MATERIALITY DETERMINATION

PROCESS AND MATERIAL MATTERS

MATERIALITY DETERMINATION PROCESS AND MATERIAL MATTERS

LEGEND:

Worsening

Improving

Stable

LEGEND:

Worsening

Improving

Stable

5. SUSTAINABILITY APPROACH

RISKS

OPPORTUNITIES

• The world faces a range of pressing environmental, social and economic development challenges such as poverty, hunger, poor health, inadequate education, global warming, gender inequality, lack of access to water, poor sanitation, loss of biodiversity, and social injustice. As Difference Makers, chartered accountants have a lead role to play in addressing these critical problems
• The sustainability reporting standard-setting process is not yet formalised in South Africa. This may require extensive efforts from SAICA in collaboration with other bodies to steer South Africa in the right direction

RISKS

• Insufficient advocacy for effective sustainability practices
• Inability to measure progress and difference made
• Ineffective strategic goals and performance measures
• Competing priorities with executing day-to-day priorities

RELATED OPPORTUNITIES

• Embed ESG and sustainability as integral to business strategy
• Engage key stakeholders to influence and shape future sustainability strategy
• Enable SAICA to influence the standard setting process given that no standards currently exist
• Ensure effective engagement with members on sustainability, and provide appropriate learning and development opportunities to members, associates, learners, students and trainees

5. SUSTAINABILITY APPROACH

• The world faces a range of pressing environmental, social and economic development challenges such as poverty, hunger, poor health, inadequate education, global warming, gender inequality, lack of access to water, poor sanitation, loss of biodiversity, and social injustice. As Difference Makers, chartered accountants have a lead role to play in addressing these critical problems
• The sustainability reporting standard-setting process is not yet formalised in South Africa. This may require extensive efforts from SAICA in collaboration with other bodies to steer South Africa in the right direction

RISKS

RISKS

• Insufficient advocacy for effective sustainability practices
• Inability to measure progress and difference made
• Ineffective strategic goals and performance measures
• Competing priorities with executing day-to-day priorities

OPPORTUNITIES

RELATED OPPORTUNITIES

• Embed ESG and sustainability as integral to business strategy
• Engage key stakeholders to influence and shape future sustainability strategy
• Enable SAICA to influence the standard setting process given that no standards currently exist
• Ensure effective engagement with members on sustainability, and provide appropriate learning and development opportunities to members, associates, learners, students and trainees

capitals

Strategic Pillars

capitals

Strategic Pillars

Strategic response

• Formalise an environmental management policy and expand oversight responsibilities of the Social, Ethics and Transformation Committee (SETCO) in terms of environmental protection
• Formalisation of the Sustainability Technical Committee to provide thought leadership and education to SAICA members regarding the SDGs
• Submissions were made on the draft Sustainability Standards published by the International Sustainability Standards Board (ISSB)
• Hosted the ISSB board member who represents the African continent to engage with SAICA’s sustainability committee and members within the sustainability reporting environment
• The Chairperson of the SAICA Board has been elected to the ESG Exchange’s advisory committee, and the Executive Director of Standards has joined the ESG Exchange’s technical committee. This will promote a greater sharing of content and advice to the benefit of SAICA members
• SAICA sponsored and promoted the Amazon River project by two Wits School of Accountancy professors to promote the impact of climate change and encourage further research as to how corporates can embrace sustainability into their operations
• SAICA calls for members to submit their contribution to SDGs on an annual basis and publishes a report to advocate for more member action around SDGs
• SAICA ran its Trainee Trailblazer awards which has seen trainees being encouraged and awarded for the work they do relating to SDGs

Strategic response

• Formalise an environmental management policy and expand oversight responsibilities of the Social, Ethics and Transformation Committee (SETCO) in terms of environmental protection
• Formalisation of the Sustainability Technical Committee to provide thought leadership and education to SAICA members regarding the SDGs
• Submissions were made on the draft Sustainability Standards published by the International Sustainability Standards Board (ISSB)
• Hosted the ISSB board member who represents the African continent to engage with SAICA’s sustainability committee and members within the sustainability reporting environment
• The Chairperson of the SAICA Board has been elected to the ESG Exchange’s advisory committee, and the Executive Director of Standards has joined the ESG Exchange’s technical committee. This will promote a greater sharing of content and advice to the benefit of SAICA members
• SAICA sponsored and promoted the Amazon River project by two Wits School of Accountancy professors to promote the impact of climate change and encourage further research as to how corporates can embrace sustainability into their operations
• SAICA calls for members to submit their contribution to SDGs on an annual basis and publishes a report to advocate for more member action around SDGs
• SAICA ran its Trainee Trailblazer awards which has seen trainees being encouraged and awarded for the work they do relating to SDGs

Outlook for the SHORT, MEDIUM AND long term

• As part of the SAICA strategy refresh taking place in 2023, ESG and sustainability levers will be formalised, targets defined in both the short and long term, and performance measures included in balanced scorecards
• A climate risk assessment will be undertaken to identify opportunities and mitigating actions
• Change management and communications will be rolled out in 2023 to foster an environmentally aware culture

Outlook for the SHORT, MEDIUM AND long term

• As part of the SAICA strategy refresh taking place in 2023, ESG and sustainability levers will be formalised, targets defined in both the short and long term, and performance measures included in balanced scorecards
• A climate risk assessment will be undertaken to identify opportunities and mitigating actions
• Change management and communications will be rolled out in 2023 to foster an environmentally aware culture

INCREASING REGULATORY REQUIREMENTS