ESG Strategies: Why Businesses Can't Afford To Wait

Environmental, social, and governance (ESG) is more than a regulatory framework. It's a strategic tool for innovation, increased capital, and long-term success, and a critical response to growing environmental and societal needs.

- ADVERTORIAL BY SNG GRANT THORNTON | SPONSORED

Having surpassed $41 trillion in 2022, global Environmental, Social, and Governance (ESG) assets are projected to exceed $50 trillion by 2025, according to data from Bloomberg.

In South Africa, Sumaya Jaffer, Associate Director and head of its Sustainability Advisory at SNG Grant Thornton, is at the forefront of ESG adoption, having developed a strong understanding of the significant role that advisory firms play in helping organizations thrive in a new, greener era.

A Foundational Tool

While ESG adoption is progressing globally, the reality is that it's not moving rapidly enough to meet the United Nations-agreed-upon sustainable development goals.

One consistent challenge associated with the lack of adoption is the misunderstanding of what ESG truly means.

Too often, it is reduced to a checklist of compliance requirements or an isolated sustainability initiative, rather than being recognized as a comprehensive business framework that connects environmental stewardship, social impact, and strong governance practices to business performance.

Now, while global ESG standards may be developing slowly, the same cannot be said for South Africa, where the picture is more encouraging.

"From an African perspective, South Africa is at the forefront," Jaffer shares, adding that a large part of this lies in the country's legislation and guidelines, which have all been centralized around ESG.

"We are way ahead of most countries about our corporate governance framework," she adds, referencing the King IV (and the upcoming King V) and regulatory mechanisms such as NEMA and BBBEE.

Unfortunately, despite these innovations, South Africa still lacks a consistent regulatory mandate for ESG disclosures, which can hamper accountability and standardization.