This article reviews the external factors that influence environmental perf
ormance of companies in South Africa, drawing on international and Local li
terature. After considering factors within the natural, social, economic an
d institutional environments, the article develops a typology for predictin
g the environmental performance of the business sector. This model is then
applied to the South African context to identify positive and negative infl
uences on environmental behaviour. The analysis indicates that, of the 18 f
actors identified, only five are currently promoting good performance. A fu
rther seven factors, however, are likely to show gradual improvement as a r
esult of government policies in the economic, social and environmental aren
as. Issues raised for consideration by policy makers include: the integrati
on of financial, industrial and education policies with environmental initi
atives: the pricing of minerals, electricity, and disposal of waste into th
e air and sea; and improved enforcement of environmental legislation.