The impact of climate change has since descended upon the general populace due to the ravaging effects of the drought that has since been declared a state of disaster. There has been various discourse that has expounded on the measures to impede on the progressive impact of climate change. Least of these measures that has yet to get notoriety the issue of sustainability financing, which this author opines to be a fundamental issue to the fight against climate change. The slow roll out of climate change legislation across the global south has been hamstrung by the unavailability of funding to sustain such policy changes. Moreover, the historical imbalances have oft been cited as a key reason why the global south has expressed hesitancy to curtail greenhouse gas emissions and thereby curtail development. This article seeks to outline the standards and regulations that have been implemented locally to incentivize local businesses and persons alike to take into consideration issues of environment, social and governance alongside financial returns.

Sustainability finance has been described as having a key role on the global transition to net zero carbon emissions by channeling equity and finances into carbon neutral projects. It is common cause that businesses evolve and adapt to the dictates of the market hence the financial products and markets alike have an inherent obligation to induce a transition towards a green economy. The context of such obligation arises out of the United Nations Guiding Principles on Business and Human Rights, whose principles advocate for the "Protect, Respect and Remedy" framework on the issue of human rights and the correlation of same with transnational corporations and other business enterprises. Indeed, the African (Banjul) Charter on Human and Peoples Rights, a continental instrument to which Zimbabwe is a signatory to, has been interpreted to extend the definition of human right to include environmental rights. The obligation to preserve and protect environmental rights such that same promotes economic and social development has been entrenched in the Constitution Zimbabwe under section 73. Whilst section 73 of the Constitution places a positive obligation on the state, such obligation is arguable cast on every other person as such interventions are not limited to the State. This author therefore opines that sustainability finance in Zimbabwe is given its foundation and impetus by section s73 of the Constitution. The finance sector locally, regionally and internationally looking to advance funding into both greenfield and brownfield investment projects should be rooted in sustainability financing. The evolution of the market dynamics has trickled down to the local equity markets as evident from the Securities and Exchange (ZSE Listing Requirements) Rules 2019, albeit the compliance and enforcement of same has been slow. The above shows that there is ample legal framework for the expansion of sustainability financing in Zimbabwe.

The expansion of sustainability financing in Zimbabwe will anchor the legislative requirement for listed companies to commission ESG / sustainability reports. More pertinently the benefit and importance of sustainability will cascade to non-listed business entities that require to access funding. Currently there is no requirement for no listed business entities or persons engaged in business to commission sustainability reports yet in numerical terms the said entities outnumber those currently listed on the local ZSE bourse including the VFEX bourse. The misnomer that non listed entities are not under any legal obligation to commission sustainability reports is incongruent with s73 of Constitution as the current application carries a discriminatory effect should there continue to be no legislation compelling all business entities in Zimbabwe to commission sustainability reports. It is further opined that directors and managers of all companies duly registered and operating within Zimbabwe should view sustainability reporting as an inherent obligation incumbent upon same because the business judgement rule in terms of section 54 of the Companies and Other Business Entities Act [chapter 24:31] places a positive obligation on directors and managers to objectively exercise their fiduciary duty to the company in a manner that make objective business sense. It therefore follows that in an era were climate change and its effects are tangible, it would be imprudent for directors and managers alike to fail to realign their businesses with the business judgment rule and s73 of the Constitution which can be inferred to mean that it is objective business sense to commission sustainability reports. The importance of such sustainability reporting lies in the fact that in an era where decisions are data driven the collection and compilation of such metrics then becomes imperative as it will ultimately equip the legislature to be nimble, agile and proactive in addressing climate change through legislative avenues.

Overall sustainability financing is a necessary foundational block to the raft of measures that can be implemented to impede on climate change. It is this authors opinion that beyond the novelty and ingenuity around offering such financing solutions there are indeed constitutional provisions, more pertinently s73 of the Constitution of Zimbabwe, and other continental and global instruments that can be translated in a manner that places an obligation on all business entities to promote and protect environmental rights. In fact, s73 of the Constitution of Zimbabwe goes a step further to place a positive obligation on both the state and other private actors to implement measures congruent with the protection of environmental rights. The expansion of sustainability financing will also compel both listed and non listed business entities to commission sustainability reports in support of the right sought to be protected under s73 of the Constitution.

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