HARARE – ESG Network Zimbabwe, Zimbabwe’s premier business member association for Sustainability and ESG, has signed a historic Memorandum of Understanding with the internationally acclaimed International Credit Rating Agency, aimed at advancing credible sustainability and ESG implementation in Zimbabwe.
This Memorandum of Understanding (MOU) is made and entered into by and between the Environmental Social Governance Network Zimbabwe (ESGNZ) and the International Credit Rating Agency (ICRA), collectively referred to as “the Parties.” The purpose of this MOU is to establish a collaborative framework between the two institutions in recognition that credit ratings and ESG governance are intrinsically linked and cannot be separated. Both institutions share a common vision of promoting transparency, accountability, sustainability, and strong governance practices within Zimbabwe and the broader African region, with the ultimate goal of augmenting and promoting best practices and the adoption of international standards by businesses in Zimbabwe.
The main objective of this MOU is to establish a framework for collaboration between ESGNZ and ICRA in advancing environmental, social, and governance, financial integrity, and market confidence through the integration of ESG principles with credit rating practices. To facilitate the provision, awareness, and adoption of credit rating services within Zimbabwe’s business and professional ecosystem.
Essentially, ESGNZ shall lead in ESG Training (s) and Reporting, with ICRA completing the loop by leading in ESG Ratings under the collaboration.
Some of the key objective areas of the MOU include: –
- Establish a collaborative framework that advances the adoption of both ESG and credit rating tenets for the Zimbabwean market.
- Promote awareness of the importance and benefits of independent credit ratings and adoption of good governance for both ESGNZ members and ICRA Rating clients, as well as the general private and public entities.
- Collaborated efforts by and between ESGNZ and ICRA in enhancing discipline, governance standards, and market competitiveness.
- To create a seamless flow of critical stages of ESG training, reporting, and Ratings, recognize ESG as a precursor to credit ratings, where sound governance frameworks contribute directly to stronger and more credible ratings.
- To explore and develop joint initiatives, programs, and frameworks that advance both ESG and rating practices. Special attention shall be paid to influencing the Board of Directors, as the custodians of governance for both private and public entities, to adopt credit ratings for board evaluations and the business performance key result area.
- To collectively promote the recognition of credit ratings as a statutory and regulatory requirement for entities operating within Zimbabwe’s financial and corporate sectors.
- To facilitate joint training programs, webinars, research collaborations, and knowledge exchange in the areas of governance, credit ratings, and ESG (Environmental, Social, and Governance) standards, and reporting standards.
- To ensure mutual benefit and knowledge sharing between the two institutions for national and regional capacity development.
- To facilitate a subscriber base (defined in this MOU as a pool of investors/climate funders) to ESG ratings, whether solicited or unsolicited.
The collaboration has far-reaching positive outcomes, with the opportunity to collectively develop an ESG Index supported by credit rating outcomes to enhance disclosure standards within governance frameworks. For more information about the two organisations, kindly get in touch with us at admin@esgnetworkzimbabwe.co.zw, or call us on 0242229123
