ESG for greater transparency, sustainability

About the World Bank Group

The World bank group is a unique global partnership/multilateral organisation of 189 member countries, staff from more than 170 countries in more than 130 locations.

it is made up of five institutions working for sustainable solutions particularly in developing countries. The five institutions are iFC, ibrd, miga, iCsid and ida).

Zimbabwe has been a member of the bank since 1980.

The World bank works to accelerate inclusive and sustainable economic growth by: helping countries invest more effectively in people and fostering resilience to global shocks and threats.

The bank has twin goals of: eradicating extreme poverty and ensuring shared prosperity.

The World Bank in Zimbabwe

environmental,

Key definitions:

sustainable development: “development that meets the needs of the present without compromising the ability of future generations to meet their own needs.”

The (1987), was also adopted by the un in their 2022 and other reports.

sustainable development: securing the longterm future of the planet, its people and its resources, ensuring social inclusion, and limiting the economic/social burdens on future generations. The Wb esF.

environmental, social and governance (esg): is an approach to evaluating the extent to which an organisation works on behalf of goals that go beyond profit maximisation.

esg transparency: describes the disclosure/ reporting of esg relevant metrics by company, industry, sector, country and others.

At a glance

some country examples in esg requirements:

increasingly, regulations at the national level require disclosure of esg information. india

The securities regulator requires the 500 largest listed companies to include a business responsibility report in their annual Financial report.

germany says 30% board to be female by law. peru in 2015, the securities market regulator issued a resolution requiring public companies to produce an esg report together with their annual report.

many stock exchanges now require sustainability. These include the london stock exchange, the Johannesburg securities exchange, dow Jones, nasdaq, Hong Kong and others.

Bloomberg and gender equity index

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The issuer must disclose its sustainability policy, including mitigation of risks, sustainability performance data and other material information which deepens stakeholders’ understanding of corporate performance.

The issuer should provide a balanced and objective view of their performance by including both positive and negative impacts on environment and society, how it relates to its stakeholders and contribute to sustainable development.

Companies and Business Entities Act

For the purpose of subsection (4), every director shall have regard to, among other things:

(a) the long-term consequences of any decision; (b) the interests of the company’s employees; (c) the need to foster the company’s relationships with suppliers, customers and others;

(d) the impact of the company’s operations on the community and the environment;

Code on Corporate Governance

The rate of natural resources depletion and environmental degradation is affecting environmental sustainability which further impoverishes the vulnerable groups.

if changing climatic conditions continue, traditional agricultural systems will become increasingly unsustainable therefore, environmental protection will be prioritised during the nds1 strategy period. The main objectives under national outcome of a protected environment are to:

(i) increase the areas of wetlands sustainably managed from 701 100 hectares in 2020 to 1 051 650 hectares by 2025;

(ii) reduce area burnt from 1 100 000 in 2020 to 6 000 by 2025; and

(iii) increase mined areas rehabilitated from 2 500 hectares in 2020 to 10 000hectares by 2025.

peCg aCt (2018) (section 315 -318): requires use of global initiative reporting (gri)

Integrated, Sustainability Reporting

integrated reporting incorporates a company's strategy, governance, financial performance and future outlook in one report.

The report should also contain environmental, social and governance issues “which impact on the company’s operations. The integrated report should be guided by the requirements of the global reporting initiative's international integrated reporting Council (iirC) as published from time to time, and any other reputable international reporting framework.