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FINANCIAL services institution, Stanbic Bank Zimbabwe Limited, is championing implementation of International Sustainability Reporting Standards in the country as part of commitment to drive economic growth in a meaningful and sustainable manner.
The award-winning bank is spearheading discussions towards early adoption of the International Sustainability Reporting Standards (ISRS), due for implementation beginning January next year.
The Standard Bank Group subsidiary recently hosted a stakeholder breakfast meeting on the subject and hosted Dr Erkki Liikanen, who chairs Trustees of IFRS Foundation, which is preparing the global sustainability standards.
Zimbabwe has already endorsed the early adoption of the IFRS Sustainability Disclosure Standards to be issued by the International Sustainability Standards Board (ISSB).
The Treasury issued the proclamation in November 2022, endorsing a resolution of the Public Auditors and Accountants Board of Zimbabwe (PAAB) for the Sustainability Standards to be adopted earlier than the prescribed effective date of 1 January 2024.
This is in line with PAAB’s statutory mandate to prescribe auditing standards, accounting standards and accounting reporting standards for use in Zimbabwe, including the application of internationally recognised, auditing and accounting reporting standards.
Zimbabwe, Nigeria and Egypt will be the only African countries to adopt the intended implementation of the Sustainability Disclosure Standards (SDSs) earlier than the prescribed effective date of January 2024.
Standard Bank has said early adoption has the potential to attract more investment and boost private sector development in Zimbabwe in line with the National Development Strategy (NDS1) macroeconomic framework.
The national blueprint is premised on programmes aimed at achieving economic growth through the creation of a thriving private sector-led open and competitive economy.
Stanbic Bank chief executive, Mr Solomon Nyanhongo, said the breakfast meeting discussed the details of early adoption of the SDSs such as the progress made, challenges ahead and necessary support for
Zimbabwe to achieve intended objectives.
He said the SDSs were important to the bank given that its adoption will be a key enabler for both the Government and PAAB’s quest to meet the needs of capital markets and other stakeholders, through enhanced transparency, accountability, efficiency and comparability in business.
“The early adoption of the International Sustainability Disclosure Standards by Zimbabwe is an exciting development, as it puts us on the map as a nation committed to adhering to global business standards,” said Mr Nyanhongo.
“This early adoption will require all key stakeholders to be involved and present in all discussions relating thereto, to make sure that we do it right.”
He said Stanbic Bank is galvanised by its statement of intent — “Zimbabwe is our home, we drive her growth” — to embrace policies such as the early adoption of International Sustainability Standards to contribute to national and regional development.
To that end Stanbic Bank’s strategy includes a key pillar and objective, which is the pursuit of environmental, social and governance standards in terms of principles of sustainability.
For the past six years, Stanbic Bank has been providing a Report to Society, which is issued within its annual financial report, and looks forward to scaling up financial inclusion initiatives, corporate social responsibility, sustainable and growth-based lending into the development of Zimbabwean infrastructure.
The bank is already participating in the Sustainability Standards and Certification Initiative by the European Organisation for Sustainable Development.
During the stakeholder meeting, Dr Liikanen, who is former governor of the Bank of Finland and IFRS chairman of the Trustees, commended Zimbabwe for being an early adopter of the sustainability standards.
He said the need for global sustainability standards could not be over-emphasised hence the adoption of these by all key global stakeholders with endorsement cemented at COP26 in Glasgow in 2021.
The implementation of sustainability standards will see companies publish their sustainability statements at the same time as they publish their financial statements.
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