Regulations

King IV Report on Corporate Governance (South Africa)

The King IV Report on Corporate Governance, introduced in South Africa in 2016, is a framework guiding organizations toward ethical, accountable, and inclusive governance practices. King IV emphasizes not just compliance, but the creation of sustainable value for all stakeholders—such as shareholders, employees, communities, and the environment. This makes it a transformative shift from traditional governance, focusing on principles over strict rules, so that organizations can adapt the guidelines to their unique context.

Central to King IV is integrated thinking and reporting, which encourages organizations to consider financial, social, and environmental impacts as part of a connected whole. Instead of viewing these aspects in isolation, companies are urged to integrate them into a single, transparent report. This transparency, a core aspect of King IV, aims to build trust with stakeholders by openly sharing how the organization affects people and the planet.

King IV also highlights stakeholder inclusivity. Unlike models that focus primarily on shareholders, it recognizes the importance of engaging with diverse stakeholder groups and understanding their needs in decision-making processes. This inclusivity supports resilience and helps organizations become more adaptive and responsible.

Botswana Stock Exchange (BSE) ESG Disclosure Guidance

Introduced in 2021, this disclosure is an important regulatory tool that enables listed companies in Botswana to report on critical Environmental, Social, and Governance (ESG) factors in line with global best practices. It provides a structured framework for companies to disclose material ESG information—such as emissions levels, social impact, and corporate governance practices—that are crucial for transparent and responsible operations.

This guidance is directed primarily at companies listed on the BSE and aligns with globally recognized standards, such as the Global Reporting Initiative (GRI) and the UN Sustainable Development Goals (SDGs). The BSE’s goal is to bring Botswana in line with the international market’s demand for sustainability and transparency, which has become increasingly important. Currently, over 80% of institutional investors worldwide incorporate ESG factors in their investment decisions. By equipping companies with the means to meet these demands, the BSE’s guidance opens Botswana’s listed companies to broader pools of capital, attracting responsible investors who prioritize sustainable, ethical, and well-governed companies.

Since its launch, the impact of the BSE ESG Disclosure Guidance has been tangible. By 2023, about half of BSE-listed companies had begun reporting on specific ESG factors, marking a shift towards greater transparency and accountability. This transparency builds trust with investors and the public, creating a foundation for long-term, sustainable growth in Botswana’s capital markets. As these companies identify and manage ESG risks more effectively, they strengthen their ability to withstand economic shocks, address societal expectations, and improve operational efficiency, ultimately enhancing the resilience of Botswana’s economy.

The BSE guidance plays a critical role in promoting ESG standards that will shape the country’s future. By requiring clear and comprehensive ESG disclosures, the BSE empowers Botswana’s companies to manage risks, contribute to global sustainability objectives, and improve their competitive position on the international stage. The guidance is expected to drive positive environmental, social, and governance practices across the nation’s corporate landscape, leading to a more sustainable economy and a stronger, more trustworthy capital market.

Nigeria – SEC Corporate Governance Code

This code was designed to address the need for stronger governance practices within Nigerian companies. As businesses and investors increasingly recognize the importance of good governance, the Code serves as a benchmark for ensuring companies operate with greater transparency, fairness, and accountability. By focusing on sound board structures, robust risk management, and clear reporting practices, the SEC aims to align Nigeria's corporate landscape with international governance standards.

The Code encourages companies to integrate Environmental, Social, and Governance (ESG) considerations into their operations, recognizing that these factors are now key drivers of business sustainability. Transparency in both financial and non-financial disclosures is emphasized to help investors assess the full spectrum of risks and opportunities. Over time, the SEC Corporate Governance Code is helping to establish a more trustworthy, resilient market in Nigeria, one where companies are better equipped to navigate the complexities of today’s global business environment.

• Since its adoption in 2018, more than 90% of listed companies on the Nigerian Stock Exchange have improved their governance frameworks in line with the Code.

• The SEC has committed to annually monitoring compliance, ensuring that corporate governance continues to evolve and stay relevant in an increasingly ESG-conscious investment world.

Ghana – ESG Guidance for Listed Companies

Ghana’s ESG Guidance for Listed Companies aims to support businesses in incorporating sustainable practices into their operations, ensuring that they meet both local and international expectations. The guidance, which was rolled out in 2020, provides a clear framework for companies listed on the Ghana Stock Exchange (GSE) to manage and disclose their Environmental, Social, and Governance (ESG) impacts. This initiative seeks to align Ghanaian companies with the growing global emphasis on responsible business practices, which have become essential for attracting both domestic and international investment.

The ESG guidance encourages companies to adopt strategies that address climate change, social inclusion, and governance accountability. Companies are urged to report transparently on these areas to help investors and stakeholders understand how ESG risks and opportunities are being managed. By embedding these principles into their core operations, Ghana’s listed companies can increase their competitiveness in global markets, ensuring that they are seen as responsible, forward-thinking organizations.

The introduction of this guidance marks a significant step in Ghana’s efforts to strengthen its financial markets and align them with global sustainability goals. As investors increasingly prioritize companies that demonstrate a commitment to long-term value creation, Ghana’s listed companies that adhere to ESG principles are likely to see improved access to capital and enhanced reputations.

Since the guidance’s release, a growing number of GSE-listed companies have begun incorporating ESG factors into their reporting, helping to improve the overall sustainability of the market.

The guidance is expected to play a key role in advancing Ghana’s sustainable development agenda, supporting the nation’s goal to attract responsible investment and build a more resilient economy.

The Ghana Stock Exchange (GSE) has started encouraging listed companies to adopt ESG reporting practices. While not yet mandatory, these guidelines help companies understand the benefits of ESG transparency and sustainability.