PAAB develops roadmap for IFRS standards

ROBIN PHIRI

The Public Accountants and Auditors Board (PAAB) is developing an implementation roadmap for the IFRS Sustainability Disclosure Standards, which will require listed entities to submit sustainability reports for financial years starting on or after January 1, 2024.

These reports are expected to enhance transparency, accountability, and stakeholder engagement, ensuring that companies clearly communicate their sustainability efforts and commitments.

According to a PAAB, listed entities must prepare and submit sustainability reports in line with Section 399 of Statutory Instrument 134 of 2019, the Zimbabwe Stock Exchange (ZSE) Practice Note 16 and (Victoria Falls Stock Exchange (VFEX) Practice Note 2.

Zimbabwe formally adopted the IFRS Sustainability Disclosure Standards introduced by the International Sustainability Standards Board (ISSB) in November 2022. However, the implementation of IFRS S1 (General Requirements for Disclosure of Sustainability-related Financial Information) and IFRS S2 (Climate-related Disclosures) is currently not mandatory. PAAB has assured stakeholders that a structured implementation roadmap will be provided soon.

The mandatory submission of sustainability reports marks a significant step toward greater corporate transparency and investor confidence.

 As global sustainability concerns rise, local businesses must align with international best practices to remain competitive.

However, while listed companies are required to submit reports, there is no current obligation for independent assurance of the disclosed information.

This raises key concerns about data credibility and reliability. Without external verification, investors and stakeholders may question the accuracy of reported sustainability metrics. As discussions around mandatory assurance gain traction, regulatory bodies may soon push for independent verification to enhance trust and accountability.

To navigate these evolving reporting requirements, listed entities are strongly advised to comply with existing regulations and seek guidance from the regulators.