I have observed broadly two types of organisations when it comes to regulation and standards:
- Those that see them as a bottleneck, slowing innovation and progress.
- Those that see them as an opportunity, a framework to build trust, resilience and long-term value.
The difference often lies in mindset. Compliance can feel restrictive, but when embraced, it becomes a catalyst for credibility, sustainability and competitive advantage.
This shift in mindset is becoming increasingly relevant as ESG reporting moves closer to mainstream corporate reporting across Africa.
With the rise of the ISSB's IFRS S1 and S2, sustainability information is moving closer to mainstream corporate reporting. The focus is shifting from what companies do to the material sustainability-related risks and opportunities that could affect their business, including how these could affect a company's cash flows, access to finance and cost of capital over the short, medium and long term.
Across Africa, adoption is progressing at different speeds. Nigeria, for example, has moved from four entities voluntarily applying IFRS S1 and S2 in 2024 to more than 50 organisations progressing towards adoption by July 2026, ahead of the mandatory reporting timeline of 2028.
But the biggest change may not be the report itself. It is what companies need to build behind it. A figure such as a 15% reduction in emissions cannot simply appear in a report. Companies need to know where the data came from, who owns it, how it was calculated and whether it can be supported by underlying records. The same applies to employee data, workplace incidents, energy, waste and supply-chain risks. Credible ESG reporting therefore depends on clear ownership, consistent methodologies, documented processes and collaboration across Finance, HR, Facilities, Procurement, Risk and other functions.
So, What Should Companies Do Now?
Start before reporting becomes mandatory.
- Understand the requirements.
- Identify material ESG risks and opportunities.
- Map the data needed.
- Establish ownership and strengthen controls.
Because the real test is no longer whether a company can produce an ESG report. It is whether the company can stand behind it.
The future of ESG reporting in Africa will not simply be about reporting sustainability. It will be about building businesses capable of accounting for it.