The International Sustainability Standards Board (ISSB) has unveiled proposed updates to its industry-specific Sustainability Accounting Standards Board, a move that could significantly shape how African companies disclose sustainability performance. The roll-out, encompassing nine sectors including oil & gas, mining, construction, power, and food & beverage, kicks off an exposure period ending on November 30, 2025. These updates are intended to harmonize the metrics underpinning ISSB’s global backbone standards, IFRS S1 and S2, ensuring consistency and material relevance across jurisdictions.
SASB, originally launched in 2011 to provide sector-specific ESG guidance, was absorbed into the IFRS Foundation in 2022. Now, the ISSB is set to align these industry benchmarks with its own, reinforcing clarity and comparability for investors. The refreshed standards will also enhance metrics on water management and workforce health and safety across 41 other sectors .
For African markets, the stakes are high. Earlier this year, a partnership was signed between the African Development Bank and International Financial Reporting Standards to build capacity for ISSB adoption on the continent, and at least five countries—Kenya, Nigeria, Ghana, South Africa, and Ethiopia have initiated adoption roadmaps for IFRS S1 and S2. Governments across Africa are working with regulators and professional bodies to ensure sustainability reporting becomes mainstream, underlining its growing importance for investment and trade.
In Africa’s extractive industries, which include some of the world’s most material SASB sectors – consistency and sectoral detail will be vital. Nigeria’s oil majors and South Africa’s mining houses, for instance, face growing investor scrutiny over environmental management, tailings control, and social license initiatives. Having a harmonized global standard, aligned with IFRS S1/S2, stands to reduce reporting confusion and improve investor trust.
However, seamless uptake depends on more than standards alone. A recent request by Ghana, Nigeria, and Kenya for submissions on standard costs indicates a strategic but cautious approach to adoption. Meanwhile, the ISSB reports collaboration with GRI, EFRAG, and TNFD—suggesting the refreshed standards will be interoperable across global frameworks.
African companies face a mix of preparation challenges and growth opportunities. On one hand, compliance will require enhanced data systems, especially for frontier and emerging markets with weaker ESG reporting infrastructure. On the other, early alignment with ISSB-backed SASB opens the door to international capital, particularly as global investors intensify climate-aligned portfolio allocation. Kenya’s fintech sector and Nigeria’s agribusiness are emerging examples, with select reporting firms citing enhanced access to green finance after taking tentative steps toward ISSB engagement.
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Sector-wise, updated SASB guidance promises to sharpen decision-useful disclosure: for example, infrastructure firms will now disclose standardized water usage and workforce safety metrics; food and beverage manufacturers will need to detail processing-related emissions and supply chain risks. Finance ministers and regulators, like those in South Africa’s JSE and Kenya’s ICPAK, are already preparing guidance to support a phased transition.
Still, operational hurdles remain. African accountants, auditors, and corporate sustainability teams must ramp up training and internal controls. To this end, FSD Africa’s initiative to build IFRS S1/S2 capacity in West Africa is a significant step toward leveling the playing field.
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With the comment period now open, stakeholders across African industries – especially in mining, agriculture, energy, and finance, have an opportunity to shape the refined standards before publication in 2026. The outcome could define how Africa positions itself in the rapidly evolving landscape of global sustainable finance.
In short, the ISSB-led SASB overhaul marks a critical inflection point for African economies seeking to embed sustainability in the DNA of economic growth. As the continent aligns with global reporting norms, it stands to gain not just compliance benefits, but a stronger voice in defining ESG disclosure that truly reflects African realities.
