Media plays a key role in highlighting ESG

THE growing focus on Environmental, Social and Governance (ESG) considerations within companies, particularly mining firms, has attracted significant attention in recent years driven by increasing pressure from both internal and external stakeholders to improve environmental sustainability and uphold socially responsible conduct.

Sustainability and ESG issues are rapidly becoming the standard for various global operations.

This concept is closely tied to the pillars of the United Nations (UN) Sustainable Development Goals, which aim to enhance the approach to ESG matters in institutions worldwide.

Many purchasers now factor in environmental, governance, and social aspects when determining product pricing.

This is prompting businesses, Zimbabwe included, to integrate sustainability matters into their operations.

Companies are facing growing demands to demonstrate a coherent sustainability strategy which is seamlessly integrated into their business model and effectively implemented. Additionally, they are increasingly required to demonstrate and be accountable for the impact of their operations on communities and the environment.

ESG experts assert that this mandate is not seen as a divergence from profitability, but rather as an inherent element of the business strategy, capable of future-proofing an organisation and cultivating new pathways for growth and value creation.

The ESG framework serves to aid stakeholders in understanding how an organisation manages risks and leverages opportunities related to sustainability.

The adoption of ESG principles is gaining momentum in Zimbabwe, driven by regulatory mandates and the heightened interest of various stakeholders, including investors, employees, suppliers, and customers.

ESG standards have become legally mandatory for a diverse array of companies.

The shift is attributed to the proliferation of legal frameworks and regulations, including the new Companies and Other Business Entities Act (24:31), the Public Entities Corporate Governance Act (10:31), the Securities and Exchange (Zimbabwe Stock Exchange Listing Requirements) Rules Statutory Instrument 134 of 2019, the 2023 ZSE’s Environmental, Social and Governance (ESG) disclosure metrics, the Public Procurement and Disposal of Assets Act, and the sustainability disclosure standards of the International Financial Reporting Standards (IFRS) as adopted by the Public Accountants and Auditors Board of Zimbabwe (PAAB).

The increasing demand for ESG-related data within the mining sector necessitates that financial institutions and project funders assimilate ESG risks into their existing risk management frameworks and strategies.

Consequently, the media assumes a pivotal role in emphasising the significance of ESG considerations within this context.

At a media training workshop on responsible mining held in Kadoma recently, Dr David Mupamhadzi, an Environmental Social Governance (ESG) specialist at the Zimbabwe Environmental Law Association (Zela), underscored the crucial role of journalists in advocating for responsible mining practices within communities.

“It is imperative to hold companies accountable for their influence on the environment, and journalists are uniquely positioned to fulfil this pivotal role in disclosing both positive and negative impacts on nations.

“Companies should be held to account for their impacts on the universe and journalists are privileged to play this key role to reveal the impacts to the nations, either positive or negative,” he said.

“There is a real problem of green-washing, and again journalists need to interrogate the purported initiatives on ESG by companies. Journalists also play a key role in supporting communities to highlight the negative impacts of mining activities, and this can at times push companies to respond and seek remediation.”
However, for journalists to be effective in their roles, it’s important for them to understand the concepts of ESG, what to expect from companies and the shortfalls, he stressed.

“Being knowledgeable with current trends calls for reading. Journalists cannot afford to be on the side-lines but must be well-read and interact with key personnel in mining houses,” he said.

Harare Polytechnic media lecturer Mr Ishmael Tagurenyika weighed in saying it is crucial for the media to also focus on mining firms’ financial reports.

He said the reports are embedded with key details that pertain to sustainable mining. As the media, it is crucial to collaborate with government, experts and mining firms in reporting as that will enhance the quality of articles for the betterment of the sector

“The media should thoroughly examine finances to detect possible tax evasion by some firms. Also, the media should pay attention to data-driven journalism to enhance reporting. By having partnerships, journalists will be equipped with interpreting the financials of mining firms,” said Mr Tagurenyika.

Communities are also increasingly calling for responsible business practices from companies especially in key sectors such as mining where the operations of companies have a high risk of adverse impact on the environment.

Responsible business in communities by companies for example will reduce waste and pollution, gas emissions, and minimise natural resources depletion. All this will have a positive impact on communities and future generations.

Dr Mupamhadzi, however, said one of the main challenges for communities is how to measure and assess the impact of business operations at the community level.
“How do you evaluate, and make companies account for their actions and activities in communities?”

Organisations employ diverse methodologies and standards to articulate the effects of their operations on the economy, environment, and communities.
“The Global Reporting Initiative (GRI) embodies one such method, comprising a modular framework of interconnected standards, “ he said.

GRI allows organisations to publicly report the impacts of their activities in a structured way that is transparent to stakeholders and other interested parties.
Sustainable development, characterised by its capacity to fulfil present needs without compromising the prospects of future generations to meet their own requirements, stands as a pivotal objective.

Dr Mupamhadzi noted that the objective of sustainability reporting using the GRI standards is to provide transparency on how an organisation contributes or aims to contribute to sustainable development.

In its integrated annual report, which covers the financial year from July 1, 2023, to June 30, 2024, Zimplats Holdings Limited, the largest platinum producer in the country, emphasised its commitment to transparency, accountability, and reporting.

The company aims to adapt to climate risks and create value while building resilient communities in the Mhondoro-Ngezi and Chegutu districts.

These principles, the firm says, work harmoniously in a dynamic manner, providing a foundation for informed decision-making and sincere engagement.

On transparency, it says it reports in-depth on sustainability initiatives, targets, strategies, and details about actions, progress, challenges and opportunities.

“This enables us to harness feedback from our stakeholders, which comes in handy in identifying gaps, and learning from others,” reads part of the report.

It notes that accountability is vital in building trust between stakeholders and the business, which has a legitimate responsibility towards the former, including operating within the remit of the law, industry standards and regulations.

By reporting on ESG performance, the firm says it is helping stakeholders to make informed decisions.

“These reports provide necessary disclosures to meet regulatory and legislative requirements. We also go a step further in demonstrating our commitment to ESG through voluntary reporting. Competent consultants review our reports to ensure alignment with reporting standards, while independent auditors assure conformity with the reporting standards, in our case, the GRI.”

Zimplats adds that it always seeks to contribute towards positive economic impacts that foster economic growth, community development, and sustainable development.

“We try to ensure there is a balance between our financial objectives and sustainability goals. We seek to make an impact through the direct economic value that we generate and distribute via our value chain.”