CIPC: Establishment of the National Adoption Readiness Working Group (ARWG) on Sustainability Reporting

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CIPC: Establishment of the National Adoption Readiness Working Group (ARWG) on Sustainability Reporting

• 13 August 2026
• Sustainability Reporting
• South African Accounting Academy

Summary:
The Commissioner of the Companies and Intellectual Property Commission (CIPC), supported by the Department of Trade, Industry and Competition (the dtic), has established the National Adoption Readiness Working Group (ARWG) on Sustainability Reporting.

Article:

The ARWG has been established to assist the CIPC, in its capacity as an implementing agency of policy under the auspices of the dtic, to facilitate alignment between existing corporate reporting frameworks and the ISSB standards to deepen regulatory coherence across financial, nonfinancial, and sustainability disclosures and collectively recommend a structured, practical approach for implementation that enhances market confidence and comparability of sustainability data. 

The activities of the ARWG will culminate in a consolidated draft national adoption roadmap that will serve as the pedestal for seamless implementation of policy that will manifest itself through legislation — a function which resides under and will be administered through the Regulation Branch of the dtic.

Having recognised:

• the increasing importance of sustainability-related financial disclosures in promoting transparency, investor confidence, market integrity and sustainable economic development;
• the publication of the International Sustainability Standards Board (ISSB) Sustainability Disclosure Standards, namely IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information and IFRS S2 Climate-related Disclosures, as the emerging global baseline for sustainability-related financial reporting;
• the recommendations of the International Organization of Securities Commissions (IOSCO) encouraging jurisdictions to consider the adoption or other use of the ISSB Standards;
• South Africa’s commitment to strengthening corporate governance, attract sustainable finance, enhance industrial competitiveness and foster climate resilience;
• the need for coordinated national consultation across government, regulators, business, professional bodies, investors, preparers, assurance providers, academia and civil society; as guided by the National Policy Development Framework; and

• the importance of ensuring that any future adoption of sustainability reporting requirements is proportionate, evidence-based, digitally enabled and aligned with South Africa’s constitutional, legislative and developmental priorities.

  
  Click here to download the 4-page Notice 37 of 2026:

• https://www.cipc.co.za/wp-content/uploads/2026/08/Customer-Notice-37-of-2026.pdf 

Relevance to Auditors, Independent Reviewers & Accountants:

• The Companies Act is yet another piece of legislation that your clients must comply with, and which you must assess compliance with.  If they don’t comply with the relevant laws and regulations, you have certain reporting obligations in terms of NOCLAR (NOn-Compliance with Laws And Regulations) – this could include reporting to management, qualifying your audit opinion, reporting a Reportable Irregularity, etc.
• As an auditor, independent reviewer and accountant, you also need to monitor your client’s compliance with the Companies Act and all relevant notices/enforcements/practice notes issued by CIPC as the regulator.
• Where you perform these compliance tasks on behalf of your client, you need to ensure that you comply with all relevant notices/enforcements/practice notes issued by CIPC as the regulator.

Relevance to Your clients:

• An entity (company or close corporation) has a duty to comply with the Companies Act, and all relevant notices/enforcements/practice notes issued by CIPC as the regulator.

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