Tag: ESG

Fiscal pressure and rising scrutiny are reshaping procurement into a value-driven discipline. Global public procurement spending is estimated to account for around 12% of GDP in Organisation for Economic Co-operation and Development (OECD) economies. This underscores the scale and strategic importance of how governments and organisations spend money.

King V reframes corporate governance as a competitive necessity. It embeds Environmental, Social and Governance (ESG) factors and integrated thinking at the heart of board decision-making. The question boardrooms across South Africa are now facing is what this framework demands in practice when it comes to overseeing Artificial Intelligence (AI).

South Africa’s mining sector has long been shaped by migrant labour systems. Employees travelled vast distances from rural homes to industrial centres. For decades, hostel accommodation supported this reality. Although functional in many respects, it ultimately proved undesirable and unsustainable for our social fabric.

Environmental, Social and Governance (ESG) discussions in South African boards generally default to carbon, community impact and governance process. While those remain essential, they do not tell the full story of organisational sustainability. A business may define sustainability narrowly. However, it still fails if it cannot protect data and recover quickly from cyber disruption in a digital economy.

While South Africa committed to significantly decarbonise its energy mix by 2030 in 2021, progress started slowly. However, momentum increased at the start of this year. Both President Ramaphosa’s State of the Nation Address and the recent National Budget placed strong emphasis on energy reform. At the same time, the Department of Electricity and Energy has announced a timeline for wholesale market phasing.

In South Africa’s evolving corporate landscape, the role of the Non-Executive Director is undergoing a quiet but significant transformation. Increasingly, the expanding role of the Non-Executive Director reflects this shift. Previously, organisations primarily tasked Non-Executive Directors with oversight and compliance. Today, however, they expect Non-Executive Directors to contribute meaningfully to strategy, risk navigation and long-term value creation.

The 2026 Budget Speech, delivered by Finance Minister Enoch Godongwana in February 2026, has generally been described as a “good news” budget. At a macro level, the strides toward fiscal consolidation are notable. Additionally, the increase in VAT for Small and Medium Enterprises (SMEs) reflects a shift in revenue strategy. These developments support key socio-economic measures, including employment.

The era of corporate governance as a mere compliance exercise is over. New regulatory frameworks, exemplified by the new King V Report on Corporate Governance (King V), take effect on 1 January 2026. These frameworks fundamentally transform how businesses make strategic decisions, allocate capital and manage risk. King V is not a compliance update; it reshapes governance as a strategic and operational imperative.