• Enhanced Standards: JSE revises its guidance to align with finalized IFRS S1 and S2, integrating global sustainability frameworks.
• Scope 3 Flexibility: Transition relief allows companies to exclude Scope 3 emissions in the first year.
• Future-Ready: Prioritizes emerging trends like digitization, ESG criteria, and infrastructure-focused markets.

The Johannesburg Stock Exchange (JSE) is revamping its Sustainability Disclosure Guidance to reflect the finalized IFRS S1 and IFRS S2 standards issued by the International Sustainability Standards Board (ISSB) and new Companies Amendment Bills.

The original guidance, released in June 2022, aimed to simplify sustainability reporting by aligning with leading frameworks like TCFD and GRI Standards. However, the finalized IFRS standards in June 2023 introduced critical updates, such as:

• Scope 3 Exemption: Companies are exempt from disclosing Scope 3 emissions during their first year of adoption.
• Framework Consolidation: IFRS S1 and S2 unify sustainability frameworks, reducing reporting burdens.
• Jurisdictional Flexibility: The standards enable compliance with global and local regulatory requirements.

JSE CEO Dr. Leila Fourie commented during a PSG Think Big webinar:

“Our review process considers changes in IFRS S1 and S2, as well as emerging frameworks like TNFD and the GRI Biodiversity Standard.”

Strategic Shifts:

President Cyril Ramaphosa’s enactment of the Companies Amendment Bills adds ESG dimensions to corporate governance, including remuneration transparency and social ethics committee mandates.
Fourie noted:

“Pay gap metrics and broader ESG considerations now require alignment with evolving regulatory standards.”

Related Article: Holtara Launches New ESG Reporting Platform to Simplify CSRD Compliance

Looking Ahead:

The JSE also embraces digitization and sustainability innovation:

• A tokenized market concept developed with the South African Reserve Bank.
• A growing private placements market for environmental and infrastructure projects.
• A partnership with Amazon Web Services to modernize its systems, promising lower costs for participants.

Fourie stated:

“Our green social sustainability bonds have doubled year on year.”

As the JSE prioritizes operational resilience and revenue diversification, its focus remains on staying relevant in a rapidly evolving market.

“We’re looking at protecting and growing our core while transforming in new areas,” said Fourie.

The exchange’s roadmap underscores its commitment to sustainability, innovation, and market stability for the years ahead.

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