Like all waterways splitting the country’s cities, the filthy Mudi River in Blantyre City has become an eyesore to people who care about the environment.
Its foul-smelling water produces greenish, reddish and blue-blackish foam, depending on what individuals and companies dump in its course.
As passers-by pinch their noses to keep out the stink, fingers point at the factories along its banks for the runaway water and air pollution that has persisted for decades of lawlessness.
The stink signals how some corporate firms prioritise profits over the well-being of the environment, humanity and the shared planet.
Imagine a world where businesses utilise natural resources to meet the needs of all, including future generations.
This may sound surreal in a world where most companies seem to rank profit over the well-being of the planet and people they claim to serve.
However, social and environmental sustainability has become the hallmark of responsible businesses, with global tobacco buyers increasingly tracking every bale to the farm so that producing the leaf for the world market does not fuel environmental degradation and human rights violations, including child labour and slavish work conditions.
Recently, business captains met in Blantyre to explore ways of integrating environmental and social governance initiatives in their dealings.
The chief executives of companies listed on the Malawi Stock Exchange (MSE) met with the Institute of Chartered Accountants in Malawi (Icam) officials to discuss the prevailing environmental challenges, laws and policies.
“There is a growing need for the regulatory framework to be driven by those responsible for implementing and the need to collaborate,” said convener Olive Kawerama.
The chief executive officer of Alama Environmental, Social and Governance and Sustainability Consultancy challenged business leaders to use their power and stewardship to protect natural resources on which the success of their enterprises hinges.
“CEOs need to work with the regulators to create a conducive environment and long-term continuity of policies, programmes and initiatives that drive the environmental and social issues necessary for the development of the country,” Kawerama stated.
She urged MSE and Icam to help companies understand and comply with dos and don’ts where the impacts, risks and opportunities lie for the businesses.
“Through transparency, they will continuously address the challenges and risks and empower themselves for the uncertainties,” said Kawerama.
She noted that non-compliance with regulations limits the firms’ chances of trading on the international market.
“The European Sustainability Directive requires companies dealing in imported goods to hold their suppliers accountable for their environmental, social and governance aspects,” stated Kawerama.
The fair trade initiative requires companies to report on their social and environmental footprint.
The call for businesses that do not harm the environment and humanity comes at a time Malawi is exploring avenues to increase exports amid a worsening forex scarcity.
However, the country’s production chains and export diversification chains have been hit hard by climate change, especially chronic cyclones and water stress.
“If we do not take environmental, social and governance issues seriously, our country and businesses are in danger. From the global perspective, there will be social and environmental audits,” said Kawerama.
The business leader welcomed the call to action, saying complying with sustainable environmental and social standards could give their firms a competitive edge on the global market.
MSE chief operations officer Kelline Kondowe says the initiative is beneficial for the listed entities.
She said: “Environmental and social governance is not only about requesting companies to report on their performance, but also a requirement for those companies to come with frameworks that will align with their business strategies to standards for sustainability.”
“This is a call for companies to be more responsible in their operations so that they can meet their stakeholders’ expectations. Essentially, we want to see more companies assessing the impact of their operations on society, the environment and the economy.”
MSE chose the Global Reporting Initiatives (GRI) standards that expose companies’ performance in terms of environmental sustainability.
The rankings of the MSE-listed firms will be unveiled in their 2024 financial reports to be submitted to the stock exchange.
Icam technical committee member on accounting standards Nkondola Uka says the new approach conforms with the International Accounting Standards Board that promotes sustainability.
“The board’s sub-committee looks at international standards on sustainability reporting. It has two standards, one which examines general compliance to sustainability issues and the other specifically focuses on climate change since January 1 2024. We expect listed companies to comply with both standards and others which may follow,” he said.
