HARARE – In a significant regulatory development aimed at enhancing corporate accountability, the Public Accountants and Auditors Board (PAAB), the Zimbabwe Stock Exchange (ZSE), and the Victoria Falls Stock Exchange (VFEX) announcedthat all listed entities will be required to submit sustainability reports for financial years starting on or after January 1, 2024.
This directive is part of a broader initiative to align with international standards and best practices in sustainability reporting. According to the joint statement, this requirement is grounded in Statutory Instrument 134 of 2019, in conjunction with the ZSE’s Practice Note 16 and VFEX’s Practice Note 2. The move is expected to instill greater transparency and accountability among corporations and facilitate effective communication of sustainability-related impacts and initiatives to stakeholders.
“We believe that mandatory sustainability reporting will not only enhance transparency but also encourage companies to adopt more responsible environmental and social practices,” said the statement. The new framework aims to foster a culture of sustainability among listed entities and respond to the increasing pressure from investors and consumers for greater corporate responsibility.
While the submission of sustainability reports will be mandatory, it is crucial to note that the assurance of these reports is not yet a requirement, giving companies time to establish their reporting processes. The PAAB also stated that although the adoption of IFRS Sustainability Disclosure Standards – released by the International Sustainability Standards Board (ISSB) in November 2022 – is in the pipeline, compliance with these standards remains optional at this point.
The announcement comes at a time when global trends are shifting towards sustainability, with many investors prioritizing organizations that demonstrate strong environmental, social, and governance (ESG) practices. The effect of these new regulations is expected to be felt across various sectors as businesses prepare to meet the upcoming deadlines.
Company executives are encouraged to engage with relevant regulatory bodies to clarify any uncertainties regarding the new requirements. As the deadline approaches, stakeholders across the Zimbabwean economy are watching closely to see how listed entities handle this substantial shift towards sustainability reporting.
The PAAB, ZSE, and VFEX have committed to providing further guidance as they develop an implementation roadmap for the new sustainability reporting standards, ensuring that organizations are equipped to meet these evolving expectations.
