Eswatini Stock Exchange ESG Reporting Guide
This guide aims to assist listed companies on Eswatini Stock Exchange (ESE) to address Environmental, Social and Governance (ESG) issues in their reporting to meet the requirements of institutional investors and other stakeholders (including government, lenders, academia, customers, employees, regulators and others) for material ESG information.
Eswatini Stock Exchange (ESE) through this guide will encourage listed companies to disclose a set of ESG indicators and Metrics - in alignment with the recommendations of the Sustainable Stock Exchanges (SSE) Initiative and the World Federation of Exchanges (WFE). This guide is intended for all companies listed on the ESE and its implementation is on a voluntary basis. Nevertheless, despite the universal approach embodied by this guide, companies should bear in mind that the substance of their disclosures will depend on their industry or sector and on an analysis of the materiality of the information to the company and/or its specific stakeholders. `
The term ESG encompasses the broad set of environmental, social and corporate governance considerations that play a role in an organisation’s ability to execute and track their performance, business strategy and create value. It is important to note that although this document mainly uses the term "ESG" because it is commonly used among investors, the term "sustainability" can be used interchangeably because it is more common and used frequently in companies. Although these are nuances, but for the purpose of this guide, both terms are considered to cover a wide range of environmental, social and governance considerations that affect the company’s ability to execute its business strategy and create value.
ESG reporting has become essential, not only for stakeholders seeking performance indicators, but also for companies trying to increase operational efficiency and decrease exposure to risks. Although ESG factors are sometimes referred to as "non-financial" or "extra-financial", the way companies manage them will undoubtedly have financial consequences. They can affect access to capital, cost savings and productivity, risk management, revenue growth and market access, brand value and reputation, license to operate, human capital, employee retention and recruitment as well as company value as an acquisition target. ESG describes three categories of factors that may affect an organisation’s performance, and therefore, its value. ESG criteria are best suited to effectively assess an organisation’s resilience, adaptability, long-term sustainability and capacity for growth.
Developed with technical support from
The Eswatini Stock Exchange would like to thank the African Securities Exchanges Association (ASEA), GRI (Global Reporting Initiative) and SNG Grant Thornton for their technical support to the development of this ESG Reporting Guide.
Supported by
We also greatly appreciate the support provided by GRI through funding from the Government of Sweden, who financed the development of this publication.
Disclaimer: Responsibility for the content lies entirely with the creator of this publication. The Government of Sweden does not necessarily share the expressed views and interpretations.