As Environmental, Social, and Governance (ESG) considerations become increasingly important for businesses in Zimbabwe, effective ESG governance is crucial for companies to succeed. Leading companies in Zimbabwe are demonstrating that strong ESG governance is not only the right thing to do, but also a key driver of long-term success. In this article, we’ll explore the lessons from leading companies in Zimbabwe on effective ESG governance.
Lesson 1: Establish a Clear ESG Vision and Strategy
Old Mutual Zimbabwe’s Sustainability Strategy: Old Mutual Zimbabwe has established a clear sustainability strategy that outlines its commitment to ESG principles.
Key takeaways:
- Define ESG goals and objectives: Develop a clear understanding of what ESG means for your organization and establish specific goals and objectives.
- Integrate ESG into business operations: Ensure that ESG considerations are integrated into business decision-making and operations.
- Communicate ESG vision and strategy: Communicate the ESG vision and strategy to stakeholders, including employees, investors, and customers.
Lesson 2: Ensure Board-Level Oversight
Econet Wireless Zimbabwe’s Board-Level ESG Committee: Econet Wireless Zimbabwe has established a dedicated ESG committee at the board level to oversee the company’s ESG performance.
Key takeaways:
Ensure board-level oversight of ESG issues to demonstrate commitment and accountability, and to ensure that ESG considerations are integrated into business decision-making.
- Establish a dedicated ESG committee: Consider establishing a dedicated ESG committee at the board level to oversee ESG performance.
- Provide ESG training for directors: Ensure that directors receive regular ESG training and updates to stay current with emerging trends and best practices.
- Hold directors accountable for ESG performance: Ensure that directors are held accountable for ESG performance and that ESG considerations are integrated into executive compensation.
Lesson 3: Engage Stakeholders
Delta Corporation’s Stakeholder Engagement Program: Delta Corporation has established a stakeholder engagement program that includes regular dialogue with investors, customers, employees, and communities.
Key takeaways:
- Develop a stakeholder engagement strategy: Develop a strategy for engaging with stakeholders, including investors, customers, employees, and communities.
- Provide transparent and timely disclosure: Provide transparent and timely disclosure of ESG performance and progress toward goals.
- Seek feedback and input from stakeholders: Seek feedback and input from stakeholders to ensure that ESG considerations are responsive to their needs and concerns.
Lesson 4: Embed ESG into Business Operations
Zimplats’ ESG Management System: Zimplats has developed an ESG management system that integrates ESG considerations into its business operations, including environmental management, social responsibility, and governance.
Key takeaways:
Embed ESG into business operations to drive long-term sustainability and success, and to ensure that ESG considerations are integrated into business decision-making.
1. Integrate ESG into risk management: Ensure that ESG considerations are integrated into risk management processes and procedures.
2. Develop ESG metrics and reporting: Develop metrics and reporting processes to track ESG performance and progress toward goals.
3. Provide ESG training for employees: Ensure that employees receive regular ESG training and updates to stay current with emerging trends and best practices.
Lesson 5: Measure and Report ESG Performance
CBZ Holdings’ ESG Report: CBZ Holdings publishes an annual ESG report that provides stakeholders with information on its ESG performance, including progress against its ESG goals and targets.
Key takeaways:
- Use recognized ESG frameworks and standards: Use recognized ESG frameworks and standards, such as the Global Reporting Initiative (GRI) or the Sustainability Accounting Standards Board (SASB).
- Provide transparent and timely disclosure: Provide transparent and timely disclosure of ESG performance and progress toward goals.
- Seek external assurance and verification: Consider seeking external assurance and verification of ESG performance and reporting.
Conclusion
Effective ESG governance is critical for companies in Zimbabwe to succeed in today’s business environment. By establishing a clear ESG vision and strategy, ensuring board-level oversight, engaging stakeholders, embedding ESG into business operations, and measuring and reporting ESG performance, companies in Zimbabwe can demonstrate their commitment to ESG and drive long-term sustainability and success.
Call to Action
We invite you to share your thoughts on effective ESG governance in Zimbabwe. What lessons can be learned from leading companies in Zimbabwe? What challenges do companies face in implementing effective ESG governance in Zimbabwe? Join the conversation on social media using the hashtag #ESGGovernanceZW.
Additional Resources
- International Finance Corporation (IFC) – Zimbabwe ESG Country Review: https://www.ifc.org/content/dam/ifc/doc/2024/zimbabwe-country-private-sector-diagnostic-summary.pdf
- Zimbabwe Stock Exchange (ZSE) – ESG Reporting Guidelines: https://www.zse.co.zw/wp-content/uploads/2023/11/Practice-Note-16-Sustainability-Disclosure-Checklist.pdf
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