Regulators enforce mandatory sustainability reporting for listed companies

SAMANTHA MADE
The Public Accountants and Auditors Board (PAAB), the Zimbabwe Stock Exchange (ZSE), and the Victoria Falls Stock Exchange (VFEX) have jointly directed all listed companies to submit sustainability reports for financial years commencing on or after January 1, 2024.
This landmark move aims to enhance corporate transparency and environmental accountability.
The directive aligns Zimbabwe’s corporate reporting standards with global best practices in Environmental, Social, and Governance (ESG) disclosures.
The mandate is rooted in Statutory Instrument 134 of 2019, specifically sections 399 to 404, which outline requirements for sustainability information and disclosure. To support compliance, the ZSE issued Practice Note 16 on November 13, 2023, providing a comprehensive sustainability disclosure checklist in line with international standards.
“In accordance with the regulatory framework governing listed entities in Zimbabwe, the PAAB, ZSE, and VFEX inform all listed entities that the submission of sustainability reports for financial years commencing on or after January 1, 2024, is mandatory. This requirement is outlined in Statutory Instrument 134 of 2019 (Securities and Exchange (Zimbabwe Stock Exchange Listings Requirements) Rules, 2019) and further reinforced by ZSE Practice Note 16 and VFEX Practice Note 2. Listed entities must prepare and submit their sustainability reports in compliance with section 399 of Statutory Instrument 134 of 2019, ZSE Practice Note 16, and VFEX Practice Note 2. These reports should promote transparency, accountability, and effective communication of sustainability-related information to stakeholders.”
The PAAB is also working on an implementation roadmap for the International Financial Reporting Standards (IFRS) Sustainability Disclosure Standards, specifically IFRS S1 and IFRS S2, which have been adopted but are not yet mandatory.
“Following Zimbabwe’s adoption of the IFRS Sustainability Disclosure Standards issued by the International Sustainability Standards Board (ISSB) in November 2022, listed entities are advised that the implementation of IFRS S1 (General Requirements for Disclosure of Sustainability-related Financial Information) and IFRS S2 (Climate-related Disclosures) is not yet mandatory. The PAAB is currently developing an implementation roadmap for these Sustainability Disclosure Standards, with further guidance to be provided in due course. While the submission of sustainability reports is mandatory for all listed entities, assurance of these reports is not currently required. All listed companies are urged to ensure compliance with these requirements and to engage with relevant regulatory authorities for any necessary clarifications.”