South Africa pushes for carbon neutrality, companies respond

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South Africa faces an overwhelming challenge in its pursuit of carbon neutrality by 2030. According to the updated Nationally Determined Contribution (NDC), the country must reduce its greenhouse gas emissions to between 350 and 420 MtCO2e to meet its commitment.

However, the Climate Action Tracker (CAT) rates South Africa’s current climate targets and policies as “Insufficient,” showing a significant gap between the nation’s ambitions and the Paris Agreement’s 1.5°C temperature limit.

This has placed increasing pressure on South African businesses to adopt greener practices or face potential consequences.

Many are rising to the occasion, but the journey is fraught with challenges. Mediclinic Southern Africa is one such company navigating these obstacles while trying to achieve its ambitious vision of becoming carbon neutral by 2030. The company shared its journey.

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A complex energy landscape

Mediclinic Southern Africa operates within a landscape that is still very reliant on coal-generated power. This, as most South Africans know, is compounded by persistent load shedding. With a large national footprint and a number of current local challenges, the organisation acknowledged the difficulty of reducing its carbon footprint.

Mediclinic told of how in 2021, it began by the daunting task of measuring and analysing its energy consumption to find effective strategies for reducing dependence on fossil fuels.

Four years into this effort, the company reports that it now has installed photovoltaic (PV) panels at 28 sites across the country.

According to Greg van Wyk, CEO of Mediclinic Southern,  the next phase involves integrating battery systems with on-site renewable energy through national micro-grid projects. “Traditionally, we have relied on on-site solar provision for our baseload. At the time, excess energy export wasn’t available, and battery storage wasn’t financially viable. But now we are ready to introduce storage options,” he explained.

Van Wyk spoke of the challenges associated with space availability, grid compatibility, and the financial feasibility of specific solutions.

He said that the organisation has launched pilot projects at Mediclinic Milnerton and Mediclinic Vergelegen in the Western Cape to evaluate the effectiveness of micro-grid control systems. “These systems will optimise energy sources, responding to variables such as peak loads, overcast conditions, and load shedding,” he said.

Balancing environmental and financial concerns

In addition to adopting renewable energy technologies, Van Wyk also confirmed that Mediclinic has introduced wheeling agreements at two sites and is leveraging a combination of owned and third-party (BBBEE empowerment-owned) PV energy supplies. However, he said that the organisation recognises that no single solution will work across all its hospitals. “We understand the importance of sharing risk and may look at two or three varied solutions across our network,” says Van Wyk.

Efficiency improvements play a crucial role in the overall strategy. He confirmed that all 50 hospitals were actively reducing energy demand by introducing more energy-efficient equipment and encouraging  more awareness amongst its workers of consumption patterns. “Management teams monitor energy and water usage closely, adjusting and reporting any deviations from their targets. This hands-on approach is making a significant difference in the long term,” Van Wyk notes.

Building a sustainable future

Despite the hurdles, Mediclinic says it remains committed to its goal. Van Wyk emphasizes the importance of practical, solution-driven implementation. “We will be a responsible role player in our country, creating a better future for the next generation.”

South Africa’s journey towards carbon neutrality stresses the need for businesses to innovate and adapt to local realities.

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Devina Haripersad Business Journalist
Devina is a passionate journalist covering the business beat, with a knack for uncovering the story behind the numbers. When she’s not exploring the latest developments in business and politics, Devina unwinds with long cardio sessions and sharing memes with friends who don't always get her dark sense of humour.

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