Are you reporting for a sustainable future?

South African companies are navigating a complex sustainability reporting landscape, marked by diverse frameworks and voluntary practices. In the absence of a legal mandate, reporting varies significantly across sectors. The International Sustainability Standards Board (ISSB) offers a potential solution: a globally consistent baseline for sustainability disclosures. Aligning with these standards could enhance South Africa’s access to international capital, attract foreign investment and drive innovation.

According to the South African findings in PwC's 2024 Voice of the Consumer Survey, a remarkable 93% of consumers said that they are experiencing firsthand the disruptive effects of climate change in their daily lives. This is notably higher than the global average of 85%. Entities therefore have an opportunity to better connect with their eco-conscious consumers by providing information about their sustainability-related initiatives. In doing so, they not only support informed consumer choices but also create value through meaningful transformation.

To better understand current sustainability reporting practices, we conducted a benchmarking exercise on 13 JSE-listed companies across sectors such as banking, mining, insurance, and retail. The findings reveal that while some of these entities started referencing the ISSB standards, none have yet stated full compliance with the requirements. South African companies are entering a pivotal phase in their sustainability reporting journey. With corporate governance within South Africa being synonymous with the King Code, the widespread adoption of the <IR> Framework by listed companies and the use of various sustainability reporting frameworks aligned with or under consideration by the ISSB, South African entities have a strong foundation for the future of sustainability reporting.  This is evident through the observations obtained through the benchmarking exercise. However, reporters do not have to wait for regulation in South Africa before exploring the possible implications of reporting in accordance with the IFRS Sustainability Disclosure Standards or how their existing sustainability reporting can be further enhanced in the absence of mandatory reporting requirements. Sustainability reporting does not have to be seen as a compliance burden, but rather a catalyst for long-term value creation.

South African businesses have a unique opportunity to lead by example, aligning with global standards while addressing local environmental, social and governance realities.  

If you have any questions or would like to discuss the topics explored in the publication, please don’t hesitate to reach out to us.