ISSB standards: A practical guide for African businesses

Regulators, investors, and customers are asking for clearer sustainability reports—and the ISSB standards are becoming the global yardstick. If you run a company in Africa, this matters because lenders and buyers increasingly expect ISSB-aligned disclosures when they decide where to invest or trade.

What ISSB covers and why it matters

The International Sustainability Standards Board (ISSB) set two main rules: IFRS S1 for general sustainability disclosure and IFRS S2 focused on climate. Together they tell companies what to report about risks, opportunities, and how sustainability affects financial value. The goal is consistent, comparable data so investors can make choices without guessing.

For African firms, ISSB alignment can lower the cost of capital, open export markets, and improve trust with international partners. It also helps manage real risks — think water stress for mines, changing rainfall for farms, or supply chain shocks for manufacturers.

How to get ready — simple, practical steps

Start small and build. Here’s a practical checklist you can use right away.

• Do a gap analysis. Compare what you already report to IFRS S1 and S2. Note missing metrics like Scope 1, 2 and 3 emissions, or governance details.
• Assign clear ownership. Put one senior person in charge of sustainability data and one for finance. ISSB links sustainability to financial reporting, so both must work together.
• Collect core data first. Prioritise high-impact areas: emissions, water use, material risks to operations. Use meter readings, supplier data, and simple templates to capture numbers consistently.
• Map material risks. Run a short workshop with operations, finance and sales to list risks that affect cash flow or assets. Focus on those that could change decisions in the next 1–5 years.
• Prepare for assurance. External checks will grow. Start with internal audits, then invite a third party to verify key figures once your data stabilises.
• Use clear disclosure language. ISSB wants information that investors can use. Show assumptions, methods, and how sustainability affects revenue, costs and assets.

Examples: a Kenyan tea exporter should report water risks and yield impacts; a South African miner must disclose tailings risk and Scope 1 emissions. These concrete disclosures help partners and lenders assess real exposures.

Timelines vary by country and market. Some regulators are already mapping ISSB into local rules, others will follow. Don’t wait for a mandate — starting now gives you time to fix data gaps and tell a credible sustainability story.

If you want a simple next move: run a one-week gap check, pick three priority metrics, and assign owners to collect them monthly. That small push makes later reporting much easier and keeps you ahead when investors ask for ISSB-aligned disclosures.