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Is Your Business Investor Ready?

Environmental, Social and Governance Obligations: The Future of Corporate

Compliance and how to make sure your company remains ahead.

By Refilwe G Dingake

Introduction

Across the globe, there has been a to ensure participants in the

call to intergrate Environmental, mining sector of Botswana are
Social and Governance (ESG) ESG cognisant thus attracting
considerations into investment investors subject to international
choices. Numerous nations have ESG standards.
heeded to this call by enacting
In today’s investment landscape,
legislation and regulations which
responsible investing means the
echo the concerns of an ESG-
deliberate incorporation ESG
conscious market. As a result,
considerations. Hence, it becomes
businesses and organisations
important for your business or
worldwide have been compelled to
organisation to mirror this
follow suit and critically consider
trajectory.
ESGs matters. An example of the
rise of ESG issue awareness in ESG reporting

Botswana is the review of the Globally, there has been an

Mines and Minerals Act [Cap increase in litigation around ESG
44:01] issues; this shows an increase in
| Palesa
Malcom T. Gobhoza - LLB (UB) (Arb) (Diploma in M. Katse - LLB (UB) | Tendai S. Goto - BA LLB (Rhodes) | Faith Chizondo – LLB (UB)
Finance) (CAMBRIDGE)

Dr. Jimcall Pfumorodze - LLB (honours) (UZ); LLM (UWC) (University of Amsterdam); International Trade, Investment &
Business Law; LLD (UP); | - Legal Consultant
 in Botswana it is never too early to
develop good practice.
public scrutiny of company’s
environmental and societal Navigating Your Path to
impacts. Consequently, the Compliance
implementation of ESG reporting
In navigating the ESG landscape,
will enable investors to asses and
there are a few practical steps you
compare businesses in terms of
can take to ensure your business
their climate related risks, thereby
remains compliant.
influencing investment choices.
1. Stay current with reporting
Moemedi Moyo, the Sector Lead in
requirements.
Mining & Natural Resources at
Rand Merchant Bank (RMB) Emerging ESG obligations, created

Botswana, in an interview with through legislation or regulations

Botswana Guardian highlights a are an increasingly complex area

survey conducted by RMB in 2020, for businesses and organisations

involving engagment with debt and to navigate and stay aligned with.

equity investors both within Africa However, it is crucial for you to

and across the globe. The survey have a comprehensive
brought light to a significant understanding of the reporting
disconnect between ESG reporting requirements currently applicable
and traditional financial reporting. to your business or organization.
Investors now leverage a
Consider ESG training and
company’s adherence to the
awareness raising initiatives in
recommendations of The Task
your business or organisation.
Force on Climate Related Financial
Evaluate your existing reporting
Disclosures (TCFDs) as a decisive
practices, identify gaps in your
factor in their investment
current reporting framework and
decisions.
work to bridge these discrepancies.
This shows the value of proactively
2. Voluntary reporting
embracing ESG reporting
practices, even if ESG reporting is Although Botswana presently lacks
currently not a statutory obligation statutory obligations for ESG
reporting, there are compelling
reasons for businesses and
3. Set ESG goals
organisations to voluntarily report
on their ESG developments and Having considered the above, it is

endeavors. There are a multitude prudent for businesses and

of advantages that are associated organisations to develop a strategy

with voluntary reporting by towards an improved ESG rating.

businesses or organisations, which Many businesses and organisation

extend beyond compliance with globally are adopting ambitious

legal mandates. ESG goals including achieving net-

zero carbon emissions. Not only
Notably, international investors
are such goals an effective
place considerable emphasis on a
marketing tool that appeals to the
company's ESG rating when
growing number of conscious
evaluating potential investments.
consumers, such goals appeal to
By voluntarily reporting on ESG
an increasingly discerning investor
practices, companies enhance their
demanding robust ESG strategies.
ESG rating, making them more
appealing to international Importance of ESG’s in

investors. Voluntary reporting also Botswana

signifies a commitment to healthy In the context of a nation heavily

governance structures within a reliant on its natural resources,
business or organisation, thus Botswana's economic well-being is
positioning the business or intrinsically linked to its
organisation favorably for investor environment. Climate change
consideration. poses a grave threat to the nation's

Beyond attracting investment, economic stability. It's imperative

anticipating forthcoming statutory for both governmental and

ESG reporting obligations, which corporate entities within Botswana

are gaining momentum globally, to join forces, motivating a

underscores the organization's collective drive towards nurturing

preparedness for evolving a sustainable and ESG-friendly

compliance requirements. economy.

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legal advice with respect to the Disclaimer: This article is for
topics covered in this article, information purposes only and
please feel free to contact us at should not be taken as legal advice