Sustainable value creation: From corporate reporting to making a real impact

THE last two decades have seen an explosion of corporate reporting. Annual reports, sustainability disclosures, ESG scorecards and integrated reports now fill board packs and investor portals. For many organisations, these reports have become the visible evidence of governance. Yet the question remains: are these documents proof of genuine sustainable value creation, or simply outputs that reassure stakeholders without changing the underlying reality?

- Ngobani Mzizi

King IV reminds us that the purpose of governance is outcomes. Ethical culture, good performance, effective control and legitimacy cannot be delivered through documents alone.

Principle 3 emphasises responsible corporate citizenship, and Principle 4 highlights the need for organisations to create value in a sustainable manner.

Reporting is important, but it is only one part of the accountability cycle. True governance requires that boards ensure value is actually created and preserved, and where value is eroded, that this happens responsibly, across the six capitals: financial, manufactured, intellectual, human, social and relationship, and natural.

ISO 37000 echoes this global perspective. It defines governance as the system by which organisations are directed, overseen and held accountable for achieving their purpose, generating positive outcomes and creating sustainable value over the long term.

Sustainable value creation is, therefore, not an add-on, but the very reason governance exists. It extends beyond financial returns to include the well-being of people, the protection of natural resources and the trust that underpins legitimacy.

The risk of mistaking reporting for reality is not theoretical. South Africa’s corporate history offers clear lessons.

Tongaat Hulett once produced integrated reports that highlighted commitments to sustainability and good governance. Yet behind these outputs, financial manipulation and weak controls were eroding value.

When the truth surfaced, the company lost credibility, its share price collapsed and stakeholders suffered significant harm. This is a stark reminder that reports can be polished, but governance is judged by outcomes. Reporting without real impact becomes an exercise in compliance, not stewardship.