ESG and SDG Reporting in Zimbabwe: Ready or Not, Here They Come?

The sun is rising on a new era of corporate transparency in Zimbabwe. With the Zimbabwe Stock Exchange (ZSE) and Victoria Falls Stock Exchange (VFEX) mandating ESG and SDG reporting in annual reports from 2024, Zimbabwean companies are facing a crucial question: Are they ready? What is ESG and why does it matter? ESG stands for environmental, social, and governance. It refers to a set of non-financial factors used to measure a company’s impact on its employees, customers, and the community.

In Zimbabwe, many large listed enterprises, like Innscor, Caledonia, Delta, Padenga, OK have already been issuing ESG reports. They are all very different reports and this largely because everyone tries to highlight their own key successes when it comes to measurement. This remains a big problem worldwide although there are now some guidelines, these differ from country to country.

Why ESG and SDGs?

Environmental, Social, and Governance (ESG) factors, along with the Sustainable Development Goals (SDGs), have become a global language for measuring a company's impact beyond just the bottom line. Investors are increasingly looking for companies committed to responsible practices, while consumers are choosing brands that align with their values.

For Zimbabwe, embracing ESG and SDGs presents an opportunity to:

Attract foreign investment: Investors seeking sustainability-focused assets will find Zimbabwe more appealing.

Enhance brand reputation: Companies showcasing their ESG and SDG efforts gain trust and loyalty from stakeholders.

Drive sustainable development: Aligning business goals with SDGs can contribute to national progress on critical issues like poverty, education, and climate change.

The Readiness Debate

While the potential benefits are undeniable, concerns simmer about Zimbabwe's preparedness for comprehensive ESG and SDG reporting. Critics point to several challenges:

Limited awareness and expertise: Many companies, particularly small and medium-sized enterprises (SMEs), even large ones lack the knowledge and resources necessary to effectively measure and report their ESG and SDG performance.

Data availability and quality: Accurate data on various environmental, social, and governance issues is often scarce or unreliable, making reporting difficult. A number of companies do not track or monitor their activities and so these often don't count at the time of reporting.

Cost and resource implications: Implementing robust ESG and SDG reporting systems can require significant investments in technology, staff training, and external services.

Current Reporting Landscape

Despite the challenges, progress is being made. Several Zimbabwean companies, particularly larger corporations, have already begun incorporating ESG and SDG elements into their reports. Notably, many of the Zimbabwe Stock Exchange listed companies already include a section on ESG and SDGs. Additionally, initiatives like the Global Reporting Initiative (GRI) and the International Sustainability Standards Board (ISSB) framework offer reporting frameworks and guidance for Zimbabwean companies. Check this paper to learn more about the current practices in Zimbabwe.

Stirring the Debate

Moving forward, a healthy dialogue is essential to ensure effective ESG and SDG reporting in Zimbabwe. Here are some key questions to consider:

1. How can we bridge the awareness and expertise gap, particularly for SMEs
2. What role can the government and institutions play in providing data and capacity-building support?
3. How can we balance the cost burden with the long-term benefits of ESG and SDG reporting?
4. Can we develop sector-specific reporting guidelines to cater to the diverse needs of Zimbabwean companies?

Navigating the uncharted waters of ESG and SDG reporting in Zimbabwe will require collective action. By fostering collaboration, knowledge sharing, and resource mobilization, Zimbabwe can turn this mandatory challenge into an opportunity for growth, sustainability, and a brighter future.

The question is no longer 'if' but 'how' Zimbabwean companies will rise to the ESG and SDG reporting challenge. At Solarpro we are particularly interested in seeing how this develops. Our recently launched Rent To Buy solar program presents opportunities for companies and their employees to participate and contribute to ESG and SDGs enhancement.

The Solarpro Rent-to-Buy program unlocks a bright future for companies seeking to shine in the ESG and SDG reporting universe. Our solar systems already come with inbuilt reports per system on carbon emissions curtailed, etc allowing users to have an idea on how much their solar system is contributing to the reduction of carbon emissions.

I am excited that many companies are reaching out to us and are ready to support their staff and clients with solar loans. The beauty about this is that the companies will be able to aggregate and measure the impact of their support through the systems we install. While employees will also contribute to the purchase of their systems over time which reduces the cost of providing such equipment by the employers. More importantly as our Rent to Buy project takes off in 2024, it's going to allow for companies to show their impact across all 17 SDGs.

Our rent to buy program isn't just about solar panels - it's a sustainability superpower unlocking all 17 SDGs! Imagine clean energy powering homes, slashing carbon emissions, boosting health, improving water access, creating green jobs, and more. Through staff loans Solarpro makes impactful projects effortless with pre-designed systems, expert support, and production reports. It's a win-win-win: your company thrives with clean energy, your employees feel engaged, and our planet gets a brighter future. We have prepared a guide to help companies utilise our Rent to Buy Solar program to improve their ESG and SDG contributions. If you are interested in engaging us on how our program can help your company rank higher on ESG and SDG reporting do not hesitate to contact me.