Staff Writer 
By Ephraim Chawoneka
ENVIRONMENTAL, Social and Governance (ESG) is no longer a global trend limited to large multinational companies.
It is becoming a part of how businesses, investors, and institutions operate across Africa. In Zimbabwe, ESG is slowly moving from awareness to action. However, the journey from ESG training to reporting, and then to ESG rating, is still developing slowly.
Understanding this journey is important for companies, public institutions, and investors who want to build credibility and attract long-term capital, because it also highlights the role of institutions like ICRA Zimbabwe in building market confidence.
Step 1: ESG training – building awareness and capacity
The first stage of ESG adoption in Zimbabwe has been training and awareness. Many organisations are beginning to understand that ESG is not just about environmental compliance. It also includes:
l Responsible governance
l Ethical leadership
l Employee welfare
l Community impact
l Transparent reporting
Training helps management teams and boards understand why ESG matters. It shows how environmental risks can affect operations. How social issues can influence reputation. How governance practices can affect long-term stability.
In Zimbabwe, ESG training is helping organisations shift from informal practices to more structured systems. However, awareness alone does not create a measurable impact. It should be followed by action.
Step 2: ESG reporting – turning practice into disclosure
Once organisations understand ESG principles, the next step is reporting. ESG reporting means documenting policies, actions, and measurable outcomes.
For example, a company may report on:
l Energy use and environmental management
l Workplace safety practices and protocols
l Gender diversity
l Board structure and decision-making processes
In Zimbabwe, ESG reporting is still improving and transforming. Some companies, by choice, publish sustainability information, while others are just beginning to formalise their disclosures.
The challenge at this stage is consistency. Reports may vary in quality, format, and detail. Without clear standards, it can be difficult for investors to compare one organisation with another. This is where independent evaluation becomes important.
Step 3: ESG rating – independent assessment
An ESG rating goes a step further than reporting. It is an independent opinion on how well an organisation manages environmental, social, and governance risks.
Unlike self-reported data, ESG ratings are based on structured analysis. They assess not only what an organisation says, but how effectively it implements its policies.
For Zimbabwe, ESG ratings can serve several important purposes:
l Improve investor confidence
l Encourage better governance practices
l Support access to responsible investment capital
l Promote transparency in both public and private sectors
This is where institutions like ICRA Zimbabwe can contribute profitably. By providing structured ESG assessments aligned with credit and risk analysis, agencies help make sure that ratings are objective and consistent.
Why the full journey matters
Moving from training to reporting to rating is not just a technical process. It represents a shift in mindset.
l Training builds understanding.
l Reporting builds transparency.
l Rating builds credibility.
If any stage is weak, the overall system loses strength. For example, strong training without proper reporting limits visibility. Detailed reporting without independent assessment may not fully convince investors.
Zimbabwe’s market is at a stage where all three steps need to develop together. Companies that invest early in structured ESG systems have a higher chance of gaining an advantage as investor expectations continue to rise.
Benefits for Zim’s financial market
Stronger ESG practices can assist Zimbabwe’s broader economic goals. They can:
l Increase trust between businesses and investors
l Reduce long-term operational risks
l Promote responsible management of resources
l Improve governance standards
Over time, this can contribute to a more stable financial environment. ESG ratings can support this stability by linking sustainability practices with measurable risk assessment when applied carefully and independently.
The ESG journey in Zimbabwe is still developing, but the direction is clear. Training increases awareness. Reporting is slowly improving transparency. The next important step is strengthening independent ESG ratings to bring structure and comparability to the market.
ICRA Zimbabwe can support this change by maintaining clear methodologies and professional standards.
In simple terms, ESG is not just about doing good. It is also about managing risks and building long-term flexibility. For Zimbabwe, moving with stability from ESG training to reporting and finally to ESG rating can help create stronger institutions and a more confident investment environment.
Chawoneka is the chief executive of ICRA Zimbabwe. ICRA is headquartered in Dubai. He is a seasoned ex-banker with over 19 years of experience in the sector. He is an Insolvency and Business Rescue Practitioner and an ardent practitioner in the field of Credit Rating(s).
