Airports Company South Africa (ACSA) has made strides in embedding environmental, social and governance (ESG) principles into its core operations, positioning itself as a leader in sustainable airport management on the African continent. (Delwyn Verasamy/M&G)
ADVERTORIAL
Airports Company South Africa (ACSA) has made strides in embedding environmental, social and governance (ESG) principles into its core operations, positioning itself as a leader in sustainable airport management on the African continent. The company’s comprehensive and multifaceted approach to ESG underscores its commitment not only to operational excellence and financial sustainability but also to fostering positive socio-economic and environmental alignment with the National Development Plan and global sustainable development goals.
Environmental stewardship
ACSA operates an ISO 14001:2015 accredited environmental management system at all nine airports, maintaining compliance with environmental legislation and monitoring obligations. The company achieved and sustained Airports Council International (ACI) Level 2 carbon accreditation at OR Tambo, Cape Town and Chief Dawid Stuurman international airports, and King Shaka International Airport reached Level 3 accreditation, demonstrating a commitment to reducing carbon emissions including Scope 3 emissions that airports influence indirectly.
Investment in renewable energy is a cornerstone of ACSA’s environmental strategy, with four solar farms at its airports and a fifth under development. A R2.034 billion gas-to-power trigeneration plant project is planned to enhance energy efficiency, reduce reliance on coal-based grid power, mitigate risks related to power insecurity and potentially reduce carbon emissions by 67%. Noise mitigation and wildlife hazard management are effectively handled, with no noise complaints and a reduction in bird strikes reported during the year, reflecting sound operational practices for environmental protection.
Social transformation and inclusive growth
ACSA’s ESG framework emphasises social responsibility, targeting broad-based socioeconomic transformation. The company maintains a Level 2 BBBEE accreditation, with black-owned businesses contributing 68% of commercial revenue, surpassing set targets. Notably, ACSA supported the creation of almost 24,000 job opportunities in the reporting period, advancing economic inclusivity.
Through its Aviation Academy, ACSA invests in skills development and diversity, delivering more than 3 800 learning interventions annually and providing bursaries to employees and their dependents to promote education in critical fields. The academy also functions as a recognised aviation security training centre for sub-Saharan Africa, reinforcing ACSA’s role in regional capacity building.
Community upliftment forms a major pillar of ACSA’s Socio-Economic Economic Development strategy, investing more than R12 million in programmes aimed at early childhood development, youth skills training, entrepreneurship and environmental stewardship. These projects empower women, youth and people with disabilities, supporting sustainable community development in surrounding airport communities.
Governance excellence and stakeholder engagement
Governance at ACSA is characterised by a board and executive team that drives oversight, ethical leadership and risk management, contributing to ACSA’s robust financial performance and operational resilience. All legal and regulatory requirements are met while integrating governance best practices aligned with King IV™ principles. ACSA’s board and committee structures ensure strategic direction and accountability, overseeing transformation agendas and the company’s ESG initiatives. ACSA started its ESG journey in 2021, driven by its CEO, Ms Mpumi Mpofu. Through her pursuit of achieving an embedded ESG environment not only in ACSA but in the aviation sector, and through her role as a member of the Airport Council International (ACI) Board, a critical global body, she has been advocating for stringent ESG reporting. ACI sets global standards, policies, and best practices, fosters cooperation among airports to ensure a safe, secure, efficient and environmentally responsible air transport system.
ESG in ACI underpins airports’ permission to operate and grow by demonstrating a commitment to sustainability, social responsibility and good governance through transparent reporting and action. This focus supports airports in meeting regulatory requirements, improving community relations, attracting sustainable financing and enhancing operational resilience, all vital for the future sustainability of global airport operations.
Stakeholder engagement, which is key to ACSA’s method of work, is proactive and inclusive, fostering transparency and partnership-building with airlines, government bodies, communities and suppliers. Reputation benchmarking indicates a moderate but stable reputation among key stakeholders, and there is a clear commitment to enhancing communication and collaboration to maintain trust.
Looking ahead: Sustaining momentum
ACSA’s ESG successes reflect an integrated and strategic commitment to embedding sustainability across its operations. The company plans to continue increasing its investments in green technologies, widen community and workforce development efforts and deepen ESG reporting to meet international standards set by ACI. Because of the excellent implementation of ESG in ACSA, ACI has requested that it assist in conducting beta-testing of the global aviation ESG reporting framework.
These efforts are critical for ACSA’s vision to become Africa’s best smart-airport network by 2030, sustaining its competitive edge while promoting sustainable economic and social progress.
Overall, ACSA’s ESG journey serves as a model for how state-owned enterprises in emerging markets can leverage their core operations to generate long-term value, contribute meaningfully to national development and lead in environmental stewardship and social transformation. This integrated approach reinforces ACSA’s role as a custodian of vital infrastructure and as a trusted corporate citizen shaping the future of aviation and society in South Africa and beyond.
Laurene Less is Group Executive: Corporate Services at Airports Company of South Africa.