Why ESG is becoming a market access requirement

By Richard Ndebele
Last week, I discussed Zimbabwe’s proposed Environmental Management Bill and its potential implications for environmental governance. While the Bill focuses on strengthening environmental accountability and sustainability,
it also highlights a broader shift taking place in the business environment. Increasingly, environmental, social and governance (ESG) considerations are no longer confined to regulatory compliance. They are becoming critical determinants of market access, investment attractiveness and long-term business competitiveness.
For Zimbabwean companies, this shift should not be ignored. ESG is no longer merely about corporate citizenship or reputation management. It is increasingly becoming a business imperative.
The growing importance of ESG is driven by changes in global trade, investment and regulatory frameworks. Investors are paying closer attention to how companies manage environmental risks, labour relations, governance structures and stakeholder engagement. International buyers are demanding greater transparency from suppliers, while financial institutions are increasingly incorporating sustainability considerations into lending and investment decisions.
In many respects, ESG is becoming the new language of business credibility.
Zimbabwe has already begun responding to this reality. In 2025, the Public Accountants and Auditors Board (PAAB), the Zimbabwe Stock Exchange (ZSE) and the Victoria Falls Stock Exchange (VFEX) made sustainability reporting mandatory for listed companies. This development reflects growing recognition that investors and stakeholders increasingly require information not only about financial performance, but also about how businesses manage environmental, social and governance risks.
This should not be viewed merely as a compliance requirement. Rather, it signals a broader shift in how business performance is being assessed. Increasingly, profitability alone is no longer enough. Investors, customers and regulators want assurance that business success is sustainable over the long term.
The implications are particularly significant for Zimbabwe’s export-oriented sectors.
Mining, one of the country’s largest foreign currency earners, is facing growing scrutiny from investors, commodity buyers and financial institutions. Responsible sourcing, environmental stewardship, community engagement and governance practices are becoming important considerations in investment decisions. Mining companies that demonstrate strong ESG performance are likely to enjoy greater investor confidence and improved access to international capital.
Agriculture faces similar pressures. International markets are demanding greater traceability, sustainable production methods and responsible labour practices. Exporters who fail to meet these expectations risk losing access to valuable markets, regardless of the quality of their products.
This is not merely a theoretical concern. A 2025 Morgan Stanley survey found that 84 percent of institutional investors expect sustainable investments to increase as a proportion of their portfolios over the next two years.
Closer to home, several Zimbabwean companies have already recognised this reality. Delta Corporation, for example, has integrated sustainability objectives into its business strategy through initiatives focused on water stewardship, climate action, sustainable agriculture and circular packaging.
As Zimbabwe strengthens its environmental governance framework through proposed legislative reforms such as the Environmental Management Bill, businesses should recognise that the conversation is evolving beyond compliance. The real issue is competitiveness.
International markets are changing. Investors are changing. Consumers are changing. Supply chains are changing. Companies that embrace ESG early will be better positioned to attract capital, secure market opportunities and build resilience. Those that view sustainability as a regulatory burden may find themselves struggling to compete in increasingly demanding markets.
The question is no longer whether ESG matters. The real question is whether Zimbabwean businesses are prepared for a future in which sustainability, accountability and good governance increasingly determine who gains access to markets—and who gets left behind.
Ndebele is Manager: Technical, Research and Quality Assurance at the Chartered Governance and Accountancy Institute in Zimbabwe (CGI Zimbabwe) and serves as Country Champion for the Pan African Federation of Accountants (PAFA) Sustainability Centre of Excellence. He writes on governance, sustainability and public financial management, with a focus on strengthening decision-making and institutional performance in African economies.
Contact: rndebele@cgizim.org