Risk Insights ESG GPS Sustainable Newsletter
DEAR VALUED RISK INSIGHTS™/ ESG GPS™ SUBSCRIBER,
Welcome to the May edition of Risk Insights’ (“RI”) Monthly Sustainable Newsletter! As we progress through 2025, we’re excited to share the latest developments in our sustainability journey. This month, we continue to drive impactful initiatives advancing Sustainability across Africa and beyond, showcasing key milestones, insights, and opportunities for meaningful change. We also have included a special Risk Article section with contributions from thought leaders.
In this edition, we reflect on May’s key highlights, impactful events, and thought leadership contributions, including:
- Risk Article Section in the newsletter. In this edition Anushka Bogdanov, Chair and Founder of Risk Insights, offers a perspective in her article, 'The Role of the JSE and ESG Disclosure Practices,' exploring how South Africa’s capital markets are evolving toward sustainable governance and reporting standards.
- ESG Matters with Risk Insights podcast episode shares, Truth about ESG for 2025 and Beyond Greenwashing Geopolitics and Africa’s Rise: This episode unpacks the global fragmentation of ESG and its implications for sustainable finance, from Europe’s regulatory clampdown and the U.S.'s politicized ESG backlash to Africa’s growing strategic opportunity. As greenwashing gives way to accountability and data-driven risk management, the conversation highlights how Africa vulnerable yet resource-rich can lead through resilience, responsible business, and transition finance. Beyond Greenwashing Geopolitics and Africa’s Rise.
- The African Securities Exchanges Association (ASEA) in collaboration with Risk Insights will host the Inaugural Pan-Africa ESG Awards at the ASEA Annual Conference 2025 in Kigali, Rwanda. This event provides Africa the platform to race competitively for Impact Capital for the continent.
- Risk Insights (RI) was honoured to participate in the Arab Federation of Capital Markets (AFCM) Annual Conference 2025, and we formalised our partnership with a Memorandum of Understanding (MoU) with AFCM to progress ESG for the Gulf and North African region to drive sustainability.
- Risk Insights shared our insights at the Institute of Chartered Accountants of Zimbabwe (ICAZ) webinar on Tools and Technologies for Data Management, held on 30 May 2025.
- Kunaal Kalyan, our Executive Director, was honoured to share insights at the Africa Financial Inclusion Summit & Expo in Johannesburg on 29–30 May 2025.
- Looking ahead, Risk Insights is moderating a panel and as an ESG Researcher our CEO Andrey Bogdanov will share his research insights on the relationship of Gender on the Board and ESG Disclosure at the Botswana International University of Science and Technology Research Conference (BUIRC) 2025, taking place on 12–13 June.
Stay connected as we continue driving ESG excellence, risk intelligence, and sustainable impact across Africa and beyond.
The Truth About ESG for 2025 and Beyond: Greenwashing, Geopolitics, and Africa's Rise
In this episode of the ESG Matters with Risk Insights, Anushka unpacks the fragmentation of ESG across global markets and what it signals for the future of sustainable finance. From Europe’s tightening regulations and the U.S.’s politicized ESG backlash to Africa’s emerging strategic advantage, the conversation explores how these shifts are reshaping the rules of engagement. As the era of unchecked greenwashing comes to an end, we dive into ESG’s transformation into a risk-based, data-driven discipline one where accountability, assurance, and credible reporting will define success. With Africa disproportionately vulnerable to global volatility yet rich in opportunity, the discussion turns to how the continent can claim its place by leading with resilience, responsible business, and transition finance. Discover how Risk Insights and the ESG GPS platform are equipping Africa’s capital markets with the tools to navigate this evolving landscape.
African Securities Exchanges Association (ASEA) and Risk Insights (RI) debut the Inaugural Pan-Africa ESG Awards
The African Securities Exchanges Association (ASEA) in collaboration with Risk Insights to host the Inaugural Pan-Africa ESG Awards at the ASEA Annual Conference 2025 in Kigali, Rwanda in November 2025. This milestone event will celebrate ESG and sustainability leadership across the continent, bringing together industry leaders, regulators, and market participants to recognise outstanding achievements in responsible business and non-financial disclosure and plays a role for the attraction of impact capital for the continent. Stay tuned for more updates.
Risk Insights and the Arab Federation of Capital Markets sign MoU at the AFCM Annual Conference in May 2025
Risk Insights (RI) was honoured to be a keynote address the Arab Federation of Capital Markets (AFCM) Annual Conference 2025, where we also proudly signed a Memorandum of Understanding (MoU) with the AFCM, marking a significant step towards advancing ESG integration in the region. Anushka Bogdanov shared her expertise on the evolving role of ESG in capital markets, contributing to meaningful conversations on sustainable finance and AI-driven risk intelligence. The event provided a valuable platform to engage with industry leaders, financial market experts, and thought partners committed to building a more resilient, responsible, and sustainable future. We look forward to continuing these important discussions and driving innovative ESG solutions in collaboration with our partners.
Risk Insights Shared insights at the Institute of Chartered Accountants of Zimbabwe's webinar on tools and technologies for data management
Risk Insights is shared valuable insights at the Institute of Chartered Accountants of Zimbabwe (ICAZ) webinar on Tools and Technologies for Data Management. Held on 30 May 2025, the session explored how innovative data management solutions can enhance decision-making, fuel business growth, and help organisations future-proof in an increasingly data-driven world. This session will provide insights to the Zimbabwe accountants as the country is starting to prepare for it Net Zero targets. It was a fantastic opportunity to engage with finance professionals, industry leaders, and technology experts, highlighting the power of data in driving smarter, more sustainable business outcomes.
Risk Insights shared insights at the 2nd Annual Africa Financial Inclusion Summit & Expo
Kunaal Kalyan, our Executive Director, participated as a speaker at the timely event, Africa Financial Inclusion Summit held in Johannesburg, South Africa, on 29–30 May 2025. This flagship event brought together key stakeholders from across the financial services landscape including regulators, policymakers, fintech innovators, and industry leaders to address persistent barriers to financial inclusion on the continent. Held under the theme “Accelerating Financial Inclusion for Socio-Economic Development in Africa,” the summit focused on critical topics such as digital transformation, financial literacy, inclusive credit systems, and the integration of sustainable finance principles.
Risk Insights to Moderate a Panel and Present Research at the Botho University International Research Conference (BUIRC) 2025
Risk Insights Chair and CEO are humbled respectively to be invited as a moderator and Research presented at the Botho University international Research Conference (BUIRC) 2025, taking place from 12–13 June 2025. Under the theme “Building Sustainable Futures through Research, Innovations, Strategies, and Partnerships,” this influential event will bring together global researchers, academics, industry experts, and policymakers to explore solutions for Africa’s sustainable future. Andrey Bogdanov will present his research on Gender on the Boards and the influence of this on ESG disclosure for South African issuers.
Risk Insights ESG Risk Articles and Research
The Role of the JSE and ESG Disclosure Practices
Author: Anushka Bogdanov, Chair and Founder, Risk Insight
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Introduction In South Africa, the JSE plays a central role in shaping corporate governance and disclosure practices, particularly through its Listings Requirements. These requirements govern new listings, ongoing disclosure obligations, and corporate actions, thereby promoting transparency, investor protection, and accountability in the public interest (JSE, 2022). Structurally, the Listings Requirements consist of two main elements: (1) the General Principles, which provide overarching guidance on disclosure and corporate behaviour; and (2) the Main Body, which comprises specific sections, schedules, and practice notes that derive interpretive authority from the General Principles. The JSE’s influence extends beyond financial disclosures. It has been instrumental in institutionalising sustainability and ESG reporting practices in South Africa. Its pioneering Socially Responsible Investment (SRI) Index, launched in 2004, received international recognition for promoting responsible investing and sustainability-oriented performance metrics. More significantly, the JSE mandates Integrated Reporting (IR) for listed firms an approach that seeks to connect financial and non-financial performance through a unified narrative. This Chapter provides a brief overview of the state of ESG disclosure and practices at the JSE. ESG Disclosure Trends in South Africa Over the past decade, South Africa has demonstrated a growing commitment to ESG disclosure, influenced by both domestic governance imperatives and international regulatory trends. The JSE has been instrumental in promoting this agenda by mandating integrated reporting for listed companies and encouraging alignment with global ESG standards. While integrated reporting became a listing requirement in 2010, the nature and depth of ESG disclosures in South Africa remain largely discretionary and vary significantly across industries and firms (Pitrakkos and Maroun, 2020). This variability reflects both the strengths and limitations of South Africa’s current ESG landscape: it is progressive in governance structure but inconsistent in implementation. The influence of voluntary frameworks such as the King IV Code (IoDSA, 2016) has promoted a values-based approach to corporate governance, encouraging firms to embed sustainability into strategy, risk, and performance discussions. King IV places particular emphasis on integrated thinking, stakeholder inclusivity, and sustainable value creation, making it a central reference for ESG disclosures. Nonetheless, despite strong uptake in principle, the lack of binding national ESG reporting legislation combined with differences in reporting quality and assurance has led to uneven adoption and challenges in comparability and accountability (Herbert and Graham, 2021). Recent developments, however, signal a shift toward convergence with international reporting norms. The release of the JSE Sustainability Disclosure Guidance in June 2022 marked a significant step in standardising ESG practices locally. This guidance references internationally accepted disclosure frameworks such as GRI, TCFD, IFRS S1 and S2, and the Integrated Reporting Framework, offering South African firms a harmonised approach to non-financial reporting (JSE, 2022). Although the guidance remains voluntary, it reflects a broader institutional movement toward ESG standardisation in response to investor demand, reputational risk management, and regulatory foresight. Emerging trends also suggest a growing recognition of double materiality, which combines financial materiality (how ESG issues affect enterprise value) and impact materiality (how corporate activities affect society and the environment). While financial materiality has traditionally dominated ESG disclosures particularly among companies seeking international capital the rise of the European Union’s Corporate Sustainability Reporting Directive (CSRD) and the Global Reporting Initiative (GRI) has catalysed interest in broader, stakeholder-oriented impact measures (De Cristofaro and Gulluscio, 2023). In South Africa, this creates a tension between globally influenced investor expectations and the country’s pressing developmental priorities, such as inequality, access to basic services, and environmental degradation.
Exhibit 1 – (De Cristofaro & Gulluscio, 2023 Pg 4). Furthermore, ESG disclosure practices in South Africa increasingly reflect industry and company specific characteristics. Large firms, particularly those with international listings or significant foreign investor exposure, tend to produce more extensive and standardised ESG reports (Maroun, 2020). In contrast, small to medium-sized enterprises (SMEs) and companies focused primarily on the domestic market often limit ESG disclosure to narrative form or provide minimal sustainability-related information. This divergence is exacerbated by resource constraints, the absence of sector-specific guidance, and a lack of technical capacity, especially among non-financial firms. Academic studies have also identified persistent gaps in ESG assurance and third-party verification. According to Solomon and Maroun (2012), many South African companies adopt ESG disclosure for reputational or legitimacy purposes rather than to communicate actual environmental or social performance improvements. |
However, full convergence with international norms will require greater policy clarity, improved regulatory enforcement, and increased capacity-building for firms, especially those outside the top tier of the JSE. As noted by Joshi and Vu Huynh (2015), IR improves capital market efficiency by aligning management’s communication on long-term value creation with investor assessments of enterprise value. Despite these advancements, ESG reporting in South Africa remains largely voluntary, and companies retain significant discretion over both the extent and quality of their disclosures. Hummel and Schlick (2016) caution that in the absence of binding reporting obligations, sustainability disclosures may lack comparability and decision-usefulness. The integration of narrative reporting with ESG metrics as outlined in the JSE’s 2022 Guidance marks a significant shift toward holistic sustainability reporting, encompassing both quantitative indicators and
Exhibit 2 – The JSE Sustainability Narrative Disclosures and Sustainability Metrics (JSE, 2022) References
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