The CEO of asset management major Ninety One has called for realism in how asset allocators invest in sustainability projects, arguing coal is still a key source of energy for the developing world.
Hendrik du Toit, in a conversation with Alexforbes CEO Dawie de Villiers, contained in the 2025 Manager Watch Survey of Retirement Funds Investment Managers published on Wednesday, says sustainability is central to investment decisions if honest conversations were held.
“The sustainability conversation sometimes drifts into moral theatre: lots of noise, not enough honesty. The real world is messy. Emerging markets can’t switch off coal tomorrow. People still need jobs, electricity, mobility, dignity,” Du Toit says.
“So the question is not ‘are you pro-sustainability?’ Everyone is, in principle. The question is: will we fund a transition that is credible and fair and that actually lowers real-world emissions over time? From an investment perspective, that means pricing risk for the long term and mobilising capital for solutions, because there are profitable opportunities in financing the transition.
“It also means remembering who owns the money: we are custodians, not moral arbiters for every issue under the sun. Our duty is to help clients meet long-term objectives and to do so in a way that recognises the long-term consequences of what we own and fund.”
The world’s leading asset managers are increasingly balancing coal investments with sustainability by divesting from thermal coal or demanding credible transition plans.
South Africa’s 2025 Integrated Resources Plan aims to establish a sustainable power system that ensures long-term energy security, supports emission reductions, promotes environmental sustainability and drives industrial and economic growth.
The ambitious blueprint envisages the procurement of 34GW of wind power, 25GW of solar PV, 8.5GW battery storage and 16GW of distributed generation by 2039, signalling a strong policy commitment to clean energy and creating a predictable investment environment, according to international law firm Pinsent Masons.
The plan’s implementation is projected to cost R2.2-trillion, providing funding for new generation capacity, infrastructure upgrades and green industrialisation projects.
South Africa has committed to achieving net-zero carbon emissions by 2050.
The Alexforbes survey shows South Africa’s asset management industry is increasingly transforming, with 54 out of the 78 asset managers in the survey rated as level 1 contributors. In addition, the top 22 asset managers in the survey all achieved a level 1 rating.
“These results show that leading asset managers are increasingly aligning their strategies with transformation objectives. The continued rise in level 1 ratings suggests that BEE compliance remains a priority across the South African asset management industry,” the survey reads.
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