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Wednesday, May 22, 2024

Global sustainable accounting standards to boost Zim’s FDIs 

Story by Stanley James, Business Editor

ZIMBABWE is among the top two African economies to have adopted International Sustainable Accounting Standards meant to ensure growth and attract Foreign Direct Investments (FDIs).

Under the plan, Zimbabwean companies are now recording activities that cover the environment in which they operate.

It also emerged at the International Sustainability Reporting Standards meeting in Harare this Friday that Zimbabwe and Nigeria are the top two countries embracing the latest guidelines.

International Financial Reporting Standards Foundation chairperson, Mr. Erkki Liikanen said, ‘‘I am convinced that in the future, the value of a company will be based on how they are handling climate change, the standards, means or practices that investors can assess the performance of the company, in light of how it is dealing with climate change issues for the benefit of long term investments. Basically, Zimbabwe and Nigeria are the first two countries to embrace the initiative.’’

The local accounting fraternity is confident the global sustainable systems will attract more foreign direct investments.

Chartered Accountant, Mr. Tinashe Rwodzi noted, ‘‘These are the best practices aimed at ensuring that the financial statements take into account how companies are also embracing  the need to protect the environments they are operating in, including corporate social responsibility policies.’’

Stanbic Bank chief executive officer Mr. Solomon Nyanhongo said, ‘‘We have embraced the whole issue of sustainability in our operations. We have got standards which we adopted  and we also measure how they are being tailor-made in light of the need to protect the destruction of environments for the benefit of the future generations across the country.’’

Zimbabwe’s business community is also focusing on policies that seek to reduce greenhouse gas emissions, protect natural resources and conserve environments for the benefit of future entrepreneurs.

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