eBusiness Weekly
Martin Kadzere
A Zimbabwe business group is lobbying the local stock exchange to shake up listing rules to force companies to introduce environment sustainability reporting in line with global trends.
Tawanda Muzamwese, executive director of Business Council for Sustainable Development Zimbabwe (BCSDZ), said apart from lobbying the Zimbabwe Stock Exchange, the practice of sustainability reporting and disclosures should also extend beyond listed entities.
The BCSDZ is a business grouping of 80 leading companies promoting awareness, knowledge and practical expertise in sustainable development in business.
Many stock markets around the world are increasingly including sustainability as a listing requirement. Investors are also asking serious questions of how sustainable business practices of prospective companies requiring investment are being managed.
Muzamwese said to attract significant Foreign Direct Investment, corporates must take sustainability seriously and demonstrate tangible initiatives in the dimension of the Triple Bottom Line also known as the People Planet and Profit
The triple bottom line is a concept which broadens a business’ focus on the financial bottom line to include social and environmental considerations.
A triple bottom line measures a company’s degree of social responsibility, its economic value and its environmental impact.
Multi-prolonged benefits
“In light of this realisation it is necessary that Zimbabwe Stock Exchange firms up on sustainability of listed companies in line with the global trends,” Muzamwese said.
“The practice of sustainability reporting and disclosures should extend beyond listed companies to varying sizes and sectors of companies. The benefits will be multi-pronged for the economy, society and environment.”
Muzamwese said sustainable business practices in the modern economy provided an opportunity for global relevance, market penetration and investor confidence.
Furthermore, supply chain pressures were making it impossible for companies that are not concerned about resource efficiency to do business.
Consumers are now demanding that firms show evidence of caring for the environment, promoting safe workplaces and eliminating child labour.
“It’s essential that companies realise that taking no action is expensive as the future may bring significant fines, closures, loss of markets and a damage to the corporate image.
“In the new green revolution, companies with unsustainable practices will find it more difficult to trade,” said Muzamwese.
He said Zimbabwe was also concerned about sustainability as it was faced with several challenges ranging from climate change, water pollution, land degradation and unsustainable usage of chemicals.
Call for energy savings
As a signatory of the Paris Agreement, Zimbabwe formulated its Nationally Determined Contribution (NDC). According to the Zimbabwe’s NDC, the country aims to reduce carbon emissions by 33 percent by the year 2030 with a specific focus on the energy sector.
“In order for this target to be achieved, business shall have a key role to play by implementing sustainability measures such as industrial energy efficiency, fuel switching, process optimisation and adoption of renewable energy for productive use.
“Through the measures implemented by industrial firms, there would be massive savings in energy and these will be coupled with reduced emissions and higher profitability,” said Muzamwese.
The BCSDZ was previously known as the Environmental Forum of Zimbabwe.
It was formed 25 years ago by a group of leading businesses in Zimbabwe who shared common concerns over environmental issues and encourage commitment by business to the phased implementation of environmental management programmes as well as assisting in enhancing appropriate knowledge.
The founding members’ companies have continued to be actively involved while others have joined.
Some of the members include Delta, Larfage-Holcim, Unilever, Schweppes, Tongaat,, Chemplex Corporation and Turnall.
While the original focus of the association was on environmental management, in subsequent years it steadily broadened its agenda in line with international thinking to encompass sustainable development, involving the three interlinked pillars of economic growth, ecological balance and social progress.
The BCSDZ has six technical committees on climate change and emissions, energy, legislation, water, waste and sustainability reporting.
