ESG to advance women inclusion in corporate governance

Malawi Stock Exchange (MSE) says the introduced Environment, Social and Governance (ESG) report requirement from listed companies will enhance women inclusion in key decision-making positions.

The MSE has made it mandatory for listed companies to publish their ESG performance starting from December 31 this year.

MSE chief operating officer Kelline Kanyangala says requirement will among others compliment efforts aimed at ensuring that there is at least 40 percent women representation in leadership positions in every institution.

According to Kanyangala, ESG reporting improves transparency on the impact of company activities on the environment and society as well as how the companies enhance women participation inclusion in their corporate governance structures.

“When we are looking at the issues to do with corporate governance, we also look at the issues of how management as well as leadership of those organisations is structured, and gender is a key component. Luckily, in Malawi, there are policies that stipulates that at least 40% of leadership positions are occupied by women.

“Through this requirement, we are requesting companies to disclose to the investing public on what they are doing in social, environment and governance aspects because at the epicentre of their day-to-day operations, corporate governance is of essence because if this area is not in-check then other pertinent issues will not be adequately considered,” she said.

Kanyangala added; “What we have done as MSE is to incorporate as a mandatory requirement and we have also provided a framework that they will be using which is Global Reporting Initiative (GRI) Standard and with this it will also help companies to be more objective in their reporting.”

The MSE in partnership with Bartlett Consulting Group Africa held its first ESG workshop in March, 2024 following the launch of the revised listings requirements which require listed companies are required to incorporate ESG disclosures in their annual reports.