COMPANIES should make Environmental Social Governance (ESG) a priority in their operational strategies, as the concept is now a critical factor in the decision-making of discerningglobal investors.
Minister of Environment, Climate, and Wildlife Dr Sithembiso Nyoni, emphasised thepoint during her speech at the 8th Zimbabwe National ESG and Responsible Business Achievements Awards 2024 on Friday. Accordingto Dr Nyoni, investors are now meticulously evaluating companies' ESG criteria beforecommitting their financial resources to any potential investment opportunities.
This year's awards ceremony was themed "Creating a Better Future: ESG and CSR Awardsfor Sustainable Business Practices", highlighting the importance ofsustainability in today's businesses.
The event brought together a diverse group of companies and individuals from various regions of Zimbabwe, to celebrate and recognise the remarkable achievements of entities that have shown exceptional commitment to integrating ESG practices into their operations.
The awards specifically honoured individuals and organisations that have successfully balanced economic growth with social responsibility and environmental stewardship, showcasing the integral role of sustainable practices in modern business.
In her address, Minister Nyoni said companies that proactively address these issues would enhance their appeal to both domestic and international investors,who are increasingly looking to put their money into businesses that prioritise sustainability and social responsibility.
"I am elated that the business community has not waited for the Government to enact ESG legislation but have taken it upon themselves to be responsible corporate citizens. I applaud your action in this regard.
"This is a reminder that as wework towards achieving our national vision, we should not forget theenvironment we live in, and the communities we live with. Your commitment to sustainability, social responsibility, and good governance is,indeed, inspiring.
I am proud of the progress you have made in promoting CSR and ESG practices in Zimbabwe," said Minister Nyoni.
"Thisgrowing emphasis on ESG matches a broader global recognition that corporate social responsibility (CSR) is not just a moral obligation but also a strategic imperative.
Companies are now expected to embrace ethical, and sustainable practices while alsoensuring they deliver reasonable returns to their investors and comply withlocal laws and regulations.
ESG Network Zimbabwe executive director Mr Willard Razawo echoed Minister Nyoni's sentiments, calling for enhanced collaboration among all sectors--Government,business, civil society, and individual citizens in pursuing the ESG goals.
He emphasised the need to create an enabling environment that supports the implementation of effective ESG practices across the country.
"As we look to the future, I am excited about the prospects for ESG in Zimbabwe.
We have a unique opportunity to leverage ESG principles to drive sustainable development, create jobs, and improve the quality of life for all Zimbabweans.
"To achieve this vision, we must continue to work together with the Government, business,civil society, and individuals to create an enabling environment that supportsESG practices," said Mr Razawo.
Among the notable achievers at the event were ZB Financial Holdings chief executive officer Mr Shepherd Fungura who was honoured with the prestigious ESG Leader of the Year Award.
Sign up for free AllAfrica Newsletters
Get the latest in African news delivered straight to your inbox
Several other individuals were also acknowledged for their exemplary stewardship in promotingESG principles, including Mr Sam Matsekete, the chif executive officer of Old Mutual Investment Group, Mr Dillesh Nguwaya of Geo Pomona Waste Management, Mr William Gambiza, the CEO of Hwange Colliery Company Limited and Mr Evans Musaraof Kwekwe Polytechnic College.
ESG is still an emerging concept that encourages businesses to adopt environmentally-friendly policies.
This approach contrasts sharply with traditional linear production and consumptionmodels, which often prioritise short-term gains over long-term sustainability.
The emphasis is now on reusing, refurbishing, and recycling existing materials andproducts as much as possible, thus fostering a more sustainable and responsible approach to business practices moving forward.
