adminKudakwashe Pembere Business Reporter
GOVERNMENT is currently in consultations with stakeholders to consider the implementation of sustainability reporting by listed companies and other organisations in Zimbabwe.
Sustainability reporting is not just report generation of collected data; it is a method to internalise and improve an organisation’s commitment to sustainable development in a way that can be demonstrated to both internal and external stakeholders.
Speaking at the Green Business Awards held last week, Environment, Water and Climate Deputy Minister Engineer Simon Musanhu said organisations must ensure a robust system for sustainability management.
“Sustainability reporting has risen in many countries around the world.”
“If Zimbabwe is to attract sustainable capital inflows, the Zimbabwe Stock Exchange needs to consider sustainability reporting and environmental accounting disclosures as a listing requirement in line with regional markets like the Johannesburg Stock Exchange,” he said.
Eng Musanhu also encouraged organisations to implement environmental accounting and sustainability reporting.
“Currently, many accountants and their organisations in Zimbabwe are preoccupied with the ecstasy of money matters and profits while pretending to ignore the call for environmental stewardship,” he added.
The deputy minister also said that the harmony between men and nature is of paramount importance as the success of the 21st century business is no longer measured in terms of the millions made in profit but the positive contributions made to the environment as the millions are made.
Analysts say that sustainability disclosure can serve as a differentiator in competitive industries and foster investor confidence, trust and employee loyalty.
They often consider a company’s sustainability disclosures in their assessment of management quality and efficiency, and reporting may provide firms better access to capital.
Sustainability reporting requires companies to gather information about processes and impacts that they may not have measured before.
This new data, in addition to creating greater transparency about firm performance, can provide firms with knowledge necessary to reduce their use of natural resources, increase efficiency and improve their operational performance.
Better still, sustainability reporting can prepare firms to avoid or mitigate environmental and social risks that might have material financial impacts on their business while delivering better business, social, environmental and financial value (creating a virtuous circle).
For reporting to be as useful as possible for managers, executives, analysts, shareholders and stakeholders, a unified standard that allows reports to be quickly assessed, fairly judged and simply compared is a critical asset.
As firms worldwide have embraced sustainability reporting, the most widely adopted framework has been the Global Reporting Initiative (GRI) Sustainability Reporting Framework.
Meanwhile, at least 21 organisations and two individuals received awards for their contribution in promoting and implementing environmentally friendly methods in their operations.
Some of the winners include cement manufacturer Lafarge, which walked away with two awards in the green manufacturer and green supply chain categories.
Funeral services provider Nyaradzo Holdings grabbed the overall award while Green Fuel’s ethanol project received the award for the Green Product of the Year.
United Bulawayo Hospitals scooped the Green Health Award while Green Leisure Award went to Executive Golf Solutions.
How Mine took the Green Community Award with Old Mutual walking away as the Green Financial Institution and National Waste Collection grabbing the Green Waste to Business Award.
The Green Building Award went to the Eastgate Building while Practical Action won the Green Energy Award. Lonhro Logistics scooped the Green Farming Award, BAT Travel and Tours was the Green Travel Initiatives winner and Plastix Incorporated was the Green Entrepreneur of the Year.
Online Reporter