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ZSE urges companies towards transparent sustainabi...

ZSE urges companies towards transparent sustainability reporting

Tawanda Collins Muzamwese

Audrey Galawu

Sustainability experts have encouraged companies in the country to comply with the rules as announced by the Zimbabwe Stok Exchange in sustainability reporting.

The reporting, which ZSE said would start on January 1 next year, compels companies listed on the ZSE to provide information to internal and external stakeholders, demonstrating commitment to transparency and measure impacts to improve performance.

Chief Sustainability Consultant of Toxiconsol Private Limited t/a African Sustainability Consultants and International consultant in sustainability, Tawanda Collins Muzamwese applauded the initiative by ZSE, which he said would force companies to be transparent and responsible.

“I really think this is a very good initiative, it is step forward as it provides an insightful narrative of a company’s economic, environmental and social impact.

“It brings out transparency of companies, forcing them to verify their social and environmental contribution to sustainable development. Companies are forced to be good corporate citizens which is also a positive for the community.

“This was long overdue as a lot of companies were ignoring the environment and this will force them to disclose and comply with global best practices. Companies need to embrace this initiative. ZSE also needs to collaborate with stakeholders.

“There is need for collaboration, capacity building through company trainings to sensitise and educate companies on the initiative. Sometimes it is not that companies do not want to comply but others may not be aware and fully educated.

“The ZSE also need to enforce the rule otherwise if they fail to do so, we might lose an important opportunity, said Muzamwese, who once served as president of the Business Council for Sustainable Development Zimbabwe.

In a statement, the ZSE announced in 29019 that in line with section 399 to 404 of ZSE Listing Rules issuers must disclose, in their Chairman’s statement of the Annual Report, sustainability information and the organisation’s strategy for addressing sustainability issues.

Companies were allowed a window period that is ending on December 31, 2023, with the new regulations taking effect for the financial period beginning on January 1, 2024.

“Since the gazetting of the ZSE Listing Rules in 2019, the ZSE allowed for a transitional period for Issuers to adopt the aforesaid requirement. Despite this reprieve, other Issuers have already made efforts to adopt and report on sustainability.

“In light of the training sessions that have been conducted by the ZSE over the years, the ZSE now requires all issuers adopt sustainability reporting. This requirement is effective from the financial period commencing 1 January, 2024 going forward.

“The ZSE, having taken into account the Global Reporting Initiatives Standards and International Financial Reporting Standards Sustainability Standards, has developed the following core sustainability disclosure metrics for adoption as a minimum starting point.

“Issuers are, however, not limited to these core disclosure metrics and may provide additional information including sector specific metrics,” reads the statement 

ZSE added that Issuers are still required to conduct materiality assessments.

The Global Reporting Initiative is an international, independent, non-profit entity that provides a widely recognised framework for sustainability reporting. 

GRI’s mission is to sustainably improve the world by enabling organisations to understand and communicate the impacts of their activities on people and the environment.

The updated GRI Standards 2023 consists of a modular system set of three series: The Universal Standards which apply to all organisations, the Sector Standards which allows for reporting on impacts for organisations in certain sectors and the Topic Standards which list the disclosures relevant to a particular topic.

 

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