HOW DO INVESTORS MEASURE THEIR TRUE ESG IMPACT?
By Sharon Mdaka
FINANCE •
Despite the recent regulatory omnibus, with the European Union( EU) voting in favour of scaling back and simplifying the Corporate Sustainability Reporting Directive( CSRD) and growing climate scepticism among some governments, sustainability initiatives remain a top five priority for 23 % of executives surveyed, says Forvis Mazars partner and head of sustainability, Bongiwe Mbunge( BM), in conversation with African Mining, Incorporating Mining Mirror writer Sharon Mdaka( SM).
SM: How have investor expectations for ESG evidence changed over the last 12 – 24 months and what do you expect to be the non-negotiables for investors in 2026?
BM: The Forvis Mazars Growing Global: Harnessing the Power of Reporting and Data Insights report indicates that, for over a decade, reporting on non-financial issues has demonstrated that climate change, resource scarcity, environmental destruction, human rights and equality have real financial impacts on operational costs, capital raising ability, brand perception and licence to operate.
Moving into 2026, the non-negotiables will centre on integrated financial and non-financial reporting that demonstrates tangible business impact, with investors increasingly requiring transparent data on governance, sustainability key performance indicators( KPIs), sourcing, human rights, anti-bribery and corruption laws and equitable supply chains, particularly for companies seeking public entity or listed company funding.
However, the revision of the CSRD Omnibus has lowered the market threshold for disclosure, requiring companies with 1 000 employees( previously 250) and annual turnovers of EUR450-million( both EU and non-EU) to comply with the directive. The decision, which came sooner than expected, was prompted by the change of leadership in the US and the pressure the Donald Trump administration is placing on global ESG policy.
While the revised reporting threshold will exempt a significant number of businesses originally expected to disclose under the directive, the reality is that sustainability and ESG reporting are not going away, as investors will continue to ask for related KPIs and data.
SM: Which international standards or disclosures should African miners prioritise now to be investment grade from an ESG perspective?
BM: African miners must strike a balance between meeting IFRS 1 and 2 standards and the CSRD requirements, particularly the double materiality assessment framework that evaluates impact on the environment, society and the business itself. The report emphasises the need for materiality assessments that include a proper and intensive climate risk assessment and Country by Country Reporting( CBCR) for transparency on operations, revenues, profits and taxes by jurisdiction.
Additionally, miners should focus on EU sustainability rules regarding carbon emissions, as many African businesses must comply with these regulations to maintain their licence to operate, even when part of global supply chains, not just when actively trading in the EU. The dual imperative of implementing IFRS 1 and 2 and CSRD would ensure that African miners, who typically belong to global organisations, would, by
Supplied by Forvis Mazars
Forvis Mazars partner and head of sustainability, Bongiwe Mbunge.
and large cover the items in the principles, ensuring they understand all physical risks and can verifiably meet their social and business objectives. Addressing the business and broader mining community in this manner directly benefits their business operations and futureproofs their business to sustain their LTO.
SM: What are the most reliable, commonly accepted metrics that investors use to judge true environmental impact in mining?
BM: The report emphasises that robust, transparent reporting on carbon emissions, human rights( including modern slavery), resource scarcity and destruction of natural environments is critical for sectors including mining, energy, infrastructure and agriculture. The report states that these sectors already understand how sustainability factors influence business risk and confidence. The emphasis is on consistent, standardised reporting that enables easier benchmarking and valuations by investors, supported by quality sustainability data collection and integrated financial and non-financial reporting frameworks. Although, businesses and organisations must continue implementing what is needed between their reporting periods.
SM: For social impact, what outcome indicators do investors prefer when assessing community benefit?
BM: The report provides specific examples from the South African context, where investors value demonstrated support of diversification and inclusion through empowered and women-led enterprises, along with efforts to reduce education inequality and proof of no child labour in supply chains.
www. africanmining. co. za African Mining Publication African Mining African Mining • March 2026 • 29