Annual Survey 2024 to 2025 Discussion | Part 2

By Alistair Collier | The Business of Golf Magazine

We continue our discussion on the key points of the latest John Collier Golf Annual ESG Survey

BG: Does JCS have any stats, year-on-year, which track the improvements, in terms of the percentages of clubs in each of the categories?

AC: Very much so, and in fact I am regularly approached by participating clubs wishing to improve their sustainability level reporting for the club.

The increasing number of clubs participating is certainly gratifying, in terms of believing that the sustainability message is ‘getting out there’. However, a very central objective of the survey has always been to help each club measure, and report on, their sustainability (ESG) initiatives, within its own particular circumstances – keeping in mind that there is no finite destination as regards sustainability (ESG) levels, it is a journey.

In this sense, the findings on sustainability levels by golf clubs in South Africa, as set out in the annual survey, indicate a positive uptick, and the survey, as previously mentioned, explores several of the reasons for this positive development.

As for the percentages, the national sustainability level has increased by 2.6% to 31.6%, and we saw the club participation rate move to just over 46%.

BG: This survey once again includes some very useful recommendations.

Was this a planned part of the published survey’s evolution, and where does the prompt come from?

AC: The survey’s recommendations for 2025, originate in part from; the discussions held at the Club Management Association of Southern Africa (CMASA) Conference in August 2024 at Fancourt, added to issues raised by many club management committee members and management teams throughout the year, and comments by management that there is a need for club leadership to be more deliberate about guiding clubs.

The recommendations focus on four areas, and the need for:

clubs to be clearer about the purpose and role of the board and directors in respect of ESG
more effective board / management committee renewal and composition, including better levels of skills’ diversity
a better focus on leadership, dynamics and process
improved levels of strategy review, performance, risk and stakeholder management

these focus areas are dealt with in greater detail in the annual survey

BG: Why is sustainability, and its three ESG pillars, becoming so important?

AC: What is key is that sustainability has emerged as a central theme across various industries, not the least being golf, transcending boundaries, and becoming a key focus for businesses globally.

As the world grapples with environmental challenges, social responsibilities, and governance requirements, industries are recognising the need to adopt sustainability practices. Closer to home, we often read about golf clubs on the edge of closing or being closed, and invariably the backstory is in part often a failure of managing sustainability (ESG) principles, and in particular the efficiency of their governance checks and balances.

As mentioned previously, the work being done by the International Sustainability Standards Board (ISSB) in issuing the IFRS Sustainability Disclosure Standards—IFRS S1 and IFRS S2, is providing greater certainty, to the real purpose and meaning to sustainability reporting.

In this regard, sustainability is no longer seen as an optional choice for businesses anymore, nor for that matter golf, as it has become a strategic imperative, shaping the practices, and priorities, of industries worldwide.

The latest annual survey’s findings indicate a positive upward trend, so at John Collier Golf we look forward to this work providing guidance and assistance to help this positive trend to continue, and to develop further through 2025.

BG: I also detected a narrative change, which I think could be described as ‘softer’, almost as if you were trying to beat the donkey with a carrot!

Given the continual flow of government edicts, Acts and bills, and the enormous compliance load this places on club management, is the goal with this newer narrative style to try to take the bogeyman nature out of what needs to be done, and rather try to impart the sense that all of this is eminently doable, but that each venue, outside of the ‘must-dos’ i.e., paying VAT, needs to find its own levels and rates of progress, which can be dependent on a host of factors, such as the number of staff employed, services offered, budgets, etc?

AC: Yes, it is, and during my visits to clubs throughout South Africa, one of the usual issues raised by club managers is their underlying concern that, are they are not ‘on top of’ a changing legislative and compliance environment, as it applies to their club.

Our message to clubs is that all is not lost, as there are resources around them such as GolfRSA, and CMASA, and most importantly not to ignore the benefit of external third-party review.

BG: What for you are the ‘key elements’, or take-aways in this year’s survey?

AC: The five key elements of the 18th John Collier Annual Sustainability Survey are;

In Malcolm Gladwell’s recently published book, “The Revenge of the Tipping Point”, the author describes a tipping point as; “That magic moment when an idea, trend or social behavior crosses a threshold, tips, and spreads like wildfire.” Golf club sustainability in South Africa, which is underpinned by environmental compliance, social responsibility, governance and financial issues (ESG) levels, may not yet be at that magical moment, but through our research this past year, we have seen green shoots of positive developments in sustainability ESG levels by clubs in the country.
Within this 18th Annual Survey, we report on real positive improvements in many of the sustainability ESG areas, which indicate that 54% of these areas showed improvement, while the balance of 46% remained static. This is a significant development, as in previous years there were focus areas which recorded a decline. This turnaround in sustainability ESG levels by golf clubs in South Africa is good news, as we noted that not only did the national sustainability level increase by 2.6% to 31.6%, but also that there had been an increase in the club participation rate to just over 46%.
The 18th annual survey builds on the previous survey, which dealt with the sustainability ESG principles, and the United Nations Sustainable Development Goals. This year we discuss the sustainability and ESG principles, while providing practical examples of what clubs may wish to report on in their annual reports, and in other club internal or external communications.
The other positive take away from this 18th publication is that it provides managerial methodology, to help club management committees / boards, the management team and members, to be clearer about the purpose and role of the board, and directors, and management in respect of sustainability ESG. The content includes tips to help ensure that management committee / board renewal is properly managed, the composition and diversity is balanced. It also stresses the importance of effective leadership, and the dynamics and process within this, the need for a clear strategy, and the necessity to manage performance, risk and stakeholder management well.
While some golfing organisations may be reluctant to embrace sustainability ESG principles, this edition’s findings illustrate how the tide is turning regarding acceptance of sustainability ESG reporting, the importance of early implementation, and the benefits of embracing sustainability ESG. The 18th John Collier Annual Survey is a call to all golfing entities, such as GolfRSA, PGA of South Africa, the provincial golf unions and golf clubs, to consider implementing a methodology, in respect of measuring and reporting on sustainability, based on the three pillars of ESG. This process emphasises the maxim which is that – “those issues, which are recorded, measured and reported on, can be managed”.

If you have any queries, why not contact the John Collier Golf through our website or via email ajcollier@telkomsa.net?

Yours in Sustainable Golf
JOHN COLLIER