Africa Leads the Way: A Recap of the ISSB Standards Adoption Round Table

I had the distinct honor of receiving a special invitation from Ndidi, Dr Nnoli-Edozien , a board member of the International Sustainability Standards Board (ISSB) , to participate in the Pan-Africa Regulatory Round Table on Sustainability Standards. This event, focused on the uptake of the new ISSB Standards across different African jurisdictions, was held in the stunning setting of #Mauritius —an apt backdrop for discussions aimed at shaping a sustainable future in #Africa.

The ISSB has established a set of standards intended to unify non-financial reporting globally. This initiative prioritizes investor-driven materiality, enabling businesses to align more closely with ESG goals. This strategic alignment is designed not only to enhance transparency but also to drive business value and growth through sustainability.

To my surprise and admiration, countries like Nigeria, Ghana, ?Tanzania and Kenya have already implemented legislation and developed comprehensive roadmaps for the ISSB standard. This proactive stance is widespread, with many African nations actively engaging in the adoption process. It’s evident that Africa is not just participating in the global sustainability conversation—it is leading it.

Navigating Challenges and Setting a Roadmap and vision for future investment.

The adoption of ISSB standards presents numerous challenges. It requires businesses to thoroughly assess the #impact of these new standards, engage with stakeholders inclusively, and embark on extensive consultative processes. Capacity building and establishing realistic timelines are critical to ensure businesses are well-prepared for these changes.

During the round table, we delved into the #interoperability of the standard and the intricacies of ensuring the ISSB standards work harmoniously with other frameworks like the European Sustainability Reporting Standards, Global Reporting Initiative (GRI) , and Integrated Reporting . We emphasized the importance of #proportionality and practicality in applying these standards to avoid overwhelming businesses with undue costs or complexities. IFRS also has published the Sustainability Disclosure #Taxonomy (ISSB Taxonomy), fulfilling its promise to enable investors and other capital providers to analyse sustainability-related financial disclosures efficiently. The Taxonomy enables companies to consistently tag information prepared using ISSB Standards.

Overall, the discussions brought to light the substantial financial commitments required to achieve the SDGs in Africa —approximately $200 billion annually until 2030. However, with about $35 trillion in global sustainable investment assets, there’s a vast potential for capital flow into Africa. As highlighted by Sunil Benimadhu , CEO of the The Stock Exchange of Mauritius Ltd. , targeting even 1% of these assets could significantly aid in meeting these financial requirements.

This groundbreaking initiative was made possible by the collective efforts of the IFRS Foundation team, including Ndidi, Dr Nnoli-Edozien , Simon Messenger , and Ravi Abeywardana, ACA , as well as the Mauritius Financial Reporting Council (FRC) and the African Forum of Independent Accounting and Auditing Regulators (AFIAAR). I extend my heartfelt thanks to all involved for their dedication to fostering a sustainable future and for organizing such an enlightening event.

As I reflect on the discussions and insights from the round table, I am inspired by the role Africa is playing in leading the adoption of sustainability standards. With continued collaboration and commitment, the continent is poised to unlock a sustainable and prosperous future, proving that proactive engagement in global standards is not just beneficial—it's imperative for growth and development.

Sustainable Square and ISSB

Sustainable Square has been in the forefront of the adoption of the new ISSB standards S1 and S2 via engagement with all our clients and partner to IFRS as a Capacity Building partner to promote the practice and move to action. I have?recently spoke at the?Arab Federation of Capital Markets (AFCM)?annual conference hosted by?Qatar Stock Exchange. The panel discussion on "The New ISSB Standards at a Glance: Is the Region Still Lagging Behind?" featuring other industry stalwarts as well, was a thorough discussion on the region's uptake of sustainability standards and path ahead.

In case you missed our 'Learn Reporting with?IFRS Foundation?Global Standards' webinar? Catch the recording at the link below and delve into IFRS S1 and S2 insights, led by our Senior ESG & Sustainability Advisor Rach ElGolli?and?IFRS Foundation's expert, Corey Walrod. Link: Learn Reporting with IFRS Global Standards [SS Webinar, April 18th, 2024] - YouTube?and finally please don't hesitate to engage with us for more insights about this new standards.