South African investment firms are moving beyond basic ESG reporting toward integrating actual carbon costs into their portfolios. New data shows that while most assets are now measured for emissions, many managers still lack clear portfolio-level targets to drive decarbonization. With the implementation of the Climate Change Act and Phase 2 of the Carbon Tax, the financial risk of emissions is becoming a concrete line item. Investors are now distinguishing between companies proactively transitioning their operations and those relying on tax allowances to delay necessary capital investments.
