NEW: Zimbabwe, Nigeria lead in sustainability disclosure standards

Online Reporter 

Zimbabwe and Nigeria are the African countries leading the way in the adoption of International Financial Reporting Standards (IFRS) Sustainability Disclosure Standards.

In essence, Sustainability Disclosure Standards are a set of comprehensive global baseline of sustainability-related disclosure standards that provide investors and other capital market participants with information about companies’ sustainability-related risks and opportunities.

In November last year, Government and the Public Accountants and Auditors Board of Zimbabwe (PAAB) committed to be the first-movers in adopting the disclosure standards.

IFRS Foundation chairperson Mr Erkki Liikanen, who was in the country last week, said adoption of the standards, which are expected to be finalised soon, will help attract more foreign direct investment.

‘‘I am convinced that in future, the value of a company will be based on how they are handling climate change, the standards, means or practices that investors can assess the performance of the company, in light of how it is dealing with climate change issues for the benefit of long-term investments.”

Mr Liikanen was speaking as guest of honour at a breakfast meeting on international sustainability reporting standards, which was hosted by Stanbic Bank Zimbabwe.

After Zimbabwe made the commitment to adopt the standards, Finance and Economic Development Minister Professor Mthuli Ncube said at the time: “This has the potential to attract more investment and boost private-sector development in Zimbabwe in line with the National Development Strategy (NDS1) macroeconomic framework premised on programmes aimed at achieving economic transformation through the creation of a thriving private sector-led, open and competitive economy.”

Speaking at the engagement on Friday, Stanbic Bank chief executive officer Mr Solomon Nyanhongo said: “As part of an initiative that has been driven by our principal regulator, the Reserve Bank of Zimbabwe, we are pleased to advise that we are currently participating in the Sustainability Standards and Certification Initiative (SSCI) by the European Organisation for Sustainable Development.”