ESG READINESS CHECKLIST FOR CFOs
Empowering South African Businesses for ESG Compliance and Leadership
What is ESG?
ESG stands for Environmental, Social, and Governance. It refers to the set of standards used to measure a business’s impact on society, the environment, and its transparency and accountability in decision-making.
Increasingly, investors, regulators, customers, and financial institutions expect businesses to demonstrate strong ESG performance—not only as a matter of corporate responsibility, but as a strategic and financial imperative.
- Environmental: How does your business impact the environment? (e.g., emissions, waste, energy usage, climate risk)
- Social: How does your business treat employees, communities, and customers? (e.g., labour practices, diversity, health & safety)
- Governance: How is your business managed and held accountable? (e.g., board structure, ethics, compliance, transparency)
In South Africa, this includes compliance with carbon tax laws, an increased demand for sustainability disclosures, and alignment with global frameworks such as the OECD, GRI, and King IV.
SECTION 1: ESG GOVERNANCE & STRATEGY
| Item | Check |
| Is ESG embedded into the organisation’s strategic planning process? | ☐ |
| Has the board or executive team formally adopted ESG as a priority area? | ☐ |
| Is there a dedicated ESG lead or cross-functional sustainability committee? | ☐ |
| Are ESG-related risks and opportunities included in enterprise risk management? | ☐ |
| Are you benchmarking against industry-specific ESG standards (e.g., GRI, TCFD)? | ☐ |
SECTION 2: ESG DATA & REPORTING READINESS
| Item | Check |
| Have you identified ESG metrics most material to your industry and investors? | ☐ |
| Is there a framework in place for collecting reliable carbon emissions data (Scope 1–3)? | ☐ |
| Are your sustainability disclosures aligned with international standards (e.g., ISSB, GRI)? | ☐ |
| Have you undergone a limited or reasonable assurance audit of ESG data? | ☐ |
| Is ESG data integrated into your annual financial reporting process? | ☐ |
SECTION 3: ENVIRONMENTAL COMPLIANCE & CARBON TAX
| Item | Check |
| Have you calculated your carbon tax liability under the 2025 R190/tCO₂e rate? | ☐ |
| Are you actively tracking and managing energy usage, emissions, and waste? | ☐ |
| Have you applied for Section 12l energy-efficiency tax incentives? | ☐ |
| Have you considered or implemented a carbon offset strategy? | ☐ |
| Do you have a forward-looking model that projects carbon tax exposure through 2030? | ☐ |
SECTION 4: SOCIAL & GOVERNANCE FACTORS
| Item | Check |
| Do you track and report on diversity, equity, and inclusion (DEI) statistics? | ☐ |
| Are employee health, safety, and well-being measures audited or benchmarked? | ☐ |
| Is there a whistle-blower policy and ethical code aligned with King IV principles? | ☐ |
| Do suppliers meet ESG standards, and is there a formal supply chain due diligence process in place? | ☐ |
| Is there a process for stakeholder engagement regarding ESG risks and impact? | ☐ |
SECTION 5: FINANCE, RISK & INVESTOR READINESS
| Item | Check |
| Have ESG considerations been priced into financial forecasts and risk models? | ☐ |
| Do you produce or plan to issue sustainability-linked financial instruments? | ☐ |
| Are ESG risks disclosed in line with the integrated reporting guidelines (IR Framework)? | ☐ |
| Are investors, shareholders, and lenders receiving transparent ESG updates? | ☐ |
| Are you prepared to meet ESG-related assurance and regulatory requirements in 2025–2026? | ☐ |
RESULTS SUMMARY
- 21–25 checks: ESG-ready – Strong foundations are in place. Focus on elevating reporting and strategic communications.
- 15–20 checks: On track – Core elements exist, but further alignment and integration are required.
- 10–14 checks: Partial readiness – Key gaps in compliance, data collection, or governance. Immediate action is recommended.
- Below 10 checks: High risk – Your organisation may face reputational, regulatory, or investment risk. A comprehensive intervention is needed.
Need Expert Guidance?
Marwick & Company offers:
- ESG assurance and audit preparation
- Carbon tax compliance and offset planning
- Section 12L application support
- Sustainability reporting aligned with global frameworks
- ESG training for boards and finance teams