Sustainability reporting standards: The reporting landscape in Tanzania

By Isaya Tumaini

In recent years, a growing number of companies in Tanzania have embraced sustainability reporting practices, using various frameworks to communicate their environmental, social, and governance (ESG) initiatives and demonstrate alignment with both national priorities and global sustainability goals.

The International Sustainability Standards Board (ISSB) released IFRS S1 (General Requirements for Disclosure of Sustainability-related Financial Information) and IFRS S2 (Climate-related disclosures). In this article, we explore the basics of sustainability principles and the reporting landscape in Tanzania.

The foundation of any sustainability reporting journey lies in first asking: what does the Environmental, Social, and Governance (ESG) framework entail, and how does it align with the broader Sustainable Development Goals (SDGs)?

At a personal level, the United Nations’ “Lazy Person’s Guide to Saving the World” illustrates how simple, everyday actions—such as supporting local vendors, mentoring young people, reducing paper usage, or conserving energy and water—can collectively make a significant contribution toward the SDGs when practiced consistently.

At an organisational level, however, sustainability requires deeper structural commitment. Adopting “Donella Meadows’ systems thinking” approach helps organisations move beyond addressing symptoms to tackling root causes.

By embedding ESG into core strategy and decision-making, businesses can create fundamental, long-term solutions that not only deliver compliance but also drive sustainable value creation.

The cornerstone of any ESG journey is a well-defined strategy. An effective ESG strategy must meet three fundamental expectations: it should clearly articulate how the organisation minimises environmental impact, demonstrates social responsibility, and upholds integrity in governance—across the short, medium, and long term.

Stakeholder engagement is essential to achieving these goals. Institutions must make deliberate efforts to build ESG literacy at every level, from the board and senior management to employees across the organization.

Importantly, ESG cannot be siloed within a single department. Instead, it must be embedded and integrated into the organisation’s broader strategy, ensuring alignment, cohesion, and long-term impact.

There have been developments in the regulatory landscape in Tanzania following the release of the Sustainability Reporting Standards.

The National Board of Accountants and Auditors (NBAA) released a technical pronouncement with mandatory sustainability reporting requirements for all Public Interest Entities (PIEs) and public sector entities.

The Bank of Tanzania also issued guidelines on climate-related financial risk management and disclosures and sustainability reporting which are mandatory for all banks and financial institutions.

Both reporting requirements apply to the accounting periods beginning on or after January 1, 2025. The guidelines include implementation roadmap with reporting requirements from 2025 to 2029.

At a minimum, in the 2025 annual reporting, the entities in scope are expected to report on IFRS S1 and IFRS S2 disclosure requirements including disclosures on scope 1 and scope 2 greenhouse gases emissions.

For an entity to effectively comply with the requirements, the first step is to conduct a sustainability readiness assessment, gap analysis and drafting a road map to compliance. Developing and refining sustainability strategic plans and policies as well as building institutional capacity are critical priorities.

It is equally important to outline the required investment and set forth a budget for implementation. Real-time tracking of sustainability data is not just a compliance measure—it is a cornerstone for credible disclosures that strengthen trust and transparency in financial reporting.

Sustainability reporting goes beyond compliance. It must mirror the organisation’s values and practices and how these align with the short-, medium- and long-term prospects.

This is a wider topic which requires proactive and active engagement with all stakeholders. This will help align the organisations’ ambitions towards integrating sustainable practices, in line with the ESG framework.