12 Aug 2024

 In an effort to transform the local stock market into  a world-class securities exchange, Botswana  Stock Exchange (BSE) in collaboration with Global Reporting Initiative(GRI) Africa has  launched the Sustainable Disclosure  Guidance.  

Speaking during the guideline launch  on Thursday, GRI  Africa Programme Manager, Mr Bhongolwethu Sonti said the initiative represented a significant milestone in BSE’s journey towards corporate responsibility, accountability and ensuring sustainable  growth of capital  markets  in Botswana.

He said the BSE disclosure guidance launched was a comprehensive tool to enhance the  quality and consistency of information disclosed by local listed companies while it was also the guiding  light  for  companies outside the market aiming to be well  performing companies embedded in  society.

“The  primary purpose  of the guiding  regulations is to improve investment decisions  through provision of  high quality sustainable information  from companies in order to enable  better informed  investment  decision-making  by  possible  investors,” he said.  

Mr Sonti said there  was  need for the  guidelines as companies were no longer  judged on their  financial  performances  or shareholding  dividends but were also judged on how they  managed their  environmental and societal  impact on their operational jurisdiction.

Such regulations, he said, would encourage companies to disclose their impact risks and opportunities to foster business performance and accountability.

 Mr Sonti said a cornerstone within the guiding regulation  was  to ensure that sustainability issues impacted not  only  the company’s financial performance but  also the  social and environmental aspects, thus  required companies to disclose information  on both the  financial risks  and opportunities.

Additionally, he said  Botswana’s corporate governance and  landscape was also evolving at a fast pace  with various regulators adopting  different guidelines  which  the BSE also  drew from hence  promoting  alignment  with  international standards.  Mr Sonti said by integrating industry principles and sustainability within the frame works, the BSE could ensure that sustainability became the core component of corporate governance in Botswana.

He  emphasied that the robust  sustainability  reporting  frame  works could lead to tangible benefits  including improved  market reputation, increased investment  flows and  greater  resilience and social economic and environment  challenges.

Mr Sonti said implementing the regulations could enhance BSE as it positioned itself as a forward thinking and stock exchange of repute which is committed to fostering sustainable business practices.

 The regulation guidance, he said could,  also  help  improve  the  overall quality of companies  listed on the exchange.  By encouraging  better disclosure and management  of sustainability  related risks and  opportunities, the BSE, Mr Sonti said, could help companies become more resilient, competitive and attractive to investors which could result  in high  market  capitalisation  as well as  increased trading volumes.  “Over the past three decades, there have been many drivers that led companies, regulators and governments to ensure that principles were integrated within companies,” he said.  He said BSE had been at the forefront of driving transformation and demonstrating an unwavering commitment to fostering sustainable business practices and ensuring strong cooperate responsibility. 

“Since its inception as Botswana Share Market in 1989 to its evolution to Botswana Stock Exchange in 1995, the exchange has grown into a pivotal institution in the country’s financial landscape, as is today a proud member of various  international governing  bodies,” he said. ENDS