The Role of Accountants in Driving ESG Performance

By Richard Ndebele

Building on my previous article, The Transformative Power of Sustainability Reporting in Africa, sustainability is no longer a peripheral issue but a key driver of business resilience and economic growth.

In that article, I highlighted how businesses across Africa are leveraging sustainability reporting to attract investment, enhance corporate reputation, and comply with evolving regulations.

However, for ESG (Environmental, Social, and Governance) to be truly impactful, a critical player must step up – the accountant.

The global business landscape is evolving, and ESG factors have become critical in shaping corporate strategy, investment decisions, and regulatory compliance. Accountants, traditionally seen as financial stewards, are now at the forefront of driving ESG performance by ensuring transparency, accountability, and sustainable financial management. Their role has expanded beyond financial reporting to include ESG integration, making them key players in fostering long-term value creation.

The Expanding Role of Accountants in ESG

• Ensuring Accurate and Reliable ESG Reporting

Investors, regulators, and stakeholders demand reliable ESG data to make informed decisions. Accountants play a crucial role in standardizing ESG reporting by applying globally recognized frameworks such as the Global Reporting Initiative (GRI), the Task Force on Climate-related Financial Disclosures (TCFD), and the International Sustainability Standards Board (ISSB). Their expertise in data integrity, internal controls, and financial audits makes them essential in validating ESG disclosures.

A good example is Safaricom, one of Africa’s leading telecom companies, which has embraced ESG reporting by integrating the GRI Standards and aligning its strategies with the UN Sustainable Development Goals (SDGs). This approach has boosted investor confidence and positioned the company as a sustainability leader. Accountants played a key role in collecting and analysing ESG data, ensuring accurate and transparent disclosures.

• Integrating ESG into Corporate Strategy

ESG is not just a compliance exercise; it is a strategic imperative. Accountants help businesses embed ESG considerations into risk management, budgeting, and investment decisions. By assessing climate risks, social impact, and governance structures, they ensure that ESG factors align with long-term business sustainability.

In Zimbabwe, Delta Corporation, a leading beverages company, has successfully integrated water conservation, energy efficiency, and responsible sourcing into its business model. Accountants within the company ensure that these sustainability initiatives are well-documented and incorporated into financial planning, leading to a strong brand reputation and long-term cost savings.

• Risk Management and Compliance

With increasing regulations on carbon emissions, corporate social responsibility, and ethical governance, accountants play a vital role in ensuring compliance. They help organizations identify ESG risks, implement mitigation strategies, and ensure adherence to local and international sustainability regulations. Their ability to quantify financial and non-financial risks allows companies to manage ESG-related liabilities effectively.

• Driving ESG-Linked Financial Decisions

Sustainable finance is gaining momentum, with investors prioritizing businesses that integrate ESG into their financial models. Accountants facilitate green financing, sustainability-linked bonds, and ESG-aligned budgeting. They provide insights into the financial impact of ESG initiatives, ensuring that businesses achieve a balance between profitability and sustainability.

One of the best illustrations of this is Nedbank in South Africa, a pioneer in green finance. The bank issued Africa’s first-ever green bond in 2019 to fund renewable energy projects. Accountants were instrumental in structuring the bond and ensuring transparency in ESG-related financial reporting, demonstrating how finance professionals can drive sustainable investment.

• Enhancing Corporate Governance and Ethical Leadership

Governance is a cornerstone of ESG, and accountants play a critical role in upholding ethical financial practices, enforcing internal controls, and fostering transparency. Their role in board advisory, risk management, and whistleblowing mechanisms helps strengthen corporate governance, reducing cases of financial mismanagement and unethical business conduct.

The Future of Accountants in ESG

As ESG continues to shape the future of business, accountants must upskill to remain relevant. This includes training in sustainability reporting, data analytics, and regulatory compliance. Professional bodies must also play a role in equipping accountants with ESG competencies through certifications, workshops, and continuous professional development programs.

The role of accountants in driving ESG performance is indispensable. Their expertise in financial reporting, compliance, and risk management uniquely positions them to lead the ESG agenda. As businesses and investors increasingly prioritize sustainability, accountants must step up as ESG champions, ensuring that organizations navigate the sustainability landscape with integrity and accountability.

Just as we saw in my previous article on sustainability reporting, businesses that proactively embrace ESG principles will secure a competitive advantage in the evolving African market. The journey has begun—are Zimbabwean businesses ready to take the next step? How is your organization integrating ESG into its financial and governance strategies?

Richard Ndebele is the Manager: Technical, Research and Quality Assurance at Chartered Governance and Accountancy Institute in Zimbabwe. He can be contacted on rndebele@cgizim.org