agri North West was reported as warning the agricultural sector, government and the financial sector of the need to work together to find a speedy solution for the devastating effects of the severe drought. President of Agri North West, Pierre Vercueil, said: “The banks and the agricultural sector will have to look at rescheduling of the debt to see if they can find a way [that] farmers can pay back their debt over a long period of time. Otherwise [we may see]… a liquidation of farmers to a great extent, as far as their assets are concerned.” Meanwhile, KwaZulu-Natal’s Department of Cooperative Governance and Traditional Affairs said the water levels of dams in the province remain virtually unchanged, despite the heavy downpours in some parts of the region. Department spokesperson, Lennox Mabaso, said more rain needs to fall in catchment areas before water restrictions could be lifted.hideSouth Africa’s Water Research Council has warned: “Water utilities in South Africa are compelled to implement water restrictions to meet water demand during this drought period. While this may be new to some consumers, other parts of the country are already used to this situation. “Bad as they are to consumers, water restrictions are measures undertaken by water authorities to restrict the demand for water in an effort to mitigate the risk of running out of water during a drought.” Gauteng residents have already started experiencing water cuts as implemented by Rand Water, the biggest water utility in South Africa. Marinda van der Merwe, BU Managing Partner of ERM Southern Africa, told the risk management audience at a sustainable risk breakfast forum, organised by the Institute of Risk Management South Africa, that risk managers must watch the water situation as part of their King III responsibilities. “We see water as an emerging risk in this country and in Africa generally. We should consider water as a major risk,” she added. Her words were echoed by Alex Russell, Business Risk, Governance & Compliance at Sasol Gas. She said water was very much part of the risk agenda for the company. It was not just about the company’s needs but also about the surrounding community. After the experience of Marikana, South African firms have seen a need to consider the needs of the workforce and their extended families as well as the local community. Ms Russell said two of the Sasol Gas operations were in local communities where they were able to work with the municipality to help purify the water supply. The question, she said, was how could the firm have access to clean water while the surrounding community did not? By working together, they have been able to improve the supply for everyone. “It is about having a conversation with stakeholders and not just shareholders,” she said. As part of its environmental initiatives, Sasol Gas has been putting its air quality measurements online for everyone to see. Ms Russell said it was all about taking a more responsible stance with regard to the environment. “It is a win for the company, a win for stakeholders and overall globally it is a win. If businesses can understand the role they can play in helping with a solution, it is a win for all of us,” she said. In another local initiative to help reduce drought risks, Sasol Gas has helped fund a number of plumbers, who have been used by the municipality to repair leaking taps and pipes. In just one year, the team has saved 60% of the water usage, reducing the bill for the community and saving much-needed water supplies. Ms Russell said sustainable development goals may be aimed at governments but there were a lot of things that firms could do on a local basis to make a material difference. Mark Robins, Senior Vice President: Group Safety, Environment and Risk at AGA Pension Fund, warned: “As risk managers we focus on the downside of risks. We really are not good at looking for opportunities.” Ms van der Merwe agreed, suggesting risk managers should consider: “What are the short-term risks versus long-term opportunities? We have to harness those.” In the context of water risks, she said risk managers had a responsibility to be actively looking at ways to optimise processes within the business, in turn minimising water consumption. “If you don’t minimise consumption you are being incredibly irresponsible because the water problem is not going away,” she stressed. “The time is now to make sure your operations are saving water. Innovation can play a part in that,” she urged. Rainwater harvesting schemes could help, alongside ensuring maintenance is conducted regularly so water is not wasted. Mr Robins also pointed to problems with maintenance that were exacerbating the problem in many areas. “Even without a bad drought cycle, it will get worse,” he warned.

Risk managers urged to consider water-saving mechanisms despite heavy rain in some regions

Want to read this article?

Read Next

Strebel to replace Gonzalez as head of Swiss Re China

Premium increases continue to slow down in US commercial P&C market

Berkshire Hathaway discloses minority $6.72bn stake in Chubb

Alternative solutions and specialty drive Scor’s Q1 growth

US commercial lines sector combined ratio increased to 96.2% in 2023

Strebel to replace Gonzalez as head of Swiss Re China

Premium increases continue to slow down in US commercial P&C market

Berkshire Hathaway discloses minority $6.72bn stake in Chubb

Alternative solutions and specialty drive Scor’s Q1 growth

US commercial lines sector combined ratio increased to 96.2% in 2023

Want to read this article?

Read Next

Strebel to replace Gonzalez as head of Swiss Re China

Premium increases continue to slow down in US commercial P&C market

Berkshire Hathaway discloses minority $6.72bn stake in Chubb

Alternative solutions and specialty drive Scor’s Q1 growth

US commercial lines sector combined ratio increased to 96.2% in 2023

Related Articles