The Johannesburg Stock Exchange (JSE) has announced an update to its Sustainability Disclosure Guidance to align with the newly finalized IFRS S1 and IFRS S2 standards by the ISSB.
According to ESG News, this update follows the original guidance issued in June 2022, which aimed to streamline sustainability reporting alongside major frameworks such as the TCFD and GRI Standards.
The latest standards, which took effect in June 2023, introduce pivotal changes aimed at simplifying the sustainability reporting process for corporations. Notably, companies will now be exempt from disclosing Scope 3 emissions during their first year of implementing these standards. Additionally, the consolidation of the IFRS S1 and IFRS S2 frameworks aims to reduce the reporting burden on companies while ensuring compliance with both global and local regulatory requirements.
During a PSG Think Big webinar, JSE CEO Dr. Leila Fourie highlighted the strategic updates. “Our review process considers changes in IFRS S1 and S2, as well as emerging frameworks like TNFD and the GRI Biodiversity Standard,” Fourie noted. The recently enacted Companies Amendment Bills by President Cyril Ramaphosa also bring ESG aspects into sharper focus within corporate governance, emphasizing remuneration transparency and the mandate of social ethics committees.
Dr. Fourie further commented on the broader ESG considerations now required. “Pay gap metrics and broader ESG considerations now require alignment with evolving regulatory standards,” she stated. The JSE is not just updating its guidelines but also pioneering sustainability innovations such as a tokenized market concept developed in collaboration with the South African Reserve Bank, and an expanding private placements market that supports environmental and infrastructure projects.
The exchange has also partnered with Amazon Web Services to modernize its systems, a move expected to reduce costs for market participants significantly. “Our green social sustainability bonds have doubled year on year,” Dr. Fourie added, underscoring the exchange’s commitment to sustainability.
As the JSE continues to focus on operational resilience and revenue diversification, it remains dedicated to staying relevant in a fast-evolving marketplace. “We’re looking at protecting and growing our core while transforming in new areas,” Dr. Fourie concluded, indicating a robust roadmap for the exchange’s future.
