JSE Sustainability disclosure Guidance

04 July 2022
Accounting
South African Accounting Academy

The real work will lie in entities operationalising sustainability into its day-to-day activities and its strategy, in order to create a more sustainable society that will then be reported on. Therefore, the ultimate objective is not disclosure, but rather a more sustainable corporate ecosystem.

In line with the King IV Code, the JSE’s Sustainability Disclosure Guidance aims to improve the quality and availability of information both for investors – focusing on the sustainability-related risks and opportunities that affect the entity’s financial performance (the ‘outside-in’ perspective) – as well as for stakeholders more broadly, covering disclosure on the reporting entity’s significant impacts on the economy, society, and the environment (‘inside-out’).

The JSE Sustainability Disclosure Guidance is not intended to replace any of these global initiatives, but instead seeks to help companies navigate this very dynamic landscape of reporting standards, while also providing for the South African business context, legislative requirements, and specific socio-economic and environmental challenges.

An important aim of this Guidance is to chart a path through the complexity, identifying those elements that may reasonably be standardised and reducing the potential for duplicative reporting requirements. The guidance seeks to assist reporting entities, investors, and other stakeholders by identifying decision-useful metrics that are globally aligned – facilitating access to global markets – as well as being locally relevant.

Click here to download the Guidance document:

https://www.jse.co.za/sites/default/files/media/documents/JSE%20Sustainability%20Disclosure%20Guidance%20June%202022.pdf

Relevance to Auditors, Independent Reviewers & Accountants:

Your relevant clients should take heed of guidance published by the JSE as a regulator.
This guide provides insight into the type of information that should be disclosed from both a quantitative and qualitative perspective.

Relevance to Your clients:

Globally and locally, companies are feeling increased pressure to improve their performance and disclosure on environmental, social and governance (ESG) and climate-related issues, and to demonstrate leadership in addressing social and environmental challenges. Increasing investor interest in ESG disclosure.
This guide provides insight into the type of information that should be disclosed from both a quantitative and qualitative perspective.

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