HARARE – Listed companies in Zimbabwe are now required to submit mandatory sustainability reports for financial years commencing on or after January 1, 2024, according to a joint regulatory statement issued by the Public Accountants and Auditors Board (PAAB), the Zimbabwe Stock Exchange (ZSE) and the Victoria Falls Stock Exchange (VFEX).
However, the implementation of the International Financial Reporting Standards (IFRS) Sustainability Disclosure Standards, specifically IFRS S1 and IFRS S2, has been deferred.
The regulatory bodies announced on February 12, 2025, that the requirement for sustainability reporting is in line with Statutory Instrument 134 of 2019 (Securities and Exchange (Zimbabwe Stock Exchange Listings Requirements) Rules, 2019), ZSE Practice Note 16, and VFEX Practice Note 2.
The regulations mandate listed entities to prepare and submit sustainability reports that ensure transparency, accountability, and effective communication of sustainability-related information to stakeholders, as outlined in section 399 of Statutory Instrument 134 of 2019.
“Listed entities should prepare and submit their sustainability reports based on section 399 of Statutory Instrument 134 of 2019, ZSE Practice Note 16 and VFEX Practice Note 2.
“The sustainability reports should ensure transparency, accountability, and the effective communication of sustainability-related information to stakeholders,” the regulators stated.
Despite Zimbabwe’s adoption of the IFRS Sustainability Disclosure Standards in November 2022, the PAAB clarified that the implementation of IFRS S1 (General Requirements for Disclosure of Sustainability-related Financial Information) and IFRS S2 (Climate-related Disclosures) is not mandatory at this time.
The PAAB is currently developing an implementation roadmap for these standards, with further guidance to be provided in the future.
The joint statement further stated that while the submission of sustainability reports is mandatory for all listed entities, the assurance of these reports is not currently required.
The PAAB, ZSE, and VFEX urged all listed entities to comply with the new requirements and to seek clarification from the relevant regulatory authorities as needed.
This move, according to the regulators, aims to enhance corporate transparency and accountability regarding environmental, social and governance (ESG) factors within the Zimbabwean market.
This is a great step towards transparency and accountability in Zimbabwe’s corporate sector. Mandatory sustainability reporting will enhance investor confidence and promote responsible business practices.
Esg sustainability reporting the only way to go.
What does it mean to the Zimbabwean citizenry…