Climate change and the South African banking sector : the potential for competitive advantage

Abstract

The purpose of this research is three-fold. Firstly, it is to gauge the significance of climate change to the South African banking sector. Secondly, to note the various means by which the South African banking sector is responding to, and adapting itself to the phenomenon of climate change. Lastly, it is to understand the ways in which South African banks are using the phenomenon of climate change to create a competitive advantage for themselves. To this end, qualitative research with an exploratory design was conducted, focusing on two of the largest banks in South Africa. The identity of the banks has been kept anonymous due to the sensitive nature of the potential competitive information. A number of findings were made with regard the potential of climate change as a vehicle for competitive advantage. Firstly, that the South African banking sector, beyond eco-branding, is not fully exploiting climate change for the purpose of gaining competitive advantage. Based on the findings, the business case for the South African banking sector engaging the climate change phenomenon is clear. However some of the recommendations made toward future research include the development of a maturity model to assess response, as well as the implementation of mutually agreed upon benchmarks in consideration of competition. Copyright